New York MMJ Operators Still Not Profitable

8/08/2016

by

Almost all 20 of New York’s planned dispensaries are up and running, but at least three of New York’s five licensed medical marijuana operators are not yet profitable, according to a Times Union report.

Etain Health, PharmaCann, and Vireo Health of New York each confirmed that their New York ventures are still in the red; Columbia Care NY declined to discuss their financials, and Bloomfield Industries did not return interview requests, according to the report.

PharmaCann spokesman Fred Polsinelli estimated it will be at least another 18 months until New York’s operators see profitability, noting that it has been less than a year since their products came to market.

“This has not been a small undertaking at all,” he said. “But we are happy because we did not expect to be profitable day one. It’s just the reality.”

Hillary Peckham, Etain Chief Operations Officer, said the growth was slower than she’d like to see, but during their eight months in business they have seen the benefits of their products for recurring patients.

“We’re still having a lot of challenges, and there’s still a huge amount of cost associated with just operating,” she said.

Since its launch in January, just about 6,000 patients and 640 doctors have signed up to participate in the program.

End

Pennsylvania’s First MMJ Director Assumes Role Today

8/08/2016

by

Pennsylvania’s recently appointed Office of Medical Marijuana director, John Collins, begins his new role today – just four days after being tabbed by Secretary of Health Dr. Karen Murphy to help implement the medical marijuana program in the state.

Collins previously served as a public health program assistant administrator with the Division of HIV Disease. Prior to his role with the government, Collins served as a chief operating officer for Triad Isotopes, an Orlando, Florida-based radiopharmaceutical network.

“I am very proud to be chosen to lead such an important office,” he said in a press release announcing the appointment. “My experience in a heavily regulated medical enterprise, market research and new product development, strategic planning, logistics, communications, and customer service is a perfect fit for the requirements of overseeing the implementation of Pennsylvania’s Medical Marijuana Program.

The new director will be tasked with rolling out Act 16 – which allows patients with just 17 serious medical conditions to access medical cannabis, making it one of the strictest in the nation. Gov. Tom Wolf (D) signed the bill in April.

The Health Department has already sent public surveys to help develop temporary regulations for the cannabis industry, created a Medical Marijuana Physician Workgroup, and solicited bids for seed-to-sale tracking technology in preparation for the program’s expected launch early next year.

End

Wu-Tang Clan Members Cement Cannabis Industry Dealings

8/07/2016

by

Members of the Wu-Tang Clan are getting in on the legal cannabis market, partnering with Dr. Zodiak for their products and hiring former marijuana smuggler Brian O’Dea to expand the business, Ghostface Killah said in an interview with Vice.

O’Dea, who was active throughout the 1970s and 1980s, was tabbed because “he understands the market,” Ghostface said. O’Dea specializes in ensuring his clients’ products meet state compliance standards.

“My history actually works to my benefit,” O’Dea said in the report. “It’s one of those few instances in your life when your criminal past is actually a qualifier for your legitimate presence.”

Ghostface and Wu-Tang partner Killah Priest released Wu Goo, a 70 percent THC oil, earlier this year. The product is designed to be smoked out of their Dynamite Stix vaporizer.

Ghostface said he never thought a legal cannabis industry would exist, let alone he would be a part of it. He argues that the only reason the market does exist is because the government realized its money making potential, alleging that if people weren’t dying from crack and heroin, the government would “do [those], too.”

“At the end of the day, it’s all about money. The government says you were a criminal if you were getting money off of this weed. Then they saw the demand,” he said. “They saw it was a growing business. Now they wanna take it and put a dollar on it, so they can get a dollar. They do this with whatever is blowing up.”

Wu Goo is currently available in Oregon, Washington and Colorado, but O’Dea is working to bring the products to his home country of Canada. They are also planning on ensuring their products are ready to be sold in California, confident voters will legalize recreational cannabis in November.

End

Scotts Buyout of Dutch Hydroponics Company worth $136M; Stock Reaches Record High

8/05/2016

by

Last June, Scotts Miracle-Gro announced they had made a deal to acquire a 75 percent stake in Dutch hydroponics company Gavita Holland BV, but just yesterday disclosed the deal was worth $136 million, Columbus Business First reported.

Following the announcement, JP Morgan upgraded Scotts stock from Overweight to Neutral, raising its target price from $70 to $85. The company’s stock hit an all-time high of $80.14 after the upgrade.

Jeffery Zekauskas, a JP Morgan analyst, contributed the move, in part, to the role of hydroponics in cannabis cultivation.

“The hydroponics market taps into marijuana demand and the company now has a growth option that we think an investor is able to capture for about the price of the traditional business,” he said in a Barrons blog post.

Last year Scotts spent nearly $130 million to purchase California-based General Hydroponics in the largest deal in the company’s history. Earlier this week Scotts subsidiary Hawthorne Gardening Co. signed an agreement to purchase Arizona-based Botanicare, a plant nutrient manufacturer, who offers hydroponic growing systems.  

Scotts CEO Jim Hagedorn said his company is now becoming the market leader in a once fractured market. Scotts expects Hawthorne, run by Hagedorn’s son Chris, to reach $250 million in annual sales after their acquisitions close.  

End

Two WA Companies Launch Cannabis Commercial Campaigns

8/05/2016

by

Two Washington-based recreational cannabis companies have deployed commercial campaigns, potentially laying the groundwork for the next phase of cannabis advertising.

Both commercials are unique and aesthetically appealing. Avitas Agriculture’s 41-second “Get Creative” spot is the first of a planned three-video campaign for the company. According to Avitas CEO Adam Smith, the content — featuring a 20-something white male smoking concentrates and painting a mountain-scape — is loosely based on an employee who “smokes sativas and paints.”

https://www.youtube.com/watch?v=CsDPY16ni64

“I think it’s representative of our brand because it’s fun, it’s irreverent,” Smith said in an interview with Ganjapreneur. “We figure ourselves as being craftsman of our product so we don’t take ourselves seriously about it. We’re representing how some people might use our product in different settings.”

The 93-second music video ad for Mirth Provisions’ Legal soda brand features attendees at a backyard barbecue popping bottles; it utilizes a catchy tune featuring lyrics explaining the potential effects of each of the four flavors.

https://www.youtube.com/watch?v=8KxMkOn2kqI

Adam Stites, founder of Mirth Provisions, said the lyrical content is the most important aspect of the spot because it’s hard to convey on a label what effects a consumer can expect in terms of strength and length.

“In an increasingly crowded world where edibles are all getting commoditized, marijuana is getting more and more complex… it’s overwhelming the consumer,” Stites said. “It’s much more complex than THC. We wanted to have a video that was lighthearted and fun but also communicated what our product was.”

While Mirth Provisions secured director James Westby for their spot — whose film “Rid of Me” was featured at the 2011 Tribeca Film Festival — Avitas’ ad was produced by Brandon Van. Van is a 23-year-old extraction technician for Avitas, who plans on attending the Seattle Film Institute in September. He submitted a video resume as part of his Avita application.

The commercial is a first for Van, who recruited friends from college and high school to act in and help produce the spot with the blessing of his boss. He wanted to make sure the final product was “as simple as possible” for the audience to understand, in an effort to expand its marketing potential.

“What was ‘simple’ for me was to have music, no dialogue and a good message,” Van said. “Everyone wants to be creative and people relate weed to creativity… so I figured what’s a better way to do that than a simple painting that the ‘average Joe’ was doing.”

Despite taking different creative paths, both companies created their ads with some discretion, taking the rules governing alcohol advertising and applying them to their own pieces.

Although the Federal Communications Commission has not outlined rules for cannabis commercials, the state Liquor and Cannabis Board rules for advertising prohibit companies from advertising “marijuana or marijuana products in any form through any medium whatsoever within one-thousand feet of the perimeter of a school ground, playground, recreation center or facility, child care center, public park or library, or any game arcade admission to which is not restricted to persons aged twenty-one years or older.”

The board suggests companies consult with the FCC, media-buyers and attorneys for television protocols. The FCC did not respond when questioned about their plans for cannabis advertising.

However, neither company plans on any television media buys. Both companies indicated that they are currently working on publishing the spots as YouTube ads – but YouTube is owned by Google, who has previously rejected medical marijuana ads due to its policy against promoting “dangerous products or services.”

Smith indicated that his company is still working on getting the green light from the world’s largest video sharing site, and said the process “takes time and comes with pretty serious conditions.”

“More than anything it is really just for us to experiment with the medium,” he said. “It’s all brand new. We’re trying to test the boundaries of what is allowed.”

Mirth Provisions’ spot was approved by YouTube “after some initial pushback,” Stites said, on the condition that the ads will air in states with a formal market, to users 21 and older.

Smith did not have a timeline for Avitas’ next videos, but they will have themes of “Get Relaxed” and spending time with friends. Stites anticipates the commercial for his company’s sublingual spray, Drift, will be released in the next 30 days.

End

Nevada AG Recommends Barring Some CA Patients from MMJ Program

8/05/2016

by

California patients opting for a physician’s recommendation instead of a state-issued card should no longer be legally allowed to access their medicine in Nevada, according to a letter sent by Attorney General Adam Laxalt to the state Department of Health and Human Services, the Las Vegas Sun reports.

“A recommendation from a California physician ad (sic) a driver’s license from another state cannot be used to obtain medical marijuana from a Nevada dispensary,” Laxalt said in the letter.

David Goldwater, owner of Inyo Fine Cannabis Dispensary, estimated about 40 percent of his business comes from out-of-state patients and said he would have to “drastically” change his business model if California patients were excluded from the Nevada program. He estimates more than 90 percent of California’s medical marijuana users choose the recommendation over the card to avoid registering with the state and associated costs.

“Not only [is it important] for our business, but for the patients who need medicine when they’re visiting here,” he said in the report.  “…We should be able to respect those states and those patients who prefer not to register with them.”

The health department would need to codify the change to enact the measure as the recommendation from the attorney general does not change the law.

End

CBD Dabs Provide ‘Instant Relief’

8/05/2016

by

Cory fires up a red Scorch Torch and heats up the quartz nail on his dab rig. On his stainless steel dab tool is a cherry red goo that resembles a cannabis concentrate, but he is not about to take a dab of highly potent THC — this product is 100% THC-free. This is a hemp-derived, “raw CBD” dab that has changed Cory’s life.

A few years ago, Cory was in a car accident and he broke his back. Since then he has had multiple back surgeries and lives a life where pain management is a daily battle. He has used cannabis to offset the painkillers that his doctor prescribed for years, but it wasn’t until recently that he discovered what is only just becoming public knowledge: the power of CBD dabs.

“It’s like an instant pain reliever and muscle relaxer all in one. With anti-anxiety on top of that. Honestly, I am kind of shocked,” Cory said. Unlike other methods for consuming CBD — such as tinctures, edibles, and liquid oils — dabbing CBD is a nearly instant relief for his pain.

“I could feel the muscles in my neck and shoulders instantly get looser and I felt tingles in my fingers and toes,” he explained. “I kept waiting for the woozy head feeling after taking the dab but it never comes, which is kind of weird at first but it’s really nice to be able to keep my head straight while still getting the relief.”

This is the appeal of dabbing CBD for many people. Cannabis strains that have been bred to have a high CBD content still have some THC in them, so you still get some of the psychoactive effects — which become especially noticeable when doing a dab. When using pure CBD, however, you have none of the “mind-altering” effects of THC, so you can get higher doses of CBD without losing the ability to function.

Homegrown hemp becoming popular for CBD extraction

Up until just a few years ago, industrial hemp was almost an exclusively imported product. Today, an increasing number of U.S. companies are beginning to source crops from Colorado hemp growers. One such company, Honey B Healthy Living out of Fort Worth, Texas, is creating CBD products that they are able to distribute around the nation.

“Being down here in Texas, we have been getting ready for the state to hopefully legalize marijuana soon,” said Glenn Reynolds, co-founder of Honey B Healthy Living. “A friend of mine told me, you have got to look into CBD oils and waxes. It’s going to be the next big thing.”

Reynolds was convinced of the power of CBD when one of his first customers told him her story of debilitating hand tremors. “She grabbed my hands and said, ‘Do you feel that?’, and she could hold her hands completely still! I was amazed by the story and by the emotion that she expressed,” he said. “We literally changed her life.”

Colorado-based Mary’s Medicinals is another company working to bring hemp-derived CBD products to the national marketplace, under the group’s sister corporation Mary’s Nutritionals.

Mary’s recently launched a line of distillate that can be smoked, eaten, or dabbed. Some of the distillates have been created using hemp-derived CBD, according to Graham Sorkin, Director of Business Development for Mary’s.

Sorkin wrote in an email to Ganjapreneur that, although Mary’s most popular CBD-based product is currently their patented CBD transdermal patch, “Customers are interested in CBD in dab-able and vape-able forms, as these can be some of the quickest ways to medicate and achieve relief.”

Regulations and obstacles for CBD products

So why is CBD dabbing not more widely used as a means to medicate? Misinformation is a likely cause. Honey B team members Ryan Beckley and Justin Cox ran into this problem while attending a trade show last month in Washington State. The Washington State Liquor and Cannabis Board tried to shut down their booth because their wares were considered cannabis products, though Beckley and Cox argued that their products contained zero THC and therefore should be allowed.

“We literally had the legal wording sitting right out in front of the LCB officers and they said that — in their opinion — it was a cannabis product, and therefore we were unable to sell it,” Beckley told Ganjapreneur.

Sometimes the misinformation goes beyond the product’s chemical composition: the effects of a CBD dab are also often misconstrued. While you don’t get “high” like you might from THC, to say that dabbing CBD produces zero mental effects is entirely false.

In her piece for the San Francisco Evergreen, Angela Bacca explains that CBD users often describe it as an instant calming of the mind and relaxing of the body. It has also been shown that CBD can help counter the effects of a THC overdose. Many of us have reached that point of THC intoxication where your heart is racing, you start to sweat and experience tunnel vision — many argue that a dab of CBD could be just the solution for going too big on THC-rich concentrates or edibles.

A new age of CBD medicine is coming

With awareness growing about the powers of CBD — whether it’s controlling seizures, treating PTSD, or pain management — we are moving towards a new era of medicine playing off the relationship between THC, CBD, and other cannabinoids. We should never forget that THC has many of its own medicinal benefits and that when a full plant profile is combined through harmonious whole-plant therapy, we witness the true healing powers of the cannabis plant.

However, if dabbing hemp-derived CBD is scientifically proven to be an effective pain relief treatment, and if the federal government continues to allow its nationwide distribution, it could easily become a groundbreaking development in the business of pain relief — and a telling blow to the distributors of pharmaceutical painkillers.

End

Popular Pesticide’s Ban in Washington Made ‘In Error’

8/05/2016

by

Washington’s Liquor and Cannabis Board has rescinded the stop-sale order on All Natural Spider Mite Control Concentrate after they found the testing that caused the ban “to be in error,” according to a press release.

The board also ordered stop-use orders for Mega Wash and Ultimate Wash, as they are unregistered products; and wetting agent SM 90 after testing found it to contain Salicylic acid. They recommend that dispensary owners provide a notice to customers informing them that their products might have been treated with an undisclosed pesticide.  

The WSLCB can confiscate and destroy any products containing Salicylic acid over permitted levels. No specific cannabis products were recalled by the board.

Recently adopted rules in the state allow more than 200 pesticides to be used in cannabis cultivation. The rules follow a spate of recalls in the cannabis industry nationwide.

Last year, Colorado-based EdiPure voluntarily recalled 7,700 edibles due to pesticide concerns. In March, 10 pesticide-tainted products were recalled in Colorado.

According to the Food and Drug Administration, common chemicals in pesticides and fungicides are safe at low levels, however due to marijuana’s federal status; the FDA has no guidelines for cannabis cultivation.

End

Kenny Morrison: Firing Up in California

8/05/2016

by

Kenny Morrison is the founder and CEO of VCC Brands (formerly known as the Venice Cookie Company), a California-based cannabis edibles producer. He also co-founded the sister company Evergreen Herbal, one of Washington’s licensed edibles and oils manufacturers.

Kenny recently joined our podcast host Shango Los for a conversation about experience building an infused edibles company from the ground up, the different extraction techniques his companies use to produce their infused products, his hands-on experience in preparation against federal raids, and much more.

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

Subscribe to the Ganjapreneur podcast on iTunes, Stitcher, SoundCloud or Google Play.

Listen to the podcast:

Read the transcript:

Shango Los: Hi there and welcome to the Ganjapreneur.com podcast. I am your host, Shango Los. The Ganjapreneur.com podcast gives us an opportunity to speak directly to entrepreneurs, cannabis growers, product developers and cannabis medicine researchers, all focused on making the most of cannabis normalization. As your host, I do my best to bring you original cannabis industry ideas that will ignite your own entrepreneurial spark and give you actionable information to improve your business strategy and improve your health and the health of cannabis patients everywhere.

Today is our 54th episode and will be my last as podcast host for Ganjapreneur. I’ve very much enjoyed bringing you interviews with some of the brightest minds in the cannabis industry. The Ganjapreneur Podcast will continue without me and I will be moving on to a book tour and a few other exciting media projects over the next 6 months, in addition to continuing to teach cannabis business demotivated entrepreneurs. If you like my approach to cannabis and want to stay in touch, I encourage you to go to shangolos.com and sign up for my newsletter so you can stay up-to-date. Thank you for sharing time with me and now on with the show.

Today my guest is Kenny Morrison. Kenny Morrison is founder and CEO of Venice Cookie Company, now known as VCC Brands, specializing in cannabis edibles for the California market and co-founder of Evergreen Herbal, a licensed Washington cannabis edibles and oils maker. Welcome to the show Kenny.

Kenny Morrison: Hey, hey, thanks for having me.

Shango Los: Glad you could be here. Venice Cookie Company was launched in California and has expanded into Washington as Evergreen Herbal. Tell me a little bit about the early days of the company.

Kenny Morrison: We started in 2008, co-founded it with Marco Hoffman, a longtime friend and conspirator. We were pretty early on in the scene and we just were looking to solve the problem of patients in California and collectives being able to get ahold of products that were made by an organization beyond what’s sort of in the early days been referred to as the backpacker. A lot of people in the early days were coming into the dispensaries that they were members of, coming into their collective, with food products, cannabis-activated food products in a backpack, and there just seemed something a little maybe not so health-compliant about that. So really it was our goal to set up a business where we could provide products that were made by safe certified chefs in health compliant kitchens and package them well, have really informative packaging, and just let people know through the branding and through the product experience that they’re really well-taken care of on multiple levels.

Shango Los: Yeah, and I bet the standardization of dose was something that you were able to bring as well. Because those backpack days, brownie number 1 is a different strength than brownie number 7 which is different than brownie number 12. That’s one of the challenging things when you’re … Heck, even when you’re not a patient, even if you’re just a recreational user, you want to know what your experience is going to be like every time. The standardization, I can see how that would be a real benefit to patients and others alike.

Kenny Morrison: Yeah, we learned really, really early on that people we’ve discussed edibles with, 99% of them had an experience where maybe they got a bigger dose than they were hoping for. We learned really, really early on that is not something we want to hear people say. We want to give people a sense of safety and repeatability and consistency, and teach people how many milligrams their dose was. From the beginning, yeah, that was a big goal.

Shango Los: Right on, right on. VCC Brands has a wide array of products. When I was last down in southern California I got to see them in dispensaries. It’s pretty astonishing. You guys go from hard candies to chocolates to tea bags and other beverages and tinctures. A lot of cannabis startups trip over themselves just trying to bring a product to the market. Yet, you’ve got a lot of SKUs. Can you give us a snapshot of what your product development cycle looks like, because you must have something down that other folks are still to catch up on?

Kenny Morrison: What does a product cycle look like? I mean, I guess it really starts with the sales team and what they feel they need to effectively serve the market and serve the patient or the consumer, depending on where it is. I’m really, really big on making sure everybody is part of the process and it’s very … It takes a certain level of obsessiveness to really think of every possible approach and every possible outcome and refine, refine, refine. I mean, just the proofreading process alone for a label with all of the required regulatory warnings and space for the UBI code or the space for your lot and batch label, just it takes a lot of work. It definitely helps to be obsessive and it definitely helps to live it, breathe it, think … dream about it.

Literally the first thing I think about in the morning when I wake up at 5:30 or 6:30, the first thought in my mind is always something to do with product development or some aspect of the business, some aspect of communicating more effectively, all those sort of things. Passion, I still boil it down to one word. If you’re passionate about it, it makes it easy to deal with it. You have to have a certain mindset. You have to have a certain approach. They say writing is rewriting, and I think brand product development is developing is redeveloping and refining and questioning everything, questioning absolutely everything.

Shango Los: One of the things that you start, you mentioned at the beginning of your answer I think is really important for us to highlight. That is that you ask your sales team what they think that they can sell, what are they seeing on the street as something that is being looked for, or overlooked in the market, where the opportunity is, because so many product developers, they come up with a novel idea on their own and they don’t really do any market research. They’re like, “Oh, I got this cool idea. I’m going to go ahead and make this thing.” So they develop time into developing the food or the beverage or the whatever it is and then spend time on the labeling and the packaging. Then they go to the market and they teach their sales people how to sell it, and they’re kind of hoping it’s going to sell.

You turned that on its head. You go to your sales people and say, “Where’s the opportunity? Because you are aware of the market on the front lines.” I think that is a very important delineation to make.

Kenny Morrison: Yeah, I mean, I think it can work both ways. Like Steve Jobs used to say that the customer doesn’t know what they want until we show them what they want. I think sometimes that is true. Sometimes we’ve reached out for feedback from the market and actually welcomed the market research. We put that product out and it’s not as big as we thought it would be. We even were discussing the other day these cappuccino flavored Lays potato chips or the chicken and waffles flavored Lays potato chips. Those are ideas that are, sometimes when you go to the public and you ask them for an idea, they don’t necessarily think of something that is going to be desired by tons of people. They’re more interested in sort of something that’s innovative and new and different. Different isn’t always what’s necessary. Just because you can make it, doesn’t make you should.

Sometimes it can work that way where you can just in a vacuum come up with something that the masses will really appreciate. More often than not it’s best to go with what the market is telling you via your sales team. I guess that’s really because at this early stage we’re just now starting to get some reliable market data from different companies like Headset in Washington and other companies elsewhere. One of the toughest parts about the product development process is that there’s not a lot of solid market research available. But then that’s just starting to change, which is really helpful.

Shango Los: Right on. Cool. I want to talk specifically about a couple of your different products, but before we do that we should probably go ahead and take our first break. You are listening to the ganjapreneuer.com podcast. We’ll be right back.

Marketing and brand agencies can be really unhelpful sometimes. I mean, you pay them, and you have meetings, but there doesn’t always seem to be real value created. Sure, they may make you a logo or a website, and you talk about the image your company wants to project, but that is not always reflected in the bottom line in the form of actual revenue. For a lot of startups, everything has got to feed the bottom line, just so they can survive. That’s what Blunt Branding does. They feed your bottom line.

Blunt is very different from other agencies, because their principals, Kirsten Nelson and Anthony Garcia, are experts in psychological marketing. For example, they don’t just write copy for your website. They write copy that includes hooks and triggers for every Myers-Briggs personality type. Most copywriters tend to write only for people who think like them. Blunt Branding does better than that. They reach all your potential customers. In fact, if there’s a certain kind of customer that you don’t want, say argumentative folks, Blunt will write you copy that attracts everyone else, but will tend to repel the kind of customer that gives you grief. I’m not kidding. This strategy is used by their attorney clients all the time.

Your brand is much more than a logo. You see, most customers wait for some company to wow them with something more than they came shopping for, especially when there are so many options, right? They’re looking for a brand to anticipate their questions or solve their problems, or just make them feel seen, heard, and valued. I know that can sound corny, but we all know that we buy from the companies that we feel most engaged with, and Blunt Branding will get them climbing over your competitors to get to you.

If you cannot risk business failure, you should be working with a marketing team who understands that their goal is not just to make you pretty, but to directly increase your sales success, too. Go to bluntbranding.com to find out more.

Welcome back. You are listening to the Ganjapreneur.com podcast. I’m your host, Shango Los, and our guest this week is Kenny Morrison, founder of Venice Cookie Company and co-founder of Evergreen Herbal. Before the break, we were talking about the product development cycle and the wide array of products that VCC Brands has. One of the things that you guys have got that I really like is your beverage, your quencher beverages. That is one of the challenges that people across the country are having, is bringing a decent beverage to the market.

Kenny Morrison: Good.

Shango Los: So many people, it’s either not shelf stable and it divides in the store. Or they have up a hard time homogenizing it. Or the color changes. Beverages are a real pain in the butt. I’m not asking for trade secrets, but tell us a little bit about how you came to your formula for your beverages, other than a lot of swearing, probably.

Kenny Morrison: Honestly I think every product poses its own problems. One problem that makes beverages completely different than other products that most of our competitors sell is just the sheer volume that they take up. We have companies who compete with us by delivering in Priuses and other small vehicles, and when you’re a beverage distributor you can’t do that. I’ve had people tell me the black hole on any PNL for a beverage company is freight. That’s definitely true.

Shango Los: When working on your own beverages, did you know, I mean, I guess the ones that I’ve had of yours, they’re in different flavors but they’re kind of fruit punchy. Did you originally start with that idea for a beverage, or did you find that you wanted to do a beverage and that format actually had the easiest development cycle for you?

Kenny Morrison: Interesting story here is the beverage started in California as a non-carbonated drink. We definitely went into it with a concept. I basically approached a food scientist and said that I want to model it after Santa Cruz Organics or Newman’s Own lemonade, something that had pulp, something that was as natural as possible, something that was as organic as possible. We started the beverage in California as a non-carbonated drink and then we moved into no sugar added versions that are strictly sweetened by the sweet juice instead of cane sugar. Then when we took our recipes to Washington and released them in the medical market, they were a big success, everyone really appreciated them. But when I-5O2 came around the WSDA actually disallowed a non-carbonated beverage, so kind of back to the product development thing and the problems with beverages is the state of Washington actually disallowed our drink that we had originally conceptualized as a natural fruit juice lemonade, and, in a weird way, insisted that it be carbonated and almost become a soda pop. Right?

Shango Los: Mm-hmm (affirmative).

Kenny Morrison: I’ve never wanted to refer to our products as soda. That’s why I think we went with the name Cannabis Quencher Sparkling in Washington. It’s a sparkling beverage. But yeah, there’s been a lot of challenges along the way. I think the good thing to remember is back when we started in California in 2008 and developed the beverage in 2010, it was actually really hard to find food scientists that were willing to work with us.

We went to one facility to bottle the beverages and the guy literally had a panic attack in the middle of filling up the equipment. Just as we were doing it a sheriff happened to drive by outside the facility, or maybe it was just a security guard drove by in front of this big building, many, many units, many tenants, and the guy literally had a panic attack and just said, “I’m sorry. I can’t do this.”

Shango Los: Oh man.

Kenny Morrison: Marco and I remember saying, “Hey, you know, this is not for you.” We respected his concerns and understood that in the early days it took a little bit of faith. Yeah, so that was one experience we had way back at the beginning. Then we finally found some people who were willing to point us in the right direction, people who were fans of what we did, believed in our mission, and took it from there.

Then obviously as the regulations have gotten more pronounced and everyone understands the law up in Washington, it’s been a lot easier to find really solid people with really good backgrounds to help us with product development. I think by 2016 practically going online or opening up the phone books so to speak, you can pick someone out of the phone book so to speak and they’ll probably be willing to help you.

Shango Los: I can also imagine, thinking back to 2008, even though we are still very early in the young days of the industry, in 2008 most of the analytics labs weren’t even around yet. I can imagine that getting your product tested so that you can check for homogenization and make sure there wasn’t any drift in the potency of your product, you probably had to really kind of bend over backwards to get that testing done.

Kenny Morrison: Yeah, well in 2008 it as was really when the idea was born and the product development probably started towards the tail end of 2008. Yeah, we would try the products and based on the psychoactive effects, the potency in that sense, we went, “Wow, this is too strong.” The very first products we dialed back the potency without even having testing available to us. Then 2009, this is so kind of archaic, but in 2009 there was a lot of people, and we were one of them, who’ve basically denoted the potency of the product based on an x. We would have like a 1x or a 5x or a 15x product. We knew what that x stood for as far as the potency that it imposed on us psychoactively, but we still didn’t attribute milligrams of THC to that x.

To this day I still use in my head that process of, “Oh, this is a 5x or 15x,” because I know that that x stands for .28 grams of cannabis, and based off the material we use that is about 12 milligrams of THC. In California one of the things we do, obviously we do all the testing we can now, and we base all of the milligramage on testing, but we still use in California the notion of translating the milligrams of THC into a comparable amount of dry cannabis, just so that the uninitiated consumer can get a sense of if someone has no idea what 180 milligrams of THC will do to them, it helps us to say, “Well, that’s actually the equivalent of about 4.2 milligrams of trimmed cannabis.” Just so they have something to compare it do.

But I think pretty soon here we’ll probably be able to retire that and just go with milligrams of THC because it’s a question we always like to ask people. I ask people every day when they’re familiar with our products or familiar with edibles in general, I say, “Oh, so what’s your dose in terms of milligrams of THC,” just because I’d like to track how sophisticated or where people are getting in terms of knowing their dose in terms of milligrams.

Shango Los: I think that’s a good point too because as California moves more towards full legalization, I mean, like right now testing is not mandatory and so it’s good that you do testing as part of your product development and manufacturing. But since it’s not mandated it’s going to be a good thing when all the products are tested and potency is not a guesstimation, and instead there’s actual certification alongside with it at the dispensary.

Kenny Morrison: Yeah, I mean, a big thing to remember too at this stage, testing is a guesstimation because there are no standards. In most states the labs do not share their protocol for how they test. All the various labs still consider that proprietary. I know there’s American Herbal Products Association and some other people are suggesting and publishing some cannabis standards, but whether or not people use them I think is still largely voluntary. Yeah, I mean, not only do we need more testing and perhaps the mandate of making testing absolutely required, but we need to get all the labs on the same page.

Shango Los: Yeah, absolutely, national standards. We did a show about that a couple of months ago, talking about how challenging it is because so many of the people who would be making both the standards for HPLC machines but also the standards of the protocols, they live in different states and none of them want to ship cannabis product back and forth to each other so that they can replicate each other’s tests. We need something to happen at the national level so that the top of the line scientists that live in different states can help us set up these protocols, without feeling like they’re putting themselves at career or criminal risk.

Before we go to the break I also I want to talk about your preferred extraction technique for the oil that goes into your edibles, because I’ve seen people try every kind of oil into edibles. Do you have one particular technique that you like across the board, or does the extraction technique, is it really dependent on what the product is it’s going into?

Kenny Morrison: It really depends on the product. I don’t want to get too specific because there are secrets, but we’ve definitely learned certain extraction processes work better for certain products. One place where I definitely draw the line is any time we extract CBD or any time we acquire extracted CBD, I want it to be done via CO2 and I think that’s important. To be quite honest, I think all extraction methods have their place. Maybe not all of them in California yet, but in Washington they definitely all have their place. There’s benefits to all of them, whether it be increased terpene content or increased efficiency. But I like to utilize them all.

Shango Los: Right on. Fair enough. Well, let’s go ahead and take another short break. We will be right back. You are listening to the ganjapreneur.com podcast.

Because you listen to the Ganjapreneur Podcast, it is very likely that you are a business owner now, or that you plan on getting into cannabis soon. If you’re starting a business, at some point you’re going to want some swag with your name on it, to give away, or maybe even to sell. Promotional items are a way to stay in your customer’s life long after you come into contact with them. It reminds them to double back and buy more of your stuff, but it also reminds them to tell their friends about you. Well, at Ganjapreneur, we’ve been asked by so many new cannabis business owners for referrals on promotional items, because they’re getting ready for a convention, or a party, or they just want to give it away, that we went ahead and brought together some preferred vendors, and we put them on our website for you.

The web address is ganjapreneur.com/promoitems. Everybody loves doing lighters and t-shirts, and those are still huge winners, of course, but some folks are even now doing logoed silicone dab jars, and rig rags, too. There’s so much to choose from. The website is ganjapreneur.com/promoitems. Go get some cool stuff to promote your company.

Welcome back. You are listening to the ganjapreneur.com podcast. I am your host, Shango Los, and our guest this week is Kenny Morrison, founder of Venice Cookie Company and co-founder of Evergreen Herbal. Kenny, we were talking about the products that you’re bringing to market and the amount of care and retrial that you put into them. Once you have those products up and going, the customers come to you, they find that you’re reliable, you develop a good reputation, and then you expanded into Washington state. The brand in California was originally Venice Cookie Company and then became VCC Brands, but in Washington, you are Evergreen Herbal. What was the key sign that you saw happen in Washington that caused you to say, “Okay, it’s time to go to Washington”?

Kenny Morrison: Reasonable thinking. I think when you see smaller states with maybe less special interest or less righteousness to put it in a different term, they’re a little quicker to act, they’re not such a giant ship that takes forever to steer, and they’re able to be more decisive on what they think is right for their people. Why Washington over Colorado? It’s a good question because after California we could’ve headed east to Colorado. Instead we headed north to Washington. I think the idea to be quite honest is the states were similar in size, had similar populations, and less people had been up in Washington than Colorado, so we just thought it made sense to head north, relocate, and maybe try and lock down the West Coast as far as acceptance of our brands across the whole West Coast.

Shango Los: Sure, and there sure is a lot of transiency between people between Washington and California. As folks go back and forth for vacations or they’re moving or something, they’re taking their brand affiliation with them. I was also thinking that with half the states in the country having medical now and now having a small handful having recreational as well, the demand for cannabis experts to feed the market is just growing and growing. Are you experiencing any challenges hiring experienced workers in either of the states?

Kenny Morrison: We’ve definitely seen the pool of talent get deeper over the years. We definitely had more access to more talent quicker in Washington based on the clarity in the regulations, based on the kind of the political climate surrounding enforcement and all that. But over the years, yeah, in general we’ve seen it get better, and sometimes we’ve actually relocated people from Washington to California to help out California.

Shango Los: That says a lot too about your commitment to the employees. A lot of people bring in employees and if they want a raise or after they’ve learned what the employee knows, they’ll dump them. But your willingness to move employees and encourage their increase in education and try to preserve that corporate memory says a lot about your value of your employees.

Kenny Morrison: Marco and I’s background was filmmaking. Marco is a cinematographer and me as a filmmaker, we love collaboration. That’s something, I’ve said this to other people, but I think a big part of where we got our work ethic came from the production industry, because you relocate your own location, you work 14, 16, 18 hour days, you get it done. First and foremost, if the day goes over, you keep working until you finish. You create some really strong, deep bonds. Because production, whether it’s production of cannabis products or production of film or television or whatever, you kind of give your life to it. Yeah, I love working with the employees. I love developing employees. I also love hiring employees that don’t need to be developed. I love the process of building something and doing it with good people and creating a family. We’ve always referred to the companies as a family.

Of course, like any family you’re going to have your dysfunctional moments and things you have to work through, but it’s really about creating a culture where people know they can speak up and they can be heard and they’re valued and they’re encouraged to be themselves. Something I love telling employees is thank you for being you, because it’s that diversity, it’s that self-confidence, it’s that encouragement that we give to each other that creates a fun culture and a place that’s fun to work but also a place where you enjoy working really hard.

Shango Los: Yeah, right on. That makes a lot of sense. Let’s talk about a dysfunctional moment because this discussion would not be complete without me asking you about the raid of your California facility a couple months ago.

Kenny Morrison: Oh dear.

Shango Los: We’d love to hear that story. Can you share it?

Kenny Morrison: Boy oh boy. We could fill podcast after podcast. It’s really a shame this is your last one because I was going to save all that for your next podcast.

Shango Los: Right on. I guess if you can’t really talk about it, because I know a lot of that stuff is still up in the air legally and stuff, what would you suggest as best practices that other entrepreneur business owners who have got cannabis businesses, do you have any advice for them?

Kenny Morrison: I think if we look at what we’ve seen happen in California lately, in the last few months there’s been some really great companies that have had issues with being raided. In California I think at this stage it still makes sense to be prepared for a raid. It’s been said that in the final year of alcohol prohibition there were more raids in that last year than there were in the previous 12 combined. I’m not trying to make any predictions here, but raids are still happening in California, and if you plan on being in the space, you might want to have some sort of raid preparedness plan in place. Your employees definitely need to know that they’re going to be taken care of. They definitely need to know that you’re going to have their back, and they definitely need to know that they should ask for an attorney be present if anyone wants to ask them questions, because anything you say, can and will be used against you. That’s that.

Shango Los: Right on. Fair enough. Hopefully the days of the raids for legitimate businesses will be behind us soon. I know that folks are kind of cut both ways in California about the Adult Use Act being potentially past in California this November. There’s a lot of the artisan growers and heritage era growers who are concerned about being squeezed out, folks are concerned about losing some of the family vibe of the industry as it becomes a little bit more commercial. But at the same time, other folks are really stoked to have the standardized practices and more testing and things like that. What are your feelings about the potential passing in November?

Kenny Morrison: There’s good and bad with everything. We can look back on bygone eras with a sentimental lens and see the good in how things used to be, and we can definitely look forward and see the good in how those things will be. Or things that aren’t so great. One thing I really, really appreciate about AUMA is the fact that, boy I’m going to butcher this and say this poorly, is the fact that it does away with, it absolves a lot of people there of their past records and it allows people who are still in prison or jail for non-violent cannabis or other related offenses the ability to use the new law as a way to fight to get out of jail. Again, people have said it much better than me, when the worst part of the drug war is the fact that it can send you to jail, when the harm done by the enforcement is worse than the harm done by the plant, we have an issue.

AUMA is really going to help a lot of people with the harm that’s been done to them by enforcement, and it’s going to prevent a lot of future people from having harm done to them by enforcement, people who should be able to qualify for student loans and stuff like that. Yeah, there’s going to be winners and losers. That’s how life is.

We were raided in California and from our perspective that raid wasn’t fair, but it was something that we knew was a possibility because enforcement has a different perspective on how to enforce law than maybe a cannabis advocate like myself. Nothing simple, nothing simple. In a lot of ways AUMA can be viewed as a compromise. Boy oh boy, maybe I’m sounding political and diplomatic right now, but I think part of being a success in the cannabis industry, because this is a show for entrepreneurs and what not, is you have to be able to roll with the punches. That’s what separates the winners from the losers sometimes, is being able to roll with the punches or navigate them when someone’s swinging at you.

Everyone who’s ever been in the cannabis industry has always had someone gunning for them in some respect. I don’t think we should think it’s going to be different whether AUMA passes or not. There’s always going to be people with opposed interest to your own vision or goals. That’s the push and pull of life, and that’s sort of what makes life a fun challenge if you look at it that way. It’s a lot about perspective, and God, it’s almost like they say in AA, it’s be aware of the things you can change except the things you can’t and keep on trucking, or whatever the slogan is.

I mean, bottom line is, if AUMA passes, does it stop me from building my company? No. If AUMA doesn’t pass, does it stop me from building my company? No. Could I have an opinion on it? Sure. But at the end of the day am I going to keep going regardless? Yeah. I could be a pundit but I guess I’d rather be a philosopher and just say, “I’m in this forever, and I’m dedicated to this, I truly believe legal cannabis makes the world a slightly better place.” That’s not because you have to use it to make the world a better place. I really think if people just accept others who use it, it makes the world a better place. If people are just a little more tolerant of people’s differences, it makes the world a better place.

I think something we’ve seen a lot in the media lately is a discourse on whether or not enforcement needs to be a little more tolerant of people. I think tolerant communities are beautiful communities and I think mainstream acceptance of cannabis will help push tolerance more into the mainstream. Wow, I’ve never said it like that, but I like that. That’s really my goal, is to make tolerance mainstream. If tolerance goes mainstream, whether it’s gay marriage or cannabis or bla bla bla, I think the world’s a better place, and that’s what I’m about.

Shango Los: Right on man. I think that is really well said and sets us up for a good place to stop today. Thanks for being on the show Kenny. I really appreciate it.

Kenny Morrison: Thank you. Take care.

Shango Los: Kenny Morrison is founder of Venice Cookie Company and co-founder of Evergreen Herbal. You can find out more at venicecookiecompany.com and forevergreenherbal.com. I especially suggest that you check out the About Us section on the Venice Cookie Company website for a great beach video showing the VCC manufacturing process alongside some great branding. It’s a really great piece. If you’re interested, go ahead and check that out.

You can find more episodes of the Ganjapreneur Podcast in the podcast section at Ganjapreneur.com and in the Apple iTunes Store. On the Ganjapreneur.com website, you will find the latest cannabis news, product reviews, and cannabis jobs updated daily, along with transcriptions of this podcast. You could also download the Ganjapreneur.com app in iTunes and Google Play. For info on me and where I’ll be speaking next, go to shangolos.com. Do you have a company that wants to reach our national audience of cannabis enthusiasts? Email grow@ganjapreneur.com to find out how. Today’s show was produced by Michael Roe. I’ve been your host, Shango Los.

This is the 54th episode of the Ganjapreneur.com podcast, and will be Shango’s final episode as our podcast host. He has had an amazing streak of valuable and entertaining interviews, and we know our audience is grateful to him for always bringing forward the important information from the brightest and most interesting guests and working to educate cannabis entrepreneurs everywhere.

So, thank you, Shango!

The Ganjapreneur.com podcast will be moving forward with a new host shortly.

End

Officials From Australia’s Capital Territory Announce MMJ Plan

8/04/2016

by

Australia’s capital territory government has announced that it will set up a medical cannabis program “as soon as it is practicable,” calling the measure a “priority,” the Canberra Times reports.

Australian Capital Territory (ACT) government officials say the system will give residents of Canberra, the nation’s capital and eighth largest city, safe access to medical cannabis.

“The ACT’s scheme will work to establish the ACT as a leader in the research and development of cannabis products here in Australia and develop a framework for the prescription, use and distribution of medicinal cannabis to those who need them on medical grounds,” Assistant Health Minister Meegan Fitzharris said in the report.

Fitzharris noted that there are still issues to be worked out, such as supply, as the government would likely be unable to support the production. Additionally, the guidelines for its use are still to be determined.

“The ACT government will develop evidence-based guidelines to inform and support medical practitioners in how to best prescribe medicinal cannabis products,” she said. “We will also develop education materials for clinicians and the general public to support these guidelines.”

The government expects medicinal cannabis to be available for patients next year. Victoria, New South Wales, and Queensland already have medical cannabis programs.

End

South Dakota Consultants Facing Drug Charges for Alleged Role in Cannabis Resort Scheme

8/04/2016

by

South Dakota Attorney General Marty Jackley has charged two Monarch America consultants with drug crimes, stemming from their involvement with a Native American tribe to open a marijuana resort, according to a release from Jackley’s office.

Eric Hagen, Monarch America’s CEO, was indicted by a Moody County grand jury with conspiracy to possess, possession, and attempt to possess more than 10 pounds of cannabis. Jonathan Hunt, the company’s vice-president and cultivation expert, faces charges of conspiracy to possess between a half-pound and pound of cannabis. Hunt’s lesser charges are in exchange for his cooperation with law enforcement, the release says.

According to a Fox News report, the duo acted as consultants to the Flandreau Santee Sioux tribe, who planned “an adult playground” that they anticipated could see $2 million a month in revenue. Eight months ago the tribe abandoned the plan and burned their marijuana fields after Jackley warned that changes to tribal law permits regarding marijuana would not apply to non-tribal members.

It is alleged that Hunt ordered cannabis seeds from a Netherlands-based company that were mailed to the tribe’s offices sewn in shirts and hidden in CD cases. Authorities also say Hunt helped the tribe cultivate their plants. He is expected to plead guilty on Aug. 15. The conspiracy charge, a class 6 felony, is punishable by up to two years in prison and a $4,000 fine.    

End

Hard Car Security: Transportation Services and Seamless Supply Chain Tracking Solutions

8/04/2016

by

Hard Car Security is a cannabis transport and security services agency based out of California. Operating with an emphasis on full transparency for all parties involved, including state regulators, Hard Car specializes in the safe transport of cannabis products and/or large quantities of cash.

“Hard Car Security’s core offering is compliant armor transportation services that’s focused on hiring veterans, and seamless supply chain integrity for the tracking of cannabis products and cash — with full transparency,” said Jeff Breier, co-founder of Hard Car Security, in a statement. The principals at Hard Car Security believe that by prioritizing veterans first and foremost for their security agent career opportunities, the company will ultimately help boost the nation’s perhaps most treasured — though often sadly disadvantaged — demographics.

According to Breier, who comes from a 30-year background in law enforcement, executive protection, asset protection, and security management, “Other security companies put their focus on cameras and access control and uniformed security guards in front of dispensaries … or even grow sites. Our main focus is not cameras and guards. Our main focus is highly trained agents and legitimate armored vehicles.”

Breier believes that employee and product safety are too important of an issue in legal cannabis industry to be overlooked. Hard Car’s growing fleet of heavily-armored vans and SUVs blend in naturally with all cars on the road, but many industry professionals still rely on unofficial means of transport. “For too long, this industry has relied on owners or employees to transport cash and product,” Breier said. “Putting employees at risk just to save a few hundred dollars is insanity … you need highly trained agents in armored vehicles to do your transportation services.”

Hard Car’s technological approach to security goes beyond just the protected transport of goods and large quantities of cash, however, and offers automated protection services as well, which are fully capable of integrating with all of the software tracking solutions currently offered to the cannabis market. These advanced security measures include solutions that not only are capable of tracking atmospheric information in a cannabis grow room or trimming operation, but also include options for a high-tech, mobile or fixed sensors unit that essentially functions as “an internal security guard that never calls in sick, never complains, and never falls asleep.”

“Our solution not only tracks what’s being given to us in full transparency and complete accuracy,” Breier said, “but at the same time it also can send alerts and give a snapshot to the manager of a grow-site, who, at any given moment, can log on and see the atmospheric condition everywhere inside that indoor grow. It’s tied right in to the same security system that we are offering, that we call our supply chain tracking solution.”

While Hard Car Security is currently operating only in the state of California, the security agency will seek out-of-state partnerships and plans to begin operations in other legal cannabis states as the normalization movement continues.

For more information about Hard Car Security, or to inquire about their services, visit www.hardcarsecurity.com.

End

WA Native American Tribe Approved to Grow Medical Cannabis

8/04/2016

by

Washington’s Puyallup Tribe of Indians can grow cannabis for recreational and medicinal use after amending their compact with the state, the News Tribune reports.

The tribe opened a marijuana testing lab in the state earlier this year after striking a deal with Gov. Jay Inslee and the Liquor and Cannabis Board. They are prepping a 5,700-square-foot warehouse in the Port of Tacoma for the venture, which at first will only be used for medicinal crops.

“I think it’s really important that somebody take the lead in this industry and in this medicine and it just came around this time it was us,” Tribal Chairman Bill Sterud said in the report.

According to a report from the American Indian Cancer Foundation, Native American cancer rates are “often much higher than non-Hispanic whites.”

The Puyallup tribe is the third to reach a compact with the state, following Washington’s Suquamish and Squaxin Island tribes.

The marijuana grown by the tribe will be tested by the tribe-owned Medicine Creek Analytics in Fife.

“We want to produce a good, clean, quality medicine that is tested at our lab because it’s all about the health factor of this product,” Daniel Duenas Jr., the tribe’s executive cannabis director said. “Making sure people know what they’re ingesting or inhaling or topically putting in their bodies is a clean product.”

There is currently no timeline to begin the growing project.

End

Obama Commutes 214 Federal Sentences; Most Jailed for Nonviolent Drug Crimes

8/04/2016

by

President Barack Obama commuted the sentences of 214 federal inmates on Wednesday — almost all were incarcerated for nonviolent drug crimes and 67 were serving life sentences, attorney Neil Eggleston, a member of the president’s legal counsel, said in a blog post.

“In 2014, the President set out to make meaningful changes to this country’s approach to clemency,” he wrote. “To spotlight instances of over-sentencing in our prisons, the President directed the Department of Justice to prioritize petitions for commutations from individuals convicted of non-violent drug offenses who were serving longer sentences than they would be given today if convicted of the same crime.”

Some of the individuals were granted clemency under the condition that they participate in additional drug treatment upon their release. Others had their sentences significantly reduced to terms more consistent with modern sentencing policies. While those reductions still require inmates to serve time, according to Eggleston, it also allows those inmates to continue rehabilitation programs such as drug and counseling services.

“Underlying all the President’s commutation decisions is the belief that these deserving individuals should be given the tools to succeed in their second chance,” he said in the post.

The Obama Administration has granted 562 commutations to date — more than the past nine presidents combined — 197 of those were life sentences.

End

Portland Officials May Dial Back Cannabis Regulations

8/03/2016

by

The City Council of Portland, Oregon may soon admit that it wrapped legal cannabis businesses in too much red tape, according to a Willamette Week report released this morning.

The council adopted its strict regulatory structure last year. At the time, Mayor Charlie Hales — who championed the move — said, “I want us to assert our ability to be a local regulator … and then, over time, tune those regulations.”

Now, however, it appears that a majority of Portland City Council members believe that the regulations have perhaps gone too far.

“We shouldn’t perpetuate fees and regulations simply to maintain a regulatory structure if the regulatory structure is unnecessary,” says Commissioner Steve Novick.

In her article, Willamette Week reporter Beth Slovic identifies five consistent complaints heard from the owners of cannabis companies throughout Portland:

  • that small cannabis businesses face too many fees;
  • that cannabis companies are singled out with requirements that don’t apply to other types of businesses;
  • that the city often implements fees and restrictions for cannabis companies that duplicate those established at the state level;
  • that the agency involved of cannabis regulations, the Portland Office of Neighborhood Involvement, is unqualified for its responsibility;
  • and that Portland unnecessarily prohibits certain activities that state regulators chose to allow, such as cannabis delivery services.

The City Council will discuss dialing back some of the regulations later this fall.

In the meantime, however, struggling cannabis business owners like Paul Pedreira, owner of Portland Best Buds in the St. Johns neighborhood of Portland, are stuck in an ongoing struggle against regulatory overreach. “It feels like they’re trying to thin out small businesses by making it harder and more expensive to operate,” Pedreira said.

End

Study to Determine MMJ’s Effectiveness as PTSD Treatment Now Accepting Applications

8/03/2016

by

A study aimed at determining whether cannabis can help relieve post-traumatic stress disorder symptoms is ready for volunteers, the Military Times reports. Ideal candidates will have a combat-related PTSD disability rating from the Department of Veterans Affairs.

The Multidisciplinary Association for Psychedelic Studies program is funded by a $2.2 million grant from the state of Colorado. It will be conducted at Baltimore, Maryland’s Johns Hopkins University, and Phoenix, Arizona’s Scottsdale Research Institute.

Seventy-six veterans will participate in the study over 12 weeks, with about four subjects beginning each month at both sites. It is expected to take two years to complete. More than 100 veterans have already applied, said Dr. Sue Sisley, study organizer and physician at the Scottsdale site.

“We’re not arguing that cannabis is a cure, but our hypothesis is that it will at least reduce the symptoms,” she said in the report.

The study will utilize cannabis with high THC levels, high CBD levels, an equal ratio of THC and CBD, and a placebo with no significant levels of either compound. Scientists believe that high-THC cannabis acts on memory and fear processing receptors in the brain, while high-CBD cannabis may provide a role in reducing depression symptoms and anxiety. According to a Veterans Alliance for Medical Marijuana report, cannabis with equal ratios of THC and CBD is favored by combat veterans who are using the drug to combat PTSD symptoms.

Sisley recommends against daily marijuana users participating in the program because subjects will have to abstain from use for at least two weeks before the study begins.

“If they’ve already found that it’s beneficial to them, it wouldn’t be ideal for them to just stop,” she said. “That could be pretty brutal for them.”

End

Study: Not Many Differences Between Male and Female Cannabis Use

8/03/2016

by

A Washington State University study has found that men use more cannabis more often than women, and that males and females prefer different delivery methods – but the conditions for which cannabis therapies are used are much the same.

Of the 1,364 men surveyed, 10 percent indicated they use cannabis “all day everyday,” compared to 7 percent of the 1,004 female respondents. About 43 percent of respondents from each sex indicated using one to four times per week. About two percent of both males and females reported consuming more than 1 ounce per week, while 25 percent of females and 16 percent of males reported use of less than 1gram.  

Men reported they were more likely to partake using joints, blunts, vaporizers, and concentrates; women were more likely to use pipes and edibles, including tinctures and capsules.

About 70 percent of men and 68 percent of women surveyed believed cannabis is not addictive; however some respondents indicated having withdrawal symptoms upon reducing or stopping cannabis use. Symptoms of irritability, appetite loss, anxiety, and vivid dreams were the most commonly reported.  

The majority surveyed indicated using cannabis therapies to treat anxiety, depression, nausea, and pain.

In a “novel and somewhat surprising” finding, men were more likely to report altered time perception, increased musicality, and enthusiasm when high; women were more likely to report “a desire to clean.”

“[This] likely reflects the fact that women are more likely to be responsible for cleaning duties,” according to the study authors. “It is also possible that some women interpreted this item to include personal cleaning and self-care, which in general women are also likely to perform more frequently.”

The report cautions that generalizations should not be made due to their study results, which they say could be used to “guide future research on biological and psychosocial mechanisms” and might help clinicians treat individuals with “cannabis use disorders.”

End

Clinton Leading Trump in Poll of Cannabis Industry

8/03/2016

by

According to a survey by Marijuana Business Daily, 43 percent of marijuana professionals and executives would vote for Democrat Hillary Clinton if the election were held today, while 26 percent would vote for Republican Donald Trump, with 16 percent opting for Libertarian Gary Johnson. Green Party Candidate Jill Stein was not mentioned in the poll.

The trend is the same among cannabis industry investors, but shows a much closer tally between Clinton and Trump, 46 percent and 38 percent respectively, with Johnson netting just 8 percent.

During the Democratic National Convention, the party outlined a “progressive” platform that included a “reasoned pathway” to future marijuana legalization. Clinton has said she supports rescheduling cannabis from a Schedule I substance to a Schedule II, which would remove barriers for researching the drug. She received a “B-plus” on cannabis policy from the Marijuana Policy Project.

Trump has said he is in favor of medical cannabis, but has not outlined an official policy. In an interview with the Washington Post, the real estate mogul said legalization should be a decision left to individual states. In another interview on C-Span, he indicated that he thought regulating marijuana is “bad.” Trump earned a “C-plus” rating from the advocacy group.

Johnson, who led New Mexico as governor for two-terms, was given an “A-plus” by the MPP, who also endorsed the candidate’s White House bid. His showing in the survey is double his support in most national polls. Johnson stepped down from his position as president and CEO of Cannabis Sativa, a legal cannabis company, to focus on his campaign.

End

Boston’s First Dispensary Opens Today

8/03/2016

by

Boston’s first dispensary will open its doors today, with more than 200 patients pre-registering with Patriot Care to access the shop, the Boston Globe reports.

“We’re proud to be here,” Robert Mayerson, CEO of Patriot Care, said in the report. “We’re taking a space vacant for 10 years and bringing economic vitality back to it.”

The dispensary, located on Milk Street, is the seventh to open in the state, and is the second for Patriot Care, who opened their first location in Lowell in February.  

The shop opens its doors despite threats from two members of the City Council for a November referendum that would ban dispensaries in the city. Boston Mayor Martin Walsh has been a vocal opponent of the cannabis industry but promised to uphold the 2012 law.

“I am pleased that over the past few months, Patriot Care has worked closely with the administration to address many of the neighborhood concerns,” he said in a statement.

The statement did not outline the so-called host agreement between Patriot Care and the city, which has become commonplace for dispensaries in Massachusetts. Such contracts usually allow the dispensary to open, but with municipalities often asking for a percentage of sales and charitable donations. The mayor’s office also declined to produce a copy of the agreement.

Mayerson also did not offer details of that agreement, but indicated that the company has donated basement space to Compassionate Care ALS, a nonprofit that helps patients with neurodegenerative disease. The company also promised not to sell recreational cannabis even if voters approve legalization in November.

Patriot Care expects to serve about 150 per day at the Boston shop.

End

A police truck with the DEA insignia.

DEA Still Undecided on Rescheduling Cannabis Decision

8/02/2016

by

Following reports that the DEA would decide on whether or not to reschedule marijuana by Aug. 1, there now appears to be no timetable for the agency to make that decision.

In an interview with aNewDomain, DEA Staff Coordinator Russ Baer admitted that the agency has a scientific and health recommendation from the FDA — a required step for rescheduling — but “are not holding [themselves] to any artificial timeline.”

Baer said that while it is within the DEA’s power to reschedule drugs outlawed by the Controlled Substances Act, Congress could also act and pass legislation rescheduling “any substance.” He suggested the agency was open to removing roadblocks for research, noting that the DEA doesn’t create the laws, they only enforce them.

“We want there to be research on marijuana and its component parts, there needs to be [more] studies about both the benefits and the adverse effects about marijuana,” he said in the interview. “We want to remove the roadblocks for [cannabis research.] We want to know more about cannabis – we need rigorous scientific research – the DEA stands behind the scientific process.”

Marijuana, Baer explained, is not at the top of the DEA’s priority list. He said the DEA isn’t chasing around mothers who are picking up CBD oils for her epileptic child in another state or people sneaking tinctures into their bags. He said, currently, the agency is focused on America’s opioid crisis.

“Marijuana is important, but most of our attention is elsewhere,” he said. “The cannabis rescheduling question may be top of mind with the nation’s media and the growing legal cannabis industry at large, but the DEA has bigger fish to fry.”

End

25th Annual Hempfest Happening August 19-21 in Seattle

8/02/2016

by

The 25th annual Seattle Hempfest — the world’s largest “protestival” and inspiration for cannabis celebrations around the world — is only a few short weeks away. Starting August 19 and extending through August 21, Hempfest 2016 promises to be a cannabis extravaganza of truly epic proportions.

Ganjapreneur recently caught up with Sharon Witson, Hempfest’s General Manager, who explained that this year’s event has been made possible thanks to more than 1,000 volunteers who will be working 1,800 shifts throughout 10 days on site.

“Hempfest is a passion and a family,” said Witson. “It’s easy to get caught up in the emotion and soul that goes into producing it.”

Hempfest’s origins as a “protestival” — originally formed against the Drug War and prohibition of cannabis — might seem outdated to some, especially considering that Washington was among the earliest states to legalize recreational marijuana. However, most cannabis enthusiasts are well aware that the battle for normalization is far from over, and Hempfest is an important venue for the spreading of knowledge, acceptance, and the vastly unique culture of cannabis. Plus, they have good music, food, cool products, and fun vibes.

“There is nothing like Seattle Hempfest,” said Witson. “We are the world’s largest annual free speech event. We’re also the Pacific Northwest’s largest free music festival. We have 120 bands on our six stages that play between our amazing speaker lineup.”

But the event offers more than just free music and free speech:

“We create a beautiful platform for activists to educate the public each year. We’re empowering people and giving them the ability to expand their reach and make a difference in the world. We have moms like Megan Holt and Sierra Riddle, who are using cannabis to cure their children; world class cultivators like Farmer Tom and Ed Rosenthal; cannabis business pioneers like AC Braddock, Crystal Oliver, and Aimee Warner; medical professionals like Dr. Bearman and Nurse Heather Manus.”

Former inmates Jeff Mizanskey and George Martorano, both of whom were released last fall from federal prison sentences of life without parole for cannabis, will also be speaking, Witson said.

While attendance to the event is free, there are event sponsorship packages available for companies involved in the cannabis industry. These sponsorships are both a way to show support to Hempfest — the longest-running cannabis celebration in the world — and to secure truly widespread exposure for your company or brand, as attendees and journalists will be traveling from around the world to witness and partake in the enormous festival.

“We live in pioneering times,” said Witson. “We want to see strong Washington brands emerge as legalization spreads across the nation and eventually the world!”

If you’re attending this year’s Hempfest, keep an eye out for the Ganjapreneur team — we’ll be there, and we love opportunities to meet our audience face-to-face, so stop by and say hello!

End

AK Marijuana Board Member Removed, Claims Officials Impeding Industry

8/02/2016

by

A former member of the Alaska Marijuana Control Board alleges that his ex-colleagues and members of Gov. Bill Walker’s administration are trying to delay implementation of the legalized cannabis industry, KTUU 2 reports.

Bruce Schulte was removed from the five-member board by the governor last week, after being demoted from his role as chair of the board earlier this year.

“There’s an underlying agenda to subvert the process, to delay the implementation of a legalized marijuana industry,” Schulte said in the report. “It doesn’t look like the State of Alaska is really serious about making this happen.”

Grace Jang, a spokesperson for the governor, said Schulte’s removal was due to his unsatisfactory approach to the staff and administrative process.

Schulte says that the governor wants a board that is “more favorable to a certain agenda,” but was not sure exactly what that agenda is. He contends that officials are pushing for onerous regulations that will have a negative effect on the industry.

Board member Brandon Emmett, who represents the cannabis industry on the board, called Schulte an “ardent advocate for the marijuana industry.”

“I admired his zeal for staying true to the voter initiative timelines and assuring the industry was fairly represented,” Emmett said in a Juneau Empire report announcing Schulte’s removal from the board. “I can only speculate as to the reason for his removal, but would hope Walker sees fit to insert a strong, responsible voice in his place.”

His replacement has not been announced.

End

Private-Equity Companies Hoping to Capitalize on ‘Green Rush’

8/02/2016

by

Private-equity companies are entrenching themselves in the emerging cannabis industry, with one firm reporting they raised more money than intended during their first two funds, according to a Business Insider report.

“It’s like a floodgate,” Steve Gormley, CEO of Seventh Point said in the report. “…I haven’t seen anything like this in my career.”

Seventh Point is poised to complete $75 million in fundraising this year, focused solely on cannabis industry ventures. About 18 percent of new marijuana businesses have seen injections of startup funds from private-equity and venture-capital investors, the report says.

According to Marijuana Business Daily’s 2016 fact book, formal market sales of legal cannabis are set to reach $4.3 billion in 2016, and could touch $11 billion by 2020. Nearly half, 47 percent, of active cannabusiness investors plan on pouring $10 million or more into private companies in the next year.

Privateer Holdings, founded in 2011, received $75 million from Silicon Valley’s legendary Founders Fund in 2015 – further proof that private-equity companies who typically operate outside of the cannabis sector believe it will become lucrative for investors. Dutchess Capital, whose diverse investments include energy, healthcare, and information technology, unveiled their plan to focus on cannabis in 2012 and were early-stage financers of MassRoots to the tune of $475,000.

According to an analysis from ArcView Market Research, the sector is set to grow by 30 percent annually until 2020.

End

New Jersey Approves Cannabis for PTSD, Awaits Christie’s Signature

8/02/2016

by

Patients suffering from post-traumatic stress disorder could be granted access to medical marijuana in New Jersey if Gov. Chris Christie (R) signs legislation approved by state lawmakers yesterday, according to an Associated Press report.

The bill is meant to help military veterans diagnosed with the condition, but the Republican governor is a staunch opponent of the cannabis industry and getting his signature is not guaranteed.

“For many veterans, the effects of PTSD are not always healed by time and can be lasting and profound,” Democratic Assemblyman Tim Eustace said in the report. “When it comes to PTSD, medical marijuana holds the promise of providing significant relief as it does for many other illnesses and conditions that are not easily treatable with traditional medication.”

The measure allows for cannabis therapies for PTSD only if it has proven untreatable by conventional methods.

The state currently has a very strict medical cannabis program, allowing its use for severe, chronic and debilitating conditions such as terminal cancer, muscular dystrophy and multiple sclerosis. It is also available to patients diagnosed with seizures and glaucoma if conventional therapies have failed.

According to a New Jersey Policy Perspective and New Jersey United for Marijuana Reform report published in May, a recreation cannabis industry could bring about $300 million a year into state coffers — but Christie would never approve of, or sign, the measure.

End