High Times Sells Stock Direct to Investors

7/30/2018

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Using a new public offering exemption called “Regulation A,” High Times has started selling shares of its corporation direct to non-institutional investors, according to the magazine’s investor site.

High Times has been trying to go public for more than a year. In a confusing series of announcements, the company has reportedly attempted multiple routes to listing on a public exchange. Most notably, in July 2017 the High Times Holding Corporation entered into a $250 million merger deal with Origo Acquisition Corporation — but that deal is still pending. Origo obtained permission from its stockholders to extend the deadline for closing the deal in June, pushing the date to September 12th, 2018.

The goal was to begin trading under Origo’s existing public ticker symbol, ORAC. There has been speculation about whether the NASDAQ exchange would even allow the move but, as the deal has yet to close, nothing is yet proven. However, NASDAQ has voiced concerns over issues with the High Times and Origo merger and has twice attempted to remove the company from the exchange based on technicalities.

Since 2016, High Times has struggled to manage debt created during several rounds of acquisitions and mergers. The company has been focused on fundraising to meet its financial obligations since the start of the Origo deal. High Times desperately needs at least $12.7 million for an upcoming August repayment deadline for a loan taken from Ex Works Capital.

Enter the SEC’s “Regulation A” exemption. Regulation A, or Reg A, is an exemption for public offerings from companies in amounts of $50 million or less raised over one year. Reg A allows companies to sell stock directly to the public, not on an exchange. This allows non-institutional investors to essentially crowdfund a corporation, and the Reg A offering might help the company raise money quickly enough to repay Ex Works Capital.

High Times still plans to list on the NASDAQ at a later date.

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Florida’s Controversial MMJ Director Resigns

7/30/2018

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Christian Bax, Director of Florida’s Office of Medical Marijuana Use (OMMU), has resigned, the News Service of Florida reports. Bax was often blamed for delays and difficulties in awarding licenses in Florida’s young medical cannabis market.

One of Bax’s staunchest critics is John Morgan, an Orlando trial lawyer who was the primary backer of Florida’s medical cannabis constitutional amendment. Morgan was jubilant at the news of Bax’s resignation.

“He was so inept that it had to be intentional. Anyone would be better and more capable. He was to health care in Florida what Barney Fife was to law enforcement. This is a great day for the sick and injured in Florida.” — John Morgan, in an email

Some still defend Bax, however, saying it’s easy to expect hardships when developing a market from scratch that’s expected to handle $2 billion in sales. Bax’s predecessor, Patty Nelson, passed the post on to Bax due to the job’s difficulty, choosing instead to become a private consultant.

“There’s no denying it’s a hard job. It sometimes feels like an impossible job. And you face critics from every direction, which makes it difficult to navigate.” — Patty Nelson, via News Service of Forida

Taking over for Bax is the Deputy Director of the OMMU, Courtney Coppola. Coppola’s first challenge will be a fresh wave of applications for new medical cannabis licenses; more than 400 applicants are expected for just four available licenses.

To help the process, Florida legislators earlier this month approved more than $13 million in new funding.

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Michigan Gov. Tasks State Police with Investigating MMJ Bribes

7/30/2018

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Michigan Gov. Rick Snyder has tasked state police with investigating whether there are officials taking bribes from medical cannabis operators, the Detroit Free Press reported last week.

The investigation was requested by state Sen. David Knezek (D-Dearborn Heights) and was prompted by a bribery case from last year, wherein three men gave an envelope of $15,000 cash to a Garden City city council member and suggested they had another $150,000 in escrow to handle future bribes. The men hoped to secure a license to cultivate medical cannabis in the city. The envelope was turned over to the FBI and the three men were arrested, but Sen. Knezek remains concerned.

“It is deeply concerning to me that a state official may have been involved in this serious situation. If he/she accepted funds in return for government favors, the state employee would be in violation of many sections of state law.” — State Sen. David Knezek, in a letter to Gov. Snyder

Sen. Knezek told the governor that, even though the FBI has an ongoing probe into the issue, he wants state police to conduct their own investigation.

“I am aware that federal authorities don’t always communicate the details of their investigations with state officials. It is imperative that this case not slip through the cracks and go without the state looking into potential criminal wrongdoing of its own employee.” — State Sen. David Knezek, in the letter

Michigan voted to legalize medical cannabis in 2008 but it took lawmakers eight years to establish rules and regulations for the program. Though 600 applications were submitted, just seven licenses have been awarded so far. Experts predict Michigan’s medical cannabis marketplace will be worth $700 million during its first year of operation, with the state anticipating some $21 million in annual taxes.

Michigan is expected to vote on the issue of adult-use cannabis this November, which, if successful, could lead to even more explosive growth in the state’s cannabis sector. The majority of Michigan voters approve of full legalization.

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House Bill Would Allow Federal Employees to Access Legal Cannabis Markets

7/27/2018

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A bipartisan bill in the U.S. House of Representatives would, if passed, prevent the federal government from terminating employees who use cannabis within the laws of the state in which they reside, Tom Angell of Marijuana Moment reports. The bill was introduced on Thursday by Reps. Charlie Crist (D-Florida) and Drew Ferguson (R-Georgia).

The bill would protect all civilian federal employees in all federal departments and agencies using cannabis legally within the laws of their state, for either medical or recreational purposes. The bill has been referred to the House Committee on Oversight and Government Reform for debate and consideration, before hopefully being brought to the House floor for a vote.

Over three dozen cannabis amendments have been blocked in committee by Republican leaders this year. The House Rules Committee, chaired by Rep. Pete Sessions (R-Texas), has made a project of blocking all cannabis amendments brought forward since Rep. Sessions took control. Supporters of cannabis law reform hope that Rep. Sessions will be voted out of office during the midterm elections in November.

End

California Vape Cartridge Company Issues Industry’s First Cannabis Product Recall

7/27/2018

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The Bloom Brand — a manufacturer of cannabis vape cartridges, disposable vape pens, and oil infusions — and its distributor, Greenfield Organix 4th St., voluntarily issued the California cannabis industry’s first product recall on Wednesday; the alert was posted on The Bloom Brand’s company website.

The recall was issued for Bloom products containing cannabis Batch Number B-180504, which was sold in nearly 100 retailers throughout California between July 1 and July 19. The products being recalled are:

  • BloomVape 0.5g
  • BloomVape 1g
  • BloomOne Disposable 300mg
  • BloomDrop 800mg

“Batch Number B-180504 contains the pesticide Myclobutanil and does not comply with the Bureau of Cannabis Control (BCC) standards. We are working closely with the BCC to remedy this issue and expect clean, compliant products to be back on shelves in three weeks. …

“If you suspect that you are affected by the recall, please return the product to the retailer where it was purchased for a full refund. DO NOT CONSUME this product if you have it in your possession as it is deemed that it may be harmful to your health and wellbeing.” — The Bloom Brand official statement, in the product recall press release

See the press release for a full list of the state’s affected retailers — no other state markets have been affected by the recall.

This is the first cannabis product recall in California‘s newly regulated industry, which launched January 1.

End

Racks of curing cannabis nugs hanging from the ceiling at a commercial grow operation.

Massachusetts Cannabis Commission Gets Tough On Municipal Profiteering

7/27/2018

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The Massachusetts Cannabis Control Commission (MCCC) made an official announcement Thursday reminding municipalities who are seeking agreements with adult-use cannabis businesses to stay within the law when it comes to negotiating financial terms, the Associated Press reports.

The MCCC said it has seen “anecdotal” evidence of communities exploiting cannabis businesses with excessive taxation and fees, which is against clear stipulations in Massachusetts‘ state cannabis law.

State law allows municipalities to charge businesses for anticipated costs of services such as road or traffic improvements, policing, etc. Host communities are not allowed, however, to charge more than 3 percent of the total annual revenue of the businesses and no arrangement may last longer than five years. In addition to the 3 percent for services, municipalities may also collect up to an additional 3 percent in taxes.

“If municipalities don’t follow that law, they are creating obstacles to the commission’s mission statement, which is to safely, equitably and productively implement the law. We already know that when barriers to entry are too high at the local level we end up with a market that is slow to start up and has a striking lack of diversity.” — Shaleen Title, MCCC Commissioner, in the report

However, the commission itself is unsure whether it has authority over the agreements made between municipalities and cannabis business owners. At least one commissioner, Jennifer Flanagan, has defended the communities, citing costs associated with substance abuse treatment that were not considered in the state’s cannabis regulations.

“Instead of hiding our heads in the sand and pretending this doesn’t exist, I really think that part of the conversation with municipalities has to be about the public health aspects of this.” — Jennifer Flanagan, MCCC Commissioner, via the Associated Press

The MCCC gave communities two weeks to respond to the directive.

End

Ontario Government to Allow Private Cannabis Retailers

7/27/2018

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An insider source reportedly says the Ontario government will allow for privately owned cannabis shops when Canada’s adult-use market comes online in October, according to a CBC report. The source, who spoke with The Globe and Mail on the condition of anonymity, suggested that the government would maintain its control over cannabis distribution and online sales.

Officials under former Premier Kathleen Wynne’s Liberal administration had planned to give the Liquor Control Board of Ontario a monopoly over the province’s recreational cannabis stores. The new Liberal administration under Premier Doug Ford, however, aims to mirror the Alberta model, which will see private cannabis retailers licensed by the province’s liquor control board.

According to the source, Ontario Finance Minister Vic Fedeli and Attorney General Caroline Mulroney are expected to announce the shift in policy as early as next week. 

Premier Ford reportedly suggested in June he was considering privatizing cannabis retailers, saying at that time he doesn’t believe “government should stick their nose into everything.”

A survey from September 2017 found that the majority of Ontario residents would prefer privately run, not government-run, cannabis retailers.

End

United Kingdom Legalizes Medical Cannabis

7/26/2018

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Medicinal cannabis products will be available by prescription in the United Kingdom this fall after the government relaxed drug laws surrounding the plant’s chemical compounds this week, The Independent reports. The move was prompted by several stories this summer about parents encountering trouble at the border after traveling overseas to acquire life-saving, cannabis-based epilepsy medicine for their children.

“Recent cases involving sick children made it clear to me that our position on cannabis-related medicinal products was not satisfactory. Following advice from two sets of independent advisors, I have taken the decision to reschedule cannabis-derived medicinal products – meaning they will be available on prescription. This will help patients with an exceptional clinical need.” — Home Secretary Sajid Javid, in the report

While medical cannabis products will be available via prescription, Home Secretary Javid said the move was “in no way a first step to the legalization of cannabis for recreational use.” In fact, raw cannabis will remain a class B drug in the UK carrying penalties of a potentially unlimited fine and up to five years in jail, with dealers facing 14 years.

Charlotte Caldwell, mother of 12-year-old Billy Caldwell who suffers from severe epilepsy, called the development “incredible.”

”For the first time in months I’m almost lost for words, other than ‘thank-you Sajid Javid.’” — Charlotte Caldwell, via The Independent

Now, the UK‘s Department of Health and Social Care (DHSC) and the Medicines and Healthcare Products Regulatory Authority (MHRA) face the task of providing a clear definition of what constitutes the newly legal cannabis-derived medicinal products. Once that definition is established, those products specifically will be rescheduled and made available via a doctor’s prescription.

Sir Mike Penning, MP and co-chairman of a bipartisan parliamentary group that pushes for cannabis reforms, warned against over-regulating the newly legal products.

“Any move to restrict medical cannabis in the UK to a very narrow range of derived products, each requiring full pharmaceutical trials, thereby blocking out the many products available overseas, will lead to great disappointment and be a missed opportunity.” — MP Mike Penning, co-chairman of parliamentary group Medical Cannabis Under Prescription, in the report

End

Michigan Court of Appeals: “Wet Marijuana” Is Illegal

7/26/2018

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A Michigan Court of Appeals decision makes it impossible for medical cannabis cultivators to legally harvest their plants, according to MLive.com. A Michigan judge has ruled in People v. Vanessa Mansour that “wet marijuana,” the stage immediately following harvest but before the plant is fully cured and dried, is not covered by Michigan medical cannabis laws and is therefore illegal.

“Now, they’ve made it so you can’t even comply with the law. Obviously, it doesn’t go immediately from being a plant to being dried cannabis. There has to be a drying, or curing process. I think this court lacks some understanding.” — Matthew Abel, senior partner of Cannabis Counsel LLC, via MLive.com

The appeals court judge leaned heavily on a ruling made by that same court before medical cannabis laws had been passed, People v. Carruthers. But attorney Neil Rockind, a lawyer for Ms. Mansour, said that the obvious precedent is not People v. Carruthers but, rather, People v. Manuel, which is also a Michigan appellate court decision but one that was argued after the state’s medical cannabis program was established.

In People v. Manuel, the courts set a precedent that cannabis that is still drying does not count toward the allowed total weight because it is unusable in that state. That difference in weight would invalidate much of the case against Ms. Mansour.

“To say that the legislature makes it legal to possess growing plants and to possess a limited amount of finished product — but that in between, everybody is just illegal — that’s the interpretation that the Court of Appeals has hoisted on everybody. I don’t think the legal system has for the most part embraced the medical marijuana initiative. I think the legal system has been very slow, and in some ways defensive, of a view of marijuana as illegal.” — Neil Rockind, via MLive.com

Rockind said this decision will be appealed all the way to the Michigan Supreme Court.

“We fully intend to appeal, we’re not going to back down from a fight and we’re not going to back down from this fight. On behalf of my client and our clients, for patients, caregivers and all of us this fight has to be fought.” — Neil Rockind, in the report

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Cannabis Consumers Increasingly Prefer Edibles & Extracts Over Flower

7/26/2018

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Data from several cannabis market research and analysis firms continues to confirm the trend among consumers away from cannabis flower and towards vape cartridges, extracts and edibles, according to a USA Today report. Only recognizable brands with a diverse range of offerings are holding steady in this buyer’s market.

“Just growing flower is basically a knife fight to the bottom on price. The brands have the power. That’s what consumers expect in every industry, and this is no different.” — Ryan Smith, CEO of LeafLink, via USA Today

According to BDS Analytics and New Frontier Data, wholesale prices for flower in all markets continue to fall, some steeply. In the last 15 months in Oregon, the price of flower fell more than 41%. In Colorado, cannabis flower has gone from 67% of consumer purchases to 44% since legalization took effect, with the slack being picked up by a doubling in sales of concentrates. In California, it took just four months from the market’s launch for flower sales to drop 3%.

Meanwhile, cannabis analytics company Headset has studied the Washington marketplace meticulously since its launch — their data also reinforces the anti-flower trend.

“We track about nine categories of products right now and that’s everything from flower to pre-roll, concentrates, vapor pens, capsules, tinctures, topicals. It’s a wide variety of products. I think that what we’re seeing is certain categories like flower continuing to lose market share.” — Cy Scott, co-founder and CEO of Headset, via the Ganjapreneur.com Podcast

The price of flower has become so competitive that many large growers are bringing in traditional agricultural experts to help manage their electricity and fertilizer costs so they can eke profits from the smallest of margins. This trend is expected to continue as the industry matures and companies continue to innovate to meet consumer demands.

End

Oklahoma Legalization Initiative Not Likely to Make Nov. Ballot

7/25/2018

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Oklahoma Secretary of State James Williamson said on Monday that the chances of voters seeing the state’s adult-use legalization question on November’s ballot are very slim, according to a Tulsa World report.

In fact, advocates have prepared two separate cannabis initiatives for the ballot. The first, State Question 796, would codify legal medical marijuana into the Oklahoma Constitution and the second, State Question 797, would ask voters to do the same for adult-use cannabis. Williamson warned, however, that state law allows opponents of the reforms to file an official protest with the Supreme Court, which would delay the initiatives’ approval and crush all hopes of them appearing on the November ballot.

“If a protest is filed, it is virtually impossible.” — James Williamson, Oklahoma Secretary of State, via Tulsa World

Oklahoma State Election Board spokesperson Bryan Dean said advocates have until August 8 to turn the signatures over to the capitol. That launches the lengthy process of hiring staff, counting the signatures, reviewing the ballot title, and receiving a certification from the Oklahoma Supreme Court. Even without a challenge, the process usually takes up to 60 days and, under state law, no election can be held fewer than 70 days after it was called by the governor.

Gov. Mary Fallin could conceivably call a special election to address the issue, but this is unlikely as she remains opposed to cannabis reforms and it would cost upwards of $1 million.

This means the 2020 general election is the most likely slot for SQ 976 and SQ 979, assuming they reach their signature goals.

On Sunday, Green The Vote — the group pushing both of the constitutional cannabis changes — announced that the adult-use initiative was just 6,000 signatures short of its goal. Oklahoma voters approved a statutory change last month establishing a medical cannabis regime but SQ 796 and SQ 979 both call for constitutional changes, which require more petition signatures to get put before voters.

End

Vermont Attorney General Clarifies Cannabis Sales Not Legal

7/25/2018

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The office of the Attorney General of Vermont issued a clarification this week that, under Vermont law, the sale or commercial gifting of cannabis is still illegal.

“Act 86 does not legalize the sale of marijuana. Any transfer of marijuana for money, barter, or other legal consideration remains illegal under Vermont law.” — Office of the Attorney General of Vermont, via Vermont.gov

Vermont lawmakers voted in January to legalize cannabis possession and cultivation, but sales and distribution remain illegal. But like other decriminalized jurisdictions, Vermonters have embraced the gray market and some businesses are strategizing workarounds that are technically legal under Act 86, but the attorney general’s advisory could throw a serious wrench in the works for anyone attempting to make money from the transfer of cannabis.

The advisory goes on to specify that selling an item or service, such as a t-shirt or other merchandise, with an included “gift” of cannabis is illegal. Attempting to charge for the delivery of “gifted” cannabis is also an illegal loophole. Also stated in the advisory is that any type of gifting, even a non-commercial traditional gift, is definitively illegal to anyone under the age of 21.

End

Lebanon Considers Legalizing Medical Cannabis to Defray Debt

7/25/2018

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Lebanon, which has been struggling under large national debts, is considering legalizing medical cannabis in the near term to help generate more national revenue, Bloomberg reports. Lebanon’s government was advised to consider a legal cannabis market, among other revenue-generating options, by consulting firm McKinsey & Co.

Lebanon’s trade minister Raed Khoury said enacting the changes advised by McKinsey & Co. would be necessary to get the international community to release $11 billion in grants and soft loans promised to Lebanon earlier this year. Khoury also said a medical cannabis market would be expected to add almost $1 billion in revenue per year.

Cannabis is widely cultivated, though illegally, in Lebanon’s Bekaa Valley. The current government runs eradication campaigns on a regular basis through that valley, though they do not do much to stifle production. The Bekaa Valley is controlled by Hezbollah, an organization which also holds a large number of seats in the Lebanese legislature as well.

Lebanon’s government is not yet a fully functioning democracy and political impasses have been a theme in the country’s recent past, as it attempts to develop a more lucrative economy. Khoury said, however, that Lebanon needs change to prevent major economic turmoil.

End

B.C. Search and Rescue Team Warns Against Stoned Hiking

7/25/2018

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As excitement grows over the imminent legalization of cannabis throughout Canada, a search and rescue team in British Columbia warned this week via blog post against the dangers of consuming cannabis in the backcountry.

Specifically, North Shore Rescue — one of the busiest search and rescue crews in B.C. — is alarmed by the emerging concept of outdoor, commercial cannabis adventures.

“NSR takes no position on consumption or experimentation with cannabis as it relates to peoples private lives, so long as it is done responsibly and safely. That being said, we do take a position on consumption and experimentation with cannabis, and other drugs, including alcohol, when it is done in the mountains.

…When you’re high in the mountains, and I don’t mean elevation wise, you shift your position on the continuum between “Prepared Hiker” and “Candidate for Rescue” significantly towards the latter position.” — Curtis Jones, of North Shore Rescue

Jones said his post was prompted by an article he spied on Flower and Freedom, a lifestyle brand and online community focusing on “a mission to empower people to explore cannabis as part of a healthy lifestyle.”

In an interview with The Canadian Press, Flower and Freedom CEO Bethany Rae said her organization doesn’t encourage or support cannabis experimentation in potentially dangerous settings, but that education remains the key to having a safe cannabis experience.

“We aren’t suggesting anyone go out in the backcountry and get high … especially for novice or brand-new consumers.” — Bethany Rae, CEO of Flower and Freedom, in the report

End

New Jersey to Pause Prosecution of All Cannabis Cases

7/24/2018

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New Jersey’s Attorney General Gurbir Grewal wrote in a letter to municipal prosecutors they should seek an adjournment of all cannabis-related offenses until at least September 4, 2018, NJ.com reports. Grewal is seeking the adjournment so that his office can develop appropriate guidance for prosecutors regarding cannabis offenses, but the move effectively decriminalizes cannabis possession in the state of New Jersey.

Some speculate Grewal’s move is tied to a state Senate bill that could legalize adult-use cannabis. The legalization bill is sponsored by state Sen. Nick Scutari, D-Union. It’s expected to be considered in September as well.

New Jersey has the second highest cannabis arrest rate nationally, second only to Wyoming. This move is expected to cause a major shakeup in the state budget as well as change outcomes for a sizeable portion of the state’s population.

The letter from Grewal today follows a drama last week in Jersey City, where that city’s prosecutor Jake Hudnut attempted to downgrade some cannabis charges and dismiss or divert others. Grewal’s office responded quickly to Hudnut’s move and issued a statement saying that Hudnut did not have the authority to decriminalize. The Mayor of Jersey City, Steve Fulop, quickly issued a statement backing Hudnut. The legal snarl reached an impasse and this week’s move by Grewal seems to have resolved the issue.

“In adjourning all marijuana cases across New Jersey while a directive is prepared, Attorney General Grewal has put himself at the national forefront of progressive prosecutors. I am looking forward to working closely with him in the coming weeks on this directive, as well as on other issues affecting all of our state’s municipal courts.” — Jake Hudnut, Prosecutor for Jersey City, New Jersey, via NJ.com

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Ohio Rep. Tim Ryan, A Presidential Hopeful, Calls for Federal Legalization

7/24/2018

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In an op-ed piece on Friday, U.S. Rep. Tim Ryan (D-Ohio) declared that “Marijuana should be legal in all 50 states.” Rep. Ryan was recently revealed to be assembling a team of political consultants and operatives in preparation for a bid for the presidency, The Intercept reports.

In the op-ed, Rep. Ryan rails against cannabis prohibition and the negative consequences it leads to, especially for minorities.

“After meeting with countless Ohio families and youth whose lives have been irreparably harmed by a marijuana arrest, I find the social and economic injustices of our marijuana policy too big to ignore. I firmly believe no person should be sentenced to a lifetime of hardship because of a marijuana arrest. It is morally wrong and economically nonsensical. That is why I am calling for an end to marijuana being used as an excuse to lock up our fellow Americans.” — Rep. Tim Ryan (D-Ohio), in the op-ed

Rep. Ryan also notes the financial benefits of legalization, claiming a potential $13.7 billion net savings that would lead to more investment into national highway infrastructure and a more effective battle against the opioid crisis. Rep. Ryan called for his colleagues to support the “Marijuana Justice Act,” which is currently pending in the legislature and would remove cannabis from its Schedule I classification.

Rep. Ryan’s presidential hopes are pinned on what some are calling the “Yoga vote.” He has worked previously with the advocacy group “Yoga Votes” as well as made a lifetime practice of mindfulness meditation and similar pursuits. He also authored “A Mindful Nation: How a Simple Practice Can Help Us Reduce Stress, Improve Performance, and Recapture the American Spirit.” Cannabis legalization would be in line with such a platform.

“The War on Drugs failed the American people. It is time for us to take the necessary steps to right our nation’s wrongs. We cannot afford to leave people behind and money on the table. If we are truly a nation that believes in second chances, our federal marijuana laws must change. America is speaking. Congress must act.” — Rep. Tim Ryan (D-Ohio), in the op-ed

End

Study: Cannabis Decriminalization Laws Work Without Increasing Youth Access

7/24/2018

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A recent study by Washington University found a significant drop in adult and youth cannabis arrests and no increase in cannabis use among youths in five states that adopted cannabis decriminalization laws between 2008 and 2014.

A team of researchers from around the country compared federal arrests data and state youth risk surveys of Massachusetts, Connecticut, Rhode Island, Vermont and Maryland with other states that did not adopt major cannabis policy changes during the sample period. The decrease in youth arrests was significant with a 75% decrease accompanied by a similar decrease in adult arrest rates.

“Our results provide additional evidence that decriminalization can be accomplished without an increase in youth drug use. These findings are consistent with the interpretation that decriminalization policies likely succeed with respect to their intended effects and that their short-term unintended consequences are minimal.” — WU researchers, in their report

The researchers stressed the need for more investigation into the effect decriminalization has on arrests rates in the long term and suggest their research should be replicated. They also point out decriminalization may not decrease the rate of cannabis enforcement through civil penalties.

End

Canadian Company Developing First Beer Brewed From Cannabis

7/24/2018

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Toronto-based Province Brands is developing the world’s first beer brewed using raw materials from the cannabis plant, The Guardian reports.

Other companies have undertaken similar projects, but those companies typically create a beer from barley and hops and then infuse the beverage with cannabis or hemp oils, according to Province Brands’ Dooma Wendschuh.

“That’s not what we do. Our beer is brewed from the stalks, stem and roots of the cannabis plant.” — Dooma Wendschuh, CEO and co-founder of Province Brands, via The Guardian

The final product is a gluten-free, non-alcoholic beer that will get you high. “The beer hits you very quickly, which is not common for a marijuana edible,” Wendschuh said.

Wendschuh told The Guardian he moved from Miami to Toronto in 2016 to capitalize on Canada’s pending legalization. He said the idea for a purely cannabis-based beer was born from the desire for something to “serve the role that alcohol serves in our society … using this monumental sea change that is happening in our world.”

“I don’t think there was anywhere else in the world where we could do this business. Canada is already leading the world in creating an industry around medical cannabis and we expect them to continue to lead the world in trading and industry around adult-use cannabis.” — Dooma Wendschuh, CEO and co-founder of Province Brands

According to Wendschuh, the beer has gone through several iterations during its development. The earlier prototypes “tasted horrible … like rotten broccoli,” he said, but more recently the beer has settled into a “dry, savoury” product that is “less sweet than a typical beer flavor.”

Adult-use cannabis will become legal in Canada on October 17 — edibles products, however, will not be available at market launch. Experts predict it will take about a year before edibles, including beverages, become legal under the national cannabis regulations.

In May, Province Brands received a $300,000 grant from Ontario’s government to help develop the beer.

End

The large cola of a mature cannabis plant just before it's harvested.

Sweet Leaf Receives Stay of Action for Destruction of Denver Cannabis Products

7/24/2018

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Sweet Leaf, the Colorado-based cannabis retailer chain who had its Denver licenses revoked earlier this month due to an alleged “looping scheme,” has won a stay of action for the destruction of all the company’s Denver-based cannabis products, according to a Marijuana Business Daily report. The stay was granted yesterday in Denver District Court.

“Until the legal process is complete, there will be no action by Denver to verify the marijuana is destroyed.” — Eric Escudero, communications director for the Denver Department of Excise and Licenses, in an email to Marijuana Business Daily

Sweet Leaf’s alleged looping scheme was discovered late last year; 12 individuals were arrested in December for their involvement. Law enforcement representatives claimed the retailer was breaking rules related to the daily maximum cannabis purchase amounts and products were being purposefully diverted to the illicit marketplace. All of the company’s 26 Denver licenses were revoked earlier this month.

Sweet Leaf’s CEO and co-owner Matthew Aiken maintained the company’s innocence in an email last week, according to the report.

“Sweet Leaf continues to maintain our innocence, and we will continue to fight these Stalinist tactics used by the City of Denver. We will rigorously exhaust every option of appeal. Furthermore, we will continue to fight for the rights of our industry to be treated like businesspeople.” — Matthew Aiken, CEO and co-owner of Sweet Leaf, via MJBizDaily

Sweet Leaf still has several Colorado stores outside the city of Denver — and one in Portland, Oregon — that have not been shut down.

End

Canadian Company Tilray Has First U.S. Cannabis IPO

7/23/2018

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Canadian cannabis producer and processor Tilray made history last week as the first cannabis company to hold an initial public offering on the U.S.-based Nasdaq stock exchange, according to a report from Fox Q13. Other Canadian cannabis companies have traded on U.S.-based stock exchanges — Tilray, however, is the first to do so with an IPO.

Despite being legal in nine states and the District of Columbia, no U.S.-based cannabis companies have been publicly traded because of federal drug and money-laundering laws.

Tilray stock opened at $17 per share on the Nasdaq and closed after the first day of trading at $22.55. As of Monday afternoon, the stock is trading over $32 per share, almost double the opening price. Some have concerns that cannabis company stocks have been overvalued on the Canadian market as well as the U.S. due to the excitement around an entirely new market opening up.

“Right now a lot of investment has been highly speculative. Those valuations feel a little supercharged. We expect some kind of correction in the near future.” — John Kagia, market analyst for New Frontier Data, via Q13 Fox

Tilray plans to use the money raised by the IPO to expand growing and processing operations and eliminate debt with Privateer Holdings, the Seattle-based firm that controls Tilray currently. Canada‘s adult-use cannabis market is expected to be between $5-9 billion at launch.

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Cannabis Edibles Attractive to Both Newly Curious and Former Users

7/23/2018

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A new study from cannabis market research firm High Yield Insights shows that consumption trends for cannabis-infused edibles consistently spike in a newly legalized marketplace and that edibles are particularly effective at attracting curious and new users as well as former cannabis users.

41 percent of the study’s respondents reported increasing their edibles consumption after legalization. The study also found that an edibles customer’s journey is more parallel to mainstream food and beverage shoppers than other facets of the cannabis industry; specifically, 67 percent of edible customers report basing their purchase decisions on flavor in addition to price point  — in most other cannabis categories, however, “price plays an overwhelmingly important role,” according to the report.

The study also suggests that “those consumers who prefer edibles are more likely to be lighter users (using one time or less per month), newer to using (less than 5 years), female, college-educated and high-income earners.”

Additionally, edibles customers are just as likely to self-identify as a medical user than as a recreational user.

“To anticipate the cannabis market’s direction, companies need to understand the customer’s mindset and purchase journey. We’re finding many customers are receptive yet ill-informed or hesitant due to unsatisfactory first experiences. Customer journeys may be well worn paths in traditional consumer packaged goods but are relatively new in cannabis. By understanding how consumers make decisions, manufacturers are better able to identify ways to improve the purchase experience and, ideally, enhance their product lines.” — Mike Luce, co-founder of High Yield Insights, in the report

 

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British Journal of Pharmacology Review: Cannabis Effective Treatment For Cancer

7/23/2018

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A review of pre-clinical studies by the British Journal of Pharmacology has found widespread evidence indicating that phytocannabinoids from the cannabis plant are effective treatments for many facets of cancer, ScienceDaily reports. The review included dozens of studies from a wide range of academic institutions.

“In addition to the well‐established palliative effects of cannabinoids in cancer therapy, phytocannabinoids, synthetic cannabinoid compounds as well as inhibitors of endocannabinoid degradation have attracted attention as possible systemic anticancer drugs. As a matter of fact, accumulating data from preclinical studies suggest cannabinoids elicit effects on different levels of cancer progression, comprising inhibition of proliferation, neovascularisation, invasion and chemoresistance, induction of apoptosis and autophagy as well as enhancement of tumour immune surveillance.” — Excerpt from abstract of “Anti Tumoural Actions of Cannabinoids,” Burkhard Hinz, Robert Ramer

The authors of the review have used the new meta-data to argue for clinical studies with patients, instead of pre-clinical lab work, of cannabinoids’ effect on cancer. Cannabis prohibition and its status as a Schedule I narcotic, according to the U.S. Government, has prevented clinical research with cannabinoids until the last ten years. A lack of preclinical background has since been rectified, allowing a scientific foundation that allows doctors and researchers to now consider and design clinical studies to understand the proper structures for cancer treatment using cannabinoids, both synthesized and directly from the cannabis plant.

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Study: After Legalizing Cannabis, Police Effectiveness Up in Washington & Colorado

7/20/2018

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A study by researchers at Washington State University has found evidence of “demonstrable and persistent benefit” to police departments’ effectiveness in Washington and Colorado since the states voted to legalize cannabis in 2012.

Researchers used monthly FBI data to investigate crime clearance rates for the states from 2010 to 2015; crimes are normally considered “cleared” when a suspect is identified, arrested, and entered into the judicial system for prosecution.

“Our models show no negative effects of legalization and, instead, indicate that crime clearance rates for at least some types of crime are increasing faster in states that legalized than in those that did not.” — WSU researchers, via The Washington Post

Researchers looked at violent crime and property crime clearance rates — most specifically, burglary and vehicle theft — and found marked boosts after the states’ legalization laws took effect in comparison to the rest of the country.

“The clearance rate for these two offenses increased dramatically postlegalization. In contrast, national trends remained essentially flat.” — WSU researchers

The researchers noted that this data does not prove legalization is the direct cause of the changes in clearance rates. Other variables in police activity — such as new policing strategies or an increased use of overtime hours — could certainly have played a role. The study authors did note, however, that there were not any other major policy changes at that time in those states to account for the boosted police effectiveness.

“We think the argument that legalization did in fact produce a measurable impact on clearance rates is plausible.” — WSU researchers, in the study’s conclusion

 

 

 

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Pennsylvania Auditor Anticipates $1.66 Billion Adult-Use Cannabis Market

7/20/2018

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Pennsylvania Auditor General Eugene DePasquale has released a special report that says Pennsylvania‘s legal cannabis market would comprise more than $1.66 billion, which, if taxed at 35 percent, would produce $581 million dollars in tax revenue for the state, according to a report by WGAL Lancaster. The numbers in DePasquale’s report are based on an average yearly spend of $2080 per cannabis user, from data based on legal markets in Washington and Colorado.

DePasquale has long been a proponent of legalizing cannabis for adult use. He said tax dollars from legal cannabis could be used to help fund opioid addiction treatment or better health care for veterans and children.

DePasquale said in the introduction of the special report:

“Across the U.S., state after state is regulating and taxing marijuana. This move reflects an observable shift in public perspective on adult use and on increasing acknowledgment of the financial and public health benefits associated with regulation and taxation.

“As Philadelphia and Pittsburgh have demonstrated, decriminalizing marijuana saves millions in court costs alone. But stopping at decriminalization would be a costly mistake for the commonwealth, potentially leaving more than $581 million in annual tax revenue on the table. That revenue could help balance the state budget and provide business and job opportunities — and the way to access it is for Pennsylvania to allow the cultivation, sale and purchase of marijuana.” — Excerpt, Special Report on Regulating & Taxing Marijuana

DePasquale cited a variety of benefits and potential risks in the special report, which concluded:

“Imagine how Pennsylvania could benefit from $581 million annually. That tax revenue means:

  • Balanced budgets.
  • Revived initiatives that affect Pennsylvanians’ lives.
  • Greater resources to address the opioid crisis.
  • Better health care access for veterans.
  • Hundreds of millions of dollars in criminal justice savings.
  • The creation of a booming $1.66 billion market that will create jobs.
  • More employees able to qualify for all types of jobs because they do not have criminal records for simple possession.
  • The benefits of regulating and taxing marijuana are undeniable. As its neighbors weigh the issue, Pennsylvania must act to create its own marijuana market. Otherwise, it runs the risk of losing the revenue from potential customers to other states.

“It is time for Pennsylvania to stop imagining the benefits of marijuana and realize them.”

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