Large indoor cannabis plant's cola bud.

MassRoots Settles Debt, Announces $3.2 Million in Equity Financing

10/10/2016

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

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

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

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

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

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Several stacks of $100 bills USD.

Report Predicts 37 Percent Growth for Cannabis Industry Through 2020

10/10/2016

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

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

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

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

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

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Anne van Leynseele, Founder of NWMJ Law.

Anne van Leynseele: Cannabis Law in the Northwest

10/10/2016

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

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

Keep scrolling down to read the full interview!

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

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

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

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

Are there any drawbacks to focusing on cannabis law?

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

How many people are employed at your law firm?

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

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

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

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

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

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

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

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

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

What is the most difficult part of your job?

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

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

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

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

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

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

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A beach-side getaway on the Cayman Islands.

Cayman Islands Legislature to Debate MMJ Bill

10/10/2016

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The legislature in the Cayman Islands will debate on a measure to legalize the medicinal use of cannabis oil today after it was introduced in the Legislative Assembly on Friday, the Cayman Compass reports. The consideration by lawmakers comes after a local resident made a presentation to the Progressive’s government caucus about the therapeutic use of cannabis for cancer patients.

Premier Alden McLaughlin, who also serves as the health minister, said that under the plan, only physicians would be allowed to prescribe cannabis, which would be imported into the country by licensed pharmacists. The source of the oil was not yet determined by lawmakers as the drug is still outlawed by many of the island’s Caribbean neighbors.

“There were and remain some reservations about the use of this oil and its purpose, because there are still questions about its efficacy,” McLaughlin said in the report. “Nowhere in the world have they yet been able to determine definitively that it has the curative effects that many of its advocates believe.”

The bill’s introduction and debate was sparked by a presentation from Dennie Warren Jr., whose wife has been diagnosed with stage 4 lung cancer. McLaughlin said that Warren believes medicinal cannabis “would give his wife some hope.” Warren became an advocate for medical marijuana legalization after his wife’s diagnosis.

Despite his concerns, McLaughlin conceded that cannabis is “very useful in dealing with a range of symptoms” associated with a variety of serious illnesses and that legislators “do not want people to continue to suffer.”

“We believe we must do what we can,” he said.

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Sunset over the skyline of Albuquerque, New Mexico.

Poll: New Mexico Voters Support Recreational Use

10/10/2016

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Voters in New Mexico strongly support legalizing the adult use of cannabis, according to a poll by the Albuquerque Journal, which found 61 percent would support a legalization proposal with 34 percent opposed.

The survey revealed strong generational differences in voters’ opinions on the topic, with 82 percent of respondents aged 18 to 34-years-old indicating they would support such a proposal; while less than half of voters — 45 percent — aged 65 and older said they would back a legalization measure. Eighty-one percent of independent voters supported legalization, compared to 70 percent of Democrats and 40 percent of Republicans.   

Last February, the state legislature voted down a joint resolution that would have put a recreational legalization question on the November ballot.

Brian Sanderoff, president of Research & Polling Inc., who conducted the poll on behalf of the newspaper, suggested that if the question were put to voters in the state today it would pass.

“The new generation that is getting onto the voter rolls are more likely to support, so it’s only logical that support levels have been rising,” he said in the report.   

The results are identical to a poll from the same group in January, with both indicating rising support from 2014, when pollsters found 50 percent opposed to legalization in the state and 44 percent approval.

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Australian MMJ Company Gets State Approval for Cultivation

10/10/2016

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The Australian Cannabis Corporation has taken its next step toward cultivating cannabis in the state for medicinal use as representatives from the South Australian State Government gave the company approval to seek a federal cannabis cultivation license, according to a report from InDaily.

Ben Fitzsimons, ACC co-founder, said now that they have the support of the state government, the company just needs approval from the feds.

“The vision is creating employment opportunities for all South Australians [and] to create a global research hub,” he said in the report, suggesting cannabis will become a “serious…global industry.”

According to the report, state government officials indicated they will help lobby the government on behalf of medical marijuana businesses, hoping to create a medical cannabis industry that includes research and development. A spokesperson indicated that the South Australian government “supports in-principle cannabis research and development” and would like to see the drug investigated clinically and in both public and private research institutions.

“[It] will assist licensed medicinal cannabis businesses operating in this State to lobby the Commonwealth Government to permit the export of any medicinal cannabis products which may be made in South Australia in the future,” the state government spokesperson said.

The South Australian medical marijuana plan would allow patients with serious and chronic illnesses to access the drug, which would be prescribed by medical specialists. The products would be produced in the region or imported under permits issued by the Therapeutic Goods Association.

Both Fitzsimons and state government officials said that plans for recreational cannabis use are “not on the table.”  

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A worker at a cultivation facility in Washington plucks large branches off a cannabis plant.

Economist Speculates California Legalization Won’t Be Immediate Economic Boon  

10/07/2016

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A UCLA economist disputes Yes on 64 predictions that a recreational cannabis market will be worth $1 billion to the state’s economy, forecasting instead that the initial gains would be more likely about half of that figure — roughly $501 million — according to a report from Bond Buyer.

Jerry Nickelsburg, a senior economist for the UCLA Anderson Forecast, bases his estimates on data sets in Colorado, where cannabis sales are taxed 2.9 percent. He suggests that huge budgetary gains would not be seen in the sector for at least two-and-a-half years.

“Using population to gross-up the Colorado numbers and assuming a California 10 percent sales tax, the revenue calculation from marijuana sales would be $501 million or 0.4 percent of the state’s general fund,” Nickelsburg said in the report. “The retail marijuana sales in Colorado are growing, so this number might be a bit on the low side, but it has a long way to go to make a significant impact on the budget.”

According to Nickelsburg, those numbers translate to an industry representing 0.2 percent of the state’s $2.5 trillion dollar economy and 0.13 percent of its employment. His data set does not include other taxes and fees that would be required by canna-businesses.

Fiona Ma, chairwoman of the California Board of Equalization, an elected tax administration panel, said that cannabis sales are hard to track because of the cash nature of the businesses. Because they have no firm financial statements it’s nearly impossible for the BOE to audit companies operating in the industry. Additionally, when a company registers their business with the state there is no ‘cannabis’ check box, so companies usually check either ‘agricultural’ or ‘healthcare,’ which makes it hard to cross reference.

“We estimated that we collected $44 million in 2014 in sales taxes from dispensaries, which probably only represents 25 percent of companies,” she said.

Ma suggests that the full tax revenues will only be realized if there is “some easing of monetary policy” to get “more banks in the mix.”

To that end, members of the California Department of Business Oversight are preparing for the passage of Prop 64 in November, and according to department Commissioner Jan Lynn Owen, the regulatory scheme for recreational cannabis will be stronger than the current system under which the medical program operates.

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A group of professional NFL players lined up and in uniform.

Pro-Cannabis NFL Group Funding and Participating in THC Oil Study

10/07/2016

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A group of former and current players for the National Football League is funding a cannabis oil study to determine its use as an effective alternative to opioid-based therapies, KPIX 5 reports. According to a 2011 study, NFL players are three times more likely to abuse prescription painkillers than the general public.

The study is funded by the Gridiron Cannabis Coalition, a nonprofit comprised primarily of former and current NFL players, and Constance Therapeutics, a California-based cannabis producer.

The 30 former players who participate in the eight-week pilot study must hold a California medical marijuana card, undergo a medical assessment before and after taking the oil, and provide a complete medical history, including their past cannabis use.

Chris Kluwe, a former punter who spent most of his seven-year professional career with the Minnesota Vikings, said the study could help a lot of players long term if the oil proves to be a viable alternative to opioids for pain relief.

“You’re essentially going through multiple car accidents over the course of, like, three-and-a-half hours,” Kluwe said in the report, describing the toll a professional football game has on the body.

According to the report, an estimated 400 NFL players are injured every year. Kyle Turley, who spent a nine-year career with the New Orleans Saints, St. Louis Rams, and Kansas City Chiefs, outlined his football-related injury history and said many of them will cause a lifetime of pain.

“I need a new right hip, I need two right knees. I have got a plate and ten screws in my right ankle,” Turley said. “I am bone-on-bone in every joint.”

The study will start with a rice grain amount of THC oil as a constant and double about every four days, Constance Finley, CEO and founder of Constance Therapeutics said.   

“When we see NFL players able to use a medicine that doesn’t cause harm, that will help their functionality, we will see the stigma fall away very rapidly,” she said.

Medical cannabis use is currently barred under the current collective bargaining agreement between the league and the NFL Players Association.   

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Maryland's State House in Annapolis.

Maryland MMJ Commissioner Who Disapproved of Reshuffling Replaced

10/07/2016

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A Maryland Medical Cannabis Commission member has not been reappointed by Gov. Larry Hogan after her term expired, according to a Baltimore Sun report. Deborah R. Miran cast the one dissenting vote against the commission’s decision to deny grower licenses to two high-rated applicants and give them to lower-ranked companies.

Miran was an appointee of former Gov. Martin O’Malley, and the only person on the panel to vote against the move to reshuffle the licensees, which has sparked lawsuits threatening to derail the licensing process in the state.   

According to Doug Mayer, spokesperson for the Republican governor, her dissenting vote had no bearing on Hogan’s decision to replace her.

“This office wasn’t even remotely aware of how the vote took place,” Mayer said in the report.

The new appointee, Saundra Washington, was chosen after the governor’s meeting with members of the Black Legislative Caucus. The caucus has threatened to introduce emergency legislation to halt the licensing program due to the lack of minority-run businesses approved for the lucrative licenses. Washington is executive director of Lifestyles Foundation of Maryland Inc., a nonprofit that helps people in need with clothing, shelter and food.

The companies initially approved for state licenses were ranked by Townsend University researchers. Miran was a member of the subcommittee that reversed an earlier decision, by a 4-1 vote, to award the licenses to the companies as ranked by the university. The commissioners say that the change was made due to the “geographic diversity” requirements of the law.

However, in their reshuffling the commission approved a license for Holistic Industries – which counts the son-in-law of top Annapolis lobbyist, Gerard Evans, among its equity investors. Holistic paid Evans $90,000 from November 2015 through April 2016, but he maintains his work for the company had nothing to do with their approval.

The appointment of Washington is, perhaps, a sign that the commission plans on moving forward despite the lawsuits and threats to delay the program by the caucus. Commission spokeswoman Vanessa Hold said the body is “wary of any additional delays in making the medicine available to patients” and that if the licensing process was restarted it could add another year or two to getting products to market.  

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A young cannabis plant flourishing in an outdoor garden.

South African Study Finds CBD an Effective Cervical Cancer Treatment

10/07/2016

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Researchers from Potchefstroom, South Africa’s North-West University’s biochemistry department, suggest that CBD extracts inhibit cell growth and induce cell death in cervical cancer cells, according to an outline of the study by Motherboard. The study’s authors concluded that the disease is “the most lethal cancer amongst black women” in Africa as over a quarter of a million women die from cervical cancer each year.

“Results obtained indicate that both cannabidiol and Cannabis sativa extracts were able to halt cell proliferation in all cell lines at varying concentrations,” the authors determined in the article, published in the BMC Complementary and Alternative Medicine journal. “In conclusion, these (sic) data suggest that cannabidiol rather than Cannabis sativa crude extracts prevent cell growth and induce cell death in cervical cancer cell lines.”

The study was conducted through in vitro, or test tube/petri dish analysis using CBD supplied from biochemistry firm Sigma-Aldrich. The cannabis used in the study was collected from Nhlazatshe 2, in the eastern Mpumalanga province. In South Africa, over 80 percent of the population is still dependent on medicinal plants, the researchers noted.  

This is the second such study looking at the possibility of using cannabis as a cervical cancer treatment. A 2004 French study, published in the journal Gynecologic Oncology, had similar findings, which concluded “endogenous cannabinoids or synthetic molecules offers attractive opportunities for the development of novel potent anticancer drugs.”       

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How Dispensaries Can Pursue Positive Local News Coverage

10/06/2016

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Opening a new business in an emerging and often controversial industry can present all kinds of challenges, but a positive write-up in a local publication can do wonders to break the stigma that your neighbors may have about the cannabis industry while bringing new customers or patients through your doors in the process.

In order for a news outlet to consider writing about you, first you’ll need to have a newsworthy story. With that in mind, attracting positive press as a dispensary or producer/processor can be done the same way that it can be done for any kind of local business: participating in local charity events, announcing noteworthy partnerships or promotions, or becoming a member of your local chamber of commerce and other community organizations. After deciding what your company can do to attract positive attention, take the following steps to increase the odds that a journalist will be interested and announce your news to the community:

1. Research local media outlets in advance

Come up with a list of local media outlets (newspaper, radio, TV, news sites or blogs) and observe the way that their reporters cover local business or lifestyle news, especially related to cannabis. Note the writing style, length of story, type of story, etc. so that you can provide a press release written in a similar style, lessening the amount work the journalist will need to do to cover your news. Chances are, if you read the local papers, you already know which ones will be most likely to show interest in your story.

2. Compile a list of reporters to contact

From each outlet, make a list of all of the journalists that would make sense to contact based on the previous stories you can find that they have covered. Look for the journalists who specialize in local business, culture, events, or whatever topics pertain best to your announcement. You can usually find a journalist’s preferred mode of contact on the contact or about pages of the outlet’s website, or at the end of an article they have written.

3. Write a press release announcing your news

After selecting your top prospective journalists, write a press release matching the tone of the outlet you wish to target. Keep your most important and timely messaging at the top of the press release, include a quote or two from someone at your company, and list your contact information at the bottom of the release. For more on the art of press release writing and to download a template, check out this Hubspot article.

4. Send a personalized email to each journalist with your press release attached

Personalizing the email you send to each journalist will show them that you have taken the time to do your homework and that you’ve contacted them for a reason. Feel free to reference past articles that they have written while mentioning that their audience would benefit from knowing your company’s news. Attach a document containing your press release, as well as some high-resolution photography related to your announcement.

5. Follow up with the journalist if needed.

In some cases the journalist will reach out to you with follow-up questions, so be prepared to speak over the phone or meet in person with the reporter. If you don’t hear from a journalist or see a story profiling your company’s news, it is okay to follow-up with the journalist a few days later. Be polite and remember that if they like you and what your company is doing, it could mean much more positive press in the future.

Overall, outreach to the local press should be a big part of your marketing efforts. Obtaining local press coverage can be time-consuming, but it is free and more trustworthy to the public than advertisements. Spend the time building up a comprehensive outlet and journalist database, crafting effective press releases, and maintaining communication with journalists, and you could see large amounts of positive press and new business.

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Anchorage, Alaska at night from across the water.

First Cannabis Retailer in Anchorage, Alaska Receives City Approval

10/06/2016

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The Anchorage Assembly voted on Tuesday to approve the Arctic Herbery — a cannabis cultivation and retailer enterprise proposed by entrepreneur Bryant Thorp — as the city’s first licensed, retail marijuana shop. Thorp was issued his cultivation license by the city back in July, and has already received state approval for both aspects of his operation.

According to a report by Alaska Dispatch News, no members of the public showed up to testify against Thorp’s retail shop, and the Assembly voted unanimously to approve the licensing without prior discussion among Assembly members.

“I’m shocked. That was easy,” said Thorp, who now estimates his opening date will be “around the first of November-ish.”

Several conditions were attached to the licensing, however: the store must be closed between the hours of midnight and 8 a.m., and any cannabis odors must be contained at the property line.

With a cultivation and retail license in hand, the final obstacle blocking the Arctic Herbery’s launch — besides a few minor building upgrades that Thorp says are still needed — is for cannabis testing labs in the state to be fully operational, as every batch of recreational cannabis must be tested for consumer safety before it can be sold.

“I just wanted to note that with breathtaking speed we blew by the first approval of a retail marijuana establishment in Anchorage,” said Assemblyman John Weddleton, chairman of Anchorage’s land use committee that oversees cannabis applications. “We haven’t made it easy on everyone but I wish him luck, I hope they do a great job.”

“Go forth and do good,” Assemblyman Tim Steele told Thorp.

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A doctor organizing their work via a touchscreen tablet.

Study: Doctors Generally Unconcerned by Cannabis Use, GOP Docs Less Likely to Recommend MMJ

10/06/2016

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According to a study published in the Proceedings of the National Academy of Sciences, Republican doctors are less likely to recommend the use of medical cannabis than their Democratic counterparts, but the study also discovered that, in all, doctors cared less about cannabis use than they did other “risky” behaviors such as tobacco use or sex with a prostitute.

“Republican [physicians] are more likely to discuss health risks of marijuana [with their patients], urge the patient to cut down, and discuss legal risks,” the authors wrote.

Democrats, on the other hand, were more concerned about how a patient who owns firearms stores their weapons if they have children than they were about the patient’s cannabis use.

In the study, conducted by Yale University researchers, 233 doctors were asked to rank nine hypothetical patient behaviors on a 10-point scale. The behaviors included a range of issues – including cannabis use, previous abortions, depression, not wearing a helmet while riding a motorcycle, etc. – in an effort to determine their attitudes based on their political affiliation.

Marijuana use garnered a 5.7 rating, along with previous abortions. Not wearing a motorcycle helmet and sex with prostitutes ranked at the top of the list, with an 8.4 score. Tobacco use and depression ranked slightly second at 8.2; alcohol and obesity had an average score of 7.8; and firearms in the home got a 7.4 score.

Tennessee Congressman Rep. Phil Roe, a retired obstetrician-gynecologist and chairman of the GOP Doctors Conference, said that “party affiliation should have nothing to do with patient care.”

“I never once treated a Republican or Democrat cancer in my life,” Roe said in a Washington Post report. “When a patient walked into my office, I didn’t know if they were a Republican or a Democrat, and I honestly didn’t care.”

Roe said most patients will seek out the best care regardless of a physician’s political affiliation.

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Contemporary blue home theater with couch.

Pro-64 TV Ad Campaign Debuts in California

10/06/2016

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Ads supporting Proposition 64 in California have started airing on broadcast and cable channels in the state, according to a blog posted on the Californians for Responsible Marijuana Reform website. The spots highlight the restrictions of the program and how it will keep children from accessing the drug as well as the revenue expected under the plan.

In the ad titled “Safeguards,” a narrator outlines the keystones of the bill aiming to protect children — customers must be 21-years-old and advertising to young populations is banned, including edibles that appeal to children.

“Revenue” attempts to dispel the myth that the Adult Use of Marijuana Act would permit cannabis sales at grocery and convenience stores, and outlines the potential proceeds that could be gained under the measure.

“Prop 64 generates $1 billion in new tax revenue for California to fund after-school programs and job training and placement initiatives,” the ad states.

The Yes on 64 media buy is funded by Californians to Control, Regulate and Tax Adult Use of Marijuana While Protecting Children; which includes “major funding” from entrepreneur Sean Parker and Drug Policy Action.

Brian Brokaw, campaign manager for Yes on 64, said Californians “overwhelmingly support” a “smarter, safer approach” to cannabis policy.

“Proposition 64 is the most comprehensive, thoughtful marijuana policy in the nation and reflects the input of the hundreds of organizations and experts – and these ads are designed to straightforwardly communicate the vast safeguards and benefits of Proposition 64 to every voter in the state,” he said in the post.

Yet, some California growers are opposing the measure over fears that it will create too much red tape and onerous oversight.

California is one of five states voting on the legalization of recreational cannabis next month.

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A calculator and pair of reading glasses sitting on top of paperwork.

Cannabis Packaging Company Files Chapter 11 in Colorado

10/06/2016

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High Supply, a Denver-based cannabis packaging company, has filed for Chapter 11 bankruptcy as the result of “severe financial stress” caused by “theft and corporate espionage by former employees,” according to its CEO Paul Lufkin, as reported by the Business Den.

Lufkin is currently embroiled in a lawsuit against a former co-owner of the company and other employees, claiming the cohort tried to start another packaging firm in violation of a non-compete agreement.   

Through their lawyer, Tobin Kern, the former co-owners and employees contend that the bankruptcy is the result of the High Supply’s new owners’ “own poor customer service and decision-making since the sale was completed.”

In the bankruptcy filing, the company outlined debts of $245,000.

Lufkin, along with investors from Green Leaf Acquisitions purchased High Supply from founders Justin Walker and Aaron Israel last year for $400,000 including stock. Walker remained president of the company while continuing to run his printing business, Pressroom 2.0. As part of the sale, Walker signed the non-compete clause.

About a year later, Walker and Israel claimed that they had not been paid for their ownership stake in full, and in February 2016 Pressroom 2.0 sued High Supply alleging that the owners locked them out of the shared space used for the printing business operations.

Green Leaf countered, claiming that Walker and several employees conspired “to establish new competing operations” in Denver — in violation of the non-compete clause.

In that case, a Denver County District Court barred Walker from owning or working at any packaging firm that supplies cannabis companies. Walker was allowed to continue running Pressroom 2.0 under the condition that High Supply be its only cannabis packaging client. Additionally, the judge ordered Green Leaf to pay the former co-owners $150,000 in stock under the original sale agreement.

In a court filing, Kern argued that Green Leaf could not “stretch” Walker’s non-compete order to include other individuals and marijuana packaging business’ names in the suit. He says that Walker is complying with the terms of the agreement and the former employees are not subject to non-compete agreements.

This is at least the second time Lufkin has filed bankruptcy for a company. In 2012 Lufkin purchased e-payment company eFusion, which filed for bankruptcy a year later due to claims that the former owners plundered the company’s profits for themselves.  

This is also not the first time he has been locked in litigation with former associates. In 2005, he purchased a majority stake in eCashFlow Systems, a Denver-based e-checking business. Lufkin was subsequently sued by its founder, who claimed he was never paid his full equity shares by Lufkin. Investors also sued, claiming Lufkin had mismanaged company funds.            

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The cola, or top-most nug, of a medicinal cannabis plant.

Illinois MMJ Sales Reach Nearly $4M in Sept.

10/06/2016

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Medical marijuana sales in Illinois topped more than $3.8 million in September, bringing the total of cannabis sales to $23.5 million since the program was launched in November last year, according to a report from the Associated Press.

Under the program, 11,100 patients are registered to buy medical cannabis in the state; 85 of which are teenagers and children. There are now 44 licensed dispensaries in the state.

As the program expands, other Illinois patients are seeking to gain access to medical cannabis in the state, and seven lawsuits have been filed to expand the list of qualifying conditions.

In June, lawmakers chose to extend the pilot program until 2020 and added post-traumatic stress disorder and terminal illness to the qualifying conditions list. The following month, Cook County Circuit Court Judge Rita Novak ordered the Department of Public Health to reconsider adding migraines to the list after Health Director Nirav Shah overturned a vote by the Cannabis Advisory Board to add the condition. Last month, Novak’s colleague, Judge Neil Cohen, ordered Shah to allow post-operative pain as a qualifying condition.

In July, Republican Gov. Bruce Rauner signed legislation to decriminalize possession of small amounts of cannabis. According to the Chicago Tribune report, the law also expunges records for some marijuana-related offenses twice a year.

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Brandon Cassens, founder of My Urban Greenhouse.

Brandon Cassens: Bringing Home Grow Options to Urbanites

10/05/2016

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Brandon Cassens is Founder of My Urban Greenhouse — an urban gardening solution for folks who lack the yard space typically needed for a personal garden, but who still want to take advantage of cannabis home-growing laws in Oregon, Colorado, and other normalized states. My Urban Greenhouse manufactures automated, hydroponic growing systems and ships them around the U.S.

In the following interview, we speak with Brandon about how he has kept the hydroponic growing process sustainable, the differences between targeting consumer vs. commercial cultivators, what My Urban Greenhouse has planned to scale into the future, and other interesting topics.

Keep scrolling down to read the full interview!

Ganjapreneur: Could you describe how My Urban Greenhouse originally came about?

Brandon Cassens: My Urban Greenhouse started in 2011 with the concept of sustainable, urban farming. Steven, Andrew, and I were excited by the huge potential for indoor plant cultivation. We built a robust indoor recirculating aquaponics system with flood and drain grow beds, raft systems, and traditional HID lighting. The high electric cost of running that indoor system with HID lighting resulted in the building of a 640 square foot aquaponics greenhouse. In the process of these builds, we experimented with every variation of hydroponics and did extensive research on energy efficient LED lighting solutions. When cannabis laws started changing in Oregon, we utilized our experience developing hydroponic systems to produce the HomeGro system.

What type of grow systems does the company provide? Which is your most popular product?

My Urban Greenhouse systems are automated, hydroponic growing systems that include everything a person needs to get growing. Designed for indoor growing, our smallest system is only 2ft wide, 2ft deep and 4ft tall. It’s a perfect solution for urban dwellers with limited space. All of our systems include energy efficient LED Lighting with a customized spectrum specifically for the cannabis plant. Our LED lights will grow all plants successfully, but the cannabis plant requires unusually high levels of the red spectrum to produce high quality flower. This is the reason our lights have one switch for vegetative growth that provides a full spectrum of light and a second switch for the bloom/flowering stage that pumps a huge amount of additional red light on to the plants.

Our most popular product is the HomeGro. The HomeGro requires 10 minutes of maintenance per week, costs less than $10 per month in electricity, and will easily provide new growers with more than 1 ounce of dried flower per month. We have had experienced growers producing over 16 ounces in a 3 month grow cycle. The HomeGro footprint is 2ft deep, 4ft wide and 7ft tall so it still easily fits against a wall indoors.

How does My Urban Greenhouse work to offset the potentially negative environmental effects from an indoor grow op?

The largest impacts of an indoor grow operation on the environment are high levels of water and energy consumption. We developed all of our systems with sustainability in mind. We only utilize recirculating hydroponic systems which reduce water consumption by 90% compared to traditional agriculture. Our LED lighting solutions reduce electrical energy consumption by up to 70%. These LED lights use less energy to provide the same amount of light to the plants. They also produce very little heat which reduces the need for energy consuming fans and air conditioning units that are required when using traditional HID lighting. By minimizing the required water and electric inputs, we provide an environmentally conscious way for home growers to produce their own herb.

Have you experienced any pushback from law enforcement or regulators?

No, we have not had any negative experience with regulators. Our systems allow people to start growing with only 2 plants, which is under the 4 plant limitation set in Oregon. We want people to stay within the regulations and I’d hope that law enforcement would appreciate the products we’re bringing to citizens that allow them to do just that.

How many employees does My Urban Greenhouse have?

My Urban Greenhouse currently has 4 full time employees: The 3 founders/owners (Steven, Andrew, and Brandon) and our newly hired sales person Camden. We’re expecting to generate enough sales to grow our team to 10 employees over the next 12 months.

Have the products you offer today changed from the products you offered shortly after the company’s launch? If so, how?

Great question. The answer is a big YES here. Our product at the time of launch was a $1500 version of the HomeGro system we sell today. It included a complicated metal structure with telescoping legs that allowed the light to be raised as the plants grew. It also included an off the shelf LED grow light that we were purchasing as retail. Our consumer interactions in the first month gave us critical feedback on the direction we needed to go with our products. We focused on two critical areas: Cost reduction and LED Lighting. The HomeGro evolved to include our own line of LED lights and the cost was reduced to $995. People also expressed the desire to grow the full 4 plants they’re legally allowed to grow in Oregon. That resulted in the development of a Sea Of Green style system that allows for a truncated growth of 4 plants. The SOG unit provides more frequent harvests and a smaller footprint that is perfect for apartments and other small living spaces. We’ve even had a customer living in an RV purchase an SOG unit that fit right in their closet!

How far can you ship your products? Is there much out-of-state demand for your products?

We currently ship our products anywhere in the U.S. However, it will cost a bit more if you live in Alaska or Hawaii. We’ve seen a big increase in out of state orders recently. I would say Alaska is definitely our biggest out of state market, but we receive regular inquiries from states in the Midwest and East coast.

What inspired you to focus on indoor cultivation at the consumer level, as opposed to commercial growing?

Over the years, we’ve spent a fair amount of time in our local hydroponics shops. When the laws in Oregon established a 4 plant limit per household, we recognized that most hydroponic systems currently being sold were built to grow 6 or more plants. There weren’t off the shelf options for people that just wanted to grow 2 or 4 plants at home. We saw this gap as an opportunity for us to provide systems that comply with Oregon recreational laws. We’re always developing new products and have solutions available now that will address the larger medical and commercial system needs.

What would you say is the biggest obstacle so far that you have faced while building up My Urban Greenhouse?

I’d say our initial focus on consumer level grow systems created a huge challenge in reaching that consumer base. Building awareness for our brand and what we stand for is a constant task that requires time, energy and funding. It’s tough, as a startup company, to get in front of thousands of individuals that are interested in our products. We’ve found some great media partners with Dope and NW Leaf magazines. But we’re still spending as many weekends as possible attending cannabis industry shows like THC Fair and Indo Expo to build brand awareness and attain valuable face to face interactions with the public.

What’s the next step for you in terms of scaling up the company?

Right now we’re focusing our efforts on expanding our distribution network. Sales through our showroom, online store and exposure at the fairs has been great to get started, but we’re ready for volume and we’re seeking hydroponic shops and other industry partners to help get our products in the consumers hands.

If you could give one piece of advice to someone considering joining the cannabis space, what would it be?

Growing cannabis is not the only way to prosper in this industry. Traditional services such as packaging, marketing, accounting, and web design are just a few of the products/services finding a home in the cannabis space. Think about the skills you already have and how they could apply to this exciting new industry.

Thank you, Brandon, for answering our questions about your entrepreneurial journey. If you have more questions for Brandon, or would like to learn more about My Urban Greenhouse, you can reach out through the company’s website at MyUrbanGreenhouse.com.

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Danish MMJ Activist Faces 10 Years in Prison for Selling Cannabis

10/05/2016

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A Danish activist is facing up to 10 years in prison for supplying cannabis to other Danes suffering from serious medical conditions, according to a report from The Local. Currently, there is no medical cannabis program in the Scandinavian nation.

Claus “Moffe” Nielsen has been outspoken about providing the drug to his clients — who he said suffer from such ailments as cancer, fibromyalgia, and sclerosis — and knew that one day he might be arrested for it.

“It should be laboratory technicians, chemists and doctors who do it under controlled conditions,” he said in the report. “I’m no trained expert but I have some principles and I stand by them.”

Nielson pleaded guilty during his initial appearance in court. His wife, who was also charged, denied any guilt. According to the couple’s lawyer, Erbil Kaya, Nielsen “hasn’t hidden” what he does and knows it was illegal, noting that there is a documentary being filmed about him and he has nothing to hide.

“But he hasn’t done it to make money and be a criminal mastermind,” Kaya said. “He has done it in broad daylight and been open and honest about it.”

Danish voters largely support medical cannabis use — with one Gallup poll showing as much as 88 percent support. Last month, the Region of Southern Denmark’s Board of Health agreed to move forward on a plan to seek funding for a medical cannabis program, and Health Minister Sophie Løhde is considering a four-year national trial program. However, the country’s three largest parties – the Social Democrats, Venstre, and the Danish People’s Party — remain opposed to medical marijuana.

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View down an Oakland city street.

Oakland’s Equity Cannabis Licensing Plan Could Scuttle Legal Industry

10/05/2016

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The cannabis licensing plan in Oakland, California — which would see half of the city’s permits go to individuals jailed for marijuana convictions in the last 10 years, or to those who have lived in one of six police beats with high concentrations of marijuana arrests — could go up in smoke because state law permits the denial of those very same individuals, according to a San Francisco Chronicle report.

The equity permit program, passed unanimously by the City Council in May, was designed as a form of reparations for the war on drugs; now, however, four of the eight council members are proposing changing the program and a Modesto-based attorney contends that it’s unconstitutional to begin with.  

Under the plan, equity applicants must own at least a 50 percent stake in the business seeking a city permit, but companies need permits from both the city and the state. State regulators can deny licenses to people who have committed a crime related to the business they are looking to enter.

Laurel Goddard, spokesperson for the Bureau of Medical Cannabis Regulation, said the body would review all applications on a case-by-case basis, but indicated that their rules do permit for denials based on felony convictions related to cannabis.

The lead author of the Medical Marijuana Regulation and Safety Act, Assemblyman Rob Bonta, said he could “definitely see” a permit being issued by the city of Oakland but not by the Cannabis Bureau.

“It’s one thing to be permissive and say, ‘Hey, a felony won’t count against you because we don’t want to carry forward wrongs of the past,’” Bonta said in the report. “It’s another to say, affirmatively, that you’re going to get something because you had a felony conviction.”

It’s that affirmation that could cause legal problems, according to Naresh Channaveerappa, a lawyer that represents canna-businesses.

“Anyone who is harmed by this preferential treatment has legal ground to challenge it,” he said.

Other critics argue that few people will qualify under the equity program, leaving the city with just half of the number of dispensaries that would be permitted without the equity rules.

Terryn Buxton, a cannabis industry consultant and member of the city’s Cannabis Regulation Commission, says that licensing programs in other cities that use past convictions as a “barrier to entry” are unfair, but the rules must be inclusive.

“Whether you’re a street dealer or you run a farm in Humboldt, you shouldn’t be frozen out,” he said.     

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Maryland MMJ Commission Meets with Legislative Black Caucus over Licensing Process

10/05/2016

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Maryland’s Legislative Black Caucus has met privately with members of the Maryland Medical Cannabis Commission, after meeting with Gov. Larry Hogan last month, to discuss their method for awarding the state’s 15 preliminary medical cannabis cultivation and processing licenses, Fox45-WBFF reports.

The meeting is the latest in the saga of Maryland’s medical cannabis program rollout, which is marred by lawsuits and claims of favoritism.

Much like the lawsuit plaintiffs, members of the Black Caucus are claiming the commission broke their own rules in awarding the lucrative licenses.

“The language was in the law that says that the commission shall actively seek racial, ethnic and geographic diversity,” Baltimore City Delegate Cheryl Glenn said in the report. “They didn’t do either.”

In defending the commission’s decision to grant licenses to two companies initially ranked outside of the top 15, Commissioner Buddy Robshaw cited the “geographic diversity” requirement contained in the law. The re-ranking allowed a license to be granted to Holistic Industries, who counts the son-in-law of a powerful Annapolis lobbyist among its equity investors. Holistic also paid the lobbyist, Gerald Evans, $90,000 from November 2015 through April 2016.   

However, when the commission shuffled the rankings, they did not move any minority-owned businesses into the top 15, fueling the claims that the commission failed to meet the racial and ethnic diversity requirements outlined in the law.

“Understanding the fact that you have several lawsuits that have been filed based on your flawed process, and as the Legislative Black Caucus of Maryland, we’ve gone through two hours where everybody collectively expressed their own outrage at different factors,” Glenn said.

After the meeting, Robshaw said the commission is “committed” to working with the legislature to come up with a solution. The Caucus has asked the licensing process be suspended until the situation is remedied.  

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Picture looking across a valley at Pinnacle Mountain near Palmer, Alaska.

Cannabis Ban Defeated in Alaska’s Cultivation Capital

10/05/2016

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An attempt to outlaw commercial cannabis operations in Alaska’s Matanuska-Susitna Borough — the state’s biggest marijuana cultivation hotspot, located north of Anchorage — has been rejected by voters, the Alaska Dispatch News reports.

Higher-than-expected voter turnout helped defeat the measure, opponents said. Proponents said they had expected turnout to range from 9 percent to 13 percent; however, early indictors show 23 percent showed up at the polls. Last year, 14 percent turned out for the regional elections in October.

“We’re celebrating,” Tel White, a Wasilla business owner who created M Thunderfund Inc. to oppose local cannabis bans, said in the report “I’m surprised. I feel a lot of gratitude for all the people that worked on this campaign. I think we’re all really happy about the voter turnout for the Mat-Su Borough.”

The ban would have outlawed cultivation, testing, retail sales, and the production of edibles; while allowing for industrial hemp. The anti-campaign had collected nearly 2,000 signatures to get the initiative on the ballot but did little to no campaigning for their position.

Voters in the region also approved a 5 percent sales tax on retail cannabis sales, providing a 3 percent exemption for cities that already have a cannabis sales tax in place. Voters in the city of Fairbanks and the Fairbanks North Star Borough also approved marijuana taxes in their own elections.    

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Gold coins in stacks next to a line graph.

New Data Shows Double Digit Growth in Legal Cannabis Industry

10/04/2016

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According to a new report from Convergex, dispensaries in Colorado and Washington posted double-digit growth from 2015 and Oregon retail sales in June and July reached $42 million, compared to the $102 million seen all last year.

Colorado dispensary sales reached $458.7 million through July — just $100 million from the total cannabis sales from all of last year, CSP Daily News, a convenience store trade publication, reports, outlining the data.

Washington has already surpassed its 2015 total of $357.6 million in 2016, reporting revenues of $415.8 million from January through August — during which a new sales record of $130 million in sales was reported by the state Liquor and Cannabis Board. However, Washington’s medical program was decimated by the passage of the recreational measure.

Oregon dispensaries began selling recreational cannabis in October, but the state reports the industry is responsible for $33.5 million in taxes from January through July – and the revenues are only expected to climb as more dispensary licenses are awarded in the state; another 26 are expected by Saturday, according to a report from CPA Practice Advisor.

In Colorado, where a sales record was set in July, retailers are facing falling wholesale and retail prices, forcing them to employ discounting tactics — which is partially to blame for the retail falloff.

Ancillary industries, such as hydroponics and security businesses, are also seeing upticks in revenues. In the Practice Advisor report, the owner of an Oregon company specializing in security for canna-businesses says his business has quadrupled since last year.

According to an Arcview Market Research and New Frontier analysis, if the nine states voting on marijuana ballot initiatives pass their proposals, it could be worth $7.8 billion to the national economy by 2020.

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Indoor commercial grow filled with plants in the pre-flowering stage.

Growers’ Opinions of Prop 64 Mixed Month Before Vote

10/04/2016

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Some California growers are opposing Proposition 64, the Adult Use of Marijuana Act, over fears that the measure will cause too much red tape and onerous oversight, with some saying the required regulatory inspection are akin to warrantless searches, according to a report from Reuters.

Hezekiah Allen, director of the California Growers Association and a third-generation cannabis farmer from Northern California, worries that the regulations outlined in the proposal welcomes big business, which could wipe out independent and small farms.

“I don’t want to replace a criminal injustice with an economic injustice,” Allen said in the report.

In a recent poll of the 750 farmers, distributors, and retailers who are members of the association, 31 percent supported the initiative, 31 percent were opposed – and the majority, 38 percent, was undecided. The split vote forced the group to formally take a neutral stance on the measure.

Steve Dodge, CEO of the Humboldt Growers Collective, said that the law “is setting up the state for failure.”

“We are asking farmers to come out from behind the curtain, but not providing the assurances they need,” he said.

Another trade group, the Humboldt Sun Growers Guild, is split over the measure due to concerns that it will make the industry vulnerable to big agriculture and open them to increased taxes and harsher penalties.

Stephen Dillion, a guild member, said the split is largely due to their desire to have illegal growers, who often fail to respect the environment, punished. Such grows reportedly drain creeks for irrigation and pour pesticide-spiked runoff back into the water supply. He said that while the law would revoke the licenses of any bad actors, the environmental regulations outlined in the initiative could cost $20,000 to $100,000 per farm to meet.

Another guild member, Chrystal Ortiz, said she supports AUMA because it erases most prior marijuana convictions and reduces the majority of criminal penalties which primarily affect “black and brown underprivileged people.”

According to our poll aggregate, 61 percent of Californians approve of Prop 64, while 36 percent are opposed.     

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Large, cured cannabis nug lying on its side.

Pro-Legalization Campaigns Release First Ads in New England

10/04/2016

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Pro-legalization television commercials for the campaigns in Massachusetts and Maine hit the airwaves yesterday, according to a report by Reuters. The commercials are a sign that opponents and proponents are gearing up for a contentious run up to the general election in November.

Both ads feature ex-law enforcement officers but take different approaches in their appeal to voters.

In the ad running in Massachusetts, former Boston Police Department Officer and current Merrimack College criminal justice professor Tom Nolan, outlines how the measure takes steps to protect children from accidental ingestion and bars advertising aimed at young populations. He says legalization will be an economic boon to the state and provides funding for education.

“It will tax and regulate marijuana for adults 21-and-over, bringing millions in revenue for schools and law enforcement,” he says in the spot.

The commercial is the start of a $650,000 ad campaign paid for by the Yes on 4 campaign; whose top contributors include the Marijuana Policy Project, New Approach PAC, 4Front Ventures, Happy Valley Ventures, and author Rick Steves.

The 30-second spot in Maine features current state Rep. Mark Dion, who is also a 32-year law enforcement veteran. In the ad, Dion says that legalizing cannabis would free up police resources to investigate violent crimes.

https://www.youtube.com/watch?v=jKI6GFfl1M4

“In Maine there were over 1,700 citations given to adults for marijuana — that takes time — time better spent solving murders, sexual assault cases, finding missing children,” he says. “The system is broken.”

The group behind the ad, The Campaign to Regulate Marijuana Like Alcohol, has budgeted $1 million for their media blitz.

In both states, the campaigns are facing opposition from powerful lawmakers, including Boston Mayor Marty Walsh and Gov. Charlie Baker in Massachusetts, and Gov. Paul LePage in Maine.

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