Inside the Maryland Senate chambers.

Maryland MMJ Commission Moving Forward with Licensing Process

11/22/2016

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The Maryland Medical Cannabis Commission is set to award preliminary medical cannabis dispensary licenses on Nov. 28, despite three lawsuits and threats by the leader of the Legislative Black Caucus to introduce legislation to start the process over again due to the lack of preliminary cultivation licenses to minority owned companies.

According to the Washington Post report, the dispensary applicants will be approved in the same manner as their cultivating counterparts — the applications will be scored by a third-party and their identities will be unknown to the board. The winners will be announced on Dec. 9.

The blinded process used by the board is partially responsible for the controversy that has marred the medical marijuana program in the state thus far. Maryland Del. Cheryl D. Glenn, the leader of the Black Caucus, has suggested that the commission has “no oversight” and “no diversity” and she is pushing for the process to be started over. Maryland Cultivation and Processing and GTI Maryland have sued the commission over their cultivation application denials, alleging that they were unfairly bumped from their initial high rankings over “geographic diversity” requirements in the law. Alternative Medicine Maryland, a minority-owned Annapolis-based company, has also sued the agency, alleging that they “ignored race and ethnicity throughout the licensing process in clear contravention of its authorizing statute.”

Vanessa Lyon, spokeswoman for the commission, said that businesses awarded preliminary licenses must pass additional vetting before they can begin operations and that it is “premature to characterize” the industry’s diversity before any company is fully approved to operate in the state.

“The commission believes it is in the best interest of sick people to move the pre-approval process forward, however, the commission is committed to working with the legislature on these complex issues,” she said.

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A sunny view of Seattle and Mt. Rainier.

Seattle Raises Dispensary Licensing Fees

11/22/2016

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Seattle’s City Council has approved a $500 increase in dispensary fees, raising them from $1,000 to $1,500 for the city’s existing 48 shops, according to a KIRO report. The hike is a compromise from the more than 400 percent increase proposed by local lawmakers two weeks ago. The increase also applies to out-of-town businesses selling supplies to Seattle dispensaries, who now must pay $750 for their license.

Logan Bowers, president of the Cannabis Organization of Retail Establishments and owner of #hashtag dispensary, said he was “pretty happy” that the city backed down from the proposed three-fold fee surge.

“While we are thrilled to work with them on the issue, there still is a lot more that needs to be done,” he said in the report. “It’s a reasonable compromise for now.”

The 400 percent increase was proposed by Councilmember Tim Burgess, who said the larger fee would help the city offset the costs of industry enforcement and regulations. Burgess indicated that linking the licensing fees to regulation costs is not off the table and the council could revisit the issue in the coming year, and that the council would likely confer with city accountants to determine if it would be better public policy.

“That’s a big question,” Burgess said, “whether or not the city should charge businesses the full cost of enforcement of business regulations.”

Seattle has raised about $2 million in revenue from the legal cannabis industry to date.

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Young cannabis plant with red-colored stem.

Fifth MMJ Company Will Begin Trading on the Australian Stock Exchange Tomorrow

11/21/2016

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Medical cannabis company Zelda Therapeutics will hit the Australian Stock Exchange tomorrow, according to a Proactive Investors report. Zelda will become the fifth medical cannabis company to be listed on the exchange, following a reverse takeover by Gleneagle Gold Ltd.

The move comes after the U.S.-based medical cannabis group – Aunt Zelda’s – was spun off and subsequently raised $4 million and transitioned into a publicly listed company, the report says. The funds will be used to continue its pre-clinical research and development, fund human clinical trials and expand the management and advisory teams.

Due to its success treating patients in California, Aunt Zelda’s boasts an extensive network on human data related to medicinal cannabis-based products and treatments; Zelda Therapeutics has been granted a worldwide, exclusive and perpetual license to this data and to other related systems, treatment protocols and formulations owned by the California-based firm. The flagship Aunt Zelda’s is continuing its California operations. The company has focused throughout the years on developing products for treating skin conditions, insomnia, and cancer.

Zelda Therapeutics has also forged partnerships with AusCann, the University of Madrid and New Frontier Financials.

Zelda will join Creso Pharma, MMJ Phytotech, MGC Pharmaceuticals, and Medlab Clinical as cannabis companies listed on the exchange.

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A bartender prepares a cocktail.

Colorado Revenue Department Bans Cannabis from Establishments with Liquor Licenses

11/21/2016

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The Colorado Department of Revenue has adopted new regulations preventing businesses that serve alcohol from obtaining a license to allow cannabis use at their establishment, according to a KCNC report. The rules are supposed to help clarify where cannabis consumption will be allowed following the passage of Denver’s social-use initiative.

The denial comes at the behest of the state Liquor Enforcement Division, who cited studies that showed dual consumption leads to higher impairment, which could increase the likelihood of traffic accidents for people under the influence of both cannabis and alcohol.

Peter Penzenstadler, a local bartender, said that he was on board with the regulations because mixing alcohol and cannabis could dangerous for some patrons.

“Alcohol messes up people well enough,” he said in the report. “[If you] add that marijuana to it, we can’t be in control of the customers for a safety standard as well.”

However, the rule throws a wrench into the rollout of Initiative 300. According to a Denver Post report, state law bars dispensaries from allowing on-site consumption, and while Marijuana Policy Project communications director Mason Tvert called the rule “absurd,” he said the decision “doesn’t completely hinder the entire law.”

“Remember that this whole thing kind of got started with the Colorado Symphony Orchestra fundraiser that was held in an art gallery,” he said. Due to the event’s cannabis theme, the city sent a letter to the event organizers warning them that their plan was illegal. It was later changed to an invite-only event.

“It is astonishing that the Department of Revenue is so openly fighting a turf battle on behalf of the liquor industry,” Tvert said. “This will not prevent adults from using marijuana and alcohol at the same time, but it will ensure that the marijuana gets used out in the alley or on the street rather than inside of a private establishment.”

City officials are currently developing plans to implement the new law.

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Maine and Mass. Legalization Could Affect Possession Laws in New Hampshire

11/21/2016

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A New Hampshire Democratic state Representative called the adult-use cannabis legalization in Maine and Massachusetts — two of New Hampshire’s border states — a “game changer,” saying it could pressure the state legislature to at least consider decriminalization of cannabis possession, according to a Seacoast Online report.

“There’s going to be a product that’s legally purchased and available to people on our borders,” Rep. Renny Cushing said in the report. “With that same product, someone goes to New Hampshire, they could have someone put in jail for a year.”

New Hampshire has a limited medical marijuana program, which does allow for out-of-state reciprocity for conditions listed on the state’s own qualifying condition list. According to an August report from the New Hampshire Union Leader, about 1,300 patients are registered under the New Hampshire program.

However, just because people could be driving through the state with cannabis legally obtained in either Maine or Massachusetts, at least one law enforcement official does not intend to increase efforts to arrest people for cannabis possession. Hampton Police Chief Richard Sawyer says he has more prominent priorities, such as the opioid crisis.

“In the world we live in today, there are much more serious issues we are dealing with,” Sawyer said in the report. “I have no intentions of increasing our efforts in that area.”

Nevertheless, Portsmouth Police Chief Davis Mara said until the legislature changes the state law regarding possession he would continue to make arrests.

“The bottom line is we have to enforce the law,” he said.

Seakbrook Police Chief Michael Gallagher suggested that people in possession of cannabis need to make sure they know where the New Hampshire border is because some roads weave throughout the borders.

Gov.-Elect Chris Sununu said he would support decriminalization legislation but that jumping “all the way to full legalization” was not a step the state should consider taking until it’s clear how other states deal with their new laws.

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Share Your Opinion on Marijuana Marketing

11/21/2016

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adistrylogo2Adistry and Ganjapreneur have teamed up to present The 2016 Cannabiz Marketing Survey. This report will benchmark the tactics, challenges, opportunities and priorities of marijuana marketers across the country.

We need your help:

All eyes are on America’s fastest growing industry — but how do companies guarantee that they get the right eyes on the many different cannabis brands and retail locations popping up?

This is your chance to help influence the current and future state of cannabiz marketing. Your shared knowledge and insights will help lead to the understanding of key trends and data points to help cannabis companies, and the industry as a whole, better engage canna-consumers in 2017.

Please take 5 minutes to fill out the 2016 cannabiz marketing survey. It’s only 10 questions and completely anonymous.

To show how much your feedback is valued, you will be entered to win awesome prizes like the Eco Stash Bag from Stashlogix, once you complete the survey. Winners will be announced the first week of January!

Plus, survey participants will receive the report before it is released to the general public.

You can take the survey here.

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Alaska's state flag.

First Dispensary Opens Today in Alaska’s Kenai Peninsula

11/21/2016

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The first recreational dispensary in Alaska’s Kenai Peninsula opens today, according to a report from the Alaska Dispatch News. The owners of Red Run Cannabis will be selling cannabis grown by Greatland Ganja as their first in-house products won’t be ready for sale until mid-January.

Marc Theiler, one of Red Run’s three owners, said they want to keep it “really simple” for their customers, opting to sell eight different strains in 1, 2 and 4-gram packages and pre-rolls.

“Our goal was to get the Kenai Peninsula legal ganja before Thanksgiving,” he said in the report.

However, Theiler said that in the early going keeping their supply of flower could be a challenge until “around Christmas” due to their own plants not being ready and the limited supply chain in the early stages of Alaska’s legal market.

“We built the cultivation and retail from scratch,” Theiler said. “With the retail we had a bunch of things fall into place.”

The shop will be open Monday through Wednesday but closed on the mid-week holiday. They plan on reopening on Friday and having regular business hours until they are sold out.

Nearly two years after voters approved an adult-use referendum, dispensaries have opened in Valdez and Fairbanks. Licensees in Anchorage indicated they will open in the coming months.

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Image Matters: Why Dispensaries and Cannabis Producers Should Invest in High-Quality Photography

11/20/2016

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Until the day that computers and mobile devices are capable of emitting a scent, dispensaries and cannabis producers must rely heavily on the visual element of their products in order to help them sell. High quality images of the product you are growing and selling not only reflect the quality of your business as a whole, but there is a huge opportunity to stand out among the competition with stunning photographs. It’s not hard to be mesmerized by the aesthetic elements of a beautiful cannabis plant and your customers will equate that beauty to a superior product.

Hire a local photographer

Unless you have a professional photographer on your team capable of macro photography, we recommend searching your community to find a photographer to either bring on to your team or to hire freelance whenever photography is needed. Cannabis photography is a growing industry, with companies and photographers specializing in cannabis imagery specifically. Place a job ad or search a photographer directory to find someone excited to work with you.

Explore stock image sites

If you are unable to find a local photographer, you might have luck finding appropriate images on a stock photo site. Traditional stock image sites like Shutterstock and Getty Images include cannabis photos, but you’ll likely find higher quality and more interesting photos on a marijuana-specific service like Stock Pot Images. We do recommend finding a photographer over using stock images, however, because a photographer will help you to portray your business and products more honestly and accurately.

Besides taking photos of cannabis and the products you sell, it’s also important to take quality images of the interior of your shop. Potential customers in this new industry want to get an idea of what the experience will be like before walking through your door. Will the experience be more like a pawn shop or like an Apple Store? Show them the personality and amenities of your shop through images.

Maximize your ROI

Once you’ve decided to invest in cannabis photography, you will want to maximize your return on investment. Here are some ideas of how to get the most use from each image:

  • Include photos of your products and store interior throughout your website.
  • Make your marketing efforts more effective by including the images in your email newsletters, social media posts and blog posts
  • Upload your images to directory sites like Weedmaps.com to make your business stand out among your local competition
  • Send photos along with your story pitches when you contact local media so that they have relevant images to print

With most businesses in any field, but especially in the cannabis industry, imagery is incredibly important. Every dollar invested in photography (as well as video) is money well spent because it can set you apart from your competition, persuade skeptical new customers to check out your shop, and enhance all of your marketing efforts.

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How to Find and Pitch Investors in the Cannabis Industry

11/20/2016

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Editor’s Note: Lately, we have been hearing from folks with start-up ideas all over the country, and they frequently ask us how they can connect with investors and what they should have prepared when it comes time to pitch. To answer these questions, we decided to recruit the best source possible — Francis J. Priznar, Chief Mentor at The Arcview Group — to help us understand what entrepreneurs need to do to successfully pitch investors. The Arcview Group is always seeking great ideas and entrepreneurs who want to raise capital from Arcview’s 550+ high-net-worth members, who have placed over $85M into more than 130 cannabis companies. The following is a list of questions that our readers have most commonly asked, followed by Mr. Priznar’s responses.

How can cannabis entrepreneurs meet investors?

After your personal contacts (friends and family), the best investors are most likely those who are already engaged in the cannabis market. Finding them, just a few years ago, used to be quite a challenge, but today an internet search will turn up many possibilities. Be careful, not all are equally qualified, nor appropriate, for you — so it makes sense to understand the investors’ track records, resources, specialties, and commitments to the industry.

An obvious source of quality accredited investors is my firm, The Arcview Group. We are the world’s leading cannabis deal-making platform. We welcome inquiries from any serious entrepreneur looking to launch a great idea or expand an existing business. We review up to 30 deals each week — ranking from cultivators, apps, hemp products, and more — and select those that meet our member interest criteria. If a deal is not “investment grade” some high potential early stagers might be referred to our successful partner Canopy — an accelerator with locations in CO and CA — for polishing.

As Chief Mentor for entrepreneurs at The Arcview Group, my advice to entrepreneurs is to try us first (or at least simultaneously) and if your deal is not right for us, we’ll often try to provide some feedback useful for retooling or moving in a different direction. We value all relationships with entrepreneurs and sometimes a bit of experienced and timely advice from experts such as us can be extremely helpful.

Likewise, you should actively seek to build relationships with investors and investor groups. That is because when you hear “no,” it usually means “not now.” You should always try to learn why your deal was not selected so you can pivot and return later if it makes sense.

Ganjapreneur, among other publications, lists investment sources other than Arcview. That is a start. If you take the same four-step approach with others as you do with us, you are on a good track:

  1. Make a great first impression: from your first call, to first pitch, to first in-person meeting.
  2. Seek useful feedback from seasoned investors.
  3. Build relationships. Investors can be helpful in important ways beyond funding.
  4. Think of fundraising as a marathon, not a sprint. It takes time.

And… repeat.

investorsupport2

What information should you have ready for investors?

The amount of information needed by entrepreneurs depends on the life cycle stage of the business. It’s understandable, for example, when conceptual startups cannot produce a cash flow analysis if they are not yet operating. Regardless, the more information the better and quality information is more important than quantity. The list below outlines an ideal information package but as previously stated is not always possible.

If you cannot produce these documents when requested by investors, it needs to be for a good business reason.

Business Plan

  • A business plan is a strategic document that communicates business goals and how they will be achieved. It’s often used to obtain investor funding and establish three- to five-year goals for a business.
  • You can customize important sections, such as the executive summary, market analysis, investment analysis, business operations, marketing strategy and more. A business plan is considered a “living document,” so it should be updated as your business evolves in order to provide internal and external guidance.

Investor Pitch Deck

  • Considered a modern condensed version of the traditional business plan, a pitch deck is a concise presentation that briefly describes your business to potential investors. The goal of the pitch is to clearly communicate your company’s value proposition and the customer problems it seeks to address and resolve.
  • Decks should be as short as possible, ideally fully presentable in less than 10 minutes, to ensure your audience remains attentive and engaged. Rather than reading off the slides verbatim, use the deck for supporting visual content, such as graphs, charts and key buzzwords, and develop a verbal pitch that supports the visuals. Pictures and graphs are more powerful that words here.
  • An investor pitch deck goes far beyond what you would include in a sales pitch deck. In a sales pitch deck, your focus is on the product or service and how it will be a value-add to the potential client. In an investor pitch deck, you have to address that but also address the competitive landscape, your investment offer and how it’ll be used to grow the business, the experience of the company leadership, and a host of other factors.
  • For more details, click here to watch a short presentation I gave on the essential elements of an ideal pitch deck.

Balance Sheet

  • Considered a “snapshot of a company’s financial condition,” a balance sheet is a basic financial statement that measures a company’s assets, liabilities and ownership equity. A company’s assets, such as physical property and intellectual property (see section on Protection), give investors an idea of how much a company owns. On the other hand, liabilities, such as payroll and debt, specify how much a company owes. Lastly, ownership equity indicates the amount invested by shareholders and the company’s retained earnings. Potential investors may ask to see an updated balance sheet to get a glimpse of your company’s financial condition, so it’s a good idea to have one handy.

Capitalization Table

  • A capitalization table is a record of all the shareholders of a company, along with their respective ownership percentages. It also outlines all of the securities issued by a company to investors throughout different investment stages (i.e. series or common/preferred shares and options/incentives), as well as the various prices paid for those securities.
  • This table specifies ownership shares on a fully diluted basis—if all convertible notes and stock options are exercised—therefore enabling a company’s ownership structure to be easily ascertained.

Term Sheet

  • A term sheet is an important document that a company seeking financing provides to potential investors. Many investors believe a deal is not investable if the entrepreneur fails to produce a term sheet on the first meeting.
  • Generally non-binding, a term sheet specifies the amount of financing sought, price per share, voting rights, redemption rights, closing details and more. Additionally, this document specifies the total number of directors that investors will be entitled to elect to the company’s board. Think of it as an executive summary for your investment offering – a top-level 1 pager that lists the most important details about your business and investment.

Income Statement

  • Also called a profit and loss statement, an income statement is one of three basic financial statements. It simply measures all of a company’s profits from all sources while deducting all of its losses during the same period of time. Comparing profitability to a prior period of time is vital since it helps investors determine whether a company’s profits have increased. This can be an important tool in making informed business decisions to free up cash flow and ensure profitability.

Cash Flow Statement

  • A cash flow statement measures the amount of cash a company generates and spends during a specific period of time. Since it helps investors determine how much revenue a company is generating, where it’s coming from and how it’s being spent, the cash flow statement is considered one of the big three financial statements.

Additional Documents

  • The following are useful but normally of secondary importance to investors:
    • Convertible Promissory Note
    • Corporate Director Agreement
    • Corporate Minutes
    • Discounted Cash Flow Projection
    • Share Subscription Agreement
  • Information on these documents and samples or templates are readily available on the internet.

investorsupport1

How should I talk about my idea?

Always remember you are selling a vision of a successful future. To do this, you should look and act the role today that you expect to be 3-5 years from now. For example, if you expect to be the CEO of a $25M software company in three years, you should look and talk like you are already in that role today.

Remember, you are asking for serious money and a commitment so you need to demonstrate you can be trusted, are yourself committed, and have the grit necessary to successfully get through many unforeseen challenges. This is about business and an investor relationship based on business first with authenticity and truth is a great starting point.

Being engaging is a plus. To do this, it is useful to be mindful that investors may know more about your business than you do. For all you know, the pitch an investor experienced immediately prior to yours was to solve the very same problem you are addressing. Or perhaps an investor has already invested in your competitors! A good approach is to be humble and seek advice… always ask for feedback. If an investor does not express interest in you, she/he is the only one who knows why and often you need to ask for an explanation and feedback. Honest and direct feedback is a gift.

How can I protect my idea?

As a startup, maintaining an edge over your competitors may depend on choosing the right strategy for intellectual property (IP) protection. If and when it is necessary to disclose this information, it’s useful to understand generally, there are two types of IP protection: patents and trade secrets. Each offers different types of protection with distinct benefits and risks.

Patents

  • Patents provide broad protection for invention and innovation on almost any novel aspect of technology or improvements on existing technology. A strong patent, or collection of patents, provides venture capitalists and angel investors assurance that the investment opportunity is protected and thus less risky. However, patent registration can require significant time and money to prepare and therefore could be an obstacle for investors.
  • Also, patents generally have a limited length of protection, with the patent owner receiving 20 years of protection from the time of filing or its earliest priority date. After this, anyone can legally copy or reproduce your innovation. Patents may also be expensive to defend against competitors and patent trolls.

Trade Secrets

  • Certain innovations may be more effectively protected if they are held as trade secrets instead of being disclosed to the world through the patenting process. One requirement for trade secret protection is that the invention must be kept secret. This requirement can make protection difficult to maintain because once a trade secret is divulged, it is no longer protected.
  • Trade secret protection involves protecting ideas simply by keeping them secret so it avoids the effort and expense associated with filing patent applications. Protection can remain for as long as the underlying technology (i.e. a secret sauce) is kept secret. Note that even technology that is available for purchase on the open market can be held as a trade secret so long as such technology is not disclosed, cannot be discovered, or reverse-engineered.
  • Obviously, it is vital that employees are educated on keeping information confidential and that a company plan is implemented to maintain secrecy.

What is the best cannabis vertical for creating new business opportunities?

No one can predict the future, so I will not even attempt to answer this question. However, the following general advice should be helpful:

  • Solve a real-world problem. Your solution then becomes the basis of a business.
  • Stay with what you know: if you are a software expert, look for software opportunities in the cannabis market.
  • Apply general business trends to the cannabis sector: for example, most sectors of the US economy are digitized — has cannabis kept up?
  • Focus on something you love: business ownership and management is very hard work. Many days you will likely not be making money, so loving what you’re doing helps a lot.

And remember, just because an existing solution is already addressing a need — you can still try to do it better, faster, and/or cheaper… or cooler. What if Twitter’s founders were convinced a short messaging solution was ridiculous because we already had text and email?

Information in this article, especially the simple overview of legal protection of confidential information, is offered as an introduction to the topic. Protecting IP is a serious matter affecting business valuation and investor attraction so experienced legal counsel should be sought for your individual situation. Nothing in this article should be construed as legal, financial, or investment advice.

Good luck!

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Senator Jeff Sessions of Alabama.

Anti-Cannabis Zealot Sen. Jeff Sessions Selected as Trump Attorney General

11/18/2016

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In a move that is certain to set off alarm bells throughout the cannabis community, President-Elect Donald Trump has tabbed Republican Alabama Sen. Jeff Sessions as the U.S. Attorney General, according to several news reports, including the New York Times.

Sessions, 69, served as U.S. Attorney for the Southern District of Alabama during the Ronald Reagan Administration and was elected to the Senate in 1996. In his role on the Senate Judiciary Committee he has opposed proposals to cut mandatory minimum sentences and during a 1986 confirmation hearing to determine Sessions’ possible appointment as a federal judge, former assistant U.S. attorney, Thomas Figures, testified that Sessions “only objected to the [Ku Klux] Klan because of drug use by its members.”

In 1999, Sessions voted yes on increasing penalties for drug offenses. In Jan. 2014, during a Senate Judiciary Committee hearing, Sessions said he was “heartbroken” when President Barack Obama said he didn’t think cannabis was “more dangerous than alcohol.”

“It’s stunning to me. I find it beyond comprehension….This is just difficult for me to conceive how the president of the United States could make such a statement as that,” Sessions said during the hearing. “Did the president conduct any medical or scientific survey before he waltzed into The New Yorker and opined contrary to the positions of attorneys general and presidents universally prior to that?”

During that hearing, Sessions argued that cannabis was not safer than alcohol because Lady Gaga said she was addicted to it.

Moreover, during an April hearing of the Senate Caucus on International Narcotics Control, called cannabis a “dangerous” drug, saying “you cannot play with it, it is not funny, it’s not something to laugh about” asserting, “good people don’t smoke marijuana.”

“The President-Elect has been unbelievably impressed with Senator Sessions and his phenomenal record as Alabama’s attorney general and U.S. attorney,” the Trump transition team said in a statement. “It is no wonder the people of Alabama re-elected him without opposition.”

Sessions received a grade of ‘F’ from NORML on their 2016 Congressional Scorecard.

Danielle Keane, legislative director for NORML who developed the scorecard, said that marijuana’s Election Day success proves that “marijuana law reform is an issue that is supported by solid majorities of Americans of all ages and political ideologies,” and the incoming administration needs to “read the pulse” of the electorate.

“Although Senator Sessions has been an outspoken critic of marijuana and President Obama’s hands-off approach to allowing states to reform their own laws, it’s clear that it wouldn’t be good public policy to try and overturn these laws,” Keane said in an email. “It remains to be seen whether or not the incoming administration identifies the political infighting these actions may create but we hope they think twice before stepping in to reverse policies that the majority of public opinion supports.”

NORML Executive Director Erik Altieri said the nomination “should send a chill down the spine” of Americans who support cannabis law reforms.

“[His] archaic mentality is not what we need from our nation’s Attorney General and we must put pressure on President-Elect Trump to ensure that Sessions upholds Trump’s campaign promise to not interfere with state marijuana laws,” Altieri said in a statement.

During a June 2007 vote on whether to declare English as the official language of the U.S. government, Sessions recommended voting ‘no’ on the measure, citing his support for states’ rights.

President-Elect Trump said on the campaign trail that he supported medical cannabis use “100 percent,” however it remains unclear as to whether or not the incoming president will decide to rollback any of the progress made in cannabis policy on both the state and federal levels.

The Obama administration has operated under the Cole Memo, declining to use federal funds to enforce federal marijuana laws in states that have legalized medical and adult-use cannabis.

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AXIM Biotechnologies Granted U.S. Patent for MMJ Chewing Gum Products

11/18/2016

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AXIM Biotechnologies, the maker of CanChew Gum, has been granted a Notice of Allowance by the U.S. Patent and Trademark Office for all natural and synthetic cannabinoids in its controlled-release chewing gum products, the company announced in a press release. A Notice of Allowance is issued after the agency determines that a patent can be granted from an application, which was filed by AXIM in April 2015.

George E. Anastassov, AXIM’s CEO, said the protection gives the company “exclusive protection” in the cannabis pharmaceutical and nutraceutical market, preventing attempts by other companies from introducing rival products “with the same delivery system made with any cannabinoids.”

“This new patent is paramount for our company as it provides us with the intellectual property protection to include any of the at least 85 different cannabinoid compounds found in the cannabis plant, including CBD and THC, into our multiple cannabinoid-containing controlled-release chewing gum products,” Anastassov said in the release “Acquiring this new patent is also strategically important for AXIM’s mission to find cannabinoid-derived solutions for health conditions with no known cure.”

The company also announced that it will begin clinical trials for its THC/CBD gum, MedChew, targeted for the treatment of pain and spasticity associated with multiple sclerosis. The product is expected to gain full registration with the Food and Drug Administration.

Another AXIM product known as AX-1602, which contains the cannabinoid CBG, is already undergoing clinical trials as a psoriasis and atopic dermatitis treatment.

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Molten chocolate, as used in many cannabis edibles products; the symbol displayed is Washington State's new marijuana edibles warning label.

Washington Cannabis Board Adopts Edibles Warning Symbol

11/18/2016

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The Washington State Liquor and Cannabis Board has adopted a “Not for Kids” Red Hand warning symbol to be placed on edible cannabis products, the agency announced in a press release. The board settled on the symbol over the “Mr. Yuk” symbol and other symbols that included the word “poison.”

The “Not for Kids” Red Hand symbol was approved after industry concerns over the inclusion of “poison” and cost concerns related to royalties on the trademarked “Mr. Yuk” symbol. The “Not for Kids” warning symbol was developed by a marketing firm working on behalf of the Washington Poison Center. Licensed operators are able to use the image at no cost and can either print them in-house or purchase them from the Poison Center. The symbol also includes a phone number for parents and consumers in the event of accidental ingestion.

“Along with education and outreach, similar to what was done with ‘Mr. Yuk’ when it was first developed, the WSLCB believes that the warning symbol will accomplish the goal of deterring accidental consumption by children,” the release states.

Anticipating the rule changes, some licensees began using the symbol on their products in advance of any requirement to do so.

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Young marijuana plant budding under a grow light.

Home-Growing Provisions of Massachusetts Legalization Law to Take Effect as Scheduled

11/18/2016

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In 28 days the portions of Massachusetts’ adult-use cannabis law take effect that allow individuals to grow their own cannabis, drawing concerns from current medical cannabis licensees about the potential quality and safety hazards, according to a State House News Service report.

“There’s a lot of soul searching that needs to occur to make sure this is done properly,” Nicolas Vita, CEO of Columbia Care, which has three medical cannabis licenses in the state, said in the report. “We’re sort of in a very grey zone here where we don’t really know what’s going on.”

Under the current medical cannabis law, products are tested for mold, mildew, non-organic pesticides, and heavy metals before they are sold in dispensaries. The home-grow allowance is part of the law that kicks in on Dec. 15, which also includes possession of up to 1 ounce by adults 21 and older outside of their homes, 10 ounces inside. Adults will be able to grow up to six plants and gift up to 1 ounce of cannabis to another adult.

Gov. Charlie Baker, who opposed the initiative, said that the Dec. 15 date was “one piece of the 6,000-word ballot question” that “a lot of people understood out of the gate.” He said it’s not likely that the legislature would meet before it’s scheduled to reconvene in January.

“Well, you gotta remember that when the Legislature is in informal session it just takes one (lawmaker) to stop something from getting done,” Baken said. “So, I mean, as a practical matter I think it’s pretty unrealistic to assume that that wouldn’t go into effect as it’s scheduled to go into effect in December.”

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Large, cured cannabis nug lying on its side.

Certain Cannabis Purchases Now Tax-Free in California

11/18/2016

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Certain medical cannabis sales in California are now exempt from sales and use tax following the passage of Proposition 64, the State Board of Equalization announced in a press release. The exemption applies to medical cannabis sales by patients who carry county-issued Department of Public Health medical marijuana identification cards — but tax-free sales are not applicable to those with only a paper recommendation from a physician.

Tax exempted products include flower, concentrates, edibles, and topical products. Currently, medical dispensaries pay 7.5 percent in state sales tax on purchases, and municipalities can tack on another 1 percent to 2 percent.

According to a TribLive report, California issued about 6,700 of the ID cards in the fiscal year that ended in June. Since then the state has issued another 2,200 of the cards, but some could be renewals.

Jerome Horton, a state board of equalization member, estimated that the revenue loss for the state during the tax holiday would be as much as $49.5 billion.

“Local cities who anticipate preserving their revenue from medical marijuana may get nothing since Proposition 64 provides for a complete exemption from medical marijuana,” he said in a San Francisco Chronicle report.

Richard Miadich, counsel for the Yes on 64 campaign, who drafted the Adult Use of Marijuana Act, disagrees with the board’s interpretation, calling it “inconsistent with the statutory language and … intent.”

The measure provides for a 15 percent excise tax on cannabis products, but that doesn’t take effect until Jan. 1, 2018.

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cannabis topicals

Report: High-CBD Sales Spike in Washington; Driven by Topicals, Capsules, Beverages

11/17/2016

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High-CBD cannabis product sales in Washington State have increased by 200 percent, according to a report by canna-business intelligence firm Headset. The analysis of 40,000 individual customers was conducted with information directly from integrated retail point-of-sale systems from Sept. 2015 through Sept. 2016.

According to the report, CBD products accounted for 2.8 percent of total sales, 2.4 percent of total units sold, and about $5.7 million of the state’s legal cannabis market. Topicals, capsules, beverages, tinctures and sublinguals, represent the lion’s share of the CBD market; with flower and pre-rolls comprising about 1 percent of high-CBD sales. Around 40 percent of topical sales are high-CBD, along with about 35 percent of both capsule and tincture sales, and roughly 20 percent of beverage sales.

Customers who buy CBD products more often buy in bulk, the report says, finding that 59 percent of CBD flower purchases are of 5 grams or more, compared to just 13 percent of low-CBD flower purchases. High-CBD products were also found to be more popular among non-traditional cannabis users, such as the older population and women.

“The percentage of overall sales going to high-CBD products increases steadily from a little over 2 percent in the 21-25 age group to over 5 percent in the 51-plus age group,” the report states.

And while just 5 percent of customers from June to September purchased a CBD product, those customers shopped slightly more often and purchased more items, on average, than customers who did not buy any CBD products.  Most customers (85.5 percent) who purchased high-CBD products also purchased a non-CBD product.

The authors anticipate that as customers become more educated about CBD the market share could expand due to increased interest by traditional consumers who are seeking to “enjoy the physical benefits of a traditional indica strain without getting ‘high.’”

“Either way, expect to see CBD become more and more a part of the cannabis conversation, as its therapeutic properties convert more and more users,” the authors conclude.

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Literature Review Finds Cannabis Effective for Addiction and Mental Health Therapy

11/17/2016

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A University of British Columbia study is the latest to report that cannabis can be utilized as a therapy for people suffering from some mental health and addiction issues, according to a press release from the university. Researchers found that medical cannabis use helps stem symptoms of depression, social anxiety, and depression in users, while helping some opioid addicts and alcoholics kick their dependence.

Zach Walsh, the study’s lead author and UBC associate professor of psychology, concluded that some people are using cannabis as “an exit drug” from more harmful substances. He noted that while cannabis is shaping up to be an effective therapy for some psychological issues it might not be efficacious for conditions such as psychosis and bipolar disorder.

“In reviewing the limited evidence on medical cannabis, it appears that patients and others who have advocated for cannabis as a tool for harm reduction and mental health have some valid points,” Walsh said in the release.

The researchers performed a comprehensive systemic review of mental health and cannabis academic journal articles, including studies on non-medical cannabis use — 60 in all. In addition to their findings regarding mental health and addiction, the authors concluded that cannabis use “does not increase the risk of harm to self or others.”

“There is currently not a lot of clear guidance on how mental health professionals can best work with people who are using cannabis for medical purposes,” Walsh said. “With the end of prohibition, telling people to simply stop using may no longer be as feasible an option, so knowing how to consider cannabis in the treatment equation will become a necessity.”

The study will appear in the Feb. 2017 edition of the Clinical Psychology Review.

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Dr. Sanjay Gupta appearing on Late Night with Seth Meyers.

Dr. Sanjay Gupta Says Denying Patients MMJ is ‘Immoral’ During ‘Late Night’ Appearance

11/17/2016

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During an appearance on “Late Night with Seth Myers,” Dr. Sanjay Gupta explained how he changed his mind on medicinal cannabis — he found research that was not funded by the U.S. Government.

“If you looked at all the studies, what you came to learn was that most of the studies were designed to look for harm as opposed to designed to look for benefit,” Gupta, the chief medical correspondent for CNN said. “…The whole system was sort of looking for that harm as opposed to saying this could be a legitimate medicine.”

Gupta explained that he once believed that people who were seeking medical cannabis were “malingering and just wanted to get high” but, after traveling the world and witnessing the research conducted on cannabis in other countries, he became a believer.

“But the truth is that, I think, for certain people not only does it work, it can be the only thing that works, and it would be immoral, perhaps even, to withhold that if it’s a therapy that can actually benefit people,” he said.

The doctor pointed to Arkansas, one of the four states in which voters passed medical cannabis referendum last week, as a sign that more people are beginning to embrace cannabis as a medicine.

“This is the only substance that has been, sort of, approved by the people,” Gupta said. “…I switched my mind on this after looking at the data and I just encourage other people to do the same thing.”

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Arkansas' state flag flying before a cloudless sky.

Arkansas Gov. Seeking $3M for MMJ Program Rollout

11/17/2016

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Officials in Arkansas have taken the first steps in the implementation of the state’s newly minted medical cannabis program, according to a Free Weekly report. Gov. Ava Hutchinson is asking for $3 million to fund the program’s rollout and over the course of the next month the governor, along with legislative leaders, will start appointing the five members to the newly formed Medical Marijuana Commission.

“The people voted this in and I intend to implement it according to the will of the people of Arkansas,” Hutchinson, a former DEA director, said in an Associated Press report. “But the people of Arkansas expect me to do it right, to do it in a way that protects our children and to do it in a way that minimizes the problems we’ve been very concerned about. That’s what the regulations are about.”

Under the law, the commission, along with the state Department of Health and Beverage Control Division, has to begin accepting dispensary applications in June 2017, leaving officials until about March to devise the program’s rules and regulations. The amendment permits for between 20 and 40 dispensaries, with no more than four in a single county, testing labs and cultivation licenses.

Just 12 conditions qualify for medical cannabis use in the state — including post-traumatic stress disorder, Tourette’s, Alzheimer’s, HIV/AIDS and cancer — and patients can apply for a state-issued certification allowing them to purchase cannabis from a dispensary. Patients could also choose to designate a caregiver to obtain their cannabis for them. Neither patients nor caregivers can purchase more than 2.5 ounces within a 14 day timeframe and the Health Department is responsible for adding any additional conditions.

Meanwhile, some opponents are shifting their focus from any repeal effort — which would require a two-thirds vote by the legislature — to adding restrictions on advertising and zoning options for municipalities.

The measure does not allow Lawmakers to pass any legislation to limit the number of dispensaries or rescind the voter-backed constitutional amendment.

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A Chong's Choice pre-rolled joint, produced and manufactured by Verde Natural in Colorado.

Chong’s Choice Makes Official Colorado Launch

11/16/2016

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On the heels of legalization measures passing from the East Coast to the West, it was a perfect environment for Tommy Chong to debut his brand of cannabis in Colorado. The name of his company, Chong’s Choice, is exactly that — the most natural, organic, locally sourced bud the professional stoner could find in the Mile High State. With Chong’s Choice, Chong is riding the trend of celebrity cannabis lifestyle brands like Snoop Dogg, Willie Nelson, and Whoopi Goldberg.

“It’s a slam dunk because everyone wants pot, and everyone wants good pot,” said the actor, comedian, and longtime cannabis advocate. “Who better to give it to them than me — I’m the most experienced; I’ve had the longest association with pot, even longer than Willie Nelson!”

“He’s the classic stoner with passion for the plant,” said Levon Terry, of Chong’s Choice in Colorado. Now available for medical and recreational consumers in Colorado, Terry said Chong’s company is looking for that passion in their Colorado partners.

After touring about 70 grow houses, Verde Natural rose to the challenge. CEO Rudy Ellenbogen touts their consistent, high quality, organically and naturally produced product. “Our process is planned and organized, we harvest every week and hand trim.” The small-batch, organic process is overseen by master grower Cassandra Maffey who got her cannabis roots in Humboldt County, California.

Chong’s Choice cannabis plants in the Verde Natural grow facility.

Verde Natural prides itself on their foundation of doing things right. “We treat it like our home grow,” Maffey said, “if not, we wouldn’t have the level of quality cannabis we have here.” The mutual love of working alongside people with similar values while caring for high quality, organic cannabis makes for a perfect partnership between the cultivators and the company.

Verde Natural does all of their trimming by hand.

“They are the most hands on and unique at this scale,” said Terry.

The company has gone through some growing pains. they first launched in California and learned that pairing with dispensaries isn’t the way they wanted to go. For example, Leafs by Snoop is only available at Livewell locations. Now that Chong and Verde Natural have an exclusive partnership, they can have their flower, extracts, pre-rolls, THC strips and edibles in any participating dispensary showcase in Colorado.

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Chong’s Choice nugs hanging on the line to cure.

Thursday evening, the launch party brought together all the trusted partners of Chong’s Choice. Verde Natural and The Growing Kitchen, makers of the Chill Pill and other edible treats, were featured. They are currently deciding whether to go forward with a Chong cookie, or hard candy, or both perhaps. In either event, expect Chong’s Choice edibles to be available in Colorado within a few months.

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Workers in the Verde Natural cultivation facility manually water the plants one by one.

Meanwhile, you can enjoy smoking with the counterculture icon every time you light up one of his pre-rolls, as an image of his face is printed on each joint.

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The Texas State Capitol building in Austin, Texas.

Decriminalization Bill Pre-Filed in Texas State Legislature

11/16/2016

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A bill to decriminalize small amounts of cannabis possession has been pre-filed in the Texas House of Representatives by Democratic Rep. Joe Moody, according to a blog post by Texas NORML. The measure would decriminalize possession of up to 1 ounce of marijuana, reducing the penalty to just a $250 fine.

Possession of more than an ounce would remain a misdemeanor of varying degrees based on the amount, and the legislation (HB 81) does not remove any language permitting life sentences for possession over 2,000 pounds.

A same-as bill, sponsored by Democratic Sen. José Rodríguez, was pre-filed in the state Senate. Rodríguez is also supporting two joint resolutions that would put both medical and recreational cannabis use initiatives to voters. The medical initiative would seek to expand the state’s limited program enacted in June 2015.

A joint resolution is the only way Texans are able to directly vote on state legislation as there is no state law permitting ballot initiatives.

“It is long past time we allow the people to decide,” Rodríguez said in a press release. “Polling indicates majorities in favor of both proposals, and it goes against the state’s democratic values and faith in its people to deny them a chance to vote on the matter.”

The state’s first medical dispensary is expected to be licensed in June 2017.

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A young cannabis plant

Colorado Gov. Calling for ‘Gray Market’ Crackdown

11/16/2016

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Colorado Gov. John Hickenlooper is demanding a crackdown on the state’s so-called gray market, calling it a “clear and present danger,” according to a Denver Post report. The governor’s concerns come following a DEA raid in Pueblo West during which 16 pounds of processed cannabis, handguns, and shotguns were seized leading to seven arrests.

“If we don’t stamp it out right now, it becomes acceptable. And then, all of a sudden, people are going to start getting hurt,” the governor said in the report. “If you let crime grow, it will breed on its opportunity.”

In an effort to stem the informal market, the Democrat has asked state legislators to earmark $16 million from the state’s marijuana tax revenues for law enforcement investigation and prosecution for illegal grows. Hickenlooper’s administration is also considering seeking legislation that would tighten home-growing regulations including the number of plants allowed.

“I take this very seriously,” he said. “This is one of the things we worried about in the very beginning. But when we see the evidence, we better respond.”

Under the state’s medical cannabis program, patients and caregivers are permitted to grow up to 99 plants in a residential setting; the adult-use law allows individuals to form cultivating cooperatives, permitting six plants per person.

Rachel Gillette, acting interim executive director for Colorado NORML, is concerned that the regulations could go too far but that growers have a responsibility to act in accordance with the law.

“The bottom line is you can write a bazillion laws, but if people are willing to break them … it doesn’t necessarily help,” she said in the report. “The part of the reason this gray market even exists is because the federal government refuses to acknowledge the medical efficacy of marijuana, as well as continues to follow archaic law pertaining to a drug war that has clearly failed.”

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Opponents of Maine’s Question 1 Petitioning for a Recount

11/16/2016

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Opponents of Maine’s ballot initiative to legalize cannabis for adult use intend to request vote recount, which will involve more than 757,000 ballots and cost the state $500,000, according to a report by the Portland Press Herald. The move comes a week after proponents declared victory for the measure with a margin of 4,402 votes.

Mainers Protecting Our Youth and Communities need to submit just 100 petition signatures to the Secretary of State’s Office by 5 p.m. today to spark the recount. Unofficially, Question 1 passed with a vote total of 381,060 to 376,658 — less than 1 percent.

David Boyer, campaign manager for Yes on 1, said the recount would be a waste of taxpayer dollars.

In addition to the possible recount, Republican Gov. Paul LePage has indicated he might challenge the results of the ballot initiative vote, saying that he would confer with President-elect Donald Trump about whether or not the new administration intends to enforce federal law as it pertains to cannabis before he decides if he will challenge the referendum results.

The huge cost of the recount is largely due to the manual labor involved. Sealed ballot boxes would need to be picked up in each of the state’s 503 localities by Maine State Police, who would deliver them to the Secretary of State’s Office, which must recount them by hand. The process would take about four weeks.

Scott Gagnon, campaign manager for the anti-campaign, said he has received an outpouring of citizen concerns following the announcement of the initiative’s success.

“These Maine voters are encouraging the coalition to stand firm, as the stakes are incredibly high for Maine’s youth and Maine’s medical marijuana program,” Gagnon said in the report. “It is our duty to exercise all rights available to ensure that the final results are a fair and accurate representation of the will of all Mainers.”

According to the initiative text, the measure is due to become law 30 days from when the governor declares the official results of the election.

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The sun rising over Denver, Colorado.

Supporters of Denver’s Social Use Initiative Call it a Win

11/16/2016

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Following a week of vote counting and a lead of more than 17,000 votes, Emmett Reistroffer, campaign director for Yes on 300, Denver’s social-use initiative, believe they’ve “exceeded the margin necessary to declare a winner.”

The pilot program allows Denver bar and restaurant owners and other businesses to apply for permits allowing for use of cannabis products so long as there is no indoor smoking. Patrons 21 and older would be permitted to bring and consume their own cannabis at establishments that gain approval from their neighborhood, a business district or a city-registered group. The new law allows indoor vaping and edible consumption, while smoking would be permitted in designated outdoor areas, so long as it’s not visible from the public right of way or within 100 feet from a school.

“We don’t want this in public,” Reistroffer said in a CBS4 report. “We want this in private places where it’s permitted, where it’s only for adults 21 and over and where the staff are trained to be in charge of these environments.”

Proponents of the initiative say the plan protects individuals who do not want to be exposed to cannabis, while giving people who live in public housing or in residences where the landlords prohibit smoking safe havens to use cannabis socially.

Opponents, however, are not conceding despite the vote totals. Rachel O’Bryan, campaign manager for the Protect Denver’s Atmosphere: Vote No on 300 Committee, said the 53 percent to 47 percent tally indicates that a large number of residents oppose the measure. The group plans on asking officials to “carefully consider implementation,” adding that they would “seek guidance” from the state Attorney General’s Office.

“We were told four years ago in the amendment that marijuana consumption would not be conducted openly and publicly,” O’Bryan said. “Now we’re going to have marijuana on rooftops and patios, that’s open and public, there’s no two ways about it.”

The measure will not officially be codified until the remaining ballots from military members and from registered voters living overseas have been counted.

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Researchers Plant Nebraska’s First Legal Hemp Crop

11/15/2016

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Researchers at the University of Nebraska-Lincoln have planted 150 hemp plants on the college’s East Campus, according to a report by the Lincoln Journal Star. The plants are the first legal hemp crop in the state following a 2014 decision by Congress to allow the cultivation of the plant for research purposes.

The UNL researchers had applied to the DEA for permission to import hemp seeds in February, but had to wade through red tape, including reinforcing the floor below where the seeds are stored with metal due to DEA fears that someone could break through the wood and steal the seeds. The researchers were able to secure the seeds for the pilot program from Canada and Italy. Tom Clemente, professor of biology and one of two researchers leading the project, also collected native seeds from fields and ditches in Seward and Lincoln counties.

The trial is focused on genetically engineering hemp to use its leaves and stalks for use in industrial plastics and lubricants. The pulp and fibers left over would be used to make paper and cardboard materials.

“You want to maximize the number of products you’re making per acre,” Clemente said in the report. “When you’re just selling biomass, it’s tough to make a buck off that.”

According to the Hemp Industry Association and Hemp Business Journal, in 2015 the retail hemp market was work $573 million and the plant is used in more than 25,000 products.

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