A cropped panorama photo of Denver, Colorado.

Colorado Regulators Suspend Denver, Colorado Cannabis Licensee; Police Arrest 12 Over Alleged Illegal Sales

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Eight Sweet Leaf stores in Colorado have had their licenses suspended and 12 people have been arrested as part of a yearlong investigation by local law enforcement not federal – into illegal cannabis sales, according to a Cannabist report.

All 10 Sweet Leaf shops in Denver and one in Aurora were closed on Thursday; however, the shop in Portland, Oregon remained open, according to the report.

According to a press release from the Denver Department of Public Safety, “the alleged criminal actions are related to the allowable [one-ounce] amounts established by Amendment 64.”

Sweet Leaf representatives told the Cannabist that they were “cooperating with the authorities to resolve this issue and hope to have all of their stores back in operation as soon as possible.”

“It is unclear at this point exactly what actions, if any, Sweet Leaf took to cause the city to issue this order.” – Sweet Leaf, in an email to the Cannabist

According to the suspension order, regulators can suspend a license “when the director has reasonable grounds to believe that a licensee has engaged in deliberate and willful violation of any applicable law or regulation.”  

A hearing is expected within 30 days.

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MassRoots Founder Resumes Control Following Shakeup

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Isaac Dietrich is back in as MassRoots CEO following his ouster in October by the Board of Directors.

What happened? On Oct. 16, board members voted to remove Dietrich and install then-Vice President Scott Kveton following MassRoots’ deal to acquire CannaRegs – a technology platform that tracks federal and municipal cannabis regulations. Kveton and other board members believed the $12 million price was too steep. CannaRegs President Amanda Ostrowitz voided the deal two days after it was announced the board had voted to remove Dietrich.

On Nov. 14, MassRoots filed a lawsuit against the founder, alleging that Dietrich had paid himself and others without authorization amounts totaling $250,000; and committed “serious misconduct,” including “illegal drug use at the workplace,” and sexual misconduct, according to a Cannabist report, citing the complaint.

All the while, Dietrich remained the company’s largest shareholder and had threatened to hold a shareholder proxy vote to reinstate him; instead, on Dec. 12, three board members, Ean Seeb, Vincent Keber, and Terence Fitch, resigned from the company’s board, and Kveton resigned as CEO and left the company the following day, according to a Thursday 8-K filing. As part of the separation agreement, the board members received an undisclosed stock-and-cash package while Kveton received a $45,000 severance package and his 1.5 million-plus stock shares were “accelerated and vest immediately upon his resignation.”

“My slate of directors was appointed, Scott Kveton resigned today, and I was reappointed CEO. So it achieved everything the proxy aimed to achieve, but it was done much more rapidly and at a much lower cost.” – Dietrich to MJBizDaily

Charles Blum, former president and CEO of QS Energy; Cecil Kyte, Rightscorp CEO; and Nathan Shelton, former director of QS Energy, were named to the MassRoots board. The lawsuit has been dropped.

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Colorado Revenue Department Releases ‘Highly Desired’ Data Trove

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The Colorado Department of Revenue is now releasing the state’s cannabis sales data from Jan. 2014 to the present and will release monthly reports going forward on the seventh business day of each month.

The Revenue Department’s Office of Research and Analysis will produce the reports which will show gross sales minus wholesale sales for retail and medical cannabis shops county-by-county.

“We know this information is highly desired by the general public, media and researchers. To that end, in our efforts to be as transparent as possible, we will now provide aggregate sales data. That, coupled with state tax revenue data already provided, will give an accurate picture of the financial footprint of this burgeoning industry.” – Mike Hartman, executive director of the Colorado Department of Revenue, in a press release

According to the data already released by the department, Colorado sales have reached more than $1.2 billion so far from January to October and will likely exceed 2016’s total sales of more than $1.3 billion by year’s end. The report shows that since legalization in 2014, cannabis sales have exceeded $4.2 billion.

The state’s monthly sales data shows that retail sales in the state peaked last July – to about $140 million – but fell slightly in September to about $130 million.

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Aurora Cannabis and CannaRoyalty Close to International MMJ Tech Deal

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Canadian cannabis firms Aurora Cannabis and CannaRoyalty have signed a letter of intent which would give Aurora exclusive rights to MüV brand products – to which CannaRoyalty holds the licensing rights – in Canada, Europe and Australia.

The products covered under the agreement include:

  • MüV Metered Dose Inhaler
  • MüV Transdermal Patch
  • CBD Sports Gel
  • CBD Hydrating Lotion
  • THC Sports Gel
  • THC Hydrating Lotion
  • THC Pain Relief Cream

The products are developed by CannaRoyalty investee AltMed Enterprises. CannaRoyalty holds an 8.3 percent equity stake in AltMed, along with licensing rights for MüV products in carious jurisdictions. AltMed is headquartered in Sarasota, Florida.

“This agreement with Aurora represents a significant opportunity to accelerate the growth of AltMed’s award-winning MüV product line on an international scale, leveraging our relationship with one of the world’s most dynamic cannabis companies. The MüV line meets the growing need for specialized products with alternative delivery mechanisms, especially in critical jurisdictions, such as Canada and Germany, where consumers to date have been limited in terms of product choice.” – Marc Lustig, CannaRoyalty CEO, in a press release

The letter of intent gives Aurora exclusive rights for 90 days to negotiate a final agreement.

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Cleveland School of Cannabis Receives State Approval

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The Cleveland School of Cannabis, formally known as Cleveland Cannabis College, has received approval from the Ohio Board of Career Colleges and Schools – making them the first school east of Colorado with state-approved career programs.

The board approved all four programs by the school – Cannabis Business, Cannabis Horticulture, Medical Applications of Cannabis, and Cannabis Executive –  contingent upon an occupancy permit from the city, which is expected this week. The certificates offered by the school are considered the same level as an accounting certificate, real estate certificate, paralegal certificate, among others.

“As an educational facility that is working to advance the study and understanding of cannabis in our country today, we are incredibly honored to be the second state approved institution in the country right now.” – Richard Pine, dean of recruitment and public relations, in a press release

Registration for classes at the school are ongoing with courses expected to begin next month. The state-approved certificate programs run from $6,500 to $12,500. Program hours range from 136 to 266.5. Single courses are also available, as well as state-required classes for physicians and dispensary owners and employees. Pine indicated that the state’s cannabis industry is expected to create more than 4,000 jobs.

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A budding, young cannabis plant in someone's indoor grow operation.

Rejected Ohio MMJ Applicant Sues State Over Racial Equity Provisions

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A would-be medical cannabis cultivator in Ohio is suing the state over the racial-equity provisions included in the licensing process which forced the firm out of contention, Cleveland.com reports.

The complaint, filed on behalf of PharmaCann Ohio, LLC, argues the “racial quota” provisions in the state medical cannabis law run afoul of the state Constitution’s equal protection clause. The suit seeks to force the state to award licenses to the top 12 scoring applicants rather than bumping high-scoring companies in favor of those with lower scores but run by minorities. The plaintiffs are also seeing a temporary order to stop the Department of Commerce from issuing provisional licenses to the two minority-led firms that received licenses despite ranking outside of the top 12.

According to the report, PharmaCann ranked 12th, while Parma Wellness Center, LLC ranked 14th, and Harvest Grows, LLC ranked 23rd – yet both were selected by the Commerce Department.

“Our company values diversity and inclusion. Remedying the effects of past discrimination is a worthy goal of the Ohio legislature. In this case, however, there simply is no basis in evidence that economic disparity exists in an industry that itself doesn’t yet exist in Ohio.” – PharmaCann policy director Jeremy Unruh to Cleveland.com.

The state’s medical cannabis law requires that at least 15 percent of industry licenses are awarded to “economically disadvantaged” groups, including; African-Americans, Indigenous populations, Asians, and Hispanics or Latinos.

The complaint contends that the businesses were not actually “economically disadvantaged” because they were able to pay the $750,000 application fee in an escrow account or surety bond.

According to the report, at least one more lawsuit by a rejected applicant is expected to be filed in the state.  

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WHO Report: No Evidence of CBD-Related Public Health Problems

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The World Health Organization has released a report concluding that there is “no evidence” of “public health related problems associated with the use of pure CBD.”

“In humans, CBD exhibits no effects indicative of any abuse or dependence potential. … CBD is generally well tolerated with a good safety profile. Reported adverse effects may be as a result of drug-drug interactions between CBD and patients’ existing medications.”

The report notes that, under experimental conditions, CBD can be converted to THC, however, “it does not appear to occur any significant effect in patients undergoing CBD treatment.” The authors point out that while there is significant evidence that CBD can be used to treat epilepsy, there is mounting evidence that it is also useful as a neuroprotective, antipsychotic, anti-inflammatory, antitumor, anti-asthmatic, and analgesic.

“Another possible therapeutic application which has been investigated is the use of CBD to treat drug addiction. A recent systematic review concluded that there were a limited number of preclinical studies which suggest that CBD may have therapeutic properties on opioid, cocaine, and psychostimulant addiction, and some preliminary data suggest that it may be beneficial in cannabis and tobacco addiction in humans. However, considerably more research is required to evaluate CBD as a potential treatment.”

The report comes as the organization is considering changes to international restrictions on drug use. The U.S. Food and Drug Administration called for public comments on the issue as part of their response to the WHO proposal.

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Medical cannabis plants inside of a MMJ patient's indoor home grow.

Canadian Provinces to Receive 75% of Cannabis Tax Revenues

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Under a new deal with the federal government, Canadian provinces will receive 75 percent of taxes derived from the legalized cannabis industry after the feds initially proposed a 50/50 profit share, according to a BBC report. In October, Prime Minister Justin Trudeau proposed a 10 percent excise tax on recreational products that should not exceed 10 percent of product prices.

The deal allows the federal government to keep 25 percent, so long as that share does not exceed $78 million per year; additional revenues will be redistributed to the provinces. The feds also suggest that the price-per-gram be set around C$8 in order to weaken the illicit market.

Provincial officials argued that they should receive the lion’s share of the profits because they bear the majority of the costs associated with regulation, public health, law enforcement, and distribution.

Conservative Canadian senators are seeking to delay the adult-use rollout – which Trudeau hopes to launch on July 1. Conservative Sen. Claude Carignan suggests that the reforms could be pushed back to the end of 2018 so lawmakers can do their job “properly.” Meanwhile, Prince Edward Island, Manitoba, Newfoundland and LabradorNova Scotia, Alberta, and Quebec have unveiled provincial measures to regulate the industry.

According to the BBC report, Canada’s recreational cannabis market is estimated to reach C$3.7 billion to C$5 billion.

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A dispensary worker stuffs pre-rolled joints over a rolling tray in the back of a Portland, Oregon dispensary.

Study: Cannabis Industry Employees More Optimistic About Employers than Rest of U.S. Workers

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According to a study from PayScale, cannabis industry employees are more optimistic about the future of their employers than the rest of the U.S. workforce. The study, based on nearly 500 salary profiles from individuals working in both medical and recreational cannabis businesses, found that 68 percent of cannabusiness employees “believe their employers have a bright future” compared to 59 percent of Americans from Sept. 2015 to Sept. 2017, according to an outline of the data by the News Tribune.  

The researchers also reviewed median annual incomes for cannabis industry employees and found the average budtender makes $28,300 per year with a median $98 per week in tips, medical cannabis cultivators earn $38,000 per year, operations managers make $43,500 per year, and retail store managers make $44,000 annually.

Comparatively, according to PayScale data, the median annual salary for a bartender, including tips, is $29,271; the median salary for non-cannabis retail store managers is $45,116; and the median wage for brewers ranges from $34,125 to $46,933 depending on experience and title.

“The only caveat is that regulations do differ by state and, from what PayScale can tell, within a state between retail and medical, so these differing restrictions could potentially affect wages.”

PayScale’s data does not include state-by-state breakdowns due to the limited figures available.

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The Ohio Statehouse in downtown Columbus, Ohio.

Ohio Advocates Unveil Cannabis Legalization Proposal

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Advocates in Ohio have unveiled their proposal to legalize cannabis for adult use, which includes language legalizing industrial hemp cultivation in the state, according to a LEX18 report. In 2015, Ohio voters rejected a legalization proposal in part because many feared that the measure language would create a monopoly in the industry.

The new proposal is spearheaded by Jimmy Gould and Ian James, who were also behind the 2015 attempt. Gould said the new proposal, dubbed the Regulate Marijuana Like Alcohol Amendment, is “not a reborn Issue 3.”

“There’s no control here by anybody – this is free market.” – Gould

Included in the amendment proposal:

  • Local control over whether or not to allow cannabis operations, including limits on the number of retail locations.
  • Allowing voters to determine by ballot whether to allow retail operations in their precinct, similar to liquor licenses.
  • Bans on cannabis use in public and on any form of public transportation
  • Language protecting the state’s medical cannabis program, which is expected to roll out by Sept. 8, 2018.

The campaign must collect 305,591 valid signatures by July 2018 in order for the amendment to be included on Nov. 2018 ballots.

Following the failure of Issue 3, Gould indicated the group, ResponsibleOhio, was “dead” after spending $20 million on the failed campaign.

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The Massachusetts Statehouse building in Boston, Massachusetts.

Massachusetts Cannabis Regulators Approve Social-Use Policy

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Massachusetts‘ Cannabis Control Commission has approved a social-use policy that will allow cannabis to be consumed on premises in so-called “cannabis cafés,” WBUR News reports. Under the rules, budtenders will need to undergo training to identify whether a patron should be cut off and alcohol will not be served at the cafés.

“I think that with cannabis use, having been so underground as part of prohibition, it was something that had to be kept secret and as a result, there wasn’t as much opportunity for education and awareness and the sharing of information about responsible use, so that’s the part I’m excited about.” – CCC Commissioner Shaleen Title.

The social-use licenses will extend to other businesses, such as spas, although the commission will discuss additional policies and is expected to vote on draft regulations by the end of next week.

Cannabis Advisory Board Member Michael Latulippe called the measure “transformative.”

“I think we’ll be the first state in the country to offer this, so essentially we will have in place a regulated, safe and controlled system by which to consume cannabis on site and legal businesses.” – Latulippe

The state’s cannabis regulations must be approved by mid-March in order for the industry to roll out on July 1.

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Indoor medical cannabis plants in a patient's grow closet in California.

California Secretary of State Launches Online Portal for Cannabusinesses

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California’s Secretary of State has launched an online portal for would-be cannabis business owners – CannaBizFile – and enlisted Cheech Marin in a commercial to spread the word. The Secretary of State’s office is the filing agency for all business entity documents in the state, including legal canna-businesses.

“Our new cannabizfile portal makes the process for starting a cannabis business easier to navigate for entrepreneurs. The new site also includes information about registering a business, trademark, or service mark. Our new ‘Starting a Cannabis Business’ brochure can provide a starting point for new entrepreneurs seeking to quickly get their business up and running.” – Secretary of State Alex Padilla, in a press release.

The licensing authorities for the State of California are the Bureau of Cannabis Control within the Department of Consumer Affairs, the Manufactured Cannabis Safety Branch with the California Department of Public Health, and CalCannabis within the California Department of Food & Agriculture.

Filing documents with the California Secretary of State alone does not provide a business with the necessary licenses to conduct commercial cannabis-related activities.

Current operators seeking to convert from a nonprofit mutual benefit corporation or cooperative corporation to a for-profit entity must file with the Secretary of State. Beginning Jan. 1, business owners may register their cannabis-related trademarks or service marks with the Secretary of State’s office.

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An open door at the end of a hospital hallway.

Children’s Hospital of Philadelphia Partners with Australian Biopharmaceutical Firm on Autism Study

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The Children’s Hospital of Philadelphia is partnering with Australian biopharmaceutical firm Zelda Therapeutics on an observational study into the effects of medical cannabis on autistic children, according to a Philadelphia Inquirer report. The study participants will already be covered under the Pennsylvania medical cannabis Safe Harbor provision.

“This is truly an observational study. We’re not giving them anything. We’re just gathering data to educate ourselves.” – Athena Zuppa, director of the Children’s Hospital of Philadelphia Center for Clinical Pharmacology.

Zelda completed a similar observational study in Chile last year, and is set to begin trials on the effects of medical cannabis for patients suffering from chronic insomnia.

Zuppa indicated that one of the aims of the study is to determine what parents are giving their autistic children.

“We’re trying to understand the landscape of what the kids are taking. Some kids are taking only CBD and some are taking a mixture of CBD and THC. I’m trying to understand how parents make their choices.” – Zuppa.

The partnership was spearheaded by Erica Daniels, founder of Hope Grows for Autism, who said the study has “the potential to transform lives.”

Pennsylvania’s medical cannabis program is expected to roll out early next year.

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Photograph of buildings in Hartford, Connecticut from across a wide river.

Hartford, Connecticut City Council Passes Pro-Legalization Resolution

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The Hartford, Connecticut City Council has unanimously backed a resolution in favor of a taxed and regulated recreational cannabis market in the state, specifically urging state lawmakers to support the passage of such legislation.

The resolution includes a directive for the city to conduct an economic impact study on legalization and language supporting racial equity provisions in the industry, which provides for priority licensing and employment opportunities for citizens most impacted by the War of Drugs.  

“By passing this resolution, we put ourselves in a position to ensure the implementation of marijuana regulation is grounded in racial and economic justice.” – Hartford City Councilwoman Wildaliz Bermudez, sponsor of the resolution, in a press release.

In October, a Sacred Heart University Institute for Public Policy poll found 71 percent of Connecticut residents supported legalizing and taxing cannabis for adult use, including 83.2 percent of residents under 35-years-old and 73.6 percent of residents with children.

During debates by the General Assembly Public Health Committee last Spring, Republican state Rep. Melissa Ziobron estimated that the state could see between $30 million and $100 million annually from taxes derived from the legal cannabis industry. Democratic lawmakers included funds from a theoretical recreational cannabis program in their budget recommendation, which the state’s Office of Fiscal Analysis estimated would contribute $64 million to state coffers in its first year.

Democratic Gov. Dan Malloy has called cannabis industry dollars “blood money” and would likely veto any legalization measure.

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Patrons and CBD enthusiasts browse through the stalls at last weekend's hemp and CBD farmers market in Burlington, Vermont

Vermont Hemp Industry Takes Over Burlington City Hall for Holiday Market

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The CBD and Hemp Holiday Farmers Market took over Burlington, Vermont’s City Hall – yes, City Hall – on Sunday in the latest Heady Vermont-organized effort to provide public exposure for the state’s burgeoning industry.

The event featured 18 vendors and, according to the coordinators, drew at least 500 people interested in the hemp-derived CBD products – from topicals to smokeables, edibles, and everything in-between.

Eli Harrington, co-organizer of the event and co-founder of Heady Vermont, said the event is “the most basic concept in the world” for consumers – especially those in Vermont who are accustomed to a farm-to-consumer pipeline.

“That is really the mission behind this – we really want to promote the local industry; the local producers, the local product-makers,” Harrington explained. “We don’t have the retail structure set up right now and a lot of these places aren’t selling online – this represents a real opportunity to, literally and metaphorically, find the market.”

This is the third such direct-to-consumer market hosted this year by Heady Vermont, a Burlington-based cannabis news and lifestyle outlet, including September’s inaugural Vermont Hemp Fest and a previous CBD and Hemp Farmers Market held in the city last month.

“For Vermonters, the concept of a farmer’s market is pretty ingrained,” Harrington explained in the foyer of City Hall as dozens of potential customers walked by. “It’s beneficial for the public as well, because they don’t have to worry about what website they’re reading … people don’t have to worry about where their information is coming from – is this ‘fake news,’ is this a crazy pro-weed blog – they come and get it first-hand.”

For Fred LeBlanc, the 22-year-old owner of Humble Roots Horticulture, the market provides his upstart company its first opportunity to sell products to consumers after more than a year of research and development, production, and testing. Humble Roots both cultivates and processes their products exclusively in Vermont, partnering with other local businesses for processing. LeBlanc says keeping the operations in the state helps set them apart from some of the other manufacturers and retailers which, in some cases, obtain products from other states, such as Colorado. Humble Roots’ first line of products include a concentrate, a topical salve, a vape cartridge and “whole-plant” hemp oil.

“Customers get to see the flower that we grew and the products that were made from those flowers,” he said on the market floor. “We tried to craft products we were more than happy with and give the public a perfect product.”

LeBlanc attested to the importance of the day’s market – which Humble Roots sponsored – explaining that such markets help shed light on an industry that has been “tucked away” for a long time. And, while Humble Roots does use social media to market to consumers, “there is nothing like being able to showcase our whole spread of products and being able to interact one-on-one” with consumers.

Across the aisle from Humble Roots, the Hemp Vermont Growers Co-op, organized by James Mack, used the opportunity to reach out to potential members as well as consumers. Mack said the organization hoped to engage with landowners in the state and help them to “coalesce so when the big wave comes they’ll be ready for it.” Mack said the co-op wants to ensure that “their land isn’t bought out from under them” and they can “participate in the profits” as the hemp industry matures.

“We could work with a lot of small, artisanal producers in Vermont that aren’t just necessarily growing hemp – jelly manufacturers, soap manufacturers – the sky’s the limit,” he said, noting that, at present, the state’s 540 registered hemp-producing acres and the average size of the family farm – about 90 acres – aren’t enough for some products, such as fiber; but he’s hoping that, as events like the farmers market help spread awareness, some of these farms will enter the space and begin to process hemp for food or sell it to processors for CBD-infused products.

“What Vermont should be able to do is produce some fine CBD strains, speaking realistically,” he said. “We, of course, want to support the whole industry, but this is still such a nascent market we have to look at consumer demand and processing.”

Looking around the vendor hall, Mack said the number of businesses and potential customers proved that the demand is increasing and evidenced the “tight-knit” hemp-growing community that is coming of age in the state.

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Pennsylvania Hemp Cultivation Could Reach 5,000 Acres in 2018

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Pennsylvania hemp production is expected to increase from just 50 acres this year to possibly more than 5,000 in 2018, according to National Public Radio station 90.5 WESA. State Agriculture Secretary Russell Redding said that research at Penn State showed hemp crops could increase the productivity of existing farmland.

“Research … at Penn State [showed] that you can actually use industrial hemp as a double crop, behind wheat. I think if that plays out to be real, that is a game changer. You immediately change what options farmers have and you open up new markets.” – Agriculture Secretary Redding

The report comes less than a month after Vote Hemp released its U.S. Hemp Crop Report which found acreage of hemp crops more than doubled from 9,770 in 2016 to 23,346 this year. According to that report, just four states had lower hemp production than Pennsylvania last year – Indiana, Maine, Nebraska, and West Virginia. Pennsylvania did not grow a single hemp crop in 2016, the Hemp Crop Report indicates, but if hemp cultivation reaches 5,000 acres next year, they will outproduce every state’s 2017 output save for Colorado.

The deadline for individual growers and higher education institutions to apply to cultivate hemp in the state is Jan. 19.   

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Conservatives in Canada Could Delay Adult-Use Implementation

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Conservative Canadian senators could prevent the nation’s legalization proposal from becoming law by the July deadline, the Globe and Mail reports. Sen. Claude Carignan suggests the bill’s passage could be pushed back to the end of 2018.

“I think we have to do our job properly, and that means months. … The House took eight months to study [the bills]. It will probably take the same timeline to do our job properly. – Sen. Carignan

Lawmakers are expected to begin debating both the legalization measure and bills for cannabis-impaired driving at the end of January; however, Carignan argues that the legislation package does not address issues such as equipment and training for police, drug tests for employees, tax implications on provinces, and the impact of legalization on youth. The federal government has earmarked $9.6 million from this year’s budget on a public health campaign about legalization aimed at minors 13 to 17-years-old and young adults 18 to 24.

According to the report, the Senate could implement a strict timeline on debate, testimony; and independent senators could build a coalition to set and enforce a deadline for the bills in order to prevent Conservative delays. Prime Minister Justin Trudeau has 11 Senate vacancies he could fill in an effort to build such a coalition.

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The national flag of Uruguay flying on a windy, cloudless day.

Uruguay’s Legal Cannabis Program has 16,000 Registered Buyers

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Uruguayans registered to buy legal cannabis has increased more than three-fold since July from 5,000 to 16,000, according to an Independent report based on figures from the Institute for Regulation and Control of Cannabis. The government has also raised the allowable THC content from 2 to 9 percent. In August, the government indicated more than 11,500 citizens had registered with the program.

Despite the liberal cannabis policy in the nation, there is still no medical cannabis system in Uruguay and tourists are not permitted to buy cannabis products.

In September, officials moved sales from pharmacies to shops and to a cash-only system after banks closed the accounts of pharmacies participating in the program due to international anti-money laundering laws. Jorge Polgar, president of the state-run Banco Republica, indicated at the time that keeping the accounts open would prevent the institution “from carrying out any kind of operation with an international counterpart” and “cause [the bank] and its clients to be financially isolated.”

There are still 11 Uruguayan provinces that do not sell cannabis; however, according to the Independent, the government plans on opening kiosks in those areas which will sell 5-gram packages of cannabis. The state has set the price of cannabis – sold in two varieties known as Alpha I and Beta I – at $1.30 per gram.

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Commercial-grown cannabis, grown legally under the Washington state cannabis business infrastructure.

Canadian Cannabis Firm Finalizes Acquisition of Nevada Licensed Producer

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Canada-based MPX Bioceutical Corporation has received final approval from both state and municipal regulators to acquire GreenMart of Nevada in a deal worth $17.81 million. GreenMart, based in Las Vegas, holds cultivation, production, and wholesaler licenses.

The GreenMart North Las Vegas facility is expected to produce approximately 1.6 million grams of flower and 85,000 grams of MPX concentrates in 2018. The business intends to apply for two Las Vegas-area dispensary licenses which will operate under the “Health for Life” brand.

“Acquiring GreenMart gives us a meaningful head start towards establishing market share in the new adult use market in Nevada which is estimated to grow to $630 million by 2020. We are encouraged by the strong demand we are seeing in the Nevada market, and we anticipate that the addition of this Las Vegas enterprise will be materially accretive to MPX revenues and earnings in 2018.” – MPX Chairman and CEO Scott Boyes in a press release.

Brightfield Group ranks Nevada as the fourth best state to make cannabis investments. ArcView Market Research projects the state market is expected to grow at a compound annual growth rate of 51 percent.

This is the second Canadian firm to enter the U.S. market in the last month as CannaRoyalty announced in late November that they agreed to acquire California cannabis companies Kaya Management Inc. and Alta Supply Inc.

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AG Sessions Cites Drugged Driving as Reason Cannabis is Dangerous in Leaked Video

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In a leaked video obtained by ABC News of a question-and-answer session between Department of Justice interns and Attorney General Jeff Sessions from an event last summer, the former Alabama senator claimed that drugged-driving was responsible for more vehicular deaths than alcohol last year and did not directly answer a policy question about why his stance on guns is more lax than his cannabis stance.

“You support pretty harsh policies for marijuana and pretty lax gun control laws – I’m not even sure where you stand on the assault weapons ban – so I’d like to know since guns kill more people than marijuana, why lax laws on one and harsh laws on the other?” an unnamed female intern asked the attorney general.

“Well, that’s an apples and oranges question,” Sessions says, chuckling, before defending his gun stance by citing the Second Amendment.

“The Second Amendment – you are aware of that?” he begins as the audience laughs, “guarantees the right to the American people to keep and bare arms and I intend to defend that Second Amendment – it’s as valid as the First Amendment. … Look there is this view that marijuana is harmless, and it does no damage. I believe last year was the first year that automobile accidents that occurred were found to have been caused more by drugs than by alcohol.”

Sessions is citing the Governors Highway Safety Association report which found that 43 percent of motorists who died in traffic accidents had drugs in their system, compared to 37 percent who tested positive for alcohol; however. experts argued that the report should be taken with some caution because only 57 percent of drivers killed in car accidents were tested for drugs.

Russ Rader, spokesman for the Insurance Institute for Highway Safety told CNN that there also “isn’t very consistent testing for drivers who are killed in crashes with regard to drugs.”4

“We don’t have a good handle on what to do about it, but we do know how to address alcohol impairment, which remains a major problem,” he said in the report. “Another problem, particularly with marijuana, is that people often combine the two, so how do you separate them?”

Sessions went on to say that “marijuana is not a healthy substance” and the American Medical Association’s opinion is “crystal clear” and aligned with his own. He asked the intern whether she agreed with him and the AMA, to which she responded, “I don’t.”

“Okay, so, Doctor whatever-your-name-is, so you can write to the AMA and see why they think otherwise,” Sessions remarked.

Although the video is from the summer, Sessions has not budged on his prohibitionist view and has urged Congress to restore funding to the Justice Department for federal enforcement of state-legal cannabis programs.

End


Medical Cannabis Firm INDIVA Ltd. Entering Toronto Stock Exchange, Plans Major Expansions

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Following a string of internal successes and in keeping with the rapid expansion of Canada’s national medical and adult-use cannabis markets, Canadian cannabis firm INDIVA has carried out a reverse takeover with the publicly listed company Rainmaker Resources Limited. The RTO is closing this Friday, December 8 and the new publicly listed company — which will be dubbed INDIVA Limited — could list on the Toronto Stock Exchange as early as next Monday, December 11.

In two separate offerings that culminated last month, Rainmaker and INDIVA earned just over $15,000,000 in subscription shares — money that the company has earmarked for a major expansion of its London, Ontario growing facility. The RTO has positioned INDIVA as a new entrant to the Toronto Stock Exchange without the hassle or costs of an actual IPO and will allow the company to focus on maintaining smooth operations and growth during its transition to the public sphere.

“We are very pleased to have exceeded our goal of raising $15,000,000 with these two concurrent financings and to now be in a position to move forward with the expansion of our London facility to 40,000 square feet,” said Niel Marotta, Chief Executive Officer of INDIVA. “I would like to thank our team at INDIVA and our partners for their hard work to get this financing completed.”

The planned expansions will be a 500% increase in production square-footage for INDIVA. This, coupled with its 8,000 square feet of already ACMPR-approved indoor production space, will help INDIVA strengthen its presence in the cannabis space as a company that prides itself on high-quality strain selection, cultivation practices, and client care processes.

Moving forward (and with Canada’s adult-use regime set to launch next July), INDIVA has also been scouting additional grow sites, including a 7-acre site that has been identified near Cornwall, Ontario and a potentially massive grow site (50-100+ acres) outside of London, Ontario. Additionally, the company has promised to release infused edibles and other client-friendly cannabis products as Canada’s fully legal industry comes online.

To learn more about INDIVA, their impending listing on the TSX, or the future of cannabis in Canada, visit the company’s website at INDIVA.ca or send an email to contact@indiva.ca.

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

Prince Edward Island, Canada Release Cannabis Rules & Public Opinion Survey Results

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Prince Edward Island, Canada has released its provincial cannabis industry regulations and the results of a public survey used to craft the rules. The purchasing age is set at 19 – in line with the survey results which found 47 percent support for aligning it with the drinking age in the province. Eighteen percent favored setting the age at 18-years-old and another eighteen percent preferred 21, while just 10 percent favored 25.

The government will control distribution and sales – including online – through the PEI Liquor Control Commission. The decision diverges from the survey results, which found 61 percent supported privately-owned retailers, and just 19 percent supported a government-run regime. Fourteen percent each favored stores where alcohol and tobacco are sold, respectively.

Interestingly, 34 percent of the survey respondents supported “providing funding and other supports to businesses involved in production and retail of cannabis products.”

In line with federal guidelines, Prince Edward Island will allow four home-cultivated plants per-household. The majority of survey respondents, 61 percent, indicated that while adults should be allowed to grow their own cannabis it should ultimately be the decision of the private property owner whether cannabis can be grown at the residence. Only Quebec has moved toward prohibiting home grows.

Manitoba, Nova Scotia, and Alberta have also unveiled their provincial rules, while Saskatchewan officials released public survey results last month that they said would be used to devise the provincial rules.

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Eugene, Oregon Cannabis Lab For Sale Following Allegations Owner has Neo-Nazi Ties

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OG Analytical, a cannabis testing laboratory in Eugene, Oregon has seen a “100 percent decline” in business according to its lab director, who called the brand “dead” after Eugene Antifa offered evidence that the owner participated in neo-Nazi activities, according to a report from The Oregonian/Oregon Live. Bethany Sherman, CEO of OG, indicated she plans to sell the company following the report.

The activists discovered that Sherman operated a Twitter handle, @14th_Word, which, according to the Anti-Defamation League, refers to the fourteen-word statement: “We must secure the existence of our people and a future for white children.” It is alleged she also supplied food to neo-Nazi meetings and gatherings. The co-owner of the lab, Matthew Combs, was also accused by the activists of organizing events for the American Patriots Brigade, which serves as a support group for American Front, a white nationalist group.

Lab Director Rodger Voelker called the situation and the allegations “horrific” and “disgusting,” adding that Sherman accused her employees of “not supporting her” when the allegations came to light.

“It blindsided all of us,” he said in the report. “It’s unbelievable that you can work with people – our relationship is purely professional. We don’t share personal beliefs, religious, political or anything else. This is just unbelievable.”

Sherman wrote to the Oregonian/Oregon Live refuting the claims, arguing that her “only crime is a thought crime.”

“I believe that the world is tapestry of beautiful colors, each one full of a wealth of cultural heritage, and that each culture has a right to be proud of their heritage, and an obligation to protect and preserve that culture. I believe that this tapestry is not exclusive of European Americans, and I find it extremely disconcerting that it is admired and revered to have ‘Gay Pride,’ ‘Black Pride,’ ‘Asian Pride,’ or pride in any other cultural heritage, but if you have ‘White Pride,’ it automatically makes you a Nazi, and you are ostracized, attacked, and lynched by your community. I admit, I am proud that I am white, and I’m not ashamed of my heritage. And I admit that I have been so conditioned to feel shame about this pride that I discreetly sought community where I could. Knowing the potential ramifications of my actions, I did my best to keep them incredibly discreet. … I am the victim of a hate crime, perpetrated by an anonymous organization whose primary aim is to ruin other peoples’ lives. I have never made any such attempts at hurting any other human being, in any way (including via defamatory articles or social media posts) for any reason, nor have I EVER made any discriminatory overtures. Let’s be clear about this: Neither myself, nor my company, have ever, EVER practiced, preached, or recruited anyone to practice or preach hate or hateful rhetoric in ANY way.”

Voelker said he plans on finishing the samples the company agreed to test and is meeting with attorneys to discuss options.

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Two cannabis colas about to be harvested inside a Washington cultivation site.

Nova Scotia, Canada Releases Provincial Cannabis Industry Regulations

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The legal purchasing age for cannabis Nova Scotia, Canada will be set at 19 and the provincial Liquor Corporation (NSLC) will sell the product through its liquor stores, according to regulations unveiled by the Nova Scotia Department of Justice. The NSLC will also oversee distribution and online sales.

The number of retail locations cannabis will be available has not yet been determined; the 19-year-old purchase and possession age is in line with regulations in New Brunswick, and Newfoundland and Labrador. The province will establish penalties for youth possession up to five grams.

Minister of Justice Mark Furey said officials chose the NSLC due to their “experience and expertise” distrusting and selling “restricted products.”

“As we prepare for the legalization of cannabis, our top priority has been the health and safety of Nova Scotians, especially children and youth. The policy decisions announced today, and those yet to come, have been greatly informed by the feedback we received through our extensive consultation, as well as the experience of other jurisdictions.” – Attorney General Furey

Under the regulations, consumers will be able to grow up to four plants per household and possess up to 30 grams in public. The possession limit is in line with federal regulations.

So far, Quebec, Manitoba, Prince Edward Island, and Alberta have each unveiled their provincial rules. Saskatchewan officials released public survey results last month that they indicated would be used to promulgate the provincial regulations.   

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