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Washington Rec. Sales Have Surpassed $1 Billion

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

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

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

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

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

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Dr. Ethan Russo: Endocannabinoid Nutrition

In this week’s podcast episode, Dr. Ethan Russo — one of our earliest and most esteemed guests — returns to the show to discuss his latest article, “Beyond Cannabis: Plants and the Endocannabinoid System.”

Dr. Russo is a neurologist and psychopharmacology researcher, and is the former Senior Medical Advisor for GW Pharmaceuticals. He worked as a clinical neurologist in Missoula, Montana for 20 years, where much of his practice focused on the treatment of chronic pain. Today, Dr. Russo is one of the world’s leading researchers in the field of cannabis terpenes and the endocannabinoid system. He has authored several books about cannabis, cannabinoids, pharmacology, and rare botanicals, and he has published over 30 articles covering neurology, pain management, cannabis, and ethno-botany.

Listen along, or read the transcript below, as Dr. Russo and Ganjapreneur podcast host Shango Los discuss how various foods — including black pepper, kava, the common carrot, and more — can actually help balance the cannabinoid levels in your body.

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Read the transcript:

Shango Los:  Hi there, and welcome to the Ganjapreneur.com Podcast. I am your host, Shango Los. The Ganjapreneur.com Podcast gives us an opportunity to speak directly to entrepreneurs, cannabis growers, product developers and cannabis medicine researchers all focused on making the most of cannabis normalization. As your host, I do my best to bring you original cannabis industry ideas that will ignite your own entrepreneurial spark, and give you actionable information to improve your own business strategy and improve your health and the health of cannabis patients everywhere.

Today, my guest is Dr. Ethan Russo. Ethan Russo is a neurologist, psychopharmacology researcher and former Senior Medical Advisor to GW Pharmaceuticals. He served as study physician to GW for three phase three clinical of Sativex. He graduated from the University of Pennsylvania and the University of Massachusetts Medical School before residencies in pediatrics in Phoenix, Arizona and in child and adult neurology at the University of Washington in Seattle. He was a clinical neurologist in Missoula, Montana for 20 years and a practice with a strong chronic pain component. In 1995 he pursued a three month sabbatical doing ethno-botanical research with indigenous peoples in Peru. He is currently past President of the International Cannabinoid Research Society and is former Chairman of the International Association of Cannabinoid Medicines.

He has authored several books on cannabis, cannabinoids, pharmacology, and rare botanicals and has also published over 30 articles in neurology, pain management, cannabis, and ethno-botany. You can see his full lists of books and credits at the Phytecs website where he is presently Medical Director. To those of you who study his work and seek out his mentorship, he is the godfather of cannabis terpene research as well as a leader in research and popularization of the endocannabinoid system. Welcome back to the show, Ethan.

Dr. Ethan Russo: Well, thank you, it’s great to be back.

Shango Los: For those of you who are unfamiliar with the endocannabinoid system, you may want to hit pause and go back and listen to podcast episode number three where we speak with Dr. Russo about the endocannabinoid deficiency and he talks a lot about the ECS itself. Also, you might want to check out our recent episode with Dr. Greg Gerdeman on the popularization of the endocannabinoid system in human culture.

Today, we’re here to talk about Dr. Russo’s new article recently published in Trends in Pharmaceutical Science entitled “Beyond Cannabis: Plants and the Endocannabinoid System.” Ethan, with all of that, let’s start with a really solid basis for our discussion. For the folks who are not familiar with endocannabinoid system, yet, will you just give us a brief summary to kind of get them on the same page.

Dr. Ethan Russo: Sure, I’d be happy to. The endocannabinoid system, as one can tell from the name, was named after cannabis. This has to do with the fact that the main psychoactive component of cannabis, tetrahydrocannabinol or THC affects the system. One might first wonder, how long it would have taken to discover this system if cannabis were not around. In any event, for a long time after THC was first characterized in 1964, it was thought that it worked by altering some membranes in the brain, something like the way that alcohol works, but, in fact, it turned out that THC works on a receptor called CB1 — that’s for cannabinoid-1. That’s the main psychoactive receptor in the brain.

Some of the effects that THC has in making a person feel high, in reducing pain, affecting nausea and things like that, some of these things are mediated through this CB1 receptor, but, there’s also a CB2 receptor, cannabinoid-2. This one can occur in the brain under conditions of injury or inflammation, but, it’s mainly out in the body where it’s known as an immunomodulatory receptor. It has to do with immune responses, inflammation, and pain. But, those receptors are only one component of what’s called the endocannabinoid system. A few years later, somewhere in the early 90s, it was discovered that there were endogenous cannabinoids. Endogenous means within. It turns out that there are substances in our body that are THC-like, that work on these receptors, CB1 and CB2. The first one that was discovered was called anandamide. That’s taken from the Sanskrit word for bliss and the second is called 2-EG, 2-Arachidonoylglycerol, and both of these will stimulate the cannabinoid receptors.

Then, we have the receptors, we have the endogenous ligands, the chemicals in our bodies that work on the receptors and then the third component of the endocannabinoid system are the enzymes that make these endocannabinoids and break them down. We have this triad then, called the endocannabinoid system.

What does it do? I’ve already mentioned that this is very prominent in the brain. The main activity there is in regulating neurotransmission. I think most of the audience has probably heard of neurotransmitters. These would be things like acetylcholine and norepinephrine. They are the chemical signals in the brain from one nerve cell to another.

What CB1 does in the brain is inhibit the release of neurotransmitters. Let’s say, for example, someone has chronic pain, too much pain. That often goes along with an excess of a neurotransmitter called glutamate, which is stimulatory. If we have THC or anandamide that stimulates CB1 receptor will reduce release of glutamate and often act to reduce the pain. This is just one example.

However, although things started there, in terms of research, it turns out that the endocannabinoid system is a major homeostatic regulator of almost every physiological function in the body. I realize that’s a mouthful. Let’s break it down. Homeostasis is balance of function. What the endocannabinoid system will do in any given area of the body whether it be the brain, hormonal balance, appetite, digestion, is try and bring things back into balance.

In other words, if there’s too much of a neurotransmitter, stimulation of the endocannabinoid system will bring that down back into the range where it should be. In contrast, if there’s too little activity in the system, stimulation of the endocannabinoid system will bring it up back into balance. Almost any function of the body you can name is effected by the endocannabinoid system and it really points out the reason that cannabis is such a versatile medicine for so many conditions that are otherwise very hard to treat with conventional medicines.

Shango Los: I was thinking about that. The way that it regulates the system, it reminds me a lot of this vocabulary word that my acupuncturist used all the time from Chinese medicine that it tonifies the system. If you’ve got an excess, it brings it down to optimum, and if you’ve got too little, it brings it up to optimum, so that essentially, we’re creating, we’re feeding a regulator for our bodies, so if the ECS is healthy, all of these other systems will be healthy as well.

Dr. Ethan Russo: I think that’s quite appropriate and there are many parallels between some of the concepts in traditional Chinese medicine and some of what the endocannabinoid system does, right.

Shango Los: Up until now, your paper talks about how to feed and care the endocannabinoid system with food sources that are non-cannabis. This is a pretty big deal to everybody because up until now, we have been supplementing our endocannabinoid system, which is cannabinoids that are made in the body endogenously, with cannabinoids that we have been getting from cannabis, things like cannabidiol and actually most of the parts of the plant fall into that category, and now the idea that we can go to food sources for it is something that’s got people really excited, because not only is cannabis not easily available everywhere, but also, it certainly has a price point that’s higher than most foods. Your new paper suggests that these can be gotten from food sources. Why don’t we pick one category of cannabinoid and talk about the food sources that it is present in.

Dr. Ethan Russo: OK, we can start off with CB1. I’m sure that many of the listeners are interested in what plants outside of cannabis might have similar effects. Actually, it’s a short list there. If we look at CB1, which is generally of most interest to most people, way back about 2000, I was interested in the possibility of looking at some other plants that affected the CB1 receptor like THC does. We looked at salviadivinorum. It’s sort of a long story, but, we were interested in salvinorin A, which was clearly the most active molecule in that plant. We didn’t get any binding to the CB1 receptor, but interestingly, there was something else in the extract of the plant that seemed to work at that receptor. Along about that time, it was discovered that salvinorin A works on another receptor called the kappa-opioid receptor, and that its activity seemed to derive from that. Subsequently though, some other people looked at salvia again, and there is a relationship there that still is being worked out.

Another one that might be quite odd to people is the common carrot, daucus carota. It actually has a substance in it called falcarinol. This actually seems to have an antagonistic effect on the CB1 receptor.

That’s odd. What would it do? While most CB1 antagonists would reduce hunger and produce some other effects of that sort, but the main importance of this molecule is that if one were handling carrots at the same time that there was histamine around, it’s possible they’d get an allergic reaction. As a doctor, I don’t remember a lot of people getting a rash from carrots, but this is a possibility.

More interesting, I think, is another plant that may stimulate the CB1 receptor. This is piper methysticum, better known as kava. Kava is an interesting substance. This is made from a root of a plant that grows in the South Seas, so it’s common in Polynesia. This is pounded and mixed with water, and it makes a gluey sort of drink that is used as a method of relaxation. Typically, it doesn’t have alcohol, and we had an idea in the past of how this worked on a different set of receptors called gaba. It turns out that a few years back, it was noted that one component of it called yangonin seems to work on the CB1 receptor, and, traditionally, in a traditional dose of kava there may be enough to really affect things. Occasionally, people will say that they feel high in relation to kava, not just relaxed, but, again, this is a relatively recent discovery and needs to be examined more thoroughly.

I’ll mention one other in this category, and this is an unusual one also, this is in liverworts. This is a kind of primitive plant. There are two that have been described, the one from Japan and one from New Zealand. The one from New Zealand is called granular marginata. These particular liverworts have two substances in them that look like cannabinoids. One is called perrottetinene and the other, perrottetinenic acid. This was originally described about 20 years ago, and the author said, “they called them cannabinoids, but, interestingly, at that time, they didn’t test them for activity.” Recently, one of my colleagues, Juerg Gertsch in Switzerland has confirmed that these do act on the CB1 receptor.

Unfortunately, his paper is not yet published, so we can’t get more details. I will say this though, in relation to these plants, there are some … reports that people will find on the internet and they’re odd because some people say that they really got high from smoking this material, and others will say that it didn’t do anything. I’m not sure I can recommend that people experiment with this. It’s not necessarily healthy to try and smoke liverwort. Hopefully we’ll have more details on that. That’s one category.

Shango Los: Let’s unpack two of those. The salvia is around but hard to get for some folks, but, carrot and kava are both really common. Carrot you can just buy at any grocery store, and the kava kava you can get at most herbalists. I’ve got a tincture of kava right here on my desk. When I take it, it does have a relaxing effect to my human. I feel a certain amount of muscle relaxant and a little less care in the world, but, I don’t get that from eating carrots. How can we think about the right manner to ingest, and how does a normal person know the volume, or, is it just simply, “hey, eat more carrots and make yourself some kava kava tea occasionally, and you’re going in the right direction.” How can this help a common person to help their ECS using these?

Dr. Ethan Russo: Right, well, let’s go to the carrot first of all. I would remind listeners that this is actually antagonistic of the CB1 receptor, so, no one is going to get high from carrots. Similarly, it’s really unclear whether this falcarinol is active orally. We don’t know if it gets into the brain. I’ve never heard of anyone eating a carrot and having it reduce their hunger. Additionally, carrots are pretty high on the glycemic index. They have a lot of sugar in them the way they’ve been bred in modern times. I’m not sure it’s a diet food either. Certainly, the person that’s looking for legal highs shouldn’t go in that direction.

With a kava, what is a normal dose? With a tincture, I think people would just go with the directions on the bottle. If they’re making it themselves from the root, it probably shouldn’t be too much. The stuff is pretty nasty to drink, which is one reason that it’s better in capsules or as a tincture, but again, I have it on good authority from Alessia Ligresti, the author of the original article, that she does think that most strains of the kava do have a significant amount of yangonin in them. If someone suffers from anxiety or just needed it periodically, like, to take a test or go to court, I think that kava is usually a good, safe anti-anxiety agent. There were concerns about it in the past in relation to possible liver damage, but that was related to one particular preparation that’s not commercially available now. This has a long history of safe use in Polynesia.

Shango Los: I think the most important part I got out of that is just because we’re talking about food sources doesn’t necessarily mean you just eat this stuff and your ECS is going to be in better shape. It’s more about these are suggestions of places that you could continue your personal research to find out which of these might be better for you and determine the right amount for you to take. What we’re not saying is “this is just plug and play.” What we are saying is that these are some doors that are being opened by your research that shows that there are components in these plants that we need to figure out how best to introduce to our body. Does that sound like a good summary?

Dr. Ethan Russo: Yeah, that’s a great point. Again it’s, to me, maybe not the best place to start with CB1, but, it usually is the most interesting to people, being the psychoactive receptor. In fact, we may do better in this regard looking at some of the other plants for their effects, so, maybe we can transition into those.

Shango Los: Why don’t we go ahead and take our first break, because I’m excited to talk about CBG from food, and I think that’s going to take us a little bit. Let’s take a short commercial break and be right back. You are listening to the Ganjapreneur Podcast.

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Welcome back. You are listening to the Ganjapreneur.com Podcast. I’m your host Shango Los. Our guest this week is neurologist and cannabis researcher, Dr. Ethan Russo.

Before the break, we were talking about different food sources that could work with the CB1 receptor to help manage your endocannabinoid system. We’re ready to move on from there to talk about CBG, cannabigerol, and, Ethan, I understand that you have found food sources for that, or, maybe just one. Your paper talks about a flowering plant in southern Africa. Is that something that we can even get in the United States?

Dr. Ethan Russo: Oh boy, that’s tough. This is an odd one. Again, traditionally, it’s been thought that cannabis was the only source of cannabinoids, but, it’s turning out not to be true and that was the reason for writing this article. Actually, more than 30 years ago, there was an obscure article written in German about finding cannabigerol, one of the so called minor cannabinoids of cannabis, in this flower from southern Africa. It’s called helichrysum umbraculigerum, and, although it is, I understand, a common roadside plant in South Africa, they’ve got very strict laws about intellectual property in South Africa, and it’s not something that you’ll find commercially. I’m happy to say that we have legally obtained a supply of this and aim to investigate it further.

What the original article said was that two cannabinoids, cannabigerol, which is the decarboxylated form, it’s lost its CO2 and its precursor, the cannabigerolic acid, the acid cannabinoid were found in this flowering plant. Unfortunately, the original article never stated the concentration. The issue is, is there a significant amount of these chemicals in this plant, and could it possibly be a non-cannabis source for cannabigerol? That’s the question. Unfortunately, we don’t have the answer yet. We’ve just procured the plant and we’ll be doing the bio-chemical assays to try and answer that question.

It raises a bunch of other issues. In most countries, this is not a big deal. Cannabigerol is not a scheduled compound, meaning it’s not forbidden, but, in the U.S. it would be considered illegal. Now, all of a sudden, you may have a situation of this attractive flower could be illegal to grow in the U.S. We just don’t know what will happen with that. It’s just another example of quirks in the law. Unfortunately, in my opinion, these laws are not subject to the teachings of science. In this instance, it’s guilt by association. Cannabigerol happens to be produced by the cannabis plant, and I’m not sure that legislators necessarily care whether it appears in another plant that happens to have a pretty flower and have other purposes.

Shango Los: It’s like getting blamed for something that your cousin did.

Dr. Ethan Russo: Yeah, you bet.

Shango Los: Since we’re not sure if we can even get our hands on it, let’s move right along to anti-inflammatories. You’ve got a nice list of foods where we can get some caryophyllene. What are those foods and whatt’s the best way to go about enjoying them?

Dr. Ethan Russo: First, there’s just a little background. Caryophyllene is what’s called a sesquiterpenoid. That means it’s a 15 carbon terpenoid. It’s got sort of a balsamic aroma. People may think they’re unfamiliar with this, but I bet they are, actually, because it is one of the components of black pepper and it’s responsible for some of its taste and its effects, but, caryophyllene appears in a bunch of different plants and it’s not just black pepper, but, many others.

Shango Los: A couple others that you mentioned in your paper are chili peppers, and ginger, and euphorbia, which I was surprised. It’s probably a different euphorbia than is growing in my yard.

Dr. Ethan Russo: We need to back up a little bit. Caryophyllene beyond cannabis and the black pepper is going to be in cloves, it’s going to be in hops, and melissa, lemon balm. The importance of this is, about 10 years ago, again, Juerg Gertsch in Switzerland discovered that caryophyllene is a CB2 agonist. To reiterate, CB2 is the non-psychoactive receptor. That’s important in treating inflammation and pain. Caryophyllene, which happens to be in cannabis also is at once a terpenoid and a cannabinoid in its own right, and it was well established long before we knew it had this effect on CB2 that caryophyllene is a very effective agent in treating inflammation and pain. The copaiba balsam, copaiba is a tree in South America and its sap, which has a lot of caryophyllene in it has been used traditionally by indigenous groups and other people in South America to treat wounds, arthritis, and things of this sort. Certainly, this is one instance, where if you had steak au poivre, you have a good intake of black pepper, you may be positively modulating your endocannabinoid system. If anybody was thinking that there aren’t accessible agents that could help tune things up with respect to the ECS, here is a good example.

Shango Los: Is black pepper, in this case, this is one of the cases where it is appropriate for us to simply eat it, where we don’t necessarily have to make a tea or a tincture or something like that to make it bio-available, we can simply just eat it and our body will process it, and it will support the ECS.

Dr. Ethan Russo: I believe that’s true. That doesn’t mean that everybody has to have a huge amount, but, I’m one of those people that tends to put black pepper on everything, and I did that long before I knew that it might be helping me.

Shango Los: Right on then … go ahead.

Dr. Ethan Russo: Black pepper is really interesting, because that’s not the only effect it has on the ECS. It also effects another related system that’s called the TrpV1, that’s the transient receptor potential vanilloid 1. This is also considered part of the endocannabinoid system. It’s going to be most familiar to people from the other kind of pepper, red pepper, capsaicin, the chili peppers. Capsaicin is a TrpV1 agonist, so it’s famous or infamous for its burning sensation. What’s interesting about the TrpV1 receptor is although some of the agents that stimulate it, like capsaicin, burn. That burn goes away after a while because the receptor becomes desensitized. This can be used to advantage in treating pain. People may have seen on TV, ads for ointments that have capsaicin in them and they’re used to treat pain, particularly nerve based pain. For example, if someone has diabetic neuropathy, a burning pain in the extremities, if they apply this kind of ointment with capsaicin in it, say, three times a day over a period of time, it can actually reduce the pain. It’s very cumbersome to do, but it can be effective.

Interestingly, there are other things that do this. Ginger has TrpV1 agonist in it, and again, black pepper. This is a situation, we’re not sure how much of this gets absorbed, and whether just eating foods that are rich in TrpV1 agonists will help with, say, arthritic pain, but, we do know, and this is odd, that people who have inflammation of the gut, say, with irritable bowel, sometimes will benefit from regular use of spicy food, particular regular use of chili peppers. People are well aware that in certain cuisines, say, India, southeast Asia, that chilies are in almost everything, and this may be one of the reasons.

Shango Los: I’m starting to get the idea that this research is pretty bleeding edge. We’re talking about a lot of these different examples, but how to get it into our body, and in what amounts, and what the exact effect seems to be open to discussion and additional research. It sounds like not only do we want to look more into these examples of food sources, but we also don’t entirely know how best to get them into our endocannabinoid system, so, we’re kind of at the beginning of this new family of research.

Dr. Ethan Russo: That’s absolutely true. I’m very excited about this. There is work that’s yet to be done. Like anything, particularly dietary, you would not want to make it your sole focus by any means, but, certainly these foods, your body is going to rebel if there’s too much, so that would be one signal. There actually are other areas where we can give some guidelines on how to use food to optimize the ECS. We haven’t heard what may be the best part yet.

Shango Los: Meaning that research hasn’t been done yet, or that we just haven’t gotten to that point in your paper yet?

Dr. Ethan Russo: The latter. I think we’ve got another chapter coming up here that might be more helpful on a practical level for people.

Shango Los: Right on; I follow what you’re saying. One of the things that struck me, in your paper, you’re talking about additional CB2 agents that are available to us, and there, right at the top is echinacea, and in one way it surprised me to see echinacea there because we take echinacea to get rid of or to postpone our colds all the time, but, I never really considered it something that was going to be acting upon the endocannabinoid system. I’ve got a two-part question. To what degree or what is the mechanism for echinacea to act upon our ECS, and, you know, we’ve been using this plant for thousands of years, and how do we understand that humans came across using these plants? Was it simply by trial and error?

Dr. Ethan Russo: That’s interesting. First of all, for people who aren’t familiar with it, echinacea, usually it’s the root that’s used, and this is a Native American plant. How Native Americans discovered this is hard to say. It could have been empirical, you know, that they were looking for food and someone tried this. It has an unusual effect, it has a sort of local anesthetic effect in the throat, and somebody may have tried to eat this in a moment of hunger, and discovered that it had this local anesthetic effect when they had a cold, and one thing leads to another. I wouldn’t rule out that some of this could have been learned by divination, although, less common in North America, certainly in South America, many useful medicinal plants are discovered by use of ayahuasca, the vine of the soul, and what plant do I need to take care of this ailment. In this instance, I think we may never know how people happened along this knowledge.

Shango Los: I have to follow up on that one. To be discovered via divination, using ayahuasca, I think that what you’re pointing at is when the person would intake the ayahuasca, this would open up their energy centers to be able to get information from the surrounding plants, and somehow the plants would let the person know that they should look towards this plant. Is that what you’re suggesting?

Dr. Ethan Russo: Yeah, it is, and I realize…

Shango Los: That’s great.

Dr. Ethan Russo: This may go far beyond the credence of many of our listeners, but I’ve seen it happen in South America, and I wouldn’t rule out that the same happened in North America among the indigenous peoples. We modern humans have largely lost this capability, but, either through happenstance or experimentation, it was discovered by people that echinacea root had useful properties in reducing not just the pain of a sore throat, but also in shortening the duration of this kind of illness. As it turns out, though, this is an agent that works on CB2, and so it may have a lot more applicability medicinally than just trying to shorten the duration of your cold. CB2 agents, again, seem to be very useful in reducing inflammation and also reduce fibrosis. Fibrosis is scar tissue.

Let’s give one example. We have an epidemic of hepatitis C that leads to scarring, fibrosis of the liver, and a CB2 agent taken regularly could help prevent that. This is a real possibility. Additionally, these CB2 agents may be useful in autoimmune diseases, but we don’t know yet whether that’s the case. Again, this is one of those areas that although it’s tantalizing, we’ve got at this point, many more questions than answers.

Shango Los: You’re right, it is tantalizing. Before we go to the commercial break, I want to follow up with one more question about the divination aspect of it. In the introduction, I mentioned that you did a sabbatical in Peru with the indigenous people studying their healing botany, and I’m sure that was really interesting. In looking at the list of books that you had written, I wish I had it in front of me, but I believe that you wrote a book about your experience in Peru. If I go and pick up that book, do you write about divination in that book? I’d love to hear your thoughts on that, which today is not the place, but, would those thoughts be in that book?

Dr. Ethan Russo: Yeah, the book I wrote called “The Last Sorcerer, Echoes of the Rain Forest,” is actually a work of fiction, and yes, it does discuss divination, but that was a fictional account.

Shango Los: Right on, very good. We’re going to take another short break and then we’re going to talk some more about this, about how to support your endocannabinoid system with common foods. We’ll be right back. You are listening to the Ganjapreneur.com podcast.

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Welcome back. You are listening to the Ganjapreneur.com podcast. I am your host, Shango Los. Our guest this week is neurologist and cannabis researcher, Dr. Ethan Russo. Ethan, we were talking about some of the things that are more common that folks could eat that could help their endocannabinoid system, and one of the things that you mentioned in your paper that I actually have quite often is galangal root. In the same category is apples and blackberries, and they all contain the flavanoid, camphorol, which can be taken to boost serum AEA levels. I’ve got to admit, I don’t actually really know what AEA levels are and why that’s a benefit. Why don’t you break that out a little bit for us.

Dr. Ethan Russo: Sure, so, AEA is just short for anandamide. The full name of anandamide is arachidonyl ethanolamide. Again, it’s that first discovered endogenous cannabinoid that works on the CB1 and CB2 receptors. AEA levels in the body are regulated by an enzyme that breaks it down called FAAH, fatty acid amino hydrolase. There are actually substances available in nature that inhibit FAAH. FAAH inhibitors, if they’re around will boost anandamide by preventing its breakdown. It would sort of be analogous to what an SSRI anti-depressant does with serotonin, say, Prozac for example, but in this instance, working to boost anandamide levels. The substance you mentioned, camphorol is in galangal root, which is used in, say, Indonesian cooking, but, more commonly, particularly here in the northwest would be apples and blackberries, we’ve got tons of them. There are small amounts of camphorol in those, and it may be that, if you’ve got a good intake of that, your apple pie or blackberry pie, may inhibit the breakdown of anandamide and give you a boost that way, it’s really possible.

Shango Los: Anandamide is pretty popular. Are there any other foods that we should be aware of that’s got anandamide in it?

Dr. Ethan Russo: Yeah, the problem is, yes, there is. The most obvious example is a recent discovery that truffles, specifically the black truffle, tuber melanosporum actually contains anandamide. Anandamide normally isn’t present in plants, but then I have to remind the listeners that fungi are no longer considered plants. They’re actually more like animals than plants, and they’re in a group of their own at this point, but, the way that the truffles use the anandamide is a little bit different. They develop more anandamide as they get darker in color. It has to do with the production of melanin, the dark pigment that makes the truffles black or produce darker skin as in tanning or in darker races. This is interesting. The problem is that it’s not enough to eat anandamide. Unfortunately, for our purposes, even if you had access to a bunch of truffles, the anandamide in them would be broken down in your digestive track before you had a chance to get it absorbed out into the body. It may be a better strategy to use the galangal or the apples and blackberries to inhibit the breakdown of anandamide and increase its amount in the body that way.

Shango Los: That makes a lot of sense. Chances are, the black truffle taro chips that I have in my kitchen are probably not going to be the best source, either.

Dr. Ethan Russo: No, but, if you enjoy them, have at it.

Shango Los: One of the things that jumped out at me in the paper was your pointing out that chocolate does not have cannabinoids, as is commonly thought, but there actually are other benefits. What are those other benefits?

Dr. Ethan Russo: Right, so, just to reiterate, there are no endocannabinoids in chocolate, however, it may have the same benefit, it has other health benefits, particularly if it’s not sugar laden, but, it contains a couple of ingredients called ethyleneamines that are FAAH inhibitors. When someone eats chocolate regularly, they may be boosting their anandamide level that way, so it’s an indirect effect rather than a direct one.

Shango Los: That makes sense. Let’s finish up with prebiotics and probiotics. We hear a lot about probiotics in the media, as well as in growing our gardens, but in this application, it’s different. What are the prebiotics and probiotics that are coming from food sources that we should be aware of?

Dr. Ethan Russo: First, let’s define some terms. Probiotics, probably more familiar to people, but won’t be familiar to everyone. Probiotics are actually bacteria that are native to our gut. These are beneficial bacteria. If you didn’t have any, chances are you couldn’t survive, but, they actually have a key role in digestion and prevention of disease. These are going to be most familiar to people in the form of yogurt, so, lactobacilli, also bifido-bacteria. We have this unfortunate concept in our society that bacteria are a bad thing, we couldn’t survive without them, and like anything else, there are good bacteria and bad bacteria. In this particular instance, the good bacteria help prevent diseases caused by the bad bacteria. You hear a lot about e. Coli epidemics, one of the ways to stem that kind of affliction is by having a healthy gut with the right bacteria. The first thing to understand is we can supplement this by having yogurt in our diet, or, people that don’t use dairy products could get some of the same effects with kefir or other fermented foods, particularly things like sauerkraut, or lacto-fermented vegetables. They can be made without any dairy products, just through natural fermentation as lactobacilli are in nature, naturally. Sour dough would have these as well, and these are just absolutely key to health.

The other side of the coin is prebiotics. Prebiotics are vegetables that feed the probiotics, the good bacteria. Some of these are going to be quite familiar, and others not so much. The familiar ones would be the LEACI, these are members of the onion family: your common onion, garlic, leeks. This is another one of those situations, I put onions in almost everything, and it’s a very healthy food in terms of feeding the good gut bacteria, but, there are many others that also have this effect, particularly things that contain a chemical called inulin, or other fructooligosaccharides, that’s a mouthful, so let’s just call them FOS for short. These would include things like acacia senegal, gum arabic, and some less familiar foods, chicory root, Jerusalem artichokes or sunchokes, and things like dandelion greens and burdock root. Burdock is quite popular in the far east, probably much less familiar to folks in the west. Any of these foods, again, are just dynamite in terms of being feed-stock for the beneficial bacteria. Although you can’t always get dandelion grains at the market, a lot of these things are available in capsule form as supplements. The acacia fiber, which is particularly good for people with gut problems is available as a commercial product online and can do wonders for people with, say, irritable bowel syndrome.

Shango Los: One of the things I like about the prebiotics and probiotics section is we have finally hit on something that people can really apply themselves to get their hands on. It sounds like a lot of the prebiotics are plants that we can wild craft, and many of the probiotics, heck, I’ve got a crock going, making some sauerkraut right now that is dairy free, so, look, I’m making a probiotic that is helpful for my endocannabinoid system. I think it’s really helpful to be able to focus in on something that we can actually do that’s tangible to help ourselves. That kind of leads me to where I want to summarize here as we come to the end of the show. It sounds like … We’ve talked about a lot of different plants today, and we know varying amounts about them. It sounds like research is taking place and it’s very promising, and it sounds like it would be a great field for people interested in the endocannabinoid research to go into and that it’s also a good field for just the simple citizen scientist to get into the research and learn more, and tell your friends and certainly tell patients.

To cap us off for the day, in retrospect, looking at all of these different options, what would you just ell a friend over dinner would be three or four foods that they could find relatively easily that would help them out and be a great place to start. Just, like, add these to your diet, and you’re going to be better than without them?

Dr. Ethan Russo: Yeah, it’s great to have the opportunity for a change, give people practical advice in this regard, but I would certainly encourage people to incorporate sauerkraut in their diet, other lacto-fermented foods like naturally fermented pickles, kimchi is excellent in this regard, in the Korean section of the supermarket. Again, the LEACI, the onions, garlic, leeks, and particularly people with gut problems, the acacia senegal, gum arabic, fiber is excellent in helping to treat that kind of problem.

Shango Los: Fantastic, now everybody has a solid to-do list. Ethan, I know that the show has gone longer than I’ve asked for your time today, so I’m going to wrap up now. Thank you so much for being on the show, and introducing us to this new area of research that we can all get excited about and start learning more for ourselves.

Dr. Ethan Russo: Thank you for the opportunity.

Shango Los: Dr. Ethan Russo is an internationally beloved neurologist and cannabis researcher, currently Medical Director at PhytECS. To find out more about Dr. Russo, you can go to Phytecs.com, that’s P-H-Y-T-E-C-S, or simply search his name, Russo, R-U-S-S-O, on researchgate.net, and start reading his research. If you want a copy of the article we were talking about today, you can email him directly. It’s still out for sale right now, so we’re not able to post it on the website just yet, but if you want to email him at EthanRusso@comcast.net, he will send it to you personally. Also, remember that Dr. Russo is an active international traveler, so don’t expect an immediate response.

You can find more episodes of the Ganjapreneur.com podcast in the podcast section and also in the Apple iTunes Store. On the Ganjapreneur.com website, you will find the latest cannabis news, product reviews, and cannabis jobs updated daily, along with transcriptions of this podcast. You can also download the Ganjapreneur.com app in the iTunes and Google Play shops. For info on me and where I will be speaking, you can go to ShangoLos.com.

Do you have a company that wants to reach our national audience of cannabis enthusiasts? Email grow@ganjapreneur.com to find out how. Today’s show was produced by Michael Rowe. I am your host, Shango Los.

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The Marijuana Policy Project Endorses Libertarian Gary Johnson for President

The Marijuana Policy Project has formally endorsed the Libertarian Party candidate and former New Mexico Gov. Gary Johnson in his bid for the White House. Johnson served two terms as governor from 1995 to 2003 as a member of the Republican Party.

In a statement announcing their endorsement, MPP Executive Director Rob Kampia said Johnson “clearly has the best position on marijuana policy” out of the three candidates that will appear on the ballots in all 50 states, noting that the organization fights for “a single-issue” – regulating marijuana like alcohol.

“Legalization has been Johnson’s number-one issue for 17 years,” Kampia said in the statement. “MPP’s endorsement of Johnson was an easy call; the more difficult question is whether MPP should support a candidate who’s good on medical marijuana but bad on legalization, when the candidate is facing an opponent who’s bad on everything.”

Johnson received an “A-plus” grade in the group’s presidential candidate report card. Democrat Hillary Clinton, the party’s presumptive nominee received a “B,” while the Republican nominee, Donald Trump, was given a “C-plus.”

In January, Johnson stepped down from his role as CEO of Cannabis Sativa, a legal cannabis company, in order to focus on his campaign. In a recent interview with USA Today, Johnson indicated that he hasn’t used marijuana for “about seven weeks” and said he would abstain if he were elected.

The Libertarian Party elected former Massachusetts Gov. Bill Weld as Johnson’s running mate.

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Michigan Ballot Initiative Stalled Over ‘Old’ Signatures

The ballot drive to legalize recreational marijuana in Michigan is at least 106,000 signatures short, according to the state elections bureau, who have ruled 137,000 signatures are older than 180 days, Wood TV 8 reports.

The fate of the initiative, led by the Michigan Comprehensive Cannabis Law Reform Committee, now rests with the Board of State Canvassers who will meet on Thursday to consider including those signatures, but the matter could end up in court. Another group gathering signatures in Michigan to prohibit fracking has already sued the state over the 180-day window, calling it unconstitutional. There is currently legislation on Gov. Rick Snyder’s desk that would codify the 180-day timeframe for a petition signature to be considered valid.    

According to the activist group’s website, they collected “probably” over 375,000 signatures of the 252,523 required to get the measure on the November ballot. The group filed 354,000 signatures to the elections bureau on July 1.

Recreational cannabis supporters in Maine faced a similar roadblock in their efforts when Secretary of State Matthew Dunlap blocked the initiative in March over signatures that were obtained outside of the 180-day window. In April, however, a state judge ruled that Dunlap “committed an error of law by applying a vague, subjective and/or unduly burdensome interpretation” of the law regarding petition signatures.

Arizona, California, Massachusetts and Nevada are expected to have legalization initiatives on the fall ballot.  

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Maine Could Be First State to Add Addiction as MMJ Qualifying Condition

Maine could become the first U.S. state to approve medical cannabis as a treatment for opioid addiction.

A group of medical marijuana patients and caregivers gathered on Tuesday at a public hearing to lobby for the change, CBS News reports. The hearing was ripe with personal stories of how cannabis has been a safe and effective method of kicking more dangerous drug habits, such as pharmaceutical painkillers or heroin.

One 23-year-old student said marijuana helped her kick a heroin habit that she developed while studying in Morocco. “Marijuana saved my life for sure,” she said.

Supporters argued that medical cannabis is already prescribed to help with addiction in states with more relaxed marijuana laws, such as California and Massachusetts — but this would be the first time that state laws would be updated to specifically allow for such treatment.

The hearing was called by the Maine Department of Health and Human Services after a successful petition from one of Maine’s medical cannabis caregivers.

The medical establishment in Maine does not support changing the law, however, and argues that there’s insufficient scientific evidence supporting the claims that cannabis can treat addiction. Leah Bauer, psychiatrist and medical director for the Addiction Resource Center at Mid Coast Hospital in Brunswick, argued that such a change could lead addicts to another “toxic and habit-forming substance.”

“In fact, [addicts] using marijuana may be like pouring gasoline on the fire,” she said.

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Mass. Legalization Efforts Supported by Voters; Officials Launch Prohibition Campaign

A majority of voters in Massachusetts support ballot questions to legalize recreational marijuana use in the state for individuals 21 and older, but the Republican governor is teaming up with two powerful Democrats to oppose a likely ballot question.

Of the 497 registered voters polled for the April 1-10 Western New England University survey, 57 percent supported legalizing cannabis for adult use, with 35 percent opposed and 7 percent were undecided. Democrats overwhelmingly favored legalization – 64 percent to 29 percent – while independent voters supported the issue by a 63 percent to 37 percent margin. Republicans opposed the measure 58 percent to 35 percent.

Voters ages 18 to 39 supported legalization by a 74 percent margin, those ages 40 to 54 by 54 percent, and voters ages 55 to 64 by 53 percent. Just 43 percent of individuals ages 65 and older supported legalization.

Despite the measure’s popularity in the poll, Gov. Charlie Baker, House Speaker Robert DeLeo (D) and Boston Mayor Martin Walsh (D) have joined forces to discourage legalization efforts, according to the Sentinel and Enterprise.

The Campaign for a Safe and Healthy Massachusetts will directly oppose the Campaign to Regulate Marijuana Like Alcohol, who are pushing for the measure.

In a statement announcing the campaign, the Campaign for a Safe and Healthy Massachusetts declared the ballot question “is written by and for the corporate interests that have profited from legalization across the country.”

DeLeo said he opposed any measures making it “easier to introduce young people to drug use.”

In 2008 voters in the state approved a proposal to decriminalize possession of up to one ounce or less, and in 2012 they approved the use of medical marijuana. Both initiatives passed with approval rates of 65 percent and 63 percent, respectively.

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Judge Allows Maine Marijuana Initiative to Move Forward

Cannabis legalization efforts are back on in Maine after a state judge ruled that Secretary of State Matthew Dunlap (D) had “committed an error of law by applying a vague, subjective and/or unduly burdensome interpretation” of the law regarding petition signatures, the Bangor Daily News reported.

Last month Dunlap blocked the initiative to allow adults to use cannabis recreationally, saying proponents had submitted 51,543 valid signatures – 9,580 short of the 61,123 required to force the measure to appear on ballots in November.

“We are extremely pleased with the court’s decision to send our initiative back to the secretary of state for re-review,” David Boyer, manager of the Campaign to Regulate Marijuana Like Alcohol said in a Reason.com report. “As was the case when we submitted our signatures to the secretary of state originally, we know that a sufficient number of registered voters signed the petition to qualify for the ballot. So this re-review should now be a mere formality.”

Dunlap’s office claimed that some signatures were initially rejected due to disparities between the Notary Public Stavros Mendros’ signature and the example they had on file. Mendros told the Portland Press Herald that he had, in fact, notarized the signatures in question.   

“While the State of Maine has a compelling interest to ensure that all petitions submitted for consideration in a direct initiative are valid,” Kennebec County Superior Court Justice Michaela Murphy wrote in her decision, “requiring a Notary’s signature to appear identically on every petition signed is unreasonable and abridges the Constitutional right to initiative.”

Arizona, California, Massachusetts, Nevada and Maine are expected to have legalization initiatives on the fall ballot.

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Boston MMJ Advocacy Group Complaint Leads to City Council Process Changes   

Boston medical marijuana advocates say the City Council broke state open meeting laws by failing to provide the public 48-hour notice before a vote that ultimately approved buffer zone regulations for dispensaries, according to a Boston Globe report.

The Massachusetts Patient Advocacy Alliance accused the council of violating the law, prompting the city’s Law Department to send a letter to the state attorney general’s office acknowledging the “mistake.”    

In the letter, Adam Cedarbaum, on behalf of Law Department, said a typographical error was responsible for the wrong item being copied onto the agenda. City Council agendas will now be inspected by a proofreader to reduce future mistakes.

The city clerk caught the error and corrected the online version about 90 minutes after the agenda was posted, the letter said.

In their complaint, the patient group asked that the council take another vote on the plan and allow the customary public comment period. Instead, the Law Department proposed the group be given “ample notice of any opportunity to provide comment before any city commission or agency takes a binding vote or recommendation on the matter.”

The group will consult its advisory board before taking additional steps, Nichole Snow, executive director of the alliance said.

The measure would require dispensaries to be at least a half a mile apart. It would have to be approved by the Boston Redevelopment Authority and the Zoning Commission, and signed by Mayor Martin J. Walsh (D), to take effect.       

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A scattered stack of $100 bills in USD.

U.S. Cannabis Industry Could Grow to $44 Billion by 2020

The cannabis industry in the United States could grow to be a $44 billion industry by 2020 according to current legalization and economic trends.

Data released in the 2016 Marijuana Business Factbook, published by Marijuana Business Daily, indicate that the yearly economic impact of the U.S. cannabis industry will grow from $14 billion-$17 billion this year to between $24 billion and $44 billion in 2020.

The publication’s projections reflect the compounded effects of legalization throughout the nation. As the industry becomes more and more palatable to communities around the nation, it creates a ripple effect of job growth, tax revenue, and legalization.

The estimates garnered from the data aim to reflect the broadest possible impact of the cannabis industry’s growth. The data is based on current recreational sales and prices. For every dollar spent on retail cannabis, three dollars in economic benefit is created.

According to the report, 2016 will see retail cannabis sales reach between $3.5 billion and $4.3 billion — that would be a growth of between 17% and 26% from last year. Furthermore, total sales of recreational cannabis could overtake medical sales as soon as 2018.

Overall, the future for the cannabis industry is bright, and this fall could prove big for the legalization movement. California, Nevada, and Massachusetts are among those states that could legalize recreational marijuana in November, and voters in Florida and Ohio have the chance to legalize medical cannabis as well.

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New England: The Next U.S. Region to Embrace Legalization

Though the west coast has had a lock on U.S. cannabis culture for some time, the tides are turning nationwide, and it’s due time for some representation from America’s birthplace.

On the whole, New England is shaping up to be a promising locale for cannabis. Its growing medical marijuana industry includes Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut.

Vermont has three pending legalization laws in the legislature, finally getting the chance to make official its long relationship with industrial hemp and cannabis. Lots of self-identified marijuana users hail from this state, and a recent poll showed that 56 percent of Vermonters support legalization while only about 34 percent would oppose it.

Maine is expected to legalize via voter initiative later this year, with a few years’ experience running a successful medical marijuana program already under its belt.

Massachusetts, though home to the business and technology hub of Boston, has had trouble gaining government support for adult use legalization. Two competing ballot initiatives faced off, but only one campaign collected enough signatures for 2016. With just a handful medical marijuana dispensaries just recently having opened, three years after the law permitting them was passed, Mass. pot shops are still having trouble doing business with low product supply and very high patient demand.

Rhode Island is also entering campaign season with a viable adult use initiative, which recently gained the support of a key legislator. Historically, Rhode Island citizens have had one of the highest rates of cannabis consumption in the country.

Connecticut has a medical cannabis program in place, but will likely not be legalizing adult use this year.

The New Hampshire House recently shot down a couple of legalization bills, but progress in neighboring states could provide a more supportive environment for policy change, especially given the fact that two thirds of voters showed their support for drug decriminalization, according to a recent poll.

Though New York is typically not considered part of “New England,” it’s the population center of the region and the state’s advances in medical cannabis policy cannot be overlooked. The state finally implemented its own government-supervised retail dispensary program last year, with a total of 393 physicians and 921 patients registered for the program in the first six weeks, and around a dozen storefronts either in operation or set to open soon.

Overall, the East Coast is home to a lot of individuals that support the legalization of marijuana; though stigma and federal illegality is still keeping many prospective New England patients out of the dispensaries. The legislative process seems to be the only hurdle here.

Even if for some reason these campaigns fall short, success is inevitable in the western states. If California, Nevada, and Arizona all choose to legalize adult use come November, it will create a cannabis super-region that will no doubt influence policy across the U.S. for the foreseeable future.

Will New England really be the next hotbed for cannabis, or will traditional values keep the industry low key? Time will tell – but what matters is that just about anywhere you choose to live in the United States, some form of legalization is well on its way.

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Cannabis Users Not Likely to Mix Weed With Alcohol, Survey Says

New data from a study published online in the journal Addiction show that cannabis users tend not to use the drug in combination with alcohol. The results apply to both medical and recreational marijuana users.

The article presents a survey of use patterns among participants aged 18-91. Researchers with the RAND Drug Policy Research Center and the University of California, Irvine interviewed 2009 participants from Colorado, Washington, Oregon and New Mexico. Marijuana has been legalized for recreational use in the first three states and is legal for medical purposes only in New Mexico.

The article finds that “Individuals who use cannabis do not commonly use it with alcohol, irrespective of whether they are consuming cannabis recreationally or medically.”

The relationship between marijuana and alcohol remains unclear. Some studies have indicated that marijuana users may replace alcohol with marijuana, while others indicate that the two may serve as complements.

The study also found that recreational use rates are the highest in Oregon and Washington.

Cannabis has been legalized in Colorado, Washington, Oregon, Alaska and Washington D.C., and at least ten different states are expected to vote on the issue this November, including California, Massachusetts, and potentially Arizona.

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Ethan Nadelmann: How Drug Policy Shapes the Cannabis Industry

Ethan Nadelmann is the founder and executive director of the Drug Policy Alliance, the leading organization in the United States promoting alternatives to the failed “War on Drugs.” He is also serves as a drug policy advisor for several prominent philanthropists and elected officials, and is arguably one of the most influential voices contributing to the global conversation about cannabis legalization. Recently, Ethan joined our host Shango Los to discuss the current state of legalization, how people can contribute to effectively change laws at the federal level, how he balances ideal outcomes against the real challenge of getting a bill passed, and more!

Listen to the full podcast below, or scroll down for the transcript.

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Read the full transcript

Shango Los: Hi there, and welcome to the Ganjapreneur.com podcast. I’m your host Shango Los. The Ganjapreneur.com podcast gives us an opportunity to speak directly to entrepreneurs, cannabis growers, product developers and cannabis medicine researchers; all focused on making the most of cannabis normalization. As your host I do my best to bring you original cannabis industry ideas that will ignite your own entrepreneurial spark, and give you actionable information to improve your business strategy and improve your health, and the health of cannabis patients everywhere. Today, my guest is Ethan Nadelmann. Ethan Nadelmann is founder and Executive Director of the Drug Policy Alliance, the leading organization in the United States promoting alternatives to the war on drugs.

He received his BA, JD and PhD all from Harvard, and taught at Princeton University for seven years. He has authored two books on the internationalization of criminal law enforcement and has written extensively for academic policy and media publications. His many media appearances include the Colbert Report, the O’Reilly Factor and Real Time with Bill Maher. His TED Talk on ending the drug war has been viewed over a million times. Ethan plays a key role as Drug Policy Advisor to George Soros and other prominent philanthropists, as well as elected officials, ranging from mayors, governors and state and federal legislators in the United States, to presidents and cabinet ministers outside the US. Welcome Ethan, glad you could be in the show.

Ethan Nadelmann: It’s a pleasure, Shango.

Shango Los: Ethan, to start out, let’s get right where the heart of the matter, to the regular citizen, federal drug policy seems to have evolved behind the scenes somehow, being the result of smoke and mirrors, and deals that all happen before we even hear about what’s going on in the press. Do you think that there’s a role for an individual citizen to participate in drug policy at a federal level?

Ethan Nadelmann: Well, it depends what you mean by individual citizens. Individual citizens who’ve got a billion dollars to their name, have no problem participating in the process. When it comes to ordinary citizens who don’t have that kind of money, yes, there’s still a way to do it. I mean a lot of this just involves being highly knowledgeable about the issue and then being connected with the right networks or advocacy organizations so that you know when and where weighing-in will make that much more difference. For example, there’s about a quarter million people signed up on Drug Policy Alliance’s internet communications. What we do is let people know when a vote’s coming up and when they can contact their senator or their representative on a particular bill.

We’ll let people know how their representative voted, so that they can send him a follow-up, either to thank them or to criticize them. It’s things like that. Then of course there’s the things like just simply showing up at candidate forums, going to visit your legislator, if they’re accessible, things like calling up on talk radio; especially the ones that have contrary opinions, and offering an informed opinion. There’s always things if you’re an ordinary citizen, can do.

Shango Los: When comparing working at the federal level, versus working at the state level, we did a show recently with John Davis where we talked about going to actually sit down with your state representatives and voicing your opinion and doing so in an educated way. It sounds like doing that at the federal level, you almost need to be working within an advocacy group that acts as a force multiplier so that you can actually have some sort of impact in lieu of having a million dollars.

Ethan Nadelmann: Look, anybody can write or email or call their own member of Congress or Senator and get through that way. Anybody can drop by their representative’s office when they’re in DC, and at least talk with a staffer. If somebody has a personal relationship, or is one step removed from that Member of Congress, it always helps to use that contact, because obviously the Member of Congress is going to be that much more receptive if it comes from somebody they already know, or somebody who knows somebody they know. I’ll tell you something Shango, upcoming in a few weeks … I’m not sure if it will already happen by the time this runs, but November 18-21 in Washington, DC, is the Biennial International Drug Policy Reform Conference.

The day before that conference happens, we’re having Lobby Day, when hundreds of people who are coming to the conference will show up a day early, and then we’re arranging for them to go meet their Members of Congress, during the course of that day. That’s the sort of thing that can have a very significant impact.

Shango Los: I think it’s probably a good time for us to mention to folks too, that if they do choose to go visit their federal representatives, that they shouldn’t feel slighted, just because they’re talking to an aide, because more often than not, it’s the aides that are helping write the position papers and are coalescing the feedback; so just because you don’t speak to your specific representative, this can still be a win for whatever point you want to get across.

Ethan Nadelmann: Exactly, and it goes in there, one can always look on the website of Drug Policy Alliance or Marijuana Policy Project, or Americans for Safe Access, or NORML, and download the fact-sheets that are on our websites and use those to make sure that you have an informed opinion, and then also to give those to the staffers you’re meeting, if you actually succeed in getting a meeting with a Member of Congress, it helps to touch base with somebody at my organization. Drug Policy Alliance has the most robust lobbying operation on Capital Hill of any drug policy reform organization. We’re working in partnership with other groups. We’re very good at mobilizing state-based organizations, as well. The more coordination, typically the better.

Shango Los: The great majority of our listening audience are cannabis entrepreneurs themselves, and some of them have already established businesses, and some of them are even looking to start doing interstate commerce. Do you think that if we were to escalate my first question about being a common citizen trying to participate, let’s say instead, we’re talking about a business that’s already making money in legal marijuana and they want to ply their cash in a way that will move forward their own policy objectives. Do you think that the answer becomes any different? Do you think that it’s still ally yourself with a lobbying organization, or are there some strategies that an individual business owner with some money to spend, can do to help themselves?

Ethan Nadelmann: Shango, I say it’s a bit self-serving for me to say this, but by and large somebody who’s in the industry or wanting to get in the industry and wants to try to move, for example, federal legislation, the best way to do … Or state legislation, for that matter … Oftentimes the best way to do that, unless you have very strong and good contacts directing legislature, and even then, is to work with an advocacy organization like Drug Policy Alliance. I’ll give you one significant example. Last year, when we were working on the medical marijuana billing in New York, and we’d spent an enormous amount of resources, grassroots, grasstops mobilization, public media, behind the scenes, out front mobilizing the patient networks, meeting with almost every legislator in the state, meeting in the Governor’s office, you name it.

What we saw was a whole host of folks in the industry went out, started hiring lobbyists for five and ten and even more thousand dollars a month, and landed up as we heard, getting essentially nothing for their money. They were, basically thought, “This is the way to do it,” but it didn’t work. Meanwhile, the ones who brought it home and shaped what the legislation was, was Drug Policy Alliance. I see the same thing coming up right now with this issue of trying to change federal laws regarding the banking issue, so that folks in the industry can have access to legal banking. Once again, your best investment is to invest in Drug Policy Alliance.

I realize it sounds like a fund-raising pitch, but I think bottom line is it’s true. I should be very clear, DPA, Drug Policy Alliance, we do not lobby for the industry, but when our interests coincide with folks in the marijuana industry, which they do far more often than they don’t, the single best investment, dollar for dollar, is putting money into Drug Policy Alliance, so that we can step up our efforts on that front.

Shango Los: Given that, is there such a thing as shopping around for a lobbying organization? Obviously, people want to go with an organization that’s got proven records. How do you determine the best … choose a lobbying organization? Does the lobbying organization itself have its ideals and you just need to find one that falls with yours?

Ethan Nadelmann: It depends. Part of this is you can talk around … Look, there’s a range of organizations that we work with, with Marijuana Policy Project, the Americans for Safe Access; NORML; NCIA, the Industry Association; a range of others. One could just do your own due diligence to find out who’s doing what, or who has a reputation for being more or less successful. That’s one way to do it. The second thing is that if somebody’s looking to put any sort of real money into this … By real money, I mean, tens of thousands of dollars, or more … Then one would call the organization and say, “Look guys, here’s what I’m interested in. Here’s what affects my interest. What’s the work you’re doing on this, and what kind of work could you do with greater resources?” That’s the best way.

Shango Los: That’s great. Thanks, Ethan. We’re going to take a short break and be right back. You are listening to the Ganjapreneur.com podcast.

Welcome back, you are listening to the Ganjapreneur.com podcast. I am your host, Shango Los. Our guest this week is Drug Policy Alliance founder, Ethan Nadelmann. Ethan, everybody’s really excited about having normalization sweep across the country, and a lot of people talk, like, “Oh, will President Obama make the change and unschedule cannabis before his time is over?” What do you think the likelihood of it happening, either by congressional vote, or by the sweep of President Obama’s pen, before the end of his time in office?

Ethan Nadelmann: I think it’s scant. I think that by and large, President Obama has been much better than expected during his second term in office. During the first term, thank God, he did one very good thing … or two good things, which is basically to pull back on some of the federal enforcement on medical marijuana when he first came in. Then it bounced around for awhile, but he’s actually been pretty good in the second term. Simply giving that qualified green light to Colorado and Washington to implement their legalization initiatives and not getting in the way then, when Oregon and Alaska followed suit, and basically letting foreign governments know that they’re moving forward on marijuana decrim, or even legalization, no longer represents a challenge to US national security and political interests.

All of those have been, I think, quite good things. I think that the White House and the Justice Department have been quite good in that area, while we’ve seen a more problematic role played by the drug czar’s office and National Institute on Drug Abuse, and some of the other administrative agencies like that. I could see President Obama issuing an edict reducing marijuana scheduling from Schedule 1 to Schedule 2, but I’d be stunned if he were to use his power — and there’s disagreement about whether he actually has the power — to deschedule marijuana unilaterally.

That’s the subject of a bill which Senator Bernie Sanders introduced, I think, last week, or announced that he was going to introduce. My staff in Washington, DC, have worked closely with his staff in terms of designing that bill, but I would say that come election day or January 2017 when Obama leaves office and we have a new president and a new congress, I don’t think anything monumental is going to come out of Washington, between now and then. I think the 2016 election … Well, we’ll get to that in a minute … But that’s looking to shake up a lot, especially if most of those initiatives win then.

Shango Los: That’s the same place that I was going to go. It’s pretty astonishing to hear presidential candidates talking about cannabis at all. All the elections into my life, there may have been a mention of it by Reagan back in the day as far as the drug war goes, but to have presidential candidates actually talking about the possibilities of implementation, is really shocking. What do you think about the civil forfeiture aspect of it? We’re watching so many law enforcement agencies who have traditionally gotten paid by essentially taking possessions that were in the homes and businesses of folks that were in cannabis, and then selling that and using that to fund their organizations.

As cannabis becomes more normalized, this income is going away for these law enforcement organizations. Do you think that it’s more likely that these organizations will just shrink, or do you think that they will shift and find something new to enforce so that they can start getting asset forfeiture a different way?

Ethan Nadelmann: It’s hard to say. It’s an interesting issue you raised, Shango, because Drug Policy Alliance, we’ve been deeply involved in the issue of asset forfeiture forum. Back in the year 2000, we drafted and put on the ballot, in Oregon and Utah, two initiatives to reform asset forfeiture laws, basically to say that people could not have their properties seized and kept by the state unless they’d been criminally convicted. The second, was to say that when property was legally seized that the money had to go, not to cops and prosecutors departments, but go to the general treasury. We won both those initiatives by two to one margins, back in 2000.

Then they were somewhat gutted by the law enforcement lobby thereafter. We’ve once again reengaged on this issue in a big way … It’s got a lot of traction. We had a major victory in New Mexico earlier this year, almost eliminating civil asset forfeiture. I think that the cops are basically going to have to find new ways to fund their operations. I think that it’s not going to result in any massive layoffs. I think that this money represents an important source of revenue for some police departments. It’s coming not just from marijuana seizure, or for cash related to marijuana and property, but other stuff. I think it’s a variable. I don’t think it’s a dominant variable in the whole debate.

Shango Los: You’ve spent a lot of time consulting with all sorts of different folks, whether they be in the legislature, or philanthropists, or corporate sponsors of bills. What role do you see, have cannabis money playing a role in this upcoming presidential election? It’s certainly playing a big role as far as soundbites go, and getting the base excited, but to what degree is there cannabis money involved at this point?

Ethan Nadelmann: It really depends, Shango. The place you’re really seeing it is at the level of the states, and it’s the ballot initiatives in the legislation. You and I are talking on November 2nd, the day before Election Day, 2015. We’re all waiting to see what happens in Ohio, where there’s a ballot initiative that would legalize marijuana. If it wins, there’s a counter-initiative that would negate the legalization. It’s an initiative which is very good in a lot of respects … Which my organization helped draft … But which unfortunately includes one offensive provision; which is a provision that says, “Only the 10 investors in the ballot initiative, or the technically the properties they own, will be allowed to produce marijuana commercially, in perpetuity.”

This is the first case in Ohio where we’re seeing a ballot initiative that’s almost entirely funded by people within the industry driven primarily by their interests in making a profit, and most of whom don’t care all that much about the broader principles. You jump forward to 2016, when you’re going to have marijuana legalization on the ballot, in California and Nevada, Arizona, Maine, Massachusetts, maybe Michigan. You’re going to have medical marijuana on the ballot probably in Florida, Missouri, maybe Arkansas, and for all I know, a couple of others could pop up between now and then. 2016 is looking to be sort of the year, the marijuana year, the presidential election year where marijuana really hits it big.

If you look around the country, you’ll see that in California, there’s some money coming to the table from the industry and it’s going to be in the millions of dollars. You’ll see in Arizona, the marijuana industry playing a significant role. In Maine right now, we just were involved in getting two groups, one backed by Marijuana Policy Project, one involving local activists, to develop a unity campaign, so we didn’t have two initiatives there. What I would say, is that 2016 will probably be the last election year when marijuana initiatives were driven primarily by people who are interested in this for reasons of civil rights and civil liberties, and not primarily by their interest in making a profit.

Come 2018 and beyond, I think that the profit seekers are going to play more and more of the dominant role. The upside of that is that when it comes to putting a nail in the coffin of marijuana prohibition nationally, it means that people interested in this primarily so they can make a buck, are going to end up producing a very positive social consequence.

Shango Los: It’s really interesting to listen to the national news to see some traditional pro-cannabis activists actually coming out against the Ohio law because it is so closed off to these 10 producers. It’s very common to read these blog articles, like, “You know, I’m pro-cannabis, but this setup is not going to work,” and to hear people talking against it. How are you seeing that play out at the federal level, where people want to move normalization forward, but at the same time, there’s some really serious questions in Ohio about the framework that they’re using?

Ethan Nadelmann: I’ll tell you something, first of all Shango, I’d say people who want to get a read on this thing should read the op-ed piece I published on CNN.com a few days go. Just pop my name, Ethan Nadelmann and CNN.com and you’ll find it. I kind of lay out the pros and cons of the Ohio situation and why I’m sort of rooting for the thing to win, even though I don’t like this provision in there, and also why I think we’re not going to see a lot of states imitating that oligopoly model. Quite frankly, the people who are upset by it, are not just the traditional grassroots activists in Ohio, it’s also people in the industry.

Everybody in the industry likes to get a leg up by getting a government preference of one sort or another, but the notion of going to the point of actually writing into the State Constitution, that only the 10 investors will have the right to produce marijuana wholesale, in perpetuity, I think most folks in the industry see that it as simple overreach, and in some respects, almost un-American. I don’t think that issue is going to play out that much in Washington, DC, Capitol Hill, right now. I think there what people are looking at is, “What’s the way to allow states to experiment with their own regulatory models?”

We’re now in a time when even the Republican candidates who are open to this are saying, “Look, I’m not opposed to legalization, as a state’s right’s issue,” even if they still say they’re opposed to it on grounds of principle, or broader policy.

Shango Los: Yeah, that makes a lot of sense. When you were saying that, the phrase that kept on being in my head was, “What’s going on in Ohio seems Un-American,” and there you were, you took the words right out of my mouth. We’re going to take another short break, and be right back. You are listening to the Ganjapreneur.com podcast.

 

Welcome back. You are listening to the Ganjapreneur.com podcast. I am your host, Shango Los. Our guest this week is Drug Policy Alliance founder, Ethan Nadelmann. Ethan, here on Vashon Island where I live, we experienced a great deal of rural economic development during medical marijuana. We’ve had over 15 years of small mom and pop producers being able to produce a high quality, low pesticide product and move it into the dispensary market where it was then sold to patients. Now, with the passing of I-502 in our state, over the next year, all of those medical dispensaries are being phased out, the producers are going away, and the trade organization that I started here on Vashon Island, we’ve gone from 156 growers to 5 growers, and those are the 5 that have got licenses on our island.

All those other people, those are real families. The money from the sale of the medical marijuana was going to pay for kid’s field trips, and the vacation, and getting caught up on back house taxes; all of these things. Do you see there being any chance with the changes at the federal level to start to include those type of artisan simple,  family growers again, or do you think the writing’s on the wall, that heavy capitalized interests are going to take over, like they did with liquor?

Ethan Nadelmann: Oh gosh, Shango it’s a great question, and I have to say, it’s the most bittersweet aspect of the advocacy I’ve been involved in, for decades now. On the one hand, we always knew that when you get to the point of full legalization of marijuana, it was going to involve something that was going to look like the alcohol, or tobacco or consumer goods companies, with major players ultimately dominating. We live in America; it’s a society of dynamic capitalist culture. It’s very hard to write in protections for the smaller growers into all of this.

Now of course we’re dealing with that reality, and especially you guys in Washington State are dealing with that reality. I don’t know much as we can do about it. That said, my organization is morally committed to doing whatever we can. What we’ve tried to do is to try to, when we have influence over the drafting of initiatives, to write in some provisions that at least lower the barriers to entry, that allow small growers to have a chance to compete, and also trying to write into these initiatives that people, whoever suffered a felony conviction because of their involvement in the marijuana industry, will not be excluded.

Those are the small things we can do. The toughest part about this in a way, is that if you think about it, there’s a coincidence of interest between the biggest players in the industry, who have the money, mostly to get their way, and the people in government who are going to be charged with regulating the new industry. From their perspective, it’s easier to regulate a small number of large entities than a large number of small entities. The third factor which makes it difficult, is that the swing voter, the voter who’s ambivalent about legalizing marijuana and who you need to persuade in order to win legalization, the swing voter will vote to legalize to the extent they see this as being about control, and about regulation.

Once again, that’s a group that’s going to prefer big over small. I’m very clear that I’d much rather see the marijuana industry evolve like a microbrewery industry or the vineyard industry. I tend to incline ideologically, as does most of Drug Policy Alliance, towards a “small is beautiful” model. We’re looking for those opportunities, but I have to say, I’m not in a position to make any commitments to anybody on this stuff, for the simple reason that I understand enough about the dynamic nature of capitalism in America.

Shango Los: While you’ve got your crystal ball out there, Ethan, what do you think is going to happen with these folks all across the country who have been set up and learned their business as medical marijuana producers, and then state by state, they are not going to be allowed to participate anymore, and thus they will more than likely either shut down or divert to the black market. Do you think that we’re going to see the DEA enforcing against folks at the local level, or do you think they’re going to keep their hands off, and any kind of an enforcement is going to be local county sheriffs?

Ethan Nadelmann: I think the DEA is going to focus primarily on the bigger players operating outside of state law. I think the DEA is probably going to be inclined to collaborate with local law enforcement in terms of people operating without a license. Now, I also think that California, I’m hoping California will offer a model that will be more attuned to the sorts of things that you and I are talking about than we’ve seen in Washington State and some other states. The other thing I would say, Shango, is I look at the history of alcohol, post-alcohol prohibition. After alcohol prohibition was repealed, tons of people who were involved in the industry, like the medical marijuana providers, growers are today, they tried to stay in, they tried to compete.

Depending upon some places in America, they kept a hand in selling alcohol illegally for a decade or two decades. Ultimately, I think many of them were pushed out, because consumers, it was easier and simpler for them to go to a licensed outlet, rather than buy from the neighbor who is making the home brew in the backyard. Then I think there’ll be a phase, once people have relaxed about these hyper controls, over supply. I think we’ll begin to see the reemergence of the small growers down the road, like we’re seeing the microbreweries and the micro-distilleries, and things like that. That’s my guess about the way it evolves, but I’m no expert in this industry, so I can’t say for sure.

Shango Los: Right on! Thank you for that, Ethan. Believe it or not, that’s all the time we have for today. Thanks for being on the show, Ethan. I’m really glad that you were able to offer us some time, especially the day before they vote in Ohio.

Ethan Nadelmann: Thank you very much, Shango, and good luck with everything on Vashon Island, and also in Washington State.

Shango Los: Thank you. Ethan Nadelmann is founder of the Drug Policy Alliance. You can find out more at DrugPolicy.org. You can find more episodes of Ganjapreneur podcasts in the podcast section at Ganjapreneur.com. You can also find us on the Cannabis Radio Network website and in the Apple iTunes Store. On the Ganjapreneur.com website, you will find the latest in cannabis news, product reviews and cannabis jobs updated daily, along with transcriptions of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. We’re also thrilled to announce that you can now find this show on the iHeartRadio Network app, bringing Ganjapreneur to 60-million mobile devices. Thanks, as always, to Brasco for producing our show. I am your host, Shango Los.


Photo Credits: Gabriel de Paiva (portrait) and Gage Skidmore (event photo)

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Cannabis Legalization Becomes Mainstream Topic in New Jersey

When news outlets discuss which East Coast state will be the first to legalize recreational marijuana, most reports suggest Maine or Massachusetts as the likely East Coast cannabis pioneers. One often overlooked — but not altogether unlikely — option is New Jersey, the small Mid-Atlantic state whose governor has been vocally opposed to legalization efforts since he took office.

In November, the discussion of a bill that would legalize, tax, and regulate recreational marijuana use in New Jersey gained mainstream traction. In a hearing before the state senate’s judiciary committee, Committee chairman Nicholas Scutari, the bill’s sponsor, opened the floor to legalization proponents.

“It is time to update our archaic drug laws to finally address the detrimental effect they’re having on our residents’ lives,” he said during the hearing. Scutari, a local prosecutor, went on to suggest that recreational marijuana could bring $1 billion or more to the state through tax revenue.

Speakers at the hearing included J.H. Barr, president of the New Jersey Municipal Prosecutor’s Association, Richard Smith, president of the New Jersey NAACP, Udi Ofer, executive director of the ACLU in New Jersey, and Dr. David Nathan, a psychiatrist from Robert Wood Johnson Medical School.

State senate president Stephen Sweeney said he is open to examining such a bill, but did not explicitly state whether he is in favor of passing it, stressing the importance of examining relevant data before making this type of crucial decision.

But a hearing of all the potential benefits that legalization could bring does not mean it’s on its way for the Garden State – at least not yet. No immediate action was taken on the bill. Critics were quick to point out that Scutari failed to invite opponents to the discussion. Opponents are scheduled to state their concerns to the state senate at a later date.

Right now, the biggest obstacle for marijuana legalization in New Jersey is Governor Chris Christie, who has been vocally opposed to it throughout his years in office. Despite signing New Jersey’s medical marijuana program into law in 2010 and recently signed a bill that allows students who use medical marijuana to take their medicine in school, he continues to hold the position that marijuana is a gateway drug and legalizing it would be harmful to the state’s children. In a recent visit to Colorado while campaigning for the 2016 Republican presidential ticket, he stated that if elected, he will enforce federal prohibition laws even in states where recreational cannabis use is legal.

But Scutari is not giving up on his goal of bringing cannabis legalization to New Jersey within the next few years. “I think we need to change the entire ballgame and legalize it, regulate and tax it, so we can ensure the safety of our citizens as well as garner the tax benefit,” he said shortly after the hearing.

Photo Credit: docmonstereyes

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Ethan Russo: Endocannabinoid Deficiency & Medical Cannabis

Subscribe to the Ganjapreneur podcast on iTunes, Stitcher, SoundCloud or Google Play.Endocannabinoid Deficiency: GW Pharmaceuticals & PhytecWhen the acceptance of medical cannabis goes mainstream, the pharmaceuticals landscape could face the most significant disruption of its existence. Due to the federal classification of marijuana as a Schedule 1 controlled substance, researching possible medical uses for the plant has been difficult. However, this has not stopped some companies from conducting their own research and clinical trials of cannabis medicines.

Our latest podcast interview features Dr. Ethan Russo, formerly Senior Medical Advisor to GW Pharmaceuticals, who participated in three clinical trials of the drug Sativex. Dr. Russo recently left GW Pharmaceuticals and can now speak publicly for the first time about his research: up until now, he could only be heard at expensive, exclusive conferences. He is now Medical Director at Phytecs, a company specializing in the production of cannabis-based treatments related to the endocannabinoid system. Everything that contemporary cannabis healers talk about in relation to cannabis as medicine is based on Dr. Russo’s published research, including the power of cannabis terpenes, the Entourage Effect, and Endocannabinoid Deficiency.

In this interview, our host Shango Los asks Dr. Russo about Endocannabinoid Deficiency (ECD) and the potential for it to be treated by cannabis. All human beings have an endocannabinoid system, which, according to Russo, regulates nearly every aspect of physiology. The Phytecs website states:

“The endocannabinoid system (ECS) is a homeostatic regulatory system that forms the cornerstone of a vast signaling network found in all vertebrates including humans. The ECS effectively ‘regulates regulation’ for physiological processes.”

Endocannabinoid Deficiency is just coming into general awareness now as a cause behind several conditions including Migraines, Fibromyalgia, Irritable Bowel Syndrome, Phantom Limb Pain, Infantile colic, Glaucoma, PTSD, Bipolar disease and others. If cannabis becomes accepted by the mainstream medical community as a treatment for ECD and its associated conditions, the implications for the pharmaceuticals market would be staggering to say the least. Listen to the podcast or read the transcript below to learn about the science behind ECD and how Dr. Russo believes cannabis can be used as a treatment!

Subscribe to the Ganjapreneur podcast on iTunes, Stitcher, SoundCloud or Google Play.


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Read the Full Transcript:

Shango Los: Welcome to the Ganjapreneur.com podcast. My name is Shango Los and I will be your host today.
Ethan Russo, MD, is a board-certified neurologist, psychopharmacology researcher, and former Senior Medical Advisor to GW Pharmaceuticals. He served as study physician to GW Pharmaceuticals for three Phase III clinical trials of the cannabis drug Sativex.
He graduated from the University of Pennsylvania and the University of Massachusetts Medical School, before residencies in Pediatrics in Phoenix, Arizona and in Child and Adult Neurology at the University of Washington in Seattle. He was a clinical neurologist in Missoula, Montana for 20 years in a practice with a strong chronic pain component. In 1995, he pursued a 3-month sabbatical performing ethnobotanical research with indigenous people in Peru. He joined GW as a full-time consultant in 2003.
He is currently past president of the International Cannabinoid Research Society and is former chairman of the International Association for Cannabinoid Medicines. He is author of the Handbook of Psychotropic Herbs, co-editor of Cannabis and Cannabinoids: Pharmacology, Toxicology and Therapeutic Potential and author of The Last Sorcerer: Echoes of the Rainforest. He was founding editor of the Journal of Cannabis Therapeutics, selections of which were published as books; Cannabis Therapeutics in HIV/AIDS, Women and Cannabis: Medicine, Science and Sociology, and Cannabis: From Pariah to Prescription and so many more.
He is presently medical director at PHYTECS, an American company developing endocannabinoid-based medicines. Everything that contemporary cannabis cures talk about in relation to cannabis as medicine is based on Ethan’s published research; cannabis terpenes, their human powers and volatility, the entourage effect and whole plant medicine and endocannabinoid deficiency. Today he is here to speak with us about endocannabinoid deficiency. Welcome, Dr. Russo.

Ethan Russo: Thank you.

Shango Los: Dr. Russo, your research supports that each human has an underlying endocannabinoid tone that reflects the state of their body’s cannabinoid receptors and that a deficient amount of endocannabinoids can lead to all sorts of physical failures in the body. Would you explain to me what you mean by endocannabinoid tone and how it offers insights to the state of the body as a whole?

Ethan Russo: Sure. The endocannabinoid system is a system in the body that is one that promotes homeostasis, a balance in other functions. It consists of 3 components. There are cannabinoid receptors in the body where THC in cannabis binds, but the endocannabinoid system is a lot older than cannabis so cannabis is not there just to get as high. This doesn’t have the system originated rather these receptors are in the brain, one called CB1.
Cannabinoid 1 is the psychoactive receptor. This is where THC works, but it has many important functions in the brain, including regulation of pain, seizure threshold whether someone will be epileptic or not, whether they become nauseated. It regulates levels of neurotransmitters, chemical messengers in the brain. Additionally, there’s a CB2, another receptor that’s mainly thought of as being out in the body where it’s involved in again regulation of pain and inflammatory responses. The receptors are 1 component of the endocannabinoid system.
There are endogenous cannabinoids. These are natural chemicals in the body, anandamide and 2HE; their names are the best characterized ones. These resemble THC in their activity. A lot of what THC does is paralleled by the effects of these natural chemicals in the body that everyone has.
The third component of the endocannabinoid system is the enzymes that make the endocannabinoids and break them down. If there are too many receptors or too much endocannabinoid or there is a deficit in enzymatic activity, any of these things can throw the balance off in the system. Someone having decreased endocannabinoid count could come about because they have too few receptors or they too few endocannabinoids, but ultimately the body tries to keep these in balance so that the systems work at their best.

Shango Los: The endocannabinoid tone itself in your papers it sounds like that maybe a quantifiable or measurable thing. What exactly would you say the endocannabinoid tone is?

Ethan Russo: It would reflect the amount of endogenous cannabinoids in the body that would be one, but it would also be affected by the number of receptors that were active and that’s something that can be influxed. It can change upwards or downwards. Let me give an example.
If someone uses a great deal of cannabis daily, it will actually down regulate the receptor. In other words the body tries to prevent excesses of activity and it will do that by inactivating the receptor if there’s too much activity, so that could happen. There are also things that can up regulate the receptor, make it more active.
It is a function of all 3 and it’s not an easy thing to measure either. I’m sure that people wonder already they might have an endocannabinoid deficiency. Right now this isn’t accessible by any simple blood test. The amount of say anandamide, one of the endocannabinoids, in the blood can be measured but with great differently. It’s a research technique.
The material actually breaks down so rapidly that if someone’s blood sample is taken to test it. It’s got to be immediately put in a liquid nitrogen and send off to a specialty lab that does this work. Certainly, it’s not available at your friendly local hospital to test.
In actuality, the best way to test won’t be in the blood. Most of these conditions would be reflected in brain activity. A better way would be to test this rigorous spinal fluid that’s what you get when a spinal tap or lumbar puncture is done. Because that’s an invasive procedure, we don’t do that in this situation except as a research technique either.
Someday hopefully soon there might be a way to do imaging of the brain to assess the endocannabinoid activity that would be the best way hopefully without requiring any needle sticks or anything else that’s invasive. Right now for most people this is going to be what we call a diagnosis of exclusion meaning that if other things are not identified as the culprit it may be that this is going on. It will be what’s called the clinical diagnosis based on the pattern of the illness.

Shango Los: In the idea of the tone it sounds like if you have too many or too little on either side of the relationship either between the receptors or the cannabinoids themselves that is where the issue is. Does it not really matter if you have a smaller relationship, less receptors and less cannabinoids or more receptors and more cannabinoids that is in as much of the difference? The question is whether or not they are equal.

Ethan Russo: I think you’ve identified the issue. You can have too many receptors but not enough endocannabinoids. Really they need to be in balance. This brings to the fore an issue I should emphasize at this point. The whole function of the endocannabinoid system is what’s called as a homeostatic regulator. Let’s break that down.
Homeostasis is a balance in bodily function. The endocannabinoid system regulates how other aspects of physiology, how our body works. Let’s give a couple of examples. One of the main things the endocannabinoid system does in the brain is regulate the amount of neurotransmitters, their activity.
Neurotransmitters are chemical messengers in the brain that allow 1 nerve to talk to another. Let’s say for example that there’s too much glutamate activity. This is one of those neurotransmitters. It’s stimulatory, in other words 1 nerve communicating with the next increases its signal. That’s all well and good. It’s a necessary function but when it’s present in excess it will do 2 things that are potentially bad.
One is it produces neuropathic pain, nerve-based pain, a very severe kind of pain that’s associated with nerve problems out in the body or nerve damage in the brain, that’s one. Additionally, glutamate activity is excessive after head injury or strokes so much so that actually can kill brain cells. See, understand then that if there’s too much glutamate that the endocannabinoid system if it’s able to bring those levels down is a helpful thing in promoting health. If we look at systems beyond the brain, the digestion, hormonal systems, the skin, regulation of pain, whether or not somebody have a seizure, all of these are regulated by the endocannabinoid system.
Now the really surprising thing is this system has only been described for about 20 years, a little bit more. We wouldn’t know about it yet maybe if we didn’t know about cannabis, because it was through the study of THC and cannabis and other cannabinoids that this system was discovered. It likely would have taken another 1 or 2 decades to recognize it and its importance have it not been for this relationship.

Shango Los: If the cannabinoid receptors being out of balance causes impacts, it begs the question for patients at home who are self medicating with cannabis. Is it possible that they could intake too much of cannabinoid precursors or through like RSO or something and end up over flushing their brain with endocannabinoids and throwing themselves out of whack?

Ethan Russo: That’s certainly a risk. Most cannabis-based therapeutic requires very low doses, particularly of THC. The tincture in excessive intake is what’s called tolerance or down regulation. We mentioned a little while ago that if there’s too much activity the cannabinoid receptors will become less active. This is what happens when somebody uses so much THC that they become tolerant to it. What the consumer would notice is the amount of cannabis that previously would give them the effect they want saying feeling high no longer work that they needed a lot more in contrast.
When people are treating symptoms particularly those associated with what we call clinical endocannabinoid deficiency and that would be migraine, fibromyalgia and idiopathic bowel syndrome or spastic colon those 3 examples. What they seem to respond to in contrast are very low doses of a cannabis-based medicine and that could be low doses of THC or perhaps higher doses of cannabidiol, which tends to itself promote the function of anandamide, one of the endocannabinoids and help bring the systems into balance better.

Shango Los: 2 of the ailments they talked about in your research are both the bowel syndrome and migraine. As a migraine sufferer, I was very interested in r6eading the specific mechanics of how the endocannabinoid tone being out of balance creates an opportunity for migraines. Whichever you think is the better example? Would you choose one of those and get into specifics about the mechanics of it so folks can picture for themselves the role that endocannabinoid system plays in the ailment?

Ethan Russo: Sure. Let’s choose migraine. Now this is one of those situations where there’s a real danger of oversimplification because this is really complicated. For something that so many people get migraine is incredibly complex and to these days still poorly understood.
What we know is this. There’s no blood test for it. There’s nothing … No test specifically that tells you that someone has it but it’s totally based on the clinical pattern and that is the type of headache that’s often primarily one-sided. It tends to have a beating quality. It can be associated with nausea that can be very severe and it’s also associated with what are called photophobia and phonophobia. Respectively, those mean a sensitivity of the eyes to light and ears to sound.
Things that are normally not painful become painful to the patient having a migraine. Now this has a lot because it indicates that everything is geared up too high. It’s like the filters are off when somebody has this. They have this terrible pounding pain, nausea, sensitivity of eyes to light and ears to sound and it’s really a miserable condition.
What we know and this has been proven now. Given that I wrote my initial big paper on the clinical endocannabinoid deficiency in 2004, we have 11 years of subsequent research that actually shows that anandamide, one of the endogenous cannabinoids, is lower in people with migraine. This was done in the cerebrospinal fluid with spinal taps.
This is a study I had suggested way back when, but I didn’t think that it could be performed ethically in the United States. I guessed they were able to do it I’m Italy, because that’s exactly what they showed was that there was a significant lowering of anandamide in the spinal fluid of people with migraine as compared to those who didn’t have it. In essence that was the first I think real objective proof of clinical endocannabinoid deficiency.
It’s interesting because every symptom that I mentioned on relation to migraine seems to be alleviated pretty well by treatment with cannabis or to lesser extent THC on its own. When I was in neurology practice among my patients in practice and patients who reported to me about 80 percent of people who use cannabis to treat migraine seem to find it helpful both at the time taking it when they have a headache and especially as a preventive.
Now people may think that that’s new. It’s actually not. The first mention of this in the literature may have been 4,000 years ago if we read the science right from the ancient Acadian and Sumerian writings, but certainly we know this. Between by the 1840 and 1940, cannabis was a mainstream medicine both in Europe and the US. Actually, migraine was one of the most frequently reported uses for cannabis and great success was noted with those preparations. Now they had a lot of problems with quality control that won’t be evident now if medicine is made properly, so I think that this has great promise for the future.

Shango Los: For a patient who is self medicating and until the day comes that potentially there is an FDA-tested medicine out, what would you say would be the appropriate way for a patient to medicate? Do you think that an RSO preparation is appropriate? Do you think that actually smoking it so it takes effect more quickly? What is the method of delivery that you think is most likely to be effective?

Ethan Russo: It’s a complex topic. I mentioned earlier I think that the solution here is very low doses and so starting with the concentrate would be risky. What tends to happen there particularly for a medical patient especially in this context is it’s very easy to overshoot. A patient should be treating to the point of symptom control, not psycho-activity. Chances are with the concentrate the first inhalation is going to make them quite high and it might reduce their symptoms but maybe more than they need.
The ideal treatment to me in this situation is one that allows the patient to reduce their symptoms or eliminate them but still function. In other words people are not necessarily looking to have mental changes from their medicine. They’re looking for a relief and particularly for people who need to be working or studying it would be great to be able to get rid of the pain, nausea, et cetera and still be able to work, not feel high and certainly this can be done.
The approach would ideally be I think to have a medicine that was primarily cannabidiol perhaps a very small amount of THC and again use in a very sequential way, in other words very small amount to the point of benefit on symptoms and hopefully without psycho-activity.

Shango Los: What would you say the appropriate ratio would be something as simple as a 2 to 1 or as high of a CBD to THC ratio as you can manage?

Ethan Russo: Really the latter. Unfortunately, not all consumers who even have legal access in the states where they live are going to have reliable lab test on which to base their attempts of treatment. It really is what we call a therapeutic experiment. My best advice in all instances is to start low and go slow, particularly for the person who might have chronic frequent migraines.
Treating this preventively certainly should start with the lowest possible doses working up very slowly to the point that there’s benefit on the frequency and severity of the migraine attacks. Given that it’s a chronic condition ideally is to get better but get better slowly without creating side effects.
The problem with many cannabis-based medicines is particularly in naïve patients who hasn’t used cannabis before if their first experience is a bad one, which can happen particularly with concentrates, they may not return to it. They may have lost a good opportunity to successfully treat their condition. That would be a shame but that’s just one among many reasons that I think the slow what we call titration, slow increase in dose, is the best approach to this kind of clinical problem.

Shango Los: Now that we know that this kind of lack of balance has such an effect, what direction is the research going in? Now that we know that it exists, is the research moving towards how can we test for this without a spinal tap or is there some other area that’s hot right now?

Ethan Russo: That’s been slow and I’d like to help change that. I am hoping that n the next few years we can work with colleagues on doing brain imaging like I mentioned that would give us an idea of the state of someone’s endocannabinoid system. We can look with a special testing at levels in the blood of the endogenous cannabinoids and other conditions and see if we can produce correlations that would support that these are really important and how that disease works like I suspect is the case.
Because again this isn’t limited to migraine at all but certainly fibromyalgia, idiopathic bowel syndrome and possibly many others, including such common current problems as posttraumatic stress disorder. There’s very good evidence that there is an endocannabinoid deficiency operative in that disorder.

Shango Los: You said it earlier that the endocannabinoid system we’ve been aware of it for about 20 years and your cornerstone research on it that was published in 2004 and here we are now in 2015 and it’s just now finding its way out of academia and into citizen healer’s and patient’s knowledge. Why do you think that it’s taken so long for it to reach the patients?

Ethan Russo: It’s like anything else. Not everything gets noticed when it’s first mentioned. At the time I wrote the paper in 2004, there was not a lot of objective evidence. In the paper I try to assemble what was known about how these diseases worked and how they were affected by the endogenous cannabinoid system and by cannabis. Since then things have really changed and that as I mentioned there’s been the objective proof of an endocannabinoid deficiency in migraine. There’s been a lot of other evidence, too.
If I could talk about fibromyalgia for a minute this has a lot in common with migraine and they tend to happen in the same people. Fibromyalgia is a painful muscle spasm and pain condition. Now what it has in common with migraine is you can’t see anything. If you look at the tissues, it looks okay. If you scan it, it looks okay. Again, like migraine, there is pain on the proportion to what seems to be necessary. The pain can wander around the body. It can be quite disabling. It’s associated with a sleep disorder. Unfortunately, although it’s very common it’s treated very poorly by available medicines.
In 2014, the National Pain Report came out with a survey of 1,300 fibromyalgia patients and asking them how they responded to several agents. There are actually 3 drugs approved in the US to treat it. These are called duloxetine, milnacipran, and pregabalin. The first 2 are antidepressants that work on serotonin and norepinephrine, increasing the amounts of both. The third is an anticonvulsant, a seizure medicine that’s actually used to treat nerve-based pain.
However, these 1,300 patients who responded to the survey they found that these 3 drugs; duloxetine was very effective in only 8 percent, milnacipran in only 10 percent, and pregabalin in only 10 percent. They found that they got a little bit of help with duloxetine 32 percent, milnacipran 22 percent, and pregabalin 29 percent. However, people felt that they got no help at all from these drugs; duloxetine 60 percent, milnacipran 68 percent, and pregabalin 61 percent. This is pretty bad.
Now let’s compare with those people who used cannabis. 62 percent reported cannabis is very effective for this condition, so that’s 6 times better than any of the drugs that were approved for it. In the cannabis patients 33 percent additionally found that it helped a little and only 5 percent got no benefit at all.

Shango Los: Probably with a lot of side effects too.

Ethan Russo: Hopefully but one looks at the graph as I do in front of me it’s pretty readily apparent that there’s a big qualitative difference and that cannabis clearly is the best medicine as compared to the 3 FDA-approved drugs for this condition. Obviously, we need to do better and hopefully soon there will be legal access for cannabis-based medicine whether prescription or otherwise for other people that have condition, which is actually the most common diagnosis amongst dermatologists in the US, so it’s a very common condition.

Shango Los: Chances are we’re opening a lot of folks’ eyes to endocannabinoid deficiency just with our interview. For folks who are now interested in the topic and may want to find out more, it’s a pretty obscure topic. Where would you recommend that people go to find out more?

Ethan Russo: Hopefully, we can provide a URL to my study. There are lots of other studies. Additionally, we’ll be talking about this at Patients Out of Time conference coming up later in May in West Palm Beach, Florida. Eventually, a recording of the topic there which would be similar content to our discussion today will be online later that will also be available for continuing medical education credit so that patients could suggest that their doctors see this and they can get credit for it from watching it online. Additionally, because there’s been 11 years of additional research in this area I hope to write another article about this.

Shango Los: Fantastic. Dr. Russo, thank you for joining me today and thanks for sharing with us about endocannabinoid deficiency.

Ethan Russo: Thank you.

Shango Los: Dr. Ethan Russo is a world-renowned neurologist and cannabis researcher. I am Shango Los, founder of the Vashon Island Marijuana Entrepreneurs Alliance. Thank you for listening to Ganjapreneur.com.


 

Photo Credit: Natalie Martin

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Boston Mayor Comes Out Strongly Against Marijuana Legalization

Boston Mayor Martin J. Walsh has come out as a fervent opponent of Massachusetts marijuana legalization, stating that he would be “absolutely” ready to take a stand against an anticipated legalization referendum.

Walsh, a recovering alcoholic and advocate for those dealing with drug addiction, said that he has “seen too many lives ruined by starting to smoke weed and then, eventually, going to other types of drugs… I just think it would be a mistake to legalize marijuana in Massachusetts.”

Although Governor Charlie Baker, Attorney General Maura Healey, and Suffolk District Attorney Daniel F. Conley are opposed to legalization, none have stepped into the spotlight like Mayor Walsh has. Coming out so strongly against legalization is seen as politically risky; strong majorities approved a measure in 2008 to decriminalize the possession of small amounts of cannabis and another measure in 2012 to legalize medical marijuana.

Mayor Walsh appears to be acting from what he views to be a moral position; one adviser said the mayor feels so strongly about the legalization movement “that he is willing to use his political capital to let people know that he is not in favor of it.”

Walsh has a two-thirds approval rating, and could be in a position to turn the tide in Boston’s legalization debate. Democratic strategist Steve Crawford noted that “the most important thing you need for a ballot question is to introduce emotion into the debate… On this issue, no one has greater credibility than Mayor Walsh, and he is a formidable voice for families struggling with substance abuse.”

Walsh dismissed arguments that marijuana is not a dangerous substance: “I view it as a gateway drug,” he stated. “Some people can, I guess, smoke it recreationally and they don’t get addicted to it, but there’s a large number of people that are in recovery now or that are struggling on the streets with addiction, and they got their start by smoking weed.”

When asked whether he is concerned that marijuana arrests disproportionately affect people of color, Walsh was incredulous: “So because of racial disparities we legalize a drug that potentially could kill people, lead to death? I don’t think that’s a good enough reason to do it.”

Source:

https://www.bostonglobe.com/metro/2015/05/31/walsh-could-lead-anti-marijuana-legalization-effort/EArW3aHfeA02r2eJ8HJrrO/story.html

Photo Credit: Rene Schwietzke

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New Doobster App for On Demand Legal Marijuana Delivery Does Things Differently

Logistics Trust, Inc. has launched a subsidiary named Doobster (www.Doobster.org), a mobile application and platform (the “Doobster Platform”) that allows a consumer of legal marijuana to order products from their smart phones, tablets or computer and have the products delivered to their physical location. Doobster is launching in 15 states by empowering stakeholders at all levels with its innovative business model.

Started as a logistics and compliance consulting company in January 2013 by Scott Abadjian, Founder & Chief Executive Officer, Logistics Trust, Inc. (“Logistics Trust”) now intends to provide consumers with an on-demand mobile (SaaS) platform. The robust and flexible Doobster Platform is very user-friendly. Consumers can register and order products quickly and with confidence. Products are delivered to a consumer’s location within minutes by using smart algorithms, advanced routing, heat maps, GPS, location services and other techniques.

But the Founder and Chief Executive Officer emphasizes, “Doobster is not Uber for marijuana; we are more than a marijuana delivery app.” The Company intends to make the term “doobster” synonymous with quality logistics and compliance facilitation services within the legal marijuana industry. Another objective of the Company is to create long-term value for its customers and business partners through the quality of its technology and services, its ability to facilitate compliance with applicable state and local laws, and its active commitment to helping customers and business partners build wealth.

Doobster Platform users will include the following parties:

  • – State-authorized Cooperatives/Collectives/Dispensaries (“vendors”; “dispensaries”);
  • – State-authorized legal marijuana product couriers (“drivers”), who are thoroughly screened by Doobster before being included in a dispensary’s driver pool and issued access to the Doobster Platform; and
  • – State-authorized legal marijuana consumers (“consumers”; “patients”), who are thoroughly screened by Doobster before being granted access to the Doobster

Doobster does not grow, produce, process, distribute or sell marijuana or marijuana products. As a unit of a software logistics and compliance facilitation services company, it will deliver the following commercial services:

  • – Enable consumers to search for a Doobster-connected vendor of legal marijuana products within their local market area and state;
  • – Enable consumers to order legal marijuana products from the inventories of a Doobster- connected vendor within their local market area and state;
  • – Enable consumers to request and receive delivery of legal marijuana products by a driver affiliated with a Doobster-connected vendor to their current location; and
  • – Enable consumers to pay for their purchases of legal marijuana

Abadjian is passionate about making sure that all parties in the Doobster service delivery chain obtain real value from the Company’s technology and services. “This is an incredible time in our nation’s history. Cannabis has the potential to revolutionize the economy at local, state and national levels. We have not built a marijuana delivery app just for our benefit. My aim is people helping people. From cultivators to dispensaries to drivers to consumers to licensees to community residents to government regulators, Doobster helps to address the socio-political- economic interests of each of those stakeholders in a harmonized manner,” says Abadjian.

Studies show that both medical and recreational marijuana users of various demographic groups, including mobility-challenged, older people, business professionals and high-profile individuals, welcome discreet and legally compliant delivery of their cannabis products. Since many local ordinances limit the number and visibility of marijuana storefronts, the Doobster Platform enables vendors and consumers to communicate with a smart device or computer and execute a state- sanctioned legal marijuana purchase without the need for consumers to drive to dispensaries or wait in long lines to transact their business. A post-order in-store pick-up is also an option with use of the Doobster Platform for those who may be on the go and simply want to avoid long lines and wait times.

Abadjian emphasizes, “Our Doobster Platform satisfies the desire of vendors, consumers, community residents and government officials to allow state-authorized users of legal marijuana to access products in a safe, efficient and discreet manner. The Doobster Platform also negates the debate about the perceived negative stigma associated with visible, high-profile marijuana retail storefronts. Our business model addresses the core realities of the marijuana industry – people want easy, safe, discreet and reliable access to products, communities want to maintain their family-friendly standards, vendors want an effective means to drive sales, government officials want practical ways to regulate the industry and foster tax revenue, and business professionals want entry into the industry without the risk of violating federal, state or local laws.”

One of several distinguishing factors for Doobster is its use of a license model to open new state and county territories (called “DMA’s”) and enroll state-authorized dispensaries to adopt the Doobster Platform. Licensees at the state-level and DMA-levels serve as Doobster authorized representatives, complimenting internal Company sales and customer support teams. State and DMA licensees are also responsible for helping to foster community relations and maintain close relationships with dispensaries, as well as the customers and communities served. Licensees are vetted for their customer relationship management skills, sales, marketing, business management and financial acumen, as well as their local community connections and other attributes.

Having licensees who are well-established in their communities and vested in the success of the Doobster Platform in their territories provides multiple benefits. One important benefit is that it keeps a large percentage of the income generated by the Doobster Platform within the community, which creates jobs and economic security for the community.

“Our licensee model will afford local business professionals opportunities to get involved and benefit financially from the exploding legal marijuana industry without producing, handling, distributing or selling marijuana products,” says Michael Watorski, Vice President of Sales.

Licensee applications are now being accepted. Watorski has already sold several State and DMA licenses and demand has been brisk.

“What separates us from the competition is that our licensees receive a generous percentage split of the monthly Doobster revenue” says Watorski. He adds, “In addition, all licensees are issued Company stock, allowing them to profit from the ongoing success of the Company.”

To be clear, the company is not selling stock to licensees, dispensaries, drivers, employees or other stakeholders. The Equity participation and stock issuance awards are similar to a hybrid loyalty program and are designed to fully comply with all federal and state securities laws.

Logistics Trust not only shares equity with State and DMA licensees, but also with its dispensaries. “We’re stepping into this industry in a very innovative way to create real separation from the competition,” says Darryl K. Henderson, J.D., Chief Operations Officer. Henderson adds, “All dispensaries that adopt and utilize the Doobster Platform will receive an equity stake in the Company. In other words, not only do we create value with the quality of our technology and services, when we prosper, our business partners and customers prosper as well.”

Abadjian is very proud of the talented and diverse team of executives, internal sales professionals, technology staff and customer support staff assembled to deliver the Doobster Platform. “Our employees are our most valuable asset. We expect them to perform to exacting standards each and every day.” Abadjian adds, “We have been fortunate to assemble an outstanding team of seasoned business professionals to execute the Doobster operations.”

Doobster is moving into 15 states, including the following:

Alaska           Maryland                 Oregon

Arizona         Massachusetts         Vermont

California      Minnesota                Washington

Colorado       New Hampshire

Illinois           New Mexico

Maine            Nevada

The first phase of Doobster Platform launch has begun and involves accepting applications to become State and DMA licensees. The first State in which Doobster will operate is scheduled for launch in June, with a small group of select dispensaries participating in the launch. Consumers and prospective drivers for dispensaries are strongly encouraged to pre-register on the Doobster website and will be able to check for updates as June approaches. The Company is also engaged in a continuation of its angel investor fundraising.

The Official launch date of the Doobster Platform to the public will be announced on June 1st. It will take place in states that have both legalized marijuana sales and authorized legal marijuana deliveries.

Doobster is committed to following the law to exacting standards in all of the jurisdictions where it will operate. It will only work with licensed dispensaries and lawful drivers legally authorized to carry marijuana in their states.

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Douglas Leighton: Investing in Cannabis Industry Start-Ups

Dutchess CapitalGanjapreneur is excited to present our latest interview with cannabis investor Douglas Leighton. Leighton is a co-founder and principal partner at Dutchess Capital, an investment group which manages world-class investment funds for start-up, pre-IPO, and publicly-traded companies. Dutchess has been advocating for and investing in the legal cannabis industry since 2012.

In this interview, Leighton describes how Dutchess came to see the cannabis industry as an opportunity, and what some of his predictions are for the next several years. He also discusses some of the group’s current investments, including the popular cannabis social network MassRoots, the edibles producer Dixie Brands, and several others.

Read the full interview below:


Ganjapreneur: When did Dutchess Capital first begin to look at the cannabis industry as an investment opportunity?

Douglas Leighton: We began looking when The Commonwealth of Massachusetts was about to pass the medical marijuana bill via voter approval on question 3. It took us about 10 months of due diligence before we were comfortable to make the first investment. We joined ArcView, the angel network for the cannabis industry, in the summer of 2013 and met Isaac Dietrich of MassRoots and subsequently made the first investment.

In a fully-legalized system, which market would you say is the most significant: recreational cannabis, medical marijuana, or industrial hemp?

The largest market will be pharmaceutical marijuana. This will be a genetically modified version of what is used today for medicinal purposes. The power of this plant is not fully understood; once big pharma understands it, they will get involved. I think the second will be recreational, due to the sheer population size and the fact that people will likely come to realize it is better for you than alcohol with far less side effects. Recent studies have shown there are also less side effects on society from cannabis than there are from drinking alcohol, including violence, addiction, drunk driving, etc.

What do you think some of the most promising niche sectors are related to cannabis?

First I’d say consulting. I think the “top-down” approach has the most potential. I will equate it to the concept of selling picks and shovels to miners during the gold rush. In the case of cannabis, it is the consultants providing guidance to all of the marijuana startups in cultivation and retail and then selling the related products to growers on a B to B platform. There will also be a need to create better efficacies in the current markets as the product becomes commoditized. An example of this is one of our portfolio companies, American Cannabis Consulting (AMMJ:OTC). They are at the forefront of this industry with about 12 major clients in the US and Canada. They provide solutions for businesses operating in the industry through consulting and advisory services, as well as supplies business with equipment and products.

I also like the technology sector. One of our first investments in the industry is the semi-anonymous social network MassRoots. They are largest social networking site for the cannabis community and have grown over 2,000% year over year. They are anonymously collecting a tremendous amount of data from their user base such as a user’s strain preference, time of day they consume, consumption method among other key data collection points. They will be able to monetize this data via sponsored posts of either localized merchants and/or national brands.

Dutchess also likes companies in various sectors with that are building a brand of consumer products and goods. Tripp Keber has done a remarkable job with his branding efforts of Dixie Elixirs. I also think a brand such as Foria, the world’s first THC infused personal lubricant for women, has done a stellar job with its branding, and it shows; they were recently featured in British GQ.

Is there a particular niche that Dutchess Capital has focused on, or are you casting a wide net on the industry?

The industry is so new that we are casting a wide net. In saying that, we like businesses that have long-term contracts or high barriers to entry. We put particular focus on the people behind the products and services; are they hard working, passionate and driven to succeed?

What is the most important thing for an aspiring ganjapreneur to do if they are looking for an investor to help fund their business?

Know your business inside and out. Know every number and statistic off the top of your head. You need to live and breathe your work. Be able to explain it in 2-3 sentences what it is you do, or what you are looking to do. Have your proforma and deck ready at all times. Be able to show how you are going to scale your business with investment. Have a reasonable valuation and realistic expectations of growth. You are not going to sell your business to a fortune 500 company; please don’t tell me that.

Can you discuss any of the cannabis industry projects that Dutchess Capital has invested in to date?

Sure. We have invested in Dixie Brands, the industry leader in edibles and consumables; Mile High Entertainment, a license play with celebrities; Kandy Pens, a vaporizer company; Foria, a marijuana-infused personal lubricant company; American Cannabis Company, a consulting and B to B supplier; MassRoots, a social media company, as well as several grows around the country to name a few.

Have you noticed any common traits among the entrepreneurs you see in this industry, which set them apart from the people in more well-established industries?

I would say the passion for the industry as an entirety, and the desire to propel the movement forward. They also want to educate people who are ignorant to the cannabis plant. People have been lied to for years about the cannabis plant, and the people in this space want to educate that section of the population on why this plant can help so many people.

What do you think the next five years has in store for the industry?

Growth. There will be many bumps in the road, and more growth. Investing in this industry is like playing chess without being able to see the board. Eventually ignorance will abate, the banking issue will be fixed and the drug will be rescheduled.

How about the next fifteen years?

Industrial hemp will be everywhere; pharmaceutical grade cannabis will be prescribed by a doctor and covered under insurance. It will be legal in all 50 states and people will talk about the multi- generational wealth that had been created from the people brave enough to invest at the dawn of this industry.


Thank you for taking the time to answer our questions, Douglas! Ganjapreneurs from every niche and sector in the industry would be wise to heed your suggestions while seeking investors.

If you have comments or questions of your own, feel free to post them below. Or, get in touch with Dutchess Capital directly via their website. Dutchess has also published a guide for cannabis industry entrepreneurs, which you can download by clicking here.

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Two Competing Campaigns Aim to Put Marijuana Legalization On Maine Ballot

Maine has been recognized as a likely candidate for one of the next U.S. states to legalize cannabis. Last week, however, a new group called Legalize Maine unveiled a legalization plan that will run counter to the Marijuana Policy Project‘s existing push for a statewide referendum.

In a press conference on Wednesday, Legalize Maine announced that their plan will focus on jobs and the industry’s opportunity for economic development in the state’s rural areas. According to Paul McCarrier, spokesperson for Legalize Maine, his organization is moving forward with their plan after hearing from individuals who worked with the MPP in other states. “We are not interested in being subjugated to MPP or the Washington D.C. policy,” he said during the press conference. “These will be competing measures and we will win.”

Catherine Louis, Director of Education for the Medical Marijuana Caregivers of Maine, also expressed concerns that a nationally funded campaign might pressure certain aspects of the medical marijuana industry in a negative way. She noted an example from Washington state’s legalization program: “They started trying to push people into the mainstream legalized market for tax purposes and it has made it so that some patients can’t access their medicine at all, and we can’t allow that here in Maine.”

The Marijuana Policy Project has been planning a referendum question for the Maine 2016 ballot for some time. During the most recent midterms, the group put legalization questions on the ballots of South Portland and Portland, where legalization passed, and also in Lewiston, where it failed. “Ideally it makes sense to have one initiative,” said David Boyers of the Marijuana Policy Project. “But if we can’t see eye-to-eye then we will move forward and we hope voters choose the plan that will make marijuana legal and stop punishing adults for using a substance safer than alcohol.”

The MPP was founded in 1995 and has been working closely with efforts to legalize marijuana across the country. The organization was involved in the successful legalization campaigns of Colorado, Washington, Oregon, Alaska, and the District of Columbia.

In addition to Maine, reports indicate that at least six other states could see initiatives to legalize cannabis on the 2016 ballot: Massachusetts, California, Missouri, Hawaii, Nevada, and Arizona.

Sources:

http://www.wcsh6.com/story/news/politics/2014/11/19/marijuana-legalization-plan-maine-pot/19260973/

http://wallstcheatsheet.com/politics/5-states-and-one-city-ready-to-legalize-marijuana.html/?a=viewall

Photo Credit: Randy Pertiet

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Matt Brown: Leading Lawmakers Through Uncertain Territory

There are now four states in the USA that have voted to legalize cannabis for recreational use. But how do the finer points of legalization get defined (from a legal perspective) once the voters pass a bill?

In the third segment of our interview with Matt Brown from My 420 Tours, Matt discusses what it was like being intrinsically involved in the process of determining the legal structure that Colorado constructed during its bid for legalization. He also goes into detail about how in some cases, successful negotiations with nervous lawmakers depended largely upon the rhetoric that was used.

Listen to the audio or read the transcript below.

Matt Brown Interview, Part 3:

First time here? Go back to Part 1. Part 4 of the Matt Brown interview is coming soon!


Transcript:

Matt Brown: So that started as dispensaries have to grow their own, and to a legislature that doesn’t know any better and doesn’t really give a shit about pot, that sounds very rational-

Ganjapreneur: -sensible.

Matt Brown: Right, sensible. And Chris Romer’s an economist. He studied economics at Stanford, he considers himself an economist.

Ganjapreneur: That’s how he- yeah. He doesn’t bill himself as a politician.

Matt Brown: He fancies himself as an economist, and so for him, very early on in the process- and this was clearly a sticking point, I started using the term, “vertical integration” and he’ll defend his economic sensibilities. You cannot find an example of mandatory vertical integrations in the United States. It is, from freshman year economics onward, an option of a company in a normal market that should have the option to vertically integrate or horizontally integrate or however they went, but you would never force it. And he got that, and by calling it vertical integration it changed the argument that then-

Ganjapreneur: So in a sense, you put it in a more familiar context? That he could kind of see it as- Yeah. Not so much as a sensible policy but as an economic tenant he didn’t want to violate.

Matt Brown: Drilling for oil versus energy exploration. Yes, exactly.

Ganjapreneur: And so your intent there was to sort of color-

Matt Brown: To get it to go away entirely.

Ganjapreneur: To color it to the point where it’s just distasteful?

Matt Brown: Right. When it became clear that some form of what we would call vertical integration was going to be required, then that was the ace up my sleeve that I used and abused for the entire rest of the process. Any time they would start to vote something too stupid, I would be able to come back and say, “Listen, the vertical integration thing that you’re forcing is the absolute toughest thing for me to sell because it doesn’t make any sense to anybody. There’s no support for it.” Like, “I can keep fighting the fight for you, Chris, but this is a big deal.” And so we got all sorts of other incremental horse-trading maneuvers because they’d said so early on in the process that they were not willing to go past 70 percent of the vertical integration.

Ganjapreneur: Right.

Matt Brown: Some form of like a, “In case shit happens, you can wholesale,” but they were very much opposed. So the MMIP [medical marijuana infused product] license was my work, because no one had ever done marijuana-infused food like this before.

Ganjapreneur: So what were they considering for food? How did hash get mixed into that? I think that’s a really interesting side.

Matt Brown: What happened was, again, I did tours. I took ?[Rep. Tom] Massey tours, I took Charlie Brown on tours, and I think what happened was-

Ganjapreneur: Now how did you arrange these? Were these just dispensaries that you has business relationships with and you were like, “Hey, I know you’re a good spot, can I bring some people through to show them something exemplary?”

Matt Brown: Exactly. Friends and clients. I went and sat in on a couple of the work group sessions for City Hall, and the important part here is the State of Colorado’s legislature only meets from the third week in January to the third week in May, second week in May, something like that. And this all came to a head starting July 20th. By the fall we had hundreds and hundreds of these statewide. The number was something like 700 by the end of the year.

Ganjapreneur: 700?

Matt Brown: Dispensaries statewide.

Ganjapreneur: And in a period where the legislation the couldn’t make rules.

Matt Brown: Exactly, they were not in session.

Ganjapreneur: That’s why that happened. I did not know why that happened.

Matt Brown: Mm-hmm!

Ganjapreneur: How much of this was pure luck, how much of this was the connections–the unique connections that you had, and how much of this was just being that guy who showed up and had something smart to say?

Matt Brown: Equal parts one and three, a little bit of two, and I’ve spent years off and on trying to deconstruct how much of that it is and I don’t know, so the way I see it was I was in the right place at the right time.

Ganjapreneur: For sure-

Matt Brown: I was here in Colorado, I was the only business consultant who put business out there. You have Warren [Edson] tell it… Ryan Vincent really loves telling this story: I put up four Craigslist ads in a month and a half and I was banking, like ten grand a week, twenty grand a week on just incorporation. It was copy and paste, find and replace in Word, and then have the same talk for hours on end with people over and over, teaching them. Here’s how you co-opt any other rule that exists for any other industry that looks like ours. So if you’re selling edible products, why don’t you go ahead and get ahead of the curve and follow the food handling rules that you would if you were selling cookies at 7-Eleven. I found there was some selection bias in the people who chose to pay me, so it was the right place and the right time. I also give at least equal credit to myself for recognizing I had a very unique voice and approach and angle. There was this metaphorical rope ladder hanging right there just out of my reach. If I jumped a little bit I knew I could not only get it, but I could climb up to the top bigger and better than anybody had done before. And… I was a national champion debater. Two time nationals in high school. I was ranked fifth in the nation.

Ganjapreneur: That’s why you said before you were a debater–you weren’t scared to go- okay.

Matt Brown: Yeah. I was raised from- I actually, in middle school, my gifted teacher, because I was in the gifted class-

Ganjapreneur: So you’re from Massachusetts? You went to school-

Matt Brown: Missouri.

Ganjapreneur: Missouri, okay. Missouri public schools produced this?

Matt Brown: Yes.

Ganjapreneur: Way to go, Missouri.

Matt Brown: Kansas City, Missouri has four of the top ten most competitive high school debate districts in the country. It is an incredibly intense Midwestern debate legacy that goes on.

Ganjapreneur: Interesting.

Matt Brown: Churned out a lot of politicians, a lot of lawyers, a lot of business people, because, if nothing else, you spend your high school learning how to build and deconstruct arguments on the fly and more importantly, you learn how to tailor your message to your audience.

Ganjapreneur: Yeah.

Matt Brown: From freshman year on I spent literally, it was the longest athletic, because it was considered an athletic- it was from the first week in October through the end of April, I had tournaments every single week except for two weeks off over Christmas, and from freshman year on, you had to look a stranger in the face and start to make assumptions and just read their body language and their everything to see, okay, is this a college kid who’s probably a former high school debater? Then I can speed and spread, talk fast, hit them on technicalities, do this, or is this somebody like my mom and I need to slow down, be more emphatic with my voice, drive home points that make sense?

Ganjapreneur: So now the question is this: when you’re debating someone in that context, right, is that like a boxing match where you’re trying to beat that person, or you’re trying to win over judges? Well, I guess it helps- it’s like a boxing match. You’re doing both.

Matt Brown: When you have a reputation… So, my event- so I did cross-X debate, standard high school debate, which was two people, you and your debate partner against two other high school kids on the same topic all year long, and you get cases of evidence where you have to cut cards, and so I had to learn how to synthesize an entire article into one or two of those quotes you’d cut out that fit an argument, so that when somebody would talk about Tesla coils vis-a-vis renewable energy, I could open up a box and have ready to go evidence where I’m quoting citations and sources.

Ganjapreneur: And that certainly helps when appealing to authority.

Matt Brown: Certainly, because you learn how to build an argument which is not the same as being a scientist who is proving fact.

Ganjapreneur: No.

Matt Brown: It is rhetoric. And you can abuse rhetoric, or you can use rhetoric for incredible amounts of power.

Ganjapreneur: And at the same time what I found among many people speaking at hearings before me in tie-dye t-shirts with pot leaves is there is no sensitivity to audience, number one, and number two, there’s no sense of building a rational argument. And when it comes across-

Matt Brown: It’s burying the facts, with frustration because we know these facts are fucking true!

Ganjapreneur: And regardless of that, that’s not an effective way to commit- and then there’s also the vinegar-honey argument, like, calling someone a fucking asshole fascist is really not going to convince them to see your way…

Matt Brown: …however having someone who otherwise should be on your team screaming through the windows with a bullhorn saying that everything that’s going on is fucking fascist certainly helps me look far more moderate.

Ganjapreneur: Right!

Matt Brown: Which is what we had with Robert Chase, literally screaming through the windows on the big hearing at 4/20.

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Matt Brown via My 420 Tours: Quitting the Day Job to Become a Ganjapreneur

Matt Brown is the co-founder of My 420 Tours, based in Denver, CO. He was directly involved in the movement in Colorado that led to the passage of Amendment 64, which made the state one of the first places in the world to legalize and regulate the production, processing, retailing, and consumption of cannabis for recreational purposes.

Matt was recently interviewed by our friend Mitch Shenassa on the record, and over the course of several hours Matt revealed much never-before-publicized information about how Amendment 64 came to pass, along with a wealth of knowledge about his own history and how he got involved in the MMJ industry. This is only the first segment of what turned out to be an awesome interview: stay tuned for more in the near future! Listen using the media player below, or scroll down to read the transcription:

Matt Brown Interview, Part 1:


Click here for the next segment of the Matt Brown interview!


Transcript:

Ganjapreneur: So how did you get– I mean, what did you do before you came to cannabis?

Matt Brown: I was… Back in the day–

Ganjapreneur: I feel like you have some professional background beyond just growing pot.

Matt Brown: Yeah. My degree was in finance, and I started off at Bloomberg in New York.

Ganjapreneur: Okay.

Matt Brown: I did a few different things there, I had launched their Islamic Banking platform, I like invented it, which was awesome.

Ganjapreneur: So what did you have- what role did you have in that? Like what did you–

Matt Brown: I– There was nothing for Islamic-specific investors, which required al– I mean it was basically a sin industry filter, you can’t have anything too much interest.

Ganjapreneur: Ah.

Matt Brown: Not more than 10% of the company’s interest, obviously–

Ganjapreneur: It’s almost like an ethical investment fund, yeah?

Matt Brown: Yeah, it’s very similar to Catholic investments, and a lot of other, like, you know, socially responsible investment packages.

Ganjapreneur: And there are green investments, and yeah, it’s a socially responsible investment package.

Matt Brown: And so I was there at Bloomberg, and the Bloomberg terminal is, I mean it’s like Google with financial stuff from twenty years ago, still the most relevant pertinent, whatever.

Ganjapreneur: Yeah.

Matt Brown: Every piece of financial data about every equity, debt, you name it in the world. And I was on a team- I was doing all the university recruiting that year. I was supposed to be going to London to get energy and shipping analyst, where they like track every freighter ship in the world, which is awesome.

Ganjapreneur: Right. And they’re like, all this coal is going here, all this steel is going here, this much is gonna be there next month, so, and then you can start speculating commodities off that?

Matt Brown: Yep, you could arbitrage back the light sweep spread between North Atlantic crude and West Texas Intermediate with the number of days it’ll take to ship there, and to cross, and–

Ganjapreneur: I gotcha

Matt Brown: It was crazy shit. But it would have taken a visa, because I didn’t have my Canada citizenship at the time, they changed the law in 2009 and I got it.

So I was there in New York, the woman who was supposed to be transferring me to London waiting for the visa stuff asked me to transfer to university recruiting, so I did all of the class of 2005 Bloomberg University recruiting nation-wide.

Ganjapreneur: That’s pretty cool. So is that like traveling around, meeting prospectives? Or just sitting in the office and looking at applications?

Matt Brown: Both.  I mean I had- I think I averaged like 150 interviews a week.

Ganjapreneur: Wow. That’s twenty– Well, thirty a day if you’re not working weekends.

Matt Brown: We’d do these interview events, which helped with some of it, so we do a really– You basically come in and do like a three minute interview with four people–

Ganjapreneur: Right.

Matt Brown: You know, sort of group setting, everything’s open, you got a feel for what you wanted, bring in twenty or so callbacks. But I worked with the CEO, you know, nobody took over for Michael Bloomberg when he went to became mayor. And, ah…

Ganjapreneur: Nobody took over for him?

Matt Brown: Well Max Fen– Or, Lex Fenwik was the CEO’s name. When Mike Bloomberg left and became mayor, Lex took over as CEO.

Ganjapreneur: Okay.

Matt Brown: Nobody in the company there has an office. It’s like a trading floor environment for all–

Ganjapreneur: It’s just an open room type thing? That’s wild, that must be a huge room.

Matt Brown: Oh, it was. And we were on the same floors as the sales, and Bloomberg TV. So like I shared, I mean, kitchens, huge kitchens with like free food, all over any of the Bloomberg offices. Anyway. So like, there’s an afternoon CNN anchor now, who started out at Bloomberg TV – I actually trained her for a day in one of the departments. But you would just like hang out, and like Dave Chappelle came in because the Charlie Rose show was filmed there.

Ganjapreneur: Right, so then you’d just be in the office, and you’d just see everyone.

Matt Brown: Just come through, ’cause he was like, coming into do the Charlie Rose show. Which is awesome.

Ganjapreneur: It was totally open, so yeah.

Matt Brown: So I worked with and I sat facing the CEO. We were like 10 feet apart and there was nobody in between us. ‘Cause I worked with Laurie who reported directly to him, I just had this crazy direct reporting relationship. So I got the idea, I realized there was just a bunch of fund screeners and stuff we needed. I Photoshopped it all up, and I figured out like what the fund screeners would be to get the programmers. I pitched it at like six o’clock on a Tuesday night, or whatever, and…

Ganjapreneur: So you just walked up the CEO of the company from your mid-level position?

Matt Brown: I was friends– Oh, I was as low as it comes at this point. But I was friends with the- his assistant, her name was Sumi. So I talked to Sumi, I was like, can I get five minutes with Lex? I’ve got an idea I wanna pitch. It was pretty fun.

Ganjapreneur: Okay.

Matt Brown: And so I came up and pitched it–

Ganjapreneur: Was that not terrifying to do?

Matt Brown: No, not at all.

Ganjapreneur: Okay, you were ready, you knew it was a good idea?

Matt Brown: I love, yeah. Just something– I’m a debater. I like slipped into that debate zone of like game time and treated him like anybody else that I was telling my idea to. Three minutes in, he green lit it– I couldn’t get more than five minutes standing next to him just showing the stuff, he said it’s fucking brilliant – his exact words. The head of Asia Pacific called, sales called, this guy named Alex Bruce, and he was like, Alex, as soon as I hang up with you gotta call this kid Matt Brown back, he’s here in the  New York office. Like, they were a really connected office, he was based in Tokyo. Sure enough, ten minutes later he’s calling, the next morning I’m talking to head of London media sales. We had a prototype live in like two days, and that has sold over half a billion dollars’ worth of terminal revenue, just that feature, since–

Ganjapreneur: I can see that immediately. How long ago was it?

Matt Brown: 2005. Four or five.

Ganjapreneur: Almost ten years. About ten years.

Matt Brown: We sold a– These terminals cost – assuming you need more than one – sixteen hundred and fifty dollars a month on a two year minimum contract. Most banks would pick up like a hundred or more. So I kinda got my start there, it was a cool flat company item, I went to Accenture. ‘Cause I didn’t get transferred to London, I found out my boss was lying to me, and had never put in my visa application. So I went to Accenture, spent two and a half, three years there as a corporate strategy consultant. Cardinal Health was one of my big clients, they were the Fortune 19 company that supplied– You could literally pick up a phone and say, hi I’m building a hospital. They’ll go, oh great, we’ll send a person. And they will put an employee there and will deliver every single thing in there from the biggest x-ray machine to the q-tips.

Ganjapreneur: You just need a building, pretty much, and they’ll turn it into a hospital?

Matt Brown: Yeah. They supply everything to every type of medical provider in the world. I got to reorganize there. This is actually where a lot of my early dispensary consulting came from, was– I reorganized the sales team for independent pharmacy sales. I created a spreadsheet that took industry metrics– So these sales reps, who aren’t particularly business people, will go talk to mom and pop pharmacies, who are also not particularly business people, get a couple really simple metrics, and immediately tell that pharmacy how they compare to their peers, and it was a big way to start selling a lot of the automated systems and ordering through backend. But I got a really good feel for how these– You know, not Walgreens, but like real, small businesses work.

Ganjapreneur: And that’s I think, really, at that level, pretty analogous to at least the old school dispensary, if not the modern rec one.

Matt Brown: Yeah. I mean for the, you know, the 2009– So, I had that, I left Accenture to be—I had a tech startup. We failed to get our second round of funding in August 2008 and everything fell apart. And I did this small business consulting wherever I could to at least stay afloat for a year. And then—2009—

Ganjapreneur: Hey, where’d you go to school before all this, I didn’t ask before?

Matt Brown: Boston University.

Ganjapreneur: Boston U, okay.

Matt Brown: Magna cum Laude, school of finance class of 2004. So I was here- I’ve been a patient since 2007, I have Crohn’s disease.

Ganjapreneur: When did you move out here?

Matt Brown: August 2006.

Ganjapreneur: Okay, so shortly after you got out here, pretty much, you became a patient.

Matt Brown: Within the first year, and I didn’t know we had a medical marijuana law when I moved here.

Ganjapreneur: And back then there wasn’t much about it, no.

Matt Brown: No, it was, you know, when I got– It was Doctor Glazier, I don’t know if you know her. She was the only doctor in the state that was taking patients. I was– I’ve got my card actually, it’s out in the RV. My first one, card number like 5228, I think. Back when they used to be just sequentially ordered.

Ganjapreneur: Right, right, right.

Matt Brown: And I had a stack of paperwork this thick, and it was 250 bucks for the doctor visit. But  I got it, I started growing them for myself, for the first two years I grew by myself at home. I loved giving tours of my grow room to my friends and stuff who’d come out, and my roommates would have friends come visit. ‘Cause I had all the signs up, I had the law on the wall, and it really became the foundation for My420 tours, before I’d take them in the room, I’d point at it and I’d start chuckling, say, I have Crohn’s, you know that. I– Colorado’s a cool place, it’s a lot better than Massachusetts where most of them work from. They let me grow pot as long as I follow the rules. These are the rules, they’re pretty simple. It’s not really that bad when you think about it. And that everything you get to see in this room, I get to do legally, and I don’t have to worry that I might go to jail, and even more, if you try to steal from me, I can call the cops, and they will arrest you and give me my weed back. We’d all chuckle, and I’d take them in the room.

It was a tiny little room–one light.  I did breeding. I had like, eventually, half my basement for my own breeding stuff.

Ganjapreneur: And this was what, 2006? 2007?

Matt Brown: Seven? Eight? Nine? Spring 2009 I started doing a little bit of consulting, I just had a bunch of friends who were growing.

Ganjapreneur: So before that it was strictly, like, personal, you weren’t in the industry, per se, you were a grower?

Matt Brown: Yeah. I sold weed one time as a grower, and it was when I was all done and shutting down my room to like one of the Russian dispensaries, it was like February 2009.

Ganjapreneur: When you could still backpack it in?

Matt Brown: Yeah, exactly, and they’d buy whatever shit I’d come in with. But I grew for myself, I had like, eight different strains for myself.

Ganjapreneur: And your friends were growing? Out here?

Matt Brown: A lot of friends were growing. And they wanted me to tell them- teach them what the law was, how to get the card, who to talk to, just that basics. And then what they quickly realized was, they needed to be a business. And, I mean, I incorporated my first business when I was sixteen.

Ganjapreneur: Yeah.

Matt Brown: I helped my buddy when I was eighteen do a hostile takeover of his dad’s construction company and put all the equity in his name a year before his dad ended up dying, like I know business, it’s the geeky thing I do. And so there was a ton of these growers, who wanted somebody to teach them the basics. Even for a while I would book appointments at Warren’s office.

Ganjapreneur: That’s funny.

Matt Brown: Like I’d book a four hour block, and then just take client after client, and have them each take an hour, and they would pay, and I would just sit there and listen. That’s how we met. And then he moved in with me when I started consulting, and we shared an office.

Ganjapreneur: Who’s that? Oh, Warren Edson.

Matt Brown: Warren Edson, yeah.


This is only the first segment of our interview with Matt Brown! Click here for the next segment of the interview.  Questions for Matt? Get in touch via My 420 Tours or leave a comment below:

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States and Feds Show Signs of Wavering Marijuana Prohibition

With recreational use legalized in two different states, 2013 was a big year for marijuana enthusiasts.  2014 is gearing up to be even bigger and more monumental if social and political patterns are to be trusted.

The nation has watched Colorado and Washington very closely since the states began the great legalization experiment last year, and with recreational stores open in Colorado for one and a half months already, it’s clear that marijuana legalization is not, in fact, the end the world. The state of Colorado is benefiting both socially and economically, and other states are now considering hopping on with this legal reefer madness.  According to the NORML blog, almost 30 different states are currently considering marijuana law reform in one way or another.

The 14 states considering recreational legalization are: Arizona, Hawaii, Maryland, Massachusetts, Missouri, New Hampshire, New Jersey, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, Vermont, and Wisconsin. 12 states (and the District of Colombia) are considering decriminalization: Alabama, Arizona, DC, Hawaii, Illinois, Louisiana, Michigan, Missouri, New Hampshire, New York, North Carolina, South Carolina, and Wyoming. 11 states will vote on medical marijuana legislation: Florida, Kansas, Kentucky, Hawaii, Michigan, New York, Pennsylvania, Tennessee, West Virginia, Minnesota and Wisconsin. And 3 states will be considering industrial hemp: Indiana, New York, and Tennessee.

And state legislators are not the only ones pushing for change, as demonstrated in an open letter sent to President Obama from 18 members of Congress this Wednesday. The congressmen call for a minimum action of reclassifying marijuana at the federal level, if not declassification entirely, stating that “Classifying marijuana as Schedule I at the federal level perpetuates an unjust and irrational system. Schedule I recognizes no medical use, disregarding both medical evidence and the laws of nearly half of the states that have legalized medical marijuana.”  The letter’s lead author, Oregon State Representative Earl Blumenauer, believes that they have identified a “step the administration can take to start to rationalize federal marijuana policy to bring it in line with the advances that are happening in the states.”  This bi-partisan letter is just another piece of what’s beginning to resemble a frenzied legalization stampede.

In many ways, 2014 is shaping up to be a potential landslide victory for marijuana reform. Enthusiasts believe this victory could also make for advances in economic growth and social justice. With cannabis still considered a schedule 1 controlled substance by the federal government, however, the entire industry continues to operate in a state of legal limbo.

 

Sources:

http://blog.norml.org/2014/02/12/28-states-are-considering-marijuana-law-reform-is-your-state-one-of-them/#sthash.WLcer6NM.dpuf

http://www.thedailychronic.net/2014/27560/congress-calls-president-obama-use-authority-reclassify-marijuana/

http://blumenauer.house.gov/images/stories/2014/02-12-14%20Blumenauer%20Rescheduling%20Letter.pdf

Photo Credit: R. Ayana

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