Australian Biotech Firm Aims to Raise Funds for Human Cannabis Trials

Australian biotech firm Medlab is looking to raise $5.36 million equity to accelerate medical cannabis testing on humans, Business Insider reports. The trials would be focused on pain-management therapies and have been approved by the New South Wales Government.

Sean Hall, managing director, said early results from Medlab’s NanoCelle delivery system, a method using microscopic nanoparticles, have been promising. The company announced a plan to use the delivery method with medicinal cannabis last year.

“We expect this accelerated program and new equipment will result in licensed products to market at least 12 months ahead of our current forecasts,” Hall said in the report.

Medlab’s cannabis therapies would utilize both THC and CBD in their approach. The trials would be performed at a leading Australian oncology research hospital.

The Nanocelle system has been previously tested with two existing pharmaceutical drugs; Atorvastatin (or Lipitor) for patients with high cholesterol, and Insulin for patients with Type II diabetes.

Medlab is traded as a 1-for-9 issue on the Australian Securities Exchange (ASX) and was trading at 30 cents a share when the company announced the cannabis trials project. The shares were up to 42 cents per share by the time the markets closed on Monday, according to the ASX report.

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Imperious Expo in Tacoma This Week, July 20-21

The inaugural Imperious Expo is coming this week to Tacoma, Washington. The conference — a professional celebration of the medical and industrial cannabis industries — is taking place this Wednesday and Thursday, July 20-21,  in the Tacoma Dome Exhibition Hall.

The Imperious Expo is a conference focusing on cannabis medicine, business, and technology. The event will offer all attendees extensive B2B networking opportunities and a deeper understanding of the opportunities of industrial cannabis.

In a phone interview last month, Imperious Expo’s co-founder Eric Norton called the event, “a medical and industrial hemp model [trade show] that will fit into any state as it goes green.”

Eric Brandstad of Forever Flowering is slated for the event’s keynote address. Other speakers include internationally renown cannabis activist Ed Rosenthal, David Muret of Viridian Staffing, Chris Beal of Weedmaps, Aaron Pitsicalis of Purple Haze Properties, and Aaron Pelley of Pelley Law. Members of the Ganjapreneur team will also be attending, so we’ll see you there! Stop on by and pay us a visit at booth 410.

Tickets are still available. One-day passes are available for $99, two-day passes cost $149. Both types of passes grant full access to the exhibition hall and that day’s lineup of expert speakers.

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Understanding Internal Revenue Code Section 280E, Part 1

As of the writing of this piece, certain marijuana-­related activities have been legalized in 25 states and the District of Columbia. However, outdated sections of the tax code — namely Section 280E — continue to threaten the viability of state-legal cannabis businesses.

This is the first installment of a three-part series that will delve into and explain the intricacies of Section 280E, so stay tuned throughout the week for Parts 2 and 3!

What is Section 280E?

Section 280E of the Internal Revenue Code (IRC) restricts businesses from taking deductions for ordinary business expenses if the business has earned income from trafficking Schedule I or Schedule II substances per the Controlled Substances Act (CSA). This section was originally added to the IRC in 1982. However, it has now also been applied to cannabis businesses that operate legally under state law because cannabis is still listed as a Schedule I substance under the CSA.

Section 280E was created by Congress after a 1981 court case in which a convicted cocaine trafficker was disallowed from claiming deductions for ordinary business expenses under federal tax law. However, Section 280E is still being applied to legal cannabis businesses in these states despite the fact the law was mostly intended to target illegal drug dealers.

How Does Section 280E Affect State-Legal Cannabis Businesses?

For businesses in other industries, the ability to deduct ordinary business expenses provides important tax savings. In fact, many business owners actually increase the profitability of their businesses as a result of these business deductions.

However, for state-legal businesses in the cannabis industry, Section 280E means that these businesses often have tax liabilities that are up to 70% of their incomeWithout the ability to claim the deductions that other businesses can claim, Section 280E has created a bleak environment for cannabis companies in the United States.

In the next part, we will discuss how 280E affects cannabis businesses that are legal according to state law when it comes to the computation of federal income taxes.

For more information, continue reading Part 2 of our three-part series about this important tax issue.

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51-Foot Joint Traveling to the DNC in Philadelphia

Marijuana activists are headed to the Democratic National Convention in Philadelphia — and they are bringing a 51-foot inflatable joint with them.

Chris Goldstein of Philly NORML doesn’t consider marching with the joint an act of protest, rather a celebration of all that has changed recently regarding cannabis in America.

“Removing marijuana from the Controlled Substances Act was, three years ago, a very radical position. Now, Bernie Sanders has a bill in the Senate about it, and the [Democratic] party is seriously considering it,” he said in the Philly Voice report. “Are we protesting or are we out there cheering them on?

The inflatable joint made its first appearance in April during a demonstration at the White House, where law enforcement prevented the joint from accessing the lawn. Philly activists plan to march the joint from City Hall to the Wells Fargo Center — the site of the DNC — on July 25. According to the report, the doobie is nearly as long as Philadelphia’s South Broad Street.

“The marijuana movement has to bring some levity to the tense times we’re living in,” Nikki Allan Poe, one of the activists said. “We wanted to do a protest that’s fun.”

Activists said they will return with the joint three days later, at the convention’s close.

During their Platform Committee meeting earlier this month, the drafting party agreed to add marijuana reform language to the party platform. The platform will be voted on by party members at the convention.

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Cannabis Chamber of Commerce Launched in Humboldt County, CA

Cannabusiness enthusiasts in Humboldt County, California have created the county’s first Cannabis Chamber of Commerce, in an effort to make industry networking easier and to connect business owners to other service providers they might need in their ventures.

The group’s June meet-and-greet, their second, drew about 40 people, according to the Redwood Times report — many of which had never attended a business networking event before.

“Our aim is to build a bridge,” Allison Edrington, one of the chamber founders said in the report. “Cannabis growers and entrepreneurs are not the bad guy, we are just as entrepreneurial as someone making necklaces or cider and we benefit from sharing information.”

Southern Humboldt Chamber of Commerce Executive Director called the new group a “necessary collective,” noting that she had attended both of the mixers hosted by the chamber, meeting new business owners she wouldn’t have met otherwise.

Californians will vote on legalizing marijuana for recreational use in November, which could ignite a “green rush” in the state. New and existing cannabusiness owners alike could benefit from this partnership as they will likely face unique challenges, such as regulations and taxations, as they build and grow their businesses.

“It’s heating up and the momentum is growing,” Edrington said. “Cannabis entrepreneurs need a good accountant, they need a good lawyer, they need business acumen like never before.”

Membership in the Humboldt County Cannabis Chamber is $100 for the year. Their next meeting is scheduled for Aug. 11.

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Missouri Governor Signs Bill Allowing Expungement of Most Cannabis Convictions

Missouri Gov. Jay Nixon signed a bill into law last week that will allow the expungement of the majority of the state’s marijuana convictions, according to an official press release from the governor’s office.

According to the release, Senate Bill 588 “will make it easier for former offenders who have completed their sentences, paid restitution, and become law-abiding citizens to petition the court to close their criminal records from the public.” SB 588 will allow almost all cannabis-related convictions to be expunged, provided that individuals can still prove they have not been charged with other misdemeanors or felony charges since the completion of their probation period (or sentence).

“Missourians who have paid their debt to society and become law-abiding citizens deserve a chance to get a job and support their families,” said Gov. Nixon. “This bill represents a reasonable, balanced approach and I’m pleased to sign it into law today.”

In this case, expungement is not absolute and permanent — instead, the records will be pulled from public view, but will remain available to law enforcement and employers who are entitled to such information under state or federal law.

Non-violent marijuana felonies will require seven years of good behavior to be removed. Misdemeanor marijuana offenses will need only three years.

A total of seven bills were signed last week by Gov. Nixon, the majority of which focused on updating and streamlining Missouri’s judicial processes.

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Cannabis-Friendly Illinois Bank Targeted by Feds

The Des Plaines, Illinois-based Millennium Bank entered into a consent order with the Federal Deposit Insurance Corp and the state’s Division of Banking last March due to the bank’s involvement with cannabis companies, according to an American Banker report.

The order forces the community bank to change its programs in order to comply with the Bank Secrecy Act, including monitoring and reporting suspicious activity and developing a written Customer Due Diligence Program within 90 days.

Although the order never mentions marijuana, a source familiar with the matter confirmed to the American Banker it was Millennium’s dealings with cannabusinesses that lead to the order.

The agreement allows the bank to neither admit nor deny the allegations.

“This sets a challenging precedent for banks currently, or considering, serving marijuana because there is no template that they can follow to be assured they won’t get into trouble,” Steven Kemmerling, the head of a company that sells customer-screening services to banks, said in the report.

Illinois legalized medical cannabis in January 2014. The following month, the Financial Crimes Enforcement Network (FinCEN) issued guidance to financial institutions interested in serving the legal cannabis sector. However, according to FinCEN, just 301 banks and credit unions have financial relationships with the marijuana industry — representing less than 3 percent of financial institutions nationwide.

The Federal Reserve Board, FDIC, and Office of the Comptroller of Currency all use the FinCEN guidance in their bank examinations. The guidance advises banks to verify where the businesses are licensed, understand its normal activity, and monitor the account for suspicious activity. They are required to report any red flags to FinCEN.

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Dormant California Prison Sold to Medical Cannabis Extraction Company for $4.1 Million

The Coalinga City Council voted to allow medical cannabis across the city last week, as well as approved the sale of the city’s dormant prison complex to Ocean Grown Extracts, a medical cannabis company. Ocean Grown Extracts will buy the former prison for $4.1 million, the Fresno Bee reports, and the company plans to turn the complex into a medical cannabis oil extraction facility.

The new cannabis ordinances required a four-fifths majority to advance. The proposal passed through the Coalinga City Council with a 4-1 vote on July 7.

The Claremont Custody Center, which was closed down unexpectedly in 2011, was once contracted with the state of California to house over 500 state inmates. The prison’s sale will bring the city of Coalinga — which, according to City Manager Marissa Trejo, is between $3.3 million and $3.8 million in debt — immediately into the black.

“We’re thrilled to be able to offer 100 jobs and make safe medicine available for patients,” said Ocean Grown Extracts co-owner Casey Dalton. “We appreciate Coalinga taking a chance not only on us, but on the industry.”

Dalton said she hopes the extraction plant will be up and running within six months.

Coalinga Mayor Pro Tem Patrick Keough said after the vote, “It’s like the Grateful Dead said: ‘What a long, strange trip it’s been.'”

Mayor Keough believes that the hours spent educating the community about medical cannabis played a big role in the city’s eventual embracing of marijuana reform. “We listened to the citizens and created a package that was reflective of our population,” he said.

Though it followed six months of heated debates, when Keough called for public comment just prior to the final vote, the packed-to-capacity City Council chambers went reportedly silent.

“You can never do anything that satisfies everyone,” said Keough. “But we were pretty darn close to doing that.”

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Graded Cannabis Hits Shelves in Colorado

The Trichrome Institute is “forcing the industry to grow better weed,” according to President Max Montrose, with their Trichrome Assurance Grade (TAG) system, which analyzes cannabis for potentially unhealthy and dangerous compounds such as fungus, mites and spider eggs.

The Colorado-based company’s testing is far more in depth than required by the state. They look at each strain through a microscope, grading the bud based on factors including look and smell. Their level-three interpeners apply mathematical values to the visual points and inhale the sample in a “micropuff.”

“We’re the only lab in the state that consumes cannabis as part of our testing process,” Montrose said in a Westword report. “We don’t consume it to grade if we get high or not; we don’t care about that. We look for burnability, because if your bud starts crackling, it’s sprayed. And if it’s not flushed, if the grower didn’t extract the salted minerals out of the plant before he cut it down, you’re smoking salt. That’s why when you smoke and it’s hot and burns in your throat, that’s not good.”

Three dispensary groups are currently selling TAG-certified cannabis strains: B-Good, Northern Lights and Silver Stem. However, the company has worked with 30 different dispensaries, analyzing over 180 different strains. Dispensaries who participate in the TAG program will have a “Responsible Vendor” sticker for their shop door, and their graded strains will be labeled.

Montrose suggests TAG-certified cannabis and dispensaries will be identified by an app as the system becomes more widely used.

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Maryland MMJ Licensing Expected Within Weeks

Maryland officials may announce the winners of the state’s 15 medical cannabis growing licenses and unveil the first wave of marijuana processors as early as August 5, state regulators announced this week. Dispensary licenses, of which there will be a maximum of 94, will be awarded later.

The medical marijuana licensing process in Maryland has already faced some serious delays: licenses were originally expected in February of this year, and applications have been in review since December 2015.

Paul Davies, a physician and chairman of the Medical Cannabis Commission, told the Baltimore Sun that officials would publicly review the top submissions for cannabis growing and processing applications in the coming weeks — August 5 at the soonest, he said, though he declined to set a date.

“It’s going to be an exciting few weeks,” Davies said.

Maryland, which will issue a limited number of grower and dispensary licenses, has set some of the highest medical cannabis licensing fees in the country. Industry experts predict that — between the ability for dentists and other perhaps unexpected medical professionals to recommend medical cannabis, the state’s emphasis on tightly controlled supply, and the program’s steep entry costs — Maryland will present an interesting medical cannabis market.

The state’s new executive director of the Medical Cannabis Commission, Patrick Jameson, said that he was disappointed with the cannabis licensing process so far. He said things were taking “too long” and described the process as both “too cumbersome” and “too expensive” — comments that reportedly disappointed other members of the commission. Jameson joined the commission in April.

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Marijuana Tax for Homeless Services to Appear On L.A.’s November Ballot

Los Angeles County’s Board of Supervisors approved a ballot measure last Tuesday that would levy a 10 percent tax on the county’s cannabis industry in an effort to raise additional funds for homeless housing and health services, the Los Angeles Times reports.

Businesses that produce and distribute marijuana, and “related products,” would be subject to the tax on their gross receipts. The tax would apply to both medical and recreational cannabis operations, if the latter is legalized by California voters in November.

If approved by a two-thirds majority of voters, the plan could raise up to $130 million a year, according to county analysts. The money would be used to fund mental health and substance abuse treatment, emergency housing, rental subsidies and other services to reduce the county’s homeless — of which the Housing Services Authority estimates there are about 47,000 in L.A. County.

The board initially proposed a “millionaire’s tax,” property tax, and quarter-cent sales tax to raise the funds, but they ultimately agreed on the marijuana tax. Some officials are concerned that too many taxes on the legal cannabis market will push people into the informal market.

Supervisor Don Knabe, who opposes legalization, voted for the tax because if the voters approve the legalization proposition, “we ought to get a piece of the action, because it will help those that we need to help.”

L.A. County officials have already budgeted $100 million this year for homeless housing and services.

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Blazin Bottles: Blaze with Discretion and for a Cause

Colorado Springs, ColoradoBlazin Bottles is a revolutionary product that was just introduced to the market earlier this year. Blazin Bottles is a veteran-owned company based out of Colorado that offers classy and discreet glass smoking accessories in a variety of styles. These are not your ordinary pipes, though. Blazin Bottles are unique steamrollers designed to give you an incredible smoking experience at an affordable price.

When not in use, Blazin Bottles can be discreetly displayed anywhere within your home and no one will be wise to the fact that they are used for cannabis consumption. This offers a level of discretion for both medical marijuana patients who may not want pipes and bongs on display in their house as well as for those individuals living in prohibition states where a pipe could land you in jail.

According to Blazin Bottles, their one goal is to provide their users with “an affordable, easy to clean, unique pipe, that can be hidden in plain sight.”

Blazin Bottle steamrollers are available in a variety of different styles but they are all designed to provide the same elevated smoking experience. Their patent-pending unique design offers a carburetor that is much smaller than those found on many steamrollers today. This unique design provides a smoother hit due to the slow intake of oxygen to the steamroller chamber during use. Each product comes with a Blazin Bottle bag for storage, two different sized bowls, a small airtight keychain container, a vinyl Blazin Bottles sticker and a wax sealed welcome letter with an outline of how to care for your Blazin Bottle.

Blazing Bottles is also devoted to giving back through charitable donations and other opportunities. Their Blazin for a Cause program helps to benefit many different organizations centered around medical conditions that can be treated with cannabis such as PTSD, Epilepsy, and Cancer. For every Blazin Bottle Shortstack steamroller purchased, a portion of the proceeds will be donated to an organization in the Blazin for a Cause program. Blazin Bottles also offers an ambassador program which is, in essence, a street team that helps to promote the company’s mission and products to the world. Ambassadors earn points for every Blazin Bottle they help to sell that can be redeemed for prizes ranging from gift cards and Blazin Bottles to vacations and even cars! Stay tuned for more from Blazin Bottles as they will soon be introducing a program where you can send in any glass or crystal bottle you choose and have it turned into a custom Blazin Bottle!

About Blazin Bottles

Blazin Bottles began as an idea of Taylor Wiederkehr and his father Wyatt who is a Marine Corps Veteran. The idea of Blazin Bottles came to be after Taylor and his father purchased a steamroller and found many flaws within it. They started to brainstorm ideas for turning a regular glass bottle into a steamroller in January of 2016. After several different prototypes including six bowl variations and 12 carb sizes, Blazin Bottles officially launched their company on April 15th, 2016 just 3 months later.

Contact Blazin Bottles

Name: Taylor Wiederkehr

Email: blazinbottles@gmail.com

Website: http://blazinbottles.com/

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NFL football displayed on turf.

Ricky Williams Expects Cannabis Profits to Exceed NFL Earnings Lost to Failed Drug Tests

Former NFL running back Ricky Williams says he’s going to make more money through cannabis business investments than the total NFL profits he was denied after failing several drug tests more than a decade ago.

In a recent interview with Sports Illustrated, Williams said that in failing four drug tests between 2002 and 2006 for cannabis use, he estimates that he lost somewhere between $5 and $10 million in player salary and endorsements.

After his retirement from the NFL, Williams spent some time soul searching and, eventually, confronted the reality of cannabis normalization. “The way the industry is growing, it feels newer, and it feels fresh,” Williams said.

After some years spent battling the ‘stoner’ stereotype he had been branded with in his departure from the NFL, Williams learned that pushing back only perpetuated the label: so he looked for ways to embrace his cannabis identity.

Today, Williams is co-founder of the San Francisco-based Power Plant Fitness and Wellness gym, a place where cannabis-inclined athletes will be allowed to consume marijuana while working out. Williams will be managing the gym, which has already announced its grand opening for this November. Power Plant will also offer “athletic edibles,” designed to encourage both “pre-workout focus and post-workout recovery.”

Williams expects the venture will eventually dwarf the NFL earnings he forfeited over failed drug tests. “That money can make what I lost seem tiny, like pennies,” he said.

Also in the interview, Williams said that he believes 60-70% of NFL players smoke cannabis, and that some of the coaches likely do, as well.

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Medical Cannabis States See Medicare Savings, Less Prescribed Drugs

A study published in the scientific journal Health Affairs found that states with medical marijuana laws see a reduction in prescription drug use and lower Medicare spending. Researchers used data on all prescriptions filled by Medicare Part D from 2010 to 2013, concluding “that the use of prescription drugs for which marijuana could serve as a clinical alternative fell significantly, once a medical marijuana law was implemented.”

States with a medical cannabis program saw an estimated $165.3 million-per-year overall reduction in Medicare program and enrollee spending in 2013, according to University of Georgia researchers. They estimated that if cannabis therapies were available nationwide, prescription drug savings would total about $468 million per year. Medicare Part D covers the cost of prescriptions for enrollees.

The study focused on patients’ intake and spending on prescription drugs covered by Medicare Part D that are also commonly treated with cannabis in states where it is legal. Common conditions included: anxiety, depression, glaucoma, nausea, chronic pain, psychosis, seizures, sleep disorders, and spasticity. Prescription drug use declined “significantly” in regard to seven of those conditions, the study found.

Authors concluded that their study adds to the “growing body of evidence suggesting that the Schedule I status of marijuana is outdated.”

“We wouldn’t say that saving money is the reason to adopt [medical cannabis]. But it should be part of the discussion,” W. David Bradford, one of the study’s authors, said in an NPR report. “We think it’s pretty good indirect evidence that people are using this as medication.”

Half of the U.S. states and Washington D.C. have medical marijuana programs. Florida and Missouri are expected to vote on medical cannabis measures this November.

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GW Pharmaceuticals Hopes to Raise $252 Million in Public Offering

Following the successful trials of its new cannabis-based medication, British drug manufacturer GW Pharmaceuticals announced it will raise $252 million through the issuing of 2.8 million shares on the Nasdaq in preparation for bringing its drug to market.

According to a Reuters report, shares in GW Pharmaceuticals have been on the rise since the experimental drug Epidiolex sported its first positive test results. This year, the company has notched up gains of more than 50 percent, despite some early declines. Epidiolex is a drug made to reduce seizures in patients suffering from rare forms of epilepsy, Lennox-Gastaut syndrome, and Dravet syndrome.

GW Pharmaceuticals was founded in 1998 to be a pharmaceutical researcher and manufacturer dedicated to bringing the benefits of cannabis therapy into the modern medical system. Currently, the company is listed on both the Nasdaq and AIM, a market on the London Stock Exchange. In 2010, GW released its first and most successful cannabis-derived medication, Sativex, which is now approved for use in 27 countries.

GW’s public offering is expected to close sometime around July 18, 2016, Reuters reports.

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Poll: 52.5% of Arizona Voters Oppose Legalization

Activists behind the Campaign to Regulate Marijuana Like Alcohol will have their work cut out for them in Arizona, KTAR News reports.

According to data recently published by O.H. Predictive Insights, 52.5% of likely Arizona voters would reject the state’s initiative to legalize recreational cannabis if the vote were held today. Only 39% of likely voters said they would vote to approve the initiative.

“The ‘no’ vote — and it’s not much of a surprise — is because of rural Arizona. They tend to be more conservative,” Mike Noble, managing partner and head pollster for O.H. Predictive Insights, told KTAR News. “The second-strongest was Maricopa county, where the ‘no’ vote was 54 percent. Pima County was at the low end at 45 percent against.” Noble said

Noble said another reason the initiative is likely failing is because older voters, who tend to be less supportive of legalization efforts, are also more likely to actually cast their votes.

The Campaign to Regulate Marijuana Like Alcohol would legalize the adult possession and home cultivation of recreational cannabis. The initiative would also establish a regulatory system for marijuana’s retail distribution, including a 15% statewide excise tax that would go towards education and healthcare programs. The campaign submitted more than 250,000 petition signatures on June 30 — significantly more than the required amount of 150,642.

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Cannabis branches hanging out to cure after harvest season.

California’s Prop 64 Receives Another $2 Million in Donations

California’s Proposition 64 campaign received $2 million in new donations this week: Sean Parker, Napster co-founder and Facebook’s first president, donated another $1.25 million; and the New Approach PAC infused another $750,000 into the campaign to legalize recreational cannabis in the state, the OC Register reports.

Parker has now donated a total of $2.25 million and the PAC — a legacy of deceased legalization activist and Progressive Insurance Chairman Peter Lewis — has contributed a total of $1.5 million. The campaign, backing the Adult Use of Marijuana Act, now boasts a $5.5 million war chest.

The Coalition for Responsible Drug Policies, a group opposing the campaign, is also actively raising funds in hopes to defeat Prop 64. The coalition, backed by the Public Safety Institute, was recently given $10,000 by the State Sheriffs’ Association, bringing their war chest total to $131,000. An anti-legalization group, Smart Approaches to Marijuana, has joined law enforcement groups, the Teamsters, and a state hospital association in trying to defeat the measure, which will appear on ballots in November.

According to a May 25 poll by the Public Policy Institute of California, 60 percent of likely voters support legalization of cannabis for recreational use. Several lawmakers have expressed support for Prop 64 this week, including Assemblyman Reggie Jones-Sawyer and Assembly Speaker Emeritus Toni Atkins, both Democrats.

Hyatt Hotel heir Nicholas Pritzker; the advocacy arm of the Drug Policy Alliance, Drug Policy Action; and Weedmaps, a website that connects patients with dispensaries, have also backed the measure.        

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Washington Rec. Sales Have Surpassed $1 Billion

Washington’s recreational cannabis industry has sold more than $1 billion worth of cannabis since the legal market’s launch in 2014, meaning the state has raked in just about $250 million in cannabis excise taxes, Jake Ellison reports for the Seattle Post-Intelligencer.

The state’s highest monthly sales record was last month (June) at $86.7 million, nearly double what was sold during June 2015. The month-by-month increase in revenues has been a general theme since July 2014 and there has been little indication that things might change.

Washington and Colorado, the legalization pioneers, voted to legalize recreational cannabis in 2012. Oregon, Alaska, and Washington D.C. voted to legalize in 2014. This November, a handful of other states — including California, Nevada, Arizona, Massachusetts, and Maine — will put the legalization question before voters. If California goes recreational this fall, Ellison reports, “it will quickly dwarf the combined markets of Washington, Colorado, Oregon and Alaska.”

As of July 1, medical cannabis sales in Washington are now being funneled through the state’s recreational system — though patients who have registered with a state-managed patient registrar are still granted tax-free access to recreational cannabis products and do not face the same possession limitations as a recreational consumer.

Medical cannabis has been legalized in 25 of the 50 U.S. states (and in Guam and Washington D.C.).

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New Cannabis Worker Permits Unveiled in Oregon

A new Oregon program will require all workers in the recreational cannabis industry — including seasonal and part-time employees — to have a cannabis worker permit in order to maintain their spot in the industry. The Oregon Liquor Control Commission (OLCC) launched its online permit application system for the permits last week, according to The Bulletin.

Applicants must be at least 21 years old and will be tested on their knowledge of Oregon cannabis law, the safe handling of marijuana products, proper ID checks, and on recognizing the visible signs of cannabis intoxication.

Cannabis worker applicants will also be required to pass criminal background checks. Any sort of felony conviction from the last three years regarding controlled substances, violent crime, or a crime of dishonesty or deception (such as fraud, theft, or forgery) will automatically disqualify an individual’s application.

Applicants will be charged $100 for their permit, which will remain valid for five years. The OLCC plans to begin issuing permits starting September 1.

The permit is required for all employees working under Oregon’s licensed cannabis producers, processors, wholesalers, and retailers. Cannabis lab employees and researchers may not need the permit.

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‘Progressive’ Democratic Party Platform Includes Marijuana Reform

Democrats endorsed a “reasoned pathway” to future marijuana legalization during the party’s national convention full Platform Committee meeting last Saturday in Orlando, Florida, the Washington Post reports.

Supporters and delegates of Vermont Sen. Bernie Sanders’ presidential run were reportedly behind the push to add the language to the party platform. Tennessee delegate David King, a lawyer, backed an amendment removing marijuana from the Controlled Substances Act. King said marijuana’s inclusion in the act was to hurt “hippies and blacks” during the drug policy “craze” of President Richard Nixon, but the party settled on a more measured approach.

The drafting party agreed on language calling for “policies that will allow more research on marijuana, as well as reforming our laws to allow legal marijuana businesses to exist without uncertainty.”

Some members were concerned that the language was too strong, and undermined state-by-state efforts. The amendment, however, was approved by a vote of 81 to 80; there were 187 voting committee members.

In addition to the marijuana amendment, the Platform Committee also came together on an amendment that calls for the demilitarization of police, encouraging better community relations and de-escalation training.

The platform is revered as the most “progressive” in the party’s history by both the Sanders camp and Hilary Clinton’s supporters. Clinton’s camp is hoping the progressive nature of the plan is enough to woo Sanders delegates and voters to vote for her in November. The platform is expected to be officially unveiled during the Democratic National Convention in Philadelphia during the last week of July.

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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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