Cannabis

Aurora Cannabis Reports 260% Year-Over-Year Revenue Increase

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Aurora Cannabis told investors today during its earnings report that revenue had increased 260% since this time last year, CNBC reports.

The Canadian licensed producer also reported that production rose more than 400%. Last year, Aurora reported 1,010 kilograms of cannabis produced. This year, the company grew 4,996kg. The opening of Canada’s adult-use market on October 17, of course, helped drive the increased production.

The rising quantity of production is accompanied by a falling cost-per-gram of production, which is down 22.5% since last year. That cost has actually dropped 14.7% over just the last quarter. The company attributed the lower production costs to upgraded workflows at one of the company’s subsidiaries in the last quarter, as well as the increased volume.

The reporting period also contains the full initial stock for Canada’s provincial cannabis wholesalers. Aurora sold CA$600,000 in adult-use cannabis by the end of the last quarter.

“Given the strong unmet consumer demand evident across Canada, we are confident that our rapidly increasing production capacity will result in continued acceleration of revenue growth.” — Terry Booth, CEO of Aurora, in the report

Aurora also highlighted recent acquisitions and new products. Aurora Cloud, the company’s CBD oil vape cartridge manufacturer, is beginning operations. It’s the vape-ready CBD cartridge sold by a Canadian licensed producer. Aurora also recently acquired MedReleaf, a company dedicated to cannabis strain R&D.

Aurora needs to continue growing, however, in order to justify the company’s current $9 billion market cap. Company executives and investment advisors both say they are optimistic.

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Canna Cribs Visits Humboldt’s First Licensed Recreational Farm

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Canna Cribs Episode 5 is out this morning on YouTube and the GrowersNetwork.org website.

In its fifth episode, the online mini-documentary series features Humboldt County’s Honeydew Farms, one of the first large-scale cannabis cultivators in California. Honeydew operates on a 600-acre agricultural preserve nestled in the California North Coast’s Kings Range foothills. The mountainous region affords Honeydew a variety of growing microclimates that can range in altitudes of 200 to up to 900 feet, which helps create very distinctive batches of cannabis crops.

In this episode, Canna Cribs host Nate Lipton joins co-owner Alex Moore to witness Honeydew Farm’s unique location and talk about being a family-owned and family-run farm in the rapidly commercialized California industry.

In the interview, Moore talks about co-owning the farm with his wife Miranda, discusses his experience as one of Humboldt’s legacy growers during the 1990s, and offers an in-depth explanation of Honeydew’s in-house propagation process and their strategies and go-to products for the vegetation stage — which includes organic soil custom-made by local company TeaLAB.

The Canna Cribs team briefly meets up with TeaLAB owner Luke Besmer, who says that a combination of factors — cost, ease of use, and quality — explain why his compost teas are so popular among Humboldt’s many outdoor and greenhouse cannabis cultivators.

Beyond Honeydew’s unique location and dedication to organic, reusable soil, this Canna Cribs tour also investigates the farm’s drying and curing processes, trimming decisions (all flower is hand-trimmed by professionals), branding and packaging strategies, and intense dedication to preserving the final product for consumers.

Check out Canna Cribs Episode 5, featuring Honeydew Farms, via the player below:

About Canna Cribs
Canna Cribs is an ongoing mini-documentary series produced by Growers Network that covers entrepreneurs and pioneers in the burgeoning cannabis industry. Catch up on the rest of the episodes in Canna Cribs Season 1 to see more in-depth tours of some of the world’s largest and most advanced cannabis grow sites.

About Growers Network
Growers Network is a private online community for cannabis cultivators and entrepreneurs to share their experiences, discuss the industry, and work together to overcome the many obstacles facing modern cannabis professionals.

To learn more about Canna Cribs or the Growers Network platform, visit GrowersNetwork.org.

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Mitch McConnell

Mitch McConnell Guarantees Industrial Hemp in Farm Bill

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On Friday, Sen. Mitch McConnell (R-KY) promised that the Farm Bill will be passed in an upcoming lame duck session of Congress, the Murray Ledger & Times reports.

McConnell said finishing the unified 2018 Farm Bill was one of his top priorities. While legislators are debating work requirements for food stamps, McConnell said the industrial hemp legalization clause is not in question.

“It will be in there, I guarantee you that.” — Sen. Mitch McConnell (R-KY), in the report

The 2014 Farm Bill lapsed on September 30. Lawmakers could not agree on several provisions for its replacement before going into recess for the midterm elections, though existing programs remain funded through December. Congressional leaders promised to reconvene in a lame duck session later this year to continue work on the Farm Bill.

The main disagreement has resulted over a Republican push to add work requirements to the federal food stamp program, SNAP. Industrial hemp seems secure in the bill’s current draft, though some advocates have worried that lawmakers might decide not to approve the new bill in favor of extending the 2014 Farm Bill for three more years.

McConnell’s re-commitment to passing the 2018 Farm Bill — instead of abandoning it in favor of other options for funding farm programs — shows promise for the historic legalization of industrial hemp.

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Decriminalization Bill Filed In Texas

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At least one Texas lawmaker is eyeing 2019 as the year to decriminalize cannabis in the Lone Star State.

First reported by Marijuana Moment‘s Tom Angell, Rep. Joe Moody (D) pre-filed a decriminalization bill early Monday for the 2019 legislative session.

The Texas Republican Party officially endorsed cannabis decriminalization in June — the party’s platform now says it supports changing the law “to make (cannabis possession) a civil, and not a criminal, offense.”

Moody’s decriminalization bill would mirror that sentiment, ending arrests for cannabis possession and replacing the risk of jail time or a criminal record for offenders with a simple fine.

“Civil penalty legislation is the first thing I’ve filed on the first day of filing for the 86th Session. There’s been an incredible swell of bipartisan support since last session, and the official Texas Republican and Democratic platforms both approve of this kind of reform now. I’m optimistic that this will be the session we finally see smarter, fairer marijuana laws in Texas.” — Rep. Joe Moody, in a press release

Cannabis reforms are becoming increasingly popular throughout the U.S. and politicians are learning to either jump on board or get left behind.

During last week’s midterms, Texas voters rejected incumbent Rep. Pete Sessions (R) — who chaired the House Rules Committee — due in part to his horrendous track record of categorically blocking any and all attempts at cannabis reform.

Texas Gov. Greg Abbott (R) said in October he favored reducing cannabis possession penalties.

According to Gallup, two-thirds of Americans now support federally legalizing cannabis.

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Science Lab

Washington Issues First Cannabis Research License

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Washington state has issued its first-ever research-specific cannabis license to Verda Bio, a Seattle pharmaceutical company, according to a story in The Stranger.

The more common producer license does not technically allow breeding of cannabis in the interests of developing new strains or doing research. If a producer were to grow plants just to study them, or attempt to keep the seeds, it would be illegal — anything that is not sold must be destroyed.

Verda Bio aims to develop new strains of cannabis that contain uncommon and largely unstudied cannabinoids. Recent research revealed that there are 21 or more cannabinoids that have not been formally identified, even in commercial cannabis strains.

“The first year of the project is going to focus on breeding plants that produce chemicals outside of THC. … We don’t believe that the plants that we want to do research on exist yet.” — Jessica Tonani, CEO of Verda Bio

Washington created the new research-class license in 2016. A written review of projects and scope of future research must be done for any company applying for the license. Verda Bio is the first company to navigate that process, having spent the last two years working through the approval process.

No one else has applied yet for the license.

“I think universities are still pretty scared about federal repercussion about partnering with people in what is perceived to be a federally illegal system. But we are hoping that changes,” Tonani said.

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Los Angeles, California

California Has New Cannabis-Friendly Officials, Taxes

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California’s midterm elections demonstrated voter support for a variety of cannabis issues and resulted in new taxes and a new governor, Leafly reports.

Elected officials

Pro-cannabis stances helped a variety of political candidates retain their seats or become elected in California.

Pro-cannabis candidate for Governor Gavin Newsom won the office over Republican candidate John Cox. Governor-elect Newsom is a former mayor of San Francisco and campaigned on behalf of Proposition 64, which legalized cannabis in California in 2016.

In the congressional races, cannabis convert Diane Feinstein retained her Senate seat after changing her stance on cannabis to support a state’s rights approach in the last few years. Cannabis opponent Rep. Steven Knight was given the boot by voters, to be replaced by Democrat Katie Hill. Republican Rep. Duncan Hunter, who is pro-cannabis, took the seat for District 50 as well.

Taxes

Taxes were also at issue on California’s state ballot. San Francisco, Fresno, Santa Ana, Santa Clara, and dozens of other cities and municipalities across California passed new local cannabis industry taxes. Many industry advocates say cannabis is already over-taxed but costs continue to rise.

Oakland was one of the few cities to pass an initiative that may actually lower taxes. Oakland’s “Measure V” restructuring of taxes is the first of its kind and is lauded by industry supporters, who hope to see more legislation of its type.

Notably, the Los Angeles public bank initiative, Measure B, failed with 61 percent of voters rejecting the plan. The initiative would’ve created a municipal bank to enable full banking services for cannabis businesses. The bank would also have helped fund affordable housing and entrepreneurship and was backed by City Council President Herb Wesson.

California is expected to continue as a model for cannabis regulation — the state has been on the forefront of cannabis legalization for decades and there’s no end in sight.

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Michigan U.S. Attorneys Lay Out Cannabis Enforcement Policies

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U.S. Attorneys in Michigan have laid out their policies for enforcing federal cannabis laws in the newly legalized state, the Detroit Free Press reports.

Matthew Schneider and Andrew Birge — who serve as U.S. Attorneys for Eastern and Western Michigan — announced in a statement on Thursday that “we will not unilaterally immunize anyone from prosecution for violating federal laws simply because of the passage of Proposal One.”

Their enforcement efforts, however, will be weighed against both offices’ priorities, and neither office expects to focus on low-level cannabis crimes like simple possession.

“Our offices have never focused on the prosecution of marijuana users or low-level offenders, unless aggravating factors are present. That will not change.” — U.S. Attorneys Matthew Schneider and Andrew Birge, in a statement

According to Schneider and Birge, their offices will be more inclined to prosecute for cannabis-related crimes when there are other issues at play, such as:

  • Interstate trafficking
  • Involvement of other illegal drugs/activities
  • Organized crime
  • Bypassing local laws/regulations
  • Environmental contamination
  • Risks to minors

“We will continue to approach the investigation and prosecution of marijuana crimes as we do with any other crime,” Schneider and Birge wrote.

“We will consider the federal law enforcement priorities set by the United States Department of Justice, the seriousness of the crime, the deterrent effect of prosecution, and the cumulative impact of the crime on a community.”

 

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Illinois’ Governor-Elect Wants to Legalize Cannabis

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The midterm election win of Illinois Gov.-elect J.B. Pritzker signals one less barrier between Illinois and the legalization of adult-use cannabis, according to The Chicago Tribune.

Pritzker said shortly after being sworn in on Wednesday that legalization was an issue Illinois could work on “nearly right away,” telling FOX 32 he would also look at vacating citizens’ prior cannabis convictions.

Notably, a cannabis-friendly governor does not mean that such reforms are guaranteed, as a legalization bill still must make it through the legislature and many lawmakers remain opposed. But, with Democrats strengthening their hold on both of Illinois’ legislative chambers after the midterms, advocates expect the real legalization debate will come down to how, not if, and will focus heavily on where cannabis tax dollars will go in the state budget.

“I suspect it’s a done deal. People see it as a new source of revenue. The true battle will be over who gets their cut of it taxwise.” — Pat Brady, cannabis consultant and lobbyist, via The Chicago Tribune

Officials say they will propose a legalization bill early next year.

Latest polling data suggests that two-thirds of Americans support the federal legalization of adult-use cannabis. There are now ten U.S. states that have ended cannabis prohibition entirely.

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Bangkok

Thailand Legislature Proposes Medical Cannabis Legalization

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On Friday, Thailand’s National Legislative Assembly proposed amendments to the Health Ministry that would legalize both medical cannabis and Kratom for possession and distribution, according to the Washington Post.

The Health Ministry will now review the proposed amendments and forward them to the Cabinet. After revisions, the Cabinet will send a final version of the legislation back to the Legislative Assembly for a vote. If successful, Thailand would be the first Asian country to legalize medical cannabis.

The proposal allows for licensed and regulated medical cannabis operations, but not adult-use. Public hearings earlier this year showed strong support for using cannabis as medicine from Thailand’s general public.

“If we let it be used recreationally, our society is not ready yet, so I want to do this first step first — the issue of making medicine. From allowing the making of medicine, maybe in six months or a year’s time, if society is ready, it could become a food supplement,” said Somchai Sawangkarn, the lawmaker who proposed the amendments. “Eventually that could lead us to its recreational use.”

Somchai Sawangkarn said the legislation’s greatest obstacle is Big Pharma.

“I’ve been working on legislation in Parliament for the past 12 years, and I have to admit that this has been one of the toughest ones to pass because it affects the benefits of large transnational pharmaceutical companies as they sell chemotherapy, morphine, and so on, and we want to introduce something really cheap as an alternative.” — Somchai Sawangkarn, in the report

Some still hold reservations to the legislation due to child consumption worries and the difficulty of protecting small Thai businesses who want to participate in teh market.

The legislative process is expected to produce final medical cannabis legislation that will be voted on in the National Assembly by the end of the year.

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Washington, D.C.

D.C. Eyes Taxed-and-Regulated Market Following Midterms

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The midterms are over and a switch to Democratic control of the U.S. House of Representatives could finally allow for regulated adult-use cannabis sales in Washington D.C., The Washington Post reports.

Mayor Muriel Bowser announced following her re-election on Tuesday that she will propose plans next year for a taxed-and-regulated cannabis marketplace in the District.

“We will prepare a tax-and-regulate scheme to present to the council at the beginning of the next year. … We have an untenable situation in the District. As long as we have the ability to possess marijuana, which is our law, we also need the ability to procure marijuana legally, which we don’t have now.” — Washington D.C. Mayor Muriel Bowser, in a statement

D.C. voters approved adult-use legalization in 2014 but sales have been blocked by the Republican-controlled House of Representatives. Specifically, Maryland Rep. Andy Harris (R) pushed for a rider that blocked the city from spending federal funds on reducing cannabis penalties or implementing pro-cannabis policies. Rep. Harris’ amendment has been attached to federal spending bills since 2015. The amendment was later expanded to include all funds.

The amendment has infuriated D.C. voters, who approved legalization by an overwhelming 65 percent majority but have been powerless to prevent Rep. Harris’ interference (only his constituents in Maryland have the power to vote him out).

The District’s local government remains overseen by Congress. Until 1973, in fact, it was completely governed by Congress but the Home Rule Act passed that year handed some governance over to a mayor and thirteen-person council. Congress, however, maintains oversight power for any laws passed in the district.

Today, District residents can grow their own cannabis on private property and can gift up to an ounce to others — selling or bartering for cannabis, however, remains illegal.

Legislation has been introduced by District Council Member David Grosso to allow the city to license cannabis retailers, but there remains uncertainty about whether the GOP-controlled Senate will let it fly. The District’s non-voting House of Representatives member Eleanor Holmes Norton said the Senate “doesn’t seem to care much” — but that could change now that political power has been re-arranged in the House.

Grosso said that, if there is significant pushback from the Senate, he believes the District of Columbia could use that pressure to campaign for statehood.

A looming budget deadline could allow for regulation legislation as early as next month, but many don’t expect change until next year’s budget deadline on October 1, 2019.

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Washington LCB Issues Emergency License Suspension

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The Washington State Liquor and Cannabis Board (WSLCB) announced yesterday the suspension of licenses held by North Coast Concentrates following the discovery of alleged product diversion by the license holder.

The WSLCB says it will “seek permanent revocation of the licenses.”

The alleged diversion was first discovered on September 20, 2018, when a North Coast Concentrates employee was pulled over by Lower Elwha Police, who discovered “three large jars and a large tote bin” of dried cannabis flower that had not been represented in the state’s traceability system. The officer also found 112 grams of traceable cannabis concentrates.

“Subsequent investigation by WSLCB officers revealed that the untraced product had been removed from the licensees grow operation and that the traced concentrates were returned from a marijuana retailer in Tacoma several weeks earlier. Seized text messages from the employee’s cellphone indicated that the licensee was aware of both the diversion and the selling of product on the black market.” — Excerpt from the LCB press release

Officers who executed the suspension orders seized 556 pounds of cannabis flower, 24 pounds of cannabis oil products, and 204 cannabis plants from the license holder’s two registered locations.

“Emergency suspensions represent an extraordinary exercise of the state’s power and the WSLCB is mandated to ensure that an emergency suspension is reasonable, justifiable and legal in every way,” the agency wrote.

Washington‘s adult-use cannabis marketplace launched in 2014. The WSLCB issued one emergency license suspension in 2017 and six in 2018. 

A request for comment from North Coast Concentrates was not immediately returned; this piece will be updated if a response is received.

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Cannabis Leaf

First Canadian Dispensary on Indigenous Land Opens

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The Opaskwayak Cree Nation (OCN) in Manitoba, Canada is opening the first legal dispensary on First Nations land, according to the CBC.

The retail store, called Meta Cannabis Supply Co., is located in the northern Manitoba community’s mall. The shop carries eight different strains of cannabis with prices starting at $8 per gram. The OCN store will serve an area of approximately 30,000 people, 3,000 of which live on the reserve. They expect to take in about $5,000 a day in sales.

The store is a partnership between the OCN and National Access Cannabis, who will supply the store. The OCN owns 51 percent of the operation; National Access Cannabis owns 49 percent.

The OCN said profits from the store will pay down debt and fund programs for language revitalization, health, and recreation.

Unlike many First Nations reserves in Manitoba, the OCN is not “dry” and does not forbid alcohol or cannabis. The leader of the OCN, Onekanew Christian Sinclair said the decision to allow alcohol was made 20 years ago.

“It showed the maturity of our community in being able to allow our community to partake in those types of products, and the fact being that if they don’t get it there, they’re just going to drive across the bridge two minutes away and buy it in the local establishments. So why not be a part of that market and show that our community is mature like anybody else?” — Christian Sinclair, leader of the OCN, in the report

There exist unlicensed dispensaries operating on indigenous land elsewhere in Canada but there is contention over the tribes’ right to operate them. Indigenous peoples have asserted their sovereignty and law enforcement has yet to engage in any sort of crackdown.

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Trump Fires Attorney General Jeff Sessions

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President Donald Trump requested the resignation of U.S. Attorney General Jeff Sessions on Wednesday as part of a house cleaning effort following the 2018 midterms, the New York Times reports.

Jeff Sessions, a former Alabama GOP Senator, was a longtime opponent to cannabis reforms before becoming the nation’s top cop and has been a looming threat to state-legal cannabis industries during his time as Attorney General.

“Dear Mr. President, at your request I am submitting my resignation.” — Jeff Sessions, in his one-page resignation letter, via the AP

Sessions will be replaced by his chief of staff, Matthew Whitaker — a former U.S. attorney for the Southern District of Iowa who served under the George W. Bush administration from 2004 to 2009.

Sessions rescinded the Cole Memo, a set of protections for state-legal cannabis businesses left over from the Obama administration, in January. The move sparked panic in the cannabis industry about a potential federal crackdown by the U.S. government on what has otherwise remained a largely uninhibited experiment in statewide cannabis reforms.

In May 2017, Sessions issued a memo reversing some of the more compassionate drug conviction policies established under the Obama administration, signaling a return to Drug War-era mandatory minimum sentencing. One month later, he asked Congress to restore funding for the federal enforcement of cannabis prohibition in legalized states.

In September, a collection of U.S. senators wrote a letter to Sessions inquiring about delays in the licensing of additional cannabis cultivators for federally funded research. The additional licenses were requested two years ago by President Obama.

Sessions’ departure, while arguably good news for cannabis, is not necessarily surprising. President Trump and his attorney general have been on shaky terms since shortly after Trump took office when Sessions recused himself from the FBI investigation into the potential collusion with Russia by Trump’s presidential campaign.

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Cannabis Wins Big In 2018 Midterms

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During yesterday’s midterm elections, voters delivered a resounding message across the country in support of reforming cannabis laws.

Michigan voters approved adult-use legalization while voters in Utah and Missouri resoundingly embraced medical cannabis reforms. The plant’s only defeat this election season was in North Dakota, where voters rejected a bill that would have established the least restricted cannabis market in the country.

There were also some indirect victories for cannabis last night, including the defeat of incumbent Texas Rep. Pete Sessions and several gubernatorial victories by pro-cannabis candidates.

Michigan

Michigan voters approved Proposition 1 in a comfortable 56-44 percent margin, making Michigan the tenth state to legalize adult-use cannabis. Under the initiative, adults 21 and older can possess up to 2.5 ounces of cannabis and cultivate up to 12 plants in their own home. Retail sales may not launch until sometime in 2020, but cannabis will become legal just 10 days after the election results are officially certified.

See our in-depth coverage to learn more about Michigan’s legalization victory.

Missouri

Missouri voters saw three opportunities to legalize medical cannabis on their ballot yesterday, but only one of them soared far ahead for an easy 66-34 percent victory.

Missouri’s Amendment 2 was approved ahead of another constitutional amendment and a statutory amendment. Amendment 2 was seen as the safest and most progressive option, containing one of the lowest tax rates of any medical cannabis proposal (just four percent) as well as the stipulation that funds generated by the program will go to health services for military veterans and to funding the new program’s regulatory agency(s).

Amendment 2 was endorsed by NORML and the Marijuana Policy Project.

Missouri is the 31st U.S. state to legalize medical cannabis.

Utah

Utah voters approved Proposition 2, which aims to establish a comprehensive medical cannabis program, in a narrow 53-47 percent victory.

While victory is sweet, medical cannabis was more or less guaranteed already for the state of Utah after advocates reached a compromise last month with the bill’s opponents, mainly lawmakers and the Mormon Church. Proposition 2’s passage, however, means cannabis patients are significantly less likely to suffer without access if lawmakers were to renege on their agreement (which is a concern that has bothered some advocates).

“The passage of Proposition 2 illustrates just how broad support has grown for medical marijuana in the U.S.,” Matthew Scheich, deputy director of the Marijuana Policy Project, said in a written statement. “Even in socially conservative states like Utah, most voters recognize marijuana has significant medical value, and they believe it should be available to patients who could benefit from it.

The details of Utah’s Proposition 2 may be subject to change, but as it stands the initiative would allow patients with a physician’s approval to purchase up to two ounces of cannabis or up to ten grams of CBD or THC oil every two weeks. Patients who live at least 100 miles from the closest dispensary would also be allowed to grow up to six cannabis plants at home.

Notably, cannabis patients in Utah will not be allowed to smoke their medicine, relying instead on edibles, vaping, and other consumption methods.

Utah is the 32nd U.S. state to legalize medical cannabis.

North Dakota

North Dakota experienced the only cannabis defeat of the midterms. It was the first true legalization attempt in a resoundingly conservative state.

Voters rejected the state’s legalization initiative with a 59-41 percent majority. The proposal — which would have removed all penalties for cannabis from state law and allow anyone 21 or older to cultivate and sell the plant with no limitations, tax-free — was considered by some to be the most progressive legalization attempt ever undertaken in the U.S.

Legalize ND, the advocacy group behind North Dakota’s legalization push, posted the following message to their social media outlets this morning:

“Last night was not the result we wanted. We were outgunned in money, and the majority of voters said no. But we cannot give up. Our advocacy does not end. In the new legislative session, WE MUST fight tooth and nail for decriminalization of marijuana possession, and gear up for 2020. Start contacting your newly elected legislators now.” — Written statement from Legalize ND

Other elections

While only four states voted on statewide cannabis initiatives, there were many other cannabis-adjacent elections that are worth noting.

Incumbent Texas Rep. Pete Sessions (R) lost to Democratic challenger Colin Allred, a former NFL player. During his time in the House, Sessions personally blocked dozens of cannabis proposals from consideration. In fact, Sessions has been such a staunch opponent to anything cannabis that Marijuana Policy Project founder Rob Kampia worked with other advocates to launch a PAC earlier this year dedicated to unseating him in the midterms.

Five Ohio cities Dayton, Fremont, Norwood, Oregon, and Windham approved cannabis decriminalization laws, raising the total number of cities in Ohio with decriminalization on the books to 11.

Voters in 16 Wisconsin counties signaled support for reforming cannabis laws in the form of advisory questions. These questions appeared on the ballot but will not reflect any changes in state or county law — they were merely meant to gauge interest in the issue.

Last but not least, pro-cannabis candidates won gubernatorial races in California, Colorado, Connecticut, Illinois, Maine, Michigan, Minnesota, Pennsylvania, New Mexico, and Wisconsin. NORML Deputy Director Paul Armentano weighed in with a written statement following the election:

“In four states — Connecticut, Michigan, Minnesota, Illinois — voters elected Governors who openly campaigned on a platform that included legalizing adult marijuana use. In two other states — California and Colorado — voters elected Governors who have a long history of spearheading legalization reform efforts. And in Maine and in New Mexico, two of the nation’s most rabid marijuana prohibitionists, Paul LePage and Susana Martinez, have been replaced by Governors who are open to enacting common-sense cannabis reforms.”

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Michigan Becomes Tenth State to Legalize Adult-Use Cannabis

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Michigan voters have resoundingly approved Proposition 1 to legalize adult-use cannabis and establish a statewide taxed-and-regulated cannabis marketplace.

Proposition 1 passed comfortably with 56 percent of the vote, making Michigan the first state in the Midwest to legalize, the Detroit Free Press reports.

Proposition 1 contains the most generous possession and cultivation limits of any other successful legalization initiative, allowing adults who are 21 or older to possess up to 2.5 ounces of cannabis and cultivate up to 12 plants in the privacy of their own home. The measure will take effect just 10 days after the election results are certified, likely sometime in December — retail sales, however, are unlikely until at least 2020 as officials must first craft and pass new regulations, allow time for applications, and issue business licenses.

Governor-elect Gretchen Wilmer, the Democrat who won last night’s gubernatorial race, said in her first official press conference as Michigan’s future governor that she would consider expunging cannabis crimes in light of Proposition 1’s passage — an issue that was not directly addressed by the initiative.

“I think that the people of Michigan have said that for conduct that would now be legal, no one should bear a lifelong record for that conduct,” Michigan Gov.-elect Gretchen Whitmer, via The Detroit News

Under Proposition 1, landlords will still be able to prohibit cannabis use and/or cultivation and employers can legally maintain zero-tolerance cannabis policies. Furthermore, cannabis gardens will have to be hidden from public view.

Michigan is the tenth state to legalize cannabis and the ninth state looking to establish a taxed-and-regulated cannabis marketplace.

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Painkillers

Ohio Considers Opioid Use Disorder as Qualifying Condition for Cannabis

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The State Medical Board of Ohio is considering new additions to the list of conditions that qualify patients for medical cannabis and at least one doctor is campaigning for the addition of Opioid Use Disorder, The Boston Globe reports.

Dr. F. Stuart Leeds is registered to recommend cannabis through the state’s currently incomplete medical program. He’s also a strong proponent for using cannabis to fight the record number of opioid-related deaths in the state. While Dr. Leeds admits the number of studies that favor using cannabis for the condition is limited, he said he’s seen strong evidence directly from his patients.

‘‘Patients have been conducting their own self-experiments on a variety of street drugs for decades. ‘They know more about what marijuana will do for their chronic pain and addiction problems than we do.’’ — Dr. F. Stuart Leeds, in the report

Other Ohio doctors are not so sure, some citing the lack of clinical evidence. Dr. Brad Lander, who specializes in addiction medicine, said that cannabis is only a temporary patch and not a true treatment.

“Patients smoking marijuana don’t have the real motivation to do therapy to maintain long-term recovery or improve their lives,” said Lander. However, even he admitted that cannabis can be a favorable treatment for the initial withdrawal symptoms.

Ohio has had trouble rolling out its medical cannabis program in a timely fashion, though support remains strong in the state.

Meanwhile, five Ohio cities have decriminalized the possession of marijuana as of yesterday’s midterm elections: Dayton, Fremont, Norwood, Oregon, and Windham. That’s on top of the previous six: Toledo, Logan, Roseville, Bellaire, Newark and Athens.

The state Medical Board will weigh applications for new medical cannabis conditions later this year.

 

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Zenabis Reverse-Takeover Stock Surges Following Release For Trading

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Canadian licensed producer Zenabis, who recently merged with Bevo Agro Inc. via a reverse takeover, saw its share price surge more than 70% in the first day of trading following the merger, according to a press release.

Zenabis’ parent company Sun Pharm is forming a new company with Bevo Agro Inc. called Zenabis Global Inc. that will fuse the business model of a cannabis LP with agricultural plant propagation. Bevo Agro’s current agricultural business model will not be abandoned but instead shifted into other greenhouse facilities as Zenabis converts the company’s previous facilities into cannabis production centers.

Zenabis was producing only cannabis flower but is expected to expand into concentrates, oils, and pre-rolls when it opens its third production facility in Nova Scotia sometime next year. The company is attempting to scale its growth in time with the development of Canada‘s cannabis market.

Though trading of the shares has opened, the merger will not technically be complete until sometime in December. While all majority shareholders involved have finalized the deal, it still needs to be approved by TSX Venture Exchange and the British Columbia Supreme Court.

The merged companies’ ticker symbol is BVO.

End


Mexican President

Mexico’s President-Elect to Honor Supreme Court’s Cannabis Decision

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Mexico’s president-elect Andrés Manuel López Obrador said last week he would not interfere with the Supreme Court’s decision to end cannabis prohibition, the Latin America News Dispatch reports.

Last Wednesday, Mexico’s Supreme Court ruled that cannabis prohibition is unconstitutional; it was the court’s fifth such ruling and the last step for determining jurisprudence in favor of cannabis reforms.

Obrador, commonly known by his initials AMLO, said that lawmakers should honor the Supreme Court’s decision during a brief televised interview.

The decision sets Mexico up to become the next nation to fully legalize adult-use cannabis. However, the responsibility for moving forward now lies with lawmakers, who must take the court’s decision one step further and establish regulations to create a federal cannabis industry — hopefully sometime during the 2019 legislative session.

Following his landslide victory in July, members of AMLO’s transition team hinted that decriminalizing cannabis was on the president-elect’s agenda.

Mexico legalized medical cannabis in 2017.

If Mexico were to successfully legalize adult-use cannabis, the United States would be flanked on both sides by federally legal cannabis jurisdictions, as Canada’s landmark legalization bill took effect last month.

Meanwhile, in the U.S., eight states have established rules for an adult-use marketplace; Vermont and Washington D.C. have legalized cannabis cultivation and possession, but not sales; and two more states are voting today on the issue of adult-use cannabis legalization.

 

 

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Retina

Can Cannabis Improve Night Vision? Study Says Yes

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Researchers at McGill University in Montreal have shown that cannabinoids can increase the responsiveness of retinal cells to light, according to The Guardian.

At least two other studies looking at cultures where cannabis is prevalent have revealed a potential correlation between good night vision and cannabis use.

Fishermen in Jamaica had long attributed their excellent night vision to smoking cannabis or using a rum-based cannabis tincture. That effect was confirmed by pharmacologist M.E. West 25 years ago.

In 2002, researchers in Morocco were also able to confirm cannabis’ effects on night vision in fishermen and mountain-dwellers in that country, using a new device that measured the sensitivity of retinal cells in the eye.

The new study focuses on retinal cells using animal models. Researchers applied a synthetic cannabinoid directly to the eyes of tadpoles and used electrodes to measure changes in retinal nerves, measuring directly how much light the tadpoles could perceive. The cells were shown to be more sensitive to light following the cannabinoid’s administration.

The tadpoles are also known to instinctively swim away from dark moving dots. In a second experiment, researchers applied the synthetic cannabinoid to some and then tracked the behavior of the tadpoles using video-tracking software. Under normal, bright light conditions they observed no difference in behavior. Under low-light conditions, however, tadpoles treated with the synthetic cannabinoid were able to avoid more moving dark dots than those who were not, apparently confirming the suspicion that cannabinoids can increase low-light vision.

Researchers now have a basis of understanding for the specific effect that cannabinoids have that increases night vision. The research could lead to the investigation and development of treatments for many eye conditions, such as retinitis pigmentosa and glaucoma — both of which can cause blindness.

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IV Drip

Study: Cannabis Users at Increased Risk for Diabetic Complications

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A new study has shown that people with Type I Diabetes are about twice as likely to experience a complication known as diabetic ketoacidosis when using cannabis, the CBC reports.

While other research has shown that cannabis can be helpful in treating symptoms of Type II diabetes — the variety of diabetes that is linked to obesity and often develops later in life — the plant’s effects on Type I diabetes are not as well investigated.

Researchers surveyed 450 patients with Type I diabetes who were being treated at Barbara Davis Center for Diabetes in Colorado. 30 percent of those surveyed used cannabis — that population showed elevated blood sugar as a whole.

While risk factors varied, the cannabis-using patients were generally younger, less educated, and also in lower income brackets. Researchers admit that many other factors may be at play, including access to healthcare, but urge caution when using cannabis with Type I diabetes until more is known.

“Why cannabis would increase the likelihood of diabetic ketoacidosis is unknown. But we have also shown that in the presence of cannabis, the diabetic ketoacidosis is harder to diagnose, and therefore it may be missed, with deadly consequences.” — Dr. Annemarie Hennessy, dean of medicine at Western Sydney University

Researchers theorized that vomiting may accompany extended cannabis use and that changes in gut conditions due to cannabis may be responsible for the increased risk. Treatment for diabetic ketoacidosis involves intravenous re-hydration and insulin.

As always with the federally restricted cannabis plant, more medical research is desperately needed.

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RayWear Releases Clothing Line Dedicated to Protecting Cannabis Cultivators

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Hardworking growers now have protection for today’s grow environment.

San Diego, October 15, 2018 — RayWear’s revolutionary gear protects growers from light radiation in modern cultivation environments. The industry has turned a blind eye to worker health and safety despite promoting the plant’s health benefits. A safe work environment for cultivators and growers are not a priority for lawmakers. RayWear Clothing Company’s mission is to protect growers, with a line of durable, incredibly soft apparel, from intense radiation produced by modern grow rooms and prolonged outdoor cultivation.

RayWear’s founder, Daniel Jordan, has been concerned about the health risks of light radiation. He believes cultivators making a living in grow rooms deserve a safe, non threatening working environment; that’s why he researched light radiation and ways to protect people from it.

Although there is UV-protective clothing, grow lights emit an entire spectrum of light — ultraviolet (UVA, UVB), visible (VR) and infrared (IR) — that harms humans when under prolonged exposure. Health-conscious workers wearing UV-protective clothing are shielding themselves from only a fraction of light spectrum radiation present.

More people in the U.S. are diagnosed with skin cancer than all other cancers. Melanoma, a deadly form of skin cancer among adults under 30, accounts for 75 percent of skin cancer deaths. Both the American Cancer Society and the National Institute of Health agree light radiation causes skin cancer and other health issues. Currently, unprotected growers are exposed to extreme levels of indoor and outdoor light radiation.

Daniel worked with dermatologists and designers to develop a line of full-spectrum protective gear using the best fabric with the highest protective properties for cannabis cultivators. Initially branded as UVPPE — short for ‘UV Personal Protective Equipment’ — for commercial cultivation and large-scale operations, Daniel wanted his products available for cultivators and growers who need protection now.

Daniel selected 4Blooms.Guru, a professional cannabis marketing agency for a full rebrand. With new strategy, branding, messaging, and a digital marketing plan, RayWear Clothing Company will launch October 2018. A protective clothing bundle is available at special introductory price with delivery in time for the holidays.

RayWear’s shirts and pullovers are made from a durable, patent-pending fabric that provides protection against full-spectrum light radiation. RayWear gear is breathable, lightweight, and extremely soft, allowing it to be worn on its own or underneath work coveralls and uniforms.

RayWear advocates for employees to have a safe work environment today. It took decades before tobacco risks were sanctioned. In fostering and promoting a safe and healthy cannabis community, RayWear is protecting lives and the future of the cannabis industry.

About RayWear
RayWear believes worker safety and the cannabis industry should grow hand in hand. Our mission is to shield workers from light radiation. Together, we can make a difference in protecting the health and well-being of the grower community.

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Cannabis Use During Pregnancy On The Rise

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Results from the National Survey of Drug Use and Health have revealed that while pregnant women are drinking less and smoking less tobacco, they’re using more cannabis, Time reports.

Between 2002 and 2016, about 12,000 pregnant women responded to the survey. The women were between 18 and 44 years old. 3,500 of the women were in their first trimester, which is considered a crucial time for fetal development.

Tobacco smoking fell considerably compared to previous results, down from 17.5% of expectant mothers to just 10% — this is slightly more than the national decline in overall tobacco use. Alcohol use among pregnant women also dropped slightly, from 10% to 8.5%.

Cannabis use, however, rose from 3% to 5%. Some theorize the rising instances of cannabis use by expectant mothers are due to cannabis reforms across the country, particularly for medical cannabis.

While researchers have not studied cannabis use nearly to the extent of other substances, the Centers for Disease Control and other public health organizations have advised against consuming the plant during pregnancy due to concerns about fetal development.

Researchers behind the survey said, “Greater public awareness regarding the consequences of prenatal cannabis exposure in offspring health is necessary.”

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Outdoor CBD-rich cannabis plants on a farm in Oregon.

Oregon MMJ Registrations Plummet 41%

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Medical cannabis patients are abandoning the Oregon Medical Marijuana Program (OMMP) at a rapid pace, the Associated Press reports.

The number of state-registered medical cannabis patients has plummeted 41 percent in the last year, from 59,137 in to 34,892. Likewise, the number of sanctioned medical cannabis growers has also dropped at least 40 percent in the last year, from 23,175 to 13,959.

Both declines can be tied to the state’s prolific recreational marketplace, which voters established via a 2014 ballot initiative.

Many patients, for example, have decided to forgo the annual $200 renewal attached to OMMP ID cards in favor of the convenience and relatively low (albeit taxed) prices of adult-use retailers. Furthermore, Oregonians are now allowed to grow up to four plants for their own use, which is particularly attractive for rural patients.

Growers, meanwhile, are also turning away from the OMMP as regulators — who have become increasingly worried about the issue of Oregon cannabis product diversion into out-of-state markets — wrap more and more red tape around the program.

“The regulations around providing for other patients are quite onerous. I actually think that’s the biggest factor. Many patients are just unable to find a grower to supply them. …With the (regulatory) changes they’ve made, it’s much more difficult to care for other patients. Therefore, the number of growers willing to do that has dropped significantly.” — Cedar Grey, licensed grower and member of the Oregon Cannabis Commission, via the AP

The industry changes have created some unfortunate circumstances, including patients being pushed back underground to find unlicensed or illegal sources and growers who are abandoning Oregon and the OMMP as newer, friendlier programs pop up in other states.

Oregon first legalized medical cannabis in 1998.

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Washington Home Grow Advocates Preparing for 2019 Session

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Home grow advocates in Washington State are getting ready for the upcoming 2019 legislative session and they have high hopes the state will finally pass an adult-use home grow bill.

Washington is the only fully legalized state that does not allow adults over 21 to grow cannabis at home without a medical cannabis qualification.

Last year, a home grow bill passed the House Commerce and Gaming Committee only to stall before key deadlines were met. Despite the defeat, advocates are back this year with a new bill and new strategies.

“The energy for passing home grows definitely feels up this year, which has been a pleasant surprise. I think our opposition in the legislature have been just waiting for us to go away, but we’re not. We’ve changed our tactics and aren’t just showing up during the legislative session. We’ve been holding meetings around the state and people are really engaged.” — John Kingsberry, a home grow activist

“The Cole Memo was the legislature’s main argument against home grows but, since Jeff Sessions revoked the Cole Memo, that argument is out the window,” Kingsberry said.

“There is still a lot to do but, with a little luck and hard work, 2019 is the year Washington will get adult use home grows.”

 

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