A digital collage picturing the marriage between Congress, deadly pharmaceutical drugs, and the lobbying dollars of the pharmaceutical industry.

By Prohibiting MMJ Access, Lawmakers Complicit in Opioid Epidemic

The opioid overdoses death toll is staggering – reaching 64,070 in 2016 – and at least one estimate suggests opioids could kill a half-million Americans in the next decade. According to the Centers for Disease Control, deaths from “synthetic opioids excluding methadone” more than doubled from 9,945 in Jan. 2016 to 20,145 in Jan. 2017. So-called “natural and semi-synthetic opioids” also killed more people from year-to-year. In Jan. 2016, such products (i.e., pharmaceuticals) killed 12,726 Americans; in Jan. 2017, that number increased to 14,427. Deaths from heroin also increased from 13,219 in Jan. 2016 to 15,446 in Jan. 2017.

Meanwhile, cannabis hasn’t killed a single human being in all recorded history, yet remains listed alongside heroin as a Schedule I drug – one with “no currently accepted medical use and a high potential for abuse.” Despite this classification, which the Drug Enforcement Agency claims also includes the non-psychoactive cannabinoid CBD, the agency in March approved Syndros – a synthetic cannabinoid drug developed by Insys Therapeutics – for Schedule II designation.

Insys also produces Subsys, a sublingual spray containing fentanyl, an opioid so powerful the top DEA Agent in New England called it “manufactured death.”

“Whatever can be likened to a weapon of mass destruction and the effect it has on people, it’s fentanyl,” Special Agent Michael Ferguson said in a July interview with the Boston Globe.

And say what you will about the DEA and their war against cannabis, which costs taxpayers at least $18 million annually, but by all accounts the agency did want to crack down on illicit opioid distributors and markets – and federal lawmakers not only stood in their way but passed legislation to keep the pipelines and pill mills open.

Congress beholden to Big Pharma

Insys, who donated $500,000 to the anti-legalization campaign Arizonans for Responsible Drug Policy during the 2016 election, was accused in June by former sales rep Patty Nixon of forcing her to lie to boost Subsys sales. In an interview with NBC News, Nixon claimed that her supervisor told her ways to trick insurers into believing the approvals were “medically necessary” and went so far as to wholly falsify oncology records and provide insurance companies with specific diagnoses whether the patient had the condition or not.

In their defense, Insys said in 2015 and 2016 Subsys prescriptions comprised less than .04 percent of all opioids in those years, but the company sold nearly $1 billion worth of the drug over the last five years — $240 million worth in 2016 alone.

“Accordingly, Insys does not believe it (or its fentanyl product Subsys) has contributed to the national, opioid epidemic in any material way,” the company said in a June 4 statement. “…Insys strives to play a meaningful role in providing solutions to address the opioid epidemic by leveraging its expertise in drug development and in developing innovative products.”

Despite the claims of the former sales rep, no action was taken against Insys, and a recent 60 Minutes and Washington Post investigation has brought to light perhaps why pharmaceutical companies are able to thwart enforcement with such impunity. In an interview with 60 Minutes, Joe Rannazzisi, the former head of the DEA Office of Diversion Control, dropped a bombshell – Congress legislatively tied the hands of their law enforcement arm when it comes to opioids.

“This is an industry that allowed millions and millions of drugs to go into bad pharmacies and doctors’ offices, that distributed them out to people who had no legitimate need for those drugs,” Rannazzisi said in the interview.

Legislatively, according to the former DEA special agent-turned-whistleblower, lawmakers heeled the agency with S.483. The measure, titled “Ensuring Patient Access and Effective Drug Enforcement Act of 2016” was sponsored in the Senate by Sen. Orrin Hatch, a Republican from Utah who, oddly enough, introduced the “Marijuana Effective Drugs Studies” – or MEDS – Act earlier this month.

When introducing the MEDS Act on the Senate floor, Hatch pointed to the opioid epidemic as evidence that more federal cannabis research is needed, vis a vis, lawmakers need to pass his bill and begin to look at medical cannabis as an alternative to opioids. “Because Utahns have watched their family members, friends, and neighbors grapple with this epidemic, many are seeking non-narcotic alternatives that can help with pain,” Hatch said in his remarks. “Medical marijuana is just one such alternative. And after careful, deliberative thought, I’ve concluded that it’s an alternative worth pursuing.”

While Hatch is responsible for the passage of S.483 in the Senate, it was championed in the House by Rep. Tom Marino, who was nominated by President Donald Trump to head the Office of National Drug Policy Control and advise the president on drug policy issues.

According to the bill text, the measure “revises and expands the required elements of an order to show cause issued by the DEA before it denies, revokes, or suspends a registration for a Controlled Substances Act violation. An order to show cause must specifically state the legal basis for the action and notify the registrant of the opportunity to submit a corrective action plan.” Effectively, it makes it nearly impossible for the DEA to halt suspicious drug shipments from companies – and the pharmaceutical industry spent more than $102 million related to the act and other pro-industry legislation between 2014 and 2016, according to the Washington Post report.

A bottle of pharmaceuticals spilled onto a white surface. Photo credit: The Javorac

Two days after the 60 Minutes and Post stories were public, President Trump would announce, via Twitter, that Marino had withdrawn his name from consideration for the post. Hatch called the reports “flawed” and “one-sided” and defended both the legislation and his role in its passage in his own series of tweets.

“First, background: This bill is about process and defining rules. Congress, the President, DEA and [Department of Justice] all agreed this change was necessary,” Hatch’s initial post reads. “Second, the Post ignored that this bill received support from patient groups who were concerned about DEA’s unfettered enforcement authority.”

He added that the bi-partisan measure passed by “unanimous consent” and that neither the DEA nor Justice Department urged then-President Barack Obama to veto the measure and concluded that the “DEA and DOJ had a number of tools at their disposal to stop this bill from becoming law. They did not use any of them.”

It’s worth noting that the “unanimous consent” procedure is usually reserved for legislation deemed noncontroversial and, when used, individual votes are not recorded. Michael Botticelli, head of the White House Office of National Drug Control Policy at the time the bill was passed, told the Post that officials “deferred to the DEA, as is common practice” regarding the measure.

“The drug industry, the manufacturers, wholesalers, distributors and chain drugstores, have an influence over Congress that has never been seen before,” Rannazzisi said in the Oct. 15 interview. “I mean, to get Congress to pass a bill to protect their interests in the height of an opioid epidemic just shows me how much influence they have.”

Cannabis’ role as an ‘exit-drug’

In May, the federal National Institute on Drug Abuse, a division of the National Institutes of Health, updated their website to reflect NIDA research on the effects that legalizing medical cannabis has on prescription opioid use. According to the new section, one study found a link between medical cannabis legalization and “a reduction in overdose deaths from opioid pain relievers, an effect that strengthened in each year following the implementation of legalization.” The second study, in partnership with the RAND Corporation, found that legal access to medical cannabis dispensaries “is associated with lower levels of opioid prescribing, lower self-report of nonmedical prescription opioid use, lower treatment admissions for prescription opioid use disorders, and reduction in prescription opioid overdose deaths.”

The results of both studies seem to be reinforced by an analysis titled “Recreational Cannabis Legalization and Opioid-Related Deaths in Colorado 2000-2015,” published this month in the American Journal of Public Health, which purports that cannabis legalization in Colorado has led to a 6.5 percent decrease in opioid-related deaths – or .7 percent fewer opioid deaths per month.

“This reduction represents a reversal of the upward trend in opioid-related deaths in Colorado,” the authors concluded.

Despite the promising results, Dr. Larry Wolk, the executive director of the Colorado Department of Public Health and Environment, told the Denver Post that “anything that does get published at this point should be considered preliminary data.”

“It just hasn’t been in place long enough,” Wolk said, referring to legalized cannabis, in the report.

To its credit, the NIDA is continuing to explore the possible role of cannabis as a tool in stemming the opioid crisis. In August, the agency announced they had awarded a $3.5 million grant to the Einstein College of Medicine and Montefiore Health System for a long-term study on the topic. The institutions will partner with Vireo Health of New York on the project.

Ignoring the signs

But rank-and-file lawmakers, both Republicans and Democrats, continue to act with total disregard to the potential role of cannabis as an opioid exit-drug – if they are not wholly complicit in stoking the fires of the crisis. The so-called “Ensuring Patient Access and Effective Drug Enforcement Act of 2016” certainly ensured patients – and street-level dealers; and teenagers; and children; and my friend Pat; and Prince – could access deadly laboratory-tested, produced-legally-by-legit-tonnage narcotics.

Population of 33,000? Here’s 9 million hydrocodone pills — that’s 273 pills per person over two years and Congress hadn’t even tied the DEA’s hands yet.

Deputy Attorney General Rod Rosenstein indicated the Justice Department plans on reviewing whether to seek a repeal of the now-infamous legislation. “I’m very concerned about it,” he told USA Today.

Rep. Ann Kuster, a Democrat from New Hampshire, last Thursday introduced a measure to repeal S.483. “We know that the opioid crisis has in part been fueled by the over prescribing of opioid pain medications and any limitations on the DEA’s ability to get unneeded prescription drugs off the street must be eliminated,” she said in a statement announcing the bill’s introduction.

Meanwhile, cannabis continues to – anecdotally and empirically – show that it can be used as a potential opioid exit-drug. HelloMD, a cannabis telemedicine company and online community, has twice surveyed their patients and have each time found cannabis helped them reduce or quit their use of pharmaceutical drugs.

A HelloMD collaboration with the University of California Berkeley published in June found that 97 percent of 3,000 participants “strongly agreed” or “agreed” they could decrease their opioid use when using cannabis. In August, research with Brightfield Group found CBD alone allowed 42 percent of respondents to quit using traditional medications; 35 percent of those used prescription painkillers.

Looking up at a White House balcony in Washington D.C. Photo credit: Angela N.

And when President Trump formed his commission to attempt to address this epidemic, who did he choose to chair his opioid commission? New Jersey Gov. Chris Christie – a staunch prohibitionist who barked he would “never” allow legalization while governor. And what has Christie done in his role as chairman? Met several times with pharmaceutical executives, promising them “a good networking opportunity.” The commission did, however, release an interim report in March urging the Executive Branch to “instruct the NIH to begin to immediately work with the pharmaceutical industry” to develop “new, non-opioid pain relievers” and “Medication-Assisted Treatment.”

There is no instruction to consider cannabis …

  • despite the recent NIH-backed research.
  • despite a 2016 study by researchers in Michigan that found 64 percent lower opioid use in patients with chronic pain who used medical cannabis.
  • this study from April that found 76.7 percent of New England dispensary members were able to reduce their opioid use since starting medical cannabis treatments.
  • this 2015 study of 473 Canadian adults of which 80.3 percent reported using cannabis as a substitute for prescription drugs.
  • this study, also from April, that found a reduction in opioid-related hospitalization between 13 percent and 23 percent in states with medical cannabis programs.

And yet, in light of the growing evidence that cannabis could mitigate damage from the opioid crisis, this administration’s so-called opioid commission made not one reference to cannabis in their report – but they did suggest partnering with the very companies that not only create these pills but essentially paid off members of Congress to pass a bill (they wrote­) preventing the DEA from blocking suspicious shipments of opioids.

Sadly, state officials are no better in most cases. In June, New Mexico Health Secretary Lynn Gallagher rejected a proposal by the state Medical Cannabis Program advisory board to add “opioid-use disorder” to the state’s medical cannabis qualifying condition list. Opioid-use disorder was also approved by the state legislature to be added to the regime in April, but that measure was vetoed by Republican Gov. Susana Martinez. According to the state Department of Health, 497 New Mexicans died from opioid-related drug overdoses in 2016, or 24.8 deaths per 1,000 residents.

Martinez’ reasoning for vetoing the proposal? There “appears to be little if any medical literature that actually addresses the effect of cannabis usage on persons with a diagnosed opiate use disorder,” she wrote in her veto message.

According to Leafly’s comprehensive list of medical cannabis qualifying conditions by state, not a single one allows individuals with opioid-use disorder to qualify for medical cannabis.

Photograph looking down on the cola of a medical cannabis plant. Photo credit: Rory Savatgy

What are policy-makers doing?

The short answer is not much. Hatch’s bill would open up research avenues, but without a federal medical cannabis program, state regimes are the law of the land.

New Jersey Sen. Corey Booker introduced the Marijuana Justice Act in August – which would remove cannabis from the federal schedule – but the measure carries nary a co-sponsor, making its passage unlikely. And even if it were to pass, would the president sign it? His cabinet includes hardline prohibitionists yielding vast influence such as Vice President Mike Pence and Attorney General Jeff Sessions. He nominated two more in Marino and former Health and Human Services Secretary Tom Price.

There are several other pieces of cannabis-related legislation in both chambers, ranging from protecting state-approved medical cannabis laws to legalizing CBD. But these bills, especially with a divided House and Senate, will rarely make it out of committee; and if they do they’ll pass one chamber across party lines.

Both federal and state lawmakers are culpable for the out-of-control opioid epidemic, some more than others perhaps, but while bills that could help save lives die in partisan committees, the opioid-related death rate, which last year claimed more American lives than the Vietnam War, continues to climb.

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Cannabis plants lined up inside of a medical marijuana greenhouse in Oregon state.

Canadian Companies Partner for Australia’s Largest MMJ Greenhouse

Two Canadian businesses are partnering to build a 1 million-square-foot greenhouse in Casino, New South Wales, Australia for medical cannabis cultivation, according to a report from the Construction Index. The PUF Ventures and MYM Nutraceuticals project will be completed in two stages; the first phase will cover about 300,000 square feet – which alone would represent the largest medical cannabis greenhouse in the nation.

Derek Ivany, president and CEO of PUF, said the company plans to file their cultivation application with the Australian Office of Drug Control within two weeks and that they have, so far, been met with “positive reception” by the Richmond Valley Council.

The greenhouse construction is expected to cost $39 million and would be able to produce more than 220,000 pounds of medical cannabis per year.

“Assuming recreational cannabis becomes legal and, with a population of more than 24 million people, it is estimated that the cannabis market in Australia will grow to C$9 billion (USD$7.1 billon) over the next seven years, making it a very attractive market,” Ivany said in the report.

MYM is also building a 1.5 million-square-foot greenhouse in Weedon, Quebec, Canada.

“Getting in on the ground level of a market as large as Australia represents a massive opportunity for MYM,” said MYM Chief Executive Rob Gietl said in the report. “Our experience in dealing with all levels of government will certainly pay off, as there are many similarities between the Weedon, Québec project and the Northern Rivers Project in New South Wales.”

The first crop is expected to be planted at the Casino facility in the fourth quarter of 2018.

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The flag of Jamaica in a digital collage with cannabis plants and leaves in the background.

Jamaican Cannabis Industry Association Launches Commercial MMJ Council

The Jamaican Ganja Growers and Producers Association has announced they will launch the Cannabis Commercial Council to help address concerns over the nation’s forthcoming medical cannabis industry, the Jamaica Observer reports. The council will begin its work after hosting its upcoming Ganja Stakeholders Forum.

According to the report, the council will “research, develop and formulate policies for the holistic development of the Jamaican cannabis industry to its full potential” with a particular focus on financing, research, technology, standards and testing, processing, manufacturing, and cultivation. The CCC wants to ensure that smaller cultivators are protected and hope to develop a code of ethics for operators, including instituting a dispute resolution system as a first option before litigation. Organizers are also advocating for a code of ethics system for regulators approving applications.

The Jamaica Cannabis Licensing Authority issued its first cultivation and processing licenses, to Epican and Everything Oily Labs Limited respectively, last week. Hyacinth Lightbone, chair of the CLA, said that three other applications were approved but those firms were “completing their requirements” while another 57 applicants are “in the conditional approval stage,” and another 209 applications “are currently being processed.”

The current medical cannabis regulations in Jamaica do not allow the import and export of cannabis products; however, the nation’s Chief Medical Officer does reserve the right to grant such authority.

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Maine Author Pens Children’s Book Normalizing Cannabis

A Maine author has published an illustrated, rhyming, children’s book about cannabis titled “What’s That Weed?” attempting to normalize cannabis use by families. Russ Hudson, who also works as a cannabis industry consultant, said that he wrote the book to quell the fears of the public and help parents teach their children “the truth about marijuana.”

“Why is it okay to consume wine, beer, or liquor in front of a child, but not marijuana? Why can families hold barbecues and gatherings where alcohol is consumed, people get intoxicated, and that’s perfectly normal, but the moment someone lights up a joint to relax, they’re at risk of persecution?  It’s legal to smoke cancer-causing cigarettes in front of your children, but a joint is worthy of prison or the forfeiture of parental rights? This has to end,” Hudson said in a press release. “Our children deserve to know the truth, and we owe it to them.”

Hudson’s 6-year-old daughter is featured as the main character in the story, which covers both adult and medical cannabis use as well as the use of cannabis as an animal feed.

“Cannabis is perhaps the most valuable natural resource we have on this planet. We were wrong to demonize it, and we’ve been unhappy as a result,” Hudson said. “It’s time to reset the balance on marijuana, and restore it to its rightful place in our lives; on our plates, in our oils, in our industries, and in our minds and bodies.”

Hudson is making copies of the book available to Maine libraries for free.

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Belize House Passes Decriminalization, Hemp Production Bill

Belize’s House of Representatives has approved a measure to decriminalize cannabis possession up to 10 grams and legalize industrial hemp production, according to a News 7 Belize report. If approved, the measure would also make cannabis consumption in private subject to non-criminal fines.

The measure has received bi-partisan support, according to the report, with Opposition Leader Juan Antonio Briceño saying his colleagues would back the plan because they “strongly believe” citizens should no longer be jailed “for smoking a stick of weed.”

“As for me, my difficulty with the current legislation is that it stops at decriminalization,” he said in the report. “I feel that it would been better if we had done all the studies and made the preparations to go even further and move towards the legalization of marijuana.”

Prime Minister Dean Barrow, said that while the House approval was a small first step – and he was expecting pushback from some groups – such as churches – he was “excited” to see movement on the measure.

“I feel as both a matter of conviction that it is something good to do, but also that the society as a whole will support it,” he told Nation News.

The measure still needs to be approved by the Senate and, after that, will head to the desk of Governor General Sir Colville Young.

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The flag of Peru, where medical cannabis has been approved by federal lawmakers.

Peru Legalizes Medical Cannabis

Peru’s Congress has legalized cannabis for medical use in a 67-5 vote with three abstaining, according to a report from Al Día News. The measure legalizes cannabis and its derivatives as a cancer, epilepsy, and Parkinson’s disease therapy.

Congressman Alberto de Belaunde, who championed the legislation called the bill’s passage a “historic moment” for the nation’s Congress. Once the bill is signed into law, officials will have 60 days to craft the program’s regulations.

The approval came following a National Police raid on an illegal cannabis oil manufacturing laboratory in February. According to the report, the lab was making the cannabis oil for sick children.

Congressman Ricardo Navaraez, president of the Congressional Health Commission which had granted its approval for the legislation earlier this month, indicated that the measure will allow importation of medical cannabis products as well as research and production. However, he said that production was “the most controversial” issue in the legislation.

“For us it is a great satisfaction, it is a law that is going to revolutionize, in a country with many prejudices, concerns and fears, I believe it is a good message,” he said in the report.

The overwhelming majority vote allowed the measure to be enacted without going through a second vote as is customary in Peru.

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The Maine State Capitol Building in Augusta, Maine.

Maine GOP Leaders Seek to Extend Adult-Use Moratorium into 2019

Republican lawmakers in Maine are attempting to push back the rollout of the adult-use regime until Jan. 2019 after already delaying the market launch three months following the referendum’s passage last November, the Portland Press Herald reports. The move is backed by House Republican Leader Ken Fredette and Gov. Paul LePage.

According to the report, the suggestion has irked several members on the legislative committee that has been crating the rules in preparation for the Feb. 2018 start date; but Fredette said lawmakers shouldn’t be expected to rush a 76-page bill that passed by a small majority. He said extending the moratorium “is the least lousy option.”

“I’m not saying we’re not going to do this, but we need to slow it down and do it right,” he said in the report. “You can’t just plop a bill this big down and say pass it right now or we’ll have chaos. That is not how you make laws here in Maine.”

Leaders of the committee, Republican Sen. Roger Katz and Democrat Rep. Teresa Pierce, criticized both Fredette and LePage for not being more active in the rule-making process and that state agencies they invited to work with them on the rules had not provided any assistance.

“The 11th-hour attempt to wreak havoc is obstructionism for no good reason,” Katz told the Herald. “Their unwillingness to problem-solve is irresponsible to the voters, the businesses and the communities of Maine.”

Even if lawmakers pass Fredette’s moratorium, Maine residents can still cultivate up to six mature plants and possess 2.5 ounces of cannabis for personal use.

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Lighthouse on New Zealand's northernmost point, Cape Reinga.

New Zealand PM Considering Referendum to Legalize Cannabis

New Zealand’s newly elected Prime Minister Jacinda Ardern said she is considering putting the cannabis legalization question to voters, suggesting in a CNBC report that she would like the nation to hold a nationwide binding referendum on the issue before 2020.

“During the campaign I’ve always been very vocal about the fact that I do not believe people should be imprisoned for the personal use of cannabis,” she said in the report. “On the flip-side, I also have concerns around young people accessing a product which can clearly do harm and damage to them.”

The reforms in the nation are being spearheaded by the Green Party, who want to remove all penalties for individuals growing cannabis for medical use and implement age-restricted adult use.

Ross Bell, New Zealand Drug Foundation executive director, indicated he regularly sees polls favoring cannabis law reforms in the country and said that previous government “have not wanted to engage on this issue.”

“Lo and behold the Green Party come along, and allows the country to have the sort of conversation we should have had for a long time,” he said in an interview with CNBC.

Presently, Uruguay is the only nation to have a federally-approved cannabis market; Canada is expected to implement its own legalization scheme by July 1, 2018.

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Focus Group Study Explores Reasons Consumers Prefer Cannabis Edibles to Smoking

According to research by RTI International, an independent nonprofit research institute, cannabis consumers in legal states prefer edibles to smoking or vaporizing, citing lack of odor, no secondhand smoke, discreetness, convenience, longer lasting and less intense highs, and “edibles’ ability to aid in relaxation and reduce anxiety more than smoking.

The study was conducted via eight focus groups – four in both Denver, Colorado and Seattle, Washington – in February with 62 total participants.

However, some participants indicated that they didn’t like the delayed effects, unpredictability of the high, and “inconsistency of distribution of marijuana in the product.

“No participants in either location mentioned harmful health effects from consuming edibles as a concern,” the authors noted.

Sheryl C. Cates, lead author for the study and RTI senior research public health analyst, added that for some participants “consuming edibles provided better pain and anxiety relief.”

“Importantly, the delayed high from edibles vs. smoking or vaping marijuana may contribute to consumers ingesting a greater than intended amount of the drug before they feel high,” Cates said in a press release. “Informing the public on delayed activation, accidental ingestion, proper dosing and harmful effects will help consumers make better decisions and help protect public health.”

Jane A. Allen, RTI public health analyst, said that while the study “did not examine whether edibles are used as a substitute for other drugs” several studies have shown that increased access to legal cannabis products “may reduce” the frequency and amount of pain and opioid medication use.

RTI plans to unveil two case studies on edible policy in Alaska and Washington during a series of hour-long webinars which begin on Oct. 23.

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Side portrait photo of Attorney General Jeff Sessions speaking at a candlelight vigil.

Sessions: ‘Healthy’ for Feds to Approve More Cannabis Research Applications

During a Senate Judiciary Committee oversight hearing, Attorney General Jeff Sessions admitted that it would “be healthy to have some more competition” in the federal government’s cannabis research program, noting that there are currently 26 supplier applications before the Drug Enforcement Agency from entities interested in growing cannabis for federal medicinal research.

“Each one of those [cultivation sites] has to supervised by the DEA,” Sessions explained. “And I have raised questions about how many and let’s be sure we are doing this in the right way because it costs a lot of money to supervise these events.”

The Attorney General’s remarks came during a line of questioning from Sen. Orrin Hatch about reports that the Department of Justice has actively blocked the DEA from moving forward with approving additional cannabis research applications.

Hatch, a Republican from Utah and senior member of the Judiciary Committee, last month introduced the Marijuana Effective Drugs Studies – or MEDS – Act to encourage federal cannabis research, adding that it could be an “alternative” to using narcotic pharmaceuticals for pain.

“To be clear, I remain opposed to the broad legalization of marijuana,” Hatch said during the hearing, adding that he introduced the MEDS Act because he believes “scientists need to study the potential benefits and dangers” of cannabis.

Since 1970, the DEA has issued a single license to grow cannabis for federal research. The farm, a partnership between the National Institute on Drug Abuse and the University of Mississippi, had its license renewed in 2015. Last year, the DEA called for adding more research licenses, but no new licenses have been issued. The agency has approved 350 individual applications to independent researchers to study cannabis and its components.

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The top cola of a young, outdoor cannabis plant.

Jamaica Licenses First MMJ Cultivator & Producer

Jamaica’s Cannabis Licensing Authority has granted its first approvals for the nation’s medical cannabis industry, as Everything Oily Labs Limited was issued a processing license and Epican was issued a license to cultivate, the Jamaica Gleaner reports.

Hyacinth Lightborne, chair of the CLA, indicated that three other applications were also approved and those companies were “completing their requirements,” while another 57 applicants are “in the conditional approval stage,” and 209 other applications “are currently being processed.”

Agriculture Minister Karl Samuda commended the CLA for its diligent work in the process noting that the agency is ensuring that Jamaica’s products will “meet the standards of the international community.” However, he also warned that regulators needed to “move swiftly” in the application process while ensuring that the products “meet the standards of the international community” so the nation does not “miss the boat.”

“So I ask that [the CLA] be very careful but at the same time be very swift in the discharge of their responsibilities,” he said.

According to the CLA website, current regulations in Jamaica do not allow for cannabis import or export; however the nation’s Chief Medical Officer does have the authority to grant the export and import of cannabis “preparations” such as extracts and tinctures. In addition to allowing medical cannabis production and use, the 2015 amendments to the nation’s Dangerous Drugs Act also allows for expungement of some cannabis-related crimes.

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A tall, green building surrounded and contrasted by orange and red buildings.

New Frontier Data Partners with Public Accounting Firm for Cannabis-Tax Reports

CohnReznick LLP, one of the largest public accounting firms in the U.S., is partnering with New Frontier Data, which provides cannabis industry data and analytics, to produce reports and webinars on tax issues in the cannabis space.

Giadha Aguirre De Carcer, CEO and founder of New Frontier Data, said the partnership “could not have occurred at a more pivotal time for the industry as a whole” and the two firms “will explore the overall impact the U.S. tax code” has on industry operators, investors, and stakeholders.

“The industry is growing very fast, with still little visibility into, or understanding about, critical matters relevant to both compliance and profitability,” Aguirre De Carcer said in a statement. “CohnReznick’s breadth and depth of expertise in complex taxation and regulatory matters will fulfill a critical need in this rapidly growing market.”

The companies plan to produce bi-weekly tax insights that will be published in New Frontier Data’s free weekly “CannaBit” newsletter, a report examining “the tax pitfalls” facing canna-businesses, and two educational cannabis tax-specific webinars.

Michael Harlow, partner at CohnReznick, said they are “very excited” to launch the project.

“We are looking forward to applying our expertise in this burgeoning market while working hand in hand with New Frontier Data to fill clients’ needs for business intelligence that helps maximize their mission and growth goals,” he said in a press release.

Based on aggregated 2013 revenues, CohnReznick, based in New York City, is the 10th largest public accounting firm in the U.S., reporting $508 million in revenues in 2014.

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CannaRegs ‘Pulls Plug’ on Deal with MassRoots After CEO Shakeup

CannaRegs CEO Amanda Ostrowitz said the company is “pulling the plug” on its $12 million stock deal with MassRoots following the surprising vote by MassRoots’ board of directors to remove founder Isaac Dietrich as CEO and install Vice President Scott Kveton, Business Insider reports. Ostrowitz, who was named president of MassRoots in conjunction with the deal, was traveling in Italy at the time of the vote.

“I had no idea what the hell was going on with the board,” she said in the report, adding that she is voiding the deal because she needs to do what is best for her company, “not be on a roller-coaster ride.”

According to the report, Ostrowitz indicated she had not been in direct contact with the board over the ouster of Dietrich or CannaRegs’ withdrawal from the deal; instead, she had received confirmation of the withdrawal from attorneys. Forbes, who broke the MassRoots story, reported that Dietrich’s removal was directly related to the CannaRegs deal as Kveton believed the price Dietrich paid for the company was too steep.

“This was a deal we absolutely intended to do,” Ostrowitz told Business Insider, adding that she had not considered selling the company until approached by MassRoots and was actively raising funds to thwart a separate attempt to purchase the firm. “We were in the due diligence, paperwork phase. We did everything we needed to do.”

In an email to Business Insider, Kveton indicated that the “transition” to remove Dietrich had been in the works for “some time” and called Ostrowitz’s decision “unfortunate.”

“ … Amanda has built a great business, but ultimately the board wanted to maximize the deal for the MassRoots shareholders and we just couldn’t get there,” he said in the email.

Ostrowitz said that while the company is “still on good terms with Massroots” she didn’t think Dietrich should “be out of the picture.”

Dietrich, who is still listed as CEO on the MassRoots website, has not publicly commented on the board’s vote.

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Study: Opioid-Related Deaths Decrease after Colorado Legalization

According to a study published in the American Journal of Public Health, cannabis legalization in Colorado has led to a 6.5 percent decrease in opioid-related deaths, equaling .7 percent decrease in opioid deaths per month.

“This reduction represents a reversal of the upward trend in opioid-related deaths in Colorado,” the authors wrote concluded in the study titled “Recreational Cannabis Legalization and Opioid-Related Deaths in Colorado 2000-2015,” published in the American Journal of Public Health, and online Oct. 11.

According to a Washington Post outline of the study, the researchers examined opioid-related death trends before and after Colorado’s adult-use laws took effect, attempting to isolate medical from recreational markets by comparing Colorado to Nevada, which did not allow adult-use cannabis use in 2014, as Colorado did. The team purports a 95 percent confidence level.

The study is the latest to support numerous others finding cannabis could be used as an exit drug for opioid use disorders. A HelloMD and University of California Berkeley survey of nearly 3,000 patients earlier this year found 97 percent of participants agreed that they could decrease their opioid use when using cannabis. A University of British Columbia and University of Victoria study published in February found 30 percent of medical cannabis patients were using cannabis instead of opioid-based prescriptions. In May, the National Institute on Drug Abuse, a division of the National Institutes of Health updated their website to reflect NIDA research reflecting correlations “between marijuana legalization and adverse outcomes associated with prescription opioids” which found that states with legal cannabis access see lower levels of opioid prescribing, non-medical opioid use, and less opioid-associated hospital admissions.

“Notably, the reduction in deaths was present only in states with dispensaries (not just medical marijuana laws) and was greater in states with active dispensaries,” the new section states. “Though none of these studies are definitive, they cumulatively suggest that medical marijuana products may have a role in reducing the use of opioids needed to control pain. More research is needed to investigate this possibility.”

End


The Pennsylvavnia state capitol building in Harrisburg, Pennsylvania with a rainbow behind it.

Pennsylvania Allows First MMJ Producer to Begin Production

Cresco Yeltrah has been given the greenlight by the Pennsylvania Department of Health to begin medical cannabis production – it is the first licensed operator to receive the go-ahead in the state. The firm, one of 12 licensed in Pennsylvania, is based in Jefferson County, northeast of Pittsburgh.

Cresco has already integrated with the state’s seed-to-sale tracking system and is now able to begin accepting seeds and clones.

“Every day we hear from patients who are desperately waiting for medical marijuana to help alleviate the symptoms of their serious medical conditions,” said Gov. Tom Wolf in a press release. “My message to them today is that Pennsylvania’s medical marijuana program is moving forward and we will have medication to them sometime in 2018. Cresco Yeltrah will now be able to grow medical marijuana, making sure that patients will not have to wait much longer.”

Acting Health Secretary and Physician General Dr. Rachel Levine said she expects the state’s 11 other licensed producers to be ready to cultivate and process medical cannabis “in the coming weeks.”

“We are working with them, as well as the dispensaries, to ensure the program stays on track,” Levine said in a statement. “Patients are our first priority, and we want to get medication to them as safely and efficiently as possible.”

Officials expect the program to be fully implemented by 2018.

End


Neeraj Bhardwaj: Creating the Magnetic Induction Vaporizer

Neeraj Bhardwaj is President of Loto Labs, creator of the Loto Lux, the world’s first magnetic induction-based vaporizer.

Neeraj recently came on the Ganjapreneur.com podcast to talk with our host TG Branfalt about the magnetic induction technology used inside of the Loto Lux, how the experiences of his family and his own desire for a healthier lifestyle set him down the path to establishing a new and improved vaporizer technology, the company’s successful crowdfunding campaign, staying the course through fallout from unforeseen difficulties, and much more!

Listen to the interview below, or scroll down to read a full transcript of this week’s Ganjapreneur.com podcast episode.


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey there, I’m your host TG Branfalt and you’re listening to the Ganjapreneur.com Podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Neeraj Bhardwaj. He’s the President of Loto Labs. How you doing today?

Neeraj Bhardwaj: I’m good. How are you doing?

TG Branfalt: I’m doing all right. Doing all right. Really stoked to talk to you. Your story’s really interesting. How you brought the Loto Lux to market is really interesting. Before we get into that, what’s your background? How did you get into the cannabis space?

Neeraj Bhardwaj: Ah, yes, that’s an interesting question actually, because I’m from tech. My background is mainly semiconductors and non-destructive testing and the way that I got into cannabis is kind of a personal story. My mother was diagnosed with cancer a few years ago and when she was going through chemotherapy they were giving her all kinds of medicines to eat, and to sleep, and, you know, chemotherapy is itself a poison. She couldn’t eat and it was sad to see her become so thin, so someone suggested I take her cannabis.

Now, this is an Indian woman who’s never smoked or drank in her life, and myself I had only done it a couple times before that. It wasn’t something I did or practiced. I had to learn how to smoke it and that meant grinding it and rolling it, with tobacco in this case, as the person who showed me to do it. We were rolling spliffs and honestly, Mom felt fantastic and she could eat french fries immediately. It was absolutely unbelievable. I was shocked at what cannabis could do when I felt great.

After she passed I started smoking a lot of cannabis and I really gave up drinking and really, really enjoyed different strains and kind of got into it that way. Besides that, I really, really want to stop smoking cigarettes and that’s part of the way I got into the vaporization space. I wanted to stop smoking everything.

TG Branfalt: Originally, you had applied for a patent to apply this technology for the glycerin propylene glycol nicotine. Let’s start with this. How’d you originally get the idea for the Loto Lux? Explain to me what sets it apart from other vaporizers?

Neeraj Bhardwaj: All right, so the idea for the Loto Lux, it came from necessity. After my mom passed away, my son was born a few months later, and I wanted to stop smoking everything, because obviously there are tiny particles that are caught on your clothing, and it’s in your breath. You exhale carbon monoxide for, I believe it’s months, or maybe not months, but it’s a long time after inhalation of, say, cigarettes. Carbon monoxide’s exposed. You don’t want to have that around a small infant. I started trying vaporizer after vaporizer, and unfortunately, I found that all the vaporizers that I tried had issues related to their heating technology. That’s indicative with all resistive heating.

Basically, I was frustrating with burning, breaking. What I mean by breaking is there was a replaceable part, always. Like a coil or the cartridge, which happens to be the entire vaporizer. All these consumable piece are annoying because they break. They also burn. The material which it intends to vape as well, is something called a wick. It’s inside of a vaporizer as well. Now, this is different for dry herb and liquids. I’m kind of going to go back and forth between the two, but I’ll try to be distinct when I do that.

We started teaching my son baby sign language, and in baby sign language, I met one of the most brilliant minds I’ve ever come across. Dr. Andrew Bleloch. He is a Cambridge physicist, has taught there, as well as other universities. He started a couple other startups in different spaces, like genome sequencing and electron microscopy, and most recently a vape company with me. We have another founder named Gabe. He was a friend through ice hockey, and we frequently used the ice hockey rink for our first meetings. This idea for the induction vaporizer, and for the Loto Lux, which at that time, we called the Evoke, came from a combination of wanting to make a different vaporizer with a different technology.

We found magnetic induction, because Andrew said nobody’s doing it, so we patented it. A couple days later, we filed for our provisional. A couple weeks later, we shot a crowdfunding campaign, and the rest is history.

TG Branfalt: Why did you specifically decide to use that tech for cannabis? As a layperson, I’m not really clear on what magnetic induction heating is, so why don’t you give us an overview of what that does and why you chose to run with that when you were designing the product?

Neeraj Bhardwaj: Yes, excellent question. Magnetic induction is one of the four ways to heat up something organic. We know that that’s combustion, you light something on fire. There’s irradiation, with something like plutonium, which is very dangerous. There is resistive heating, which is how every single vaporizer today works. They all use a resistant wire, which is shorted over some power source. In most cases, a battery. We just discussed the burning, breaking, leaking. Then there’s magnetic induction.

If you’re familiar with magnetic induction stove tops, I can explain it in a moment, but this is exactly the same technology that we’re using. In a magnetic induction stove top, you turn on the stove to 100%, you put your hand on it, it’s ice cold, or room temperature I should say, you then put a ceramic pot on it, the ceramic pot will do nothing, there’ll be no interaction. You put a magnetic, metal pot on top of that surface, and it will heat evenly itself, meaning that the magnetic pot is the heater. Field waves create magnetic hysteresis, as well as any currents which flow up and down the surface of that magnetic metal. This then causes something like molecular friction, which causes the heat to arise inside of the material. This happens very efficiently and very rapidly depending on a couple different factors. We miniaturized and patented that for personal vaporization.

TG Branfalt: How long did that take you, man? I mean, just you explaining it, it sounds sort of futuristic almost. From the time that you sat in that ice hockey rink, and you guys said, “All right, this is what we’re going to do.” Until you drew up the patent. How long did that take for you to design this?

Neeraj Bhardwaj: Oh my gosh. That’s a complicated question, because it took a very long time to make this device. Well, that’s the story of the last couple years, then, isn’t it? The concept didn’t take long, but the implementation of a concept to an actual physical product took a brilliant mind, here in Silicon Valley, a gentleman named Darius …. He came up with the original circuit designed for magnetic induction vaporizer. We came up with something called a magnetic induction susceptor, which happens to be the heater and the wick, which is one piece. That piece, when placed inside of our magnetic induction field, will heat up evenly, without contact. It’s pretty amazing.

TG Branfalt: You crowdfunded this thing, which I find is really one of the most fascinating aspects of this whole project to me, because of the number of these crowdfunding projects that succeed is very small compared to the number that fall apart or never get funded. Can you tell me about the crowdfunding experience, or about your experience in the crowdfunding space?

Neeraj Bhardwaj: Yeah. Let me tell you what’s going on with the crowdfunding space. It was amazing. It helped launch this company. It built a core group of fans. It showed us market validation, which is very useful for investors, and it was all around an amazing learning experience. There was a guy named Gregory Fox who came to our Garage Mahal and he was amazing. He got to try the unit. Yeah, he’s one of the original backers. We have a couple of these folks who have come, and that we’ve met over the years that we’ve traveled to LA a couple times. It’s been pretty remarkable, the crowdfunding people that we met.

The crowdfunding campaign doesn’t get you to product, not to people. I can say that with confidence. Unless you’re knitting your own hats, if it’s something that’s a complicated electronic device, you still have to have more money to get to product. We had to raise more funds, like everyone else, and in doing that, we had to build prototypes to prove that this technology was viable, to ourselves, and obviously, to investors, and the community. It took a long time to do that, and we had some pitfalls along the way.

We worked with a very ambitious company in Silicon Valley that was our first design firm, and they did maybe some unscrupulous things, but generally, they lost key personnel. The gentleman named Darius. He had left the company for a variety of reasons, and because of that, we also left that company. That set up a variety of different things that happened to us. We found a new design firm. We had to change the design. This took a long time. Then, there were respins of the boards. We had to tool. There were a number of different things that happened.

TG Branfalt: You had mentioned that you had a couple of setbacks. What kept you going when you hit a snag, and what did you do to maintain support?

Neeraj Bhardwaj: Oh, that’s a good question. The way that I was able to maintain this company during this time. It was pretty difficult, because I had new kids … A new kid, sorry, and then another new kid later. Having children is very, very complicated with the startup at the same time, because of sleep deprivation. What kept me going through this, maybe it was some kind of mania, because I can’t really tell you how all of this came to fruition. Really, what kind of kept me on this path was the patent. The fact that I knew we had something. This is a real technology. This is something that’s impressive and amazing, and I think that because I’m a user of this technology, I’m maybe the only user out of a couple of us, I knew this was something really important and really significant. We also had a lot of interest from some massive companies worldwide. Private equity firms to other corporations that were in the space. Because of that, it was obvious that they were eyeing us to see if we would live or die, so I chose to live.

TG Branfalt: What amongst the crowdfunders, the general public, not just the investors, but the individual that helped with the crowdfunding, how did you maintain their support?

Neeraj Bhardwaj: Oh, so let’s talk about that. This has been a tricky situation for us. We, as I mentioned before, had several setbacks. We try to always convey the most up to date information we had, and while that seems the most ethical and smartest thing to do, it is now proven to be wrong to me. I would say that what we should’ve done is, we should’ve waited to communicate longer at the beginning, but instead, we got whatever information we had and we passed it along to our crowdfunders, and it was extremely overzealous. That being the case, we missed our deadlines, and missing deadlines is a terrible thing in crowdfunding.

However, we have extremely supportive crowdfunders. Unbelievably. There are very many vocal crowdfunders that you’ll find from our campaign that are very upset that they haven’t received their units yet, but I think all will be forgiven as soon as they receive those units. However, the majority of the people, the vast majority of the people, have been supportive, and it’s been remarkable.

TG Branfalt: I mean, it takes a lot for any individual, or entrepreneur, or someone in a startup to be able to come out and admit that mistakes were made and not make excuses, so I applaud your candor in those regards. I know that they’re starting to ship here pretty soon, so congratulations, you’ve made it. Right?

Neeraj Bhardwaj: We’ve made it. We’ve got here. We did it. We made the units. We put the money in. We have made it. They just have to ship. Next year is going to be an interesting year for us. This year, we just need to focus on getting Loto Luxes out to our crowdfunders and to the market.

TG Branfalt: Well, I want to talk to you a bit more about your experience in the space. Before we do that, we’ve got to take a break. This is Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Hey. Welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt here with Loto Labs president Neeraj Bhardwaj. Before the break we were talking about the fact that you’ve gotten these units, they’re off the line, you’re entering the market with a product. Tell me about your experience thus far in a crowded and competitive market such as cannabis vaporizers.

Neeraj Bhardwaj: Yeah, good question. I worked in semiconductors and non-destructive testing for about 15 years. Both of which are very, very competitive and crowded. I was in sales and marketing, and I can tell you what I learned. I learned that companies with the most protectable IP and more products in their IP pipeline had the best shot at long term value creation. Without IP, and that stands for intellectual property, without such a thing, you will always have “me too” competitors, and it will basically come down to who has a better marketing budget. Cannabis is a lot like semiconductors. At the beginning, it grew at an absurd rate. I mean, obviously, cannabis is growing at an absurd rate. There’s room for lots of competition here, because the market is growing so incredibly fast, and a high tide lifts all boats.

Another thing I gleamed from corporate life was that in a competitive market, the customer wields much more power, and companies really have to account for that. That’s something that we’re really focusing on. You may have noticed some of our rebranding efforts. This is a very difficult task. The voice that we’ve been speaking with now, we have some new personnel and couldn’t be more grateful to them for coming on board.

TG Branfalt: When you were entering the space, you mentioned intellectual property, that’s not something that’s really afforded to a company that touches the plant, we’ll say. Was the ancillary industry, is it a little more appealing to you because you have those IP protections?

Neeraj Bhardwaj: Well, yes. Obviously, we’re an ancillary company to the cannabis market. We’re an ancillary company to the tobacco market. We are the don’t smoke market.

TG Branfalt: As a new entrant to the cannabis accessory industry, what has struck you the most about the space thus far?

Neeraj Bhardwaj: So far I would say it’s the support and enthusiasm people have for this industry, within the cannabis community as well. You don’t really find that in semiconductors. I also think a common misconception you hear is about the green rush and all these cannabis companies make lots of monies, but the reality is that this fluctuating, uncertain, and changing market is making it very complex to do things like banking and to use credit cards. We get lumped into these categories all the time, and it makes it quite challenging for us as well, especially because we are not pro-cancer, let’s put it that way. Very anti-cancer here. It makes us really upset when people are comparing us to … Whatever reason. Whatever they want to stop us for, it’s very upsetting.

TG Branfalt: You’re talking about because your product is used for … It’s not a smoking device, so why are you lumped into this sort of market?

Neeraj Bhardwaj: Well, vaporizers were ancillary to nicotine. Fortunately, we straddled tech, cannabis and nicotine as well other herbs and medicines. Vaporizers are viewed as paraphernalia.

TG Branfalt: What has the response been from people within the cannabis industry, people who touch the plant? What has been their sort of response to the Loto Lux?

Neeraj Bhardwaj: People within the industry have given us some interesting feedback. The biggest feedback we get is that the flavor of their cannabis is unbelievably better with our device. If you look at, say, concentrates, for instance, every device that I can think of actually ends up burning some of the concentrate. Our device does not, and it creates an unbelievable flavor.

TG Branfalt: So it maintains the terpene profiles?

Neeraj Bhardwaj: There’s a lot of things you can do. Our device is extremely customizable. There’s an app that allows you to change settings. You can change, obviously, the way a terpene profile is inhaled by adjusting different heat settings. Unlike a normal resistive heating device, where you have a bell curve of heating that goes up and then goes down, ours has an attack, sustain, and decay, much like an electronic keyboard. There’s an attack at the beginning when you start heating, and then there’s a sustain, and there’s the decay. Very digital in comparison, because the temperatures are able to change so rapidly.

TG Branfalt: This is done through a phone app?

Neeraj Bhardwaj: That’s right.

TG Branfalt: How did you figure this out? How did you figure out that you could maintain some terpene profiles with differences in heating?

Neeraj Bhardwaj: Well, it’s just been a lot of testing, actually. It’s been quite a lot of testing over here. Yeah, it’s a complicated process. I can’t quite say the exact terpene profiles, or exactly what’s happening, but obviously something’s happening, and it’s going to take some PhDs some time to research this and come up with a set of values for what’s happening here.

TG Branfalt: I mean, that’s a super, super cool function. As a guy who really enjoys my vaporizers, and especially my live resins, and things that maintain terpene profiles, that’s a really exciting feature for us terpene snobs.

Neeraj Bhardwaj: Oh, man. You’re going to love it. You should see what happens with dry herb. There’s different settings for that as well, so you can go from a very smooth flavor, a very nice experience, all the way to something like incinerated. People like to do that, [inaudible 00:21:31]. Incinerate that popcorny flavor out and just take it in. I don’t know any other vaporizer that can really do that.

TG Branfalt: I haven’t heard of one yet, my man. I want to talk to you a bit about your Cannabis Cup experience, but before we do that, we’ve got to take our last break. This is the Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Hey, there. Welcome back. I’m your host, TG Branfalt. You’re listening to the Ganjapreneur.com podcast. I’m here with Neeraj Bhardwaj, president of Loto Labs. You guys went to Cannabis Cup. I’ve been to one, so whenever I find someone who’s been to one, I really like to talk to them about it. Describe your Cannabis Cup experience, and how did you leverage that opportunity?

Neeraj Bhardwaj: All right. Yeah, let me tell you about that. We’ve actually been to several Cannabis Cups. We’ve done a lot of research before we went to the one where we presented at the 2014 Denver Cannabis Cup. I would say my experience with the Cannabis Cups are a lot like my first experience with Oktoberfest. Going to Denver, the mecca of cannabis at the time … I say at the time, because I think it’s going to shift to California, but anyways. It was exciting, and we saw a lot of different things. A lot of interesting people were at these events. With met a lot of the general public that would use our device. It was a really, really interesting thing to have thousands of people try our device in such a short period of time. The feedback and support we got was amazing, and basically, everyone loved the taste. That was the thing.

We heard three things, mainly. The flavor’s unbelievable. Oh, you can switch capsules so easily? That’s pretty amazing, because unlike other vaporizers, you fill these capsules in advance, and you just pop them in our device, because there’s no mechanical or electric connection. Of course, then there was the fact that we had an app that would control these different things, in real time, I should say.

TG Branfalt: When you unveiled at this event, what was going through your head as someone who’s worked on this and saw it from an ice hockey rink to being tested by thousands of people?

Neeraj Bhardwaj: I felt like I was on pins and needles. It was so unnerving, because we had gotten our first prototypes ever, the very first ones, three days before the Cannabis Cup. We had to rework them in our hotel room, we had to buy soldering irons and rework them, in between day one and day two. We lost three units in between those two days as well. It was incredibly difficult, very stressful time, but the team made it a little bit more enjoyable. That Cannabis Cup was very intense. Very, very intense. Everything we’ve done has some interesting story attached to it.

TG Branfalt: Your first time there as a vendor, you’ve been to Cannabis Cups prior. What did you learn from other vendors that were there?

Neeraj Bhardwaj: Well, the main thing I learned was that everybody’s burning the materials. I mean, literally burning them. That’s kind of the way people do this. Especially with concentrates. I wanted to mention very briefly that our device works with everything. It works with dry herb, it works with dry tobacco, other herbs and medicines. It works with eLiquids, eJuices, all these things work with the heating discipline, which is induction technology.

TG Branfalt: You’re really candid in describing sort of the setbacks that you experienced, which not a lot of guys are open about that. Not a lot of CEOs or presidents of companies are open about that. What’s your advice for other entrepreneurs who are probably facing a lot of the same problems that you faced early on?

Neeraj Bhardwaj: The advice that I would have for entrepreneurs, first of all, you’re insane, know that. I’m an ice hockey goalie. Everyone thinks I’m crazy anyway. Besides that, I would say, and this advice is crazy, but I got it from my dad who started his own company, an old science farm in my grandparents’ garage. They’re a 30-some-year-old company now, or maybe almost 40 years old. Sorry, my bad. It’s almost 40 years old, because it started the year I was born, which is very interesting. Same thing started with my son. We started the same thing. Sorry, I digress. My advice is from my father, he said, “You can’t fail if you don’t give up.” Think about that. It’s really crazy. In every way that you think about that, on every level. That’s an insane way of thinking, but it’s true. If you don’t give up, you don’t fail. That’s what I thought. That’s what got me through the tough time.

You know, I learned a couple other things I think are good advice as well. The biggest deterrent to being great is just being good. I really love what my friend Christian Sanz at Skycatch says, and he says to his team, “Humble, nimble, reliable.” I think that really is an interesting mantra, and it really fits our company really well. We’re able to do a lot of things. We’re really nimble, but at the same time, we’re here, and we’re not going anywhere.

TG Branfalt: Have you ever heard the phrase, “Better done than perfect”?

Neeraj Bhardwaj: Yeah. Oh yeah.

TG Branfalt: Not like anyone should ever listen to my advice for entrepreneurs, but that would be my advice, is better done than perfect.

Neeraj Bhardwaj: Absolutely. That’s very apropos, because you know, it’s Silicon Valley here. We like to say that if you’re happy with your first shipment, then you shipped too late.

TG Branfalt: That’s a really interesting one. I’ve never heard that one before.

Neeraj Bhardwaj: Yeah. Well, no. I mean, at B school they taught us that for startups and NTIs, new technology introductions, you really have to be shipping your MVP almost, and MVP stands for minimum viable product. If you look at software, if you look at a lot of different companies who have learned from different … and all these things put together, there’s definitely the idea that you need to ship and iterate as fast as possible. Fast fail, that’s a really important thing. Yeah, I was just trying to give one piece of advice, but basically, I could give a lot.

TG Branfalt: I’m sure the listeners appreciate, again, your sort of honesty and your straightforwardness. So where can people find out more about the Loto Lux and how to obtain one?

Neeraj Bhardwaj: The Loto Lux is sold online at LotoLabs.com. We have limited supplies, so I would rush to get as many as I could. Honestly, because these are not going to be made in this kind of device again. We are going to be iterating, obviously, as fast as possible, but this device is … Honestly, I’m floored by the performance and by this device. I think you’ll see when you get one in your hands, how incredible this guy is.

TG Branfalt: Well, I want to thank you for coming on the show, man. Again, it’s not often that I get somebody who is as excited about what they do and your openness. I really appreciate it and can’t wait to see the Loto Lux and the response, and what you guys come out with next.

Neeraj Bhardwaj: Yeah, absolutely. My candor comes from the fact that I don’t have time for anything. I don’t have time to BS or gloss over stuff. I’ll just be straight, right at it,
this is what happened, this is what happens. There’s nothing to hide. Yeah, there’s absolutely nothing to hide.

TG Branfalt: Well, I appreciate it, my man, and thanks again for being on the show.

Neeraj Bhardwaj: Yeah, man. It was awesome. Good talking with you.

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

End


Indoor medical cannabis plants grown for personal use in California.

Michigan Gov. Appoints 7 to MMJ Advisory Panel

Michigan Gov. Rick Snyder has appointed seven members to the state’s Marihuana Advisory Panel, including representatives for law enforcement, physicians, patients, counties, and towns. Snyder is also tasked with appointing another five members to the panel representing cultivators, processors, dispensaries, and safety compliance facilities but according to the governor’s office, those appointments will wait until after the new medical cannabis licensing regime takes effect in December.

The two representatives from the law enforcement community are Roseville Police Department Chief James Berlin, who will represent local police, and Mason County Sheriff Kim Cole, who is currently serving his second term.

Dr. Saqib Nakadar, the medical director for Doc Greens Clinic and doctor of osteopathic medicine, will represent licensed physicians on the panel. Doc Greens Clinic has three locations in the state, specializing in internal medicine and medical cannabis. Paul Samways, the managing partner of Cannabis Accounting, will represent medical cannabis patients.

Suzanne Schulz, the planning director and managing director of design, development, and community engagement for the City of Grand Rapids, will represent cities and villages; attorney Catherine Kaufman, partner at the municipal law firm of Bauckham, Sparks, Thall, Seeber & Kaufman, P.C., will represent townships; and Wayne County Director of Commission Affairs Alan Helmkamp will represent counties.

The remaining members of the panel, all of which will serve three-year terms, will be appointed by the state attorney general, and the directors of the Michigan State Police, the Department of Health and Human Services, the Department of Licensing and Regulatory Affairs, and the Department of Agriculture, or their designees.

End


Cannabis samples submitted by licensed growers/producers to a testing lab in Washington state.

Hawaii Licenses 2nd Testing Lab

Hawaii’s second medical cannabis testing lab has been licensed and can begin testing products immediately, according to a KITV report. Pharmlab Hawaii is expected to test products for dispensaries on Maui; Steep Hill Hawaii, located in Oahu, was approved to test products in July and until now have been the sole testing facility in the state.

Wanda Change, Department of Health environmental health analytic services branch chief, said the approval not only gives dispensaries and producers more testing options but “could potentially” cut down on costs and wait times.

A third laboratory, Oahu-based Aeos Labs, might be ready for an on-site inspection from the Health Department by January. Aeos is operated by Clinical Labs of Hawaii. Labs are not allowed to touch any cannabis products until they are approved by the state.

Medical cannabis testing labs screen products for heavy metals, solvents, pesticides, intestinal bacteria, pathogens, microbial contaminants, and dangerous molds as well as the cannabinoid profile of the products.

Chris Whelen, head of the Health Department’s State Laboratories Division, has previously indicated that interested labs continue to “submit or resubmit validation studies for certification.”

As of Sept. 30, there are 19,190 patients registered in Hawaii’s medical cannabis program.

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The Toronto Stock Exchange in Toronto, Ontario, Canada.

Toronto Stock Exchange Could Delist Cannabis Companies with U.S. Interests

The Toronto Stock Exchange could delist, suspend, or halt trading for medical cannabis companies with investments in the U.S. because the operations are prohibited under federal law. In the Oct. 16 Notice to Issuers, regulators say while they are “aware” that some states have legalized cannabis for medical and adult use, “it is illegal under U.S. federal law to cultivate, distribute, or possess marijuana.”

“Furthermore, financial transactions involving proceeds generated by, or intended to promote, marijuana-related business activities in the U.S. may form the basis for prosecution under applicable U.S. federal money laundering legislation,” the memo states. “While the Exchange is aware of the federal guidance concerning the enforcement of these legislative provisions, the Exchange notes that such guidance does not have the force of law and can be revoked or amended at any time.”

The memo indicates that regulators will review cannabis-related stocks currently trading and break them down into two categories – those that touch the plant and ancillary businesses – before determining whether to take any action against the firm.

According to a Reuters report, about 25 companies listed on TMX Group exchanges, which includes the Toronto Stock Exchange and the Toronto Venture Exchange, cultivate, distribute and possess cannabis but Ungad Chadda, TMX head of capital formation for equity markets, declined to indicate how many of those companies have U.S. exposure.

Richard Carleton, chief executive of the Canadian Securities Exchange, a smaller exchange which competes with TMX, said the firm would welcome cannabis companies with U.S. exposure, noting that 12 of the 50 cannabis firms currently trading on the CSE have U.S. interests.

The TSE memo says it would continue to allow Canadian canna-businesses that operate within Canada and comply with Canadian laws.

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Sunlight glares off the roof of a tall, commercial building.

MassRoots Board of Directors Remove Founder as CEO, Install VP

According to a Forbes report, MassRoots’ board of directors has voted to remove founder and CEO Isaac Dietrich and install Vice President Scott Kveton in the role. The move comes after MassRoots’ August acquisition of CannaRegs for $12 million in stock, which Kveton believed was too steep a price, the report says.

Amanda Ostrowitz, CannaRegs founder and CEO, was named president of MassRoots in conjunction with the deal. Ostrowitz, who was out of the country at the time of the vote, defended the high price because the company was debt-free with revenues of $500,000 per year and she had been offered $10 million in private investment.

The report indicates that Dietrich had actually secured a majority of shareholder support to remove the board and, while Dietrich confidants claim the vote to remove the board took place, there was no 8-K filing, which would have been required if such an action occurred.

Dietrich had come under fire this past summer when it was suspected he paid for stock promotions. According to the report, last week MassRoots paid $18,000 to two stock promotors – $15,000 to Small Cap Leader and $5,000 to Stock Commander – for newsletter mentions.

According to one large shareholder, many other shareholders are now upset with the board’s decision to oust Dietrich and the shareholders could vote to remove the board and reinstate the founder.

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A metal suitcase stuffed with $100 bills.

Report: Cannabis Industry Investments Already Beyond 2016 Figures

According to Viridian Capital Advisors’ Cannabis Deal Tracker, investments in most sectors of the legal cannabis industry are up so far in 2017, with cultivation and retail investments leading the way.

According to the report, as of Sept. 29, investments in the space are so far more than double the 2016 figures, with total investments reaching $1,809,416,206 through the end of Q3 this year compared to $720,041,586 through the end of Q3 last year.

Cultivation and retail business investments are already nearly four times 2016 figures, the report says, at $718,762,031 at the end of September, compared to $190,359,138 in 2016. Agriculture technology also saw a significant increase, from $5,606,622 last year to $43,805,617 so far this year. Software and media investments more than doubled from the $23,587,864 in 2016 to $56,624,965, the report indicates. Investment gains in the consulting services sector also doubled, from $20,732,845 in 2016 to $56,211,483 this year. Infused product and extract investments were also strong at $57,155,131 this year from $27,009,208 last year. Biotech and pharmaceutical investments this year are also strong as the sector has raised $571,181,328 this year, compared to $328,037,130 in 2016.

Sectors experiencing a drop in investments so far this year include consumption devices, down more than $10 million from 2016 levels ($25,301,853) at $14,931,026; hemp, which netted more than $1.5 million last year has received just $579,162 as of Sept. 29; physical security services, which reached almost $2 million last year but sits at $446,667 so far this year; and the real estate sector investments, which are down nearly half from $12.1 million in 2016 to $6,876,272 as of Sept. 29.

Harrison Phillips, Viridian Capital Advisors vice president, told Benzinga, that the first half of 2016 saw $230.1 million in investments, while the first six months of this year saw more than $130 million total investments.

Editor’s note: This article has been updated following corrections to the Cannabis Deal Tracker made by Vidirian Capital.

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Cannabis foliage inside of a licensed grow operation in Washington state.

Arkansas Receives More than 320 MMJ Industry Applications

Regulators in Arkansas received 95 medical cannabis cultivation applications and 227 dispensary applications, according to state Department of Finance and Administration figures outlined by the Associated Press. Pulaski County, the state’s most populous, received 26 applications for dispensaries, the most in the state, while cultivators are most interested in setting up operations in Jefferson County – which was listed in 13 cultivation applications.

Garland County was listed on 22 dispensary applications, and Washington County in 17. Under the state’s voter-approved medical cannabis constitutional amendment, each of the state’s eight regions will see up to four total dispensaries and regulators will select up to five cultivators.

Last month, on the application’s deadline, regulators indicated they had received about 300 cannabis industry applications total. Cultivation applicants had to pay a refundable $15,000 application fee, and dispensary applicants a $7,500 refundable fee. The applicants will be blindly reviewed by the Arkansas Medical Marijuana Commission, who will ultimately award the industry licenses.

According to the state Health Department, more than 1,200 patients have already been approved to participate in the program when it comes online; Marisha Di Carlo, director of health communications, said the department expects to receive about 30,000 patients applications based on other state trends, including qualifying conditions and population.

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Wildfires encroach onto the backside of a California housing community.

California Cannabis Producers Offering Support for Wildfire Victims, Relief Efforts

Santa Rosa, California-based CannaCraft Inc. is temporarily donating its 12,000-square-foot office space in the city to the American Red Cross for its use as its regional headquarters to coordinate its relief efforts for the Northern California wildfires. The medical cannabis company has also partnered with dispensaries Mercy Wellness and SPARC/Peace in Medicine to donate $40,000 in medical cannabis products to patients affected by the ongoing fires.

The Red Cross has stationed at least 200 volunteers, equipment, and supplies at the office space and is providing around-the-clock relief.

“These fires have affected every member of the CannaCraft family, so we are particularly committed to helping with fire relief efforts as we are able. We are thankful that our headquarters remain intact and operational, making it possible for us to support the American Red Cross by donating much-needed space,” said CannaCraft CEO Dennis Hunter in a press release. “We will continue to evaluate our resources including vehicles, property, facilities, equipment, and product to determine how to best serve our community at this time. We will be providing more information on these efforts as they develop.”

Another cultivator, Kevin Jodrey of Wonderland Nursery, last week said he would bank other growers’ genetics who are at risk of losing crops to the wildfires at his nursery for free as the fires consume cannabis crops in the Emerald Triangle.

Mendocino Generations, a cannabis-growing collective comprised of Mendocino farmers, are also helping fellow cultivators by offering land storage space, equipment, homes, and harvest help before the fires can reach the grows.

Chiah Rodriques, co-founder of Medocino Generations and Paradigm, called this the “most financially challenging and stressful year ever” for the state’s cannabis farmers.

“We are a strong group bonded by community, history, cannabis and love,” Rodriques said in a statement. “Fundraising ideas have begun and many are gathering money and supplies for those who have lost homes or are displaced.”

The group has also set up a GoFundMe page to assist those that have lost their homes and businesses.

As of Oct. 13, more than 20 percent of Sonoma County had been evacuated. Gov. Jerry Brown has declared a state of emergency in eight of the state’s 58 counties. The Redwood Complex Fire has burned more than 30,000 acres.

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The flag of Uruguay spliced over an image of commercial-grade cannabis inside of a controlled, licensed grow site.

Uruguayan Cannabis Producer Plans to Export MMJ Oil

International Cannabis Corporation, a licensed cannabis producer in Uruguay, plans on exporting medical cannabis oil next month for sale in Canada and Mexico, according to a report from Reuters. Alejandro Antalich, the chief executive of ICC, said he hopes to eventually sell the product locally but is not permitted under the nation’s adult-use regime.

The law, which originally mandated that pharmacies sell just two types of cannabis products to Uruguayan residents, allows medical cannabis products to be exported while recreational-use products must remain in the country. In August, banks began closing the accounts of pharmacies selling cannabis and last month officials announced they would begin moving the sales to private shops that will sell the products for cash.

Antalich said he would like to sell the medical cannabis oil locally “if the Public Health Minister thinks it can be commercialized in the local market.” ACC also announced they would begin constructing a cannabis laboratory on the outskirts of Montevideo, the capital, in April. The lab will be used to produce cannabis products, including the oils. In the meantime, ICC will produce the oil from a transitory lab.

The company plans to invest $10 million in its production facilities through 2018.

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