The Hawaii Department of Health has added Amyotrophic Lateral Sclerosis (ALS), or Lou Gehrig’s Disease, to its medical cannabis qualifying condition list, making it the 20th state to add the condition.
In a press release, officials indicate the decision was based on review and analysis of written and oral testimony, a public hearing, and peer-reviewed scientific evidence; although the Health Department indicated that it “found little evidence to support the value of medical cannabis for ALS.”
“DOH determined medical cannabis may be appropriate for patients diagnosed with ALS after receiving a comprehensive assessment by a patient’s physician or [Advanced Practice Registered Nurse] and a risk-benefit discussion.”
The approval came during Hawaii’s annual review of potential conditions for medical cannabis access. There was also a request to add general anxiety disorder (GAD) to the regime; however, the health department declined the request because “there is inconclusive medical evidence that cannabis has beneficial use in the treatment or alleviation of symptoms of anxiety, social phobia, and social anxiety disorder (SAD), and no evidence specific to GAD.”
“In addition, because the prevalence of GAD, high rate of comorbidities, and dearth of scientific evidence to support the use of cannabis in the treatment of GAD, the potential for adverse outcomes is a public health concern.”
The 2018 deadline to petition the addition of qualifying conditions for Hawaii’s medical cannabis program is Feb. 19.
Jedidiah Haney is a cannabis activist and entrepreneur who is an outspoken advocate for sensible cannabis regulations and opponent to the seemingly default legalization legislation, which hinges on price gouging and over-regulation. He is also the founder of Higher Influence, LLC and a founding board member of The Cannabis Alliance.
In our recent interview, we asked Jedidiah about ongoing issues in the Washington state cannabis market, political developments that could spell hope for the state’s future, his recent shift toward more media-focused projects, and the obstacles and successes he’s faced so far through that transition.
Ganjapreneur: You’ve been involved with a lot of cannabis-related projects in Washington State, but what was your very first introduction to the industry?
Jedidiah Haney: My first introduction to the industry was back in 2004. I started growing for a group of medical patients in the Bend area of Central Oregon. I did that for a few years then I moved back home to Washington State I got involved in medical advocacy through a series of rallies, which were organized to protect and expand patients’ plant count while adding new qualifying conditions to our medical marijuana program. Then skip ahead a few years to 2012 — when we voted for I-502, our state initiative that legalized recreational cannabis — I was living in Yakima and I had intentions to enter the legal cannabis industry. The state law went into effect in December of 2012, however, in January of 2013, the City Council of Yakima passed a resolution to ban legal and medical cannabis in the city limits. This new city ordinance was so regressive it went as far as banning the use of cannabis even in the privacy of your own home. So, you could only imagine what the cannabis community was saying after this happened. Our personal rights along with our professional intentions were becoming stifled. In response, I founded a non-profit organization along with local stakeholders named CAUSE-M, and we got to work. The organization’s name was an acronym which stood for the Committee for Adult-Use Standards and Ethics and our mission was to go forward and pave a path for our legal and safe industry. Then in 2016, I merged CAUSE-M with three other WA State non-profit trade associations to form what is now The Cannabis Alliance of which I am a Founding Board Member. I served this organization as the Interim Board Secretary as we merged and developed new bylaws along with the overall organizational structure. Last year I resigned my board position with The Cannabis Alliance to pursue community organization through social entrepreneurialism.
Could you briefly explain your current projects?
As a community organizer, I focus my work on connecting and empowering my various audiences by offering education and information. Recently in June of 2017, I launched a firm named Higher Influence, LLC to house multiple channels of direct marketing services and a series of events that I had developed over the last few years. Our core offering is our weekly community newspaper named Cannabits, which is published across defined regions in Washington State. Cannabits is a simple community newspaper filled with educational content that will connect them with positive consumption trends. This process will elevate our reader’s appreciation for cannabis. Currently, our paper is printed and distributed in the South Sound Region – which is where our state seat is located. The social experiment built into Cannabits is to connect the cannabis community with news about policy along with unique calls to action on legislative and regulatory concerns. To further this connection Higher Influence, LLC has developed a series of popular education events that are balanced between B2B and B2C. The flagship B2B event that we produce is Croptoberfest, which is a popular education event. This hybrid industry tradeshow focuses on the agricultural trends in the growing cannabis sector. Each year, we design an intimate event that features over 5 hours of education and speakers. This last year we were proud to host panels covering topics such as organic standards, pesticides, pest management and testing standards. We also featured a panel dedicated to the formation of a Washington State Cannabis Commission, which is a quasi-state agency that will facilitate research and education for the state-licensed cannabis farmers. We also produce a series of local events called Herb Talks that feature speakers and a comradery of sponsors. These monthly events will be broadcast through our channels to activate the community to come out to our events to learn more about topics such as cannabis lifestyle, medicine, and policy to name a few.
What lessons would you suggest other states who enact cannabis legalization take from Washington’s experience?
The primary objective when departing away from cannabis prohibition should be to protect the craft industry from being shut out from the licensing process. Here in Washington, we were told that I-502 would have nothing to do with medical cannabis, in fact, originally you couldn’t even mention medicinal benefits. That was the standard for the marketplace until the medical transition in June of 2016, which was the result of the legislative direction of SB 5052. The issue that I see was that the legislature passed language directing the WA Liquor and Cannabis Board (LCB) to create a “merit-based application” for transitioning businesses that were operating in the limbo of RCW 69.51a. It took a tremendous amount of work to get that merit-based application language into SB 5052, and I am witness to the fact that the LCB failed that directive. I am witness to the complete shutout of the robust medical cannabis industry save a few lucky or fortuitous individuals. There are many businesses that tried their best to position themselves for success, but there were much more that didn’t see this coming. In the end, the state plays their primary role as a tax collector the best and we should remember that the majority of the policy shift is based on fiscally positive forecasts.
Earlier this year, you penned harsh words about Washington’s I-502 legalization law, even referring to the regulations as a “Prohibition 2.0” — have you seen any positive changes in the state since then?
First off, even though we are the new cash cow for tax revenue, the state is treating the nascent industry as a pariah. The LCB has turned more into a policing agency that makes its money through compliance violations and penalties. If you think about it, the LCB only makes money through applications, licensing, permits and fines. Now that the licensing is done, the only robust revenue stream that the LCB has left is through the enforcement of the fines. That being said, there are some major improvements coming down the pipeline; such as the state cannabis organic standard that is being built and managed by the WSDA. This standard will bring farmers a new price point advantage in the marketplace. I would also like to comment that once we get the Washington State Cannabis Commission up and running it will be an amazing tool to strengthen our industry through research. I am honored to have been involved in this process since the concept and it is now ready to be submitted to the WSDA. The changes that this will bring will be many, but if you want to see an example of how a commission will assist the industry to develop then just review the wine industry previous and post the Washington Wine Commission being established. From our research, the introduction of the commission led to the emergence of the craft industry swelling the number of licensed wineries and bringing changes such as on-site tasting and sales.
What do you see as the next big step towards enacting positive changes in Washington’s adult-use marketplace?
As a community organizer, I see that we are missing the voice of the people in this policy molding process. That may be a cookie cutter response, but it is truer today than ever before. There is a distinct lack of education delivered to the people on cannabis policy and that has led to an overall confusion as to what current cannabis policy actually is in our state. We must connect with the community and fill this void. According to a recent Gallop Poll, 64% of Americans now say that cannabis use should be made legal. That is the highest level of public support for legalization in that Gallup has ever recorded. This poll shows that federal interference in our states experiment could be politically disastrous. Meanwhile the Washington State Institute for Public Policy benefit-cost analysis of I-502, which shows that youth access, drug treatment, and incarceration are all on the decline. These two examples are positive signs that we are on the right track, however, we are not done. A few policy changes that need to be addressed include:
People are still sitting in jail for previously doing what we are all doing every day and there needs to be a non-violent criminal prisoner release program or a special commission created by the Governor to address this travesty;
The people need to have the right to grow non-commercial cannabis at home – we are the only recreational state including the District of Columbia that has passed recreational cannabis laws yet we do not have the right grow for non-commercial purposes at home;
Legislation that would allow public consumption clubs and special event permits are needed to continue the transition to responsible cannabis consumption in public.
We have made it so far but we have so much more to do.
As both an entrepreneur and an activist, what role do you see trade unions playing in the cannabis industry?
We need labor representation so badly. We needed it way before I-502. I am constantly receiving reports that the industry is struggling with the simplest of human resource issues. This is typical in start-up industries, so I wouldn’t want to use a labor union to single out companies that are doing poorly. Instead, we could use labor unions to help build generative models that educate and support the development of skill and craft inside of the industry. What I think we need to implement are cannabis trade apprenticeship programs that would allow a person to accrue on the job training along with class time. This kind of program would translate levels of skill and compensation, which could be easily understandable and transfer between jobs. One of the primary benefits of an apprenticeship program is that it would have reciprocity with other states specifically CA. Right now I know that the majority of the industry can’t afford to compensate their labor appropriately because the market for cannabis is crashing. However, if the state reduced the taxes and then increased overall store access then we would see a positive disruption in the marketplace. I bring that up because as an entrepreneur I believe that if we had a trade union gather the cannabis employees to advocate for these issues then we would see the craft industry finally set its roots in Washington State. This is necessary if we want to place our industry in a competitive position for the future of national and international cannabis trade. We need to mold our industry now so that it has sustainability into the future.
How big is your team at Higher Influence and what were you looking for when choosing employees/partners for this endeavor?
Our team is small but magnificent. I am at the helm steering this production house with two media experts, three writers, two event organizers and six sales representatives on staff. When hiring staff members we seek professionals first. I study the way our applicants decide to communicate with us. I especially observe their demeanor in the process of the interviews. We specifically seek self-starters that can work on their own without a bunch of oversight. For a business owner, this is a practice of trust. This is why we look for people that we can trust to work with. This is really important because every client is considered our partner and we take them on with a generative perspective. We aim to leave every situation better than how we found it. The practice of generosity resonates with me as an entrepreneur. I am a problem solver at heart and I am always looking for ways to make the world better. Think globally and act locally is a motto that I live by.
What was the most difficult part of getting Higher Influence and these other educational projects off the ground?
Higher Influence was built to produce all of the events such as Croptoberfest, and media that I had assembled over the years into a single portfolio of activity. The most challenging aspect of juggling all these balls is managing the individual project timelines and multiple team/staff efforts. For me, these are the two most difficult parts of operating a production house. To streamline our efforts we have created internal departments that are siloed into specific activities. This allows team members to shine and it distributes the yolk of our projects efficiently. Our goal is to keep expanding our team by adding experienced and professional individuals, therefore we are always on the hunt for new talent. We believe that this will set us on a sustainable path. In the end, our goal is to produce the highest quality media while cultivating the roots of the community through our efforts.
What do you think is the most important consideration when organizing an event for the cannabis community?
I am always scrutinizing our impact versus the application of energy. From my experience, as an activist, I know that our communities are suffering because of a lack of access to knowledge. Specifically, the business community suffers because of a myriad of issues that directly impact the end consumer. Having spent time organizing both businesses and consumers I see that there is a big picture fix needed to solve some of the most crucial issues in our marketplace. When I organize events I focus in on these common concerns. For example, I know that there is an organic standard for cannabis being developed by the WSDA. I know this because I helped lobby for the standard, and because I knew that the WSDA was nearing the rulemaking around the organic standard I preemptively built a portion of this last Croptoberfest to feature a panel on organic cannabis standards. I then invited the WSDA Organic Standards Program Director to the event as a special guest panelist. Therefore the industry had a chance to speak with the program director to provide a perspective prior to the public hearings being launched. Then to further the value in the marketplace on organic cannabis we have developed media that we publish directly to the consumer market via our channels such as Cannabits and Cannabits.Online. Then through these channels, I promote a series of consumer events that are organized to educate target markets about positive trends such as organics and why they matter. Thereby this process develops consumer demand, which in turn drives the marketplace. My belief is that the whole system will work if we work it.
What is your proudest moment since you started down this path of cannabis activism/entrepreneurialism?
My proudest moment as an activist is when my parents first asked me for advice on medical cannabis. Second to that was when we repealed the ban on medical and recreational cannabis in the City of Yakima in 2016. At that point, I had moved away from Yakima to Seattle, so it became a personal mission to see that the community that had inspired my advocacy was left in a better place than when I left it. As an entrepreneur, I see myself as a constant work in progress. That is why I think I tend to be attracted to projects that express an abundance of social capital. The one project that I am the proudest of is The Cannabis Alliance, which was the result of the merger of four previously existing organizations. As I mentioned before I am a founding board member and served as the interim board secretary while we developed bylaws and organizational structure. I was elected to the first elect board and subsequently resigned later that year to follow a bolder entrepreneurial path. Today, as a member of the organization, I am witness to The Cannabis Alliance becoming Washington State’s largest trade association and I am very proud of the current leadership that is in place.
What is your advice for hopeful cannabis entrepreneurs who are considering joining the Washington industry?
Do something unique! The marketplace is not dead, but we have hit the forecasted bottom. Each year cannabis flower has been reduced in its value in the marketplace to the point where we see tested the product on the market for less than .50 cents per gram. There is hope for those that are prepared to withstand this bottom dollar moment. We have to remember that this isn’t a new trend in agriculture. An old farmer took me aside back in 2014 and told me that cannabis was about to deal with this market issue. He said, “it happened to wheat in the 80s and then corn in the 90s, so it’s bound to happen to cannabis.” He was right. But like I said there is hope. If you look at the wine market back in the 90’s there were only a few big names that dominated the marketplace, and Charles Smith Winery wasn’t one of them. Be like the Charles Smith Winery and make sure you do something unique and special. If done right the marketplace will respond. If you are a farmer, make sure that when you are choosing a farm that you follow genetics and appellation aka terroir to ensure that you stand out in the market. Test your water and soil before you plant, and overall be a good neighbor. The last thing I would say that would help any player in this sector become successful is to pay attention to sustainable solutions for one of the most unsustainable commodities that we produce. One day in the future we will be able to export our cannabis to other states and even internationally, so keep the long game in mind. Be a conscious player in this developing marketplace.
Thanks, Jedidiah, for taking the time out of your busy schedule to answer our questions!
The California Bureau of Cannabis Control’s Cannabis Licensing, Enforcement and Reporting Project has issued more than 50 temporary industry licenses to businesses with valid permits or authorization from their local jurisdictions.
According to a press release from the agency, more than 1,900 users have registered with the Bureau’s online system as of Dec. 14 and more than 200 business applications have been submitted to the agency.
“Last week, we officially launched our online licensing system, and today we’re pleased to issue the first group of temporary licenses to cannabis businesses that fall under the Bureau’s jurisdiction. We plan to issue many more before January 1.” – Bureau of Cannabis Control Chief Lori Ajax
The full list is available – and searchable – on the Bureau of Cannabis Control website. Current temporary licenses include more than 20 medical cannabis cultivation, retailers and distributors; four testing laboratories; and nearly 20 adult use cultivation, retailer, and distributor licenses.
All of the licenses take effect on Jan. 1 and are valid for 120 days, after which a permanent license must be obtained. The agency launched its online application system earlier this month, and the Secretary of State’s office rolled out its portal for would-be canna-business owners last week.
As world governments inch closer to cannabis reforms – both medical and recreational – Colombia is no different. Although the country legalized cannabis for medicinal use in 1986, no regulatory body existed to grant permits for cultivation, production or distribution until 2015, when President Juan Manuel Santos issued a decree to do just that.
“Our goal is for patients to be able to access medications made in Colombia that are safe, high-quality and accessible,” Santos said during a televised address nearly two years ago. “It is also an opportunity to promote scientific research in our country.”
Under the regulations, cannabis cultivation is permitted for extracts only – flower is not allowed under the rules – allowing for the manufacture of vapeable concentrates, tinctures, capsules, and topicals. In all, Khiron was awarded three licenses in October – for low THC cultivation (less than 1 percent), high THC cultivation (more than 1 percent) and an extraction license, which is required before a company can even apply for cultivation permits. The regulations allow licensees to sell medical cannabis products domestically and to export to nations with federalized medical cannabis regimes that permit imports. Under the rules, the low-THC products are not considered controlled substances and can be sold outside the medical cannabis program.
A mature, outdoor, and CBD-rich cannabis crop. Photo credit: Shango Los
In an interview with Ganjapreneur, Alvaro Torres, Khiron’s 39-year-old CEO, explained that there is no qualifying conditions list under the nation’s medical cannabis system – a doctor just makes the determinations based on therapeutic need. There are 2.6 million people in the nation diagnosed with chronic pain – one of the primary conditions for which patients are allowed to access medical cannabis programs worldwide. Chronic pain is also one of the driving forces behind the opioid epidemic in the U.S., and Torres believes that a comprehensive medical cannabis program will likely help Colombia prevent a national opioid crisis such as the United States’. He said that federal lawmakers recognize the potential role cannabis can play in preventing such a crisis, and, to that end, Torres indicated producers have received “great support” from legislative leaders.
“They’re taking their time and making sure it’s properly done and making sure companies can better understand their concerns and issues for the next year,” he said. “We have full government support and that has been tremendous.”
Torres anticipates Khiron will first offer concentrates, likely vape pens, due to patient familiarity with smoking cannabis, and the company plans on rolling out additional products as the market matures and patients and physicians become further educated on medical cannabis. “We want doctors to feel comfortable with the products they are prescribing and, since the beginning, we’ve focused the company’s strategy on how we can get physicians on board,” he said, adding that a recent survey of Colombian physicians’ willingness to prescribe medical cannabis found a confidence level of 3.6 out of five – which he said, “isn’t bad considering it’s a brand-new industry.” The company plans on launching an education module, Torres said, with the expectation that patients have access to medical cannabis in the second half of next year.
A young, potted cannabis plant sits bathed in warm sunlight. Photo credit: Amarett Jans
Torres said he doesn’t expect companies to be able to manufacture edibles for the Colombian market because the nation’s drug regulators, INVIMA, would likely not consider them medicine. “We’ll be able to evolve,” Torres said. “But we’ll need to start with the basics.”
After shoring up their Colombian operations, Torres said the company would begin targeting other Latin American countries for export, including Mexico, Peru, and Chile – all of which have passed medical cannabis legalization measures within the last two years, the latter’s pharmacies began selling medical cannabis products in May. Torres believes that other Latin American countries that haven’t yet legalized or developed regulations could use Colombia’s robust but fair regulations as a model.
“It’s a region that has always been frowned upon because of illegal drugs,” he explained of his home nation. “The shift to becoming a country that supports and exports legal marijuana to legal markets now makes these the countries leading in a medical conversation on the proper uses of cannabis.”
According to a federal Veterans Health Administration directive – 1315 – dated Dec. 8, “VHA providers and/or pharmacists” are now allowed to discuss medical cannabis options with their patients but are still prohibited from authorizing medical cannabis use.
“VHA providers and/or pharmacists should discuss with patients how their use of State-approved medical marijuana to treat medical or psychiatric symptoms or conditions may relate to the Veterans participation in other clinical activities, (e.g., discuss how marijuana may impact other aspects of the overall care of the Veteran such as how marijuana may interact with other medications the Veteran is taking, or how the use of marijuana may impact other aspects of the overall care of the Veteran such as pain management, Post-Traumatic Stress Disorder (PTSD), or substance use disorder treatment).”
The directive includes warnings. The Department of Veterans Affairs will not provide not pay for medical cannabis treatments and veterans are advised not to bring medical cannabis onto VA property – which is owned by the federal government. If patients disclose their cannabis use to VA physicians, it will be included in the veteran’s medical record as “non-VA/herbal/Over the Counter (OTC) medication section.”
While the directive is not full-on policy reform, it at least allows veterans treated at the VA to finally discuss their medical cannabis use – or potentially using medical cannabis – with their doctor.
In an interview with Quebec, Canada’s TVA network, Prime Minister Justin Trudeau said there was no firm date for cannabis legalization in the nation, but that the reforms would take place “next summer,” according to the Canadian Press, who received advance transcripts of the interview which will air tonight.
“The date will not be July 1, I can assure you of that. I don’t know where that date came from.” – PM Trudeau
Where did that date come from? When the plan was unveiled last April, there was no firm date attached to the proposal. Later that month, Health Minister Jane Philpott told the U.N. General Assembly that legalization was expected in spring of 2017. Of the provinces that have announced regulations, all include the July 1 deadline. In July, Canadian premiers urged federal lawmakers to extend the July 1 deadline and, at that time, Quebec Premier Phillipe Couillard indicated that Trudeau was “very firm” on the deadline.
The comments come 10 days after Conservative Sen. Claude Carnigan suggested the regime could be pushed back to the end of 2018. Carnigan argued that the legislation package doe not address issues such as training and equipment for law enforcement, drug testing for employees, the impact of legalization on youth, and provincial tax implications.
Washington, DC cultivator Alternative Solutions is partnering with Israel-based Tikun Olam to grow, manufacture, and distribute Tikun-branded products at its five DC dispensaries. Upcoming products include flower, vape, topicals, and tinctures.
Tikun strains won first place in three categories at the 2017 Canadian Cannabis Awards, including Eran Almog for best high-THC flower and Avidekel, which won best high-CBD flower and high-CBD concentrate. The company’s Midnight strain placed second in the hybrid flower category.
In September, Tikun Olam and MariMed Inc. announced they have expanded their partnership beyond Delaware into Rhode Island, Maryland, Massachusetts, and Illinois. The company launched its products in adult-use markets Nevada and Washington state earlier this year.
“Alternative Solutions is thrilled to be Tikun Olam’s exclusive partner in DC. We look forward to making Tikun’s products available at all DC dispensaries, giving access to these clinically proven strains to the more than 5,600 registered MMJ patients in Washington DC.” – Matt Lawson-Baker, COO of Alternative Solutions
Tikum operates similar partnerships in Canada, Australia, South Africa, and the United Kingdom. The company has been running clinical trials on its products in Israel since 2010 focused on cancer, post-traumatic stress disorder, AIDS, epilepsy, Crohn’s disease, multiple sclerosis, cerebral palsy, chronic pain, and neuropathy.
North America’s largest pink tomato producer – whose operations are in in Mirabel Quebec, Canada – is partnering with Canopy Growth and Canopy Rivers to convert its 700,000-square-foot greenhouse for cannabis production. The new company, which has already applied to cultivate medical cannabis, will be called Les Serres Vert Cannabis Inc.
The greenhouse currently holds a valid Ecocert organic certification and the owner, Stéphane Bertrand, plans to use the company’s organic farming expertise to grow the cannabis flowers. According to a press release, the venture would be the first in the Canopy family of brands to produce organic cannabis.
“It’s the economic angle. I have new challenges on the way. Minimum salary, for me, has been taking up all my time. In the coming years it’s going to be a challenge. Will Quebecers be ready to buy tomatoes at $3 a pound while tomatoes from Mexico stay at $1.49? I think the difference between my costs and my income will grow,” – Bertrand, in a CTV Montreal interview
Bertrand will hold a 33.3 percent stake in the new company while Canopy Growth and Canopy Rivers will own 66.7 percent. Canopy will also issue $2.75 million of common shares in four equal tranches to Bertrand.
“The joint venture allows us to expand our operational footprint for greenhouse production, and establish a much larger foothold in Quebec. The fusion of Canopy’s cannabis expertise with the greenhouse expertise of Les Serres Stéphane Bertrand is fantastic news for our customers and investors.” – Bruce Linton, chairman and CEO, Canopy Growth
Canopy River will contribute $15 million to fund the development.
According to an Economic Insightsstudy from Statistics Canada, the nation’s cannabis consumption was an estimated 697.5 tons in 2015, valued at C$5 billion to C$6.2 billion. The researchers estimate that in 2015 there were 4.9 million cannabis consumers 15-or-older; two-thirds of those were over the age of 25, while just 6 percent were 15 to 17-years-old.
The analysis estimates the price range of cannabis products – from both the illicit and medical markets – was C$7.14 to $8.84 per gram.
The study purports that cannabis use among Canadian teens – 15 to 17-years-old – peaked in the late 1970s, at about 35 percent, before declining sharply in the early 1990s to about 12 percent and climbing to about 32 percent in the early 2000s. In 2015, teen-use rates sat around 23 percent. Under the various provincial rules to govern legal cannabis sales in Canada, the legal age to consume cannabis is either 18 or 19-years-old.
The highest rates of cannabis use in Canada over the last 45 years has been among 18 to 24-year-olds – about 45 percent in 1970, declining to about 20 percent in the early 1990s before climbing to about 42 percent in the late 1990s-early 2000s. The 2015 rate among young adults was an estimated 38 percent.
The rate of cannabis use among Canadians 25 to 44-years-old and 45 to 64-years-old both peaked in 2015 at about 22 percent and 12 percent, respectively. Previously, the watermark for 25 to 44-year-olds was about 16 percent in the early 2000s and about 6 percent among 45 to 64-year-olds in the late 1990s.
The researchers note that the figures indicate that the market value – C$5 billion to C$6.2 billion – is about one-half to two-thirds of the nation’s C$9.2 billion beer market and about 70 percent to 90 percent of the nation’s C$7 billion wine market.
Marc and Jodie Emery – Canada’s “Prince and Princess of Pot” – have each pleaded guilty to possession of cannabis for the purpose of trafficking and possession of proceeds of crime more than $5,000, according to a CTV News report. The Emerys must each pay a $150,000 fine plus a $45,000 victim surcharge and spend two years on probation with conditions that bar them from participating in any illegal cannabis dispensary.
The charges stem from March raids at the couples’ seven dispensaries in Toronto, Hamilton, and Vancouver. Three others accepted similar deals in exchange for prosecutors dropping charges against 17 Cannabis Culture employees.
During his court appearance, Marc Emery said he believed the fine is “extraordinarily high” and that he offered to go to jail for a year but authorities “weren’t interested” in the deal. The judge, Justice Leslie Chapin, did concede that activism played a role in the couple’s actions.
“No doubt there were pro social motivations that were behind the actions, but at the same time, I have to recognize that much profit was made.” – Justice Chapin
Marc Emery told reporters outside the court that he didn’t need the money and was “giving it away all the time.” Prosecutors found that one Cannabis Culture dispensary brought in as much as $333,000 in January. Following the sentencing, the couple reportedly lit up joints on the courthouse steps.
An Austin, Texas man has been sentenced to five years of probation – after spending eight months in jail – after pleading guilty to obscure federal charges related to users of a controlled substance (in this case cannabis) owning firearms, the Austin American-Statesman reports. Initially, prosecutors alleged that Steven Boehle, 50, had planned to use his 13 guns to attack city police officers; however, when those charges fell through he was charged under the federal statute.
U.S. Judge Mark Lane said that Boehle’s threats were “marijuana-induced gibberish.” Boehle had never been arrested for drugs.
Boehle’s probation conditions require that he turn over his guns and submit to drug testing. According to his sister, Boehle suffers from epilepsy and, starting next year, Texas will permit those with the condition to access some medical cannabis products. Boehle reportedly had two seizures while in police custody.
Daphne Silverman, Boehle’s attorney, indicated she would try to modify her client’s probation terms to allow him to access the program; however, she conceded that would be “an uphill battle.”
This isn’t the first case of a state citing cannabis use as a reason to take firearms from citizens. Earlier this month, the Honolulu, Hawaii Police Department backed off requests that 30 gun owners registered in the state medical cannabis program either surrender or transfer ownership of their firearms, according to a Honolulu Star Advertiser report. The department did indicate they would continue to deny firearm permits to applicants with medical cannabis cards.
Alaska’s Marijuana Control Board has revoked the manufacturing facility license of Fairbanks’ Frozen Budz due to a litany of alleged infractions, including failure to test products, track the source of the cannabis used to manufacture them, and selling products containing higher-than-permitted THC limits. The revocation is the first by regulators in the state.
The following counts were upheld by the control board:
Regularly and consistently selling edibles that had not been tested for potency, mold, contaminants, e-coli, or salmonella.
Making edibles without tracking the source of the marijuana.
Manufacturing products that were not approved by the Marijuana Control Board.
Selling products that contained mold and an amount of THC that is two to three times higher than allowed.
Operating out of compliance with their board-approved operating plan.
Allowing onsite consumption and delivering marijuana products directly to consumers.
Improperly labeling marijuana products transferred to retail stores.
Violating waste notification requirements.
Not providing requested records.
“The board found the acts of this licensee especially egregious. The licensee disregarded marijuana industry regulations and put the public at significant risk by selling products that were not safe, tested, or tracked.” – Peter Mlynarik, Marijuana Control Board chair, in a press release.
The company’s license was initially suspended on Dec. 6. Frozen Budz can appeal the decision to the state Office of Administrative Hearings.
A cannabis-infused topical took home the top prize at the first-ever New England Harvest Cup, held in Worcester, Massachusetts over the weekend. The topical, “Sweet Releaf” produced by Clinton Bradshaw of Rhode Island’s Rogue Island Genetics, won best overall product, the Boston Globe reports.
“It’s nice. It was surprising to [win] overall; to see a topical picked over flower, concentrates, and edibles. I really wasn’t ready for that.” – Bradshaw
In total there were 73 submissions from more than 50 growers. The products were judged on: aroma, ash, appearance, effect, taste, and cure.
Peter Bernard, president and director of the Massachusetts Growers Advocacy Council, which organized the inaugural festival, called the win “overwhelming.”
“I’ve been smoking for a long time, and there wasn’t a single entry that I thought, ‘Eh, this is mediocre.’ It was all the most beautiful stuff in the world.” – Bernard
The event also featured a 100-foot long, 1,000-gram joint – an attempt to set the world record by Beantown Greentown. In an interview with MassLive, Beantown Greentown Partner Andrew Mutty said the lifestyle company would give away about 20 feet, give some more to cannabis-focused publications at the event, and “try to find a way” to smoke the rest.
Arbor Cannabis took the best flower award with a 25.5% THC iteration of Davy Jones.
Hawaii’s industrial hemp cultivation program has suffered a setback after seeds imported from Jamaicanot only arrived late but also failed a basic inspection, the Hawaii Tribune-Herald reports. The Department of Agriculture expected to begin accepting applications for the pilot program next month, but now estimate they might not open applications until February.
Shelley Choy, the program coordinator, anticipated the 50 pounds of hemp seed would arrive in June, but it didn’t arrive until October and less than 1 percent of the shipment complied with state requirements. The shipment was destroyed. Choy indicated that a new source of seed is being considered – a Chinese seller that offers 100 pounds of seed to $1,200 – but those seeds are undergoing germination tests in Malawi and Australia to determine whether they are suitable for tropical climates.
“Everything’s in this limbo state right now.” – Choy
The application fee in order to participate in the program is $500. Licensees would be required to use seed provided by the Agriculture Department and give the agency updates on their crops. Once launched, the pilot program is expected to run until 2021, after which state lawmakers will determine whether or not to continue the pilot program or expand statewide hemp production.
Headset is a cannabis-specific business intelligence company, which means we handle a lot of data. By a lot, I mean that we track sales data in real-time for over 325 retailers in 8 states. Since we launched in June of 2015, we’ve tracked over 1,889,000,000 transactions. Suffice to say, all those data have some interesting things to tell us. While the core of our business is making real-time business intelligence accessible at the touch of a button, we also love to zoom out and nerd out on all the fun facts in our dataset.
The following are some of the more interesting insights about Washington’s cannabis marketplace that we’ve gained over 2017, which we also discussed on our recent Ganjapreneur.com Podcast appearance.
Demographics
The first question we get when it comes to cannabis sales data is always, “Who?” People want insights into who their customers are and how their generation or gender might shape their purchasing decisions.
When it comes to what types of products the different generations prefer, flower is still the number one seller across the board. However, while the overwhelming majority of each age group prefers flower, the runner-up in each category is different.
Millennials tend to buy concentrates the most, with 17% of their sales going to concentrates. Gen Xers are split between concentrates and vapor pens, while Boomers like vapor pens and pre-rolls.
Millennials are the dominant category of consumers overall, with 49% of the total market share in our dataset. Gen Xers aren’t too far behind though, at 39%. Interestingly, more Gen X and Boomer women participate in the cannabis market than for Millenials, where only 31% of sales go to women.
Strains
There are a million strains out there these days — Scroopy Noopers, anyone? — so it’s always interesting to see which ones stand out in the crowd. Blue Dream is still the crowd favorite, with about 1,040,000 units sold for a total revenue of roughly $19 million in Washington in 2017. Another strain name you hear a lot, Gorilla Glue, was close on the heels of Blue Dream, selling about 30,000 fewer units. However, the total revenue generated by Gorilla Glue was higher, at about $21.2 million.
Dutch Treat is in third place, and there’s a significant gap between it and the top two. Green Crack, despite its less-than-PC name, made it to fourth place.
The unit-to-revenue ratio difference between Blue Dream and Gorilla Glue is, we suspect, due to larger producers doing higher volumes of Blue Dream for lower prices. This is probably a bit of a chicken-and-egg scenario, as Blue Dream’s widespread popularity could be driving producers to grow more of it.
Producers
Flower is still the top product in Washington State, so brands with serious flower operations dominate the market in this data. Phat Panda and Northwest Cannabis Solutions (NWCS) are currently the state’s top two brands, and both are pretty neck-and-neck in terms of units sold and total revenue. Both hover around 1.2 million units sold over the past year. Artizen Cannabis is in 3rd place, with about 300,000 units less than Phat Panda or NWCS. Fireline and Top Shelf are next in line, with about 50% of the units sold of Phat Panda or NWCS.
Our data seems to suggest that product variety is a big part of Phat Panda’s success. We show over 1000 unique Phat Panda SKUs in our system across nine different product segments. Price doesn’t seem to slow them down, as their average item price of $9 is above the industry average of $8. Their advantages also lie in a robust distribution network and unique packaging and branding, which offers some proof that, in both wholesale and retail situations, superior service and branding can trump price pressure.
Consumer price sensitivity is another very hot topic in cannabis data. In our experience, the vast majority of consumers aren’t exactly big single-trip spenders, as 44% of consumers go for single grams. After that, we see 39% of consumers buying eighths, but popularity drops drastically as quantity goes up. Simply put, people aren’t buying big ticket items too frequently. This could be due to not having the funds on hand to buy full ounces, people wanting to sample the ever-growing variety of strains, or, as we like to joke, Millennials spending all their money on avocado toast.
In terms of the actual dollar prices of those single grams, their average item price is around $8 pre-tax. Eighths are about $24 and ounces are about $95. This strongly suggests that variety, more than price sensitivity, drives the popularity of single grams, as $95 for an ounce translates to about $3.50 per gram. That’s a pretty significant volume discount. Overall, prices have fallen significantly since legalization in Washington launched, but they have started to plateau recently. We expect these prices stay in place for awhile.
And while we’ve all heard stories of $2.50 pre-roll specials and watched $5 grams become standard, we’re always fascinated by the other end of the spectrum: the most expensive products. The biggest standout in that area is the “cannagar,” from Leira, which we’ve seen for $350 and up, depending on the store. It’s a 15-gram cannabis cigar, wrapped with cannabis leaves, layered with kief, and sometimes even studded with concentrates. It’s basically the cannabis equivalent of popping a bottle of Dom Pérignon!
The other spendy one we’ve noticed is a Rick Simpson Oil (RSO) called Jackie White, from Craft Elixirs, at $130 for 3g. It’s not a crazy price per gram, but it is a higher overall price than most concentrates, which are typically sold in 1g units. So anyone buying that is probably stocking up, which makes a lot of sense given that RSO is popular with medical cannabis patients.
Edibles are probably the largest category that we track to show continual growth year-to-year, but there are lots of smaller categories that are having their moments, so to speak. Tinctures and capsules are among those, and the growth rates in those categories can be really astronomical because there are so few competitors to begin with. This can be because the category simply didn’t exist before, like distillates, or because consumers discovered it suddenly.
Other market factors can play a role too. For example, RSO and Whole Plant Extract (WPE) showed a pretty huge growth spike right after Washington State incorporated its medical cannabis system into the recreational one, where we get our data from. Those products are primarily used by medical patients, so that was a really cool example of being able to watch a real market trend play out in terms of data.
Michigan’s Department of Licensing and Regulatory Affairs is now accepting applications for medical cannabis cultivators, processors, transporters, dispensaries, and testing laboratories. Interested businesses and individuals can apply online or in-person.
The agency has released an application instruction booklet to help candidates navigate the process, which includes background checks, and a $6,000 application fee.
“Designing and implementing the regulatory framework for this new industry has been a year-long effort by the entire Bureau of Medical Marihuana Regulation team. We are ready to accept applications by the deadline set in statute. There are several user-friendly application methods that prospective licensees can utilize. We look forward to administering fair and efficient regulations for business customers while ensuring that medical marihuana patients are protected.” LARA Director Shelly Edgerton, in a press release
The department hosted a series of education sessions on the new regime to prepare would-be operators in November.
The new licenses migrate the state’s medical cannabis program from a so-called “gray market” to a more comprehensive and regulated regime. Gov. Rick Snyder signed the reform package into law last September. Under the original voter-approved 2008 law, medical cannabis was deemed legal, but dispensaries were not explicitly permitted, leaving them open to crackdowns by law enforcement.
Twelve more dispensaries in Maryland were given the green light to sell to patients yesterday, but Medical Cannabis Commission Chairman Bryan Lopez told the Baltimore Sun that “product is limited.”
The approvals more than double the number of dispensaries currently operating in the state. So far, more than 18,000 patients have registered with the state with 5,000 more applications pending, according to the report. The state has licensed 14 cultivators to serve a total of 102 dispensaries throughout the state; however, just 22 are currently operating and 60 more are awaiting finalization. So far, 712 doctors have signed up to participate in the program, which was delayed nearly five years.
In interviews with the Washington Post earlier this month, several dispensaries shared their retail prices, ranging from $400 to $680 per ounce, but the managers and owners suggested that prices would be reduced – perhaps within six months.
The state’s market could be subject to more changes before current operators are stabilized, as members of the Legislative Black Caucus announced last month they were drafting a bill to award 10 new medical cannabis cultivator and processor licenses for African-American entrepreneurs after they were shut out of the companies awarded licenses. Two would-be medical cannabis companies are also suing the state, accusing officials of arbitrarily denying them licenses.
Eight Sweet Leaf stores in Colorado have had their licenses suspended and 12 people have been arrested as part of a yearlong investigation by local law enforcement – not federal – into illegal cannabis sales, according to a Cannabist report.
All 10 Sweet Leaf shops in Denver and one in Aurora were closed on Thursday; however, the shop in Portland, Oregon remained open, according to the report.
According to a press release from the Denver Department of Public Safety, “the alleged criminal actions are related to the allowable [one-ounce] amounts established by Amendment 64.”
Sweet Leaf representatives told the Cannabist that they were “cooperating with the authorities to resolve this issue and hope to have all of their stores back in operation as soon as possible.”
“It is unclear at this point exactly what actions, if any, Sweet Leaf took to cause the city to issue this order.” – Sweet Leaf, in an email to the Cannabist
According to the suspension order, regulators can suspend a license “when the director has reasonable grounds to believe that a licensee has engaged in deliberate and willful violation of any applicable law or regulation.”
Isaac Dietrich is back in as MassRoots CEO following his ouster in October by the Board of Directors.
What happened? On Oct. 16, board members voted to remove Dietrich and install then-Vice President Scott Kveton following MassRoots’ deal to acquire CannaRegs – a technology platform that tracks federal and municipal cannabis regulations. Kveton and other board members believed the $12 million price was too steep. CannaRegs President Amanda Ostrowitz voided the deal two days after it was announced the board had voted to remove Dietrich.
On Nov. 14, MassRoots filed a lawsuit against the founder, alleging that Dietrich had paid himself and others without authorization amounts totaling $250,000; and committed “serious misconduct,” including “illegal drug use at the workplace,” and sexual misconduct, according to a Cannabist report, citing the complaint.
All the while, Dietrich remained the company’s largest shareholder and had threatened to hold a shareholder proxy vote to reinstate him; instead, on Dec. 12, three board members, Ean Seeb, Vincent Keber, and Terence Fitch, resigned from the company’s board, and Kveton resigned as CEO and left the company the following day, according to a Thursday 8-K filing. As part of the separation agreement, the board members received an undisclosed stock-and-cash package while Kveton received a $45,000 severance package and his 1.5 million-plus stock shares were “accelerated and vest immediately upon his resignation.”
“My slate of directors was appointed, Scott Kveton resigned today, and I was reappointed CEO. So it achieved everything the proxy aimed to achieve, but it was done much more rapidly and at a much lower cost.” – Dietrich to MJBizDaily
Charles Blum, former president and CEO of QS Energy; Cecil Kyte, Rightscorp CEO; and Nathan Shelton, former director of QS Energy, were named to the MassRoots board. The lawsuit has been dropped.
The Colorado Department of Revenue is now releasing the state’s cannabis sales data from Jan. 2014 to the present and will release monthly reports going forward on the seventh business day of each month.
The Revenue Department’s Office of Research and Analysis will produce the reports which will show gross sales minus wholesale sales for retail and medical cannabis shops county-by-county.
“We know this information is highly desired by the general public, media and researchers. To that end, in our efforts to be as transparent as possible, we will now provide aggregate sales data. That, coupled with state tax revenue data already provided, will give an accurate picture of the financial footprint of this burgeoning industry.” – Mike Hartman, executive director of the Colorado Department of Revenue, in a press release
According to the data already released by the department, Colorado sales have reached more than $1.2 billion so far from January to October and will likely exceed 2016’s total sales of more than $1.3 billion by year’s end. The report shows that since legalization in 2014, cannabis sales have exceeded $4.2 billion.
The state’s monthly sales data shows that retail sales in the state peaked last July – to about $140 million – but fell slightly in September to about $130 million.
Canadian cannabis firms Aurora Cannabis and CannaRoyalty have signed a letter of intent which would give Aurora exclusive rights to MüV brand products – to which CannaRoyalty holds the licensing rights – in Canada, Europe and Australia.
The products covered under the agreement include:
MüV Metered Dose Inhaler
MüV Transdermal Patch
CBD Sports Gel
CBD Hydrating Lotion
THC Sports Gel
THC Hydrating Lotion
THC Pain Relief Cream
The products are developed by CannaRoyalty investee AltMed Enterprises. CannaRoyalty holds an 8.3 percent equity stake in AltMed, along with licensing rights for MüV products in carious jurisdictions. AltMed is headquartered in Sarasota, Florida.
“This agreement with Aurora represents a significant opportunity to accelerate the growth of AltMed’s award-winning MüV product line on an international scale, leveraging our relationship with one of the world’s most dynamic cannabis companies. The MüV line meets the growing need for specialized products with alternative delivery mechanisms, especially in critical jurisdictions, such as Canada and Germany, where consumers to date have been limited in terms of product choice.” – Marc Lustig, CannaRoyalty CEO, in a press release
The letter of intent gives Aurora exclusive rights for 90 days to negotiate a final agreement.
The Cleveland School of Cannabis, formally known as Cleveland Cannabis College, has received approval from the Ohio Board of Career Colleges and Schools – making them the first school east of Colorado with state-approved career programs.
The board approved all four programs by the school – Cannabis Business, Cannabis Horticulture, Medical Applications of Cannabis, and Cannabis Executive – contingent upon an occupancy permit from the city, which is expected this week. The certificates offered by the school are considered the same level as an accounting certificate, real estate certificate, paralegal certificate, among others.
“As an educational facility that is working to advance the study and understanding of cannabis in our country today, we are incredibly honored to be the second state approved institution in the country right now.” – Richard Pine, dean of recruitment and public relations, in a press release
Registration for classes at the school are ongoing with courses expected to begin next month. The state-approved certificate programs run from $6,500 to $12,500. Program hours range from 136 to 266.5. Single courses are also available, as well as state-required classes for physicians and dispensary owners and employees. Pine indicated that the state’s cannabis industry is expected to create more than 4,000 jobs.
A would-be medical cannabis cultivator in Ohio is suing the state over the racial-equity provisions included in the licensing process which forced the firm out of contention, Cleveland.com reports.
The complaint, filed on behalf of PharmaCann Ohio, LLC, argues the “racial quota” provisions in the state medical cannabis law run afoul of the state Constitution’s equal protection clause. The suit seeks to force the state to award licenses to the top 12 scoring applicants rather than bumping high-scoring companies in favor of those with lower scores but run by minorities. The plaintiffs are also seeing a temporary order to stop the Department of Commerce from issuing provisional licenses to the two minority-led firms that received licenses despite ranking outside of the top 12.
According to the report, PharmaCann ranked 12th, while Parma Wellness Center, LLC ranked 14th, and Harvest Grows, LLC ranked 23rd – yet both were selected by the Commerce Department.
“Our company values diversity and inclusion. Remedying the effects of past discrimination is a worthy goal of the Ohio legislature. In this case, however, there simply is no basis in evidence that economic disparity exists in an industry that itself doesn’t yet exist in Ohio.” – PharmaCann policy director Jeremy Unruh to Cleveland.com.
The state’s medical cannabis law requires that at least 15 percent of industry licenses are awarded to “economically disadvantaged” groups, including; African-Americans, Indigenous populations, Asians, and Hispanics or Latinos.
The complaint contends that the businesses were not actually “economically disadvantaged” because they were able to pay the $750,000 application fee in an escrow account or surety bond.
According to the report, at least one more lawsuit by a rejected applicant is expected to be filed in the state.
The World Health Organization has released a report concluding that there is “no evidence” of “public health related problems associated with the use of pure CBD.”
“In humans, CBD exhibits no effects indicative of any abuse or dependence potential. … CBD is generally well tolerated with a good safety profile. Reported adverse effects may be as a result of drug-drug interactions between CBD and patients’ existing medications.”
The report notes that, under experimental conditions, CBD can be converted to THC, however, “it does not appear to occur any significant effect in patients undergoing CBD treatment.” The authors point out that while there is significant evidence that CBD can be used to treat epilepsy, there is mounting evidence that it is also useful as a neuroprotective, antipsychotic, anti-inflammatory, antitumor, anti-asthmatic, and analgesic.
“Another possible therapeutic application which has been investigated is the use of CBD to treat drug addiction. A recent systematic review concluded that there were a limited number of preclinical studies which suggest that CBD may have therapeutic properties on opioid, cocaine, and psychostimulant addiction, and some preliminary data suggest that it may be beneficial in cannabis and tobacco addiction in humans. However, considerably more research is required to evaluate CBD as a potential treatment.”
The report comes as the organization is considering changes to international restrictions on drug use. The U.S. Food and Drug Administration called for public comments on the issue as part of their response to the WHO proposal.
