Ben Ward: Expanding Internationally with Maricann

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ben Ward: For a little unhappiness.

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

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

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

Ben Ward: Great. Thanks. Take care.

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

End


Cannabis branding material created by StickerYou.

Make Your Cannabis Brand Stick with StickerYou

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

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

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

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

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

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

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

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

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

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

Justice Department Allegedly Blocking DEA-Backed Cannabis Research Applications

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

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

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

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

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

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

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

The Department of Justice declined to comment on the claims.

End


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

Las Vegas Dispensary Extends Delivery Service to Adult-Use Customers

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

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

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

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

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

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Autumn-colored leaves in a Vermont forest.

Vermont Brewer and Garden Supply Company Founder Apply for MMJ License

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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A commercial cannabis grow in Washington state.

U-Grow Rentals Creating Leasable Growing Facilities for California Patients

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

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

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

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

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

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

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

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

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

End


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

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

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

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

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

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

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

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

Indiana Excise Police Backtrack on CBD Confiscations

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

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

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

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

End


A commercial cannabis crop hangs from the ceiling to cure.

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

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

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

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

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

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

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

End


Maryland Cannabis News

Eight Maryland MMJ Cultivators Receive Final Approval

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

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

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

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

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

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

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A skyscraper covered in glass windows.

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

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

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

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

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

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

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

End


A micro photo of the crystallized tip of a large cannabis bud.

Israel Approves MMJ Export Plan

Israeli Finance and Health ministers have approved a plan allowing medical cannabis to be exported from the country in a move that is estimated to bring in between NIS 1 billion ($279 million) to NIS 4 billion ($1.1 billion) in revenues, the Jerusalem Post reports. Exported products will include all forms of medical cannabis produced in Israel and so far more than 500 farmers have applied for an export license.

Finance Minister Moshe Kahlon said the plan represents “significant economic potential” for the country “and will strengthen Israeli agriculture in general and agriculture in the Arava region in particular.”

“It will serve as an opportunity for the country to exploit its relative advantage in developing medical products from medical cannabis,” he said in the report.

Health Minister Ya’acov Litzman, who opposes the exportation plan, said he agreed to the request due to “international interest in Israeli medical cannabis” adding that officials “will ensure” that the health sector benefits from the state revenue increases.

The system includes several restrictions – the exports will be closely monitored by the state; exports will only be allowed to nations that have medical cannabis regimes that explicitly allow imports from Israel, and farmers must obtain a license from the Health Ministry to cultivate and export medical cannabis products.

Currently, there are eight licensed growers in Israel who produce about 10 tons per year.

End


A medical cannabis patient's homegrown supply of cannabis plants.

Arkansas Medical Board Chairman Steps Down from MMJ Trade Association Board

The chairman of the Arkansas Medical Board, Dr. Steven Cathey, is no longer on the board of the Arkansas Medical Marijuana Association, citing potential conflicts of interest, according to a Talk Business & Politics report.

“Where things changed for me was after I started reviewing my role as the state (Medical Board) chairman, I was fearful there would be a conflict of interest and in my opinion even a perception of conflict of interest would be inappropriate – so I declined to participate,” Cathey said in the report. “That was pretty much the bottom line.”

The neurosurgeon said that he does believe that Arkansas’ cannabis industry “needs a clinician’s voice and input” as physicians are “heavily involved” in the medical cannabis acquisition process.

“I think doctors need to be at the table when we consider medical and regulatory issues surrounding this new industry,” he said.

The shakeup comes less than a week after the creation of the AMMA, which is chaired by Little Rock attorney David Couch, who led the ballot initiative effort to legalize medical cannabis in the state.

After Cathey’s participation with the association had been announced, Gov. Asa Hutchinson said in a Talk Business & Politics interview, that he didn’t think “someone on the Medical Board should be associated with a medical marijuana advocacy group.”

The board is comprised with some former government officials, including former Arkansas Attorney General Dustin McDaniel, and Dr. Richard Douglas, former assistant deputy secretary of the U.S. Department of Agriculture under President Ronald Reagan.

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Hawaii's official state flag flying off the back end of a sailboat.

Hawaii Dispensary Moves to Appointment Only Amidst Product Shortage

Hawaii’s first licensed dispensary must close for two days and change their operating hours after the company’s products didn’t clear state testing certification by Saturday. Maui Grown Therapies opened for the first time last week after the Department of Health granted a license to Steep Hill Hawaii to test medical cannabis products.

“Due to high demand, the company sold out its first batch of certified flowers on Saturday. To prevent patients from fruitless trips to its dispensary, the company will close on Monday and Tuesday, August 14 & 15, and reopen on Wednesday, August 16 at noon,” the company said in a statement. “Due to uncertain product availability, the company will extend its sales by appointment policy until further notice.”

Christopher Cole, director of product management for Maui Grown, said that despite the testing laboratory approval, the company is currently only able to sell flower due to “restrictions placed on the only licensed lab.”

“It’s unfortunate that an administrative hindrance of this magnitude prevents patients from getting the help they need,” Cole said in the release. “We had planned to open with a full range of derivative products such as concentrates, oils, capsules and topical products, but at the eleventh hour we discovered that the State Labs Division had failed to certify a lab to conduct testing of manufactured products.”

Dr. Gregory Park, an oncologist and co-founder of Maui Grown, said it was “ironic” that the “vehemently anti-smoking” Health Department is “forcing cannabis patients to smoke to get relief.”

Neither Cole nor Park could ascertain when the ‘administrative hindrance’ would be resolved.

End


Danny Sloat: Self-Healing Through Clean Cannabis Cultivation

Danny Sloat is the owner of Alpinstash, a Colorado cannabis cultivator known for producing premium-quality cannabis with an emphasis on environmentally friendly growing practices.

In this Ganjapreneur.com podcast episode, Danny joins our host TG Branfalt to talk about his company’s emphasis on an eco-friendly production process, the therapeutic value of growing your own cannabis plants, exciting research and cannabis cloning techniques that are being pioneered in Colorado, how the state’s cannabis marketplace has evolved over the years since legalization took effect, and more!

Listen to the podcast through the media player below, or keep scrolling down to read a full transcript of the interview.


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey there. I’m your host, TG Branfalt, and you’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 really excited. Our guest is Danny Sloat. He’s the owner of Alpinstash. How you doing today?

Danny Sloat: I’m doing real good, Tim, how you doing?

TG Branfalt: I’m great. Like I said, I’m real excited to have you on the show. You have a really, really interesting story. A real motivational story and we want to get into that first. Why don’t you tell us about your background, a little bit about your personal story and how that brought into the cannabis space?

Danny Sloat: Yeah, definitely. Shortly after I turned 21 I had some pretty bad abdominal pain. Went to the hospital, had a stay, tests, all that good stuff. They couldn’t find out what was wrong so I was just put on a regiment of opiates. Then over the years as I still continued testing and tried to figure out what was going on, bouncing from doctor to doctor, the opiates kind of increased and before I knew it, I was taking medication to treat the side effects of the opiates and medication to treat that side effects, so on and so forth. Somewhere in there on about 2005, I developed a nerve impingement syndrome called thoracic outlet syndrome. I was dealing with that, I was dealing with loss of nerves to my arm and, again, more opiates tossed on top of that.

Then in 2009 I was diagnosed with an acoustic neuroma, which is a non-cancerous base of skull tumor. That required surgery. From the age of 21 through about 29, I was in a medical funk in which I was prescribed high doses of opiates. I’m sure, I assume your listeners are familiar with Fetanyl. It was the new scary opiate, but I was prescribed both patches and lollipops. In my point of view, I was blindsided. I have very much faith in the medical world and just kind of did what my doctors had told me to do. Before I knew it, I was in a really bad state physically after years of opiate use and other medications. Nothing was helping and I was just getting worse.

Then I decided as a last ditch effort at the time to try medical cannabis back in 2009. Almost instantly I found relief from the pain, which allowed me to taper myself off of these opiates that I had been on for seven, eight years at that point. Within six months I was off all the medication. I was on, I think, 19 different prescriptions at the peak. Had dropped about 80 pounds, back down to a healthy weight. Reengaged with life. Doing physical activities again. I contribute both the use of cannabis, but almost more important or even more important the growing of cannabis with reengaging me back into life. Then I recognized the value that cannabis had and decided to make that my focus and here I am today.

TG Branfalt: You’re not one of those people who used cannabis recreationally as a youth and then … That’s what I did. I used cannabis as a youth and then as I grew up and the aches and pains started catching up with me, and my own medical problems, and had my own battle with addiction, I started using cannabis as a medicinal way. That wasn’t the path that you had taken.

Danny Sloat: I’m from Boulder, Colorado, so I definitely had my use of cannabis when I was younger in high school and things like that, but between high school and the age of 29, I really didn’t partake very much at all. I found myself just not enjoying it. When I actually started it for medical use I was pretty hesitant because I had some bad experiences over the past few years. I had gotten my card in September and I don’t think I tried it until December when I finally gave it a shot. Yeah.

TG Branfalt: You started with one plant?

Danny Sloat: Yeah. It’s funny, actually back then there weren’t too many dispensaries that were obvious. The first one I went to had a big neon sign and they gave away free clones with purchase. I had enjoyed doing a lot of gardening, specifically container gardening, as a hobby up until that point so I just started growing that plant. Then when I found the benefits of it, I decided to go all in and made a lot of mistakes. A huge learning curve in the beginning there.

TG Branfalt: Tell me about that. Tell me about the experience of going from one plant to now you’re a registered grower, you’re growing a lot of different products. Tell me about going from that one plant to the registered grower. Tell me about what you learned and the obstacles that you faced.

Danny Sloat: Yeah. It’s funny, as somebody that does this as a hobby and then jumping into the commercial realm, there is, and I knew there would be, a huge learning curve. I took some steps to prepare myself. I spent some time going to school for horticulture and spent some time in the hydroponic industry, all while working to make this facility a reality. There’s been some major learning curves. You really have to be on your game when you go from a home grow to a commercial grow. You have to take into account a lot of … It’s much harder to control a bigger space, there’s a lot more at stake and that’s actually been the hardest thing is when you do it for fun and you have a dream of doing it professionally there’s a romanticized version of that. When you get in it, all of a sudden now, everything matters. The plant health, even though it was fine at home, now all of a sudden you care a lot more about it because your financial future and the goal you’ve been working towards for five years is on the line.

TG Branfalt: Well, and the Colorado market, the prices in that market have fluctuated a whole lot since the roll out of the market until now. How have you been weathering that storm?

Danny Sloat: Yes. From the time we started this facility to now, the prices have dropped. In some cases even 50%, while the taxes still remain high. However, it’s been easy for me to weather the storm. The product that we grow is the top of the top shelf. There aren’t very many people that can offer the same quality product we can, so there’ll always be a market for that. The thing that we’ve dealt with though is maintaining until a point where our brand is established and we can start demanding the price that our product deserves. I guess, for us to weather the storm it was more of a long term approach. I’m not trying to get rich, I’m not trying to make money in the short term, I’m just trying to do what I love and stay around. That strategy has worked very well and now we’re seeing the emergence, even more so, of the connoisseur market. You combine that with pesticide scares and pathogen issues. We are actually in a great position.

TG Branfalt: Tell me a bit about your strains and how you came to decide that these were the ones that you were going to cultivate. These were the ones that you were going to offer.

Danny Sloat: Yeah. The way that Colorado works is there’s a system called Metrc, it’s their seed to sale tracking system. In a lot of places and at the beginning before Metrc is in place, you could bring in strains, cuts and seeds from outside sources. If you had them at home or whatever you could do that. Now and when we started that, you can’t do that. You have to get all your genetics from an already existing facility on Metrc. Given how dangerous that can be from a plant health standpoint of pulling material from unknown and untrusted sources, I was really limited to the strains that I had from the initial purchase I made that we had quarantined and gotten healthy. We picked the best there and started breeding them. Since then, we’ve taken in a few more cuts from other facilities, but it’s really, really, really been limited. My passion is in genetics and breeding, so I use that as an excuse, but as a way to focus on making my own stuff so that I don’t put my garden at risk from unclean facilities.

TG Branfalt: You offer four CBD rich strains. This is starting to become a little bit more popular out here in Vermont. We have looser laws than probably not Colorado, but a lot of the rest of the country and it’s readily available. Are you, over there in Colorado, experiencing an uptake in the demand for CBD rich strains?

Danny Sloat: Just a little bit. Those CBD rich strains are something I’m really passionate about and I really believe in their value and in their quality too. I tell people when they’re trying to drink a beer or get buzzed, they don’t go to Everclear. They want a product that delivers flavor and good feeling and all that stuff. The CBD strains is what I think is a great product. A lot of people though are really hesitant to spend their money on something that they haven’t tried, or they don’t think it gets them high, or whatever reason they have, so the popularity of the CBDs as a flower has been increasing, but very slowly.

TG Branfalt: You said that you were passionate about the CBD strains. What drives that passion for you?

Danny Sloat: First of all, they’re really fun to grow. The products are great, very flavorful, good looking. They obviously have a huge medicinal benefit, which I appreciate. The other nice thing about them that I don’t feel like gets talked about lot is that because often they have a lower THC content and because the CBD helped balance out the negative side effects that can arise with THC, they’re really great smokes for almost anybody. More often than not, when I talk to people, especially people that are my parents’ age, they talk about smoking and getting paranoid.

‘Oh, I used to love smoking, but now when I do it, I get paranoid. I take one hit of today’s stuff and I just can’t hang.’ They’re able to try one of these CBD products and they get exactly what they’re looking for from a relaxation and getting stoned perspective, but as well as the medicinal benefits that change a lot of people’s minds. Again, I go back to that Everclear analogy. I feel like that side of the industry is hurting it and is hurting the image of it for a lot of people across the country moreso than it’s enhancing it.

TG Branfalt: I want to touch on a bit more about why you think CBD rich strains are a little more fun to grow and a little more about your grows, but before we do that, we’ve got to take a short break. This is the Ganjapreneur.com podcast, I’m TG Branfalt.


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TG Branfalt: Hey, welcome back to the Ganjapreneur.com Podcast. I’m your host TG Branfalt here with Danny Sloat, owner of Alpinstash. Before the break, you had said that CBD strains were fun to grow. I’m not a grower. I have conversations with them and I’ve never really heard that so could you elaborate on why they’re fun to grow in your opinion?

Danny Sloat: Definitely. I’ll start by saying any strain that does really well, looks good and smells good is fun to grow. What I enjoy about the CBD strains, some of the ones we have, they look dank as it gets. Frosty, they smell great and they’re with great structure. Then you do a test and you come to find out that there’s almost no THC in there and it’s almost all CBD. We’re talking .5% or less of THC and 24% of CBD. I just love seeing the reaction of people that come across that. In their mind, CBDs are ditch weed or hemp. It doesn’t look like something you’d want to smoke. When you grow them, they’re quite the opposite. Some of them turn great colors, they have great structure and they yield really well. It’s always fun to grow something that turns out unexpectedly awesome and a lot of these strains do.

TG Branfalt: I was at an event here in Vermont and they had jars of CBD flower. I opened the jar and I was really shocked with the overwhelming smell of citrus.

Danny Sloat: Yeah.

TG Branfalt: Is that something very common with these strains?

Danny Sloat: Yeah. I definitely find that. They definitely have a citrusy smell. Some of them have a little bit of almost like a cough syrup citrus, too, for whatever reason. I can guess, but it would be just purely a guess. It must be a shared lineage somewhere, but the majority of CBD strains that I come across do have that smell. Not all of them do, but a lot of them do.

TG Branfalt: Tell me about your approach to growing. It’s described as environmentally responsible, eco-conscious. Tell me about that approach and how you are incorporating these techniques.

Danny Sloat: Sure. The laws in Colorado, when I started, were such that an outdoor grow was very hard to do, so we do indoors. We use Nectar for the Gods, which is a sustainably sourced, natural nutrient system that is handcrafted in Eugene, Oregon. They have the second largest rain water reclamation facility in the state, so all the water used for the making of the nutrients is rain water. Most of the nutrients come from the byproduct of organic and sustainable farms, such as bone meal or the byproduct of the fishing industry. Crab meal and shrimp meal and things like that. We start with the nutrients being environmentally sustainable and well sourced. We also use low wattage lighting techniques or lightings. I’m able to achieve what is kind of considered an industry standard for 1,000 watt light, I’m able to pull that yield off with 315 watts. Less power going in, less energy required to cool that.

We also use a type of an a/c system that is a water cooled a/c system, which is up to 30% more efficient. We recycle our soil and we reuse our pots. Because we’re using organics, we don’t have to flush and collect a bunch of water that’s been wasted. One of the biggest impacts that the growing industry has is when you have salt-based fertilizers that can cause a build up and a toxicity, you have to continually flush those out of your grow media and then you have that salt nutrient rich water that you’re pouring down the drain. That gets into the ground water, that gets into the soil. They’re having big problems with that back east.

Then another thing is the use of synthetic nutrients. Most of those synthetic salts are strip mined out of the earth in a very negative way. Sometimes they come from all over the globe. I’ll give you an example. Phosphorous, which is a main nutrient used in flowering, is strip mined out of Morocco. There’s a finite supply of phosphorous in the first place. It comes out of the ground radioactive. Morocco can’t have radioactive material so they actually send it to the U.S., where we clean it of radioactivity, send it back to Morocco where they then bag it up and then send it back to America, where we then use it. That whole process is very bad for the environment in and of itself.

TG Branfalt: You obviously did a lot of research on the environmental impacts of these things. How important was it for you to have an environmentally responsible facility and practice?

Danny Sloat: To me, that’s very environmental. Sorry. I’ll redo that one. To me, that’s very important. The place that I grew up in the country is just by nature most people are pretty eco-conscious. As time goes on and factory farming becomes more prolific, you just see the problems associated with it. I felt like our industry does create waste and does create a carbon footprint, but it doesn’t have to be anywhere near what the industry standard is. There’s a lot of good growing practices, techniques and, these days, equipment that you can use to really be as environmentally sound as you can be and still have a successful business.

TG Branfalt: You’ve mentioned a couple of times how the industry has changed in Colorado since you’ve been a part of it. Now there’s even more new rules in Colorado, such as reducing the number of plants allowed for home grows. How have these new rules impacted the industry and what was the reaction by your colleagues to these changes?

Danny Sloat: Well, I kind of go against the grain of the industry, as I see it, in a lot of ways. I, and my company, was totally for patient and caregiver rights. I don’t believe in a plant count. I don’t believe that home grows or caregivers take anything away from my business in any way. Actually, I encourage anybody to grow a plant. Not only is it therapeutic, and it’s fun to do, and you can get as clean a product as you want it to be, but you also see the effort that goes in. One of the battles we face is we have giant corporations that are growing the equivalent of factory farming cannabis and here we are, everything we do is done by hand, there’s two other people besides myself that touch the plants. We take all of the steps to deliver the finest quality product, but they’re all done by hand.

Really, for people to appreciate that, one of the things they can do is grow it. I don’t see that as an issue at all. The industry, there was a lot of lobbyists from some of the corporations that were there pushing these plant count caps. They see it as a threat to their business. I I look at it from their side, I can see where they’re coming from in a way that they’re scared that their business is at risk, because the products they deliver are achievable by almost anybody. That’s kind of the situation we’re in, but it doesn’t bother me at all.

TG Branfalt: You go against the grain on that issue. What’s your take on the social use proposals in Denver?

Danny Sloat: I’m 100% for that. I would love to see that be available. First of all, because there’s no reason it shouldn’t be. Second of all, because of how available other substances like alcohol are and accepted socially. Another really important aspect is, we have tourists coming in from out of town. They can’t smoke in their hotel, they can’t smoke in their car, they can’t smoke out in public, but they’re here to enjoy Colorado. They’re here to enjoy cannabis. Where are they going? What are they doing? There should be a good option for that. It just makes sense. I can’t see why anybody’s opposed to it except for fear tactics.

TG Branfalt: I want to talk to you a bit about your partnership with Front Range. We’ll get into what that is, but before we do that, we’ve got to take a short break. This is the Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt, here with Danny Sloat, owner of Alpinstash. Before the break I had mentioned about your partnership with Front Range. Tell me what Front Range is, tell me about this partnership. I think it’s super cool, but I’ll let you explain it.

Danny Sloat: Sure. Front Range Biosciences is a startup bioscience tech firm. They have a few things that they’re trying to bring to the market. The first is a type of cloning known as plant tissue culture. That’s different than traditional cloning in that you take a very small piece of plant material, you essentially grow it in a Petri dish and before you put in that Petri dish you clean it and you sterilize it so that there’s no problems on the surface. One of the interesting things though is when you put plant tissue into culture, if there are any diseases within the plant, within the vascular system, those will come out in culture.

What they’re finding is that a lot of material that they bring in from other places has bacteria and fungus within the plant tissue. It still remains to be seen, there’s not a lot of research to say whether or not these are beneficial bacteria or fungus. Some of them certainly are not, but what they’re able to do is clean that out of the plant system. What you get back with plant tissue culture is a clean, healthy clone that’s been essentially sterilized and reinvigorated. That’s a great technique there, which by the way, is used in much of commercial agriculture production for many other crops.

The other thing that they’re looking at doing is some genetic and sequencing work down the future. Looking at the cannabis genome, identifying genetic traits that are responsible for certain aspects of the plant of the finished product and then being able to breed based on those genetic traits. You’re able to bring a plant to fruition much sooner and have it be much more stable. Then eventually a goal for them is to be able to do plant tissue culture, but combine that with cryo-preservation. You’d be able to take a sample of a plant tissue, put that on liquid nitrogen and essentially keep genetic material from which to clone from indefinitely in a clean state. The idea is that you could have a small freezer filled with every strain that you ever come in contact with and be able to pull those out, grow them and then put them back into storage as you need.

TG Branfalt: It’s futuristic. Cryogenics and these are things that you never think about entering the space. Why did you decide to enter into this partnership with them?

Danny Sloat: They approached us. They pitched that to me. I love science. I love seeing where the future is going. I love these new techniques. It was an exciting opportunity, not only to be able to have access to that, but just to watch it happen and be not so removed from it. How could I say no?

TG Branfalt: I see a lot and hear a lot when people bring up biosciences. People automatically think this is big pharma, these are people that are going to come in and take over the cottage industry. These partnerships are really important, especially for research, which is obviously very little of and hard to do. What do you think is the importance of these types of partnerships?

Danny Sloat: Well, I think the research is a huge key for many reasons. Anywhere from proper pest control and management, to sustainable and better growing practices, to disease diagnosis. All these things that are common place in every other crop, a tomato. There has been millions and millions of dollars in research done on tomatoes. That needs to happen in the cannabis space. Certainly, some people will use that, go towards the more GMO, Monsanto side of things. Unfortunately, I think that’s inevitable. Given the way industry runs and the way agriculture runs, some people will go that direction. From my standpoint of being just a small grow that’s trying to produce a high quality product, having access to some of these techniques can help me in the areas I’m lacking. I don’t have a huge facility in which to keep a ton of genetics. Instead, what I’m able to do is keep clones in a smaller state and keep a wider selection, so that can help me get to where I’m going.

TG Branfalt: I can tell that you’re super passionate about this and the path that you took to having your own facility and entering these partnerships that will help us understand the cannabis plant a little bit more, it’s really incredible. What advice do you have for other entrepreneurs looking to enter this space?

Danny Sloat: That’s a really good question. First off, I would say, think of what scale you want to be at and be realistic with that. I use the craft beer industry as an example of this. Here in Colorado there’s a ton of craft breweries. We also have Coors. If you want to exist as a craft brewery … Or if you want to make beer in Colorado, you can either go one of two ways. You can either be a small batch, hand crafted brewery that charges more per can than a 6 or a 12-pack of Coors. You survive because you’re great at what you do. Or if you have a billion dollars, you can be Coors. Most people don’t have that much money and even if they did, that doesn’t guarantee success. Really identify what you want to do. For people that haven’t ventured into the cannabis space, do a ton of research and know exactly what you’re getting into.

So many people come in here with a wad of money thinking I put a million in today, I’m going to get two million out next year. The realities are quite different. This is an industry that is cut throat. It’s an industry that is, in some cases, saturated. It’s an industry that has a ton of regulation and takes a ton of hard work and knowledge. Really, really spend your time researching. Spend your time vetting investments. Spend your time vetting people that will work for you. What I’ve found is the people that you employ matter so much. I’m very fortunate. My fiancee works for me and we’ve got two really close friends that work for me and that’s it. It’s a team that I trust and they’re willing to put up with the growing pains. They’re willing to give maximum effort because this is a team approach. If we all do well together, as a business, everybody succeeds. That’s really important. At the end of the day, there’s a lot of regulation, there’s a lot of hard work. You need the right people for the job and those people are hard to find in the cannabis industry.

TG Branfalt: Well, I want to thank you for taking the time for this interview. It’s really, again, your story is really motivational. I wish you guys the best of luck and hope to see what comes of your research with Front Range. Thank you, again, for appearing on the show.

Danny Sloat: Yeah. Thank you. It’s been a pleasure. I really appreciate you letting me have a chance to talk about something I’m very passionate about.

TG Branfalt: Where can people find more about you?

Danny Sloat: Our website www.alpinstash.com. I have YouTube channel, Alpinstash. I give growing tips. I believe in complete transparency, so I share everything that I know. We’re on Instagram, @alpinstashco. We’re on Twitter, @alpinstash. Yeah. If anybody has any questions, they can watch my YouTube videos, they can email me, Dan@alpinstash.com. Yeah. You can find me there.

TG Branfalt: Well, Dan, thanks again for being on the Ganjapreneur.com podcast.

Danny Sloat: Yeah. Thank you so much.

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

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Inside of a legal, licensed cannabis cultivation site.

Rohrabacher-Farr Amendment Blocks Federal Prosecution of California MMJ Producers

A U.S. District Court has blocked federal prosecution of two Humboldt County, California growers charged with conspiracy to manufacture and possess cannabis with intent to distribute, concluding the defendants were in compliance with the state’s medical cannabis laws, LA Weekly reports. Anthony Pisarski and Sonny Moore had previously pleaded guilty to the federal charges.

District Court Judge Richard Seeborg stayed the prosecution due to the Rohrabacher-Farr amendment included in the federal budget; however, he said the case could be reopened if the amendment is not included in the passage of this year’s federal budget currently being drafted by lawmakers.

Ronald Richards, the attorney for the duo, indicated the decision was the first time in his 23-year career that he has “had a case stopped because of an appropriations rider.”

“What the court did in this case may be used as a blueprint for other cases,” he said in the report. “It opens the door for people not to get scared.”

Seeborg cited the 2016 U.S. Ninth Circuit Court of Appeals United States v. McIntosh case which affirmed a medical cannabis defense for state-approved operators facing federal charges.

“[The defendants’] conduct strictly complied with all relevant conditions imposed by California law on the use, distribution, possession and cultivation of medical marijuana,” Seeborg ruled.

Dale Gieringer, director of California NORML said it was the first case he was aware of that cited McIntosh to its full effect.

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New York Health Department Expands Allowed MMJ Products, Still No Flower

Medical cannabis patients in New York could soon have access to a wider variety of products, including topicals, chewable tablets and lozenges, under regulations proposed by the state Department of Health. However, smokeable products are still banned.

Additionally, the new rules would permit non-patients to enter a facility in order to get information on the program, so long as they are accompanied by a registered patient, and allow medical practitioners to take a shortened two-hour program training course.

“This is yet another positive step forward for New York State’s Medical Marijuana Program,” said New York State Department of Health Commissioner Dr. Howard Zucker in a statement. “These regulations will continue to improve the program in several ways, including making new forms of medical marijuana available and improving the dispensing facility experience.”

In late March the state added chronic pain to its qualifying condition list and, since then, patient counts have grown 77 percent. As of Aug. 9 there are 26,561 enrolled patients and 1,155 registered practitioners.

Last week, the department licensed five new companies to cultivate and dispense medical cannabis in the state. The new producers include Fiorello Pharmaceuticals, Citiva, Terradiol, PalliaTech NY, and Valley Agriceuticals.

The state now has 10 total licensed producers who are allowed to open up to 4 dispensaries each.

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Bruce V. Rauner, governor-elect of Illinois, waves to the audience during his introduction at his inauguration ceremony in Springfield, Ill., Jan. 12, 2015. As Illinois' governor, Rauner will serve as the commander in chief for the Soldiers and Airmen of the Illinois National Guard while they are not under federal activation. (U.S. Air National Guard photo by Staff Sgt. Lealan Buehrer/Released)

Illinois Gov. Allegedly Traded MMJ Program Expansion for Dissolving Cannabis Advisory Board

Last spring Illinois’ Medical Cannabis Advisory Board was disbanded and it appears the move was part of a deal between board members and Gov. Bruce Rauner to extend the program three years and add post-traumatic stress disorder and terminal illness to the qualifying condition list, Chicago magazine reports.

Michael Fine, a former member of the now-defunct board, said the members were “sold out” and “the trade-off” for the program’s expansion, “but a good trade-off.”

“We raised no stink because the program was much more important than our positions on the board,” he said in the report.

In June 2016, Joseph Wright, the then-head of the Board, resigned just one month after the legislature passed the law to extend the program. At that time, Wright indicated he had stepped down to pursue other opportunities; however now other former members are opening up about the details surrounding the shuttering of the board.

Last March, the state Department of Public Health rejected petitions to add intractable pain and autism to the qualifying condition list, and state Rep. Lou Lang, who championed the state’s medical cannabis program, accuses the governor of “directing the Department of Health to reject [those] conditions,” claiming that Health Director Nirav Shah told him that the only way new conditions would be added to the list is through the legislature.

According to the report, Rauner’s office declined to comment on the claims but Laurel Patrick, a spokesperson for the administration, confirmed that “the board no longer exists.”

In June, the legislature passed Senate Bill 10, which included language to recreate a medical cannabis advisory board, but former board member Leslie Mendoza Temple indicated she applied for a position on the new board but never heard back. Patrick did not comment on whether the new board, authorized by SB.10, will be convened.

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Inside of a licensed cannabis grow site near Bellingham, Washington.

National Hispanic Caucus of State Legislators Call for Cannabis Reforms

Calling prohibition “unconstitutional,” the National Hispanic Caucus of State Legislators has penned a resolution demanding the federal decriminalization of cannabis and expunging of criminal records for “behavior that is legalized” in some states.

The resolution tracks the history of prohibition, beginning with the 1937 testimony to Congress of the first U.S. Treasury Department Federal Bureau of Narcotics Commissioner Harry Jacob Anslinger. In that testimony, Anslinger testified that “Spanish-speaking persons” were “low mentally” partly due to their cannabis use and that Mexicans sold “loco weed” to “mostly white high school students.”

Anslinger’s testimony led directly to the prohibition of cannabis in the U.S.

The caucus points out that the DEA spends $10 billion annually to fund anti-cannabis enforcement laws; while Colorado raised $76 million in tax revenue in 2014 and the overall crime rate in the state has dropped 10.1 percent since cannabis legalization in the state in 2012.

“… Decriminalization of recreational marijuana will ease the burden off the criminal justice system and law enforcement agencies, allowing police officers, judges, and prosecutors to focus on violent offenses and other criminal activity more deserving of priority, and freeing-up space in prisons and decreasing the budgetary impact from keeping marijuana users incarcerated,” the resolution says. “Whereas, regulated marijuana retailing greatly hinders black-market drug dealers, prevents marijuana’s (unproven but widely alleged) use as a gateway drug, and directs much-needed revenue to legal business owners, states and local governments instead of organized crime.”

The resolution is the second this week by state policymakers seeking to reform U.S. cannabis laws; on Tuesday the National Conference of State Legislatures passed their own resolution calling for removing cannabis from the Controlled Substances Act.

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A nighttime photo of the Miami city skyline.

Florida Medical Cannabis: Coming to a City Near You, But When?

The Florida medical cannabis industry is growing by the day. As a result of Senate Bill 8-A, Medical Marijuana Treatment Centers, or MMTC’s, are subject to additional regulations compared to their Low-THC predecessors. In the state’s formative medical cannabis program, MMTC’s were referred to as Dispensing Organizations and were only permitted to dispense a very Low-THC product, except to terminally ill patients who could receive full-strength THC products.

Here are some key questions that people are asking when it comes to Florida’s medical cannabis program and its implementation timeline:


What’s currently happening in the legislature?
The implementation legislation for Amendment 2, titled SB 8-A, has been signed by Governor Scott. The Florida Office of Medical Marijuana Use is tasked with creating the program around these laws and is also responsible for crafting final rules and regulations, as well as awarding business licenses.

What are we waiting on? What’s next?
The Florida Office of MMJ Use will release its final rules and timeline for the MMTC application process very soon. Businesses are already in the process of submitting license applications to the state, with several having already received local permits and authorizations. An applicant will need to present a designated location and be able to prove that the property is permitted by the municipality for the use that it is intended. In order to receive a license from the state, you’ll first need to prove full compliance within your local municipality in which you choose to operate. The Florida Department of Health has until October 3, 2017 to issue patient ID cards under the conditions listed in the Amendment.

Does my community allow MMTC’s?
Cities and Counties across Florida are in the process of developing their own ordinances regarding medical cannabis production, processing, and distribution. Under current law, local municipalities must regulate MMTC’s in the same manner that they regulate pharmacies and are also allowed to create their own sets of rules governing how they must operate. That includes the option to impose a moratorium, or outright ban. Municipalities are taking varied approaches, with some already permitting dispensaries from the Low-THC program to open in cities like Tallahassee, Tampa, Orlando, Miami, Jacksonville and more coming.

If I want to start a licensed MMTC, where do I start?
There are several prerequisites for seeking an MMTC license. Securing property, compiling a team that has experience in cultivating, processing, and selling cannabis in a regulated market, background checks for all applicants and their employees, among several others. Applications for an MMTC license can be found here. An organization seeking an MMTC will first need to apply for and receive a state license. Prior to applying for a state license, you’ll first need to ensure you have local permits and zoning approval to operate each component of the business; produce, process, dispense/sell. The requirements for local approval will vary slightly from municipality to municipality, so you’ll need to get familiar with your local requirements if you want to be seriously considered for state licensure.

What’s the tax rate in FL?
Medical marijuana is not taxed in Florida!

Are there purchase limits?
Yes. Patients can purchase up to three, 70-day supply limits prior to needing a renewed recommendation. The purchasing limits in Florida are based on the patient’s recommendation from their doctor. A patient can receive a recommendation for up to 3, 70-day supplies. This is tracked in real-time in the state’s compassionate use registry. So, if a patient were to make multiple purchases in a given day, each individual purchase would count against their 70-day supply and that would be reflected and tracked from location-to-location in the state database.

What is one, single day supply?
The law is written in terms of what a patient is legally allowed to possess and the total amount that can be prescribed for a 70-day period. A patient can be issued a recommendation and purchase that amount either in a dispensary or via delivery. So, if a physician recommends that a patient consume 100 mg, 5 times per day, then the single day supply for that patient is 500 mg, or half of one gram. 500 mg/day x 70 days = 35,000 mg able to be purchased before you require another recommendation to increase your supply. This system is intended as a safeguard to prevent overselling to patients who can then divert product into the black market.

What kinds of products will be available for consumption?
The plant material of cannabis will not be permitted for sale or use; however, you’ll be able to purchase oils for vaping and products such as edibles, which will all follow strict potency guidelines. Florida will not permit the cannabis flower in a smokeable format.

Can I grow my own flower?
No. Home grows are not permitted under Florida law.

Is adult use being discussed at all?
There is an effort by Regulate Florida to have an adult-use initiative on the November, 2018 ballot.

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A cannabis worker scoops up two handfuls of trimmed cannabis product.

Uruguay Registered Cannabis Buyers Exceed 11,500

The number of registered recreational cannabis purchasers in Uruguay has topped 11,500 and four more pharmacies have begun the application process to sell the two adult-use cannabis varieties known as Alfa I and Beta I, according to the Instituto de Regulación y Control de Cannabis, the regulatory agency overseeing Uruguay’s legal cannabis market.

“The number of registered users as purchasers to access the psychoactive cannabis of non-medical use in pharmacies doubled, amounting today to 11,508 qualified,” the IRCCA wrote in a statement. “New requests for adhesion of pharmacies to the system are being processed, so that the number of access points in different parts of the country will increase progressively.”

According to a press release from International Cannabis Corp., at least 10 other pharmacies are interested in selling cannabis. ICC has so far distributed more than 141 pounds to participating pharmacies, which translates to 12,800 5 gram packages of the Alfa and Beta products. Buyers 18-and-older registered with the state can purchase up to 40 grams per month.

ICC is one of two licensed producers in the state, along with Symbiosis.

Alejandro Antalich, ICC CEO, said the company is “very pleased” at the market’s growth thus far, which has required the company to increase its cannabis production space by 21,500 square feet.

“ICC has quickly transitioned from being a development stage company, to becoming a fully licensed and approved recreational and medical cannabis producer in Uruguay,” he said in a statement.

The company expects to produce more than 11,000 pounds over 12 months.

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North Dakota Health Officials Accepting Applications for MMJ Testing Labs

The North Dakota Health Department is seeking non-binding letters of intent from laboratories interested in testing medical cannabis products once the voter-approved system comes online, the Associated Press reports. Health officials anticipate qualified patients will have access to medical cannabis products by late spring or early summer 2018.

The state’s law allows two “compassion centers” to grow and produce medical cannabis products and eight others to dispense it. Earlier this year nearly 100 companies applied to the Health Department to produce or dispense medical cannabis products. The law requires that all products be tested for molds, pesticides, and THC levels before being sold to patients.

“We issued the letter of intent (requests) to spur some interest and meet a critical need to keep the medical marijuana program in North Dakota heading in the right direction,” said Kenan Bullinger, director of the Health Department’s medical marijuana division, in the report.

The Department has estimated that they will need at least $2.7 million over the next two years to implement the program. The laboratory application period closes on Aug. 25.

Advocates in North Dakota are also circulating petitions to legalize adult-use cannabis use in the state. If approved, the measure would expunge the criminal records of low-level, non-violent cannabis offenders in addition to creating a taxed-and-regulated adult-use market.

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MMJ Trade Association Launched in Arkansas

The Arkansas medical cannabis community now has a trade association, as a coalition of businesses and individuals have formed the Arkansas Medical Marijuana Association, which has tabbed Little Rock attorney David Couch as its executive director. Couch led the efforts to put the medical cannabis issue to voters, which was approved last November.

The association also counts former state Attorney General Dustin McDaniel among its board of directors members. McDaniel, who is now in private practice, was the attorney general when the initiative was approved by the office.

Other board members include Dr. Steven Cathey, a neurosurgeon and chairman of the state Medical Board; Dr. Richard Douglas, who served as the former assistant deputy secretary of the U.S. Department of Agriculture under the Reagan Administration and as a member of President George H.W. Bush’s Export Advisory Council; Kris Kane, president of 4Front Ventures, a holding company which includes medical cannabis dispensaries, who also serves on the boards of the National Cannabis Industry Association, Students for Sensible Drug Policy, Common Sense for Drug Policy, and Marijuana Majority; Don Roda, general counsel and development head at Rock Capital Group; and owner of Sale Capital Partners Stephen LaFrance, the former executive vice president of USA Drug which sold its 157 pharmacies to Walgreens in 1992.

“Arkansas voters made clear that they want sensible, safe medical marijuana policy in this state, because they recognize the clear evidence that cannabinoids are effective in pain relief and treating a number of chronic illnesses,” Couch said in a press release. “Our association will be a partnership of all those with a common interest in ensuring the state stays true to the will of the voters and medical marijuana operations are run safely and legally.”

According to the release, the association plans on engaging with the policy-making process and providing public-education to patients throughout the state.

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