ReeFi Capital Launches Platform to Offer Real Estate Loans to Cannabis Businesses

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Platform enables cannabis companies to turn existing real estate equity into immediate growth capital

Los Angeles, CAReeFi Capital announced today the launch of its Institutional Lending Platform. Backed by private equity capital, ReeFi provides liquidity for the cannabis industry through real estate loans, enabling entrepreneurs and operators to monetize their properties and invest capital into their rapidly-expanding businesses.

ReeFi targets legal cannabis businesses and real estate owners to provide loans collateralized by industrial facilities, greenhouses and dispensaries. Target loans range in size from $2 million to $10 million per property, and ReeFi has the flexibility to close loans within 30 days.

ReeFi is a private lender backed by institutional discretionary capital with underwriting and lending expertise and success across all real estate sectors. ReeFi’s backers have invested more than $5 billion in both real estate debt and equity, including opportunistic ground-up development projects, multifamily and hotel acquisitions, and bridge and mezzanine loans.

For more details about ReeFi’s Institutional Lending Platform, please visit reefi.com. Loans under $2 million will be considered on a deal-by-deal basis. Loans are non-recourse, and are taken on the real estate collateral, not the business or operations. ReeFi loans offer competitive interest rates on 3-5-year loan terms.

As part of this week’s platform launch, ReeFi will be activating as a sponsor at the Dallas Cannabis Investment Forum on October 18, presented by High Times. To stay up to date with ReeFi’s latest news, please visit and like ReeFi’s Facebook page.

About ReeFi Capital:

ReeFi allows legal cannabis companies to extract value from their real estate and reinvest capital into their rapidly expanding business.  ReeFi is an institutional lender, providing competitive rates and terms commensurate with the risk. Our backers have invested more than $5 billion in both real estate debt & equity, including opportunistic ground-up development projects, multifamily and hotel acquisitions, and bridge & mezzanine loans. Our disciplined approach to investing has consistently generated outsized gains relative to risk through several real estate cycles. With our proven track record of hundreds of successful transactions and a dedicated growth strategy, we know that we have an approach that works.

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Canada's flag with a cannabis leaf shape instead of the usual maple leaf.

Canada Legalizes Cannabis, Possession Pardons Incoming

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Today marks the official legalization of cannabis in Canada.

Canada, following in the footsteps of Uruguay, is only the second nation in the world and is the first G7 nation to legalize the recreational use of cannabis for adults. Medical cannabis has been legal in Canada since 2001.

Starting today, Canadian citizens who are at least 19 (or just 18 in Quebec or Alberta) can buy cannabis online from existing licensed producers or — depending on their province — at certain government-licensed storefronts.

Unfortunately for enthusiastic consumers, however, recent reports indicate that most Canadians will not have access to a dispensary at market launch. In fact, in British Columbia — the province with the highest rate of cannabis use — there will be just one storefront available at first; in Ontario, Canada’s most populous province, dispensaries will not be able to open their doors until springtime at the earliest. 

Shortly before legalization took effect, officials in Ottawa also announced the government would issue pardons for Canadian citizens with criminal possession charges of 30 grams or less of cannabis, according to a Global News report. 

“We will be introducing a new law to make things fairer for Canadians who have been convicted for possession of cannabis. It becomes a matter of basic fairness when older laws from a previous era are changed.” — Public Safety Minister Ralph Goodale, during an early Wednesday morning press conference

Canadians can also grow their own cannabis and buy seeds or clones but, according to Marijuana Business Daily, a cannabis seed shortage is expected during the early days of legalization.

The Canadian government has also launched information campaigns to educate citizens about the effects and realities of cannabis. So far, the BBC reports, 15 million households have received information in preparation for today’s major policy shift.

Canada’s legalization plan was first announced by Prime Minister Justin Trudeau as a campaign platform during the build-up to his 2015 election win.

“I’m actually not in favor of decriminalizing cannabis. I’m in favor of legalizing it,” then-candidate Trudeau said in 2013. “Tax it, regulate. It’s one of the only ways to keep it out of the hands of our kids because the current war on drugs, the current model is not working. We have to use evidence and science to make sure we’re moving forward on that.”

Following his electoral victory, Trudeau wasted little time in tasking his newly empowered Liberal government to undo cannabis prohibition, though the process has taken well over two years.

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MMJ Cardholder Charged With Possession by Police

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A woman in Oklahoma carrying both a valid MMJ card and cannabis was charged with marijuana possession by police, Oklahoma News 6 reports.

Regina Gist is a 49-year-old single mom with three boys. She developed chronic pain following four different back surgeries. When Oklahoma voters approved State Question 788 to legalize medical cannabis, Gist went to a doctor right away to get her license.

On September 25th, an officer pulled Gist over for having a broken taillight.

“The officer asked if I had anything on me and I said I have a little bit of weed but I have my ID. He just didn’t care. He said I just couldn’t possess it.” — Regina Gist, in the report

The officer told Gist that, because no approved medical cannabis dispensaries were open yet in the state, possession was still illegal. Gist’s attorney, Collin Rockett, disagrees.

Rockett cites the language of State Question 788, which says that a license holder can legally possess up to three ounces of cannabis. “Nowhere does it say you have to get it from the dispensary,” Rockett said. “It’s our position they have no basis to charge her.”

Gist believed she was obeying the law. “I seriously wasn’t even nervous when I told him,” she said. “But that changed real fast.”

The Oklahoma district attorney in charge of prosecution said this is all new to her, as well. The case, however, is still moving forward.

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Sunset photograph of New York City.

New York Law May Prevent MedMen-PharmaCann Merger

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New York Public Health Law may prevent the agreed-upon merger of MedMen and PharmaCann, the Times Union reports.

New York’s medical cannabis law, which is overseen by the New York Department of Health, requires pre-written approval from the Department for any ownership changes for businesses operating in the state’s MMJ market.

“Regulations prohibit a registered organization from changing the composition of its ownership without prior written approval of the Department of Health. MedMen and PharmaCann do not have approval from the department to conduct this transaction, and at this time the department has insufficient information to determine if approval can be granted.” — Jill Montag, New York Department of Health spokesperson

The hitch in the deal stems from New York‘s medical cannabis law, which prohibits cannabis businesses from owning or operating more than four dispensaries in the state.

MedMen already runs a high-end cannabis dispensary on Fifth Avenue in New York City and has also acquired the assets of Bloomfield Industries, which once operated throughout the state. PharmaCann has significant assets in New York as well, with dispensaries in Albany, the Bronx, and Central and Western New York. Their combined dispensary locations would exceed the limit.

Daniel Yi, spokesperson for MedMen, said the company was in talks with regulators and was confident of the outcome. “The first step in any acquisition is for the two parties to agree to the terms and enter into a binding contract,” said Yi. “Then you go seek approvals from all the relevant regulators. We have begun that process now.”

On Monday, MedMen announced that it would use “commercially reasonable efforts” to sell or shift ownership of any licenses that would prevent regulatory approval.

New York, however, is a valuable market — the state is in the process of developing an adult-use legalization bill that could create a lucrative recreational market within the next year.

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Banff, Alberta

Parks Canada OKs Cannabis at Campsites

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Parks Canada, the national Canadian parks service, has confirmed that it will allow the consumption of cannabis in campsites, according to the CBC.

“While Parks Canada campgrounds are public areas, the agency treats individual campsites as temporary domiciles for our visitors. For this reason, at Parks Canada campgrounds, consumption of cannabis will be permitted in campsites.” –Marie-Hélène Brisson, spokesperson for Parks Canada, via the CBC

Additionally, hikers will be able to consume cannabis on hiking trails in some provinces, including British Columbia, Alberta, Ontario, Quebec, Nunavut, and the Northwest Territories. Cannabis will be prohibited in common areas, however. Ultimately, visitors should be aware of specific provincial laws, as cannabis rules will differ depending on the province.

Parks Canada said it will treat cannabis just like alcohol for purposes of enforcement. Marie-Hélène Brisson said that Parks Canada may still have, just like for alcohol, “specific prohibitions on consumption in specific campgrounds or at specific times of year,” for operational concerns or to maintain a positive visitor experience.

Brisson also reminded users to be cautious when consuming in the wilderness to prevent incidents or injury. A B.C. Search and Rescue team issued a similar warning to wilderness enthusiasts earlier this year.

Cannabis becomes federally legal in Canada tomorrow, October 17, 2018.

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Canopy Growth to Acquire Ebbu In $330M Deal

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Canadian cannabis producer Canopy Growth Corp. is making a C$430 million bet ($330 million in USD) on the acquisition of ebbu, a Colorado-based hemp and cannabis research firm.

According to a Bloomberg report, the deal will include a C$25 million cash payment and 6.22 million Canopy Growth shares.

Canopy Growth — which has said it would not enter the U.S. cannabis market until the plant has been federally approved — issued a statement on Monday suggesting the acquisition is in “clear accordance with current U.S. federal law.” In that release, Canopy Growth reconfirmed that it would not conduct any cannabis production or sales efforts on U.S. soil until federal legalization is realized.

Ebbu is a hemp and cannabis research firm focused on identifying and understanding cannabinoids. Canopy Growth intends to utilize ebbu’s intellectual property and research advancements to improve its hemp and cannabis genetic breeding programs, cannabis-infused beverage capabilities, and to further health research.

In its release, Canopy — which also owns a hemp operation in Saskatchewan — suggested the ebbu acquisition will allow the company “to vastly reduce the cost of CBD production, a sought-after cannabinoid in both the wellness and medical spaces.”

Canopy Growth rocked the cannabis industry news cycle earlier this year when it secured a $4 billion investment from alcohol maker Constellation Brands to advance the CBD-infused beverage industry.

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An aerial view of downtown Newark, New Jersey.

New Jersey Allows Dispensaries to List Prices Online

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New Jersey’s Department of Health announced earlier this week that it will allow dispensaries in the state to list prices online.

New Jersey currently has six vertically-integrated “alternative treatment centers (ATC)” and plans to add another six in the near future.

“Medical marijuana patients should benefit from online price information just as shoppers do when they buy a car, a plane ticket or any other consumer goods. We hope that ATCs take this opportunity to communicate this information to patients. This is part of our ongoing effort to make the Medicinal Marijuana Program more consumer-friendly for patients and caregivers and less restrictive to ATCs.” — Health Commissioner Dr. Shereef Elnahal, in the release

The adjustment was made to the state’s cannabis advertising rules. In letters sent to the ATCs, Assistant Health Commissioner Jeff Brown told them they are now allowed to post lists of prices to social media and on their websites. The ATCs themselves will decide what, if any, information they will share.

New Jersey is in the midst of expanding its medical cannabis program — in fact, the number of patients has doubled since January. Delays surfaced, however, when state officials received 143 applications for just six additional licenses. Each application averages over 300 pages.

New Jersey is also considering full adult-use legalization, though that bill has not been finalized or voted on by state legislators.

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Cannabis Plants

Study Reveals 21 New Cannabinoids

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Researchers at the University of British Columbia have published a study revealing that there may be more types of cannabinoids than expected in many strains of cannabis and also that CBD and THC are not as important for understanding different strain effects as previously thought, according to Nature.

The researchers collected 33 strains of cannabis from five different licensed producers in the Canadian medical cannabis market. After making an extraction, they used the UV spectrum to classify the different chemical compounds present. Surprisingly, among expected results, the researchers discovered 21 compounds that looked a lot like cannabinoids but were previously unidentified.

The extractions tested by researchers showed that the differences between the strains only accounted for 36% of their overall chemical differences. The remaining 64% of the statistical difference was attributed to other cannabinoids, including the 21 unidentified. There were signs of a complicated relationship between chemical compounds in cannabis: some cannabinoids are correlated with the production of THC while others, including a number of the unknown cannabinoids, were associated with the production of higher levels of CBD.

And that wasn’t even their goal, nor their primary finding. Authors E.M. Mudge, S.J. Murch, and P.N. Brown set out to test the hypothesis that the distinct effects of cannabis strains are not tied to just their THC or CBD content alone — nor the ratio of the two — but that the spectrum of possible effects is much wider than believed. Their findings confirmed this hypothesis and also indicated that breeding cannabis over the years specifically for THC has harmed the plant’s diversity in a condition known as “Domestication Syndrome.”

The research showed that there was a lack of diversity in the cannabinoid content of strains bred to be high-THC alone. In fact, strains with greater than 20% THC seemed to have completely lost the chemical pathways that produce CBD. There also seemed to be fewer of the unidentified cannabinoids in the THC-rich strains, indicating that it may not just be CBD production pathways that those plants have lost.

Ultimately, researchers found that most strains sampled in the study were closely related and that it’s too limited of a process to focus on one or even two single cannabinoids in an attempt to classify strains by their effect — in other words, CBD and THC are only one small part of the puzzle.

Researchers said that further research is needed to understand what the unknown cannabinoids are and how they shape the effects of cannabis.

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New Jersey MMJ Expansions Stalled By Too Many Applications

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The New Jersey Department of Health (DOH) announced it will not meet a deadline to award the state’s second wave of dispensary licenses by November 1, NJ.com reports.

Gov. Phil Murphy called for a doubling of the number of dispensaries in the state in July, raising the total from six to 12. The Department of Health received 146 applications for the six additional licenses. The overwhelming number of applicants has staggered the DOH and caused delays in the selection process.

“Additional time is needed to complete a full review of these applications. Each of the reviewers must read more than 40,000 pages of material (each application averages 300 pages). The reviewers are working as quickly as possible, and the department will announce the successful applicants as soon as the review is complete.” — New Jersey Department of Health statement, via NJ.com

New Jersey’s medical cannabis program has been growing rapidly, with currently more than 33,000 patients enrolled. The state has committed to expanding the program alongside enrollment but it is falling behind quickly. Even with the previous Nov. 1, the extra cannabis products were not expected to hit the market until the spring of 2019 — now it may be even later.

New Jersey is doing its best to meet interim demand. The state has authorized the existing six dispensaries to open satellite locations across the state. The state has also started attempting to alter regulations to change the structure of the medical cannabis program to allow for separate licenses for growing, processing and retailing. Currently, growing and retailing are one license.

The state is expected to issue even more licenses in coming months, once the current six up for consideration have been awarded. It’s unclear how the delay in approving the Nov. 1 licenses will affect that plan.

New Jersey is also considering full adult-use legalization, which may be voted on as early as October 29th, according to state Senate President Stephen Sweeney.

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Corn Farmer Swaps Crops, Plants First ‘Minnesota Hemp Maze’

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With Halloween just around the corner and other autumn festivities now in full swing, Minnesota farmer Ted Galaty has decided to replace the corn in his annual, four-acre corn maze with hemp plants, the Post Bulletin reports.

“Everybody’s seen a corn maze. I wanted to do something different,” said Galaty, who also runs the Fright Farm, a haunted attraction in Maplewood, Minnesota.

Galaty said he decided to swap this year from corn to hemp because corn was more expensive, getting costlier, and year after year of growing the crop was starting to deplete his field’s soil.

“Not rotating was depleting the soil. I’m just putting more and more fertilizer, more and more spray on my crop. …It’s amazing what can be done with hemp and what it does for your soil at the same time.” — Ted Galaty, Minnesota hemp farmer, via the Post Bulletin

The first annual hemp maze officially opened for business on September 22 — since then, some 300 visitors have come to the maze, which has already covered the cost of buying and planting the hemp seeds.

Galaty said this year’s hemp maze will ultimately stay in the ground, but by next fall he hopes to have equipment and buyers in place to process the crop after the maze attraction closes for the year.

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NHL to Maintain Cannabis-Friendly Policy

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The National Hockey League (NHL) will maintain it’s neutral stance on pro players’ cannabis use after legalization takes effect across Canada this Wednesday, according to a Yahoo Sports report.

Many professional hockey players report using cannabis medicinally to avoid using opiate-based painkillers; in Canada, medical cannabis is a federally regulated substance that anyone with a doctor’s recommendation can access.

Under the league’s current rules, players are not at all punished if they test positive for cannabis use; Commissioner Gary Bettman said that the NHL has no intention to change that policy.

”The Substance Abuse & Behavioral Health Program for decades has been educating players on using drugs, legal or illegal. That process will continue and we will consider what changes, if any, in our program have to be made. But right now, we think based on the educational level and what we do test for and how we test, at least for the time being, we’re comfortable with where we are.” — NHL Commissioner Gary Bettman, via Yahoo Sports

If anything, the biggest concern for some NHL officials appears to be that players are properly educated about the potential effects and benefits of cannabis use.

”What we feel was an important element is at least educating the players better on the current marijuana landscape both from a legal and illegal perspective and what’s permitted and not permitted,” Deputy Commissioner Bill Daly told Yahoo Sports. ”But also, ‘What are the products out there?’ Because there’s probably publicly a great misconception of what marijuana is, how it’s used, what it’s used for to what the reality is.”

 

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Trump Team Planning Federal Cannabis Reforms

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The Trump Administration plans to address federal cannabis reforms after the midterm elections, Sen. Dana Rohrabacher (R-California) told FOX Business this week.

Sen. Rohrabacher said the White House gave “a solid commitment” to address the issue. He didn’t specify how far the reforms might go — whether it could be as far as rescheduling or even descheduling the cannabis plant, for example — but, Sen. Rohrabacher noted, President Trump said on the campaign trail that he was in favor of federally legalizing medical cannabis and leaving adult-use legalization up to individual states to decide.

“I have been talking to people inside the White House who know and inside the president’s entourage… I have talked to them at length. I have been reassured that the president intends on keeping his campaign promise.” — Sen. Rohrabacher, in an interview with FOX Business

“I would expect after the election we will sit down and we’ll start hammering out something that is specific and real,” said Sen. Rohrabacher.

Sen. Rohrabacher — who has served in the House for nearly 30 years — is considered one of the more cannabis-friendly members of Congress. Democrats, however, have targeted his seat in this year’s midterms as a potential weak point for Democrats to retake the House of Representatives.

Since his election, President Trump has largely steered clear of the cannabis issue, though he told Colorado Sen. Cory Gardener (R) in April that he would support federalism-based legislation to protect states who choose to legalize or otherwise reform cannabis laws.

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London, UK

United Kingdom MMJ Legalization Takes Effect Next Month

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Doctors in the United Kingdom will soon be allowed to prescribe medical cannabis to patients with an exceptional need, according to a New York Times report.

Starting on November 1st, specialist clinicians in England, Wales and Scotland will be able to prescribe cannabis-based medicines. General practitioners will not be able to prescribe medical cannabis. Also, a requirement for prescription of cannabis is that there be no existing licensed pharmaceutical product designed to treat the illness.

The policy change was enacted by Home Secretary Sajid Javid.

“Having been moved by heartbreaking cases involving sick children, it was important to me that we took swift action to help those who can benefit from medicinal cannabis.” — Home Secretary Sajid Javid, via the New York Times

The change was driven by two high-visibility cases where epileptic children were denied the seizure medicine they needed. Those children were given special, temporary licenses to consume cannabis-based medicines while the government reviewed its standing policy on medical cannabis. Now, on a case-by-case basis, others can receive the same medicines.

The office of the Home Secretary was clear, however, that penalties for unauthorized possession or distribution remain in place and will continue to be enforced.

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MedMen

MedMen Acquires PharmaCann for $682 Million

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Cannabis dispensary brand MedMen acquired dispensary chain PharmaCann in a $682 million stock transaction on Thursday, according to Business Insider.

It is the largest acquisition yet in the U.S. cannabis industry.

“This is a transformative acquisition that will create the largest US cannabis company in the world’s largest cannabis market. This would not have been possible even two years ago and is a testament to how far both the industry and these two companies have evolved.” — MedMen CEO Adam Bierman, via Business Insider

MedMen already operates 14 dispensaries in California, Nevada and New York — often in landmark locations, such as Fifth Avenue in New York City and on the Las Vegas Strip. With the acquisition of PharmaCann, they now have possession of dispensaries—and more importantly, licenses — around the Midwest, including Illinois and Michigan. Combined, MedMen now has access to 79 licenses: 66 retail and 13 cultivation, in 12 states.

MedMen is traded publicly on the Canadian Securities Exchange as MMEN. In the single day since the announcement, company stock has risen more than 15 percent.

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Washington Cannabis Industry Unites Against Candy Ban

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The Washington State Liquor and Cannabis Board passed sudden rules recently banning infused hard candy, tarts, fruit chews, jellies, and other gummy style products.

The Board insisted all retail shops must be clear of the banned products by April 3, 2019. According to the LCB, the products were banned for being particularly attractive to children.

In a show of solidarity opposing the ban, top-ranking members from three major Washington cannabis advocacy organizations released a joint statement vigorously opposing the ban. The statement, issued by Washington CannaBusiness Association Executive Director Vicki Christophersen, The Cannabis Alliance Executive Director Lara Kaminsky, and the Cannabis Organization of Retail Establishments Executive Director Brooke Davies, is the first of its kind for the state.

“The Washington cannabis industry is and always has been committed to keeping cannabis products out of the hands of children, a fundamental expectation of the public and the most foundational element of the law. Our members have a successful track record of working with lawmakers, regulators and the public to build a successful cannabis industry that creates jobs and upholds rules that protect children. Given our history of cooperation and collaboration with the LCB, we were surprised and disappointed by the LCB’s abrupt, unilateral decision to ban previously LCB-approved cannabis infused sweetened products.” — Excerpt from Washington advocacy groups’ joint statement

The statement concludes by citing a study by the Washington State Policy Institute — the state legislature’s think tank — which found there was no increase in cannabis use among Washington youth since adult-use cannabis was legalized.

According to that study, “Pot use by students in [Grades 6, 8, 10 and 12] was stable or has fallen slightly since I-502 was enacted.”

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US Border Patrol Updates Lifetime Ban Policy

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The U.S. Customs and Border Protection Agency (CBP) has announced that Canadians who work in the legal cannabis industry will generally be allowed to enter the United States.

However, cannabis industry workers will not be allowed if they are coming to the U.S. on an industry-related visit.

“A Canadian citizen working in or facilitating the proliferation of the legal marijuana industry in Canada, coming to the U.S. for reasons unrelated to the marijuana industry will generally be admissible to the U.S. however, if a traveler is found to be coming to the U.S. for reason related to the marijuana industry, they may be deemed inadmissible. … CBP officers are the nation’s first line of defense in preventing the illegal importation of narcotics, including marijuana. U.S. federal law prohibits the importation of marijuana and CBP officers will continue to enforce that law.” — Excerpt from CBP statement posted online

Previously, Canadians faced a lifetime ban to the U.S. if they admitted to working — whether as an entrepreneur, investor, or employee — in the cannabis space.

The CBP is a federal U.S. agency, meaning that, even in the northern border states that have legal cannabis (Washington and Maine), border patrol officers are required to act upon and enforce federal law.

“I think this is a best-case scenario,” Len Saunders, an immigration lawyer in Blaine, Washington, told Global News.

“It should make the Canadian government a lot more comfortable knowing that Canadians doing this in Canada won’t be denied entry,” said Saunders. “It still tells Canadians they can’t get involved with the U.S. cannabis industry, and a lot of these big companies will be, but at least it protects Canadians doing it legally in Canada.”

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Facebook

Facebook Will Show Cannabis Search Results Again

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Facebook said that it has ended its behind-the-scenes ban of search results for cannabis-related terms, MarketWatch reports.

Facebook had shadow-banned any search results that included the terms cannabis or marijuana. The ban was established silently, without informing users or pages that may be affected. First noticed at the beginning of August, the ban had extended to not just posts but also business pages, events, and even government offices who had been tasked with regulating legal cannabis industries.

Facebook now claims the ban was to prevent people from selling cannabis via their platform.

“We are constantly working to improve our search results so that we minimize the opportunity for people to attempt illicit drug sales while showing content that is allowed on Facebook and is relevant to what you are searching. When searching ‘cannabis’ or ‘marijuana,’ Pages that have been verified for authenticity will now be included in search results.” — Sarah Pollack, spokesperson for Facebook, via MarketWatch

Facebook now requires any pages displayed in searches for cannabis content to be verified. There are two tiers of verification available — blue and gray. Blue verification markers are designated for major brands, media companies, and public figures. Gray verification, however, can be obtained by nearly any page with a public phone number, after a brief vetting process.

The spokesperson for Facebook said the company will continue to evolve its strategies for policing content on the platform. More changes to search results are expected, especially for non-page items like videos.

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Off-Duty Ottawa Police Can Smoke Cannabis, Officials Announce

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Off-duty police officers in Ottawa, Ontario will be allowed to smoke cannabis as long as they are “fit for duty” by their shift, OttawaMatters reports.

“We feel that this is the best approach … respecting the fact that it’s a legal product. [But] an officer needs to be fit for duty, regardless of what he or she may be doing off-duty that is legal.” — Police Chief Charles Bordeleau, via OttawaMatters

Chief Bordeleau said department policy doesn’t specify a minimum amount of time between an officer’s cannabis use and when they’re allowed to show up for work, but he said “fit for duty” is a defined term. Many other police departments in Ontario — and police in Vancouver, British Columbia, as well — will mirror the capital’s policy, Bordeleau said.

Some departments, however, have opted for a hard line approach. Both Toronto police and the Royal Canadian Mounted Police (RCMP), for example, are considering a ban on cannabis use for officers within 28 days of their next shift, the National Post reports. In Calgary, nearly all law enforcement officers will be forbidden from using cannabis, even during off-duty downtime.

Workplaces throughout the country are grappling with updated cannabis use policies as Legalization Day approaches. Adult-use cannabis becomes legal in Canada on Wednesday, October 17.

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Oklahoma City

Oklahoma Approves MMJ Testing Standards

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Lawmakers in an Oklahoma legislative working group focused on regulations for the state’s voter-approved medical cannabis program have come to an agreement on testing standards for cannabis, according to an Oklahoma News 4 report.

The latest testing standards include tests for THC and CBD potency, moisture content, residual pesticides, and heavy metals. All products sold in the state must be labeled with the strain and test results. The new requirements will go into effect May 15, 2019.

Products, however, may reach dispensary shelves before that time.

“Before these lab tests are put in place, any marijuana you buy in the state of Oklahoma is very much ‘use at your own risk’. It very easily could have contaminants. It could have heavy metals. It could really harm you.” — State Sen. Greg McCortney, via Oklahoma News 4

Oklahoma has struggled to reach a consensus on many medical cannabis issues after a successful ballot initiative pushed the state government into developing a program. At first, there was interference from both Gov. Mary Fallin and the state Board of Health — ultimately, their efforts were thwarted by the state Attorney General.

Medical cannabis advocates say they are satisfied with the rules and progress. Next, the rules will require approval from the state Board of Health.

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FDA Calls for Public Comment on Cannabis Rescheduling

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FDA officials have put out a call for public comment about the potential rescheduling of cannabis and several other substances.

The feds want specifically to hear about the substances’ “abuse potential, actual abuse, medical usefulness, trafficking, and impact of scheduling changes on availability for medical use.”

First reported for Forbes by cannabis reporter Tom Angell, the notice was posted early Wednesday morning.

All comment submissions are due by October 31 — submissions can be made online via the FDA website or written statements can be mailed to the agency. 

The comment period was prompted by a call from the World Health Organization (WHO) for input regarding drug laws and potentially updating international drug treaties that bar nations from legalizing certain drugs — treaties that were championed by the U.S. government during the heyday of the drug war. Uruguay and Canada have both taken steps to federally legalize cannabis but, so far, the international community has not taken significant action against them.

Last week, reports surfaced that the FDA had called for the complete descheduling of CBD — the non-psychoactive cannabinoid most commonly associated with pain relief and epilepsy medication — but DEA pushback resulted in a Schedule 5 classification for only FDA-approved drugs.

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Walmart Eyes Entry Into Canada’s Legal Cannabis Market

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The Canadian branch of Walmart Inc. is considering the pending national cannabis market as a potential new revenue source, Bloomberg reports.

Specifically, Walmart — similar to Coca-Cola and several large beer manufacturers — is attracted to the industry by the proliferation of CBD products. Spokesperson Diane Medeiros said the company was looking at the CBD market but has not yet committed to carrying any CBD products and has no plans to dispense medical cannabis out of Walmart pharmacies.

“As we would for any new industry, Walmart Canada has done some preliminary fact-finding on this issue, but we do not have plans to carry CBD products at this time.” — Diane Medeiros, spokesperson for Walmart Inc., in an email to Bloomberg

The corporate interest in CBD has boomed since Canada announced its path to a fully legal market, but Walmart is not the first corporate retailer to eye the cannabis space.

Canada’s Shoppers Drug Mart, a retail pharmacy chain headquartered in Toronto that has gone all-in on the cannabis space, has already received a license from Health Canada to distribute medical cannabis products and has inked deals to stock their shelves with cannabis products from three different licensed producers.

Legalization takes effect across the country next Wednesday, October 17. Shoppers who want to visit a cannabis dispensary on Day 1, however, should expect long lines and limited product availability until the marketplace matures.

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Pennsylvania Capital

Pennsylvania Decriminalization Bill Passes Committee

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A bill to decriminalize small amounts of cannabis has passed the Pennsylvania state House Judiciary Committee, CBS reports.

The bill changes the penalties for those caught with under 30 grams of cannabis. Currently, such possession is a low-grade misdemeanor that would be a nearly permanent fixture on someone’s criminal record. The decriminalization bill would change that penalty to a summary offense similar to a traffic ticket, which carries a fine of up to $300.

The next milestone for the bill will be passing the state House and Senate. The good news is that — if the bill reaches Gov. Tom Wolf’s (D) desk to be signed or vetoed — Gov. Wolf has previously come out in favor of decriminalizing cannabis on Twitter.

Both Philadelphia and Pittsburgh in Pennsylvania have decriminalized possession within city limits — Philadelphia in 2014 and Pittsburgh in 2015. Through 2017, cannabis arrests in Philadelphia declined 75 percent.

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Vancouver, Canada

British Columbia Finalizes Legal Cannabis Rules

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British Columbia, Canada has established rules for the licensing of private cannabis stores, determined places to consume the plant, and set fines for cannabis-related infractions to prepare for next week’s Legalization Day, according to a Times Colonist report.

The province’s new rules ban the smoking or vaping of cannabis in parks, near schools, in vehicles (including boats), inside public buildings, and fewer than six meters from any doorway, window, or air intake.

Exceptions to these rules are allowed for people with medical prescriptions requiring consumption in a place like a school, with permission from the administration and proof of prescription. Mobile homes have been given a loophole, as well.

Officials set the fine for smoking in a forbidden location at $230, but it’s just $58 if you’re vaping.

Fines for breaking any cannabis marketing rules carry a $100,000 penalty for corporations and up to 12 months in jail for individuals. Retailing cannabis without a license — or selling improperly sourced cannabis — could cost violators $15,000 and a possible 15-day retail license suspension.

B.C. will also feature privately owned stores with strict record-keeping rules. The approval process for the first private stores is still underway. The only place to buy retail cannabis in B.C. on Legalization Day will be a single government-run store in Kamloops. More than 100 private retailers have applied for licenses but bureaucrats with the province said they’re not likely to approve any until after the next municipal election on Oct. 20.

B.C. will take a 15 percent cut of cannabis sales in the province. This stacks on top of other government taxes — a five percent federal tax, a seven percent provincial sales tax, and a 2.3 percent regulatory fee from Health Canada. Making the markup on cannabis nearly 30% just for taxes.

The provincial government is looking at legalization as a work in progress and expects changes and hiccups. For example, the province has not yet addressed issues like social consumption spaces and workplace impairment rules for civil servants.

Former B.C. health minister and now cannabis company V.P. Terry Lake said he expects a maturation process of three to five years.

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Canadian flag

Limited Places to Buy Cannabis On Legalization Day in Canada

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There will be few places to buy cannabis in Canada on the first day of legal sales on October 17, as well as shortages of cannabis itself, Bloomberg reports.

There are few retail dispensaries across Canada that have been approved and completed the final steps necessary to open — there will be just one shop in British Columbia at launch, for instance; none in Ontario, Canada’s most populous province; and only a few dozen across the great expanses of Quebec, Nova Scotia, Saskatchewan and Alberta.

There will also be product shortages, experts predict. Demand for cannabis flower at launch was estimated by the University of Waterloo at 610 metric tons, but there is currently only 210 tons worth of production means. Some speculate the lax pace at which provinces have licensed dispensaries is due to this shortfall, which removes any hurry to provide locations to purchase cannabis products.

But many have placed the roll-out issues squarely on the government. Canada didn’t announce formally the date of first sales until mid-summer, leaving business owners scrambling to meet the necessary licensing steps, fund operations, and train employees. Ontario Premier Doug Ford even delayed the rollout of retail stores completely until next year, only providing cannabis for the province via the government-run, online store.

Mike Gorenstein, CEO of Cronos Group Inc. — one of the largest cannabis producers in Canada — called the first year of sales a “soft launch.” Newcomers to cannabis will probably have to wait until spring of next year before there is a smoothly-operating supply chain.

In the meantime, the illicit market is expected to satisfy the remaining demand.

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