Ohio Planning for a Cashless MMJ Program

A proposal attached to Ohio’s new medical cannabis law could make it the first state to implement a cashless payment system for the retail distribution of marijuana products, Cleveland.com reports.

The plan, proposed by Sen. Bill Coley, allows state officials to establish a “closed loop” payment processing system for cannabis dispensaries that would use methods similar to prepaid debit or gift cards. According to Sen. Coley, the plan would alleviate some of the cash-based security concerns that have haunted medical cannabis business owners in every other U.S. state to date.

According to Coley, the program would establish prepaid cannabis accounts for patients and caregivers alike. Patients would be allowed to add funds to their account using cash, check, or credit card, and these transactions would take place at state-licensed liquor stores or other state-run agencies capable of processing payment information.

Medical marijuana businesses would also have accounts on the system. These accounts could be used to both perform transactions between cannabis companies and to pay bills. Any payments needing to go outside the system could be done on behalf of a cannabis company using a check cut by the state itself.

The system would track every transaction in the industry, Coley said, and the information would also be made readily available for the federal Financial Crimes Enforcement Network. “If you want privacy in this business the state of Ohio, go to Illinois because you don’t get that in the state of Ohio,” said Coley.

The Ohio Department of Commerce, which has been authorized to establish a payment system for medical cannabis, is looking into the idea, said spokesperson Kerry Francis.

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Is Personal Chemical Analysis the Future of Cannabis Testing?

Consumers want to know what they are putting in their bodies. As the legalization of medical and recreational cannabis becomes more commonplace, experts and tools to help make informed decisions are becoming increasingly important. From THC/CBD concentrations to pesticides, many consumers — especially those still using the informal market — often do not have the full picture of what compounds are in their buds, concentrates, or edibles.

However, there are companies, such as CBScientific and Cannalytics, who are making some of this information more accessible to the end-user, i.e. the consumer, offering test kits to measure the presence of THC and CBD in cannabis.

Another company, MyDx, is taking testing to another level with a handheld “electronic nose” device, providing users with a “Total Canna Profile” of what they are smoking.

These tests are not exactly created equal, and the services provided by these companies do vary. MyDx touts their products as a way to not only identify the active chemicals in cannabis samples but also to assist patients in determining which ratios best suit their needs.

MyDx CEO Daniel Yazbeck says he started wondering how and why cannabis works about eight years ago and soon realized there were no tools on the market that helped consumers figure that out.  “I’m learning more and more that the cannabis industry can really use our product,” he said.

MyDx is a small analyzer that fits in the palm of your hand. The user places a small amount of ground up flower into a chamber and closes the port. The device analyzes the sample and syncs with an app, informing the user about the flower’s chemical profile with up to 80 percent accuracy. Those raw numbers are matched with MyDx’s database, which is crowdsourced by labs working with the company as well as MyDx users. Yazbeck noted that the database is HIPPAA compliant, so users need not be concerned with the private information logged into it.

Using the app, consumers have the option to rate whether a strain helps relieve symptoms, such as anxiety or epilepsy, or affects any other aspect of life, such as happiness, energy levels, and focus. The app also allows users to choose which symptoms they are experiencing and will help identify which strain might help relieve them.

Presently, the device only works with dry cannabis and is not compatible with concentrates and edibles. Yazbeck indicated that they are working on a sensor that would be able to read the profile of concentrates, but his focus for the next sensor is identifying pesticides and heavy metals.

“How big this market is compared to other industries, we’ll see,” Yazbeck said. “But we’re ready to deploy more products and we’re excited about … anytime we can help cannabis consumers the best we can, and offer a sensor that offers a broader chemical profile.”

Yazbeck said the new sensors would be available “later this year.”

CBScientific’s products are less high tech. The kits contain a liquid that is dropped onto a small cannabis sample. The combination creates a color reaction based on the chemicals present in the sample.

While MyDx translates raw data into strain information, CBScientific kits only test for whether or not the sample contains THC or CBD, using a color code system to determine approximately how much of the chemical is present. This is useful information for users trying to determine whether or not the strain they think they are buying is actually that strain. The problem is that the consumer must first know what ratios the strain should have.

For example, the Girl Scout Cookies strain contains between 17 percent and 28 percent THC, and between .09 percent and 0.2 percent CBD, according to information provided by Steep Hill Halent. If an individual uses the CBScientific kit to test what they believe to be Girls Scout Cookies, and those levels don’t match up, it is unlikely the strain is Girl Scout Cookies.

This information is also useful for patients who already know what best treats their ailments. If strains with 20 percent THC content have been therapeutic, a patient could use the kit to ensure they are taking the medicine that works best for them.

CBScientific Senior Researcher Alan Mathon says his company entered the cannabis testing business because “safety is of the utmost importance” in any industry with a medical component. Their kits test virtually any product that would contain THC or CBD — flower, concentrates and edibles — and often take less than a minute to show the results. Their ‘Test 4’ kits do not test for pesticides and heavy metals and, according to Mathon, a small test to detect over 530 pesticides is “not as simple as creating a small detection kit.”

He admits that one of the downfalls of the color system is that people see colors differently, so a deep red might look pink to some people — but it would still signify a positive text. Mathon says the company is developing tests with more range and the ability to detect other compounds.  

“We are working with chromatography labs across the United States, Australia, and Japan to create a simplified pesticide detection kit for any user that would allow them to ship their product from anywhere in the world regardless of legality,” he said.

The good news for both companies is that they are able to provide goods and services in the cannabis space without facing many of the industry’s negative side effects, such as banking and credit card concerns.

MyDx is publicly traded as an over-the-counter stock. The company offers additional kits that test air and water quality using the same tech as their cannabis device. CBScientific has submitted its product for approval to the Food and Drug Administration. But both companies are trying to fill a role vacant due to the federal government’s inaction on legalization, decriminalization or rescheduling of cannabis – to help both medical and recreational cannabis users make more informed decisions about what they want, or don’t want, in their products.

Taylor West, Deputy Director for the National Cannabis Industry Association thinks self-testing cannabis is “a great option for people who want that added layer of information,” but that the industry is moving toward more mandated testing with informational labeling and packaging. She said she wouldn’t call heavy metals in cannabis a “widespread” issue, but she welcomes independent oversight.

“There are people who are motivated to find products that are produced in a more minimalist environment that doesn’t run the possibility of introducing some of these additives,” she said. “Certainly for people who are particularly concerned about their packaging and want to do additional testing, it’s good for them.”

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Florida Harvests First Medical Cannabis Crop

Florida’s first medical cannabis harvest was performed this week by Surterra Therapeutics, according to a News-Press.com report.

“It’s a very exciting place to be in the medical field in Florida right now because this is not just a new medication we’re talking about,” said Surterra’s medical director, Dr. Joseph Dorn. “This is a mindset transformation in the treatment of patients, probably tens of thousands of patients whose symptoms are not completely relieved right now.”

In 2014, a change in state law opened the door for licensed farmers to grow particularly therapeutic cannabis strains, most notably Charlotte’s Web — a strain renown for its low-THC and CBD-rich cannabinoid makeup. These non-euphoric strains are only available to patients suffering from seizures and other qualifying conditions. Another law established in 2015 allows for full-strength cannabis plants to be cultivated and prescribed for the alleviation of pain, nausea, and other symptoms in patients who are considered terminally ill.

Surterra has a 6,000-square-foot cultivation facility in rural Tallahassee to grow its CBD-rich cannabis. The company also runs a smaller facility outside of Tampa, which is growing full-strength cannabis.

A comprehensive medical cannabis program similar to one narrowly defeated in 2014 will appear on the ballot in November. If approved, the companies currently growing cannabis will likely be in an excellent position for expansion into the full-fledged MMJ system.

Medical cannabis patients in Florida are currently only allowed to use marijuana via smokeless consumption methods, such as tinctures, edibles, or capsules.

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Medical Cannabis Initiative Approved for Arkansas Ballot

Voters in Arkansas will decide on legalizing cannabis for medicinal use this November, as the proposal spearheaded by Arkansas Compassionate Care garnered enough signatures to be included on ballots, the group announced in a press release.

The measure would allow doctors to recommend cannabis to patients with chronic or life-threatening medical conditions. Individuals with conditions such as cancer, hepatitis C, Chron’s disease, Alzheimer’s, post-traumatic stress disorder, HIV/AIDS, lupus, autism and Parkinson’s disease would be eligible under the ACC proposal.

A second initiative, the Arkansas Medical Marijuana Amendment, is also vying for ballot consideration, which ACC Campaign Director Melissa Fults says would force both to fail if the AMMA was successful.

“…Polling suggests that if both initiatives make the ballot, it’s almost certain that both will fail. Today, as we turn toward November, I’m asking Jason Polk & David Couch to end their campaign and join us to ensure sick and dying Arkansans get the most patient-oriented initiative we can,” she said in the release. “Please do not place thousands of sick and dying Arkansans’ future in jeopardy. Patients need safe and legal access to cannabis and if you continue we risk losing the best chance that we’ve ever had. Placing two initiatives on the ballot will cause both to fail.”   

The ACC sponsored a similar measure in 2012, which failed by just 2 percent. The group submitted 77,516 valid signatures to the Secretary of State, about 10,000 more than required for the initiative’s approval.

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cannabis topicals

Five Things to Know About Cannabis Topicals

There is still much to discover about cannabis’ medicinal properties, and its topical uses may be one of the areas we know least about. Most of the information we do have comes from trial and error, digging through old herbal archives, observation, and intuition.

Most herbs have multiple uses, so it’s really no surprise that cannabis can be used as a topical application to help with the body’s aches and pains. Its analgesic qualities can ease muscle tension and it works as an anti-inflammatory agent. Massaged into sore muscles, it can be a truly transcendent experience.

However, not all topicals are equal and with a burgeoning variety to choose from, what do you need to know to make an informed choice?

What type of cannabis is used?

Some people are non-discriminating and toss shake from several different strains into their mix. Maybe this is okay, but generally the higher the quality of marijuana, the stronger the salve. If your topical supplier can talk knowledgeably about the ingredients used, you’re on the right track.

CBD or THC?

Anyone can buy products with CBD (cannabidiol), but if you want a topical with THC (Tetrahydrocannabinol), you’ll have to buy it from a qualified store in a legal state. THC is the most well-known compound in cannabis and highly effective for pain relief. CBD is lesser known and is present in both marijuana and industrial hemp. CBD is excellent as a soothing anti-inflammatory.

How often do you apply it?

While cannabis can sometimes feel miraculous, it’s not a miracle cure. When used topically, the balm will wear off. The pain will come back and you’ll have to reapply it regularly.

What other ingredients are in your topicals?

Most people who make cannabis topicals lean toward natural, organic ingredients. This means they will act like natural ingredients. Put them in the sun or a hot car and they’ll separate and turn liquid. This is normal. Topicals generally keep best in a cool, dry cupboard, but they can be refrigerated if necessary.

Will it smell like cannabis?

If you don’t like the smell of marijuana, look for a brand that uses concentrates only, whether that’s oil, rosin or some combination. Some people like the earthy feel and smell of a topical that uses the whole cannabis plant cooked in oil. Some don’t. It’s a matter of taste.

Some studies show that the largest growing demographics for new cannabis users are women and baby boomers. Many of them do not want to smoke and are choosing to enter slowly, often with topicals. It’s a great introduction to the plant: your muscles get stoned while your mind stays clear.

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Competing Social Use Initiatives Planned for Denver’s November Ballot

Two separate cannabis advocacy groups are working on competing ballot initiatives that would allow the social use of cannabis in quasi-public locations throughout Denver, the Denver Post reports.

The first proposal, put forward by the Denver chapter of the National Organization for the Reform of Marijuana Laws (NORML), would create a system for the licensing and regulation of a new type of business: private cannabis clubs.

The other proposal — drafted cooperatively by the Marijuana Policy Project, the Vicente Sederberg law firm, and various Denver business owners — would allow most types of existing businesses, including bars and restaurants, to establish a 21-and-over cannabis consumption area. This consumption area would have to be separated from the rest of the business, and business owners would also have to seek approval from a local organization before moving forward with a designated cannabis consumption spot.

The NORML cannabis clubs proposal is about two months ahead of “The Neighborhood Approved Cannabis Consumption Pilot Program” in its petitioning process. According to Denver NORML’s executive director Jordan Person, the group’s all-volunteer petitioners are already halfway toward their goal of 4,800 verified Denver voter signatures.

Kayvan Khalatbari, the primary sponsor of the consumption areas proposal, said the group hopes to convince Denver NORML to drop its private clubs initiative because it continues to separate cannabis from typical Denver life, as opposed to integrating with it. “I just think it’s more considerate of all the things we’ve learned in the cannabis industry here in the last six months or a year, with all the stakeholders and their input,” Khalatbari said.

Person told the Denver Post that such a withdrawal is unlikely: “We have no reason to withdraw when we’ve made it so far. That would be ridiculous.”

If both measures are passed, it’s currently unclear what would happen. Person believes that each proposal would take effect, but Khalatbari said that the proposal with the most votes would overrule the other.

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Picture of Boston, Massachusetts across a water channel.

Massachusetts Court Approves Legalization Ballot Initiative

Massachusetts’ Supreme Judicial Court unanimously approved the ballot question to legalize cannabis in the state, but did force the title to be changed from “Marijuana Legalization” to “Legalization, Regulation and Taxation of Marijuana,” the Associated Press reports.

The justices said the submitted title was “clearly misleading” and also ordered changes to the wording of the “yes” statement, but found no other issues that would have forced the measure to be disqualified.

The case hinged on whether or not the proposal had mislead ballot signees by not informing them that retail edibles would be allowed under the measure. The “yes” statement will now include language making it clear to voters that concentrates and edibles would be available under the law, if enacted.

Supporters submitted more than 25,000 certified signatures to the Secretary of State, exceeding the 10,792 required for the question to appear on November ballots.

“Massachusetts voters will have their voices heard in November,” Jim Borghesani, a spokesman for the Campaign to Regulate Marijuana Like Alcohol said in the report. “Our initiative, we think, puts forth a very commonsense alternative to the failed prohibition system that exists today.”

The plan would set up recreational cannabis infrastructure, imposing a 3.75 percent excise tax on retail sales in addition to the state’s 6.25 percent sales tax. People 21 and older would be allowed to possess up to 1 ounce of marijuana for personal use.

Republican Gov. Charlie Baker and Democratic Boston Mayor Marty Walsh have publicly opposed marijuana legalization, but welcomed the court’s decision to include the language clarifying that edibles would be permitted under the plan.

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Evan Carter: Building a Dope Lifestyle Magazine

Evan Carter is the co-founder and President of Dope Magazine, a cannabis and lifestyle monthly that is distributed across the United States. Recently, Evan sat down with our podcast host Shango Los for a conversation about his magazine’s origins and journey over the years. Founded in 2009, Evan takes us through Dope‘s evolution from a small, local publication to an internationally-recognized media outlet that prints 135,000 magazines per month.

Listen to the podcast below or scroll down for 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 my guest is Evan Carter.

Evan Carter is co-founder and president of Dope Magazine, a nationally distributed cannabis and lifestyle monthly. He has been building print publications since 2006, and in 2011, he co-founded Dope Magazine and served as the editorial director until 2015, when he became the magazine’s president. Welcome to the show, Evan.

Evan Carter: Hey. Thank you, Shango. I really appreciate it, my man.

Shango Los: I love Dope Magazine, not only because of the content, but because the magazine itself is so beautiful. One of the things that I find pretty remarkable, is that the cannabis scene is so diverse. There are so many different kinds of people coming to it, and yet, your magazine seeks to have something for everybody. You’ve got some cannabis stories, some political stories, some music, and of course, lots of cool cannabis ads. How do you determine the right balance of articles to make up a particular issue?

Evan Carter: Well, thank you, man. Yeah, really in the beginning, our goal was really to bring some credibility to the cannabis industry, with a nice magazine that people could look at, so we try to have a nice balance of, like you said, political, some fun stories, some medical stories, the product reviews, and really, it comes down to our team. We have, I don’t want to say big editorial team, but a decent sized editorial team. They sure work like a big team, and we have weekly meetings and we really talk about what’s going on. We try to tie things into the current events, what’s happening. We also want to make sure that we’re featuring the coolest products. One of our biggest ones, as you brought up, the political one, was the Bernie Sanders, and that was, we just decided to go after Bernie Sanders.

We really felt like his message was right for what we’re trying to do, and really start the revolution, and normalize cannabis, and we think that by normalizing cannabis, we can really start to change the world, and start to change people’s perceptions, so we really just decided to go after people like that, and start featuring them.

Shango Los: It must be really cool to work in an area as wide as cannabis, because I have worked at magazines before and if you’re on 1 topic, sometimes you get tired of covering that same topic, but running a cannabis magazine, like, there’s nothing you can’t cover.

Evan Carter: You’re right, and it constantly changes. I mean, we go to print, our stories come in about a month, month and a half before we have to send our magazine out, because we have to layout, we have to edit, it’s a big cycle. Just trying to keep up with those times is really hard, but yeah, I mean, we can cover so many different things, because really, at the end of the day, we always say, cannabis users are people, too, you know? Just like you read in the People magazine. They eat ice cream, all that fun stuff. It’s just real, and I think that there’s so many people out there that utilize the plant in so many different ways, that we can cover so many different topics, and somebody’s going to get something out of it. It’s a lot of fun, and yeah, but just trying to stay on top and keep people interested is definitely a challenge.

Shango Los: Yeah, and I can imagine that. Yeah, it’s a lot of fun, but also there’s a lot of production, heavy lifting that has to be done, as well. In doing my homework for the interview today, I actually didn’t know that you put out multiple editions of the magazine every issue. That makes a lot of sense now that I’ve thought about it, so will you go ahead and explain how the production of the different magazines for different regions of the country works?

Evan Carter: Yes. We just, it’s funny you say that, because we just last week, we’re trying to get on the same terminology with just the whole staff about how the magazine is built, because people call one section something different, and so we had this big meeting about, “Hey guys, call this part the ‘National Section’ and this part the ‘Regional Section,'” because it is pretty confusing, so what we do is we print about 135,000 magazines a month, and they’re distributed all over the US, heavily on the West coast, obviously, because that’s where the legal markets are, and we sprinkle around the East coast and the Midwest and the Southeast, and a little bit in Canada, too. We print a national section which is about 64 pages, and that really, we call it the “National Section,” because it can really span everywhere.

People in Florida can read a story about it and get it, people in Washington can get it, and then each market, we have what we call a “Regional Extension,” so it just depends on how big that market is, how many pages it will get. Washington and Oregon have about 64 pages added on to the 64 page National Section that we print, California, we do a Northern California and Southern California, each of those have about 40 to 48 pages each. Denver, or the Colorado edition has about 48 pages, and we just launched in Arizona, which has about 16 to 32 pages. We really want it to be localized. I mean, just because you can’t cross … I can’t get the same strain in Washington as I do in Oregon, so if we’re going to print an Oregon magazine, we really want people to be able to get that information and go to the store and find those products, and meet those people and see those gardens, and know what’s going on just locally.

We never wanted to be the big guys up at corporate going, “Hey, Arizona, talk about this,” forcing stuff down their throat. We want our boots on the ground to be able to pick out the kind of stories they want to feature.

Shango Los: If you want to excite people to a new strain that might be localized, you want to make sure that they know that they can get something. It’s no fun to read this awesome strain review, or product review, and it’s like, “Oh, yeah. That’s not even available in your state.” I mean, that’s a drag.

Evan Carter: Exactly. That’s the reason. Some of our staff always say, “Why don’t we just do a big national magazine?” It’s like, well, we can’t, because I can’t feature … Blue Dream in Washington in different from Blue Dream in Colorado, it’s different from Blue Dream in Florida, you know? There’s different things in each market, and what we really want to do is the National Section is really made to showcase where cannabis can go. That was our other problem, is that we started to do this National Section and we’re sending it all over the East coast and the Midwest, and a lot of it, as we first started, was very positive. It was just, “Oh, check out this ginormous garden, and what everything can do,” and it’s kind of like the cannabis promised land. It’s not perfect up here, but it’s a lot better than it is down in, you know, the Southwest, and the Midwest, and the East coast.

We really wanted to create some compassionate content, as well, and make that more local, because I didn’t want to send out a magazine that was talking so positive about cannabis and have some woman in Texas say, “Well, yeah, that’s great guys. I’m glad you can walk into a store and buy cannabis, but my husband just got arrested for having a joint behind his ear.” That’s really why we wanted to localize it more, because the country’s going through so many different stages of this process that we have to feature it.

Shango Los: Right on. Because the show is so business focused, I want to drill down a little bit more on the production aspect, because there’s some parts that I don’t think are as obvious to me as they could be. For example, you mentioned that there’s the 64 page National Section, so in that section, do you have all of … Are all of the ads national advertisements? Or, do you have to re-layout the National Section for each regional implementation?

Evan Carter: No, those national ads go throughout the whole nation. It’s basically a 64 page form, is what they call it in the magazine world. It’s the same form that goes into every magazine. We create that 64 pages with the national stories, the national advertisements, and we take that and we print that. That’s the first portion of the magazine. Those ads stay the same, yeah. If you want to get out to the whole nation, this is the way to do it.

Shango Los: Right on. Then, on the regional ones, let’s assume that you’ve got a product that is available in 1 state only, because it’s a licensed product in their cannabis system. Do you monitor what products are or are not legal at the state level so that you don’t accidentally run an advertisement for something that isn’t illegal or was formerly legal, and now is not? Do you keep aware of those changes or is that onus on the advertiser to make sure that they know what the hell they’re allowed to advertise?

Evan Carter: It’s on the advertiser, but I mean, at the end of the day, we have to cross all of our T’s and dot all of our I’s, as well, because we can still be held liable. A lot of people will want to come after a magazine instead of just a smaller farm, or a smaller product localized. We have to be really aware of that, and so we’ll make sure that they have the right licensing, and they have the right terminology on their ad, but a lot of the national ads that we do are more branding ads, and more bigger products, and not necessarily like a strain in Arizona. Yeah, it does come down to us, and we try to do everything the right way.

Shango Los: Right on. I want to talk more about your advertisers, but it’s time to take our first break. You are listening to the Ganjapreneur.com podcast.

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Welcome back. You are listening to the Ganjapreneur.com podcast. I’m your host, Shango Los. Our guest this week is Evan Carter, co-founder of Dope Magazine. Before the break we were just starting to get into talking about your advertisers. We were talking about how in the National Section, you’ve got real brand experienced advertisers that want to reach everybody in the country, and in the regional sections, you’re talking more about regional players and products that can be available in particular states. You know, I was thinking about, you really have 2 sets of customers. You’ve got the readers who you want to give them things that are interesting, but you also have got the advertisers and you want to make sure that you’re creating opportunities for them, as well. Have you run into a situation where the interest of the readers that you’re trying to please are clashing with the interests of your advertisers?

Evan Carter: I mean, I think yeah. I think every publication or a lot of businesses go through that, and it’s the constant struggle. It’s funny that I feel sometimes it’s like the editorial team versus the ad sales team. Because I mean, if you look at any magazine, you look at a Maxim Magazine, and they do a feature on razors, and then you flip to the back cover, and it’s like, “Oh, Gillette razors.” I mean, at the end of the day, we feature a lot of different businesses and so we want to feature the businesses that the people are going to get something from. The same thing goes with our advertising. Yeah, there are people that go out there and say, “Hey, I’ll advertise if you feature me.” We’re like, “Well, you’re not a very good store, so I don’t want that,” but, if there’s a big time advertiser that has great product, we still want to get that product out.

We’re ethical, we try to do everything the right way, and yeah, we will feature some of our advertisers, because heck, they have good products. We’re not shying away from that, but I’m not going to walk into a grungy store that I’m not going to send my mom to and then have them advertise and then feature like it’s the best store in the world.

Shango Los: Yeah, right on. Right on. We run into that a little bit to at Ganjapreneur, as well, because when we talk about how awesome CBD is, we’re almost always talking about CBD derived from medical cannabis in the presence of THC, even if it’s low amounts, and some folks reach out to us and they are doing strictly CBD from hemp and the studies are still coming out on CBD from hemp. All the early studies were all about CBD from a full plant extract, taking advantage of the entourage effect, and so occasionally we’ll say something a little off the cuff about CBD from hemp, and we’ll get somebody writing into us like, “Hey man. You’re running content that’s contrary to our advertising with you,” and we’re like, “Well, we’ve got to keep it real, man.”

Evan Carter: I mean, at the end of the day, you do. You want to please everybody, right? But, I mean it’s really hard to do that. There’s always going to be, and we try to keep it real, as well, but there’s always somebody out there that claims we’re doing something wrong in every single issue, but you take it. We always like to say when you’re playing a video game, and the bad guys come out, you know you’re going the right way, right?

Shango Los: Yeah, right. Well, let’s hit on that. Another thing that folks jumped up about a bit, when you changed your tagline on the magazine from “Protecting patients everywhere” to “Protecting our plant everywhere,” a lot of people were talking trash that, “Oh, they’re not with the patients anymore,” but when you and I talked about it, you had some good stuff to say about it. Will you give us a little background about what happened when you changed that tagline and why you thought that was important?

Evan Carter: Yeah. I mean, when we started out, it was only medical. It was Dope, “Defending our patients everywhere.” When it became more recreational, we wanted to really normalize. I don’t think we changed our stance with cannabis. It was like, we actually want to defend our plant everywhere, and what that means is I guess we have to define “plant” and we’ve been going over that a lot in the last few months with the ownership group. We’ve been talking, like people are saying that we’re not with the patients because we’re saying the plant, but at the end of the day, by us saying the plant doesn’t mean we’re taking any medical benefits away from the plant, from the patients. When we say we want to normalize, I want to normalize the plant, and that’s going to benefit the patient, the vet, the mother of 3 that just instead of having a glass of wine after she puts her kids to bed, wants to have a joint just to relax, but doesn’t want her door getting kicked down and the government taking her kids away.

We always say the guy that has ADD and didn’t really know it for his whole life, and he’s 40 year old and he tries some cannabis and he fits in again. That’s when we say, “Defending our plant,” because there’s so many different uses for this plant, and so many different people that can be affected positively by this plant that we want to normalize and get that out to everyone, to the general public, because once the general public gets back on board, and is like, “You know what? This is a pretty good thing for everyone,” it’s going to be easier for everyone.

Shango Los: Additionally, as recreational gets up and going across the country, there are more and more people that don’t really identify with the word “patient” anymore, because even though I personally believe we’re all patients, even if you’re getting high just for some end of day relaxation for your world, you’re still dealing with anxiety, in some way making you a patient, but not everybody likes to think about themselves as a patient, so I think that there’s a good case to be made to just referring to it as “the plant” and getting to the heart of the matter, instead of trying to identify the nature of the user, or the enthusiast.

Evan Carter: I totally agree. Yeah, I mean, I technically am a patient, because I like to use cannabis topicals on my knee because I’m a runner, and it takes away a lot of my knee pain, but I’m not as a severe patient that somebody that has HIV or somebody that has severe glaucoma. I want to normalize just because I think it will help so many different people. It helped myself, it’ll help those real hardcore patients, and it’ll help people with just some social anxiety. At the end of the day, it’s going to help so many people, and that’s what we’re really trying to do. That’s what our platform is built to do, is to get out to the general public, and get out and start talking about cannabis in your everyday conversation, and coming out of the cannabis closet, and not being ashamed of using cannabis. I just came out to my grandma, like a couple of weeks ago. It was pretty funny.

I sat down at this table, she’s at a retirement home, and she invites us all over for a big brunch, and I sit down and one of my crazy uncles, he looks at me and he goes, “Is it really a pot magazine?” Like literally, I just sat down at the table, and I’m like …

Shango Los: You’re like, “Welcome.”

Evan Carter: … “Oh, okay. Hello.” I go, “Well, first and foremost, it’s a cannabis magazine.”

He goes, “Oh, geeze. I’m not even going to get into that. That stuff just makes you lazy and grumpy and despicable.” I was like, “Well, geeze, I don’t think so.” My grandma looks at me, she goes, “Do you take cannabis?”

I was like, “Yeah, grandma. I’m a cannabis user.” I said it. I’m open. I’m free, you know? It’s just funny, because he really thinks that I’m this lazy stoner, and I’m like, “You know that I run this pretty big company, right? And, I’m a volunteer coach, and I have a step kid, and I’m a family man. You want to call me lazy? Why don’t you come into my corporate office and tell the 35 people working 80 hours a week that they’re lazy? Come on man.”

Shango Los: Yeah. Absolutely. You know, it’s funny, too, how sometimes because entrepreneurs like you and I, we’re in the public and we’re telling our stories, that sometimes we over share. For example, I was doing a presentation, I don’t know, like a month ago, at the Cannabis Entrepreneur Summit with Green Flower Media, and I mentioned in my presentation, “Blah, blah, blah, when I was smoking cannabis in college,” and my mom had never heard that I was already smoking pot back in college, and in the moment, even though I was speaking to 8000 people in 64 countries, my mind at that moment was, “Oh, damn. I hadn’t talked to my mom about that yet, and she’s watching this thing live.” After the event, and everything, I went and I called my mom and I’m like, “So mom, did you catch that bit?” She goes, “Yes.” I’m like, “Oh, no, that’s so terrible.”

Evan Carter: “Yes.”

Shango Los: Hey, so I want to move forward and back at the same time. Before you started Dope Magazine, you ran a local music magazine in Seattle called “D-List.” You were doing pretty well with a local magazine that had very local vibes, but now Dope, Dope is a national thing. When you started Dope, was it originally your intention to launch a national magazine or did you start intending to be a local magazine and then you saw an opportunity to go national?

Evan Carter: Well, I think being an entrepreneur, when you assess a situation, you look at what it could be. When we first started Dope, we wanted it to be national. We didn’t know how we were going to get there. There’s no road map for it, but we knew that one day, cannabis will be legal, federally legal, and that we could have a platform to speak to cannabis users throughout the nation, so yeah, we started it locally, because that’s all we had. That’s how we had to get started, but at the end of the day, our plan was to go national, and it took us a few years to really figure out how to do that, and to make the mistakes, and luckily, as you mentioned, I ran D-List Magazine, which we started in 2007, and so we made a lot of mistakes. I mean, me and my business partner, who’s currently with Dope, as well, we started that magazine with a $5000 loan from my dad, and ran it for 7 years. I mean, that’s a pretty big accomplishment.

Shango Los: Yeah, it sure is.

Evan Carter: We made a lot of mistakes, but we learned, and so we learned how to not make a magazine, and then how to overcome those mistakes, and rolled that right into Dope, and that gave us a pretty good start on how to at least figure out how to start making a local magazine the right way, and then jumping into national, because even with D-List, we launched … We started in Seattle, and we launched down in Portland, Oregon, after about 2 years. That didn’t work out very well, because Oregon didn’t like one of our covers where we had Steve Aoki eating a fake bird, but that’s Oregon and we love them.

Shango Los: You also learned, right?

Evan Carter: We learned.

Shango Los: You learned from that.

Evan Carter: Absolutely.

Shango Los: Yeah. Now that Dope is expanding into new states so swiftly, what are the signals that you look for when deciding to go into a new market? I mean, do they just need to pass medical, or are there some boxes that have got to be checked off?

Evan Carter: Yeah. The best part about our national magazine is that we can take that and push it into these markets that we think will be future local markets for us. What we do is we try to be personal, and so we’ll look at a market like our next one coming up hopefully is going to be Michigan, and so we’ve really pushed a lot of our national magazines into Michigan, getting the word out there, and sending out letters, and just trying to see what the feedback is. Hiring boots on the ground out there, to see if there is actually a market that can sustain a magazine, and really, it’s just the basics, yeah. Is it medical? How many dispensaries are there? How many associations are out there? Trying to get in touch with those people, and seeing if people really vibe with what we’re doing, and I mean, we send out magazines, we send out letters, we send out distribution stickers, like, “Hey, put this on your window. You distribute Dope.” We try to really get out there and support the local markets, and see if they can support us back.

Shango Los: Yeah, right on. Well, hey, let’s take another short break. You are listening to the Ganjapreneur.com podcast. Because you listen to the Ganjapreneur.com 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

Because you listen to the Ganjapreneur.com 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.

The Ganjapreneur.com podcast is listened to by tens of thousands of cannabis entrepreneurs and enthusiasts every single week. These folks are most likely your target customers, and we’d like to introduce you to each other. Our down to earth and information rich commercial breaks can deliver your message to the cannabis business community, and others who just find relief in getting high.

If you want to reach out and connect with our audience in the most personal way that we can offer, go ahead and drop us an email at grow@ganjapreneur.com, and we can talk about you becoming a commercial sponsor of the podcast. Thanks for listening, and being part of the Ganjapreneur family. Now, back to the show.

Welcome back. You are listening to the Ganjapreneur.com podcast, I’m your host Shango Los, and our guest this week is Evan Carter, co-founder of Dope Magazine. Evan, before the break, we were talking about your expansion nationally, and the industry as a whole really is expanding online journalism, and you guys are a print magazine. I’m sure that there’s a lot of upsides to having a print magazine, and people being able to hand it hand to hand.

Everybody loves to read it in the tub, whatever, but so much happens online, I wonder if Dope has a hard time keeping up with what’s going on and staying in contact with your readers in the online sphere. What’s your strategy to have this beautiful magazine on paper, but then also what do you do in the online world?

Evan Carter: Definitely. It’s a great question. We like the print magazine, because I think people like to have something tangible to read. We know print isn’t going to be around forever, and so that’s why we’re coming up with new ways to do online magazines through the iPad, and more interactive, more video. You’re going to start seeing a lot of that coming up, but for right now, the print magazine, I mean, we get rid of 135,000 every single month, and they go. We get people calling us for more, so we know that’s working, but really, to stay in touch with our digital demographics, it’s different. I mean, for the print magazine, we’re about a month and a half ahead, so some of our print content will take from the magazine, and we’ll launch it digitally, as well, but we have to be able to keep up with the times with everything changing.

That’s what we are really trying to utilize our online platforms for, is utilizing them to talk about the change in legislation, the breaking news, video content. We really want to start doing a 2 minute update at the end of the week. You’ll see that coming out in about a month or so, product reviews, really interactive, and since we are a lifestyle brand, we just think that living the Dope life, and showcasing that through videos is really going to connect with our readers. I just love the fact that we have this ginormous staff, or ginormous as in about 35-40 people, ginormous to us, you know? That it comes from so many different walks of life, and showcasing that, and how they utilize cannabis via videos, I mean, they’re writing video scripts right now, my team is right now, and it’s a lot of fun to see what everybody comes up with, and how we can stay connected.

We want to exude the Dope life, and let people know that they can do what they want and be a cannabis user. I love the fact that I volunteer coach at a high school, I run a business, I have time for my friends and for my family, and I use cannabis. We really want to showcase that, but staying in touch with our digital readers is definitely our main focus, or one of our main focuses right now, besides doing the print magazine.

Shango Los: Yeah, right on. You know, I always love running into you guys at the convention shows, because there’s no question that Dope Magazine has some of the best convention show booths in the industry, easily. They’re elaborate, they’re beautiful, you’ve got plenty of couches so it’s a good place to chill, people tend to hang out at your booth, both to get pictures with the booth itself, because they’re always so cool, but it’s also kind of a meeting place for folks. Why did Dope decide that the show booths were important enough to really put some serious budget into the design?

Evan Carter: Well, we want to be .. We’re the lifestyle brand. We want to be a big lifestyle brand in cannabis, and so we have to exude that at the conventions. We want people to come and sit down, and talk with us. We want it to be just a connection for the whole cannabis community, to come meet people. That’s who we really are. We’re out at all of these different conventions, and we’re meeting people so we can put people together, connect the cannabis community, that’s really one of our main goals, is that’s really what we’re worth, is all of our connections. I mean, if you ask anybody, they probably know my CEO, David Tran, or the crazy Asian guy with the big hair. They probably see him out at every single convention.

If you’ve ever been to a convention where Dope is there, you’d know David, because he’s probably shaking your hand and made you feel like a million bucks, because that’s what he does. He makes everybody feels great, because he wants to connect everyone together, so we really try to put a big focus on. We have a great events team. I mean, they really come up with some unique concepts, like our airline concept for the past about 4 to 5 months at the conventions. You’ll see that, where it looks like you’re sitting on an airplane, and we have benches, or we have little couches where you can come and relax, and it’s really just a metaphor for us taking off throughout the whole nation and trying to connect everybody.

Shango Los: Well that’s actually going to be my next question. The airplane is certainly the most elaborate of yours that I’ve seen, and I saw it at CCC PDX last year, and when I saw it, I really imagined that you would get some rough feedback from some people in the industry, because it is beautiful, and it’s got airline stewardesses, models wearing short skirts, and it’s pretty fair to call it pretty sexually objective, right?

It’s fun, and it’s done in good taste, but there’s a lot of people working to keep sexual objectification out of the cannabis industry, and we’ve talked about that several times here on the show. I noticed that on day 2 actually, that the gals were not wearing those costumes anymore. Can you explain your idea behind that, and I’d love to know if you can tell us what happened, why the girls weren’t in the same costumes day 2? I mean, something must have come up.

Evan Carter: Yeah. I mean, definitely. We have to be better at realizing our demographics and where we’re at. In Oregon, they really don’t like that. That’s more of a Southern California and Vegas type, but with us, we want to push the limits a little bit, too. We want to be noticed, and we want to change the cannabis … Not change the cannabis scene, but push the limits, just a little bit, and have some fun. We wanted to electrify the scene a little bit. At the end of the day, it didn’t really work out at that convention, so we pulled back and learned from our, I’ll say mistake, at that convention, but still, at the end of the day, if we go down to Vegas and do a big convention down there, we might bring them back out. It really just depends on the territory, and the different demographics around the nation.

Shango Los: As a pure branding play, it certainly worked, right? Because there was fully a line of people wanting to get their photos taken in front of the airplane design, in front of your sign, with the stewardesses, because it was visually remarkable, all the colors, and it was all so stylized, so all those people are all posting those images to their Instagrams, and there’s Dope Magazine in every one of those pictures, so to that point, it was very successful.

Evan Carter: Exactly. We want to get out there and be, like I said, one of the top cannabis brands. We want to do it the right way, and so you’ll see, if we make a mistake, we’ll come out and change it. We’ll correct it.

Shango Los: Before we wrap up here, takes a lot of effort to coordinate a magazine the size of Dope, that has got different issues in different regions of the country, and gets up to 130 pages in legal states. Have you gotten to the point yet that putting out the magazine is just a reasonable workflow and you’ve got enough people to help you? Are you still at the point that you were in the early days, where there are things still keeping you up at night, and you’ve got that startup mentality where you feel the stressors? Do you have enough routine built in yet, where you don’t have the stressors that a lot of, the rest of us are still having as startups?

Evan Carter: I mean, definitely we are still definitely a startup. We let ourselves know that everyday, so we still keep that pressure. I’ll say our systems have gotten a lot better. We’ve hired great people that have really stepped up and taken a leadership role in the company. I mean, I remember 2 years ago in January, I was making 3 magazines. I was making Washington, Oregon, and Colorado. I was doing all the content for all of them, laying out all the flat plans, and doing the editing. I was doing everything, with the help of an editor, and content providers, but now we have 2 full time copy editors, with a senior editor, content director, a design team of 3 people, 2 full time and 1 part time. Yeah, definitely, our processes are getting so much better, and I don’t worry about those things as much, because we truly have an amazing team.

There’s other things that keep me up at night. Growing the business, and doing things the right way, and making the next moves, and growing too fast, and having to cut back on things. I mean, that stuff still keeps me up, because there’s no road map. I keep saying … There’s no road map to making a national cannabis magazine. We’re just trying to figure out how to do it, so the mistakes that you make keep you up at night, but as an entrepreneur, you just keep going. I’ve had a knot in my stomach the last 2 weeks because of some of the things that we have to do to keep things rolling, but you just do it, and you keep moving forward, and if you learn from your mistakes, you’re going to be successful.

Shango Los: Right on, fantastic. Well, Evan, we are done for today. Thank you so much for taking some time from your busy schedule to be on the show today.

Evan Carter: Oh, thank you, Shango. I love chatting with you, my man. Anytime.

Shango Los: Evan Carter is co-founder and president of Dope Magazine. You can find out more at DopeMagazine.com.

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 review, 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 will be speaking, you can 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 Rowe. I am your host, Shango Los.

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Colombia Awards First MMJ License to Canadian Company

Colombia has awarded its first medical marijuana business license to a Canada-based company, PharmaCielo Ltd. The company’s production duties will fall to PharmaCielo Colombia Holdings, a subsidiary of the Canadian company located in Rionegro, The City Paper reported last week.

For decades, Colombia played an infamous role in the illegal international drug trade. Today, the government pledges that it is committed against illegal drugs, and has approached the legality of medical cannabis cautiously.

In a press conference about the licensing, Colombia’s health minister Alejandro Gaviria Uribe said, “Colombia may be the winner of this emerging market of medicinal marijuana. This will result in more jobs in our country and greater prosperity for the communities and municipalities where this industry is situated.” Gaviria said to expect several more producers to be licensed in the coming weeks.

The administration of President Juan Manuel Santos sees the emerging industry as an opportunity for growth and a means to diversify the country’s economy away from oil and coal.

PharmaCielo now must apply for a cultivation license with the National Council on Narcotics, but the company is “one step closer to becoming a fully integrated licensed grower and manufacturer of cannabis oil extracts,” according to a press release issued by Pharma Cielo.

However, not all are pleased that the country’s first marijuana license was awarded to a company from Canada instead of a Colombia-owned enterprise. Jorge Iván Ospina, Colombian Senator and a member of the Partido Verde (Green Party), has since released a video of himself — surrounded by a sea of maturing cannabis plants — speaking out against the government’s decision not to turn the controversial crop back over to Colombia’s “indigenous and peasant communities.

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Google May Be Considering the Cannabis Industry

Google — the major online search engine, advertising platform, and creator of the Android mobile operating system — may be eyeing ways to involve itself with the cannabis industry, according to a report by Marijuana Business Daily‘s Omar Sacirbey.

Google recently reached out to LivWell, a Colorado-based medical and recreational cannabis enterprise currently operating 14 dispensaries around the state, to see how it could get involved. The contact was discussed by LivWell CEO John Lord at an event for Rep. Jared Polis (D-CO), a long-time supporter of legal cannabis. Lord said that Google contacted him shortly following last month’s major partnership announcement between cannabis software company KIND Financial and Microsoft. The event was hosted by Dixie, an infused edibles producer.

The inquiry was confirmed by LivWell spokesman Matthew Givner in an email to Marijuana Business Daily, who said that the tech giant was interested in learning “about the industry’s needs and how Google could potentially work with us to address them. Beyond that, there has been no communication.”

It’s unclear why Google contacted LivWell specifically and whether or not Google has contacted other cannabis companies. In either case, it’s likely the first time a major U.S. corporation has expressed interest in working with companies directly involved in the production and distribution of cannabis, which remains a federally illegal substance.

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Uruguay Pharmacies Hesitant About Selling Legal Marijuana

The New York Times reports that many pharmacy operators in Uruguay are hesitant about carrying marijuana at their shops due to fears about the safety of their employees and security of their businesses. So far just 50 of the country’s 1,200 pharmacies have registered with the government to sell legal cannabis.

Uruguay legalized the cultivation and sale of cannabis in 2013 in an effort to combat homicide and crime rates associated with drug trafficking. Two companies, International Cannabis Corp and SIMbiosys, harvested the first legal crops in the country last month.

Under the plan, marijuana prices are set at $1.20 per gram, and Uruguayans can buy up to 40 grams per month. The law allows registered individuals and cannabis clubs to grow up to 99 plants each. However some pharmacists — tabbed by the government to sell the drug — said in addition to the potential security issues, paperwork, cost increases, and customer opposition forced them to decline to participate in the program.

“My customers generally don’t agree with the plan,” Isabel Regent, head of the Association of Interior Pharmacies said in the report. “Besides the fear of robberies, enrolling in the system means a hike in costs and having to be up to date with all the paperwork demanded by the health ministry, and not all pharmacies are in a condition to do this.”

According to Gonzalo Miranda, a spokesman for the Uruguayan Chamber of Pharmacies, one union leader told government officials that some pharmacists have already been threatened by marijuana dealers who operate in the neighborhoods where the pharmacies are located.

Fernando Gil, a spokesperson for the Interior Ministry, said no such reports had been filed to police.

One pharmacist, unnamed in the report due to his customers’ negative opinion of the plan, said he signed up but is not sure he will actually sell the drug.

“I’m missing a lot of information,” the pharmacist said. “They haven’t explained anything to us about the information program that will be used or how the drug will be sold or how profitable it will be.”

Marijuana is expected to be for sale to Uruguayan residents 18 and older later this month.

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Colorado Teens Using Less Cannabis, Facing Heavier Enforcement

Teenage cannabis use has gone down in Colorado in the years since voters enacted an amendment to legalize recreational marijuana — according to the Healthy Kids Colorado Survey, a compilation of data collected from Colorado students and published some weeks ago  — and yet, teenagers are finding themselves a more likely target for punitive drug policies.

The Healthy Kids Colorado Survey found that cannabis use among teenagers has remained more or less flat in recent years, with negligible differences between 2016, 2015, and 2013. New data shows that the number of teens who had used marijuana one or more times in their life decreased five points from 2009 to 2015, from 43 to 38 percent.

With adult use sanctioned under state law, however, marijuana enforcement has turned to the population that still faces criminal penalties for the possession or use of cannabis. The Drug Policy Alliance’s Amanda Bent noted in a recent report for Alternet that, “there were more than 400 expulsions and over 4,500 suspensions related to drug violations in the 2014-2015 school year despite efforts to curtail ‘zero tolerance’ policies recognized by the legislature in 2012.”

The punitive policies have also been shown to unfairly affect young people of color: despite similar rates of cannabis use, cannabis-related arrest rates among white Colorado youth decreased 8 percent from 2012-2014 while they increased by almost 60 percent for young people of color during the same time period.

Though fewer teenagers in Colorado admit to believing that cannabis use is a dangerous habit, perspectives on the dangers of other banned drugs such as alcohol or tobacco have remained the same since legalization.

Colorado legalized cannabis for recreational purposes in 2012. Some half-dozen additional states, including California, are expected to hold votes toward the reforming of their marijuana laws this November.

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Report: Hawaii Dispensaries Could Earn $80.5 Million in Revenue by 2018

Hawaii’s medical cannabis dispensaries could earn between $12 million and $28 million during their first operating years, according to the Hawai’i Dispensary Alliance’s 2016 Industry Forecast. The group forecasts the industry could see revenues up to $80.5 million by 2018.

The predictions in the report are based on patient rosters growing from the more than 14,000 currently enrolled in the program to between 30,000 and 40,000 over the next two years. The report indicates that if the island state allows out-of-state patients access to medical cannabis, the program could generate an additional $9.6 million to $57.9 million in revenue.

“Hawai’i has the momentum right now to develop, grow, and evolve,” Christopher Garth, executive director of the alliance, said in the report. “The Hawai’i Dispensary Alliance believes that the best way forward is through the creation of a dynamic, creative, regenerative, local, world-class medical marijuana economy here in Hawai’i.”

The figures in the report are based on national medical cannabis prices and how much patients could spend at dispensaries. The alliance anticipates patients will spend between $100 and $200 per month, or $1,200 and $3,600 a year. On average, patients nationwide spend $72 per transaction at dispensaries. Under the law, patients can purchase up to one-half pound of marijuana a month, which would equal more than $2,000 in revenue, but Garth says patients buying the maximum is “unlikely.”

“And the dispensaries will not be the only ones to benefit from the growth of this industry,” Garth said in the report. “For every $1 spent in dispensaries, states with established medical marijuana industries report that $3 of additional economic value is injected into the economy at the local level.”

In April, Hawaii’s four member panel awarded eight medical marijuana licenses, allowing the approved companies to start selling cannabis as soon as July 15.     

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Cannabis Quality Strategies & Solutions Summit in Los Angeles, July 19-21

The Cannabis Quality Strategies & Solutions Summit, coming to Los Angeles this July 19-21, will draw cannabis professionals and enthusiasts from around the country for a three-day conference to examine, explore, and celebrate the cannabis industry.

Cannabis Quality — hosted by nationally renowned business event producer Infocast — promises an industry perspective unique from other cannabis conferences by emphasizing the importance of first-movers, industry experts, and policymakers.

Speakers

Healthy relationships between entrepreneurs, policymakers and state-employed regulators are especially helpful when building a successful marijuana enterprise. Therefore, Cannabis Quality is bringing regulators from five western states that are leading the charge in cannabis normalization:

  • Fiona Ma, a CPA on the California State Board of Equalization;
  • Ken Groggel of the New Mexico Department of Health;
  • Heather Krug, MS with the Colorado Department of Health;
  • Shannon Swantek of the Oregon Health Authority; and
  • Kristi Weeks, JD with the Washington Department of Health.

Cannabis Quality is also bringing a host of esteemed experts, professionals, and researchers to share success stories, advice, and answer questions about all things cannabis.

Leading cannabis researchers who will be speaking at the Cannabis Quality summit include Ethan Russo, PhD, who is often considered to be at the forefront of cannabis terpene and endocannabinoid research; and Mowgli Holmes, PhD, who has been working with a team to create a three dimensional map of the entire cannabis genome.

Famed medical cannabis researcher Sue Sisley, MD — who has advocated heavily with state legislatures in the past to approve studies on cannabis treatment for veterans with PTSD — will also be sharing her knowledge and advocacy experiences at the summit.

Josh Eades, PhD and Vice President Chief Science Officer for Tilray, will be speaking as a representative for one of Canada’s largest and most successful medical cannabis producers.

Other notable individuals who will be featured at the summit include:

“We made an effort to go beyond the regional and partisan bias of many cannabis events,” said Jimmy Ma, Marketing Manager for Infocast. “We have state regulators from five different western states, we have representatives of different trade groups and nonprofits that have strong differences as to how legislation and regulation should proceed.”

“We provide a neutral platform, and we are experts at organizing intimate, ‘decision-maker’ events that bridge technical, policy and business needs,” said Ma.

Venue

The Cannabis Quality Strategies & Solutions Summit will be held on July 19-21 at the Millennium Biltmore Hotel Los Angeles, located at 506 S. Grand Ave.

Event attendees are offered a room rate of $169 at the hotel, which is famous for its 1920’s themed decor.

Tickets & Registration

Tickets to the Cannabis Quality summit are available online, though early bird price opportunities have already passed.

Standard tickets to the three-day event cost $1,295. However, there is a special ticket offering for cannabis operators (labs, growers, processors, co-ops, startups, and edibles manufacturers) who earn less than $1 million in annual revenue, as well as for individuals representing the government, a non-profit organization, or research institution — in these instances, tickets cost $795 for the full three days.

Register now at Canna-Quality.com.

Infocast is planning to return with another Cannabis Quality event in 2017, and has potential plans for two other MJ-focused events: one focused on investment, the other on cannabis scientific research.

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Colorado Health Department Accepting Cannabis Research Grant Applications

Colorado’s Department of Public Health and Environment yesterday began accepting grant applications yesterday for the Retail Marijuana Health Monitoring Program, the Denver Post reports. The $2.4 million in grants will be used for post-legalization cannabis health effect studies, and will be awarded to researchers who have “a demonstrated record of successful grant-funded research or data analysis.”

Historically, similar grants have been presented to researchers connected to hospitals or universitiesFor-profit companies can apply for the new round of grants if they partner with a non-profit entity when applying. Governmental agencies can also apply for consideration.

According to the official request for applications released by the department, two types of grants are available; $300,000 per-year full research grants and $100,000 per-year pilot grants. Full research funding grants will pay up to three years and are intended for multi-year projects that “involve extensive primary data collection using observational study designs.” Pilot grants will pay up to two-years of funding and are intended for shorter term projects that “can provide important public health data.”

The department is specifically interested in studies concerning the safety and effects of marijuana use on “vulnerable populations,” such as pregnant or breastfeeding women, and the health effects from accidental marijuana ingestion; and health outcome comparisons between heavy and occasional marijuana users, however human clinical trials will not be accepted for consideration.

Capital construction, lobbying, cell phone and building renovation requests are not permitted under the grants, which were approved by the legislature last April. Preliminary applications are due by June 22, with an anticipated award date of Mar. 1, 2017.

Ultimately, grant research can lead to the establishing of new business infrastructure and an uptick in investments.

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Washington LCB Adds New Disallowed Pesticide Products

Residues from one or more undisclosed pesticide ingredients have been discovered in fifteen different growing aid products common to the Washington cannabis industry, the Washington Liquor and Cannabis Board announced yesterday afternoon in an email to the LCB Marijuana listserv.

Many of these products contain pesticide ingredients that are not allowed in legal marijuana crops, and could cause products to fail the Washington State Department of Health’s pesticide testing requirements for cannabis products sold in Washington. In some cases, the residues could even lead to the confiscation and destruction of crops and products made from contaminated plants, the LCB warned.

The following grow aids — organized by type of product — are no longer allowed in the Washington cannabis industry:

Pesticides:

  • Safergro Mildew Cure for Powdery Mildew Control, WA Reg. No. 68573-08004
  • SNS 217C All Natural Spider Mite Control Concentrate, WA Reg. No. 998660-10002

Fertilizers:

  • Humboldt Roots 0-0.25-0.25, WA Reg. No. 1916-0028
  • Olivia’s Cloning Gel .08-.15-.09, WA Reg. No. 1181-0002
  • Optic Foliar AT-AK 0.06-0-0.15, WA Reg. No. 2097-0007
  • Optic Foliar Overgrow 0.8-0.16-3.2, WA Reg. No. 2097-0005
  • Rock Resinator Heavy Yields 0-7-8, WA Reg. No. 2422-0006
  • Root 66 1-1-1, WA Reg. No. 1707-0014
  • The Hammer 10-25-15, WA Reg. No. 1827-0015

Unregistered Products:

  • Frost Protection Plus, unregistered product
  • NPK Mighty Wash, unregistered product
  • OG Rapid Flower + Hardener, unregistered fertilizer product
  • Optic Foliar Switch 0-0.02-2, unregistered fertilizer product
  • Pyyro K 0-3-7, unregistered fertilizer product
  • Vita Grow Thunder Boom, unregistered fertilizer product

The LCB requires licensed cannabis producers to discontinue use of these products, remove them from the licensed premises, and advise all processors that have purchased cannabis with these products that their purchase may have been exposed to an undisclosed pesticide.

Licensed cannabis processors are required to post a notice about the possible use of undisclosed pesticides to any retailers carrying merchandise that may have been treated with the above products. In turn, retailers must post the note provided by the processor in a conspicuous location on the retailer’s licensed premises, for the consumers’ benefit.

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Seattle Licensing Snafu Sparks Lawsuit Against LCB

The curtain is closing on medical cannabis in Washington, but Seattle-based dispensary owner John Davis is not giving up the fight to save his business.

Davis is appearing in court today to represent his business, the Northwest Patient Resource Center, and the plight of several other Seattle-based dispensaries, in a lawsuit against the Washington State Liquor and Cannabis Board. The suit accuses the agency of neglecting its duties and implementing an unfair and sloppy transition process away from the state’s heritage medical marijuana industry.

Though he was among the first to submit his application last October to be one of Seattle’s final cannabis dispensary licensees, “Somehow my information got put in wrong, and they weren’t sending me the emails,” Davis said.

Weeks passed, and when he didn’t received word about his application status, Davis began making inquiries with the Liquor and Cannabis Board. “At that time, they were saying, ‘Oh don’t worry about it … it takes some time, we’re all busy, we’ll get to you, don’t worry.’ Finally, I called up [LCB Director] Rick Garza. He said, ‘Let me check into it,’ and he called me the next day.”

Davis met with Garza and an investigator, and they revealed that his email address had entered their system incorrectly, and all of the information pertaining to his licensing process had instead been sent to one of his competitors. At that point, they shuffled his case through several different investigators to hopefully find a solution to the problem. However, by the time the mistake was rectified it was too late — the 21 additional licenses that had been allotted to Seattle under SB 5052 had been snatched up, and mostly by newcomers to the industry.

“You might want to move your proposed location,” an LCB-appointed investigator told Davis at the time.

“I don’t have a proposed location, I have a location,” Davis replied. “I have an operating business that employs people.”

In a phone interview, Davis told Ganjapreneur that at first he was optimistic about his chances of retaining his Seattle-based dispensary:

“The thing was supposed to be a competitive, merit-based application process. Pitch competing applications against each other based on merit? I’m like, ‘Hey that’s fine. I will pit my merit up against anyone else’s.'”

But that’s simply not how things went down.

Knowing it was his only chance at recourse, Davis filed suit in January. “The Liquor and Cannabis Board acted contrary to the plain language and to the intent of the law, and did not move over medical operations,” Davis said. “That was the mandate given to them by the legislature, but they did not care about moving over medical. They didn’t care about medical at all.”

Unlicensed medical cannabis operations will be fully criminalized starting tomorrow, July 1, despite announcements from the state that the government-managed registry of medical cannabis patients may not be ready, meaning patients in need will not have adequate access to their medicine.

A protest is taking place in downtown Seattle this afternoon against the damages caused by the merging of the two markets.

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Canadian Feds Announce Cannabis Legalization Task Force

A nine-person task force will advise the Canadian government on marijuana legalization, according to a CBC report. The task force will be chaired by former Deputy Prime Minister Anne McLellan, who also served as a health and justice minister under Paul Martin.

During a press conference today announcing the move, Justice Minister Judy Wilson-Raybould said the task force will assist the Liberal government in designing legalization framework
“that will include a new system of strict marijuana sales and distribution.”

The government plans to introduce the legislation by spring of 2017.

The announcement comes barely a month after “Operation Claudia” was executed by law enforcement officials in Toronto. In the raid, police executed 43 search warrants at unlawful dispensaries resulting in 186 controlled substance charges. Another 79 charges were levied by Municipal Licensing and Standards officers for zoning and food permit violations.

“Production and possession of marijuana are illegal unless it has been authorized for medical purposes,” Wilson-Raybould said during the press conference, adding that police would continue enforcing current statutes until the new laws are passed.

New Democrat party leaders have been advocating for the Liberals to decriminalize simple possession of cannabis for personal use. New Democrat MP Guy Caron said he was “extremely disappointed” that issue is on hold until the new regime is determined and implemented.        

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Aeron Sullivan: Creating a Wholesale Cannabis Marketplace

Aeron Sullivan is the founder of Tradiv, an online marketplace for wholesale licensed cannabis in Colorado. Tradiv has been recognized as an innovator in the cannabis industry, changing the way that cannabis commerce happens at this pivotal moment where a traditionally opaque and informal market has been pushed into the realm of transparency and formality. Our host Shango Los recently met with Aeron to discuss the evolution of his company and business model. Listen to the podcast below, or scroll down for the transcript!

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Listen to the podcast:


Read the transcript:

Shango Los: Hi there and welcome to the Ganjapreneur.com podcast. I’m 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 focus 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 my guest is Aeron Sullivan. Aeron Sullivan is founder and chairman of Tradiv, an online marketplace for wholesale licensed cannabis in Colorado. Today, we’re going to talk about the Tradiv business model and the country’s evolving cannabis sales channels. Welcome to the show Aeron.

Aeron Sullivan: Hey, thanks for having me Shango.

Shango Los: Aeron, let’s start at the very top. Let’s give folks a general outline of the service you provide to give them a better context for the rest of our conversation.

Aeron Sullivan: Absolutely. One of the ways that we use a comparison to help people understand what we do is we use Amazon. Now, Amazon is a business to consumer distributor. They both help process, and ship, and manage orders for millions of consumers all around the world. Now the businesses that sell those products are not owned by Amazon. Many of them are independent businesses that are utilizing the Amazon platform to sell and distribute those products.

Similarly, we use a platform that helps concentrate producers, edible manufacturers, and cultivators to sell their products directly to licensed retailers and dispensaries in the markets that we serve, all using a technology platform that helps unify it in the center of that ecosystem.

Shango Los: I know there’s a certain bar to entry because everybody would want to participate and just to be clear for the listeners in states other than Colorado. At this point, you really need to be both in Colorado and have a license by the state correct?

Aeron Sullivan: That’s correct. Actually, as of right now we are doing our early on-boarding for beta customers in Oregon and California depending on where they are in that market or their states. I would encourage anybody in the California, Oregon, or Colorado markets to reach out to us but only those in the Colorado market we be able to serve really from the point that they sign up. The rest will have a little bit of a wait.

Shango Los: That makes a lot of sense. I expect that with how huge the California market is going to be, getting started early is to everybody’s advantage because everybody is going to suddenly want to get involved out once. If you can get involved with your company, get your things all setup and then just kind of hang out and wait for the rules making to happen, that’s probably going to be to everybody’s advantage.

Aeron Sullivan: Definitely, I think the thing to remember in California specifically is that MRSA was passed last October and signed by Governor Jerry Brown signed. That’s taking effect in January of 2018, however we’re all going through the rules making process right now. The State of California, the governor’s office is pretty clearly communicated to Cannabis businesses that they can operate on the old collective model until January 2018. At which point there is going to hard switch to a more commercialized, tracked system.

Again, that doesn’t take effect until 2018. Those are the one to get involved early and have a really good opportunity to do that now. It’s just the patch work of legislation and rules across the different municipalities and it need to be looked at closely make sure that you’re not breaking law frankly without really even knowing it.

Shango Los: Let’s bring our attention back to the marketplace. I really enjoyed the demo from Willy the other day, walking me through it. It was seeing a technology from the future. College me would have been like “Oh my God, I can’t believe this exist.” It is a wholesale market place online. What you’re doing is connecting buyers and sellers. Do you find that having the buyers and sellers all in one place has caused the prices to settle in to a small range or are the prices still very variable?

Aeron Sullivan: What we find is that the market as a whole is not really much, it’s not more volatile or less volatile with us in place. However, when calling or inquiring about prices from business to business you’re now getting less spread on those prices or less variance if you will. The average is still moving where the average moves, but I’d say you have a tighter grouping towards that center, mean, or average than you would otherwise without us.

Shango Los: Also with that said, one of the things that I found interesting is that you still have premium level flower that is still pulling in premium prices because maybe it’s organic, or veganic, or it’s made by a particular producer who’s got a great reputation and their wholesales for a premium price. It’s not like the marketplace is bringing everybody to the middle so much that you can’t be a premium processor with high end prices. I bet you, your customers really appreciate that?

Aeron Sullivan: Yeah. I would even dare to say that for a boutique and more specialized growers, they actually get more differentiation now because you have less price variability amongst the different cultivators. Everybody knows where their product falls, if you have really good organic greenhouse you might be getting a higher price point along with those that have really good indoor. Every vendor, every buyer is different. They have a different customer base, maybe their customer base likes organic, maybe their customer base really like strong THC, indoor hydroponic.

Both of those can be “quality premium products” that give you a higher price point above average. You have to be able to find those things, you have to find those distinguishing qualities to even make that decision. We’re making a lot easier for dispensaries and retailers to consume that information in a quick manner to make the purchasing decision.

Shango Los: Are you finding that there’s a particular section of the market that just doesn’t sell as well as the other? For example, do you find that “Yeah, there’s premium prices but that stuff doesn’t go as fast. Yeah, there’s low-end stuff but it doesn’t go as fast.” Is there a particular part of the market that is slower than the rest?

Aeron Sullivan: I can tell you there’s a particular part of the market that’s faster than the rest. That’s those with good quality product, selling them at reasonable prices that sells very quickly. If you’re trying to get a price that’s really outside of the quality of the product, you might get it but you’re going to wait a while. You’re going to have to be patient.

For those that produce I would say outdoor, there’s a big spread on outdoor. There are some that grow really exceptional outdoor but by in large it’s always sub-par compared to green house or in-door. They like to send that to manufacture. Manufacturing can find their $900 to $1100 popcorn buds, or premature buds, or even the shake and the byproduct that’s a good high quality. When it comes out the other side, they’re going to look like what they do if they got trimmed flower.

They’re paying a lot less for that and in the past, when you’re buying trim you don’t really know what you’re getting until it gets to your doorstep. We identify what’s the level of shake on it, is it sugar trim, and sun leaf is it all sugar? What’s the reputation on yield off of their trim, off their previous harvest? Did we have all that information? When a manufacturer is looking to make a purchase, this is a lot more certainty in what they’re buying than in the past.

I think across the spectrum. If you have something of quality, your buyers will all going to look different. Different shapes and sizes, but as long as its good quality, for whoever the eye of the beholder is and also price reasonably, it will move fast. If you’re trying to get too much for it’s going to take some time.

Shango Los: I can imagine that you’ve had a handful of experiences with producers where either A, they thought that their product should demand more on the market that it does. Also, the other side, people who they didn’t have as much faith in their product now suddenly they’re getting more for it. Because the markets got its own intelligence way beyond what the producer themself thinks.

Aeron Sullivan: It’s really true. I have an example is we just launched … We’re launching full quality assurance and quality control tasking here really soon but we launched the beta in Colorado just to refine the processes and make sure it work. We launched something very simple. It’s pesticide tested trim. Period. We went a little further than typical normally you have a lab assist, “Yeah, I tested it for pesticides.”

Everybody knows there’s been a lot of an apprehension on the market side to believe the results of those lab tests and to trust those recalls that come from the state. There’s a lot of animosity that’s been generated because of that sort of you versus us mentality with now the businesses in Colorado and the state who’s coming down hard on pesticide tests. We actually did proficiency testing with one of our labs. We got the state levels from the Department of Ag on the threshold for pesticide within the cannabis matrix.

Our director of quality assurance and control Jeanne Dugan did a great deal of work to put this very simple or one would think simple beta and test. That’s to ensure and guarantee that trending purchase by manufacturers does not have pesticide in it. We didn’t know how the market was going to react, that’s the first time that’s really been available and invalidated by a third party. We have dozens of manufacturers that now even in a short two weeks after launching that beta, will not buy trim that is not certified by us.

Clear market signal, that’s what people want. They want safety, they want risk mitigation, they want a third party making sure that these things are being done the right way which de-risks their business and they don’t frankly have to do it themselves.

Shango Los: That’s a really great way for the industry to stay ahead of the regulators too because if we are starting to come up with ideas like that, it takes the onus off the state or God help us the federal government to enforce that in their way. It lets us to choose how our industries going to be run ourselves instead of dragging our heels until they do it for us. We need to take short break right here, we’ll be right back. You are listening to the Ganjapreneur.com podcast.

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. They’re sure they may make you a logo or a website and you talk about the image your company want’s to project. That is not always reflected in the bottom line in the form of actual revenue. For a lot of startups everything is 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 principles 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.

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 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 sale success too. Go to bluntbranding.com to find out more.

Welcome back, you are listening to the Ganjapreneur.com podcast. I am your host Shango Los. Our guest this week is Aeron Sullivan up Tradiv. Aeron before the break, we were talking about the new policies that you guys have implemented to pesticide test all of the trim that’s going through and you’re finding that the market is responding really strongly to that and switching to buying the stuff that has been tested. That is great for everybody across the board.

When I was receiving the demo of the platform, I noticed that some of the sellers didn’t have their certifications up, their potency testing and such. Do you find that, that is simply the producers, it’s their follow through getting it actually on to their listing, or that they aren’t having it tested, or that I guess it’s just one of those two. Why do you find that they’re not all there? I would think that, that would be kind of a universal thing?

Aeron Sullivan: Absolutely. Sometimes it depends on when the product was posted. If the products been up for week, then more than likely the lab test has been already uploaded. If they just posted the product, it might take a day or two, sometimes even three for the lab test to actually come back. What we’ll do is because delivery can take anywhere from two to three days then oftentimes there is a little bit of a wait where we actually have the opportunity to let them go get the test results, bring them back before the product is actually sold.

In any case, if a product is sold whether or not we have a posted lab result or not, the lab result will always be gathered and then provided to the dispensary that’s purchasing at the point of delivery to ensure that nothing ever gets delivered or purchased without certified lab results traveling with it. Now, that doesn’t necessarily mean that it’s tested for heavy metals, solvents, pathogens, potency, and pesticides that just means for that particular product it meets the state testing requirements whatever they may be for that particular product.

In the case of our trim, we’ve gone above and beyond the state required tests to ensure that it’s also tested for the 15 different pesticides that the State of Colorado currently recalls for.

Shango Los: I can imagine how we’d all like all of the products to be tested for pesticides, but that’s especially important in the trim market because we know that most of that stuff is going to be concentrated into oil which, if it’s got pesticides, means that the pesticides are going to be concentrated too. Man, I don’t want to be dabbing that stuff. Hell, I don’t even want to be eating that in an edible.

Aeron Sullivan: Absolutely. Frankly, Shango that’s why this is an easier problem than many people think. Trim comes from flower. Manufacturing products come from trim and flower, edibles come from trim and flower. Everything comes from trim and flower. If there was a requirement even during the growing process maybe at one or two stages then eventually it harvest to test just the full bulk plant for pesticides before it enters the rest of the supply chain from that cultivator.

You can stem pesticide adulteration, contamination across the entire market by simply testing the flower before it’s been completely cured, before it’s been completely dried, before it’s been trimmed, before it’s now in the supply chain and nobody knows what happened to it.

It grows from one place and you can test those for pesticides and literally, unless you’re worried about black market product moving it’s way into manufacturing facilities which frankly is a much larger issue than pesticide testing. Then you’re able to stand the flow of pesticides and nip that in the bud very early. That’s really what we’re looking to do in the new markets and and help Colorado get that point where there isn’t a product sold that could possibly have pesticides. It’s wonderful that we’re giving medicines and medications to small children with seizure disorders for the first time in their lives they can live a day without a seizure and actually start to grow as a human being.

We’re not doing them a service if that same medicine that’s providing them the first relieve in their short life that they’ve had, we’re also heavily dosing them with carcinogenic pesticides. It’s almost beyond me that we’re allowing that to happen. So far the state, most of the state governments I think Oregon might be one of the exceptions hasn’t been able to adequately attack this issue, so private enterprise is going to have to do it.

Shango Los: I can see how the trim that is in the market being used for this concentrates is going to be a higher quality because of your new policy. It also going back to the price of trim, I can imagine that the trim market is like insanely hot since it’s a precursor for pretty much all of the value added products. Yeah, of course the flower market is hot. This huge portion of the rest of the market are all of these edibles, and dabs, and RSO, and all of these other things that are all from trim. I can’t imagine that trim lasts very long in the marketplace before it’s picked up.

Aeron Sullivan: No, typically we have buyers for trim before it’s posted and tested. Yeah, we always have request for trim. I mean every once in a while something will sit on there for 24 to 48 hours but it’s pretty rare when trim is not purchased up right away. It’s because the manufacturer’s margins are most impacted by the oil and the cost of the goods of the actual THC going in the product. I mean in many cases they comprise 70% of the cost of good sold.

If you can create oil from product that you’re buying for $350 to $500 a pound and it has a yield that’s at least half of what full flower at 15 to 1800 would do. Then yeah, that’s a pretty good way to help have the margins and be more competitive.

Shango Los: I can imagine too that with the demand being that high, there are definitely days that low-end or unfinished flower gets sucked up by the trim people real fast.

Aeron Sullivan: There’s actually quite a few contract grows that produce what wouldn’t be shelf quality outdoor. It’s 16% THC, you don’t have to trim its whole plant. There’s definitely a full commodity market out there for manufacturing grade of cannabis, that’s already in production. I think as you see price compression on the flower side as supply increases overtime. You’ll probably see those trim prices come down and that commodity level flower probably moving down to the current trim price points.

Many products I think in the future is especially concentrates will probably be whole plant extracts because that’s what the markets going to demand because prices gone low enough on flower to be able to accommodate that sort of manufacturing method.

Shango Los: That’s really creating at a whole new tier of producer because historically in the US the really bad stuff was all being smuggled in from Mexico as brick weed. The stuff that was here or was coming in from Canada, British Columbia, it was all nice, kind nugs and that’s what everybody wanted to have is to sell things that were selling bag appeal. It takes a lot of extra effort and love to get stuff that looks that incredible.

Now, there’s a whole other tier I can imagine evolving of people who are like, “All right, we’re not going to use pesticides but we’re also not going to put in all the extra effort that makes it gorgeous because we’re just going to sell a hell of a lot of this in the manufacturing.”

Aeron Sullivan: Absolutely right. I’m glad you bring this up and so there’s a lot of people that have invested a lot into indoor grows or indoor warehouses. There are brands out there right now that are going to be built on indoor warehouse grows. Good high quality product, looks, has nice curve appeal, it’s coming out of this indoor grows. A lot of vertically integrated businesses in climates that aren’t conducive to outdoor greenhouse growing, have indoor grows.

Those indoor grows are going to help build those brands but for those entrepreneurs that are looking to get into the industry now that haven’t been building in Brandon, Colorado for three to four years and don’t already have an indoor grow, I would highly recommend, I would stress that anyone looking to move into cultivation now, invest in greenhouse. Because greenhouse technology is getting so good that people can produce flower that looks, feels, and tastes like indoor hydroponic.

They were able to do it in a greenhouse system at one-fourth or one-fifth the cost of good sold. We’re already seeing in Colorado, when you have a lot of businesses that are making money there’s a lot of less perceived risk in the market which causes those less bold and less risk averse entrepreneurs to enter the market. You have a huge flood right now in Colorado of new cultivators who see the money moving and want to get it and there’s less perceived risk and so they’re all coming in. We have massive price compression in Colorado right now.

I would dare to say 15% of the cultivation businesses and business in Colorado right now will not be in business this time next year. Because the price of flower sold has just come down to where that high price point that indoor used to get you isn’t being achieved but their cost of goods are very, very high. That movement to good premium greenhouse and I would say commodity level manufacturing quality outdoor is probably going to be the future of the market. It doesn’t mean those businesses are going all of a sudden go out of business in the next four years.

If you have an indoor grow, near Las Vegas it’s going to be tougher anyone to grow a good premium outdoor there because the climate isn’t conducive to it so they’ll make money. As the market matures, as competition increases, as the federal government might open up interstate commerce, that competition is going to get a lot stiffer. That price compression is going to get even worse and the price of that products going to come down.

The hay day of I can just start a cannabis business and make a ton of money is over. You have to pay attention to cash flows, you have to pay attention to cost of good sold because it’s not … It might be wild west market but it’s certainly not the green rush market that it was in say 2011, 2012. It comes in a way but there’s a lot of interest now.

Shango Los: Yeah absolutely. Heck, just wait until the wait happens when we start allowing international trade.

Aeron Sullivan: Absolutely.

Shango Los: My god. Your point is well made that it takes more than just opening a cannabis business to be in the game now and to be successful because of the price compression, you can’t just have skills on the cannabis side or on the business side.

It’s really time for people who have an understanding of both. When I first started in the industry, I was providing consulting to cannabis folks who were prohibition era growers who didn’t really have legal business experience. I was helping them make the transition and understand sale cycles and things like that. At the same time, there were people who owned a chain of dry cleaners and they wanted to sell their dry cleaners and put all their money in cannabis.

They didn’t know cannabis and so they needed somebody who spoke their language who could teach them cannabis. What you’re describing is the sustainable business in cannabis are going to be run by management who have got both sets of skills so that you can both create a good product and see opportunities but also do it in an efficient way so you can keep your prices low.

Aeron Sullivan: You hit it on the head. Most of the successful businesses, and listen, this is the cannabis industry. It’s been legally illegal for two decades so nothing should surprise us at this point. Most of the successful businesses that I interact with have somebody on the business side who knows how to execute on fundamentals. They come from a professional market where there was a tremendous amount of competition.

They know how to execute it on fundamentals. They know how to watch cash flows, they know how to finance, they know how to capitalize the company, they know how to hire employees correctly, they know how to make sure that they don’t make big, red line risk mistakes that being said. I know a bunch of those guys, a bunch of those women that grow subpar products and can’t sell it no matter how good their fundamentals are.

You have the best businesses, have the fundamentals person and they have somebody that came from the black market or maybe the gray market. Because they were the only ones that have been learning how to do product creation and innovation for the last two decades. You’re not going to learn that in a year. You really do, you have to have someone that knows how to grow a good quality product. We had people, they come to us all the time and say “Hey, I’m putting in 100,000 square foot grow. I’m putting in a 200,000 square foot grow.”

That sounds sexy, that sounds awesome, but managing grow of that size is incredibly challenging, especially for the master growers who have been growing on 5,000, 10,000, 15,000 square foot plots in Mendocino and in places in Humboldt. You have to find really talented master growers that have been doing this at scale for the last 10 years and bring them into a well capitalized organization buying a 100 or 200,000 square foot grow. There’s a lot of people that have been doing this for a long time. There’s not a lot of people that know how to manage a quality grow of 300,000 square feet at scale anywhere.

Shango Los: Yeah, there’s a lack of that talent.

Aeron Sullivan: Absolutely. You have these business people come in and want to scale. You have this really talented growers who know how to grow really quality weed in a basement, in a house, on a small plot in Northern California. You have to find a really talented black or gray market individual bringing to your company that you believe not only knows, it just doesn’t just check the black, oh you’ve grown weed before.

They might have grown crappy weed, you don’t know. Just because they’ve grown it in the black or gray market does not mean that it’s good. You’ve got to find an especially talented person that you believe can do that at scale while you execute on fundamentals. It’s very challenging.

Shango Los: I want to hit one more thread before we go to commercial and that is we’re talking about the kinds of customers that you have that are probably most likely to succeed. Going through your platform, I saw that the growers have to let you know if what their product looks like changes so that they can upgrade their photo. If they change something about a strain or a product, they have to make sure to update their listings.

You’ve got people who are helping them and advising them. I find it very interesting because a big part of what you do is not the technology alone of the platform that your developers are working on. You’ve got to have this big contingent that is customer service based to help your customers wrap their head around the product itself, the service itself, but then also to reach out to them so the growers look good enough on the site to actually make a sale. I bet you that’s a big educational sales process with them?

Aeron Sullivan: No, absolutely. I mean, this is something that I believe applies to all companies in this very new fast paced world that we find ourselves in. Something that Silicon Valley did a very poor job between 2000 and 2010 with the explosion of computing technology, explosion in commodification of server space is that there’s been a period of time. I’d say the evolution of business models industries wide that thought “Hey, computers can do so much for us, we’ll make them do all the perfunctory stuff for us and we’ll make a lot of money because our margins are 93 or 94%.

That’s all good until a business comes along that does all the automated stuff you do and then backs it up with really good people and really good services. We call it value added marketplaces or service, or value added services to a marketplace or platform. Every business, every single business in the entire world is a relationships based business backed up with technology not the other way around.

It’s taking us about a decade or a decade and a half especially on the Peninsula up where there’s a lot of innovation to learn that technology is here to make humans enabled to do better not to completely automate us out of the existence. Our sales reps and our account executives, 80% of their time they spend talking to a customer. 20% of the time they spend doing back office work. For most of our clients that we interface with, it’s the opposite. There’s been 80% of their time managing order to spend like this perfunctory, rudimentary tasks.

Then 20% of the times actually talking to the customer because interaction with the customer is not the same as service to the customer. If I call to say, “Hey, how many pounds of this that you have? Does this order look good? Did I give you enough? Okay, it’s going to be there at 3 on Thursday, thanks so much for ordering.” That’s a perfunctory rudimentary interaction, that can be done digitally but when they call and take that same five minutes and say, “Hey, how did that order go? Hey, I heard you just had a baby. Congratulations. How are things going at work? Is there anything I can do to help make your wholesale management easier the next couple of weeks as you come back into work?”

Whatever it maybe, that’s real customer service and that’s why we have technology. It’s not because technology is the answer. It’s just an enabler.

Shango Los: That is incredibly well said Aeron. Hey, we need to take another short break. We’ll be right back. You are listening to the ganjapreneur.com podcast.

The Ganjapreneur podcast is listened to by tens of thousands of cannabis entrepreneurs and enthusiasts every single week. These folks are most likely your target customers and we like to introduce you to each other. Our down to earth and information rich commercial breaks can deliver your message to the cannabis business community and others who just find relief in getting high.

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Welcome back. You are listening to the Ganjapreneur.com podcast. I am your host Shango Los and our guest this week is Aeron Sullivan of Tradiv. Aeron, before the break we were talking about the last step of the process of getting the actual products to the retailer from the producer. I’m really curious because that could be a sticky wicket right? Do you actually handle the product yourself and make the deliveries or are you just setting the deal and then the producer is actually making the delivery to the retailer?

Aeron Sullivan: Yeah. There’s a little nuance to that answer. I mean the ones for short is it depends on the market and it depends on where you are geographically within that market. In Colorado, we’ve largely used courier. Great courier, green parcel service, they do a lot of good work for us in Colorado. Based on cost, they’ve actually stop servicing in couple of areas that we’ll be putting one truck in to help provide coverage for that area. That’s very much sort of a partnership logistics system that we have setup in Colorado.

In Oregon, we’re actually in discussions with two groups right now and whether or not we’re going to contract it out or if we’ll eventually have to put our own vehicles in. In California, in much the same way we have a series of vehicles that we put in and operate, and then work through a few partners with the other areas. We envisioned having most of logistics assets in-house or having one or two service level agreements with very qualified and reputable couriers that I don’t think we have yet to identify.

Where it could be green parcels service, it could be our partners in California. None of us have been in business long enough to find out who’s really going to push that customer service envelope the most. The reason we do that is just like Amazon, your user experiences everything from when you order to when you receive it in a day. When you’re happy to send it back because it’s not what you needed and they have an easy process that’s repeatable every single time. Our business is like that and so the logistics aspect, the actual delivery of the product, that’s part of the user experience.

We have to be able to control that user experience to give them the best experience or consistent experience every time. We hope to do that in the lesser capital-intensive nature that have new investment in your own logistic assets but sometimes that’s just not possible. It really depends on the state, the market, the geography. We use a combination of, but always sort to make sure that, that user experience is as best as it can be.

Shango Los: At that final point, if there is some dispute resolution needed, how does that play out? Say for example, if the delivery arrives and you guys have set up the deal and the flower isn’t up the quality of the pictures or there’s a quantity issue or something. What happens in that moment between the delivery driver and the receiving person that keeps everybody playing nice?

Aeron Sullivan: That’s a challenging area that I think even if you’re an individual business doing self distribution, you’re going to have to deal with those things. For us, we obviously are trying to scale and we’re also trying to make that user experience as easy as possible. Again, that actually comes down to geography depending on where you are. We have a different process. If we’re delivering to a remote area that we only get to once a week and they’re not happy with something, we’ll often times try to solve that there.

Meaning, maybe it’s just a cost adjustment and maybe there was a mistake with the order. Our delivery driver or courier will actually call the account executive who will call the seller and see if we can’t find a resolution at that particular moment. If the buyer doesn’t want to do that, if the buyer is just not happy, we have free return. It’s rejection at the door. They say, “I don’t want this one. We manifest it back.” The sellers already contract with us to receive that.

The whole buyers were more as a big barrier for businesses ordering online because they can’t see or taste it. In reality, our returns are actually quite low. We just have the policy of free returns, no questions asked, at the door you can return it. If you accept the product and find later that you don’t want it, we have a couple other procedures in place for that as well. It’s certainly our preference for them just to say, “Hey. This isn’t what I wanted.” No harm, no foul.

Shango Los: That sounds like a great way to go about it. I can imagine that because of your market share, you’re kind of influencing how businesses interact with each other. You’re helping create the social morays and the social contract if you will that’s happening between buyers and sellers.

Thinking about that while you were speaking, do you feel like you’ve gotten over the hump in Colorado yet where you got enough market share that you have started to become the default setting for people, where you don’t have to try so hard to sell anymore, and you have enough customers talking about how easy it is to work with the product that now people are just coming to you as the default setting? Have you reached that milestone yet?

Aeron Sullivan: Yeah. This is what I would say. There’s a number of clients that I actually want that do some level of self distribution on their own. The funny thing is that’s really because they had to. They’ve been in Colorado now for five years. There was nobody providing a distribution service. They had no choice but to buy their own trucks and to build their own distribution.

Many of those companies are actually using us for everything in their Oregon and California expansions because we have brand recognition and reputation with them. Many of those sort of self distribution companies are paying between 11 and 13% for their own self distribution if they’re doing it efficiently. We can do it for around 4, 5, or 6% and we collect the monetization in the in-between from much of those larger businesses that we have to provide a larger level of service for.

In Colorado, I’d say this. If your business or there is a business that doesn’t have their own efficient self distribution capability, we are the default. For a few of those businesses that might be below 3 million in annual recurring revenue but above a million in annual recurring revenue and have some self distribution, I would say by the end of the year we’ll likely have enough features and service sets to attract that second tier of businesses. Without being more overly verbose than I have been, in Colorado we’re over the hump from a competition perspective but we’re not over the hump from a sustainable, I guess comfortable market share perspective. If that adds up.

Shango Los: Yeah, I understand that. I had the opportunity to hear you speak when you and I were both speaking at the Green Flower Cannabis Entrepreneur Summit down in LA last month. I knew I wanted to have you on the show because listening to you speak specifically about channel distribution for cannabis, you had insider’s knowledge that I had not heard anywhere else which would make sense because you’re the first person to be doing this in the country.

I just liked listening. I became a fan real quick. I’m curious to know what do you feel is an insight that you’ve discovered being on the inside of this unique commercial cannabis space that you’re in that those of us who are not in your shoes could not know yet?

Aeron Sullivan: Man, no one’s going to like me when I tell them this.

Shango Los: Go ahead man, laid out for us.

Aeron Sullivan: This is really crappy for a lot of businesses because there’s a lot of small businesses that went through raids for 20 years, that pushed the envelope long enough and hard enough that other states were able to adopt legislation. Because the taboo nature of cannabis had been slowly chipped away for two decades starting with like these patients in San Francisco, in the early and mid-90’s. There’s been a lot of blood, sweat, and tears that have helped build this industry.

Unfortunately, a lot of those people that have helped build this industry, because market economics are so powerful, are likely going to find themselves either outside of the industry, or in a position within the industry that wasn’t as favorable and certainly not as profitable as it was in a gray market, and this is why.

This is going to go to manufacturing eventually. The ability to break down cannabinoids and terpenes in specific combinations and reformulate and compound them is likely going to be one of the largest areas of the industry, specifically for wellness and medical purposes. Unfortunately, only large pharmaceutical companies are likely going to have the money and the capital to learn how to break those down into all of their components and to re-culminate them. They might be making acquisitions of businesses like ebbu or LucidMood that have been able to do this in the past, but that’s where it’s going to go. It’s going to go to manufacturing because they can target specific needs and that medical market is going to be a very large market.

You don’t use market where they burn flower. Hey, yeah that’s likely going to be big too. The wellness and the medical market are way behind right now that they’re going to pull way ahead which means that you have to genetically modify the seed in order to propel certain cannabinoid production. Let’s say CBV, curves hunger, we really want high CBV plan production because we’re going to extract it. If I can make a plant with 5% CBV instead of .02%, I’m going to do that as a business owner. I’m going to hire a genetic company to build me a seed that does that.

Which means all of the intellectual property and the money-making capability is in the genetics and the bio design of the plants that are being grown. Then the rest of the values in manufacturing where they can breakdown this specific cannabinoids and terpenes. Many of those in between are going to find themselves in a commodity market much like any other agricultural, farming market. They don’t own the IP going into the ground because they’ve been hired to grow it by a manufacture who needs that particular cannabinoid and then the values are going to be created by the manufacturing company.

To be able to grow really high-profitable cannabis is going to be held by a very small percentage of the market. I’d say 15 to 20%. Much like boutique coffee, 18% or so. For many of those businesses, I feel really sorry because they helped build the industry and in that big fear that everybody has about big business coming in, they’re absolutely going to come in. The way that they come in is not going out and acquiring 15 grows. They go out and they acquire bio technology, allow them to modify the seed, and then manufacturing base that can break it down, and then they just contract pharma at low margins.

If you’re in the industry now, I would look very heavily at brand building. Because those brands are going to be the ones that after it goes commodity are able to sell into larger organizations that are trying to consolidate the market. You have to build your business for what is going to be desirable for an acquisition in the next three to five years, or build your business with all of those macro level economic powerhouses at play, so that in three to five years when you want to hold on to your company, not sell it, you’re in a position to be able to do that.

The market in the industry is going a direction that most of us can’t control. It’s not even anyone, any particular business doing it. It’s not … it’s not Procter and Gamble, it’s not Cisco. There’s not anyone particular company that’s causing the market to do this. It’s just economics and they’re not going to stop for anybody. We have to prepare for those or we’re going to find ourselves in a world of hurt in three to five years.

Shango Los: That’s a really sobering cautionary tail. Over the year that we’ve been on the … I was going to say on the air, but streaming. This is a common theme that we’ve heard from the scientists we’ve talked to, people who are in relationships with pharmaceuticals that the future of medical cannabis is patented genetics, people holding their IP, and genetic line insertion so that you can create a plant that is customized for a particular patient.

Now, the genetic modulation does not necessarily have to take place also in people who are burning flowers and they wanted to be organic and hybridized. It’s going to be different markets. The commoditization of medical and people using the oils that they’re going to custom blend, everyone seems to be agree that that’s the future.

That’s all the time we have for today Aeron. Thank you so much for being on the show and sharing the experience that you have gathered being a leader in Colorado, and getting ready to take your company national.

Aeron Sullivan: Thank you Shango. It was a pleasure being on and we’re not here to scare anybody. It’s just knowledge is power and arming people with information, even if it’s unsavoring information allows you to pivot your business model and prepare. I hope if anything we were able to both get people excited but also give them some good as you said sobering and cautionary tales on how to ensure that you can be successful in spite of things that might seen out of your control.

Shango Los: Aeron Sullivan is founder of Tradiv. You can find out more at tradiv.com. You can find more episodes of the Ganjapreneur podcast in the podcast section at Ganjapreneur.com and in the Apple iTune 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 can also download the ganjapreneur.com app in iTunes and in Google Play. For info on me and where I’ll be speaking, you can go to shangolos.com. Do you have a company that wants to reach our national audience of Cannabis enthusiasts? E-mail grow@ganjapreneur.com to find out how. Today’s show is produced by Michael Roe. I’m your host Shango Los.

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Perennial Holistic Wellness Center

perenniallogoRecently, the Ganjapreneur team was down in Southern California for the Green Flower Media Cannabis Entrepreneurs Summit and we asked around for a “must visit” cannabis dispensary in the area. There were a few mentioned but Perennial Holistic Wellness Center in Studio City was so often repeated that we had to go.

The first thing that you’ll notice, if you are not from LA, is that there is valet parking… for a cannabis dispensary. We learned that because of poor parking in so much of the Los Angeles area, this is becoming more common for upscale dispensaries. For most of the team, however, this was new and novel.

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The wood paneled check-in area was modern and comfortable. No loud radios or blaring TVs, just a calm and friendly team of hosts to check IDs and welcome us. The shop has been open for ten years and has expanded a few times. We got a kick out of seeing a movie prop from Pineapple Express displayed alongside a few of their “Best Medical Dispensary” awards. We sat down and thumbed a magazine but were almost immediately whisked back to the dispensary.

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We were caught off guard to find a fully-functioning grow in the hallway. While the setup only produces a small amount of the overall volume that Perennial provides, it was fun to see and gave the whole place a very tropical vibe. We imagine that the grow will be especially fun for folks who may never have seen a cannabis plant in person. It allows the staff to walk patients over to the grow room and use it as a visual aid when explaining some of the finer points of cannabis botany. Also in the hallway is a dedicated clone room providing cannabis starts to patients. It is sealed from the rest of the dispensary to discourage contaminants, but you can clearly identify the strains available during your visit based on their large tags.

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The selection of cannabis products was very impressive. An array of flowers were available for every ailment or celebration. Lots of colors. We were especially pleased that the terpenes were on point for every jar we opened. We wish that was more common in dispensaries. There was an array of price points as well, so both nerdy connoisseurs and the budget-conscious could find relief. We appreciate Perennial’s emphasis on probiotic growing techniques and were happy to hear that they intentionally foster that in their producer partners.

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The concentrates were on display with a light behind them for those who shop by color. There were several extraction methods available, including hydrocarbons, CO2 and rosin.

The edibles selection was really exceptional. There were so many kinds of foods to choose from but most important was that the dosages available went from 10mg all the way up to 100mg meaning that both cannabis dabblers and hardcore patients both had something available to them.

One of the things about the SoCal scene we really like is how professional the packaging has become, and Perennial offered well-produced products that also look cool when you show them to your friends.

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They had quite a bit in the way of discrete medicating including cannabis oil cartridge pens, as you would expect, but also sneaky mechanisms like inhalers that look like they are for asthma totally great stuff for patients who need relief on the go or for attending a sporting event.

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Everyone at Perennial was smiling and welcoming. We casually quizzed the staff and they handled it all easily. Altogether, it was a very pleasant experience, and we even had a pair of celebrity sightings while there.

We will be back for sure and expect that Perennial’s selection, expertise and kind environment will be a welcome experience for most any cannabis enthusiast.

Perennial Holistic Wellness Center
11705 Ventura Blvd
Studio City, CA 91604
(818) 505-3631
www.perennialholistic.org

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Head of Illinois Medical Cannabis Program Resigns

The second person chosen by Illinois Gov. Bruce Rauner to head the state’s medical cannabis program has resigned, the Associated Press reports. The Bureau of Agriculture’s chief of the pilot medical cannabis program, Jack Campbell, will take over the role.

Joseph Wright held the post for just over a year, and his resignation comes as the governor considers signing legislation that would extend the program another two years.

According to the report, the 32-year-old Wright said it was the right time to pursue other opportunities, possibly with a private sector cannabis company. He earned $53,770 annually in his role with the government.

Wright’s successor ran for Sangamon Sheriff as a Republican in 2014, which he lost in the primary. He retired as a sergeant with the county last January. Campbell began his role with the Ag Department last summer.

Bob Morgan, the first program director, called Campbell’s hiring “good news for patients,” noting that he has been a part of the medical marijuana program since its implementation.

“[He] has a strong reputation for how he has engaged with cultivation centers,” he said in the report.

The extension agreed on by the governor and lawmakers also adds post-traumatic stress disorder and terminal illness to the list of qualifying conditions. Once signed by Gov. Rauner, the program will continue until 2020 – the original legislation allowed for a four-year pilot program.

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California Legalization Initiative Secures Spot on November Ballot

California will decide on legalizing marijuana for recreational use in November, after the Secretary of State’s office confirmed supporters submitted more than enough signatures for a ballot initiative, according to a Reuters report.

“Today marks a fresh start for California, as we prepare to replace the costly, harmful and ineffective system of prohibition with a safe, legal and responsible adult-use marijuana system that gets it right and completely pays for itself,” Jason Kinney, initiative spokesman, said in a statement.

The “Adult Use of Marijuana Act” would allow individuals 21-and-older to possess up to an ounce of cannabis for personal use and allow personal cultivation of up to six plants. Under the proposal, localities would decide whether or not to allow retail operations, which would be taxed. The Bureau of Marijuana Control would be created within the Department of Consumer Affairs to regulate the industry.

The measure needed more than 402,000 signatures and Secretary of State Alex Padilla is expected to certify the signatures today.

Voters defeated a similar measure in 2010 but, according to a May poll by the Public Policy Institute of California, 60 percent of voters in the state support a regulated marijuana industry. This measure has drawn the support of Lt. Gov. Gavin Newsom and billionaire Sean Parker.

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Washington Medical Cannabis Database May Not Be Ready by July 1

Washington medical cannabis patients and providers should be prepared for delays in the roll-out of the state’s new medical regulations.

In particular, the state-managed database of medical cannabis authorizations is not ready yet, according to an email issued yesterday afternoon by the Washington Department of Health. This could spell dire consequences for Washington cannabis patients.

Lawmakers voted last summer to dismantle the state’s 18-year-old medical cannabis industry, and those regulations  — which assimilate the medical industry into the I-502 recreational market — are supposed to take effect this Friday, July 1. Under the new regulations, patients will be required to get medicine from licensed cannabis retail outlets.

Recreational retailers, however, charge significantly more for cannabis products than dispensaries and collectives charged in the medical industry.

Regulators had planned a database that patients would register with to receive patient recognition cards. With such a card, patients would be allowed to:

  • Purchase cannabis products sales-tax free.
  • Purchase up to three times the legal limit for recreational users.
  • Purchase products infused with higher amounts of THC than recreational users.
  • Grow more than four plants at home.
  • Enjoy full protection from arrest, prosecution, and legal penalties associated with their marijuana activities — though patients will still have an affirmative defense.

If the database is indeed delayed, it will inevitably spell trouble for Washington cannabis patients.

According to the Health Department’s email: “Patients and providers can still purchase marijuana from authorized retail stores; however, they can’t take advantage of the benefits until the database is operational.”

“The department is committed to ensuring patient safety, and it will continue to work on having the database ready as soon as possible,” the department said in its release.

Activists are planning a downtown Seattle protest for tomorrow during the afternoon rush hour to bring attention to the plight of Washington’s medical cannabis patients.

 

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Seattle Protest Planned for June 30 Against Washington’s MMJ Shutdown

The NORML Women of Washington are organizing a protest in Seattle this Thursday, June 30, that aims to bring attention to the unfortunate criminalization of Washington’s robust, 18-year-old medical cannabis industry.

Starting Friday, July 1, medical cannabis patients and caregivers who have not assimilated into Washington state’s hyperregulated and exclusive recreational marijuana marketplace will become criminal, as per the Cannabis Patient Protection Act (SB 5052) passed by Washington lawmakers and signed by Gov. Jay Inslee last summer. For months, long-established dispensaries and community caregivers have been closing up shop — or going underground to the “informal” market — in preparation for the dramatic market shift, leaving many patients without adequate access to their medicine.

“While moving to a regulated system is understandably an imperfect journey, this date is significant because it will make people criminals that Washingtonians have voted to protect and have overwhelmingly supported for nearly two decades,” write the protest organizers on the event’s Facebook page. “This is NOT an anti-502 protest. We support the legalization of adult use marijuana and want to send a message to our representatives and regulators that patients and their caregivers need to be protected during this revolutionary process.”

The protest is scheduled for 4:00 p.m. to 7:00 p.m. on Thursday afternoon and protesters will be gathering on sidewalks at the corner of 6th Ave. and Union Street in Downtown Seattle — one of the busiest places in the city, during some of its busiest hours.

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