Facebook Shuts Down Pages of 6 Alaskan Cannabis Companies

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The owners and employees of at least six retail cannabis shops in Alaska claim that within the last week Facebook has either deleted or taken down their pages, leaving them with one less advertising option, according to an Alaska Dispatch News report.

The affected businesses include Arctic Herbery, Enlighten Alaska, Frozen Budz, Pakalolo Supply Co., Dankorage, and Alaska Fireweed.

Bryant Thorp, the owner of Anchorage’s Arctic Herbery, said the social media platform represented “almost all” of the shop’s advertising and that he has had issued with the page for a few months. Since the shutdown on Friday or Saturday, Thorp has focused on building his Twitter and Instagram following; however Instagram is owned by the social media giant.

Ruchika Budhraja, a spokeswoman for Facebook, said that the company has community standards that outline what is, and isn’t, permitted on the site and “anyone can report content…if they think it violates standards” and those reports are reviewed to determine if there was a violation.

Under the “regulated goods” section of those standards, “marijuana” is among the items listed as prohibited.

Oddly, the pages went dark around the same time Facebook CEO Mark Zuckerberg visited Alaska for the Fourth of July weekend.

Rich Beezley, chief operating officer at AK Frozen Budz, whose Facebook page was unaffected by the weekend shutdown but has been targeted four times in the past, called it “a weird coincidence” and speculated that his page might have been saved because the shop was closed for the holiday and the Facebook page wasn’t active.

Budhraja said she “wouldn’t think” the shutdown and Zuckerberg’s visit are tied.

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Ohio Receives 185 Applications for 24 Available MMJ Grow Licenses

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Ohio’s Department of Commerce has received 185 applications for the 24 available medical cannabis cultivation licenses in the state, according to a Fox 8 report. The state will license 12 cultivators for up to 3,000-square-foot grows and 12 for grows up to 25,000 square feet.

Regulators will award the licenses based on how businesses plan to grow, staffing and security plans, and how they plan to comply with state regulations.

Ohio’s medical cannabis regime was signed into law more than a year ago, but progress has, so far, been slow which has forced some patients who have already received a recommendation from doctors in Ohio to cross the border into Michigan – whose program allows out-of-state reciprocity – to procure their medicine, despite it being federally illegal to cross state lines with cannabis.

Under the state’s final cultivation rules adopted in April, the Commerce Department could make more licenses available or increase the square footage of grows beginning in September 2018.

Final rules regulating processors, laboratories, and dispensaries in Ohio are still being crafted by the department. Under the law, finalized versions of those rules must be completed by Sept. 8. All of the proposed regulations must be reviewed and adopted by the Joint Committee on Agency Rule Review.

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Study: MMJ Reduces Migraine Pain Intensity, Reduces Attacks Like Traditional Treatment

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A study presented at the 3rd Congress of the European Academy of Neurology has found that medical cannabis might be useful in treating migraine headaches. The study was conducted by a team of Italian researchers led by Dr. Maria Nicolodi.

Phase 1 of the study found that oral doses of 200 milligrams of THC dropped acute pain by 55 percent, compared to doses of less than 100 milligrams which produced no relief.

During Phase 2, 79 patients who experienced chronic migraines were given a daily dose of either 25 milligrams of amitriptyline – an antidepressant often used to treat migraines – or 200 milligrams of a THC-CBD combination for a three-month period. Another group of patients who suffered from cluster headaches was also given the medical cannabis product or a 480 milligram dose of the calcium channel blocker verapamil. Patients still experiencing acute pain from either migraines or cluster headaches were administered an additional 200 milligrams of the cannabis solution.

After the three-month period, the medical cannabis compound yielded slightly better results than amitriptyline, reducing attacks by 40.4 percent compared to the antidepressant counterpart which reduced attacks 40.1 percent. However, the cannabinoid solution reduced pain intensity 43.5 percent. Similar reductions were experienced by some of the cluster headache sufferers, but only in those that have experienced migraines during childhood. In those that didn’t report childhood migraines, medical cannabis had no effect as an acute treatment for patients suffering from cluster headaches.

Patients reported side effects such as drowsiness and difficulty concentrating, but interestingly, female subjects reported a decrease in colitis, stomachache, and musculoskeletal pain.

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Dr. Allen Miller: Using Cannabis to Kick Opioid Dependency

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Dr. Allen Miller is the founder/owner of Doctors Cannabis Consulting and, in addition to being a chiropractor and a consultant, is an enthusiastic patient and supporter of cannabis medicine.

In this episode of the Ganjapreneur.com podcast, Dr. Miller joins our podcast host TG Branfalt to discuss using cannabis therapy as an exit strategy for opioid addiction, how Dr. Miller’s own experience using medicinal cannabis shapes his conversations with patients, how the MMJ industry is beginning to interact with insurance companies, and more!

Listen to this week’s Ganjapreneur.com podcast episode via the media player below or continue scrolling 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 to normalize cannabis through the stories of Ganjapreneurs, activists and industry stakeholders. Today I’m joined by Doctor Allen Miller. He’s the owner of Doctors Cannabis Consulting. Welcome to the show Dr. Miller. It’s a pleasure to have you today.

Dr. Allen Miller: Hey, Tim. Thank you very much. I really appreciate you inviting me. I’m just really honored and I’m pleased to be able to get the latest news out that I think that’ll make people happy.

TG Branfalt: I’m real excited to hear it. Before we get into kind of the latest news, that sort of thing, why don’t you tell me about your background, your medical background and how you get started in the cannabis space.

Dr. Allen Miller: I got into cannabis really very late. My father was a Los Angeles police officer and I remember going to the jails at the age of seven years old watching people go through withdrawals and my father would say, “This is what drugs do.” I’m of that baby boomer generation. It scared the living hell out of me so I didn’t even touch cannabis, thinking that all the things that would go wrong would and, subsequently, until very late in life. I played football and sports. I was a bodyguard for some stars. I did my own stunts which means I was hurt constantly. I rode horses, broke my back, feet, you name it, I broke it. I lived in chronic pain and I was taking opioids because I’m in the medical profession. I work with US track and field so those things were not foreign to us. We just used them and I used them to, much like any other athlete, to be productive.

Now that things are changing and they’re harder to get, it was necessary for me to come off the drugs and I wasn’t about to go to rehab. Wasn’t going to happen and one of my associates actually worked in a dispensary, was quite knowledgeable about it and she actually helped me. Goes, “Why don’t you just go and do marijuana? Why don’t you just do that?” She took me down, helped me get my first recommendation card and that’s what started me on the journey through medical marijuana, CBDs and all these other products, which later turned out, as what we’ll discuss, into what I’m currently doing. It was completely by accident.

TG Branfalt: That’s really the first thing that I want to talk to you is the use of cannabis as an exit drug. I’ve said this on the show a few times, how I use cannabis and I just want to kind of give you the breakdown. I haven’t used alcohol in three years and I credit much of that success to cannabis. I use cannabis throughout the day in small amounts to mitigate my own pain. I microdose with edibles to ease anxiety but at night and the weekends, I certainly consume more and more potent cannabis. I basically replaced getting blackout drunk with upping my cannabis intake and when I really want to drink, I smoke and the urge passes. Admittedly I was never hooked on opioids but for me, it has helped me get off of alcohol. I know that alcohol and opioids, they’re not the same thing, but can you tell me more about the studies that have been done and your experience with patients helping them use cannabis as an exit drug?

Dr. Allen Miller: Yeah. You and I use it very similar. I shattered both feet and I got a tremendous amount of pain and regardless of the severity of the injury, pain is pain. I like to say that it decreases your focus and your productivity because you’re concentrating on pain. You aren’t able to do what we do. Opioids were great for that but they also sped you up, too. If it weren’t for opioids I don’t think I could’ve spent nine years trudging with the Olympic teams in Africa. Be that as it’s said, the hardest thing about being in pain or severe pain, and this is for anybody, is you feel like you’re walking through mud … but your brain keeps going faster so you need something that’s going to take away the pain so your body can keep up with your brain and not be exhausted all the time. That’s the feeling I had with opioids.

Cannabis, I had to really work hard to find the correct measure of THC to CBDs to get the almost the same effect and I went through a plethora of products that I was able to bring to my patients. The nice thing about it is I’m able to speak at first experience and say, “Yeah, been there, done that. This is what works for me,” and then make the adjustments and go from there but very similar to what you’re doing. I do the same thing.

TG Branfalt: There’s not a lot of research out there. Why do you think that cannabis works as an exit drug?

Dr. Allen Miller: The one thing I think that everybody needs to understand is the one thing that the brain wants to be is happy. That’s its job in life is to make you happy. It fights off pain. It fights off. It cleans you. It does all those things but at the end of the day it looks for things to make you happy. Opioids make you happy. The brain can even manufacture more pain to increase your drug intake. That’s how powerful it is. What’s nice about cannabis is it fills up those receptor sites and makes you slowly transition. In my case, I didn’t know what to expect so I really did this DIY. I really kind of invented it up as I go. As you said, there was no research. There was really nobody around to coach me and teach me how to do this so I kind of made it up as I went, failed and then succeeded, so on, so forth.

I found that it made my brain happy and when my brain was happy and I felt good, I just would forget to take the opioids and then sooner or later I thought, “Okay, I’m now down,” and I wasn’t having any repercussions for it. I wasn’t having any bad effects, withdrawals, anything like that. Again, I’d love to tell you this was planned, buddy, but it was really by accident. I kind of fumbled my way through it. I kind of like to say I just bumbled and fumbled my way through this thing and found what worked and it’s worked on the other patients. If you’d like me to describe that I’d love to tell you about it.

TG Branfalt: Oh yeah, absolutely. I’d love to hear the process that you go through with patients.

Dr. Allen Miller: What we do is we have some similar problems here is I own functional medicine clinics. My expertise goes back to functional medicine which, for your audience, is probably the best way. If you’re searching for a doctor look for a functional medicine doctor because they will use natural products over prescriptions but they’re going to use prescriptions, too. They’re really up to date with bioidentical hormones, all the things that you’ve never heard of. That experience, nutrition is a big part of it so I changed my nutrition and one of the things I found hard about edibles was one of my doctors stated it’s just junk food with pot in it. We had to really find organic pieces and thank god that’s getting better. What I’ve found is, like I said, if I took enough where the CBDs where I could almost mimic the opioid feeling of no pain or acceptable pain, something that I could deal with, then I could do my daily work. It only took me about a month to get off the opioids which is pretty amazing.

TG Branfalt: Wow.

Dr. Allen Miller: What I did was this, and this is completely contrary to what you usually hear. You’ll know the minute I say it, I just bombarded my system with as much CBDs as I possibly could and THC to find out where the balance was. I just shotgunned it. I kept a journal, found out which dosages worked and then continued from there. As I said, I was not concentrating on the opioids. I wasn’t concentrating on the pain, I was more concentrating on how to get off of it and do this, that I would literally forget to take the opioids and that’s how I got off of it. I’ve had absolutely no compunction to go back and I lead a fairly active lifestyle and I’m 61. Not bad.

TG Branfalt: No, that’s really incredible, a month. That’s almost unheard of.

Dr. Allen Miller: It really wasn’t difficult and I got to tell you, I’ll be very transparent with you. I had been on these things off and on for 30 years.

TG Branfalt: Wow.

Dr. Allen Miller: My first broken back, I got stabbed with Jerry Garcia way back [inaudible 00:09:16] broke my back in a concert so yeah. I was body guarding Jerry Garcia so I’ve had my share of, I do my own stunts is probably the best way to say it. About a month, I was off. You know what’s most important about people, and I’d like to say this and speak to those people in pain. It’s not so much the pain as the fear of the pain and the fear of being stranded and unable to move. That is the biggest fear that I felt as a chronic pain patient. I used to carry pain pills in my pocket. I was scared to death that I’d get to a point where I’d be incapacitated. That scared me more than anything else.

TG Branfalt: As somebody who does experience pain and whose back has locked up on him and left him bedridden for days, that is a very real fear. When you can’t go anywhere because you’re afraid, “Oh, I’m not going to have my medicine,” and it really does impact your life incredibly.

Dr. Allen Miller: Oh, it shaped your life, Tim. If you think back, look at the things it stopped you from doing because of the fear of being incapacitated somewhere. “Oh, I’ll do that, my back will lock up.” It now becomes a lifestyle issue.

TG Branfalt: Have you mixed in, this is probably kind of a stupid question but have you also adapted a workout regimen to go along with the cannabis therapies?

Dr. Allen Miller: Oh god, no. No, only because I should and I recommend my patients to do that and work out this. I still work with horses. I lead a pretty active life. I’ve been meaning to but I’ve been on the road for like the last four weeks. I just haven’t had a chance to do it. My biggest suggestion for patients is Pilates. I think Pilates is probably one of the, it got me walking again after one of my accidents. I think Pilates is probably one of the best stretching all around exercises you could ever do for your body, bar none.

TG Branfalt: I’m going to have to remember that.

Dr. Allen Miller: I’ll get you some great news. It’s the easiest. The story behind it’s fascinating and I won’t take up the time for that but for an overall individual to do anything in this world, I found that that’s the best that works.

TG Branfalt: I want to kind of go back to the opioid thing a little bit, ask you about the statistics. A recent University of California study published in the “Drug and Alcohol Dependence Journal” found a 23% reduction in opioid-related hospitalizations, related to abuse and dependence in states with legal cannabis and a 13% decrease in ER visits for opioid overdoses in those states. To what do you attribute this correlation?

Dr. Allen Miller: I work with this in the insurance department and there is a percentage of people that became addicted to opioids, and I can say that I’m one of them, out of necessity. I had a job to do and that came first and subsequently we sacrifice our bodies by taking this. That population base is, again, looking for quality of life. Remember at the end of the day, in my opinion, this is a quality of life issue. Do you want to be drugged out of your mind or possible die or do you want to be productive in some way, shape or form? I think cannabis allows that to happen. People are seeking out the alternatives because the patients nowadays are so much smarter than a lot of the doctors that I see. I recommend this for everybody. Know your body, know what it needs, know what it has to do because you’re the only steward of your body. You really shouldn’t put it in the hands of everybody else. You should put it in the hands of a doctor that’ll actually listen to you and come up with some sort of solution that works within everything that you want. That’s the best way to look at it.

To of your statistically taking more, in Utah where we’re just rolling out our program, we have six dying a day. 94% of all doctors give opioids on the first visit. We’re seeing addictions start within a week and here’s what’s funny about this, it’s ironically funny, is that opioids actually retard your healing process. They’re given post surgical for a lot of different things. Let’s just say it’s broken leg. That’s very common. They actually retard bone growth so what happens is is because the bone growth is retarded you’re not healing up, it sets off the brain so it sets up the scenario for chronic pain for which what do we do? We take more opioids. I gets into this long circle, this never ending circle that the person’s in pain, never heals up right and so on and so forth until the opioids are stopped. Then the body can pick up and start healing again.

TG Branfalt: Would you say that in these states where we’re seeing the statistics where we are seeing reductions, do you think that that’s a combination of doctors being more versed on cannabis as well as more informed patients?

Dr. Allen Miller: I think it’s more informed patients. The doctors in this, remember this is still technically illegal and nobody wants to lose their phony bologna jobs but off the record, they will say, “I recommend it. I don’t get in the way of it.” For instance, I know the team doctor for the Giants, New York Giants, and like I said, he’s a neurologist so CTE is a big issue. He doesn’t get in the way. He recommends it. He doesn’t dispense it. He doesn’t do any of that but he’s not going to stand in the way because look at the anecdotal evidence. The insurance company I work for, same thing. We have nothing to lose. Let’s try it. If it doesn’t work, it doesn’t work. It’s not going to cause any harm. I think more doctors are going in that direction but I think the population base and really thank God to the population base moving this forward, almost like crowdfunding, that doctors are picking it up and doctors are saying, “Okay, I’m not going to get in the way. Let’s just monitor it,” and I think the patient is more teaching the doctor than the doctor is teaching the patient, in my experience.

TG Branfalt: I mean, nobody wants to be a drug addict.

Dr. Allen Miller: No! They don’t. Again, go back to the simplest, and I said this earlier, but we need to look at this. The brain needs to be happy and we are being bombarded. We are constantly in an inflammation process due to the environment, food, water, outdoor stresses. We’re working much more hours than we did before. We’re just constantly being bombarded. There’s a great book, one of my favorite books is about being antifragile by an author by the name Taleb. These factors are making us more fragile. More fragile means we’re in more pain and we’re looking for a better life. That’s what human beings do. We look for a better life. Some people give up and some people just keep going, much like you do. You just keep going and then you found a solution that works. Hopefully that’s what prevails.

TG Branfalt: I want to talk to you a bit more about the role of cannabis as sports medicine but before we do that we got to take our first break. This is the Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Welcome to the Ganjapreneur.com podcast. I’m your host TG Branfalt here with Doctor Allen Miller, owner of Doctors Cannabis Consulting. Before the break, we touched a little bit about the role of cannabis in sports medicine. Previously on this podcast, I interviewed Jim McAlpine, who’s the founder of the 420 Games, about this very thing and he said that cannabis can be used during all phases of working out but especially useful for cool down periods. As somebody who has worked in sports medicine, what’s your take on using cannabis as an athlete and what might you recommend for athletes as well as Weekend Warrior?

Dr. Allen Miller: One, I know Jim really well and Jim’s completely right. Jim’s brilliant. What he said with the 420 Games I think is fantastic because it shows a look at the quality … the biggest problem we have in the cannabis industry tr not, from baby boomer standpoint, is the stigma. We’re all scared to death because we all had, at some point in our past, we had somebody that did 20 years for a roach and I remember those days. They’re very afraid. Back to this, I just had a great discussion in Colorado on this, on is it a performance enhancing drug? I want to bring it back to Shaun White who got a gold medal, theoretically stoned out of his mind and tested positive for marijuana. Okay. I’d like to throw that in the mix for a minute but look what it does and let’s break it down.

I wrote an article about this. Here’s what it does. When cannabis comes in it opens up the blood vessels. You’re able to tap into your glycogen stores and that’s your energy. That’s one. Two, it’s an antiinflammatory so it helps you repair yourself faster than you would normally. Think of cannabis as kind of like lube for bodies. It makes it work. It makes everything work in this wonderful organism we call a human body. It makes everything work right. It opens up the alveoli in the lungs so you’re getting more air in and the more air in, obviously the faster you can go. If it takes away the pain and helps you recover faster, then your focus would be better, correct? You don’t have to waste your time on am I hurt? Am I up to par? You feel great and obviously that gives you confidence and every sport is mental. Where the mind goes, the body follows.

Jim and I hold this same philosophy is that it should be used. I think it should be used from the time you’re born to combat every other environmental issue out there, frankly, but I think it should be used for cool down for sports, for any activity, for the industrial athlete out there, for the guy that sits in the cubicle for 10 or 12 hours a day staring at a computer. If you don’t think that’s stress, you got to try it. I think all industrial athletes and conventional athletes need this to have their body work right, to have a better quality of life. That’s what we’re all here for.

TG Branfalt: You’ve mentioned a couple of times about your projects in Utah dealing with worker’s compensation insurance. Can you really get into the details of this? Because I’m absolutely fascinated at this whole program, the whole prospect of it.

Dr. Allen Miller: I’d love to and I appreciate the opportunity to do so and I got to compliment my counterpart, an individual by the name of Dave Oakton of SNC Claim Systems in Nevada. He and I have been friends for, oh god, 25 years and I’ve been their forensic soft tissue specialist for that amount of time and we go hunting and fishing together and so on, so forth. We know each other and he knew of all the injuries I had and I recently had lunch with him. I guess it goes back two years and this is how this started. He goes, “Hey, you’re walking better. You look better. It looks like you’re feeling better. What’d you do?” I said, “You’re not going to believe this. I got off the opioids and I’m using medical marijuana and CBDs.”

He goes, “Really? We’d be very interested if you’d put a program together and we’d influx it into our chronic and opioid dependent patients, chronic pain for worker’s comp injuries.” I said, “Okay, great. I’ll just copy mine.” and that’s how it started two years ago and we put together the program and now we’re rolling out in five states, New Mexico, Nevada, California, Arizona, up into Utah and we’re going east. This is paid for by the insurance company for people with chronic pain, using very similar methods to what I did, very similar products to what I’ve discovered and found out and it’s working very, very well. We’re seeing an excellent rate. We haven’t really released it yet you’re actually getting the exclusive on this. This is really the first time I’m talking about it. What’s exciting here is the insurance company is going, “Wait a minute here, it doesn’t cause any harm. We got nothing to lose.”

TG Branfalt: We’re talking insurance companies, we’re talking corporations.

Dr. Allen Miller: You’re right.

TG Branfalt: For something that’s federally illegal, they’re not concerned about losing licensing or …

Dr. Allen Miller: Here’s the issue. Let’s look at New Mexico for a minute. This has happened very, very recently. New Mexico passed a law about an individual who sued. He was an injured worker that sued the insurance company for repayment for the amount of money that he spent to self medicate using marijuana and the court agreed. The insurance company had to reimburse him. That’s landmark. Think about it for a minute. That’s landmark. They paid for his medical marijuana. Now, yes, it’s illegal federally but it’s legal in the state of New Mexico.

The insurance company came to me and said, “We have two ways to go. We either ignore it and just let Allen do it or we got to come out and then let him take the fall,” which, fine, “or we figure out protocols and figure out the best way to handle this for everybody because this is the future.” They’re way ahead of the game here. I really got to commend the insurance company because, and you sad it really very, very well. It’s not just one insurance company. We got insurance companies behind that. We have corporations behind that. We got company presidents. We have attorneys and everybody agreed on this, which still seems to amaze me. Again, it was out of luck, completely by accident.

TG Branfalt: What is it going to take to get more? These are worker’s comp insurance companies that you’re talking about. What’s it going to take to get your other insurance companies, your consumer insurance companies onboard? What’s it going to take?

Dr. Allen Miller: Boy, is this a great question and this is my pet peeve and this is what I found in, let’s call it the marijuana industry and then we’ll call it the medical industry. Here’s the biggest issue. The marijuana industry loves to talk about anecdotal evidence. It saved this, it reduced this tumor, it had this issue. I don’t mean to be trite by saying what I’m about to say but from speaking from my insurance executive consulting side is we don’t care. That is third on the list of the hierarchy of things that we want. First is we don’t want to hurt anybody and cause more pain. Secondly we don’t want a liability program. Thirdly, we want to save money. If it gets you better, that’s fourth, fifth on the list. No offense.

Coming to the argument, when I was originally looking at this and the marijuana industry was saying, “Oh, it does this. It helps me there. It does this,” really that was not the argument for me. How much money am I going to save? How does this work? What are the downsides? We’ll take the downsides. I just had an argument with somebody this the other day that brought a product to me and said, “Oh, it works 100% of the time.” It was on a completely different subject. Works 100% of the time. No, it doesn’t. Just give me the facts and the truth of what I can do and then we can put it into a language for the insurance company and that’s what they want to know. Is it, one, is it going to cause anybody harm? No. Nice thing about the natural part of this is it won’t. You can’t OD on it. You know everybody knows they can’t OD on it. It will do everything positive a body that it can do, provided it’s given all the tools.

TG Branfalt: You had mentioned the cost aspect of it. Is it cheaper than-

Dr. Allen Miller: Oh god, yes. I’ll tell you what. You have no idea the we pay in the industry for things and I’ll give you a great example. Our cost for opioids, let’s just say 30 Oxycontin is on average $450 a month for 30 pills.

TG Branfalt: Okay.

Dr. Allen Miller: Oh yeah, we just get raped and pillaged on this. It costs half the amount but here’s where the biggest savings comes. You have to remember that these things out there, the cocktail that was given to people, whether it was an industrial injury or it was just an injury period, you got four things. You got an antiinflammatory, you got an opioid, you had something to make you go poo-poo and then you got something that settled your stomach. All that’s great. We already know opioids stall the healing process. The antiinflammatories tore up the gut along with all the other things which caused leaky gut which made an inability for the person to even absorb the nutritional supplements that they were given in their food. Subsequently they had this chronic inflammation that went on forever. They couldn’t possible heal because it’s being inhibited to heal by the very drugs we’re giving them to make them feel better. Little ironic, huh?

TG Branfalt: Yeah and the things that you just described, you don’t need five pills with cannabis. You just need cannabis.

Dr. Allen Miller: Right! We were made to be, you know, I have an older rancher philosophy. Excuse me, I’ll slip on the cowboy boots because I am one. It’s there because it’s supposed to be there. Our body is made to take it. We have receptors for it. Whenever we do take it from a scientific standpoint, it makes the body work better. It’s one of those integral things in this massive chemicals like vitamin C and zinc and all the things that make us up, makes it work better. How? Not quite sure yet but it does and it’s natural. In its natural state, in fact 5,000 years ago, in recent times we have found a prehistoric man carrying it in its bags. It is the most complete food on the planet. You could actually eat this and live without anything else. Seriously. It has every nutritional thing that you could ever possibly eat. Prehistoric man, it’s not like he could go to Arby’s and get a brontosaurus burger if there was no food, okay? It’s not going to work.

Looking back and taking the simplest things, oh, that was a box lunch. He could live on that and he was able to hunt and gather and do all the things that they did. Our body is made to take it, just like vitamin C, zinc, everything else. Our body reacts positively to it. I guess my philosophy is why don’t we just get out of the way and let the natural stuff work and see what happens from there?

TG Branfalt: I want to talk to you a bit more about some of the barriers that exist in the traditional medical system, insurance companies, doctors, that whole thing but before we do that we got to take our last break. This is the 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 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 directory is intended to be a useful andwell-maintainedd 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 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, welcome back to the Ganjapreneur.com podcast. I’m your host TG Branfalt here with Doctor Allen Miller, owner of Doctors Cannabis Consulting. Before the break we were talking a bit about kind of the more, your work in the insurance companies to cover treatments throughout the US, in legal states I should say. What I want to ask you now is what do you think is the biggest barrier for skeptical doctors? Is it federal illegality or the lack of research? The same goes for insurers. What is that barrier?

Dr. Allen Miller: The barrier is this, is that the medical profession likes ease of use, likes consistency. Good or back, it likes consistency. We know if you take an opioid you get one every four hours. Everyone produces what’s called CP450. It’s an enzyme in the liver and what CP450 does is it breaks down and metabolizes any and all drugs that come into the body, whether it’s natural, unnatural, whatever. The body knows. Within that CP450 you have 100 different enzymes. Those enzymes, for me personally, it’s just like a fingerprint which means that yours are completely different than mine. You metabolize things completely different as does everybody on the planet. There’s no two that are similar or alike. That’s the biggest problems in this is that it reacts different to everybody else. Again, I go back to it’s a natural product so it fills the need and whatever the body needs. It gives the body really more autonomy, doesn’t it? It reacts more on the innate possibilities of the body to run itself and why are we getting in the way of that?

The medical profession loves consistency and they’re very focused and I’ll cite a great one. GW Pharmaceuticals just made a CBD synthetic that works on epilepsy. Great. It’s very focused to that symptom. Problem. Six kids died.

TG Branfalt: Wow.

Dr. Allen Miller: I know Tracy Rhine real well of CannaKids. She gave it to her kid. It reduced the tumors in the kid, her daughter Sophie and I can take those till the cows come home. Nobody died. The medical profession, it doesn’t fit the medical profession. That’s the problem with this. You’re trying to take a very round product and put it into a very square hole with a lot of regimentation. They don’t understand it. They want research because what they’re asking for is, “God, tell me how to use this. Tell me how I use it on this guy as opposed to this woman as opposed to this child.”

TG Branfalt: Your views obviously differ from traditional physicians. Do you think that as a practitioner of a more alternative medicine, that you are more open to using cannabis therapies?

Dr. Allen Miller: Oh, I’m open to anything that works. There’s equivalent to marijuana in Africa. I was over there for nine years. These plants are all over the world. This is not a new concept. Marijuana’s been around for, we can trace back almost 5,000, 6,000 years. The Arabs used to trade it and take it with them way back when. It’s a staple. It was just a staple like green beans and salad and all those other things. It was just part of the diet and we worked well with it. We got away from that about the turn of the century after the Civil War and when industrialization in the United States came in and we became pseudo sophisticated. As we became more sophisticated and relied on our doctors and science started to take off, I think the human population kind of let go of their responsibility to the body and gave it to the doctor, said, “Okay, tell me what I need,” because we’ve got all this fancy new tech coming out we call pharmaceuticals.

Now it’s interesting that we’re going back to the old ways and that’s what works best. We got so sophisticated we screwed ourselves up, in my opinion. In my opinion, it caused us to be fragile and now we’re going back to that and is this the silver bullet? I don’t think anything is but it’s obviously needed in the body because we have receptors for it and we know that it works. Somebody, whatever your religious persuasion is, something or somebody decided that we needed to have this. Who is it to anybody to take it away from us? Is my personal opinion, if our body is made to use it in a positive way. How could that possibly be bad?

TG Branfalt: Do you think that we will ever see cannabis as a mainstream therapy, as something that you go to your doctor, you don’t get a recommendation but you get-

Dr. Allen Miller: I hope not. I hope not.

TG Branfalt: You hope not? That’s interesting.

Dr. Allen Miller: No, I hope not and this is why. It has nothing to do with wanting to have the product. That’s immaterial. Let’s take that off the table for a minute because you know what my feelings are. The medical profession is based on synthetics. The pharmaceutical company only makes synthetics so it doesn’t sell natural products. It’s not this works. Again, round peg, square hole. You’re taking a natural product that now they’re going to have to synthesize, they’re going to have to add things to for symptom based focused attack on a problem. Therein lies the problem. The minute that you change a natural plant, natural anything and synthesize it, the body looks upon it as a toxin. It’s not the drug that’s the problem within pharmaceuticals. It’s the fillers that’ll kill you. It’s completely two different philosophies.

Do I think it’s become mainstream? Yeah and I don’t know if the MAs going to change on that. They’ve been around for a while but I think from a patient population base they’re going, “Look at the mothers that are treating their children.” I have to commend them. Look at the strength that they went through to take what was then an illegal drug and give it to their child, risking their literally safety on this. They could’ve gone to jail, a lot of different things. From a population base I think, oh yes, do I think it’s going to be mainstream? Yes, I do. We’re paying for it at the insurance company level so it is mainstream. Granted, we’re in the baby steps but there’s going to have to be a change somewhere in this medical market because it’s completely different and doesn’t fit their philosophy, you follow?

TG Branfalt: Absolutely.

Dr. Allen Miller: Does that explain it.

TG Branfalt: Yeah. What advice would you have for listeners who may want to broach the subject with an ailing family member, aunt, uncle, mother, father who, like you, grew up in that era of this is the evil weed, that sort of thing? What advice would you have for those people looking to help their family members with cannabis?

Dr. Allen Miller: You know, it just amazes me. I’m in the patient model and this just amazes me. I have cancer patients that won’t even consider it and they’re stage four, because of the stigma. They don’t want to look like, they call it, the doper. I find that fascinating. You’re not going to get stoned. I make a joke about my mother and I went through this with my mother with Alzheimer’s. I said, “You know, mom, you’re not going to be sitting on the freeway with a sign, ‘Will work for drugs.’ That’s not going to happen.” It’s really getting into it and having a doctor that says, “Yeah, it’s okay. Let’s try it in baby steps. Let’s see if you feel better. Nothing’s going to happen,” but that PR program that the government put on was extremely, extremely effective in scaring the living hell out of baby boomers.

The younger generation, the millennials are now growing up with their grandparents taking it, it’s normal so we’re not going to see those issues. This’ll, for lack of a better term, die off as we but the biggest thing is really it’s safe. Get them to somebody that’s experienced it. I think this is what I bring to the table and the people that I work with bring to the table is, yeah, we understand. You’re fine. I have a pretty good resume. You’re not going to go into the depths of despair and end upon, our worst area in town is called Skid Row. You’re not going to be on the streets. This is going to help you. This is no different than vitamin C or something other else that makes the body help and heal itself. It’s a tough conversation.

TG Branfalt: Would you mind telling me how you approached this with your own mother?

Dr. Allen Miller: Yeah. My mom has Alzheimer’s, dementia. She has COPD. She smoked for years so you can understand the damage and I went to my mom and I said, “This is what I’m doing and this is what I want you to take.” My mother and my dad are divorced so I think part of my mom’s drive to use this was to get back at my father because I think that was part of it. The other part was and I said, ‘Mom, this is going to work. It’s not going to hurt you, not going to make you … You’re going to feel better. Let’s see if it works.”

She tried it, she did. She became more clear of the body pain and what was most interesting that I saw right away is I said she has COPD which means that she had trouble pumping the air and blood through her lungs and her heart. It opened up the lungs and helped her breathe better and she’s on oxygen. It’s amazing to watch how fast her capillaries filled in her fingers. She has 99% capillary fill in her fingers. That’s amazing for somebody that’s 83 years old with COPD and that’s what this product did. She’s breathing better. She’s getting more tissues. Her brain is healing. The swelling is going down. We’re chasing symptoms and she’s feeling better and she’s able to be more functional.

She recently fell and had some compression fractures low back and killed the pain. I had her walking right away with it. It was really, “Yeah, I trust you, Allen, but … ” I’m still her son. I’m not anything other than her son, yeah the son with the doctor thing but I’m still her son. It was a tough conversation and it took a couple weeks but finally, and I was the example that I used. I said, “Mom, you knew how bad off I was and this is how I, I’m not on the streets so it worked,” and let’s just give it a shot. I can still speak I think articulately about an issue. By example, it made it easier but it was a tough call, tough.

TG Branfalt: That’s really incredible, Doctor Miller. We’re about running out of time but I really, really want to thank you for the opportunity to speak with you at length about the projects that you’re working on and the experience that you’ve had. I had had said before when we were in break, just how enlightening this was for me and I just want to reiterate that how fascinating this conversation has been and how, again, how illuminating your knowledge base is for me. I appreciate it so much.

Dr. Allen Miller: Oh, my pleasure and thank you so very much. I love talking about this but don’t underestimate where you play in this big information rush. Things like this, the fact that you’re going out and meeting people and getting people to talk about it like Jim and I and some of the other esteemed guests that you have, hopefully by example a lot of people will, and this was a great statement. I’ll segue with this. I was sitting on a panel with Brandon Lloyd, an NFL player, and he made the greatest statement of all time. He said, “I don’t know yet. I’m doing all the research. I don’t know if it’s right for me. I’m doing the research.” That’s all I want. Take a look at the research, talk to people like us, listen to people like you and make your decision. We’re all out there to help you and the part you play is instrumental. You are the conduit. You’re the core that bring everything together to change this and it is working. Look at the statistics you just cited. It’s working. It’s not as fast as we’d like but it’s working.

TG Branfalt: I really do appreciate that and before we go, could you tell people where they can find out more about you and what you’re doing?

Dr. Allen Miller: Sure. Right now, believe it or not, this happened so fast we’re putting up our website now. In fact, like I said, this is an exclusive to you. We’re just now coming out but my email address is, and please, welcome to email me on this but my email address is DR like in doctor, Allen, A-L-L-E-N M-I-L-L-E-R at Gmail.com and I’m on LinkedIn as Allen S Miller. Please, friend me, come on and I’d be more than happy. On Twitter on DRASMiller and I answer all the questions that you may have. I think it’s whatever I can do to help.

TG Branfalt: Brilliant. Thank you again, so much, for taking the opportunity to speak with us and your kind words. I appreciate it and we appreciate it at Ganjapreneur.

Dr. Allen Miller: Hey, Tim, you’re doing a great job and your questions are great and have allowed me to get the message out and thank you. Sincerely appreciate it. Hey, man. You help people. What better thing is there than that?

TG Branfalt: I really do do my best and I couldn’t do it without the great team that I have behind me so shout out to you guys, too.

Dr. Allen Miller: Thank you. Thank you. Nice meeting you. Any time you need me, give me a yell.

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

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

Nevada Rec. Sales Reach $3M in Four Days

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Cannabis sales in Nevada are already booming, as retail sales have exceeded $3 million during the first four days, according to a Las Vegas Sun report. That equates to nearly $500,000 in state tax revenue putting the state on track to achieve $30 million over the next six months of sales, the Nevada Dispensary Association estimates.

The tax rate for recreational cannabis sales in Nevada is 33 percent to 38 percent, depending on the municipality.

“We had a higher demand than everybody initially thought,” said dispensary association director Riana Durrett in the report. “It shows this market really exists.”

Nevada was one of four states to legalize adult-use cannabis during last November’s general election, and thanks to Early Start provisions by the Tax Department, the state is the first of the four to roll out the new regime.

California’s Bureau of Medical Marijuana Regulation Chief Lori Ajax, whose agency is responsible for devising regulations for the industry, said that she fully expects to meet the Jan. 1, 2018 deadline set forth by Proposition 64.

Lawmakers in Maine passed legislation in January to delay the rollout of the voter-approved program by three months, from January 2018 to April 2018. Despite the legislature-approved delay, other lawmakers have introduced legislation to allow early sales at currently licensed dispensaries. The personal possession and home-grow provisions included in the recreational law, however, were unaffected by the legislative action and took effect on Jan. 30.

Massachusetts lawmakers also passed legislation delaying the implementation of the voter-backed regime from January to July 2018, and have been crafting changes to the law ever since. As of June, at least 81 Massachusetts communities have considered or enacted bans on the industry, including moratoriums and zoning regulations to prevent cannabis business operations. However, portions of the law allowing adult cannabis possession and home-grows took effect Dec. 15.

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A DEA officer walking down a sidewalk next to where a raid has occurred.

DEA Doubles Down: CBD Illegal

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The Cannabist has published a series of statements by the Drug Enforcement Agency that further muddy the waters of the legality of CBD products, claiming that the products are “being illegally produced and marketed” in violation of the federal Controlled Substances, and Food, Drug, and Cosmetic Acts.

“However, it is generally believed that the material is an extract of a variety of the marijuana plant that has a very high ratio of cannabidiol (CBD) to tetrahydrocannabinols (THC). Because this extract is a derivative of marijuana, it falls within the definition of marijuana under federal law,” the statement reads. “Accordingly, it is a Schedule I controlled substance under the CSA.”

The DEA contends that while the 2014 Federal Farm bill authorizes colleges, universities, and state Departments of Agriculture to cultivate industrial hemp, it “does not permit such entities, or anyone else, to produce non-FDA-approved drug products made from cannabis.”

“Thus, the CSA and FDCA restrictions mentioned above remain in effect with respect to the production of ‘Charlotte’s Web’/CBD oil for human consumption,” the statement says.

According to the statement, any individual or company producing or distributing CBD-based products must obtain approval from the DEA to do so and all CBD products must be obtained from an entity that holds a valid DEA authorization.

The statement takes aim at Charlotte’s Web specifically, claiming that because it “is reportedly being administered to pediatric research subjects, the potential dangers are even more pronounced.”

Last year, the DEA published a rule change creating a new Administration Controlled Substances Code Number for cannabis extracts. On its face, the move was not an enforcement action, and at that time the DEA reaffirmed its position that any substance derived from a cannabis plant that contains more than 0.3 percent THC is illegal; however in 2001, the DEA released a statement explicitly permitting the use of hemp-derived products that do not cause THC to enter the body. The FDA considers industrial hemp-sourced CBD to be a dietary supplement.

The DEA is currently embroiled in a lawsuit with the Hemp Industries Association, Centuria Natural Foods, and R.M.H. Holdings over the rule change. The plaintiffs contend that the rule change conflicts with the Farm Bill and actually moves hemp-derived CBD products into the definition of “marijuana extracts.”

The recent statements to the Cannabist appear to confirm the accusations in the lawsuit, which the DEA has denied in the court proceedings.

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Maryland Approves First MMJ Dispensary

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Maryland’s first medical cannabis dispensary has been approved by the state Medical Cannabis Commission to open immediately and, although products will not be available for months, the owner of the Wellness Institute of Maryland said the organization will begin seeing patients today and taking pre-orders, the Baltimore Sun reports.

“We are fully equipped to deliver medicine as soon as we have it,” said Wellness Institute owner Michael Kline in the report, adding that the dispensary will operate more like a doctor’s office than a retail store.

Patient consults will take about an hour and they will be asked to keep an electronic diary in order to track their cannabis use and progress. Kline indicated the company has no plans to advertise to the public but do plan to offer home delivery services.

“Many, if not most people, won’t be interested in our model,” Kline said. “They would like to go in like it’s a strip mall or a 7-Eleven.”

Maryland’s first medical cannabis products are expected to be available sometime after Labor Day, but Kline is confident that in the meantime he can get patients enrolled, answer any questions, and complete “all the paperwork that’s doable.”

To date, 9,000 Maryland residents have already signed up to access medical cannabis once available but fewer than 300 doctors have registered to recommend use. The state regime allows reciprocity with other state programs which means producers and dispensaries need to prepare beyond the reported numbers of enrolled patients.

Under regulations passed by the commission last month, dentists, midwives, nurse practitioners, and podiatrists are also permitted to recommend medical cannabis but fewer than 20 of those providers have signed up with the state.

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UN/WHO Statement Appears to Call for Drug Law Reforms

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In a statement on ending discrimination in health care settings, the United Nations and World Health Organization appear to call for reviewing and repealing laws for “drug use or possession of drugs for personal use.”

The language is included in a section outlining a position to review and repeal “punitive laws that have been proven to have negative health outcomes and that counter established public health evidence.”

“These include laws that criminalize or otherwise prohibit gender expression, same sex conduct, adultery and other sexual behaviors between consenting adults; adult consensual sex work; drug use or possession of drugs for personal use; sexual and reproductive health care services, including information; and overly broad criminalization of HIV non-disclosure, exposure or transmission,” the statement says.

The proclamation comes as several U.N. states, such as Germany, Mexico, Greece, and Israel (among others) have moved to federally legalize medical cannabis, and other U.N. nations, such as Canada and Uruguay, begin rolling out adult-use regimes.

In 2013, the U.N. issued a statement on cannabis legalization in Colorado and Washington, saying that the programs violate the U.N. Single Convention on Narcotics Drugs of 1961. However, three years later, the U.N. Expert Committee on Drug Dependence moved for a review on possibly rescheduling cannabis under international law. That review is expected 18 months from the Nov. 30, 2016 meeting.

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View of Anchorage, Alaska during the annual winter nighttime.

Alaska Nets More than $1M in Cannabis Sales Taxes

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Since the launch of retail cannabis sales in Alaska, the state has collected more than $1.2 million in tax revenue derived from the industry, leading one tax department official to call the preliminary figures for June “ridiculously fantastic.” The department hauled in $272,600 from cannabis sales in May.

“…And rough numbers indicate tax collections [for June] could exceed $500,000!” Kelley Mazzei said in an email to the Juneau Empire.

The state Department of Revenue had predicted it would collect $2 million in cannabis taxes in the fiscal year that ended July 1. It had initially expected $12 million in April 2016, but lowered its estimates to $5 million in December 2016, and to $2 million in April 2017. Sales were stalled by a slower-than-expected regulatory process, lack of available products, and the fact that out-of-state investment is not permitted under the state’s cannabis program.

However, Mazzei indicated that the state’s outdoor growers, which are seasonal but much larger than their indoor counterparts, have not yet harvested their first crops. Once those crops are harvested and available, the tax revenues could climb even higher, she said.

In May, Alaska’s retail dispensaries collectively purchased 289 pounds of cannabis from the state’s cultivators, a new high for commercial sales.

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A hemp plant growing in the wild.

West Virginia Hemp Cultivation Now Open to Private Citizens

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Private citizens in West Virginia can now apply to the state Agriculture commissioner for a license to grow industrial hemp for commercial purposes, according to a Charleston Gazette-Mail report. Previously, licenses were only available to members of research institutions, such as colleges and universities.

The amended law was signed by Gov. Jim Justice in April. The measure keeps the definition of hemp plants as containing 0.3 percent THC, as defined under the 2014 Federal Farm Bill.

In West Virginia, products containing CBD are perfectly legal for sale but currently none of the products offered in the state are cultivated or produced in the state.

David Hawkins, owner of Mother Earth Foods, said there are some issues with the emerging CBD industry and that the regulations need some time to catch up with the market. He only carries three companies’ products because he’s “picky about the quality” and careful about the standardization of purity and dosages. Hawkins said he usually requires the products he carries to have an independent analysis.

“There are legalities in labeling, which some are better at than others, with the [Food and Drug Administration] and [Federal Trade Commission],” he said in the report. “There’s also the issue of consistency in the product when you’re looking at it from a medical perspective.”

Morgan Leach, president of the West Virginia Hemp Industries Association, said that the CBD industry could be “a new business” for the state in an economy that “is in trouble.”

“…We have this huge budget deficit, we have the decline of coal, all these severance taxes are down, you have counties that are struggling, they’ve lost 30 percent of their job base or more in a year, it’s really hard to rebound from that,” he said in the report. “If we can bring something in like hemp to help produce commodity items like food and these supplements and different things we use everyday, that can really help us climb out of the hole here.”

However, Leach explained that in order for that to happen the cost of planting hemp – as much as $200 per acre – need to be reduced.

“Could it be a multi-million dollar per year business?” Leach said. “Yes, it has the potential to do so.”

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Recently cut cannabis plants hanging upside-down on a line to cure.

Israel Planning Overhaul of MMJ Distribution System to Increase Access

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Israel’s Health Ministry will introduce a new system of medical cannabis distribution in August and invest NIS 2 million (USD $567,928) into the system in order to hire clerks to speed up the process and reduce waiting times, according to a Jerusalem Post report. The reforms will also see about 100 physicians able to provide patients access to medical cannabis without the approval from the ministry.

MK Tamar Zandberg, chairman of the Knesset Committee on Drug Abuse, called the news “encouraging” but “not enough.”

“In recent months, the situation in the field of medical cannabis seems to be becoming more complex, with pain clinics preventing treatment, faxes that disappear, long waits on the telephone, and finally the middlemen who enter the field and benefit from the bureaucratic difficulties in the process,” Zandberg said in the report. “Under the guise of ignorance and conservatism, the medical establishment treats patients as drug addicts and doctors as drug dealers, while narcotic drugs that are harmful and addictive are more freely distributed and in increasing doses.”

Zandberg pointed out that under Israel’s medical cannabis system, oncologists are licensed to approve patients but other specialists, such as psychiatrists and orthopedists, are regarded by the ministry as “second-rate” and are required to cut through a lot of red tape to prescribe medical cannabis to patients.

Health Ministry Associate Director-General Itamar Grotto disagreed with Zandberg’s assessment and challenged her to show him another country that “is doing better than Israel in the field of medical cannabis,” although he conceded that the “situation is not perfect.”

“There is a load of patients and the number of people treating them is inadequate. There is an administrative bottleneck in the office that must give approval,” he said in the report. “We have to add more typists, telephone clerks, and we will try to double the number.”

There are currently 28,000 medical cannabis patients in Israel.

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A cannabis worker holds up a handful of commercial-grade, trimmed cannabis nugs.

Study Finds Cannabis Safe and Effective Treatment for Tourette Syndrome

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A study published in The Journal of Neuropsychiatry and Clinical Neurosciences reports that cannabis therapies are both effective and well-tolerated for Tourette syndrome patients. The University of Toronto researchers found that in 18 of the 19 study participants who had used cannabis regularly for at least two years, their symptoms were “much improved” and tic scores decreased by 60 percent.

Elia Abi-Jaoude, one of the study’s corresponding authors, said that the topic was brought to the researchers’ attention by the patients.

“Several of my patients with Tourette syndrome had noticed that if they used some marijuana, their tics decreased significantly,” he said in a PsyPost report, noting that some side effects included sleepiness, anxiety, and decreased concentration. “We began prescribing medical cannabis at our clinic and were struck by the improvements we saw in tics and related symptoms. We eventually decided that we should investigate this topic further.”

Abi-Jaoude cautioned that the study did have some caveats – it was a relatively small study with no placebo control, and there were variabilities in the cannabis strains used by the patients which prevented the researchers from making “reliable conclusions about which cannabis strains or ingredients are most helpful for tics and related symptoms.”

“This was a retrospective study, so there may be a ‘recall bias’ when people try to compare how they are doing now to how they were doing before starting cannabis,” he said.

Abi-Jaoude said that he plans on carrying out a controlled, double-blind study with different strains, but he believes that cannabis “is a promising treatment for tics and related symptoms.”

“We hope that with further research we can get a clearer picture of the potential benefits and risks with using cannabis for tics and related symptoms,” he said.

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A briefcase stuffed with dollar bills sits open on a glass desk.

Appeals Court Decision Breathes New Life Into Cannabis Credit Union Plan

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A decision last week by the 10th U.S. Circuit Court of Appeals may allow plans for the world’s first banking institution dedicated to legal cannabis to move forward, according to a Cannabist report.

The Fourth Corner Credit Union was first announced in 2014 as a solution to the cannabis industry’s status quo as an all-cash industry. The plan was well-received by cannabis operators and was even greenlit by Colorado officials, though the credit union’s application for a master account with the Federal Reserve was denied by the bank’s Kansas City branch in 2015. Though Fourth Corner appealed that decision, a district court ruling in January 2016 upheld the application’s denial and dismissed the case with prejudice, meaning the credit union itself could not push the issue further.

However, a three-judge panel for the 10th U.S. Circuit Court of Appeals vacated that decision last week, granting the hopeful credit union renewed hope and the ability to resubmit its application for a master account with the Federal Reserve.

Back in 2016, district court judges had dismissed Fourth Corner’s original application due to an assumption that the credit union would be violating federal drug laws by providing banking services to cannabis companies.

“This ruling was erroneous,” wrote U.S. Circuit Judge Robert E. Bacharach in one of three judge opinions on the issue released last week. “The district court should have presumed that Fourth Corner would follow the court’s determination that servicing marijuana-related businesses is illegal. And in the amended complaint, Fourth Corner essentially promised to obey the law that would be set out in the eventual declaratory judgment.”

However, if Fourth Corner resubmits its application — and CEO Deirdra O’Gorman has indicated the credit union intends to do just that — it may need to re-think its desired role in the cannabis industry.

With cannabis still considered an illegal substance under federal law, it is highly unlikely the Federal Reserve would permit the institution to so blatantly serve cannabis companies. If approved, the Fourth Corner Credit Union would instead be allowed to serve cannabis supporters and/or non-profit organizations, but not the “touch-the-plant” industry itself — at least not until serious reforms are made on the federal level.

Nonetheless, “I think that this ruling is an example of the normalization of [cannabis] — that this is about banking, not about the federal-state conflict about marijuana,”  Tom Downey, a Denver-based attorney, told the Cannabist.

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Montana Health Dept. Establishes Temporary Rules for MMJ Industry

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Montana’s Department of Public Health and Human Services has laid out “temporary emergency rules” for the state’s medical cannabis program as lawmakers work out the program’s permanent details, the Billings Gazette reports.

The temporary rules took effect last Friday and allow the DPHHS to issue licenses for testing lab facilities on a temporary, case-by-case basis, as well as issue temporary licenses for “chemical manufacturers” — companies who can extract cannabinoids and create cannabis concentrates.

The temporary rules will expire after 120 days, though the deadline to have the program fully up and running is April 30, 2018.

Montana Cannabis Industry Association spokesperson Kate Cholewa said that — though this marks a transition period for the industry — “This is not that dramatic of a moment. It’s maybe a benchmark, but there are so many more provisions yet to come online.”

Meanwhile, lawmakers have amended possession limits for program participants following a complaint by the Montana Patients Rights Network; these limits depend on whether or not a patient has a registered provider or if they are cultivating their own medicine. Under the clarification, registered Montana cardholders who have named an official provider are allowed to possess up to one ounce of cannabis. A registered cardholder who has not named a provider, however, may also possess up to four mature cannabis plants and four seedlings.

The state currently imposes a four percent sales tax on medical cannabis products, though this tax will be lowered to two percent starting July 1, 2018.

Montana voters first embraced MMJ reforms in 2004. The program experienced explosive popularity between 2009 and 2011, however, which prompted efforts from lawmakers to repeal and undo the program. Officials finally succeeded in gutting the industry last year, but another successful voter initiative last November overruled lawmakers and renewed the program — this time with more detailed product tracking, a self-sustaining tax system, and a more extensive licensing system.

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The flag of Hawaii flying above the bay in Honolulu, Hawaii.

Insurance Provider Drops Hawaii Medical Cannabis Companies

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The launch of Hawaii’s medical cannabis program faces more delays after the Hawaii Employers’ Mutual Insurance Company (HEMIC) announced last week it will stop providing workers compensation insurance to seven of the state’s eight licensed cannabis companies.

According to a KHON2 report, the development came without warning and poses a problem for the companies in question because state law requires cannabis companies to provide workers comp insurance to their employees.

The companies were given 30-day cancellation notices by their provider.

“HEMIC has received two outside legal opinions regarding its role in providing workers’ compensation coverage to Hawaii’s medical marijuana dispensaries. These legal opinions clearly acknowledge that HEMIC and its board of directors have potential exposure for criminal liability,” Marty Welch, HEMIC’s CEO, said in a statement.

“After receiving these legal opinions, the HEMIC board has voted unanimously to discontinue these policies and fully refund all premium payments to any dispensaries currently insured by us,” Welch said.

Hawaii’s Department of Health is investigating what this may mean for the immediate future of the program. In a statement issued by the department, officials admitted, “the next 30 days may be challenging if the affected dispensaries cannot obtain workers compensation coverage from an alternate insurance company.”

Hawaii’s medical cannabis dispensaries have faced a series of delays since the licensees were first announced last year.

Storefronts have yet to open — despite several of the state’s operators having already grown and harvested their first crop — because state officials have not yet issued testing lab licenses, and state law requires that all cannabis sold to patients must first undergo product safety tests.

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Cannabis enthusiasts line up outside of the NuLeaf dispensary in Las Vegas, Nevada on the night of first adult-use sales.

Nevada’s Adult-Use Cannabis Market Opens Amid Fanfare

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The opening of Nevada’s recreational cannabis market was marked by green fireworks and long dispensary lines, according to a CNN report, and the bill’s sponsor state Sen. Tick Segerblom was one of the first people to make a retail cannabis purchase.

Although dispensaries are prohibited from the famed Las Vegas strip – due to federal cannabis and state casino laws – that didn’t stop at least one couple from experiencing a Vegas-style wedding at a cannabis greenhouse. The bride, Anna, carried a bouquet of cannabis leaves, while her new husband, Mark Balfe-Taylor, used a bud as a corsage.

The first customer for adult-use cannabis at the NuLeaf dispensary in Las Vegas, Nevada. Photo Credit: NuLeaf, Inc.

Cannabis consumption is also prohibited in bars, parks, restaurants, at concerts, and on federal property. Public smoking violations carry a $600 fine.

The industry is expected to generate $60 million in tax revenue for the state over the next two years.

“Every time you buy something here, 33-cents is going to taxes,” Segerblom said in the report. “This is the most heavily taxed and regulated industry in the whole state.”

Nathaniel White, a first-time legal cannabis buyer who had experienced legal troubles over the plant, said he was “shocked” when he received a receipt for his cannabis purchase.

“Just the receipt is amazing,” he said.

 

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The flag of Greece being blown by wind from the Mediterranean Sea.

Greece Legalizes MMJ; Licensing Framework to Follow

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Medical cannabis is now legal in Greece following a ministerial decision by the Ministers of Health and Justice, according to a Neos Kosmos report. The decision moves cannabis from its Table A classification, where it was listed along with heroin, to Table B, which includes cocaine, opium, and methadone.

“From now on, the country is turning its page, as Greece is now included in countries where the delivery of medical cannabis to patients in need is legal,” said Prime Minister Alexis Tsipras in the report.

The announcement did not include a licensing framework, but licensing regulations are expected for cultivation and distribution. Tsipras indicated that once the framework is completed the nation will also likely allow importation of medical cannabis products.

The decision comes less than a year after the Ministry of Health announced that a panel of experts would study the prospect of legalizing medical cannabis use federally. Greece joins Canada, Mexico, Argentina, Australia, New Zealand, Austria, Chile, Colombia, Croatia, Czech Republic, Finland, Germany, Israel, Italy, Jamaica, Macedonia, the Netherlands, Portugal, Romania, Spain, and Uruguay as nations with some national access to medical cannabis.

According to a recent Marijuana Majority poll conducted by Survey USA, 76 percent of Americans support state-legal medical cannabis programs; however, there is little support from federal lawmakers to implement national reforms.

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Delaware Lawmakers Create Task Force to Study Adult-Use Legislation

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After failing to gain enough support to pass a recreational cannabis measure, Delaware’s legislature has created a “Cannabis Task Force” that will study the legalization issue and recommend a course of action by January, according to a report from NewsWorks.

The legalization measure was sponsored by Rep. Helene Keeley, who argued that taxing and regulating cannabis sales would help the state bridge its $386 million budget gap as her colleagues debate ways to cut spending during a special post-June 30th session. Keeley, a Democrat, said she was just a few votes short in the bid to legalize cannabis for adult use this session and the task force is a compromise.

The task force aims to provide insight into how local authorities and control agencies would deal with any issues related to legalization, including impaired driving, taxation, and substance abuse prevention. Keeley’s bill would model the industry similarly to existing alcohol laws in the state.

According to the report, Democratic Gov. John Carney doesn’t fully back the plan, but previously held a series of town hall meeting for citizens to express their opinions on the issue. Kelley’s bill would allow adults 21-and-old and older to purchase cannabis products and legally possess up to 1 ounce of flower and 5 grams of concentrates.

Keeley has estimated that a legal cannabis market could generate $22 million in revenue during its first year in operation.

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A businessperson signs their signature onto a contractual agreement,

$9.1M DoD Contract Awarded to NY Firm Utilizing Hemp Materials

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An eco-friendly building material company in New York that utilizes hemp in its products has been awarded a $9.1 million contract from the U.S. Department of Defense to create new living building materials, according to a report from NPR-affiliate WAMC. Ecovative Design has been using a variety of products in its building supplies since it was founded 10 years ago, including agricultural waste, fungus, and, more recently, hemp.

The raw material “looks like mulch,” said the company’s Products Development Specialist Kyle Bucklin in the report, “but it’s actually corn and hemp mixed together.” The product also contains mycelium – think the roots of a mushroom – which is activated with water and a little flour to hold the materials together in any shape.

Gavin McIntyre, Ecovative chief scientist, said the company is planning to scale up the production of the building material that would be able to self-repair.

“For instance, if there were an issue, say, a leak in your roof. This material could react to that leak and self-repair as such that you no longer have to worry about that hole in your roof because the material has responded to that naturally,” he said in the report.

The Department of Defense’s interest in the product is likely due to the self-repair features and the compound’s ability to be grown on site, which would reduce the need to import building materials into conflict zones.

 

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A commercial cannabis grow in Washington state.

Washington Changes Cannabis Advertising Rules, Calls for Home Grow Report

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Last week, reforms to Washington’s adult-use cannabis program took effect, allowing businesses to apply for trademark protections, making changes to industry advertising rules, and requiring the Liquor and Cannabis Board to study the feasibility of home-grows, which remains illegal in the state.

The measure increases the number of retail locations a licensee can run from three to five and allows permits to be revoked if the approved entity doesn’t open a location within two years. That revocation, however, would not be permitted if the business owner is “incapable of opening a fully operational retail marijuana business due to the actions by the city, town, or county with jurisdiction over the licensee,” according to the bill text.

The new rules also set advertising limits on cannabis operations in an effort to prevent advertising to children. The new advertising rules ban public transit advertising and marketing aimed at out-of-state residents and prohibit cannabis companies from using “toys…inflatables, movie or cartoon characters” in their advertising campaigns, including mascots.

While billboard advertisements are permitted, those are limited to shop name and location only, and bans such advertisements from containing “any depictions of marijuana plants.” Violations of the advertising rules can result in fines of $1,000.

The legislation requires that the Liquor and Cannabis Board provide the legislature with a report on home-grows by Dec. 1.

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The 16th St. Mall in downtown Denver, Colorado.

Denver Preparing For July Launch of Cannabis Social-Use Program

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As officials in Denver, Colorado are preparing to roll out the voter-approved social-use scheme next month, both cannabis and non-cannabis businesses are preparing for the changes. The four-year pilot program will allow companies to apply for social-use licenses – which cost $1,000 – but under the rules, customers must bring their own cannabis products.

Jim Norris, the co-owner of the Mutiny Information Café, a used bookstore and coffee shop, is vying for a permit hoping to turn the shop into a cannabis café once a month, hosting a “dance party-slash-comedy deal.”

“We’re going to have people come in and just smoke weed and hang out. They’re going to buy a book, they’re going to play pinball, they’re going to have some coffee, maybe get a comic or a record.” Norris said in a Buzzfeed report. “So basically, it’s already the same thing I’ve got going, except we can smoke weed. Caffeine and cannabis is the perfect combination. It inspires talk, it inspires creativity.”

However, some in the cannabis community are not so enthused by the rules. Tim Morgen, community relations specialist for BGood, said that cannabis operators won’t be able to make money off of public consumption.

“The industry, as a whole, has nothing to win on this,” Morgen said. “It’s not worth the fight.”

Nick Armogida, a marketing consultant, took Morgen’s sentiments a bit further and called the rules something “Jeff Sessions’ office” might have come up with.

Alaska’s Marijuana Control Board is currently considering social-use rules for the entire state, but none of their proposals are of the bring-your-own variety. Instead, regulators in Alaska are considering allowing consumption only if the products are purchased on-site, sampling, and allowing on-site consumption of edibles but prohibiting smoking and vaping.

Emmett Reistroffer, campaign director for Denver’s I-300 social-use initiative, called the city ordinance “far from what the voters approved six months ago.”

“I would say 99 percent of the businesses that expressed interest in these permits are no longer eligible or interested because of the burdens,” he said.

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A business person counts cash as part of their taxpaying procedures.

The Current State of Cannabis Business

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One of the first things you learn in high school civics class is that there is federal law, and then there is state law. There are times where these two worlds collide; the collision is particularly bad when it comes to cannabis.

Currently, we have 29 states plus the District of Columbia that have legalized cannabis for medical and/or recreational use. Problems arise because the federal government considers cannabis to be a Schedule 1 drug — the most restrictive category possible — which presents a quagmire for those in the industry when it comes to banking and taxation.

Into the Tax Court, we go

First, let’s tackle taxes. There was a famous U.S. Tax Court Case, Edmonson v. Commissioner in which Jeffrey Edmonson was a drug dealer. He sold amphetamines, cocaine, and marijuana — and for his crimes, he was sent to federal prison in 1974. When he was released, the Internal Revenue Service reconstructed his income and sent him a Notice of Deficiency. Edmonson took the IRS to Court in 1981. He reasoned that if the government was going to treat his drug sales as a business, then they should also consider his business expenses.

Drug dealers didn’t keep records, so by using something called the Cohan Rule, Edmonson testified that he sold his drugs on consignment. He wanted to take expenses for the cost of the drugs. However, he had to travel as well, and he had a dedicated telephone line, all of which the Tax Court considered and gave him credit for those expenses. Congress hated this, so they came up with an amendment to the Internal Revenue Code, Section 280E, which states:

No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.

Section 280E is still in force today. If you are a cannabis business owner, you are probably aware of this, for even in a state where cannabis is perfectly legal, when you file your taxes, all you can do is take an expense for the cost of the cannabis.

Consider the case of Californians Helping to Alleviate Medical Problems Inc. v. Commissioner in 2007 — a.k.a. CHAMPS. What this company did was sell subscriptions to anyone that had a medical marijuana card. They offered a monthly membership which included cannabis, but it also covered caregiving that would help their patients through the conditions that ailed them. The Court reasoned that there could be two businesses under one roof and it was mathematically easy to figure out how much of the expenses would be billed under caregiving and what would be billed as cannabis.

BINGO! We had found a way around Section 280E — but it’s not actually that simple.

Relying on experts to help you navigate the complicated waters of cannabis business will make your life as an entrepreneur much easier.

Section 280E finds a way

In 2012, a company called the Vapor Room found themselves in Tax Court. The case, Olive v. Commissioner, showed us that we couldn’t just throw two businesses together and deduct expenses to get around Section 280E. In Olive, using the principle of CHAMPS, the Vapor Room was selling medical marijuana, but then just giving away things like movie nights with popcorn and Yoga Classes. But here is the problem: there was no aggressive pursuit of income for that part of the business, so Tax Court quickly disallowed these expenses. And because their tax bill was so high, the Vapor Room went out of business.

I can’t tell you how many Olive-type dispensaries I see in a year. Somewhere along the way, someone who claimed they specialized in cannabis taxation would advise splitting into two businesses by basically just throwing them together and seeing if it would fly. The validity of that tactic couldn’t be less feasible. I’ve seen dispensaries with a setup where they sold cannabis and some T-Shirts and thought that they were operating under CHAMPS. The cannabis business is one of the most audited industries and, if you are in it, you really need a person that specializes in cannabis taxation. Not someone that says they do, but someone with proven experience and the knowledge to back it up.

This story doesn’t end there. Federal law strictly imposes its ‘hands-on’ banking policies for cannabis entrepreneurs as well. Unless you have some connections or lie about the nature of your business, opening a bank account is literally impossible. While it’s legal for banks to open such accounts, banks are not usually willing to engage with the cannabis industry because of the tax and legal ambiguities.

So, you have these businesses that have to operate in all-cash, and with cash comes theft. I’ve been in practice for 23 years and I know that businesses that operate with mostly all cash are going to see employee theft. You have to think about security — and it’s not just the employees that pose a security risk, it’s the general public as well. As a result, most dispensaries require some kind of armed and/or trained security on the premises.

Joining the right team

You have the Tax Code that is against you and you have a business that is all cash, what are you supposed to do?

The easiest thing to do is do your research. Find an accounting firm that actually specializes in cannabis. In the business of marijuana, you need to rethink how you want to enter the marketplace, how you want to handle taxes, and how you want to deal with cash.

An accountant that specializes in cannabis will have connections. For instance, they would have established a “team.” They will have a cannabis attorney (you’ll need one). They will have several banking solutions for you so your cash-use is minimized. They will have solutions to the issues you will undoubtedly encounter.

For instance, because regulations regarding cannabis are generally created by the state legislature, your team will need to know the different nuances of your state. For example, if you are a dispensary in Nevada, all you can do is sell cannabis — so the two-businesses-under-one-roof strategy won’t work for you. You will need another solution to your tax problem.

Depending on your state, there may be some banks and merchant companies that will take you on as a customer. The point is that cannabis is the new gold rush, and just because someone says they specialize in cannabis doesn’t mean they do, so do your homework.

New developments for taxes and banking

For cultivators, Section 280E doesn’t take that big of a bite, taxwise. For instance, the cost of growing cannabis includes most of their expenses. Yet, even hemp farmers are under the control of Section 280E.

There are some new developments on the tax and banking side, however. In the House, they have introduced H.R.1810 – Small Business Tax Equity Act of 2017, which would get rid of Section 280E. The Senate even has a companion bill — but both bills are stuck in committee. In the Senate, they have also introduced S. Rept. 114-280 – Financial Services And General Government Appropriations Bill, 2017, which would end the industry’s banking restrictions.

Until then — before you spend the money on a license to grow, cultivate, or open a dispensary — meet with someone that specializes in cannabis taxation. You may need to go back to the basics.

First, study your state laws. Second, sit down for a consultation with a cannabis tax specialist. Tell them your idea and let them work around it. They should be able to offer you several different options. Together, you can figure out what banking options are available; there are some small banks and even merchants that will work with you, but, for the time being, you will need the right team behind you to help guarantee a cannabis tax and banking workaround.

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The purple glow of LED lights inside of a licensed Washington cannabis cultivation site.

Poll: Strong Majority Supports State-Level MMJ Programs

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According to a Marijuana Majority poll conducted by Survey USA, 76 percent of respondents said states should be allowed to enact their own medical cannabis regimes, and the view was shared by all majorities regardless of gender, age, race, or political affiliation. Just 12 percent indicated they would like to see the federal government “arrest [and] prosecute” individuals who are using cannabis legally.

Poll respondents were split on whether professional athletes and journalists should be allowed to use cannabis. Forty-six percent said athletes should be allowed to use cannabis as an alternative pain-killer to opioids and prescription drugs, while 38 percent thought athletes should be suspended if they fail a drug test for cannabis.

Fifty percent of those polled supported allowing journalists to use cannabis, while 35 percent said they should be punished. In their framing of the question, the pollsters pointed out that the New York Times and Washington Post require journalists to submit to drug tests for cannabis, even if it is legal where the individual lives.

Poll respondents were also split about whether or not legal cannabis users should be allowed to purchase firearms, with 48 percent answering that they should, while 37 percent said they should not. In states with legal cannabis regimes, a person can be prevented from purchasing a firearm if they are enrolled in the state’s medical cannabis program. In states with adult-use regimes, an individual can be denied a firearm if they admit on the required background check that they use cannabis.

The pollsters surveyed 1,500 adults via cellphones and landlines.

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The Pennsylvania State Capitol Building in Harrisburg, Pennsylvania.

Pennsylvania Announces MMJ Dispensary Licensees

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The Pennsylvania Department of Health has announced the 27 companies approved to operate medical cannabis dispensaries in the state, just over a week after announcing the 12 companies approved for cultivation and processing permits.

According to a Philadelphia Enquirer report, six dispensaries were approved in Montgomery County, three in Bucks County, and two each in Delaware and Chester Counties.

Four dispensary applications were approved to operate in the City of Brotherly Love, one of which is set to be located near Fishtown’s SugarHouse Casino. However, the approvals did not include locations in Center City, West Philadelphia, Old City, or by the airport.

“There should have been one on Walnut Street. Period,” said Andrew B. Sacks, an attorney and chairman of the medical marijuana and hemp department at Sacks, Weston, Diamond LLC. “This is just asinine.”

The 27 companies awarded licenses will be allowed to operate three locations, and while 81 total dispensaries are allowed by law, many applicants chose not to apply for more than one location leaving 52 total dispensaries to open next year. The operators will be able to apply for their additional allowable dispensaries once their first is up and running.

Under the state law, flower and edible sales are prohibited and dispensaries will only be allowed to sell cannabis oils that can be vaporized or consumed in a solution. All of the state’s applicants were required to pay a $5,000 application fee and post a $30,000 deposit, which is only refundable to the failed bidders. According to the report, the permits are worth about $10 million to $20 million depending on the number of customers and the location.

However, it could take years for operators to see profits in the millions, as some businesses in states that do not allow flower – such as New York and Minnesota – still have yet to turn a profit.

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