Black and white photograph of the Berkeley, California sprawl.

Former Berkeley, California MMJ Commissioner Sentenced to Prison for Fraud, Corruption

a word from our sponsors:

advertisement

advertise here

The former chair of the Berkeley Medical Cannabis Commission, Daniel Rush, has been sentenced to 37 months in prison for money laundering and fraud that occurred between 2010 and 2015. Rush also served as an organizing coordinator for the United Food and Commercial Workers Union’s unofficial cannabis division.

The sentence, which also includes three years of supervised release and a $7,500 fine, is part of a deal which Rush pleaded guilty to one count of receiving an illegal payment as a union employee, one count of wire fraud, and one count of conspiracy to commit structure and money laundering.

Investigators found that Rush, as commissioner of the BMCC, had attempted to extort at least one businesses seeking a dispensary permit and through his attorney, Marc L. TerBeek, communicated “that if the applicant did not offer him a salaried job, with benefits, he would take adverse action against its application,” according to a press release from the U.S. Attorney’s Office in Northern California.

While serving as a coordinator for the UFCW, Rush accepted kickbacks from TerBeek in exchange for referring cannabis businesses that he encountered in that role to the attorney’s practice.

Rush also “deliberately” mischaracterized a $420,000 loan from “someone in the cannabis industry” as monthly payments for consulting services and attempted to “structure” the money into the banking system.

Rush pleaded guilty to the charges on June 22.

End


Arizona Attorney Fighting to Reduce MMJ Patient ID Fees

a word from our sponsors:

advertisement

advertise here

Arizona attorney Sean Berberian is asking the state Court of Appeals to force the Department of Health to reduce the $150 identification card fee patients must pay to access the state’s medical cannabis program, according to a Capitol Media Services report. Berberian argues that the fee is more than the Health Department needs to administer the program and that Gov. Doug Ducey and his predecessor Jan Brewer told officials to keep the fees high to deter patient enrollment.

Ducey’s office denied the claim.

“There have been no efforts from this office to direct ADHS’s operation of this program,” the governor’s press aide Patrick Ptak said in the report.

Berberian argues that the voter-approved law does not permit the Health Department to keep the proceeds from the ID card fees; and while Maricopa County Superior Court Judge Jo Lynn Gentry agreed with that premise six months ago, she ruled that it was not up to her to force the state to lower the cost. Patients are forced to pay the $150 annually.

“The only way the court could determine what fee meets the sufficient requirements of the Arizona Medical Marijuana Act and the Constitution would be to take over the administration of the Arizona Medical Marijuana Act from the Department of Health Services,” she wrote in her ruling.

According to the report, the health department collected $24.9 million in fees from patients and industry operators last fiscal year, while its expenses to administer the program were $11.2 million. So far this year, the agency has collected $6 million in fees while spending $2.8 million in administrative costs.

As of Monday, the Health Department’s medical cannabis account had about $38.1 million, according to the report, more than three times the amount needed to operate the program every year.

End


A tray of cannabis plant samples inside of a testing lab facility in Washington.

Northern Michigan University Receives Grant to Purchase Cannabis Testing Instrument

a word from our sponsors:

advertisement

advertise here

Shimadzu Scientific Instruments, providers of cannabis testing instruments, has awarded a grant to Northern Michigan University for the purchase of a triple quadrupole liquid chromatograph mass spectrometer for students enrolled in NMU’s medicinal plant chemistry program. The device is widely used in the cannabis industry, screening for pesticides and analyzing mycotoxins.

“Over the last few years, the medicinal cannabis industry has grown significantly throughout the country. This growth has sparked a need for highly skilled scientists to run instruments to ensure products meet regulatory requirements,” said Bob Clifford, Ph.D., general manager of marketing for Shimadzu Scientific Instruments in a press release. “Northern Michigan University emerges as a leader in educating these future laboratory analysts and managers, and Shimadzu is proud to work with them in this exciting, emerging industry.”

Brandon Canfield, an associate professor of chemistry at NMU, said the program is “excited” that students enrolled in the program “will have the opportunity to gain direct hands-on experience” with the instrument.

“Shimadzu has long been recognized as an authority and innovator in the field of chemical analysis, and has emerged as an early leader in the specific area of cannabis analysis,” he said in a statement.

Shimadzu Scientific Instruments is the American subsidiary of Kyoto, Japan-based Shimadzu Corp – which is traded on the Tokyo Stock Exchange – and has divisions in aerospace/industrial, analytical, and medical diagnostics instruments.

End


Swiss Health Office Denies University Adult-Use Cannabis Study

a word from our sponsors:

advertisement

advertise here

Switzerland’s Federal Office of Public Health has rejected a University of Bern proposal to carry out a scientific study on the effects of cannabis legalization that would have seen Swiss pharmacies sell cannabis for recreational purposes, according to an SWI report. In a letter to the university’s Institute of Social and Preventive Medicine, the agency indicated the study would not be allowed because “current drugs legislation does not allow the use of cannabis for non-medical reasons.”

In order for health officials to allow the study the nation’s laws “would have to be supplemented by legal provision for scientific pilot projects,” the letter states, adding such a study would be “desirable, in principle, to be able to analyze new forms of regulation scientifically.”

While Switzerland does permit limited medical cannabis use and allows exceptions to the drug laws for research purposes, nearly two-thirds of Swiss voters voted against broad decriminalization in 2008, according to the report. In 2011, Switzerland legalized cannabis products containing 1 percent of THC or less; however, citizens caught with up to 10 grams of products over that threshold are fined $101 but it is not added to their criminal record.

The University of Bern researchers have 30 days to appeal the denial.

End


Matt Rizzetta: Leveraging PR to Grow Household Cannabis Brands

a word from our sponsors:

advertisement

advertise here

Matt Rizzetta is the CEO of North 6th Agency, a public relations firm based in New York City and Toronto that serves cannabis and mainstream business clients nationwide.

In this episode of the Ganjapreneur.com podcast, Matt joins host TG Branfalt to talk about the mainstream media’s evolving perception of cannabis, public relations strategies for companies in the cannabis space, the differences and similarities of cannabis compared to other industries, how education is the key to overcoming the plant’s stigma, and more!

Listen to the interview below, or scroll down to read through a full transcript of the 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 Matt Rizzetta. He’s the CEO of North 6th Agency, a public relations firm based in New York. We’re going to chat about something I’m pretty familiar with, the topic of public relations. How you doing this morning, Matt?

Matt Rizzetta: TG, I’m doing well. How are you doing?

TG Branfalt: I’m doing great, man. Before we get into what you guys do over there, tell me about yourself, man. How’d you get involved, first, in the PR industry and when did you decide to start providing PR services to cannabis industry operators?

Matt Rizzetta: Sure. Myself, first, I got out of school and took a job in-house with Sony BMG where I was doing a lot of the domestic marketing and PR for their international artists. I was doing that as my day job, was rushing home on the commuter train here in New York City to Westchester County, and then during the night hours I was representing athletes and trying to get them jobs overseas. My ambitions were really just to become a full-time agent once I had enough clients and enough revenue coming in from that side of the business to make that my full-time gig.

Those were my aspirations coming out of school. Quickly learned that life as a sports agent wasn’t all that it was cracked up to be, really liked my time at Sony working on the media side, and that’s when I committed to pursuing a career in PR, marketing, and media. Then fast forward about four or five years after that, got this crazy idea to start an agency of my own, N6A. Launched it out of my basement with a few technology clients without much to my name at the time, and here we are eight years later.

We have about 51 employees, we’re headquartered here in New York City, we have an office in Toronto, we work with about 70 clients spread across 30 different industries. We spun off our own dedicated cannabis division, which you mentioned, earlier this year, so we were one of the first mainstream agencies, if not the first mainstream agency in the country to spin off cannabis as its own dedicated division. That’s us as of 2017.

TG Branfalt: That’s an incredible story, man, and you’re a young guy. When you started this whole process, you were, what? 26?

Matt Rizzetta: Yeah. Just right before my 27th birthday. Baby on the way, we just closed on our first house. Wife went on maternity leave and we figured, what the hell, we might as well just get all of our life changes done at the same time.

TG Branfalt: Congratulations, man. It takes a lot to live your truth, man. It seems like you’re doing that. What drew you to the cannabis industry?

Matt Rizzetta: Well, by the time we took on our first cannabis client, TG, we were probably about five or six years old as a business at that time. We had scaled our business nicely. We were in about 20 different industries and we were starting to carve out a nice niche and reputation for ourself as an agency that was well connected with the national mainstream media here in New York. You started to see a lot of these cannabis brands that were used to working with niche specialized cannabis PR agencies now start to have an interest in elevating their brand to the next level in national mainstream media.

We were just well positioned at the time, as an agency here in New York, that was well-connected nationally. We took one or two clients on as a case study, test approach. This was back in late 2015 timeframe. Spent a lot of time learning about the industry, investing in the space, building out our media Rolodex, and really just educating ourselves. That’s how the whole thing got started. Then it was about 18 months after that initial phase, we found ourselves in a really unique position where we were very well connected within the national media when it came to cannabis.

Our Rolodex of clients and prospects was really strong. Our team was top-notch. We had Rob Vanisko, who now runs our cannabis crew, was doing a great job really learning the industry and had an interest in building a team out. We just felt January of this year, right place, right time, we had made the appropriate investments and we figured let’s double down on this. That’s the decision we made earlier this year and we haven’t looked back ever since.

TG Branfalt: What were some of the things that you needed to learn early on about this space?

Matt Rizzetta: Well, I’ll tell you, one thing when we … I flashed back to when we first got the thing started. First off, we saw a really unique opportunity, TG, when it came to the cannabis space. You talk about back in 2015, I know that sounds like it wasn’t too long ago, but in dog years, in cannabis that’s like an eternity ago. We saw an incredible opportunity where the mainstream media was very much just starting to cover the space and their opinions and their coverage beats were just starting to evolve. We found ourselves in a unique position where we could really help them craft their stories and craft their domain knowledge of cannabis before it got too popular.

In terms of what we needed to learn and what we needed to do, we just wanted to make sure we were surrounding ourselves with the right people, the right types of clients who were in cannabis for the right reasons, the right media contact who had just started to explore covering the cannabis industry on a mainstream national scale, and really just educating ourselves. Cannabis is incredibly fast paced. You have things changing every single day, not just from a regulatory standpoint, but from every way imaginable. At that time, it was really just about educating ourselves and doing it quickly before other agencies got up to speed.

TG Branfalt: Was there any concern when you started this project on the industry being risky or taboo in tarnishing your firm’s reputation?

Matt Rizzetta: Well, look, in terms of our firm’s reputation, we didn’t really have any concern from a reputation standpoint; however, in terms of the risk, absolutely. We were really concerned about the risk. It had nothing to do with reputation, but it had to do with the fact that it was going to require a lot of time, a lot of money to make the investment, to grow our cannabis division, and there really was no guarantee of any kind of return on that. Of course, we were concerned with the risk. Just like anything though, it’s all about risk tolerance and risk reward. We sat down and when we looked at the upside, look at the upside.

The upside at that time was for all the risk that came with it, what was the upside? We had a chance to be the first agency in the country to do something like this on a mainstream level. We could recruit and build a team from scratch. We could create a culture and brand for the N6A cannabis division that lived within N6A, that had its own identity, and personality, and really be at the forefront of, what we believed was, a once-in-a-generation opportunity. If that doesn’t get you going, then nothing will. We were totally aware and concerned by the risk that existed, but when you do a risk-reward and you look at the reward, look at the upside, and we made a strategic, what we believe was an intelligent, decision to make the leap in cannabis. It’s obviously worked out.

TG Branfalt: In an interview, you had said when you launched your agency and you were in the financial industry, they wanted to stay out of the news. Are you finding that to be the case with the cannabis industry due to the nature of their business?

Matt Rizzetta: No, in fact, the irony in that, TG, is we see cannabis brands with an interest in doing the opposite. They really want to focus on the two Es, as we’re seeing it at N6A. Number one is educate. They want to educate the media. They want to see their brands as educators of the mainstream media as the mainstream media is learning about cannabis and learning about trends within cannabis. Then the second E is elevate. They want to elevate their brand.

These brands that are engaging with agencies like ours, here at N6A, typically are brands that are pretty well known within cannabis niche industry circles, but now feel like it’s the right place and the right time to elevate their brand on a mainstream level and become national household brands. In general, that’s the trend we’re seeing among these cannabis clients. There’s a genuine, authentic interest and commitment to wanting to educate the media and there’s a genuine, and authentic, and sometimes commercial, obviously, interest in elevating their brand to become household names.

TG Branfalt: When you sat down with your team and you started identifying who you would target for your campaigns, how did you identify this target audience within the cannabis space?

Matt Rizzetta: Well, when it comes to identifying target audience within the cannabis space, it’s not … There’s a lot of similarities. We work, here at N6A, with clients across 30 some odd industries and I think there’s obviously a lot of differences between what cannabis clients are looking for and what our other clients in other industry verticals are looking for. When it comes to cannabis and when it comes to the target audience, I think there’s a lot of similarities. In general, they’re looking to communicate to a target audience that is going to see their brand as thought leaders and educators of their specific domain. In our cannabis portfolio, it’s within whatever vertical those clients are servicing within cannabis.

It could be cannabis from an HR recruiting standpoint, it could be cannabis from a media standpoint, consumer standpoint, financial standpoint. I think when it comes to identifying target audiences, it’s just who are they trying to educate? Are they trying to educate consumers? If so, we go heavy after the mainstream consumer media. Is it the investment community? If so, honestly, it’s going to be much more heavily focused on the financial trade publications, and the business magazines, and the business media and whatnot. If it’s HR recruiting, it’s much more about jobs and employment trade. In terms of how we identify their target audience, it’s not unlike what we do for other clients where it’s just understanding who they sell to or who they’re trying to influence, and then get to the influencers within the media that is consuming that media.

TG Branfalt: I want to talk to you a bit more about a statement that you made earlier about finding the right clients, but before we get to that, we’ve got to take a short break. This is the Ganjapreneur.com podcast, I’m TG Branfalt.


If you are looking for a job in the rapidly growing and highly competitive cannabis industry, Ganjapreneur.com is the place to look. Visit the Ganjapreneur job board today to visit current openings with cannabis companies throughout the United States, from entry-level budtender positions to executive level career opportunities. You can also create a profile and upload your resume to be discovered by cannabis recruiters. Visit our job board at jobs.Ganjapreneur.com to create your profile today.

If you are a business owner, you can post your job openings for as little as $25 on our job board to reach the largest and most engaged audience of cannabis professionals on the web. Companies who are listed in the Ganjapreneur business directory are eligible for free job listings. If you’re already signed up, contact us today via the website or send us an email at grow@Ganjapreneur.com to activate your unique coupon.


TG Branfalt: Hey, welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt. I’m here with Matt Rizzetta, CEO of N6A, or North 6th Agency, down in the Big Apple. Earlier you had mentioned talking about finding the right client. What types of businesses or people operating in this space are the right clients for you?

Matt Rizzetta: Great question, TG. For us, at N6A, finding the right clients within cannabis ultimately comes down to three things. Number one, we need a client that has to have a vision, a true vision, a clear vision, to elevate their brand on a mainstream level and become a household brand, because that’s why they’re engaging with us. They engaging with us typically to take the next step as a brand. If a brand wants to take the next step, they’re known as a niche cannabis company and now they want to become a household cannabis company and do that via the mainstream media, good fit. Check number one.

Number two, they need to have clear innovation and disruption within their sector in cannabis. We talked earlier about some of the cannabis sectors we represent. HR, recruiting, media, consumer, data, whatever it is. Whatever the sector is, if there’s a clear innovative and disruptive component to their product or their service offering, that obviously is of interest to us in terms of a good potential client match. Then number three, and I would say the most important thing is, the client really needs to buy in to N6A’s pillars.

Our pillars are three things. Speed, we work very fast. “Embrace the pace,” that’s our mantra and our motto. The client needs to be able to match our speed. They need to have an interest in doing things quickly, being able to match us minute for minute. Number two, data. We’re very data driven in terms of our ability to measure, so we want clients that are comfortable. We get rankings from them every month. We operate in the KPI environment, so we do look for clients that are comfortable with a level of holding their service providers accountable when it comes to data and KPIs.

Also, buying into the people and culture. N6A is a people first, culture first organization and we want clients that are good partners from us in that respect. They respect our team. Our team is incredibly hard working. Our cannabis crew with Rob, Lauren, Carrie and Allie, and obviously the Toronto team up in the Toronto office that services all the social media pieces of our cannabis clients. You want a good people match between the client and our team. I think those are the three things we’ll look at. They need to have a vision to elevate their brand, they need clear and innovative disruption within their service sectors in cannabis, and they need to buy in our pillars at N6A: speed, data and people.

TG Branfalt: I do want to just quickly sort of commend you on the team that you’ve put together. I deal with a couple members of your team and they’re far … There’s just something different about the way that they do business. When they contact me, and when they reach out to me, and when they pitch me ideas, it’s very welcoming. You don’t really feel like you’re dealing with a PR person so much as you feel like you’re dealing with a buddy sending you an email. You’ve definitely found some very innovative individuals to work on this innovative team that you’ve put together, so I do want to commend you for your work there.

What’s been proven to be the most effective way to get your cannabis clients’ message out?

Matt Rizzetta: Hey, TG, just real quick, I want to just go back to the team. I appreciate that kudos. I want to just tell you a quick story that reminds me of. I remember being in a café in SoHo, right here on Mercer Street. We were probably, I don’t know, about 18 months into working with cannabis clients at the time. This was like late 2016 and we were starting to put together our game plan for 2017.

I sat down with Rob Vanisko, who now runs our cannabis group, and we talked about the vision to spin off cannabis and create our own dedicated division. At that time, a big part of what we were talking about was recruiting. We want to go out and recruit the best talent that’s motivated for the right reasons, that’s committed to being a partner with clients and a partner with the media, and I think we recruited that way. A lot of what you talked about in regard to our team and your experience with them.

Obviously, I tip my hat to Rob, who runs our group. They’ve done a phenomenal job holding themselves to standards that are incredibly demanding. They have created their own really unique culture within N6A culture for cannabis. There’s a lot of pride in that group. They work their butts off and they do it the hard way and the right way. It all comes back to I remember sitting in a café in SoHo talking to Rob about how we’re going to recruit and those are the pillars and the values that we wanted to hold our team to. I think we’ve recruited that way.

TG Branfalt: It shows. It absolutely does. What’s proven to be the most effective way to get your cannabis client’s message out?

Matt Rizzetta: Well, look, it comes down to … The education first approach works in cannabis 99 times out of 100. Your head needs to be in the right place in terms of wanting to have a genuine, education first mindset to the media. You’ve got to remember, the media right now, at least at a mainstream level, for the most part is still very much in their infancy as far as learning about cannabis. They want to be educated, they want to be sponges, and they just want to learn as much as possible about cannabis so that their coverage beats can become as informative as possible for the folks who are consuming media.

I think on the PR side, if you’re representing a client, you need to mimic that. You need to take an education first mindset for your clients because that’s really what the media is craving. You’ve got the media craving to be educated and if you’re a PR agency, you need to represent clients that really see the value in becoming educators and having an education first mindset, because that’ll create incredible synergies between the demand in the media and the supply that the client can provide.

Then also, we see relationship centric approaches work very well in cannabis, again, as a byproduct of the industry just still being very nascent and in its infancy. Face-to-face time, I know some of your dealings with our team have been very personal and customized. I think that relationship first investment is working really well in cannabis. Those would be the two things I would look at in terms of the most effective ways to get cannabis clients out there in the press. Number one, take an education first approach, and, number two, commit and invest to cultivating relationships on a personal level with the media.

TG Branfalt: Well, the media might want to be sponges and even some companies like the Denver Post have created their own cannabis division, there’s still a lot of negative stigma around cannabis. Members of law enforcement, anti-drug organizations, some religious institutions, they don’t like it. How do you work to help dispel some of these notions that are really concrete with some population sectors?

Matt Rizzetta: Sure. Well, look, great question, TG. I would say, first of all, we’re not a lobbyist firm, right? Our interests are not aligned with any sort of government or legislative agenda. What do we do to sort of combat some of the issues on behalf of our clients that you talked about? Well, we do it by being honest, hard working, intelligent, taking on the right clients, giving the media access to the best minds in cannabis from a diverse set of cannabis sectors that can provide perspectives that are unique and different than what they’re used to hearing.

Then, ultimately, the judge and jury is the consumer. The judge and jury, let the consumer who’s reading the media, or watching the media, or listening to the podcast, ultimately, let them make the decision on how this fits into their own interests if they think it’s right or whatnot. All we can do, as an agency, is take on the right clients, take a really honest, hard working, and smart approach to it, and give the media access to an incredibly diverse set of perspectives, then let the general public form their own opinions from there.

TG Branfalt: Also, let’s talk briefly about crisis communications perspective. That negative stigma is going to make it a little bit harder when something happens with the industry or companies say a testing license producer has a tainted crop, right? This does happen. We see this a lot in Canada. We saw it a lot in Canada the last year. Because of that negative stigma, from a crisis communications perspective, is it harder to handle crises in this industry than it is more traditional industries?

Matt Rizzetta: I will say this, TG, when it comes to crisis comms, at N6A, we’re handling crisis comms across so many different industries. From the media perspective, we’re constantly commenting on a lot of high stakes brands that are in crisis with Uber and United. I can say that the main difference we’re seeing across the board when it comes to cannabis clients and their crisis situations is that it just kind of always feels like the stakes are a little bit higher when it comes to cannabis because it’s such a polarizing topic and also because it’s still so nascent and still very much evolving.

Every time there’s a crisis, the potential impact it has on the person who is being educated on the crisis, seems like it’s higher. It seems like it’s more important, it seems like it’s more impactful. The strategies are pretty transferable across industries. I don’t necessarily think we’re taking a different approach strategically when it comes to crisis comms for our cannabis clients than our other clients, but it just kind of always feels like the stakes are a little bit higher and you have to be a little bit more considerate and sensitive to the issues at hand, because it’s a lot more polarizing and it’s a first impression situation because, for the most part, the media is just hearing about that crisis for the first time.

TG Branfalt: I want to talk to you a bit more about some of the differences between the cannabis industry and other traditional industries, but before we do that, we’ve got to take our last break. This is Ganjapreneur.com podcast. I’m TG Branfalt.


At Ganjapreneur, we have heard from dozens of cannabis business owners who have encountered the issue of cannabias, which is when a mainstream business, whether a landlord, bank, or some other provider of vital business services, refuses to do business with them simply because of their association with cannabis. We have even heard stories of businesses being unable to provide health and life insurance for their employees because the insurance providers were too afraid to work with them.

We believe that this fear is totally unreasonable and that cannabis business owners deserve access to the same services 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 Directory. A resource for cannabis professionals to find and connect with service providers who are cannabis friendly and who are actively seeking cannabis industry clients.

If you are considering hiring a business consultant, lawyer, accountant, web designer, or any other ancillary service for your business, go to Ganjapreneur.com/businesses to browse hundreds of agencies, firms, and organizations who support cannabis legalization and who want to help you grow your business. With so many options to choose from in each service category, you will be able to browse company profiles and do research on multiple companies in advance so you can find the provider who is the best fit for your particular need. Our Business Service Director is intended to be a useful and well-maintained resource, which is why we individually vet each listing that is submitted.

If you are a business service provider who wants to work with cannabis clients, you may be a good fit for our Service Directory. Go to Ganjapreneur.com/businesses to create your profile and start connecting with cannabis entrepreneurs today.


TG Branfalt: Welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt. I’m here with Matt Rizzetta, CEO of N6A, or North 6th Agency, a public relations firm. What is different about the cannabis space from more traditional businesses from a public relations perspective.

Matt Rizzetta: Well, I think, TG, the first thing that comes to mind is it’s a lot easier to go product first in your PR approach in traditional businesses; whereas, that rule doesn’t necessarily apply to cannabis. We were talking about this earlier, cannabis, for the most part, it should be an education first, product second approach because again the media is still learning and it’s all about making sure that you’re introducing them to the right people and you’re educating them as their coverage beats evolve. Cannabis, for the most part, is education first, product second when it comes to the media. Traditional businesses, it’s a lot easier to do product first, education second.

I would say, also, another observation in terms of cannabis versus traditional sectors, there’s a whole lot more opportunity when it comes to your potential in PR if you’re a cannabis business than traditional businesses because, again, it’s still nascent. The reporter that’s getting used to cannabis, chances are they only have a handful of sources right now and they need to 2x, 3x those sources, and there’s a finite window to do that over the next four to six months.

There’s a whole lot of opportunity and potential if you’re a cannabis client to capitalize on that; whereas, in traditional industries, from a PR perspective, you’ve reached saturation point in a lot of cases so introducing a client to the media, well chances are, that reporter, that producer, that podcast host, whoever it is, already has a deep Rolodex and a bench that’s really deep. You’re going to kind of have to fight to get on their radar. Cannabis, right now, is still evolving so a ton of opportunity, a ton of potential, when it comes to relationship building.
The other thing, too, is speed counts. Like speed counts in all businesses in PR, but speed really counts when it comes to cannabis because the cannabis landscape is changing every day, every second in some cases. As a brand, you’ve got to react really quickly to that. You have to be up to speed on regulatory and legislative topics. You have to be up to speed on statewide issues, nationwide issues. You have to be up to speed on consumer cannabis issues versus B2B cannabis issues. Speed counts. You’d better do that quickly, because if you don’t do that quickly, you’re going to miss out real fast.

TG Branfalt: Just talking to you, man, you’re working a mile a minute here. In order for anyone on your team to keep up with you, they really got to be fast.

Matt Rizzetta: Yeah. It’s no empty tagline, “embrace the pace,” I promise.

TG Branfalt: What’s your advice for companies who think that they might want or even require PR services?

Matt Rizzetta: Well, I would say if you’re a cannabis brand, you really need to look in the mirror and ask yourself, what are you looking for? Are you looking to take the next step as a brand and become a national household brand within cannabis? If the answer is yes, you want to get ahead of that. You want to start thinking about not just PR, but you want to be thinking about your brand, your marketing strategies, your promotional efforts, your messaging one step ahead of that as a national brand. Just like other national brands in industries outside of cannabis would.

Again, looking in the mirror, you might just want to stay within the cannabis niche and you might be very comfortable just continuing to own your domain as a niche specialized cannabis only industry vertical. If that’s the case, there’s nothing wrong with that, but you really need to look in the mirror and ask yourself, what do we want our brand to become? If we want to become national household mainstream, it’s time to start thinking national household mainstream in every regard. Advertising, marketing, media, the whole bit. If it’s more niche and more centralized, then continue to think about things from a cannabis industry perspective.

TG Branfalt: What’s your advice for entrepreneurs? Not just within the cannabis centric umbrella, but just entrepreneurs in general? You started your company quite young and it’s a competitive industry, especially in New York City. Can you give us some advice that you would have for people who might be in your position? Young and hungry?

Matt Rizzetta: Well, surround yourself with great people. Surround yourself not just with great people, but people who are better than you who certainly fill voids in your game that you have. That would be one. Another one, frankly, is be genuine. Be authentic. Speak to something. Stand for something. I think that’s really important. I think authenticity, as you scale a business, becomes a really important part of your cultural fabric and you can only scale if you stay true to your roots and you’re authentic at every step of the way. Hold yourself very accountable too. You need to understand that nobody is perfect and you need checks and balances along the way.

You need a really strong inner circle that’s going to keep you in check and tell you when you’re making mistakes. You’re going to have to hold yourself very accountable and make sure that you don’t make those same mistakes twice. I think you want to be experimental. At N6A we do things in a very experimental fashion. I encourage my folks to go out there and to experiment. To go run tests, don’t be afraid to push the envelope and roll the dice. As long as you’re not stupid of your assessment of those experiments, you’ll find your game really improving at every step of the way if you do that.

You’re going to get a lot of experiments that work. The stuff that works, invest in, double down on those, really make those a part of the fabric of your culture as you scale to the next level. Then all of the stupid experiments you did that didn’t work, well, don’t be an idiot about those. Hold yourself accountable and make sure that you’re not doing those same experiments twice. TG, I look at our business eight years later and it’s just a manifestation of eight years of a lot of learning lessons, a lot of experiments, some of which have failed, some of which have succeeded that we’ve doubled down on. I look forward to the future of just continuing to learn, continuing to improve and get better year in and year out.

TG Branfalt: Well, I want to just congratulate you on all your success thus far and for having the foresight to recognize that cannabis is a legitimate industry that deserves legitimate professional firms such as yours. I applaud your efforts to that end. Where can people find out more about you, what you do, the agency?

Matt Rizzetta: They can check us out, our corporate website, TG, is N6A.com. They can go to competeandcare.com, which is our recruiting portal, it goes over all of our value system and our culture here at N6A and a bunch of our cool perks and competitions. If people have questions specific to our N6A cannabis division, they can send an email to cannabis@N6A.com and someone will reach out to them. From a recruiting standpoint, we’re always looking, specifically within the cannabis crew here at N6A, for great talent and talent that’s motivated by what’s going on in cannabis right now and the opportunity to be a part of a team that’s creating something special. We believe it’s a once in a lifetime opportunity.

I wish I was able to live through PR and media in the early nineties when the .com boom was happening. I was young, I was in fourth grade or so at the time, so this is kind of our way or my way of getting a second chance or a first chance, I guess, of being a part of something at the ground level that’s exciting, that’s taking off, that’s a once in a lifetime opportunity. Cannabis media and mainstream media in 2017, it’s a lot of fun. Your listeners should reach out to us at cannabis@N6A.com if they want to be a part of that.

TG Branfalt: Matt, I want to thank you for coming on this show, taking the time. This has been really a cool conversation for me to have. I have a master’s degree in communications, public relations, journalism, so this is one of the first opportunities I’ve had to really talk to somebody about where what I do now and what I went to school for collide. I really appreciate you taking the time out, man.

Matt Rizzetta: No, likewise. The feeling is mutual. We really appreciate the relationship with you, TG, and look forward to continuing to work together.

TG Branfalt: You can find more episodes at the Ganjapreneur.com podcast and the podcast section of 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. I’ve been your host, TG Branfalt.

End


Digital collage of Attorney General Jeff Sessions in front of a cannabis background photo.

AG Jeff Sessions Confirms Obama-Era Cannabis Policies Still in Effect

a word from our sponsors:

advertisement

advertise here

Attorney General Jeff Sessions — a notorious prohibitionist and medical cannabis skeptic — confirmed today that the Department of Justice is continuing to honor federal cannabis policies that were put into effect under the Obama Administration.

According to a Forbes report by cannabis journalist Tom Angell, Sessions told members of Congress during a House Judiciary Committee oversight hearing today that, “Our policy is the same, really, fundamentally as the Holder-Lynch policy, which is that the federal law remains in effect and a state can legalize marijuana for its law enforcement purposes but it still remains illegal with regard to federal purposes.”

The policy being referred to is known as the “Cole Memo,” which — established in 2013 by then-Deputy Attorney General James M. Cole — lays out guidelines for states to create their own medical cannabis programs without fear of federal intervention. Today, more than 29 states and the territories of Guam, Puerto Rico, and the District of Columbia have enacted medical cannabis reforms and rely on the Cole Memo’s protection. Eight states plus Washington D.C. have gone even further by ending cannabis prohibition entirely, but the Cole Memo does not address the legalization of adult-use cannabis.

Sessions also admitted that cannabis is less dangerous than heroin, despite both substances being categorized as Schedule 1 under the Controlled Substances Act — a classification that is supposed to be reserved only for the most dangerous, addictive, and non-medical substances.

Since becoming Attorney General for the Trump Administration, Sessions has waged a largely unsuccessful vendetta against the reform of cannabis laws. In April, he directed his staff to study whether cannabis law reforms have led to an uptick in violent crimes (they haven’t); in June, he urged Congress to restore funding to the Department of Justice for enforcing federal cannabis laws in state-legal medical cannabis markets (they didn’t); and in August, he blocked the DEA from moving forward on 25 applications to grow research-grade cannabis for the federal government.

End


Cannabis nugs from a California home grow site lie on their side on a wooden surface.

Canadian Government Proposes $1 Per Gram Federal Cannabis Tax

a word from our sponsors:

advertisement

advertise here

With Canada’s legalization date looming, North America’s northernmost nation is laying the groundwork for what will soon be the world’s largest national adult-use cannabis marketplace. Last week, Liberal MP Bill Blair — the former chief of police for Toronto and Prime Minister Justin Trudeau’s point man for the country’s legalization process — announced the federal government’s plan for taxing the industry.

According to an Edmonton Journal report, the plan would create a federal excise tax of either $1 per gram of cannabis or 10 percent of the final retail price — whichever is higher. Revenues from the excise tax would be divided evenly between federal and local authorities.

“I’m very comfortable that the level of taxation that has been determined as appropriate in this case achieves our goals of keeping the price sufficiently low to be competitive with an illicit market, while at the same time not creating an incentive for the consumption and purchase of this drug,” said Blair.

Federal and provincial sales taxes would still be applied in addition to the excise tax, meaning that customers should expect cannabis prices to fluctuate from province to province.

Blair’s announcement last week kicked off a period of soliciting public consultations that will end Dec. 7, which Blair says should give federal, provincial, and territorial finance ministers enough time to gauge public comments on the proposed tax plan before convening in Ottowa on Dec. 10-11.

Canada‘s legal marketplace is expected to launch July 1, 2018.

End


Rows of young cannabis plants growing in a greenhouse environment.

Attend the Golden Tarp Cannabis Awards Live Online November 18th

a word from our sponsors:

advertisement

advertise here

Cannabis competitions are not created equal. Some competitions are more fluff than substance. Some events attract less-than-earnest participants, too. You can tell by how many of their entrants fail a simple lab test for banned synthetic nutrients or solvent residue. But some cup-type events are exceptionally well designed, attract the best growers and deserve the respect rained upon them. The Golden Tarp Awards is just this type of cannabis event.

You probably already know of the Emerald Triangle, but if you are new to it, it is the region encompassing Humboldt County, Mendocino County and Trinity County in Northern California. It is the heartland of American heritage cannabis. The hub of cannabis genetics for the region is the country’s most important cannabis nursery, Wonderland Nursery. Through those doors go a significant share of the cloned cannabis starts that will become beautiful smelling cannabis flowers enjoyed by cannabis enthusiasts everywhere. The visionary behind this influential and prosperous community business is Kevin Jodrey. Jodrey thought there was something important missing in the cannabis cup scene, so he created his own competition.

The Golden Tarp Awards cannabis flower competition, now in its fourth year, is solely for cannabis grown with “light dep” techniques. These plants are deprived of light earlier in the season than would naturally occur in nature so they bloom earlier in the summer. They are the first of the new season’s plants to be finished, trimmed and cured. It is only these flowers that may enter the competition.

The categories of competition are entirely unique. All entries fall into Fruit, Floral, Earth or Fuel categories. Even more impressive is the probiotic growing nature of this event. Testing prior to judging will disqualify an entry for any contaminant or pesticide. For many, because of the impressive field of probiotic, all-natural growers who enter, the Golden Tarp is sometimes considered California’s probiotic cannabis cup. The judging is top notch too but also not just performed by the industry elite. Jodrey invites professional cannabis folks and cannabis luminaries certainly, but he also invites regular cannabis enthusiasts and 10 lucky attendees will be whisked away to join the judging panel on the day of the event.

Many consider this the most relevant and important cannabis competition in the country. Not only do the competitors come from the most astute region of growers, but because light dep takes not only exceptional skill in cannabis horticulture but also extensive planning, time dedication and technique to incorporate the light dep aspect, many consider the friendly competition to be the apex of cannabis cups. The Golden Tarp is the first light dep competition anywhere.

The speakers during the event are every bit as exceptional as the competition itself. You can find the full list here, but some standouts include Mowgli Holmes from Phylos Bioscience, Fiona Ma of the California State Board of Equalization, Dominic Corva from CASP, Samantha Miller of Pure AnalyticsEric Brandstad from Forever Flowering Greenhouses, MMA Pro Fighters Pete Williams and Mikey Burnett, and event originator, Kevin Jodrey.

This year the entire event is being streamed live online. You can enjoy the grower interviews, top-notch speakers and inside jokes from the comfort of your own home. Not only that, but there will be a special judge’s feed that will include interviews with past Golden Tarp winners.

Of these past winners ,founder Kevin Jodrey says, “(Over the) last couple years, Zkittlez took California by storm and was made famous by NorCal breeders and growers, and from there it launched into the rest of California. Some of the top, funkiest, fuel-y kushes come from Humboldt County and Mendocino. Genetics of old and new that people come to demand — these are typically from breeders like the ones in the hills of NorCal, Oregon, Washington and even British Columbia’s Kootney and Vancouver Island regions. Supporting the small farmer is supporting diversity of cannabis strains and entrepreneurs. Diamonds aren’t discovered at Tiffany’s all polished up and in blue little boxes….they are dug up from the rough. Your next favorite strain of cannabis might very well come from the people you meet on The Golden Tarp Award’s live feed November 18th.”

In the evening, you can enjoy musical guests, Finn GruvaWalterUGPCutthroat Mode ClicJohn StreetzDirty Rats, Grateful Dead cover band Hardly Deadly and more. All of these performances are available to be watched online!

If you decide you want to check out the festivities, you can pick up the free live stream on Saturday, November 18th starting at 11am PST and running all day long. If you are down for a road trip, show up in person and have the full-on experience. Tickets to the entire event are only $20. Speakers will be live on the stream and in person at these times. In addition to the great speakers, there will also be vendor booths and cannabis products available for those with California 215 medical authorizations.

For more information, to stream, and to buy tickets, visit http://TheGoldenTarp.com/

End


A young medical cannabis plant inside of a commercially licensed grow operation in Washington state.

12-Year-Old MMJ Patient Sues Jeff Sessions to Legalize Medical Cannabis

a word from our sponsors:

advertisement

advertise here

Alexis Bortell, a 12-year-old medical cannabis patient living in Colorado after she and her family were displaced from their home state of Texas three years ago, is suing U.S. Attorney General Jeff Sessions over the prohibition of cannabis, according to an NBC News report.

Alexis has suffered from intractable epilepsy since she was 7 years old. After trying a variety of mainstream medications that failed to help, Alexis and her family moved to Colorado to give medical cannabis a try. Now, her family says it has been nearly three years since her last seizure.

The lawsuit argues that the Controlled Substances Act is unconstitutional as it pertains to cannabis and seeks to have the rule overturned so individuals around the country can legally and safely access the therapeutic plant.

“She just wants to be like everybody else,” Alexis’ father, Dean Bortell, said in the report. “When she grows up she wants to be free to choose where she lives and what she does for a living. She wants to be treated like an American citizen and not just a state citizen. She doesn’t want to have to fear going to jail every time she sees a police officer.”

Several other medical cannabis patients have joined Alexis’ suit against AG Sessions, including former NFL lineman Marvin Washington, Army veteran Jose Belen, and a 6-year-old medical cannabis patient with Leigh syndrome named Jagger Cotte.

End


Extraordinarily large cannabis cola sticks up out of a commercial grow site's canopy.

How to Add Big Value for Little Cost to Your Cannabis Products

a word from our sponsors:

advertisement

advertise here

Developing your product and developing your packaging are critical to the sales process, but how do you add value without breaking the bank?

Having just returned from an extensive sourcing trip in Asia, my next series of blogs will be geared to helping you add a tremendous amount of value to both your products and your product packaging. Let’s begin by building a better product for the cannabis industry.

Roleplay your customers first

As you develop your product or product line, think of the customer in two ways:

  1. Existing cannabis customers. What a wonderful time is it for this industry. For those of us who are passionate, experienced and informed about our beloved plant, we know the enormous opportunity this space provides. We get it. We’ve been here. Validate your consumer’s love and develop products that innovate and take their experience to a new level. 
  2. New cannabis customers. Now let’s look at the customer new to the industry. There are millions headed our way and now is the time to develop thoughtful and engaging products to help them on their cannabis journey. These consumers need continue guidance to make a purchase, and your design and copy can make the difference between your product being chosen over your competitor’s. 

Our role as leaders in the space is to help educate others about the benefits of cannabis. Those new to cannabis may not even know the differences between sativa vs. indica, or even THC vs. CBD. Develop your product with this in mind, and be as welcoming and engaging as possible.

Incorporate design and copy

Take a look at this gorgeous collectible box I found in Hong Kong.

The individual tins lend themselves to strong creative via design and copy. Options could include:

  • Labeling canisters by strain (sativa, indica, hybrid, etc)
  • Labeling each canister by effect (creative, happy, focused, relaxed, etc.)
  • Visually label each canister with images that describe the mood of the experience (emojis, symbols, etc)

When working with design and copy, you should always refer to your style guide for your rules and design elements.

Add valuable accessories that are beautifully branded

One example of a company who has added value with accessories is AnnaBis luxury handbags. These gorgeous bags come in a deep purple satin drawstring bag that one can reuse for a number of functions. They also include a high-quality canister with a gold top that matches their logo. I can personally testify that both of these accessories I’ve used at times when I didn’t have the actual handbag on my person. This is a sign of a well thought out and developed product. It adds value without adding too many costs. 

Add value through education 

The more familiar you are with your product the more you assume consumers know. Step back and view your product through the eyes of your customer. Add information to educate them about the benefits of your product and make it easier for them to connect to their purchase. This information could cover:

  • How to use your product?
  • When to use your product?
  • Where to use your product? 
  • What makes your product superior?
  • How much product to use?
  • What are the effects?

There is often a need to educate a consumer about the finer details you offer. This information may not fit in the aesthetic of the product that you’re developing for the market. When that is the case, for a little bit of money you can add something as simple as a hang tag. This hang tag could explain your product’s value, drive your customer to your website, and can help them feel good about completing their purchase.

These affordable additions can take your cannabis product to new heights. As you increase your value, you can also increase your selling price.  As leaders in the cannabis space, it is critical we welcome new consumers, and take the advice and encouragement of cannabis veterans. Pushing each other to create better product elevates the industry as a whole.

Remember, go as far as you can see, and when you get there you’ll see further.

End


Photograph captured from a helicopter flight over Las Vegas during the nighttime.

Paiute Tribe Opens First Cannabis Drive-Thru in Vegas

a word from our sponsors:

advertisement

advertise here

Las Vegas, Nevada’s Nu Wu Cannabis Marketplace has opened the city’s first drive-thru retail location less than a month after the Paiute Tribe opened the location doors, KSNV News3LV reports. The owners say the option is convenient for people with disabilities and those who are just in a rush.

“Medicinal patients – patients that aren’t able to come into the store, industry workers – people getting out of work not wanting to come inside the store,” Tribe Chairman Benny Tso said in the report. “Being able to look at our online selection, selective online menu, and having them take a look and pick up their products.”

The Nu Wu shop is in a converted bank, and the drive-thru window was already at the location. Every person in the vehicle has to have their IDs checked and the customer must pay cash – as is customary in the industry. Currently, the shop offers a limited selection at the window and expect to get the drive-thru orders completed in 60 to 90 seconds, the Las Vegas Review-Journal reports.

The shop currently employs 105 people — about 10 percent are either Paiute Tribe staff or relatives. According to the report, the profits stay in the Paiute Tribe.

End


Commercial-grade cannabis plants inside of a licensed, indoor cultivation site.

Bill to Add More MMJ Licenses Due to Diversity Issues Planned in Maryland

a word from our sponsors:

advertisement

advertise here

Members of the Maryland Legislative Black Caucus are drafting a bill that would award 10 new medical cannabis grower and processor licenses specifically for African American entrepreneurs after none were granted licenses by the state Medical Cannabis Commission, the Star and Democrat reports. At least two African American-led medical cannabis companies have sued the commission claiming it was “derelict in its legislatively mandated duty to actively seek to achieve racial, ethnic and geographical diversity when licensing medical cannabis growers.”

The House of Delegates attempted to add five licenses last April via a bill championed by caucus Chairwoman Del. Cheryl Glenn; however, that bill failed to gain approval in the chamber following a round of amendments. If approved, the bill likely would have put an end to the lawsuits against the commission. That month, Gov. Larry Hogan ordered a diversity study of the state’s medical cannabis program to determine whether minorities were at a disadvantage in trying to obtain licenses. The results of that study are expected next month.

According to the commission, 321 cultivation, distribution, and processing licenses were awarded in the state and 208 of those went to white men. Of the remaining, 113 went to a company led by a member of a minority or multiracial group, while 55 were awarded to companies led by Black men and women.

Glenn called the results of the license approvals “shameful” in a state where “one-third of the population is African American.”

“I will bank on it that we’ll come away from the table with five new licenses for growers and five new licenses for processors that will be awarded based on the results of the disparity study,” she said in the Star and Democrat report. “What does that mean? That means these licenses will go to, in large part, African Americans.”

The bill would also set up a “compassionate-use fund” comprised of industry fees to help make cannabis products more affordable to Maryland patients who need it, as medical insurance does not cover the costs.

End


W!NK and SEVEN Vape Brands Announce Release of THC-Infused Sugar Products in California

a word from our sponsors:

advertisement

advertise here

LOS ANGELES, CA – November 7, 2017 – Industry leading vape brands W!NK and SEVEN, announced today the release of their THC infused sugar. Derived from organic cane sugar fused with THC distillate, W!NK and SEVEN Sugars provide patients with the most versatile, low-calorie microdosing solution available today. The childproof, individually packaged sugars are available in 5mg THC packets from W!NK and 10mg’s from SEVEN. They are portable, discreet, and taste great when added to coffee, tea, cereal, smoothies or anything patients want to sweeten and infuse.

For patients and consumers looking for alternatives to infused baked goods and other fat-based edibles, W!NK and SEVEN Sugars are the ideal low calorie, controlled dosing solution. Easily carried in a pocket or purse and requiring no refrigeration or additional devices such as a vape pen, these W!NK and SEVEN Sugars can be added to your favorite food or beverage delivering just the right amount of sweetness and medicine. “We saw a need in the market to produce a THC-infused product that not only was effective but also versatile and tasted great” said Stacy, the brands Founder and CEO. She continued, “We are keenly focused on bringing patients the highest quality cannabis-derived products, so our Sugars were a natural addition to our popular vape oil, tinctures and balm lines of products.”

Organic, vegan, gluten-free, fat-free and manufactured with highest standards possible, W!NK and SEVEN Sugars are put through rigorous testing procedures to ensure no impurities are present and patients can expect consistent and accurate dosing every time.

W!NK and SEVEN Sugars are now available throughout California. Dispensaries and delivery companies interested in carrying the Sugars or any of the high-quality W!NK and SEVEN products, can contact sales@wink-wink.com for more information.

ABOUT W!NK & SEVEN BRANDS:

As female-owned and operated businesses, we aren’t just passionate purveyors of cannabis products, but of everything that comes with a full, rewarding and healthy life. We offer a selection of premium vape oils, infused tinctures, balms, sugars and fine cultural accessories to help increase the quality of our clients’ lifestyles. Each product is carefully developed from the high-quality oil through to the beautiful packaging.

www.wink-wink.com
www.seven-brand.com

ABOUT ELEVATED AGENCY:

Based in Los Angeles, CA and founded in 2016 by industry veteran and former co-founder of MG Magazine, Elevated Agency (www.elevatedagency.com) is a leading cannabis industry Marketing/PR/Consulting firm. Elevated Agency’s clients include a number of premier manufacturers, service providers and trade events in the industry.

# # #

Contact:

Farley Cahen
Elevated Agency
e. pr@elevatedagency.com

W!NK & SEVEN
e. sales@wink-wink.com

End


The New York State Capitol Building in Albany, New York.

New York Gov. Signs MMJ-for-PTSD Bill

a word from our sponsors:

advertisement

advertise here

Medical cannabis is now available as a post-traumatic stress disorder therapy in New York after Gov. Andrew Cuomo signed the legislature-approved measure during a Saturday Veterans Day parade, according to a New York Daily News report. The Assembly first passed the bill 131-8 in May and the Senate followed 50-13 in June.

“Many of our veterans are suffering from PTSD and the medical community has determined that marijuana can be a helpful treatment in some areas,” Cuomo said in the report. “And part of our commitment to do everything we can do if there are veterans who are suffering and we can make a treatment available, we want to.”

Rep. Richard Gottfried, chairman of the Assembly Health Committee and sponsor of the chamber’s version of the measure, in a statement said Cuomo’s announcement is “another welcoming step in the expanding and strengthening” of the state’s medical cannabis program.

In late March the state Department of Health added chronic pain as a qualifying condition under the regime, and in August opened up the operator licensing to five additional companies. The agency also proposed allowing more products for patients, including topicals, chewable tablets and lozenges; however, raw flower products are still not being considered.

According to the Health Department, as of Nov. 7 there are 35,318 registered patients and 1,312 registered medical professionals enrolled in the program.

End


The underbrush of a dense hemp field.

Wisconsin Legislature Unanimously Approves Industrial Hemp Bill

a word from our sponsors:

advertisement

advertise here

Wisconsin’s legislature has unanimously passed a bill to implement an industrial hemp pilot program. The measure falls in line with other state programs and federal guidelines requiring that plants contain no more than 0.3 percent THC.

The measure will require cultivators to undergo a federal background check and allows license denials for individuals who have been convicted of violating controlled substances laws. Growers will have to provide GPS coordinates of the land on which the industrial hemp will be grown. If any plant in the crop tests higher than 1 percent THC, the entire crop would be destroyed, the bill states.

The measure also allows higher education institutions to establish industrial hemp research programs. The legislation further requires that the University of Wisconsin-Madison College of Agriculture and Life Sciences and the Wisconsin Crop Improvement Association “to administer a voluntary seed certification program” for industrial hemp.

State Rep. Dave Considine said while he believes parts of the bill could be improved, he believes hemp is “a part of Wisconsin’s agricultural future.”

“Farmers and citizens across our state are learning more about hemp and realizing that it could be a great opportunity for our agricultural economy,” he said in an Urban Milwaukee report.  “With this broadening support, there is no good reason industrial hemp should still be illegal in our state.”

The bill next heads to the desk of Gov. Scott Walker for his signature.

End


A cropped panorama photograph of Pittsburgh, Pennsylvania.

Pennsylvania MMJ Program Enrolls 3,800 Patients in First Week

a word from our sponsors:

advertisement

advertise here

More than 3,800 patients and 200 caregivers have signed up for Pennsylvania’s medical cannabis program during the first week patients are caregivers were able to register. The program, which launched in 2016, allows patients with 17 qualifying conditions to access non-smokeable forms of cannabis such as pills, oils, vapor, or tinctures if approved by a physician.

Gov. Tom Wolf said the state Department of Health has been “laser-focused” on implementing the regime since he signed the measure into law over a year ago.

“The success of the patient registry one week since it was announced is another indicator of the need for this vital medication, and a testament to the department’s commitment to making medical marijuana available to patients in 2018,” he said in a press release.

Physician General Dr. Rachel Levine, who also serves as the acting secretary for the Health Department, called the response from patients and caregivers “extremely positive” and urged citizens to speak with their doctors about certification.

Last month, the state began issuing licenses to some industry operators, issuing the first of the 12 production licenses to Creso Yeltrah.

As of Nov. 1, more than 100 physicians have registered to recommend medical cannabis in the state.

End


A large, trimmed cannabis nug lying sideways on a wooden surface.

Maryland MMJ Commission Director Resigns

a word from our sponsors:

advertisement

advertise here

The director of the Maryland Medical Cannabis Commission has resigned less than a month before the Dec. 8 deadline for dispensaries to begin operation, according to a Baltimore Sun report. Patrick Jameson, a former state trooper who took over the role in April 2016, will remain at the post until the end of the month.

According to Commissioner Brian Lopez, the commissioners did not request Jameson’s resignation.

In a statement, Jameson, the second executive director to resign from the commission in as many years, said, “the time has come for me to pursue other interests.” Jameson was named the new chairman by Gov. Larry Hogan while the state was in the review process. That process is the subject of an ongoing lawsuit by two would-be medical cannabis companies who accuse the commission of acting arbitrarily in denying them cultivation licenses.

“It has been an honor to help sick people and launch a new lucrative industry in Maryland,” Jameson said in the report.

Lopez indicated that 40 of more than 100 potential dispensaries are in the final stages of approvals and that the commission believes their “tone…is changing.” More than 95 dispensaries must be online by Dec. 8 or they could lose their opportunity to start their business.

End


Payments and Cryptocurrency Firms Partner for Cashless, Crypto-Payment System

a word from our sponsors:

advertisement

advertise here

Medical Cannabis Payment Solutions and First Bitcoin Capital Corporation have announced a partnership to integrate cryptocurrency with the payment solution company’s StateSourced payment gateway. The collaboration would allow medical cannabis companies using Medical Cannabis Payment Solutions’ systems to accept StateSourced debit cards, WeedCoin, and other cryptocurrencies including Bitcoin.

Jeremy Roberts, CEO of Medical Cannabis Payment Solutions, said the project “has the potential of allowing consumers real-world non-cash payment solutions” and help businesses with the “regulatory hurdles” as the industry continues to be shut out from standard banking procedures.

“We will provide customers a world class experience with our vast compliance distribution network, including full compliance with [Financial Crimes Enforcement Network] and the Cole memo and through the inclusion of our state of the art StateSourced payment technology,” he said in a press release.

First Bitcoin CEO Greg Rubin said the “intent” of the partnership is to “revolutionize end-to-end processing of payments and compliance products.”

“With an industry serving a population of approximately 175 million people in over 25 states and one of the largest growing industries in the nation, America is set to be the world’s largest marketplace for cannabis,” he said in a statement.

As part of the deal between the two firms, Medical Cannabis Payment Solutions will purchase a block of WeedCoin from Cannabis Sativa Inc., for a block of restricted common stock.

End


A cannabis worker plucks large leaves from the stalk of a freshly harvested plant.

Report: Global Cannabis Market Could Reach $31.4B by 2021

a word from our sponsors:

advertisement

advertise here

According to a Brightfield Group report, the global cannabis market is expected to reach $7.7 billion this year and $31.4 billion by 2021, representing a compound annual growth rate of 60 percent.

The researchers expect the adult-use market in Canada, expected to roll out in June, to hit $5.7 billion by 2021 – roughly half the size of the market in the U.S. Together the two markets will represent 86 percent of global cannabis sales by 2021. The group anticipates that European markets, led by Germany, the Netherlands, Switzerland, and Spain, will comprise another 12 percent.

Bethany Gomez, Brightfield’s director of research, said that by 2021 the U.S. will “drop from 90 percent of global sales to 57 percent.”

“However, much of the hype about international markets is overblown: only a handful of countries are opening the door to viable business opportunities and in order for companies to be successful they will need to have a shrewd understanding of the nuances and challenges of each specific market,” she said in a press release.

The report suggests that low THC, high CBD products have become “the most widely accepted globally” and many countries are permitting such products for importation and local development. The report indicates that while “Canadian companies are moving quickly to become leading cannabis cultivators, brands and distributors internationally” Australian and Israeli companies “are investing in medical marijuana research to corner the pharmaceutical marijuana market.”

End


Rep. Blumenauer Launches Cannabis Fund to Unseat Prohibitionist Lawmakers

a word from our sponsors:

advertisement

advertise here

Oregon Rep. Earl Blumenauer has launched the Cannabis Fund – a political action committee geared toward ousting prohibitionist lawmakers – and the Democrat has his sight set on Texas Republican Rep. Peter Sessions as his “first target,” the Statesman Journal reports.

“We’re going to be putting up some billboards in Pete Sessions’ district … It’s going to feature a veteran and ask the question why Pete Sessions doesn’t want him to have access to his medicine,” Blumenauer said in the report. “We’re going to make the point that there are consequences. This is not a free vote.”

Blumenauer is a member of the bi-partisan Congressional Cannabis Caucus, which includes Republican Representatives Dana Rohrabacher (California) and Donald Young (Alaska), along with Blumenauer’s Democratic colleague Rep. Jared Polis (Colorado).

As of June, the last time the financial activity was reported, the Cannabis Fund had just $2,000 in contributions; however, during the 2015-16 election cycle cannabis-related political committee raised at least $177,840 led by the National Cannabis Industry Association ($104,066), the Marijuana Policy Project ($47,140) and NORML ($26,634), according to the Journal’s summary of Federal Election Commission filings.

“I want to see even more pro-cannabis candidates elected to Congress and continue the wave of reforms happening at the state level,” Blumenauer told the Journal. “And we want to make clear that there are consequences for those elected officials opposing what a majority of the public supports.”

End


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

Maine’s New MMJ Rules Permit Surprise Caregiver Inspections

a word from our sponsors:

advertisement

advertise here

The Maine Department of Health and Human Services released new rules governing how the state will oversee medical cannabis caregivers in the state, allowing unannounced inspections and rolling out a plant-to-patient tracking system, the Portland Press Herald reports. The new rules, which are set to take effect on Feb. 1, drew the ire of caregivers leading to one lawyer calling the new rules “a big invasion of privacy for small caregivers growing in their home.”

“It means that they have to be ready to open their door, at any time of the day or night, because they are growing medicine for sick people,” said Matt Dubois, a Bangor-area attorney who represents cannabis businesses. “That can make every knock at the door feel very intimidating, make them feel like criminals when they’re not.”

Under the current regime, the state can only inspect caregivers if they receive a complaint; but the caregivers have the right to refuse immediate entry and plan to reschedule a visit when they have an attorney present, Dubois said, adding that the new rules do suggest that officials will give caregivers a day notice before the inspection. The rules also require that caregivers fill out so-called “trip tickets” to document the movement of cannabis from a grow site to wherever they dispense the medicine to a patient. Under current rules, only dispensaries are required to fill out these tickets.

The new rules also prohibit telemedicine examinations for medical cannabis patients, which Dubois said will make it harder for rural Maine patients to access the program.

In Maine, medical cannabis patients can receive their medicine from either the state’s eight licensed dispensaries or from the 3,200 licensed caregivers. There are currently 50,000 registered patients, which has climbed 36 percent year-over-year, the report says.

End


Automated Cashier Technology from Cannabis Cash Solutions Reduces Shrinkage, Theft

a word from our sponsors:

advertisement

advertise here

Cash flow in the cannabis industry is a constant and delicate process — from consumer to retailer, from retailer to processor, from processor to grower, etc. But for every successful transaction, a cautious entrepreneur is also aware of the risks, which can include theft (by customers or employees), the miscounting of cash, or even robbery. To combat these issues, Cannabis Cash Solutions offers improvements and augmentations for cash-handling practices in the cannabis space.

Cash handling goes arm-in-arm with security — so by utilizing the latest “smart vault” and automated cashier technology, Cannabis Cash Solutions helps provide entrepreneurs peace of mind with an honest and simple solution: consistency through automation. The company’s automated cashier service is a cash deposit system that transitions the responsibility of cash handling from budtenders (or other industry employees) to an automatic counting and change-dispensing system, similar to a modern supermarket’s self-checkout lane.

“With so many states becoming legal, there are tons of new consumers and, in many cases, they have a lot of questions. So rather than removing that and making it ‘self-service,’ we’re focusing on taking over just the cash-handling,” Andrew, company founder and CEO, said in a phone interview. “We wanted to offer something that preserves the one-on-one experience that you have with a budtender.”

The automatic cashier has three basic functions:

  • Intake cash from customers into a secure deposit vault.
  • Accurately calculate and dispense the customer’s required change.
  • Provide real-time updates tracking the amount of cash inside the unit.

Each step of this process helps to streamline cash flow in a retail setting, remove employee temptation by automating their cash-handling responsibilities, and reduce the threat of robberies by keeping cash secure and largely inaccessible. The automated cashier also frees up valuable time that would have been spent counting cash and removes the chance of a costly, time-consuming miscount.

At the end of the day, or whenever the deposit vault needs to be emptied or cash needs to be transported, an individual with proper clearance — a store manager or security personnel, for example — can access and remove the deposits via specially designed cartridges.

“From the transport standpoint, they like the idea of just being able to look at a report, see how much money is at a location, go in there, pull some cartridges, know that the count is going to match, and then take it back to their counting room,” Andrew said. “That’s opposed to what they deal with today in pretty much every case, where it’s the store’s responsibility to count all the money, they have to bag all the money, they have to tag all the money, then the transport company picks up the money, takes it back to their counting room, has to recount it, and then — if there is any issue in the count — they have to go in and figure it out.”

Cannabis Cash Solutions also offers deposit-only vault services, which are helpful not only in retail locations but also provide peace-of-mind to growers, delivery drivers, or any other individual involved with the constant flow of cash in the cannabis industry.

All vaults are easily operable, Internet-connected and provide real-time reporting. An API is available so that the systems can be integrated with a dispensary’s point-of-sale software.

To learn more about purchasing or leasing a Cannabis Cash Solutions vault or automated cashier, visit CannabisCashSolutions.com or call (559) 761-0883. Help with installation is available by request.

For a demo of the automated cashier system, see the video below. Alternatively, if you are attending MJBizCon in Las Vegas this November 15-17, stop by for an in-person demo at Booth #3540!

Watch a video demonstration here.

End


The sun peeking through clouds behind a chainlink/barbed wire fence.

Indiana Prosecutors Pen Letter Opposing All Forms of Cannabis Legalization

a word from our sponsors:

advertisement

advertise here

The Association of Indiana Prosecuting Attorneys sent a letter to the chairman of the state Commission to Combat Drug Abuse asking the body to “formally oppose the legalization of marijuana in any form, for any purpose” claiming cannabis is “not medicine,” that its use increases opioid abuse risk, and legalization has had “devastating effects in other states.”

The association cites three studies they say show that legalization “could further exacerbate Indiana’s opioid epidemic” – one from the National Academy of Sciences, another from the Centers for Disease Control and Prevention, and another from Columbia University published in the American Journal of Psychiatry which concludes “cannabis use appears to increase rather than decrease the risk of developing nonmedical prescription opioid use and opioid use disorder.”

The letter, dated Nov. 3, does not include references to the National Institute on Drug Abuse research that led the agency to conclude that their studies “cumulatively suggest that medical marijuana products may have a role in reducing the use of opioids needed to control pain.”

Taking aim at medical cannabis, the prosecutors argue that there is not sufficient evidence to conclude that “whole plant” cannabis is medicine and that current information purporting as such is “based on half-truths and anecdotal evidence.” They argue further against medical cannabis because it is not recognized by the Food and Drug Administration.

Further, the attorneys argue that legalization has led to workforce issues, an increase in car accidents, and an uptick in youth use in legal states.

However, a study published in June found that 91 percent of cannabis consumers are employed full-time; studies concerning traffic safety in legal states are far from conclusive; and the National Survey on Drug Abuse released a study in September which concluded that teen cannabis use is at its lowest point since 1994.

End


Jon Vaught: Cannabis and Tissue Culture Cloning

a word from our sponsors:

advertisement

advertise here

Jon Vaught is the CEO of Front Range Biosciences, a cannabis agriculture firm based out of Boulder, Colorado that specializes in tissue culture cloning for the cannabis industry.

Jon recently joined our podcast host TG Branfalt for an interview that covers his early career in organic chemistry and agriculture science, Front Range’s successful seed round of investments, how the company is revolutionizing cloning methods for the cannabis industry with tissue culture technology, the regulatory and logistical challenges they have faced along the way, and more!

Tune in to this week’s Ganjapreneur.com podcast episode below, or scroll down to read a full transcript of the interview.


Listen to the podcast:


Read the transcript:

TG Branfalt: Hey there. I’m your host, TG Branfalt and you are 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 delighted to be joined by Dr. Jon Vaught. He is the CEO of Front Range Biosciences. You guys are doing some crazy stuff. How you doing today, Jon?

Jon Vaught: I’m good, thank you, Tim. How are you doing?

TG Branfalt: I’m great. I’m real excited to get at the meat of what you and your company does, but before that I want to know about you, man. What’s your background? How’d you get started in this space?

Jon Vaught: Yeah sure. So I, actually I grew up in North Carolina and I did my BS in Chemistry at North Carolina State and my PhD in Organic Chemistry at the University of Colorado at Boulder, so I’m a hardcore organic chemist is my background. I actually started my career in molecular diagnostics while I was in graduate school and I worked for a startup company here in Boulder, Colorado called SomaLogic. We were working on using the human protiome to better understand chronic illness, things like cancer, heart disease, inflammation and other chronic illnesses like that.

We worked with some big pharma companies, some big diagnostic companies, and developed the world’s largest proteomic biomarker discovery platform. We would just look at a group of proteins in blood and then use it to predict disease outcomes. I spent about five and a half years doing that and then I went to another startup company in the molecular diagnostic space. That company by the way, we grew to over, when I started it was a little less than 20 people and we grew to over 120 while I was there. Today they’re over 200 and into the tens of millions in revenue.

Then I went to a company called Beacon Biotechnology for food safety. They brought me on to develop a pathogen detection platform for food processing. So this was detecting bugs that make people sick, things like salmonella, E.Coli, listeria and building a molecular test that would allow large food processors to test this on the factory floor in a large scale. After a couple years there, I went to help my former PhD advisor Bruce Eaton start another molecular diagnostics company called Velocity Sciences and that was back on the human side.

I spent about two years getting that company off the ground with him. We were doing similar work to what we did at SomaLogic, working with several companies around drug development and better understanding certain pathways and disease and then building new technologies to help them do diagnostic tests. That’s when I really was starting to pay attention to the cannabis industry. I’d always been fascinated. It was actually my original inspiration for organic chemistry was what nature does with plants and a lot of the interesting compounds that are produced in plants, and so that’s kind of what sparked my interest.

So as the cannabis industry became legal here in Colorado, I began to look at it more seriously as a way that I could begin to actually take some of my formal training and apply it to this emerging industry. So originally started thinking about spinning up a division within that company and realized the corporate and regulatory constraints were too severe for what we could do within that company, so I decided to spin out one and that was the birth of Front Range Biosciences a little over two years ago.

Yeah, that’s kind of how I got into the cannabis space and I went very quickly from analytical testing and formulation type work to looking at agricultural technology, just seeing there was a huge need from growers to get access to the tools that had been developed for other farmers and other crops that they just hadn’t had access to due to prohibition. That was kind of became the foundation for Front Range and how we got started.

TG Branfalt: Then you bring Front Range, you end up in the CanopyBoulder Accelerator of some really great stuff has come out of this, and so tell me about your experience with CanopyBoulder. How did that program help get you off the ground and what did you learn from participating in the accelerator?

Jon Vaught: It was a great experience. One of our other co-founders, Nick Hofmeister, who’s our COO, he had actually been a mentor at CanopyBoulder for at least a year or so. He was also a mentor at TechStars. He’s definitely the business brains of our company. I have some of that, but not as much as he does. He’s got an MBA from MIT. Anyways, as he had that relationship there we began to talk to them about potentially participating.

So we decided to do that and we were fortunate enough to be able to join the program last year. It was a really wonderful experience. So between Nick and I, we actually have eight biotech company startups under our belt and so the kind of business building entrepreneurship 101 was not our main goal. It was really to build some relationships in the investor network for the cannabis industry as well as the just the broader industry relationships.

So potential customers, vendors, potential partners, collaborators, and to really get some exposure to that space. You know, the business building 101 was very helpful as well. It’s always great to have a structured environment to help get things organized, but yeah, so overall it really helped us a bunch. It helped us land some of our first investor conversations and our first investments. I went out and pitched at Demo Day at the Boulder Theater, which was great. Got exposure to close to 1,000 people.

Yeah, overall it was a really positive experience. Micah Tapman and Patrick Gray are great guys to work with. We still actively work together with them whenever we have the chance, whether it’s just networking or mentoring other companies in the program and yeah, it’s a great relationship.

TG Branfalt: Getting into the meat now of what Front Range Biosciences does, explain to me, I’m a layperson, what cloning tissue actually is and how do you grow a plant using this method?

Jon Vaught: Yeah, absolutely. Traditional cloning, which is what most people do in cannabis, is technically called vegetative propagation. This is where you take cuttings from a plant, and these are usually referred to as mother plants not only in the cannabis industry, but also in other industries, and you take cuttings from these plants. You dip them in some type of rooting hormone and some type of nutrients occasionally. You put them into a rooting plug. It could be some type of media, cocoa, rock wool, even soil, and it grows roots and you have a new baby plant.

This is the most basic, traditional form of cloning. It’s been done for thousands of years, and tissue culture is really just an advanced technique or advanced way of doing this. The challenge with, or the problem with traditional cloning or vegetative propagation, is that whatever pathogens, so you’ve got bacteria, you’ve got fungi, you’ve got things like bugs, mites, aphids, you’ve also got potential viruses. One thing that everybody’s probably very familiar with is tobacco mosaic virus. It’s something that came from the tobacco plant.

Anyways, all of these different pathogens can be found on any number of plants, including cannabis, so when you take a cutting from a mother plant, it has these pathogens. You’ve now just passed them right onto the offspring. So your clone now has those same pathogens. Now when you start fresh and you do it the first couple of times, usually the plant, if it’s alive and healthy and doing well, it can actually survive because it’s learning to live with these pathogens and it’s doing okay.

Over time as you clone again and again and again and again, the plant gets weaker, its immune system gets weaker. The pathogens get stronger and you eventually can end up with massive disease outbreaks. Powdery mildew is a great example of something that’s plaguing the cannabis industry all over the place. You go take, let’s say you’ve got 100 moms and you take a few thousand cuts from them and you go populate your grow room with them, if your moms were not healthy and they had any type of pathogen, and it could even be hidden, you might not even be aware that they had it, and then you put those few thousand plants in your grow room, you’ll now have a huge disease outbreak.

That’s the big problem with traditional cloning. It also gets hard to scale, meaning that you can only produce as many clones as you can grow mothers. So you have to grow, if you want to produce a million baby plants, you probably have to grow 100,000 mother plants or maybe 50,000. It depends on how many cuts you take from each plant. Tissue culture gets around this by starting out with your cutting in a sterile environment.

So we take plant material from a mother plant and then we put it into a cleaning process basically. We do a series of washes and then we get it into a tissue culture medium. This is basically just the most core ingredients that a plant needs to survive. Certain salts, nutrients, occasionally some hormones. It’s in a sterile environment, meaning the container that it gets put into has been sterilized so there’s no bacteria, no fungus, no bugs, nothing present.

Then from there the plant begins to grow. This is called the initiation process. This is actually one of the hardest parts of tissue culture is getting the plant stable, clean, healthy in this new micro-environment. You generally do it in a laboratory in a sterile hood. It requires some laboratory equipment. It’s not something you just do in your greenhouse. Once you get it into initiation, this process can take anywhere from three to six even nine months depending on how diseased the plant was, how healthy it was, and what the specific genetics are.

Then once you have it stabilized, then you can begin to do the multiplication stage, which is basically where you amplify the number of plants. So you start with one tiny little cut, and I mean tiny as in like one little node. So maybe one or two tiny leaves, a tiny little stem, less than an inch. As you grow this in the multiplication stage you create more shoots. They call that shooting.

You cut the shoots, then you do the same thing. You then plant those and you do this over and over again, but you’re doing it in these very small Tupperware containers. So for example, I can fit around 8,000 plants on a four by two bookshelf that’s got … Or a four by two set of stainless shelves, like kitchen shelving or whatever. There are five to six levels. I can fit several thousand plants per level.

It’s a very small space to have a very large number of plants. From there we just take them through a pretty standard, it’s a little bit different than a traditional cloning, but a pretty standard rooting process. You change the hormone and nutrient mix, you get them to grow roots, and then you transfer them to a rooting plug where they continue to develop those roots. Then they go through an acclimatization process, which is basically where they come out of their in vitro or their sterile environment into their natural world. They’re exposed to normal light, temperature, humidity, all of the things that they’re going to see in either an indoor grow, a greenhouse, or outdoors.

At this point the process really becomes the same. You’re getting the plants hardened off and ready for production. The advantage though is that we can do this 10,000 or 100,000 plants at a time where they’re all uniform, they’re all healthy, they’re disease-free, they’re stable, they’re vigorous. So in other plants you generally see more vigorous growth. You see much more reproducible starts from all of your clones and so it’s just a much more efficient way to do cloning. So that was a long winded answer to your question, but hopefully that did it.

TG Branfalt: I’m sure you’ve seen the episodes of Futurama where Fry’s in that little tube, and this is what I envision, that you have a lot of little clones, Fry clones in these tubes. From a layman, that’s how I sort of envision it.

Jon Vaught: You’re exactly right. You’re exactly right. We’ve got pictures on our website and sometimes we do it in test tubes, sometimes we use these small square boxes which look like Tupperware containers that are plastic. Yeah, that’s exactly what it’s like. It’s a little, it’s an interesting gelatinous substance that they grow in. It’s just got a few salts and some nutrients for the plant and then we put them under lights and let them grow. But it is a very specialized process.

TG Branfalt: I’m going to ask you some more in-depth questions about this whole process, the results, what results you get, but before we do that we’ve got to take a break. This is the Ganjapreneur.com Podcast. I’m TG Branfalt.


If you were looking for a job in the rapidly growing and highly competitive cannabis industry, Ganjapreneur.com is the place to look. Visit the Ganjapreneur job board today to browse current openings with cannabis companies throughout the United States, from entry level budtender positions to executive level career opportunities. You can also create a profile and upload your resume to be discovered by cannabis recruiters. Visit our job board at Jobs.Ganjapreneuer.com to create your profile today.

If you are a business owner, you can post your job openings for as little as $25 on our job board to reach the largest and most engaged audience of cannabis professionals on the web. Companies who are listed in the Ganjapreneur Business Directory are eligible for free job listings. If you are already signed up, contact us today via the website or send us an email at Grow@Ganjapreneuer.com to activate your unique coupon.


TG Branfalt: Hey, welcome back to the Ganjapreneur.com Podcast. I’m your host TG Branfalt here with CEO of Front Range Biosciences, Dr. Jon Vaught. Before the break, you explained the cloning tissue process. Just a couple of questions about that. What you’re telling me is you would actually need less plants to create these clones than you would the traditional method, is that right?

Jon Vaught: Yes, exactly. So once we get through the initiation phase we begin to build up inventory of these plantlets is generally what we refer to them as. We can amplify that for months, even years, all from the same clone line without necessarily having to go back to another mother plant. So that’s how we can build up that inventory without … and save so much space compared to traditional clone where you have to grow a greenhouse full of mother plants.

TG Branfalt: That’s incredible. I’ve read quite a bit about some of the, I guess, byproducts of this process and it’s lauded as more environmentally friendly than traditional methods. Can you go into detail about how that ends up the case?

Jon Vaught: Yeah, absolutely. From a high level I think one of the biggest ways that it helps broadly and in terms of being more environmentally friendly is that it improves efficiency. You’re using less energy to produce the same number of baby plants. That’s the basic premise. You’re able to do this because as I just mentioned, you can use a much smaller footprint. In our tissue culture nursery for example, we might have several hundred thousand, even millions of plants in inventory, and that takes up maybe 1,000 square feet of space, maybe 500 square feet of space. That’s it.

We’re using low intensity lights, very simple climate control, so our footprint to keep that inventory of plants is much smaller. Now, we do still have to go through the eventual hardening off and rooting and getting the plants out, but we’ve saved all of that space or that energy that would have been dedicated to creating let’s say a few thousand mothers to get the same number of cuts, we’ve now saved all that energy. So that’s the first way.

The second way is really about minimizing disease outbreaks and minimizing the use of pesticides. So part of our tissue culture nurture program, a key point or a key component of it that I didn’t bring up yet is called the Clean Stock Program. We’re developing what we think is the first Clean Stock Program in cannabis and it’s been used in other industries, and the way a Clean Stock Program works is once we get through that initiation phase, we have the plants in very clean healthy environment, we know and can guarantee that they’re pathogen-free at that stage. That’s part of the Clean Stock Program.

The way we do that is we actually run a series of tests so these are tests for certain pathogens. It could be viral, it could be bacterial, fungal. We do these different tests, which is not so different than the type of molecular diagnostic work that I used to do. We use that to basically certify that this batch of plants is disease-free. So that’s kind of the basic definition of the Clean Stock Program. So what this means is less pesticides. So instead of getting a bunch of traditionally cut clones that might be infested with aphids, mites, powdery mildew, whatever you might be battling, depending on your growth region, you now have plants that are disease-free.

They’re healthy, you can start them off with a very clean start and they may get exposed to pathogens once they get into your greenhouse, into your grow, or even outdoors, but because they’ve started their life without those pathogens, they’re generally much stronger healthier plants and will require much less pesticides over time, especially early on. Because once a plant gets to a certain size and is vigorous and healthy, a lot of times it has natural pest defense. We even are starting to see that in certain cannabis varietals, which is a whole other topic for us, but on our varietal development program we’re looking at disease resistance.

But to summarize, I think minimizing pesticide use and increasing efficiency, everything from energy to labor and everything else are the ways that tissue culture is more environmentally friendly.

TG Branfalt: When you rolled this out, when you started offering this service, did people within the industry who were using the traditional method, did they look at you like you had three heads?

Jon Vaught: Yes, absolutely. To be honest, tissue culture is hard. Doing a new plant like cannabis that’s never been done in tissue culture, and some plants are easier than others. You might argue that potatoes are easier in some ways. You can stick a potato on your counter and it will grow roots. Cannabis doesn’t exactly do that. But yeah, so it’s very challenging. A few people had read some things on the Internet, a few folks had actually started to build some tissue culture programs and tried it out and had very limited success.

So there was a lot of skepticism. People were very much questioning whether or not this would work. Some people would get confused and think it was GMO or something and so, anyways, there was a little bit of education, but as we began to get out in the public and we’ve talked about it more, we’ve also started to demonstrate some early success with getting some rooted plants back that result in clean, healthy, vigorous plants that people are happy with. Then they started to understand and now we have people that are asking for it all over the country. That’s why we’re trying to grow as quickly as we can so that we can try to scale and meet some of that demand.

TG Branfalt: What do you think is the importance of you devising these new methods? Not just you, but there’s other people out there that are working on different ways to lower the energy footprint of the industry. I guess my question is what’s the importance of new methods as cannabis cultivation proliferates nationwide?

Jon Vaught: Yeah, that’s a great question, and it’s great timing of rit too because it’s where the industry’s in a major transition right now as it spreads not only within this country, but around the world. So from a high level this is agriculture. This is just like growing any other crop whether it’s for food or nutraceuticals or even ornamental plants. This is agriculture. Agriculture is farming, so you’re growing plants, trying to produce them in high quantities with good results, good production levels, and in general it’s very labor intensive, it takes a lot of time, it requires significant energy inputs.

So this results in what we see in our current agricultural industry worldwide, which is you’ve got a lot of commodity crops out there. It basically becomes a little bit of a race to the bottom, meaning who can grow the most in the highest product, the highest yield for the least amount of money? In the early days of an industry like right now where we’re at in cannabis, it’s a fairly high-margin business. If you do it right at least for a shorter period of time you open up a new market in a new state and nobody’s had access to this plant.

Now all of a sudden they’ve got access to it. The price per pound is very, very high and you sell out. You can’t even keep it on your shelves. However, as more and more producers come online and they get more effective and more efficient at production, then it starts to lower the price. Just simple supply demand economics. So as the price begins to drop, then competition starts to kick in. Then now you have businesses competing and the price is constantly going lower and lower.

We’ve seen this firsthand in Colorado. You can also look in new markets, like Massachusetts for example where the price per pound is probably four or five X what it is in Colorado today. Is it going to last that way? I don’t think so. So it’s really important for growers, and this is once again they were just taking lessons from all of the crops that came before this one, growers have to be more efficient and as they try to scale up it’s one thing to have a little backyard farm or even a few thousand square feet, a little greenhouse or whatever, but when you go to industrial scale agriculture where you’re producing millions of plants for example, growing and harvesting tons and tons of product, you have to be efficient. You have to be organized, you have to have quality control, you have to have SOPs, all of these things that make it work and allow you to maintain that low cost of production.

I think it’s incredibly important and fortunately in the last 20 to 30 years there’s a lot of great technology that’s been developed for other crops, so bringing that into cannabis is a great opportunity. Then another interesting facet of this conversation is that the cannabis industry itself now is actually driving new innovation in things like greenhouse design, indoor growing, lighting, all of these other things because it’s such a high margin crop right now that all of these companies that produce these kind of ancillary pieces are driving new innovations forward.

So I actually was just talking to a greenhouse manufacturer the other day and they said it’s incredible. The last 50 years greenhouse innovation was just kind of plugging along at a snail’s pace. In the last three years it’s just, it’s skyrocketed. There’s all kinds of new designs coming out, new technologies, so it’s a really exciting time in general for innovation and for improving efficiency. That’s really what we’re trying to do with our tissue culture Clean Stock Program.

TG Branfalt: Are you guys subject to the same sort of regulations about transporting over state lines with just the tissue of the plant? Does it still fall under those regulations?

Jon Vaught: Yeah, so technically we take a very conservative approach to regulatory. We’re actively trying to build relationships at both the state regulatory level and then even the federal regulatory level because whether we like it or not, that’s going to be the path to building this industry is working with those groups. So the conservative interpretation is that any plant material that’s cannabis is not legal to move across state lines currently because it’s under the Controlled Substances Act.

However, the 2014 Farm Bill around industrial hemp has offered some level of protection for plants that contain less then .3% THC. So you’re starting to see some companies moving hemp products or CBD products around state to state. Even seeds are getting moved. Often the way this is done legally is usually through that state’s Department of Agriculture. There are even some groups and universities and I think even some companies that are working with the DEA for example to get permits or clearance as well to move certain types of industrial hemp products.

But unfortunately right now until the federal regulatory status changes for this plant, shipping tissue cultures across state lines is not something that we would propose that anyone do. I don’t think it would necessarily be viewed as a legal activity, especially by the federal government. At this stage it’s still considered illegal.

TG Branfalt: Well, I want to talk to you a bit more about your fundraising activity, your investment sort of, your investment activity, but before we do that we’ve got to take a second break. This Gangjapreneur.com Podcast. I’m TG Branfalt.


At Ganjapreneur we have heard from dozens of cannabis business owners who have encountered the issue of cannabias, which is when a mainstream business, whether a landlord, bank, or some other provider of vital business services refuses to do business with them simply because of their association with cannabis.

We have even heard stories of businesses being unable to provide health and life insurance for their employees because the insurance providers were too afraid to work with them. We believe that this fear is totally unreasonable and that cannabis business owners deserve access to the same services 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 Directory, a resource for cannabis professionals to find and connect with service providers who are cannabis friendly and who are actively seeking cannabis industry clients. If you are considering hiring a business consultant, lawyer, accountant, web designer, or any other ancillary service for your business, go to ganjapreneuer.com/businesses to browse hundreds of agencies, firms, and organizations who support cannabis legalization and who want to help you grow your business.

With so many options to choose from in each service category, you will be able to browse company profiles and do research on multiple companies in advance so you can find a provider who is the best fit for your particular need. Our Business Service Directory is intended to be a useful and well-maintained resource, which is why we individually vet each listing that is submitted. If you are a business service provider who wants to work with cannabis clients, you may be a good fit for our service directory. Go to ganjapreneur.com/businesses to create your profile and start connecting with cannabis entrepreneurs today.


TG Branfalt: Hey there. Welcome back to Ganjapreneur.com Podcast. I’m your host TG Branfalt here with Dr. Jon Vaught, CEO of Front Range Biosciences. Tell me a bit about the success of your seed round. Your COO Nick Hofmeister, he described it as greater than expected. So tell me from your point of view about that experience and how it’s helped shape your company’s growth thus far.

Jon Vaught: Yeah, absolutely. We were very, very fortunate to have a good network of investors. It took a lot of networking and a lot of relationship building to build that up, which really all started with Canopy. They definitely gave us a good foundation to work from. But yeah, we were very fortunate, very successful. We went on to raise a million dollars as part of our, or as our seed round. We over-subscribed it and then ended up taking in a million and a half on that seed round.

We closed that earlier this year in early February and we actually had over-subscribed that, but we didn’t want to take anymore than the one and a half at that point and so it was a very great position to be in. It was a lot of work. We went after a lot of more traditional angel groups that were generally outside of the cannabis industry. One of the first groups that had the most intense due diligence process of all of the investments was the Sand Hill Angels.

They were a wonderful group to work with. They’re out of Silicon Valley and they’re known for their diligence process. We knew what we were getting into, but we went there several times. We built relationships. We presented and pitched their large meetings and were very successful. Getting them onboard and then after that we were able to get groups like the Harvard Business School Angels, New York Angels. Then we also had some private equity or institutional money as well that came into that round.

So yeah, it was a lot of work, but we did it in about I guess from start to finish it was about seven or eight months to close all of that money. During that time we started operations, we made our first hires, we renovated the first phase of the laboratory and we had a lot of things going on. But yeah, it was a really great experience. We’ve got a great family of investors. A lot of them are actively engaged in the company.

There’s also a fair number of individual angels that came out of whether it was the northeast or the west coast or even in the Midwest. We had groups or individuals come out of each of those regions. A lot of them are still actively engaged in the company. They’ve been making introductions for us. A lot of them have experience from their careers that they can give us feedback on certain aspects of our company and our growth plans.

So it’s been great. We’ve got a lot of great relationships there and actually since that seed round, we went out and raised another round just over the summer. We’re actually just in the process of closing that and so we’ll be issuing a press release here about that with the exact numbers and details sometime in the next few weeks, so stay tuned for that. Yeah, it was a very good fund raise and it’s really enabled us to focus on building the right infrastructure, the right team. One of the big milestones was we just brought on Cecilia Zapata. She’s a 30 year tissue culture veteran. She’s got a PhD from Texas A&M. She’s worked at companies like Dricol, Syngenta, let’s see, Ball Horticultural, a lot of the big agricultural companies in other crops.

She’s literally produced many, many millions of plants in her career. She’s built facilities in places like China and Mexico and California that can produce millions of clones a year and some of these other crops. Bringing on people like that has been enabled by that great investor support that we’ve had. So we’re going to continue to grow. We’re expanding our activities here in Colorado, building out more capacity, both for hemp clones as well as marijuana clones as we work with some of the licensed MED producers or cultivators on the marijuana side.

Then we have our own hemp nursery that we’re pushing out that will be offering clones in spring of next year. Then we’re also actively expanding into California. I’m actually going to be out there. I’m flying out tomorrow, but I’m spending a lot of time out there building some relationships. We’ve already got lots of growers that we’re working with out there and actively identifying space that we can start our operations there, which we intend to be operational in California in 2018.

So yeah, so the strong investor support has enabled all of that. I have to say, coming from traditional biotech and it’s a very competitive fundraising space, a lot of those institutional investors are not really into cannabis yet. They’re starting to look at it actually. It’s starting to happen. We really had to build a new network of investors, but it’s a pretty exciting time. There’s a lot of folks that are interested in investing. They see the opportunity, they see the potential and so putting together a good business plan, having strong financials, a good team I think is kind of the keys to drawing in some of that money.

TG Branfalt: You’ve successfully had two investment rounds. You’re expanding into California, big congratulations to you there being as you’ve only been around a couple of years. What advice might you have for other entrepreneurs looking to get into this space?

Jon Vaught: Yeah, that’s a great question. My personal advice, with my experience, in general starting a business is a lot harder I think than people often realize. It takes a lot of work and a lot of dedication. A lot of people want to start it because they want to work for themselves or whatever their reasons might be and I think to be successful at it you have to have your heart into it and you have to really believe in what you’re doing and you have to be ready to dedicate and make sacrifices.

It can take a lot of long hours. Generally speaking, looking at other industries, other businesses, which we have decades or even a century of data on, it can take three to five years to build a successful company that’s stable, approaching some level of profitability. So that’s three to five years of being down in the trenches, starting from scratch, hiring people, building infrastructure, developing business plans, building relationships, all the things that go into a business.

It takes a ton of time. I think my advice is to make sure you’re ready to sign up for that, you know? Make sure that you’re ready to dedicate that time and energy and that you believe in what you’re doing and you want to go do it. If you do that you’ll find that the right people show up, whether it’s investors, customers, partners, future employees, those, you begin to attract those types of people when you’ve got that energy and you’ve got that drive out there and you’re pursuing a goal.

I think that’s one of my big pieces of advice is to get ready. It’s a lot of work and to be ready to make the commitment. I think the other thing is to do your homework. Don’t rush into things. I think spending a lot of time doing diligence, learning about the industry, learning about potential target customers for your business model, learning about the regulatory constraints, the different types of corporate structure that you could use, how you’re going to make money, how you’re going to pay taxes, what types of employees you’re going to hire. Doing your diligence on all of these pieces is really, really important and I think a lot of times people start with an idea, and yeah, an idea is where it all begins, but there’s so much more to it than just that idea.

A lot of times as you begin to explore these things your idea will pivot or it will evolve and so I think early on, not committing yourself too quickly to oh, this is the company. This is what we’re doing and just going out and doing it, but taking your time learning about these different pieces and then once you have a good model, then going for it.

The last piece of advice I would give is to get some good mentors in place. I’m a big believer, I’ve had amazing mentors in my life. I wouldn’t be here without them. I think finding mentors that have experience, that have built companies, that have sold companies, that have built teams, that know how to do this and can give you feedback and advice and support is really, really important. I’ve got several mentors currently and so does my business partner Nick. It’s a really important piece of being a successful entrepreneur.

TG Branfalt: I want to congratulate you one more time on all of your success thus far. It’s a really fascinating thing that you’re doing and I’m really thankful that you took the opportunity to share it with me and explain it in a way that I could actually understand. That’s not an easy task when you’re talking to a guy with absolutely no background in science.

Jon Vaught: Well, thank you. I really appreciate the opportunity, Tim and I’m glad that yeah, hopefully I was able to answer some questions and shed some more light on it. Yeah, it’s been
a real pleasure speaking with you and having the chance to tell more people about what we’re up to.

TG Branfalt: Where can our listeners find out more about you, the company?

Jon Vaught: We have a website, www.FrontRangeBio.com. That’s the easiest way. There’s multiple links there to reach out to us by email. My email address is JVaught@FrontRangeBio.com. It’s J-V like Victor-A-U-G-H-T @FrontRangeBio.com. You can email me directly, but yeah, we’re also putting out some press releases. We’re updating our website again over the next month or so, so kind of stay tuned. You’ll probably see some changes over the coming weeks and months, but yeah, that would be the best place to find out more.

TG Branfalt: Well man, I can’t wait to get that press release to see how much you raised in this second round of investment and definitely keep us in the loop on everything Front Range because it’s really, really fascinating stuff, especially to me.

Jon Vaught: Awesome. Well, thank you Tim. I really appreciate it. We’ll definitely stay in touch and yeah, we’re excited to be a part of this industry and we’re going to go back to work.

TG Branfalt: You can find more episodes of the Ganjapreneuer.com Podcast in the podcast section of 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. I’ve been your host, TG Branfalt.

End