A brightly colored sunset off the coast of Hawaii.

First Lab Licensed to Test Medical Cannabis in Hawaii

8/01/2017

by

Hawaii’s patients are one step closer to finally gaining access to medical cannabis dispensaries more than two years after the passage of the state’s Medical Marijuana Dispensary program law as the Department of Health has licensed Steep Hill Hawaii to test medical cannabis products, Maui Now reports.

Keith Ridley, chief of the Health Department’s Office of Health Care Assurance and overseer of the medical cannabis dispensary program, called the license issuance “a major step forward” in allowing dispensaries to test their products so they can be sold to qualified patients.

“We realize that registered patients and caregivers and some of the licensed dispensaries have been waiting for a laboratory to become operational to test medical cannabis prior to consumption and sale,” he said in the report.

Steep Hill will be the first to test products, as required under the law, for cannabinoid profile, heavy metals, solvents, pesticides, moisture content, intestinal bacteria, microbial contaminants, pathogens, and dangerous molds.

Chris Whelen, head of the Department of Health’s State Laboratories Division, indicated the agency is currently working with two other independent labs to help them gain state certification to test cannabis before it heads to dispensaries for sale.

“Certification follows a rigorous scientific process that requires meticulous attention to detail and constant refining to ensure product and patient safety,” he said, noting that the interested labs “are continuing to submit or resubmit their validation studies for certification.”

Under Hawaii state law, labs are prohibited from handling cannabis products until they are certified by the state.

End

Ecommerce and online shopping/delivery orders are the way of the future.

Cannabis Ecommerce Made Easy With WeedHero

8/01/2017

by

With North American cannabis sales growing at an unprecedented rate — 2016 alone saw a 30 percent increase across the continent to a total of $6.7 billion in sales throughout the U.S. and Canada — medical cannabis dispensaries and adult-use retailers have seen a remarkable increase in traffic, both in person and online.

WeedHero — a family-run business based out of Portland, Oregon — is a revolutionary ecommerce system designed to smooth interactions between retailers and customers, allowing customers to browse and purchase their favorite products in the most convenient of ways.

“We believe software should not be complex. We wanted to build a product that works smarter, better and allows dispensary owners to do things their way to bring positive improvements to their sales,” said Constantine Yaremtso, co-founder of WeedHero.

WeedHero is an online ordering and delivery software suite that will turn your cannabis dispensary’s website into a powerful ecommerce shop. The full-featured marketing software is designed to enhance a dispensary’s online potentials and comes with search engine-friendly menus that can include pictures and prices of your products, the ability for customers to choose between pick-up or delivery options, automatic information gathering on clients’ orders, recording and categorizing your customers’ favorite products, options for reordering and loyalty programs, and more.

WeedHero normally provides free installation and a 15-day risk-free trial period — for Ganjapreneur readers, however, that trial offer has been extended to an entire month, so don’t wait! Visit the WeedHero website to see a demo of their services and to contact the company about getting your risk-free trial period underway.

“We enjoy fewer formalities, less bureaucracy, and more freedom,” said Iyrna Ricker, a co-founder and software engineer at WeedHero. “This means we communicate in a more direct and personal way with you; we don’t sound like a corporate drone.”

You can also meet company representatives and learn more about WeedHero’s software offerings at the upcoming IndoExpo in Portland, Oregon on August 5-6. Stop by at Booth #130 to say hello, see a demo in person, and learn how WeedHero can fit into and benefit your business model!

Alternatively, you can join co-founder Constantine Yaremtso for a 45-minute workshop, where you will learn how to adopt online ordering and delivery systems from the get-go. The webinar workshop will take place on Wednesday, August 9 at 1:00 PST — click here to register.

End

Photo of a young hemp plant with a peach-colored back drop behind it.

Federal Lawmakers Introduce Measure to Treat Hemp Like Traditional Agricultural Crop

7/31/2017

by

A bi-partisan bill has been introduced in Congress to exempt industrial hemp from the definition of marijuana in the Controlled Substances Act and allow the further commercialization of hemp crops. The Industrial Hemp Farming Act was introduced by Republican Congressmen from Kentucky James Comer and Thomas Massie, Virginia’s Bob Goodlatte, and Colorado Democrat Jared Polis.

“I am honored to sponsor the Industrial Hemp Farming Act because I know firsthand the economic viability of industrial hemp,” Rep. Comer, the former Kentucky Commissioner of Agriculture said in a press release. “Hemp has created new opportunities for family farmers and good paying jobs for American workers, especially in Kentucky.”

Rep. Goodlatte said that “outdated, well-intentioned” federal restrictions on hemp are responsible for the lack of commercialization and cultivation of hemp in the U.S. and removing those restrictions “will finally allow for responsible commercial production without fear of violating federal law.”

Rep. Massie said he was “optimistic” that the bill would get to the president’s desk.

“In 2014, for the first time in over half a century, hemp was grown and harvested in Kentucky under the pilot programs allowed by the Polis-Massie-Blumenauer amendment to the 2014 Farm Bill,” he said. “I look forward to working with Congressman Comer to build on that momentum to give our nation’s farmers and manufacturers more opportunities to compete and succeed in the global economy.”

Rep. Polis called hemp a “sustainable alternative to plastics and other environmentally harmful products,” noting that it “can be used in everything from construction materials to paper to lotions and even ice cream.”

“It’s past time that we eliminate absurd barriers and allow hemp farmers to get to work, create jobs, and grow this promising and historically important crop,” he said.

The measure would treat hemp like other traditional agricultural crops like corn and soybeans.

End

The Massachusetts Capitol Building in Boston, Massachusetts.

Massachusetts Gov. Signs Adult Use Cannabis Compromise Bill

7/31/2017

by

Massachusetts Gov. Charlie Baker on Friday signed legislation revising some aspects of the voter-approved taxed-and-regulated cannabis industry, putting the adult-use rollout on track for July 1, 2018, according to an Associated Press report.  The lawmaker-approved measure raises combined local and state taxes on products in the recreational marketplace from 12 to 20 percent. Medical cannabis sales will remain untaxed.

Additionally, the bill signed by Baker – who still opposes the law – sets strict packaging and advertising limits and provides directives for municipalities that wish to ban industry operations. Baker also indicated that he would provide additional resources to regulators if they need them. So far, Baker has included $2 million in the state budget for the five-member Cannabis Control Commission; lawmakers have approved another $300,000 to fund the program’s implementation.

Under state rules, current licensed operators will have the first crack at supplying and dispensing products under the adult use regime. Currently, there are 99 registered medical cannabis facilities and five farms. All interested individuals and businesses can begin applying in April, but current operators will be able to go through an expedited review process because they have already been vetted by the Health Department, the Boston Herald reports.

Sen. Patricia Jehlen said the expedited process will ensure “there’s going to be enough supply to serve the retail markets” as officials are hoping to avoid running low on product as was the case when Nevada began legal sales earlier this month.

The state Department of Revenue estimates legal cannabis sales could be worth $64 million in state revenues during their first year.

End

The Maryland Capitol Building in Annapolis. MD.

Some Maryland MMJ Application Reviewers Had Ties to Applicants

7/31/2017

by

The Maryland Medical Cannabis Commission is investigating potential conflicts of interest by those who reviewed the state’s medical cannabis applications after an investigation by the Washington Post discovered several of the “independent experts” had ties to companies whose applications they reviewed.

The applications were reviewed by Towson University’s Regional Economics Studies Institute, who oversaw 20 experts scoring the applications. However, the state Department of Legislative audits criticized the commission for using the institute because they, after an audit, concluded that the deal between the university and the MMCC circumvented “competitive procurement” standards resulting “in a lack of assurance that these services were obtained at the most advantageous cost to the State.”

According to the Post review, Julia Germaine, co-founder of Massachusetts’ Temescal Wellness, was among those reviewing applications and on an affidavit indicated she has “no known relationships” with individuals applying for a cannabis license; however it was later discovered she reviewed the application for Temescal, submitted by Ted Rebholz, a director and consultant, and her husband Nial DeMena, the co-founder of her Massachusetts company. Two heads of a Washington D.C. dispensary were also present on the panel and their business partners were among those seeking to expand into the state market – one disclosed the relationship, the other did not. Germaine claims she didn’t know her husband was a part of the Temescal application, and her husband claims he didn’t know she was an evaluator.

Daraius Irani, director of the RESI said the institute “took every step to ensure a fair process,” adding that while “it is not a conflict of interest simply to know someone professionally” working in the industry, Germaine “would have not have been an evaluator at all” if she had disclosed her husband was the general manager and she was affiliated with a potential licensee.

Patrick Jameson, the executive director of the MMCC, said the body “takes its role concerning the integrity of [the program] and fair application process very seriously and has been closely monitoring any and all situations of non-compliance to ensure the public trust.”

“The Commissioners will evaluate all available background investigation information prior to their deliberative process before issuing any licenses,” he said.

End

A grey-scale image of an indoor medical cannabis plant in California.

Canopy Boulder Startup Incubator Announces Fall Class

7/31/2017

by

Canopy Boulder has accepted eight startups for its Fall 2017 class, including a cloud-based quality management tool for multi-state canna-business operators, an agriculture technology hardware service, and a software platform that helps businesses manage and mine their online reviews. Each startup accepted to the program receives $30,000 in seed funding with the opportunity to earn another $50,000 later.

Patrick Rea, co-founder and managing director of Canopy, said the state’s industry has “shifted from just keeping up with demand to competing and stealing market share from one another” which has led to “increased interest in, and demand for, the cannabis technology companies that Canopy is investing in.”

“We expect this trend to continue nationwide as state markets mature,” he said in a press release.

The companies accepted to the Fall program include:

Colorado-based Virtugro, who develops automated grow-tech solutions for medium to large-scale cultivators.

My THC Guide, founded by Ebony Costain of Appamattox, Virginia, and Jameson Bennett of Louisville, Kentucky, a chatbot for the cannabis industry.

Cannabis Quality Group, developers of the cloud-based integrated quality management system.

Serene, founded by Ed Mcllory and Adam Bray of London, England, which encourages an outdoor, active lifestyle by leveraging technology.

Redfield Proctor, a “startup in stealth mode” focused on cannabis industry efficiency.

Dispenserly, which manages, monitors, and mines cannabis industry reviews to identify new opportunities and trends.

DeepGreen, which uses artificial intelligence and machine vision technology to identify plant characteristics. The company is founded by an international team hailing from Germany and France.

GreenScreens manages a network of digital flat screens in dispensaries throughout the country that rotate menu information and advertising to inform and target customers in the store.

In addition to funding, companies are able to work with experienced industry mentors and have access to Canopy partner services.

End

The U.S. Capitol Building in Washington D.C.

Senate Appropriations Committee Approves Amendment Preventing MMJ Crackdown

7/28/2017

by

The Senate Appropriations Committee has approved the Rohrbacher-Blumenauer amendment, which protects state-approved medical cannabis programs from federal interference, as part of the 2018 Commerce, Justice and Science appropriations bill, according to a report from the Hill. Specifically, the amendment prevents the Department of Justice from using federal funds to crack down on state-legal medical cannabis programs.

The vote rebukes a request from Attorney General Jeff Sessions, who sent a letter to members of Congress last month urging them to oppose the measure.

Aaron Smith, executive director of the National Cannabis Industry Association, said it was “great to see” the committee members approve the amendment and that “now it’s time for the House to do the same.”

“Patients deserve access to care, states deserve respect, and members of the House deserve the opportunity to vote on amendments like this that have the strong support of their constituents,” Smith said in a statement, adding that “more than 90 percent of Americans favor medical marijuana policies.”

The amendment was offered by Vermont Sen. Patrick Leahy, a Democrat, who argued the Justice Department has more important things to do “than tracking down doctors or epileptics using medical marijuana in their state.”

“The federal government can’t investigate everything and shouldn’t, and I don’t want them pursuing medical marijuana patients who are following state law,” he said in the report.

On Tuesday, House Republicans blocked budget amendments that would have allowed veterans to access state-legal medical cannabis programs and provided hemp producers access to federally-controlled water.

The House appropriations committee approved the amendment last month, and Rep. Dana Rohrabacher indicated he would offer the amendment to the House Commerce, Justice and Science Appropriations bill.

End

City Hall building in Los Angeles, California.

Cannabis Business Regulations Introduced in Los Angeles

7/28/2017

by

As part of their efforts to prepare for California’s legal cannabis industry, Los Angeles officials have proposed banning “volatile cannabis manufacturing” and creating a municipal bank to work with cannabis-related businesses.

Volatile cannabis manufacturing refers to using flammable gases, such as butane, in the extraction of cannabis oils to create some concentrates. The proposal drew the ire of some operators because products created using these methods make up about 60 percent of the medical cannabis market in Southern California. The state law approved by voters allows for concentrates to be manufactured using the gases, according to an LA Weekly report.  

In a policy paper on the city proposal, attorney Aaron Herzberg of CalCann Holdings said that he was “unaware of any incidents” that have occurred due to using such extraction methods at licensed facilities in other states.

Additionally, LAist reports that City Councilmember Herb Wesson has proposed a plan that would set up a municipal bank to handle cannabis-industry accounts in order to provide banking options for city operators because federal law prevents many mainstream banks from taking on cannabis clients.

“We cannot bury our heads in the sand on the issue of recreational and medical cannabis legalization, instead we must strive to reasonably regulate the emerging industry while creating opportunities for Angelenos,” Wesson said in the report.

State Treasurer and gubernatorial hopeful John Chiang has supported the creation of municipal banks to serve the industry in order to “handle the taxation of cannabis dollars and the banking of billions of dollars of transactions” expected once adults are able to legally purchase cannabis in the state.

John Bartholomew, treasurer and tax-collector for Humboldt County said that the department gets “lots of cash” that is sometimes “actually washed” because it has been “buried out in the backyard.”

Wesson is expected to introduce a formal proposal for the bank to the council’s Budget and Finance Committee. The council must also approve the ban on volatile extraction methods before it is in place.

End

The Renew Sports Car, manufactured from hemp in Key West, Florida.

Hemp-Based ‘Cannabis Car’ is Carbon Neutral, Stronger than Steel

7/28/2017

by

Recently, much attention has been given to the negative impact that cars have on the environment, especially their carbon footprint. Each car can represent up to 10 tons of carbon emissions.

In an effort to address these concerns, former Dell executive Bruce Dietzen has made a high-performance car using hemp materials that is both carbon neutral and can be made to run on biofuel. The car is known as the Renew.

Hemp — the cannabis cousin legally defined as containing 0.3% THC or less — is one of the most carbon-absorbing plants in the world. Each ton of hemp represents 1.63 tons of carbon absorption.

The first car made from hemp was created in 1941; it was made by Henry Ford. Incredibly, that one-of-a-kind car made from hemp fiber and other plant material was two and a half times more carbon neutral than today’s electric cars.

The Renew sports car seeks to pick up where Ford left off, but in carbon technology only. Made in Key West, Florida from roughly 100 pounds of hemp, the Renew is a true sports car that can be configured to 80 horsepower or a 525 horsepower dragster with a Flyin’ Miata drivetrain. Weighing just 2500 lbs, the turbo package gives a weight-to-horsepower ratio comparable to a Porsche 911 Cabriole.

Another advantage of a hemp body is its durability. In a recent appearance on Jay Leno’s Garage, Jay and Bruce show off the strength of the Renew body with some healthy whacks on the hood with a hammer.

Note: Photography by François Bota, courtesy of The Hemponair.

End

Event attendees smoke and enjoy a concert at a High Times Cannabis Cup.

High Times Merger Sets Up NASDAQ IPO

7/28/2017

by

High Times Holding Corp, the publishers of High Times magazine, has entered a definitive merger agreement with Origo Acquisition Corporation in an effort to bring the 43-year-old counterculture magazine public. The deal would see Origo acquire 100 percent of the equity of High Times in exchange for 23,474,178 newly-issued shares of Origo.

At the time of the closing current shareholders would own 83 percent of the company’s common stock and Origo would maintain a 17 percent stake. High Times management team, Oreva Capital founded by Adam Levin, would continue running the company post-merger. Oreva bought the magazine last month. The merger sets up an initial public offering to take the company public on the NASDAQ.

“We believe High Times has an important mix of qualities essential for success,” said Edward J. Fred, Origo CEO, in a press release. “High Times is a highly-recognized brand in a rapidly growing industry that has a very engaged base and increasing opportunities to leverage that following.”

Both High Times and Origo’s Boards of Directors have approved the transaction. The completion of the deal must still be approved by the shareholders of both companies.

High Times was founded in 1974 and has hosted Cannabis Cup events worldwide – the first held in 1988 in Amsterdam, The Netherlands. The first cup held on U.S. soil was 2010’s Medical Cannabis Cup in San Francisco.

End

Red River from Toronto-Dominion Centre, 201 Portage Ave, Winnipeg, Manitoba, Canada

Manitoba Finance Officials Ask MMJ Producers for Cannabis Legalization Input

7/28/2017

by

Finance officials in Manitoba, Canada are calling on cannabis industry operators to help develop regulations for the provincial market including “competitive pricing” and who should sell and distribute cannabis products, the CBC reports. The request comes as the nation plans to federally legalize adult cannabis sales on July 1, 2018.

“Manitoba intends to develop a local, broad-based, adaptable and ongoing framework for the implementation of legalized recreational cannabis,” Manitoba Finance officials wrote in an expression-of-interest document. “Key measures of success for the framework include restricting access to minors, competitive pricing, quality product, variety and knowledge, limits on density and locations of storefronts, accessibility for all Manitobans.”

Last week, Manitoba Premier Brian Pallister led a call to delay implementation of the Liberal proposal to avoid a “hodge-podge” of rules throughout the nation.

The move was praised by advocate Steven Stairs, who said the officials are “alluding toward the idea of having a system that’s going to make money for the province but also beneficial” for customers and retailers.

The Liquor and Gaming authority has also indicated the agency intends to survey public opinion about cannabis regulation. Manitoba Finance wants potential retailers and producers to submit their proposal to the province by Sept. 8.

End

A rare thunderstorm over Harborview Medical Center in Seattle, Washington.

Cannabis Legalization Has Not Led to Violent Crime Increase in Washington State

7/27/2017

by

Legalization in Washington has not led to an increase in violent crime, no matter what Attorney General Jeff Sessions would like the public to believe. As a matter of fact, FBI crime statistics show a decrease in violent crime in the state after legalization, the News Tribune reports, from 295.6 reported violent offenses per 100,000 Washington residents in 2011 – the year prior to legalization – to 284.4 such offenses per 100,000 people in 2015.

According to data from the Washington Association of Sheriffs and Police Chiefs outlined by the Tribune, there was really no statistically significant increase or decrease from 2012 to 2016 either. That data shows 3.6 violent offenses per 1,000 state residents in 2012 and 3.3 offenses per 1,000 residents in 2016.

Mitch Barker, executive director of the association, said “it would be a strain to correlate violent crime with marijuana usage.”

“I would struggle to believe that the legalization of marijuana or more legalization relates to violent crime — somebody would have to make that case to me,” he said in the report.

State Rep. David Sawyer, a Democrat who chairs the state’s House committee on cannabis policy, said while several of his colleagues were concerned about a potential increase in violence “in general, legalization takes money out of the hands of criminals.”

“As far as I’m aware there is no credible study linking violent crime and marijuana,” Sawyer said. “I think what more people are realizing is violent crime is linked to keeping marijuana illegal.”

Republican state Sen. Ann Rivers, who did not back Washington‘s legalization initiative, said the $730 million in tax revenues expected for state coffers from the industry is “not coming from people who woke up one day and said, ‘Oh, it’s legal now, I think I’ll go by some.’”

“The bulk of that is from people who were supporting El Chapo or whoever before,” she said, adding that it would be too expensive and difficult for the feds to try and crack down on the industry.

End

California Lt. Gov. Filling Gubernatorial War Chest with Cannabis Industry Donations

7/27/2017

by

California Lt. Gov. Gavin Newsom has raised $317,478 for his expected 2018 gubernatorial bid from cannabis companies in the state – far exceeding industry donations to other Democratic candidates Antonio Villaraigosa, the former mayor of Los Angeles, and state Treasurer John Chiang, who have raised $5,000 and $100, respectively, the Los Angeles Times reports.  The contributions from the industry, however, represent just a fraction of Newsom’s $14 million campaign war chest.

In February, following comments from White House officials indicating a potential crackdown on state-approved cannabis markets, Newsom wrote a letter to President Donald Trump and Attorney General Jeff Sessions, urging the administration “to work in partnership with California and the other eight states that have legalized recreational marijuana for adult use,” adding that enforcing federal law on the industry would “hand it back to drug cartels and criminals.”

According to the report, political donors with cannabis industry ties have, so far, donated more money to California’s gubernatorial candidates that all other farmers in the state’s agricultural industry combined.

On Mar. 3, Newsom attended a $5,000-a-plate fundraiser held by Indus Holding Company, a manufacturer of cannabis-infused confections. During the event, attendees and the lieutenant governor discussed banking options for the cannabis industry; however his spokesman, Dan Newman, said that Newsom “never” discusses specific or pending legislation with donors and there were “hundreds” of banking ideas discussed and his boss “had not endorsed any one concept.”

Newsom’s campaign committee reported $50,000 in cannabis industry-related donations after the fundraiser.

End

Time lapse photo of traffic on the Las Vegas strip.

Nevada Laws Likely to Prevent Cannabis-Friendly Tour Buses

7/27/2017

by

Entrepreneurs in Las Vegas hoping to launch a tour bus company which would allow guests to consume cannabis have hit a snag due to a Nevada law that makes it a misdemeanor to ingest cannabis inside a moving vehicle, the Las Vegas Review-Journal reports. The owners of the GreenRush Puff Bus argue that their plan complies with state laws; however, Clark County officials issued a warning last week that it was against the law to rent buses, limousines, or other vehicles as a way to consume cannabis.

“None of the casinos, hotels or bars will allow consuming marijuana for years, if ever,” said Nicholas Hogan, co-owner of GreenRush, in the report. “The bus solves that problem by providing a safe area to consume the product in a social environment,” adding that it would “draw tourists.”

One company, Cannabus, has been catering to medical cannabis cardholders in the state for a year but recently asked the Nevada Transportation Authority to put their charter bus application on hold “until the marijuana laws stabilized in Las Vegas,” said Cannabus President Dashan Ritter.

“We don’t allow smoking on our buses,” Ritter said. “But we do think it’s the best, safest and most organized format for tourists.”

Jennifer De Rose, deputy commissioner for the NTA, said “this type of application has not been heard” by the agency, and Clark County spokesman Erik Pappa said that the county is working with the NTA and Las Vegas Metropolitan Police Department in enforcing bans on cannabis use at casinos, McCarran International Airport, and in public.

End

A man wearing a suit and walking across concrete while carrying a briefcase.

Australian MMJ Company Agrees to Purchase Canadian MMJ Applicant

7/27/2017

by

Australian medical cannabis company Creso Pharma has agreed to acquire Canadian cannabis company Mernova Medicinal, who has applied to become the first licensed producer in Nova Scotia, for more than $8.1 million (A$10.2 million, C$10.18). Under current Canadian law, companies must prove they can cultivate cannabis crops before receiving a state license. Creso and Mernova will build a cultivation facility on 20,000-square-feet of land in Nova Scotia according to Good Manufacturing Practice guidelines.

Canadian producers are already permitted to export medical cannabis products to Australia in addition to other nations that accept medical cannabis imports.

Dr. Miri Halperin Wernli, Creso Pharma CEO and co-founder, said the deal allows the company “to rationalize and vertically integrate [their] supply and production chain” through the “100 percent owned GMP-quality cultivation and extraction facility.”

“This move gives Creso a number of strategic benefits, not only when it comes to expanding to overseas markets, but also when it comes to cultivating and manufacturing our own innovative medicinal cannabis products,” she said in a press release. “These will be standardized in dose and formulation, in innovative and proprietary delivery technologies, and will provide patients with new therapeutic choices beyond smoking or vaping.”

The company also produces nutraceuticals and hemp-based complimentary feed for companion and zoo animals.

The cultivation site could expand to 200,000 square feet and the company anticipates producing their first cannabis crop within 12 months of when the site goes online. Creso estimates revenue potential of the first crop between $12.7 million (A$15.9 million, C$15.8 million) and $25.4 million (A$31.8 million, C$31.7 million) per year.

The deal could also allow Creso to enter Canada’s federally-approved adult-use market, which is expected on July 1, 2018.

End

The flag of the United States of America flying on a dock next to still water.

House Republicans Block Veterans Equal Access and Hemp Water Rights Budget Amendments

7/26/2017

by

According to a report from MassRoots, The House Rules Committee is blocking two cannabis-related budget amendments from floor consideration, ruling the amendments are not in order. The affected amendments include the Veterans Equal Access Amendment, which would allow military veterans to access state-approved medical cannabis programs, and the Industrial Hemp Water Rights Act, which would allow hemp cultivators to use federally-controlled water.

Congressman Dan Newhouse, a Washington Republican and member of the Rules Committee, broke from his colleagues on the equal rights amendment, saying he’s seen “firsthand the benefit that people can derive from medical marijuana.”

“We’re not just talking smoking joints here. There’s a lot of different derivatives that can be used that help people alleviate pain,” he reportedly told the committee. “It seems to me that if that’s available and it works we should make it available to our veterans as well, as long as it’s in accordance with state law.”

The veteran’s access amendment could be revived via a conference committee which merges the House and Senate budget proposals into one bill. The amendment had received bipartisan support in the Senate and garnered more co-sponsors than any other amendment filed before the committee.

“All we want is equal treatment for our wounded warriors,” said Congressman Earl Blumenauer in a statement. “This provision overwhelmingly passed on the House floor last year – and bipartisan support has only grown. It’s outrageous that the Rules Committee won’t even allow a vote for our veterans. They deserve better. They deserve compassion.”

Last year, federal lawmakers blocked amendments that would have allowed legal cannabis businesses to access banking services and permit Washington D.C. to spend its own money to implement a taxed and regulated cannabis market.

End

Cannabis infused chocolates on a baking tray inside of an edibles manufacturing site.

Breaking Down California’s Proposed Cannabis Manufacturing Rules

7/26/2017

by

With the passage of SB94 (Senate Bill 94 or MAUCRSA), California has merged the oversight of the 2015 Medical Cannabis Regulation and Safety Act (MCRSA) and the 2016 Adult Use of Marijuana Act (AUMA) into a master regulatory system that will make it much more business friendly.

As part of this reconciliation, MAUCRSA is releasing rules that overhaul some of the rules originally proposed as part of MCRSA and continuing to evolve them in the coming months. This post highlights some of the proposed rules that entrepreneurs and existing operators should be mindful of as 2018 approaches.

Progressing from MCRSA to MAUCRSA

A few months ago, California’s Department of Health proposed a set of rules outlining what kind of products would be prohibited for manufacturers. This is also when MCRSA began to more properly define what ‘manufacturing’ means and spell out the differences between nonvolatile and volatile solvents, which would impact the type of manufacturing license you can get (Type 6 = nonvolatile, and Type 7 = volatile).

New license types were also introduced. One is the Type P license, which allows for packaging or repackaging medical cannabis products. This includes labeling or relabeling the cannabis product containers that go to retail — although if you package or label your own products as part of manufacturing, you do not need a separate Type P license. Another new option is the Type N license, which is for manufacturers looking to produce edibles or topicals using infusion processes or other products that do not require extraction. Both of these are subject to similar restrictions as a Type 6 license.

License application requirements are not changing too much; however the definition of “owner” is, hinting at increased scrutiny during the vetting process for both owners and non-owners. Anyone dealing with or interested in these license types is strongly advised to review what the proposed rules say regarding these license types and their restrictions.

Cannabis manufacturing workers pour an infused concoction onto a tray where it is separated into single-serving cubes. Photo Credit: Sarah Climaco

Restrictions facing manufacturers

Some matters that were released with MCRSA are most likely to remain with MAUCRSA, and cannabis entrepreneurs in California should keep these in mind moving forward.

Consider the following excerpt from Section 77 of SB94:

(a) The State Department of Public Health shall promulgate regulations governing the licensing of cannabis manufacturers and standards for the manufacturing, packaging, and labeling of all manufactured cannabis products. Licenses to be issued are as follows:

(1) “Manufacturing Level 1,” for sites that manufacture cannabis products using nonvolatile solvents, or no solvents. A Manufacturing Level 1 M-Type 6 licensee shall only manufacture cannabis products for sale by a retailer with an M-Type 10 license.
(2) “Manufacturing Level 2,” for sites that manufacture cannabis products using volatile solvents. A Manufacturing Level 2 M-Type 7 licensee shall only manufacture cannabis products for sale by a retailer with an M-Type 10 license.

(b) For purposes of this section, “volatile solvents” shall have the same meaning as in paragraph (3) of subdivision (d) of Section 11362.3 of the Health and Safety Code, unless otherwise provided by law or regulation.

(c) Edible cannabis products shall be:

(1) Not designed to be appealing to children or easily confused with commercially sold candy or foods that do not contain cannabis
(2) Produced and sold with a standardized concentration of cannabinoids not to exceed ten (10) milligrams tetrahydrocannabinol (THC) per serving.
(3) Delineated or scored into standardized serving sizes if the cannabis product contains more than one serving and is an edible cannabis product in solid form.
(4) Homogenized to ensure uniform disbursement of cannabinoids throughout the product.
(5) Manufactured and sold under sanitation standards established by the State Department of Public Health, in consultation with the bureau, that are similar to the standards for preparation, storage, handling, and sale of food products.
(6) Provided to customers with sufficient information to enable the informed consumption of the product, including the potential effects of the cannabis product and directions as to how to consume the cannabis product, as necessary.
(7) Marked with a universal symbol, as determined by the State Department of Public Health through regulation.

(d) Cannabis, including concentrated cannabis, included in a cannabis product manufactured in compliance with law is not considered an adulterant under state law.

The following list is made up of cannabis-related items from the first set of rules that could potentially change:

  • Cannabis-infused alcoholic beverage
  • Addition of non-cannabinoid additives that increase potency of cannabis products
  • Products that must be stored below 41˚F, including perishable bakery products (could contain cream or custard-filled pies /pastries, eggs, synthetic fillings, or meat-filled pies / pastries)
  • Vacuum packed
  • Canned products
  • Dairy products including butter
  • Meat products
  • Seafood products
  • Application of cannabinoid extracts to commercially available snacks or food items.

And, though we won’t be going in deeper detail in this post, here is a host of other issues that would-be cannabis manufacturers should also keep in mind for California’s future market:

  • Multi-tenant operations and co-location restrictions, but with abilities to share facilities
  • Responsibility of tax payment on distributors, and not cultivators
  • Requirement of Type P license (processor) to dry, cure and trim flower
  • Prohibition of trimming on cultivation site
  • Requirement of distributors to hold the entire lot of product on site
  • Transport to be conducted by distributors
  • The Isolation of extraction facilities entirely
  • Uncertainty around requirement of distribution license to self-distribute
  • Complexities around acquiring water from municipal water agency if you are in an urban area
  • The rise of cannabis cooperative associations that allow for small producers to band together, coordinate production and marketing ranging from what they plant, pricing, and process (though limited to 4 acres)
  • Implementation of standards (i.e. hand-crafted, cottage-grown) could be tangibly defined

The MAUCRSA is currently under review and industry participants are strongly encouraged to submit their thoughts regarding the proposed regulations. There is a lot for any organization or entrepreneur to swallow, but taking steps to ensure you’re in alignment and preparing for what’s coming will drastically increase your chances of success in California’s green rush.

End

Maine Lawmakers Propose Doubling Adult-Use Tax Rate

7/26/2017

by

Maine lawmakers have proposed raising the tax on adult-use cannabis sales to 20 percent, doubling the rate approved by voters in November, the Portland Press Herald reports. The proposal would see a 10 percent excise tax paid by the cultivator and a 10 percent sales tax added to cannabis products sold to recreational customers, which could equate to $21 million in state revenues during the first full year of market operations.

The committee also proposed distributing 5 percent of monies raised from retail cannabis taxes to the communities who house the businesses. Meaning municipalities would see $2 for every $40 in tax revenues from sales in their city or town.

David Boyer, Maine political director for the Marijuana Policy Project, said the proposed rate “is low enough to compete with the illicit market” and Massachusetts – where lawmakers are considering raising the legal cannabis tax rate from 12 percent to 20 percent.

“Municipalities should get a share of the tax revenue that comes with regulating legal marijuana businesses,” Boyer said.

The medical cannabis tax rates – 8 percent for edibles and 5.5 percent for everything else – would remain the same.

James Myall, a Maine Center for Economic Policy analyst, estimated that Maine’s taxed-and-regulated cannabis market could reap $18 million annually for the state after two or three years under the 10 percent rate approved by voters. According to the report, New Frontier estimates combined medical and retail cannabis sales in Maine could reach $321.4 million by 2020.

End

San Francisco Creates Office of Cannabis

7/26/2017

by

The new Office of Cannabis has been approved by the San Francisco Board of Supervisors who have already tasked the yet-to-be-hired director with preparing two reports by Nov. 1, according to a San Francisco Gate report. The reports will analyze the social disparities that could cause some social groups to be left out of the industry, and how to keep medical cannabis affordable in the city.

Board president London Reed suggested that the city follow the lead of Oakland, where officials created an equity program aimed and providing reparations to those who were disproportionately affected by cannabis prohibition in recent decades. The board also passed Supervisor Asha Safai’s request to limit the number of dispensaries in his district to three.

Supervisors Jane Kim and Sandra Lee Fewer opposed the decision, saying it sets a precedent allowing the supervisors to do the work of the Planning Department. The Planning Commission, which has passed its own resolution to ban new dispensaries in the city for two years, has final say in the issuance of dispensary licenses.

Supervisor Malia Cohen, who played an integral role in setting up the Cannabis Office, also supported the plan to temporarily limit the issuance of new dispensary licenses until the state develops regulations to govern California’s adult-use industry. Cohen seeks to implement the moratorium as early as September.

End

The flag of Cyprus hangs on a line next to the flag of Greece during a day of celebration.

Cyprus Cabinet Pushes MMJ Plan to Attract International Investments

7/26/2017

by

In an effort to attract international investors, federal officials in Cyprus have approved plans allowing cultivation of medical cannabis on the island, according to a Cyprus Mail report. The cabinet-backed plan, which would make two cultivation licenses available, still needs to be approved by Parliament.

Health Minister Giorgos Pamborides said officials hope to attract capital and start-ups in order to boost pharmaceutical research and development by allowing medical cannabis cultivation.

“I believe that Cyprus can be a pioneer in the region due to the favorable weather conditions,” he said in the report.

Cyprus Weekly reported in May that doctors had begun writing medical cannabis prescriptions for cancer patients which they could fill at pharmacies. Presently, medical cannabis products are imported into Cyprus. Tilray, a Canadian medical cannabis producer, announced on May 4 that they had received approval from the European Union to send Tilray Drops into Cyprus.

Cyprus’ Friends of Cannabis advocacy group has since called on Pamborides to expand access to the program beyond end-stage cancer patients, and urged lawmakers to support a comprehensive state-wide regime.

“By legalizing the cultivation process, in less than two years Cyprus could become the medicinal cannabis capital of a large part of Europe, producing enough for local needs and exports and adding a new branch to its medical tourism product,” said Petros Evdokas, a member of the advocacy group, in the Cyprus Weekly report. “[Pamborides] is not exercising his powers to the full, only to the tragic minimum.”

Pamborides indicated he hoped Parliament would approve the cultivation plans soon so officials could begin seeking potential investors.

End

Dave Peck: Adapting Social Media Marketing Strategies to the Cannabis Space

7/25/2017

by

Dave Peck is the Chief Marketing Officer for KIND Financial, a business offering seed-to-sale software technology to help cannabis companies stay compliant in the evolving marketplace.

In this episode of the Ganjapreneur.com podcast, TG Branfalt hosts Dave for an interview just two short weeks after he left an executive position with PayPal to join KIND’s pioneering journey in cannabis compliance. In the interview, the two discuss Dave’s early impressions of the cannabis industry, the historical evolution of social media, how cannabis companies should change their marketing strategies based on which platform they are using, the importance of data collection and self-reflection when running an online marketing campaign, and more.

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

Listen to the podcast:

Read the transcript:

TG Branfalt: Hey there. I’m your host, TG Branfalt, and you are listening to the Ganjapreneur.com podcast, where we try to bring you actionable information and normalize cannabis through the stories of Ganjapreneurs, activists and industry stakeholders. Today, I’m joined by Dave Peck. He is the chief marketing officer of KIND Financial. How are you doing today, Dave?

Dave Peck: I’m doing good. How are you doing?

TG Branfalt: I’m all right, I’m all right. We were bantering a little bit before we jumped into this, and you’ve only been in the industry how long?

Dave Peck: Two weeks, at this point.

TG Branfalt: Two weeks?

Dave Peck: Maybe three. Yep, I’m new to this industry.

TG Branfalt: Tell me about life before the industry.

Dave Peck: Sure.

TG Branfalt: What did you do before, and how did you end up here?

Dave Peck: I’m one of those early adopter geeks, as I like to say. I’m always the guy to use something first, be it online, or social, or devices, Alexa, things like that. I found my way into digital social media about 10 years ago. We called it new media, we didn’t even know it was social media, and got involved with podcasting, like yourself. One thing led to another, and brands started rushing into social sites like Twitter and Facebook, trying to figure out, how do they use it? I got picked up for some consulting by Coca-Cola, ended up consulting for Wells Fargo, Sergio Rossi, Gucci, more reality stars than you can shake a stick at, because they all want to be famous.

And eventually, a little company called PayPal, about five years ago, made me an offer I could not refuse. I have five children, and my wife said, “They offer health insurance? You’re taking that job.” Joined PayPal back in 2012 to launch their social and digital strategy and campaigns, and then about a few months ago, ready for a change, and I’m now in the cannabis business working for KIND Financial.

TG Branfalt: So, you’re ready for the change. Tell me about how you discovered the position, and why did you decide to enter the space from something pretty mainstream?

Dave Peck: Yeah, I get that question often. Introduced to David, David is the CEO and founder. Got introed, and we had some back and forth for a while, talking about opportunities for KIND Financial. Ended up meeting, more back-and-forth, and talked to my family about it, especially my wife. I’m looking to be inspired, something new. Like I said earlier, I’m one of those, I keep saying it funny, but early adopter geeks. I’m one of those guys, I love being part of a team that’s solving for something, you know? Doing something better than anybody else.

PayPal does what they do better than anybody else, and it was great to be with them at a time when things were exciting, and moving forward. Talking to David, I was just inspired. Realizing the kind of team he’s brought together, and they’re solving for a problem in the cannabis industry around compliance and financial solutions, and to help businesses with government agencies, and just thrive, for lack of a better word, in this time of change. I knew I wanted to be part of it, and it got me excited. I really am excited. I think this is going to be a great ride, and I’m looking forward to it.

TG Branfalt: So, what for some of those things that drew you? What are some of those things that excite you?

Dave Peck: In regards to this industry?

TG Branfalt: Yes, sir.

Dave Peck: What excites me? Building the team. In a team of people that are made up of veterans, and regulators, I find that fascinating. I know that’s weird, but that’s just something exciting.

TG Branfalt: I’m a policy geek. I understand.

Dave Peck: I know. I’m getting to be a policy geek. I’m not quite there yet, but I am a lobbyist, and things like that. You asked me one reason I took it, and about a month prior to my first conversation with KIND Financial, I was talking to a former PayPal colleague who’s a lobbyist. I must have drilled that guy for three hours, Devin. I kid you not, asking questions like that is just fascinating. The timing with that conversation and KIND just really got me interested. What things excite me? Helping the industry grow. Being part of a team that’s, like I said, doing something that others aren’t doing. With KIND, it’s helping customers with compliance, rules, helping them with banking. There is that word, right? Just doing things better than anybody else.

TG Branfalt: Did you, is this something that you looked into when you were looking for a change? Did you say, “Hey, I want to go to the cannabis industry.”

Dave Peck: No, it was not, if I have to be completely honest. The other question I get is, am I a cannabis user? How do I feel about it? I’m neutral. The product does not necessarily have to be cannabis for me, in this example, right? It just happens to be, and I’m fine with that. I’m in California, what can I tell you?

TG Branfalt: So tell me about, what is your job description over there at KIND Financial? The CMO, what do you do?

Dave Peck: Fancy title, right? CMO, people are like, “What the heck’s a CMO?” I am in charge of marketing first and foremost. How are we marketing? How are we targeting our users? How are we getting the word out around what we’re doing here at KIND Financial? In addition, I pick up PR, so public relations in this company falls under there as well. Talking to, being a spokesperson. Talking to one of the best podcasters I know, things like that, who I’ve known for five minutes. Then it’s operations too, day to day. How can we do things better, faster, more efficient?

TG Branfalt: You came from PayPal, as you said. They’re well known, they’re publicly traded. Can you tell me about some of the reactions that you received when you made the jump to this industry?

Dave Peck: Yep. One of the questions I get a lot is, how do people react? Like you said, I’ve had nothing but welcoming and arms wide open. No one has said, “What are you thinking? Are you an idiot?” Or, “I don’t like cannabis,” things like that. The other thing that’s happened is, it happens every day when someone finds out. They all have friends that are in the business. It’s like one of those things that’s taboo, I’m starting to learn, that people don’t necessarily talk about, but then when they know, “Oh, you’re in the same industry? Let me introduce you to a friend.”

I mean, you can see right here I have about four business cards the people have given me that want to talk. It’s amazing. It’s like six degrees of Kevin Bacon, it’s one degree of cannabis. It’s all around me. It’s incredible.

TG Branfalt: Nobody called you a crazy person for entering an industry that is a little under fire right now?

Dave Peck: No, not at all. One of the best messages I have via Facebook messenger was from an ex-colleague named Christina who wrote, I told her I was getting into the cannabis industry. She wrote back, “You’re Dave Peck. Of course, you are.” It’s not shocked at all. That’s the kind of thing I do. I go for that soon-to-be new and up and coming thing. It’s just in my blood.

TG Branfalt: What have been some of the learning curves that you’ve had to endure in your short tenure thus far?

Dave Peck: What are the learning curves? Rules for cannabis are a little different when it comes to digital and social, so that’s the first one. Running ads on Facebook, you can’t use images, necessarily, or anything that encourages marijuana use, but yet, as a business, you can be there. How’s that for a yin and a yang, right? It’s okay to advertise on Facebook, or Instagram, or things like that, but you can’t use images of your product. I find that a little interesting, and I’m still trying to wrap my head around that.

The other one is compliance. I understand that KIND Financial is in the compliance business, I’m in the compliance business. Before I came on board, they walked me through the product, and these questions are blowing my mind. What did you do? I hope I use the right terminology, by the way. Nobody judge me here. “What do you do when you trim the cannabis plant, what did you do with the trimmings? Who took it? Where did it go?” I’m like, “What?” I go, “Isn’t that a lot of questions?” The team’s like, “Oh no, they have to have this information. If they get audited, they’ve got to have this logged.”

That’s why we built the product. It’s mind blowing to me, sorry. What time was it disposed of? Who bought the product? How did they pick it up? I mean I can go on, and on, and on. That is a huge learning curve. I thought it was a joke.

TG Branfalt: It’s no joke. It’s very serious business.

Dave Peck: Yeah, I’m getting that.

TG Branfalt: You had mentioned that on Facebook and Twitter, you can’t market a certain way. You can’t have these images. What changes are you going to have to make with your own marketing strategies to adapt to these rules?

Dave Peck: Historically, one of my main strategies has been images. Image first. People are looking at ads, and going on social networks on their phone first, right? It’s a mobile world we live in, and so it’s harder for people to read the content, the copy, versus the images. I have to adjust what the images I’m using, how I think about it. It’s really going to be something I’m going to have to dive into. Grabbing people’s attention on their mobile device, that’s a big one for me. Then tightening up who we target. Well, not who we target, but in my past, my demographics have been different, right?

I can go younger, I can go older, and in this industry, I am learning that it’s that 18 to 34, right in there, I believe. I know someone’s going to email me and go, “Hey, I’m 72.” You’re right. It’s for anybody, but I have to train myself a little bit different there.

TG Branfalt: I want to talk to you a bit more about the marketing strategies, but before we do that, I want to take a short break. This is the Ganjapreneur.com podcast. I’m TG Branfalt.

This episode of the Ganjapreneur.com podcast is made possible by Name.com, a global provider of domain name, web hosting and email services. Every successful cannabis business needs an online presence, and every successful online presence begins with a domain. From your website to your email address, a good domain is easy for your customers to remember. It looks nice on a business card or billboard, and it reflects the true identity of the project it represents. It’s important to reserve your domain early on when you are starting your business, as you may find that the .com address for your preferred brand or concept has already been taken.

If somebody has already purchased the ideal .com for your business, they might be willing to sell it, but if they aren’t, you may have to get creative with one of the new alternate domain extensions, such as .co, .club, .shop or even .farm. Reserve your domain name today at Name.com/ganjapreneur. If you are a domain name investor or venture capital firm interested in acquiring or advertising premium cannabis domains, go to the Ganjapreneur domain market to browse a wide variety of names, including strains.com, cannabismedia.com, mj.com and countless others.

Discover branding opportunities for your next startup, and learn about listing your premium domain names for sale at Ganjapreneur.com/domains, sponsored by Name.com.

TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt, here with Dave Peck, the CMO of KIND Financial. Before the break, we were talking a bit about how you’re going to have to adapt your own marketing style to fit the space. As we know, you’re brand-new to the space so I want to talk to you a bit more broadly about marketing and social marketing. What are some common mistakes that you’ve seen from new companies throughout your career?

Dave Peck: A lot of them will launch social channels or a digital campaign, and they’re doing what I call shouting, right? It’s, “Look at me, here I am. Come check me out.” Then they wonder why no one is liking their content, or engaging with their content. I define engagement as a like, a share, a comment. Call it an action, right? Those companies will throw a lot of money into it and wonder, “Why is nobody talking back to me, or sharing my content?” It’s because you’re just shouting at them. You’re like, “Hey, we got a sale!”

I pick on Jamba Juice, but they’re like, “Buy three Jamba Juice, get one half off, only in Milwaukee on a Wednesday.” And they’re like, “Why is nobody going to Milwaukee on a Wednesday?” Well, first of all you’re using Twitter. Twitter, in my head, is an amplification tool that’s global. It doesn’t mean that people in Milwaukee are going to see your post, right? Anybody can see that. If you have that poor Jamba Juice example, that’s a Facebook play, right? You can use Facebook to target people, you know where they live. For $20 you can get a targeted ad, and get those people in Milwaukee on a Wednesday.

They don’t use the channels. They don’t think it through. They think all social channels are the same, for lack of a better term. That’s one of the biggest mistakes I see. Others? Influencer marketing. A lot of companies like to hire influencers, and then they’ll have a YouTuber make a video. Great, this is the best video. Then they put it on their channel, their being not the influencer. Well, time out. You just paid this influencer to create a video. You want to have them share it on their channel, because you want to target their audience. You want to get outside the bubble, for lack of a better term. That’s another one of my favorites.

Then lastly is measurement. My team has already learned this at KIND. How do you measure success? I’m all about metrics, right? If you come back and you hire a Snapchatter, and you come back with one million opens, you go, “Look, I spent $100,000, I know I got a million opens.” I’d be like, “So what? What’s the value of an open? Did anybody click on the link, did anybody buy the product? What happened?” Those kinds of things. That’s the other one, because the people get caught up in impressions, which is how many people saw the video. What’s the value of an impression? I have no idea. It doesn’t help me. I’m mean like that, by the way. Can you tell?

TG Branfalt: What might you tell a new company, who’s already made some of these mistakes, how could they rectify them? What advice would you have for them?

Dave Peck: Measure everything. Which sounds like a lot of work, but it’s not. Start backwards. You know, people say, when I worked with companies in the beginning, I’ll say, what does success look like for you? “We want everybody to share our social posts.” It’s like a shrink, right? You’re talking to your psychologist. As we work through it, no, you really don’t. You really want people to go to your landing page and buy your product, so start there. How can we get people to come to our landing page and buy our product? Okay, how do we measure that? Maybe it’s a Bitly, which is one of those links, if you’re not familiar with it. You can custom link, it’s free, by the way. Everything is free.

You go there, and it will tell you how many people clicked on your link, what time of day, where they came from. Take that data, and go, “Okay, I know people are clicking at 11, versus nine, and they really do it on Thursdays.” Okay. You know what I should do? I should post my content at 11 on Thursdays, and then watch them, and then see if the number of clicks go up, great. More people are coming to my landing page. That kind of data, I can go on for hours, I don’t want to bore everybody, but working in a new way, that way. You know what you’re doing wrong, make more educated decisions. A lot of it is all free.

TG Branfalt: When you came into this space and you started working with KIND Financial, what were their goals for you, as this social marketer?

Dave Peck: The goal for me is to increase awareness around KIND Financial’s products, get more people talking about what we’re doing, and make awareness of what problems KIND Financial solves, along the lines of education, compliance, banking, with our link to banking products. Yeah, and awareness, I would say is the high-level answer and measurement.

TG Branfalt: Moving forward to some of the strategies that you’re going to employ for KIND, are you going to take any sort of different approach because you’re in the cannabis space than you would in the outside space? I know that’s similar to previous questions, but what I mean is specifically, KIND doesn’t touch the plant, right? So you can obviously have a little more leeway than you do, as opposed to a company that would touch the plant. What sort of things are you planning on rolling out, or utilizing for KIND?

Dave Peck: I think it kind of goes back to my measurement point about, I want to be more educated in the actions we take. Because we’re in the cannabis industry, finding our audience could be a little bit harder than other, versus people that drink soda pop, or like to shop. I think we’ll be heavier on Facebook, if that makes sense, because with Facebook you can get a lot of data, and a lot of great analytics. I always tell people that for $20, my kid could get you a ton of coverage on Facebook, and he’s 11. He knows it better, it’s scary, than most adults I know.

My credit card shows these bills and I’m like, “What are you doing?” I think there’s a great data, back to my point again about the audience, and who they are, and where they’re located. I think we can make KIND, using my experience, to make really educated marketing campaigns, how about that? I guess that’s what I’m trying to say. I’m trying not to repeat myself from earlier, but that’s really what I think I bring to the table, and where we’ll be.

TG Branfalt: I want to talk to you a bit more again, about some were broader issues with the marketing and the cannabis space, but we’ll take our last break. This is the Ganjapreneur.com podcast with TG Branfalt.

At Ganjapreneur, we have heard from dozens of cannabis business owners who have encountered the issue of canna-bias, which is when a mainstream business, whether a landlord, bank, or some other provider of vital business services refuses to do business with them simply because of their association with cannabis. We have even heard stories of businesses being unable to provide health and life insurance for their employees, because the insurance providers were too afraid to work with them. We believe that this fear is totally unreasonable, and that cannabis business owners deserve access to the same services and resources that other businesses are afforded.

That they should be able to hire consultation to help them follow the letter of the law in their business endeavors, and that they should be able to provide employee benefits without needing to compromise on the quality of coverage they can offer. This is why we created the Ganjapreneur.com business service directory, a resource for cannabis professionals to find and connect with service providers who are cannabis-friendly, and who are actively seeking cannabis industry clients. If you are considering hiring a business consultant, lawyer, accountant, web designer, or any other ancillary service for your business, go to Ganjapreneur.com/businesses to browse hundreds of agencies, firms, and organizations who support cannabis legalization, and who want to help you grow your business.

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

TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt, here with Dave Peck, chief marketing officer of KIND Financial. I’m sure you guys over there collect a ton of data with your software. Can you tell me about how you plan on using portions of that data for marketing purposes?

Dave Peck: That’s a great question. That’s one of the first things I looked into when I started KIND. I reached out to one of the guys in the marketing team and had them look into, what is the data we can pull? What is it that we might want to pull later? Keeping in mind that we want to stay within our user agreement about using people, the data as well as within the legal rights. I said, “Make sure you talk to the lawyers first, and check the user agreement. What can we pull?” Or, what would we like to pull in the future? And not share anyone’s private data, obviously.

I’m interested, what are the biggest sales days for cannabis products? What are the cannabis products being sold most often? What’s the average purchase price? Where are they located? I would love to get my hands on all that data, within the rules and keeping our users safe, of course. That is something we’re absolutely looking into, but we’re not taking any action at this time. Just looking into it. I’m all about the rules.

TG Branfalt: And you would use that stuff, like you said, to target marketing. Maybe it would go out on a Tuesday instead of a Wednesday.

Dave Peck: Yeah, and also to give you a little of what it’s like behind the kimono, you see it happen all the time. Today, someone put out an article about the number one edible, I can’t remember the name, and it was gummy bears. That stuff gets media’s attention, gets PR, basically, so you can help tell your story. You can say, “Hey, we’ve got this great stat, and by the way, here we are, we’re rolling out a new product.” It kind of becomes part of a campaign, and companies that are sitting on that kind of data, I encourage them to look into it and see, again within the rules. I know I’m repeating myself, like the third time talking to one of my kids, but you want to stay legal. You don’t want to do anything that risks your client’s customer data or anything like that, so be really careful with that kind of stuff.

TG Branfalt: Again, coming from an outside industry, and you said that you’re sort of neutral on cannabis. What has this experience so far been like for you? You said that you were accepted with open arms, but what’s the culture been like, going from a PayPal to a KIND? Has there been sort of culture shock for you?

Dave Peck: Well, I look at it this way. Going from a big company to a startup, a new company, I should say, that’s different, but I knew that’s where I came from, so I’m actually happy to be back. Less cooks in the kitchen, able to get things done faster. I’ll answer the other part of your question this way. I’m blown away with how mature this industry is. I use the word professional. I just went to my first conference, and I mean there’s people in suits. Some guys are wearing vests. At the conference I went to, the product was not there at all. There were no plants, but there is people selling lights, and packaging, and vapors, and water with cannabis THC in it.

How well dressed they are, it is not what I expected from the TV shows and things like that. It was really, I’m smiling when I’m saying it to you. It was really fun, too, actually.

TG Branfalt: Which event did you attend?

Dave Peck: It was in DC last week. It was …

TG Branfalt: Ah, we crossed paths like ships in the night. I was in DC, and I was actually notified that that was going on, but I was doing some business down there. I heard that it was really an incredible event.

Dave Peck: It was amazing. It was just not what I expected at all.

TG Branfalt: Would you have any interest in working with, in the future, obviously, working with companies that touch the plant, or are
you more comfortable in an ancillary industry?

Dave Peck: I can’t speak for our CEO, but I would think that —

TG Branfalt: I’m talking about you, personally.

Dave Peck: Me, personally? I have no problem touching a plant, not at all. I’m just raised, I keep saying California, but I do think it has something to do with it. I’m like, “Whatever.” It’s almost a nonevent for me, personally. Don’t care. It’s your own business. I don’t think there’s anything wrong with it. I have no problem with it, you know? It’s just uneventful to me. I laugh at how much attention this gets.

TG Branfalt: Well, I mean speaking of the attention, when it was announced, we covered it, and actually that’s the most times that I’ve been retweeted in my entire life. The minute that you retweeted it, I was like, “Wait a minute, what’s going on here?” My followers were filling up. I was like, “Wait a minute, that’s right. It’s the Dave Peck story. That dude has followers.”

Dave Peck: Oh, you mean me joining a cannabis company, yes.

TG Branfalt: Were you surprised at the response?

Dave Peck: Yeah. Prior to, you nailed this one really well. Prior to the story going out, our CEO, David’s like, “Hey, you don’t understand much coverage we’re going to get.” Give me a break. He’s like, “No, this is a big deal.” I go, “Come on.” He goes, “You want to put some money down on it?” I’m like, “I’ll make a friendly wager, sure.” I lost. Please, I’m not bragging. I’m just saying, Forbes picked it up, Business Wire. It just goes on and on. Some pro-cannabis celebrities retweeted it. I’m like, “What the heck?” I must have had blinders on. I just did not get it. To me it was like, “Really?” And here I am talking to you almost two weeks later, still about it.

TG Branfalt: So you didn’t expect it to blow up the way it did.

Dave Peck: Not at all.

TG Branfalt: In your opinion, why do you think that the cannabis media, and even the mainstream media was like, “All right, we need to talk about this.” From your opinion?

Dave Peck: If I could be honest, I think it, not validates, but I’m trying to use the right word. Not professionalism, but shows that this is a real industry, maybe. These Silicon Valley types are moving to the cannabis industry. It validates it, I don’t know. Legitimizes it, maybe that’s the word I’m looking for. There’s some money to be made here. There is this thing that’s happening, people want cannabis, to be able to access it, and I think this kind of shows it, because along with some of the articles written about me, there are also articles about venture capitalists investing and pivoting their models, even in Silicon Valley, to invest in the cannabis industry. It’s crazy.

That’s the other thing that’s happened. Quite a few VCs have reached out to me to talk about, not necessarily, do I know people they can invest in? I’m like, “I’ve only been at this a week, guys.” This was a week. I haven’t even met anybody yet. “Well, as you meet people, if you think there are businesses you can invest in, please let us know.” I’m like, “Oh my God.” It’s crazy.

TG Branfalt: As someone who has an entrepreneurial background, does it surprise you at all that VC firms are getting in on the ground floor of this?

Dave Peck: No, not at all. This is what they do, right? They want to get in on that as early as possible, so they get a bigger return at the end. Back to, you asked me about my past. Getting in early is my thing, and that’s exactly what VCs do. Here’s another industry, you know? Enough self-driving cars, let’s get into something more practical, that we can get a return back faster.

TG Branfalt: So, the last question I really want to ask you is, what advice as an entrepreneur do you have for not only individuals considering getting into this space, but also people working in mainstream, with mainstream companies who are considering getting into this space?

Dave Peck: In my opinion, the cannabis industry is still pretty young. It’s growing really fast. It reminds me of the Internet boom in the ’90s, or the computers in the ’80s. With all that being said, you’re going to make mistakes as you race to find solutions quickly, and that’s okay. Everyone’s going to make mistakes, and things are going to move fast, but you need to be prepared. Being the first may not equal being the most successful. If you don’t take the time to do it right, you might not do it well. Take the time to do it right, I should say, and do it well. First doesn’t always been successful in this industry, or any industry. If I compare this to Silicon Valley, that’s my two cents. If that makes sense, I kind of rattled.

TG Branfalt: No, that’s great, man. I really appreciate you taking the time to come on the show. Congratulations on the new role. Welcome to the strange, strange world of the cannabis industry.

Dave Peck: I am excited.

TG Branfalt: I really appreciate you taking the time out to, two weeks in, you’ve got a lot of guts my friend. Thank you.

Dave Peck: No problem. You were gentle, so it was great.

TG Branfalt: You can find more episodes of the Ganjapreneur.com podcast on the podcast section Ganjapreneur.com and on the Apple iTunes store. On the Ganjapreneur.com website you’ll 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 have been your host, TG Branfelt.

End

A gavel, typically used by judges in a United States court of law.

Federal Lawsuit Filed Challenging Constitutionality of Cannabis Prohibition

7/25/2017

by

Former New York Jets defensive end Marvin Washington is one of five plaintiffs in a federal lawsuit against the Department of Justice and Attorney General Jeff Sessions which challenges the constitutionality of cannabis’ Schedule I designation under the 1970 Controlled Substances Act, the New York Post reports. Other plaintiffs listed in the suit alongside Washington include 11-year-old Alexis Bortell, who uses medical cannabis to treat epilepsy, and Jose Belen, a military vet who uses medical cannabis therapies to control post-traumatic stress disorder symptoms.

“Classifying cannabis as a ‘Schedule I drug’ is so irrational that it violates the U.S. Constitution,” the suit contends.

Michael Hiller, the attorney representing the plaintiffs in the suit, said, “the record makes clear that the CSA doesn’t make any rational sense and the federal government knows it.”

Washington is suing the government because the CSA is preventing him from securing federal grants to open a business that would allow professional football players to use medical cannabis instead of opioid-based drugs for pain management.

The Justice Department Task Force on Crime Reduction and Public Safety is expected to release a report next week that many advocates fear will try to link cannabis with violent crime, according to a report from The Hill. Sessions has previously asked Congress to oppose language of the Rohrabacher-Blumenaur amendment, which prohibits the use of federal funds to interfere with state-approved cannabis programs.

End

A tall and skinny cannabis plant sticks out of an indoor cultivation center's canopy.

Canadian MMJ Producers Need to Increase Production for National Adult-Use Market

7/25/2017

by

In an interview with the CBC, the executive vice-president of Aurora Cannabis, a licensed producer in the Great White North, is confident current operators will be able to serve Canada’s recreational cannabis market but the companies need to ramp up production in preparation.

“We need to expand our capacity right away simply to meet the demands of the rapidly growing medical cannabis system,” said Cam Battley. “When the demand of the adult consumer system is layered on top of that, it’s a rush to build as much capacity as possible.”

Aurora is doing their part – currently constructing their second facility known as Aurora Sky, an 800,000-square-foot facility at Edmonton International Airport.

Jordan Sinclair, communications director for licensed producer Canopy Growth, said that the demand for medical cannabis in Canada “doesn’t seem to be slowing down…and then with recreation, obviously that’s a massive market opportunity.”

Both companies have found great success in the nation’s medical cannabis industry as both are traded on Canada’s flagship stock exchange, the TSX. Aurora graduated to the big exchange last week, and senior management, directors, key stakeholders, and company supporters rang the opening bell on Monday. Canopy began trading on the TSX in July 2016.

“This is a coming of age, not just for Aurora, but for the cannabis sector and what we’re seeing now is that Canada has established itself as the world leader in a brand new emerging industry that we are literally inventing in real time,” Battley said in the report.

There are more than 60 medical cannabis producers licensed by Health Canada.

End

The Ohio state flag flapping on a windy day in the state's capital city.

Ohio Regulators Approved for Additional MMJ Program Funds

7/25/2017

by

The Ohio Department of Commerce and State Board of Pharmacy received the greenlight to spend another $6 million over the next two years for costs related to the Ohio Medical Marijuana Control Program, including funds for legal costs related to potential lawsuits over the state’s licensing process, Cleveland.com reports. The agencies anticipate being able to both repay the state and operate using money derived from licensing fees – expected to reach $10.8 million annually – by next year.

The funding request by the Commerce Department includes $306,444 for legal expenses related to the administrative hearing process, $3.9 million to set up the required seed-to-sale database and the e-licensing system, and $180,000 to maintain both systems for the program’s first year.

The Board of Pharmacy’s request includes $1.6 million for a consultant to develop a scoring system, and to score, the state’s dispensary applications. The board has hired North Highland Company for the tasks at a rate of $729,000 through a competitive bid process; however, if the applications exceed 250 the rate could rise. The board has budgeted $1.3 million for the scoring work.

Additionally, the board has earmarked $62,500 for legal fees and $250,000 to set up a toll-free help line.

According to the report, Ohio has already collected more than $2.3 million in revenue from application fees. In all, 24 cultivator licenses will be issued – 12 for large grows and 12 for small grows – and licensees will pay $20,000 and $200,000, respectively, to renew those licenses.

End