California flag

California Cannabis Sales Back On Track With 3rd Quarter Growth

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According to state reporting, adult-use sales in California grew significantly in the third quarter, totaling $350 million, according to The Motley Fool.

Matt Karnes of GreenWave Advisors said the numbers represent a 24 percent increase over the previous quarter. This is good news for California, as the state has struggled to meet sales expectations since cannabis became legal in January 2018. Many towns have outright banned adult-use dispensaries, resulting in lower-than-expected sales as many people have remained with their illicit sources due to a lack of retail locations.

The state increased the number of dispensary licenses by 10 percent in the third quarter which, combined with increased dispensary sales, accounts for the 24 percent increase. From the $350 million in adult-use sales in Q3, California collected $52 million in taxes, surpassing last quarter’s $42 million and blowing the first quarter’s $34 million out of the water.

Several large, publicly-traded cannabis companies are expected to see the benefits of California’s improved sales rates. Both KushCo Holdings and MedMen Enterprises, two over-the-counter cannabis stocks, do a majority of their business in the California market.

California’s adult-use market is quickly catching up in revenue to its medical cannabis market, which completed $3 billion in sales last year. California’s medical market alone is almost twice as large as Colorado’s medical and adult-use markets, combined.

As more dispensaries open and supply chain issues are solved, California‘s growth should not slow any time soon.

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Canadian Flag

One-Third of Canadian Cannabis Consumers Still Use Illicit Market

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An Ipsos poll surveyed Canadians who have bought cannabis since October 17 and found that 35 percent used their pre-legalization sources, Global News reports.

One of Canada’s biggest reasons for legalizing was to combat the illicit market. Vancouver and other places in Canada have struggled to shrink their illicit markets, largely because the Canadian government takes a more reasonable approach and refuses to rely on “guns and head-bashing.”

The poll, which surveyed 2,402 Canadians and was statistically adjusted to reflect the demographics of Canada, was structured to figure out where Canadians are currently getting their cannabis. The exact results, accurate to within 2.3 percent, were:

  • 28 percent used government websites
  • 28 percent used government stores
  • 22 percent visited licensed private stores
  • 16 percent shopped at a licensed private website
  • 35 percent stuck with their previous non-government dealers

It’s still too early to tell exactly what the poll data means, but supply shortages, pricing complaints, and uncertainty over changing regulations have kept the new legal market on rocky footing — but those issues are expected to be resolved with time.

Allan Rewak, the Cannabis Council of Canada’s executive director, said that legalization a process, not an act.

“We are competing against very well established, very robust and very wealthy illicit market places serving Canadians for almost a hundred years.” — Allan Rewak, Executive Director of the Cannabis Council of Canada, in a statement

Rewak, who expects the number of consumers accessing the legal market to climb, said he was heartened by the survey results. Others are not so sure and argue that it’s more than just growing pains.

Some experts indicate the current price is too high while others point out that, until edibles are made legal, some people can’t get the product they need from legal sources, anyway. Other consumers are stymied by the requirement of some provinces of having a permanent address and credit card.

The only thing that’s clear is that the entire world is watching Canada as it both discovers and attempts to solve problems associated with legalizing cannabis in an industrialized nation.

End


Elon Musk Weed-Smoking Video Prompts NASA Investigation

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NASA has announced an investigation into the culture of SpaceX after a video of Elon Musk smoking a blunt with Joe Rogan went viral, The Washington Post reports.

Three officials with knowledge of the issue told The Washington Post the incident was related to Musk’s appearance on Rogan’s podcast, which was live-streamed on YouTube and featured the business mogul take one hit off a blunt and have several sips of whiskey.

“If I see something that’s inappropriate, the key concern to me is what is the culture that led to that inappropriateness and is NASA involved in that. As an agency we’re not just leading ourselves, but our contractors, as well. We need to show the American public that when we put an astronaut on a rocket, they’ll be safe.” — NASA Administrator Jim Bridenstine, in a statement

The review will begin next year and will investigate SpaceX and Boeing, both companies that NASA relies on to fly their astronauts.

NASA will examine “everything and anything that could impact safety,” said William Gerstenmaier, NASA’s associate administrator for human exploration.

SpaceX — which was founded by Elon Musk with the goal of reducing space travel costs and enabling the human colonization of Mars — released a statement saying it, “actively promotes workplace safety, and we are confident that our comprehensive drug-free workforce and workplace programs exceed all applicable contractual requirements.”

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Dean Ween Pitches Canna-Friendly Denver Music Venue

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Guitarist and songwriter Dean Ween, best known as guitar player for the alt-rock band Ween, wants to open a cannabis-friendly music venue in Denver, The Denver Post reports.

The venue would be named Dean Ween’s Honeypot Lounge and, according to chief operating officer Michael Polansky, organizers hope to have the venue licensed and open for business by April 20, 2019.

“I think cannabis and music make total, total sense together. … We think that we can offer a unique kind of musical experience for Denver and the world.” — Michael Polansky, via The Denver Post

Polansky said the business would serve as a social use venue and would offer daytime education and wellness programs. Organizers have not yet announced an intended location for the venue but said they plan to apply for the license within the next few weeks.

Dean Ween, whose legal name is Michael Melchiondo Jr., confirmed his involvement to The Denver Post.

Denver is one of the only U.S. cities that has laws allowing for social cannabis use venues but, so far, only one business has successfully completed the process. The rules for such licenses are stringent: businesses must secure the approval of their surrounding neighborhood before opening, and Colorado state law prevents any cannabis venue from serving alcohol. State law also prevents social-use venues from allowing people to smoke indoors — venue attendees would likely have to get high via edibles or by vaping.

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FDA Chief: Federal Cannabis Action Is An ‘Inevitability’

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U.S. Food and Drugs Administration (FDA) Commissioner Scott Gottlieb said in a CNBC interview on Friday that a federal cannabis “policy reckoning” is “an inevitability.”

First noted by Marijuana Moment, the statement made up just part of a larger interview but, for cannabis professionals, it’s an optimistic signal of validation for the industry, which exists despite the constant risk of a federal crackdown.

“I think there’s probably going to be a policy reckoning around this at some point in the future. Obviously, it’s happening at the state level and I think it’s an inevitability that it’s going to happen at the federal level at some point soon.” — FDA Commissioner Scott Gottlieb, in a televised CNBC interview

The statement was made in response to inquiries from CNBC’s ‘Squawk Box’ co-anchor Joe Kernen, who asked if the country would be “OK” if cannabis becomes as readily available as alcohol.

Gottlieb did not elaborate further on his sentiment, though the FDA commissioner smiled at first when the cannabis question was broached, acknowledging that his staff had predicted the line of questioning.

Earlier this year, the FDA approved the nation’s first cannabis plant-based medication: Epidiolex, a drug for children with rare and severe cases of epilepsy. While investigating Epidiolex, the FDA also determined that CBD should be descheduled entirely.

With Democrats having secured the House during the midterm elections, federal cannabis reforms could become a key issue on the docket for the 2019 legislative session.

End


Massachusetts

Massachusetts Adult-Use Sales Launch Today

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The first two adult-use retail outlets are finally open in Massachusetts, more than two years after voters decided to legalize cannabis in the state, Fortune reports.

Two stores open today: Cultivate, in Leicester; and New England Treatment Access (NETA), in Northampton. They’re the first commercial cannabis retail outlets open to the general public on the East Coast. Customers need cash — though they can reportedly use a debit card at NETA — and ID showing that they’re over 21. Massachusetts law allows for purchase of up to one ounce of flower.

The cannabis licensing and approval process in Massachusetts has been fraught with delays. The state has been slow and careful in approving businesses for each stage of the supply and testing chain. Hopefully, today will signal a flood of new license approvals and “commence operations” notices from the state government for the remaining applicants.

Both retail outlets selected symbolic first customers. At Cultivate, the first customer was disabled Iraq War veteran Stephen Mandile and at NETA it was Northampton’s Mayor David Narkewicz, also a veteran.

“I’m proud to go to new businesses that create new tax revenue for the city and be there for their opening. I’m not going to act any differently because the new business happens to be adult-use marijuana.” — Mayor David Narkewicz, to the Boston Globe

There is a slight complication, however, as Massachusetts is in the middle of a snowstorm. Crowds are expected nonetheless. At Cultivate, CEO Sam Barber said they will have heated tents, music, and food despite the snow. Police details will also be on hand to help monitor the crowd during the snowstorm and to dissuade any potential impaired driving.

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Bee

Industrial Hemp Could Help Save the Bees

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A researcher investigating industrial hemp fields in Colorado has discovered that the plant is extremely popular with many different bee species, according to Science News.

Though hemp flowers don’t produce nectar, they do produce large quantities of pollen which bees use for food. Bees are also known to use pollen to feed their larval young. More importantly, hemp plants flower later than many other plants, providing a valuable late-season food source for bee populations that have struggled in recent years.

Colton O’Brien was the etymology student who conducted the survey, which revealed that bees from 23 out of the 66 genera known to inhabit Colorado were found in the two hemp fields. “You walk through fields and you hear buzzing everywhere,” said O’Brien, who spent an entire month surveying two different hemp plots in Colorado.

The 2014 Farm Bill allowed states to develop industrial hemp pilot programs, but the addition of industrial hemp’s legalization to the pending 2018 Farm Bill makes it clear that hemp farming is on the rise. For bees, the only real danger will be what happens as hemp scales up to be a major industrial crop — agricultural pests drive many large farming operations to use pesticides, which is a major contributor to the current decline in bee populations.

Further study is needed to determine exactly how nourishing hemp pollen is for the bees but, as a late-season food source for already-stressed bees, any help is valuable.

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Cova Raises $8 Million in Initial Funding Round with Golden Opportunities Fund

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Denver, CO – November 19, 2018 — Cova, the company behind the cannabis industry’s most robust point-of-sale (POS) solution, has raised $8 million in an initial fundraising round with Golden Opportunities Fund (“Golden”), managed by Westcap Mgt. Ltd. (“Westcap”).

Founded in 2016, Cova has designed and built purpose-driven POS and retail management solutions that power a complete end-to-end customer experience for cannabis retailers.

“All of Cova is excited about the opportunity to accelerate our growth with this investment from Golden Opportunities Fund, who have been great to work with,” says Gary Cohen, CEO of Cova. “We’ll leverage these funds to continue building the industry’s leading cannabis retail software platform while selectively expanding our North American footprint.”

The new funding will be used to accelerate further product development and enhancements to build upon Cova’s current industry-leading capabilities ranging from pioneering offline transaction handling, express self-service checkout, looping prevention, dashboard-based reporting and analytics, 99.98% uptime, and more.

“Cova exemplifies the type of investment that we target in a company with a proven track record of success, significant business opportunities in an emerging market and a highly experienced management team that we have a strong history with,” comments Grant Kook, President and CEO of Golden. “This investment also complements the strategic positioning of Golden’s portfolio to focus on innovation.”

Discover Cova’s full product suite by visiting www.covasoftware.com.

About Cova
Cova is the leading POS solution in the cannabis industry. The Cova team’s relentless pursuit of creating the industry’s first lovable POS has led to solutions that help retailers simplify compliance, reduce operational costs, and increase revenue through automated compliance, inventory management, mobile reporting dashboards, and Cova’s Express Checkout app. With a growing network of cannabis industry partners including Baker, I Heart Jane, greenRush, springbig, Bud Bytes, and Budvue, Cova’s seamless tech ecosystem gives retailers access to the best tools available to run their business. Cova’s offices are located in Denver, CO, Vancouver, BC, and Regina, SK.

Learn more at www.covasoftware.com.

About Golden Opportunities Fund Inc.
Golden is the first and longest-standing Provincial Retail Venture Capital Fund in Saskatchewan founded 20 years ago.  The Fund is managed by Westcap, a leading private equity and venture capital fund manager for over 25 years that has completed over $1 billion in transactions in more than 200 growth companies.  

Learn more at GoldenOpportunities.ca or WestcapMgt.ca.

For further information, please contact:
Faai Steuer
Director of Marketing | Cova
Phone: 888.888.8170 ext 1808 
Email: Faai@covasoftware.com

End


Buying Cannabis

Except in California, Falling Cannabis Prices Mean Falling Tax Revenue

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Legal cannabis prices continue to fall and the states that base their taxes on price are seeing similar drops in tax revenue despite rising sales, The Washington Post reports.

Only states that tax cannabis by weight, like California and now Maine, are seeing benefits from increased sales.

Across the board, states with legalization have seen cannabis prices fall. In Oregon, the price per pound can go as low as $100. In Colorado, the cannabis tax rate was increased last year from 10 percent to 15 percent — any additional revenue that might have been generated, however, was eliminated by falling prices.

Though most economists predicted the price would drop, many were far from the mark when guessing the bottom. Economist Jeffrey Miron, who was in favor of legalization, predicted that the price of cannabis wouldn’t fall more than 50 percent once cannabis was legalized, but that milestone has come and gone.

Jonathan Caulkins, a drug policy analyst, may have made the best prediction. He said that cannabis would behave like many other agricultural products and that the price would fall to a level comparable to wheat. If the price continues to decline as more states legalize, existing tax structures based on a percentage of price might not even be able to fund the regulatory body that oversees the market, much less fund things like education.

The simplest way regulators could solve this problem is to switch to a system similar to California’s: tax the plant by weight. The obvious downside to that strategy is that it incentivizes cannabis producers to make their product more potent, a problem lawmakers could potentially solve by establishing potency limits.

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Commercial Cannabis Operation

Michigan Communities Begin Banning Cannabis Production After Legalization

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Many Michigan communities are opting out of allowing cannabis facilities after this month’s legalization vote, according to The Detroit News.

Michigan towns like Monroe and Portage as well as Detroit-area communities like Pinckney and Troy have told their residents they will opt out of allowing commercial cannabis production there. Monroe has already passed an ordinance forbidding the industry — the day before the vote, in fact.

Plenty more are expected to follow — notably, when Colorado legalized in 2014, 75 percent of communities opted out of allowing commercial production.

Some have debated how long the Michigan communities have to opt out and what recourse voters may have to organize a response to a local government’s decision. Michigan’s adult-use cannabis law indicates, for instance, voters can collect signatures to get the matter on the ballot of the “next regular election.” Differing opinions about when exactly the “next regular election,” however, began almost immediately to crop up.

“There’s definitely been a lot of questions and some of the answer is ‘Well, we think this is what it meant, but until it’s litigated, we won’t know for sure.’” —Jennifer Rigertink of the Michigan Municipal League, via The Detroit News

Josh Hovey, spokesperson for the Coalition to Regulate Marijuana like Alcohol, said any communities that wish to opt out should do so before the state begins issuing licenses, expected within the next year.

While the law allows communities to completely opt out, it also allows them to permit commercial operations with restrictions, as long as they don’t conflict with state law and aren’t “unreasonably impractical.” With that in mind, some officials from towns that are moving to opt-out indicate they may opt back in at a future time when Michigan’s legal market is more established.

Michigan is asking communities that opt out to inform the state’s cannabis licensing body so that application processing is not slowed.

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Ontario Cannabis Retailers Race to Satisfy Security, Insurance Requirements

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Hopeful future cannabis retailers of Ontario are racing to make sure they have the necessary security and insurance protections for operating a cannabis retailer in the province, The Growth Op reports.

The process is made more complicated, however, because many of the retailers’ requirements are not yet fully laid out. Thomas Gerstenecker — CEO of 3|Sixty Secure based out of Almonte, Ontario — said in the report that hopeful operators “should be setting up their security protocols now,” though the province’s retail security requirements are still “in a state of flux, although we don’t believe they will be as stringent as they were for the licensed producers.”

“Security considerations will likely be a component of the application process. … We don’t know how specific the requirements will be … [but in] any event, it would be prudent to partner with someone expert in security practices.” —  Harrison Jordan, a Toronto-based cannabis lawyer, via The Growth Op

Insurers, meanwhile, are still trying to assess the new industry’s risks and many providers will be stuck guessing at appropriate insurance coverage rates — at least until several claims have been made and the industry average becomes more apparent.

Ontario cannabis retailers are slated to open as early as April 1, 2019.

End


California

California Proposed Rule Changes Would End Cannabis White Labeling

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California’s newest set of proposed cannabis business regulations contain several controversial changes, including a potential end to cannabis white-labeling, Marijuana Business Daily reports.

The new rules, of which drafts have been released, have not been finalized. The public comment period, however, has ended and regulators must now decide on the final rules.

In the newest draft rules, there is broad language that forbids licensed cannabis companies from doing business with any unlicensed company. This would include, for instance, celebrity brands or previously licensed cannabis businesses that are in flux.

Pamela Epstein, founder and CEO of Green Wise Consulting, said it is an end to white-labeling, also known as contract manufacturing or co-packaging.

Previously, established brands without cannabis licenses but with a pro-cannabis customer base would contract with licensed producers to have them make products on their behalf. Also, long-established cannabis businesses in the process of moving operations could temporarily contract another licensed producer to continue manufacturing their products.

The proposed changes would also lower the amount of cannabis products that delivery drivers are allowed to carry from $10,000 worth to just $5,000. The draft regulations also require that $2,000 of that $5,000 must already be ordered before a driver can leave a delivery hub. Previously, a driver would have needed just one order. The change would reduce delivery services’ efficiency and speed, as they would be required to return to a central hub more often to collect product instead of being able to dynamically adjust while on the road.

The definition of ownership in a cannabis company would also become more broad. Under the new definition, any employee or company executive that has say over what that company should cultivate, manufacture, or sell will be considered an “owner.” This will require more financial disclosures to the state, which some say will slow down the entire regulatory process.

The period for public comment officially ended Nov 5 for the proposed rules. However, California regulators have yet to finalize the current draft. It is unknown if they will make any further changes.

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Ohio Court: Cannabis Licensing Racial Quota Is Unconstitutional

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An Ohio court has ruled that the state’s “racial quota” for medical cannabis business licenses is unconstitutional, according to The Cincinnati Enquirer.

Ohio law requires that 15 percent of medical cannabis cultivation licenses be awarded to businesses owned by a racial minority — a provision included to help address damage done by prohibition to minority communities.

Two of the state’s 12 cultivation licenses were awarded to minority-owned companies, but businesses who were passed over despite receiving higher scores on their application felt slighted and filed suit against the provision in December.

The company who first filed suit, PharmaCann Ohio LLC, was eventually awarded a 13th cultivation license after a scoring error was discovered. The suit was then picked up by Greenleaf Gardens LLC, another applicant who was passed over due to the racial quota provision.

Franklin County Common Pleas Judge Charles A. Schneider sided with the plaintiffs in an opinion written on Thursday.

“The court finds the 15 percent set aside is not insignificant and the burden to be excessive for a newly created industry with limited participants.” — Judge Charles A. Schneider, in his written judgment, via The Cincinnati Enquirer

Ohio’s Department of Commerce spokesperson Kerry Francis told The Enquirer that the department hasn’t decided whether it would appeal the judge’s ruling or just issue additional licenses.

Ohio’s medical cannabis program was expected to launch in September but has experienced numerous delays. Products are expected to finally hit dispensary shelves within the next month.

End


Toronto Stock Exchange

Acreage Holdings Begins Trading in Canada

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The U.S. cannabis holding company Acreage Holdings has completed a reverse-takeover and begun trading on the Canadian Securities Exchange (CSE), according to Bloomberg.

Acreage Holdings joins many other U.S. cannabis companies trading in Canada. Though some companies have been able to list on the NYSE, complicated money-laundering laws and U.S. cannabis prohibition have pushed the majority of large cannabis companies operating in states with legal cannabis to Canada for fundraising and public trading.

Acreage Holdings raised $314 million privately to complete the reverse takeover of Applied Inventions Management Corp. The company currently has a valuation of $2.8 billion. This valuation is based on uncertain fundamentals, however, as the company opted not to release internal financials during the reverse-takeover.

Acreage has maintained a high profile by appointing well-known conservative politicians to advisory positions. Former Republican Speaker of the House John Boehner endorsed the company and accepted an adviser position last spring; Boehner started selling cannabis stock tips last month.

The company’s Board of Directors also includes conservative former Canadian prime minister Brian Mulroney, who accepted the position last month.

Acreage Holdings trades under the stock ticker ACRG.U on the CSE.

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IRS Struggles With Cannabis Cash Payments, Hires Help

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The Internal Revenue Service (IRS) paid a consulting company $1.7 million for help processing the large cash tax payments coming from legal cannabis businesses, Quartz reports.

The cannabis industry continues to struggle with a lack of banking services. And now, with ten states having legalized adult-use cannabis and 32 with some kind of medical cannabis allowances, even the IRS is struggling to handle the industry’s cash flow. Cannabis companies paid $4.7 billion in tax payments last year alone, mostly in cash.

Notably, the IRS has not only done little to help — but it was also charging cannabis companies an extra 10 percent on their taxes for paying in cash until a successful lawsuit forced a change in 2015.

The current system is inefficient. Cannabis companies are required to schedule an appointment with a local IRS office, tote their stacks of cash down, and have them counted in a secure space while at least two IRS employees watch the entire process. This is, of course, after having paid all employees and other debts in cash as well.

The IRS hired The Mitre Corporation to help with the cash problem. A government spending report shows that the IRS has paid $1.7 million to the company for help with “large cash payments for processing cannabis federal taxes.” Denver accountant Jordan Cornelius speculates the payment is for streamlining the current process of accepting cash payments and not for physical accounting services.

Cornelius said that, while many in the cannabis industry expecting banking services to be “right around the corner,” the IRS contract casts doubt on that. Though he also wondered whether it was wise to be paying millions to a consulting company as a band-aid instead of spending that money on creating banking services for the cannabis industry.

Others, like Henry Wykowski who represents California dispensaries, agree that the cash system is irrational.

“The stupidest thing these guys could do is keep cannabis out of banking. If anything, they should be wanting to monitor the cannabis industry instead of forcing it to become further entrenched in the underground where it’s been, and that makes it much more difficult to regulate and control.” — Henry Wykowski, a cannabis industry attorney, via Quartz

The recent Democrat takeover of the House of Representatives and the removal of cannabis opponents like Pete and Jeff Sessions do cast a hopeful light on potential near-term solutions for the cannabis industry’s banking woes, even if the IRS is not optimistic.

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DEA Scolded for Cannabis Eradication Program Inadequacies

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Federal watchdogs at the U.S. Government Accountability Office (GAO) issued a report this week outlining how the Drug Enforcement Administration (DEA) has mismanaged the distribution of federal funds to local law enforcement meant for aiding the eradication of illegal cannabis grows.

First noted by Marijuana Moment, the report investigates the about $17 million given annually to DEA to help with local eradication efforts. Specifically, GAO found that DEA does not consistently track where the cannabis eradication funding actually goes — meaning any mismanagement would be easily missed.

“DEA oversees participating agencies’ compliance with program expenditure requirements in various ways, but does not consistently collect supporting documentation for expenditure reports. … DEA officials said they are now working to address this issue, but they have not developed a plan with specific actions and time frames for completion. By developing and implementing such a plan, DEA could have greater assurance that funds are being expended appropriately.” — Excerpt from GAO report

GAO’s four-part recommendation: “…that DEA develop a plan to ensure the collection of consistent documentation of expenditures, clarify its guidance for reporting program activities, document all of its program goals, and develop performance measures.”

The DEA previewed GAO’s report in October and officials said the agency agrees with all of GAO’s recommendations.

End


GreenCart Solutions Offers Insured Cash Transport Services for Cannabis Companies

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GreenCart Solutions this month launched a new cannabis asset transportation service that includes comprehensive professional security while simultaneously offering insurance and covering liability throughout the transportation process.

Security — and in particular secure transport — has become an integral part of the cannabis industry as entrepreneurs move wholesale cannabis shipments, packaged products, cash tax payments, and even employee payrolls around their state. GreenCart Solutions takes a new approach to cannabis transportation services by offering insurance with up to $2,000,000 in liability coverage for each ride.

“With the large separation between money security and cannabis companies, it was clear to my partners and I there was a significant gap in the market,” said Ben Allen, CEO of GreenCart Solutions. “We saw an opportunity to make a difference.”

GreenCart services also include constant GPS tracking and camera coverage — including cameras installed inside of each vehicle and its custom-fit mobile vault — so ease-of-mind is guaranteed. Each vault is also designed for the maximum potential storage space, which results in 487.3 square feet of vault storage inside each of GreenCart’s discreetly armored vans, heightening the efficiency of every delivery.

“Building trust with clients is our number one priority at GreenCart. We truly believe we do that with all of the detail and effort that is put into every single ride. BJ Grill, our Chief of Operations, is an absolute wizard when it comes to creating the perfect routes and understanding what we need to ease our clients’ minds,” Allen said.

With federal lawmakers moving sluggishly at best on federal cannabis reforms — particularly in regards to the ongoing banking issue — GreenCart Solutions has customized its business model to provide ease-of-mind for the entrepreneurs who must face the many risks of working in the cannabis industry.

To learn more about GreenCart Solutions and their services, visit GreenCartSolutions.com or contact BJ Grill, the company’s Chief of Operations, at bj@greencartsolutions.com.

 

End


Mormon Church

Cannabis Advocates Threaten Lawsuit in Utah for Church Meddling

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The Utah cannabis advocacy group Together for Responsible Use and Cannabis Education (TRUCE) is threatening to sue lawmakers and the Mormon Church if Utah’s recently-passed medical cannabis initiative is not implemented as written, according to FOX 13 Salt Lake City.

Utah voters overwhelmingly approved Proposition 2, the ballot initiative that legalized medical cannabis, in this month’s general election.

Before ballots were cast, however, the initiative’s primary sponsors, the Utah Patient’s Coalition and the Libertas Institute, entered talks with the Church of Jesus Christ of the Latter-Day Saints and Utah lawmakers about a compromise bill to ensure medical cannabis would be legalized no matter the election’s outcome.The compromise bill would reportedly remove or change some of the initiative’s language to better satisfy lawmakers and the Mormon Church.

TRUCE, however, took issue with the power that the LDS Church has over the matter. The organization’s attorney served everyone involved a “preservation letter” indicating they should keep records in case of a future lawsuit.

“We are investigating a legal challenge to (1) the calling of a special session of the Utah Legislature at the behest of The Church of Jesus Christ; (2) any effort, in collusion with or at the behest of The Church of Jesus Christ, to materially alter the initiative statute supported by a majority of voters who passed Proposition 2 in the recent election; and (3) the long-term pattern of domination of the Utah Legislature and the interference in the functions of Utah government by The Church of Jesus Christ.” — Excerpt from the preservation letter

TRUCE said they’re deciding if it would be feasible to file suit should lawmakers replace voter-approved Prop. 2 with the compromise bill. TRUCE demands that Prop. 2 be implemented as originally written.

The President of the Libertas Institute, Connor Boyack, defended the compromise bill. He said 90 percent of Prop. 2’s original provisions would remain in the bill and claimed the compromise prevented lawmakers from otherwise gutting the voter initiative.

The Utah legislature is expected to enter into a special session on December 3 to address the medical cannabis initiative and possibly pass the compromise bill.

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Lawmakers Propose Three Bills Addressing Veterans and Medical Cannabis

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Just days after Veterans Day, a bipartisan group of lawmakers announced three new bills aimed at studying and reforming the Department of Veterans Affairs’ medical cannabis policies, NORML reports.

Rep. Seth Moulton, a Massachusetts Democrat, announced today he was partnering with Florida Rep. Matt Gaetz (R) to propose the legislation package, which includes the following measures:

  • The Department of Veterans Affairs Policy for Medicinal Cannabis Use Act of 2018, which seeks to clarify and codify how veteran patients and their healthcare providers can discuss potential cannabis use. The bill would further protect veterans from losing VA coverage or experiencing other repercussions for being open and honest about their medical cannabis use.
  • The Department of Veterans Affairs Survey of Medicinal Cannabis Use Act of 2018, which would result in a nationwide survey of U.S. veterans and VA healthcare providers to better understand the effects and usefulness of medical cannabis.
  • The Department of Veterans Affairs Medicinal Cannabis Education Act of 2018, which would establish partnerships between the VA and medical universities on programs covering medical cannabis. These partnerships would be designed to someday result in continuing education programs for healthcare providers.

“Our veterans are seeking alternative options to opioids and we should be supporting their desires not to be addicted to painkillers. Let’s not kid ourselves, people are using marijuana — including our veterans. We have an obligation to regulate it and make it as safe as possible. … These bills are an important first step towards finding out what can be most successful as treatment options evolve and change.” — Rep. Seth Moulton (D-MA), in a press release

Current laws make medical cannabis access complicated for veterans because VA doctors, due to the ongoing federal prohibition of marijuana, are unable to write recommendations for state-legal cannabis programs.

“While commendable advances if passed, [Moulton’s] bills fail to include the fix needed most swiftly of VA policy, which would be to allow VA doctors to fill out the necessary state-legal medical marijuana recommendation form in the 33 states that now have laws governing the therapeutic use of cannabis,” NORML Executive Director Justin Strekal wrote in the report.

End


Jim Mcgovern

Pete Sessions’ Replacement Won’t Block Cannabis Reform

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Next year’s House Rules Committee Chairman Jim McGovern, the replacement for cannabis opponent Pete Sessions, has promised to allow open debate of cannabis reform on the floor of the House, the Boston Globe reports.

Pete Sessions was a longtime opponent to cannabis reform and he personally blocked dozens of amendments and bills, including purely medical ones designed to fight the opioid crisis. Sessions, however, lost his seat in the midterms to former NFL player Colin Allred and the Democratic Party took control of the House of Representatives, appointing Rep. Jim McGovern (D-Massachusetts) to replace Sessions. He’ll preside over the House Rules Committee in the next session of Congress.

McGovern has promised to stop using the Rules Committee as a way to control Congressional debate.

“I don’t want to be known as the chairman of the Rules Committee who presided over the most closed Congress in history — that’s what we have right now. I want to be more accommodating and basically empower rank-and-file members. I don’t like this idea where it’s ‘my way or the highway.’ We need a more deliberative process.” — Rep. Jim McGovern, to the Boston Globe

McGovern also said, “Unlike my predecessor, I’m not going to block amendments for marijuana. Citizens are passing ballot initiatives, legislatures are passing laws, and we need to respect that. Federal laws and statutes are way behind.”

Whether or not federal legalization is pushed in the next session, there is strong evidence and support backing medical reforms. Removing cannabis from Schedule I is a no-brainer. As shown by a variety of recent polls, nearly all Americans believe that cannabis should be allowed for medical uses and more than two-thirds think it should be made completely legal for adults.

McGovern also mentioned making several other changes which appear to have bipartisan support: solving cannabis businesses’ banking woes, allowing the VA to prescribe medical cannabis for veterans, and establishing explicit federal allowances for the states’ rights approach to cannabis reform.

“This just seems like common-sense stuff,” said McGovern.

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Cannabis

Study Explores Why Fewer Women Support Cannabis Reform

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Researchers have studied Pew Research Center cannabis survey data in an effort to understand why women are less likely than men to support cannabis reforms, Marijuana Moment reports.

The study, published in the Social Science Quarterly journal, found some possible explanations. It is unusual that women, who are largely more liberal than men, are on the conservative side of the cannabis issue. Pew Research Center data, weighted for a variety of phrasings of that question, showed that 67% of men support cannabis legalization while only 61% of women do.

It was immediately clear that parenthood was not the cause. “Being a parent is not a predictor of attitudes on the marijuana support scale,” researchers wrote. “Indicating that being a parent does not account for any of the gender gap.”

Instead, researchers found there were two clear predictors: religion and previous cannabis experience.

Women, according to the national survey data, were more likely to identify as born-again Christians and reported attending church services more often than men. Said researchers, “Greater religiosity substantially explains the gender gap in marijuana policy.”

The strongest factor, however, was familiarity with cannabis overall. Only 42 percent of women reporting had ever tried cannabis, compared to 55 percent of men. The same percentages were seen when survey participants were asked if they felt comfortable around the plant.

Researchers believe that, due to their findings, it seems the current gender gap in support for cannabis reform is temporary.

“Though it is challenging to accurately predict the future contours of the gender gap in marijuana, we do think our findings here are instructive. As marijuana use becomes more common and seen as less risky or deviant behavior, and as marijuana use is framed less as a moral issue (which will presumably be the case as it grows more common and legalized), there is reason to expect the gender gap to shrink,” the researchers wrote.

The study authors were clear that more study is needed to reinforce their own findings as well as understand the finer points of the issue.

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Lucid Green Launches Industry’s First “Direct to Consumer” Education and Loyalty Platform for Cannabis

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Founded by Data Veterans, Lucid Green Announces the Successful Closure of its Seed Round of Funding to Deliver a Platform that Sets the Standard in Driving Trust and Transparency in the Cannabis Industry.

NEW YORK, Nov. 8, 2018 — Lucid Green Inc., a technology platform, is solving the cannabis industry’s direct-to-consumer issues by delivering a data platform that connects consumers and budtenders to brands. Lucid Green’s seed funding round of slightly more than $1 million dollars was oversubscribed and has been closed. The monies will be used to develop a platform that enables a highly relevant digital experience by seamlessly interacting with physical products.

“Leveraging IoT, blockchain and token technologies, Lucid Green’s innovative platform creates an information, education and rewards ecosystem that drives transparency across the cannabis industry,” stated Co-Founder & CEO Larry Levy.

“We’re creating a standard that addresses a huge need in the cannabis industry – solving how brands connect directly with consumers and budtenders alike, to deliver a better consumer experience,” continued Paul Botto, Co-Founder and President.

Lucid Green’s seed round was funded by a group of technology and cannabis veterans that include XDL Ventures and Phyto Partners.

Lucid Green has launched in Colorado and Washington State, through partnership with the industry leading product brands incredibles, 14’er and Ionic. “incredibles’ top-of-the-line products truly offer a premium option for consumers because we control every aspect of production. We’re excited to partner with Lucid Green to deliver transparency of our production practices to customers through the platform,” said Co-Founder & CEO Rick Scarpello. “We know Lucid Green will be sought out by consumers who demand the best and want to be rewarded for seeking our product quality and education.”

14er’s Founder and CEO Evan Anderson said, “Lucid Green’s platform provides a glimpse into the future of consumer engagement in cannabis.”

About Lucid Green
Lucid Green was founded in early 2018 by data veterans, Paul Botto and Larry Levy to create a standard that drives trust, transparency and guidance in the cannabis retail environment. Lucid Green is a revolutionary data platform that gives brands a direct-to-consumer/bud-tender communication channel while incentivizing brands and their suppliers to provide accurate and timely product information. Lucid Green’s complete transparency gives consumers full disclosure into all aspects of the product’s quality and authenticity, testing results, professional and peer reviews, along with usage recommendations and dosage tracking; all in one place.

Visit lucidgreen.io for more information.

Media Contacts:

Paul Botto
Lucid Green Co-Founder & President
paul@lucidgreen.io

Lily Colley
incredibles National Marketing Director
Lily@medicallycorrect.com

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Feds Call for Professional Joint Rollers, Cannabis Growers

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The National Institute on Drug Abuse (NIDA) is seeking to hire professional joint rollers, according to a notice posted last week by the agency.

First reported by Marijuana Moment, the move is the latest effort in a push for more federal cannabis researchers. Notably, NIDA is not looking for proposals or to hire anyone, yet. Instead, the agency is looking for capability statements from small businesses so it can gauge the size and requirements of a future program.

The rolling of joints would be just one aspect of the job — according to the posting, “NIDA seeks qualified organizations having capability to analyze and characterize various drugs of abuse including cannabinoids and other research chemicals.”

NIDA says applicants must be able to “acquire hard-to-find controlled and uncontrolled drug compounds” and “analyze purity, authenticity, and stability of these compounds,” among many more responsibilities.

Here are the joint-rolling specifics:

“Manufacture standardized marijuana cigarettes within a range of varying concentrations of delta-9-THC and analyze strength and stability of them at various intervals while having the capability to maintain a secure shipping facility and to ship marijuana cigarettes to research investigators.” — Excerpt of NIDA statement

The posting also requires applicants who can manufacture and analyze nicotine cigarettes for research purposes.

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Northampton, MA

Massachusetts Prepares for Adult-Use Sales By End of November

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After nearly a year of delays, Massachusetts has made the final approvals necessary for a complete regulated supply chain and sales are expected soon, MassLive reports.

The original launch date for the industry was January 1, 2018. That date was quickly adjusted to July 1, 2018, which also passed without the launch of sales. Frustration among industry hopefuls has been growing for quite some time.

When “commence operations” notices were delivered to two of the state’s future testing labs, CDX Analytics and MCR Labs, the last piece of Massachusetts’ adult-use program has fallen into place. As all cannabis sold in the state must be tested for a variety of issues before going to retailers, the launch of these labs should signal the very near launch of retail sales.

While dispensaries have already received licenses and have signaled they are also ready to start sales, the state has yet to send a final “commence operations” notice to those businesses. That will be the final step.

“[W]e’re going to have these certificates of ‘commence operations’ done in the next week or two.” — Steve Hoffman, Chairman of the Cannabis Control Commission, in the report

Two dispensaries, New England Treatment Access in Northampton and Cultivate in Leicester, have announced they are set to begin once that notice comes down from state regulators. Pharmacannis Massachusetts in Wareham has also received a license, but that business is not as far along in the process as the others.

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