Large indoor cannabis plant's cola bud.

Prohibitionists in Arizona Have More Cash on Hand than Pro-205 Campaign

10/03/2016

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Arizona’s anti-legalization campaign Arizonans for Responsible Drug Policy have raised a little more than $2 million this election cycle in a bid to defeat Proposition 205 this November, according to a report from the Arizona Daily Star. The amount is short of the $3.2 million raised by proponents, the Campaign to Regulate Marijuana Like Alcohol, but the prohibitionists currently have more cash on hand, likely gearing up for a last-minute media buy.

According to campaign finance filings with the Secretary of State’s Office, the pro-205 campaign has less than $170,000 on-hand — likely due to spending to get the initiative on the ballot in the first place. The anti-205 campaign has about $1.4 million on-hand and the cash differential could be crucial as Election Day approaches.

Adam Deguire, spokesman for Arizonans for Responsible Drug Policy, said they plan on using the funds for television ads in order to try and convince voters that the recreational initiative is far different from the medical marijuana initiative approved in 2010, and that there are things in the proposition that even those who support legalized cannabis might not want. He argues that by making cannabis more accessible to adults, the measure makes it more accessible to minors.

“This isn’t necessarily a fight about marijuana,” Deguire said in the report. “No one’s arguing here whether marijuana has medicinal purposes. We’re arguing whether it should be legalized recreationally.”

Proponents point out that Prop 205 outlaws the sale of cannabis-infused edibles that might be attractive to children, such as candy bars and lollipops, and that taxes collected from the sector will benefit education.

According to our aggregate of polling data, legalization is narrowly supported by more than 50 percent of Arizonans, with 44 percent opposed.

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Charlo Greene Faces 54 Years in Prison for Cannabis Club Proprietorship

10/03/2016

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In 2014, Charlo Greene made national headlines when she said “Fuck it, I quit” as a TV news reporter for KTVA while announcing her plans to push for marijuana legalization in Alaska. Now, as the owner of the Alaska Cannabis Club, she faces 54 years in prison, according to a report by Newser.

Greene, whose legal name is Charlene Egbe, created the club a full six months before Alaska legalized cannabis for recreational use and began receiving “donations” for cannabis through club “memberships;” the club was raided twice by police and undercover detectives made several cannabis purchases. And, although Greene was not directly involved in any of the purchases, as the club owner, she was charged with 14 total offenses which, if convicted, could see the 28-year-old spend more than a half-century in prison.

In August 2015, when she was first arrested, authorities charged her with 10 felonies and four misdemeanors amounting to a possible 24 years in jail. Since then, another six offenses have been added which raised the total of incarceration time possible — all related to “misconduct involving a controlled substance.”

“Each time, the officers acted outside the scope of the warrant, conducting unlawful body searches on patients, threatening all patients and Club volunteers with arrest if they didn’t consent to taking mugshot-like photos on the scene, destroying cameras, seizing vehicles not included in the warrant and not leaving the lawfully required notice behind,” Greene wrote in a blog post last August which appeared on the Weed Blog.

Subsequently, Greene said the prosecutor “blatantly lied” to the grand jury, saying that because the club was a sole proprietorship there was no corporate liability protection.

Greene says that since her arrest she feels abandoned by those that supported her when she walked out of the TV studio two years ago, and that the prosecution feels like “a modern-day lynching.”

“It feels like I’m in this alone and it shouldn’t,” Greene said in an interview with Complex. “I’m supposed to be part of this huge community and it doesn’t feel like it.”

Her trial is scheduled to begin in January.

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Florida Medical Cannabis Campaign Nets $1M Donation

10/03/2016

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The pro-legalization campaign in Florida has received a $1 million cash infusion from New Approach, a committee that has bankrolled other pro-cannabis campaigns in Washington, Massachusetts, and Oregon, Orlando Weekly reports.  

Ben Pollara, campaign manager for United for Care, said the donation – the largest single endowment made to the campaign thus far – is a “big acknowledgment” to their existing donor base and could be “a huge boon” to their fundraising efforts.

“We are obviously very pleased to receive such a generous donation,” he said in the report. “It’s going to be put to good use very quickly, making sure that our message is on television across the state and that Floridians understand this is about putting medical decisions back in the hands of doctors and patients and out of the hands of politicians.”

Fundraising efforts for the Amendment 2 campaign have also been buoyed by Orlando-based trial lawyer John Morgan, the chairman for United for Care, who has contributed more than $2.6 million to the campaign and “given a blank check” to radio stations for commercials supporting the measure.

“I’m spending a fortune right now,” Morgan said. “I don’t know what the number will be until the month’s over.”

The $1 million donation matches that of casino mogul Sheldon Adelson’s to the Drug Free Florida Committee last month. The Anti-2 campaign has also received $1 million from Tampa Bay developer Mel Sembler and $800,000 from the Carol Jenkins Barnett Family Trust.

Florida is one of four states that will vote on medical marijuana measures during the general election. According to our poll aggregates, voters strongly support the initiative 68 percent to 23 percent.

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The scales of justice sitting on a courtroom table.

Second Company Joins Rejected MMJ Applicant in Maryland Lawsuit

9/30/2016

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A second would-be medical marijuana cultivator in Maryland is joining a lawsuit against the state Cannabis Commission on the grounds that they, too, were unfairly denied a license by the commission, the Baltimore Sun reports.

Maryland Cultivation and Processing is asking to join the lawsuit filed by GTI Maryland because they say that they were initially ranked in the top 15 applicants for a preliminary license, but were excluded in order for the commission to grant the licenses to two lower-ranked companies in Southern and Southeastern parts of the state.

Ed Weidenfeld, a partner and lawyer for Maryland Cultivation and Processing, said the two companies “have been deprived of what [Maryland] not only promised, but voted to do.”

“Our interests are affected by the outcome, and we want to be sure that we’ve got a voice in the trial,” he said in the report.

MMCC Commissioner Buddy Robshaw said that the law requires geographic diversity in its license awards and that the commission acted within the confines of the law.

In addition to the lawsuit, the state Legislative Black Caucus is challenging the approvals because no licenses were awarded to companies lead by minorities or women. Ex-Baltimore Raven Eugene Monroe, an African-American and investor in GTI, said the commission’s decision is akin to changing the rules of a game after it has been played.

“One lesson I learned early in life, and it’s followed me throughout my football career, is that you don’t change the rules after the game has been played,” Monroe said in an Associated Press report. “Yet, that is what happened here.”

The caucus is considering introducing emergency legislation to halt the program and force the commission to reassess the candidates.

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Flower Sales Fall, Concentrate and Edible Sales Rise in Oregon

9/30/2016

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In June, edibles and concentrates became legal to sell to recreational cannabis customers in Oregon, and during that first month the products made up nearly a quarter of the state’s cannabis sales, according to a report by BDS Analytics, outlined by Willamette Week. The analysts said the introduction of the products into the market represent a dramatic shift in recreational market trends.  

According to the analysis, the $15.4 million in flower sales represented 62 percent of the state’s cannabis sales in June — down 23 percent from May. Concentrates comprised 17.3 percent of sales and garnered $4.3 million, while edibles ($1.6 million) represented 6.4 percent of sales in the month, during which overall sales reached $24.9 million.

Prefilled concentrate cartridges made up the lion’s share of concentrate sales with $2.3 million in sales, and candies ($600,000) outsold chocolates ($500,000) and infused foods ($200,000).

“Over Washington’s two years of legal adult-use sales, flower’s share declined from 87 percent to 61 percent,” the report states. “Oregon’s flower dropped immediately to a level that Washington and Colorado took more than a year-and-a-half of steadily increasing concentrates and edibles to reach.”

During the month, pre-rolled joint sales also fell from their 10 percent market share to 7 percent.

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New West Summit Coming to San Francisco on Oct. 14-15

9/30/2016

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The New West Summit 2.0 — coming this October 14-15 to the Hyatt Regency hotel in San Francisco — is a cannabis event that focuses on business and investment strategies, advances in technology, and media. The event offers an atmosphere thick with networking and learning opportunities for professionals, entrepreneurs, and/or investors who are currently involved in or eyeing the cannabis space.

Promising to attract hoards of cannabis-minded folks, the New West Summit 2.0 boasts a truly impressive list of panelists. Sir Richard Branson — the English business magnate, investor, and philanthropist — is slotted for the event’s keynote address.

Esteemed cannabis businessman Steve DeAngelo, known for founding Harborside Health Center in Oakland and for his activism on behalf of medical cannabis patients, is a panelist representing the cannabis industry. Additional panelists here include leading MMJ researcher Dr. Sue Sisley, Cy Scott from Headset, Reggie Gaudino from Steep Hill, Ophelia Chong of StockPotImages.com, Aeron Sullivan of Tradiv, and dozens more industry experts.

Sticking to their theme of bringing the cannabis marketplace into the mainstream, however, organizers have brought on several non-cannabis industry representatives to be featured as panelists, including Forbes Magazine journalist Jason Belzer. The Summit has also secured Susan Bennet — whose voice was used to create Siri, from Apple’s iPhone products — as a panelist speaker and to introduce Mr. Branson for his keynote address.

Panel topics at the Summit will tackle the main three aspects of legal cannabis — medical, recreational, and industrial — from every conceivable angle and perspective. “Vape Technologies Forum,” “Business Software,” “Real Banking & Digital Currency,” “Serious Medicine, Serious Research, Serious Business,” and “Edible Innovations” are just a handful selected from the Summit’s promising 25 panel topics.

There will also be a jobs fair hosted at the New West Summit 2.0. This fair, organized by Bloom Farms, aims to connect dozens of potential employers with hundreds of applicants and job-searchers for a four-hour networking session that starts at noon on Saturday, October 15.

For patrons who find themselves desiring a more entertainment-focused experience, event organizers have also arranged for a VIP party on Friday night and an exclusive musical performance by Zepparella, an all-female tribute to Led Zeppelin, on Saturday evening.

“The industry is finally coming to a point where your street cred, or how long you’ve been in the industry, slowly means less and less,” New West Summit Founder Jim McAlpine told Ganjapreneur. “If you’ve been a grower for 25 years but you can’t understand regulation, I’m sorry, your time’s over. That being said, I see a lot of people who have been around the industry for a long time adopting and adapting, so I think adopting or adapting is what will let people stay in this industry.”

“To me, the radical professionalization and a sweeping mindset to run things like a business versus an overnight opportunity is what the future of the cannabis industry looks like,” McAlpine said.

To learn more about the New West Summit 2.0 you can visit the event’s website. To purchase tickets for the event, you can use this Ganjapreneur-specific link to buy passes at a 50% discount for one or both days — as well as any of the extra VIP and entertainment options.

Ganjapreneur will be sending a team to cover the event, so keep an eye out for us and say hello!

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California Gov. Signs ‘Micro Farmer’ MMJ Law

9/30/2016

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California has several new “micro farmer” medical cannabis cultivator licenses available after Gov. Jerry Brown signed the measure into law, according to a press release from the bill’s sponsor Assemblymember Jim Wood. The “cottage cannabis license” is specifically for farms with 2,500 square feet or less of canopy for mixed-light cultivation, up to 25 outdoor plants; or 500 square feet or less of canopy for indoor cultivation. In total, 11 new types of licenses are available covering a variety of small cultivation operations.  

“This law will help ensure that small medical cannabis growers on the North Coast can comply with regulations as this industry moves forward, providing certainty and predictability,” Wood said in the release. “It’s just not fair to require the small farmers to adhere to the same standards as larger operations.”

The California Department of Food and Agriculture will develop requirements for each license type “that address the unique characteristics of small farm practices.”

“As this industry moves forward, we need to make sure that all farmers, regardless of size, can come into compliance — that’s what success looks like,” Wood said.

According to the bill text, the rules only apply to medical cannabis operations. However, amendments could be made to the law if California passes Proposition 64 legalizing cannabis for recreational use.

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Downtown Denver on a sunny day.

Colorado Edibles Will Carry ‘Universal Stamp’ to Help Prevent Accidental Ingestion

9/30/2016

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Colorado’s new edibles rules, requiring products to be stamped with a diamond and the letters “THC” takes effect on Saturday, the Associated Press reports. The “universal symbol” is designed to give edibles a distinct look even after removed from its packaging.

“We want to ensure that people genuinely know the difference between a Duncan Hines brownie and a marijuana brownie, just by looking at it,” state Rep. Jonathan Singer, the sponsor of the law, said in the report.

The law also changes how products that would be impossible to stamp — such as infused sodas and dissolvable powder — are packaged. Sodas, for example, are required to be sold in single-serve bottles. All of the edibles’ packaging will also contain the universal symbol and the phrase, “Keep out of reach of children,” on top of the childproof zippers and lids already required by the state.

Beginning next year, edibles in kid-friendly shapes — such as fruits, animals, and humans — will be barred from being sold in dispensaries.

“It’s really a step in enhancing public safety and making sure that marijuana is out of the hands of children,” Ron Kammerzell, senior director of enforcement for the Marijuana Enforcement Division said.

According to a 2016 report studying admissions at Children’s Hospital Colorado, more children were treated for accidental cannabis ingestion following the legalization of recreational cannabis in the state — up from 1.2 per 100,000 population the two years before legalization to 2.3 per 100,000 population two years following legalization. From 2009 to 2015, 81 children were treated for ingesting cannabis accidentally; however “poor child supervision or product storage” was responsible in about a third of those cases.

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Understanding Cannabis Trademarks

Understanding Cannabis Trademarks & Intellectual Property

9/29/2016

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What is a Trademark? At the most fundamental level, a trademark is a mark or identifying representation of the source of a good or service that the mark is attached to. When an individual sees a slogan, graphic, or name attached to a product, it is understood that the company who owns that mark must have produced the given product.

Think Nike — when you see a swoosh on a pair of tennis shoes, you know that they were created by the Nike company. You are more likely to purchase them because of the logo’s implicit message of quality.

A Consumer Protection Statute

One can easily imagine why it would be unfair for a new shoe company, Company X, to use the Swoosh on their own shoe line. Here, Company X is specifically using that Swoosh because it wants a potential consumer to believe that Nike created and produced the shoe. Preventing Company X’s unwarranted financial gain on the back of Nike’s hard work is precisely the sort of thing trademark law is meant to achieve.

Types of Marks Eligible for Protection

In evaluating whether or not a mark may receive Trademark protection, the foremost determining factor is the mark’s distinctiveness. Indeed, Trademarks are evaluated on a scale of distinctiveness ranging from “Fanciful”, which is the most unique category of mark and will (nearly) always receive trademark protection, to Generic, which is not unique and will (nearly) never receive trademark protection.

The mark “Google” is the archetype example of a Fanciful mark. Until the search engine company came along, the word “Google” was meaningless and acquired significance only through the company’s use of the word. Conversely, a company that sells lumber could not make use of the word “lumber” as a trademark because it is a generic word. The company is quite literally selling the universally available commodity, lumber, and the mark not is not in any way distinct. 

Gaining Trademark Rights

In order for trademark owners to gain trademark rights on a desired mark, they can:

  1. Start using the mark in commerce in connection to a good or service
  2. Register the mark with the State Trademark Registry
  3. Register the mark with the United States Patent and Trademark Office (USPTO)

While exercising option one affords the Trademark holder the least amount of protection, option three, involving the registration of the mark in the USPTO, grants the greatest amount of protection and gives the owner exclusive, national right to use the mark in connection to the designated good or service.

Cannabis & Trademarks

Trademark law, as it pertains to Cannabis, becomes a tricky discussion because of both the Federal illegality of the substance and the Federal nature of Trademark law. It is certainly true that an individual can receive a Statewide trademark on a cannabis product in a state where Cannabis is legal. Unfortunately, this means that in States where the mark is not registered, the registrant does not have the exclusive rights to its use and other companies are free to use it for their own purposes.

Under the Lanham Act, which governs the process and eligibility of Federal trademark protection, Trademarks cannot be assigned to goods and services that cannot be lawfully used in commerce. As Cannabis is still a Schedule 1 drug under the Controlled Substance Act (CSA), it cannot lawfully be used in commerce and is therefore not eligible for Federal protection.

A Possible Solution

Cannabis companies still intent on gaining Federal Trademark protection may pursue the strategy of producing a supplementary product that does not contain any of the controlled substance, cannabis. For example, an edibles company that sells cannabis infused gummy bears may also produce regular gummy bears and file a trademark on its brand name in connection with the sale of the innocuous candy. This Trademark may serve as an umbrella of Trademark protection for the cannabis infused gummy bear the company sells at a later date.

Ultimately, Trademark law is another victim to the inanity of Cannabis’s classification as a Schedule 1 drug under the CSA. As legalization efforts continue to gain strength and power, we will hopefully see Cannabis fully legalized on a Federal level. Until then, companies (in states where Cannabis is legal) would be wise to minimally file for trademark protection in their local state registry.

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

NORML Scorecard Ranks Federal Lawmakers on Cannabis Policy

9/29/2016

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NORML has released its 2016 Congressional Scorecard, which grades lawmakers on their marijuana policy based on voting records and their public comments on the issue. Just 22 members from both houses received ‘A’ grades, and Democrats (92 percent) received a passing grade of ‘C’ at more than double the rate of their Republican (37 percent) colleagues.

“This analysis affirms that voters’ views on marijuana policy are well ahead of many of their federally elected officials,” Danielle Keane, NORML political director, wrote in the executive summary. “While the majority of Americans support legalizing the use and sale of cannabis for adults, only four percent of Congressional members voice support for this position.”

Of the nine states voting on cannabis initiatives in November, just 11 of the 128 elected officials representing those states in both houses received an ‘A’ grade – eight of those 11 represented California. No legislator from North Dakota, Florida, Arizona, Nevada, or Wyoming received an ‘A’ grade. None of the Arkansas Senators or Representatives scored a grade higher than ‘D,’ and Republican Representative Kevin Cramer is the lone North Dakota lawmaker to receive a passing grade.

“Although many members of Congress are increasingly becoming aware of this changing public sentiment, federal leadership on the issue of marijuana law reform is still sorely lacking,” the summary states.

Several marijuana-related measures are pending before the 114th Congress, but no bill has made it to the floor for a vote.

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Leaf from a hemp plant, spread wide in an outdoor scene.

North Dakota Hemp Harvested Under Ag Department Pilot Program

9/29/2016

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North Dakota farmers are harvesting their first legal hemp crops under the state Agricultural Department’s experimental program, according to a Bismarck Tribune report. Just five growers are approved under the pilot program, which aims to research the growth, cultivation and marketability of industrial hemp.

One farmer, Clarence Laub, yielded roughly 5,000 pounds from his 10-acre plot, but said only 5 acres were actually viable due to varied seed depths at planting and the timing of rain. His plants were grown from Canadian hemp seed provided under the state program.

“I harvested all of it, even through the open, weedy areas,” Laub said in the report. “If I had left those, I don’t think it would’ve made much difference in the yield.”

About 35 percent of Laub’s crops will be reduced to oil, and the rest will be ground for hemp flour. Both products will be sold at a local specialty store under the Laub Farm label.

According to Rachel Spilde, the director of the program, other producers have reported yields ranging from 860 pounds to 1,125 pounds per-acre, worth $1 per-pound. The input cost of the plant is $280 per-acre.

“That’s better than a lot of commodities right now,” she said. “Without a doubt, there was a lot of value in this program. There were some good yields and very few hiccups.”

The Agriculture Department will announce its research goals for the next round in October when new grower applications are due.

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School-yard bully kicking a soccer ball at unhappy students.

Cannabis Taxes to Fund Anti-Bullying Programs in Colorado Schools

9/29/2016

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Surplus cannabis tax revenues in Colorado will fund a new bully prevention program, according to a KMGH-7 report. The state Department of Education grant is offering $40,000 per school per year for the program.

Dr. Adam Collins, bullying prevention and education grant coordinator for the Education Department, called the program “a great opportunity for schools” to ensure students’ “social and emotional wellness is taken care of.” The grant will provide schools with specialized training from a bullying prevention coach and evidence-based anti-bullying programs. Each approved school will also form a bully prevention committee comprised of faculty and parents.

“As far as we know, we’re the only state that is providing such significant funds to prevent bullying in schools,” Collins said in the report. “We are excited to have these funds.”

The funding comes from Proposition BB, which allows the state to keep extra tax revenues from legal cannabis sales — currently amounting to about $66 million.  

“It’s more than just teachers doing lessons,” Collins said. “It’s about changing the culture of the school so that it’s a warm environment. So it’s somewhere that bullying can’t thrive.”

Schools have until Oct 21. to apply for the grant, and 50 schools will be announced as grantees on Dec. 30. The funds will be distributed in January.      

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A cannabis plant's cola nestled among the branches and leaves of a large marijuana grow.

Oregon Officials Consider Delaying Implementation of New Cannabis Industry Rules

9/29/2016

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Many cannabis businesses are not yet ready to comply with Oregon’s new testing, packaging, and labeling rules and are asking officials to extend the implementation of the new regime for at least 30 days, The Oregonian reports. The new rules are set to take effect on Oct. 1.

During a meeting with legislators on the joint committee that oversees the rules, Amy Margolis, a lawyer representing the Oregon Cannabis Association, said the extension is “crucial for the survival of many, many businesses.”

The committee members seem open to an extension. Sen. Floyd Prozanski said he supports a 90-day extension, and moving the deadline to the end of the year offers a “clear break point” for the industry. He said the state had failed to get enough labs online to test products before they would be put on dispensary shelves.

“We have actually in good faith tried to get everything together and we know it didn’t come together,” he said in the report.

Cameron Yee, owner of Lunchbox Alchemy, a Bend-based edible and extract maker, said he was forced to throw out $8,000 worth of packaging that didn’t meet the state requirements; and was forced to halt production and lay off 10 people due to delays in the approval process.

“It’s a disaster,” he said in the report. “We are trying. We are not going to make it by Oct. 1. We are not going to have product on the shelf.”

However, some lab owners — who have invested tens of thousands of dollars in their laboratories — are fighting the extension. Anthony Smith, Evio Labs chief science officer, called the potential delay a move right out of the Big Tobacco playbook.

“…Like hey, you need to move the rules so we can continue our unregulated commerce of a potentially dangerous product,” he said.

Smith argues that if the rules are delayed it would allow producers to continue bringing their products to labs that are not yet up to the new state standards — “exactly the opposite of what Oregon wants from all this.”

“We can’t compete with them,” he said. “This will take the good labs and wipe them off the earth and the nefarious, unqualified labs will completely control the market.”

Longtime industry activist and dispensary owner Don Morse said more delays will “embolden the industry to procrastinate.”

“The time has come where it is incumbent on us to step up and do what needs to be done, to launch the recreational system in a meaningful way,” he said.

According to a spokesman for the Oregon Health Authority, “no decisions have been made” regarding an extension.

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A Canadian flag using a cannabis leaf instead of a maple leaf.

Canadian MMJ Company Offers Nation’s First High-CBG Strain

9/28/2016

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Whistler Medical Marijuana Corporation has released Canada’s first high cannabigerol (CBG) oil following two years of research and development, the company announced in a press release. While the non-psychoactive compound is not as well studied as THC or CBD, research suggests it is a useful therapy to combat inflammation, nausea, and pain, and slows the proliferation of cancer cells.

“Basic research has indicated that CBG exerts a variety of effects in cell culture and animal models including acting as an anti-inflammatory, analgesic and anti-fungal,” Brishna Kamal, WMMC’s director of medical research, said in the release. “It is currently being investigated for a possible treatment for many disorders including cancer, glaucoma, inflammatory bowel disease, different types of pain, and even neurodegenerative diseases such as Huntington’s.”

The oil contains both CBG and THC in a 3-to-2 ratio and will be released exclusively to patients registered with the company in order to help them determine which conditions are effectively treated by the product.

Daniel Lantela, chief science officer and creator of the cannabis oil program, said the company’s products attempt to retain the “entourage effect” and they are “dedicated to unlocking the full potential of the cannabis plant for all patients in medicinal need.”

The high-CBG offering is the first of its kind in the country.

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Report: Indoor Cannabis Grows as Energy-Intensive as Data Centers

9/28/2016

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According to new data by EQ Research, indoor cannabis grows are as energy-intensive as data centers, with energy intensities of 2,000 watts-per-square-meter — “50 to 200 times more energy-intense than a typical office building.”

According to the report, lighting, air conditioning, and venting and dehumidifying represent 88 percent of all energy used during an indoor grow. In 2014, such grows represented 0.4 percent of Colorado’s electric usage; however, according to the Public Service Company of Colorado, marijuana businesses have been growing by about 40 percent to 60 percent annually, which means cannabis cultivation might have accounted for 1.4 percent of the state’s energy usage in 2015. Washington’s Northwest Power and Conservation Council estimated that grows used 1 percent of the total energy demand in the state in 2014. According to the report, the utility bills for cultivators can range from $3,000 to $100,000 per month.

Because canna-businesses are prevented from accessing financial institutions, they are not able to qualify for tax deductions when installing more energy efficient systems, and smaller operators might not have the capital to invest outright.

“The financing they receive to build or expand their businesses comes with extremely high-interest rate loans — anecdotally, as much as 15 to 20 percent — meaning producing marijuana in high quantities is paramount,” the report states. “This discourages marijuana growers from spending more to install energy-efficient equipment or on-site renewable generation, such as solar panels.”

The authors suggest that energy companies in legal states begin tailoring energy-efficient rebate programs that cater to the cannabis industry and that governments include clean energy language in their cannabis policies.

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Blockchain Startups Eyeing Colorado Cannabis Industry

9/28/2016

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While most canna-businesses are left without access to traditional financial institutions, some Colorado companies are turning to non-traditional enterprises in order to cut down on the number of cash transactions. One such enterprise, the blockchain startup Tokken, is targeting the 75 percent of cannabis businesses operating without bank accounts in Colorado.

Tokken provides an online banking experience, using an indelible blockchain ledger to ensure proprietary compliance and data integrity. Tokken allows app users to link their bank accounts and credit cards and then pay using their online wallet at any dispensary that accepts “Tokkens.” Not only can dispensary customers use the digital currency at retail locations, but dispensary owners could use it to pay their suppliers, employees, and anyone else that has the Tokken app. The Tokkens can be transferred from the app and converted into US dollars.

Lamine Zarrad, Tokken’s founder, suggested that many banks won’t serve the industry because their books are easy to manipulate due to the cash-only nature of the business.

“At the end of the day, they rely on us to make sure those transactions are not tampered with. When you have blockchain security, it takes away the uncertainty factor,” Zarrad said in the Motherboard report.

Cannabis Hemp Exchange (CHEX) co-founder Eugene Lopin explains that because blockchain data is decentralized and stored across multiple servers, it is “trustless” — users no longer need to trust the company to have data integrity. CHEX “provides transparency and audit ability into wholesale cannabis transactions,” Lopin said, which allows regulators to look into the blockchain to see a transaction instead of having to request an audit of the company’s central server.

This type of access is important because it will allow agencies to keep tabs on the seed-to-sale system imposed by most cannabis legislation.

“When we have a lot of data and regulators want to see what’s going on, it will be transparent for them,” Lopin said. “You’re putting out a message that your company has integrity.”

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Patient Counts Down in Recreational States

9/28/2016

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In states with recreational cannabis, medical marijuana patient counts have dropped, according to research by GreenWave Advisors. The culprit — a combination of medical cannabis overregulation in states that adopt recreational cannabis, the DEA’s refusal to reschedule cannabis which forces many doctors to shy away from recommending the drug, and that many people registered in medical marijuana programs were actually retail customers gaming the system.

According to a Forbes report outlining the analysis, the researchers did not include Washington and Alaska in their patient counts because patients are permitted to grow their plants at home, making it hard to count — additionally, Washington’s new patient database is also likely to have steered many patients away from the state’s “medical cannabis” options. The report authors note that in May, cardholder applications were down 73 percent in Arizona “perhaps in anticipation of a favorable election outcome for recreational use.”

The report says that even in medical markets, sales follow retail purchasing habits and jump during the holiday season, the summer, and in preparation for 420 celebrations. These markers indicate that many medical cardholders are purchasing cannabis as a commodity.

Analysts predict that many states will begin to merge the regulatory duties of the medical and recreational markets, and it’s possible states will “medically endorse” some recreational dispensaries.

This is not to mean that the medical marijuana market will cease to exist — it could recalibrate as more doctors become involved and more targeted drugs and strains become available. However, the analysts suggest that recreational sales will certainly exceed medical sales in states where they are permitted.

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A scattered stack of $100 bills in USD.

Calaveras County, CA Has Collected $3.7M in MMJ Fees But Hasn’t Awarded a Single License

9/27/2016

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Despite collecting more than $3.7 million in fees, not a single cannabis farm has been approved by California’s Calaveras County Planning Commission, according to a Calaveras Enterprise report. More than three months after the deadline for applicants, 27 applications have been denied and just three of those denials have been appealed to the Board of Supervisors.

In total, the Planning Department has received 995 registration applications; 181 for personal-use cultivation, 740 for commercial cultivation, and 74 for caregivers. Fees for commercial cultivation licenses run $5,000 annually; personal cultivator license fees cost $100 per-year and caregivers must pay $200 a year. The money from the fees can only be spent on enforcement and the cannabis registration program. So far, the department has billed $304,425.31 for salaries, benefits, services, and supplies.

Meanwhile, the Board of Supervisors has used the proceeds from the fees to hire a new sergeant and six deputies for the Sheriff’s Office, and hired 29 full-time and part-time positions to serve the medical cannabis program.  

In a report outlining the current problems beleaguering the program, Planning Director Peter Maurer said that the lack of issued licenses is due to the “complexity of review by multiple departments and the need to verify each item before issuing a registration.”

“Once we find a point where the applicant has failed to comply with the ordinance, we stop the process and issue a denial. There’s no reason to take valuable staff time to continue once we’ve reached that point,” he said in the report.

Maurer said he has increased his staff from six to 10 to help process applications. The department had initially planned to process 300 to 400 applications but had “conservatively budgeted for 200.”

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A commercial indoor growing op in Washington state.

Connecticut to Begin Accepting MMJ Research Applications

9/27/2016

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Connecticut’s Department of Consumer Protection will begin accepting research application on Oct. 1 that would allow approved hospitals, growers, universities, and dispensaries to conduct medical cannabis research, the Hartford Courant reports. The research would supplement the limited federal research on the palliative effects of the plant.

The plan is included with recent reforms to the state’s limited medical marijuana program, which will also allow patients under 18 to access medical cannabis.

Jonathan Harris, commissioner of the department, said the program not only helps patients “suffering from serious diseases” but offers doctors alternative treatment options and creates “good jobs” in the state.

“With this new research program, Connecticut could become the focal point for medical cannabis research and add to the strong bio-tech base already here,” he said in the report.

Currently, just 259 people are employed in the state’s medical cannabis industry; the Department of Consumer Protection suggests that number “could increase significantly” under the new rules.

Matthew Katz, executive vice president and CEO for the Connecticut State Medical Society, said the new rules are “a step in the right direction” and “allow for an increased amount of research in the area of the effectiveness as well as the other aspects of medical marijuana … the side effects and more that really needs to be studied.”

According to Harris, the program would make Connecticut the first to have an “organized, focused research program.” The state reclassified cannabis as a Schedule Two drug in 2012.

Currently, there are 13,434 patients enrolled in the Connecticut medical marijuana program, with four licensed growers and eight dispensaries.

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Large cannabis plant's cola, ready for harvesting.

MassRoots Defaults on Six-Month Promissory Notes

9/27/2016

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According to a Sept. 21 Securities and Exchange Commission filing, the Denver-based social media network MassRoots disclosed that it was unable to make $966,000 in mandatory payments to creditors who purchased six-month convertible secured promissory notes in March, and is now in default on those notes.

The default was partly triggered when one of the creditors, DiamondRock, sought to convert $25,000 of promissory notes. Two other holders, unnamed in the filing, provided the company with formal notices of default; which, according to the terms of the notes, require the company to pay 130 percent of the outstanding principle of the note with 2 percent interest every month the balance remains unpaid.

According to the filing, the company owes $1,256,170 on those defaulted notes. Under the terms of the default, the company issued 319,008 common stock shares to its creditors. The company had issued 51 million shares of common stock as of Aug. 17, which is traded on the over-the-counter market OTCQB as MSRT.

According to a Sept. 26 letter to shareholders, CEO Isaac Dietrich announced the company eliminated $146,000 in monthly expenses by “terminating relationships with certain vendors” and shrinking its workforce from 33 full-time employees to 19. The letter also outlines their partnerships with cannabis business intelligence firm Headset, and point-of-sale technology company Flowhub, which Dietrich said will expand the company’s offerings and capabilities of the Massroots platform.

“I know these past few months have been frustrating in the public market for our stock and as the company’s largest shareholder, I have used this opportunity to add to my position,” Dietrich said in the letter. “Fundamentally we believe that Massroots is in a stronger position than ever while the 2016 elections have the potential to significantly accelerate the growth of the cannabis market.”

On Sept. 23 the company announced a 2016 Equity Incentive Plan, which reserves issuance up to 6,000,000 shares of common stock for issuance in connection with the recruitment and retention of employees, directors, and consultants.

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A police officer handcuffing a citizen.

FBI Report: Cannabis Arrests at Lowest Point in a Decade

9/27/2016

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Arrests for simple cannabis possession have fallen to their lowest point since 1996, according to new statistics released by the FBI. In 2015, 574,641 people were arrested for simple possession, representing a 25 percent drop from the near 800,000 peak in 2007. However, those numbers do not represent great news, as the figures add up to more than one arrest for simple cannabis possession every minute, according to a Washington Post report.

The FBI data, though, suggests that law enforcement officers are committing less time to cannabis enforcement compared to other drugs. In 2010, cannabis possession and sales accounted for 52 percent of all US drug arrests, compared to 43 percent in 2015. The data purports that police have been making more arrests for possession of heroin, cocaine, and other non-narcotic drugs.

According to a 2013 ACLU report, cannabis enforcement has cost taxpayers $3.6 billion; and while black and whites were found to use marijuana at similar rates, black users were four times as likely to be arrested for cannabis possession as their white counterparts. The ACLU estimates that a typical marijuana arrest costs about $750, excluding any adjudication or detainment costs.  

“It’s unacceptable that police still put this many people in handcuffs for something that a growing majority of Americans think should be legal,” Tom Angell, communications representative for the Marijuana Majority, said in the Post report. “There’s just no good reason that so much police time and taxpayer money is spent punishing people for marijuana when so many murders, rapes and robberies go unsolved.”

Still, the federal government has not acted to decriminalize or reschedule cannabis despite the record number of states who will vote on cannabis measures in November.

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Arkansas' state flag flying before a cloudless sky.

Poll: Arkansans Favor MMJ Amendment Proposal Over Act with Grow-Your-Own

9/26/2016

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According to the latest Talk Business & Politics/Hendrix College poll, Arkansas voters favor the Arkansas Medical Marijuana Amendment over the Arkansas Medical Cannabis Act, seemingly due to the lack of the grow-your-own provision in the amendment.

In the survey, respondents were asked about the proposals and given details about what set them apart from each other. The majority, 49 percent to 43 percent, indicated they would support the amendment; which limits the number of dispensaries to 40, controlled by the Alcoholic Beverage Control Division.

The Arkansas Medical Cannabis Act, which was approved for ballot inclusion before the amendment, was supported by just 36 percent of respondents, compared to 53 percent opposed. The act permits for individuals living more than 20 miles from a dispensary with a “hardship certificate” to grow up to 10 plants for personal use.

Dr. Jay Barth, political science professor at Hendrix College, said that both proposals are still in court battles that could disqualify them from the ballot, but the poll results indicate “voters have thought about the topic a great deal” because of the small percentage of respondents who indicated they had no opinion.

“Assuming both measures are on the ballot, the key questions are whether the supporters of the two measures attack one other in the weeks ahead (joining the full-throated opposition to either measure coming from the state Chamber of Commerce, the Hutchinson administration, and health care leaders) and whether the apparent knowledge of the differences between the two measures will overcome voter confusion that often shows itself on ballot measures on election day,” Barth said in his analysis.

If both measures are passed by voters, the one with the most votes will supersede the other. Arkansas is one of four states that will be voting on allowing medical marijuana in November.

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An indoor cannabis grow facility in Washington state.

Cannabis Seizure Drug Shows Success in Latest U.S. Trials

9/26/2016

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GW Pharmaceuticals’ cannabis-derived Epidiolex showed “high statistical significance” in its third late-stage clinical trial in the U.S., meaning it’s shaping up to be an extremely effective treatment for patients with epilepsy, according to a report from the Telegraph.

The recent study tested the drug’s value for children and adults diagnosed with Lennox-Gastaut syndrome, characterized by impaired intellectual functioning, developmental delays, and dozens or seizures per month.

The successful trial puts the Britain-based company on track to file the drug with the FDA in the first half of 2017. According to Reuters, if it is approved it would become the first drug sanctioned by the FDA to be made from organic cannabis. The company will be able to submit the drug for two different types of epilepsy due to an agreement with the FDA, and a European launch of the drug would likely follow an approval in the U.S.

“As a body of data we now have three positive phase three trial results,” Justin Gover, GW chief executive, said in the Telegraph report. “These are very robust findings and provide a compelling case to support the efficacy and safety of the drug with US regulators.”

The company has been collecting funds in anticipation of the launch. In July, it added $300 million from U.S. investors, and it has earmarked about $500 million to help fund the rollout of Epidiolex in the states.

The Children’s Hospital Network in Australia is also conducting trials of the drug.

To learn more about how cannabinoids and the endocannabinoid system can be used to treat epilepsy, you can hear it explained by cannabis researcher Dr. Ethan Russo — formerly Senior Medical Advisor for GW Pharmaceuticals — on the Ganjapreneur Podcast.

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Daniel Yazbeck: The Future of Personal Chemical Analysis

9/26/2016

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Daniel Yazbeck is CEO of MyDX, a company which aims to produce the first widely-used consumer devices for personal chemical analysis. The company’s first device, CannaDX, which he himself created, is geared toward testing cannabis for cannabinoids and terpenes. Retailing at $699, it is a handheld device that accepts small cannabis samples to perform tests on, and it communicates with a smartphone app to display & analyze the data. The company also offers a free certified lab test to anyone who purchases a unit, as a testament to its accuracy.

Daniel recently joined us for a discussion about his company’s invention, how they are tracking user-submitted data to map medical effects to specific chemical profiles, and what advice he has for anyone who is looking to develop technology geared toward the cannabis industry. Read the full interview below!

Ganjapreneur: When did you first begin developing MyDx, and what spurred the decision to produce a personal chemical analysis device?

Daniel Yazbeck: We began MyDx because no device existed that could help patients and consumers better understand and track the chemical composition of cannabis to find a strain that works for them. As we developed the idea of a handheld chemical analyzer, we learned more about harmful pesticides and chemicals in food, water and air. We found that there was currently no practical solution for consumers to understand the chemicals in the food they eat, the water they drink, and the air they breathe. We created the MyDx Analyzer in order to empower consumers to Trust & Verify everything they eat, drink & inhale in an affordable, practical, and real-time manner.

Why launch the product initially for cannabis analysis?

Because there was a clear need for this device in this industry. Also, we strongly believed we were on the right side of history when it comes to the politics of cannabis, and we believed that the cannabis industry needed a friend in science & technology. Hence, we focused our efforts here first.

How does MyDx work?

Chemicals from the sample are exposed to our sensors which react with the chemicals to generate a signal that we detect and report to the consumer via a smartphone app. To learn more about the process, please click here. To watch a video of the device in action, please click here.

Have you run tests to compare MyDx to labs that perform chemical analysis? If so, how does MyDx compare?

Yes, in our trials we found that MyDx tested THC results within a margin of error under 20% when compared to labs for most samples. We have found that our device is very consistent and our feelings prediction engine is also consistent. We have more work to do to improve the accuracy of testing for chemicals like CBD as well as certain terpenes that are critical to the efficacy of cannabis as a plant. More information can be found here.

What is the “feelings prediction engine?” Are you saying, based on the device’s analysis of a sample of cannabis, that you are also able to predict to some degree what kind of effect it will have on the consumer?

Yes we can predict the feelings experienced by consumers with MyDx by measuring a fingerprint of each cannabis sample (its chemical profile) and asking the consumer: “How did this make you feel, and what did it help you relieve?” By crowdsourcing all of this data we are able to predict a feeling based on the chemical profile results generated with MyDx by recalling similar MyDx tested samples in our database and feelings associated with those samples. The more you test samples and associate them with feeling with your personal MyDx Analyzer, the MyAlgorithm feature will become smarter in predicting how each sample will impact you individually v. the crowd.

In the tests you have run to date, is it common for one particular strain/cultivar to always show similar results as far as these feelings predictions go, or does it depend heavily on the particular sample / crop? For example, have all tested samples of Girl Scout Cookies returned similar results, or does it vary from batch to batch?

The chemical profile of different Girl Scout Cookies can vary greatly from batch to batch (assuming you have the same genetics), especially in terms of the terpenes, which can impact the way a sample makes you feel.

How much of a sample is needed to perform a test with MyDx?

50mg.

Are samples destroyed during the testing process?

The chemical composition of the sample will be altered during the testing process.

Do you hold patents on the MyDX device, the technology it harnesses, or the software you have developed?

Yes, we hold patents on our proprietary sensor technology, on the hardware, software and algorithms.

What has been one of the biggest obstacles you’ve faced while developing the technology and launching the company?

In both developing the product and the company, the greatest challenge was trying to factor in everyone’s opinion and still keep the original vision and product on track.

How has the decision to go public changed your daily operations and your business as a whole?

You are running two separate companies, a private company and public company. You have to create a market for your product in the private company, and you have to create in parallel a market for your stock in the public company. It is like running two separate companies that need to work closely together to succeed. For the public company, be prepared for all the legal & regulatory compliance and additional expenses required to operate effectively.

What is the most significant mistake you have made while building the business?

The biggest mistake we made was listening to the wrong people and growing too quickly. Who you listen to is probably the most fundamental influencer of the success of your company. Every decision you take will catch up to you, you will be dealing with the clean up of that decision or celebrating the result. Listen to the right people and follow your gut or it will take you a lot longer to reach your goal, assuming you have the determination to do so.

What’s next for MyDX?

MyDx is now focused on deploying the AquaDx Sensor (tests for harmful chemicals in water), the AeroDx Sensor (tests for harmful chemicals in air), and the OrganaDx Sensor (tests for pesticides in fruits and vegetables, as well as cannabis). After that is complete, we plan to come back and launch CannaDx 2. We will make announcements of what this will look like in due time. Stay tuned.

How do you think portable chemical analysis devices such as MyDx will affect our daily lives over the next 5 years?

They will empower consumers to trust & verify in a practical way what they put into their mind and body for the first time in history. Furthermore, the data generated by MyDx consumers worldwide will be shared globally to improve people’s lives by allowing them to see the chemical composition of what they eat drink and inhale.

How about the next 20 years?

You will have something like the “tricorder” from Star-Trek and you will be able to put in any sample and it will tell you the chemical composition.

What do you think the future of the cannabis industry looks like?

The cannabis industry will become more mainstream. Companies will mature and provide a more consistent product to consumers that are more tailored to their specific needs. Samples will be delivered to your doorsteps with ease, the Amazon of cannabis will emerge. You will order by design (once there is more understanding of the chemical profile of cannabis samples and how it impacts individuals reactions to that sample, patients will be able to tailor their medicines in a very sophisticated manner so they can achieve the exact desired goal.

What is one piece of advice that you would give to someone with a technology background who is interested in finding a cannabis career?

Find a need and go fill it, make sure the technology you choose is robust enough to accommodate the variability you will encounter in the field when consumers get their hands on your device. Consumers are lazy and will always follow the path of least resistance: make it easy or it will fail.

Thank you, Daniel, for taking the time to answer our questions and bring this information to light! If you have more questions about MyDx, you can visit the company website at www.cdxlife.com. You can also learn about their upcoming water sensor technology, AquaDX. This month, free shipping is available and customers may use the coupon “MYDXISO” for a $50 discount. As mentioned in the introduction, a free certified lab test from SD Pharm Labs is available to anyone who purchase MyDx.

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