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The U.S. Senate on Tuesday unanimously and without amendment passed a resolution recognizing the economic potential of industrial hemp. The non-binding measure was passed in recognition of Hemp History Week, according to reporter Tom Angell’s investigation for Forbes.

This is the third year in a row that the U.S. Senate has adopted non-binding resolutions recognizing the value of hemp, though Congress has yet to fully legalize industrial hemp production.

According to the resolution, the global hemp market is estimated to consist of more than 25,000 products. The value of hemp products imported into the U.S. solely for manufacturing is estimated at $76 million. Hemp retail sales in the U.S. are estimated to be over $570 million. The resolution also states that the U.S. is the largest consumer of hemp products in the world and the only major industrialized country that restricts its farming.

Tuesday’s resolution was cosponsored by Sen. Mitch McConnell, who introduced a separate bill this session that would legalize industrial hemp nationwide. The past three years of vocal but non-binding support for industrial hemp from the Senate indicate the bill may have a good chance to pass. Already, nearly a third of the Senate has signed on to cosponsor the bill.

While Sen. McConnell has emerged as a staunch supporter of industrial hemp, he has been clear that he does not support legalizing cannabis.

“Since Kentucky’s earliest days, industrial hemp has played a foundational role in our agricultural history and economy. With our Hemp Farming Act of 2018, I believe that hemp can also be an important part of our future. Removing hemp from the federal list of controlled substances will give our farm communities the opportunity to explore the potential of this versatile crop. I am proud to join with farmers, processors and manufacturers across Kentucky to celebrate Hemp History Week as we work together on the plant’s growing future.” — Sen. Mitch McConnell, in Angell’s Forbes report

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The purples and greens of an indoor, professional cannabis grow operation.

Michigan Legislature Misses Deadline to Act on Cannabis Legalization

6/06/2018

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The Michigan Legislature has decided to pass on Tuesday, June 5th’s midnight deadline to act on a voter initiative to legalize adult-use cannabis, the Detroit Free Press reports. Senate Republicans had wanted to take up and pass the measure before it was put on November’s ballot in order to immediately amend the language of the initiative but were unable due to insufficient support in the House of Representatives.

The initiative will now appear on the Nov. 6 general election ballot, to be decided by voters.

Michigan Republicans had sufficient state Senate support to act but were short of the 55 votes needed to pass in the House.

“There’s simply not support in the chamber to pass this right now. The voters are going to have to decide. We’re nowhere in the ballpark.” — Speaker of the House Tom Leonard, via Detroit Free Press

Lawmakers had three options to deal with the initiative: pass the proposal to amend it later, come up with their own competing proposal for the ballot, or do nothing and let the measure go to the general election ballot to be decided by voters. They opted to do nothing. If the measure is approved by voters in November, it will take a three-quarters super-majority vote in the legislature to amend the proposal. Modifying the proposal with just a simple majority would have only been possible if the legislature had acted by Tuesday’s deadline.

Republicans in the state Senate wanted to keep the proposal off the ballot because it’s expected to drive more voters to the polls. Higher turnout has historically helped Democrats, which may jeopardize the Republican majority that exists across the legislature, governor’s office, and in the federal Congress.

Josh Hovey, a spokesperson for The Coalition to Regulate Marijuana Like Alcohol, was satisfied with the outcome.

“We are confident Michigan voters understand that marijuana prohibition has been an absolute disaster and that they will agree that taxing and regulating marijuana is a far better solution. Multiple polls show that roughly 60 percent of Michigan voters want to see marijuana legalized and regulated.” — Josh Hovey via Detroit Free Press

The ballot proposal, as it stands now, would:

Legalize the possession and sale of up to 2.5 ounces of cannabis for personal recreational use for people over 21, with up to 10 ounces stored in the home.
Allow communities to decide whether they’ll allow cannabis businesses in their towns
Tax cannabis sales with a 10 percent excise tax at retail as well as 6 percent sales tax.
Tax revenues would be divided, with 35 percent going to K-12 education, 35 percent to roads, and 15 percent each to both the counties and communities where cannabis businesses operate.
Require testing and safe transportation of cannabis

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Colorado Gov. Vetoes Bill Making Autism a Qualifying Condition for MMJ

6/06/2018

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Gov. John Hickenlooper, in a record-setting ninth veto of the year, rejected a bill that would have added Autism Spectrum Disorder to the list of conditions qualifying for medical marijuana on Tuesday, the Denver Post reports.

Hickenlooper said, regarding the veto, he could not ignore overwhelming concerns from the medical community.

“If we sign that bill we end up, without question, in some way encouraging more young people to look at this as an antidote for their problems.” — John Hickenlooper via The Denver Post

State lawmakers cannot override Hickenlooper’s veto because the legislative session has ended. The governor’s office said Hickenlooper met with families of children with autism while deciding whether or not to veto House Bill 1263. Several mothers and their children camped outside the governor’s office as they awaited news of the decision.

Sen. Steve Fenberg of Boulder was one of the bill’s primary sponsors. He rejected the idea that allowing medical marijuana use for autism would have led to more children without the disorder consuming cannabis.

“I think its unfortunate. I think there are a lot of families that it would benefit. The reality is the traditional pharmaceuticals aren’t always the right choice for these kids, either. This is not for people who have just a little bit of Asperger (syndrome) or something. This is for people who have kids who at the end of the day are hurting themselves. It’s not a justification to be able to smoke pot. It’s genuinely about medicine to help people. And there’s science behind it.” — Sen. Steve Fenberg via the Denver Post

Gov. Hickenlooper, as part of the veto, ordered state health officials to study whether medical marijuana could be an effective and safe treatment for autism.

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Colorado Governor Vetoes Cannabis “Tasting Room” Bill

6/05/2018

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Colorado Gov. John Hickenlooper vetoed a bill on Monday that would have allowed licensed cannabis tasting rooms, citing health and safety concerns, according to a Denver Post report.

The legislation — the first of its kind in the nation — would have allowed adults at recreational cannabis retailers to consume small amounts of cannabis via either a vaporizer or edibles.

Colorado is currently home to several unlicensed cannabis clubs and the city of Denver has also begun issuing licenses for social-use establishments after a successful voter initiative. The vetoed bill, however, would have been limited to recreational stores and would not have allowed consumption of shared or personal cannabis, only cannabis supplied by the establishment.

Hickenlooper wrote in a letter announcing the veto:

“We are concerned that marijuana use at consumption establishments could result in additional impaired or intoxicated drivers on our roadways. …This bill also poses public health risks. Allowing vaporization of marijuana in confined spaces poses a significant health risk for employees and patrons of consumption establishments.” — John Hickenlooper, via The Denver Post

The state legislature cannot override the veto because the legislative session ended May 9. The bill was also opposed by the American Lung Association and the American Cancer Society Cancer Action Network, alongside Hickenlooper.

The cannabis industry has come out strongly against the veto. Chris Woods, owner of the recreational chain Terrapin Care Station, issued a statement:

“What we were trying to do with House Bill 1258 was offer certainty on the issue of public cannabis consumption so that regulators could have a bright line when it comes to enforcement. …In its wisdom, the Colorado Legislature sought to close a significant gap in regulation. It’s unfortunate that the governor chose not to offer another regulatory tool to state and local regulators. This fight is not over.” — Chris Woods, via The Denver Post

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A cannabis worker scoops up two handfuls of trimmed cannabis product.

North Carolina Bill Seeks to Legalize Possessing Up to Four Ounces of Cannabis

6/05/2018

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According to a report by the Winston-Salem Journal, a Forsyth County, North Carolina legislator has sponsored a state Senate bill that would legalize the possession of up to four ounces of cannabis flower or plant material (for personal use) before one could be charged with a Class 1 misdemeanor. The language of the bill redefines less than four ounces of cannabis as explicitly not a controlled substance.

The bill also includes the possibility of submitting a petition to the Superior Court to potentially expunge previous possession convictions that would no longer be considered illegal under the proposed law. The sponsor of the bill, Sen. Paul Lowe (D-Forsyth) said he introduced the bill in an effort to decriminalize the possession of small amounts of cannabis.

Currently, possessing a half-ounce or less of cannabis is a Class 3 misdemeanor, punishable by up to 20 days in jail. The highest class of misdemeanor, Class 1, is punishable by up to 120 days in jail. Under current laws, possession of one and a half ounces or more of cannabis is a Class 1 felony, punishable by up to five months in jail. The proposed bill would raise the lower limit for a class 1 felony to one pound of cannabis or more before being charged with a Class 1 felony.

The district attorney for Forsyth County, Jim O’Neill, takes issue with the amounts set by the new bill. O’Neill said he considers Lowe a respected friend but that four ounces of cannabis as an amount for personal use is absurd. It is unlikely the bill will make it out of committee. The North Carolina General Assembly is Republican controlled and currently focused on passing a non-amended state budget by the end of the session, expected the July 4th weekend. Medical marijuana bills introduced in April 2017 also did not leave committee.

North Carolina is one of 20 states without medical or recreational cannabis laws.

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Report: Canadians to Spend $7B on Cannabis by 2019, Consumption Rates Expected to Rise

6/05/2018

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Canadians are expected to increase their consumption of cannabis by up to 35 percent and spend as much as $7 billion on cannabis by 2019, according to predictions by accounting firm Deloitte.

The firm’s report takes an in-depth look at the future Canadian cannabis market, surveying 1,500 different adults living in the country between March 6 and March 20. These are just some of the report’s other conclusions:

Canadians who already consume cannabis are expected to buy about two-thirds of their products from legal retailers.
Consumers in the upcoming market will be most likely younger (aged 18-34) and “more likely to put their health or safety at risk.”
Consumers will make purchases more often and will be willing to spend more when doing so.
Shoppers in the cannabis industry will prefer visiting brick-and-mortar store locations over placing orders online.
Alcohol revenues are expected to take a hit after cannabis legalization, even with many provincial liquor boards playing big roles in the legal market’s rollout.

Canada‘s leaders have talked for more than a year about how to implement this marketplace, but the Senate is expected to finally vote on the Cannabis Act on Thursday, June 7. Assuming all goes well, it could then be several more months before stores actually open.

“It could be the last week of August — it could be the beginning or mid-September. From where I sit, and I’m the sponsor of the bill, if it takes until the first week of October to get it all right, then we should take until the first week of October.” — Ontario independent Senator Tony Dean, sponsor of Bill C-45, to the Toronto Sun

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InstantGMP, Inc. Announces Annual Greenfield Grant for Cannabis and Hemp Processors

6/05/2018

by Featured Announcement

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InstantGMP, Inc. and their partners are excited to announce the annual Greenfield Grant designed to take Cannabis processors, CBD and Hemp manufacturers from zero to production superstars for brands within investor portfolios. The Grand Prize winner will receive a comprehensive system that will instantly establish their Good Manufacturing Practices.

Fulfilling a Brand’s Vision

Starting a processing or manufacturing operation from square one is a tremendous undertaking especially in an up and coming industry filled with fierce competition under the watchful eye of regulators. It’s critical to hit the ground running with a solid quality system and batch management software.

Now more than ever, companies must work past the risks and tasks associated with building their brand empire, to focus on product differentiation; operations expansion; and building consumer trust through high-quality offerings.

Looking Ahead

Creating and implementing a quality and production system takes time, expertise, multiple resources, and plenty of planning for the future. Many entrepreneurs and startups do not fully understand the process nuances involved in reinforcing Good Manufacturing Practices (GMPs) that is a well-known, proven path to producing high-quality products.

InstantGMP, Inc. will award one Grand Prize Winner a fully encompassing manufacturing and quality system in the form of InstantGMP™ software, a full set of Standard Operating Procedures, extensive training, and a complete roll-out with skilled consultants. Altogether, these components provide the foundation for success in manufacturing.

Greenfield Grant Partners

InstantGMP, Inc. has partnered with the American Herbal Products Association (AHPA), the California Cannabis Industry Association (CCIA), and the National Cannabis Industry Association (NCIA) to publicize this incredible opportunity for startups, investors, and investment management companies.

About InstantGMP, Inc.

InstantGMP, Inc. is the creator behind the InstantGMP™ software that organizes and manages manufacturing processes with the goal of improving batch quality and consistency across several different industry verticals; including biopharmaceuticals, biotech, cannabis, CBD & hemp, cosmetics, dietary supplements, e-liquids, and medical devices. The software is the brain-child of Dr. Richard Soltero, pharmaceutical veteran, and quality extraordinaire. InstantGMP, Inc.’s focus is developing software for products that are regulated by the FDA.

About our Partner: American Herbal Products Association

Founded in 1982, the American Herbal Products Association (AHPA) is the national trade association and voice of the herbal products industry. AHPA is comprised of more than 350-member companies, consisting primarily of domestic and foreign companies doing business as growers, processors, manufacturers and marketers of herbs and herbal products as foods, dietary supplements, cosmetics, and non-prescription drugs, and but also includes companies that provide expert services to the herbal trade.

AHPA’s mission is to promote the responsible commerce of herbal products to ensure that consumers continue to enjoy informed access to a wide variety of herbal goods.

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A freshly trimmed cannabis nug lying on its side on a wooden table.

Preliminary Study Results Show Cannabis Has Potential as IBD Treatment

6/05/2018

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Medical cannabis has shown promise in the treatment of inflammatory bowel disease (IBD), according to a report by MedPage Today covering new research unveiled at Digestive Disease Week, which is taking place this week in Washington D.C.

Dr. Mark Silverberg, MD, Ph.D. presented his review of using cannabis to treat IBD and reported that “when you have exhausted other treatments, it isn’t unreasonable” to try medical cannabis, but more research is needed to fully understand the plant’s effects on IBD symptoms.

“It is not clear if cannabis can be used to induce remission in IBD. Further research is warranted to determine if cannabis can be used as an adjunctive therapy to treat symptoms such as nausea, pain, and anorexia.” — Mark Silverberg, MD, PhD, of Sinai Health System in Toronto

Preliminary research has also shown that consuming cannabis for 8 weeks can be helpful for patients with ulcerative colitis (UC), a specific type of IBD.

Dr. Timna Naftali, MD, whose team investigated the use of cannabis to treat UC, said that the control participants of her study — who were consuming two .5 gram cannabis joints per day — reported significant improvements in their Disease Activity Index (DAI) over the placebo group.

“It’s not a magic bullet, but it certainly does have an effect, and I think should be explored further.” — Timna Naftali, MD, of Meir General Hospital and Tel Aviv University in Israel

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The estate of President George Washington, located in Mount Vernon, Virginia.

Industrial Hemp Comes to Mount Vernon, Virginia in Honor of George Washington

6/04/2018

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An industrial hemp crop has been planted at Mount Vernon, Virginia in what the estate managers call a truer interpretation of the land as it was once run by the nation’s first president.

According to a report by The Zebra Press, Dean Norton — the director of horticulture for Mount Vernon — recently partnered with Dr. Michael Timko of the University of Virginia’s industrial hemp program to plant hemp seeds across a 1,000 square foot area at the founding father’s historic homestead.

Historians believe that George Washington strongly favored hemp as an agricultural product, and at one point he is thought to have believed that the plant could overpower tobacco and wheat as the country’s most important cash crop. Though Washington eventually changed his mind, he continued to cultivate hemp at Mount Vernon, which was used to create rope, thread, and canvas that was put to use around the plantation.

“Through this program, we have been able to return a primary crop to Mount Vernon that has not been grown since Washington’s time which is extraordinary. The processing of hemp will help to expand our rich agricultural interpretive program.” — Dean Norton, Mount Vernon’s Director of Horticulture, to The Zebra Press

Norton said that when the crop is harvested, the Mount Vernon hemp plants will be used to provide fiber-making demonstrations in late summer.

Virginia‘s legislature established the state’s industrial hemp program in 2015.

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

Deadline Approaches for Legislative Action on Michigan’s Legalization Ballot Initiative

6/04/2018

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According to a Michigan Radio report, advocates from the “Coalition to Regulate Marijuana Like Alcohol” say they are watching closely as the deadline approaches for legislative action on the state’s cannabis legalization issue.

Tuesday, June 5th is the deadline for the legislature to decide whether to approve the petition and write it into law or leave the decision to voters in November. Coalition spokesman Josh Hovey said the petition should be enacted as written with no amendments.

Supporters of the petition collected over 300,000 signatures for the ballot initiative. The language of the initiative follows closely the 2016 Medical Marijuana Facilities Licensing Act. Within the existing language, cannabis businesses would need state permits and communities could decide where those businesses were allowed to operate. Public consumption and driving under the influence would both be prohibited.

A poll released by Michigan State University in May showed that 61% of Michigan voters support recreational cannabis. Polling data suggests that the initiative, if sent to voters, would pass easily — however, Michigan Senate Republicans have floated the idea of approving the initiative outright so that the legislature could immediately amend it. The state House’s position is unclear, however.

“Our position on the legislature adopting it is that there’s no reason to delay ending the failure of marijuana prohibition,” — Hovey to Michigan Radio

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Louisiana Gov. Signs MMJ Expansions Into Law

6/04/2018

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Louisiana Gov. John Bel Edwards signed a medical cannabis expansion program into law on Saturday that adds to the list of qualifying conditions that qualify a patient for participating in the program, according to a USA Today Network Friday report.

House Bill 579, which contained the expansions, was first proposed by state Rep. Ted James (D-Baton Rouge).

“It’s something I’m very proud of because this is a medicine I believe can improve the lives of so many people who are suffering,” — James to USA Today Network Friday

James’ bill adds Parkinson’s, glaucoma, severe muscle spasms, chronic pain, and post-traumatic stress disorder to Louisiana‘s existing list of 10 qualifying conditions. Supporters argued that the expansions will help veterans suffering from PTSD and will help curb issues with opioid dependency in the state.

Previously this session, Gov. Edwards signed another MMJ expansions bill — House Bill 672, proposed by Rep. Rodney Lyons (D-Harvey) — that added autism to the qualifying conditions list.

The program previously had covered cancer, Crohn’s disease, immunodeficiency, immune deficiency syndrome, wasting syndrome, epilepsy, seizure, spasticity, muscular dystrophy and multiple sclerosis.

Louisiana’s medical cannabis program was approved by the legislature in 2016 and is expected to open later this summer. The program does not allow for smokeable products and patients will be required to consume cannabis only as a pill or oil.

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State Legislatures Address Hemp Policies During 2018 Sessions

6/01/2018

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It’s, so far, been a banner year for hemp policy as Alaska, Kansas, Arizona, and Oklahoma each passed industrial hemp legislation during their respective sessions while two other states – New York and South Carolina – expanded their programs; while one state program, Wisconsin, came online. Illinois, too, is just one Senate concurrence vote away from sending its own hemp legislation to the governor.

New hemp programs

The industrial hemp legislation approved in the four states all implement so-called pilot programs, requiring farmers to register their crops with the state and, in most cases, partner with an institute of higher education for research and development. Each state requires the plants to contain 0.3 percent THC or less and seeds to be approved by respective state agricultural agencies.

It’s unclear the scope of each state’s program as the definitions for “research” vary from program-to-program in states that permit hemp cultivation. Arizona’s law includes “marketing” in its research definition, which means producers will be permitted to sell their products to consumers. Kansas’ and Oklahoma’s pilot programs require producers to partner with institutes of higher education for research. In Kansas, growers can partner with the University of Kansas, Kansas State University, Wichita State University, Pittsburg State University, Fort Hays State University, and Emporia State University. Oklahoma’s law does not specify the appropriate schools; however, at least two schools – Pawnee Nation College and Langton University – already have partnerships in place. The state’s largest agricultural university, Oklahoma State University, will not participate in the inaugural program because, according to officials, the law was passed too late to get seed in the ground.

Bright green leaves on a young, flourishing hemp plant. *Photo credit: Philip Steffan*

Alaska’s law excludes CBD from the state definition of “hashish oil” and clarifies that adding industrial hemp to food “does not create an adulterated food product,” opening the door for CBD-infused foods and beverages. Oklahoma’s law specifies that even CBD derived from industrial hemp plants will remain defined as “marijuana” and illegal. Neither Arizona’s nor Kansas’ law specifically address the CBD issue. The issue could be clarified when state officials devise the program rules; emails to agriculture officials in both states seeking clarification on this issue were not returned.

Wisconsin’s industrial hemp pilot program also came online this year, allowing the state’s farmers to grow the crop and sell products to consumers. Earlier this month, the state Attorney General’s Office issued a clarification to the Legislature-approved law, indicating that hemp-derived CBD products would be among those allowed to be offered to consumers. Wisconsin’s law could be seen as a breath of fresh air in a state with a CBD-only medical cannabis program.

Hemp program expansions

Two states also announced expansions to their hemp programs: New York and South Carolina. New York Gov. Andrew Cuomo in April announced that hemp would be cultivated on 3,500 acres throughout the state, up from 2,000 in 2017, and that the state would earmark $650,000 for a hemp processing plant, another $2 million for a state-run hemp seed certification program, and another $10 million in grant funding to advance hemp research and economic development opportunities – a considerable investment for a burgeoning industry. Cuomo indicated that more than 60 new farmers and businesses received hemp cultivation permits for this year, in all there are about 100 licensed cultivators in the state, according to a Press Connects report.

In South Carolina, officials have doubled the number of available permits from 20 to 40 and doubled the number of allowed acres from 20 to 40. More than 130 people applied last year to participate in the program. That state law, however, also requires farmers to partner with a university.

Hemp program setbacks

In Indiana, Gov. Eric Holcomb reportedly requested the Legislature change a bill which would have legalized industrial hemp production to a simple feasibility study. Holcomb spokeswoman Stephanie Wilson told the Indy Star that the governor was “not opposed to the idea oof industrialhemp” but wanted to be sure the state was able to properly regulate the industry. That amended bill passed the House in January, and the Senate the following month. That study is expected by the end of the summer.

Indiana does have an industrial hemp pilot program; however, only Purdue University has grown any hemp crops under the regime.

And in Oregon, lawmakers approved a measure to classify hemp seed as agricultural product “for purposes of statutes regulating labeling, testing, certifying or other aspects of seeds.” The bill includes testing requirements and bars unlicensed individuals from producing, processing, or storing homemade industrial hemp extracts, such as CBD.

However, a month later the Oregon Liquor Control Commission temporarily suspended issuing hemp cultivation certificates to Oregon Department of Agriculture-registered growers until the agency completes the rulemaking process.

In all, 39 states now allow some form of hemp production – which remains illegal at the federal level. In April, Senate Majority Leader Mitch McConnell introduced legislation to change that. The Hemp Farming Act of 2018 carries 24 bi-partisan cosponsors.

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California Senate Advances Bill Establishing Statewide Cannabis Banking Services

6/01/2018

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The California Senate has advanced Senate Bill 930 — a.k.a. the Cannabis Limited Charter Banking and Credit Union Law — which seeks to establish new rules allowing California banks to serve businesses who are denied banking services due to their involvement in the still federally prohibited cannabis industry.

According to an Associated Press report, the bill passed through California’s Senate with a bipartisan, 29-6 majority.

If signed into law, SB 930 would permit banking institutions regulated by California’s Department of Business Oversight — including both charter banks and credit unions — to provide limited banking services to the currently cash-only industry. Cannabis companies could use those services to pay rent, to pay state and local taxes (but not federal taxes), or to pay other California companies for goods and services related to the cannabis space.

The limited banking services would not allow for any out-of-state payments.

“We’re not using the federal system, we’re not using the federal wire. This is a short-term creative approach to deal with this extraordinary problem.” — Democratic Sen. Bob Hertzberg to the AP

Lawmakers reportedly consider this move to be just a temporary strategy under the assumption that cannabis will someday be legalized at the federal level.

The bill now moves to the California state Assembly for consideration.

California’s adult-use cannabis industry kicked off in January and is expected to grow into a $7 billion marketplace — it is the world’s largest legal cannabis market, by far.

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Georgia Parents Treating Son’s Epilepsy with Cannabis Lose Custody of Child

6/01/2018

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Georgia couple Matthew and Suzeanna Brill have been charged with reckless conduct and have lost the custody rights to their 15-year-old son, David, for giving him cannabis as an alternative treatment for the youth’s epileptic seizures, according to a NY Times report.

According to the Brills, once he started using medical cannabis, their son went seizure-free for 71 days — the longest stretch of relief any medication had ever afforded him.

But when someone alerted the Georgia Division of Family and Children Services, officials came on April 20 and drug tested the whole family. Mr. Brill and David tested positive for cannabis, Ms. Brill did not. The parents then admitted to giving cannabis to their son and authorities demanded that they stop.

“We complied, and within 14 hours of complying we were rushing our son to the hospital. And it was one of the most horrific seizures I’ve ever seen.” — Suzeanna Brill to the NY Times

The Brills spent six days in jail, costing Matthew his job and complicating the family’s financial situation. After his seizure, David spent a week in the hospital before he was moved to a group home 60 miles from where his parents live.

“Even with the ramifications with the law, I don’t care. For 71 days he was able to ride a bike, go play, lift weights. We were able to achieve that with David medicated not from Big Pharma, but David medicated with marijuana.” — Matthew Brill to the NY Times

The Brills have set up a crowdfunding campaign to pay for lawyer expenses in the upcoming battle to regain custody of their son, which they say could take a year or more.

Medical cannabis is technically legal in Georgia, but only for a few specific conditions and only in oil form — also, it remains illegal to grow or process cannabis in the state, so there is no legal method of obtaining the medicine.

Federally, cannabis remains a Schedule 1 “drug” with “no medical use.”

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The Four Pillars of Quality Cannabis Processing

6/01/2018

by Christian Sweeney

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Cannabis extraction has been used as a blanket term for what is best described as cannabis processing. A well-designed cannabis process goes far beyond just extraction, overlapping heavily with cultivation on the front-end and product development on the back-end [1]. With this mindset, four pillars emerge as critical capabilities for developing the ideal cannabis process: Cultivation, Analytics, Extraction, and Biochemistry.

Taken alone, the purpose and value of each pillar are quite clear, but it is only when combined that each pillar can be optimized to provide their full capacities in a well-designed process. Because of this, it is best to define the goals of each pillar alone, and then determine how they can be further augmented.

Cultivation

Cultivation is the soul of any horticultural process, including cannabis production. Whether the goal is to convert flavors, pigments, or bioactive compounds into a usable form, a natural process should only harness what is provided by the raw material, in this case, the cannabis flower. That means cultivation provides a molecular feedstock for our process and, depending on our end goals, there are many requirements we may have in mind. These requirements start as simply as mass yield. Different metrics that can be used here include mass yield per square foot or per light. Taken further, this yield may be expressed based not only on mass, but the cannabinoid content of the plants grown. This could give rise to a metric like CBD or THC yield per square foot and may be more representative of a successful grow. Additionally, as scientists race to learn more about the ways individual cannabinoids and their combinations interact with the human body, cultivators will be more focused on identifying cultivars that provide unique ratios of cannabinoids and other bioactive compounds consistently. Further, research into the synergistic effect of terpenes with cannabinoids suggests that terpene content should be another goal of cultivation [2]. Lastly, and most importantly, it is critical that cultivation provides clean and safe materials downstream. This means cannabis flower free of microbial growth, heavy metals, pesticides, and other contaminants.

Analytics

Analytics provide a feedback loop at every step of cannabis production. Analytics may include Liquid Chromatography methods for cannabinoids [3], [4], [5] or Gas Chromatography methods for terpene content [3]. Analytical methods should be precise, accurate, and specific. Ideally, they can identify the compounds and their concentrations in a cannabis product. Analytics is a pillar of its own due simply to the efforts required to ensure the quality and reliability of results provided as well as ongoing optimization of methods to provide more sensitive and useful results. That said, analytics are only truly harnessed when paired with the other 3 pillars.

Extraction

Extraction is best thought of as the conversion of target molecules in cannabis raw material to a usable form. Which molecules those are is up to the goals of your product. The spectrum runs from an extract containing only a pure, isolated cannabinoid-like CBD, to an extract containing over 100 cannabinoids and terpenes in a predictable ratio. There are nearly limitless approaches to take in terms of equipment and process optimization in this space so it is critical to identify which is the best fit for the end-product [1].

Biochemistry

Biochemistry can be split into two main concepts. Plant biochemistry focuses back towards cultivation and allows a cannabis scientist to understand the complex pathways that give rise to unique ratios of bioactive molecules in the plant. Human biochemistry focuses on how those bioactive molecules interact with the human endocannabinoid system, as well as how different routes of administration may impact the pharmacokinetic delivery of those active molecules.

Figure 1: When harnessed in tandem the pillars of cannabis processing provide platforms of research and investigation that drive the development of world-class products.

Each of the pillars require technical know-how and resources to build, but once established they can be a source of constant innovation. Fig. 1 above shows how thoroughly each of these pillars are connected. At the intersection of each pillar, unique technology platforms exist capable of driving an innovation and discovery cycle towards the development of ideal products.

For example, instead of blindly processing cannabis based on cultivar name, I could apply analytics to determine the terpene and cannabinoid content of the incoming raw materials and form specifications to ensure the ongoing quality and consistency of my products. Also, analytics can provide feedback as I tweak variables in my extraction process resulting in optimized methods. By applying plant biochemistry to my cultivation with the assistance of analytics I could begin hunting for specific phenotypes within cultivars that provide elevated levels of specific cannabinoids like CBGA or THCV. By understanding human biochemistry tied with well-characterized extracts, I can begin harnessing the overwhelmingly complex polypharmacology associated with multidrug, multitarget plant cannabinoid therapies [6]. When these pillars are harnessed effectively, we can fully characterize our unique cannabis raw material with targeted cannabinoid and terpene ratios, optimize an extraction process to ensure no loss of desirable bioactive compounds, compare our extracted product back to its source, and ensure we are delivering a safe, consistent “nature identical” extract for use in products.

With these tools in hand, we can confidently set about the task of processing safe, reliable, and well-characterized cannabis extracts for the development of world-class products.

[1] Sweeney, C. “Goal-Oriented Extraction Processes.” Cannabis Science and Technology, vol 1, 2018, pp 54-57.
[2] Russo, E. B. “Taming THC: potential cannabis synergy and phytocannabinoid-terpenoid entourage effects.” British Journal of Pharmacology, vol. 163, no. 7, 2011, pp. 1344–1364.
[3] Giese, Matthew W., et al. “Method for the Analysis of Cannabinoids and Terpenes in Cannabis.” Journal of AOAC International, vol. 98, no. 6, 2015, pp. 1503–1522.
[4] Gul W., et al. “Determination of 11 Cannabinoids in Biomass and Extracts of Different Varieties of Cannabis Using High-Performance Liquid Chromatography.” Journal of AOAC International, vol. 98, 2015, pp. 1523-1528.
[5] Mudge, E. M., et al. “Leaner and Greener Analysis of Cannabinoids.” Analytical and Bioanalytical Chemistry, vol. 409, 2017, pp. 3153-3163.
[6] Brodie, James S., et al. “Polypharmacology Shakes Hands with Complex Aetiopathology.” Trends in Pharmacological Sciences, vol. 36, no. 12, 2015, pp. 802–821.

End

Beth Stavola: Operating a Multi-State Cannabis Company

5/31/2018

a word from our sponsors:

Beth Stavola is a serial cannabis industry entrepreneur who owns dispensaries in Arizona and Nevada; she is also the founder and CEO of Stavola Medical Marijuana Holdings and CBD For Life, and is a member of the New Jersey Cannabis Industry Association‘s Board of Trustees.

Beth recently joined our podcast host TG Branfalt to talk about her experience six years ago transitioning from a career in the upper echelons of Wall Street to the “wild west” of the burgeoning cannabis industry. They discuss the differences among state markets, how to work with politicians who still need to learn the benefits of legalization (and the countless drawbacks of prohibition), the ongoing reform progress in Beth’s home state of New Jersey, how she balances the workload of being a mother with six children and multi-state cannabis entrepreneur, and more.

Listen to the interview via the player below, or scroll down for a full transcript of this week’s Ganjapreneur.com podcast episode!

Listen to the podcast:

Read the transcript:

TG Branfalt: Hey there. I’m your host, TG Branfalt, and you’re listening to the Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Beth Stavola, a cannabis industry entrepreneur who wears a lot of hats, is an owner of multiple dispensaries throughout the U.S., COO and Director of MPX Bioceutical Corporation and a member of the Board of Trustees of the New Jersey Cannabis Industry Association in addition to being a mother of six children. Pretty crazy. How you doing, Beth?

Beth Stavola: I’m doing good, Tim. How are you?

TG Branfalt: I’m all right. Waiting for the thaw here in Vermont, but we’ll get there. Man, I’m having trouble right now.

Beth Stavola: That’s okay. We’re about to get a lot of snow here in New Jersey, too.

TG Branfalt: Let’s hope that we all survive until March, April. Who knows what’s going on. Anyway, I want to talk about you, I want to get to know you, I want to get a bit about your background. How’d you end up in this cannabis space?

Beth Stavola: Well, my background is on Wall Street. I worked, for most of my career, at Jefferies and Company in Institutional Equity Sales. Mostly selling IPOs and secondaries. After children number four and five, twins, I went back to work for about six months. My husband said, “This 7:00 a.m. meeting is probably not working in Manhattan anymore for you.” I started just really doing one-off investments for my family. A deal broker brought me an opportunity to invest $1 million in medical marijuana in Arizona.

I found that it was intriguing and, Tim, better lucky than smart. I’m not going to tell you that I was some incredible visionary. I flew out to Arizona, I came back, and I told my husband I was going to invest $1 million in medical marijuana. He said, “You’ve completely lost your …” Can I say it?

TG Branfalt: Yeah.

Beth Stavola: “You’ve completely lost your shit now.” I bought my first license and it was a pretty crazy story. The first license was on the border of Mexico in Douglas, Arizona. I really planned on investing mostly and not really operating the business. Six and a half years ago, it was the wild, wild west a lot more than it really is now. I ended up having to take over and operate the business. Then I started really enjoying it. I bought two other licenses in Mesa, Arizona. I got super passionate about it. I saw what it was doing to help people and that’s my story.

I remember laying in a bed in a Holiday Inn, staring at the ceiling, and waiting for the Department of Health Services to come down to Douglas, Arizona and give me my first Approval to Operate. I remember just staring at the ceiling all night and saying, “What the hell are you doing?” It’s all worked out. It’s a really exciting business. It’s incredibly challenging with, obviously, the federal illegality. Hopefully, things will be changing there.

TG Branfalt: Can you tell me what the biggest challenge was going from Wall Street to this industry? That’s a night and day sort of jump.

Beth Stavola: You know what? It’s unchartered territory. Because it was in the black market for so long, there’s no playbook and there still is no playbook. When you’re a multi-state operator, like we are, the states change the rules all the time. Sometimes I have to back up and I say, “Okay, which state are talking about now? Is it Maryland, or Arizona, or Massachusetts, or New Jersey?” That’s certainly a challenge.

TG Branfalt: When you were developing the businesses, how’d you end up being so successful? What do you think that you did differently than other people were doing that allowed you to expand and allowed you to get into multiple states?

Beth Stavola: Well, definitely a lot of perseverance. Throwing a lot of stuff against the wall to see what sticks. Learning from my mistakes and the mistakes in this industry are very, very expensive, especially on the cultivation side. Just really taking every meeting. My sister, Julie, works with me amongst a bunch of other fabulous ladies in my office. She would almost make fun of me a little for taking every meeting, but one out of 10 meetings, generally, is going to result in something really great. I really try to leave no stone unturned.

TG Branfalt: You mention your sister. How do you find the right talent? You’re a COO and Director. How do you find the right talent for this space, especially you admittedly didn’t have that experience coming in? Also, what non-cannabis sectors are you finding talent?

Beth Stavola: That’s an interesting question and I talk about it a lot with my counterparts that are multi-state operators. One thing that I joke about is I say it’s like dog years. If you’re in the business six and a half years, it’s like 55 years in any other business. I also joke that I love that sometimes they use five-year-old glamor shots of me because I feel like I’ve aged a lot in the business. It’s really a challenge because the experiences that we’ve had to deal with, whether it’s figuring out what to do with the cash and how to deal with the lack of banking, having your own bank accounts shut down. At a multi-national bank one of my daughter’s communion money accounts shut down because I’m the trustee.

TG Branfalt: Oh, no.

Beth Stavola: Yeah. The banking is one of the most challenging things and that’s one of the things that I really feel like, as a federal government, as one of the things that we have to change quickly, because it really puts people in danger. I sleep with a phone in my bed, certainly, because I have teenagers, right? Also, because I get text messages at night. I know that the stores are closed, all my people have been walked by security to their vehicles, everything has been secured, and that’s really important to me. We’re one of the lucky ones that generally has banking across the board, but it’s a real challenge for the industry.

TG Branfalt: Where are you finding your people? Where are you finding the upper echelon of your executive team and the people who are on the ground in your dispensaries?

Beth Stavola: Former Wall Street, somewhat on the executive team. I feel like if you could survive there, especially during the time period where I was there, you could pretty much wade through anything. My sister, her name is Julie Winters, she was in operations for credit derivative swaps at Barclays. Finding people that come from very highly regulated businesses, gaming, things of that nature.

TG Branfalt: You mentioned the high regulation. How do you decide which markets to enter? Are there specific things that you look for with regard to the states?

Beth Stavola: Yes. We will never be in an unlimited licensing state. You’ll never see us make an acquisition or try to move into, say, a Colorado, an Oregon, a Washington state. Limited licensing states, highly regulated. If it’s a medical state, chronic pain being on the list. It’s generally about 70% of what the medical cards are written. It really depends on how well the state has written the rules. One of the states we’re opening in the next 60 days is Maryland. I’ve been really impressed with Maryland’s program.

TG Branfalt: When it comes to Maryland, I know that there’s a lot going on in terms of the rules being challenged by some minority lawmakers with the social equity rules. Is that something that’s still going on and something that you’re having to deal with?

Beth Stavola: You know what? It is still going on and, frankly, it should be going on, because I’m very, very behind this social justice reform. We cannot be giving these licenses out to only rich, white males when we have men and women of color that are sitting in jail for doing the same exact thing that these licenses are being given out for now.

TG Branfalt: Of the states that you’re operating in, is one more challenging than the other? Do you have a little more trouble in one state versus another? I’m just trying to get a sense of, for multi-state operators, what they might have to deal with if they choose to take that route.

Beth Stavola: Sure. One of the things that I did with the NJCIA is I think the state of Nevada did it right. Now, that said, it is the highest regulated state that we operate in at this very moment. Nevada knows how to do it right, right? They’ve bene regulating highly regulated businesses for years. One of the suggestions that I had for the NJCIA was, you know what? Our new Governor, Phil Murphy, yay Phil, he wants to do so much for this state and changing the medical program here in New Jersey is first and foremost a way that we will head to adult use here, but there’s no state that has switched to adult use better than the state of Nevada.

Senator Tick Segerblom, I’m going to pat him on the back for that. He has done an incredible job pushing that agenda forward there. He and I were able to, along with Dara Servis and Hugh O’Beirne, with the NJCIA, really put together a nice program for state and local officials of New Jersey, to go and see how Nevada did it. They had a really well thought out medical program and, if you think about it, in November of 2016, Massachusetts and Nevada both voted in adult use marijuana. By July 1st of 2017, Nevada had it implemented. That’s an absolute record.

Massachusetts, we’re still waiting for the recreational licenses and we’re looking at about July of 2018. I really wanted some of these lawmakers in New Jersey, as it’s my home state, to see a state that I believe does it right. What we do is we operate all the states to the highest standard of the most regulated state that we operate in, which would be Nevada.

TG Branfalt: I want to talk to you a lot more about New Jersey. I’m on the east coast. I’ve covered New York a whole lot and they’re sort of intertwined; but before we do that, we’ve got to take a break. This is Ganjapreneur.com podcast and TG Branfalt.

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TG Branfalt: Hey, welcome back to the Ganjapreneur.com Podcast. I’m your host, TG Branfalt, here with Beth Stavola, cannabis industry entrepreneur, COO and Director MPX Bioceutical Corporation, member of the Board of Trustees of the New Jersey Cannabis Industry Association. That’s what I want to talk to you about. I want to talk to you about Jersey. You had said before that the first order of business was to strengthen New Jersey’s medical cannabis program. What is happening in New Jersey? You mentioned that Murphy, he’s a proponent of recreational cannabis, there’s bills that have been introduced. What is going on in New Jersey?

Beth Stavola: Right now, Governor Murphy, last week, in his budget speech, he basically is assuming approximately $80 million on revenue coming into the state in 2019, so we really have to get it going. Right now, I believe there’s about $2 million in current medical program; which is, what I will call, an abysmal program which was under Governor Chris Christie who-

TG Branfalt: Boo.

Beth Stavola: Yeah, he inherited it, and didn’t want it, and made it extremely difficult for the current six operators. There’s a lot of politicking going on in New Jersey right now. As you might imagine, the current six operators have suffered through a very difficult program. I have tremendous respect for them, but what we have to do is we have to increase the program. Six operators cannot handle a medical program and, certainly, not an adult use program in the state of New Jersey.

My personal thought is that there should be 100 dispensaries, 25 cultivations, and 25 production facilities. That goes with experience. That is what I’ve seen work and not work for both the patients and for the businesses. We have to have it be healthy for the businesses, but we can’t have it be monopolistic either, right? There’s certainly some politicking going on and quite a bit of pushback from the current operators. We’ll certainly figure that out as we go along.

I was just at a meeting today with regard to this and there were some state and local officials that were able to go on this trip that the NJCIA, we had all put together, to go to Nevada and actually listen to the Nevada politicians talk about how they did it and I believe that they did it right. Then this morning, we had a meeting in New Brunswick for any state and local politicians that could not end up taking that trip. Just to go over all of the issues and allow for them to ask industry experts questions. It was actually a really great meeting.

TG Branfalt: What sort of questions are lawmakers in New Jersey asking? We have reports from Colorado, we have reports from legal states, so what else can they be curious about at this point?

Beth Stavola: Well, one of the questions could be, “What do I tell my constituents when they say marijuana is a gateway drug?” My answer to that is I’ll tell you the flip side. I think marijuana is an exit drug and it’s an exit drug for a lot of people. We have an opioid crisis in this country. It’s an epidemic. We consume, as Americans, 85% of the opioids in the world. Yeah, unbelievable. It’s a major, major problem. I watch people get off of opioids and they’re smoking a vape pen.

Do you know the satisfaction that it gives you to watch a veteran who’s been just handed pill, after pill, after pill, prescription, after prescription from the VA, and have them just smoking a vape pen that’s not going to hurt them? I call it an exit drug and I think that really helps some of these local politicians to be able to go and talk to their constituents about it. All on my executive team, we’ve suggested, bring us to your local meetings. I’m a mom of six kids. I want to protect the kids, I want to make sure that we have childproof packaging, we’re not making things that are attractive to children. There’s a lot of things that go into it and I think it’s new territory. The politicians are really learning it as they go hand-in-hand with us.

TG Branfalt: In your opinion, what do you think legalization in New Jersey would mean for other east coast states, especially New York? You have Governor Andrew Cuomo of New York who has no interest in legalizing recreational cannabis use, but it’s hard for a lot of New Yorkers, people who are plugged in, to say that Cuomo’s going to let New Jersey reap all of the rewards from that industry. In your opinion, you operate in a variety of states, you live in New Jersey, which is very close to legalization, what does it mean for the east coast states if Jersey goes green?

Beth Stavola: Well, you know what? I think it’s really going to force Cuomo to go green, frankly, and I have heard some interviews that he is actually softening up to that. I think that the proof will be in the pudding when you’re actually seeing … I heard a statistic today that Colorado, which is, from a population standpoint, I think 3 million less residents than New Jersey, took $45 million worth of marijuana money and put it into the school system. New Jersey is so desperate for tax money and I’ve heard this joke, and it’s kind of scary, but people say, “Last one out of New Jersey, shut the lights out.” I know. It’s my hometown and it’s been so frustrating for me to see these marijuana programs that are very successful in these other states and see people helped, and come home, and see the same exact diseases, and not be able to help people here.

TG Branfalt: What exactly is holding the reforms back? You have a governor who is supportive of this. That’s not enough to push these lawmakers into supporting common sense recreational cannabis legislation?

Beth Stavola: Politics, politics, politics. There was, I will call him, an agitator, Assemblyman Joe Danielsen, who was at the meeting that I was at this morning and introduced himself as a firefighter. He was fighting back on the social reform piece as a wonderful, wonderful man, Leo Bridgewater, was speaking. Who was a decorated war vet with PTSD, who he’s just wonderful and a member of the NJCIA. Pushing back and it seemed like there was an agenda there. It could’ve been, in my opinion, to protect the six current operators and not allow for additional operators to come in.

TG Branfalt: It’s stunning to me, it really is. I want to talk to you about being a mother of six in this industry. Before we do that, we’ve got to take a break. This is the Ganjapreneur.com Podcast. I’m TG Branfalt.

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We believe that this fear is totally unreasonable and that cannabis business owners deserve access to the same service and resources that other businesses are afforded, that they should be able to hire consultation to help them follow the letter of the law in their business endeavors, and that they should be able to provide employee benefits without needing to compromise on the quality of coverage they can offer. This is why we created the Ganjapreneur.com Business Service Director, a resource for cannabis professionals to find and connect with service providers who are cannabis friendly and who are actively seeking cannabis industry clients.

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TG Branfalt: Hey, welcome back to the Ganjapreneur.com Podcast. I’m your host, TG Branfalt, here with Beth Stavola. She’s the COO and Director of MPX Bioceutical Corporation and a member of the Board of Trustee of the New Jersey Cannabis Industry Association. She’s also a member of six, which is something I want to talk to you about. What is the reaction when … I don’t have any children. I tell people I work in the cannabis space and they’re like, “Oh, that’s cool.” What the reaction when you tell other parents what you do?

Beth Stavola: Six years ago, I didn’t. It was not popular, it was not cool, I was telling … Why are you flying to Arizona so much? Why are you flying to Nevada? I was buying commercial real estate. It was not a lie, I was buying commercial real estate, but I was also operating a medical marijuana business. I was concerned that other parents would do things like not let their children play with my children because, “You can’t play with Elle Stavola because her mom’s the pot mom.” Now, it’s very, very different. It’s like I get texts from all the kid’s parents. Like, “Happy 420…” It’s very different now, but what a difference six years makes. It’s still federally illegal and I’m not seeing a huge amount of movement in Congress. I’m hoping that’s going to change. I think that the kid’s parents are extremely supportive.

TG Branfalt: Can I ask? What the process was with your own children? I’m sure they know what you do, so do you mind telling me what that was like?

Beth Stavola: Whoa, that was interesting to say the least. My oldest two are 21 and 18 now. They were young teens and I walked them through the process. I actually took them out there. I explained to them what I was doing and it was kind of like a pharmacy. We were helping people that couldn’t be helped with other things, that didn’t want to take pills, that wanted to treat themselves naturally. Explaining to them that no one has ever died in the history of the world of a marijuana overdose, but people die of opioid overdoses all the time.

Their cousin died five years ago, my nephew, God rest his soul, of a heroin overdose. That was very painful for our family. The statistics speak for themselves, Tim. With a good medical program, you immediately see a reduction in opioid deaths of approximately 30%. I don’t know how anybody argues with these numbers. “The numbers don’t lie,” I say all the time.

TG Branfalt: How do you react to this fear mongering about legalization and the alleged negative effects it has on youth? A lot of parents with six children aren’t really as enlightened as you. I’m not trying to disparage anybody, but people who say, “Well, I have children, so we can’t legalize cannabis.” Right?

Beth Stavola: Well, it’s funny. There’s a lot of people that are reaching out to us in New Jersey that are saying, “Oh, we want to try to operate in New Jersey.” My husband’s best friend said to me that he’s had people come up to him and say, “I can’t believe what Beth Stavola’s doing. She’s really pushing this in our state and she should be ashamed of herself as a mother of six kids.” It runs the whole spectrum of people wanting to have me help them in the industry to telling me that I’m selling the Devil’s lettuce.

I think it’s really all about education and I think this fear mongering is because people just don’t know. They don’t know the statistics, they call it a gateway drug all the time, it is not. Talk to any teenage child right now. It is so much easier to get marijuana than it is to get alcohol. MPP slogan, it’s regulated adult use marijuana like alcohol. Tax it, regulate it, 21 and over.

TG Branfalt: You’re obviously very passionate, you’re very successful. I applaud your activism. You’re an activist on a daily level. You have to be, given the position that you’re in as a mother of a large family. What advice do you have for other entrepreneurs looking to either enter this space or those entrepreneurs who may want to get into the space in some capacity, but are worried about the effect that it could have on their family?

Beth Stavola: First off, the effect on your family is if you educate your family, they will get it. I know my parents had a really difficult time. I come from an extremely conservative background and, now, I have my mom running around her country club like, “Guess what Beth and Julie do.” Yeah. Like sending me articles about us. She’s so proud. She wants to be interviewed by you. Advice for entrepreneurs: check your ego at the door, don’t ask any of your employees to do anything that you wouldn’t do, share the wealth, there’s plenty to go around, and that’s important to me.

When I did the public deal, the most important thing to me was that every single one of my employees became an owner of this company. Each year they get stock options and, I have to say, everybody treats this company as an owner. Every cultivator, every janitor, every bud tender. You know what? I’ve given away a lot of my own money and my own stock. I would just say there’s a lot to go around, and pay it forward, and take care of the people that actually make the business successful. Greed is a very bad thing.

TG Branfalt: It’s a really incredible story. I really, really appreciate you taking the time, especially some of the personal stuff. Again, I don’t have any children, I don’t have that experience. Both of my parents used cannabis my entire childhood. I grew up it was fine, it was totally cool.

Beth Stavola: I love it.

TG Branfalt: Where can people find out more about you? Where can they find out more about your dispensaries, about MPX Bioceutical? Tell me where we’re going.

Beth Stavola: Yeah. [inaudible 00:33:12]. MPX Bioceutical.com. You could go on our website. We are traded on both OTC and the Canadian Stock Exchange. OTC is MPX, like Mary, Paul, Xavier, EF, like Elizabeth Frank. MPXEF. Then on the Canadian Stock Exchange it’s MPX.CN.

TG Branfalt: Again, I want to thank you for taking the time to come on the show. I know that you’re super busy. I really look forward to seeing just how you develop, how the company develops, and where you go from here. It’s a really, really incredible story and I thank you for sharing it.

Beth Stavola: Thank you so much. If anybody wants to follow us on Instagram, it’s @MPX_AZ. We have a lot of cool pictures and information-

TG Branfalt: I’ll check that out as well.

Beth Stavola: … On there.

TG Branfalt: You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of the Ganjapreneur.com and in the Apple iTunes store. On the Ganjapreneur.com website, you will find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by TRIM Media House. I’ve been your host, TG Branfalt.

End

Los Angeles, California Cracks Down on Unlicensed Cannabis Operators; 160 Arrested

5/31/2018

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A crackdown on unlicensed commercial cannabis locations in Los Angeles, California yesterday resulted in 160 arrests and 36 criminal cases against 142 people, according to a KTLA report. Los Angeles Police Department Officer Stacy Spell said, since January, the department has served 54 search warrants on illegal shops, seizing more than 6,200 pounds of cannabis and 29 guns. Wednesday’s operation netted more than $300,000.

Under Prop. 64, the violations are misdemeanors. Those convicted face up to six months in jail and $1,000 in fines per violation. City Attorney Mike Feuer told KTLA that he believed every day they were operating would count as a violation.

“If you’re operating an illegal cannabis shop selling medical marijuana then you’re going to be subject to criminal prosecution.” – Feuer to KTLA

In April, the California Bureau of Cannabis Control sent more than 1,000 cease-and-desist letters to unlicensed operators. Regulators have used advertising platforms, such as Weedmaps, to find illegal shops. Weedmaps has argued that many of the unlicensed businesses advertising with the platform are protected under the state law until January because they are cannabis cooperatives and the state’s old medical cannabis laws allow such non-profits to operate until the new law’s sunset clause takes effect.

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Montana Hemp Farmer Wins Contract to Use Fed-Controlled Water for Irrigation

5/31/2018

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A Montana hemp farmer has secured a contract to use federally-controlled water to irrigate her plants, the Associated Press reports. Kim Phillips had battled the Helena Valley Irrigation District and the U.S. Bureau of Reclamation for more than a year to use water from the Canyon Ferry Reservoir to water her 12-acre hemp crop.

“It really is an extraordinary day for hemp and the hemp industry. It shouldn’t take this long to get water for your hemp, it just shouldn’t.” – Phillips to the AP

Phillips’ crop is legal under the state’s Industrial Hemp Pilot Program but the Bureau of Reclamation bans the use of water from federally-controlled reservoirs on controlled substances, including hemp – despite the fact that the 2014 Farm Bill allows states to implement industrial hemp research programs. Steve Davies, area manager for the Bureau of Reclamation, said the agency is “satisfied with the decision.”

“It’s important that we took the time and got the decision right. We had to make sure that the program she is operating under fits the exemption in the federal Farm Bill. Going forward, we will continue to evaluate these on a case-by-case basis.” – Davies to the AP

Last year, federal lawmakers blocked a proposed budget amendment explicitly allowing hemp cultivators use of federally-controlled water. That amendment, the Industrial Hemp Water Rights Act, was approved by the Senate Appropriations Committee but was removed from the final version of the budget bill.

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Michigan Extends Deadline for Unlicensed Canna-businesses to Remain Operational

5/31/2018

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The Michigan Department of Licensing and Regulatory Affairs is allowing unlicensed medical cannabis dispensaries to remain open until Sept. 15 without risking future licensing eligibility. Operators had faced a June 15 deadline; however, regulators have been slow in issuing licenses under the new regime approved by lawmakers in 2016.

According to LARA, the extension allows the Medical Marihuana Licensing Board “enough time to investigate and authorize facility operator licenses in order to make sure that access to medical marihuana is maintained.”

“Extending the deadline to September 15th will make sure that this law is implemented correctly and assure that potential licensees are thoroughly reviewed. It is important that we ensure that medical marihuana patients have continued access to their medicine.” – LARA Director Shelly Edgerton, in a press release

Potential operators were required to turn in their state application by Feb 15. The licensing board said they had received more than 500 applications by the deadline and 141 of those were complete, while 411 still required municipality approval. In March, LARA sent more than 200 cease-and-desist letters to medical cannabis operators – 159 of them to businesses in Detroit.

The extension was included in emergency rules for the medical cannabis program approved by Gov. Rick Snyder yesterday. Those rules will remain in effect for six months.

End

Canadian Licensed Producer INDIVA Ltd. Seeks An Edge with Cannabis Edibles

5/31/2018

by Featured Announcement

a word from our sponsors:

Ontario-based licensed cannabis producer INDIVA Ltd. has been busy preparing for recreational cannabis legalization in Canada later this year. INDIVA Ltd. is a small to mid-cap licensed cannabis producer with production and processing facilities in London, Ontario. The company is publicly traded on the TSXv under the symbol NDVA.

INDIVA Ltd. believes in providing clients with high-quality products and customer service. The company has invested heavily in refining production methods to develop a resource efficient process that delivers repeatability and a standardized product. INDIVA Ltd. is also focused on conducting business in an environmentally and financially sustainable manner. From state-of-the-art production facilities, to the growing list of valuable partnerships and licensing agreements which are an integral part of a business framework designed to provide INDIVA Ltd. with multiple avenues to profit.

The INDIVA Ltd. advantage

A big problem with many smaller licensed producers in the cannabis sector is that they are in a state of “pre-production” and “pre-sale,” meaning that once legalization occurs, they may be left scrambling for ways to turn their investment into profits. Many cannabis licensed producers are also neglecting to diversify or find a market niche they can compete in, which may mean that they can be easily overwhelmed by larger companies as they attempt to enter the market.

INDIVA Ltd. has been watching the developing cannabis sector closely, so instead of expanding rapidly in an effort to become one of the industry’s “big players,” they have focused on creating an effective, sustainable business.

INDIVA Ltd. owns its means of production at its 40,000 sq ft. facilities and is completing the expansion to full capacity in 2018. INDIVA’s Master Grower, Pete Young, is already providing cannabis products to over one thousand medical patients through a compassion program. The company knows how to grow, how to package, and how to deliver. All that’s missing is for recreational cannabis to be legalized in the country so that full production can get underway.

“We focus our efforts on making sure that we are sustainable as a company, and are always able to stand on our own. This has driven us to control all aspects of our business, from production, to branding and sales. We are cannabis producers, and that means flowers, but we’ve also been working hard to establish ourselves in some often-overlooked markets (such as edibles), to ensure we have the necessary revenue sources to achieve profits. I think this approach makes us unique and gives us the opportunity to grow and become massively successful.” — Niel Marotta, CEO of INDIVA Ltd.

Recently, INDIVA Ltd. has made two important agreements, helping solidify access to revenue streams that are susceptible to rapid growth. First, a 15% stake in DeepCell Industries was acquired, then days later, a 50/50 joint venture with edibles licensor Bhang Corporation appeared in the news. INDIVA Ltd. is establishing itself in the edibles and derivative product market, and gaining several competitive advantages over many of its competitors.

The DeepCell Industries license gives INDIVA Ltd. exclusive rights to manufacture, market and sell the complete line of DeepCell products in Canada. This includes the company’s innovative cannabis infused “Ruby™” sugar products and DeepCell’s patented Crystal Fusion™ technology. This technology is unique in that it mechanically fuses cannabinoids, instead of using additives for chemical fusion. The process of chemical fusion is a main reason that cannabis edibles always taste like cannabis, and has been a major hurdle in creating edibles for the mass consumer market. With Crystal Fusion™ and Ruby™ sugars, there is a huge variety of possible product applications. Everything from coffee or tea, to pancake mixes to energy drinks can become viable cannabis infused consumer products. Even salt can become a “flexible edible”, infused with cannabinoids. This technology is going to be a gamechanger for cannabis edibles.

The Bhang Corporation joint venture is similarly innovative and important. INDIVA Ltd. has invested $1 million USD to purchase a 4.9% equity interest in Bhang Corp. on a fully diluted basis. The joint venture gives INDIVA Ltd. exclusive Canadian rights of sale and manufacture, as well as rights to export the branded products internationally. Created by a master chocolatier, Bhang licences cannabis edibles such as chocolate bars, mouth sprays, gums and vapes, as well as distillates and beverages in the United States.

With these two agreements in place, INDIVA Ltd. is establishing itself as a front runner in the cannabis edibles market. INDIVA Ltd. has the tools to create and sell a superior cannabis edible product, and this is a very important thing to pay attention too. Cannabis edibles offer a separate market for cannabis producers, especially when considering that edibles are the future for a large portion of cannabis users who do not “smoke” their cannabis. This includes those looking for THC or CBD in pill form, or those who wish to remain discreet about their cannabis use.

A recent report published by Arcview Market Research and BDS Analytics, has placed a $57 billion USD valuation on global consumer cannabis spending. Cannabis edibles will make up a large portion, if not the majority of that valuation, something INDIVA Ltd. plans to take full advantage of.

For now, the legalization of edibles is on hold due to regulations and the government focusing on rolling out recreational legalization first. However, once the government understands and figures out how to regulate a cannabis edibles market, the race will be on to join in.

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The Sprinkles of Cannabis Offers Consumers a New Kind of Edible: Cupcakes

5/30/2018

by Featured Announcement

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DENVER, CO, May. 23, 2018 — Cannabis cupcake company Jade & Jane broadens consumer’s choices in the edibles market with the recent introduction of single serving, recreational, 10mg THC-infused cupcakes. Jade & Jane’s products are available to retail customers through licensed Colorado recreational dispensaries. Wholesale dispensary customers may contact Jade & Jane to place orders. Ordering through LeafLink is coming soon.

Started in 2016, Jade & Jane offers cannasseurs a delicious, handmade alternative to typical, “herbal tasting” edibles. Attractive visual appeal makes Jade & Jane products highly desirable. “We want consumers to feel excited when opening our cupcakes for an anniversary, birthday, or treat,” said Jade & Jane CEO Stephanie Silva.

“Our products are genuinely unique in the Colorado cannabis industry. Jade and Jane cupcakes provide a high quality, reliable, and steady experience because they contain tasteless THC powder. To begin we’re offering traditional flavors like chocolate and vanilla bean, but more interesting options are coming soon. Cupcake edibles offer convenient cannabis consumption with familiarity and nostalgia. It’s my hope we can help remove the stigma from cannabis use by offering the first mainstream edible that’s as American as apple pie and as classic as a hostess cupcake,” said Mrs. Silva.

Jade & Jane plans to release a 90mg recreational cupcake multi-serving product in the near future. Notably, Jade & Jane’s cupcakes are allergen friendly and vegan/dairy free. Additionally, their packaging is child resistant and C.F.R. Title 16, Part 1700.15 & 1700.20 compliant. In an event on May 30th, 8 AM EST Jade & Jane will be doing a Reddit AMA on r/GlitterBongs.

About Jade & Jane: Jade & Jane is a female owned, licensed Denver, Colorado MIP (Marijuana Infused Products) manufacturer of recreational cannabis-infused cupcakes. Learn more at jadeandjane.com or call (720) 441-3209. Email Questions@JadeandJane.com, or follow Jade & Jane on Instagram, Facebook, Twitter, Pinterest, and LinkedIn.

If you would like more information please contact Stephanie Silva at (720) 441-3209 or email Questions@JadeandJane.com.

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California Lawmakers Kill Cannabis Bills as Session Winds Down; 7 Remain

5/30/2018

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Editor’s update: A previous version of this article indicated incorrectly that the delivery-focused bill outlined below had already been rejected by lawmakers. At the time of this update (12:05 pm PST), the bill is currently on the California Senate floor.

Several cannabis-related bills have failed in California just days before the deadline for them to pass the chamber in which they were introduced, East Bay Express reports. One would have cut the excise tax on retail cannabis sales and suspended the cultivation tax; another would have given medical cannabis patients the same rights as those prescribed opioids.

A third bill, currently on the Senate floor, would prohibit municipalities from banning delivery services.

The tax-reduction bill would have reduced retail excise rates from 15 percent to 11 percent and suspended the cultivation tax until June 1, 2021. The excise tax, paired with state sales taxes and local taxes, push total taxes in some localities to as much as 40 percent at the point-of-sale. Amy Jenkins, a lobbyist for the California Cannabis Industry Association, said “killing that bill is a big win for the black market.”

The medical cannabis patients’ rights bill would have allowed the population the same “reasonable accommodation” as other prescription medication takers under the Fair Employment and Housing Act. The measure was opposed by the Chamber of Commerce and Department of Justice.

The bill to prevent towns and cities from banning cannabis deliveries is opposed by two powerful lobbies. The League of California Cities and California State Association of Counties oppose the measure because it would prevent municipalities from self-direction. More than two-thirds of California counties have banned cannabis commerce, including deliveries.

Several other bills can still be considered by the Legislature, including measures allowing cannabis events at any venue in any city that allows them; cannabis farmers markets; the creation of an equity program; an expungement bill; allowing children to take their cannabis medications at school; the creation of a state-run cannabis bank; and allowing laboratories to test home-grown products.

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Federal Alcohol Regulators: No CBD in Beer

5/30/2018

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