Adelson Makes Another $1M Contribution to Anti-Legalization Campaign

10/17/2016

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Sheldon Adelson has donated another $1 million to anti-legalization efforts, this time in Massachusetts, according to a report by the Boston Globe. The Las Vegas casino mogul, a Dorchester native, made the donation to the Campaign for a Safe and Healthy Massachusetts.

Adelson’s donation constitutes more than the $634,000 the campaign has raised all year, according to campaign finance reports. Comparatively, the Yes on 4 campaign has raised more than $3.3 million this year.

“We are grateful for the support of Mr. Adelson, a Massachusetts native, who with his wife Dr. Miriam has been a long-time antiaddiction advocate,” Jim Conroy, a spokesman for Safe and Healthy Massachusetts, said in the report. “His generosity will prove critical in preventing a billion-dollar marijuana industry from establishing a foothold in our communities.”

Last month, Adelson, the CEO of the Las Vegas Sands Corp., donated $1 million to the Drug Free Florida Committee, a political action committee pushing to defeat Florida’s medical marijuana ballot initiative. Last December, the billionaire purchased the Las Vegas Review-Journal for $140 million, according to a Forbes report. The paper had historically been pro-cannabis but in June published an editorial condemning potential cannabis legalization in the state, likely as the behest of Adelson.

Massachusetts is one of five states, along with Nevada, that will be voting on legalizing cannabis for adult use next month.

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Detroit Officials Continuing Crackdowns on Dispensaries

10/17/2016

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Officials in Detroit, Michigan are shuttering dispensaries but seemingly will not reach their stated goal to have just 50 in the city by December, according to a report by Crain’s Detroit Business. In March, Detroit Corporate Counsel Melvin “Butch” Hollowell counted 273 dispensaries operating in the city — now there are 171.

“Eighty seven (of the 273) are out of business. Seven of those closed voluntarily, and 80 we’ve closed,” he said in the report.

Another 14 have received cease and desist letters from the city, while an additional 64 dispensaries “are in the pipeline” to get closure letters this week, Hollowell said.

The dispensaries receiving letters are running afoul of the city’s marijuana dispensary ordinance, passed by the City Council in December 2015. Under the ordinance, dispensary owners were required to submit applications starting on Mar. 1, with a Mar. 31 deadline. The city received 255 applications from new applicants and existing dispensaries by the deadline. It’s unclear how many — if any — of those applications were approved.

Last month, Gov. Rick Snyder signed a package of bills that aimed to clarify and more closely regulate the state’s medical marijuana industry, which has operated in a gray-market since voters approved the original law in 2008. The new rules allow for dispensaries, which were not codified by the voter-approved initiative and were often raided by law enforcement; however municipalities can pass zoning ordinances banning dispensaries if they choose.

The new rules take effect in December, but individuals seeking operating licenses must wait until 2017 to apply.

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Mail delivery man stuck in snow.,

Email Marketing Ideas for Cannabis Companies

10/17/2016

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Setting up and using an email marketing platform for your company is a simple and inexpensive process that, if done correctly, can generate long-term repeat customers. Since the recipients of your emails have opted in to receive them, email marketing speaks directly to a loyal audience that wants to hear from you. This holds true for any industry, but in the cannabis industry specifically it is important to build loyal customers now before the market in your area gets even more competitive.

Creating or compiling content that is enticing to your subscribers is the most important part of the equation, otherwise you may lose them via the unsubscribe button. Serving your subscribers good content on a regular basis will keep your company in their mind while making purchasing decisions. Established companies usually have marketing budgets and, in many cases, will hire an agency to manage their various marketing channels including email.  This guide, however, assumes you will be building your email strategy & managing your campaigns in-house.

What should your email newsletter contain?

Put yourself in the shoes of your average customer: what would entice you to read an email newsletter each week from a dispensary, grower, medical clinic, or B2B service provider? Good original content will help you build your brand, and will increase the odds that people will remember you when making purchasing decisions. If that means you need to hire a copywriter on an ongoing basis, then invest in a good one to help you get your point across most effectively.

Some Ideas for Email Newsletter Content:

  • New product announcements, discounts or specials*

  • Local in-store or community events that you are involved in or support

  • Interesting educational articles on cannabis culture, local laws, industry news, etc. that you have written, or linked to via a third-party site

  • Ongoing columns like “Budtender of the Month” or “Shout-Outs to Our Favorite Producers & Processors”

  • If you already have a blog on your site, that’s great! Include a summary of your latest blog post and provide a link so that users can read the full post on your site.

  • Social media links, hours of operation and contact information should be included in the footer of the newsletter

  • What to avoid: irrelevant information, duplicate content, links to old blog posts or articles

How often should you send your newsletter?

Well, this depends entirely on what you are offering. If you send out daily emails that are essentially the same, nobody will open them. On the other hand, if you only have one announcement every six months, people may sign up and then forget who you are by the time you send them your first message. Weekly and bi-monthly are good options for small businesses, depending on how much effort you want to put into your updates. Also keep in mind that while regularity is good, you don’t always have to follow the same formula. It’s a good idea to try a one-off promotion or announcement occasionally, and see how these campaigns compare to your regular updates.

How should you go about building your list?

First of all, NEVER buy an email list to send out mass emails. This is spam and it most likely won’t convert any new customers. Worse yet, it could even get you in legal trouble. Always remember that the best email subscribers are the ones who “opt-in” to receive your updates. To get people to do this, consider putting a clipboard at every point of sale with a well-designed cover sheet explaining what the newsletter is and possibly showing an example issue. Another good option is to embed a sign-up form on your website so that your visitors will sign up directly (and you won’t have to manually input them from written lists each week). You should also regularly post about your newsletter on social media to remind people that it is available and draw in those who have recently followed you.

How to setup your email list, and which software to use?

There are plenty of companies out there offering email marketing services at a variety of different price points, some even offering a free service if you have a small list. Here are some of the most popular and highest-rated services:

  • MailChimp: MailChimp, the most popular email marketing service on the web, is a great place for  businesses who are growing a new list since they offer a free service to get started. Please note, however, that you will need to upgrade to a paid account once you wish to send more than 12,000 emails per month or have more than 2000 subscribers on your list. The subscription cost rises as your list gets larger and you are sending more emails, so you can grow at your own pace and reevaluate on a regular basis if the service is valuable enough to pay for. MailChimp makes it easy to send out well-designed email newsletters while also offering many advanced features including A/B testing, triggered emails, segmentation and more.

  • Benchmark: This service’s pricing plan works just like MailChimp, including a free service for up to 14,000 emails per month and to 2,000 subscribers. They offer 24/7 service and support with an online chat desk, so help is always a few clicks away. Both free and paid accounts offer features like a drag and drop editor, responsive templates for mobile devices, signup forms for new subscriber acquisition, and real-time reporting.

  • Emma: Emma is a great choice for your organization if you are already convinced that you want to invest in email marketing to help grow your business. Offering three different price levels ($89, $369 or $779 per month), they also offer unique hands-off services like custom email designs from their design team. They offer a risk-free trial, but the site lacks details as to what is included with the trial.

There are dozens of other platforms out there to explore as well. Whichever service you choose, keep in mind that you are investing in the success of your business by engaging in email marketing. If you put in the time and effort, it can be an extremely effective and affordable way to reach your audience, bringing customers back again and again.

NOTE: Depending on where you are located, there might be strict bans on giveaways, freebies, discounts, etc. Please check with your attorney regarding your local cannabis advertising laws.

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Canadian flag flying against the sun.

Canadian Health Agencies Suggest 25 as Legal Age to Buy Cannabis

10/17/2016

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Ottawa’s Board of Health has recommended that the legal age for buying cannabis should be 25, according to a report by the CBC. The suggestion is one of 33 outlined in a report by a federal task force aimed at establishing ways to minimize harm, and produce and distribute marijuana safely.

The minimum age recommendation was not a consensus among the health agencies, but it is in line with the opinion of the Canadian Health Association. Some agencies who contributed to the report thought that having different ages for purchasing cannabis and alcohol was unrealistic and hard to enforce.  

According to Gillian Connelly, manager of health promotion and disease prevention with Ottawa Public Health, the age recommendation is based on scientific research and that an age higher than that to buy booze, 19 in Canada, reduces cannabis access for youth.

“One of the things that the research clearly demonstrates is that early access to cannabis can have detrimental effects for brain development and the brain develops up to age 25,” Connelly said in the report.   

The department also suggested that the age restriction should be “coupled with rigorous enforcement and penalties.”

Additionally, the report suggests that retail prices are based on THC content and are increased based on inflation; capping potency, with dosage requirements for edibles, and labeling packaging with “evidence-based health warnings;” restricting advertising and packaging aimed at children; and adopting uniform production methods across the country.

OPH also suggests banning public use and having a separate medical cannabis sector, in which prices are regulated to guarantee the drug is accessible to patients.

The federal government is expected to announce plans for legalizing cannabis, along with their own recommendations, in the spring.

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Susan Rust: Why Cannabis Companies Should Invest in Their Brand

10/17/2016

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Susan Rust is Founder of 4blooms, a California-based boutique marketing firm serving cannabis industry clients. Susan brings 20+ years of enterprise web development, creative design, operations, sales & marketing experience to the cannabis space.

We recently interviewed Susan about marketing strategies for cannabis companies. In our discussion, she describes the problems faced by cannabis companies and highlights some under-utilized marketing avenues to help surmount them. Susan also explains how the core marketing strategy of a company should be reflected in its image, goals, and services, and how cannabis producers and retailers can work around some of the marketing restrictions prevalent among social and paid ad channels.

Read the full interview below:

Ganjapreneur: What about the cannabis industry was most attractive to you as a career marketer?

Susan Rust: I’ve done small business start-up marketing and consulting for years. It’s very rewarding to transform someone’s business with just a little effort, money and creativity. We offer such a wide range of services to take a business to the next level. Often owners are passionate about their cause, service or product so the supporting branding, messaging and technology get left behind. At some point, it becomes mission critical, not a luxury. When that happens, we’re here to help.

Do you work primarily with licensed cannabis companies or with businesses that are ancillary to the marijuana market?

So far it’s a mix of both. As the market matures, companies will feel the urgency to improve their marketing as more players with more funding flood into the market disrupting the collegial feel of today’s community. All cannabis companies would do well to evaluate how well their brand presents to both customers and investors. Investors in particular are keen to see a professional local or national marketing plan in place.

What is one commonly overlooked thing that cannabis companies can address to improve their marketing presence?

Branding and a polished website. Companies have to move beyond a literal leaf in yellow, red and green. It doesn’t allow the brand to stand out in a crowd. The logo has to be memorable, meaningful, a little witty and make people smile. Beautiful websites! A first impression is made within 50 milliseconds, according to noted behavioural researchers. And most websites are lacking in beauty, functionality and content.

Spending money marketing without these first two fundamentals makes everything harder and more expensive, so the owner raises the price of acquiring new customers.

Besides a good-looking website, what are other criteria a cannabis company should strive to satisfy with their marketing strategy? Could you break it down into some core foundations?

That’s a great question with a long answer! We recommend by starting with Personas. A Persona is a fictionalized version of your ideal client. Sometimes the most difficult part is convincing companies they need an ideal customer profile or they have incorrectly identified that buyer.

One client, a major distributor of cannabis paraphernalia felt very strongly their customers were males, 18 to 25. It turns out, that demographic was only 35% of their buyers. Almost 50% of their clientele were over 45! That’s an example of internal bias and experience not matching the data. For instance, they likely met the male-18-to-25 at events and trade shows, but they didn’t take into account that other demographic groups were not likely to attend cannabis events.

Dispensaries are a good example of trying to sell to “everyone” with first-time buyer discounts. Unfortunately, this creates a race to the bottom: “Buy from me, I’m the cheapest.” Ironically, this is a specific Persona, “Will go the cheapest route,” and doesn’t engender loyalty, yield high-dollar customers or provide any brand uniqueness. There are so many possible ways to stand out in this crowd, it just takes a willingness to invest a little time, money and effort into creating a new business model and then promoting that. This unique positioning is what will allow for investment, buyout and franchising.

Below are our four big buckets of services. We provide this structure to allow people to think about their marketing from the outcome they would like.

1. Marketing 101 (Strategy & Technology Foundation)
Start with the basics to begin launching a product or building your brand.

  • Persona & Keyword Research
  • Branding & Design
  • Web Design & Development + Technology

2. Get Found (by Google, Bing and Directories)
Websites are for visitors AND search engines. Be found by your ideal customer.

  • Local Search
  • Technical SEO
  • Ongoing Organic SEO
  • Improve traffic volume with #3

3. Be Seen (Potential Customers on Social Media & Paid Ad Channels)
Content will always be king. Write, publish and promote content to attract new business.

  • Web Content
  • Paid Ad Channels
  • Add other Social Media channels: TW, In, Li, Pi
  • Best results when leveraged with services #1 and #2

4. Grow Sales (Converting Web Traffic and Social Media to Customers)
Provide well-written, persona-based, high-quality content to gain new customers or sales.

  • Content Offers, Sweepstakes, Promotions
  • Landing Pages
  • Paid Advertising & Social Media
  • Best results when leveraged with services #1 thru #3

Would you say each platform of a good marketing plan is equally important, or can a company find success by focusing on one or two core delivery methods?

Each of our four major steps is important. However, which of the four a company needs depends on your business goals. For instance, a new edible product may be most interested in growing its brand and not be looking to generate sales because they are still hand-batching for their local market. Their next business goal may be to find investors. That means our “Be Seen” campaign which promotes a brand, grows their social media profiles, drives traffic to their website with engaging content and starts gathering emails to build a national database would be a good starting point.

One dispensary is planning a launch in January 2017. They need our Foundation package of identifying a Persona, Keyword Research for that audience and a website. They would benefit from our “Get Found by Google” for local SEO and organic SEO along with a small brand building campaign to warm up for the launch. Once they are open we can easily add on the “Grow Sales” campaign by marketing to their core audience to drive sales.

Marketing for a company is very custom based on business goals, audience, brand strategy and budget.

How does 4blooms stay ahead of the cannabis advertising bans in states that have decided to restrict the market, and on popular advertising platforms that have rejected cannabis ads?

Content, content, content. While advertising is banned, Google still serves up requested content. And there are many recognized cannabis ad channels as well, like Ganjapraneur. It really depends on the audience a customer is seeking and where that audience hangs. Avoid this one HUGE mistake: companies relying on social media as a standalone platform so when their account is shut down, they lose their audience. Social media’s job is to drive traffic to your website where you can snag and convert them to your own database.

What’s the most rewarding part of your job?

Seeing companies bloom with good branding, web, technology and marketing! So 4blooms has a double meaning, it’s the four components of a good marketing plan AND the four stages of marijuana.

Where do you see 4blooms in the next 5 years?

In 5 years we’ll be a 15-person (9 now) agency that is fierce and more specialized. And maybe purchased by a non-cannabis agency. I don’t have an interest in being large for the sake of being large. 4blooms will always be a quality, boutique firm that provides great strategy and services.

What’s one piece of advice you can offer to people considering entering the cannabis industry?

My advice on business, regardless of industry, is have an exit strategy, work ON your business and not just IN your business, and outsource things you’re not good at to save you time & money: marketing, bookkeeping, accounting, HR, cooking, housekeeping, etc. Advice for the cannabis industry: find an under-served market or demographic, and make sure it’s something you’re passionate about. It’s not about money. It’s about your life.

Thank you, Susan, for answering our questions and for sharing your breadth of knowledge and experience with our audience. To learn more about Susan or 4blooms, you can visit the company website at 4blooms.guru.

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Washington Startup Provides Scores to Cannabis Companies for Consumers

10/17/2016

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Entrepreneurs in Washington have created a consumer report-like cannabis product rating system called Just Good Score as a method for holding growers to a higher standard, according to CBS-affiliate KREM 2.

The system was created by Emily Reilly in order to bring post-prohibition issues, such as negative environmental impacts and potential health risks, to attention. The scales rates growers on a 100 point scale.

“We think consumers care about if there is chemicals in their products. If their products are causing lots of waste into landfills or water systems,” she said in the report. “We believe people care about living wages and benefits.”

Crystal Oliver, co-founder of Washington’s Finest Cannabis, who received a 99, says the rating system “gives consumers a tool to evaluate” the products they are buying and a lot of the consumers driving the state’s thriving sales care about quality cannabis.

“What we really wanted to do is be industry leaders,” Oliver said. “We have made a lot of conscious decisions on how we wanted to run our business on many levels so it seemed like a good fit for us.”

According to the Just Good Score website, there is no cost for businesses to be rated by the company as the founders “believe it is an inherent conflict of interest for any social or environmental entity to rely upon the entities they are evaluating for revenue.” Instead, they are relying on crowdfunding as their primary revenue source.

So far eight cultivators have been scored by the company, with three receiving their gold standard.

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Maine's Governor Paul LePage, an outspoken prohibitionist and cannabis critic.

Maine Gov. Releases ‘Reefer Madness’ Facebook Video

10/15/2016

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Editors note: Bombarded by negative comments, Gov. LePage has deleted the video from his Facebook page. We found another version, however, through Newsmax.com.

Maine Gov. Paul LePage has stepped up his prohibitionist rhetoric against legalizing cannabis in the state, posting a video to Facebook in which he doubles down on egregious anti-marijuana lies.

“THC levels in marijuana snacks are so high they could kill children and pets,” LePage, a Republican, says in the video. “…People will smoke marijuana in pot stores right next to schools, daycare centers and churches. They will smoke weed and sell pot at state fairs.”

LePage also claims that traffic fatalities have increased “dramatically” in Colorado, which according to a recent study by the Drug Policy Alliance is patently false: in both Colorado and Washington, traffic fatalities have decreased in the last decade and have remained stable in the years during which cannabis has been legal.

The governor closes out the video, which has more than 100,000 views, by urging the audience to educate themselves “on this dangerous issue.”

Comments on the video have reached more than 1,000, with most comments disparaging LePage’s message, pointing out that not a single death has ever been linked to cannabis ingestion – unlike alcohol, which, according to the National Institute of Health contributes to 88,000 deaths annually, and is already sold at state fairs.

Mainers are voting on legalizing cannabis for adult use in next month’s general election.

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Cannabis on display under LED grow lights at the 2014 Denver Cannabis Cup.

Study: Cannabis Legalization is So Far ‘Positive’ or ‘Negligible’ in Legal States

10/15/2016

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In states that have legalized adult cannabis use, arrests for possession have plummeted, traffic fatality rates have remained stable, there have not been significant increases in youth marijuana use, and the tax revenues from the industry have exceeded expectations in three of the four states — that according to a report from the Drug Policy Alliance.

The report, titled “So Far, So Good,” crunches relevant numbers pre and post-legalization, focusing primarily on Colorado and Washington because those programs have been active for at least two years.

Youth use is down or unchanged

In Washington, cannabis use rates among students in grades six through 12 have remained mostly stable since marijuana was legalized, according to an analysis of the biannual Washington Healthy Youth Survey outlined in the report; however in 2014, 18.1 percent of 10th-grade students admitted to using marijuana in the last 30 days, down from 19.3 percent in 2012.

In 2009, one in four (25 percent) Colorado middle and high school students reported to have used cannabis within the last 30 days — in 2015, more than two years after legalization, that number was reduced to 21.2 percent. The Department of Public Health and the Environment study found an overall 5 percent decrease in the number of youth who reported using cannabis at least once in their lives — from 43 percent in 2009 to 38 percent in 2015.

“Despite the belief that marijuana is widely available, preliminary data show that the legalization of marijuana has had little to no impact on the overall rate of youth use of marijuana,” the authors concluded in the study.

Cannabis arrests have seen a massive decline

As for marijuana arrests, the total number of marijuana arrests in Colorado decreased 46 percent from 2012 to 2014, from 12,894 to 7,004. In Oregon, cannabis arrests declined 50 percent from 4,223 in 2011 to 2,109 in 2014. Arrests in Washington State were almost eliminated — decreasing from 6,879 in 2011 to just 120 in 2013. Both charges and arrests decreased a total of 59 percent in Alaska, even though the retail program has not yet taken full effect.

However, the most eye-popping decline belongs to Washington, D.C. where arrests fell 98 percent from 1,840 in 2014 to a mere 32 in 2015.

The decline in arrests have translated to “hundreds of millions of dollars” in savings for law enforcement spending, the report states.

No major changes in road safety reported

In Colorado and Washington, the traffic fatality rate is lower in each state compared to a decade prior.

“According to a recent report analyzing available post-legalization data, no obvious increases in traffic fatalities occurred after legalization or after the opening of retail stores in Colorado and Washington,” the report says.

It should, however, be noted that in Washington more drivers involved in fatal crashes tested positive for THC, whether alone or in combination with other drugs or alcohol – from 44 drivers in 2010 to 72 in 2014. However, arrests for DWI – the third leading cause of traffic deaths – have declined in both states. In Colorado, the number of DWI-related citations issued by the Colorado State Patrol dropped 18 percent from 5,546 in 2014 to 4,546 in 2015. In Washington, DUI arrests by the Washington State Patrol dropped 8 percent.

“Legalization has not led to more dangerous road conditions,” the report says.

Taxes paying off better than expected

Tax revenues in Colorado and Washington both exceeded their projections — and it wasn’t even close. Colorado anticipated $70 million annually in cannabis tax revenues; in 2014 the state saw $78 million and in 2015 that number jumped to $129 million. Washington expected $162 million over the first two years after the program’s implementation – the state topped that total in 2015 alone with revenues of $220 million after a first year total of $78 million.

Revenues in both states are used for education, drug abuse prevention and treatment programs, community health services and research on cannabis use.

It is no coincidence that the report comes less than one month before five more states will decide whether to legalize cannabis for adult use.

“It is too early to draw any line-in-the-sand conclusion about the effects of marijuana legalization. However, preliminary reports suggest that the effects of legalization have been either positive or negligible,” the authors conclude.

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An indoor plant, glazed with trichomes and kief.

Colorado’s August Cannabis Sales Break Previous Sales Record

10/15/2016

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Colorado has done it again.

Cannabis sales in August topped $126 million, surpassing the state sales record of $122.67 million just a month prior, according to a report from the Denver Post.

The spike could be attributed to the implementation of a law that increased the daily purchase limit for non-residents from a quarter-ounce to 1 ounce; however last year July, August and September represented the biggest sales months for the industry, save for the holiday season in December.

August saw $84.7 million in recreational sales and slightly less than half of that — $41.4 million — in medical cannabis sales. Medical sales remained exactly the same from the same period last year, when recreational sales totaled $59.2 million.

The state’s cannabis industry has raked in nearly $846.5 million through August, after reaching $639 million in the first eight months of 2015. In 2014, the first year of recreational sales, the industry grossed $699.2 million.

So far the state has earned $124.9 million in tax revenues from the industry this year, after netting $86 million last year and $76.2 million in 2014.

In Colorado, tax revenues from the cannabis industry are used to fund education, capital construction grants, and health programs.

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Freshly cut indoor cannabis plant. waiting to be picked apart for harvest.

Pew: Strong Majority of Americans Say ‘Yes’ to Legalization

10/13/2016

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According to a Pew Research poll, 57 percent of adults living in the US believe cannabis should be legalized, with 37 percent opposed. Just 10 years ago, polling by the group found the support virtually flipped — 60 percent said it should remain illegal, while 32 percent supported legalization.

The survey was released Oct. 12.

Millennials were the strongest supporters — 71 percent indicated they back legalization with 25 percent opposed. The majority of Generation Xers (57 percent) and Baby Boomers (56 percent) also said cannabis should be legalized. Pollsters referred to individuals aged 71 to 88 as the “Silent” generation, and that group was against legalization 59 percent to 33 percent.

As usual, the majority of Republicans still back keeping the drug outlawed — 41 percent supported legalization compared to 55 percent opposed. While Democrat respondents supported legalization 66 percent to 30 percent.

The poll backs those conducted in the five states with adult-use measures on next month’s general election ballot. According to our poll aggregates, polls in each state voting on legalization have found that the public backs those measures. In California, which many advocates and experts point to as the game changer state in the legalization fight, the polls mirror the Pew results – 61 percent say they will vote for Proposition 64, with 36 percent opposed.

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Afternoon at Capitol Reef, Utah.

Spouse of Utah Gubernatorial Candidate Facing Misdemeanor Drug Charges

10/13/2016

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A prosecutor in Utah plans to file misdemeanor drug charges against Donna Weinholtz, wife of Democratic candidate for governor Mike Weinholtz, following an investigation that uncovered nearly 2 pounds of cannabis at the couple’s home, the Associated Press reports. Mike Weinholtz said that his wife uses cannabis to treat pain caused by degenerative spinal conditions and arthritis and that he was unaware of the stash.

The investigation was sparked when U.S. Postal Service inspectors discovered a package containing a small amount of marijuana that Donna Weinholtz attempted to mail to another home owned by the couple in California. Federal investigators were called in and searched the couple’s Utah home, finding the larger supply — but the U.S. attorney’s office declined to file federal charges, instead sending the case to Salt Lake County prosecutors.

Citing a potential conflict of interest due to the candidate’s political ties to Salt Lake County District Attorney Sam Gill, the case was moved to Tooele County prosecutors who indicated they would levy charges.

If convicted, Donna Weinholtz could spend six months in jail and face a $1,000 fine.

“She refuses to use addictive opiates, and used cannabis after suffering when other medicinal options were either invasive, ineffective or addictive,” Weinholtz said in the report. “We have complied at every step of the judicial process and now that we know where the case is landing, we look forward to having the issue resolved and moving on.”

Tooele County Chief Deputy Attorney Gary Searle said he was not sure if Mrs. Weinholtz holds a medical marijuana card in California, but he has “no intent to turn this into some political sideshow.”

However, even if she is registered under California’s medical marijuana program, cannabis possession is still illegal in Utah — whose own program is very limited, allowing only for individuals with severe epilepsy to use CBD oil.

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Cupola on top of the Delaware Statehouse.

Delaware Legalization Bill Expected Next Session

10/13/2016

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A bill legalizing the adult use of cannabis in Delaware is lined up to be introduced when the General Assembly reconvenes in January, the News Journal reports. The bill’s sponsor, Sen. Margaret Rose Henry, who also penned the state’s medical marijuana legislation, indicated that the legalization legislation has been sent to lawyers for review and she has already started courting sponsors.

“It’s certainly being considered. It’s going to be an uphill battle,” she said in the report. “But it’s time, quite frankly. It’s time to certainly look at it.”

A regulated cannabis market in the state could generate about $21 million, according to a Marijuana Policy Project analysis. Henry, the Senate majority whip, said that figure fails to take sales into account and that the revenues could be used to fund public programs for seniors and education. Henry said that her sponsorship of the bill could reduce her reelection chances and that the measure will be a legislative fight, but she is still going to push for its approval.

Republican State Sen. Colin Bonini, who is running against Democratic State Rep. John Carney for governor, said he would support a legalization bill; while Carney has said the state should see how the recently passed decriminalization law plays out before considering legalization.

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Queensland, Australia Passes ‘Groundbreaking’ MMJ Legislation

10/13/2016

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A “groundbreaking” medical cannabis bill has been passed in Queensland, Australia providing regulatory framework allowing access to the drug by the Therapeutic Goods Administration, the Australian Associated Press reports. The measure will allow specialist doctors, or medical practitioners who apply with the department, to prescribe the drug to patients with severe chronic medical conditions.

During an appearance in front of the Parliament supporting the bill, Health Minister Cameron Dick explained that the measure enables access to both synthetic and “botanically derived” cannabis products, but does not allow for patients to home grow due to “significant safety risks.”

“This bill will change the paradigm for seriously ill patients who often feel compelled to seek out illicit cannabis treatment options,” he said in the report.

The legislation adds extra provisions to laws passed in the nation earlier this month, and comes two months after the Australian Capital Territory government announced plans to set up a medicinal cannabis program in the country’s capital of Canberra. New South Wales launched their own medical marijuana program in August. Under the national plan, medical cannabis was available in Queensland, however just one person in the region had been granted approval.

Michael Cope, president of the Queensland Council for Civil Liberties, welcomed the new regime but said that steps need to be taken to secure a supply or else citizens would be forced back into the informal market.

The rules will take effect in March.

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Flag of the United Kingdom, a.k.a. the Union Jack, flying in the wind.

UK Healthcare Agency Admits CBD is Medicinal, Approves Use and Sales

10/12/2016

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The UK government’s Medicines and Healthcare products Regulatory Agency now says that CBD — a non-psychoactive cannabis compound — has medicinal value, according to a report by the Independent. The agency admits that CBD has a “restoring, correcting or modifying” effect on “physiological functions” after the testing of the Medipen by the National Health Service.

“The MHRA has now completed its review and has considered all information available to it relating to cannabidiol and having taken into account all the scientific advice and evidence, it has come to an opinion that products containing cannabidiol will satisfy the second limb of the definition of a ‘medicinal product’…,” the MHRA assessment states.

The decision allows CBD-only products to be sold in the UK — a major victory for medical cannabis activists and patients across the pond.

“Since our inception we’ve worked hard to obtain our goal of breaking down the negative connotations surrounding cannabis to lead to a reform in the law for medicinal use,” Jordan Owen, Managing Director of MediPen, said in the report. “Now this is finally becoming a reality, which will provide ground-breaking results.”

Vendors interested in selling CBD products will need to obtain licenses from the NHS or face a fine and prison sentence up to two years. According to an MHRA spokesperson, the agency has already informed CBD product manufacturers and potential retailers of their decision and offered their guidance to any company interested in applying for a license.

“If you use CBD and if you have any questions, speak to your [general practitioner] or other healthcare professional,” the spokesperson said.   

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Views from a commercial indoor cannabis grow in Washington state.

Second Israeli Study Shows Cannabis Improves Parkinson’s Symptoms

10/12/2016

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According to a study by Israeli researchers, smoking cannabis improves Parkinson’s disease symptoms, including the reduction of pain and increase of patients’ motor functions. The study was published online ahead of print in the European Journal of Pain.

The team, comprised of researchers from Beilinson Hospital and Tel Aviv University, investigated the effects of cannabis use 30 minutes after consumption and again after long-term use on 20 patients diagnosed with the disease. Motor function was assessed using the Unified PD Rating scale by two raters, with one blinded. Pain was evaluated using the Pain Rating Index and the Visual Analogue Scale of the McGill Pain Questionnaire and thermal quantitative sensory testing, which determines sensation thresholds for warm and cold temperatures, was performed on 18 patients.

Cannabis inhalation showed to reduce both pain and decreased motor symptoms after both the 30-minute trial and in the long-term (a median of 14 weeks) in all patients, although two patients were excluded from the long-term results because they consumed the drug via vaporizer rather than combustion.

“Cannabis improved motor scores and pain symptoms in PD patients, together with a dissociate effect on heat and cold pain thresholds,” the authors concluded. “Peripheral and central pathways are probably modulated by cannabis.”

This is the second such study in Israel using cannabis as a therapy for Parkinson’s. A 2014 study published in the journal Clinical Neuropharmacology had similar findings using the same clinical assessment methods and the 30-minute threshold. In addition to decreased tremors, rigidity, slowness of movement and pain, patients reported a significant improvement in sleep.

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Canadian dollar bills stacked on top of each other.

Canada’s Aurora Appoints Independent Director and Enhances Cash Position

10/12/2016

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Canadian medical marijuana producer Aurora has made two major announcements this week, appointing Barry Fishman to its board of directors and revealing $25 million of convertible debentures.

Fishman, the CEO of international pharmaceutical company Merus Labs, will act as an independent director on the board and has previously served on the board of canna-businesses Canopy Growth Corporation and Bedrocan Cannabis Corp.

Terry Booth, CEO of Aurora, lauded Fishman’s marketing, finance and capital markets experience.

“His network and reputation, along with his wise judgment, will serve the company and our shareholders well as we continue on our rapid growth trajectory, which includes expanding our production capacity, transitioning to profitable operations, and further establishing our leadership position in the Canadian cannabis industry,” Booth said in a press release announcing Fishman’s appointment.

The deal grants Fishman options to acquire 350,000 common stock shares.

According to Booth, the financing deal places Aurora in “an extremely powerful financial position” with a current cash balance exceeding $45 million.

“We are now one of the best capitalized companies, with one of the strongest balance sheets in the cannabis sector,” he said in a release.

A convertible debenture is a loan which can be converted into stock. Along with the new offering, Aurora converted $10 million of pre-existing convertible debentures, which bear 10 percent interest per year, into approximately 8,695,652 common stock shares. The offer is expected to close on Oct. 25.

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A large cannabis leaf, seen inside of an indoor commercial grow operation in Washington.

Prison Food Services Company Makes Donation to Anti-205 Campaign

10/12/2016

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Another player in an industry that would be negatively impacted by the legalization of cannabis is pouring money against a state ballot initiative as Services Group of America donated $80,000 to the prohibitionist campaign in Arizona, the International Business Times reports.

Services Group of America counts Food Services of America among its subsidiaries – the company is a meal provider for correctional facilities.

The donation expands the war chest of Arizonans for Responsible Drug Policy, bringing their total fundraising efforts to $2.7 million — $900,000 of which was generated in the last three weeks. The pro-legalization campaign has raised more than $3 million, largely funded by the Marijuana Policy Project, but were recently buoyed by a $100,000 donation last week from the makers of Dr. Bronner’s Magic Soap.

Insys, makers of the sublingual opioid spray Subsys, donated $500,000 to the anti-Proposition 205 campaign in the state last month. The Chamber of Commerce and the Arizona Wine and Spirits Wholesale Association also donated $498,000 and $10,000, respectively.

According to the report, about 20 percent of Arizona’s incarcerated population are drug offenders. It’s not clear which portion of Services Group of America’s business involves jails and prisons or how many facilities serve as clients in the state. The company also provides food services to schools, cruise ships and hospitals.

Although the pro-campaign has slightly out-fundraised its opponents, they are being outspent 6-1, ABC-15 reported in September. The group is using the funds for TV ad buys, which allege that the state’s medical marijuana system would be disrupted by the proposition, calling it a “20-page special interest goldmine” creating “a Big Tobacco-like empire.”

Politifact ruled the ad’s claims “mostly false.”

Arizona is one of five states voting on legalizing and regulating adult cannabis use in November.   

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Cayman Island Legislators Back MMJ Bill

10/11/2016

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Following yesterday’s debate, the Cayman Island Legislative Assembly has decided to support a bill to allow cannabis oil for medicinal use, according to a report from the Cayman News Service. Although there are concerns about where the oil will be sourced, it is the first step for medical marijuana access on the island nation.

Dennie Warren, who advocated for the legislation on behalf of his wife, who has a stage 4 lung cancer diagnoses, said that the lawmakers’ decision to back medical cannabis access “took courage.”

“[It’s a] very important step for the world as it will be of great benefit for many people and I look forward to the final approval of the bill,” Warren said in the report.

Warren also supplied legislative members with information that could help them import the oil from Canada. Currently, none of the islands’ neighboring countries permit medical cannabis use; however governments in Jamaica, Colombia and Germany have been actively discussing plans to make the plant accessible in their respective nations and might be willing to export the oil to the islands.

During the debate, legislators were not convinced that the drug would be as miraculous as some advocates believe; however, many seemed hopeful that it will provide relief for chronically ill individuals. Some lawmakers also seemed ready to decriminalize possession of small amounts of cannabis for personal use.

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Cannabis and Hemp Association Opens Upstate NY Chapter

10/11/2016

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The Cannabis and Hemp Association has opened a chapter in Albany, New York, according to a report from NPR-affiliate WAMC. During the first meeting, members reviewed the first year of the state’s medical marijuana program and discussed the impact of the Compassionate Care Act’s new regulations.

Pamela Johnston, Electrum Partners’ senior vice president for strategy and special projects, said that New York’s very limited medical cannabis program is causing the industry to suffer because it prevents businesses from entering the state’s market. She said canna-businesses are interested in states with “thriving infrastructure” and that New York is not among them.

“A good example would be Nevada, for a 20,000 patient medical market, because Nevada’s ‘medical only’ right now,” she said in the report. “They do have reciprocity for tourists, but Nevada had $400 million spent on infrastructure just for that 20,000 patient market.”

The patient counts in New York’s medical cannabis program are nowhere close to Nevada’s — with just about 7,600 enrolled patients as of September. And, although that figure represents a huge step forward from patient counts in May — which were about 4,800 — there are still many shut out of the program due to its limited scope.

Eileen Konieczny, president of the American Cannabis Nurses Association, suggested that if more physicians understood the endocannabinoid system, they would be more open to writing patient recommendations for medical marijuana use.

Just five companies are licensed to grow, cultivate and sell medical cannabis in the state — which does not include chronic pain as a qualifying condition.

Fred Polsinelli, spokesman for PharmaCannis LLC, one of the state’s licensed producers, indicated that the company is using just 5 percent of its 135,000-square foot Orange County greenhouse — but “more greenhouses” is not what the program needs to thrive.

“We need more patient access and that’s what this department is working on, we’re all working together on it, and at the end of the day it really is all about the patients,” he said. “But it’s also an industry. And if the industry is not supported by positive economics, there will be no industry.”

In August, three of the state’s five licensed operators, including PharmaCann, indicated that they were not yet profitable. At that time, Polsinelli estimated it would be at least another 18 months until the companies were in a profitable position.       

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Night sky over The Rio in Las Vegas, Nevada.

Cannabis Conference Attendees Warned Against Possession, Use at Site

10/11/2016

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The 5th Annual Marijuana Business Conference & Expo will be hosted at The Rio in Las Vegas, Nevada next month; however, according to a memo sent to Caesar employees (Caesar’s owns The Rio), individuals caught possessing cannabis will be turned over to Metro Las Vegas Police.

The memo, which was shared by Denver, Colorado-based Hoban Law Group, reads in part:

“If a Club Venue employee observes an individual (guest or co-worker) with Narcotics, that observation is required to result in the detaining of that individual for either trespass or investigation of illegal controlled substance. The Club Venue does NOT have the discretion to only trespass an individual when the quantity of narcotics exceeds personal one time use.  That individual is to be detained, evidence properly seized and held in custody and the individual is to be turned over to Metro or GCB for prosecution. The Club does NOT have the authority or discretion to trespass and walk out a guest who has more narcotics on him than he can use personally one time.”

If the amount of cannabis found on an individual is in excess of “personal one time use” police will be called. If the amount is considered less than personal one time use the individual will be issued a lifetime ban from all Caesar’s properties, according to the memo.

“This procedure has no exceptions,” the memo reads. “We need to understand this is the intent of the Club Venue Regulations to clean up drugs in the Clubs, not push the problem to the street.”

According to the conference policies, cannabis product use is forbidden during any of the conference events.

Medical marijuana use is permitted in Nevada and the law allows for reciprocity with out-of-state cardholders, but neither the Expo policies nor the Caesar’s directive give any instructions for medical marijuana cardholders.  

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Hillary Rodham Clinton smiling at a campaign rally in March, 2016.

Hillary Clinton Strongly Opposed to Legalization in Wikileaks Speech Excerpt

10/11/2016

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According to the recently released “Podesta Emails” by Wikileaks, Democratic presidential candidate Hillary Clinton said she does not support the legalization of cannabis. The emails, published after a hack of the Democratic National Committee, contain excerpts from some of her paid speeches for high-profile corporate clients. The emails were taken from Clinton campaign Chairman John Podesta.

During her remarks at a March 18, 2014 Xerox event, the company’s CEO Ursula Burns asks the former Secretary of State about her cannabis stance. Specifically, she asks Clinton to indicate her support or opposition for policies by indicating “long” or “short.”

From the email:

“URSULA BURNS: So long means thumbs up, short means thumbs down; or long means I support, short means I don’t. I’m going to start with — I’m going to give you about ten long-shorts.

SECRETARY CLINTON:  Even if you could make money on a short, you can’t answer short.

URSULA BURNS:  You can answer short, but you got to be careful about letting anybody else know that. They will bet against you. So legalization of pot?

SECRETARY CLINTON:  Short in all senses of the word.”

Her response is in line with her public statements on potential legalization, and she has indicated that she supports allowing states determine their own cannabis policies free from federal intervention. Additionally, Clinton has said, if elected, she would reschedule cannabis from its Schedule I federal status under the Controlled Substances Act.

However, her response also indicates a hardline position against legalization — especially compared to third-party candidates Jill Stein (Green Party) and Gary Johnson (Libertarian Party), who have thrown their support behind ending the federal war on drugs, including legalizing cannabis for adult-use on a federal level.

Republican nominee Donald Trump has historically supported ending the war on drugs but has since dramatically toned back his stance. He now says that he does not support legalization, but does support states’ rights to choose their own marijuana laws — a significant step back from calling for the legalization of all drugs.

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Large indoor cannabis plant's cola bud.

MassRoots Settles Debt, Announces $3.2 Million in Equity Financing

10/10/2016

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Cannabis-themed social networking platform MassRoots officially settled its debt of nearly $1 million last week, according to the Cannabist, after having defaulted last month on $966,000 worth of promissory notes to its creditors.

In its effort to settle the debt, the cannabis tech company reduced its workforce by more than 40 percent, terminated relationships with several vendors, and — according to documents filed last Friday with the U.S. Securities and Exchange Commission — dramatically reduced the annual salaries of its chief executive officer, chief operating officer, and chief technology officer.

In a press release issued this morning, MassRoots officials announced the company had closed $3.2 million in equity financing under its Registered Offering, originally declared effective on August 11, 2016. The company received $1.1 million in proceeds on Friday, October 7.

“We are confident that the current political climate coupled with increasing demand in regulated cannabis markets presents a tremendous growth opportunity for MassRoots,” MassRoots CEO Isaac Dietrich said in this morning’s press release. “We’re focused on introducing new monetization channels within our mobile applications while exploring strategic partnerships to expand our platform’s capabilities.”

There will be nine states voting on marijuana legalization measures this November. “MassRoots expects that the passage of any combination of these initiatives has the potential to significantly accelerate its user and revenue growth,” company officials disclosed in the release.

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Several stacks of $100 bills USD.

Report Predicts 37 Percent Growth for Cannabis Industry Through 2020

10/10/2016

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According to new research by the Market Reports Center, the worldwide legal cannabis market is expected to grow at a compound annual growth rate of 37.38 percent from 2016 to 2020, the company said in a press release. The analysts point to the “digitization trend in business processes” and “rising social acceptance” of marijuana as key drivers for the market’s growth.

“Many vendors are using the internet to reach a large number of targeted audience through online and mobile advertisements. In addition, several new start-ups are launching their mobile apps to reach remotely located customers,” an analyst from the company said in the release. “The introduction of such technologies has increased the vendor’s reach, impacting the market positively.”

From 2013 through 2014 the cannabis market posted a 70 percent growth rate.

In their report, the analysts recognized seven companies as “key players” in the global market, identifying another 17 as “prominent vendors.”

The report also outlines potential challenges to the industry; including protecting farm workers, and exposing some populations to “passive consumption.” Additionally, the researchers were concerned that legalizing cannabis for recreational use would open up the population near commercial markets to adverse health risks such as substance abuse and misuse.

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Anne van Leynseele, Founder of NWMJ Law.

Anne van Leynseele: Cannabis Law in the Northwest

10/10/2016

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Anne van Leynseele is Founder of Northwest Marijuana Law (NWMJ Law), a firm that specializes in state cannabis laws up and down the U.S. West Coast.

We recently interviewed Anne to learn about her experiences serving cannabis entrepreneurs in the Northwest. In the following interview, Anne shares her legal background and talks about making the transition to cannabis law from a more mainstream industry. She talks about the most common cannabis-specific issues that she and her firm face, discusses the importance of compromise in legal battles between industry participants, and much more.

Keep scrolling down to read the full interview!

Ganjapreneur: What were your reasons for going from a mainstream industry to the cannabis space, and when did you make that shift?

Anne van Leynseele: Prior to launching my practice in marijuana law, I was a federal attorney advisor in Washington DC and worked on the Affordable Care Act. When I returned to Seattle, I was inspired by a two sentence bit in Newsweek magazine that stated the Federal Bureau of Reclamation was denying water rights to legal marijuana growers in Colorado and Washington.  This peeked my curiosity. I found many DUI and criminal lawyers were advertising as marijuana lawyers, but I realized that this new industry in a highly regulated environment needed me. My background in the Los Angeles entertainment industry, Seattle’s corporate communications market, and as a business management consultant in Sydney, Australia gave me the business acumen to support the legal work in a holistic and strategic way that would sustain my clients’ success.

Would you say that specializing in cannabis law is more demanding than other industries?

Yes, my experiences are creating a new body of law and cannabis law changes so rapidly that absorbing and interpreting the daily dose of new information is challenging. Fortunately, in our firm we have a remarkable team; each have specific areas of expertise. By “playing zones” we are able to share knowledge with each other and provide our clients with integrated information. One example of this working well happened prior to the Washington State Liquor and Cannabis Board changing a policy last summer. Because I encourage our team and our clients to communicate regularly by not charging for non-substantive exchanges; we all benefit from discussing small changes that foreshadow shifts in the industry. I am then able to proactively send analyzed or triangulated information that often saves our clients from potential financial hardships.

Are there any drawbacks to focusing on cannabis law?

I am affected by some of the same stigma that all cannabis businesses face; difficulty with banking; being subjected to everyone’s political or moral rants about the issue whether they are for or against legalization; and what I call “green gouging” or over priced services because based on news reports, everyone thinks that we are all marijuana millionaires. And I am committing multiple felonies every time I come to work.

How many people are employed at your law firm?

We have a core team of five lawyers, two paralegals and an additional team of specialist lawyer that integrate into our comprehensive strategic planning as needed.

What are some of the most common issues brought to you by clients?

Generally, clients reach out to us when they have an immediate problem: a rogue employee, partner dispute, or negotiating with a potential investor. My intake process is more intense than most firms. I have a twenty-three-point checklist that prompts discussion of many business law issues that the potential new client has not thought of. In this way, I have a picture of the risk factors and each client’s goals. Using this information, we create a scope of work that details their immediate needs and then documents the secondary and tertiary priorities. From this essential document our clients learn what they need to do, what the associated cost will be for legal services, and the importance of preparing now to save their company problems that can be costly to fix later.

How have you had to adapt your strategy throughout the firm’s existence?

Initially, seventy percent of my clients were women owned businesses and I did everything. It was easy to share and understand the struggles of my client start-up companies because I was just like them; doing all the work, putting in long hours, attending several events a week to meet others in the field, and studying all the regulations. My practice was always about looking deeper than just the immediate need. I designed the growth of the firm around my business experience; I observed the evolution of what legal services were needed and identified how to best use my abilities. A critical step was partnering with noted cannabis trial lawyer, Aaron Pelley. Our complimentary practices brought together the power of both litigation and transactional law experience and diversified what NWMJ Law now provides.  I am able to share the responsibility with a great team of lawyers, each of them skilled in their own practice area.

Does your firm focus on cannabis laws outside of Washington state?

Our firm is serving cannabis entrepreneurs in Washington, Oregon, Alaska, and California. We will be in Hawaii soon. Our goal is to share what no attorneys have in other states, day-to-day experience with the myriad of problems cannabis companies face.

What is most rewarding about being an attorney that specializes in cannabis?

My deep respect for the grit of the entrepreneurs that we represent.

What is the most difficult part of your job?

Not letting the urgent crowd out the important. I make efforts weekly to pull myself out of the everyday problems we solve for client to keep an eye on economic, legal, and regulatory trends so we can continue to define how marijuana law is done well. I watched so many of the medical marijuana lawyers fail to evolve the old methods of practice. I push myself and my team to look for innovative ways to secure interests, solidify contractual relationships, and even re-envision how these companies operate to maximize their ability to grow with the demands of the industry.

What is the biggest obstacle you have had to overcome on your journey through cannabis law?

The stigma that my method of brokering solutions is weak rather than a valid strategy when contrasted with threatening to sue everyone and their brother. Litigation is a failure of every alternative resource a lawyer has at their disposal. I start with finding solutions that involve the exchange of only rights, then money, then ownership, or separation. You see the progress goes from the least to the most disruptive to a business. Filing a lawsuit is expensive, time consuming, and rarely leaves either side feeling that they got what they wanted. Negotiating creative solutions requires a set of skills that are rare in an industry that was born out of outlaws. It is gratifying that as my list of successes grows, business owners are able to better understand that the collaborative resolutions are faster, less expensive, and can lead to mending rifts rather than ending business partnerships. It is a sign that the industry is maturing.

If you could give one piece of advice to a budding cannabis entrepreneur, what would it be?

Make informed decisions. I see people taking life altering chances on business partners, investors, loans, and key employees that can kill a small business before it has an opportunity to succeed. What we can do is provide licensees or license holders with options. I have what few lawyers in the industry have, a broad experience base. I helped 120 small business through the first two years of legal operation. I see that one third are just not able to grasp the concept of following the rules, the middle third gets some of the lessons, but still operate in a reactive manners. My prize clients learn the harsh lessons and have developed into astute business owners. They ask good questions, seek my strategic counsel, and after gathering a good understanding, choose the best solution for them and their company. Of course, the other part of the success equation is hard work and sacrifice.

Thanks again, Anne, for taking the time to answer our questions. If you have questions for Anne yourself, or would like to read more about NWMJ Law and what they might be able to do for you, visit the firm’s website at NWMJLaw.com.

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