A selection of clones held by a commercial cannabis grower in Washington state.

Construction on Americann MMJ Facility in Mass. Set for March

12/29/2016

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Construction on a 1 million-square-foot canna-business park in Freetown, Massachusetts operated by Americann is slated to begin in March, according to a Quartz report. Businesses that lease or buy space in the park will be given streamlined preferential licensing thanks to an agreement between Americann and the city.

Space at the park will only be available to companies registered under the state Medical Marijuana Program and will include a 130,000-square-foot cultivation and processing space, a testing laboratory, corporate offices, training centers, and a 30,000-square-foot research and development center. In an interview with the Boston Business Journal, Americann CEO Tim Kough said development for the first phase of construction could run $25 million.

In a statement, Americann said the facility “will set a new cannabis industry standard for energy efficiency, cost control, clean cultivation practices, and the production of Nutraceutical-grade infused products for the patients of Massachusetts.”

The site was purchased by the Boston Beer Co., makers of Samuel Adams and Angry Orchard hard ciders, for $6 million in 2007. The company planned to build a brewery, however those plans fell through and the site was relisted for sale in 2008. Americann, who is based in Colorado, bought the property in the fall for $4.475 million.

According to the Business Journal report, Americann is also eyeing property in Florida, Pennsylvania, and California for medical cannabis facilities.

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The Massachusetts capitol building in Boston.

Massachusetts Lawmakers Quietly Pass Bill Delaying Adult-Use Market Rollout

12/29/2016

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During an informal legislative session lawmakers in Massachusetts have approved a bill that will likely delay the opening of retail dispensaries in the state from January to July 2018, according to a Boston Globe report. The measure will not have any impact on portions of the law permitting possession and home-growing which have already taken effect.

The measure was only voted on by about a half-dozen state legislators and has already been sent to anti-legalization Gov. Charlie Baker, who called the delay “perfectly appropriate.”

Jim Borghesani, an activist who worked with the Yes on 4 campaign, said that the measure, approved by 54 percent of voters during November’s General Election, “was written with careful consideration regarding process and timelines and that no major legislative revisions are necessary.”

“We are very disappointed that the Legislature has decided to alter Question 4 in an informal session with very little notice regarding proposed changes,” he said in the report.

The passage of the measure in the Senate took less than a minute, with just two of the chamber’s lawmakers present for the vote – Democratic Senate President Stanley C. Rosenberg, and Republican Minority Leader Bruce E. Tarr. Passage in the House was even faster, and with Democrat Paul Donato presiding, just five members passed the bill “in seconds,” the report says.

“The Legislature has a responsibility to implement the will of the voters while also protecting public health and public safety,” Rosenberg said. “This short delay will allow the necessary time for the Legislature to work with stakeholders on improving the new law.”

Colorado was able to draft regulations and rollout their recreational market in the amount of time specified under the version of the bill passed by Massachusetts voters.

Baker has 10 days to either veto the bill or sign it into law.

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Plant grown by a licensed marijuana cultivator in Washington state.

Licensed Canadian MMJ Producer Issues Recall Over Products With Banned Pesticides

12/29/2016

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Toronto, Canada-based medical cannabis producer Mettrum Ltd. has come under fire after its products tested positive for banned pesticides myclobutanil and pyrethrin, leading to a voluntary recall of affected products, according to a Globe and Mail report. Neither the company nor Health Canada informed consumers en masse.

Myclobutanil is prohibited from use on legal cannabis products in the U.S. states of Washington, Oregon, and Colorado because it is known to produce hydrogen cyanide when combusted. Mettrum said that its use of pyrethrin was a mistake because it was not included on the ingredients of a pesticide spray the company was using. Mettrum did inform some of its customers via an automated phone message but did not publically announce the recall.

According to the report, Health Canada said that no broader warning was necessary because “exposure to the affected cannabis products would not likely cause any adverse health consequences.”

A representative from Mettrum told the Globe and Mail that only “trace levels” of myclobutanil were discovered but did not indicate how the banned pesticide ended up in its products.

In Canada, only 13 pesticides are approved for use on medical cannabis. Health Canada said that the agency is “looking at ways to make all cannabis product recalls, regardless of the level of risk, publicly available.”

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Typing in a website's address or URL.

Cannabis Marketing Basics: Every Dispensary Needs a Web Presence

12/29/2016

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After acquiring the proper licenses and working to get your dispensary open to the public, it’s time to start thinking about your online presence if you don’t already have a plan in place. Even with limited time and a limited budget, there are things you can do to get your business online.

Make sure to have the following in place in advance of your shop’s opening date:

Official website

A professional website on a custom domain that reflects the personality and style of your business. The most successful dispensaries take their image and reputation very seriously, so you should avoid using Gmail or other free email services. Free email accounts won’t instill confidence in your potential customer.

Professional help can be a good investment when it comes to getting your business online, but before you hire anyone it is good to do some research so you have a sense of your options.

Business listings

Accounts created for both Leafly and Weedmaps, which are popular directories of recreational and medical dispensaries, are a necessity. Besides being great for SEO, these two sites have a lot of users looking for dispensaries or particular strains, so make sure to get your business and inventory listed.

A Google business listing to give users crucial information of your business at a glance, without leaving the Google search results page. This will increase your presence in search and display information like hours, address and phone number next to photos, reviews and directions to your business. Claim and verify your business, make sure your information is up-to-date, respond to reviews, and take a look at the analytics to learn more about your audience.

Social media

At least one social media account on a major platform, though it would be ideal to have two or three. Each of the social platforms has its pros and cons, but all four listed below are worth the effort and don’t cost anything to join or maintain. For help crafting your voice over social media, check out this guide of do’s and don’ts.

  • Facebook is a great place to start for your business, and likely the most familiar. Set up your business page with high-quality images and up-to-date business profile and location information. You will want to post at least a few times a week, promoting events, sales, new products, etc.
  • Twitter is a great secondary option, and because it’s short form content, you should be tweeting and retweeting others several times a day if possible. Be sure to keep your audience in mind as you post, making sure to provide useful or interesting information they will care about.
  • Instagram is a great option if you have someone on staff with photography skills. You can really make your business stand apart from its competition by showing your space and products in creative ways, and it’s a great place for potential customers to discover your business.
  • Massroots is a new social platform specifically for cannabis enthusiasts. People can connect with each other, share experiences, search for dispensaries, and discover new strains. Dispensaries can edit their business information, hours and more to help members find their shop.

Follow the steps listed above to ensure that you are getting the most visibility with the least effort and time. The only item on the list that will cost you money is your website, and the link provided should give you a couple of options depending on what kind of budget you are working with.

Finally, be sure that if your business experiences any significant changes — such as a new location, hours, phone number, etc. — that you remember to update your information for every platform on which you are registered.

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The underside of a glowing marijuana leaf located in a Washington state grow facility.

Analysts Predict Washington’s Adult-Use Market Worth $2.4B by 2020

12/28/2016

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According to data from ArcView Market Research and New Frontier Data, Washington’s legal cannabis industry could be worth $2.4 billion by 2020; however, those sales remain at the expense of patients after the state folded the medical program into the adult-use infrastructure.

The multi-billion dollar estimate would represent a doubling of the current $1.2 billion market at an annual growth rate of 23 percent, the analysts say.

“The Washington market is maturing, but it has a long way to go to reach saturation. It will practically double by 2020,” ArcView Group CEO Troy Dayton said in a press release. “People really like cannabis and the regulated market is beating the underground market, as predicted.”

The state’s adult-use market has been in operation for two years and has developed and grown quickly. In 2014, the average monthly sales were $10.8 million, which climbed to $51.2 million in 2015 and doubled to more than $111.6 million this year. Under the new program, though, medical cannabis patients are also required to pay the 37 percent excise tax on cannabis, which will drive up sales figures but also the costs for patients. The state has also increased the number of retail licenses available from 334 to 556.

“Over the past 18 months, Washington has undergone some of the most dramatic changes to any regulated cannabis program in the country, from lowering the tax rates to consolidating the medical and adult use markets into a single channel,” Giadha Aguirre DeCarcer, New Frontier Data CEO and founder, said in the release. “These changes are intended to streamline the market and eliminate structural inefficiencies. However, it will be at least another year before we understand their full impact on product supply and consumer behavior.”

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The state capitol building in Annapolis, Maryland.

Future Dispensary Owners Navigate Bumpy Road to Medical Marijuana in Maryland

12/28/2016

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It’s been a long and arduous journey for Maryland medical marijuana dispensary applicant Mary Pat Hoffman, but her efforts are paying off. The career pharmacist is now adding Clinical Director of Peninsula Alternative Health to her resume, as her company was recently awarded a preliminary dispensary license in Maryland’s District 37.

“We knew very little going into the application process, and we don’t know much more now,” Hoffman told Ganjapreneur.

She’s ready for the challenge ahead, but she’s first to criticize the commission for its lack of communication. “It’s supposed to be for medical professionals, and they expect us to be professional – yet their communication is limited,” she said.

Held hostage to their email the day of the announcement, the partners of Peninsula Alternative Health were continuously refreshing their inboxes in hope of good news.  

They were expecting a bit of a heads up — as the commission had said that applicants of preliminary licenses would be notified before the results were posted publicly — but, “It literally was an email to us at the end of the day, and not even ten minutes later it was on their website,” Hoffman said. “This whole thing has been very vague.”

Looking ahead

It’s been more than three years since the initial measure was approved to legalize medical cannabis in the East Coast state. Since then, the Maryland Cannabis Commission said their process has been riddled with delays; including an unexpectedly large number of applications and a lot of groundwork in uncharted territory. Additionally, the licensing process for medical marijuana cultivators in the state was ripe with its own series of scandals, including lawsuits from several cultivator applicants and accusations from the Black Legislative Caucus that the Commission ignored rules regarding racial diversity in distributing the licenses.

“We don’t know when cultivators are planting their first seeds, or even where they’re getting them because it’s illegal to bring it across states lines,” Hoffman points out.

Mary Pat Hoffman (right) with dispensary partner Anthony Darby (left) at the Capitol Canna Show in Washington DC.
Mary Pat Hoffman (right) with dispensary partner Anthony Darby (left) at the Capitol Canna Show in Washington DC.

Groundwork remains

Hoffman and their license in Western Salisbury don’t have to worry about being voted out by the municipality, like the chaos going on in Ohio.

Early on in the process, a state judge ruled in favor of authorized entities. Dispensaries operating within the law won’t be “denied any right or privilege, for the medical use of cannabis,” reads the letter by The Honorable Robert A. Zirkin.

However, hesitant to make any moves until they had their license in hand, Hoffman and her partners laid low until the announcement. “There’s only so much you can plan for,” she said.

The 102 dispensary licensees must still await inspection and approval from state officials.  

Educating patients and students

For the past year or so, Hoffman’s two time-consuming projects have involved both completing the application and crafting a syllabus for her first university cannabis class. She’ll be teaching the first cannabis elective at the University of Maryland Eastern Shore’s Pharmacy School. In return, the dispensary will serve as a preceptor school for their students.

She also wants to teach patients about their medicine. Her company’s mission is to build a medical cannabis dispensary with a judgement-free zone, where patients can feel comfortable asking questions.

“It’ll be a place where patients can talk about their hopes and goals,” Hoffman promised. “It’s not going to be a ‘pot shop’, rather, a place for educating patients.”

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Sunset in Bangkok outside the Buddhist temple Wat Suthat.

Thailand Approves Hemp Cultivation as Part of Drug Reforms

12/28/2016

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Thailand’s cabinet has approved hemp cultivation for medicinal purposes under an Office of Narcotics Control Board plan, the Bangkok Post reports. The crop will be allowed in 15 districts in the northern provinces of Chiang Mai, Chiang Rai, Nan, Tak, Phetchabun, and Mae Hong Son.

Narcotics Control Board Secretary-General Sirinya Sitdhichai indicated that the species of the plants must not contain more than 1 percent THC and growers found cultivating illegal plants could face legal action. In addition to its medicinal use, the hemp grown in the nation will be made available to licensed tobacco factories.

The measure is part of more sweeping reforms by the agency that seek to determine the medical effectiveness of cannabis, kratom, and methamphetamine. Sitdhichai said that a study is underway to conclude whether kratom, native to Thailand, can be classified as an herbal medicine that can be administered at home. Kratom is known to have been traditionally chewed by farmers and laborers in Thailand seeking pain relief or an energy boost, the report states.

A similar study is underway for marijuana, which Secretary of Justice Charnchao Chaiyanukij said was necessary due to the dangers of synthesized products marketed as cannabis. Additionally, the Control Board has moved methamphetamine from a Type 1 narcotic to Type 2 in order to allow research into the medical efficacy of the drug.

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Farmland early in the morning somewhere in Kansas.

Federal Judge Dismisses Lawsuit by Kansas Activist Who Lost Custody of Son

12/28/2016

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A District of Kansas federal judge has thrown out a lawsuit by a Garden City mother and activist who lost custody of her son over using cannabis oil to treat her Chron’s disease, according to a report from National Public Radio-affiliate KCUR . District Court Judge J. Thomas Marten dismissed the action levied by Shona Banda finding that she failed to respond to the defendants’ “prima facie arguments,” or self-evident claims.

Banda represented herself in the suit, naming as defendants the state of Kansas and Republican Gov. Sam Brownback; the state Department for Children and Families and its secretary Phyllis Gilmore; the Garden City school district and one of its employees; and the Garden City Police Department and its chief Michael D. Utz.

The lawsuit was filed after police raided her home and seized the cannabis oil, dried cannabis, and paraphernalia after her 11-year-old son mentioned her cannabis use at an anti-drug presentation at his school. Her son was moved to the guardianship of the Department of Children and Families alleging that the home was not safe for the child. The Finney County district attorney filed drug charges against Banda which carry a maximum of 30 years in prison.

In the suit, Banda argued that she had a “fundamental right” to medicinal cannabis because other states have decriminalized possession. She sought the return of her son and unspecified damages. Her criminal case is pending.

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A selection of cannabis nugs curing on a hanging rack.

Rules Permitting Recreational Sales at Oregon MMJ Dispensaries Expire Jan. 1

12/28/2016

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Oregon’s law allowing medical cannabis dispensaries to sell to customers without medical cards expires at the end of the year, leaving at least 300 fewer options for recreational customers, according to an Oregon Public Broadcasting report. Medical dispensaries that continue selling to non-medical users will face fines starting at $500 per violation.

Currently, fewer than 100 shops have been granted retail licenses by the Oregon Liquor Control Commission and while dispensaries can apply to shift to adult-use sales, some municipalities have already passed regulations barring recreational sales.

Andre Ourso, manager of the medical marijuana program for the Oregon Health Authority, indicated that the agency will begin checking on medically licensed shops to make sure they are not violating the law.

“We will have a presence in the field and we will be dropping in and doing some spot checks on medical dispensaries to make sure that they are only selling to cardholders,” Ourso said in the report.

The adult-use measure was approved by voters in 2014, but rules and regulations for the recreational market did not allow recreational sales to begin until October 2015 and medical dispensaries were permitted to fill the void. It is expected that the number of retail locations will grow as dispensaries are granted retail licenses.

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The New Hampshire capitol building in Concord, New Hampshire.

Bill Removing Hemp from State Drug Schedule Pre-Filed in New Hampshire

12/27/2016

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A coalition of Republican lawmakers in New Hampshire has pre-filed a bill that would prohibit hemp’s designation as a controlled substance in the state, thereby legalizing full-scale commercial hemp farming and treating hemp just like any other agricultural crop. However, cultivators would still need to seek a federal permit if they wish to comply with federal law.

The measure, HB 151, was introduced in the House by Reps. Daniel Itse, J.R. Hoell, and James Spillane; with support in the Senate by Sens. Harold French and John Reagan.

The bill is refreshingly simple – instead of creating a tightly-regulated pilot program, the measure removes hemp from the state’s Controlled Drug Act, which would immediately allow its cultivation in the Granite State. In 2014, the federal government included language in the Farm Bill which allows state Agriculture Departments and universities to grow hemp for research purposes in states that already allow hemp production under state law. Connecticut and Vermont passed similar legislation in 2014 and 2015, respectively.

The bill will be formally introduced on Jan. 4. It was sent to the House Committee on Environment and Agriculture, and is expected due out of that committee by Mar. 3.

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A line of storefronts in Belfast, Maine.

City Council of Belfast, Maine Considers Cannabis Business Moratorium

12/27/2016

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The Belfast, Maine City Council has introduced a measure that would impose a six-month moratorium on adult-use cannabis establishments – the 29th municipality in the state to do so, according to a Republican Journal report. If approved, the measure would prevent such businesses from opening in the state for six months; however, the rules governing the program are not expected for at least nine months.

City Planner Wayne Marshall said that the move should not be seen as any sort of statement about the council’s opinions about legalization but said it gives city officials time to sort out any complications with the new laws. The Department of Agriculture, Conservation and Forestry is responsible for governing the voter-backed initiative, which legalizes cannabis use, retail sales, and possession for people aged 21 and older. The initiative also legalized social-use cannabis clubs.

The moratorium will have no impact on medical dispensaries already operating in Belfast. According to the report, the town of Oakland passed the bill’s first reading to ban recreational cannabis-use establishments earlier this month. Members of the Belfast council counted potential odor from the social clubs on patrons from other businesses among the issues that need to be considered before the city moves forward with any regulations.

A second reading of the measure is expected Jan. 3.

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The capitol building of Missouri.

Two MMJ Bills Pre-Filed in Missouri Senate

12/27/2016

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Two separate bills have been pre-filed in the Missouri Senate that would implement a more comprehensive medical cannabis program. Senate Bills 153 and 56 would expand the current regime, which currently only permits CBD use for epileptic patients.

Senate Bill 153, filed by Republican Sen. Rob Schaff, would allow patients with a limited number of qualifying conditions to register under the program with the Department of Health. The proposed list includes 14 conditions, specifically; HIV/AIDS, cancer, Alzheimer’s disease, Parkinson’s disease, Huntington’s disease, multiple sclerosis, spinal cord damage, inflammatory bowel disease, severe migraines, rheumatoid arthritis, fibromyalgia, and neuropathies.

The measure would permit registered patients to possess a 30-day supply and contains provisions “regarding the seizure of medical marijuana.” The bill text does not indicate what the tax rate would be under the plan.

Senate Bill 56, sponsored by Democratic Sen. Jason Holsman, has similar regulating provisions and permits for many of the same conditions as its counterpart but adds post-traumatic stress disorder. Both permit for the regulating body to add conditions. It provides for a 4 percent and would divert those funds to a “Missouri Veterans’ Health Care Fund” which would be created under the measure.

 Neither measure has yet been assigned to a committee.

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A blooming cannabis plant lit up under a purple LED grow light.

Scammers in Maryland Targeting Would-be MMJ Patients

12/27/2016

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Officials in Maryland are warning of companies attempting to scam would-be medical cannabis patients by offering preapproval exams and selling “marijuana cards,” according to a Washington Post report.

The Maryland Medical Cannabis Commission has issued preliminary licenses for dispensaries and cultivators, but none of those businesses have been given final approval or been allowed to begin operations – expected, at the soonest, in late 2017. Patrick Jameson, executive director of the commission, said they were aware of the scheme and have received inquiries from about 20 potential patients.

“This type of fraudulent activity preys against the most vulnerable people in society and we will do everything possible to stop this behavior,” Jameson said in the report. “Only patient identification cards issued by the Commission are legitimate. At this point no ID cards have been issued.”

Darrell Carrington, executive director of the Maryland Cannabis Industry Association, said that patients are prime targets for scammers because they are “so desperate for medication” but “there is “no such thing as preapproval.”

“Groups that are operating nefariously and preying on people’s hopes and desires do a huge disservice,” he said.

Under the law, patients enrolled in the program will be required to join an online registry; and while ID cards will be available, they will not be required.  

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Plants inside of an indoor cannabis grow op in Washington state.

Former DEA Spokesperson: Marijuana is ‘Cash Cow’ and ‘We Will Never Give Up’

12/23/2016

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Twelve years ago, former DEA propagandist Belita Nelson quit her job after spending six years (1998-2004) as an international media representative for the anti-drugs agency. Since leaving the DEA, Nelson has become an advocate for cannabis reform and the expanding of research into marijuana treatments.

Nelson — who, during her time there, eventually became the DEA’s chief propagandist — told a crowd at the Marijuana for Medical Professionals Conference in Denver, Colorado last month that the DEA’s war on cannabis is exactly the corrupt, money-grubbing scheme that most believe it to be.

“Marijuana is safe, we know it is safe. It’s our cash cow and we will never give up,” she said, according to Angela Bacca’s report for Illegally Healed.

Ultimately, Nelson quit her job in 2004 due to a fundamental disagreement with the agency over its illogical and hardball stance against the cannabis plant. She had been a firsthand witness to marijuana helping a friend struggle through side-effects from chemotherapy. Finally, when she learned that cannabis was also effective in breaking addicts off of serious opiate addictions, Nelson resigned.

“[When they hired me] they forgot to get me to sign a confidentiality agreement — and boy did I know the dirt. They called me in and said ‘name your price, $10,000 a month? $20,000? What do you want Belita?’” she said during her presentation in Denver.

But instead of cooperating, Nelson stormed from the office screaming, “You know this is safe and you are keeping it from people who are sick! I am not taking your money and you better worry about what I am going to say.”

This is certainly not the first time that Nelson has spoken publicly about the DEA’s stance on cannabis in the years since she left — but, in light of the incoming administration (including particularly disappointing prospects for the U.S. Attorney General position), hers are the type of stories that may make the ultimate difference in the months and years ahead.

“…If you think the DEA are the good guys, they are not,” she said. “They are really not. We are talking corruption on steroids.”

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Jason Snyder a.k.a. the Renegade Chef posing in his kitchen.

Renegade Chef Co. Elevates Infused Cuisine

12/23/2016

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The Renegade Chef is the most health-minded badass you’ll ever see in the kitchen.

Chef Jason Snyder is reemerging on the California cannabis scene as the go-to high-end cannabis chef.

He’s been schooled by the best and graduated from the world-famous E.N.S.P pastry school in France. Now, it’s his turn to turn his passion into a delectable reality.

“I’m still doing my Michelin quality food,” Snyder said, “but also incorporating the cannabis part to it on a medical level.”

Working under chefs for the past seven years was difficult, he said, especially spending long hours at restaurants, away from family and friends. Today, he knows it was all worth it because he’s doing what he believes in — healthy, cannabis-infused alternatives to the often fatty, sugary foods in America.

A true renegade

Formerly The Crafted Chef, 2017 is going to be his breakthrough year with his own company, The Renegade Chef Co.

Chef Snyder is preparing for his own edible oils using top-quality flower. He’s experimenting with infused grapeseed and coconut oils. As a specialist in handmade, artisanal, top quality food, he’s experimenting with infused grapeseed and coconut oils. Think cold pressed juices, granolas, and goji berries — not gummies and cookies.

Vegan and super foods with the theme of eating healthy — it’s part of a food movement to transition Americans away from pills. “I’m trying to make nothing in a pill form because it can be a drug abuse trigger for some people,” Snyder said.

The Renegade Chef is working to penetrate the edible market in a thoughtful, professional, and responsible way. “I’m working with CBDs too, I’m developing a line of patient-friendly food for those who have to medicate daily – it’s a better option than brownies all day,” he said.

It’s also tastier than medicating with cannabis oil, which can leave an arguably bad taste.  

“There’s more to medical edibles than you see right now on the shelves, I’m working on ice creams and sorbets for those who can’t eat solids,” he said.  

The cost of business

It’s not about the money or fame for the renegade — it’s a mission.

“I’ve discovered my true purpose, and how I want to display it,” said Snyder.

Aside from developing his cabinet of cannabis edibles, he caters private parties in adult-use states like California. He prides himself on his safety-conscious private events, where alcohol and cannabis are never mixed and the event includes a ride home to ensure a safe and enjoyable experience for everyone.

The chef believes he’s onto something bigger than just a celebrity brand, and he’s willing to put in the hours because, as he said, “when you believe in what you do, then it’s not work.”

Caution for aspiring cannabis chefs

The chef’s advice is simple: “Make sure your food speaks for its taste, then infuse it.”

Also, your passion will help make your food shine. “It’s not as easy as it looks or sounds but if you believe in your cause it makes it easier,” explained the expert chef.

A word of caution from the canna chef is to make sure this is your calling, as the traditional culinary world is not welcoming cannabis – yet.

“Many look down on what I do, but I stand for my cause,” he said. “You must think about all the pros and cons before crossing that line.”

Chef Snyder tells Ganjapreneur that he’s in it for the right reasons, and wants to collaborate with other likeminded ganjapreneurs. In 2017, expect the Renegade Chef Co. to be breaking onto the scene in California, Colorado, and Massachusetts with an edible line coming to fruition soon after.

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Faneuil Hall in Boston, Massachusetts.

Analysts Predict Mass. Legal Cannabis Market Worth $1B by 2020

12/23/2016

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According to ArcView Market Research and New Frontier Data, Massachusetts’ legal cannabis industry could be worth over $1 billion by 2020 with an annual growth rate of 113 percent, driven largely by tourism.

The analysts are forecasting $52 million in growth in 2016 solely from medical sales, while the $1.07 billion figure in 2020 is from both adult-use and medical markets.

Troy Dayton, CEO of the ArcView Group, indicated that Boston’s location – about 200 miles from New York City – will make Beantown “the cannabis capital of the world in short order.”

“Unlike other places where cannabis is legal, Boston is within driving distance of many of the most populous places in America,” Dayton said in a press release. “This cannabis tourism will drive significant revenue, tax dollars, and job growth which will make legalization very attractive to neighboring states.”

Although the rules guiding the program have yet to be developed by the Massachusetts Cannabis Control Commission, the analysts say, as written, the “broad parameters of the law create an opportunity for an open and expansive market.”

“As one of only two states on the East Coast to legalize cannabis for adult use, Massachusetts represents a significant opportunity for business owners and entrepreneurs in the space,” New Frontier Data CEO and Founder Giadha Aguirre DeCarcer said. “The law does not limit product forms nor does it cap retail dispensary licenses, which are both factors that will positively contribute toward the billion dollars in sales projected by 2020.”

The state’s legal market is expected to roll out in 2018. Some provisions, including those for possession, are already effective.

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City skyline in Sydney, Australia.

Australia’s TW Holdings Raises Max Under Prospectus Offering

12/23/2016

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TW Holdings, which is traded on the Australian Securities Exchange and will be renamed AusCann Group Holdings, has announced they have raised the maximum $5 million through a prospectus offering issuing 25 million shares at $.20 per share.

AusCann is part of the Canopy family of companies and partners which includes Tweed, Bedrocan, Cann Science, DNA Genetics, and Indoor Harvest. Canopy recently acquired Mettrum Health Corp., a licensed medical cannabis producer in Canada for more than $320 million. Canopy has an 11 percent stake in Auscann.

“AusCann will have a focus on medical cannabis and is well positioned to take advantage of the developing market by bringing together a strong team with relevant and complementary skill sets,” the release says.

The funds from the offering will be used to progress the company’s cultivation licensing application and clinical trials in Australia.

Elaine Darby, managing director of AusCann said that the success of the offering reflects the opportunities “in what is still a nascent industry in Australia.”

“AusCann has a clear strategy to supply high quality, economical and clinically validated medicines and we have in place the necessary skills, expertise and intellectual property to enable our operations,” she said.

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Arthritis Society Funds MMJ for Fibromyalgia Study

12/23/2016

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Canada’s Arthritis Society has awarded a three-year research grant to McGill University’s Dr. Mark Ware to explore the use of medical cannabis as a fibromyalgia treatment – making it the second round of medical cannabis research funded by the organization in the last 18 months.

According to Statistics Canada numbers from 2014, the chronic pain condition affects nearly 520,000 Canadians – of which about 347,500 are women.

Janet Yale, Arthritis Society CEO, said the investments “are about leading by example,” calling on federal lawmakers to add $25 million to the budget over the next five years to fund medical cannabis research.

“Patients and physicians both need to be able to make informed decisions about whether cannabis has a place in the individual’s treatment plan. With these commitments, The Arthritis Society is doing its part to help fill some of the critical knowledge gaps around medical cannabis, but we can’t do it alone,” Yale said in a press release. “There’s no reason for the government to wait until new legislation is in place to start addressing the need for research identified by their own task force.”

The Arthritis Society indicated that many fibromyalgia patients have reported cannabis therapies help to relieve their symptoms. However, those claims have not yet been confirmed by large-scale cannabis trials. Ware explained that opioids and non-steroidal anti-inflammatory drugs are often ineffective as fibromyalgia treatments.

“This disease has a tremendous impact on a person’s life but to date we haven’t really had any good treatment options to offer,” Ware said. “We hope to identify whether oral cannabinoids can offer the person with fibromyalgia hope for relief from their symptoms, and help restore their quality of life.”

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The flag of California flying in the wind.

California Bill Would Amend Advertising, Co-op, and Trademark Rules Under Prop. 64

12/23/2016

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California lawmakers have introduced legislation to amend Proposition 64 — the voter-enacted initiative to legalize adult-use cannabis in the state — which would impose stricter rules for cannabis advertising, provide a loan for driving under the influence of cannabis research, and permit state trademarks for cannabis products. The measure also aims to clarify rules for cooperatives.

Under Assembly Bill 64 “advertising or marketing on all interstate highways or state highways” would be prohibited; however, the measure also authorizes “the use of specified classifications for marks related to medical cannabis and nonmedical cannabis goods and services that are lawfully in commerce under state law in the state.”

The proposal would see $3 million loaned to the Department of the California Highway Patrol from the state’s General Fund for use in fiscal year 2017/2018 “for the purposes of establishing and adopting protocols to determine whether a driver is operating a vehicle while impaired.” Provisions of the Adult Use of Marijuana Act provide for an annual allocation of taxes from the sector to the CHP for this purpose; however, those funds aren’t available until 2018. The loan would be repaid to the General Fund by the California Marijuana Tax Fund.

Additionally, the legislation would authorize “collectives and cooperatives to operate for profit or not for profit” but only allows protection for for-profit entities if they hold a valid seller’s permit from the state. Medical cannabis cooperatives legally operating under the medical cannabis law would not be affected by the measure.

The bill may be heard by the state Fiscal Committee on Jan. 12.

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States With Medical Marijuana Experience Lower Traffic Fatality Rates, Study Shows

12/22/2016

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Researchers from Columbia University’s Mailman School of Public Health released information this week that could negate one of the most common arguments against cannabis legalization: that easier access to marijuana will mean an increase in stoned driving and therefore more traffic fatalities. In fact, the opposite appears to be the case, at least in regards to medical marijuana legislation.

The study’s authors announced their results this week, which found that — in states where medical cannabis has been made available — traffic fatalities have seen a dramatic 11 percent reduction, the Washington Post reports. This correlation was also present in regions with close access to medical marijuana dispensaries.

Physician and associate professor Dr. Silvia Martins, the study’s senior author, posited that these reductions could be the result of people choosing to use cannabis over alcohol, which would lead to fewer drunken drivers.

The study showed that traffic fatalities had primarily fallen among drivers aged 15-45, but there was not dramatic change among drivers who were older than 45.

It also should be noted that not every state with medical cannabis laws saw only lowered rates of traffic fatalities — California and New Mexico, for example, at first saw reductions of 16 and 17.5 percent, but those rates gradually increased over time.

The results were first published online in the American Journal of Public Health. The study considered 23 states and the District of Columbia, and researchers analyzed data on traffic fatalities from the National Highway Traffic Safety Administration taken from 1985 to 2014. During the time the study was conducted, nine additional states established medical marijuana programs. Researchers adjusted their numbers to account for many different factors, including when a state had graduated driver licensing laws, speed limit maximums, specific seat belt and cellphone use laws, and more.

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Teen Cannabis Use Down 12 Percent in Colorado Since Legalization

12/22/2016

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According to data from the National Survey on Drug Use and Health, cannabis use among Coloradans aged 12 to 17 dropped about 12 percent since the state’s legal market commenced, according to a Washington Post report. In 2013/2014 20.81 percent of teens admitted to using marijuana, compared to 18.35 percent in 2014/2015.

According to the report, a number of factors likely contributed to the drop – the informal market has shrunk and legal states have strict age and purchasing limit laws. Additionally, taxes from the industry are used for substance abuse education programs for children and, culturally, more teens now disapprove of drug use. Teen cannabis use also dropped in Washington, but it wasn’t statistically significant, the report says.

Cannabis use among Colorado teens is higher than the national average; however that was the case well before legalization – in 2010/2011 and 2011/2012 the national average for teen cannabis use was about 8 percent, compared to just over 10 percent in Colorado. In 2012/2013 the gap widened, with a national average of about 7 percent, compared to about 11 percent in Colorado.

The survey also found that cannabis use among Colorado residents aged 26 and older is up, from 16.8 percent in 2013/2014 to 19.91 percent in 2014/2014. That trend is in line with national figures during the same time frame.

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Monthly Luxury Cannabis Boxes Marketed for the Wealthy Connoisseur

12/22/2016

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A Nov. 30 Miner and Co. Studio survey of 800 cannabis users found that 65 percent had an annual income of $75,000 or more – and new luxury monthly subscription cannabis boxes are catering to that demographic.

The AuBox, developed by former Miss Iowa and Amazing Race Competitor Jessica VerSteeg, can be tailored for men or women, and contain extravagant items such as 24 karat gold rolling papers. A one-month trial of the AuBox is $150 – a three-month subscription runs $135 per month, and it’s $120 a month for a six-month subscription. The subscription price drops to $100 per month for a full year. Currently, AuBox only accepts bitcoins but will be able to handle traditional currency next month, according to the Forbes report. Currently, it is only available in San Francisco.

Another company, ClubM, offers an invitation-only monthly membership for $97 per month but offers one-time purchases of luxury boxes – the M1K for $1,000 and the M2Box for $2,000.

“This isn’t just a bigger box,” Chris Husong, ClubM co-founder, said of the M2 in the report. “This is a box with hyper-premium quality product. Frankly, it’s product most people can’t afford, but ClubM members are clamoring for it.”

The ClubM products can be delivered anywhere in California.

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A warehouse that has been left empty for some time.

Cannabis Industry Could Drive Warehouse Sector in California

12/22/2016

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Legal cannabis growers in California will likely drive up warehouse rates and be a boon for some publicly traded industrial warehouse companies with significant exposure in California who are willing to do business with the sector, according to a Reuters report. Fund managers and analysts predict that the warehouse sector as a whole could benefit even for companies that don’t deal directly with cannabis industry.

Michael Underhill, a portfolio manager at RidgeWorth Capital, said that cannabis companies are expected to pay more-than-market prices for older facilities, which will drive up rent prices in a market that is already tight. Operators of more modern facilities will likely be able to charge higher rents as space consolidates.

“Cannabis companies are going to find some distressed properties and get them up and running, and in many cases they will have the capital to pay whatever it takes to get space,” Underhill said in the report.

A spokesman for Rexford Industrial Realty Inc., a publicly traded real estate trust, indicated that the “new demand is expected to be a benefit” but said the company would not lease space to cannabis businesses.

According to figures outlined in the report by real estate data firm CBRE Inc., warehouse rents in Colorado jumped 10 percent after legalization in 2014.

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An indoor, mature cannabis plant.

Florida Nursey Granted MMJ License After Almost a Year in Court

12/22/2016

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After nearly a year of litigation against state Department of Health, a Central Florida nursery has been issued a medical cannabis license, the Tallahassee Democrat reports. McCrory’s Sunny Hill Nursery was initially denied a license after losing out to a competitor by a fraction of a percentage point, which was recorded in error by one of the reviewers on the state’s three-member licensing panel.

The Central region originally had seven applicants, and the three-member panel was tasked with scoring each applicant — the winner of the license would have the highest score. During the process, McCrory’s was given an aggregate score of 5.5417, while Knox Nursery was scored 5.5458. McCrory’s argued that one of the reviewers identified the nursery as “superior to all other applicants” but gave the nursery a “6” score instead of a “7,” which was inconsistent and done in error. If the score had been accurate — a 7 — McCrory’s would have outscored Knox and been granted the license.

The deal between the Health Department and McCrory’s was struck before Administrative Law Judge Elizabeth McArthur could issue a ruling. As part of the agreement the nursery promised to drop both administrative and court challenges and both sides agreed to pay their own legal fees and court costs.

Last year, McCrory’s teamed with three other Central Florida nurseries — Agri-Starks, Eve’s, and Peckett’s — under the GrowHealthy brand and purchased a 180,000-square-foot facility anticipating a license.

“I believe the state reviewed their case, and I believe that we had a high level of confidence that the judge would rule in our favor, and I believe that the state, after going through this process, agreed with us,” GrowHealthy CEO Don Clifford said in the report.

Four of Florida’s six licensed medical cannabis cultivators are currently producing the drug for terminally ill patients, as the provisions of the constitutional amendment approved during the General Election, which will expand the program, have yet to take effect.

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