Page 273 – Ganjapreneur.com

DEA Calls for Fewer Opioids, More Cannabis In 2019

8/17/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

The Justice Department and Drug Enforcement Agency announced in a news release yesterday the agencies’ new goal for 2019: to reduce production of the nation’s six most frequently abused opioids by an average of ten percent.

Additionally, according to a Tom Angell Forbes report, the DEA will call for the quintupling of research-grade cannabis next year, from about 1,000 pounds in 2018 to more than 5,400 in 2019. Angell first reported this development on Thursday, citing a yet unpublished Federal Register filing set.

The pharmaceuticals specifically identified by the DEA were oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl. U.S. Attorney General Jeff Sessions and other DOJ officials said these reductions were a part of President Trump’s plan to reduce opioid prescription rates by one-third in three years.

“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day. This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.” — Uttam Dhillon, Acting Administrator for the DEA, in the press release

Meanwhile, medical cannabis advocates argue that the plant could be utilized in the efforts to reduce the average Americans’ opioid intake. Studies show that opioid overdose rates consistently drop in states where medical cannabis is available for chronic and/or severe pain.

Currently, the federal government allows only one entity to grow cannabis for research purposes, and that’s a farm at the University of Mississippi. Other interested parties have since applied to grow research-grade cannabis, but AG Sessions has so far hindered the application process. This uptick in research-grade cannabis levels for 2019, however, could mean that Sessions’ not-too-subtle efforts to block cannabis research could be ending and new organizations could be federally licensed to grow cannabis in the near future.

Members of the public will have a 30-day comment period when the new cannabis quota is officially released.

End

Coworkers Become Enemies As Cannabis Consultants Feud In Cutthroat Market

8/17/2018

a word from our sponsors:

become a sponsor

advertisement

The CEO of SIVA Enterprises has filed suit against start-up Cirrata and five executives in that company, previously employed at SIVA, over alleged civil and criminal acts committed in a supposed effort to undermine SIVA’s business, Marijuana Business Daily reports. Avis Bulbulyan of SIVA is pitting himself against Lance Ott, Steve Baghoomian, David Yeager, Colton Lasater and Charles Christopher of Cirrata.

“I’m going absolutely every single step all the way to the very end – every last penny I’ve got, every last nickel I’ve got. This is going all the way to the end. I want my day. To me, my reputation is absolutely everything. I won’t change it for any dollar amount.” — Avis Bulbulyan to Marijuana Business Daily

Neither plaintiff nor defendants seem interested in a settlement, though most suits of this nature tend to be settled out of court.

“I have no interest in settling this whatsoever … If it goes to trial, it goes to trial. The scope of what you’re going to see coming out – this stretches the entire gamut. This is going to look like a bad episode of [CBS’s] ‘American Greed.'” — Steve Baghoomian to Marijuana Business Daily

The five defendants in the case were all hired on at SIVA in October of 2017 and worked there until they began to leave or be terminated in late winter and early spring of 2018. Lance Ott, former CEO of Washington-based Guardian Data Systems, has known Bulbulyan as a friend since 2014. Both Bulbulyan and Ott are members of the LA Cannabis Task Force’s regulatory advisory board.

The suit alleges that, while employed at SIVA, the defendants began conspiring to steal clients and intellectual property. Bulbulyan’s filing alleges that Ott, Baghoomian, and Yaeger decided to form Cirrata as early as January and even searched for new office space during that time frame. Shortly thereafter, the defendants are alleged to have started cutting Bulbulyan out of inter-office communications, as revealed by a few undeleted emails discovered by Bulbulyan.

Between March 23 and April 2, all five had either resigned or been terminated from SIVA Enterprises. Cirrata was incorporated officially on April 12 — Cirrata’s website domain, however, was registered on March 12th, while the defendants were still corporate officers of SIVA. Other details are revealed in the suit, including alleged defamation on several corporate review websites. Most importantly, Bulbulyan claims the defendants violated California criminal laws regarding illegal computer access and data theft; violations that carry a prison sentence if convicted.

Among the defendants, only Steve Baghoomian has commented on the suit so far, telling Marijuana Business Daily the suit is baseless and countering that he and the other defendants would disclose illegal activity at SIVA should the suit go to court. Baghoomian said he was actually terminated from SIVA when he brought these worries about criminal activity to Bulbulyan’s attention.

The battle between SIVA and Cirrata is a clear sign of how competitive the legal cannabis markets have become as they develop. Should the case go to court, it could take 12-18 months before a ruling is made.

End

Louisiana Plants First Cannabis Crop After Months of Regulatory Issues

8/17/2018

a word from our sponsors:

become a sponsor

advertisement

Louisiana’s first legal cannabis crop will be planted today after the grower, GB Sciences, and state regulators finally reached an agreement on operations, according to a News Star report. The first crop will be grown in a temporary “exterior pod” custom-built by GB Sciences to meet stringent state regulations. GB Sciences must still obtain approval from Agriculture Commissioner Mike Strain to begin full interior production at its facility in Baton Rouge.

“Based upon a very productive meeting with Dr. Strain and the thorough attention to detail from his team we believe we can move forward with production on Friday. … I’m very appreciative of Dr. Strain’s engagement in the process.” — John Davis, President of GB Sciences, in the report

John Davis of GB Sciences, his team and the owners of the state’s nine medical cannabis pharmacies have expressed frustration with the difficulties in achieving regulatory approval of late. Original approval was slated to be given nearly two months ago but there have been a number of bureaucratic and “letter of the law” difficulties.

“It’s become pretty frustrating and illustrates the pace of government and the pace of business operate at two separate speeds. We really need to get moving.” –Greg Morrison, owner of a medical cannabis pharmacy in West Monroe, via The News Star

The first crop is expected to be harvested in November. Cannabis is only allowed to be prescribed in Louisiana as a pill or oil. The “exterior pod” will contain all cannabis from seed to packaged product.

End

Poll: 24% of Young Adults In America Consume Cannabis

8/16/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

The latest Gallup poll has found that nearly 25 percent of young Americans (aged 18 to 29) are admitted cannabis users — this is about double the rate of the rest of the population, of which 13 percent say they “regularly” or “occasionally” use and/or smoke cannabis.

Cannabis usage rates could be on the rise, because — according to the pollsters — this data “is on par” with the average 22 percent of young adults who said across three surveys from 2015 to 2017 that they smoked cannabis.

The other age brackets are consistently less likely to be cannabis users as their ages increase:

13 percent of adults aged 30-49
11 percent of adults aged 50-64
Just 6 percent of adults who are 65 or older

Cannabis use is not only most prevalent among 18- to 29-year-olds but it is also much more common in the West, where all the coastal states in the continental U.S., including Alaska, have legalized adult-use cannabis.

The poll data was collected during telephone calls placed July 1 to July 11, 2018, to a random sample of 1,033 adults, aged 18 and older.

Cannabis is legal for adult use in nine states plus Washington D.C. and more than 30 states have established some sort of medical cannabis reforms.

End

Mormon Campaign Attempts to Block Utah MMJ Ballot Measure

8/16/2018

a word from our sponsors:

become a sponsor

advertisement

Members of a campaign funded by Mormon attorney Walter J. Plumb filed a lawsuit in Utah state court on Wednesday in an attempt to remove a measure legalizing medical cannabis from the November ballot, according to a Salt Lake Tribune report. The ballot measure would legalize cannabis use for only specific chronic illnesses like cancer and HIV, among others. Wednesday’s lawsuit is the second attempt by the campaign to remove the measure from the ballot.

The filing indicates the measure would “violate the religious beliefs” of Plumb, whose “religious beliefs include a strict adherence to a code of health which precludes the consumption and possession of mind-altering drugs, substances, and chemicals, which includes cannabis and its various derivatives.”

The deeper issue taken up by the lawsuit seems to be a detail of the ballot measure that prevents landlords from discriminating against medical cannabis cardholders. The Plumb campaign and the Church of Latter-day Saints both believe Mormon landlords should be allowed to discriminate against cardholders if desired.

“In the United States of America, members of all religions, including the Church of Jesus Christ of Latter Day Saints have a constitutional right to exercise their religious beliefs. This includes the right not to consort with, be around, or do business with people engaging in activities which their religion finds repugnant.” — Excerpt from the filing

Proponents of the medical cannabis legalization campaign called the lawsuit a “wacky attempt” to derail the initiative. The movement’s director issued the statement:

“These groups should be ashamed of themselves for calling sick and afflicted patients morally repugnant in their latest lawsuit.” — DJ Schanz, director for the Utah Patients Coalition

End

California Cannabis Taxes Generate $74 Million in 2nd Quarter

8/16/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

California’s cannabis tax numbers are in for the second quarter of 2018 and the numbers suggest the market is trending toward compliance, despite the market’s rocky start.

Tax revenue from the cannabis industry totaled $74,240,257 from April 1, 2018, through June 30, 2018, which includes state cultivation [$4.5 million], excise [$43 .5 million] and sales taxes [$26.3 million]. It does not include tax revenue collected by each jurisdiction. — Excerpt from a California Department of Tax and Fee Administration news release

In contrast, the state’s first quarter cannabis tax total was $60.9 million ($32 million in excise taxes, $1.6 million in cultivation taxes, and $27.3 million in sales taxes). Medical cannabis is not taxed in California.

In the release, the California Dept. of Tax and Fee Administration also announced “a new satellite location” to assist taxpayers in/around Humboldt County, an external tax advisory group for the cannabis industry, a new pilot project for visiting and educating cannabis retailers about compliance with their state tax obligations, and announced new procedures and security measures for financial transactions.

A study released earlier this month by Eaze Solutions, Inc. found that 18 percent of California cannabis consumers are making purchases on the illicit marketplace. A majority of such consumers said they were driven from the legal market by high taxes and a lack of consistency under the new regulations.

End

Ontario Delays Launch of Private Cannabis Stores Until 2019

8/16/2018

a word from our sponsors:

become a sponsor

advertisement

On Monday, Ontario’s government announced that it would start legal cannabis sales as online-only when it becomes legal on Oct. 17 and would delay brick and mortar sales until April of 2019, Bloomberg reports.

In the meantime, Ontario has partnered with Shopify to provide a government-run, online-only platform for the sale of legal cannabis. Once private brick and mortar cannabis shops open in April, that same platform will handle wholesale distribution as well.

This change is an official rolling back of the previous Liberal government’s plan, which would have seen cannabis distributed via 40 government-run shops by the end of 2018.

“Implementing this new approach will take time. We have to get this right and we will not be rushed.” — Vic Fedeli, Finance Minister for Ontario, via Bloomberg

Canaccord Genuity analyst Matt Bottomley said the move may cause a drag in sales growth if cannabis is only available online. He said there likely remain some unknown bumps in the road ahead and that a delay of just six months is optimistic.

“I’m a little suspect on these stores being open April, but maybe the first batch will be open then.” — Matt Bottomley, analyst for Canaccord Genuity, via Bloomberg

Following the announcement, all publicly-traded cannabis stocks took a hit, some nearly 10 percent.

End

Researchers Pioneer New Cannabis Extraction Method Using An Espresso Machine

8/15/2018

a word from our sponsors:

become a sponsor

advertisement

In a study to be published in The International Journal of Pure and Applied Analytical Chemistry, researchers have revealed that it is possible to use a hard-cap espresso machine to create cannabis extracts. The team of researchers made the extracts, meant to be used for analysis, with a common laboratory solvent and a $300 espresso machine.

The study was conducted by researchers from the University of Valencia in Spain using cannabis that had been seized by law enforcement.

“It has been evidenced that the developed method for the major cannabinoids extraction is a really encouraging example of the wide range of possibilities that a conventional and low cost hard cap espresso assisted extraction could offer in analytical laboratories.” — Excerpt from the study “Fast extraction of cannabinoids in marijuana samples by using hard-cap espresso machines”

Researchers compared extractions of THC, CBD and CBN made with the espresso machine and the solvent 2-propanol to a more traditional ultrasound-assisted extraction using both gas chromatography and ion mobility spectrometry. The method was comparable in accuracy and more importantly, vastly cheaper and faster.

This method of extraction could be used in a laboratory setting but deserves more experimentation to see how else it may be employed. Researchers in a variety of chemical fields have lately been using hard-cap espresso extraction (HCEE) to obtain samples for analysis.

End

Alcohol Distributor Constellation Brands Makes $4 Billion Cannabis Investment

8/15/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

Constellation Brands, the brewer of Corona beer and a major distributor for Svedka vodka, just invested nearly $4 billion (CAD $5 billion) into Canada’s Canopy Growth, Marketwatch reports. It is the largest investment ever in the cannabis industry.

After news of the announcement broke, Canopy Growth — which is publicly listed on both the New York and Toronto stock exchanges — saw its share values skyrocket up almost 30 percent across both stock exchanges.

Constellation Brands first partnered with Canopy Growth in October 2017, when the alcohol giant agreed to buy a 9.9 percent stake in the company for about $191 million (CAD $245 million). But with this investment, Constellation’s stake in Canopy Growth has increased to 38 percent; there are also options on the table for Canadian cannabis producers to access an additional $3.4 billion in investments down the line, which would give Constellation more than a 50 percent stake in the company.

Wells Fargo analyst Bonnie Herzog told Marketwatch this is a smart move for Constellation Brands, as it “further solidifies Constellation Brands’ first-mover advantage” among other major brewers and alcohol companies.

“While there could be some cannibalization risk for Constellation Brands beer/alcohol portfolio, we believe the strategic partnership will ultimately be incremental to Constellation Brands’ core business, especially as the deal opens the door to tremendous white space opportunities globally – beyond Constellation Brands’ current U.S. limits with its core brands.” — Bonnie Herzog, analyst for Wells Fargo, via Marketwatch

Cannabis entrepreneurs have long predicted that Big Alcohol will dip into the cannabis space. After the bold investment by Constellation Brands, cannabis stocks seemed to enjoy a slight increase across the board on Wednesday, as the move signals a willingness among major alcohol companies and other players to make big investments — and take big risks — on the burgeoning cannabis industry.

“These alcohol and tobacco companies are starting to better understand the cannabis industry and the opportunity for large scale growth. Mood modifying beverages for socialization is a natural segway for their businesses. As people continue to move toward a more healthy lifestyle and recognize some of the negative effects that alcohol may have on the body, I think we are only going to see this trend continue and get stronger.” — Beth Stavola, president and founder of MPX Bioceutical Corp., in a statement

End

UN to Review Cannabis’ Status Under International Law

8/14/2018

a word from our sponsors:

become a sponsor

advertisement

In November, the United Nations will perform a deep review of cannabis’ scheduling status under the 1962 Single Convention treaty, which coordinates international drug laws, reports Marijuana Moment‘s Tom Angell.

The UN World Health Organization’s Expert Committee on Drug Dependence found in a pre-review in June that there was sufficient scientific evidence to support a full critical review of cannabis’ status, the first part of a multi-step review process. The review will consider cannabis from multiple scientific viewpoints with epidemiological and pharmacological analyses.

“Thankfully the World Health Organization has accepted the challenge of evaluating the placement of cannabis in the 1962 Single Convention treaty. Cannabis placement in the treaty was done in the absence of scientific evaluation and has provided the basis for a moral campaign against drugs by the USA for many decades. Since our work on medical access to cannabis has been based upon scientific inquiry we know that any rational assessment of the evidence leads the observer to understand cannabis indeed has proven medicinal value and, compared to other medicines, has profoundly fewer negative side effects.” — Michael Krawitz of Veterans for Medical Cannabis Access, via Marijuana Moment

If the UN decides to reschedule cannabis, this would trigger a U.S. review of the plant’s scheduling. After the full review in November, UN Secretary-General Antonio Guterres will receive the committee’s report and bring the issue to the UN floor.

Guterres was prime minister of Portugal in 2001 when the country decriminalized the possession of small amounts of all drugs.

End

Health Canada Expands Industrial Hemp Rules to Allow Full-Plant Harvests

8/14/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

Canadian hemp growers can now harvest the entire hemp plant — including its flowers, buds, and leaves — after Health Canada established new rules on August 10, Producer.com reports.

Previously, hemp farmers could only farm the plant for its seeds and fiber.

The move is expected to open access to another potentially massive source of cannabidiol (CBD), a cannabinoid found in cannabis and hemp plants that has medicinal properties but not an intoxicating effect. This will also give hemp farmers access to a medicinal products marketplace in addition to just food and textiles.

“These new parts (of hemp) are economically valuable and will provide a new source of CBD and potentially other cannabinoid products.” — The Canadian Hemp Trade Alliance, in a statement

The new rules are attached to The Cannabis Act, which will fully legalize cannabis and hemp in Canada starting October 17. The hemp harvesting rules were changed earlier to give farmers, manufacturers, and other entrepreneurs time to develop the technologies and procedures for processing hemp into CBD products.

“We need to experiment with harvest, preservation and storage technologies, and this exemption means we won’t waste a year, which would have been the case if we were unable to collect plant material until Oct. 17.” — Jeff Kostuik of Hemp Genetics International, via Producer.com

While farmers can now harvest and store all parts of the hemp plant, they cannot sell any products made from hemp flowers, buds, and leaves until after The Cannabis Act takes effect.

End

New Jersey Judge Rules Employer Can Discriminate Against MMJ Use

8/14/2018

a word from our sponsors:

become a sponsor

advertisement

A U.S. District Judge in New Jersey has ruled that an employer can indefinitely suspend an employee for his doctor-prescribed medical cannabis, The Daily Journal reports.

Ardagh Glass in Bridgeton, New Jersey did not allow medical cannabis patient Daniel Cotto Jr. to return to work after he refused a drug test. Cotto claims his employer knew about his use of medical cannabis, which was prescribed for chronic pain due to a severe neck and back injury in 2007. Cotto has provided a doctor’s note saying he is capable of operating machinery while medicated.

Cotto filed a lawsuit against Ardagh Glass which argued that, by not allowing him to return to work, the company had violated New Jersey‘s anti-discrimination laws and the Compassionate Use of Medical Marijuana Act (CUMMA), which allows Cotto to be prescribed medical cannabis.

U.S. District Judge Robert Kugler’s decision found that the point of law allowing Ardagh Glass to deny Cotto his work hinged on mandatory drug testing. Under the language of CUMMA, Kugler wrote, an employer cannot be compelled to waive a drug testing requirement.

Other judges across the nation have delivered mixed rulings regarding medical cannabis for employees, including other decisions in New Jersey. In July, a Workers’ Compensation Judge ruled that Freehold Township, New Jersey had to pay for an injured worker’s medical cannabis treatment. That ruling ran counter to the decision in Cotto v. Ardagh Glass, and more contradictory rulings can be expected until federal legalization cleans the slate.

End

Marijuana Policy Project Appoints New Executive Director

8/14/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

The Marijuana Policy Project (MPP), after months of considering qualified candidates, has hired activist Steve Hawkins to the position of executive director, the organization announced today via press release.

Hawkins has spent three decades as an advocate, policy strategist, nonprofit leader, and foundation executive in the movement for criminal justice reform. His experience in public education, stakeholder mobilization, and the engagement of government officials — as well as a knack for “developing strategic alliances with business leaders, law enforcement officials, scholars, faith leaders, victims’ advocates, and other key voices” — qualified him for the position.

“Steve has a strong track record in the field of criminal justice reform, and he knows how to build a movement toward meaningful social change. We were not only impressed by his expertise and experience, but also his strong convictions regarding the injustice of marijuana prohibition.” — Troy Dayton, chair of the MPP board of directors, in the press release

Some of Hawkins’ previous positions include the executive vice president of the NAACP and the executive director for Amnesty International.

“Throughout my career, I have witnessed the counterproductive effects of the war on marijuana and its especially devastating impact on communities of color. MPP has been at the vanguard of changing public perceptions and public policies surrounding marijuana, and I am proud to join this incredible team of advocates at such a critical moment in the movement to end marijuana prohibition.” — Steve Hawkins, Executive Director for the Marijuana Policy Project, in a statement

End

Trump Tariffs Expected to Increase Cannabis Industry Prices

8/13/2018

a word from our sponsors:

become a sponsor

advertisement

The prices of cannabis retail items like vapes, batteries, filters, cartridges, and packaging may soon increase thanks to President Trump’s proposed tariffs, Forbes reports.

The tariffs will force vape manufacturers to locate new American suppliers or be quickly out-competed by the companies that do. American-made equipment in this category is far more expensive.

The increase in prices is expected to decrease sales and tax revenues, hurting not only the private companies’ bottom lines but also the budgets of states with legal sales. Colorado logged more than $247 million in tax revenue from cannabis sales in 2017; 25 percent of those sales were in the category of cannabis vaporizers.

Other components beyond vapes — such as construction and grow equipment and even cell phones — will also increase in price.

Companies in the cannabis space are especially vulnerable to product cost increases as they are unable to deduct the usual business expenses before paying taxes due to the federal status of cannabis; those business deductions are fundamental to how the vast majority of business works in the United States.

Growers are expected to suffer the most with the tariffs because, of all operators in the cannabis space, their margins are typically the slimmest and many already struggle to make ends meet.

End

Shopify Locking Up Canadian Cannabis Market

8/13/2018

a word from our sponsors:

become a sponsor

advertisement

Online retail giant Shopify has been cutting huge deals with Canadian provinces and cannabis producers to set itself up as the largest cannabis point-of-sale and inventory management platform, reports The Motley Fool.

Shopify has signed contracts with the provinces of Ontario and British Columbia, as well as with Aurora Cannabis, Canopy Growth Corp., Hydropothecary Corp., and others. Shopify’s deal with Ontario was made direct with the government, placing Shopify squarely in the middle of the entire cannabis industry in that province, while Shopify will function as an inventory-management go-between in British Columbia, where cannabis retail will be privatized. Aurora Cannabis and Hydropothecary Corp. are expected to be the two largest producers of cannabis in Canada once the legal market is in full swing.

Shopify’s dealings in Canada may position the company for developing a first-mover advantage when cannabis becomes federally legalized in the U.S.

Shopify’s sales are expected to top $1 billion this year alone. The company’s software-as-a-service platform dominates in a wide range of markets, but its move into the cannabis space is not expected to significantly increase total revenue just yet — though analysts predict that, by 2019 or 2020, these cannabis deals may begin to contribute significant revenue to the company’s annual total.

End

Denver Mayor Says Legalization Has Benefited City

8/13/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

Despite campaigning against Colorado’s successful 2012 bid to legalize cannabis, Denver Mayor Michael B. Hancock admitted last week that the city of Denver is effectively regulating cannabis and called the industry a “success,” according to a press release.

The statement was sparked by a city report that outlines the Denver industry’s journey from medical-only to a fully operational adult-use marketplace.

Some key findings of the report:

Denver’s retail cannabis sales jumped 29% from 2016 to 2017
Tax/licensing revenue from cannabis expected to increase by 8% this year
Cannabis sales tax revenues constituted about 3.4% of Denver’s general fund revenue in 2017
From 2014-2018, more than $11 million in cannabis revenues will go to youth-serving organizations by Denver’s Offices of Children’s Affairs and Behavioral health; further funding will go to Denver’s “High Costs” youth prevention campaign
Cannabis-related crimes in 2017 made up just .30% of overall crime in Denver in 2017
Cannabis industry-related crime made up “less than ½ of 1 percent” (or .21%) in 2017

“This new report demonstrates Denver’s coordinated approach between multiple agencies to manage marijuana is working. We took on the daunting challenge of becoming the first major city in America to manage legalized recreational marijuana and we are having success. That’s because of coordination between Denver’s Excise and Licenses, Denver’s Fire Department, Police Department, Department of Public Health and Environment, Community Planning and Development, as well as our partners in other city agencies, the community from the marijuana industry and public health advocates.” — Denver Mayor Michael B. Hancock, in the press release

In 2012, Mayor Hancock came out against Colorado’s legalization amendment. At the time, he called cannabis a “gateway drug” and suggested that its legalization would detract from Colorado’s image and make the state less attractive to tourism and business interests.

End

North Dakota Legalization Initiative Approved for Nov. Ballot; MMJ Launch Likely Delayed Until 2019

8/13/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

North Dakota voters will get their chance to vote on adult-use cannabis legalization this November, according to the Associated Press.

Cannabis advocates collected and submitted more than 14,600 valid voter signatures in favor of the ballot initiative, said North Dakota Secretary of State Al Jaeger. They only needed 13,500. The proposal seeks to legalize cannabis for adults who are 21 and older and would also seal the records of anyone who had been convicted of a cannabis-related crime that would be legal under the new regulations.

Meanwhile, North Dakota’s medical cannabis law took effect in 2017 but patients have yet to get access — they haven’t even been able to apply for the program, yet — and medical cannabis products likely won’t be available until early 2019, KFYR-TV reports.

The program was expected to launch this year but now that timeline has been compromised due to holdups in building approvals for cannabis product manufacturers, said Jason Wahl, director for the Division of Medical Marijuana.

State senator John Grabinger (D, District 12) said that issues with the medical program’s implementation may actually be driving momentum for the adult-use petition.

“We could have done this much quicker and taken a cue from many other states that have already implemented it and have got the medical marijuana out there to the public that is asking for it and needs it.” — State senator John Grabinger, via KFYR-TV

End

Facebook “Shadow Bans” Cannabis-Related Pages

8/10/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

Facebook appears to be making it more difficult for its users to discover cannabis-themed companies, trade groups, regulators, and even media outlets. The practice was first reported last week by Marijuana Moment.

Facebook has been at odds with the cannabis industry for years. Despite the plant’s legal status in a growing number of states and the fact that it’s currently one of the most popular political topics among American voters, Facebook continues crack down on cannabis pages because they are at odds with federal law.

“Because of the borderless nature of our community, we try to enforce our policies as consistently as possible.” — Excerpt from Facebook’s Community Standards

Now, however, it appears that Facebook is taking a new approach and is “shadow banning” cannabis-related pages. Shadow banned pages have not been deleted but, instead, can no longer be discovered via Facebook search results. Users who have already “liked” the page will continue to see its content but new users will not be able to discover the page (or any of its posts/content) even if they search for it directly.

New York-based Rosie Mattio, who runs a PR agency that works for the cannabis industry, told Marijuana Business Daily the practice could cause financial hardships for cannabis companies — many of whom rely on their social media presence to make up for a lack of advertising options.

“While Facebook has held a pretty hard line on advertising, which cannabis companies have been dealing with for years, this a big hit to cannabis businesses and brands. A company’s social pages are as important, if not more important, than their website.” — Rosie Mattio, founder of RMPR, via Marijuana Business Daily

Historically, Facebook has focused its anti-cannabis efforts on dispensaries, growers, and other “touch-the-plant” companies. But, according to the report, the victims of Facebook’s new “shadow ban” policies now include the pages of cannabis regulators, advocacy organizations, trade groups, and even media outlets.

Perhaps most frustrating, however, is that Facebook’s new enforcement actions appear to be wildly inconsistent. For example, if you search for “National Cannabis Industry Association” or “Marijuana Policy Project” on Facebook, you’ll find no results; but if you search for the “Drug Policy Alliance,” their page pops up.

Shadow banned pages can still be found via targeted Google searches.

End

A close-up shot of a cannabis plant grown under Washington's I-502 market regulations.

Three Medical Cannabis Initiatives to Appear on Missouri Ballot

8/10/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

Missouri voters will get to choose from three different medical cannabis legalization initiatives this November, according to the Bolivar Herald Free Press. Two of the initiatives are constitutional amendments and the third is a statutory amendment.

Petition 2018-041 is a constitutional amendment that would:

Legalize and regulate the use of cannabis for medical purpose
Create licensing procedures for growers/manufacturers
Impose a 15 percent retail tax
Impose a per-ounce wholesale tax on flower products
Use funds from the taxes to establish a state research institute to investigate the medicinal benefits of cannabis.

The proposal is estimated to generate about $66 million in annual taxes and licensing fees. State officials estimated the initial implementation costs at $186,000 with annual operating costs of up to $500,000.

Petition 2018-051 is a constitutional amendment that would also codify medical cannabis into the Missouri State Constitution. It would:

legalize the use of medical cannabis and create regulations/licensing procedures for cannabis cultivators and manufacturing facilities.
Impose a 4 percent retail tax
Allocate funds from those taxes for health services for military veterans and fund the regulatory agency(s) for said medical cannabis program

It’s estimated the proposal would generate up to $18 million in annual taxes and licensing fees for state operating costs and veterans programs, and up to $6 million for local governments; approximately $7 million in annual state operating costs could be expected.

Petition 2018-271 is a statutory amendment that would amend Missouri law to:

Allow doctors to certify patients with a qualifying medical condition for the personal use and possession of medical cannabis.
Create a licensed and regulated industry for the growth, possession, production, and sale of medical cannabis.
Impose a 2 percent retail tax
Use the tax money to help fund veterans’ services, drug treatment, early childhood education, and public safety in cities with MMJ

State officials estimate the initial, one-time cost of this proposal to be $2.6 million with annual costs of up to $10 million; annual revenues should be at least $10 million. Local government officials estimate zero annual costs with at least $152,000 in annual revenues.

Missouri‘s current medical cannabis program is extraordinarily limited and exists largely in name only — it covers only epilepsy patients and allows only for hemp-derived CBD oils.

Missouri is in the minority of U.S. states without a comprehensive medical cannabis program. Earlier this year, Oklahoma became the 30th state to legalize medical cannabis.

End

Green, stylized photograph of young cannabis sativa plants.

First FDA-Approved CBD Medication to Cost More than $32,000 Per Year

8/09/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

GW Pharmaceuticals has revealed the expected consumer price for Epidiolex, the first cannabidiol-based medication to be approved by the FDA, according to a Business Insider report.

At a price tag of about $32,500 per year, it won’t be cheap, but company representatives said in a phone call with investors this week that its cost reflects that of other epilepsy medications. Patients should expect a wait time of about three weeks between when a physician prescribes the medication to when they actually receive the drug.

According to Julian Gangolli, the GW representative who is in charge of commercializing the drug in the U.S., the co-pays for Epidiolex — despite its high price tag — could ultimately be cheaper than buying hemp-derived CBD products online or CBD medication from a medical cannabis dispensary; many patients, however, are expected to continue opting into the more loosely regulated gray market.

Epidiolex was developed from cannabis but contains just the cannabinoid CBD, which, unlike THC, does not have an intoxicating effect.

For now, however, CBD remains a Schedule 1 drug with “no currently accepted medical use.” The DEA was given three months from the FDA’s approval of the drug to reschedule it to a lower category under the Controlled Substances Act.

“We don’t have a choice on that. … It (CBD) absolutely has to become Schedule 2, 3, 4, or 5.” — Barbara Carreno, public affairs officer for the DEA, via Business Insider

End

DEA, FBI Agents Raid Suspected Illegal Cannabis Growers in Colorado

8/09/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

DEA and FBI agents coordinated a massive raid early Thursday morning against more than a dozen suspected illegal cannabis grow sites throughout the Denver metro area, The Denver Post reports.

The grows were reportedly targeted for the illegal growing and distribution of cannabis across state lines.

Deanne Rueter — the DEA spokesperson in Denver, Colorado — said that the judicial warrants were the culmination of a lengthy investigation into suspected illegal drug trafficking. She said there was a heavy concentration of busts in the city of Thornton, but that police agencies in Denver, Aurora, Thornton, Commerce City, and Broomfield — as well as sheriff investigators in Jefferson and Arapahoe counties — participated in the raids.

Reuter did not disclose how many houses and/or grow sites were targeted and she said she did not know if police officers were making drug-related arrests. The situation remains an ongoing criminal investigation, she said.

This is the first major federal cannabis enforcement action in Colorado since June, 2017, when 62 people were indicted for allegedly taking part in a major illegal drug trafficking ring.

End

Medical cannabis plants housed in grow cages inside of an indoor grow.

Florida Judge Rejects Licensing Caps for MMJ Businesses

8/09/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

In an exciting twist for Florida’s medical cannabis marketplace, a Tallahassee judge ruled last week that the cap on cannabis operators imposed by state lawmakers “directly contradicts” the voter-approved constitutional amendment passed in 2016, the News Service of Florida reports.

Lawmakers added the restriction in 2017 while establishing rules and regulations for Florida’s medical cannabis regime.

“Such limits directly undermine the clear intent of the amendment, which by its language seeks to prevent arbitrary restriction on the number of MMTCs (medical marijuana treatment centers) authorized to conduct business in the state. The amendment mandates the availability and safe use of medical marijuana by qualifying patients.” — Leon County Circuit Judge Charles W. Dodson, in a written ruling

Judge Dodson continued, arguing that other restrictions added by lawmakers were also constitutional, including a rule forcing cannabis companies to vertically integrate instead of creating a cooperative marketplace with individual licenses for each activity — such as growing, manufacturing, or dispensing the product — and another rule that improperly restricts the state’s licensing process.

However, despite multiple findings that the rules established in 2017 are unconstitutional, Dodson stopped short of granting an injunction to hopeful MMJ company Florigrown, which had challenged the state after being denied a license.

But, if the ruling is upheld, this development could unlock an unlimited number of cannabis operator licenses in a state where one license has already sold for $93 million.

End

A dispensary worker presents a handful of cannabis nugs at the National Holistic Center in Washington DC.

Study: 18% of California Cannabis Consumers Buy From Illicit Market

8/08/2018

by Graham Abbott

a word from our sponsors:

become a sponsor

advertisement

In a study published today by Eaze, it was revealed that — despite living in the world’s largest legal cannabis marketplace — nearly one in five (18 percent) of California cannabis consumers have bought cannabis products on the illicit marketplace in the last three months.

The study compiled 1,750 online surveys from California, Colorado, and Eaze cannabis consumers; the surveys were conducted between July 6 and July 12.

Here are some of the study’s other key findings:

84% of individuals who have purchased on the illicit marketplace are “highly likely” to repeat that behavior
23% of those consumers say that a 5% decrease in California’s tax rate could drive them into the legal market
Most consumers who buy products via the legal marketplace (84%) say they are “very satisfied”
Consumers buying on the legal market are highly satisfied with product labeling (85%) and testing (75%)
90% of California cannabis consumers say they have a medical use for the plant
Southern California consumers are more likely to buy from a unlicensed source than Northern California consumers (21% vs 16%, respectively)

It is no secret that the launch of California‘s adult-use cannabis market has been slower than predicted. Operators in the state suggest that this is due to a wide range of issues, including local licensing delays, burdensome taxes and regulations, jurisdictional bans on the industry, and a lack of lab testing standards.

End

a word from our sponsors:

become a sponsor

advertisement

Website & branding by the Ganjapreneur in-house agency:

Uplifted cannabis industry branding & marketing.