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Ryan Douglas: Advice for Planning & Scaling Your Cannabis Cultivation Facility

Ryan Douglas is the author of the new book From Seed to Success: How to Launch a Great Cannabis Cultivation Business in Record Time, wherein he breaks down the process of starting and growing a successful cannabis cultivation business. Formerly the master grower for Tweed Inc., Ryan pivoted to cannabis industry consulting in 2016 and since then has gotten involved in scaling up the medical cannabis industry in Colombia with sights set on the international cannabis marketplace.

In this episode of the Ganjapreneur.com podcast, Ryan describes how his years of experience in the horticulture industry growing flowers had made him uniquely qualified to run an industrial cannabis grow operation, offers tips for entrepreneurs who are considering a cannabis cultivation start-up, shares his predictions for the international medical cannabis marketplace, and more!

Tune in to the interview below or through your favorite podcast-listening platform — you can also scroll down to find a full transcript of the interview.


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Read the transcript:

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Commercial: Ganjapreneur is excited to announce the launch of our new YouTube series The Fresh Cut hosted by Cara Wietstock.

Cara Wietstock: Hi, I’m Cara Wietstock, host of The Fresh Cut by Ganjapreneur. In this interview series we get straight to the source and speak with the real people working in the industry. In our first episode, I spend time with Nancy Southern whose current mission is to educate seniors on cannabinoid medicine. She lets us know how to facilitate a comfortable retail setting for older adults and provides product recommendations directly from her own experience. Catch this and all future episodes on YouTube.

TG Branfalt: Hey there, I’m your host, TG Branfalt. And thank you for listening to the Ganjapreneur.com Podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Ryan Douglas, he’s the former master grower for Tweed and a cannabis industry consultant. He’s also the author of From Seed to Success: How to Launch a Great Cannabis Cultivation Business in Record Time.
Before we sort of introduce Ryan and get to know a bit I do just want to say that this book is really comprehensive, really easy to read, even if you aren’t really sort of a cannabis connoisseur, if you will, I think that it sort of simplifies and demystifies, I think the process of starting a cannabis cultivation business in particular. So thank you for sending me the book. Thank you for writing the book. Ryan, how you doing this afternoon?

Ryan Douglas: I’m doing great. Thanks for having me on. It’s a pleasure to be here.

TG Branfalt: So we have a lot to talk about today. Getting through this book. I have a lot of questions about it and sort of the process there. But before we get into that, how did you end up in the cannabis space?

Ryan Douglas: So my background is actually as a traditional grower, so for 15 years before even touching cannabis on a commercial scale I was growing ornamental crops and edible crops in large greenhouses across the US. So I worked in New Mexico, Mississippi, Massachusetts, and Maine. And really, in retrospect, it was the best training, the best foundation for becoming a commercial cannabis grower because 90% of the concepts and the techniques for commercially growing flowers or vegetables directly apply to cannabis.

So for a decade and a half, I was busy kind of learning the ins and outs of commercial plant production. And as cannabis slowly became decriminalized, or at least commercial cultivation was legalized, in some states, I started to transition from flowers and vegetables to cannabis.

TG Branfalt: At what point was it that you’ve sort of looked at the sort of counterculture industry as something viable for you as somebody who is working in a very sort of, I guess, normal industry?

Ryan Douglas: Well, it’s always been a dream. I mean, I’m 44. So I’ve been consuming cannabis for probably 25 years. But I want to be open about the work that I do, I want to be able to invite my parents or my family to see what I’m doing. I want to be able to talk about it openly like we’re doing right now. So just given the status of the laws for the last few decades, it just wasn’t an option for me. So I kind of kept my nose clean, in a sense, and I only grew flowers and vegetables. But it was always the dream. And just in the last five or seven years, everything has really come together for me. So I couldn’t be happier. It’s really an excellent time to be in the cannabis space.

TG Branfalt: Congratulations, man. Not everyone gets to live their dreams. So that’s really great to hear. Tell me about your time at Tweed from 2013 to 2016, you were the master grower. And this is prior to broad legalization in Canada. So what I want to know really is what was sort of the industry like during that three year period that you were there?

Ryan Douglas: So, exciting would be the most accurate description. So I was hired by that company, before they even had a license. I was issued a work permit from the Government of Canada, specifically to come to Ontario to grow cannabis. So I crossed the border, and I joined this company before they had a license or production side or anything. And I helped them develop their cultivation portion of the license application. And then we were, I think, the seventh company to get licensed.

So from that point on, it was just designing the facility, acquiring the genetics, hiring and training the cultivation team and really helping what would soon become Canopy Growth Corporation really launch and expand. So it was probably one of the first instances where we had cannabis companies incorporating technology and equipment from traditional horticulture for the purpose of growing cannabis on a large scale. Because up until that point, given the illegality of it, you really couldn’t go out and source irrigation equipment or growing tables on a large scale, because well, it was kind of sketchy.

But this was the first time it was federally legal, it was very clear what was legal and what was not permitted. You had companies that were raising money, so they had the funds to invest in this stuff up front. And from my perspective, this was the kind of equipment and technology I’ve been using for the last 15 years. So it was a really exciting opportunity to blend traditional horticulture in really a new regulated environment for growing something that I’ve always been a fan of.

TG Branfalt: So let’s talk about… We talked about your experience in one sort of emerging industry or emerging nation, you’re sort of doing this again, in Colombia, the nation of Colombia. What are you learning about what’s going on about how they are approaching sort of medical cannabis? We don’t know… I found out that we don’t know a lot about what’s going on in sort of South America with regard to the sort of revolution that’s happening there. I mean, Mexico, Uruguay, we’re starting to see medical sort of pop up regionally. So tell me about what’s going on in Colombia.

Ryan Douglas: It’s an interesting situation. So from the business side the appeal is that Columbia offers a grower kind of a high volume, low cost opportunity to produce cannabis, extract the essence, the active ingredient, and then export it to markets around the world. Because in Colombia, the conditions are perfect for growing cannabis. So what that means is that as opposed to someplace like Canada, you’re not investing in really expensive technology to either cool the really hot days in the summer, or heat the really cold days during the winter, and you don’t need supplementary lighting, or dehumidification equipment.

So the cost of mounting a production facility in Colombia and the cost of operating is much lower. So from the business side, it’s a very exciting opportunity for them to be a global player in the cannabis industry. On the consumption side, it’s interesting, because really, cannabis is very common here. And it can be grown very inexpensively and even cannabis on the street costs about 60 cents a gram or less.

And so the challenge, I think we’ll see is when we turn it into a medical product, and we create stores where you buy it, and we create a medical system where they give you prescriptions for it. There’s a lot of costs and complication involved, where a lot of people have this stuff growing in their backyard already or they can acquire it really inexpensively and easily. And it’s been that way for decades.

So again, I think the domestic market, it’s yet to be seen how that’s going to play out. But for the majority of the growers, the big players, the goal here, the vision is to be really a dominant, large-scale producer of cannabis with the goal of exporting it to countries that don’t have domestic capacity to produce cannabis for their own consumers.

TG Branfalt: Can you just… I mean, I know that you might not be able to say exactly, but can you say exactly where those nations might be that don’t have the conditions?

Ryan Douglas: Yeah, so even… Let’s just think about the next five years globally. Without a doubt, we’re going to see more and more countries legalize cannabis consumption. Usually they do it for medicinal use initially and a couple years later it’ll become adult use or recreational use. So the minute that law is passed, the citizens of that country have the legal right to possess and consume cannabis. But when you think about licensing and preparing land and building a greenhouse and starting crops and harvesting, and you’re looking at a minimum of 18 months before you can actually sell medicinal product to the patients that now legally have a right.

So countries like Colombia, if they’re already producing at a large scale, it’s just a question of changing the shipping label on their products. So what they want to do is really meet the demand of a newly legalized market in a new country for the first couple of years until they build up their own domestic capacity and can provide for their citizens. And then once that country can meet their own capacity, inevitably, there’ll be another country that legalizes cannabis, without domestic capacity to serve it. And then it’s the next 5, 7, 10 years, I think that’s how it’s going to play out for these kind of low cost, large volume producers in Central and South America or other similar places across the globe.

TG Branfalt: It’s incredibly interesting, man. So at what point did you say “I’m going to write a book and sort of give away the stuff in my brain, the secrets.” Man, because again, it’s so comprehensive, and it’s the sort of stuff that people who follow the industry, they might read it, and really… There’s some stuff in there that they might sort of look at and say, “Hey this is new to me.” And then other people who have no experience, are just sort of interested, it might be a little more complicated to them. But I mean, ultimately, you are this wealth of knowledge. And you’re a consultant as well. So why did you decide to write a book?

Ryan Douglas: So two reasons really. The first was directly related to the COVID-imposed quarantine. So at the time, I was living in Colombia and the quarantine, the lockdown was much more strict than in the US. So people could only leave their house once a week. And the day depended on the last digit of your identification card. And so they’re enforcing it, there was a random checkpoints along the road. And there’s checkpoints before you entered the grocery store, the bank or pharmacy wherever you wanted to go.

So I was literally trapped inside my apartment for months, I couldn’t get out to service clients, I couldn’t get out period. So writing the book was one way to stay sane, it gave me something to concentrate on, something to do that I was passionate about, but I could do within the walls of my apartment.

The other reason I wrote the book was because when I go to visit potential clients, if they call me in to have a look at a crop problem, it’s very seldom due to a really specific technical growing issue, like the wrong kind of lights, or the wrong kind of fertilizer. It’s almost always due to decisions that were made early on in the planning phase of the business. So everything like selecting genetics, or hiring the right head grower or designing the facility.

And so even though they’d bring me to their production site to look at the problem, as I start the process of troubleshooting crop problems, nine out of 10 times, it would lead me back to decisions the company made before they even started growing plants. And so the goal of this book is that anybody from any industry can read this and use it as a guidebook to really follow the steps of launching a successful cultivation business, even if you don’t know anything about growing cannabis.

So the goal of writing this was really just to lay out everything I know, everything I’ve done, growing cannabis for Canopy Growth, and then a lot of what I’ve seen by working with consulting clients and just say these are… Really, the book has 10 chapters. And each chapter really tackles a fundamental part of launching a cultivation business. So those are really my two driving factors behind writing the book.

TG Branfalt: Well, I wonder how many people in this industry have experience over three nations? I mean, I think that’s increasingly rare if not unheard of, at least people that I talk to. One of the things that you write in this book, and we’re going to get into the book stuff now, is 90% of businesses overcomplicate their launch. What do you mean by overcomplicate? I mean, it’s sort of a loaded word that can mean a lot of things. So give the meat of that for me?

Ryan Douglas: Yeah, it’s interesting that the majority of work I do with clients is helping them to simplify what they’re doing, getting them to stop doing a lot of stuff, or at least try to break things up in pieces and worry about the majority of what they’re trying to do now a year down the road. So an example of one way that a lot of people overcomplicate the launch of their cultivation business is by starting with too many varieties.

So, I think, as consumers, we think that more options are better. And probably in a lot of cases, that’s true. But as a grower, very few skilled growers can handle more than five or 10 different varieties inside of a commercial plant operation, especially at a startup. Because startups in any industry aren’t perfect, and especially when you’re starting from seed, I’ve had clients in Colombia that wanted to start their operation using upwards of 50 varieties to start with.

And when you’ve got a new production facility, a new grower, a newly regulated system, everything is so new. And then you throw into that mix 50 unknown varieties that you need to grow out, research, refine, and try to position in a way that they’re conducive to growing on a commercial scale. Oftentimes, what happens is the production program implodes. And so you have companies that have raised millions of dollars, and they actually realize several crop failures before they can even sell one gram of cannabis. And so that’s probably the biggest way I’ve seen companies kind of overcomplicate the process is by wanting to start with 30 varieties, instead of just calming down and starting with five, because if you can’t successfully launch a business, starting with five varieties, you’ll never do it with 50.

TG Branfalt: One of the things that you talked about in the book is plant patents. And so that’s something that I think that we’re going to see a lot more of, as we see a sort of explosion in branding and the potential for… I don’t know, are you familiar with the patent laws in Canada? Can you patent a plant in Canada?

Ryan Douglas: So I couldn’t speak with authority on that, to be honest. I would definitely direct people to a patent attorney in terms of that.

TG Branfalt: So how do you think these patents would shape the future of the cannabis industry? I mean, you’re talking about simplifying things by having less plants. Well, in my opinion, if you’re a grower, and you want to keep drawing sort of this same sort of trademark strain, you’d want to patent that eventually.

Ryan Douglas: Right. So the idea is that this is another source of revenue. And not only are we growing cannabis to sell the dried flower, or extract the active ingredients, now we’re selling the genetics. So the appeal behind that is that if someone has a variety that offers something unique, so if we just think about THC, it’s rare to find a cannabis variety that tests higher than 30% THC. So in the event, someone breeds a plant that tests 40% THC, there’s going to be a lot of demand for that.

And if you can sell the cuttings or sell the seeds, and charge royalties, that’s another source of revenue. Another concept to think about is disease resistance. So you have more and more people wanting to grow outdoors or in greenhouses. And when you get away from indoor grows, and you get more outdoor grows, you lose control of the environment. And so things like mold can really bring a crop to its knees.

So if someone breeds a variety that is resistant to botrytis, or powdery mildew, these diseases that attack plants outdoors, that is also potentially a lucrative source of revenue by selling the rights to propagate these plants. And so this is actually how the majority of traditional horticulture works. So when I was growing flowers before, every couple years, at Christmas time, we buy red poinsettias, but you might notice that occasionally, there’s white poinsettias, there’s pink poinsettias, and there’s poinsettias that are a mix of all those colors together.

And so every year, these companies are breeding poinsettia, that is to come up with something new. And if you want to grow that poinsettia and sell it at your garden center, you have to pay a royalty fee. And there’s actually organizations that travel around the country unannounced, and they’ll go into your greenhouse, and they’ll detect if you are growing unlicensed plants that you haven’t paid the royalty rights for. And you can get in trouble. And so I mentioned I was a grower for 15 years, and I had numerous visits from this organization, they would just show up, they would come in and look around. And if I had these special varieties I needed to show proof that we were paying royalties on these or I was in big trouble.

TG Branfalt: That’s incredible. I had no idea that there was like flower police. So one of the biggest things that this trademark issue legally has sort of surfaced in the last couple of years. Infringement, we’re talking about Nerd Ropes and we’re talking about other brands that use sort of existing non-cannabis well known brands, they get sued, Gorilla Glue had to change their name to GG4. And some of these businesses are actually fraudulent. And so in the book, you actually take some time to warn about fraudulent businesses. And I mean, we see this with financial companies, we see this with it, I mean, even some businesses would go to get licenses who don’t actually have the stuff they say they have. How can would-be investors best identify potential fraud, in your opinion, having worked in three nations?

Ryan Douglas: Yeah, yeah. So one way to look at that is typically when we think about a fraudulent business, they’re either trying to acquire investment or they’re trying to sell their business. And so one of the biggest red flags is if we look at their timelines and their predicted yields. So the value of a business, part of the business is what is it producing. And so if you’re buying a business, you want something that’s operational, something that’s producing a lot, or if it’s a brand new business will produce a lot on a very short timeframe.

And so what we saw in Colombia was that a lot of groups wanted to apply for a license, and then sell it to one of the big international players. So you had a handful of companies, the licensed cannabis companies in Canada come to Columbia, and they would buy a licensee for millions and millions of dollars. And oftentimes, all they were buying was a piece of paper and then empty land. And so if you’ve ever been to any country in South America, even though the temperature is good for growing cannabis, if there’s no access to water, or there’s no electricity for miles, it is just impossible to turn that space into a functioning operational commercial grow operation.

And so that’s just one of the concepts I referred to in the book is that if you are interested in investing or buying a business, and they claim to be able to produce plants in six months and their yields are five times the industry average, if you don’t know what to expect from plant performance, you wouldn’t know that those numbers are incorrect. And so that’s why in the book, I talk about timelines in terms of production, from start to finish, I say that normally you should anticipate having product to sell within 18 months of being licensed.

But I also talk about yields, what a plant can produce per square foot or per square meter to give business owners or potential investors an idea of what they should expect from an acre or 10 acres or production. So that’s kind of what I referred to when I mentioned fraudulent businesses there. They’re just folks that are trying to make money off of the idea. And unless you really dig into what the plan is proposing, you wouldn’t know that they’re just trying to sell you a dream.

TG Branfalt: Well, I mean, most people I have on this on the show especially dispensary owners, that sort of thing. I asked them what advice do they have for entrepreneurs, and they said, “Don’t expect to get rich overnight in this industry.” So I think your advice is sort of very astute in doing that. There’s a couple of really interesting things that are in the book that I really want to talk to you about.

The first is you talk about federal legalization and you referring to the United States. And this is something that I’ve been concerned about for, I mean, as long as the legalization thing has been sort of a topic of conversation. As long as I’ve been in this industry, and even before that. Once it’s legal, that’s going to give sort of the FDA and Big Pharma the opportunity to come in and really take over and then the people who have been working as caregivers, or as sort of outlaw medical growers for decades are going to get pushed out and they’re not going to get a penny for their work. So in your estimation, how do you think federal legalization could stymie the current legal industry?

Ryan Douglas: An interesting question. First and foremost, I think that interestingly, ironically, it’s going to eliminate inefficiencies in the industry. And these inefficiencies are what creates a lot of business opportunity, from growers, to dispensary owners, to people that are providing ancillary businesses. So as an example, if you’re selling something with THC in your dispensary, that product needs to be grown inside that state because interstate transport of anything with THC is prohibited.

So if we look at my home state of Maine, those dispensaries can only sell products that were grown or derived from THC products in the state of Maine. And so just this past election, we had a handful of states that voted to legalize cannabis for medicinal adult use. And so the same thing, they’re going to establish a dispensary network. But all of that product has to be grown within those states. So every time a state legalizes cannabis, the process begins new, where they have to establish production facilities from scratch in the States.

So if we legalize on a federal level, now we look at growing where it makes sense. Just because cannabis is legal in a given state doesn’t mean that it’s economically feasible or efficient to grow it there. So I mean, there’s a reason that there’s a citrus industry in Florida, there’s no citrus industry in Maine, it just doesn’t make sense to grow or try to grow citrus in Maine. We could, we could build really sophisticated greenhouses and provide heat year round and grow lights and we could grow trees in Maine and produce oranges, but we don’t because it doesn’t make sense.

But we have to grow cannabis that way, because it’s the only way we’re allowed to do so. So when I say it eliminates inefficiencies, I think if we legalize cannabis on a federal level, we’re going to be moving production to those states where it makes sense to grow large scale production and greenhouses in places where there’s a lot of sun and warm temperatures, and then we’re going to ship it to those states, the rest of the states in the US. Because that’s how every other agricultural commodity is produced and distributed.

TG Branfalt: And so is the sort of conditions that we’re looking for, let’s say we did have this sort of federal legalization and it did sort of go… Are we looking at former tobacco country as being sort of the new cannabis capitals? Or are we looking at the coasts?

Ryan Douglas: So because humidity is a real killer for cannabis crops, I think we’re looking at someplace that’s warm, sunny and dry most of the year. So right now, that would be Southern California, Arizona, New Mexico. I think that’s going to turn into a really big cannabis growing region if cannabis becomes legal on a federal level.

TG Branfalt: So the other thing that I want to sort of ask you as being from Maine, was there any surprise that recently cannabis, both medical and recreational took over as the state’s number one crop? This is true.

Ryan Douglas: Yeah, it is. It’s absolutely true. So I guess if you’re part of the cannabis culture, it wouldn’t be a surprise. But if you don’t know anything about it, then you still think that lobster or lumber or potatoes or blueberries are our number one export. So I’ll tell you what did surprise me is that 75% of the medical cannabis industry is supplied by caregivers.

So in my book, I write simply from a business person’s perspective, that not every legal state is ideal for establishing a commercial cultivation business. Because for anyone listening that doesn’t know caregivers, basically, once you receive a medical marijuana certification, you can either purchase it from a dispensary, grow it yourself, or you can have someone else grow it for you. And that person is called the caregiver.

And so what we didn’t know until these reports came out in the news was that 75% of the cannabis being sold in the state wasn’t done by those big dispensaries, the big companies in the state. They were done by individuals, individual caregivers. And I mean, from a business perspective, I was launching a commercial cultivation site, I would look elsewhere. But from a cannabis aficionado, I think it’s great. I mean, it’s power to the people, fascinating.

TG Branfalt: No, I’m an East Coast kid. And I love Maine and I love Mainers. This is a true story. I do love lobster. Also a very true story. One of the other really interesting things that you discuss in the book, albeit pretty briefly, is how you envision the use of drones in cannabis cultivation. Could you please just sort of tell me more about that. Because that, to me is one of the most forward-thinking parts of this book is looking at this technology that we have, that is used, and that it’s going to be sort of an integral part of the industry, in your estimation.

Ryan Douglas: Yeah, absolutely. So half of this, it’s a no brainer, because it’s already part of traditional agriculture elsewhere. So when we’re growing outdoors, farmers can use drones to do everything from analyze the soil prior to planting, to really analyzing their crop once it’s growing. They attach different kinds of cameras to the drone, and depending on the reports, or the colors of the video, they can determine if there’s a insect or disease infestation or if the crop is under fed. So they can make decisions and really steer their crop before it results in a crop failure or any kind of expensive damage.

TG Branfalt: You can see insect infestations with these.

Ryan Douglas: Right, so depending on the kind of camera they use, the color is going to indicate that there’s damage to the plant. And so they’re also using them for plant count, because sometimes licenses are tied to canopy size or plant count. And so they can fly over a crop and get a very accurate count of how many plants are growing outdoors. So from that perspective, it’s kind of a no brainer, because we just look to a sister industry, which is traditional horticulture and realize that as we grow more and more crops outdoors, that kind of technology is going to help.

Now what really gets me excited as we look at new applications of drones. And so I have a contact in the Netherlands, a company that is developing this drone as a form of pest control. So it’s organic pest control, because they’re eliminating plant damaging insects without the use of any pesticides. And so what they do is they use these mini drones, the drones are about the size of the palm of your hand, and they sit on a base station in the greenhouse.
And what they do is detect the movement in the air of certain plant damaging insects. And once the movement is detected, they’re dispatched from these base stations, and they kill them by causing a collision. They suck the insect through the propeller and it kills it and then it returns to the base station until it detects another insect.

TG Branfalt: Seriously.

Ryan Douglas: So what they’re doing in the Netherlands is they’re really big cut flower growers up there. And so they have a problem with moths. So moths don’t eat plants, but their offspring, caterpillars do. And they attacked cannabis as well. So once the damage is… Once you realize there’s a caterpillar there, the damage is already done. So this is one instance where this is a technology that can directly be applied to cannabis. And it really helps the grower control pest populations, grow a more efficient crop, and they’re using zero pest control products to do so.

TG Branfalt: That is absolutely fascinating.

Ryan Douglas: Yeah.

TG Branfalt: So I want to ask you the book is full of advice. As we’ve been talking about, what do you think is your key piece of advice for expanding a cannabis business? Cannabis cultivation business.

Ryan Douglas: So expanding a business. Great. So that’s a, that’s a big question now, because you have a lot of states that are going from recreational to adult use. And so they need to rapidly expand to meet the demand that exists on day one. And so what we want to do is, actually, it’s the same advice I would give a startup, which is to avoid overcomplicating. So if we’re expanding a business, we just want to duplicate what we’re already doing successfully. So we want to use the same varieties, the same growing equipment and the same protocols.

So what we want to avoid is saying, well, we’re going to expand, so we’re going to switch from growing organically to some really high tech hydroponic. Or we’re going to switch from HID lights to LED lights, or we create such a foreign growing environment, that it’s difficult to expand and increase what we’re already doing rapidly. So my advice to expand a cultivation business rapidly is the same as to launch a cultivation business rapidly, which is try to simplify the process.

TG Branfalt: I think it’s really, really great advice. I think that it’s not something that most people would sort of pivot to. To go back to the beginning when you’re trying to sort of write a next chapter. But most of us don’t write books. I think the most controversial… I think you have one controversial thing in this book, or that I found controversial. And it’s not really controversial to me, but you recommend to, quote, “Leave CBD alone.” And I think a lot of people would sort of have a knee jerk reaction to that, people in the industry, in the CBD industry, or even a lot of consumers who some still have a demonized sort of opinion on THC or high THC products. Anyway, so why do you make that recommendation to leave CBD alone.

Ryan Douglas: So the problem is you’ve got more and more in the US, hemp cultivations. And so they’re growing hemp for the biomass, which is the dried flower, from which they can extract the CBD. And so what you have is each year, you have more and more states that are converting more and more acreage to hemp production for CBD biomass. And as a result, you are seeing prices begin to lower. Now, unlike THC, CBD can easily be exported and imported to the US. So you don’t only have pressure inside of the US. But you’ll have increasing pressure from places like Colombia, that can grow the plant super cheap, they extract the isolate, and then they import that into the US.

So when you go into a business, you really don’t want to go into something that’s really a commodity business where you’re already seeing a lot of price pressure. So what I recommend, if someone comes to me that wants to grow hemp, I would instead point people to the direction of growing hemp for fiber or seed grain production, because that’s a relatively untapped market. And so I think it’s realistic that over the next coming year, certainly within the next decade, we’re going to see hemp fiber replace cotton, for example.

And there’s thousands of different uses of hemp for construction materials and paints and all of that. So I think that’s where the future of hemp production lies not in the production of CBD per se, because there’s just so much competition, other countries can produce it much cheaper. And there’s no barriers to importing or exporting the product. So it’s a really tough business to get into. I would much rather get into a business where there’s fewer players, a lot of demand. And when you’re first to market or you’re a pioneer that usually bodes well in terms of business for entrepreneurs.

TG Branfalt: Let me ask you what still excites you about this industry? Because I mean, obviously you wrote a whole book, you’re very passionate. It seems like you’ve almost done it all. I mean, what still gets you out of bed every day to still do this?

Ryan Douglas: In one word, the future. So even though the cannabis plant likely won’t change very much, how we cultivate it will change. So as responsible growers, we need to anticipate that we’re going to come under increased pressure in the future, to really minimize our carbon footprint. So that means that we need to be able to grow cannabis using less electricity, using less water and less pest control products. So it’s kind of an inconvenient truth when you think of on the one hand, it’s great that more and more states and countries are legalizing cannabis cultivation.

But on the other hand, we don’t want our legacy as an industry to be that we’ve created this massive energy consuming thing. So what gets me excited is thinking about how we can grow cannabis in the future using zero electricity, or generating our own water, or doing it completely organic. And so there’s still a lot to do there, there’s still a lot to learn and a lot to trial. And that’s really what gets me excited about the industry is thinking about the future and how we can do it better.

TG Branfalt: But I mean, the whole looking into the future… Because one of the things that’s always concerned me since I started covering this industry was the energy usage. It’s not something that gets really talked about, there’s not a whole lot of people who sort of study it or keep tabs on it. So I look forward to the day that we go to a more carbon-neutral way to grow cannabis that works. Because the weed that I grew in my backyard over the summer was not very good. But I didn’t use any water. Because I live in a rain forest.

Anyway, what one piece of advice would you have for cultivation entrepreneurs specifically. I mean, they can read your book, they can get your advice on how to launch a great cannabis cultivation business in record time. But what’s something that they may not be able to find in the book that just comes from the brain of Ryan Douglas?

Ryan Douglas: Well, it is in the book and it warrants repeating. And that is because this is a cultivation business, you make money from growing cannabis. So probably the one most important decision you can make is to hire the best grower you can afford. So I tell clients, you really want to look for someone that has 10 years of experience in commercial plant production, not necessarily cannabis. It can be flowers, or vegetables or herbs.

But if you hire someone that knows a lot about cannabis, or is excited about cannabis, but doesn’t know how to manage a facility or production team, or establish and maintain a production schedule, that company learns at the same pace as the grower. And the learning curve is expensive, and the company pays for it. So since we’re going into a cultivation business, you really need to find an experienced grower and hire the best one that you can afford.

TG Branfalt: I mean, and you do flesh out a lot of this stuff in the book. You talk about where to find these people, how much they should be paid, which I was actually a little bit surprised at the figures that are in the book. And again I don’t recommend things on this show. It’s just not sort of what I do. But as far as the several cannabis books that I have read, that I have reviewed that are not children’s books, this was really a welcome sort of addition to my bookshelf.

Because, while I don’t have any intention on starting a cannabis business. I think that it helps sort of my own understanding of what that takes. Because as I said, the only cannabis plants I’ve ever grown, the only plants I’ve ever grown were in my backyard, and they came out like trash. I mean, it was bad. So it can’t help me cultivate in my backyard. But I really appreciate your time coming on the show talking to me about this book. I hope that you are allowed to leave your Colombian apartment, but also happy that it gave us this book. So thank you again for coming on the show. Where can people find out more about you and where to potentially purchase this book.

Ryan Douglas: So if you’d like to find out more about me or contact me directly, you can go to my website, it’s DouglasCultivation.com. In the next few weeks I’ll have a page where you can purchase the book as well. But for right now, it’s only available on Amazon. So that’s the paperback version and the e-book as well.

TG Branfalt: Brilliant, brilliant. That’s Ryan Douglas, he’s a former master grower for Tweed. He’s a cannabis industry consultant and he’s the author of From Seed to Success: How to Launch a Great Cannabis Cultivation Business in record time. Ryan thanks again for coming on the show. And I look forward to seeing what you end up doing in the space because I doubt this will be the last to hear of you.

Ryan Douglas: Oh, that’s great. No thanks for having me on. It’s been a real pleasure speaking with you.

TG Branfalt: You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of Ganjapreneur.com, on Spotify and in the Apple iTunes Store. On the Ganjapreneur.com website you will find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House, I’ve been your host TG Branfalt.

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UConn Offering Online Cannabis Cultivation Courses

The University of Connecticut this summer will offer non-degree online courses in basic and advanced cannabis cultivation. The offering comes after the university launched an introductory online cannabis horticulture class in 2019.

Gerald Berkowitz, a professor of plant science in the College of Agriculture, Health and Natural Resources, said the UConn students “see career potential and want to gain experience” in the field, while “businesses need highly trained scientists to support the growth” of the industry.

“By offering more and more targeted courses, we can help both groups. It’s a win-win. … It’s a great opportunity for UConn to capitalize on an area of academics that’s really just developing. We’re blazing new ground.” – Berkowitz, in a press release

Indrajeet Chaubey, dean of the College of Agriculture, Health and Natural Resources, said there was “tremendous demand from students and industry” for the courses, noting that the university’s faculty have “expertise across the cannabis spectrum.”

Matthew DeBacco, the lead instructor of UConn’s courses and an adjunct plant science instructor, described the program as a “choose your own adventure” model that allows students to dig deeper on the aspects that most interest them, give them greater insight into certain parts of the process, including allowing how to propagate from seeds or clones, and aspects of growing indoors versus outdoors.

The Advanced Cannabis Horticulture: Production and Industry course will be offered during the summer session from July 12 to August 13. They require no pre-requisites and are accessible to anyone in the world.

The Connecticut Legislature’s Judiciary Committee last week approved an adult-use proposal offered by Democratic Gov. Ned Lamont, who had called for the reforms during his January State of the State address.

Connecticut is bordered by Massachusetts, which legalized cannabis for adults in 2016, and New York which approved the reforms last month.

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Connecticut Cannabis Legalization Bill Approved by Judicial Committee

The Connecticut Legislature’s Judiciary Committee on Tuesday approved the cannabis legalization bill proposed by Gov. Ned Lamont (D) and added a host of amendments including allowing medical cannabis patients to grow their own plants and the proposal’s strengthening social equity provisions, the CT Mirror reports.

The changes include permitting only existing medical cannabis dispensaries and social equity applicants to open adult-use cannabis facilities from July 2021 to January 2024; requiring all cannabis operators to have social equity plans; provides for apprenticeship and workforce programs to ensure those from communities most impacted by the war on drugs can get jobs in the industry; and directing 55% of cannabis-derived revenues be spent on social equity efforts. Fifteen percent of the remaining funds would be used for drug prevention and addiction services, with 30% allocated to the state’s general fund, the report says.

The amendments, which passed the committee 22-16 along party lines, would also allow medical cannabis patients to cultivate up to six plants starting next year.

Rep. Steven Stafstrom (D), co-chair of the Judiciary Committee, said during the hearing that he expected the legislation “will see additional revision as it moves through the legislative process and its next committee of assignment.”

“It is this committee’s cognizance as to whether this drug should be legal or not. And that is, I believe, the primary vote that we are taking as a Judiciary Committee here today, is whether to legalize cannabis or not. I would submit that that is long overdue in the state of Connecticut, for a whole host of reasons, not the least of which is this is a drug that is widely believed to be less addictive and less harmful to the body than many other drugs that we already have legalized and regulate here in the state of Connecticut, including tobacco and alcohol.” – Stafstrom via the Mirror

Lamont has included cannabis reforms as part of his State of the State address in January.

Last month the Labor and Public Employees Committee approved a measure that would require labor peace agreements for the state’s cannabis industry. That bill also includes a program to provide grants or low-interest loans to small cannabusinesses in the state and on tribal lands and prohibits employers from discriminating against employees – or prospective employees – who use cannabis outside of work.

Connecticut is bordered by Massachusetts, which legalized cannabis in 2016, and New York, which approved the reforms just last week.

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Former Mayor Worked As Cannabis Industry Consultant While Involved In Licensing

Former Fall River, Massachusetts Mayor Jasiel Correia – who was arrested in 2019 and charged with crimes related to extorting cannabis companies – briefly served as a private consultant to cannabis firm Northeast Alternatives, the Herald News reports. The role was approved by the state Ethics Commission in 2018.

He only served in the capacity for one month and there is no evidence in court filings that he received any compensation in that capacity, the report says.

Correia had promised the consulting work would not include city business due to his obvious conflict of interest as mayor but just a week after the Ethics Commission approved the gig, he signed a non-opposition letter and host agreement with the company, the report says.

Four days after getting the approvals, Northeast Alternatives donated $20,000 to Correia’s legal defense fund, which he launched in 2018 as his criminal exposure became public.

Correia is accused of extorting at least four cannabis business operators by soliciting $250,000 each from them in exchange for non-opposition letters from his office. He is alleged to have illegally generated some $600,000 in the scheme as well as alleged arrangements for a future cut in some of the companies’ cannabis sales.

His third chief of staff, Genoveva Andrade, pleaded guilty last year to charges of extortion, bribery, and making false statements in connection with the former mayor’s plot. Andrade admitted to conspiring with Correia to extort a cannabusiness for $150,000 in return for a letter of non-opposition from the then-mayor, conspiring with Correia to extort a Fall River business owner and obtain a variety of benefits, including cash and a Rolex watch valued between $7,500 to $12,000, in exchange for official action and favorable assistance to the business owner, and admitted that as chief of staff she kicked back half of her salary, about $23,000, to Correia on a bi-weekly basis. She also kicked back nearly all of the $10,000 city-funded “snow stipend” that was approved by Correia.

Northeast Alternative CEO Christopher Harkins is expected to be called as a material witness in the federal case, the trial for which is set to begin April 20.

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Report: Chicago’s Green Thumb Industries Under Investigation for Pay-to-Play Allegations

Chicago, Illinois’ Green Thumb Industries is reportedly under federal investigation for possible pay-to-play violations associated with the process of acquiring a state cannabis license, according to the Chicago Tribune.

GTI spokeswoman Linda Marsicano told the Tribune that the company was “not aware of any such investigation.”

“Green Thumb takes compliance very seriously and operates with the highest standards of ethical business conduct.” – Marsicano to the Tribune

Shortly after the report’s publishing, GTI pushed back harder against the claims in a press release in which the company demanded a retraction from the Tribune.

The alleged investigation is said to be focused on campaign donations and other actions by the company during the state’s initial retail cannabis licensing process; it’s thought to be the first federal inquiry of an Illinois cannabusiness. The reported investigation also comes at a time when Illinois is working to renegotiate its adult-use cannabis regulations to improve social equity ownership in the state. Many applicants have raised concerns about well-off and well-connected individuals and businesses wielding money and political influence to jump into the cannabis industry while those individuals who were most negatively affected by prohibition continue to struggle for a foothold in the now-legal industry.

GTI had been one of the state’s first licensed medical cannabis companies. The company, which operates in 15 states and trades over the counter as GTBIF, reported more than half a billion dollars in total revenues last year and an estimated market capitalization of $5 billion, according to financial reports filed with the U.S. Securities and Exchange Commission outlined by the Tribune.

Last year, the Federal Bureau of Investigation said it was aware of public corruption, including bribes, in the cannabis industry. Since the launch of the legal industry, the agency has made several arrests related to licensing bribes, including the arrest of three Michigan men in 2017 and the arrest of a Humboldt County, California Planning and Building inspector in 2018.

In one of the more high-profile cases, Genoveva Andrade, the third chief of staff to former Fall River, Massachusetts Mayor Jasiel Correia, pleaded guilty last year to charges of extortion, bribery, and making false statements in connection with Correia’s scheme to extort cannabis businesses. Correia is accused of bribery and extortion related to cannabis licensing.

In an unrelated lawsuit against GTI Founder and CEO Ben Kovler – which alleges that he stole his ideas for the company, including the name – he brags about his relationships with the “political world” from Chicago to Springfield.

Note: Lukas Barfield contributed to the reporting in this article.

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Trade Association Offers Cannabis Education Scholarships

The New Jersey Cannabis Trade Association (NJCTA) is offering six scholarships to students who demonstrate financial need for Mercer County Community College’s Medical Cannabis Training course. The scholarship includes the added bonus of matching recipients with a corresponding cannabis company for an interview after completing program requirements.

The scholarship is open to those aged 21-and-older who reside in specified New Jersey zip codes in addition to the financial need.

NJCTA President Shaya Brodchandel said offering the scholarships is a “no-brainer” for the organization.

“By participating and creating a scholarship fund for the program we get to give back to the community where our members are located while simultaneously finding trained individuals who could be employed by New Jersey cannabis operators in the near future. Partnering with New Jersey Cannabis Certified and Mercer was the perfect way to achieve both of those goals.” – Brodchandel in a press release

Valley Wellness CEO Sarah Trent, who developed the course, said the class saw high enrollment during last year’s session but that the organizers “also saw that some people need financial assistance.”

“So we started looking for sponsors to help create scholarships,” she said in a statement. “The NJCTA was excited to get involved and help develop a plan to make sure those most in need of jobs, who live near existing cannabis operators in the state, had access to job training.”

The course fee is $500 and in addition to the need-based scholarships, Valley Wellness sponsors up to five veterans for tuition waivers.

Scholarship applications are accepted until April 5.

Last month, Massachusetts cannabis company Elevate Northeast said it would help fund scholarships for, primarily, students from communities negatively impacted by drug laws that preceded cannabis legalization in the state for Holyoke Community College’s Cannabis Education Center.

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Illinois Gives Final Approval for Curaleaf Takeover of Grassroots

Illinois regulators last week gave final approval for Curaleaf’s $830 million acquisition of Grassroots, the Chicago Tribune reports. The deal will see the Massachusetts-based firm takeover nine Greenhouse and Windy City Cannabis dispensaries – which will transition to the Curaleaf brand – by April 1.

Currently, Curaleaf operates 101 retail and medical dispensaries, 23 cultivation sites, and more than 30 processing facilities, with more than 3,800 employees, throughout 23 U.S. states. The company trades on the Canadian Securities Exchange and reported $653 million in its 2020 earnings report issued earlier this month.

Last year, following the closing of the Grassroots deal, Curaleaf announced it would expand its Select brand into Illinois. At the time, company President Joe Bayern described Illinois as “one of the largest adult-use cannabis markets in the country and one that has worked incredibly hard to address the need for reparation and normalization of our industry.”

In 2020, legalized cannabis sales in Illinois reached $1.03 billion, including $669 million in recreational sales and more than $366 million in medical sales.

Multi-state operators have an outsized role in the Illinois industry, and in January Cresco Labs, also based in Chgicago, became the first company to open 10 dispensaries in the state.

The Greenhouse dispensaries transitioning to the Curaleaf brand are in Northbrook, Skokie, Mokena, Morris, Deerfield and Melrose Park, while the Windy City locations pivoting to the Curaleaf name are in Justice, Worth, and Chicago’s Lincoln Park neighborhood.

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Former NBA Player Joins Hometown Dispensary as Co-Owner

Former National Basketball Association player Travis Best has joined Springfield, Massachusetts dispensary Lemonnade as co-owner, MassLive reports. Best, a Springfield native, played in the NBA from 1995 to 2005 and another four seasons in Europe.

Lemonnade is a sister brand of Cookies.

“After doing a bit of my own research it became immediately apparent that Cookies/Lemonnade is without question the best in the business. I’ve always strived to live up to my last name in all that I do. Combining the best with the Best to deliver a transformative project to the South End neighborhood, the city I love and the entire region is an opportunity I’m extremely excited about.” Best in a statement, via MassLive

The dispensary is majority-owned by Brittany Washumare, who is also a certified economic empowerment applicant in the state. Washumare said she “could not be more happy to have Travis Best as a partner.”

“His name and reputation is impeccable and synonymous with the city of Springfield,” she said in a statement to MassLive. “He’s a perfect teammate, as many can attest to, and I can’t wait to deliver a win for Springfield alongside him.”

The owners are eying the dispensary for Springfield’s South End Neighborhood. They still must obtain a host community agreement, a permit from the city council, and a state license. During a community outreach meeting, the owners said they plan to dedicate shelf space to products and brands owned by economic empowerment and social equity applicants, city residents, minorities, or those with a history of disproportionate impact from the war on drugs would comprise 100% of Lemonnade employees, and that employees will be paid a wage of no less than $20-an-hour and averaging at $24-an-hour and have access to comprehensive benefits.

The company said it will also reserve 3,000 square feet for a training center to assist residents in reducing barriers to industry entry and identify potential future employees.

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Maine Companies Launch Alcohol-Free, Cannabis-Infused Beer

Maine-based Novel Beverage and Innovative Liquid Solutions have launched an alcohol-free version of Shipyard Brewing Co.’s Pumpkinhead beer infused with 5 milligrams of THC, NBC Boston reports.

Matt Hawes, Novel Beverage’s co-founder and CEO, said the company’s plan for “THC Elixir,” “has been in the works for a very long time.” The company also plans on brewing and bottling a version under Sea Dog’s Blue Paw Brand – a blueberry wheat ale. Pumpkinhead is a pumpkin-flavored recipe usually released in autumn. Both use nano emulsification technology.

“We’ll continue to see the THC beverage category continue to grow, and it will become a norm to see people at a party or at dinner who, instead of drinking alcohol, are having a THC drink.” – Hawes to NBC Boston

Several states that have legalized cannabis for adult use have passed regulations banning cannabinoids from alcoholic beers, including Oregon and Massachusetts. In 2018, the federal Alcohol and Tobacco Tax and Trade Bureau said it would not approve any alcohol formulations that include CBD.

However, several traditional alcohol companies have made cannabis-infused beverages, including California-based Lagunitas Brewing Company. Pabst Blue Ribbon has also lent its name to a cannabis-infused seltzer produced by former employees. In 2018, Molson-Coors announced a partnership with Hydropothecary Corporation to create a cannabis beverage startup.

Last year, Canadian cannabis firm Aphria announced it would acquire SweetWater Brewing Co. for about $300 million. SweetWater is known for terpene-infused, alcoholic seltzers and its 420 brand.

Multinational alcohol distributor Constellation Brands – whose brands include Corona beer and Svedka Vodka – last year upped its stake in Canada’s Canopy Growth to 38.6% after exercising $174.29 million worth of warrants.

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Curaleaf to Acquire Europe’s Largest Vertically Integrated Cannabis Firm for $286M

Massachusetts-based Curaleaf Holdings announced on Tuesday it will acquire Europe’s largest vertically integrated cannabis company, EMMAC Life Sciences Limited for approximately $286 million, to be paid 85% in Curaleaf subordinate voting shares and 15% in cash.

Contingent consideration of up to $57 million will be paid in Curaleaf subordinate voting shares and cash in the same ratio based upon the successful achievement of performance milestones, the company said in a press release.

EMMAC operates in Germany, Italy, Portugal, Spain, and the United Kingdom across processing, distribution, cultivation, and research and development operations. The company said its Portugal-based cultivation facility is an industry leader in cannabis flower production cost.

Curaleaf Executive Chairman Boris Jordan said the deal “provides an advanced base to reach scale within the nascent European cannabis market and transform Curaleaf into a truly international cannabis consumer packaged goods company.”

“The consumer and political liberalization trends around cannabis that are sweeping the U.S. are also increasingly taking hold in Europe. Curaleaf will seek to leverage our branded cannabis consumer packaged goods strategy across Europe, a market which provides for cross-border cannabis distribution. The European cannabis market has the potential to exceed the U.S. cannabis market over the long-term and will help fuel our growth for years to come.” – Jordan in a statement

Joseph Bayern, Curaleaf CEO, said the company believes the total “addressable market opportunity” in Europe could reach $120 billion.

EMMAC plans to increase its cultivation capacity this year and anticipates exceeding 10 tons per year by 2022, “in order to accommodate future growth related to the expansion of access to cannabis across the major European medical and adult-use, as well as export markets,” the company said

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Michael Machat: Innovative Cannabis Industry Construction 

The cannabis industry is growing exponentially and with that growth, more and more cannabis brands are looking to upgrade, redesign, and expand their facilities. To that end, demand for construction contractors who specialize in cannabis industry projects is likewise at an all-time high.

Our latest Q&A features Michael Machat, the Executive Vice President of Business Development and Cannabis Team Lead for Reed Construction. In this interview, Michael discusses previous successful cannabis contracts in state markets ranging from Illinois to Florida, navigating regulatory requirements and other quirks to operating in the cannabis space, tips for cannabis entrepreneurs who are planning a new facility, and more!


Ganjapreneur: Reed Construction has existed as a general contracting firm for over a century: what led to the decision to get involved in commercial cannabis facilities construction?

Michael Machat: It’s an interesting story, actually. About three years ago, we were approached by a major MSO who had knowledge of our extensive healthcare, life sciences, and industrial experience. They believed we were uniquely aligned to complete this type of work and ultimately put their faith in us. At the time, cannabis was a fairly untapped market for contractors in our area. We ran with the opportunity, learned how to scale/repeat our processes, and have continued developing relationships in the industry to grow our team of experts. As a result, we have become a premier design-build contractor within the Cannabis industry.

What types of cannabis industry businesses does Reed Construction serve?

We have worked in all areas of cannabis construction – including cultivation facilities, processing labs, extraction facilities, and dispensaries – with an array of clients, engineers, architects, cultivation experts, end-users, and investors. When we meet with our clients, we always let them know we can support them every step of the way from seed-to-sell with our well-established design-build process.

Which state-level cannabis markets does Reed Construction operate in, and how do you maintain an understanding of the developing regulatory and compliance needs of your clients?

We have the flexibility and resources to work anywhere. We pride ourselves on our “center of excellence” concept. Which is the ability to replicate our process and make sure every client has the best experience, no matter where the project is. In fact, our successful track record in cannabis has already taken us across the country throughout Arizona, Florida, Georgia, Maryland, Massachusetts, Michigan, Missouri, New York, Pennsylvania, and our home state of Illinois. We have an experienced Cannabis team dedicated to offering construction solutions regardless of location.

With more than 125 years of experience, we have strong working relationships with agency officials, along with a deep understanding of construction regulations and processes specified in the cannabis industry. We are always staying in front of compliance and regulatory changes and adapting our processes as those changes arise.

What are some of the unique considerations for cannabis cultivation, retail, and extraction building projects? Does each business model come with its own requirements, and do requirements vary depending on where a business is located?

When it comes to cultivation, there are a few vital areas you need to consider with your construction partner before getting started. One of the most important areas is security. Every square inch of the building needs to be on camera, and the entire cultivation site should be secured with a fence with barbed wire. There should also be multiple security guards on-site full-time.

Generators are another must-have with retail and cannabis sites. If at any point in time they were to lose power and did not have one, it’s basically game over for their crops. Keeping relative humidity (RH) levels and temperature-controlled is also crucial. If it ever gets too high or too low, then you’re at risk of ruining a crop. We always explain to our clients that are newer to the process how vital it is to make sure the building can support the electrical and HVAC capacity required when selecting real estate.

With retail, depending on local codes, the space simply needs to be designed properly. Some of the questions our team considers, in the beginning, are: does the vault require wire mesh within the drywall partition and ceiling to enhance the security of the room per code? Do the vault walls need to be concrete masonry units (CMU) versus drywall? Is a secured loading dock required for all cannabis deliveries? Is one entrance for customers acceptable or is there a code requirement to have one entrance and a separate exit? All items are reviewed based on local and state requirements and developed with input from the client’s compliance department.

With extraction, considerations for the type of extraction need to be reviewed with the client. Storage of CO2, butane, propane, etc. need different building requirements for storage based on local codes. Extraction equipment and methods need to be proactively selected during the design process to properly incorporate power, HVAC, plumbing, etc., as partition fire ratings are dependent on the method of extraction.

Did your team study cultivation or extraction methods and practices to understand the needs of these companies before entering the space or did you learn about these processes from clients as you grew?

Since we jumped into this industry relatively early on, we have done a combination of both. We worked with our clients to learn their cultivation and extraction processes. We took that feedback and used it as our framework for our design-build of the systems and building components within the facilities. Our background in healthcare and life sciences construction also gave us a huge advantage in the beginning stages of working in the cannabis industry because both are very sensitive in nature. In addition, we took the time to independently study general cultivation and extraction techniques to better educate ourselves on the product.

How does Reed Construction help scale clients’ cultivation sites over time? Why is it important to build with growth in mind?

We always advise our clients to design and construct with future growth in mind. For instance, designing high ceilings – this will allow for the ability to re-stack your tables and benching to allow for more plant space. However, to do that, the building will need adequate power, reverse osmosis (RO) tanks, feeder tanks, and HVAC equipment space to upgrade capacities if necessary. It is important to keep this in mind because as more product goes out, the more product you will want to have coming in eventually. That’s why, we urge our clients to think about all of those long-term items upfront to help cut future construction costs.

How do you engineer technology into your building projects to facilitate client success?

We use BIM to confirm clash points as there are a lot of moving pieces going on in the ceilings of these projects. You have feeder lines, RO lines, dehumidifiers, snap fans, LEDs, HVAC, and fire suppression systems that all need to be compacted into a building. BIM can help successfully route all of these items so that we don’t run into issues with running out of space. We also use on-screen take-off to quantify everything involved with the project, and provide an accurate budget based on our knowledge of cultivation and retail centers.

What kind of building precautions are taken when preparing for water and moisture in a cultivation space? What are some of the risks of incorrect moisture/water management?

We always look at what type of paneling is in place within the exterior walls, floor drains, sanitary capacity, and watertight/air-tight capacities to name a few things.

A few major risks if moisture/water management is not controlled are that mold can form on the plant and walls, you can also see an increase in pest pressure and algae growth, ultimately leading to testing failures of the product.

To mitigate this risk, we always recommend our clients invest in moisture-resistant drywall, epoxy paint, epoxy flooring to protect building materials from high moisture, and, as I was mentioning earlier – this all ties back to ensuring that the HVAC system is designed to correctly maintain humidity levels. Mold formation because of poor moisture control can affect more than just crops – it can also lead to a failing building if it makes its way into drywall and roofing.

What are some other building considerations or precautions that are unique to cannabis cultivators?

One other consideration that is unique to cannabis cultivators are the specific regulations. Cannabis is still one of the most regulated industries, from zoning requirements to environmental controls. Yet, speed to market is still critical. This is where choosing the right site and ensuring that drawings are compliant at the onset of the project are critical. Regulations are also meant to protect not only your business, but also the community. Being a good neighbor is critical – for instance, if odor is not properly controlled, that will have a big impact on the community.

For a cannabis production start-up, what is the most important thing to remember when making plans for a new facility?

The most important thing is to make sure to find the right real estate in the proper zone. In addition, make sure that your facility is big enough for when you would like to scale. Once you have a building that is the right size in the right location, you have to make sure that it has the proper water and power requirements. Deck height is very important for new cultivators. Also, bring a cultivation expert on early in the process. They will help with putting together the right functional design.

What kind of hands-on consulting do you provide to clients as you build out their facilities? How might this support differ between MSOs and craft operations?

With our design-build process, we support our clients by hiring both the architect and engineer and managing the process from start to finish regardless of their needs. For instance, we’ve been performing due diligence for a current client to ensure they select the right real estate to meet their current and future needs. We have also helped clients with permitting, inspections, and even planograms for retail sites. MSOs often have more in-house resources and experience, where they don’t need as much support from us. On the other hand, though, craft growers – especially those newer to the process – often lean on us to leverage our past experience and best practices.


Thanks, Michael, for answering our questions! You can learn more about Michael Machat and Reed Construction at ReedCorp.com.

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Parallel Enters Deal with SPAC, Eyes on Going Public

Parallel, the cannabis company owned by William “Beau” Wrigley, Jr., the former chairman and CEO of the candy company that shares his name, has entered into an agreement with special purpose acquisition company (SPAC) Ceres Acquisition Corp that would see the combined company go public.

Wrigley, who will remain the company’s chairman and CEO, with Ceres Group co-founder Scooter Braun serving as special advisor, and Ceres Acquisition Corp. Chairman and CEO Joe Crouthers, serving as a company director.

“As a public company, we will have access to capital to grow our national footprint through new licenses and M&A, improve our cultivation and production capacity, expand our established retail footprint, develop and launch rare cannabinoids products with therapeutic benefits, and conduct important clinical research in partnership with the University of Pittsburgh School of Medicine. We look forward to working with the Ceres team and benefiting from Scooter Braun’s expertise and extensive influencer network to reach our diverse consumers with creative omnichannel approaches that will fuel Parallel’s leadership in the cannabis industry.” – Wrigley in a statement

The deal sets Parallel’s implied enterprise value at $1.884 billion, and Ceres has received commitments from a group of investors in an over-subscribed [Private Investment in Public Equity] of $225 million at a price of $10.00 per share issuable immediately prior to, and conditional on, completion of the deal. Parallel estimates net revenues of  $447 million this year, pro forma cash on hand of $430 million at close, including US$225 million from the PIPE, and $120 million in cash held in Ceres’ escrow account assuming no redemptions.

The combined publicly listed company is anticipated to have Class A Subordinate Voting Stock and Class B Multiple Voting Stock, the companies said. The Class B Multiple Voting Stock will have 15 votes per share and will be held by Wrigley and his affiliate entities upon the transaction’s close.

Other members of the proposed company’s board of directors include Marina Bozilenko, Strategic Advisor to William Blair and Company; Kevin Douglas, M.D., who currently serves as medical director of U.S. Rheumatology and Study Designated Physician/Therapeutic medical director at Abbvie, Inc.; Sarah Hassan, who was a founding partner of IM HealthScience; Linda McGoldrick, who has served as CEO and independent board member of several healthcare and life sciences companies; and Parallel’s General Counsel Phil Harris.

Parallel operates in Florida, Pennsylvania, Massachusetts, Texas, and Nevada.

The deal is expected to close this summer.

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New Jersey Gov. Signs Bill to Legalize Cannabis

After over three months since voters approved the state’s cannabis legalization ballot question, New Jersey Gov. Phil Murphy (D) today signed into law a series of bills that ultimately legalize the adult use of cannabis.

The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act was only signed after lawmakers, at the governor’s behest, advanced accompanying legislation aimed at clarifying penalties for underage possession.

The legislation will remove criminal penalties for cannabis possession and legalize its use and possession by adults aged 21 and older. The laws also establish a five-member Cannabis Regulatory Commission (CRC) tasked with creating regulations and overseeing the industry’s launch. The application period for cannabis business licenses will open 30 days after the CRC releases its regulations, which are expected this summer.

“Our current marijuana prohibition laws have failed every test of social justice, which is why for years I’ve strongly supported the legalization of adult-use cannabis. Maintaining a status quo that allows tens of thousands, disproportionately people of color, to be arrested in New Jersey each year for low-level drug offenses is unjust and indefensible. This November, New Jerseyans voted overwhelmingly in support of creating a well-regulated adult-use cannabis market. Although this process has taken longer than anticipated, I believe it is ending in the right place and will ultimately serve as a national model.” — Gov. Phil Murphy, in an announcement

New Jersey is the 13th U.S. state to legalize cannabis and the fourth on the East Coast, having followed in the footsteps of Maine, Vermont, and Massachusetts. Neighboring New York, meanwhile, is expected to legalize later this year.

To the dismay of advocates, New Jersey is the second state after Washington to legalize cannabis but not allow residents to grow cannabis plants in their own homes.

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Zappy Zapolin: The American Psychedelic Resurgence

Between new cannabis legalization laws, drug decriminalization efforts, and discoveries related to medicinal psilocybin and other psychedelic substances, recent years have marked a resurgence for psychedelics in U.S. culture, politics, and medicine.

Zappy Zapolin is the filmmaker and activist behind The Reality of Truth, a documentary that follows Hollywood movie star Michelle Rodriguez and several of her friends through a journey of personal discovery fueled by psychedelics.

In this episode of the Ganjapreneur.com podcast, Zappy joins our host TG Branfalt to discuss the resurgence of psychedelics in American politics and culture, drug decriminalization developments from last November’s election, and the latest medicinal discoveries related to psychedelic substances including ketamine, psilocybin, and cannabis. The conversation also covers Zappy’s transition from an early digital-era pioneer to an activist filmmaker, how psychedelics can help society recover from the collective trauma caused by the coronavirus pandemic, and more!

You can listen to the interview through the media player below or through your favorite podcast listening platform. Scroll further down to find a full transcript of this week’s podcast episode.


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Read the transcript:

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TG Branfalt: Hey there. I’m your host, TG Branfalt, and thank you for listening to The Ganjapreneur.com Podcast, where we try to bring you actionable information and normalize cannabis through the stories of Ganjapreneurs, activists, and industry stakeholders. Today is a real departure from the show. We obviously stick to guests in the cannabis industry and we’ve obviously had drug reform activists on the show but today, I’m going off the rails here with Zappy Zapolin. He’s the director of the 2016 documentary, The Reality of Truth, which follows actress Michelle Rodriguez and others on a personal journey of discovery and Lamar Odom Reborn which focuses on Odom’s journey from public breakdown, depression and addiction, to healthy and thriving through ketamine infusions and plant medicine.

He’s also the founder of The Ketamine Fund which offers free ketamine to veterans and others who are suicidal and the Mind Army, which believes that every human being has the inalienable right to go inside their own minds for answers and healing. So, not our sort of typical cannabis business owner, Zappy, but it’s really great to have you on, especially what just happened with the election the other day. Drugs won the day, as I’ve been saying for a couple of days.

Michael Zapolin: Yes.

TG Branfalt: But before we get into everything that we have to talk about today, man, tell me about you, your background and how did you end up focusing your sort of work and life on psychedelics?

Michael Zapolin: Yeah. No. It’s a really organic story. I grew up in Boston, Massachusetts and after college I went to work on Wall Street and I wanted to be more of an entrepreneur. And at some point I jumped into that entrepreneurial path and what happened was, it was the early 90s and they had deregulated television so you could make your own TV show, buy time on TV, what would be an infomercial. But it was just so open that I was like, “Wow. This is so cool.” I knew some people had some production equipment and decided to go into the infomercial space.

And I wound up getting on the Today Show with Katie Couric because there was so little information that she had me and the guy from Time Life Videos, where they were the masters of that. And at the end of the segment when she wrapped up, I said, “Oh, by the way, Katie, if anybody wants to get in touch with me I’m at 1-800- bah, bah, bah.” And I gave out the 800 number. After the camera cut she screamed me out for five minutes on how unprofessional I was, never be back on the Today Show again.

But back at my office in Boston, the phones were ringing, hundreds of phone calls coming in. Every time zone the show would play, we’d get another 100 calls. And in there, there was Diana Ross was watching, the singer. She had her assistant call me. Time Warner Cable, Pop people contacted me and said, “Hey, we need to do internal infomercials on our barker channels.”

So, all of a sudden I created this overnight infomercial company and I kept doing that and had some good experiences with infomercials. But when the late 90s came and I started to see the internet happening, I was like, “Oh my god. Wow. This is the holy grail of direct marketing. You’re going to be able to track consumers all the way through the system. This is better than infomercials. I got to get into this right now.” And so I thought, “Okay. Where do I fit in in the internet?” And my theory was that if I got a categoric, generic domain name like beer.com or diamond.com, I would have a certain amount of credibility as an entrepreneur, as a business. As more people came on the internet, I would rise with the tide. And I was like, “Wow. Let me figure out what domain I ought to get.”

And so I made a list. I called it my Super Bowl list, which was, I wanted an industry that advertised at the Super Bowl, figuring that would be a big enough category for me to develop for a few years. So I made the list, it was beer, cars, computers, insurance, credit cards, and top of the list was beer. So I was like, “Oh, I wonder what’s at beer.com.” I typed it in and there was this hobbyist site of a kid with pictures of him and his friends throwing up from drinking too much. And I thought, “Wow.” I looked him up. He’s in Colorado. And I’m thinking, “This guy’s in Colorado with beer.com. He can’t find a beer sponsor?” Because at the top of the page it said, “We need advertisers so we can buy more beer.”

And so I approached him and I said, “Look, I know people that do liquor promotions and why don’t you let me take over beer.com and put together a beer portal site?” I concluded, “Based on my best guesstimates at the time that that domain was maybe worth $100,000.” So I gave them $80,000 in cash and told them to keep 20% because I thought it was going to do really well going forward.

I redeveloped the site, put how to brew beer, rate your favorite beer, get a beer.com email for free. And I put out press about what I was doing and I got calls from all those beer companies and one of them was Interbrew up in Toronto that owns Labatt and Rolling Rock and everything. They said, “Hey, come on up and let’s talk about beer.com.” I went up and two months after I had taken this thing over for $80,000, I sold it to them for $7 million. So I was like, “Oh wow.” I was like, “This is a good industry. I better go back to my Super Bowl list here.”

So I went back to the list and started to acquire, I was able to get diamond.com from a software company that didn’t need it. I wound up eventually getting computer.com, 1-800-computer. And with a partner we did a Super Bowl ad in the 2000 Super Bowl and launched beer.com. I’m sorry, we launched computer.com, 1-800-computer. Had a Superbowl ad. It was this incredible, fun and entrepreneurial learning.

And so as I was doing that when the internet bubble burst, I got the opportunity to own creditcards.com, which I did pretty well with. I actually wound up as an entrepreneur, exiting it too early and had built it up with some partners that wanted to exit it. We exited it for a few million dollars and everybody was happy. But the guy took that same site, same business model and everything, he just applied what we were doing and started buying traffic and increasing the number of leads, and two years later, what we sold him for three million, he turned around and sold to American Capital for 133 million, same website, business model, logo. So I’d have to see-

TG Branfalt: Wow.

Michael Zapolin: … TV commercials for creditcards.com on NBC NBC and want to jump out the window and kill myself. So, thankfully, I’ve been a cannabis user for the last 35 years, and I knew it was a valuable medicine, important medicine in my life, and so I never even… You know if people say, “Oh, drugs, blah.” I just, didn’t even go in my brain. I was like, “This is medicine and I hope everybody eventually can get this.” So I always loved it, wanted to be a part of it. When things went legal in 2012, I participated in some of the early CBD companies and cannabis opportunities and that was great.

But at the same time I sort of had this spiritual mid-life crisis myself and I realized that I’d done everything society told me to do: go make money, have a family, you’ll be totally fulfilled. And I was sitting there like, “Oh, wow, you know what? I just did it all and then I’m happy but I’m not fulfilled. How am I going to get fulfilled?” And I realized that I’d had some good psychedelic experiences when I was younger and I thought, “Wow. If I could use something like Ayahuasca that I’m hearing about, San Pedro cactus, some of these things, to go inside and have that experience with the intent of expanding my consciousness and learning about myself,” I was like, “I think I have to do this or maybe I wasted my whole life.” And that was what led me to go down to Peru and sit with a shaman.

From the infomercial days, I’ve always had equipment to film and edit and stuff. So I said, “Oh, I’ll just make a movie about this, my experience, and then I can share it with other people.” And I was lucky enough to get the actress, Michelle Rodriguez, who was having her own spiritual mid-life crisis and wanted to try Ayahuasca, come with me and some friends down to Peru to have some shamanic experiences. And, of course, changed my life, and I realized, “Hey, you know what? Cannabis is amazing. It is a psychedelic. But it’s so subtle that it doesn’t even get usually put into that same frame as these other psychedelic catalysts.” So my thinking was, “Wow, okay, let me leapfrog cannabis because everybody’s already working to get that out and it’s coming out. Nature’s really intelligent. It knows people need it and it’s bringing it out.” And I thought, as cannabis leads the way, where people like my parents who used to be resistant to marijuana and anything to do with that, now, in their 80s, they’re eating gummies for their health and feeling better. And so they realized, just like a lot of other people now, this is medicine. And I figured, if I can bring forward some of these compounds like psilocybin mushrooms, San Pedro, Ayahuasca, ibogaine to break the heroin and opioid epidemics, ketamine to break the depression in PTSD, this is what’s going to triage society.

So it’s like, if we made legal weed today, yes, society would get better and better and better and better. But we’re in a suicide, addiction, depression epidemic and now we’re coming out of a pandemic with all this PTSD, nothing’s going to triage that, other than these catalysts that can put you into a different state, give you a different perspective and scientifically now have been proven to be able to triage society. So I’m just thrilled. Yesterday was, with the election and couple of states going decriminalizing drugs. Even in Oregon, cocaine and these things, they are being decriminalized, which makes total sense because most people, if you tell them not to do something, they’re going to be so curious that they’re going to have to do it. Where, in Europe and places, when they say, “Hey, everything’s legal. We’re not going to-“

TG Branfalt: Portugal.

Michael Zapolin: “… arrest people.” Yeah, Portugal. Everything winds up better. And so we have to accept that that model exists and make these things available so there can be more education, more opportunities like there are now with cannabis. Where it used to be, I didn’t know what kind of… I might have known whether it’s indoor or outdoor weed, or what state it came from, but now I know so much and then I can find subproducts that can actually be really good for me. And we have to get there with psychedelics really fast because if we don’t, we’re in a crazy situation, where society can go off the rails with…

TG Branfalt: So it’s interesting that you mention the pandemic in sort of this early run-up because there was a month in the middle of the pandemic where every weekend I was doing some sort of psychedelic. And I was a psychedelic user but never at that sort of rate. And coming out of that, the following sort of weeks and months, I was far more at peace with the sort of situation that I was in. And a part of me at that time sort of realized that while I had used psychedelics my whole, my adult life and even in my teenage years, that it wasn’t until then where I sort of was like, “Holy shit. This actually might be a way to help with my depression.”
And, yeah, I mean, I’m a cannabis journalist, so I do read a lot about a lot of these things but I didn’t realize the sort of, the history of psychedelics and their potential role as medicine. And you’ve worked on a couple of films about this, psychedelics and, I mean, you named a couple of psychedelics that I’m not even familiar with. Could you just briefly describe sort of the history and if it’s, I mean, briefly, of psychedelics and their potential role as medicine?

Michael Zapolin: Sure. Yeah. A lot of people don’t know but, of course, in the ’50s and things LSD was legal. ibogaine, which is this incredible addiction interrupter, this used to be publicly sold as a French brand called Lambarene. You could buy it over the counter. Or virility and things, they didn’t really know exactly, but there was for virility and energy and things like that. And so, what happened was, in the ’50s when they started to bring out these SSRI’s, these antidepressants from the pharmaceutical companies, they decided that was a better track for them to go down. So it was very easy with the Vietnam War and the president not wanting people to be going inside and thinking too much about what was going on, that they said, “Let’s shut this thing down. Let’s tell people that we don’t know if they’re safe.”

1966 they were like, “We’re making LSD and other psychedelics illegal because they have to be studied for safety.” And that kind of makes sense to me. I’m like, “Oh, okay, yep. Makes sense.” But here we are now, 54 years later, okay. Millions of people have done these things, many with great benefit. And our Mind Army that’s fighting for the right to pursue happiness, we’re not going to sit here in 2020, knowing what we do about medicine and science, we’re not going to sit here and have somebody tell us that alcohol is good, tobacco is good, but psilocybin mushrooms, those are bad, and even if you’re suicidal or facing addictions, you can’t use them. Sorry, you’re going to have to die. It’s like, “No. We don’t accept that paradigm. We are going to use these. We’re asking the president, whoever that is, to use the executive branch, do an executive order legalizing psychedelic compounds right now for this crisis of mental health and addiction.”

And the way we’re doing this is, number one, to ask them to really say, “Hey, look,” if it’s Donald Trump, “if you want to win the Nobel Prize, you are going to make these compounds legal. You will bring down suicide rates and help the opioid epidemic and actually be recognized for something real, okay, number one. If it’s Joe Biden, we intend to say to him, “Your son, Hunter Biden, who had a drug and alcohol addiction issue, he overcame that using ibogaine, just like we gave Lamar Odom in the film that’s coming out next year…” And we intend to say to Joe Biden, “Hey, if it’s good enough for your son, it’s good enough for everybody else. Get your pen out and start writing this executive order because we’re not going to sit around here just because you have $15,000 or $5000 to send your kid out of the country to do ibogaine. We need this stuff, okay? So make it legal. Accept that just like MDMA right now is being shown through clinical trials with MAPS to be effective in treating PTSD, in a similar way, ketamine is being shown to break suicidal ideation and depression. Psilocybin mushrooms microdosed is going to definitely get rid of all the antidepressants and replace those, just with microdosing psilocybin. So let’s get to it. Let’s not pretend that we don’t know the safety profile.”

And that’s what’s so cool about this moment is, with the internet and social media, if something works, like cannabis, then my parents and people are going to try it. And then if it works for them, it doesn’t matter what anybody else is saying about it. And that’s what’s happening for psychedelics right now, too. It’s so exciting because we’re heading for a cliff as a society, we could go off the cliff, but here is the beauty of nature is it’s bringing these compounds to just take a right turn before we go off the rails. And it’s just nice to see that right in the moment that we all need it, we all tune into the fact that it’s here and it’s available.

TG Branfalt: I mean, you’re obviously hyper passionate on this issue and super knowledgeable. So tell me about some of the challenges that you face as a psychedelic advocate, right? Because I think to a lot of people, the cannabis advocate has sort of been normalized through 50 years of NORML or however long it’s been and magazines, High Times and Culture and this sort of normalization, mainstream-esque… you know, High Times is a trading company now. And so I think psychedelics, in most sort of mainstream America, hasn’t sort of gotten to that sort of same normalization point with psychedelics. So tell me about the challenges you personally face in that role.

Michael Zapolin: Yeah. So what’s cool is I have through film realized… Before that I was like, “Oh, we’re in a celebrity-driven culture. I can either get pissed off about that or I can use that to my advantage.” And I would rather use that to our advantage as it relates to bringing out psychedelics. So what’s exciting to me is I had this organic experience where I was showing my film, The Reality of Truth, here in Florida at the Hippocrates Health Institute and somebody came up to me after the movie and they said, “Hey, I just saw that movie about plant medicine of yours. I’m friends with Lamar Odom, the basketball player, Kardashian, and he’s not in a good position right now. Do you think you could help him with some plant medicine?” And I was like, “Oh, I’d love to help him out and film that. Sounds really cool to share it.”

But what I love is that this movie, you get to see Lamar, you’re like a fly on the wall. You get to see him go through his ketamine experiences with different treatments of ketamine and emerge and say, “I’ve never felt this good in my life.” You get to see him come down to Mexico with me and do ibogaine which is an African root that is very intense but it can break a heroin or opium addiction.

He had 12 strokes, 6 heart attacks, liver damage, kidney failure from being in a drug-overdosed coma. And to see this ibogaine reset him mentally and physically to the point where in the movie you see he says, “I think I feel so good I can make a comeback in professional basketball.” And couple months later, four months later or so, he went and played in a professional tournament in Dubai. And he had this personal rocky moment for himself, where he was like, “I was supposed to die and then I did the ketamine, I lost my fear of death. I did the ibogaine, I lost my fear. I know I’m on… This is like gravy time for me.” And he’s like, “This is so cool. I don’t care. I’m not the same basketball player I was when I was 20 years old but who cares? I’m just enjoying the moment and I’m present.”

And so to see somebody who people think they know personally because they’ve watched them and feel really attached, he’s the perfect celebrity to bring this forward and I’m really excited for him to normalize it. For me, it’s cool because I’ve gotten this moniker of the psychedelic concierge. Which I think is a pretty good description because if you think about you’re at a hotel and you go to a concierge and you’re like, “Hey, where should we go to dinner tonight near the hotel?” They say, “Oh, well, what kind of food do you like? Do you like wine? Do you want there to be music?” And then you tell them and they go, “Oh, go to this place.” So, in the same way, they’re not cooking your dinner, and they’re not making the music, they’re just making a right recommendation. So when celebrities or business people or friends come to me, I do a similar analysis like that concierge. I’m like, “Okay, well, what are you trying to achieve? What’s your intent? What kind of traumas do you have going on? What have you tried? Okay, well, based on that I think…”

In the movie, the Lamar Odom Reborn, I have a formula for him and that formula for him is ketamine plus plant medicine plus a daily practice of meditation, breathing, equals a conscious transformation. So he had to go through that formula. Start by being triaged with ketamine. Because he’d always been told, “Don’t do psychedelics. If something goes wrong as an African American guy, you could be shot by the cops, put in a mental institution.” We have this really unfair thing happening that we need to correct in the psychedelic community, where we have to make this open to everybody, no judgment. Just everybody deserves this. Go inside.

So he’d never done it. He was nervous. But he’d done everything else. He knew there was nothing else he could try to pull himself out. So he agreed to do it. He came down with my partner, Warren Gumpel, who’s my ketamine partner here. He trusted us. He went through the treatments. And then when he felt good and stabilized, I said, “Look, let’s go down to Mexico. You have an addiction profile. You’re an African American guy. There’s this African root that can break an addiction and do a whole physical reset. Who knows, maybe you’re supposed to be having this stuff and you’ve just been cut off from it culturally for generations. So let’s go do it.” And he’s such a cool guy that he was like, “All right. Let’s do it. I got nothing to lose.”

And it’s a very intense experience. It’s not something that I recommend to people unless they need a full reboot or they’re addicted to something that they can’t get off. ibogaine’s so incredible that it basically wipes your prefrontal cortex so you have no cravings. You don’t even have to detox on a ibogaine journey. It’s just a wild 12 hour to 48 hour experience. But when you come out of it, you don’t have cravings, you don’t have anything in your system and you physically are getting this reboot as if you’re 18 years old again. And so this is really cool.

And just a side note, that they’ve recognized anecdotally, it hasn’t been studied because of the legalities, same thing with cannabis and all this, but they realized that a microdose of iboga, this plant, can reverse Parkinson’s Disease. Yeah. Because of what it’s doing in the brain and that repair that it’s capable of doing. So we have to just be smart and just say, “Hey, look, they tricked us with cannabis. Now we know. We’re not going to let them trick us with this psychedelics anymore. We’re going to use these. We’re going to study them, get the benefit.” I love it. That’s where we’re at.

TG Branfalt: So talk to me about, you had mentioned we’re a couple of days removed from the election. During that night, Oregon implemented the medical cannabis. D.C. decriminalized ethnogenic plants, so that doesn’t include MDMA or LSD. Previously, we’ve had Ann Arbor, Michigan, we’ve had Santa Cruz, we’ve had Oakland, Denver, have all passed measures to decriminalize psilocybin. And ultimately, I mean, I’m of the mind where it’s going to sort of follow the same path as cannabis, probably take a little longer. But do you think that this movement can gain the same traction as the early medical cannabis movement despite barriers, such as its drug schedule, such as the general public’s misunderstanding of the substances, and the general stigma of psychedelics?

Michael Zapolin: Yeah. No. That’s a good question. I mean, I think it actually can avoid all the things that cannabis has had to go through because we’re in such a crisis. Six months ago I would have said, “Oh, it’s probably… I don’t know. It could be years. Who knows? We’re going to fight for it but who knows?” But after this crisis, this mental health crisis, I think there’s a suicide epidemic wave that’s coming that this country’s not even ready for and so how do you triage that? And I think a lot of people, while they may not be ready today, they may go, “Oh, Zappy, you’re nuts. You’re not going to get the president to legalize this stuff.” But I’ll tell you what, if 50,000 teenagers committed suicide one day on an app or a website, that would… Which is not far-fetched. There’s already undertones of something like this developing. And so, that’s going to break the fabric of the family and society and people are going to be like, “Holy shit. What do we do?” And then they’re going to go, “Oh, look, it looks like ketamine breaks suicidal ideation. Why don’t we do that?”

I wish people would just do it now and legalize these things out of respect for other human beings. And the fact that this Mind Army, we’re trying to get this stuff legal, because we’re like, “This is my body. This is my mind. If I’m having suicidal thoughts or I’m addicted to something or I’m depressed, I have to be given the opportunity to heal myself. And if I’m not hurting anybody else, then get out of my way. This is 2020. I am not going to sit here and have a conversation with the state government and the local and the DEA. Nope. I’m going right to the president. That’s the person who can sign this executive order. Don’t want to talk to anybody else.” We’re just going to pile as many people on as possible.

So the people that are listening, they can come to mindarmy.org and check it out. Sign the petition. We’re setting up a task force because in every city there are these psychedelic societies, these entheogenic societies and they are just underground because of the legal culture. But if they were able to come to, it was made legal and they could come to the surface and we could have a Yelp for therapists and guides, and if you’re having a bad time, that you would be able to access somebody right, really close to you to help you out. And this is kind of like the model.

I’m a Grateful Dead fan. I’m a Dead Head. I’ve been to 100 shows. And at those shows, I was never cool enough to do it, but some of the people would give up seeing the show and they’d go into the tent and help people that were having a bad trip. And it’s like, these cool people exist all over the place. So we can do harm reduction. We can make sure everybody has a good experience. And then the Mind Army is putting together a psychedelic microdosing handbook with the idea that we have information from MAPS, Third Wave, double-blind, the best techniques to microdose these different things, thinking to ourselves that if the president legalizes this with an executive order, we want people to have this handbook so that they can say, “Oh, okay, I’ve got some mushrooms. Let me see how much I should take, what the basic effect is. Let me figure this out slow in a microdose, not just go, ‘Oh, mushrooms, great. Give me 10 grams. I think I heard that on some podcast.'”

So, we want people to start slow and safe, have a task force in place. But you’re hearing it right here, yesterday’s, or the vote the other day was a referendum on people are demanding to be able to take care of their own mental health right now and that we all accept that these are important, legitimate things. That’s why they’re being legalized by majorities of voters. So we have to pile on.

TG Branfalt: Going back to what I was talking about in my own sort of recent experience, and this idea of the inalienable right to sort of do what you will with your own brain, right? My mother, she’s very open, we have a very good relationship and just a couple of weeks ago, I said, “Mum, I’m going on a trip this weekend, a little MDMA.” And it was finally the first time that she understood. And she’s never really done any sort of psychedelics but I think that she understands now that people are hurting and that my life hasn’t changed dramatically in the time that I’ve been using psychedelics, I think, medically. So to your point, and sort of the mission of your organization, do you think that that message of the inalienable right is more effective, I guess, than the idea that these drugs work?

Michael Zapolin: Yeah. I think it’s a double hit. People are getting, thanks to cannabis, they’re getting this, “Hey, you know what? They were wrong about that and I have to be more open now. I have to do my own due diligence. I can’t just think because they told me if I’d smoke marijuana, I was going to go crazy and rape people and, okay. Now I know. This is medicine. Okay.” And now I’m seeing MDMA. I’ve seen COMPASS Pathways with their psilocybin go public on the Nasdaq with a billion dollar market cap. Cybin up in Canada just raised 45 million the other day. So the Wall Street people and the mainstream people are seeing it in different ways that they need to see it. But it’s all leading to things like your mom, where last year, she might have been like, “Oh, I don’t know. Are you doing that too much?” or something like that. Where, now she’s just like, “Oh, well, good, because I don’t want you to be having mental issues and have these problems that don’t have to exist.” So I think it’s cool. I mean, I thank cannabis and I thank nature because I think nature is so intelligent.

I just want to tell you one fact I heard during the coronavirus while I was quarantining doing psychedelics and watching nature programs and stuff and cool visuals. And the best thing I learned, and this just shows how intelligent these plants are and we got to start giving them credit, in the Papua New Guinea jungle there are these fruit plants and there are fruit bats that eat the fruit off of these plants. After they eat it, they drop the seed down onto the ground or they poop it out and it grows a new tree. Well, the trees realized that the bats were helping them to fertilize these new plants and in a very short time they evolve to make it easier for the bats to hold onto the trees.

TG Branfalt: Super cool.

Michael Zapolin: I mean, that’s consciousness. That’s intelligence. And when you do ibogaine or you have this experience like this where you tap into this ancient plant and then all of a sudden you’re having this high technology information and stuff happening, you’re just like, “Wow. These plants. We should literally get down on the ground and be bowing to these plants-“

TG Branfalt: Not wrong.

Michael Zapolin: “… instead of being these humans who…” My hope is that people look at the turn that we’re about to make back to trusting nature and plants, they’re going to go, “Oh, that generation around 2000, those are the people who went back to nature after these ridiculous humans decided that they didn’t need nature, they were smarter than all that and they could just figure it out with technology.” And I want us to be seen as the group that brought that thing back to trusting nature, going inside, and ideally not taking it too seriously either, because this is a miracle we’re in. And I think a lot of times people are just disconnected from what a miracle we’re in.

And I see it around me and I think this is the power of ketamine, is when you do that experience in a medical doctor’s office… You’re not trying to have a trip, you’re not trying to expand your consciousness, you just don’t want to have depression or addiction. And you go in there… Or PTSD. And you get the enlightened experience and then you go, “Oh, I get it. This is what they’ve been talking about.” And so that opportunity to tap people into that level of new consciousness is amazing. And we have the opportunity to take advantage of that right now and we got to just stick with that and not be distracted.

TG Branfalt: And there’s a recent study I just found that psilocybin worked four times better than antidepressants. And it was, granted, a very small study, a 27-person study or something like that. But, I mean, the fact that we’re getting these studies, I think is really, really important for the overall conversation.

What advice do you have for people who want to learn more about how psychedelics can potentially help with depression and addiction? I mean, having this conversation on a podcast definitely doesn’t even scratch the surface. So what do you recommend for those folks?

Michael Zapolin: I would definitely tell people to watch The Reality of Truth. That movie is all about showing you what the opportunity is with these compounds. And then I would say definitely check out the Mind Army and join us, mindarmy.org, because this is the place that we can all get together. I said this, I was on a conference, a virtual conference the other day and they asked me to speak about advocacy, about activism and I said, “Number one, we have the best product in the world, okay? Nothing works as well. So let’s just embrace that, number one. Number two, we have a majority of people. It’s been shown in the election, we have a majority of people who say we’re in a mental health crisis and we need to use safe and effective compounds that we know about. And then, third, we live in this world where you can tap in through social media and the internet into these large groups and affect them with content and information, and who knows, this show could be the straw that breaks the camel’s back. You just literally don’t know. So we have to advocate. We have to be really strong in our reality which is our product’s incredible and it’s the only thing that’s going to work right now” and just get really cocky in that mode.

And just that’s where we get the, “We don’t want to talk to the state and local and this and that. We’ve seen where that went with cannabis. We want an executive order from the president right now or unfortunately if he needs to wait and have social situations accelerate him to do this, we will be standing by trying to help people to have as good an experience as possible.” But like you said, during this coronavirus, or if you find yourself in Denver or Oregon or Santa Cruz, a psychedelic-neutral zone, you got to take advantage of that opportunity and say, “There’s nowhere else I have to be right now. I’m going to go inside of myself, learn something.” And I guarantee if you do it in the right setting and the right intent, you’re going to have an amazing experience.

TG Branfalt: So, Zappy, I could sit here and have this conversation with you for the next 45 minutes because I’m learning so much and it sort of reinforces, I mean, I guess it reinforces sort of what I’ve been experiencing recently. And to think about this, the referendum, as you put it, that happened during the general election when it comes to psychedelics, to put that in sort of the frame of that people are sort of waking up and then realizing that we have this mental health crisis occurring, I think that’s one of the most interesting sort of perspectives that I’ve had surrounding this issue in my conversations with friends, family, other sort of journalists, that sort of thing. You’ve mentioned your website a couple of times. Is there a place where people can find out some more about you personally or any details you want to direct people to check out before we wrap up here?

Michael Zapolin: No, I mean, I think that mindarmy.org is a great place to come into the mix with me and there’s a lot of ways to engage there. Right now we’ll have more stuff come out but I’d say that’s a good entry point. I do want to say one, I want to future cast something at the end here that’s really exciting and-

TG Branfalt: Go for it.

Michael Zapolin: … this is mind blowing. And I’m involved with this in a business sense but it’s so cool that it exists today as well, which is, that the future of medicine and the future of psychedelics is frequency. And what I mean by that is, right now instead of taking an orange to get some vitamin C and put that in your body, it is now possible to use technology to put some headphones on and they dial up the frequency of vitamin C, it causes an electrical reaction in the brain, which causes a physical reaction in the body, and you can get vitamin C benefit without taking the vitamin C, which means we’re going to be able to dial up a ketamine frequency and give you that frequency and give you a psychedelic experience without taking any organic material.

And this is the great equalizer, where when the government’s going around saying, “Oh, you can’t do this and you can’t do that,” we’re like, “Hey, guess what? We don’t need it. We’re doing it with frequency and as far as I know frequency is totally legal, so thanks anyways.” And it’s amazing because if people are in a place like a cold climate and they can’t get access to a compound or something like that, to be able to get the frequency, have the psychedelic experience and benefit physically, I mean, this is the greatest time to be alive ever. I can’t even go to bed at night. I’m just like, “Oh my god. The frequency is here to mess this whole thing up. All right!”

TG Branfalt: It’s all about energy, man. It really is.

Michael Zapolin: Yeah. For sure.

TG Branfalt: So, I mean, this has been a conversation that we definitely have to have again. You’re a fantastic source, resource of information. Thank you so much for this conversation and just your knowledge and your expertise and your drive and passion for this issue. I really can’t thank you enough, Zappy.

Michael Zapolin: Appreciate it. Keep doing what you’re doing too. I think it’s like the ganjapreneurs are going to become psychedelicpreneurs and frequencypreneurs and you can’t stop entrepreneurs. And now we have these tools and we have the masses and we have everything we need. Now is when we got to get really strong in our vocalizing. Because, last thing I’ll say is I don’t think there’s some conspiracy to keep these psychedelics out of people’s hands. I literally think it’s a lack of education. Doctors don’t know. Politicians don’t know. And in the same way that most doctors don’t really know about nutrition, which is shocking, it’s like, they just weren’t taught. It’s not that they wouldn’t like to know. And we, as the psychedelic community who have had experience and know what’s going on, it’s our job to educate these people. And as long as we do that, it’s all going to work out perfectly.

TG Branfalt: That is Zappy Zapolin. He’s the director of the 2016 documentary, The Reality of Truth and Lamar Odom Reborn, which is set to be released next year, yeah?

Michael Zapolin: Yes. You got it.

TG Branfalt: He’s also the founder of The Ketamine Fund which offers free ketamine to veterans and others who are suicidal and the Mind Army which believes that every human being has the inalienable right to go inside their own minds for answers and healing. Thank you again, Zappy. It’s really been a pleasure.

Michael Zapolin: You too. All right. Thanks for doing what you do. Peace.

TG Branfalt: You can find more episodes of The Ganjapreneur.com Podcast in the podcast section of Ganjapreneur.com on Spotify and in the Apple iTunes store. On the ganjapreneur.com website you’ll find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I have been your hose, TG Branfalt.
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Labor Board: Most Cannabis Employees are Agricultural Workers, Cannot Unionize

The National Labor Relations Board (NLRB) has ruled that most cannabis industry workers can’t form unions because they qualify as agricultural workers. The case was brought to the agency when workers at AgriKind’s Chester, Pennsylvania cultivation facility attempted to unionize with United Food and Commercial Workers 1776, according to a Philadelphia Inquirer report.

“We conclude that although the two employees work in indoor grow rooms akin to greenhouses, which the Board has previously distinguished from traditional exempt agricultural work, they are exempt because they each substantially engage in the primary agricultural functions of harvesting, pruning, and sorting of plants.” – NLRB in a decision dated Oct. 21, 2020 via MJBizDaily

In the decision, the labor board determined that because the two workers did not “significantly transform the natural product from its raw state,” they were ineligible for union protection.

Wendell Young, the president of the UFCW 1776, said the decision is an attempt by the agency to “change the law.” Young pointed to precedent set in the mushroom industry which is allowed to unionize in Pennsylvania under a 2001 court ruling.

“So, we will follow through with this case to the Pennsylvania Labor Relations Board,” Young told the Inquirer. “Workers who are exempt under the NLRB are usually covered by the Pennsylvania Labor Relations Board.”

Agrikind CEO Jon Cohn indicated that the company employs about 70 employees, mostly full time, with plans to hire about 60 more during an upcoming expansion.

“We don’t want the atmosphere here to be management versus labor,” Cohn said in the report. “Granted, we’ve grown really fast and had a ton of turnover. That’s caused some pains. People think growing cannabis is going to be glamorous but it’s really hard work.”

Last October, the Regional Director of the NLRB for Region 1 came to the same conclusion – that most cannabis industry workers are agricultural laborers – but could unionize in states that allow sector employees the right.

The decision stemmed from the UFCW Local 1445’s push to organize the cannabis cultivation and processing facility at New England Treatment Access’s (NETA) Franklin, Massachusetts facility. The union sought to unionize the employees under Massachusetts labor laws through the “card-check” method of organization instead of the secret ballot process required by the NLRA. NETA argued that the cultivation and processing employees were not agricultural laborers and were subject to the federal National Labor Relations Act.

Neither decision appears to prohibit retail employees, such as budtenders and delivery drivers, from forming unions under federal law.

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Report: Montana Has Highest Racial Disparity In Cannabis Arrests

In Montana, Black people are 9.6 times more likely to be arrested for cannabis possession than their white counterparts – the widest disparity in the U.S., according to American Civil Liberties Union data compiled by the Cincinnati, Ohio-based Joslyn Law Firm. Colorado had the lowest racial disparity with Black people 1.5 times more likely to be arrested for possession.

The report uses data from 2010 to 2018.

The largest racial disparities in cannabis possession arrests were in Pickens County, Georgia, where the arrest rate of Black people was 97.3 times higher than the white arrest rate – 321 white people were arrested for marijuana possession during the period analyzed compared to 31,243 Black people. DeKalb County, Alabama was the second-highest county for racial disparities in cannabis arrests at 44.6 to 1, the report found.

Nationally, Black people are 3.6 times more likely to be arrested for cannabis possession than their white counterparts – this despite studies that have found Black and white people use cannabis at similar rates.

In Kentucky, Black people were arrested for possession 9.4 times more often than white people, followed by Illinois, Iowa, and West Virginia at 7.5 times and 7.3 times each, respectively. The report does not include post-legalization data from Illinois, which was the first state to legalize cannabis via the Legislature in 2019. Illinois State Police and the governor expunged more than 500,000 cannabis-related criminal records on the final day of 2020.

Minnesota, North Dakota, South Dakota, and Wyoming all saw Black people arrested for cannabis possession at rates at least five times higher than white people, while Utah neared the mark at 4.9 times, the report found. Alabama, Connecticut, Delaware, New Hampshire, Maine Massachusetts, New Mexico, Kansas, Oklahoma, and Wisconsin all saw cannabis arrest rates four-times higher among Black people and of those states only Massachusetts has legalized sales and possession for adults. Idaho was close to the mark with cannabis arrest rates 3.9 times higher for Black people than white people int the state.

Michigan arrest rates were consistent with the national average of disparities, followed by Arizona, Georgia, Indiana, Louisiana, Ohio, Pennsylvania, Nebraska, Nevada New Jersey, Rhode Island, North Carolina, South Carolina, Tennessee, which reached a three-times rate of disparity but fell below the 3.6% average.

Arkansas, Maryland, Mississippi, Missouri, New York, Texas, and Washington state each saw arrest rate disparities between 2.1 and 2.9 times, while Alaska, California, Colorado, Hawaii, and Oregon saw disparate rates between 1.5 and 1.8 times. Three of those four states have legalized cannabis for adults.

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Cannabis Grow Tech Company Agrify Lists on Nasdaq

Cannabis industry software company Agrify last week began trading on the Nasdaq under the “AGFY” symbol after completing a $54 million initial public offering. The IPO, which closed February 1, priced 5,400,000 common stock shares at $10 per share.

Maxim Group LLC and Roth Capital Partners acted as joint book-running managers for the offering.

Since the listing, Agrify has seen its shares as high as $15, and as low as $10.59.

“This is an incredible step forward to solidifying Agrify’s foothold in the indoor agriculture and tech space,” Agrify president and CEO Raymond Nobu Chang said in an interview with Green Market Report.

“We look forward to empowering a generation of modern growers to achieve better consistency and quality through the understanding that cultivation techniques must evolve to meet the market’s future needs.” – Nobu Chang to Green Market Report

The company does not cultivate, come in contact with, distribute or dispense cannabis or any cannabis derivatives that are currently prohibited under U.S. federal law. Its cultivation solutions can be used by indoor cannabis cultivators.

Agrify, based in Burlington, Massachusetts, reported 2019 net revenues of $4 million, which grew to $7.7 million for nine months ending September 30, 2020, according to Green Market Report, with net losses for those nine months of $8.5 million.

In their Securities and Exchange Commission filing outlined by Green Market Report, the company said they expect to “recognize revenue of approximately $40 million in 2021 and the rest gradually thereafter.”

“As of December 31, 2020,” the company said, “we have $105 million of carefully vetted potential sales opportunities (which we refer to as our qualified pipeline). Of this, $78 million of the qualified pipeline was generated through our company directly and $27 million through our Agrify-Valiant Joint-Venture.” The firm noted it planned to convert the pipeline into confirmed bookings over the next year.

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Study: 40% of Chronic Pain Patients Replace Opioids with Cannabis

A survey of 525 chronic pain patients who had used prescription opioid medications continuously for at least three months in addition to medical cannabis found 40.4% of respondents had replaced their opioid-based medications with cannabis.

Another 45.2% reported decreasing their reliance on opioids, with 13.3% reporting no change in their use, and 1.1% saying their opioid use increased.

Nearly half of respondents (48.2%) indicated a 40%-100% pain decrease while using both cannabis and opioids, while 8.6% had no change and 2.6% said their pain was actually worse. Eighty percent of those surveyed reported an improved quality of life while using medical cannabis.

Nearly 63% of respondents said they did not want to continue using opioid-based medications.

“Patients in this study reported that cannabis was a useful adjunct and substitute for prescription opioids in treating their chronic pain and had the added benefit of improving the ability to function and quality of life.” — A Survey on the Effect That Medical Cannabis Has on Prescription Opioid Medication Usage for the Treatment of Chronic Pain at Three Medical Cannabis Practice Sites, Cureus, Dec. 2, 2020

The study used data from surveys conducted through Integr8 Health, three affiliated cannabis medical practices in Maine and Massachusetts. A total of 1181 patients responded to the survey but 656 were excluded for not using medical cannabis in combination with opioids or not meeting the definition of chronic pain. The majority of the respondents were male (55.8%) and nearly one-third were aged 46 to 55, while another quarter were 56- to 65-years-old.

The study was authored by Intigr8 Medical Director Dustin Sulak and Kevin M. Takakuwa, a member of the Society of Cannabis Clinicians. Cureus is a San Francisco, California-based open-access medical journal.

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What We Know About Biden’s Cabinet on Cannabis

With Democratic President-Elect Joe Biden set for inauguration next week – and with his party in control of both chambers of Congress (albeit the narrowest of majorities in the Senate) – cannabis legalization could, finally, get at least a debate in both houses.

There are three measures that the 117th U.S. Congress could consider during Biden’s first term: the SAFE Banking and MORE Acts – which were approved by the Democrat-controlled House in 2019 and 2020, respectively, and the STATES Act, a measure which would give states control over cannabis laws without federal interference that never made it to the House floor.

Were any of the reforms approved by Congress, responsibility for enacting and enforcing provisions of the law would be the responsibility of several government agencies led by Biden’s Cabinet picks. The SAFE Act, for example, would require regulation (and buy-in) from the Treasury Department; the MORE Act would likely involve a host of agencies, including but not limited to Health and Human Services, and the departments of Labor, Commerce, and Justice. The STATES Act would also likely hinge on support from the Justice Department and perhaps Commerce.

Many of Biden’s picks are veterans of the Obama Administration – for which the former Senator from Delaware served as vice president – such as Agriculture Secretary nominee Tom Vilsack, former Federal Reserve Chair Janet Yellen, and Domestic Policy Council Chair Susan Rice. Others, including Vice President-Elect Kamala Harris, HHS Secretary nominee Xavier Becerra (California), and Labor Secretary nominee Marty Walsh (Massachusetts), come from states that have legalized cannabis for adult use.

A host of nominees that could play a role were Congress to end federal cannabis prohibition simply have made no public statements on the issue. For example, Veterans Administration secretary pick Denis McDonough, former President Barack Obama’s chief of staff who would be responsible for implementing directives for medical cannabis use for veterans in VA care, has never indicated support or opposition for the reforms. Neither have Council of Economic Advisors Chair nominee Cecilia Rouse, a Harvard-educated economist who serves as dean of the Princeton School of Public and International Affairs; Linda Thomas-Greenfield, who served as assistant secretary of state for African affairs in the State Department’s Bureau of African Affairs from 2013 to 2017 who was tabbed as ambassador to the United Nations which has said cannabis legalization violates international drug treaties; Environmental Protection Agency Secretary nominee and current Secretary of North Carolina’s Department of Environmental Quality Michael S. Regan; nor Isabel Guzman, California’s Small Business Association Advocate nominated to lead the Small Business Administration.

In an interview discussing Biden’s cabinet picks – which still require Senate confirmation – NORML Political Director Justin Strekal explained that cannabis legalization might not be at the forefront of the new administration’s policy agenda as the nation continues to grapple with the coronavirus and the fallout from the waning days of the Trump Administration – including a possible impeachment trial in the first 100 days of the new Congress.

“Remember, there is no such thing as federal legalization, just ending federal prohibition,” Strekal said in a phone interview with Ganjapreneur. “I’d be hard-pressed to believe it will be a priority [for the administration] but I am convinced it will be a priority for the new Congress.”

Attorney General

Attorney General nominee Merrick Garland is likely the cabinet pick that would have the most outsized role on driving the administration’s policy on cannabis and cannabis law enforcement. Garland, who has served as a circuit judge for the Court of Appeals District of Columbia circuit since 1997, has never made public comments on broad legalization leaving us to rely on just one case to gauge how he has approached the issue.

In the 2012 case, Americans For Safe Access v Drug Enforcement Administration which examined whether the DEA had meaningfully considered the potential use for cannabis as a medical therapy, Garland joined the majority opinion which sided with the DEA.

“…because the agency’s factual findings in this case are supported by substantial evidence and because those factual findings reasonably support the agency’s final decision not to reschedule marijuana, we must uphold the agency action,” the opinion concludes.

But in all likelihood, we can expect Garland to be better for cannabis policy than, say Jeff Sessions, who rescinded the Obama-era Cole Memo shortly after assuming the AG role in the Trump Administration. Or a Bill Barr, who allegedly directed the agency’s Antitrust Division merger investigations to target cannabis businesses because of his personal distaste for the industry.

Treasury Secretary

If confirmed as head of Treasury, Yellen, Strekal explained, would set the “dynamics of safe harbor” for cannabis businesses as it relates to industry’s financial rules and “to what scope they are allowed to handle money.”

Yellen has also made no overt public statements related to cannabis reforms; however, she was chair of the Federal Reserve from 2014 to 2018, during which the agency denied Denver, Colorado’s Fourth Corner Credit Union – a non-profit cooperative formed by state-licensed cannabusiness – its application for a master account, Alt-M reported at the time of the decision. That decision forced the state’s cannabis operators to continue doing business on a cash-only basis.

Secretary of Labor

Strekal had a mixed opinion on Boston, Massachusetts Mayor Marty Walsh, who is tabbed to lead the Labor Department. On one hand, Strekal said, Walsh did oppose the 2016 ballot initiative to legalize cannabis in the state but, Strekal admitted, he is “much better [on cannabis] than four years ago.”

The mayor is “very pro-union,” Strekal explained, adding that broad unionization would add “legitimacy” to the industry and help with “buy-in from local communities.” Prior to his election as Mayor of Bean Town, Walsh served as the president of the Laborer’s Union Local 223 and in 2010 was elected as secretary-treasurer and general agent of the Boston Metropolitan District Building Trades Council, a union umbrella group. In 2011, Walsh was named head of the Boston Building Trades.

It should be noted that in a 2019 interview with One37PM, Walsh said his opinions on cannabis “have not changed.”

“I will say though that the legalization has reaffirmed my commitment to making sure that we’re taking proactive steps to create a strong regulatory process that also brings much-needed equity to this new industry. Cities in other states with recreational marijuana have run into serious equity problems, both in who is profiting from the sales and where the stores are located.” – Walsh to One37PM

Agriculture Secretary

Following Vilsack’s nomination to lead the Agriculture Department, Jonathan Miller, the general counsel to the U.S. Hemp Roundtable, described the former Iowa governor as “a long-time champion of hemp” in an interview with Hemp Grower.

“The USDA under Vilsack recognized that ‘market research’ under the 2014 Farm Bill included product sales … and facilitate[ed] the initial growth of the program, setting the table for the 2018 Farm Bill,” Miller said in the report.

“Throughout the administration, senior aides to Vilsack and other USDA officials were always responsive to industry needs, and the U.S. Hemp Roundtable developed a strong relationship and rapport with the Vilsack team. We look forward to renewing that in January.”

In 2016, during an on-stage conversation with former President Bill Clinton at the Clinton Global Initiative, the former president remarked that he had seen a hemp crop in Milwaukee, Wisconsin that he was told sold for $1 million an acre. Vilsack remarked, “With the exception of the state of Colorado and a few other states that have legalized another product, there are not very many commodities that you can plant, Mr. President, and then grow up to get a million bucks.”

However, during his time as governor, Vilsack did adopt the National Governors Association policies on illegal drugs, which included an anti-legalization platform stating the reforms were “not a viable alternative [to enforcement], either as a philosophy or as a practical reality.”

Biden’s Pro-Cannabis Nominees Cover Commerce, Interior, and HHS

Rhode Island Gov. Gina Raimondo, nominated to lead the Commerce Department, actively pushed for legalization in her state and included adult-use legalization in her 2020 budget. The plan would have included provisions opposed by many industry activists – such as the prohibition of home cultivation, a cap on THC, and putting sales in the hand of the state like some states have in place for alcohol.

In an interview last year with the Providence Journal, Raimondo said she supported the state-run model because it is “the most controlled way to do it, arguably the safest, and the way to maximize state revenue.”

The Commerce Department is responsible for promoting economic growth, job creation, and balanced economic development – which would all be enhanced by federal legalization. A 2016 Tax Foundation report suggests a mature cannabis industry could generate up to $28 billion in tax revenues for federal, state, and local governments, including $7 billion in federal revenue: $5.5 billion from business taxes and $1.5 billion from income and payroll taxes. A Leafly report from February found that the legal U.S. cannabis market supports 243,700 jobs – and that’s without any federal changes.

Biden’s Department of Interior nominee Deb Haaland – the first Native American to hold the post – would be charged with managing and sustaining America’s lands, water, wildlife, and energy resources, in addition to upholding treaties with tribal nations. It’s a post that could have a larger role in legalization than many realize, working with the USDA to develop some cultivation rules and overseeing legalization on Tribal lands.

Haaland, who currently serves as Representative of New Mexico in Congress and is a member of the House Cannabis Caucus, voted in favor of the MORE Act last year.

“Minor drug offenses shouldn’t ruin people’s lives, but the failed drug policies in this country tear families apart and target communities of color. I’ve seen the damage done. The MORE Act is the first step to addressing policies that criminalize people of color. As a co-sponsor of this bill, I’m proud to take this step and I hope my colleagues in the Senate will take a stand for justice so it goes to the President’s desk.” – Haaland in a statement

During her first term, she introduced an amendment to protect tribal cannabis programs as part of the Fiscal Year ’20 DOJ funding package, preventing the agency from using funds to interfere with Tribe-approved cannabis reforms. The amendment was the first tribal cannabis amendment ever offered and passed on the House floor.

California Attorney General Xavier Becerra has defended his state’s legalization and, as head of HHS could oversee orders necessary to reclassify cannabis under the Controlled Substances Act. In a Los Angeles Times interview in 2017, Becerra remarked that the “federal government has to catch up and get into the 21st century” regarding cannabis law – a Secretary Bacerra could help the feds catch up.

“We have to make sure the federal government is helping us, not hindering us, when it comes to coming up with a good way to regulate it. So it behooves the federal government to pull its head from underneath the sand and start to figure out how to do this the right way. There are far more important things to worry about than whether someone’s smoking marijuana for medicinal purposes or not.” – Bacerra to the L.A. Times

On the flipside, in his role as California AG, Becerra’s office prosecuted a number of illegal cultivation cases, saying the illicit cultivation sites damage wildlife habitats, poison water, and hurt communities. In October, Becerra said the office’s Campaign Against Marijuana Planting (CAMP) program eradicated 1.1 million illegally cultivated plants across 455 sites over 13 weeks.

Bercerra also served in the U.S. House from 1993 to 2017 and during his tenure voted in favor of several cannabis-related spending bill amendments, including a 2015 provision preventing the Justice Department from using funds to enforce federal law in states that had approved cannabis reforms.

According to a Marijuana Moment analysis, Becerra voted for a rider to protect state medical cannabis programs each time it came up for a vote while he was in office. He also approved amendments to let the VA recommend medical cannabis to veterans, protect state-approved industrial hemp and CBD programs, give cannabusinesses access to traditional financial services, and boost federal hemp research.

If approved by the Senate, Biden’s cabinet would be the most diverse in the history of the U.S. and that diversity could be advantageous – rather than obstructionist – if Congress passes all (or some) of the major cannabis proposals.

When asked to grade Biden’s proposed cabinet on their cannabis positions, Strekal responded, “The burden is on them to prove themselves.”

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Cannabis Testing Lab Penalized for Operating Without License

A Portland, Maine medical cannabis testing lab has been shut down due to operating without proper city permits and licenses. According to the Portland Press Herald, ProVerde Laboratories was operating without a certificate of occupancy or business license and was open absent a cannabis license from the city.

After citations were issued by the city’s licensing and permitting and fire departments in December, Christopher Hudalla — the Massachusetts-based testing lab’s founder and chief scientist — said he was unaware medical cannabis laboratories needed a license, only labs testing adult-use cannabis. Although he is correct, the state does not require medical cannabis testing and therefore does not register medical cannabis product testing labs, the city of Portland does, the Press Herald reports.

“No individual or entity may operate a marijuana business within the City without first obtaining a license from the City.” — City ordinance excerpt, via the report

Currently in the process of updating its building permit, ProVerde was granted a six-month temporary adult-use cannabis testing license in April but that has expired, Hudalla said. He said the company plans to apply for a new license and has not laid off its Portland staff, but the licensure process is complicated and continues to be hampered by COVID-19.

ProVerde must remove all THC-rich cannabis from the business and is not allowed to test THC-rich cannabis until a new permit is issued by the city. However, the lab can continue to test CBD  and hemp products without a license. A new inspection is scheduled for February 2.

Hudalla insists his lab is necessary and says they have detected “substantial contamination” from pesticides in Maine medical cannabis samples. Despite outlawing “high-risk” pesticides for medical cannabis cultivation, Maine does not require pesticide tests for products destined for medical cannabis patients.

That may change this year, however, with the introduction of a new bill by Rep. Patricia Hymanson that requires more thorough testing for medical cannabis products similar to the state’s adult-use inventory.

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Curaleaf Announces 16.5M-Share Stock Offering

In an effort to raise more than C$275 million, Curaleaf Holdings, Inc. is offering 16.5 million subordinate voting shares at a C$16.70 per share price, the company announced yesterday.

In a statement, Boris Jordan, Curaleaf executive chairman of the board, anticipated the results of Tuesday’s Special Election in Georgia – which gave Democrats control of the Senate – would accelerate federal legalization in the U.S. and “newly enhanced opportunities in the sector.”

Curaleaf, based in Wakefield, Massachusetts, operates in 20 states and is traded on the Canadian Securities Exchange under the “CURA” symbol and on the U.S. OTC market under “CURLF.”

“With the recent adult-use cannabis deregulation initiatives in New Jersey and Arizona, and New York announcing its proposal to legalize and create a comprehensive system to oversee and regulate cannabis as part of the 2021 State of the State, now is a pivotal time to raise additional capital to support our growth initiatives as we continue to build out our capabilities in these new markets. With the added balance sheet flexibility this offering will provide, Curaleaf will be increasingly well positioned to leverage potential high-return organic and well as inorganic growth opportunities going forward.” – Jordan in a press release

The company indicates it plans to use the net proceeds of the funds raised “for working capital and general corporate purposes.” Additionally, the firm said it intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the securities on the same terms and conditions as the proposed offering. Canaccord Genuity is serving as the lead underwriter for the offering on behalf of a syndicate of underwriters including Beacon Securities Limited, Cantor Fitzgerald Canada Corp., Cormark Securities Inc., Eight Capital, and Haywood Securities Inc., the company said.

In November, Curaleaf reported record financial and operational results for the third quarter of the year with pro forma revenue of $215.3 million, and year-to-date managed revenue of $419.6 million, including third-quarter revenues of $193.2 million – a 164% increase.

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John Manlove: Supporting Cannabis Brands with Wholesale Solutions

Between strict regulations and steep competition, cannabis entrepreneurs face a lot of challenges when bringing products to market — platforms like Apex Trading, however, offer unique solutions for growing and maintaining professional relationships between members of the cannabis industry.

In this Q&A, John discusses his 2014 entry into the business of cannabis wholesale, the founding and goals of Apex Trading, and the company’s “Plant First” ethos — which prioritizes the responsible representation of the cannabis industry. Scroll down to read the full interview and learn about how Apex Trading helps cannabis growers, manufacturers, and retailers buy and sell their products, manage sales data, maintain regulatory compliance, and more!


Ganjapreneur: How was Apex Trading founded? Did the founders have backgrounds in cannabis prior to creating a wholesale marketplace?

John Manlove: Our founding story is a pretty interesting one. The founding members of Apex Trading came from Tradiv, one of the industry’s first wholesale marketplaces and an alum of Canopy Boulder’s inaugural cohort. While Tradiv was a first mover, its history was marred with poor executive decisions, both within the company and external. The downfall of Tradiv ultimately led to the founding of Apex Trading. We leaned on years of technical and distribution experience to develop a new platform that addresses the issues the industry has with open marketplaces while also increasing efficiencies through a robust inventory and business management suite of features.

What’s more, Apex Trading was founded on the principle of “Plant First.” We recognize that we wouldn’t be here without the plant or the pioneers who risked everything to allow so many of us the opportunity today to work in this industry. Each decision we make is guided by this ethos and is evident in our product and team.

What are some examples of how the ‘Plant First’ ethos has been put into practice?

Apex Trading did not come out of Silicon Valley or New York City looking to cash in on the blood, sweat and tears of those who built cannabis. Our team is made up of super talented individuals who have cannabis backgrounds or have a strong passion for the industry. Our product is designed to help cannabis producers focus more on what they love – crafting cannabis – and less on the trappings of mainstream business operations. In fact, everyone on the team, including me, spends time “in the field” – going to grows, extraction facilities, edibles makers, etc. – to ensure we have the best understanding of their specific needs.

Monetarily, we’re supporting members of organizations such as the NCIA, OCA and ORCA. We also make one-off contributions and sponsor, attend and promote local cannabis community events. As our revenue continues to grow, we’re looking for more ways to proportionally support organizations such as the Last Prisoner Project, Marijuana Policy Project, and Veterans Cannabis Project.

What’s more, when our cannabis community is in need, we step up and do what we can to help. With the challenging times of Covid or the recent wildfires that ravaged cultivations across the west, we’ve worked with some of our hard-hit clients to create deferred payments or discounted pricing.

Finally, we ensure that we present cannabis and the cannabis industry in the best possible light at all times. That means, we show up prepared, pay our bills on time, meet our deadlines with external companies, respectfully refer to the plant as “cannabis,” and we consume responsibly. The last thing we want is for mainstream business to view the cannabis industry as a bunch of stoner/slackers. This plant has given us so much and we just want to make sure we’re treating it with the respect it deserves.

Who is Apex Trading meant for, and how does the platform generate value for its users?

Apex Trading is designed for each business within the wholesale supply chain. This includes cultivators, extractors, product manufacturers, distributors and retailers. Each of these business types are able to manage every aspect of their wholesale operations within Apex Trading, from inventory and orders to sales and reporting. Through a robust set of industry tailored features, we are able to eliminate the manual processes teams go through while strengthening the relationship between the seller and their buyers.

What makes Apex Trading different from other wholesale platforms?

Our biggest differentiator is we’re not an open marketplace. While marketplaces are the norm, they don’t value the relationship between a seller and their buyers. A seller is consistently having to compete solely based on potency and price and unable to promote the other aspects of their products, which differentiate them from the competition. Additionally, in a marketplace, buyers are exposed to competing products and brands, which slowly disintegrates the brand equity of the seller. Early on, we realized just how important the relationship aspect is for the cannabis industry. Trust and communication between parties is the foundation on which legal cannabis was built and we carry that over into our tools today.

We have found that craft producers, established brands with sales teams, and states where demand exceeds supply need an alternative to an open marketplace and that’s our niche.

How do you continue to adapt to the rapidly evolving world of cannabis regulations?

This is a great question. Having been in the industry since 2014, I have experienced a ton of regulatory change. We’re lucky in that ancillary businesses aren’t typically as directly impacted by regulatory changes as license holders. That being said, we remain on top of federal, state and local regulatory changes and adjust our platform within a market to make sure our clients remain compliant. A basic example of this would be new testing regulations, such as microbials or pesticides. When these new testing mandates came into effect, we quickly added new document types and icons within the platform to allow sellers to easily provide buyers with these compliance docs both prior to and upon ordering.

Which markets does Apex Trading currently serve? Do you plan to expand to new territories in the coming year?

Apex Trading is available in all medical and adult use markets. Currently, the majority of our clients are within 7 states – Colorado, Oregon, Washington, California, Oklahoma, Massachusetts, and Michigan.

We’re rapidly expanding into new states and expect to have a strong presence in 20 by the end of 2021.

Given that Apex integrates with METRC, do you provide METRC customer support and/or troubleshooting?

Of course. We founded the company on the principle of responsiveness and providing clients with the best customer service possible. We offer free METRC implementation/training and constantly work with our clients to address METRC issues and provide them with solutions within Apex Trading. As a software company we are constantly evolving. A key aspect of our evolution is through enhancing our current integrations with systems like METRC and then ensuring our clients are taking advantage of the benefits.

What are some of the ways that your clients use the reporting and analytics features to grow their business?

Data is the driver of all decision making. From inventory and sales to team performance, we provide our clients with actionable data and insights they utilize to better manage their team and grow their business. We recognize that each business is different and what’s important to one client might differ from the other. To address this, we’ve built customizable reports where clients are able to decide what data they want to see and how it should be presented. Additionally, we are about to roll out a data partnership with a well-known retail analytics company to provide the market with actionable insights from both the retail and wholesale parts of the market.

From signing up to generating new leads, what is the onboarding experience like for Apex Trading users?

We try and make onboarding as simple as possible and recognize that new software can be daunting and change comes hard within the industry. When an account is created, users are taken through an onboard wizard, which simplifies the initial setup process. We’ve eliminated the data entry aspect through migration and upload tools, allowing new clients to get setup and go live within hours. During this process, our Client Success team schedules training sessions, which allows users to ask questions and familiarize themselves with the platform. What’s more. support doesn’t end after going live – we have online chat with tech support and our Success team is always available to assist clients.

What can you tell us about your wholesale hemp platform, Bushel 44? What facets of the hemp industry does Bushel 44 work with?

Bushel44 is very similar to Apex Trading, but designed specifically for the hemp industry. The hemp industry is flooded with marketplaces where Bushel44 is the only comprehensive hemp-specific inventory, order, sales and business management platform available. We work with the entire supply chain, with exception of B2C.

What do you think the next few years have in store for the cannabis and hemp industries?

I believe we will see federal cannabis decriminalization within the next few years. The House recently passed H.R. 3884, which if it gets passed by the Senate, will do just that. More states will continue to pass medical or adult use. However, if we reflect on previous comments made by President-Elect Biden and influential Republican Senators, I don’t think we should expect to see Federal Legislation or cross-state commerce anytime soon.

It will be interesting to see what happens within the hemp industry. There is substantial progress being made within the EU regarding CBD, and I believe this will continue resulting in substantial opportunity there. One somewhat neglected aspect of hemp are the industrial applications, which I find fascinating. Hemp has the potential to reduce dependence on plastic, provide more sustainable and durable building materials, and revolutionize the fabric and textile industries.


Thank you, John, for answering our questions! You can learn more about John Manlove and Apex Trading at ApexTrading.com.

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New York Gov. Calls for Legalization & New Cannabis Management Office

New York Gov. Andrew Cuomo (D) on Wednesday announced a proposal to create an Office of Cannabis Management which would oversee the state’s medical cannabis and hemp programs, along with an adult-use cannabis regime once approved by lawmakers.

The move telegraphs the governor’s plan to include legalization in his Executive Budget for the third time – in 2019 and 2020 Cuomo had included the reforms as part of his annual budget request but both times was rebuffed by lawmakers.

Cuomo said that the coronavirus pandemic had created “many challenges” for the state but “also created a number of opportunities to correct longstanding wrongs and build New York back better than ever before.”

“Not only will legalizing and regulating the adult-use cannabis market provide the opportunity to generate much-needed revenue, but it also allows us to directly support the individuals and communities that have been most harmed by decades of cannabis prohibition.” – Cuomo in a statement

According to the governor’s office, once fully implemented, cannabis legalization is expected to generate more than $300 million in tax revenues for the state. In November, Cuomo said he expected legalization to pass during the next session “because the state is desperate for funding.”

In 2019, Cuomo had included the reforms as part of his budget platform; however, the plan faced strong resistance from the New York State Sheriff’s Association, the New York State Parents Teachers Association, a statewide physicians lobby, drug treatment advocates, Smart Approaches to Marijuana, and moderate downstate Democrats. Instead, lawmakers agreed to expand the state’s cannabis decriminalization thresholds from 25 grams to 57 grams and lower the maximum penalties for possession to $200. The measure also included provisions for expungement of low-level cannabis crimes.

Last session, the reforms were pulled from budget talks amid the pandemic, as Cuomo said the state would pass a “bare-bones” budget in the face of an extraordinary budget shortfall caused, in part, by the economic shutdown in the state. Using the budget as a vehicle to legalize cannabis was not a slam dunk for Cuomo anyway prior to the pandemic as the governor and lawmakers reportedly had disagreements over how the revenues would be disbursed.

Many expected that Cuomo would again push for broad legalization in the budget after voters in New Jersey approved the reforms in November. New York is also bordered by Vermont, Massachusetts, and Canada – all of which have legalized cannabis for adults.

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Rhode Island to Select Six Medical Cannabis Providers in 2021

Rhode Island is relying on a lottery system to choose providers for its fledgling medical cannabis system and is expected to announce the winners sometime in 2021, the Boston Globe reports.

Although Rhode Island is limiting the number of “care facilities” to only six across the entire state — the state is divided into six zones with one care facility in each zone — the state had received 45 applications from 28 different non-profits by the December 15 deadline.

The names divulged on the applications contain a “who’s who” of lobbyists, current and ex-politicians, and business owners, the Globe reports. Many of them betting on eventually being the first in line for adult-use licenses, applicants paid a non-refundable $10,000 application fee and are expected to pay a $500,000 annual licensing fee to the state if they are selected.

“People are assuming that the compassion centers will be the exclusive sellers of recreational marijuana. It’s literally a roll of the dice, financially.” — Jeff Padwa, cannabis attorney, via the Boston Globe

Despite New Jersey, Massachusetts, and other East Coast states having legalized adult-use cannabis, the issue is not a slam dunk in Rhode Island. COVID-19 put a damper on Gov. Gina Raimondo’s (D) plans to propose a regulated market in 2020. Now, the incoming Speaker of the House Joseph Shekarchi says he is not ready to “endorse a plan,” nor would he “bet the farm” on adult-use cannabis coming to Rhode Island in 2021.

A 2017 poll revealed 59% of Rhode Islanders supported legalizing adult-use cannabis. 36 percent said they were opposed to the move.

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