The New York State Capitol Building in Albany, New York.

New York Gov. Signs MMJ-for-PTSD Bill

Medical cannabis is now available as a post-traumatic stress disorder therapy in New York after Gov. Andrew Cuomo signed the legislature-approved measure during a Saturday Veterans Day parade, according to a New York Daily News report. The Assembly first passed the bill 131-8 in May and the Senate followed 50-13 in June.

“Many of our veterans are suffering from PTSD and the medical community has determined that marijuana can be a helpful treatment in some areas,” Cuomo said in the report. “And part of our commitment to do everything we can do if there are veterans who are suffering and we can make a treatment available, we want to.”

Rep. Richard Gottfried, chairman of the Assembly Health Committee and sponsor of the chamber’s version of the measure, in a statement said Cuomo’s announcement is “another welcoming step in the expanding and strengthening” of the state’s medical cannabis program.

In late March the state Department of Health added chronic pain as a qualifying condition under the regime, and in August opened up the operator licensing to five additional companies. The agency also proposed allowing more products for patients, including topicals, chewable tablets and lozenges; however, raw flower products are still not being considered.

According to the Health Department, as of Nov. 7 there are 35,318 registered patients and 1,312 registered medical professionals enrolled in the program.

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The underbrush of a dense hemp field.

Wisconsin Legislature Unanimously Approves Industrial Hemp Bill

Wisconsin’s legislature has unanimously passed a bill to implement an industrial hemp pilot program. The measure falls in line with other state programs and federal guidelines requiring that plants contain no more than 0.3 percent THC.

The measure will require cultivators to undergo a federal background check and allows license denials for individuals who have been convicted of violating controlled substances laws. Growers will have to provide GPS coordinates of the land on which the industrial hemp will be grown. If any plant in the crop tests higher than 1 percent THC, the entire crop would be destroyed, the bill states.

The measure also allows higher education institutions to establish industrial hemp research programs. The legislation further requires that the University of Wisconsin-Madison College of Agriculture and Life Sciences and the Wisconsin Crop Improvement Association “to administer a voluntary seed certification program” for industrial hemp.

State Rep. Dave Considine said while he believes parts of the bill could be improved, he believes hemp is “a part of Wisconsin’s agricultural future.”

“Farmers and citizens across our state are learning more about hemp and realizing that it could be a great opportunity for our agricultural economy,” he said in an Urban Milwaukee report.  “With this broadening support, there is no good reason industrial hemp should still be illegal in our state.”

The bill next heads to the desk of Gov. Scott Walker for his signature.

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A cropped panorama photograph of Pittsburgh, Pennsylvania.

Pennsylvania MMJ Program Enrolls 3,800 Patients in First Week

More than 3,800 patients and 200 caregivers have signed up for Pennsylvania’s medical cannabis program during the first week patients are caregivers were able to register. The program, which launched in 2016, allows patients with 17 qualifying conditions to access non-smokeable forms of cannabis such as pills, oils, vapor, or tinctures if approved by a physician.

Gov. Tom Wolf said the state Department of Health has been “laser-focused” on implementing the regime since he signed the measure into law over a year ago.

“The success of the patient registry one week since it was announced is another indicator of the need for this vital medication, and a testament to the department’s commitment to making medical marijuana available to patients in 2018,” he said in a press release.

Physician General Dr. Rachel Levine, who also serves as the acting secretary for the Health Department, called the response from patients and caregivers “extremely positive” and urged citizens to speak with their doctors about certification.

Last month, the state began issuing licenses to some industry operators, issuing the first of the 12 production licenses to Creso Yeltrah.

As of Nov. 1, more than 100 physicians have registered to recommend medical cannabis in the state.

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A large, trimmed cannabis nug lying sideways on a wooden surface.

Maryland MMJ Commission Director Resigns

The director of the Maryland Medical Cannabis Commission has resigned less than a month before the Dec. 8 deadline for dispensaries to begin operation, according to a Baltimore Sun report. Patrick Jameson, a former state trooper who took over the role in April 2016, will remain at the post until the end of the month.

According to Commissioner Brian Lopez, the commissioners did not request Jameson’s resignation.

In a statement, Jameson, the second executive director to resign from the commission in as many years, said, “the time has come for me to pursue other interests.” Jameson was named the new chairman by Gov. Larry Hogan while the state was in the review process. That process is the subject of an ongoing lawsuit by two would-be medical cannabis companies who accuse the commission of acting arbitrarily in denying them cultivation licenses.

“It has been an honor to help sick people and launch a new lucrative industry in Maryland,” Jameson said in the report.

Lopez indicated that 40 of more than 100 potential dispensaries are in the final stages of approvals and that the commission believes their “tone…is changing.” More than 95 dispensaries must be online by Dec. 8 or they could lose their opportunity to start their business.

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Payments and Cryptocurrency Firms Partner for Cashless, Crypto-Payment System

Medical Cannabis Payment Solutions and First Bitcoin Capital Corporation have announced a partnership to integrate cryptocurrency with the payment solution company’s StateSourced payment gateway. The collaboration would allow medical cannabis companies using Medical Cannabis Payment Solutions’ systems to accept StateSourced debit cards, WeedCoin, and other cryptocurrencies including Bitcoin.

Jeremy Roberts, CEO of Medical Cannabis Payment Solutions, said the project “has the potential of allowing consumers real-world non-cash payment solutions” and help businesses with the “regulatory hurdles” as the industry continues to be shut out from standard banking procedures.

“We will provide customers a world class experience with our vast compliance distribution network, including full compliance with [Financial Crimes Enforcement Network] and the Cole memo and through the inclusion of our state of the art StateSourced payment technology,” he said in a press release.

First Bitcoin CEO Greg Rubin said the “intent” of the partnership is to “revolutionize end-to-end processing of payments and compliance products.”

“With an industry serving a population of approximately 175 million people in over 25 states and one of the largest growing industries in the nation, America is set to be the world’s largest marketplace for cannabis,” he said in a statement.

As part of the deal between the two firms, Medical Cannabis Payment Solutions will purchase a block of WeedCoin from Cannabis Sativa Inc., for a block of restricted common stock.

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A cannabis worker plucks large leaves from the stalk of a freshly harvested plant.

Report: Global Cannabis Market Could Reach $31.4B by 2021

According to a Brightfield Group report, the global cannabis market is expected to reach $7.7 billion this year and $31.4 billion by 2021, representing a compound annual growth rate of 60 percent.

The researchers expect the adult-use market in Canada, expected to roll out in June, to hit $5.7 billion by 2021 – roughly half the size of the market in the U.S. Together the two markets will represent 86 percent of global cannabis sales by 2021. The group anticipates that European markets, led by Germany, the Netherlands, Switzerland, and Spain, will comprise another 12 percent.

Bethany Gomez, Brightfield’s director of research, said that by 2021 the U.S. will “drop from 90 percent of global sales to 57 percent.”

“However, much of the hype about international markets is overblown: only a handful of countries are opening the door to viable business opportunities and in order for companies to be successful they will need to have a shrewd understanding of the nuances and challenges of each specific market,” she said in a press release.

The report suggests that low THC, high CBD products have become “the most widely accepted globally” and many countries are permitting such products for importation and local development. The report indicates that while “Canadian companies are moving quickly to become leading cannabis cultivators, brands and distributors internationally” Australian and Israeli companies “are investing in medical marijuana research to corner the pharmaceutical marijuana market.”

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Rep. Blumenauer Launches Cannabis Fund to Unseat Prohibitionist Lawmakers

Oregon Rep. Earl Blumenauer has launched the Cannabis Fund – a political action committee geared toward ousting prohibitionist lawmakers – and the Democrat has his sight set on Texas Republican Rep. Peter Sessions as his “first target,” the Statesman Journal reports.

“We’re going to be putting up some billboards in Pete Sessions’ district … It’s going to feature a veteran and ask the question why Pete Sessions doesn’t want him to have access to his medicine,” Blumenauer said in the report. “We’re going to make the point that there are consequences. This is not a free vote.”

Blumenauer is a member of the bi-partisan Congressional Cannabis Caucus, which includes Republican Representatives Dana Rohrabacher (California) and Donald Young (Alaska), along with Blumenauer’s Democratic colleague Rep. Jared Polis (Colorado).

As of June, the last time the financial activity was reported, the Cannabis Fund had just $2,000 in contributions; however, during the 2015-16 election cycle cannabis-related political committee raised at least $177,840 led by the National Cannabis Industry Association ($104,066), the Marijuana Policy Project ($47,140) and NORML ($26,634), according to the Journal’s summary of Federal Election Commission filings.

“I want to see even more pro-cannabis candidates elected to Congress and continue the wave of reforms happening at the state level,” Blumenauer told the Journal. “And we want to make clear that there are consequences for those elected officials opposing what a majority of the public supports.”

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Medical cannabis plants housed in grow cages inside of an indoor grow.

Maine’s New MMJ Rules Permit Surprise Caregiver Inspections

The Maine Department of Health and Human Services released new rules governing how the state will oversee medical cannabis caregivers in the state, allowing unannounced inspections and rolling out a plant-to-patient tracking system, the Portland Press Herald reports. The new rules, which are set to take effect on Feb. 1, drew the ire of caregivers leading to one lawyer calling the new rules “a big invasion of privacy for small caregivers growing in their home.”

“It means that they have to be ready to open their door, at any time of the day or night, because they are growing medicine for sick people,” said Matt Dubois, a Bangor-area attorney who represents cannabis businesses. “That can make every knock at the door feel very intimidating, make them feel like criminals when they’re not.”

Under the current regime, the state can only inspect caregivers if they receive a complaint; but the caregivers have the right to refuse immediate entry and plan to reschedule a visit when they have an attorney present, Dubois said, adding that the new rules do suggest that officials will give caregivers a day notice before the inspection. The rules also require that caregivers fill out so-called “trip tickets” to document the movement of cannabis from a grow site to wherever they dispense the medicine to a patient. Under current rules, only dispensaries are required to fill out these tickets.

The new rules also prohibit telemedicine examinations for medical cannabis patients, which Dubois said will make it harder for rural Maine patients to access the program.

In Maine, medical cannabis patients can receive their medicine from either the state’s eight licensed dispensaries or from the 3,200 licensed caregivers. There are currently 50,000 registered patients, which has climbed 36 percent year-over-year, the report says.

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Automated Cashier Technology from Cannabis Cash Solutions Reduces Shrinkage, Theft

Cash flow in the cannabis industry is a constant and delicate process — from consumer to retailer, from retailer to processor, from processor to grower, etc. But for every successful transaction, a cautious entrepreneur is also aware of the risks, which can include theft (by customers or employees), the miscounting of cash, or even robbery. To combat these issues, Cannabis Cash Solutions offers improvements and augmentations for cash-handling practices in the cannabis space.

Cash handling goes arm-in-arm with security — so by utilizing the latest “smart vault” and automated cashier technology, Cannabis Cash Solutions helps provide entrepreneurs peace of mind with an honest and simple solution: consistency through automation. The company’s automated cashier service is a cash deposit system that transitions the responsibility of cash handling from budtenders (or other industry employees) to an automatic counting and change-dispensing system, similar to a modern supermarket’s self-checkout lane.

“With so many states becoming legal, there are tons of new consumers and, in many cases, they have a lot of questions. So rather than removing that and making it ‘self-service,’ we’re focusing on taking over just the cash-handling,” Andrew, company founder and CEO, said in a phone interview. “We wanted to offer something that preserves the one-on-one experience that you have with a budtender.”

The automatic cashier has three basic functions:

  • Intake cash from customers into a secure deposit vault.
  • Accurately calculate and dispense the customer’s required change.
  • Provide real-time updates tracking the amount of cash inside the unit.

Each step of this process helps to streamline cash flow in a retail setting, remove employee temptation by automating their cash-handling responsibilities, and reduce the threat of robberies by keeping cash secure and largely inaccessible. The automated cashier also frees up valuable time that would have been spent counting cash and removes the chance of a costly, time-consuming miscount.

At the end of the day, or whenever the deposit vault needs to be emptied or cash needs to be transported, an individual with proper clearance — a store manager or security personnel, for example — can access and remove the deposits via specially designed cartridges.

“From the transport standpoint, they like the idea of just being able to look at a report, see how much money is at a location, go in there, pull some cartridges, know that the count is going to match, and then take it back to their counting room,” Andrew said. “That’s opposed to what they deal with today in pretty much every case, where it’s the store’s responsibility to count all the money, they have to bag all the money, they have to tag all the money, then the transport company picks up the money, takes it back to their counting room, has to recount it, and then — if there is any issue in the count — they have to go in and figure it out.”

Cannabis Cash Solutions also offers deposit-only vault services, which are helpful not only in retail locations but also provide peace-of-mind to growers, delivery drivers, or any other individual involved with the constant flow of cash in the cannabis industry.

All vaults are easily operable, Internet-connected and provide real-time reporting. An API is available so that the systems can be integrated with a dispensary’s point-of-sale software.

To learn more about purchasing or leasing a Cannabis Cash Solutions vault or automated cashier, visit CannabisCashSolutions.com or call (559) 761-0883. Help with installation is available by request.

For a demo of the automated cashier system, see the video below. Alternatively, if you are attending MJBizCon in Las Vegas this November 15-17, stop by for an in-person demo at Booth #3540!

Watch a video demonstration here.

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The sun peeking through clouds behind a chainlink/barbed wire fence.

Indiana Prosecutors Pen Letter Opposing All Forms of Cannabis Legalization

The Association of Indiana Prosecuting Attorneys sent a letter to the chairman of the state Commission to Combat Drug Abuse asking the body to “formally oppose the legalization of marijuana in any form, for any purpose” claiming cannabis is “not medicine,” that its use increases opioid abuse risk, and legalization has had “devastating effects in other states.”

The association cites three studies they say show that legalization “could further exacerbate Indiana’s opioid epidemic” – one from the National Academy of Sciences, another from the Centers for Disease Control and Prevention, and another from Columbia University published in the American Journal of Psychiatry which concludes “cannabis use appears to increase rather than decrease the risk of developing nonmedical prescription opioid use and opioid use disorder.”

The letter, dated Nov. 3, does not include references to the National Institute on Drug Abuse research that led the agency to conclude that their studies “cumulatively suggest that medical marijuana products may have a role in reducing the use of opioids needed to control pain.”

Taking aim at medical cannabis, the prosecutors argue that there is not sufficient evidence to conclude that “whole plant” cannabis is medicine and that current information purporting as such is “based on half-truths and anecdotal evidence.” They argue further against medical cannabis because it is not recognized by the Food and Drug Administration.

Further, the attorneys argue that legalization has led to workforce issues, an increase in car accidents, and an uptick in youth use in legal states.

However, a study published in June found that 91 percent of cannabis consumers are employed full-time; studies concerning traffic safety in legal states are far from conclusive; and the National Survey on Drug Abuse released a study in September which concluded that teen cannabis use is at its lowest point since 1994.

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Jon Vaught: Cannabis and Tissue Culture Cloning

Jon Vaught is the CEO of Front Range Biosciences, a cannabis agriculture firm based out of Boulder, Colorado that specializes in tissue culture cloning for the cannabis industry.

Jon recently joined our podcast host TG Branfalt for an interview that covers his early career in organic chemistry and agriculture science, Front Range’s successful seed round of investments, how the company is revolutionizing cloning methods for the cannabis industry with tissue culture technology, the regulatory and logistical challenges they have faced along the way, and more!

Tune in to this week’s Ganjapreneur.com podcast episode 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 delighted to be joined by Dr. Jon Vaught. He is the CEO of Front Range Biosciences. You guys are doing some crazy stuff. How you doing today, Jon?

Jon Vaught: I’m good, thank you, Tim. How are you doing?

TG Branfalt: I’m great. I’m real excited to get at the meat of what you and your company does, but before that I want to know about you, man. What’s your background? How’d you get started in this space?

Jon Vaught: Yeah sure. So I, actually I grew up in North Carolina and I did my BS in Chemistry at North Carolina State and my PhD in Organic Chemistry at the University of Colorado at Boulder, so I’m a hardcore organic chemist is my background. I actually started my career in molecular diagnostics while I was in graduate school and I worked for a startup company here in Boulder, Colorado called SomaLogic. We were working on using the human protiome to better understand chronic illness, things like cancer, heart disease, inflammation and other chronic illnesses like that.

We worked with some big pharma companies, some big diagnostic companies, and developed the world’s largest proteomic biomarker discovery platform. We would just look at a group of proteins in blood and then use it to predict disease outcomes. I spent about five and a half years doing that and then I went to another startup company in the molecular diagnostic space. That company by the way, we grew to over, when I started it was a little less than 20 people and we grew to over 120 while I was there. Today they’re over 200 and into the tens of millions in revenue.

Then I went to a company called Beacon Biotechnology for food safety. They brought me on to develop a pathogen detection platform for food processing. So this was detecting bugs that make people sick, things like salmonella, E.Coli, listeria and building a molecular test that would allow large food processors to test this on the factory floor in a large scale. After a couple years there, I went to help my former PhD advisor Bruce Eaton start another molecular diagnostics company called Velocity Sciences and that was back on the human side.

I spent about two years getting that company off the ground with him. We were doing similar work to what we did at SomaLogic, working with several companies around drug development and better understanding certain pathways and disease and then building new technologies to help them do diagnostic tests. That’s when I really was starting to pay attention to the cannabis industry. I’d always been fascinated. It was actually my original inspiration for organic chemistry was what nature does with plants and a lot of the interesting compounds that are produced in plants, and so that’s kind of what sparked my interest.

So as the cannabis industry became legal here in Colorado, I began to look at it more seriously as a way that I could begin to actually take some of my formal training and apply it to this emerging industry. So originally started thinking about spinning up a division within that company and realized the corporate and regulatory constraints were too severe for what we could do within that company, so I decided to spin out one and that was the birth of Front Range Biosciences a little over two years ago.

Yeah, that’s kind of how I got into the cannabis space and I went very quickly from analytical testing and formulation type work to looking at agricultural technology, just seeing there was a huge need from growers to get access to the tools that had been developed for other farmers and other crops that they just hadn’t had access to due to prohibition. That was kind of became the foundation for Front Range and how we got started.

TG Branfalt: Then you bring Front Range, you end up in the CanopyBoulder Accelerator of some really great stuff has come out of this, and so tell me about your experience with CanopyBoulder. How did that program help get you off the ground and what did you learn from participating in the accelerator?

Jon Vaught: It was a great experience. One of our other co-founders, Nick Hofmeister, who’s our COO, he had actually been a mentor at CanopyBoulder for at least a year or so. He was also a mentor at TechStars. He’s definitely the business brains of our company. I have some of that, but not as much as he does. He’s got an MBA from MIT. Anyways, as he had that relationship there we began to talk to them about potentially participating.

So we decided to do that and we were fortunate enough to be able to join the program last year. It was a really wonderful experience. So between Nick and I, we actually have eight biotech company startups under our belt and so the kind of business building entrepreneurship 101 was not our main goal. It was really to build some relationships in the investor network for the cannabis industry as well as the just the broader industry relationships.

So potential customers, vendors, potential partners, collaborators, and to really get some exposure to that space. You know, the business building 101 was very helpful as well. It’s always great to have a structured environment to help get things organized, but yeah, so overall it really helped us a bunch. It helped us land some of our first investor conversations and our first investments. I went out and pitched at Demo Day at the Boulder Theater, which was great. Got exposure to close to 1,000 people.

Yeah, overall it was a really positive experience. Micah Tapman and Patrick Gray are great guys to work with. We still actively work together with them whenever we have the chance, whether it’s just networking or mentoring other companies in the program and yeah, it’s a great relationship.

TG Branfalt: Getting into the meat now of what Front Range Biosciences does, explain to me, I’m a layperson, what cloning tissue actually is and how do you grow a plant using this method?

Jon Vaught: Yeah, absolutely. Traditional cloning, which is what most people do in cannabis, is technically called vegetative propagation. This is where you take cuttings from a plant, and these are usually referred to as mother plants not only in the cannabis industry, but also in other industries, and you take cuttings from these plants. You dip them in some type of rooting hormone and some type of nutrients occasionally. You put them into a rooting plug. It could be some type of media, cocoa, rock wool, even soil, and it grows roots and you have a new baby plant.

This is the most basic, traditional form of cloning. It’s been done for thousands of years, and tissue culture is really just an advanced technique or advanced way of doing this. The challenge with, or the problem with traditional cloning or vegetative propagation, is that whatever pathogens, so you’ve got bacteria, you’ve got fungi, you’ve got things like bugs, mites, aphids, you’ve also got potential viruses. One thing that everybody’s probably very familiar with is tobacco mosaic virus. It’s something that came from the tobacco plant.

Anyways, all of these different pathogens can be found on any number of plants, including cannabis, so when you take a cutting from a mother plant, it has these pathogens. You’ve now just passed them right onto the offspring. So your clone now has those same pathogens. Now when you start fresh and you do it the first couple of times, usually the plant, if it’s alive and healthy and doing well, it can actually survive because it’s learning to live with these pathogens and it’s doing okay.

Over time as you clone again and again and again and again, the plant gets weaker, its immune system gets weaker. The pathogens get stronger and you eventually can end up with massive disease outbreaks. Powdery mildew is a great example of something that’s plaguing the cannabis industry all over the place. You go take, let’s say you’ve got 100 moms and you take a few thousand cuts from them and you go populate your grow room with them, if your moms were not healthy and they had any type of pathogen, and it could even be hidden, you might not even be aware that they had it, and then you put those few thousand plants in your grow room, you’ll now have a huge disease outbreak.

That’s the big problem with traditional cloning. It also gets hard to scale, meaning that you can only produce as many clones as you can grow mothers. So you have to grow, if you want to produce a million baby plants, you probably have to grow 100,000 mother plants or maybe 50,000. It depends on how many cuts you take from each plant. Tissue culture gets around this by starting out with your cutting in a sterile environment.

So we take plant material from a mother plant and then we put it into a cleaning process basically. We do a series of washes and then we get it into a tissue culture medium. This is basically just the most core ingredients that a plant needs to survive. Certain salts, nutrients, occasionally some hormones. It’s in a sterile environment, meaning the container that it gets put into has been sterilized so there’s no bacteria, no fungus, no bugs, nothing present.

Then from there the plant begins to grow. This is called the initiation process. This is actually one of the hardest parts of tissue culture is getting the plant stable, clean, healthy in this new micro-environment. You generally do it in a laboratory in a sterile hood. It requires some laboratory equipment. It’s not something you just do in your greenhouse. Once you get it into initiation, this process can take anywhere from three to six even nine months depending on how diseased the plant was, how healthy it was, and what the specific genetics are.

Then once you have it stabilized, then you can begin to do the multiplication stage, which is basically where you amplify the number of plants. So you start with one tiny little cut, and I mean tiny as in like one little node. So maybe one or two tiny leaves, a tiny little stem, less than an inch. As you grow this in the multiplication stage you create more shoots. They call that shooting.

You cut the shoots, then you do the same thing. You then plant those and you do this over and over again, but you’re doing it in these very small Tupperware containers. So for example, I can fit around 8,000 plants on a four by two bookshelf that’s got … Or a four by two set of stainless shelves, like kitchen shelving or whatever. There are five to six levels. I can fit several thousand plants per level.

It’s a very small space to have a very large number of plants. From there we just take them through a pretty standard, it’s a little bit different than a traditional cloning, but a pretty standard rooting process. You change the hormone and nutrient mix, you get them to grow roots, and then you transfer them to a rooting plug where they continue to develop those roots. Then they go through an acclimatization process, which is basically where they come out of their in vitro or their sterile environment into their natural world. They’re exposed to normal light, temperature, humidity, all of the things that they’re going to see in either an indoor grow, a greenhouse, or outdoors.

At this point the process really becomes the same. You’re getting the plants hardened off and ready for production. The advantage though is that we can do this 10,000 or 100,000 plants at a time where they’re all uniform, they’re all healthy, they’re disease-free, they’re stable, they’re vigorous. So in other plants you generally see more vigorous growth. You see much more reproducible starts from all of your clones and so it’s just a much more efficient way to do cloning. So that was a long winded answer to your question, but hopefully that did it.

TG Branfalt: I’m sure you’ve seen the episodes of Futurama where Fry’s in that little tube, and this is what I envision, that you have a lot of little clones, Fry clones in these tubes. From a layman, that’s how I sort of envision it.

Jon Vaught: You’re exactly right. You’re exactly right. We’ve got pictures on our website and sometimes we do it in test tubes, sometimes we use these small square boxes which look like Tupperware containers that are plastic. Yeah, that’s exactly what it’s like. It’s a little, it’s an interesting gelatinous substance that they grow in. It’s just got a few salts and some nutrients for the plant and then we put them under lights and let them grow. But it is a very specialized process.

TG Branfalt: I’m going to ask you some more in-depth questions about this whole process, the results, what results you get, but before we do that we’ve got to take a break. This is the Ganjapreneur.com Podcast. I’m TG Branfalt.


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TG Branfalt: Hey, welcome back to the Ganjapreneur.com Podcast. I’m your host TG Branfalt here with CEO of Front Range Biosciences, Dr. Jon Vaught. Before the break, you explained the cloning tissue process. Just a couple of questions about that. What you’re telling me is you would actually need less plants to create these clones than you would the traditional method, is that right?

Jon Vaught: Yes, exactly. So once we get through the initiation phase we begin to build up inventory of these plantlets is generally what we refer to them as. We can amplify that for months, even years, all from the same clone line without necessarily having to go back to another mother plant. So that’s how we can build up that inventory without … and save so much space compared to traditional clone where you have to grow a greenhouse full of mother plants.

TG Branfalt: That’s incredible. I’ve read quite a bit about some of the, I guess, byproducts of this process and it’s lauded as more environmentally friendly than traditional methods. Can you go into detail about how that ends up the case?

Jon Vaught: Yeah, absolutely. From a high level I think one of the biggest ways that it helps broadly and in terms of being more environmentally friendly is that it improves efficiency. You’re using less energy to produce the same number of baby plants. That’s the basic premise. You’re able to do this because as I just mentioned, you can use a much smaller footprint. In our tissue culture nursery for example, we might have several hundred thousand, even millions of plants in inventory, and that takes up maybe 1,000 square feet of space, maybe 500 square feet of space. That’s it.

We’re using low intensity lights, very simple climate control, so our footprint to keep that inventory of plants is much smaller. Now, we do still have to go through the eventual hardening off and rooting and getting the plants out, but we’ve saved all of that space or that energy that would have been dedicated to creating let’s say a few thousand mothers to get the same number of cuts, we’ve now saved all that energy. So that’s the first way.

The second way is really about minimizing disease outbreaks and minimizing the use of pesticides. So part of our tissue culture nurture program, a key point or a key component of it that I didn’t bring up yet is called the Clean Stock Program. We’re developing what we think is the first Clean Stock Program in cannabis and it’s been used in other industries, and the way a Clean Stock Program works is once we get through that initiation phase, we have the plants in very clean healthy environment, we know and can guarantee that they’re pathogen-free at that stage. That’s part of the Clean Stock Program.

The way we do that is we actually run a series of tests so these are tests for certain pathogens. It could be viral, it could be bacterial, fungal. We do these different tests, which is not so different than the type of molecular diagnostic work that I used to do. We use that to basically certify that this batch of plants is disease-free. So that’s kind of the basic definition of the Clean Stock Program. So what this means is less pesticides. So instead of getting a bunch of traditionally cut clones that might be infested with aphids, mites, powdery mildew, whatever you might be battling, depending on your growth region, you now have plants that are disease-free.

They’re healthy, you can start them off with a very clean start and they may get exposed to pathogens once they get into your greenhouse, into your grow, or even outdoors, but because they’ve started their life without those pathogens, they’re generally much stronger healthier plants and will require much less pesticides over time, especially early on. Because once a plant gets to a certain size and is vigorous and healthy, a lot of times it has natural pest defense. We even are starting to see that in certain cannabis varietals, which is a whole other topic for us, but on our varietal development program we’re looking at disease resistance.

But to summarize, I think minimizing pesticide use and increasing efficiency, everything from energy to labor and everything else are the ways that tissue culture is more environmentally friendly.

TG Branfalt: When you rolled this out, when you started offering this service, did people within the industry who were using the traditional method, did they look at you like you had three heads?

Jon Vaught: Yes, absolutely. To be honest, tissue culture is hard. Doing a new plant like cannabis that’s never been done in tissue culture, and some plants are easier than others. You might argue that potatoes are easier in some ways. You can stick a potato on your counter and it will grow roots. Cannabis doesn’t exactly do that. But yeah, so it’s very challenging. A few people had read some things on the Internet, a few folks had actually started to build some tissue culture programs and tried it out and had very limited success.

So there was a lot of skepticism. People were very much questioning whether or not this would work. Some people would get confused and think it was GMO or something and so, anyways, there was a little bit of education, but as we began to get out in the public and we’ve talked about it more, we’ve also started to demonstrate some early success with getting some rooted plants back that result in clean, healthy, vigorous plants that people are happy with. Then they started to understand and now we have people that are asking for it all over the country. That’s why we’re trying to grow as quickly as we can so that we can try to scale and meet some of that demand.

TG Branfalt: What do you think is the importance of you devising these new methods? Not just you, but there’s other people out there that are working on different ways to lower the energy footprint of the industry. I guess my question is what’s the importance of new methods as cannabis cultivation proliferates nationwide?

Jon Vaught: Yeah, that’s a great question, and it’s great timing of rit too because it’s where the industry’s in a major transition right now as it spreads not only within this country, but around the world. So from a high level this is agriculture. This is just like growing any other crop whether it’s for food or nutraceuticals or even ornamental plants. This is agriculture. Agriculture is farming, so you’re growing plants, trying to produce them in high quantities with good results, good production levels, and in general it’s very labor intensive, it takes a lot of time, it requires significant energy inputs.

So this results in what we see in our current agricultural industry worldwide, which is you’ve got a lot of commodity crops out there. It basically becomes a little bit of a race to the bottom, meaning who can grow the most in the highest product, the highest yield for the least amount of money? In the early days of an industry like right now where we’re at in cannabis, it’s a fairly high-margin business. If you do it right at least for a shorter period of time you open up a new market in a new state and nobody’s had access to this plant.

Now all of a sudden they’ve got access to it. The price per pound is very, very high and you sell out. You can’t even keep it on your shelves. However, as more and more producers come online and they get more effective and more efficient at production, then it starts to lower the price. Just simple supply demand economics. So as the price begins to drop, then competition starts to kick in. Then now you have businesses competing and the price is constantly going lower and lower.

We’ve seen this firsthand in Colorado. You can also look in new markets, like Massachusetts for example where the price per pound is probably four or five X what it is in Colorado today. Is it going to last that way? I don’t think so. So it’s really important for growers, and this is once again they were just taking lessons from all of the crops that came before this one, growers have to be more efficient and as they try to scale up it’s one thing to have a little backyard farm or even a few thousand square feet, a little greenhouse or whatever, but when you go to industrial scale agriculture where you’re producing millions of plants for example, growing and harvesting tons and tons of product, you have to be efficient. You have to be organized, you have to have quality control, you have to have SOPs, all of these things that make it work and allow you to maintain that low cost of production.

I think it’s incredibly important and fortunately in the last 20 to 30 years there’s a lot of great technology that’s been developed for other crops, so bringing that into cannabis is a great opportunity. Then another interesting facet of this conversation is that the cannabis industry itself now is actually driving new innovation in things like greenhouse design, indoor growing, lighting, all of these other things because it’s such a high margin crop right now that all of these companies that produce these kind of ancillary pieces are driving new innovations forward.

So I actually was just talking to a greenhouse manufacturer the other day and they said it’s incredible. The last 50 years greenhouse innovation was just kind of plugging along at a snail’s pace. In the last three years it’s just, it’s skyrocketed. There’s all kinds of new designs coming out, new technologies, so it’s a really exciting time in general for innovation and for improving efficiency. That’s really what we’re trying to do with our tissue culture Clean Stock Program.

TG Branfalt: Are you guys subject to the same sort of regulations about transporting over state lines with just the tissue of the plant? Does it still fall under those regulations?

Jon Vaught: Yeah, so technically we take a very conservative approach to regulatory. We’re actively trying to build relationships at both the state regulatory level and then even the federal regulatory level because whether we like it or not, that’s going to be the path to building this industry is working with those groups. So the conservative interpretation is that any plant material that’s cannabis is not legal to move across state lines currently because it’s under the Controlled Substances Act.

However, the 2014 Farm Bill around industrial hemp has offered some level of protection for plants that contain less then .3% THC. So you’re starting to see some companies moving hemp products or CBD products around state to state. Even seeds are getting moved. Often the way this is done legally is usually through that state’s Department of Agriculture. There are even some groups and universities and I think even some companies that are working with the DEA for example to get permits or clearance as well to move certain types of industrial hemp products.

But unfortunately right now until the federal regulatory status changes for this plant, shipping tissue cultures across state lines is not something that we would propose that anyone do. I don’t think it would necessarily be viewed as a legal activity, especially by the federal government. At this stage it’s still considered illegal.

TG Branfalt: Well, I want to talk to you a bit more about your fundraising activity, your investment sort of, your investment activity, but before we do that we’ve got to take a second break. This Gangjapreneur.com Podcast. I’m TG Branfalt.


At Ganjapreneur we have heard from dozens of cannabis business owners who have encountered the issue of cannabias, which is when a mainstream business, whether a landlord, bank, or some other provider of vital business services refuses to do business with them simply because of their association with cannabis.

We have even heard stories of businesses being unable to provide health and life insurance for their employees because the insurance providers were too afraid to work with them. We believe that this fear is totally unreasonable and that cannabis business owners deserve access to the same services and resources that other businesses are afforded, that they should be able to hire consultation to help them follow the letter of the law in their business endeavors and that they should be able to provide employee benefits without needing to compromise on the quality of coverage they can offer.

This is why we created the Ganjapreneur.com Business Service Directory, a resource for cannabis professionals to find and connect with service providers who are cannabis friendly and who are actively seeking cannabis industry clients. If you are considering hiring a business consultant, lawyer, accountant, web designer, or any other ancillary service for your business, go to ganjapreneuer.com/businesses to browse hundreds of agencies, firms, and organizations who support cannabis legalization and who want to help you grow your business.

With so many options to choose from in each service category, you will be able to browse company profiles and do research on multiple companies in advance so you can find a provider who is the best fit for your particular need. Our Business Service Directory is intended to be a useful and well-maintained resource, which is why we individually vet each listing that is submitted. If you are a business service provider who wants to work with cannabis clients, you may be a good fit for our service directory. Go to ganjapreneur.com/businesses to create your profile and start connecting with cannabis entrepreneurs today.


TG Branfalt: Hey there. Welcome back to Ganjapreneur.com Podcast. I’m your host TG Branfalt here with Dr. Jon Vaught, CEO of Front Range Biosciences. Tell me a bit about the success of your seed round. Your COO Nick Hofmeister, he described it as greater than expected. So tell me from your point of view about that experience and how it’s helped shape your company’s growth thus far.

Jon Vaught: Yeah, absolutely. We were very, very fortunate to have a good network of investors. It took a lot of networking and a lot of relationship building to build that up, which really all started with Canopy. They definitely gave us a good foundation to work from. But yeah, we were very fortunate, very successful. We went on to raise a million dollars as part of our, or as our seed round. We over-subscribed it and then ended up taking in a million and a half on that seed round.

We closed that earlier this year in early February and we actually had over-subscribed that, but we didn’t want to take anymore than the one and a half at that point and so it was a very great position to be in. It was a lot of work. We went after a lot of more traditional angel groups that were generally outside of the cannabis industry. One of the first groups that had the most intense due diligence process of all of the investments was the Sand Hill Angels.

They were a wonderful group to work with. They’re out of Silicon Valley and they’re known for their diligence process. We knew what we were getting into, but we went there several times. We built relationships. We presented and pitched their large meetings and were very successful. Getting them onboard and then after that we were able to get groups like the Harvard Business School Angels, New York Angels. Then we also had some private equity or institutional money as well that came into that round.

So yeah, it was a lot of work, but we did it in about I guess from start to finish it was about seven or eight months to close all of that money. During that time we started operations, we made our first hires, we renovated the first phase of the laboratory and we had a lot of things going on. But yeah, it was a really great experience. We’ve got a great family of investors. A lot of them are actively engaged in the company.

There’s also a fair number of individual angels that came out of whether it was the northeast or the west coast or even in the Midwest. We had groups or individuals come out of each of those regions. A lot of them are still actively engaged in the company. They’ve been making introductions for us. A lot of them have experience from their careers that they can give us feedback on certain aspects of our company and our growth plans.

So it’s been great. We’ve got a lot of great relationships there and actually since that seed round, we went out and raised another round just over the summer. We’re actually just in the process of closing that and so we’ll be issuing a press release here about that with the exact numbers and details sometime in the next few weeks, so stay tuned for that. Yeah, it was a very good fund raise and it’s really enabled us to focus on building the right infrastructure, the right team. One of the big milestones was we just brought on Cecilia Zapata. She’s a 30 year tissue culture veteran. She’s got a PhD from Texas A&M. She’s worked at companies like Dricol, Syngenta, let’s see, Ball Horticultural, a lot of the big agricultural companies in other crops.

She’s literally produced many, many millions of plants in her career. She’s built facilities in places like China and Mexico and California that can produce millions of clones a year and some of these other crops. Bringing on people like that has been enabled by that great investor support that we’ve had. So we’re going to continue to grow. We’re expanding our activities here in Colorado, building out more capacity, both for hemp clones as well as marijuana clones as we work with some of the licensed MED producers or cultivators on the marijuana side.

Then we have our own hemp nursery that we’re pushing out that will be offering clones in spring of next year. Then we’re also actively expanding into California. I’m actually going to be out there. I’m flying out tomorrow, but I’m spending a lot of time out there building some relationships. We’ve already got lots of growers that we’re working with out there and actively identifying space that we can start our operations there, which we intend to be operational in California in 2018.

So yeah, so the strong investor support has enabled all of that. I have to say, coming from traditional biotech and it’s a very competitive fundraising space, a lot of those institutional investors are not really into cannabis yet. They’re starting to look at it actually. It’s starting to happen. We really had to build a new network of investors, but it’s a pretty exciting time. There’s a lot of folks that are interested in investing. They see the opportunity, they see the potential and so putting together a good business plan, having strong financials, a good team I think is kind of the keys to drawing in some of that money.

TG Branfalt: You’ve successfully had two investment rounds. You’re expanding into California, big congratulations to you there being as you’ve only been around a couple of years. What advice might you have for other entrepreneurs looking to get into this space?

Jon Vaught: Yeah, that’s a great question. My personal advice, with my experience, in general starting a business is a lot harder I think than people often realize. It takes a lot of work and a lot of dedication. A lot of people want to start it because they want to work for themselves or whatever their reasons might be and I think to be successful at it you have to have your heart into it and you have to really believe in what you’re doing and you have to be ready to dedicate and make sacrifices.

It can take a lot of long hours. Generally speaking, looking at other industries, other businesses, which we have decades or even a century of data on, it can take three to five years to build a successful company that’s stable, approaching some level of profitability. So that’s three to five years of being down in the trenches, starting from scratch, hiring people, building infrastructure, developing business plans, building relationships, all the things that go into a business.

It takes a ton of time. I think my advice is to make sure you’re ready to sign up for that, you know? Make sure that you’re ready to dedicate that time and energy and that you believe in what you’re doing and you want to go do it. If you do that you’ll find that the right people show up, whether it’s investors, customers, partners, future employees, those, you begin to attract those types of people when you’ve got that energy and you’ve got that drive out there and you’re pursuing a goal.

I think that’s one of my big pieces of advice is to get ready. It’s a lot of work and to be ready to make the commitment. I think the other thing is to do your homework. Don’t rush into things. I think spending a lot of time doing diligence, learning about the industry, learning about potential target customers for your business model, learning about the regulatory constraints, the different types of corporate structure that you could use, how you’re going to make money, how you’re going to pay taxes, what types of employees you’re going to hire. Doing your diligence on all of these pieces is really, really important and I think a lot of times people start with an idea, and yeah, an idea is where it all begins, but there’s so much more to it than just that idea.

A lot of times as you begin to explore these things your idea will pivot or it will evolve and so I think early on, not committing yourself too quickly to oh, this is the company. This is what we’re doing and just going out and doing it, but taking your time learning about these different pieces and then once you have a good model, then going for it.

The last piece of advice I would give is to get some good mentors in place. I’m a big believer, I’ve had amazing mentors in my life. I wouldn’t be here without them. I think finding mentors that have experience, that have built companies, that have sold companies, that have built teams, that know how to do this and can give you feedback and advice and support is really, really important. I’ve got several mentors currently and so does my business partner Nick. It’s a really important piece of being a successful entrepreneur.

TG Branfalt: I want to congratulate you one more time on all of your success thus far. It’s a really fascinating thing that you’re doing and I’m really thankful that you took the opportunity to share it with me and explain it in a way that I could actually understand. That’s not an easy task when you’re talking to a guy with absolutely no background in science.

Jon Vaught: Well, thank you. I really appreciate the opportunity, Tim and I’m glad that yeah, hopefully I was able to answer some questions and shed some more light on it. Yeah, it’s been
a real pleasure speaking with you and having the chance to tell more people about what we’re up to.

TG Branfalt: Where can our listeners find out more about you, the company?

Jon Vaught: We have a website, www.FrontRangeBio.com. That’s the easiest way. There’s multiple links there to reach out to us by email. My email address is JVaught@FrontRangeBio.com. It’s J-V like Victor-A-U-G-H-T @FrontRangeBio.com. You can email me directly, but yeah, we’re also putting out some press releases. We’re updating our website again over the next month or so, so kind of stay tuned. You’ll probably see some changes over the coming weeks and months, but yeah, that would be the best place to find out more.

TG Branfalt: Well man, I can’t wait to get that press release to see how much you raised in this second round of investment and definitely keep us in the loop on everything Front Range because it’s really, really fascinating stuff, especially to me.

Jon Vaught: Awesome. Well, thank you Tim. I really appreciate it. We’ll definitely stay in touch and yeah, we’re excited to be a part of this industry and we’re going to go back to work.

TG Branfalt: You can find more episodes of the Ganjapreneuer.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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Indoor cannabis plants that belong to a medical cannabis patient in California.

New Jersey & Virginia Governor-Elects Support Cannabis Law Reforms

Following yesterday’s elections, the governor’s seats in two states will soon be occupied by Democrats supportive of cannabis law reforms; as Phil Murphy defeated in Republican Lt. Gov. Kim Guadagno in New Jersey, and Lt. Gov. Ralph Northam defeated Republican Ed Gillespie in Virginia.

Murphy had made recreational cannabis legalization one of the planks in his platform and in his primary victory speech indicated he wanted to sign a legalization bill within his first 100 days in office. His election drew praise from advocates and pro-legalization lawmakers in the state as he replaces staunch prohibitionist Chris Christie.

State. Sen. Nicholas Scutaro, sponsor of a legalization measure in the state, told NJ.com that it’s “full steam ahead” toward legalization following Murphy’s election.

Scott Rudder, president of the New Jersey CannaBusiness Association and a New Jersey legislator from 2008 to 2012, said in a statement that Murphy’s election represents “a win for medical cannabis patients” and “the first step in fixing decades of failed and unjust cannabis laws.”

NORML Executive Director Erik Altieri opined in a press release that Murphy’s victory was “because of, not in spite of, his open and vocal support for legalizing marijuana.”

In Virginia, Northam will replace outgoing Gov. Terry McAuliffe, in what many pundits are calling a rebuke of President Donald Trump. While Northam’s cannabis reform opinions are not ‘full steam ahead’ like his New Jersey counterpart, he did pen a letter to the Virginia State Crime Commission in August calling for decriminalizing simple cannabis possession in the state. In that letter, Northam called the state’s cannabis sentencing and enforcement laws “costly and disproportionately harmful to communities of color.”

Northman suggested that the $67 million in savings derived from decriminalization could be used to create 13,000 pre-k openings.

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Detroit Voters Approve Proposals Relaxing MMJ Dispensary Rules

Voters in Detroit, Michigan have approved two measures to relax restrictions on medical cannabis facilities, which will make it easier for dispensaries to do business in the city, according to a Detroit Free Press report, with 95 percent of precincts reporting. The proposals would eliminate city-approved ordinances last year which took effect in March that led to the shutdown of 186 of the city’s 283 dispensaries.

The initiatives, led by Citizens for Sensible Cannabis, eliminate the Board of Zoning Appeals’ ability to review dispensary applications, allow dispensaries to open within 500 feet of one another and religious institutions, and eliminate requirements for public hearings and comments before a dispensary could open.

The measures also establish a process to license dispensaries which bypasses the Detroit City Council and opts into the licensing regulations of the state; dispensary operation hours have also been extended from 8 p.m. to 9 p.m.

Earlier this month, regulators in the state decided to allow current medical cannabis dispensaries to continue operating while the state migrates to a more regulated industry without impediment to receiving an operations license under the new regime. The Bureau of Medical Marihuana Regulation is now accepting pre-qualification licenses from current operators until Feb. 15, 2018. Michigan officials are expected to begin issuing licenses by April 2018.

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Young cannabis buds in an indoor grow environment.

Manitoba, Canada Premier Unveils Provincial Cannabis Industry Plan

Manitoba, Canada Premier Brian Pallister has laid out his plan for how the legal cannabis industry will operate in the province, preferring a “hybrid retail and distribution model that allows both the public and private sectors to do what they do best” rather than a wholly government-run system.

The model will give the Liquor and Gaming Authority regulatory power of the wholesale purchase, storage, and distribution of cannabis, while the Manitoba Liquor and Lotteries Corporation will secure and track the supply. Private companies will run the retail locations. The locations will not be permitted to co-locate with alcohol sales.

The plan differs from other provinces, including New Brunswick, which will see NB Liquor control the supply chain through a subsidiary.

“Legalization of cannabis is a major shift in public policy and safety remains our top priority,” Pallister said in a statement.  “MBLL oversight of supply and distribution will ensure safety, and retail by the private sector will ensure competitiveness and accessibility which will help achieve our goal of getting gangs out of the cannabis business.”

Pallister added that allowing private companies will prevent the provincial government from having to immediately invest public money into the storefronts and should provide Manitobans with a more diverse retail market.

MBLL will source products directly from federally licensed producers and sell to the retail stores. All transport and storage will be managed by the MBLL, or through LGA-approved contractors.

Officials are now seeking proposals from potential retail store applicants through Dec. 22. Initial locations are expected to open July 2, 2018 — just one day following the official launch of Canada‘s adult-use cannabis regime.

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The official red, white, and blue flag of Luxembourg.

Luxembourg Parliament to Consider MMJ Pilot Program

European Union nation Luxembourg plans to launch a two-year medical cannabis pilot project, according to an AFP News report. The plan, which would allow officials to determine who should have access to the program and under what conditions, still requires parliamentary approval.

Health Minister Lydia Mutsch indicated the government plans to limit access to individuals with cancer, multiple sclerosis, and other debilitating conditions. Prescription authority “should be limited to certain specialists like oncologists, neurologists, and internists,” she said in the report.

“This must be an exception in a controlled and secure setting,” she added.

Luxembourg has allowed the use of medicines containing cannabis ingredients since 2012, but not the raw plant.

Mutsch, who introduced the measure, indicated she plans to present amendments to the draft governing medicinal use of drugs by the end of the year and, if approved by Parliament, the pilot project could commence in 2018.

Luxembourg neighbors France, which does not permit any cannabis use; Germany, which legalized medical cannabis use earlier this year; and Belgium, which does not have any legal cannabis access but “tolerates limited personal possession,” according to the report.

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Prison barbed wire wrapped in circles around the top of a prison fence.

Massachusetts Bill Would Allow Some Cannabis Convictions to be Expunged

A criminal justice reform bill making its way through the Massachusetts legislature would allow individuals convicted of cannabis possession to completely expunge the record, according to a MassLive report. The House provision is part of a broader criminal justice reform package that includes language allowing citizens with otherwise clear records to expunge some offenses 10 years after conviction, and after any period of probation or incarceration is complete.

Under current state law, individuals convicted of cannabis possession can petition a judge to have their record sealed; however sealed records are still available to law enforcement officers, courts, and some licensing agencies.

According to the report, expungement would be available for juvenile convictions; convictions for a single crime committed between the age of 18 and 21; criminal charges that were adjudicated without a conviction; erroneous convictions; and for charges that are no longer criminal, such as cannabis possession.

The state Senate has already passed a version of criminal justice reform, and the House version is set to be amended before being sent to a bi-cameral legislative committee which will come up with a compromise bill that will be reintroduced and voted on by both houses.

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View of the Maine Statehouse in Augusta, Maine with autumn colors in the trees.

Maine Lawmakers Fail to Override Gov. Veto of Adult-Use Regime

Maine lawmakers were unable to override the veto of the legislature-approved recreational cannabis implementation measure by Gov. Paul LePage, according to several media reports. According to a Herald Gazette report, the House voted 74-62 to override the veto, falling short of the two-thirds required; the Senate did not vote because the House did not reach the majority.

According to Democratic Rep. John Spear, who voted to override LePage’s veto, the 17-member special committee that drafted the measure did a thorough job authoring the measure, which passed the committee 15-2.

“Remember this is not about legalizing marijuana, the citizens have already spoken on that question, this is about responsible implementation,” he said in the report.

Rep. Owen Casas, an independent who voted to uphold the veto, said he had concerns over language in the measure that allows excise taxes to be paid directly to municipalities rather than the state, noting that local regulators would likely have trouble trying to deposit cash of $10,000 or more into federally-regulated banks. He indicated that the Legislature would revisit the issue when they reconvene in six months.

In his veto message, LePage said the measure drew a veto because he has concerns about the conflict of legalization with federal law, the timeliness the regime would be rolled out, and the adult-use law’s compatibility issues with the state’s medical cannabis program.

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CRATIV Packaging’s New ‘Mini’ Cannabis Packaging Product Perfect for Concentrates, Edibles

CRATIV Packaging is a Colorado-based packaging firm that has — since the 2015 launch of their first product, the Original — cemented itself as an ancillary resource for the budding cannabis industry. Earlier this year, the company unveiled a new product, the Mini, which is designed to carry smaller products such as cannabis concentrates, edible candies/confections, pre-rolls, or even vape cartridges.

All CRATIV packaging products are certified child-resistant and the company ensures their products are compliant with state laws in every market where they are distributed. Together, the company’s founders share a combined 60 years of experience as packaging engineers; today, CRATIV distributes packaging products from its Denver warehouses to cannabis markets throughout the United States.

The Mini is the company’s latest packaging solution for the cannabis industry and is essentially a smaller version of the Original, which has proved explosively popular since its launch two years ago.

“We have created a very utilitarian product that meets a diverse set of needs,” said Amy Wessman, CRATIV’s vice president and marketing/sales director. “All our products are recyclable or upcyclable, meaning you could use them for something else, including day-to-day storage for items such as headphones, jewelry, or pocket change.”

CRATIV also offers resources for cannabis entrepreneurs to learn more about the industry’s packaging requirements on a state-by-state basis and — for startups who haven’t quite filled out their branding and marketing materials — Wessman said the company has also secured partnerships with labeling companies and graphic designers who can help a client nail down the final look and feel for their brand. “At the end of the day, there’s so much potential in the cannabis industry that we’ve created a strong foundation here,” she said.

Finally, knowing that many of the nation’s cannabis entrepreneurs are still running relatively young companies, CRATIV maintains low minimum order requirements for their packaging products to keep things start-up friendly. “We don’t ask clients to buy truckloads,” Wessman said. “We’re a business to business company. We started out small too, and we had a lot of partnerships with companies who were very gracious in order volumes. So in turn, to give back to the industry, we are very gracious to startups as well.”

CRATIV sales reps strive to create a friendly B2B experience that is personalized to each specific client, their end goals, and the state regulations under which they operate. To learn more about CRATIV’s latest cannabis packaging solutions or to get in touch with a sales rep today, visit CRATIVPackaging.com.

 

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The front door of a tidy, rural country house.

DEA Spokesman: Agency Not Going to ‘Break Down Door’ of Parents Administering CBD to their Children

In an interview with Indiana’s WTHR, Drug Enforcement Agency spokesperson Rusty Payne admitted that while parents giving CBD oil to their children are violating federal law, it is unlikely they will face federal prosecution for their actions.

WTHR: What would you tell the mom and dad who are buying this stuff and giving it to their kids because it helps them get through the day?

Payne: Am I speaking as a DEA spokesman or as a father? Because I am a dad. As a father?

WTHR: Yes.

Payne: I’d do the same exact thing — without hesitation. I cannot blame these people for what they’re doing. They are not a priority for us … it would not be an appropriate use of federal resources to go after a mother because her child has epileptic seizures and has found something that can help and has helped. Are they breaking the law? Yes, they are. Are we going to break her door down? Absolutely not. And I don’t think she’ll be charged by any U.S. Attorney.”

Yet, despite Payne’s opinion, he asserted that CBD marketing and sales still run afoul of federal law and “anybody who’s in violation always runs that risk of arrest and prosecution.” Yet, while many people argue that the 2014 Farm Bill protects the selling of products derived from industrial hemp, Payne maintains that the DEA believes the measure only protects CBD research.

However, Payne admitted that “people are not dying from CBD” and that the agency’s “biggest priority” was the national opioid crisis.

“According to the CDC, in 2015 we lost 52,000-plus Americans – 52,000 – and a good portion of those are from opioids: heroin, fentanyl, prescription drugs,” he said in the interview. “That has to be our priority right now. Not CBD.”

Payne’s comments come less than a week after another federal agency, the Food and Drug Administration, sent warning letters to four CBD companies demanding that they stop making claims that their products “prevent, diagnose or cure cancer.”

Despite Payne’s comments, the agency he represents continues to consider CBD a Schedule I drug with no medicinal value.

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Camera at water-level looking at the sunset on the ocean.

Hoban Law Group Planning International Expansion

Hoban Law Group, a full-time, full-service cannabis industry law firm based in Colorado, is planning to expand internationally with multiple offices in the European Union and two offices in Latin America. The European offices are expected by late fall while the Latin America offices are expected by spring 2018.

The firm has already been working internationally for several years; advising governments on cannabis policy and facilitating international business transactions. The new offices will deal with regulatory law, equity placement, worldwide trade, merger and acquisition transactions, and structured finance.

“HLG steps in to global markets quickly as our direct work with government officials on policy and regulation has kept us in this important global curve,” said Managing Partner Robert Hoban in a press release. “We have accepted the challenge of being global cannabis industry leaders & experts and will work with strategic partners, such as New Frontier Data, to move the industry forward across six countries.”

In 2010, the firm became Colorado’s first cannabis industry-focused law firm, and the first in the nation in 2013. The group currently has attorneys in every state and territory where legalization has occurred.

In August, Hoban Law unveiled the first national TV commercial that uses the word “cannabis” on CNN, Fox News, Fox Business, MSNBC, Headline News, and Viceland.

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The Statue of Liberty in New York, New York.

New Yorkers Can Vote for a Path to Legalization Tomorrow, Nov. 7

Voters in New York will decide tomorrow, November 7, whether or not to host a Constitutional Convention in 2019. If approved, Con Con (as it is known in some political circles) could become a platform for the statewide legalization of adult-use cannabis via an amendment to the state’s Constitution.

The combination of today’s political climate — where cannabis reforms are popular among voters but not lawmakers — and New York‘s status as a non-referendum state make this potentially the state’s best and fastest road to enacting cannabis reforms.

New York’s Con Con vote is held just every 20 years and is a rare opportunity for voters to directly influence and reform state laws. Here’s how it works: voters tomorrow will vote yes or no on Proposition 1. If successful, the Con Con process will begin in 2018 with the election of 204 delegates — three representing each of New York’s 63 senate districts, plus an additional 15 individuals from anywhere in the state. Anyone who has lived in the state for at least five years can run to be a delegate.

In April of 2019, the delegates would convene to debate issues facing the state and, if a popular consensus is reached, the delegates can then propose a constitutional amendment(s) to be put to a popular vote in the following general election.tat

It’s a long and complicated process, but — for a state that does not allow citizen petition initiatives — it is New York’s only chance at a grassroots legalization effort for the next 20 years.

“This is a once-in-a-generation opportunity,” said Jerome Dewald, director of Cannabis4NY.org, in a phone interview with Ganjapreneur. Dewald said that, although legalization may not ultimately be embraced by the delegates of a potential 2019 Con Con (though it certainly could), there are other ways the convention could help, such as an amendment to make New York into a referendum state like Colorado, Washington, or any of the other states who have already embraced the end of cannabis prohibition.

“This is the tried-and-true method we have used over the last 21 years to reform marijuana laws in 29 states and Washington DC,” Dewald said. “Recent polls show that almost 80% of New York voters support this kind of constitutional amendment.”

There are currently eight states in the U.S. with cannabis legalization laws on the books, all of which were enacted following the popular approval of a citizen initiative. Just 24 states and the District of Columbia allow citizen initiatives — New York, and the majority of states located in the South and North East, do not.

A legalization proposal has only been approved by both of a state’s legislative bodies one time, in Vermont, but that measure was immediately vetoed by the governor.

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Digital collage of Gov. Paul LePage.

Maine Gov. Vetoes Legislature’s Adult-Use Implementation Package

As expected, Maine Gov. Paul LePage has vetoed the legislature-approved adult-use cannabis implementation measure, citing the conflict of legalization with federal law, its compatibility issues with the state’s medical cannabis program, regulatory concerns, and the timeliness the regime would be rolled out.

“Until I clearly understand how the federal government intends to treat states that seek to legalize marijuana, I cannot in good conscience support any scheme in state law to implement expansion of legal marijuana in Maine,” LePage, a Republican, wrote in his veto message. “If we are adopting a law that will legalize and establish a new industry and impose a new regulatory infrastructure that requires significant private and public investment, we need assurances that a change in policy or administration at the federal level will not nullify those investments.”

David Boyer, the Marijuana Policy Project Maine political director and campaign manager for the 2016 Yes on 1 campaign, called the governor’s decision a “mistake.”

“Instead of a regulated and controlled system of marijuana cultivation and sales, Maine will continue to support the unregulated market,” he said in a statement. “In 2014, the governor said he would implement a legalization law if approved by voters, but he has failed to uphold that commitment.”

Boyer notes that Massachusetts Gov. Charlie Baker, also a Republican, campaigned against the legalization efforts in that state in 2016 but has since “respected the outcome and moved forward with implementation of the law.”

“It is unfortunate that Gov. LePage has not done the same,” Boyer added. “Seven other states have passed legalization initiatives over the past five years, and none have seen this type of obstructionism from their governors.”

LePage claims to have reached out to Colorado Gov. John Hickenlooper, who he said was “adamant” Maine should learn from other states that have pursued legalization.

Lawmakers are expected to vote on an override, potentially later today.

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Ground charred and burned from a recent wildfire.

California Growers Association Hosting Wildfire Relief Fundraiser

The California Growers Association is holding a fundraiser on Thursday for its Wildfire Relief Fund to help at least 44 cannabis farms and related businesses in Mendocino and Sonoma counties affected by last month’s fires. The organization estimates that at least $40 million in wholesale values were lost from the fires directly, and expect a recovery cost of at least $3.4 million.

The group is working to confirm 11 more reports of affected businesses, and there are several other unconfirmed reports of impacted farms in Santa Cruz, they said in a press release.

So far, the CGA has raised $104,720 toward their goal and have made no expenditures from the fund.

“Thankfully now the Northern California wildfires are contained, and this natural disaster seems to be behind us,” the organizers said in the release. “Tens of thousands of acres were burned, thousands of structures destroyed, and people from all walks of life were displaced.”

Musicians Melissa Etheridge and S.A. Martinez of 311 will be auctioning off signed memorabilia at the event to help raise money for the fundraiser.

“The immediate need we face is to support the affected farmers who, like many of us in the cannabis space, lack protections that are available to other businesses and so we are rallying the entire cannabis community together behind this cause,” the CGA said in a release.

The event is being held at the DTLA Art Gallery.

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The David Lam Park in the Chinatown district of Vancouver, British Columbia.

IBM Pitches Blockchain Tech to British Columbia, Canada Government for Legal Cannabis Tracking

IBM is pitching blockchain technology to the British Columbia, Canada government as “an irrefutable chain of custody audit for the seed-to-sale of cannabis.” According to the Oct. 1 document, IBM says the technology can help the government “take control of sourcing, selling, and pricing” of cannabis products, assist producers with inventory management in real time, and assist retailers identify supply and demand gaps “and ways to mitigate those gaps” including providing feedback to producers and using data to create “predictive insights.”

In the document, the company boasts the security and transparent features of blockchain technology – it’s distributed among users, it uses cryptography to prevent alterations, and it is shared among all parties in the network.

“Its relevance to regulating cannabis is similar to its many chains of custody applications in areas such as pharmaceutical distribution and food chains,” the document states. “The core to those supply chains is the same, assuring health and safety of consumers, preventing fraud and counterfeiting while creating a foundation of transparency upon which to base regulation.”

At least two technology startups have already targeted Colorado’s legal cannabis industry as a market for their blockchain tech; and in September, Paragon launched both a cryptocurrency and blockchain service aimed at the cannabis space.

Officials in British Columbia have not yet announced the full details of how they will regulate the legal cannabis industry in the province once federal legalization rolls out; however, more than 48,000 British Columbians responded to a recent government request for public comments on the issue as part of an ongoing engagement process by a provincial government working group.

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