Industrial Hemp Takes Root in Kentucky and Colorado

8/24/2014

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Amid the growing popularity of marijuana law reform, it is sometimes easy to forget about the other important cannabis revolution: the revitalization of a forgotten hemp industry.

Recent pioneers of industrial hemp in the U.S. were granted licenses to grow pilot hemp crops in Kentucky, Colorado, and Vermont this year following the passage of the Farm Bill, which loosened federal restrictions on growing the non-psychoactive plant. There are twelve other states who have also loosened restrictions on hemp production, but did not issue licenses for experimental hemp crops this year.

In Kentucky, where American industrial hemp holds its most historical significance, hemp plantings statewide covered 15 acres of farmland this summer. In Colorado, where interest was also running high, there were 56 registrations for commercial hemp production and 76 more for research purposes. In Vermont, there were 12 registrations to grow hemp, — how many farms actually carried out their pilot hemp programs, however, is unknown by officials.

In Kentucky and Colorado, however, industrial hemp is coming along quite nicely.

“It seems to be fairly easy to grow,” said Bruce Pratt, professor of agriculture at Eastern Kentucky University. “The plants got established so quickly that they shaded out the weeds.”

Adam Watson is the Kentucky Agriculture Department’s hemp program director. By his description, the program carries a lot of potential:

“We’ve got an excellent climate for it, excellent soils for it. It’s a good fit for Kentucky producers. The ultimate question is going to come down to economics. Is there a market and can Kentucky capture that?”

Meanwhile, one ganjapreneur in Colorado is looking capitalize on her hemp field before its even finished growing. Veronica Carpio, who owns Colorado Hemp Coffee, has been offering periodic tours this summer of her outdoor and flowering hemp field. Her crop proved its natural resilience to Colorado’s high and dry climate this year, persevering heartily through both summer heat and springtime hail storms.

The biggest difficulties posed to the industrial hemp industry so far have been legal issues: namely, the Drug Enforcement Administration has continued attempting to block the importation of hemp seeds, despite their legality under the new Farm Bill. In one event, the DEA was sued by the Kentucky Agriculture Department, who requested that the federal agency return the state’s impounded hemp seeds in time for the favorable planting season. The seeds were eventually returned, but there remains a distinct dichotomy of ideals between the DEA and industrial hemp.

Commercial hemp is popular for offering eco-friendly alternatives for plastics and papers. Additionally, the revitalization of the hemp industry could help reduce deforestation, offer environmentally-conscious clothing alternatives (cotton is a water-guzzling crop), and stimulate the clean energy market via hemp biodiesel and ethanol fuel.

In 2013, a report by the Congressional Research Service said that hemp imports to the U.S. in 2011 cost $11.5 million — a paltry sum compared to other imported crops. Nonetheless, if the infrastructure for manufacturing and processing the plant is realized sooner rather than later, the U.S. stands to benefit immensely from this forgotten industry’s revival.

Sources:

http://www.foxbusiness.com/markets/2014/08/16/homecoming-for-hemp-rebirth-sprouting-in-kentucky-research-plots/

http://www.thecannabist.co/2014/08/22/colorado-hemp-field-spotlights-industry-struggles-aspirations/18407/

Photo Credit: Miikka

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So You Want To Grow Some Ganja…

8/22/2014

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The cannabis trade is a budding local industry in the U.S. these days. With recreational shops in Colorado and Washington up and (mostly) running, caregivers across the country are creating THC-, CBD-, and hemp-infused products for local medical markets.

Marijuana is the new hot penny stock trade, and both regions are creating strands like Napa Valley does wine, spurring crafty ganjapreneurs from all over the world to flock to these meccas and attempt to make money off the legal cannabis trade.

Growing marijuana is either an art or a science, depending on your outlook, but the legal business on the other side of the insulation in your grow room walls boils down to a few basics. Here’s what you need to know about the Colorado cannabis game.

1. Strand Quality

Seed pricing ranges vastly from “got lucky in a bud you bought” to $5 upwards of $20-30 for a seed. You can purchase seedlings for another $10-50. Your initial investment in seeds, however is quite low for the return..

The cannabis seed market isn’t federally regulated in the way that, say, the GMO-seed trade is. Big Tobacco, Big Alcohol, and Big Business have yet to do much more than keep their ears to the streets of Colorado and Washington. Banks will eventually lend to you, but you can’t file a Federal trademark or patent on an illegal seed yet.

2. Your Product’s Market

The good news is it’s still illegal to transport any forms of marijuana across state borders, in fact you can still be arrested for marijuana possession if you’re not careful. This means local or statewide distribution channels are all you need. This is how ganjapreneurs can compete with Wal-Mart and Amazon’s distribution systems without resorting to Herbalife pyramid schemes.

High-grade, top shelf buds, raw flowers are still the best selling products for both caregivers and dispensaries. For bottom shelf, your best bet, outside of operating on the Western slope, is to extract the THC to produce kief, oil, and/or hash.

These materials are used to fill vape cartridges, which sell upwards of $40 per 150 mg in Glenwoods Springs to even $50 and higher in other touristy areas, such as Aspen or Veil. You can also create edibles or, with proper equipment, shatter, budder, and other forms used for dabs.

3. There’s Oil in Them Hills

Regardless of your cannabis quality, you’ll want to save your trimmings. Every crystal on our plant is a speck of gold you don’t want to waste. On average, every ounce of trimmings creates one gram of oil, which can sell anywhere from $30 to $100 in bulk sales in Denver, Boulder, and other metropolitan areas east of the Rockies, and upwards of $300 per gram when packaged into prefilled cartridges for sale in tourist areas along I-70 to the west.

As a general rule, medical patients receive the best product and prices. Recreational users are charged much larger margins than medicinal users, and out-of-state recreational users pay the most, while also having purchases capped at a quarter ounce (or 250 mg of concentrate).

4. To Extract, or Not to Extract

Raw trimmings sell for the lowest prices (starting at $10/oz) because it can’t be sold to the consumer. The extraction method can be either too time-consuming, costly, or dangerous.

Many homemade and low-end commercial kits use butane to extract the THC. Butane is highly flammable, and explosion or fire can happen quite easily. Because of this, the process has been made illegal.

If you can afford the up-front payment of $100,000-250,000, you can get a CO2 extractor, which is much safer, and operates at a very minimal cost. Analysts across Colorado are reporting a variety of growers willing to operate at a loss in the beginning to purchase these machines, knowing they’re essentially building THC- and CBD-factories.

Regardless of what you do with your product you need to move it. The real ganja game isn’t like what you saw on “Weeds.” You need to start honing your craft and perfecting the tiniest of details. You’re swimming with the sharks now.

Brian Penny is a former Business Analyst at Bank of America turned whistleblower, freelance consultant, and troll. He’s a frequent contributor to The Street, Huffington Post, Cannabis Now, and Fast Company.

Photo Credit: Coleen Whitfield

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Brief: Legalization in Oregon Offers Only Economic Benefits

8/21/2014

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The potential legalization and subsequent regulation of recreational marijuana in Oregon is beginning to look like — from a purely economic viewpoint — it would be a “net win” across the board for the state.

“Marijuana is already a serious economic force in Oregon,” says Seth Crawford, Oregon State University’s resident expert on marijuana policies and market structure. “When you consider the proposed excise tax and additional revenue from income taxes, it could become a sizable income stream for the state.” As per Crawford’s estimations, legalization could net Oregon anywhere from $35 million to $105 million in new tax revenue per year; legalization would also save the state money in police and court expenses.

Voters will be deciding in November whether or not Measure 91 — which legalizes for adults aged 21 and older the use of marijuana, the possession of up to eight ounces of dried cannabis, and the personal cultivation of no more than four cannabis plants — will pass. It will fall to the Oregon Liquor Control Commission (OLCC) to decide how exactly regulations will be implemented.

Meanwhile, the campaigning efforts behind Measure 91 have approached record amounts, with approximately $2.3 million recently spent on a television advertising campaign — that’s almost the entire budget used passing Amendment 64 in Colorado in 2012. Polls in Oregon continue to suggest majority approval ratings on Measure 91.

Sources:

http://oregonstate.edu/ua/ncs/archives/2014/aug/osu-sociologist-policy-will-determine-economic-impact-legal-marijuana

http://mmjbusinessdaily.com/ad-campaigns-heating-up-in-key-cannabis-battleground-states-ahead-of-elections/

Photo Credit: Loren Kerns

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Brief: Bedrocan, Canadian Cannabis-Growing Company, Going Public on Monday

8/21/2014

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A Canadian cannabis-growing company, Bedrocan Cannabis Corp, is set to go public on Monday, according to two sources close to the business. Bedrocan will serve as Canada’s first alternative to Tweed Marijuana Inc, which began offering its public shares in February this year. Bedrocan will be listing under “BED” on the Toronto Venture Exchange.

According to Chief Executive Marc Wayne, Bedrocan was most recently valued at around $57 million. “We will be ready to start cultivating by the end of the year, and we will have the product ready for sale by early second quarter of next year,” he said on Wednesday.

This development in the Canadian medical marijuana market is evidence of that market’s steady maturation. The Canadian government estimates that Canada’s MMJ market is currently valued at $1.3 billion ($1.19 billion USD), to be realized over the next 10 years. Drawn by the sheer monetary force of the industry, venture capitalists and other investors from both Canada and the United States have been eyeing the industry for months.

Two other licensed producers in Canada — OrganiGram Inc. and Mettrum Inc. — are expected to go public in the coming weeks.

Sources:

http://www.bnn.ca/News/2014/8/20/Marijuana-grower-Bedrocan-set-to-go-public-Monday.aspx

Photo Credit: Dank Depot

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Colorado’s Cannabis-Infused Edibles Manufacturers Expanding to Satisfy Demand

8/20/2014

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Since sales began in Colorado on January 1, marijuana-infused edible products have taken the recreational pot market by storm. Currently, the rise in demand has far outpaced most of the projections from the start of this year. In fact, demand has risen so steadily that some edibles manufacturing companies, in their effort to grow with the industry, have been expanding to larger and more sophisticated facilities.

“A lot of people tell me that they’ve smoked weed before, so now they’re looking for something new and different,” said Jamie Perino, co-owner of Euflora, a Denver retail pot shop. Perino’s sales are split about 50/50 between edible and smokable products, and the store puts in new orders for edible products on a near-weekly basis — new shipments of flower and other smokable lines are only necessary every month-and-a-half, Perino told The Denver Post.

Tripp Keber, CEO of Denver’s Dixie Elixirs (Colorado’s largest manufacturer of edible products), estimates that edibles make up about 38% of total sales in Colorado’s dispensaries. Currently providing 450 of Colorado’s 593 medical marijuana dispensaries with cannabis-infused products, Dixie Elixirs is known for a variety of edibles, including cannabis-infused beverages, chocolates, and other treats.

The medibles giant also recently upgraded from a location in Stapleton to a new industrial building in Montbello, which has four times more space than their previous facilities. The company has dedicated about half of their new 47,000-square-foot industrial location to marijuana cultivation. Because bank loans are still largely unavailable to businesses in the cannabis industry, however, the company had to spend $5 million in cash to prepare the new location.

Another edibles production company, Medically Correct, has plans to upgrade from a 1,200-square-foot location to a nearby 8,000-square-foot building. The new space comes with enough space to expand production facilities for the company’s popular line of Incredibles-brand medicated chocolates in addition to, for the first time, sufficient space to actually start growing their own marijuana. Despite the upgrade, however, Medically Correct is still reportedly overwhelmed with the market’s ever-growing demand. As co-owner Bob Eschino explains, “We’re bursting at the seams. Now we think we’ve already outgrown this (new space) before we’ve even started.”  There are other products we want to do but can’t come out with because we can’t even keep up with demand for chocolate.”

In addition to issues with satisfying the ever-increasing demand, edible manufacturers in Colorado must soon adjust their practices to honor the state’s updated industry regulations on edible products, which will take effect at the start of November. As per the new rules, cannabis-infused products can only be sold in individual servings containing no more than 10 milligrams of THC or in larger packages that can be easily broken down into the 10mg serving size. Additionally, single-serving products must be delivered to stores already in child-resistant packaging (currently, that responsibility falls to the retail stores actually selling the products to consumers).

Manufacturers have claimed that these new regulations will slow production rates, causing an even greater imbalance between supply and demand in the cannabis-infused edibles market.

Sources:

http://www.denverpost.com/marijuana/ci_26347021?source=rss

http://www.denverpost.com/ci_20746367/denver-company-wants-take-medical-pot-elixirs-national

Photo Credit: Kathleen Franklin

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Brief: 66% of Americans Think Private Consumption of Marijuana Should Be Legal

8/19/2014

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Two thirds of the American adult population (66%) believes that adults should be legally allowed to consume cannabis in the privacy of their own home, according to a recent Huffington Post/YouGov survey.

While a heavy majority of Democrats and Independents declared themselves in support, only 49% of the overall U.S. population supports wide-sweeping legalization — 13%, however, proclaimed themselves uncertain, meaning that there are more citizens in support of legalization than not (38% reported themselves opposed).

Additionally, 55% of those surveyed at least somewhat supported passing laws in their own state that would legalize recreational marijuana use for adults aged 21+, meanwhile taxing marijuana sales and keeping it illegal to transport said marijuana out of state.

This year, we will see voters in Oregon, Alaska, and Washington D.C. decide on recreational marijuana in their respective states/district. Also, 14 different cities in Michigan will hold their own local votes on the subject this year.

Currently, more than half the states in the U.S. have passed some sort of marijuana law reform (medical, recreational, or otherwise), and the latest voter trends seem to indicate only greener horizons in the near future.

Sources:

https://today.yougov.com/news/2014/07/30/poll-results-marijuana/

http://www.theweedblog.com/america-will-see-17-votes-for-marijuana-legalization-in-2014/

Photo Credit: Will Fisher

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Is Amazon Eyeing the Cannabis Industry With its New Credit Card Processing System?

8/13/2014

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Amazon’s recently-announced mobile credit card payments service, Amazon Local Register, is the massive corporation’s latest attempt at raising revenues — and, as a business based in Washington state (therefore sharing an economy directly with one of the country’s only legal cannabis markets), the potential for such a system could prove quite lucrative.

Since legal marijuana sales began this year in Colorado and then Washington, the cannabis industry has repeatedly struggled to find ways to circumvent the cash economy that cannabusinesses have been forced into by federal law. Though the federal government has issued guidelines to banking professionals on how to legally offer their services to these federally illegal businesses, recent reports suggest that only 105 banks and credit unions across the country are actually doing business with marijuana retailers — and, for the most part, such banking relationships are still kept a closely-guarded trade secret. As a result, the cannabis industry’s cash-only economy has largely persisted.

Soon, however, if the recent federal push for an end to the cash-only marijuana economy pans out, ganjapreneurs in Washington might be offered a new option: the credit card processing system that is Amazon Local Register.

Amazon’s new product is clearly designed to compete with Square, the company who pioneered the mobile credit card processing business model. Square’s mobile card-swiping hardware has been widely used for delivery services, farmers’ markets, food trucks, and local cafes across North America in recent years. In fact, if you’ve visited Starbucks recently, chances are you also encountered the unique credit card processing system.

According to their website, Square’s initial business model was based on one simple belief: “that everyone should be able to accept credit cards.” However, this idealism isn’t completely represented in the company’s policies regarding legal marijuana businesses. According to one Square spokesperson, “It’s a violation of our terms of service to accept payments with Square for any illegal goods or activities, whether prohibited by federal or state law.”

Amazon, with all the capital and resources of its fiscal empire, could (in theory) finally make that mission statement apply to the legal cannabis industry, at least in Washington, where Amazon’s headquarters are located.

Amazon Local Register will be offering a lot of additional incentives for businesses to choose their product over Square’s: they will charge only 1.75% of transactions made by businesses who sign up by October, after which the charge will be 2.5% — Square, on the other hand, charges 2.75%. Additionally, Amazon will be offering the necessary card-swiping hardware for essentially no cost: instead, the first $10 in transaction fees will be credited back to Amazon to cover the costs of the mobile card reader.

Whether or not Amazon’s new mobile credit card processing service will actually be made available to cannabusinesses is still unknown, but one thing is certain: if you could get your hands on 2.5% of what’s earned in Washington’s retail marijuana market, you’d be making a lot of money.

Sources:

http://money.cnn.com/2014/08/13/technology/enterprise/amazon-credit-card-processing/index.html?hpt=hp_t2

http://www.washingtonpost.com/business/economy/banks-are-slowly-welcoming-legal-marijuana-dealers/2014/08/12/01c17960-225b-11e4-8593-da634b334390_story.html

http://www.bizjournals.com/sanfrancisco/blog/2014/01/visa-mastercard-amex-marijuana-colorado.html?page=all

Photo Credit: Philip Taylor

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Brief: CannaCon Expo Coming to Tacoma This Weekend

8/12/2014

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CannaCon, the self-proclaimed “world’s largest cannabusiness and lifestyle exposition” is coming to Tacoma, WA this weekend — exact dates are August 14-17.

Despite sharing the weekend with Seattle’s well-known and longstanding Hempfest, CannaCon will be a four-day event featuring one day of about 60 seminars offered by cannabis professionals, followed by three days of something resembling a home and gardening show tailored towards the cannabis industry. There will be more than 500 exhibitors present, including professionals involved in healthcare, law, tourism and more.

“I have done home-and-garden shows around the nation, and after going to Hempfest and the Cannabis Cup, I wasn’t overly impressed. I felt I could do a better job,” said organizer Bob Smart of Edmonds, WA.  He’s encouraged patrons to focus on the exposition side of the event, and not on the overarching theme of cannabis. “There’s no smoking at the event,” he explained. “There will be no marijuana products for sale.”

However, marijuana enthusiasts should expect to find nearly everything else weed-related at CannaCon: pipes, vaporizers, grow lights, trimmers, potting soil, nutrients, closed-loop extraction equipment, electricians, gardening experts — all of the gadgets and tons of professionals will be made available for one long weekend at the Tacoma Dome.

“It seems to me with an emerging industry like we have that it needs to be something different from a bunch of people getting together and smoking. It has to be more professional,” Smart said. Nonetheless, CannaCon will be offering a free shuttle for those patrons who wish to swoop by neighboring Seattle’s Hempfest for some old-fashioned smoke outs throughout the weekend.

Sources:

http://www.thenewstribune.com/2014/03/20/3107657/marijuana-trade-show-headed-for.html

http://www.kplu.org/post/coming-tacoma-dome-cannacon-home-and-garden-show-cannabis

Photo Credit: Eric Kilby

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Footage of First WA State Recreational Marijuana Edibles & Concentrates Sales Published by Ganjapreneur.com

8/08/2014

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On August 6th, Top Shelf Cannabis in Bellingham, WA made history as the first retailer in the state’s recreational marijuana market to sell edible and concentrated products to consumers. With several news networks in attendance and a long line of eager customers outside, Top Shelf was set to receive their first delivery of non-flower products at 10:00 pm, and had committed to staying open until midnight (the latest allowable hour to sell cannabis products in Washington’s legal market) to serve those who had come to participate in the historic event.

As 10:00 p.m. came and passed, and the products had still not been delivered, the news media in attendance were forced to pack up and leave in order to meet their broadcast deadline before the first transaction was made. Luckily, representatives from Ganjapreneur, a cannabis industry media start-up, were also there to document the occasion. The delivery finally arrived at about 10:40 p.m., giving the major networks just enough time to film the products being unloaded and sorted before hurrying out the door to meet their deadline. Ganjapreneur’s film crew stayed at Top Shelf the rest of the evening to document the experience, and uploaded the footage to their website and YouTube channel on Thursday.

The edible products that were sold on Wednesday were savory snacks, including infused trail mix and nut clusters made by Green Chief, a processor licensed by Washington State which will also be providing edibles to several other retail stores in the region. There was also a pre-loaded vaporizer system that sold for close to $100 per unit, manufactured by Rif, another state-licensed processor.

Last month, Top Shelf Cannabis also made history as the first retailer to sell cannabis flowers in the legal market on July 8th. Since then, the store has received several shipments of flowers that have quickly sold out. Within the next week, Top Shelf is expecting a shipment of 50 pounds of cannabis flowers that they hope will allow them to operate continuously until the next shipment without limiting the purchases of their customers.

Ganjapreneur is a website dedicated to keeping aspiring “ganjapreneurs” up to date on the latest business news and developments in the recreational cannabis, medical marijuana, and industrial hemp industries. The website publishes original articles as well as curated news from around the web, and also conducts in-depth interviews with established business owners.

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Exclusive: WA Retailer ‘Top Shelf Cannabis’ Makes History Again with Edibles & Concentrates

8/07/2014

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While Washington’s recreational retail marijuana market opened for business in July, last night marked the state’s first legal sales of cannabis-infused edibles and concentrates. The edible products were delivered at about 10:30pm to Top Shelf Cannabis, which was also the first retailer to sell cannabis flowers in the state on July 8th. Scroll down for Ganjapreneur’s exclusive video footage!

During the recreational market’s first month, only dried cannabis flowers could be found in retail stores across the state. “The public wants their edibles,” explained John Evich, an investor for Top Shelf Cannabis. “It seems like every third person is hounding us, ‘Where are the edibles?'”

Well, now Top Shelf has three different kinds of edibles to offer customers: a trail mix, a Chex mix, and another nut mixture called carnival nuts (which are, reportedly, peppery nut clusters rolled in honey and sugar). “They’re not as boring as they sound,” he said — and, with anywhere between 15-20 milligrams of THC per serving, we’re inclined to believe him.

The late night delivery was made by Green Chief, an I-502 company who received their license from the Liquor Control Board less than two weeks ago. The company’s director of operations, Stesha Ries, explained that pot shop customers should expect to see a lot more of their edible products on store shelves soon: “We’re going to have a consistent product for our customers,” she said. “We’re going to have a safe product — it’s been tested. And it’s a great product.”

The state’s Liquor Control Board released regulations for edibles manufacturing and sales last month, which placed restrictions on the creation process for cannabis edibles: infused products are not allowed to be considered appealing to children, and products that would require controlled temperatures for safe storage are also not allowed.

The eager customers waiting in line outside Top Shelf Cannabis to take part in the historic moment were not disappointed: although the delivery was later than expected, every customer who showed up was able to make a purchase before midnight, which is the state-mandated closing hour for retailers in the recreational market. Green Chief delivered 500 bags of edibles last night, and Ries said that she’ll be making another delivery to Top Shelf this weekend, after which another edibles delivery will be going to Altitude, the retail store in Prosser, Benton County.

Furthermore, Ganjapreneur’s film crew persevered over other mainstream media outlets last night while waiting for the delivery, which means we’re offering an exclusive look at the state’s first legal sale of marijuana-infused edibles and concentrates! The TV news crews in attendance stuck around just long enough to get a peek at the products being unloaded before they needed to bolt out the door to meet their broadcast deadlines, but we stuck it out to capture the historic moment for future generations.

Top Shelf Cannabis was one of the state’s first I-502 retail stores to open, though its operational business hours have been largely dependent on how quickly the store sells out of product. Evich did disclose, however, that he was expecting the delivery of 50 pounds of pot over the next week and a half, meaning that — a whole month after opening — the store’s shelves may actually remain stocked for typical business hours in the near future. We are planning to conduct an in-depth interview with John in the near future, so stay tuned!

Sources:

http://blogs.seattletimes.com/pot/2014/08/06/first-pot-edibles-vape-pens-available-tonight/

Photo Credit: Noel Abbott, Ganjapreneur.com

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Brief: Is Rhode Island the New Stoner State?

8/06/2014

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In a surprising twist, new data from the latest National Survey on Drug Use and Health suggests that Rhode Island—not Colorado, Washington, California or any of the other stereotypical “stoner” states out west—has the highest percentage of users per capita.

13%, or one in eight, of Rhode Island citizens aged 12 and older said that they had used marijuana within the past month. Kansas, with 4.06% overall, reported the lowest levels of marijuana users. For the most part, states in the west generally reported more marijuana users, with an average of 9%; while in the South, marijuana use among the population averaged only 5.83%. The national average is only 7%.

Unsurprisingly, it appears that the largest age group of marijuana users (19%) is between 18-25 years old. In contrast, only 5% of Americans 26 and older reported regular marijuana use.

Marijuana is legal for adults aged 21 and older to use in Colorado and Washington, and legalization will be on the November ballot in Alaska and Oregon later this year. Several other states have recently adopted or proposed initiatives legalizing cannabis for medical use, including New York and Minnesota.

Source:

http://www.samhsa.gov/data/NSDUH/2k12State/NSDUHsae2012/Index.aspx

http://www.boston.com/news/local/rhode-island/2014/08/05/forget-colorado-new-survey-shows-rhode-islanders-use-the-most-marijuana/1ODA0tSy0Y8yVjUDRkqnlM/story.html?s_campaign=8315

Photo Credit: 6SN7 via Flickr

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Interested Parties in New York MMJ Market Face Significant Barriers to Entry

8/01/2014

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On July 7 New York Governor Andrew Cuomo signed the Compassionate Care Act into law; making the state the 23rd to allow marijuana for therapeutic use.

Cuomo has called the state’s approach, which bans smoking of the plant, “the smartest” of any state. The legislation allows for the drug to be ingested via edibles and oil vaporization.

The state’s plan leaves many of the details to the commissioner of the Department of Health and the language of the law offers many specifics about how the nascent industry will be run. The industry is expected to be up and running in 18 months.

The state will permit five companies to open four dispensaries each throughout the state with each location required to be backed by a $2 million bond. The measure also imposes a 7 percent excise tax on every sale.

Certainly the bigger industry players – such as Gaia, who testified during a hearing on the proposal – won’t have trouble coming up with the $10 million bond requirements for five location, the lawyers to help guide them through the rules, and the management team to get them started in the state. However, navigating the unchartered waters in New York might be a tough task for companies and individuals who are looking to get into the market.

Jason Pinsky, THCEO of Cannastract and a Brooklyn, New York native likens the medical marijuana industry to the early days of the technology industry – where his entrepreneurial career started. He says the early tech companies were born in garages; with their founders using their own funds to start the companies and that many of the pioneering medical marijuana companies were started in a similar fashion. He explains, though, that the industry has already changed and that increased regulations in states who have recently adopted medical marijuana are making it harder for individuals and startups to enter the market.

“The money required by [New York] is on a different scale than it has been historically,” Pinsky said. “It’s going to be an interesting climate as far as raising capital … It’s going to be a lot harder to demonstrate that you’ve got what it takes to pull $10 million plus in funding together in what will be a $100 million company to start.”

The law itself has a variety of hurdles that potential business owners will have to overcome, according to Pinksy. He says that because the law allows the program to be shut down by either the Department of Health or the superintendent of the State Police, many investors will be wary of investing into New York “cannabusinesses” because if the program is squashed they will not see a return on the investment. Pinky suggests that parties interested in becoming a manufacturer in New York partner with an established company – likely from Colorado – because they have the most experience navigating the business and understand the supply and demand issues that will surely plague the early days of the industry.

“You have to have a lot of things in place,” Pinksy said. “You have to have lab testing agreements in place; you have to have a labor peace agreement in place.”

Potential cannabusiness owners in the state will also have to be prepared to shell out more than just the money related to the production of the plants. If the bill stays an oil and edibles only measure – which is likely – business owners will also have to buy equipment for turning their raw plants into a product legal under the rules.

Sources:

http://www.usatoday.com/story/news/nation/2014/07/07/cuomo-signs-medical-marijuana-bill/12323967/

https://www.governor.ny.gov/press/07072014-comprehensive-medical-marijuana-program

Photo Credit: Eva Abreu

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Cannabis Entrepreneurs Struggle to Secure Investments

8/01/2014

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We’re in the midst of a marijuana revolution in the United States and there’s no shortage of enterprising visionaries looking to be part of it. But in their rush to get there while it’s still hot, many of these would-be entrepreneurs hit a snag: securing financial backing for their companies. That’s because despite individual states legalizing marijuana for recreational and medicinal use, it’s still a Schedule I Controlled Dangerous Substance under federal law.

Banks have a good reason to steer clear of marijuana companies. Investing in any company comes with the risk that the company will fail and the investor will lose money. That’s inherent with any type of investing. But when the companies asking for loans are breaking federal law and risk being raided at any time, that risk becomes closer to a guarantee. The Controlled Dangerous Substances Act makes it illegal to manufacture, distribute, or dispense marijuana. To be publicly traded, companies must report all of their business records to the Securities Exchange Commission, the SEC, but that means that these companies have to admit to the federal government that they’re engaged in creating and supplying marijuana products. Just this year, five cannabis-related start ups have had their listing in the stock market temporarily suspended by the SEC.

So what can budding cannabis entrepreneurs do? Fortunately, securing funding from banks isn’t their only option. Groups like ArcView, a San Francisco-based investor network, are investing in these companies when banks won’t, allowing hopeful business owners to realize their dreams.

“I think we’re seeing a lot of people who see this as the next great American industry, and the clock is ticking,” said Troy Dayton, CEO of ArcView at the recent Cannabis Business Summit in Denver, Colorado.

ArcView’s goal is simple: to work toward an America where every adult may purchase and consume cannabis products without fear of harassment or criminal charges from law enforcement. Since 2010, ArcView’s network of more than 250 investors has spent over $10,000,000 to launch fourteen independent cannabis-related companies. It focuses on high-quality, sustainable business pitches that will promote the legitimacy of the cannabis industry.

“One of the key things to keep in mind here is that we’re not talking about a new substance, and there’s no panacea, there is no way to solve all the challenges of a particular substance,” Dayton said at the Summit, “but one thing’s for sure, a regulated environment with legal businesses is going to do a much better job of handling this product than the current criminal market.”

Along with ArcView, smaller investment groups like MJX are working to help fledgeling companies overcome the financial challenges of getting off the ground and into the marketplace. Investors like Troy Dayton are optimistic.

“The writing is on the wall,” he said. “Marijuana prohibition is very likely to end over the next five to seven years. If you’re an investor, and your game in the investment game is to get ahead of what’s going to happen, then this is often a good bet.”

Sources:

http://hereandnow.wbur.org/2014/01/03/marijuana-investors-rush

http://america.aljazeera.com/articles/2014/7/16/cannabis-boom-businesssummit.html

Photo Credit: Max London

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Washington’s Retail Marijuana Market Generates $615K in Taxes During First Three Weeks

8/01/2014

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In the first three weeks of Washington’s legal marijuana sales, the state reportedly earned $614,985 in excise taxes on the $2.4 million worth of marijuana products distributed through the new retail marijuana market. These numbers, released by the Washington State Liquor Control Board on Tuesday, do not incorporate state or local sales taxes, which add an estimated $240,000 to the sum.

Retail marijuana stores opened in Washington on July 8, but product shortages across the state have stunted sales during the industry’s initial weeks. Nonetheless, tax proceeds are expected to surpass $1 million during the market’s opening month.

When comparing these numbers to those reflected by Colorado’s retail market (which opened on January 1 this year and produced $2.4 million in taxes during its first month), it appears that, despite sporting higher prices, a larger population, and arguably higher demand for cannabis, Washington’s recreational marijuana market is starting off much more slowly than Colorado’s.

The major difference between Washington’s and Colorado’s recreational markets is the method that was used to implement them: in Washington, the WSLCB has designed the system, its infrastructure, and all of its regulations from the ground up; in Colorado, the first retail stores were converted from businesses that originated as medical marijuana dispensaries, which allowed for a much easier transition into the age of legalized weed.

The biggest problem in Washington is product availability. “Currently, the system is a disaster,” explains John Davis. “There’s not enough to sell.” Davis is both the executive director of the Coalition for Cannabis Standards and Ethics and CEO of the Northwest Patient Resource Center, a medical dispensary in Seattle. “People are coming to Seattle because cannabis is legal here… But the supplies aren’t there.”

The WSLCB announced last year that it would be issuing a total of 334 licenses for retail marijuana businesses. Of the more than 2,600 individuals who applied for growing licenses, however, less than 80 applicants have actually been licensed so far. Additionally, only 24 retail stores had been licensed in time for the July 8 grand opening, and many chose to remain closed until they were confident that they could open their doors with enough supply to meet the demand.

Washington’s recreational marijuana market is the result of voters passing the historic Initiative 502 in 2012. The initiative legalized the use and possession of marijuana for adults aged 21 and older, and also tasked the WSLCB with laying out regulations for a state-licensed product distribution system.

Sources:

http://thejointblog.com/2-4-million-cannabis-sold-615k-taxes-made-first-three-weeks-legal-sales-wa/

http://www.ibtimes.com/washington-pot-shortage-hurts-pot-tourism-1638222

Photo Credit: Rachel Sarai

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The NY Times Becomes Nation’s First Major News Publication to Endorse Marijuana Legalization

7/31/2014

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The New York Times Editorial Board released a landmark and incredibly public manifesto over the weekend in the form of an editorial series — the publication has officially condoned the past 40 years of marijuana prohibition, and now calls for the federal government to take action toward legalization.

The editorial series dedicates several more articles to the subject, which will be published throughout the week. These follow-up articles are to discuss unique aspects of cannabis’ current situation at the national level.

While the Editorial Board clearly recognizes that their opinion may spark heated controversy in some circles, they also have expressed confidence that the American population in general could sympathize with a desire to repeal marijuana prohibition.

“There are no perfect answers to people’s legitimate concerns about marijuana use. But neither are there such answers about tobacco or alcohol, and we believe that on every level — health effects, the impact on society and law-and-order issues — the balance falls squarely on the side of national legalization. That will put decisions on whether to allow recreational or medicinal production and use where it belongs — at the state level.”

The first part of the editorial series predictably calls for the federal government to repeal prohibition and leave it up to states to decide for themselves on the issue of marijuana.

A second article sheds light on the injustice of most marijuana arrests, arguing that not only can you measure the damage of marijuana prohibition in the billions of dollars it costs taxpayers, but also in the countless years of human life claimed by outrageously long prison sentences given to nonviolent drug offenders.

Yet another article argues that marijuana prohibition’s origin is rooted in racist ideals and out-dated legislation — that the era of ‘Reefer Madness’ was intended to demonize Mexican immigrants and African Americans, who were associated with marijuana use at the time.

The fourth installment discusses the health implications surrounding marijuana use, grounding its readership in a firmly scientific analysis of the benefits and drawbacks of a society that smokes marijuana.

The groundbreaking editorial series is set to continue throughout the rest of this week, with the final two articles’ subjects foreshadowed at the top of the New York Times’ Opinion section of their website: we can expect further articles expanding on the titles ‘Track Record’ and ‘Regulation’ to reach the media stream soon.

Historically, the New York Times has expressed some very different opinions on the issue of cannabis prohibition. About 30 years ago, for example, the publication was releasing some of the most anti-marijuana material you could find in those days. A.M. Rosenthal, former executive editor and columnist for the New York Times, made particular efforts to support cannabis prohibition in his day — and in a perfectly ironic twist, the current editorial page editor is none other than Andrew Rosenthal, the original editor Rosenthal’s son.

Sources:

http://blog.norml.org/2014/07/26/new-york-times-end-prohibition-again/

http://www.nytimes.com/interactive/2014/07/27/opinion/sunday/high-time-marijuana-legalization.html

Photo Credit: Alexander Torrenegra

 

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Zane Witzel via Cannador®: Luxury Cannabis Storage and Preservation

7/27/2014

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Our first official interview candidate is Zane Witzel, CEO and founder of Cannador®, a brand of luxury stash boxes that are specifically designed to prolong the life of cannabis flowers by maintaining constant humidity. Like a humidor for luxury cigars, Cannador was built for the seasoned connoisseur, and it definitely looks the part.

 

cdr3 cdr2 cdr1

Combining precise functional design with a luxurious aesthetic, it is truly a unique product. We had the opportunity to connect with Zane and ask him some questions about his experiences so far in the cannabis industry: read our interview below!

Ganjapreneur: When/where did you come up with the idea for the Cannador?

Zane Witzel: About a year ago, at a friend’s place in LA, I noticed an odd-looking shoe box sitting atop his dresser, loosely filled with jars, rolling papers, and just about every smoker’s accessory you can think of. I thought that was a great idea, a place where you can keep everything centrally located, but aside from the cute ‘toy box’ appeal, it was clearly lacking any kind of organization. Don’t get me wrong, everyone’s stash box is unique and special to them, but after considering that the non-DIY group might also want something like this, then there must be something out there that’s better than my friends shoe box. After doing some research, I couldn’t find anything that addressed the central problem of evaporative loss (aka dry bud) in addition to organizing and separating strains, so after learning that a certain ratio of moisture is optimal to keep bud fresh and flavorful, I adapted a few attributes of a humidor to cater to bud. But this story won’t end here, I believe there’s room to innovate the curing and storage market on a much grander scale for both industrial and consumer use, something I will continue to research alongside the help of a lab I’ve engaged.

Do you think that the storage and preservation of cannabis for industrial and commercial purposes will eventually be regulated by the government?

Possibly in new states that want to restrict cannabis consumption to medical use only, although I doubt this will happen in the near term. There haven’t been enough studies on cannabis storage methods, so it’s difficult for dispensaries to make educated decisions on what they should be using to maintain their inventory. Many dispensaries use plastic bins or mason jars simply because they’re moving inventory so quickly that THC stability really doesn’t matter to them.  However, if and when they are forced to purchase excess inventory due to harvesting cycles and fluctuations in demand, these methods could be problematic since THC degrades from oxidation and evaporative loss. While the potency levels may seem negligible to the average recreational consumer, we have to keep in mind that it’s still a drug, and as such, it should be properly stored, just like any drug at a hospital.

What has been the greatest challenge you have faced bringing Cannador to market?

Other than telling my family at the Thanksgiving dinner table that I’m leaving my job in finance for this harebrained idea, there really is no greater challenge that I’ve faced than advertising. The primary channels available for advertising all forbid even the slightest hint that your product or service is related to marijuana. So we’re left with few options that don’t necessarily reach the right audience. At some point in our careers, we’ve all had to resort to guerrilla marketing tactics, but in this industry, it’s the norm.

How has the Cannador been received by the public?

It’s been well received since launching in June. I knew I did something right when nearly a quarter of our first customers became repeat customers. I guess I shouldn’t be too surprised that many are asking for larger storage units. Ask, and you shall receive. Plenty more sizes in the works.

Can you tell us about any of these new products?

I’m about to roll out a cabinet Cannador that will have several drawers and a pull-out work table. It will also have a shelf to store your glass. Think of it as a modified version of the classic 60’s cocktail bar. I’m also introducing alternate sized Cannadors as well as a stackable metallic canister that will have a kief repository and space for the Humidity Bead System® at the upcoming Hempfest and HempCon in August.

Have you had any celebrity customers or endorsements?

Not yet, although I’ve reached out to a few. I’d love to create a Strain Hunter’s line and get their input, those guys rock. I’m also pretty sure that celebrities like Tommy Chong or Snoop Dogg would appreciate our upcoming line of cabinet products that will be able to hold nearly a pound.

How long have you been following the cannabis industry in one way or another?

I started watching this industry really take off 2-3 years ago when Medbox, which operated right down the street from me on Sunset Blvd., began heavily marketing their dispensary systems. It became obvious that big players could enter and innovate. There’s still a lot more room for competition because this market is very immature, so it excites me to see new companies fill the many voids that piece together this emerging marketplace.

Did you begin your company with venture capital, crowd-funding, or did you fund it yourself?

Self-funded in addition to a small family loan.

Do you have employees? If so, how many?

No, it’s just me so far, wearing all the hats.

On your website, there is a page for your Corporate Social Responsibility statement: can you go into some detail about that?

Mainly inspired by Patagonia founder, Yvon Chouinard, I agree that we as a society should be more conscious about the actions we take. I’ve pledged to plant a tree for every unit purchased through a non-profit in Colorado to help reforest and replenish what we take. Like Patagonia, if I can follow the triple bottom line ethos, “People, Planet, and Profits,” then maybe it will continue to catch on and help make our world a better place.

Based on your experience so far, how do you see the cannabis industry evolving over the next few years?

These past few years have been about laying the foundation; banking, regulation and cultivation, so I think the next few years will be classified as the growth stage (primarily for companies in Colorado and Washington). Many of those businesses who got in early will now focus on perfecting their model and responding to market conditions. However, those companies in states where marijuana is either unregulated or just decriminalized will continue to face a litany of challenges. Out of this, we will probably see innovations in concentrates, new formulas and variations of extracts. We’ll also see the volume of cannabis increase, possibly even double, after more processing licenses are granted and the knowledge and skills behind cultivation improve. This would inevitably lead to cheaper prices, but if the government follows the same path they took with tobacco, we can rest assured the prices will be inflated.

Do you think the industry could be in danger if there is a change of power in Congress and/or the White House?

Like a fast moving train, this industry has too much momentum to slow it down. We’ve already proved that cannabis provides an economic and medical benefit to our nation’s health, so if there’s any resistance from Congress, it will be over regulation, but not any kind of reversal. Many in office are simply waiting for cannabis legalization approval ratings to increase so they can maintain their positions in office without rocking the boat. Governors Cuomo and Christie are both great examples of this. They’ve both repeatedly stated their disapproval of marijuana, yet both New York and New Jersey have enacted medical marijuana programs. Despite their respective states’ restrictions on which diseases are appropriate for the consumption of cannabis, scientific evidence will continue to render these laws obsolete and injurious.

What advice can you offer to aspiring ganjapreneurs?

Don’t let the stereotype of a typical marijuana enthusiast determine your customer base, and do not underestimate the business acumen of established ganjapreneurs. The number of cannabis-related businesses that are staffed with seasoned executives from major corporations may even surprise you. With regard to my first point, “the stoner” isn’t just a crystal-gripping hippie wearing tie-dye while listening to Phish. Yes, many of these people still wave that flag proudly, but this is no longer an accurate representation of the entire market. As cannabis consumption becomes more mainstream, there will be vast customer segments within age-groups and economic classes, just as there are in the apparel, auto, and consumer-electronics industries. Their appreciation for marijuana is just the tip of the iceberg, so just as you would in any business, get to know your customer!

Thank you, Zane, for taking the time to answer our questions about your experience running a business in the cannabis industry! We are looking forward to seeing those new products roll out in the near future, and we hope to check in on your progress down the road.

If you have follow-up questions of your own for Zane, you can write them in the comments area below or use the contact form via the Cannador website!

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Big Changes in the Colorado Retail Marijuana Market

7/02/2014

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The Colorado retail marijuana industry is opening its doors to all applicants on Tuesday in a sweeping transformation of the policies that monitor Colorado’s legal marijuana market. Previously, only established entrepreneurs of the medical industry could have applied for a recreational license.

Additionally, marijuana businesses were at first required to offer a general swath of marijuana services, and any weed sold must have been grown by the store itself. Starting this month, however, marijuana businesses are allowed to specialize in specific avenues of the industry — this means that soon there will be businesses in Colorado dedicated purely to cannabis cultivation, or perhaps businesses that focus on marijuana-infused edibles, or even 100% retail businesses that don’t actually produce any product.

Though ambitious individuals from outside the medical industry can now legally attempt a foray into the retail marijuana market, applicants are still required to be Colorado citizens.

The new businesses are expected to open sometime in October, but experts are unsure what effect these changes will have on Colorado’s retail market. “We are going into uncharted territory,” explains Sam Kamin, a University of Denver law professor. Kamin has been following Colorado’s recreational marijuana industry since it went legal at the beginning of this year. “It’s something that hasn’t happened in medical, and it hasn’t happened in recreational,” he said.

As of mid-June, nearly 300 individuals had expressed interest in applying for a license this month. The ratio of applicants hoping to start up retail locations vs. cultivation-only businesses remains unknown. Also, hopeful individuals who actually follow through with their applications are going to face zoning laws and local moratoriums across the state, which may hinder some fledgling marijuana businesses.

“It’s tough to know how many people are really going to apply,” said Mike Elliott, executive director of the Marijuana Industry Group. “Running a marijuana business is much, much more difficult than it might initially appear.”

In the first four months of legalization, Colorado raised more than $200 million in marijuana sales. Two thirds of that revenue, however, is linked to the still-thriving medical industry. By those numbers, the recreational market is actually seeing less demand than was originally expected, which means that the latest applicants for retail licenses might face trouble finding a sufficient customer base to justify their business investments.

Between that bit of discouraging statistics, the strict zoning laws and moratoriums of many Colorado cities, and the dramatic head start that medical-based retail stores got in January, new cannabis industry entrepreneurs in Colorado have their work cut out for them. “Right now,” Elliott said, “we don’t really know what the market can bear.”

Meanwhile, retail stores in Washington State are scheduled to open their doors in one week’s time. Washington’s market is different from Colorado’s in that it was designed from the very beginning to allow specialization among industry members. Producer and processor licenses were issued months ago, meaning the state’s first crop of recreational marijuana is set to unveil during the July 8 grand opening.

Sources:

http://www.denverpost.com/marijuana/ci_26063902?source=rss

http://www.thedailychronic.net/2014/34073/colorados-retail-marijuana-industry-opens-to-all-applicants/

Photo Credit: Brett Levin

 

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Legalization Initiative in Oregon Submits Over 145,000 Signatures

6/26/2014

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The New Approach Oregon campaign has reportedly collected more than 145,000 signatures for their cause, which means that Oregon voters can expect to see marijuana legalization up for vote once more in November’s election.

The organization needs 87,213 valid voter signatures by July 3 to get on Oregon’s ballot. Anticipating at least one third of the collected signatures to be deemed invalid, the campaign’s push for voters’ signatures extended well beyond the required amount. The campaign’s initial goal of 100,000 signatures was achieved sometime last week. The final accumulation of signatures was submitted to the Secretary of State’s office on Thursday at 2 PM.

“We are confident that our measure to regulate, legalize and tax marijuana will qualify for the November ballot and that Oregonians are open to the case for a smarter and more responsible approach to marijuana,” Peter Zuckerman, the spokesman for New Approach Oregon, announced on Wednesday.

Initiative Petition 53 — a.k.a. the Control, Regulation, and Taxation of Marijuana and Industrial Hemp Act — would, if passed, allow adults aged 21 and older to possess up to eight ounces of marijuana, and to grow no more than four marijuana plants for personal use. The Initiative would also provide regulations for selling marijuana to adults. Pot sales would be subjected to a flat tax of $35 per ounce of marijuana flowers, $10 per ounce of marijuana leaves, and $5 per immature marijuana plant.

A Survey USA poll taken earlier this month found that a slight majority of Oregon voters support the legalization and regulation of marijuana. The poll did not, however, differentiate between support specifically for New Approach Oregon’s campaign and for the notion of legalization in general.

With the signature drive coming to a close, New Approach Oregon is putting renewed efforts into fundraising to see the campaign through to a successful finish. Their website currently boasts a fundraising drive wherein any contributions made by July 3 will be matched by an anonymous donor, up to a maximum of $10,000. The campaign has already raised more than $1.7 million, though much of that money was spent gathering signatures to see the initiative make the ballot.

“We are poised to make history in November,” said campaign manager Dan Mahr on the subject. “But campaigns require a significant investment of time and money. And to succeed, it’s critical that everyone who is passionate about legalization invests.”

Three months ago, it looked as if Oregon voters might have had the luxury of choosing between three different legalization initiatives; as of this week, however, New Approach Oregon is the last campaign standing. Paul Stanford — who was the initiator behind Oregon’s 2012 attempt at legalization, the Oregon Cannabis Tax Act — announced earlier this week that he was giving up on two separate ballot measures that would have also put the legalization and regulation of marijuana up for vote in November.

“We have decided, given that we were just at about 50,000 signatures, that we do not have the wherewithal to move forward and qualify for the ballot so we stopped this week our paid petition drive,” Stanford announced on Friday. 

Given that Oregon voters very nearly passed the Oregon Cannabis Tax Act in 2012 (with 47% in favor, 53% against) despite any major funding, many Oregon ganjapreneurs are hopeful for November’s election — the state’s second attempt at making marijuana history.

Sources:

http://www.oregonlive.com/mapes/index.ssf/2014/06/marijuana_legalization_in_oreg.html

http://www.oregonlive.com/politics/index.ssf/2014/06/recreational_marijuana_support.html

http://www.thedailychronic.net/2014/33970/oregon-marijuana-legalization-drive-collects-over-145000-signatures/

http://www.surveyusa.com/client/PollReport.aspx?g=005a915d-93f5-4dc8-b982-324b58e9eaa7

http://newapproachoregon.com/wp-content/uploads/2014/06/053text.pdf

Photo Credit: Coleen Whitfield

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Washington’s Retail Marijuana Market to Open July 8th

6/24/2014

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The first retail marijuana stores will open in Washington on July 8th, according to the Washington State Liquor Control Board (WSLCB), nearly two whole years after voters passed Initiative 502 and legalized the drug in 2012.

The first wave of stores should include approximately 20 different locations. They will be receiving their licenses on July 7, according to WSLCB communications director Bryan Smith. Before opening on the 8th, retailers must record their marijuana inventory into the state’s seed-to-sale tracking system.

“We’ve kept in mind geography and population, and retail licenses will be spread around the state,” Smith said. The Board will publish a list of licensed retailers after the licenses have been issued.

Some retailers are concerned that there might be an initial shortage of product when the market opens. “The last thing we want to do is open and have very little inventory, run for a couple days and then shut down for three days. I really do think that will be a problem,” admits Todd Shirley, a dispensary owner in Shoreline who expects to receive a retail license. Whether or not he gets a license on the 7th, Shirley is planning to skip the July 8 grand opening: “Once we open, I would like to be able to supply our clients. And to have to shut down for a few days could cause them to go elsewhere.”

The new state law says that recreational pot cannot be sold in quantities greater than one ounce — stores may keep the limit even lower, however, as retailers try to keep their sales under control until the marijuana market is fully established. One hopeful store owner, who prefers to remain unnamed, predicts, “it’s going to be kind of a blood bath. You have to compete against the medical and black market with super high prices and limited supply.”

Michael Perkins is another hopeful retailer in the Seattle area. He already runs several medical marijuana dispensaries in Washington, and plans on offering recreational marijuana in a new location, but reportedly doesn’t know how much he’ll charge for it yet. “I would assume $20 to $25 a gram until the producers reduce their prices,” he said. Whether or not producers will lower their prices remains to be seen, but Perkins warns:

“If you want a successful 502, you have to beat the black market. You have to be price competitive. You have to be selection competitive. You have to be convenience competitive. You have to be legitimacy competitive. You’re guaranteed to get all of the customers who would never shop with an illegal street dealer … but you’re not going to get that group of people who shop from their friends unless you bring that price down enough to where the convenience is completely worth it.

For now, there are reports of some growers with asking prices as high as $5,000 per pound for the retail stores. One group of producers, however, has reportedly established a more reasonable price of $2,800 per pound. These growers also request that their retailers cap prices at $420 per ounce for consumers.

So, on the bright side: tt would seem that not everyone has succumbed to the temptation of price gouging in Washington. These lower prices may even develop into an important contribution to the success of the I-502 recreational market.

Sources:

http://mmjbusinessdaily.com/washington-stores-to-open-july-8-but-high-prices-expected/

http://blog.seattlepi.com/marijuana/2014/06/23/first-group-of-retail-marijuana-stores-expected-to-open-on-july-8/#14194105=0&21503103=0&24345101=0

Photo Credit: Gavin White

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New York: The 23rd State to Legalize Medical Marijuana

6/21/2014

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Lawmakers in New York decided yesterday that their state will be the next to have legal medical marijuana. There is, however, a catch:the new law will only allow the drug in non-smokable forms. That means only edibles, tinctures, and vaporizers are to be prescribed by doctors — hash, bud, and other products made of the flower itself will still be banned.

The Compassionate Care Act, as it’s known, allows doctors to prescribe medical marijuana to patients suffering from certain conditions, including AIDS, epilepsy, multiple sclerosis, cancer, and post-traumatic stress disorder. Doctors must undergo specific training, however, to be eligible to write medical marijuana prescriptions.

This development comes following days of negotiations between Gov. Andrew Cuomo and the bill’s sponsors, Assemblyman Richard Gottfried (D) and state Senator Diane Savino (D). The governor was the one who had reservations about allowing patients to smoke the plant, citing that he was afraid marijuana would serve as a gateway drug. Gottfried and Savino had both pushed for a less restrictive bill, but the governor’s tenacity overruled their concerns.

Gottfried has been pushing for legal medical marijuana in New York for 20 years, and described the bill’s success as a “tremendous victory,” adding that “this comprehensive, tightly-regulated legislation will bring relief to thousands of New Yorkers.”

Gabriel Sayegh, the New York state director for the Drug Policy Alliance, said, “New York has finally done something significant for thousands of patients who are suffering and need relief now. They will benefit from this compromise. That said, this is not the bill we wanted.”

The statement continued:

“The cost of purchasing a vaporizer and the extract products will likely leave many low-income patients behind, and there is little research on the long-term health effects of using extracts. We know that overly restrictive programs, like New Jersey’s, can create enormous obstacles for suffering patients. We hope that the proposal being put forth today is both well regulated and flexible enough to ensure that patients who need medication get it — and get it in a timely fashion. We look forward to seeing the details and to working to ensure this is implemented as quickly as possible.”

Karen O’Keefe, the director of state policy at the Marijuana Policy Project, expressed a more specific concern: “For many patients, [smoking marijuana] is the best mode of administration. Vaporizing also allows nearly immediate relief, but good vaporizers can be very expensive and difficult for some patients to use. Smoking marijuana doesn’t cause lung cancer, and the dangers of smoking marijuana pale in comparison to smoking cigarettes.”

Insurance companies will not be required to cover the costs of medical marijuana.

And finally, if any aspect of the legalization program seems to fail, the bill grants power to the governor to call the whole thing off at any point.

Sources:

http://www.huffingtonpost.com/2014/06/19/new-york-medical-marijuan_n_5512942.html

http://www.thecannabist.co/2014/06/19/new-york-lawmakers-agree-medical-marijuana/14356/

Photo Credit: Enrique Mendez

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Colorado to Funnel $9 Million Into MMJ Research

6/18/2014

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As more and more states pass laws toward cannabis law reform, studying marijuana’s medical properties has become a priority for some lawmakers. Colorado is now preparing to funnel $9 million into medical marijuana research, as per a bill signed by Gov. John Hickenlooper last month.

The approximately $9 million is to be issued in grants by the state health department over the next five years, with which medical researchers will study marijuana’s health effects. According to the Denver Post, the research will reportedly include clinical trials on marijuana products currently being offered in Colorado’s medical and recreational markets — this sort of direct product review has never been encompassed by federally funded research.

“Our intent is to be rigorous scientifically, but to also act with some expediency because these are products that a large percentage of our population is using today,” said Dr. Larry Wolk, the executive director and chief medical officer of the health department. “We want to make sure that what’s happening out there in everyday practice isn’t harming people.”

Thus far, federal cannabis research has been limited due to the plant’s inanely high priority scheduling on the DEA’s controlled substance list. The state of California, however, slotted $8.7 million for marijuana research in 1999, and over the next 12 years state-funded studies found that smoked marijuana is indeed capable of relieving pain, that MMJ patients with multiple sclerosis experienced a reduction in spasticity while medicating with marijuana, and that vaporized marijuana is easier on the lungs than smoked marijuana.

Colorado, using money from the registration fees of medical marijuana patients, plans to build further on that research.

The health department expects to start accepting applications for grants as early as later in 2014, according to Dr. Wolk, but researching the plant in regards to those medical conditions already approved for the medical marijuana program will take priority. The state should be able to fund between 10-15 different studies. “We’re trying to turn over all the stones on this,” Wolk said.

It remains clear, however, that the federal government continues to resist recognizing marijuana’s medical properties. The National Institute on Drug Abuse (NIDA) released a polarized report earlier this month that links the drug to some adverse effects such as addiction and impairment of brain development. According to the Denver Post, any evidence that the plant might have therapeutic qualities was deemed “less than convincing.”

Meanwhile, there are millions of people around the world with personal stories about the cannabis plant and its various healing properties. The anecdotal experiences of medical marijuana patients continue to indicate the drug’s usefulness in treating pain, nausea, spasms, cramps, inflammation, and many other symptoms — with any luck, the grants issued by Colorado’s health department will result in further, and more officiated, acceptance of marijuana as medicine.

Sources:

http://www.denverpost.com/marijuana/ci_25946384?source=rss

http://www.huffingtonpost.com/2014/05/21/colorado-medical-marijuana_n_5365644.html

Photo Credit: Brett Levin

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MPP Urges Denver Police to Allow Off-Duty Marijuana Use

6/17/2014

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Is it safer to get high than it is to get drunk?

This question has led to a dilemma in Denver, where police officers face a zero tolerance policy on marijuana despite the state-wide legalization of recreational marijuana in 2012 for adults aged 21 and older. Recently, the Marijuana Policy Project urged the Denver Police Department to allow officers of the law to use recreational marijuana as a safer alternative to alcohol, following an announcement made by Denver Police Chief Robert White, in which he conceded to be considering options for handling the department’s problematic alcohol abuse. “I’m concerned for the officers. I’m concerned for their wellness,” White admitted. “I’m concerned for our agency. We’ve worked extremely hard.”

In 2014, Denver has seen a series of officer arrests in which alcohol has played a key role. There are already seven officers accused of crimes so far this year, six of which directly involved alcohol abuse (by comparison, there were only four officers arrested in 2013). The Denver Post reports:

Incidents involving officers this year have included a veteran detective arrested on a child-pornography charge; another detective arrested on nine charges, including child abuse and domestic violence; and two officers accused, along with their wives, of getting into a drunken brawl involving allegations of swinging. Three others have been accused on driving under the influence, said Sonny Jackson, a department spokesman.

The Marijuana Policy Project contacted the Denver Police Department on Friday and suggested considering the potential benefits of lifting the department’s ban on off-duty marijuana use.

“Denver police officers know as well as anyone that alcohol use is a far bigger threat to public safety than marijuana use,” said Mason Tvert, MPP’s Denver-based director of communications. “Drunk and rowdy people cause them problems all day at work. It should not be a problem for them to relax after work by using marijuana instead of alcohol, if that’s what they prefer.” Tvert was also co-director of the 2012 initiative campaign to end marijuana prohibition in Colorado.

And, if the law prevents lifting the ban on off-duty marijuana use, the MPP suggests that “the [Denver Police Department] and other police organizations should lobby to change the law(s) in the interest of officers’ health and safety.”

“Coloradans now have the right to make the safer choice, and that should include our law enforcement officers,” argues Tvert. “Police organizations always lobby on issues that affect their members’ health and safety. This case should be no different.”

Sources:

http://www.mpp.org/media/press-releases/as-denver-police-department.html

http://www.denverpost.com/news/ci_25950835/denver-police-chief-concerned-about-alcohol-abuse-officers

Photo Credit: Steve Rhodes

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AG Eric Holder Pushes to Reduce Sentences for Nonviolent Drug Offenders

6/12/2014

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The US Sentencing Commission approved a proposal last month that will reduce prison sentences for future drug offenders. Now, the Department of Justice, headed by Attorney General Eric Holder, has announced its support for an additional initiative that would retroactively reduce prison sentences in a similar manner for thousands of nonviolent drug offenders currently serving time in federal prisons across the country — the retroactive proposal should go to a vote next month.

The proposal would reduce sentences for qualified inmates by an average of 23 months. Qualified inmates are described as those “who lack significant criminal histories and whose offenses did not include aggravating factors, such as the possession of a dangerous weapon or the use of violence.”

Somewhere between 20,000 and 50,000 nonviolent drug offenders may be affected by this proposal, and if passed the reduction of prison sentences could save taxpayers $2.4 billion.

Holder, who announced his support for enforcing these changes retroactively in an official statement on Tuesday, described the proposal:

“If your offense was nonviolent, did not involve a weapon, and you do not have a significant criminal history, then you would be eligible to apply for a reduced sentence in accordance with the new rules approved by the Commission in April. Not everyone in prison for a drug-related offense would be eligible. Nor would everyone who is eligible be guaranteed a reduced sentence. But this proposal strikes the best balance between protecting public safety and addressing the overcrowding of our prison system that has been exacerbated by unnecessarily long sentences.”

With marijuana legalization movements gaining momentum and credibility across the nation, criminal justice reform has become something of a political platform for Attorney General Holder and President Obama. The new initiative is consistent with these efforts, which “seek to reserve the harshest penalties for the most serious criminals who pose the greatest threat to public safety.”

Sally Yates, US Attorney for the Northern District of Georgia, provided further information about the DOJ’s understanding of the situation. “We believe that the federal drug sentencing structure in place before the amendment resulted in unnecessarily long sentences for some offenders that has resulted in significant prison overcrowding,” she said, adding that “imprisonment terms for those sentenced pursuant to the old guideline should be moderated to the extent possible consistent with other policy considerations.”

According to the Federal Bureau of Prisons, there are currently 100,888 people serving federal time for drug-related charges, meaning that drug offenders currently make up 49.9% of federal prison inmates.

Sources:

http://www.justice.gov/opa/pr/2014/June/14-ag-619.html

http://stopthedrugwar.org/chronicle/2014/jun/10/ag_holder_supports_making_federa

http://www.thedailychronic.net/2014/33344/ag-eric-holder-urges-reduced-sentences-for-nonviolent-drug-offenses/

Photo Credit: US Department of Education

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Jamaica Considering Marijuana Legalization

6/10/2014

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Believe it or not, cannabis is still technically illegal in Jamaica. In fact, the country’s first medical marijuana company, Medicanja, launched a mere six months ago.

However, inspired by successful legalization experiments in Colorado, Washington, and Uruguay, Jamaican farmers and some politicians have decided it’s time to legally capitalize on the culturally-entrenched industry: largely through the advent of popular reggae legend Bob Marley, Jamaica already has a powerful claim on cannabis culture — in fact, Jamaica-brand ganja might be the world’s most popular perception of marijuana.

Earlier this week, Rastafarian locals and ganja farmers gathered in downtown Kingston, the country’s capital, to discuss the road to legalization. They kicked off a project called Jamaica’s Ganja Future Growers and Producers Association, which hosted guest speakers from Jamaica, the USA, and Canada who talked about various benefits of the drug and how the marijuana industry is swiftly bandwagoning into a raging success story.

“The time has come to provide an opportunity for Jamaicans to benefit from the marijuana industry,” said Angela Brown Burke, mayor of Kingston and senator in Jamaica’s Parliament. Her husband, Paul Burke, heads the new ganja growers and producers association, and is also the general secretary of the PNP, the government’s current ruling party.

Phillip Paulwell, the leader of government business in Jamaica’s House of Representatives, announced a popular opinion earlier this year: “It is my view that decriminalization of the weed will become a reality this [calendar] year, arising from the Parliamentary debate and the support by the majority of the members.”

According to one study, most Jamaican’s (85%) believe that medicinal products should be created from the plant, while a smaller majority (66%) claimed to have used the drug themselves.

There is one major difference between the legalization plans of Jamaica and what was passed in Uruguay many months ago: mainly, Jamaican ganjapreneurs are pushing for legalization so they might capitalize on the ganja tourism industry, much like what we’ve seen in Colorado these past six months. In Uruguay, where marijuana was legalized across an entire nation for the first time earlier this year, tourists are not allowed to buy or use the drug.

“I do believe it may boost our economy, but I don’t think we should sacrifice our human capital to gain the marijuana dollar,” said Dayton Campbell, a physician and member of Jamaica’s Parliament. While Campbell does not oppose using marijuana medicinally, he believes that it should not be smoked for the health risks it poses to the body and developing brain.

However, marijuana advocates continue to lobby based on very clear projections, which indicate that increased tourism would result from legalizing Jamaica’s cannabis culture. One small-time grower predicted the rush for ganja tourism: “Thousands — if they know they can come into a ganja field and police wouldn’t arrest them — they would come. Hotels would be full of people. Everybody would benefit.”

Sources:

http://www.usatoday.com/story/news/world/2014/06/08/jamaica-marijuana-ganja/9992405/

http://marijuana.com/news/2014/06/jamaica-could-soon-be-the-worlds-next-legal-marijuana-country/

http://www.huffingtonpost.com/2014/02/28/jamaica-may-decriminalize-marijuana_n_4874980.html

Photo Credit: Nicolas Oren

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