Banks in Uruguay Closing Accounts of Pharmacies Selling Cannabis

International anti-money laundering laws are forcing banks to abandon Uruguayan pharmacies legally selling cannabis, according to a Business Times report. Jorge Polgar, president of the state-run Banco Republica, said 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.”

Danilo Astori, Uruguay Economy Minister, said officials didn’t know the banking issue would be a side-effect of legalizing cannabis in the nation but that they are looking for a solution.

A source within Santander of Spain, which operates in Uruguay, indicated they would also close any accounts with ties to the legal cannabis trade.

“As a global bank with clients in various countries, we have to observe the various norms in force in those places,” the source said in the report.

Julio Calzada, one of the architects of the law with former President Jose Mujica, said he would reach out to banks in U.S. states with legalized cannabis to figure out ways around the restrictions of international law.

“There are alternatives,” Calzada said. “But not in Uruguay.”

Adolfo Garce, a political scientist at the University of the Republic, called the setback “a major blow” to the government and the Broad Front, which is led by Mujica, who now serves as a senator.

“Having made so much progress, having planted and harvested the marijuana and delivered it to the pharmacies … not being able to sell it due to an unforeseen problem is a very hard blow,” he said.

More than 10,000 individuals have registered with the government to purchase cannabis from 16 pharmacies throughout Uruguay.

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CBD Store Opens in West Virginia

The Appalachian Cannabis Company, which specializes in CBD products, has opened in West Virginia – the first store of its kind in the state, WCHS/WVAH reports. The shop is owned by Chris Yeager, who spent a few years in Colorado learning about CBD and the cannabis industry.

“We wanted to bring the knowledge, we wanted to bring the experience and we want to spearhead this industry for the state of West Virginia,” Yeager said in the report. “We want to be able to provide a non-psycho[active], non-addictive product, and we’re able to do that with CBD.”

In April, the legislature passed, and Gov. Jim Justice signed, HB.2526 which included language to legalize the sale of hemp-derived CBD products in the state and the measure took effect on July 7. Justice also approved in April a bill expanding the eligibility for West Virginia hemp cultivation licenses.

West Virginia officials only just began developing the rules and regulations for the comprehensive medical cannabis program in May, and the CBD shop does not fall under the jurisdiction of the medical cannabis program.

The Appalachian Cannabis Company is offering a wide-variety of company-branded CBD products, including capsules, gummies, liquids and lotions.

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Vermont Lawsuit Challenges Search and Seizure When Officer Claims Cannabis Odor

A lawsuit over a vehicle search after a traffic stop based on the alleged odor of cannabis is headed to the Vermont Supreme Court after being thrown out by a lower court in May, according to a VT Digger report. The lawsuit by the American Civil Liberties Union on behalf of Gregory Zullo alleges that the Rutland resident was improperly pulled over and searched, and his vehicle illegally seized.

According to court documents outlined by the Digger, Zullo, an African-American state resident, was stopped in March 2014 by Trooper Lewis Hatch – who has since been fired – and ordered to exit his vehicle “based on the alleged odor of burnt marijuana.”

“Hatch seized Mr. Zullo unnecessarily for an hour and had Mr. Zullo’s car towed to the barracks for a search, which revealed no contraband,” the ACLU’s docketing statement states. “To retrieve his car, Mr. Zullo walked and hitch-hiked eight miles home through sub-freezing temperatures, waited several hours at the barracks, and was forced to pay a $150 fee.”

Criminal charges were never filed against Zullo. Hatch was fired for his pattern of conducting illegal searches, which usually targeted black men, Seven Days reported in May 2016, five months after he was terminated. Hatch has subsequently appealed that decision to the Vermont Labor Relations Board.

Hatch claimed that the reason for stopping Zullo was because the registration sticker affixed to his license plate was obscured by snow; however Zullo’s attorney, Lia Ernst, contends that racial profiling is to blame.

“When the alleged reason for the stop is something that nearly every vehicle driving in Vermont in winter would be in the same condition, we have to ask why stop this vehicle and not some other vehicle,” she said in the report.

The lawsuit also challenges whether Vermont police should continue to use the “sniff test” as justification for searches as possession of 1 ounce or less of cannabis has been decriminalized in the state since 2013.

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Nevada Court Rules Against Liquor Wholesalers in Cannabis Distribution Case

A Nevada District Court judge has denied a preliminary injunction sought by liquor distributors to prevent the state Tax Department from licensing cannabis businesses to distribute recreational products from cultivators and manufacturers to retailers, the Las Vegas Review-Journal reports. Carson City District Judge James Todd Russell ruled that alcohol wholesalers were unable to satisfy the demand for deliveries; however the liquor distributors do have the right to appeal to the tax commission, he said.

Russell also determined that the Tax Department could move forward with plans for emergency regulations to license cannabis businesses to distribute products. Dispensaries selling adult-use cannabis have seen a 20 percent to 30 percent drop in sales since the launch of recreational sales due to distribution problems.

Attorney Kevin Benson, who represents the Independent Alcohol Distributors of Nevada, indicated he would appeal to the Tax Commission and has “already requested a stay” from the Tax Department, who oversees the state’s adult-use cannabis industry. He argued that if cannabis businesses are granted distribution licenses before a stay is approved, the exclusivity provided to liquor wholesalers under the voter-approved adult-use cannabis measure would be moot.

Senior Deputy Attorney Michelle Briggs said that of the 61 liquor distributors in the state, just seven applied to distribute cannabis, likely due to the risk of losing their federal alcohol licenses by working with the cannabis industry. Two medical cannabis companies have applied for alcohol distribution licenses which would allow them to distribute cannabis products under the law.

The Tax Department has not commented on how they would move forward on the licensing issue.

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German Doctor Enters Hunger Strike in Protest of Nation’s ‘Bureaucratic’ MMJ Laws

The chairman of the German Association for Cannabis as Medicine, Dr. Franjo Grotenherman, has entered an “indefinite” hunger strike until Germany “decriminalize all citizens who need cannabis to treat their serious diseases,” according to a press release from Grotenherman published by MarijuanaPolitics.com.

In the release, the long-time cannabis activist called Germany’s medical cannabis law “too bureaucratic” and said it makes treatment with medical cannabis “unattractive for doctors who in principle support such therapy.”

“The legislature has taken a great step into the right direction,” Grotenhermen said in a statement. “However, many patients are still dependent on a still as illegal regarded treatment. They face criminal sanctions. This is no longer acceptable. Therefore a basic clarification in the narcotics law must be established. The prosecution of patients to whom a doctor has certified the need for a therapy with cannabis must end.”

Further, Grotenherman argues that “the need for cannabis therapy should not be judged by the judiciary, a government agency or a health insurance company,” rather the decision should be between a patient and their physician.

“I am not aware of a convincing argument by which patients’ prosecution can be maintained,” Grotenhermen said. “A corresponding amendment to the Narcotics Act is, therefore, logical and unavoidable.”

Grotenherman has launched a website that includes background on the German laws and further explanation of his hunger strike.

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A cluster of buildings in downtown Detroit, Michigan.

Competing Cannabis Legalization Ballot Measure Unveiled in Michigan

Michigan’s Board of Canvassers has approved a second potential 2018 ballot measure to legalize cannabis use in the state, which the sponsor, Timothy Locke, calls “the Second Amendment of cannabis,” the Detroit Free Press reports. The measure would nullify all of the state’s cannabis laws and permit its use without taxes, fines, or penalties.

Additionally, the measure would release anyone imprisoned for state cannabis crimes since 1970 and expunge certain state-level criminal charges related to cannabis possession and use. It would have no effect on federal sentences.

Because the Abrogate Prohibition Michigan proposal would amend the state constitution, it would require 315,654 valid signatures from registered voters to appear on 2018 midterm election ballots.

Josh Hovey, spokesman for the Coalition to Regulate Marijuana Like Alcohol – who has collected more than 100,000 signatures for their ballot initiative to tax-and-regulate adult-use cannabis in the state – said he couldn’t “imagine Michigan voters supporting” the now-competing proposal.

“The public expects responsible marijuana regulation that includes licensing, quality control and assurances that minors will not be able to access it,” Hovey said in the report.

Locke indicated to the Free Press that his proposal would be an economic boon because cannabis can be used to manufacture 50,000 products.

He expects to begin collecting signatures next week.

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Cannabis plants inside of a licensed cultivation center in Washington state.

Survey Finds Marketers Lukewarm to Enter Cannabis Space

According to a survey by Emerging Insider, a content relations firm, marketers throughout North America are split on whether or not they would be open to working with the cannabis industry. The survey of 600 marketers found 43 percent of respondents were willing to take on cannabis industry clients, while 32 percent said they would not be open to taking on clientele in the space. The remaining respondents indicated they would need to check with their company executives.

Of the companies who said they would work with cannabis industry operators, 52 percent said they would be so inclined due to the potential revenue derived from the space; 29 percent indicated “it would be an interesting or fun area to conceptualize campaigns”; and 19 percent felt it would “provide a novel challenge.”

Of the respondents indicating they would not be willing to market cannabis products, 38 percent believed doing business with the industry would “lead to a negative perception of their firm”; 26 percent indicated they do not possess the necessary expertise to be involved in the industry; 20 percent said they had “no interest” in the cannabis space; and 16 percent believed the industry is “not yet robust enough to make it worthwhile.”

One of the most prevalent issues marketers faced in considering the space was the legality of cannabis, and 85 percent of respondents said the “first step” to industry involvement would be to hire counsel, while 68 percent admitted they “have little knowledge” about cannabis marketing laws on a state or national level. Fifty-seven percent of those surveyed believed that public relations would be the “strongest marketing integration” due to cannabis advertising laws, while 24 percent indicated search engine optimization marketing would be the best way to enter the space and avoid regulatory issues.

The vast majority of respondents, 80 percent, indicated traditional advertising platforms are “years away” from being able to properly handle legal and regulatory challenges associated with the cannabis space; and respondents were divided about where the greater opportunities for marketing-related growth in the space lies – 53 percent said the consumer-based products and services sector provided a greater growth opportunity, while 47 percent believed business-to-business would scale more rapidly.

Just 6 percent of respondents claimed they did not see venture capital funding becoming robust in the space during the next five years, while 70 percent indicated venture capital would “increase substantially” over the next year.

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Photo of downtown Los Angeles from the Hollywood Hills.

Los Angeles, California Cannabis Regulators Approved

The former California coordinator for the Drug Policy Alliance has been tabbed to run the Los Angeles Department of Cannabis Regulation, the Los Angeles Times reports. Cat Packer, 26, was the choice of Mayor Eric Garcetti to run the agency and was unanimously approved by the City Council.

The council also approved the mayor’s Cannabis Commission nominees, who will provide input to the Department of Cannabis Regulation on the city’s rules. Philip D. Mercado, Southern California Permanente regional chief of general surgery; Rita Villa, a certified public accountant; Robert Ahn, a former member of the planning commission; Victor Narro, a former member of the Police Permit Review Panel; and attorney Misty Wilks will comprise the five-member commission.

Los Angeles budget officials have earmarked $789,800 this fiscal year for the department. City Comptroller Ron Galperin has estimated the city could see $50 million in taxes derived from $700 million in sales in the city.

Under the city’s cannabis industry draft rules, which are still being finalized, businesses must have a plan to hire local residents and if a company has 10 employees they must have a labor peace agreement. The rules propose three licensing phases; the first round allows current medical operators to apply for a license, the second for social-equity applicants, and the third will be the general application period.

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Distribution Woes Cause Decline in Nevada Adult-Use Sales

Nevada dispensaries selling adult-use cannabis are struggling to meet demand, causing a 20 to 30 percent drop in sales since the program’s launch, according to Department of Taxation figures outlined by the Reno Gazette-Journal. Distribution problems continue to plague the market, which has led to product selections being reduced by more than half.

“These (retail marijuana) businesses are struggling without a robust distribution system,” wrote Deonne Contine, director of the Tax Department, in the report. “Cultivators and producers have product sitting for days waiting to be delivered to stores while the quality of the product degrades. Retailers do not have the products their customers desire, products that are legal and should be available to them.”

The dispensaries say they need at least nine to 11 deliveries per week, but they are waiting up to two weeks for new product deliveries. More than five dozen dispensaries and more than 12 alcohol distributors, who are tasked with delivering cannabis products, were surveyed for the report.

Just one distributor, Crooked Wine, is currently operating in the state with Blackbird Logistics Corporation doing all of the operations for the company. Blackbird is servicing 99 wholesalers and making 100 to 150 deliveries per day.

Chad Strand, Blackbird COO, said the company is delivering to “every dispensary in the state,” covering 10,000 miles in the few weeks it has been licensed to make cannabis deliveries.

The adult-use law approved by voters in November includes language that only permits alcohol distributors to distribute cannabis throughout the state. After dispensaries started running out of products, the Tax Department devised emergency rules that allowed cannabis companies to apply for distribution licenses, but that measure was challenged in court by the state’s liquor distributors.

The issue could be resolved today as Carson City District Court Judge James Russell will consider the case and could use the Tax Department report in his decision.

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The U.S. Capitol Building in Washington DC, where DCMJ protesters staged a smoke-in rally on 4/20.

Possession Charges from 4/20 Capitol Rally Dropped Against DCMJ Founder

The co-founder of D.C. Marijuana Justice, Adam Eidinger, had possession charges that were levied against him following his arrest during an Apr. 20 demonstration in Washington, D.C. dropped after the Drug Enforcement Agency determined that the 78 joints found in his possession were less than the 2 ounces allowed under the District’s adult-use laws, the Washington Post reports.

Eidinger was one of eight protesters arrested while handing out joints to congressional staffers as part of the demonstration. He had spent one night in jail and made multiple court appearances related to the case.

“To me, this means that they don’t understand that people have a right to give cannabis away in the District and they don’t have a very good legal argument to prosecute them,” Eidinger said in the report.

Eva Malecki, a spokesperson for Capitol Police, said that federal law had applied to the case; however Bill Miller, spokesperson for the U.S. attorney’s office, said that local charges were pursued but did not comment on why they were applied instead of the federal charges. Under federal law, it is illegal to possess any amount of cannabis.

If convicted of the charges, Eidinger could have been sentenced to six months in prison.

Another protester, Jessica Laycock, also had her possession charges dropped but is seeking to have the cannabis and paraphernalia returned. Capitol police have said they will not return the property because cannabis is a controlled substance under federal law.

Eidinger and other protesters still face charges from an Apr. 24 rally for allegedly consuming cannabis on federal grounds.

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Large plastic bags of trimmed cannabis product.

Cannabis Transportation: Developing a New Market

Where does all the cannabis industry’s cash go, and how does it get there? Someone is moving all that cash and product around the state, but it’s not your usual delivery people doing it: there is a whole new industry in cannabis transportation that has developed following the reform of cannabis laws. But this industry demands professionalism, forethought, and compliance.

In California, for example, highway patrol has done a fantastic job in recognizing how quickly this market is evolving and has been quick to teach officers the need for up-to-date documentation whenever cannabis product is in transit. Without the right papers, how would an officer know the product you have is not stolen or produced illegally? What if your company had a truck stolen — how would you lock it down and make sure your product and/or cash is safe? Staying compliant with remote management software and solid road management/inventory systems, as well as the use of instant-on or always-on video systems, enables cannabis transporters to be confident in any and all interactions with law enforcement during their journey.

However, there are also areas where state officials may have dragged their feet. For example, existing California laws require that the product is locked in a box in the back of a vehicle. This minimum state regulation keeps product safe, but not the people carrying or delivering it.

Planning for the worst and expecting the best

Numerous electronic measures now exist for auto-interrupt and/or climate control remotely on rigs running in this space. One thing to consider adding would be climate control alerts so that you’re always aware of the product temperature where your cargo is riding. Also important may be a battery backup cord should your truck run out of power and your cargo starts getting hot in the middle of the desert — then it becomes critical until your rescue vehicle comes to swap things out. Most importantly, GPS alone will not solve all of your issues.

This part of the business is expensive, so do your research! Whatever you do, surround yourself with professionals who understand how to keep procedures in place and compliance at the front of everything you do. Then, hire a great legal team to make sure you have all of the licenses and applications in place.

Have a comprehensive plan of action:

  • Route planning to avoid large areas without escape routes;
  • Scheduled maintenance done in advance to not take a truck or vehicle out of rotation;
  • Daily inspection of all vehicles to ensure the technology is in working order;
  • Route mapping software and delivery information systems like roadnet.com, Geotab, and others;
  • Create a technology plan to understand your customer need. Ask questions of the customer – do they need refrigeration? Do they need RFID tracking? Will the upcoming 2018 track and trace protocols be an issue to existing infrastructure?
  • Maintain supply chain best practices, including documentation of all anomalies;
  • Safety and security training to ensure risks of high-value deliveries are minimized.

Overall, even with the most solid standard operating procedures you still will have things pop up in the cannabis space that you might not expect, like the occasional request to move product to another state (a HUGE NO under federal and state laws) or the Russian mobster who meets you at 2 am outside of a shady building and says, “we will do big business together.”

Our space has challenges like no other that can be helped by security professionals. So, if you have a consulting business in security, a plumbing or A/C group, electricians that know green houses, or an alarm company — now is the time to start looking at this space and working towards your first customers.

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Nation’s First Hempcrete Public-Use Building Opens in Idaho

The first public-use building constructed from hempcrete has opened in Ketchum, Idaho, according to a KOMO News report. The Borah Basin Building was designed by Hempitecture who partnered with non-profit Idaho BaseCamp for the project.

The construction took three years to complete, financed largely by $27,000 raised through Kickstarter.

Hempitecture founder Mattie Mead said he discovered the building material his senior year in college while looking for natural building materials to “create more insulating, more efficient, and less energy-intensive homes.”

“And through that study hempcrete stood out to me as above and beyond one of the greatest options for creating a building that is not just energy efficient but is also healthy.” He said in the report. “So in essence our building and our walls are carbon sinks – they take carbon dioxide out of the atmosphere. Whereas most other building products are carbon positive – they put out more carbon dioxide than they absorb.”

Mead called the building experience “really special” because he worked with community members who were “instrumental” in the project.

“There’s something that’s remarkably inspiring about being 45 minutes from the nearest town and being able to be sheltered, warm, comfortable, have facilities to use, and to have a space to connect with themselves and the natural environment around them,”  he said.

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Ben Ward: Expanding Internationally with Maricann

Ben Ward is the CEO of Maricann, a licensed medical cannabis operator in Canada who recently announced their international expansion into Germany’s nascent medical marijuana industry.

Ben recently joined Ganjapreneur.com podcast host TG Branfalt to discuss the intricacies and future of Canada’s cannabis industry, the recruitment of Maricann’s expert talent and executives, how using green technology has benefited the company’s cultivation facility, Ben’s thought process leading up to and throughout the company’s landmark expansion into Europe, and more!

Listen to the podcast via the player below, or keep scrolling down to read a full transcript of this week’s Ganjapreneur.com podcast episode.


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey, there. I’m your host, TG Branfalt, and you’re listening to the Ganjapreneur.com podcast where we try to bring you actionable information to normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today we’re joined by Ben Ward, he’s the CEO of Maricann. How you doing this morning, Ben? It’s great to have you on the show. You have a lot of stuff going on, but before we get into all of that, that great news, let’s talk about you, what’s your background? How did you end up in the cannabis space?

Ben Ward: Yeah. My background is working in international development and infrastructure projects, and then I worked for a family office, a group of Canadians, and built their projects on their behalf, and one of the things that we looked at investing in the early stage much before Colorado legalization was the cannabis market, and then made some real estate investments in different US states based on cannabis opportunities and the cashflow that existed from them, and then learned a lot about the industry from those opportunities, and then decided to get fully involved and moved ahead and got full-time in the cannabis industry.

TG Branfalt: Here in the US there’s a hodgepodge of cannabis laws depending on where you are. In Canada, medical marijuana right now is federally legal, so what I’d like you to do is can you tell us how the creating a canna-business works in Canada?

Ben Ward: Sure. You have to apply to the federal government, to Health Canada, for a license to produce and distribute cannabis, and then that process is quite rigorous. There are over 2,000 applications that have gone in, and only 51 have been granted, so there’s quite a few barriers to entry. You have to first build your complete facility, have to install all of the requisite security plan for that, you have to install all of the fertigation systems, grow area, everything from the cloning process all the way through has to be specified in SOPs, you have to show how that’s compliant with Health Canada regulations, and then all the way through to your drawing and extraction process for oils. You basically have to build it and they will come with the hope that the government will license you.

Maricann was the 256th applicant in 2013 for a license from Health Canada, and received its license to cultivate in March of 2014, and has been operating since with a cultivation and distribution license, and we’ve been operating with our extraction and distribution of extracts license since September of 2016. Not all licenses are created the same, getting involved to be a cultivator and a distributor is quite intense and requires a lot of specialty staff, qualified persons, individuals with scientific background because we treat it like a pharmaceutical product, it has to be grown as medicine and treated as medicine right from the very beginning.

TG Branfalt: I took a look at your staff, you have a very versatile and experienced executive staff over there, what do you look for with regard to talent? What’s the most important attribute for you as a CEO looking for this talent?

Ben Ward: It really all depends on what area we’re looking for, when we’re looking for sales and marketing, we’ve looked for the nutraceutical world, there are a lot of parallels there from where the nutraceutical world was starting to become popular 30 years ago. In that space, everyone thought that nutraceuticals were snake oil, they weren’t required, you could get everything you needed from eating food, which is true but if you’re not getting everything you need from eating all the right foods, nutraceuticals can help, so you had physicians who didn’t recommend taking things like vitamin C or other things like that, now 98% of physicians take a nutraceutical every day. There’s a lot of parallels how to penetrate the market, a lot of experience from that, and we’re focused on improving people’s health and wellness, so we look at parallels from the marketing side for that.

When we look at the formulation side, we’re going to the pharmaceutical world. We hired our director of operations for our Langton site, our main cultivation area, from Apotex, a large generic pharmaceutical producer. Then, our qualified person, who’s a PhD in Germany, Thomas Kron, his background was running the Bitterfeld Facility for Bayer where they made nine billion capsules a year.

It depends on the area of the business where we’re looking, but we can pull and draw talent from a lot of great existing talent from different industries that have parallels to the cannabis industry. For cultivation, we went to Colorado to Midwest Ranch where they produce cannabis in a large greenhouse grow operation, and we brought in Jeff Ayotte and Jen Ayotte who worked there, and got them to put their experience over five years there to work here. It’s a matter of having to have relationships in a lot of different areas and draw and pull talent from people who have the applicable skill sets. There’s no real one solution fits all.

TG Branfalt: When you’re finding people outside of the cannabis space, as you had mentioned, pharmaceutical firms, what is their initial reaction to entering this space? Is there hesitation on their part because it’s cannabis?

Ben Ward: Definitely. When you look at our founding group, Neil Tabatznik and Raymond Stone, two of our directors, and Eric Silver, who’s a physician, going from the pharmaceutical space and medical supply business where they had been successfully in the past, and our COO, Terry Fretz, who had run two large pharmaceutical businesses into cannabis, there was a hesitation of, do I really want to be involved in cannabis? Is this something that my grandkids would want me to be involved in? How is this perceived socially? All the people we have on board don’t have an issue with it, but I’ve gone through the process of interviewing individuals, specifically in Canada and Germany, who would have fit really well, but because it’s cannabis when the job offer went out, they just couldn’t get past it and couldn’t move there.

We’ve been disappointed by some individuals who don’t want the stigma attached to themselves … At the same time as an ethical business, people that we do business with and people who are involved in the organization need to be proud of what we do and say that this improves people’s lives and there’s an opportunity for us to work at a brand new industry that’s expanding globally. It’s an exciting time.

TG Branfalt: In our last interview we were discussing Germany for a print piece, and you and I briefly discussed green technologies that you employ, specifically a concession road site that you guys operate, netted you a $4.5 million grant for expansion on that project, can you tell you me about the green technology methods that you employ and how this was appealing enough to get you such a huge grant?

Ben Ward: Yeah. There are standard grants in the province of Ontario in Canada that apply for energy efficiency and rebates, so what we’re doing is we’re taking one natural gas source and turning it into four different forms of energy, and we create all of our CO2 through that, all of our required heat, and we create all of our electricity through natural gas, cogen. That gave us a great efficiency rating where the facility is actually 97.5% energy efficient. We’re working with Rockwell Automation, with Johnson Controls.

Rockwell Automation, another group based in Cleveland, very conservative company traditionally, we have $3 million of automation we’re putting into our facility, and the CEO of the company said, “We’d be proud to work with Maricann and to publicly disclose that because we’re an ethical company and we’re not going to be ashamed of the people that we work with. We won’t just take your money and say that we don’t have a relationship with you and not support the … like you see with a lot of groups working in the US because they’re afraid of the federal prosecution possibilities.” Working with Rockwell gives access to their main systems that we’re incorporating, and the automation systems that make us energy-efficient, operationally efficient, and we have high-performance new manufacturing credits from the province of Ontario as well.

The rebate total, once we’re fully done, the upfront portion is 4.5 million. Over five years, the government will give us back $14.2 million because of energy efficiency. If we look at a total, $27 million we’re paying for our whole operation of 217,000 square feet, with the natural gas, cogen, in place, all of the Automation boiler systems, expansion, and all of the upfront investment provides the required site services for the next 600,000 square feet of expansion.

When we look at that number, over 50% of our whole project is rebated by the province because we’re energy-efficient, so capturing our own rainwater on the roof, taking that into cisterns, filtering that and then using that for our ebb and flood system rather than just pulling from groundwater. That’s incredibly efficient. Every optimization and efficiency that we could possibly put in place, we’ve done, including our glass system from Havecon in the Netherlands and all the automation from Rockwell.

TG Branfalt: That’s really incredible. Here in the states, California, as they’re rolling out their recreational market there, they’re mandated to use a certain amount of water, not use too much water, depending on where the rules land. They’re still working those out, but in the initiative approved by voters, water usage was a big thing. As you might know, California goes through droughts. Conservation doesn’t sound like something that was mandated in Canada, so as the CEO, why was it important to you to ensure that you incorporated clean and green tech into your expansion and your building?

Ben Ward: It’s the dirty secret about the green industry is that it really isn’t that green. The number one input for most cultivation operations, especially indoor, is electricity, so you’re burning a lot of electricity, it gives you a long tail pipe, and then water, the amount of water that’s used and not recycled by most groups is significant, and you create wastewater because all the nutrients that are in the water can’t be … For most groups that don’t recycle them, they just flush them and then they end up in the sewer system or becoming groundwater contamination is a future possibility.

Then, your third highest input cost is usually labor. Your first two inputs are not beneficial to the environment. The main person responsible and credited with the green initiative for us is, Jeff Ayotte, and he built it in Midwest Ranch in Colorado down near the New Mexico border in a little town called Boone. What they did … The groundwater and the water rights were more expensive, the water was more costly than cannabis, so they put together a system of water conservation, recirculation, collection, so we took his learning, his experience, and put that into play in our operation in Langton because we were looking for a green solution so that we weren’t guilty of being one of the culprits of creating green medicine but not being good for the environment.

What Jeff did in Colorado, and partly because he was forced, was got every single efficiency out of the operation for energy and every single efficiency out of his water in his operation, so we took that learning and incorporated it into our facility in Canada. His experience in working with Johnson Controls and Rockwell Automation gave us the opportunity to put all of the systems in place and do it right for the first time, so from Jeff taking everything he owned and putting into Midwest five years ago, and stubbing his toe all along the way, having a paid education there, and taking that learning as he’s now sold that operation to Mahatma and bringing his learning to Canada, has been incredibly beneficial for us.

That was based on my experience in investing in the cannabis world, being introduced to the right people, and knowing who we wanted to bring in, back to where do you source and find talent? In the cannabis world, everybody will tell you they’re a grower, everybody will tell you they put together a shiny little Christmas tree with trichomes and something that could win a cannabis cup, but when you go to it and you meet the people who really have developed a cannabis-cup award-winning strains, the people who are the real volume operators from a cultivation side, it becomes really lean six Sigma operations where individuals have figured out how to get the most and the best out of the plant, but at the same time how to be energy efficient, green, and consistent with the philosophy of improving the world and improving people’s wellness but not harming the planet at the same time.

TG Branfalt: Well, I really want to applaud your efforts for incorporating green and clean technologies. We got to take a quick break. This is the Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt with Ben Ward, CEO at Maricann.

In some interviews that I’ve read with you, you’ve also often mentioned whole plant medicine and referred to two lesser-known cannabinoids, the CBG and CBN. There’s not a whole lot of discussion on these, we’re all pretty familiar with CBD, obviously, THC. What has your company found with regard to these two compounds, CBG and CBN?

Ben Ward: What we’ve really found is that with CBN specifically, and I will say and be very clear that there is no clinical evidence at present, we haven’t done the research, which is one of things that our company is engaged in as actually completing meaningful research, doing the pharmacokinetic profiles, getting the baselines and understanding where we’re at from a starting point from cannabis and then moving through and benched to clinic research, and sponsoring that. But with CBN, you have a muscle relaxant effect.

We look at CBD and talk about its effects and what we know in retrospective analysis and being able to calm spasticity, and relax muscles ends, and to slow possible seizures, and everyone’s been focus on CBD as the miracle drug. When we look at whole plant, what I’m talking about is taking all of the benefits of the plant, finessing off and taking fractions of the … We preserve the flavanoid and terpene profile of the plant, and then extracting the different cannabinoids and taking those individually through a thin film distillation and combining those back together in the ratios that we like to have, that we believe, or could be effective for treating different symptoms that people have.

CBN and CBG haven’t been proliferated within the plant in strain development. People have been focused on THC, people have been focused from genetic development on CBD, you see the CBD industry and medical hemp industry has produced some great strains and genetics. But what we’re seeing through CBN is a muscle relaxant effect, and that in combination with CBD and working with the endocannabinoids system, it helps keeping the body balanced. Individuals who suffer from muscle spasticity, and chronic pain, and fibromyalgia, CBN is showing to be extremely effective to help people managing their pain. You need to take the whole plant. He can’t just take CBD pills and expect that that alone is going to be effective. When people take CBD capsules, you’re really just taking something that isn’t water-soluble, isn’t able to be dispersed in the stomach or the intestinal lining, you’re not absorbing it, it goes through, and then it’s metabolized in your liver. First pass metabolism isn’t the ideal way to absorb medicine. If you’re doing that, you’re destroying 85% of the cannabinoids and just creating really expensive urine.

What we’re focused on is actual absorption, bioavailability of the plant. A lot of people will talk about bioavailability and its importance, we see that in the nutraceutical world, which is why I made a parallel to that earlier, so that we’ve gone and sourced technology from the nutraceutical world, that’s patented by a group in Switzerland, that helps to take cannabinoids, which are only usually lipids, which are only lipid soluble, and have to … When you ingest a cannabis, as we’ve experienced, you end up with an edible … It has a stacking effect because it goes through first pass in your liver, takes 45 minutes to an hour and a half to onset, and that’s where you usually have most of the problem with people greening out or having other issues from that.

With our technology that we have, that’s globally patented, and we have the rights for cannabis for in hemp globally, the cannabinoids are suspended in an emulsion, they can be ingested in a capsule form or functional beverage, the applications are endless, or inedibles. Then, they disperse in the stomach and can be absorbed in the stomach and the intestine, so on your onsets within 5 to 15 minutes, and you get 80% to 85% of the cannabinoids absorbed.

When we talk about whole plant extract, it’s taking the whole plant, taking the terpenes, the flavonoids, more than just THC and CBD, or one or the other, and getting really the synergistic and synchronistic effects of the whole plant. That’s what gives you the wellness opportunity and benefit, instead of just taking one isolate and expecting that to be the magic cure.

TG Branfalt: That’s far more advanced than a lot of what we hear here in the states, do you credit that at all, the advancements that you’ve made, to the little more welcoming research community in Canada?

Ben Ward: Yeah. I accredit it to four years of legalization. Colorado was the absolute epicenter of cannabis four years ago, and our scientific director worked in Colorado and he decided to come to Canada because he can do all the research that he needs, and then that opened the world to, “Wow. Well, here’s an opportunity, here’s what these people are doing in Switzerland. Here’s what these people are doing in Germany.” Then, you pull together from the international space, and then what we did is took technology from the nutraceutical world, from the pharmaceutical world, then paired it with what we know about cannabis, and when you merge those two together then you have an opportunity to take existing delivery systems, things that people are comfortable with, that physicians, that pharmacists, that people in general as patients are comfortable taking … When you have a capsule that can have an onset effect and help to reduce chronic pain that has an onset in five minutes or 10 minutes, and isn’t a gummy bear or something that has other effects on your health and will stack in your liver, is just taking those advances globally from other industries, and quite frankly, from technology that Big Pharma uses, and applying it to the cannabis world.

I’m excited about taking the best in class opportunities and moving them into cannabis. I think you’ll start to see these roll out in the US as well as the market develops, as the market becomes more mature. It’ll move away from being pre-rolls and other things like that, into things that people take as everyday medicine, that are things to improve their lives.

I think that the discussion about inhalation will start to decrease, and we’ll see people that we see in our average patient is 55 years old plus, female, and suffers from fibromyalgia chronic pain. Those are people who aren’t familiar with cannabis, as I wasn’t when I started after a car accident 10 years ago, and if they can have a traditional delivery method instead of having to inhale, it’s much more approachable for them.

TG Branfalt: You had mentioned Germany, and I want to discuss that in a bit more detail, but before we do that we got to take a short break. This is the Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Welcome back to the ganjapreneur.com podcast. I’m your host, TG Branfalt, here with Ben Ward, CEO of Maricann. Before the break, you had mentioned Germany, I’ve written a couple thousand words about your guys’ entrance into Germany, just for people who may not have read that piece or may just be hearing about Germany’s federal medical cannabis legalization for the first time, why did you choose Germany to expand?

Ben Ward: I was over there three and a half years ago and worked with a group in Munich for quite a long period of time in another related business, and this article started coming out, you started to see the front of the newspaper talking about cannabis activism was moving ahead, individuals are interested, there is a groundswell of support for it, so what I looked to do is to secure a facility that would be ideal for cannabis cultivation and would be a great place that we could complete extraction and do pharmaceutical formulations of cannabis.

One of the groups that I worked with there, the company’s called Zollner, Z-O-L-L-N-E-R, they’re one of the world’s largest manufacturers of electronic components for the automotive industry, and their head of facilities globally is a great friend, they operate in five continents, and I showed them what I was looking for, what we were doing in Canada, and he said, “Well, I have a perfect facility for you. Why don’t you fly to Dresden and see it?” I flew over there and looked at the facility, put a down payment on it personally, and then ended up purchasing the facility, so I saw three and a half years ago where Germany was going. The plant was a formal cargo operation, was built at their cost of €80 million 20 years ago, and I was able to pick it up for €3.4 million because of the uniqueness of the facility, it couldn’t be used for warehousing or anything else, or logistics, so it’s perfect for cultivating cannabis, so we wrapped it up.

People made fun of me, they call me the Sausage King, that I used to be the sausage guy, … so I was a butt of a lot of jokes, and in most conferences people would snicker and laugh at me, but then when Germany legalized medicinal cannabis in January of this year, all of a sudden the phone calls started coming in and everybody’s trying to buy in or partner. Not every risk that you take in life works out, but that was a big risk, personally, that I took, and my wife said well … She would have liked a summer home rather than a sausage factory in Dresden, but it ended up working out for us.

We’ve gone through the process, we’ve outfitted 75,000 square feet for research of genetics to really dial in what we’ll be able to produce there and move ahead in cultivation. The cost to outfit that whole area of 75,000 square feet was only €940,000, so what was something that was a laughingstock, three and a half years ago now has worked out pretty well.

TG Branfalt: How similar are the German rules compared to the Canadian rules?

Ben Ward: The German rules are somewhat similar to the Canadian rules but even more strict, more restrictive, you have to cultivate indoors, you’re not allowed to cultivate in a greenhouse, so the security plan is more restrictive, but where I think that the German system really won and moved ahead is on the distribution side. In Canada, we have to distribute direct to patients, we’re not allowed to distribute to pharmacies, so individuals go to their physician, then they’re referred to a cannabis clinic in Canada, and then they have to get their prescriptions, then register directly with a licensed producer like Maricann, and then they have to go through the registration process, fulfill their order and then they get it shipped to their home. That may sound easy and simple, but people are creatures of habit, they want their order fulfillment in the same day, they go to the physician, they want their medicine because they went to the doctor because they have a problem.

In Germany, what they did is they’re distributing through pharmacy. They can go to their physician, they can get their prescription, they can go to their pharmacy, they call their insurance company beforehand, cannabis is covered as a complementary therapy in Germany under 26 of the 28 insurance companies there, and then they pick up their product from their pharmacy. They made it easy and accessible for people. There’s no special store you have to go to for cannabis, cannabis is normal medicine. I think that’s really important for where we’re going in the future involving pharmacists, and just seeing it as cannabis, not as this taboo product that has all of these questions about it. It’s medicine, it helps people increase their life, and whether somebody is in palliative care, someone is in end-stage cancer, or someone’s suffering with chronic pain, or if they move over to the lifestyle where people are using it to destress or other things like that, I just think the normalization of cannabis and destigmatization of it is important. I think Germany really got it right in treating it as regular medicine.

TG Branfalt: We read a lot about the tender process, what you had to go through, are you still going through that? Can you explain what that tender process is in Germany?

Ben Ward: Yeah. We’re still going through the tender process in Germany, it’s a submission by groups with experience for qualification to bid to supply the … which is the head of their cannabis agency with product on a wholesale basis. That’s one of the aspects of what they’re doing in Germany.

Then, currently there’s an import market to groups of narcotics wholesale licenses, and that’s how the product’s being distributed, so that market is moving ahead quite rapidly as well.

TG Branfalt: Are they allowing flower there or is it just oils? What products are going to be available in Germany’s medical cannabis market?

Ben Ward: Right now they have Drabinol, which is produced by Bionorica, a herbal plant manufacturer. That’s provided to patients at their pharmacies. It’s a plant extract, and it’s quite restricted but it’s an extract that people use to deal with chronic pain or to increase appetite.

Then, when you have flower, which is distributed … Right now most of the market is flower being distributed to pharmacies, and the pharmacists will take that compound and make it into products for patients, so there’s more involvement rather than just dispensing the product to the patient, the pharmacist’s compounds and makes it into formulations for the patient.

TG Branfalt: Switching gears a little bit, your home base of Canada is still considering legalizing cannabis for adults that the federal legislation has been introduced but has been subject to a lot of debate, do you think that this will affect medical cannabis companies and how?

Ben Ward: Well, there is a license to produce cannabis in Canada, you have to … Much like your FDA, if you’re going to produce something that’s going to be ingested into someone’s body, you have to pass the FDA, whether it’s food, drugs, or anything else like that for ingestion. You have to follow their protocols. In Canada, we have Health Canada, our FDA equivalent, and so if you’re producing cannabis and going to distribute that, you have to pass Health Canada’s tests and be licensed by them.

For us, we’ll be participating in the lifestyle market, and the government has mandated that it’ll move ahead next July, and there are a lot of unknowns about the product that we’ll be able to supply to that market, distribution, every province is going to be able to do their own distribution. We were to asked to consult with the Attorney General of the province of Ontario to assist in the process for distribution, so there’s a lot of unknowns in place but we know that the government, which is a majority … If you have in the US the equivalent of having the House, the Senate, and the President all from the same party, and this is one of their key initiatives, you know it’s going to be driven through. We have a majority government in Canada at the federal level right now, the liberal government. This is one of the key initiatives to deliver on, and they will be delivering for next July.

TG Branfalt: Do you anticipate there may be a separation of medical cannabis and recreational products?

Ben Ward: Yes. What this means for the medical cannabis market is we believe that the product will be distributed through pharmacy, so traditional formats, capsule, tincture, topicals, eventually looking to a transdermal patch, use in hospitals, this is where we see the medical aspect of the market going.

The lifestyle market is projected to be about two thirds of the market, the medical to be about a third, and as we see more companies covering their employees under their health and benefits programs for medicinal cannabis, we think the market will grow to be much larger. When we look at accidents benefit plans from people that are involved in motor vehicle accidents now being covered under their accident benefits … It’s a big market, and we see cannabis as medicine, so whether someone’s using cannabis enhancer in what we call the recreational market or using it to treat a chronic condition in the medical market, we’ll be able to be in both areas of the business.

TG Branfalt: You had said that you were consulting with the Attorney General, I believe you said, what role do you think that existing operators should have in the crafting of these lifestyle or recreational regulations in Canada?

Ben Ward: I think we can provide guidance on safety. I think that the government is looking at this, they’ve done their research, but they’re looking at different methods of ingestion, what products to move ahead with. Obviously, we’re pushing for all products that you have in the US to be allowed in Canada, we don’t know whether we’ll get there but we already have the existing research from Colorado, California, and every other the state where cannabis is present as what people’s preferences are, what they want. Vape is a huge part of the market in the US, and currently in Canada we don’t have that allowance or permission to provide vape products to people or vaping oil, and so the existing graymarket supplies that to people but then they cut with propylene glycol, other things that are harmful to you so you have people getting high from PG and inhaling that rather than getting high from taking THC, and have potential adverse health harms.

Where we’re looking at is how do we introduce safe products into the market? How do we encourage the government to allow all of the products and then create those responsibly and deliver them to the market in a safe way so the products are safe, there’s proper guidance around ingestion so you don’t have people taking 20 grams of dry flower, homemaking their butter, and they end up with an inconsistent product and their one tray of brownies at one end and having a greenout and sleeping for two days. Let’s make it a normal approachable product that people have already told us what the best way that they want to ingest it is, and let’s supply that to them. That’s where we can help with the government.

TG Branfalt: Finally, what advice do you have for entrepreneurs? You saw Germany’s market evolving, getting ready three and a half years ago, so obviously you see things a little bit differently than a lot of your counterparts, so what can they learn from you? What advice would you have for other people looking to enter this space?

Ben Ward: Don’t be afraid to fail. It’s risky, it’s a new, it’s a nascent industry, not everything you do in life is going to be successful, take a risk, do something completely different than the rest because everybody is tracking and following, once somebody’s successful everybody else plows in, large capital comes into play, and then it’s a matter of improving and optimizing business. The true entrepreneur is willing to take risks and go out there and do something a little different that may seem odd to people when they first start and isn’t afraid to fail. That’s the best advice that I can give is, if you’re not ready to fail then you’re not an entrepreneur.

TG Branfalt: So when your wife says that she wants a summer home, buy a sausage factory.

Ben Ward: For a little unhappiness.

TG Branfalt: Well, Ben, man, I really want to thank you for your time this morning. I know you’re a busy guy in Canada and in Germany, you really have a lot of insight into the industry and I hope that as you get the ball rolling in Germany that we can have you on the show again to really get into the details of that project.

Ben Ward: Yeah. Well, thanks a lot. I really appreciate your time. Germany is just the start, there’s a lot of countries that are all moving above ground now, cannabis is becoming
mainstream in some of the most conservative countries in the world.

TG Branfalt: Thanks for leading the charge over there, man, and for being so open about it. It’s sometimes tough for us to find people who are operating internationally to appear on the
show so, again, thank you so much for your time.

Ben Ward: Great. Thanks. Take care.

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

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Cannabis branding material created by StickerYou.

Make Your Cannabis Brand Stick with StickerYou

With restrictions on product advertising so commonplace in the cannabis industry, it is incredibly important for cannabis companies to make sure they have an impactful brand. Without traditional advertising avenues, cannabis entrepreneurs need to make sure their product labels, t-shirts, window decals and more are exactly in line with what they have envisioned for their brand, and that’s not always easy — especially for startups and young companies.

StickerYou is a Toronto-based company that provides branded products including stickers, decals, iron-on labels, tattoos, patches, magnets, and more. You can upload your own art to print your materials or use the StickerYou website’s design suite to develop exactly the look and feel you want for your branding material. If necessary, the company also has an art team who can assist you in the development process.

StickerYou understands that small companies often need to adjust and fine-tune their brand on the fly, so the company offers a comprehensive platform that facilitates the honing of your branded material so that it fits your exact needs. The company is dedicated to keeping its services affordable, even for a startup’s budget.

“Usually with industrial printers, you have to order large quantities to make it cost efficient. This is where we are unique in the market,” said Ana Caracaleanu, Director of Marketing and Communications for StickerYou. “With StickerYou, you have complete control over the quantity that you order. Let’s say you change your product quite often, you can order just 10 stickers or 100 stickers. That gives the customer flexibility to say ‘You know what, I’m testing a product right now,’ and not spend a lot of money ordering in large quantities.”

StickerYou is also capable of printing a competitively priced single sticker — or even one sheet of stickers using multiple designs — so you can test your branding materials out in person before the commitment of spending big money to have it mass produced.

And while StickerYou stickers are of course sticky, they don’t have to be messy: if you are recycling or reusing your labeled containers, you can order removable stickers that won’t leave any residue on the product itself, Caracaleanu explained.

All products are manufactured locally by the company’s fully automated facilities in Toronto, Ontario, Canada and typically take between 1-4 business days to make it through production, depending on how complicated your order is and how many other orders are already being processed at that point in time.

StickerYou affords cannabis entrepreneurs the ability to fine tune their brand and product packaging without worrying about the nightmare of ordering thousands of product labels only to learn that new regulations are taking effect that will require all that branding material to change.

To learn more about StickerYou, request product samples, or get a customized quote, visit StickerYou.com or email support@stickeryou.com.

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The Department of Justice building in the Penn Quarter of Washington D.C.

Justice Department Allegedly Blocking DEA-Backed Cannabis Research Applications

The Justice Department, at the behest of Attorney General Jeff Sessions, has actively blocked the Drug Enforcement Agency from moving forward on 25 applications to grow cannabis for research purposes, the Washington Post reports. The DEA began accepting the applications more than a year ago but their consideration requires Justice Department approval and the agency has so far been unwilling to greenlight the program.

“The Justice Department has effectively shut down this program to increase research registrations,’’ an unnamed DEA official said in the report.

Rusty Payne, a DEA spokesperson, claimed the agency “has always been in favor of enhanced research for controlled substances such as marijuana” despite their historical hardline stance on cannabis and cannabis policy.

Last year, Chuck Rosenberg, the acting DEA administrator appointed by President Barack Obama, declined to loosen restrictions and reschedule cannabis under the federal Controlled Substances Act, but said the agency supported promoting “legitimate research regarding marijuana and its constituent parts.”

At that time, Rosenberg said the DEA had registered 345 individuals and institutions to study cannabis and cannabinoids.

Brad Burge, spokesperson for the Multidisciplinary Association for Psychedelic Studies, called the Justice Department interference “a sad state of affairs.”

“If the DEA is now asking for permission to say yes, then the resistance is now further up the chain of command,” he said in an interview with the Post.

The Department of Justice declined to comment on the claims.

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A driver's hand on the steering wheel as they maneuver through traffic.

Las Vegas Dispensary Extends Delivery Service to Adult-Use Customers

Oasis Cannabis, a Las Vegas dispensary, is now offering its delivery services to adult-use customers – while they still can, KTNV reports. Under the temporary regulations currently in effect in Nevada, recreational delivery is permitted; however, the Department of Taxation’s draft of permanent regulations do not allow adult-use cannabis delivery, citing safety concerns.

Ben Sillitoe, owner of Oasis, disagrees with the Tax Department assessment. He contends that delivery helps mitigate the illicit market and that he has crafted his own internal company policies that are “more strict” than what the state requires. His vehicles are unmarked and the drivers carry only enough cash for the transaction, which cannot exceed 1 ounce.

“Safety is a very big priority for us when it comes to everything that we do. We want to make sure first of all that we know who we’re delivering to,” he said in the report. “So we verify the identity of the individual who has placed the order. And then our current policy is to only deliver to the address on the ID that was provided to prove the age of the individual.”

Additionally, he said, that many people want delivery because they have health issues that could limit their mobility, adding that some adult-use customers are patients that didn’t register with the state.

“It’s going to be a little bit of a challenge but as long as we can have delivery, then we can work on improving it,” Sillitoe said.

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Autumn-colored leaves in a Vermont forest.

Vermont Brewer and Garden Supply Company Founder Apply for MMJ License

The founder of Vermont-based Magic Hat Brewing Company, Alan Newman, has partnered with the founder and chairman of Gardener’s Supply, Will Raap, hoping to secure the state’s fifth medical cannabis license, according to a VT Digger report. Newman and Raap are aiming to build their production facility in Randolph with dispensaries in Lyndonville and Winooski.

Newman and Raap are members of the Vermont Cannabis Collaborative, along with former Gov. Peter Shumlin’s chief of staff, who in 2015 released a report that purported a taxed-and-regulated cannabis industry in the state could create 4,000 direct and indirect jobs. The report cites a 2014 RAND Institute study that found Vermonters consume between 33,000 and 55,000 pounds of cannabis per year.

“A more accurate description of legalization is that it’s a way to regulate a currently large and uncontrolled economy,” the report says.

The duo indicated that they were hesitant to apply for a license because they assumed that the new license would go to a Bennington operator. At least one applicant has applied to operate in the city, which borders New York and is home to state Sen. Dick Sears — who has championed both the medical cannabis and adult-use cannabis bills, the latter of which was vetoed by Gov. Phil Scott in May over public safety concerns.

Raap and Newman have already negotiated leases on properties in the targeted areas in the event that their application is approved. They indicated that if they don’t secure a license this round they will reapply for the sixth state license which will be available when the state’s patient count reaches 7,000.

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A close photo of an untrimmed crows foot on a commercial cannabis plant.

Australian MMJ Program Requirements too ‘Onerous’ for Many Would-be Patients

Australian patients and physicians are lamenting the lack-of-access to medical cannabis in the nation, claiming that the strict regulations are forcing seriously ill patients into the illicit market, the Australian Broadcasting Company reports.

“It just seems that so many obstacles are being put in place of [general practitioners] and specialists that it’s creating an impossible situation,” said Dr. Brad McKay, a Sydney physician, in the report. “These are kids and we [have] a situation that prevents doctors from prescribing them a drug that’s less harmful than a lot of the other drugs they use.”

Steve Peek, whose daughter suffers from seizures, says she has so far been unable to access the program which has caused him to lose faith in the political and medical systems, and the government. He admitted he has been dosing his daughter every six hours with a product he obtained illegally, which reduces his daughter’s seizures by 90 to 95 percent.

“They say it’s been legalized. It’s not legalized,” he said in the report. “You can’t get it no matter what you do.”   

Teresa Nicoletti, a partner at Mills Oakley, said she is now working full-time to help patients and parents navigate the “quite onerous” system, which she indicated requires patients to provide published medical literature and specialist reports.

The government claims that medical cannabis approvals take “often as little as two days”; however Nicoletti argues that approvals are taking “a lot longer” than that because understanding the legislation “is very difficult.”

Justin Sinclain, a pharmacognosist in Sydney, Australia, said that in many cases the medical literature required by the government “does not exist.”

“There is a great paucity of evidence in the literature, at least when it comes to human trials,” he said. “It’s hard to be able to sit there and say ‘we’re open for business’ when indeed 70 years of prohibition of cannabis [means] we can’t collect that evidence.”

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A commercial cannabis grow in Washington state.

U-Grow Rentals Creating Leasable Growing Facilities for California Patients

With the 2016 passage of California’s Prop. 64 legalization initiative, there are some big changes coming for the country’s most populous state. Many Californians are focused on the opening of adult-use dispensaries and the end of criminal cannabis possession charges; however, there is another very important aspect of the Adult Use of Marijuana Act: adults who are 21 and older will soon be allowed to grow their own cannabis plants — up to six at a time.

Growing your own cannabis is arguably the best way to keep costs low and to know exactly what goes into your medicine. But it can also be a daunting task — particularly in urban environments, where concerns about neighbor complaints, having enough space, property rates, inexperience with growing the plant, city inspectors, children, theft, and even the rare possibility of a federal raid may detract from the wonderful experience that is growing your own medicine.

U-Grow Rentals, a Los Angeles-based startup, aims to alleviate those concerns by leasing 100-square-foot growing spaces to patients and would-be home growers. From city to city, these 10 ft. by 10 ft. rooms will all be located under the same roof with U-Grow master growers onsite to answer questions and help patients down the path towards cannabis self-sufficiency.

The company likens these shared growing spaces to a standard storage facility — albeit significantly more aromatic — with just a typical renters agreement necessary before getting your own cannabis garden underway.

Under Prop. 64, municipalities throughout California will be required to allow their citizens to cultivate up to six cannabis plants with just “reasonable regulation” — and that requirement kicks in starting January 1, 2018. For this reason, U-Grow is aggressively seeking partnerships with city officials throughout all of California’s major population centers to make sure that every citizen has a reasonable shot at growing their own cannabis plants — even if they live in highly urban or particularly sensitive areas, such as near parks or school-grounds.

Each grow room rental will come equipped with 24-hour webcam access to allow for remote monitoring. Additionally, master growers will be available onsite to help patients monitor their plants and keep crops healthy. In fact, making use of a U-Grow rental can be as hands-on or hands-off as the renter wishes — the master growers are there to assist, answer questions, and to make sure that each renter achieves the fullest potential for their cannabis crops.

“Cannabis is very sensitive,” said Roland Cordova, CEO of U-Grow. “That is why we pay our Master Growers $120,000 per year. We engage our clients with 24-hour video access and the ability to learn how its done by interaction with their grower, so they can decide to bring it home when they know what they are doing.”

“We also believe that getting your medicine as inexpensively as possible is important,” said Cordova. “We guarantee at least 16 ounces every 60 to 90 days — that is a lot of medicine.”

With the calendar steadily marching towards a post-prohibition California, visit UGrowRentals.com to learn more about U-Grow’s unique business plan or to get in touch with a company representative.

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Holyoke Mayor Vetoes City Council-Approved Moratorium on Adult-Use Cannabis

Holyoke, Massachusetts Mayor Alex Morse has vetoed a moratorium on the recreational cannabis industry approved by the City Council, according to a MassLive report. In a letter to the council, Morse argued that the “only thing” the ordinance would do “is put the city at an economic disadvantage by dissuading interested investors” from considering starting their business in the town.

Morse, 28, has envisioned the cannabis industry providing jobs in Holyoke, encouraging cultivators to move into the vacant textile mills which comprise 1.5 million square feet of space.

“A moratorium that extends beyond the state’s (April 1, 2018) start date to receive applications will likely jeopardize the ability of businesses to secure licenses in Holyoke well beyond the July 2018 (legal sales) start date,” Morse wrote in his veto letter. “We run the risk of decreasing Holyoke’s competitiveness to attract this industry, decreasing opportunities for good, local jobs and new tax revenue.”

According to the report, Councilor at Large Rebecca Lisi said the city could save time by using the town’s already-established medical cannabis zoning regulations, and Morse agreed with her assessment. The council had voted for the moratorium 10-4, Lisi voted against the measure.

“From a land use and zoning standpoint, there is no difference between cannabis cultivation for medicinal purposes, for which we already have a robust special permit process, and recreational cultivation,” he wrote. “In both cases, the product goes through the same grow and processing cycle regardless of its intended end use.”

Morse urged the council to sustain his veto and, according to the report, the council will likely consider an override during its Sept. 5 meeting.

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The Indiana state flag flying before a tree on a clear, winter day.

Indiana Excise Police Backtrack on CBD Confiscations

Indiana State Excise Police will no longer confiscate CBD products so long as they fall under the federal definition of hemp with THC limits less than 0.3 percent, WTHR-13 reports. The decision comes after the agency confiscated thousands of dollars of CBD products from Fresh Thyme grocery stores and other retailers.

“After a review of the situation, the Indiana State Excise Police will not confiscate CBD oil products from stores unless the products clearly violate Indiana law,” said Excise Police public information officer Heather Lynch in a statement to WTHR. “We will continue monitoring this issue and remain prepared to take enforcement action whenever appropriate.”

Following the June raids by Excise Police, a spokesperson indicated that CBD was “not legal to sell or possess in Indiana” and the business owners were charged with possession of marijuana and possession of a counterfeit controlled substance. According to the report, the store has neither had its products returned nor been informed as to the status of the criminal citations; its legal counsel was made aware of the policy changes by the news outlet rather than the State Excise Police.

Fresh Thyme was able to obtain the products from a store in Kentucky and temporarily restock their shelves. They hope to be fully re-stocked by Friday or Monday.

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A commercial cannabis crop hangs from the ceiling to cure.

Arkansas Has Yet to Receive Single MMJ Grower, Dispensary License Application

As the application deadline for Arkansas medical cannabis cultivators and distributors draws near, the state Department of Finance and Administration has not yet received any applications from potential operators, the Associated Press reports. However, Scott Hardin, spokesman for the department, said the agency is “not concerned” understanding the applications “require detailed and specific information that will take time to complete.”

“Applicants are likely performing their due diligence to provide quality applications,” he said in the report, adding that officials expect applications to be submitted closer to the Sept. 18 deadline.

The Finance and Administration Department expects to award five cultivation and 32 dispensary licenses.

According to Department of Health spokeswoman Katie White, the state has so far approved 404 medical cannabis patient applications. Director of Health Communications Marisha DiCarlo indicated that the agency has anticipated receiving about 30,000 patient applications. The ID cards cost $50 and must be renewed annually.

“This number was based on population, types of qualifying conditions, and trends in other states,” DiCarlo said in the report. “At this time, it is too early in the process to know if that number will be reached, since usable, legally obtained Arkansas marijuana is not yet available in the state.”

The state’s voter-approved medical cannabis law covers 18 qualifying conditions.

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Maryland Cannabis News

Eight Maryland MMJ Cultivators Receive Final Approval

Regulators in Maryland have approved final cultivation licenses for eight medical cannabis cultivation companies and some expect to begin growing immediately, while others anticipate it will take weeks to begin cultivation, the Baltimore Sun reports. There are still six companies that have received preliminary licenses awaiting final approval.

Among those approved are Freestate Wellness, Curio Wellness, Temescal Wellness, Harvest of Maryland, Green Leaf Medical, HMS Health, Holisticm Grassroots of Maryland and Blair Wellness. ForwardGro, which will operate in Anne Arundel County, was granted the state’s first final license in May. Two other potential operators underwent final inspections on Monday.

Curio Wellness CEO and founder Michael Bronfein, who will operate out of a 46,000-square-foot warehouse in Timonium, indicated that in addition to medical cannabis cultivation, the company’s job is “to educate physicians, patients, regulators, [and] the community” on medical cannabis.

“This is strictly a wholesale manufacturing facility, so we will distribute across the state from this location, but there will be no retail sales here at all,” he said in a WBAL-11 report.

The state expects to license 102 total dispensaries, but thus far only one, the Wellness Institute of Maryland, has been awarded a final license.

In June, the Maryland Court of Appeals blocked Circuit Judge Barry Williams from holding a hearing that would have delayed the licensing process, which has been marred by conflict of interest claims over medical cannabis application reviewer industry ties, and favoritism. Williams is presiding over the case by minority-business owners who claim the licensing process didn’t follow racial equity provisions included in the legislation.

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A skyscraper covered in glass windows.

iAnthus Strikes New Deal to Acquire New York MMJ Producer, Terminates Deal with Different Licensee

iAnthus Capital Holdings, a venture capital firm publicly traded on the Canadian Securities Exchange, has signed a letter of intent to acquire Citiva Medical, LLC, which holds one of New York’s 10 medical cannabis licenses. The transaction is worth $18 million in cash and iAnthus stock.

Previously, iAnthus had agreed to acquire Valley Agriceuticals, another New York licensed producer; however iAnthus CEO Hadley Ford said that deal has been terminated after the two companies “were unable to reach definitive legal agreements.”

“We continue to believe New York is a growth market,” Ford said in a press release. “Our investors expect us to find ways to create value in the high growth U.S. cannabis market.”

Citiva NY was granted a licensed by the state Department of Health to operate four New York City dispensaries – one each in Brooklyn, Staten Island, and Chemung and Dutchess counties – with a cultivation, extraction, and processing center in Orange County.

“We are excited to be partnering with iAnthus,” said Kim Volman, Citiva CEO. “Our team has spent decades meeting the pharmacy needs of patients in New York City. Combining our experience with the operational and capital markets expertise of iAnthus should allow us to scale quickly and execute on our mission to provide the highest quality, consistently-dosed and standardized cannabis medications to meet the specific needs of New York residents.”

The deal must be approved by the Canadian Securities Exchange and the New York Department of Health before it is finalized.

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