Cannabis Polling Better Than Any 2016 Presidential Contender in Three Major Swing States

4/08/2015

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According to a Quinnipiac University poll conducted in March, marijuana legalization is polling better than any 2016 Presidential candidate.

The poll, which surveyed voters in Florida, Ohio, and Pennsylvania, found that more than 80 percent of adults support medical marijuana and between 51 and 55 percent support legalizing small amounts for recreational use.

Although recreational cannabis is just slightly more popular than Hillary Clinton in these states, it’s crushing some of the Republican contenders. Recreational marijuana has twice the support of Marco Rubio and Ted Cruz in Ohio, and is more than three times as popular as Jeb Bush in Pennsylvania.

Of course, high polling numbers for marijuana don’t always mean good chances of electoral victories. However, as marijuana shows up on more and more ballots throughout the country, it’s quickly becoming a mainstream election issue that candidates will have to address.

Sources:

http://www.washingtonpost.com/blogs/wonkblog/wp/2015/04/06/in-key-swing-states-weed-is-polling-better-than-all-potential-2016-candidates/?tid=sm_fb

Photo Credit: Alan Grinberg

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Cannabis Topicals: A Good Niche for Health Entrepreneurs

4/07/2015

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Marijuana topicals are having their day, particularly in Colorado where cannabis-themed spas are offering therapeutic massage and alternative treatments that use salves, balms and oils infused with cannabis. Generally, these topicals begin with a carrier oil like coconut oil or olive oil that is cooked down similar to butter when baking edibles.

In some cases the cannabis infusion is the main therapeutic ingredient. Most of the time, however, the topicals are blended with other essential oils that also have anti-inflammatory properties like lavender, frankincense or lemon grass.

It’s probably no surprise that herbalists and holistic healers are embracing cannabis’ analgesic and anti-inflammatory medicinal properties. They have often been at the forefront of encouraging patients to take control of their own healing, often seeing their role more as counselors or facilitators than doctors in their client’s journey toward wellness.

It’s an area with many options for alternative health entrepreneurs. Enthusiasts of cannabis balm claim it has been effective for a number of joint and muscle-related ailments including arthritis, eczema and psoriasis. The cannabis spa movement is also a rapidly growing niche and will need practitioners who can educate their clients as well as treat them with special oils and infusions.

Judith Schreuder brought together her medical training with her love for herbs and created Dutch Farms Organics. A registered nurse, she worked with cancer and other terminally ill patients. In some cases, traditional medicine just didn’t work. So Judith began experimenting with tinctures and potions. When she began hearing about the medical properties of marijuana, it just seemed like a natural ingredient to add to the blend.

“I’ve always taken all my medicine from nature,” says Judith. “From the time I was young I’ve made lotions and potions for my children, my grandchildren and myself.”

At first she gave away her healing salves. Then through word of mouth she began selling them. From there she expanded to a number of California dispensaries and eventually the line Dutch Farms Organics was born.

Many people who are not interested in smoking marijuana and who feel they are not in enough pain to take it orally are enthusiastic about giving cannabis lotions a chance. Cannabis lotions are not psychoactive and should not result in a positive drug test.

Cannabis topicals are a natural evolution in the self-care health movement. As many people become disillusioned with modern medicine and its disconnect between symptoms and the root cause of a problem, treating muscle pain with cannabis oils or balms might be a good option.

And savvy business people will no doubt find some unique opportunities in this area.

Photo Credit: sunshinecity

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Medical Marijuana Legislation Filed in Alabama State Senate

4/07/2015

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Comprehensive medical marijuana legislation was filed in the Alabama state Senate last Thursday, and will be followed by a companion bill in the House.

SB 326, the Alabama Medical Marijuana Patient Safe Access Act, was filed by Senator Bobby Singleton (D-Greensboro). With its legislative counterpart in the house, set to be filed by Rep. John Rogers (D-Birmingham), the two bills would create the most extensive medical marijuana program in the South.

Under the proposed the legislation, patients who suffer from any of the 25 conditions listed in the bill would be allowed to buy up to 10 ounces of marijuana each month, depending on the severity of the condition.

In addition, people suffering from any chronic or persistent condition that “substantially limits the ability of the person to conduct one or more major life activities as defined in the Americans with Disabilities Act” or that could cause serious harm if not alleviated would also qualify for MMJ access under the law.

Sources:

http://www.thedailychronic.net/2015/42042/comprehensive-medical-marijuana-bill-introduced-alabama-senate/

Photo Credit: Stuart Seeger

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Florida’s Restrictive MMJ Law Faces New Challenges

4/06/2015

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The Florida legislature continues to face legal challenges in its attempt to allow patients access to low-THC, high-CBD marijuana strains like Charlotte’s Web. A new bill written to expedite this process has engendered some pushback from black farmers, who assert that the bill contains discriminatory requirements.

To bid for one of the five licenses to cultivate and distribute these high-CBD strains under current law, a farm must grow 400,000 or more plants and have been in existence for at least 30 years.

Only 99 of Florida’s farms qualify, and hundreds of black farmers argue that they could not go into business 30 years ago because of legal battles with the Department of Agriculture regarding discriminatory lending practices.

Senator Rob Bradley (R.-Fleming Island), who sponsored the initial legislation, acknowledged that the bill has a disproportionate negative impact on minority farmers after several members of the Florida Black Farmers Association called on senators to do away with the 30-year rule.

Although he wants to address this, Bradley is concerned about the potential delays this new legal hurdle presents for families that need access to these high-CBD strains now. “The purpose of this bill is to end the legal challenges and to fulfill a promise we made to these families,” Bradley said. “Anything that strays from that purpose is going to be a problem for many of us since that is the reason we are pursuing it this session.”

Sources:

http://www.tampabay.com/news/politics/stateroundup/plan-to-expedite-medical-marijuana-hits-hurdles/2223611

Photo Credit: Daniel Chodusov

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Marijuana Meets Science: Ganjapreneur Interviews Founder of Cannabis Testing Lab in Washington

4/03/2015

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As marijuana legalization has spread to new states and regions, the regulatory framework of the industry has struggled to adapt. How to ensure product safety via scientific testing has been a popular debate, and some legal markets have mandated testing for cannabis producers and retailers. Ganjapreneur, a cannabis industry publication focused on business news and culture, recently published an interview with Dr. Michelle Sexton of PhytaLab about her take on cannabis testing regulations.

Dr. Sexton founded PhytaLab in 2010, and she has also served as a consultant to the Washington State Liquor Control Board on the implementation of I-502, the state’s bill which led to the legalization of marijuana for recreational use. She is a member of the International Cannabinoid Research Society, the International Association for Cannabinoid Medicines, and the Society of Cannabis Clinicians, and she is also an avid surfer and rock climber.

In the interview, Sexton explains how the lack of federal recognition of legal cannabis markets has made scientific research very difficult. “Due to the federal status, crowd-sourced science has virtually replaced clinical research, being ‘loosely’ conducted without the usual controls or theoretical frameworks.” She also describes how the industry itself has reacted to the notion that products should be scientifically tested and verified. “I think that the Cannabis community was really skeptical of analytical laboratory work in the beginning, particularly when the result did not come back as they would have hoped,” she explains.

The interview also covers Dr. Sexton’s personal career and how she came to be involved in the cannabis industry. “I became interested in the potency of cannabis when I was working as a postdoctoral fellow at the University of Washington. I was learning to measure endogenous cannabinoids in human serum and studying the role of this system in neuroinflammation. My research project hypothesized that Cannabis was a potential ‘supplement’ to a deficient endocannabinoid system in patients with Multiple Sclerosis.”

The full interview is available on Ganjapreneur’s website.

About Ganjapreneur:

Ganjapreneur launched in July 2014 and has since established a significant presence in the cannabis business world. The website regularly publishes interviews and commentary from leading minds in the industry, and has also launched a B2B business directory, a live feed of job listings from marijuana job boards, a domain name marketplace for start-ups and venture capital firms, and a mobile app for Apple and Android devices which aggregates daily cannabis industry news, business profiles, and other information.

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Washington Senate Passes Bill to Restructure Legal Marijuana Taxes

4/03/2015

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The Washington state Senate has approved a bill that would change the current tax structure for recreational cannabis.

As it stands, the system places a 25% excise tax three separate times on marijuana entrepreneurs as products move from the grower to the consumer. The proposed bill, Senate Bill 6062, would remove the multi-layered tax system and replace it with a one-time 37% excise tax on marijuana transactions between retailers and consumers.

The bill was passed 26-22 early on Friday and now moves to the House for consideration, according to an AP report.

Under the proposed changes, the first $11.7 million in annual marijuana taxes will go to the general fund ($6 million of which will be set aside for local governments that haven’t passed a moratorium or taken other legal action against marijuana businesses) and the remainder will go to an education fund.

This could be a turning point for Washington’s cannabis industry, which has been widely criticized for its heavy-handed taxation since retail stores first opened in July, 2014.

Sources:

http://www.washingtontimes.com/news/2015/apr/3/senate-oks-bill-changing-tax-structure-of-marijuan/

Photo Credit: Marc Fuyà

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Colorado Government Will Ask to Keep $60 Million Marijuana Tax Refund

4/02/2015

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It appears that Colorado’s initial revenue estimates for last year were too low, and now state lawmakers are scrambling to keep their hands on $60 million made taxing the legal marijuana industry, The New York Times reports.

The money would be spent on schools, marijuana education programs, and paying the salaries of state-employed cannabis industry inspectors and regulators. However, a strict anti-spending provision in Colorado’s state Constitution — known as the Taxpayer’s Bill of Rights — may prevent lawmakers from ever getting their hands on that money. The provision dictates that when Colorado earns more than expected in a given year, the state is required to return some of that money to taxpayers.

“It’s not that pot tax came in too high,” explains State Senator Pat Steadman. “It’s that every other revenue came in high.”

Steadman is currently working on a bipartisan bill that would ask voters if the state government can keep the $60 million. Otherwise, the money will be returned to consumers, growers, and the general public as a tax refund.

Sources:

http://www.nytimes.com/2015/04/02/us/colorado-lawmakers-scramble-to-keep-millions-in-marijuana-taxes.html?_r=0

Photo Credit: Jasen Miller

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Alaska Lawmakers Shoot Down Proposed Ban On Marijuana Edibles, Concentrates

4/01/2015

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Alaska lawmakers have killed a proposed ban on the future sale of recreational cannabis concentrates and infused edible products, Alaska Dispatch News reports.

Legislators voted 14-6 against the ban, which would have come into effect in two years had it passed. The ban was proposed as an attachment to SB 30, a bill addressing the criminal status of marijuana in Alaska.

SB 30, which passed the Senate by a vote of 17-3, maintains that cannabis is a controlled substance under state law. In short: the felony limit for marijuana possession will be 16 ounces, and the home cultivation limit will be 25 plants. The bill also clarifies penalties for open-container laws in regards to marijuana, and establishes that the crime of providing marijuana to someone under the age of 21 will be a misdemeanor.

The bill now moves to the House for approval.

Alaska voters approved recreational marijuana in November, 2014. Retail marijuana sales could be underway in Alaska as early as 2016.

Sources:

http://www.adn.com/article/20150330/alaska-senate-passes-marijuana-crime-bill-shoots-down-concentrate-ban

Photo Credit: EvinDC

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Michelle Sexton

Michelle Sexton: Cannabis Testing for Safety and Consistency

3/31/2015

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PhytalabWe recently had the pleasure of interviewing Dr. Michelle Sexton of PhytaLab, a cannabis testing lab serving medical and recreational cannabis businesses in Washington State. Dr. Sexton founded PhytaLab in 2010, and she has also served as a consultant to the Washington State Liquor Control Board on the implementation of I-502, the state’s bill which led to the legalization of marijuana for recreational use. She is a member of the International Cannabinoid Research Society, the International Association for Cannabinoid Medicines, and the Society of Cannabis Clinicians, and she is also an avid surfer and rock climber.

In this interview, Dr. Sexton discusses how she wound up specializing in medical cannabis, what she thinks of the current state of the legal market in Washington, and why it’s important for commercially-produced cannabis to undergo scientific testing.

Read the full interview below:

How did you first get involved in cannabis testing?

I became interested in the potency of cannabis when I was working as a postdoctoral fellow at the University of Washington. I was learning to measure endogenous cannabinoids in human serum and studying the role of this system in neuroinflammation. My research project hypothesized that Cannabis was a potential “supplement” to a deficient endocannabinoid system in patients with Multiple Sclerosis.

During the time of my studies, medical cannabis use was becoming increasingly prominent. By gaining understanding of the pharmacology of plant cannabinoids in humans, I became curious about the quality of the product that was being dispensed, and their health effects. It occurred to me that, as a doctor, I could be more effective to patients by understanding potency and by learning how to work with milligram doses. A start on this would be to measure percent potency in flower or other products and build on that.

At the time, hardly anyone was providing cannabis analytics (two laboratories nationwide), and conventional laboratories would not handle a schedule I drug, and there was no lab offering this service in Washington State. So protocols were non-existent from a business perspective. I took what I had learned in the laboratory about assay validation and Good Laboratory Practice and applied it to plant analytics, which I already also had some experience in (other paper). I wanted to expand my knowledge about the Cannabis human relationship.

Were there established protocols and methods at the time?

There were methods published in the scientific literature, but it was a little difficult to get my hands on reference standards, which still are not certified. I was able to learn from a couple of reputable people and went back to the lab and replicated their method.

When did PhytaLab come into existence, and what led to its inception?

Phytalytics, now PhytaLab, came into existence in 2010. I knew that my postdoc would be over in the fall of 2011 and I was thinking a lot about my career path. Because I really wanted to focus on whole-plant cannabis research, and seeing that it would be practically impossible under the current Federal laws, I decided to embark on a ‘private’ research initiative by collecting plant data in the private sector. Because I am also a practicing doctor and can recommend Cannabis in Washington State, I had the unique opportunity to have a very intimate “window” into both the potency of what people were using and the clinical effects. I set out to do to his and by learning from people like Arno Hazekamp who were already doing it, and through a couple of laboratories where he had consulted. Arno’s doctoral thesis was on the topic of cannabis and analytics.

What has been one of the greatest obstacles that you have faced while growing the business?

I think one of the greatest “obstacles” has been what is known as “citizen science” and in the case with Cannabis, the extension of the concept to include “citizen medicine”. Due to the federal status, crowd-sourced science has virtually replaced clinical research, being “loosely” conducted without the usual controls or theoretical frameworks. I think that the Cannabis community was really skeptical of analytical laboratory work in the beginning, particularly when the result did not come back as they would have hoped! And in this information age, everyone is armed with data and evidence so often it seems like professionals have no platform any more. So labs are still under extreme scrutiny and all of the citizen scientists are out there conducting their own proficiency tests across labs. I think I would prefer if clients came to our lab because they see where our expertise has come from and it speaks to them. The industry has a long way to go to bring black market labs to a level of proficiency of academic scientists. Another major obstacle has been my gender, which is always difficult in science. This would mirror the general gender issues in the cannabis industry. I think my credibility was questioned because of being a woman scientist.

Was there a particular event that served as a catalyst for cannabis testing to come into the public eye?

One particularly memorable event occurred in the spring of 2013, when the WSLCB brought together the handful of labs on the West coast, to discuss the analytical sector of the emerging legal landscape in WA. We formed a core of consultancy, and intimately involved in that process was the publishing of the American Herbal Pharmacopoeia Cannabis Monograph. I had been acting as a technical advisor and editor on the preparation of the monograph. The LCB adopted the Monograph to guide the quality assurance testing of the retail product in WA State. Later I was hired to write a laboratory certification checklist for the LCB and the industry was really waking up to the need of greater professionalism and proficiency. So, the publication and subsequent adoption of the Cannabis Monograph by the WSLCB and this meeting that has come to be called the “summit” were a real turning point. It resulted in the first time that a State stepped up to create standards for testing and quality control of Cannabis.

Not only testing has been affected by alliance with the herbal products as an industry. The American Herbal Products Association also developed a Cannabis Committee, where industry leaders came together from many States to write regulatory guidelines for producing, processing dispensing and testing Cannabis. This has led to a certification process, Patient Focused Certification, that was industry-driven and informed, and has been adopted in Washington DC.

For states looking to create regulated cannabis markets, what would you say the most important considerations are regarding mandated testing?

I would say “don’t overthink it”. It is after all a plant, not a pharmaceutical and not necessarily a dangerous substance, based on toxicology data. I think Cannabis should be clean and people should know the potency with reliable accuracy as well as anything that was applied to it during the growing process. If people want to claim that it is “medicine”, it would probably be best to conform to the standards of other herbal products that we are allowed to make claims about. I think that informed choice is always in the best interest of people in general.

For consumers, what are some of the greatest risks related to a lack of quality assurance testing?

Concentrates, or a food product, “edibles”, that have had flower extracted into butter, or made from a concentrate are the riskiest items in my opinion. It is imperative to know how potent an edible product is, and to be fully informed about the potential short and long-term consequences of high dosing. From a pharmacologic perspective, typically there can be “too much of a good thing”, with opiates serving as a good example. For example, from inhaling a rolled joint of about 15% THC you might inhale about 10 mg. Inhaling a concentrate “dabbing” might provide about 50 mg THC delivered directly to the blood stream. Although tolerance does develop, who knows if it is in the best interest of our endocannabinoid system. Additionally, “results may vary” across individuals particularly with edibles because liver enzyme metabolism will play a role in the potency.

Additionally, anything that has been applied to the plant is likely to be concentrated during an extraction process, such as pesticides, fungal toxins and even the naturally occurring terpenoids. So particularly with concentrates, there needs to be a high level of scrutiny and anything that was put on the plant during the growing process needs to be reported and quantified. Terpenoids are known to be toxic at more than “drop” doses.

Is there anything in Washington’s regulatory framework with regard to testing that you would change?

There are probably a number of things that could be improved upon and we are addressing these items with the State currently. However, without any enforcement, it’s hard to say who in the Industry will comply with the states rules. 1) There has to be standardized sampling. 2) Proficiency testing is an imperative, for every test that is being performed. 3) It would be in the best interests of the Industry for labs to agree upon some processes and their validity, such as microbiological testing. We of course need more research to inform these things, which is very difficult under the current legal frameworks. It is great that now professional organizations are taking an interest, such as the American Oil Chemists Society (AOCS), the Association of Official Analytical Chemists (AOAC). These are preparing to validate methods and provide proficiency testing. This is very much needed for an industry that is coming out of the black market and into the light. There are a lot of what I term “black market practices” in the laboratory sector. It will be in everyone’s best interest for the professional community to shine their lights into the processes.

If cannabis were to be re-scheduled at the federal level, should testing regulations ultimately come from the FDA, or should they be left to individual states or independent organizations?

Once scheduling change happens, it will be a game-changer with regard to professional organizations getting involved, such as the ones I’ve already mentioned. The US Pharmacopoeia would step in, the AOAC would participate, and standards and methods would proceed down the paths that other standards and methods take. This would affect all of quality control. The FDA only gets involved if something is being developed as a “drug”, or for the purpose of marketing it to treat a specific condition. So I think commercial labs could still function under State laws, but large commercial and pharmaceutical grade labs would become involved.

What do you think the future of medical cannabis looks like?

My personal vision is the same as for all botanical medicines: enough for everyone, without excessive government intervention. I hope that Cannabis will continue to be a “Gateway Herb” to other natural medicines and continue to drive a healthcare revolution. I think patients should have whatever variety of Cannabis they like or find effective, and that it can be be grown in their own backyards and processed in their own kitchen, should they choose. Should someone want to make a medical grade product and sell it to others, it should be subjected to the same rigorous standards as other herbal products manufactured under Good Manufacturing Processes (GMP). If someone wants to make a claim about a product (“cures cancer”, or “treats anxiety”) it should go through the same FDA process that other medicines must endure to validate such claims. I also envision pharmaceutical grade products that can be administered IV in the emergency room, such as CBD for traumatic brain injury or stroke. Cannabinoids for all!

Thank you, Michelle, for providing such great insight on a part of the industry that doesn’t get enough exposure! We’re looking forward to hearing more from you about PhytaLab’s continued growth and success in the future.

If you have questions for Dr. Sexton, please feel free to post them in the comments below or to get in touch via the PhytaLab website.

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New Religious Freedom Law in Indiana Effectively Legalizes Marijuana Consumption

3/31/2015

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When Indiana lawmakers passed the Religious Freedom Restoration Act last week, they appear to have inadvertently opened the door to legal marijuana consumption — but only if it’s used as part of a religious act or expression.

The nuance in the new law was first caught by Indiana lawyer Abdul-Hakim Shabazz, who also identified several religions that rely on cannabis for various rites or rituals. “I would argue that under RFRA, as long as you can show that reefer is part of your religious practices, you got a pretty good shot of getting off scott-free,” Shabazz writes.

Furthermore, in a timely development for Indiana weed smokers, there’s a new church coming to town: “On Friday, the same day Governor Mike Pence signed the Religious Freedom Restoration Act, the First Church of Cannabis sought and received approval from Indiana’s secretary of state to operate as a church,” VICE News reports.

The RFRA’s stated intention is to protect religious freedoms, but one direct result is giving businesses the right to discriminate against the LGBT community. This may have been a form of retaliation against the state’s 2014 gay marriage law. The political fallout surrounding the law, however, seems to have caught lawmakers by surprise: people around the nation are angry. Some states have already enacted bans on state-funded travel to Indiana, and several sports organizations — including the NCAA and NFL — are being pressured by the online community to take their business out of Indiana until the law is changed.

Sources:

https://news.vice.com/article/indianas-new-religious-freedom-law-may-have-unintended-consequences-including-legal-weed-smoking

http://indypolitics.org/2015/03/23/rfra-and-reefer/

Photo Credit: Nick

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Online Cannabis Industry Resource Adds New Categories to Marijuana Business Directory

3/30/2015

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Ganjapreneur, an online business resource dedicated to the cannabis industry, has expanded its business directory to include seven new categories of industry services. The directory focuses on companies that provide B2B services to cannabusinesses, as opposed to medical cannabis dispensaries or retail recreational shops that target actual cannabis consumers.

New categories have been added to include investment groups who support start-up marijuana businesses, political organizations who advocate on behalf of legalization and drug policy reform, and trade associations who work to educate and organize business owners. There are also now sections of the directory dedicated to cannabis testing labs who test for contaminants and potency in samples from state-licensed growers or producers — and to laboratories that offer premium hash and cannabis oil extraction services. Providers of commercial grow lights, seeds and soil, and other equipment used for both indoor and outdoor agriculture can also create business listings. Finally, the directory has added categories for marijuana industry job boards as well as publishers who report on marijuana news and culture.

Ganjapreneur’s business directory was launched in 2014 in an effort to help professionals, investors, and entrepreneurs connect with service providers who specialize in the cannabis industry. Since then, businesses have been able to add a listing for free as part of a limited-time offer. Currently, a listing displays the company’s name, location, a brief description, a link to the company’s website, and contact information such as an email address, phone number, and various social media accounts. There will be options available soon for an upgraded registration.

About Ganjapreneur:

Ganjapreneur launched in July 2014 and has since established a significant presence in the cannabis business world. The website regularly publishes interviews and commentary from leading minds in the industry, and has also launched a B2B business directory, a live feed of job listings from marijuana job boards, a domain name marketplace for start-ups and venture capital firms, and a mobile app for Apple and Android devices which aggregates daily cannabis industry news, business profiles, and other information.

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Willie Nelson Unveils Personalized Cannabis Brand

3/30/2015

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Country music star and legalization advocate Willie Nelson is taking his relationship with cannabis to the next level. The musician and his family have announced plans for the next retail marijuana brand to be tied to a major celebrity: Willie’s Reserve.

Hemp and marijuana lobbyist Michael Bowman, a representative of the new brand, spoke on the subject in a recent interview with The Daily Beast:

Willie has spent a lifetime in support of cannabis, both the industrial hemp side and the marijuana side. He wants it [the brand] to be something that’s reflective of his passion. Ultimately, it’s his. But it was developed by his family, and their focus on environmental and social issues, and in particular this crazy war on drugs.

The company plans to open stores in states that have legalized marijuana, with the first stores coming as early as 2016. Stores will offer Willie’s Reserve brand cannabis, as well as products from other producers that have met the brand’s quality requirements.

Bowman calls this the “anti-Walmart model,” and says there will be “a certain standard by which growers have to account for carbon and such, in a way that empowers small growers who are doing the right thing…. It’ll all fall under that umbrella of ‘here’s our core beliefs, and here’s our mission statement,’ and they will be a part of that, to be a part of us.

Willie’s Reserve is not the first marijuana brand announced with a celebrity’s name and reputation behind it: Privateer Holdings and the family of Bob Marley unveiled plans earlier this year for Marley Natural, which is expected to be shipping out products by the end of the year.

Sources:

http://www.thedailybeast.com/articles/2015/03/26/willie-nelson-is-launching-his-own-brand-of-weed.html

Photo Credit: Vladimir

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Arizona’s Potential for Medical Marijuana Cultivation is Over-Capacity

3/30/2015

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Data released by the Arizona’s Benchmark Commercial Real Estate (BMCRE) shows that the state has approved far more square footage than necessary for the cultivation of medical marijuana, Marijuana Business Daily reports.

In 2014, the state’s 60,000 medical marijuana patients bought just 20,000 pounds of cannabis, less than a fifth of the Arizona’s current yearly production capacity of 106,000 pounds. This production takes place on the current one million square feet of completed cultivation facilities, but the state has approved more than 26 million square feet of land for possible future cultivation sites.

Even if Arizona voters were to approve a recreational ballot measure next year, market demand would increase by only about 50%. If this were the case, producers could meet the demand with only an additional 500,000 square feet of facilities.

It’s likely that the the vast majority of the 26 million square feet approved for cannabis cultivation will not be used as such. The risk, however, is that cannabis industry investors may be tempted by the availability of land to build facilities that aren’t needed. Furthermore, Arizona’s Department of Health Services doesn’t release data regarding cannabis facility locations and square footage, making it difficult to get a good sense of the market.

Recent events in Washington State should serve as a warning regarding the downsides of flooding a market with unneeded supply: unpredictable prices and downticks in profitability harm investors, producers, retailers and buyers.

Sources:

http://mmjbusinessdaily.com/chart-week-arizonas-cannabis-cultivation-capacity/

Photo Credit: Mark

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Texas Hemp Bill Appears Before Agricultural Committee

3/28/2015

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Both of Texas State Representative Joseph Farias’ (D) bills relating to industrial hemp in the state were heard by the Committee on Agriculture & Livestock on March, 18 – the possible first step to the bills being moved from the committee and to the floor for a vote.

HB 557 would allow hemp cultivation for research at Texas colleges while HB 1322 would allow hemp to be grown and processed by farmers in Texas. According to Farias’ testimony the Texas Department of Agriculture would adopt rules and administer fees for licensing and farmers would have their license revoked for growing marijuana.

During the hearing, at which testimony from farmers and business owners was heard, Rep. Drew Springer (R) questioned why licenses would be necessary because no other crop requires a license in the state and hoped that the process would not require fingerprinting.

Farias said the license would prevent marijuana growers from potentially disguising their crops as hemp and said the Agriculture Department would be responsible for rules regarding fingerprints, but that he “hoped” that would not be involved.

During his testimony Farias told the committee that in 2014 Texas imported $621 million in industrial hemp products, including “clothing, paper, auto parts, building materials, hemp foods and body care.”

“Hemp is the next great Ag-product in Texas,” Farias said.

Shelia Hemphill, Policy Director for Texas Hemp Industry Association, testified that the Texas statute is patterned after Tennessee’s legislation and that, contrary to popular belief, hemp production is allowed under both federal and Texas state law.

According to Hemphill, the 2015 federal budget includes language prohibiting the Drug Enforcement Agency from interfering with hemp manufacturers in states where hemp production is allowed. She also said the Texas statute that outlaws marijuana includes language excluding hemp from the definition of cannabis sativa.

Hemphill was also questioned by Rep. Springer who suggested that TDA reports show that hemp would not have a yield to match cotton, a staple crop for Texas farmers. Hemphill pointed to documentation from the 1930s showing a yield of “200 pounds per acre in a 60 to 90-day growing cycle” easily rivaling cotton production.

Two fourth-generation Texas farmers also testified that hemp could change the course that their respective farms are on; noting that droughts have plagued their family businesses and hemp is drought resistant.

Will Shuman, of Shuman Farms, testified that cotton has become “risky.” He said a 50-pound bag of cotton seed, which covers 10 acres, costs $400 and the chemicals that he needs to help grow the cotton eats into the margins from the crop.

“I don’t see any reason why Texas farmers cannot produce this,” Shuman said.

Austin Rice, of Rice Ranch, told the committee that he presently has “hundreds of acres of dormant fields” and he is looking for alternatives as his production prices are going up while commodity prices are going down.

Several Texas business owners testified that Texans prefer locally sourced products and they were already in talks with potential Texas-based hemp producers to source their needs.

Derek Cross, representing both Hemp Solutions and Colorado Hemp Tea, said that he has already started a seed bank for potential farmers in Texas. Cross, a resident of Frisco, Texas who grew a small hemp farm in Colorado, said that his hemp seed repeatedly tested at .02 percent THC (the psychoactive ingredient in marijuana), falling under the threshold allowing for seed to be classified as hemp.

Cross testified that his small farm — less than one acre – would have been worth $20,000 had he been able to make profit from it. However, because his is a pilot farm, he was unable to sell what he produced. He was able to keep the seed which he will, eventually, be allowed to sell to farmers in his home state. Cross also explained that hemp would help farmers remediate soil subjected to chemicals, such as those used to help cotton grow, through a process called phytoremediation.

Phytoremediation uses green plants to help stabilize contaminated soil.

Christopher Brown, owner of Canyon Lake Texas-based cosmetic company Hemp 360, explained that he imported 600 gallons of hemp oil from Canada in 2014 which cost him $30,000 and testified that his neighbors could making that profit instead of it being exported.

Currently just 21 states have regulations in place that allow the cultivation of industrial hemp. Neither of the Texas bills would have any fiscal impact on the Agriculture Department if passed.

Kevin Griste, president of K-Global Fibers located in Bryan, Texas, called hemp “one of the most amazing plants [K-Global] has come across.”

“This is something that would grow throughout the state of Texas,” Griste said. “Not only is it an investment in us and hemp but an investment in Texas.”

The committee did not hear any testimony against either of the measures. Both bills are still in the committee.

Photo Credit: Matt Turner

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Drug Cartels Funded Sex Parties for DEA Agents in Colombia, DOJ Reports

3/27/2015

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A new report from the Department of Justice has revealed that DEA agents posted in Colombia engaged in private sex parties with prostitutes provided by local drug cartels. Some of the involved individual’s corruption ran even deeper: three supervisory special agents were reportedly “provided money, expensive gifts and weapons from drug cartel members,” USA TODAY reports.

The issue was never reviewed by the DEA’s Office of Security Programs, and the involved agents only received suspensions for up to ten days — an incredibly mild punishment, considering the DEA’s unforgiving crackdown on American citizens for drug-related crimes that has spanned generations and torn apart countless American households, particularly in communities of color.

The report was conducted by the DOJ inspector general as part of an investigation into federal law enforcement agencies and their handling of sexual misconduct and incidents of harassment.

According to the report, “Most of the sex parties occurred in government-leased quarters where agents’ laptops, BlackBerry devices and other government issued equipment were present … potentially exposing them to extortion, blackmail or coercion.”

To make matters worse, “If these special agents had served as government witnesses at the trials of these defendants, their alleged misconduct would have had to be disclosed to defense attorneys and would likely have significantly impaired ability to testify at trial,” the report reads. The defendants settled for a plea agreement and a trial was avoided.

Sources:

http://www.usatoday.com/story/news/nation/2015/03/26/dea-brothel-prostitutes/70482964/

Photo Credit: Lwp Kommunikáció

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Italian Lawmakers Pass Motion to Legalize Cannabis

3/27/2015

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Lawmakers in Italy signed a motion last Monday to legalize marijuana throughout the country. The proposal’s main support came from the dominant center-left Democratic Party but was backed by some on the right as well.

Sen. Benedetto Della Vedova, who introduced the bill, is a former member of Italy’s Radical Party, which has campaigned for marijuana legalization for more than four decades.

Speaking with reporters, Della Vedoza stated that the bipartisan support for the motion “shows that even in Italy, a pragmatic approach, based on a rigorous cost-benefit analysis, is now increasingly popular in the political and cultural debate, not only outside but also inside the parliament.” He promised that the proposal would be made into a bill soon.

Italy has already passed decriminalization, and a medical marijuana law was passed in 2007.

Last year, in response to human rights groups protesting the country’s swelling rate of imprisonment, Italy’s highest court overturned a 2006 law that classified marijuana alongside cocaine and heroin.

Source:

http://www.ibtimes.com/marijuana-legalization-italy-motion-legalize-cannabis-receives-bi-partisan-support-1849824

Photo Credit: Jorge Cancela

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Ganjapreneur Announces Podcast Interview Series for Marijuana Business Owners, Investors, and Activists

3/26/2015

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Ganjapreneur, a website dedicated to cannabis business news and culture, has recently published the first episode of their new podcast, featuring Kristin Nevedal of the Americans for Safe Access Patient-Focused Certification Program. The podcast is hosted by Shango Los, a cannabis industry brand strategist and PR consultant who founded the Vashon Island Marijuana Entrepreneurs Alliance in Washington State.

The podcast series was created to educate and inspire cannabis industry business owners and aspiring entrepreneurs. In each episode, Shango Los will interview a prominent business owner, activist, investor, or other player in the cannabis industry about a topic relevant to “ganjapreneurs,” or entrepreneurs who are pursuing opportunities in the legal cannabis industry. Featuring Kristin Nevedal, the first episode is geared toward certification programs for medical and recreational cannabis providers, and the importance of standards and self-regulation in an industry which tends to receive contradictory and constantly-changing directives from the government and official regulatory bodies.

In the interview, Nevedal discusses how the ASA’s Patient Focused Certification program came into existence, what its goals are, and how she has contributed to its development. Nevedal explains, “The motivation had a lot to do with bringing product safety protocols into the medical marketplace and also establishing cannabis as a botanical medicine, as opposed to moving it into more of a pharmaceutical realm. Our executive director at Americans for Safe Access, Steph Sherer, had this great plan and facilitated the partnership with the American Herbal Products Association and the American Herbal Pharmacopoeia, which allowed us to work within the botanical industry and with cannabis experts to create guidelines that were modeled after what we see being used and approved by the FDA today for botanical and nutraceutical products in the US.”

The interview also covers Nevedal’s experience as a community organizer in Humboldt County, California, with the Emerald Growers Association. Describing the group’s growth and progress, Nevedal says, “It’s great for us, because we bring all of this information together from all over the state and then we understand better what kind of programs we need to develop to help move sustainability forward. […] We’re sharing these messages about best practices and sustainability at a much broader level than when we started. That really is changing a larger conversation about cultivation.”

The full podcast is available via Ganjapreneur’s website.

About Ganjapreneur:

Ganjapreneur launched in July 2014 and has since established a significant presence in the cannabis business world. The website regularly publishes interviews and commentary from leading minds in the industry, and has also launched a B2B business directory, a live feed of job listings from marijuana job boards, a domain name marketplace for start-ups and venture capital firms, and a mobile app for Apple and Android devices.

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Canada’s First Publicly Traded Recreational Marijuana Firm Targets U.S. Markets

3/26/2015

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A Toronto-based company has become Canada’s first publicly-traded recreational marijuana firm. Nutritional High International, Inc., which produces oils and extracts as well as a variety of edibles, began trading Monday on the Canadian Securities Exchange.

The firm raised $1.6 earlier this month before closing its initial public offering, and on Monday it ended the day trading at 8.5 cents a share.

Nutritional High is in an unusual position as a publicly-traded company in a country where the recreational use of marijuana remains illegal. Canada has a medical marijuana market, but the production of oils, extracts, and edibles are illegal even for medical marijuana companies. Canada’s public health department, Health Canada, restricts the use of marijuana for medical patients to the dried plant, due to the lack of research concerning other products. Canada’s Supreme Court is currently hearing a case challenging this restriction.

In light of restrictions at home, Nutritional High has created a business model that aims to take advantage of the increasing number of state recreational markets throughout the U.S. The firm will focus on producing infused edibles and oils, which it sees as having the biggest profit margins.

Currently, the firm is most active in Colorado, but may eventually expand into Washington, Oregon, Nevada and Minnesota.

Sources:

http://www.huffingtonpost.ca/2015/03/23/nutritional-high-recreational-marijuana_n_6926356.html

Photo Credit: Cannabis Culture

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D.C. Activists Getting Creative in Fight for a Marijuana Industry

3/25/2015

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Legalization advocates in Washington D.C. have been getting creative in their attempts to overturn an act of Congress that blocks their ability to conduct marijuana business. Last week, members of the D.C. Cannabis Campaign dressed in tricorner hats and other iconic “patriot” costumes and stormed the office of Congressman Jason Chaffetz, the Republican Representative of Utah who blocked the voter-approved Initiative 71. Chaffetz — who threatened D.C. Mayor Muriel Bowser with jail time if she implemented the legalization law — was offered a glass pipe as a peace offering.

On the same Tuesday, D.C. Brau Brewing unveiled their “Smells Like Freedom” beer, a green-tinted IPA that both smells and tastes like marijuana (yet does not contain actual cannabis). Chief executive and co-founder of D.C. Brau Brandon Skall says his company released the beer in solidarity with efforts to tax and regulate marijuana sales, so that residents of the District can enjoy the infrastructure revenue from that market.

“There’s no reason we shouldn’t be able to benefit the same way they do in Colorado,” Skall told The Washington Post. “You walk into a D.C. public school, you see empty bookshelves, you seen underfunding, you see teachers going out and spending their [own] money to buy kids supplies. We should be able to benefit the same way that other states do. . . I’ll tell you straight up, I don’t smoke pot, but I believe 100 percent in people’s freedom to do so. I think that if we didn’t have people standing for the end of prohibition . . . this business would not be here today.”

Last year alone, the state of Colorado reaped $76 million in taxes and fees from its recreational and medical marijuana industries. While D.C.’s voter approved ballot initiative technically “legalized” marijuana, Congress has forbade the selling of the drug, which cuts the local government out of any potential tax revenue from sales.

Due to the control Congress has over D.C. spending, efforts to reform marijuana policy in the District have often been squashed by federal lawmakers, who stalled the city’s medical marijuana program for over a decade.

Mason Tvert of the Marijuana Policy Project co-directed the campaign in Colorado to legalize marijuana in 2012, and says that he’s optimistic about D.C.’s ability to overcome the  Congressional block against marijuana sales. According to Tvert:

“There appears to be strong support among D.C. officials for regulating and taxing marijuana. We believe they have the ability to do so this year by using reserve funds, which federal law allows them to use to take actions in the interest of public health and safety. Using funds to remove marijuana from the underground market and start controlling marijuana cultivation and sales could not be a better example of an expenditure being made in the interest public health and safety. We hope the mayor and council members will continue to stand up for the voters and take this course of action. We expect to see the District to adopt a system of regulating and taxing marijuana within the next year or two, if not this year.”

Photo Credit: Doug Kerr

 

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IRS to Refund Denver Dispensary for Tax Fines

3/25/2015

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The Internal Revenue Service has stated that it will refund a Denver medical marijuana dispensary that paid its taxes in cash.

The IRS had fined the dispensary, Allgreens, for paying its taxes in cash after rejecting the dispensary’s claim that its inability to access banking services forced it to do so. The IRS requires companies to pay its employee retention taxes electronically or pay a ten percent fine, except in certain cases.

In response, Allgreens challenged the fine in U.S. Tax Court, claiming that the IRS rules were unfairly applied to a compliant company that had paid its taxes on time.

A spokeswoman for the IRS refused to comment on the settlement, and it’s unclear whether the court’s decision will extend to other dispensaries that have been similarly fined for paying in cash due to a lack of banking service. Allgreen’s attorney, Rachel Gillette, thinks that it will: “Not applying (the penalty) to other businesses uniformly would be as ludicrous as having applied it in the first place.”

The agreement with the IRS marks the first federal concession to the cannabis industry since issuing guidelines to bankers on working with dispensaries in February 2014.

Source:

http://www.thecannabist.co/2015/03/19/irs-deal-will-refund-fines-denver-pot-shop-pays-taxes-cash/31904/

Photo Credit: eFile989

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Marijuana Dating App Gains 2,000 Users Daily

3/24/2015

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With the recent push for legalized marijuana in many states across the U.S., a plethora of cannabis-themed ancillary businesses have seen explosive growth in anticipation of a boom in the new industry. One such business is a Tinder-style dating app known as “HighThere!” which matches cannabis consumers based on their preferred method of consumption and what they like to do while smoking marijuana.

Todd Mitchem, co-founder of the company, recently discussed the app’s rapid rise in popularity with Ganjapreneur, a website dedicated to cannabis business news and culture. According to Mitchem, the HighThere! app has gained more users in its first six months than Twitter. “We are starting to see the mainstream acceptance take hold,” he said. “HighThere! is getting so many users so quickly, more than Twitter had in the first 6 months of their operation, in fact.”

In the interview, Mitchem also discusses his career prior to getting involved in cannabis and described how the free app plans to eventually turn a profit. He says that he does not plan to emulate the monetization strategy of other similar apps, because “charging a user is like inviting a bunch of people to your exclusive party then at the last moment charging them a cover to get in. Not cool dude.”

In order to find matches for a particular user, Mitchem says, the app asks “a few very specific onboarding experience questions. Our entire algorithm is based on experience matching so that people enjoy time with each other.” The method seems to be working, as Mitchem says it attracts roughly 2,000 new users each day.

The full interview is available to read on Ganjapreneur’s website.

About Ganjapreneur:

Ganjapreneur launched in July 2014 and has since established a significant presence in the cannabis business world. The website regularly publishes interviews and commentary from leading minds in the industry, and has also launched a B2B business directory, a live feed of job listings from marijuana job boards, a domain name marketplace for start-ups and venture capital firms, and a mobile app for Apple and Android devices.

Press Release: http://www.prweb.com/releases/marijuana/app/prweb12601191.htm

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MJ Activist and Former Reporter’s Alaska Cannabis Club Raided

3/24/2015

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Former news reporter and marijuana activist Charlo Greene, who caused a minor sensation on the internet last year by quitting her job on live TV last September, has made the news again, albeit not of her own volition. Police raided Greene’s Alaska Cannabis Club last Friday and served search warrants after having received reports of illegal marijuana sales.

Anchorage police confiscated marijuana and impounded a Dodge Dakota and a Jeep Liberty. The search warrant states that marijuana plants and derivatives, including “resins, oils, hashish or other THC derivatives, concentrates, [and] edibles” were being concealed in the cars and the club.

Despite the raid, Greene, whose legal name is Charlene Egbe, said she reopened the club the next day.

In an interview with KTVA, Greene defended the club as a medical dispensary: “We don’t sell any recreational marijuana. We don’t sell any medical marijuana. This is a place for cardholders to come and share their own cannabis.”

Alaska voters approved a ballot measure last year legalizing the recreational use of cannabis, but its sale remains illegal. The Anchorage Assembly also passed an ordinance in February that made it illegal to produce marijuana concentrates with flammable solvents without a valid license.

Sources:

http://uproxx.com/webculture/2015/03/charlo-greene-cannabis-club-weed-alaska/

http://www.theguardian.com/us-news/2015/mar/22/alaska-police-raid-former-tv-anchor-marijuana-club

Photo Credit: mista stagga lee

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Todd Mitchem: Creating a Cannabis-Friendly Dating App

3/20/2015

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One of the most common misconceptions about cannabis is that it has the same effect on everyone who consumes it. This, however, couldn’t be further from the truth: some people are social smokers, some people want to work out when they are high, and some people would rather cozy up in front of a movie on Netflix with a bag of gummy worms (or kale chips). With modern technology helping people find companions for virtually every other type of activity they might want to partake in, it seems only natural that an app would emerge to help people find companions for smoking weed.

We recently had the pleasure of interviewing Todd Mitchem, the entrepreneur behind the Tinder-esque dating app “HighThere!” which launched recently. HighThere! is a free-to-use mobile app which connects cannabis consumers based on their preferences for consuming cannabis and how it makes them feel.

Read the full interview below:

Ganjapreneur: When did you first conceive of the HighThere! app?

Todd Mitchem: Last summer all the co-founders got together and came up with it as we discussed the complex connection problems people who use cannabis face.

How does HighThere! connect cannabis consumers?

We built a cool platform that connects people based on experiences they wish to share instead of petty things like age, weight and hair color. Those are surface things. We believe the cannabis consumer cares more about experiencing things with others. So we ask you simple questions that build an experience-based profile with everything from how you consume cannabis, to your energy level while you’re high, to the types of things you like to do while high. The algorithm connects you based on this and then you tell your story (in 420 characters or less of course) and off you go! We want people to connect to chat, go out, stay in, etc, but more importantly we want to build an amazing social connection app for all cannabis consumers.

Interesting! What kind of questions do you ask your users?

We ask a few very specific onboarding experience questions. Our entire algorithm is based on experience matching so that people enjoy time with each other.

Roughly how many users do you have currently, and how quickly have you been getting new users?

We have seen amazing growth. As I write you the last count was getting close to 20k NEW users in less than 2 weeks. To put this in perspective, other apps in the space took 6 months to reach this level. We grow roughly 2k users each day.

Were you involved in the cannabis industry at any level prior to working on HighThere?

Before High There! I was working in the cannabis industry first as the chief revenue officer for a brand of vape that I helped catapult to national brand status both with PR and a robust licensing structure. When that contract ended I then went on to consult in the industry and actually re-branded the company now called Mindful (seen on 60 min). When I met my business partners in HighThere! it was perfect timing as I also had co-founded two other companies, CannaSearch (with Ashley Picillo) and I Choose Cannabis, a dedicated mainstream cannabis organization.

Prior to cannabis, as the Senior Vice President of Business Development for a culture and management consulting firm called Eagle’s Flight, representing major brands, I worked to coach executives on dynamic leadership, structural excellence and strategic business applications. This included companies such as Anheuser-Busch, Microsoft, H&R Block, Purina and Yum Brands. My role had me managing large teams of brand change, management, and leadership experts to target and solve key performance issues within the companies we represented. I learned my leadership skills from a person who was a nestle executive for 17 years.

Did you fund the business yourself, or did you seek out investors?

We funded ourselves. 300k so far.

How many employees does HighThere! currently have?

Currently 10 including our development team. We are actively searching for a top CTO (chief technology officer) to work side by side with me on developing our next phases. This person will need to live in Denver and be ready to keep our mind-blowing success moving.

At what point did you come up with the brand name?

It just sort of made sense and happened. I have worked with top brands and this is the kind of brand that will become a lifestyle brand. It’s simple, fun and cool. We love it.

Did you need to acquire the domain name HighThere.com from a third party, or was it unregistered at the time?

We bought it from its previous owner.

I understand the app is currently free to download. What is your road to profitability with the company?

We have a philosophy that companies charging their database is a cash grab and not appropriate. I dropped Match because they were charging, I am no longer on Tinder, but I would drop them also with their pay to play platform. Instead, we have built a robust 2.0 money making strategy that will not compromise user private information or ask them to pay. Instead we will be utilizing a proprietary technology to build something unique to the app connectivity space. We believe our users will value this beyond other models. We love our users and we want them to enjoy the experience of High There! Charging a user is like inviting a bunch of people to your exclusive party then at the last moment charging them a cover to get in. Not cool dude.

What do you think the next five years look like for legalized cannabis?

Honestly I am not a predictor, but I think we will see a decriminalized federal system within 3-5 years. I think a full legal system will be based on state by state involvement as it is with alcohol. We are starting to see the mainstream acceptance take hold: HighThere! is getting so many users so quickly, more than Twitter had in the first 6 months of their operation, in fact.

What is one piece of advice that you would offer to aspiring ganjapreneurs?

My main advice is to stop thinking of cannabis and the “cannabusiness” world as fringe. The industry is expanding and the opportunities are non-stop. Pick your specialty. Look to ancillary business ideas that will appeal to a mainstream consumer. And ALWYAS show respect for the hardworking activists who got us here. NEVER treat the traditional “stoner” with disrespect. We are all stoners, including my mom!

Thank you, Todd, for sharing your story with us: we look forward to seeing HighThere! gain more traction and we wish you continued growth and success with your venture!

If you have questions for Todd, feel free to post them in the comments area below or reach out via the HighThere! website.

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North Dakota Legislature Passes Bill Legalizing Industrial Hemp

3/20/2015

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Lawmakers in the North Dakota Senate gave final approval Monday to a bill allowing the farming, processing, and sale of industrial hemp.

House Bill 1436 passed the Senate by a vote of 46-1, with the one dissenting vote coming from Republican Sen. Oley Larsen. The bill passed the House last month by a vote of 87-5, and goes now to Gov. Jack Dalrymple’s desk.

The bill eliminates the need for federal approval for hemp farming in the state and creates a framework allowing the state’s agriculture officials to establish the farming program. In particular, the bill reads: “A license required by this section is not conditioned on or subject to review or approval by the United States drug enforcement agency.”

If Governor Jack Dalrymple doesn’t either sign or veto the bill within three days of its arrival at his office, the bill becomes law automatically.

Source:

http://www.thedailychronic.net/2015/41642/north-dakota-lawmakers-vote-to-legalize-industrial-hemp/

Photo Credit: Public.Resource.Org

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