Cannabis & Tech Today -- Year-End 2020 by Innovation & Tech Today

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FROM THE PUBLISHER

That’s a Wrap, 2020! It’s our year-end issue and well…it’s been a year. Lockdowns, essential cannabis, Tiger King, raging wildfires, social justice, civil unrest, a divisive election, and isolated holidays culminated in a collectively traumatic 12 months. Bringing this year to a close will be a welcome relief.

Charles Warner, Publisher/Editor-in-Chief

“ While we can’t change the past, we can help design the future.”

There have also been some victories, despite the chaos. New Jersey, Arizona, South Dakota, Montana, and even Mississippi voted to legalize cannabis in some form. In total, 35 states now have access to either medical or adult-use marijuana. Perhaps those wins are a sign of what’s to come. With a new presidency and a new year, maybe we can allow ourselves to hope for better days ahead. In our year-end packaging and retail issue, we take a look at the people and products shaping America’s future. We explore green packaging design and discover how to drive brand value through sustainable initiatives. Plus, we’ve compiled some of 2020’s most innovative products so you know just what to put under the tree for your favorite cannabis connoisseurs or industry comrades. Cover star Melissa Etheridge shares how she’s overcome a traumatic 2020, using technology and innovation to help connect with fans and launch new ventures. We also explore emerging cannabinoids and kick around the concept of CBD for wellness with Rachael Rapinoe. The Florida Tech Zone dives into the state’s convoluted medical program while highlighting the companies working to provide patients with reliable care. As we prepare to emerge from the darkness of 2020, we’re also looking back at the powerful insights we gained during our first Emerge Virtual Cannabis Conference & Expo. Keynotes Steve DeAngelo, Wanda James, and Jim Belushi spoke on equality and the desperate need for criminal justice reform. We’ve recapped some of their takeaways in this issue’s social equity section. The Winter Emerge 2020 Virtual Cannabis Conference & Expo takes place December 15-17, featuring a brand new lineup of influencers and innovators focused on the future of cannabis business, health, and wellness. Whatever 2020 looked like for you, I hope this issue will provide a welcome respite and an opportunity to look forward with hope and determination. While we can’t change the past, we can help design the future. More Americans voted this year than in the last 100. I’m reminded of something Tommy Chong shared during his interview with Cannabis & Tech Today in spring of 2019. He said Americans should be thankful to President Trump for ushering in a new wave of voter consciousness. Prior to his divisive rhetoric, many citizens had become apathetic and removed from their role in democracy. With 161 million voters showing up to the polls this year, 30 million more than 2016, perhaps Chong was right. Till our next issue in 2021, stay informed, stay inspired, and wear a mask. Oh, and don’t forget Cannabis & Tech Today makes a great stocking stuffer.

Cannabis & Tech Today // Year-End 2020

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SINCE LAST ISSUE… The past few months have been collectively strange. Whether it was virus fatigue or political burn out, it seems all of America had a rocky close to an isolated summer. At Cannabis & Tech Today, we’ve been doing our best to engage with fans through podcasts and virtual networking. We squeezed in a few in-person events, just to keep our sanity, and even met up with a few celebrities along the way.

PUBLISHER/EDITOR-IN-CHIEF Charles Warner cwarner@goipw.com CREATIVE DIRECTOR Shane Brisson shane@goipw.com

SAVORING THOSE HAPPY HOURS One bright spot in a mostly virtual summer were the socially-distanced happy hours hosted by Grasslands: A Journalism-Minded Agency. These intimate gatherings provided local journalists an opportunity to mingle with one another as well as new and emerging brands. Experiences ranged from tastings of THC-infused mocktails to sampling concentrates with carefully selected terpene blends. Each gathering took place outside with attendees fully-masked, abiding state and local COVID-19 guidelines.

A LAUNCH TO REMEMBER Jim Belushi, legendary performer and owner of Belushi’s Farm, celebrated the launch of The Blues Brothers Pre-rolls in Colorado with his bandmate and fellow actor Dan Aykroyd. The duo made a special appearance at The Green Solution in Northglenn, Colorado, signing autographs and taking pictures with the crowd. A socially-distanced line of fans circled around the block as eager onlookers snapped pictures of The Blues Brothers and their famed Bluesmobile. Cannabis & Tech Today Managing Editor Patricia Miller posed with the pair, commemorating Belushi’s summer 2019 cover feature.

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contents

YEAR-END 2020

74 Cover Story Melissa Etheridge: Come to My (Zoom) Window Cover Photo: Lauren Dukoff

Departments 12 By the Numbers 14 Event Wrap Ups 16 Know Before Photonic Remediation 18 International 20 Pets 22 Compliance 24 Hemp 86 Top 25 Products of 2020 92 Something Edible with Laurie Wolf 94 Events + Coming Next Issue 96 The Lighter Side

26 Innovator of the Year Coming Together for Cannabis

28 Sustainability Building Brand Value Through Sustainability 30 Mindful Marijuana

34 Investing Igniting the Investor Mindset

38 Legislation Pending Issues

40 Business Innovations Powerfully Packaged 42 Delivery on Demand 46 High as Hell

54 Social Equity Freedom, Representation, and Reform 6

Cannabis & Tech Today // Year-End 2020

G I N

J A R

P A C K

contents

YEAR-END 2020

60 Tech Zone Finding a Path Forward in Florida 62 Pioneering a New Landscape 64 Solving the Humidity Problem 66 Creating a Crop Portfolio 68 Extracting Value 70 Managing the Patient Experience 72 Cannabinoids and Carcinogens

80 Health + Wellness Science, Soccer, and CBD

84 The Lab Minor Cannabinoids Front and Center

Cannabis & Tech Today // Year-End 2020

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A look at the metrics shaping the cannabis business market — and our lives Global cannabis sales are higher than ever. More sales equate to more packaging, a sector which is on an explosive trajectory. Though waste is a concern and regulations around cannabis packaging are ever changing, the demand for affordable, compliant options has never been greater. Let’s unpack those statements a bit with a look at the numbers surrounding one vertical of the industry that’s expanding at a break-neck pace.

300 250

297.51 billion

Cannabis Packaging Market Value

By 2026

USD IN BILLIONS

200 150 101.48 billion

100 50 0

219 million 2018

2019

2025*

Source: www.reportsanddata.com

*Projected. Sources: Freedonia Group Study and mordorintelligence.com

Consumer preference for flower:

2017

Jars, bottles, folding carton share of packaging demand:

89%

62%

of sales in 2024

2020

61%

U.S. share of global cannabis packaging market in 2019: 63%

Source: www.reportsanddata.com

Estimated cannabis packaging waste in first year of Canadian legalization:

10,000

Cannabis & Tech Today // Year-End 2020

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// EVENT WRAP-UPS //

Emerge Virtual Cannabis Conference & Expo

The first Emerge Virtual Cannabis Conference & Expo welcomed 1,600 attendees for six keynotes and 30+ sessions during its jam-packed, three-day program. Virtual smoke sessions started cropping up around the expo halls as industry-insiders mingled with crowds and found new ways to engage with their avatars. The event centered around the future of cannabis and social equity, encouraging conversations that may prove pivotal to making the industry a more inclusive and representative space. Keynotes from Wanda James, Jim Belushi, Steve DeAngelo, Carlow Dew, Senator Daylin Leach, and Ricky Williams informed and inspired attendees while raising money for the event’s non-profit partners The Last Prisoner Project and Minorities for Medical Marijuana.

O’Cannabiz International Conference & Expo

The O’Cannabiz Awards, Conference, and Expo was scheduled to take place in September of 2020. Due to the COVID-19 pandemic, the event has been postponed until summer or fall of 2021. O’Cannabiz President Neill Dixon noted, “The health and safety of Canadians, along with our speakers, exhibitors, sponsors, visitors, and staff is our number one priority.” They have already outlined some of their potential speakers for next year, including professional soccer player, trainer, coach, and founder of Mendi CBD Rachael Rapinoe. Check https://ocannabiz. com/ for updates.

Benzinga Cannabis Capital Conference

Benzinga took their entrepreneur and investor conference virtual this year, offering both live and on-demand presentations. The one-day event hosted an array of industry leaders, such as Charlotte’s Web CEO Deanie Elsner, Cookies CEO Berner, Viola Founder Al Harrington, and Founder of Last Prisoner Project Steve DeAngelo. Chad Bronstein, founder and CEO of Fyllo, shared his sentiments about the event, “For us, it’s a great way to access a lot of our investors as well as showcase what we’re doing.” With topics ranging from socially responsible investments to mastering brand development, this event had something for investors and startups alike.

Cannabis & Tech Today // Year-End 2020

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DEPARTMENTS // KNOW BEFORE

What to Know Before Using Photonic Remediation By Ebby Stone

Cannabis is a fickle plant. Whether it’s mold, mildew, or pests, there are plenty of opportunities for dangerous and costly pathogens to contaminate a crop. Cannabis & Tech Today spoke with Rad Source Technologies Executive Vice President George Terry and Head of Research & Development Dr. Justin Czerniawski to better understand what causes these issues and how one popular remediation technique, photonic decontamination, can help.

E. coli (Escherichia coli) is often found in animal fecal matter, a common ingredient in fertilizer. Photonic remediation is one method of cannabis remediation which destroys such pathogens without altering the taste, smell, or appearance of buds.

Cannabis & Tech Today: What causes cannabis to need remediation? George Terry: During the grow, cannabis can actually pick up mold, yeast, powdery mildew, aspergillus, salmonella, E. coli, depending on if it’s indoor or outdoor, and these are all pathogens that states regulate to make sure the flower itself is safe for consumption. iStockphoto.com/luismmolina

C&T Today: One form of treatment is photonic decontamination. How does that process work? GT: It’s the same technology in use in Canada and the Netherlands. It has no impact on the terpenes or the cannabinoids of the product itself, because it uses light. It uses the photon to go in and actually break the DNA chain of the microbe so it can no longer reproduce. It doesn’t do anything to affect the cannabinoids or the terpenes of the product because that’s not what we’re targeting. We’re targeting, at a DNA level, the microbe itself. C&T Today: It’s a light penetrating technology, so how does the light reach all the nooks and crannies of the flower? Dr. Justin Czerniawski: The thing that’s nice about our technique is we’re using the X-ray part of the electromagnetic spectrum, and the wavelengths there are small enough that you can actually get into those nooks and crannies, get through the large molecules that you want to preserve, like the terpenes and the 16

Cannabis & Tech Today // Year-End 2020

through the material, they dissipate. It does not make the product radioactive. It’s just like when you go to the dentist for an X-ray. C&T Today: What’s the most important consideration when remediating cannabis? Executive Vice President George Terry

Head of Research & Development Dr. Justin Czerniawski

cannabinoids, and target the DNA. The wavelength matches nearly perfectly. C&T Today: What are some common concerns people have with your remediation technique? GT: When people hear that you’re using X-rays they think, “Oh, it’s going to be radioactive,” and it’s a farce. Basically, we emit photons out of an emitter in the X-ray spectrum. Those are photons that, once they’re absorbed into the target, they break the DNA, they go

JC: It all comes from a public safety standpoint, because heaven forbid [cannabis companies] put something out on the shelf that passed inspection, but then pathogens grow back, somebody consumes it, gets sick, and then gets in trouble. That is the reason we challenge our customers to see how low they can get their CFU levels. The reasoning being, you have very little concern if you get your products to that non-detectable level, you have a lot of concern if you’re just under the passing threshold. Why would you want to just barely pass? Wipe [the microbes] out, as much as possible, and don’t even worry about it. Move on, sell your product, move to your next batch. It really should be that simple. ❖

DEPARTMENTS // INTERNATIONAL

What Will 2021 Have In Store For The International Cannabis Industry? By Alex Rogers, CEO of The International Cannabis Business Conference

Photos iStockphoto.com

One of the only bright spots in 2020 is the emerging cannabis industry. Whereas the ongoing global pandemic has negatively impacted virtually every other industry on earth, the legal international cannabis industry has powered forward. According to data firm BDSA, spending on the legal cannabis industry is expected to top $20 billion in 2020, up from an estimated $14.8 billion in 2019. To put that number into perspective, the international music organization IFPI estimates that the entire global music industry is worth roughly $20 billion dollars, and unlike the music industry the cannabis industry has plenty of room for growth. As the year 2020 comes to a close, many in the cannabis community are naturally starting to look ahead towards 2021 and speculating on what the new year may bring for the emerging cannabis industry. One thing is for sure - the cannabis industry is going to continue to expand to nearly every corner of the world in 2021. One country of particular interest to many cannabis industry observers is Mexico. In late 18

Cannabis & Tech Today // Year-End 2020

2018, Mexico’s Supreme Court determined that cannabis prohibition was unconstitutional and tasked lawmakers in Mexico with passing legislation that would create a regulated adultuse cannabis industry.

enormous financial rewards, so there’s obviously incentive for lawmakers in Italy to move quickly.

Right now, only Uruguay and Canada have a regulated adult-use industry. So far, lawmakers in Mexico have failed to pass the required legislation, and it is probably unlikely that it will happen by the end of the year. It’s more likely to happen in 2021, and if Mexico can get the legislation implemented and no other country beats Mexico to it, Mexico will become the largest legal adult-use cannabis market on the planet. Even if it proves to be a short-lived designation, it’s still significant.

The adult- and medical-use cannabis markets will continue to thrive in Canada in 2021, albeit with minor setbacks throughout the year, and Canada will continue to see its legal cannabis products exported to an ever-increasing list of other countries. The United States is likely to remain a patch-work of legal states and prohibition states throughout 2021; however, momentum will continue to build for the end of federal prohibition. The medical cannabis industry will continue to proliferate across Africa and more countries will likely be added to the list of legal medical cannabis nations in Asia in 2021.

A similar landmark court decision rendered in Mexico was also issued in Italy in late 2019. Italian lawmakers are currently working to implement the court’s decision and pass legislation that would create a regulated adultuse cannabis industry. It’s unclear if that will happen in 2021, however, it’s definitely possible. The first country to implement a regulated adult-use cannabis industry in Europe will reap

After all of the ups and downs the cannabis industry has experienced in 2020, the upcoming year will hopefully be less turbulent, both from an industry and a societal standpoint. One thing that is a guarantee for 2021 from a cannabis industry standpoint is the industry will be more competitive than ever, with everyone across the planet scrambling to get in on the action. Plan your strategies accordingly. ❖

DEPARTMENTS // PETS

Help May Be on the Horizon for CBD and Pets By Tami Kamin Meyer, Esq. The 2020 elections not only brought the U.S. a new president, but the electorate in four states also approved recreational marijuana. Two more okayed medical marijuana, bringing the number of jurisdictions with those programs to 34. While CBD is legal on the federal level, states can legislate it themselves. With cannabis illegal under federal law, and various states implementing their own guidelines about it, rules regarding CBD are murky. Considerations complicating CBD’s legality are its intended use and source, as well as whether it should be used recreationally or medically. The current landscape is fuzzy when it comes to CBD for pets. According to Dr. Jeff Werber, a California veterinarian and Chief Veterinary Officer for Airvet, a virtual and phone-in veterinary service, “There is nowhere to find any information.”

California’s law is “complete insanity,” said Werber, noting guidelines for veterinarians discussing CBD for animals are stricter in his state than for other medical specialties. Still, says Werber, there are six ailments “where we know CBD helps. We just don’t know how much.” They include combating seizures, reducing inflammation, pain, stress and anxiety, nausea, and fighting cancer.

Dr. Jeff Werber

However, help may be on the horizon.

“I can’t tell my patients how much (CBD) is too low, its efficacy, what might be too much, which could lead to toxicity, or even overdose and death,” he said. California vets may not prescribe or even recommend CBD products for pets although they are permitted to explain they have heard of successful uses.

For example, one consideration is that discussions about the use of CBD for pet care only occur during a vet-client (patient) relationship. Those discussions become part of the pet’s medical records, and should include other potential treatment options besides CBD. The organization also advocates if a vet

recommends CBD for a pet, the product came from an established outlet that provides for third-party testing. “You don’t know what’s really in that bottle, especially when you buy online. It may even have THC in it, which would be harmful to a pet,” says Penrod. Werber agrees. Until there are more rules and studies to determine how CBD impacts pets, the overall long- and short-term impacts on them can’t be known, he says. ❖ Tami Kamin Meyer is an Ohio attorney and freelance writer. She is a Member of the Columbus Bar Association Board of Editors and Marketing Chair of the American Society of Journalists and Authors. She tweets as @girlwithapen.

iStockphoto.com/ adogslifephoto

Although an advocate for CBD for pets in the right circumstances, Werber and other vets in his state must adhere to California law when it comes to discussing CBD for pets.

According to Jim Penrod, executive director of the American Association of Veterinary State Boards Regulatory Task Force, “A guidance document on CBD use in veterinary medicine” is in the works. It is not complete, but plans called for it to be sent to members of the group the week of Nov. 16, 2020. They will discuss and tweak the proposal before sending it the group’s Board of Governors for a vote, he said.

Jim Penrod

Cannabis & Tech Today // Year-End 2020

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DEPARTMENTS // COMPLIANCE

Security, Chain of Custody, and The Transportation Manifest By Robert H. Carp, CEO Certified Cannabis Compliance Training, Inc.

iStockphoto.com/Sean_Kuma

annabis compliance for licensees is finally emerging from the shadows into the forefront as regulators move from the application phase to the operational phase. In performing Freedom of Information Act (FOIA) requests and reviewing online compliance audit reports and letters to licensees, there are a number of specific issues regulators are required to review, but the majority of warning letters and flagged inspection reports show only a handful of cited issues for the vast majority. First, let’s look at the issues still dogging both new and experienced licensees that we have culled from our files, but are easily corrected with a new standard operating procedure (SOP), employee training, and rebooting the corporate culture. Below are the most frequent issues encountered. Security For many licensees in the cannabis industry, security is the most often cited issue. Security should be homogenous – applied uniformly and followed in a specific formula that has been vetted by your security vendor or director. Despite constant upgrades to technology and 22

Cannabis & Tech Today // Year-End 2020

upgrading security employees’ skillsets, security is far and away the greatest cannabis compliance risk and the most frequently cited issue by regulators. After review of over 1,000 citations from different states, we have created the following list of critical elements that regulators have consistently focused on when conducting cannabis licensee audits. THEY INCLUDE: False ID, Expired ID, Lack of ID The first barrier to entry at any licensed cannabis facility is providing government issued identification verifying the individual’s age and residence. Unfortunately, underage users have utilized any number of providers of fake ID both here and abroad to obtain credentials that have almost impossible to duplicate holograms and embedded chips. Employee Theft The largest issue with inhouse security is not with customers and patients – it is with the staff. Many citations show improper reconciliation and storage of cannabis has resulted in theft and displacement by staff.

Improper Chain of Custody, Documentation The employee theft issue will run parallel to citations issued for improper chain of custody and creating an audit trail and documentation sufficient to satisfy regulators. If you can’t provide regulators with proper paperwork demonstrating the complete handoff of all products from receipt to sale, then there is potential for further issues. Product Safety/Labeling and Packaging This is a catch all category in which regulators generally have no trouble finding infractions. Are all the proper warnings on the label? Medical cannabis is the largest concern for improper labeling and packaging. Does your label have the toll free number for Poison Control? If you’re selling products for ingesting cannabis such as vaporizers and other rigs, do they contain adequate instructions for use, servicing instructions, warning statements or other information for the protection of users? Avoid this issue – go straight to the state regulations’ and the FDA

regulations’ website for easy to utilize guidance. Improper testing is another area for concern. Not happy with the results from the lab where your samples are analyzed? Start shopping! Many growers will shop lab results to find a vendor who provides the highest THC and other cannabinoid profiles. There is little if any risk to licensees – there is no centralized database for lab results, so licensees are free to shop their product’s results with impunity. Record Keeping The proper use, reconciliation, and documentation of transactions such as receiving, sales, and internal processes is one of the most frequently cited issues by regulators. Employees are often not properly trained in utilizing the seed-to-sale software, and do not observe many of the requirements for entering both product grown in house and purchased inventory. The Transportation Manifest Despite the requirements being carefully spelled out in every state’s published regulations, many licensees are puzzled by the requirements.

Does your facility segregate, withhold from use, and place in a secure location newly received or harvested cannabis? Do all received products have a unique identifier? Please review the attached diagram of a vetted transportation manifest for the proper fields to be included in your own documentation. Compliance is critical for cannabis licensees. Due to the hyper focus by the press, the government, and consumers about raw flower and infused products, regulators are often looking with a jaundiced eye toward licensees whose operations are considered improperly operated. Compliance doesn’t have to be an intolerable expense – by creating an operational program, most licensees will see theft, out of date inventory, and general security costs go down.

Like any business, leadership must embrace the compliance culture. Hard and fast operational rules supported by SOP’s will take the guesswork out of compliance. ❖

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DEPARTMENTS // HEMP

Packaging Perfection Bio-circular packaging offers an out-of-the-box solution for sustainable cannabis. By Andrea Morhardt To say the cannabis industry has experienced change over the past few years would be a serious understatement. Every element – from growth engineering and legalization to marketing and delivery – seems to be witnessing a revolution. However, cannabis packaging is undergoing one of the most significant changes. As cannabis products receive more mainstream attention, retailers and packaging organizations are shifting their focus from mere shelf-presence to brand identity. The identity shift began with simple changes like moving from stereotypical Rastafarian images to more sophisticated and elegant colors, images, and design. Then the shift became more substantive and environmental responsibility emerged as an important element of brand identity. That shift shouldn’t be surprising, considering that the industry has long struggled to balance pollution concerns against packaging mandates that require many layers of plastic. More and more companies are recognizing the destructive irony of wrapping a quarter gram of a natural and medicinal healing product like cannabis with 15 grams of plastic. Bio-Circular Solutions The good news is, like in many other industries, rapid innovation is helping to solve this problem. And like every other industry, environmentally-conscious solutions that are also financially viable are evolving. Reclaiming plastic that is stranded in the ocean and rerouting it to the proper waste stream is a noble and effective solution. Some companies are going one step further to reintroduce this reclaimed plastic into the marketplace. Some companies in the cannabis industry are going even further by implementing bio-circular 24

Cannabis & Tech Today // Year-End 2020

solutions. The Ellen MacArthur Foundation defines the concept as “a restorative, regenerative model where nothing is lost and everything feeds a new cycle.” Marijuana and hemp waste are now being used to produce reusable packaging solutions for cannabis products. These innovative plantbased packaging options are becoming increasingly available at price points that are comparable to those of traditional and less sustainable varieties. One Company Making It Happen One company on a bio-circular mission is Sana Packaging. Sana is driven by the concept that “Ultimately, plant-based materials made from rapidly renewable and regenerative resources are what should be used for single-use products, like packaging.”

appreciates a brand that cares about minimizing its environmental footprint.

The company sees hemp as the “ideal feedstock for bioplastic packaging” because of its rapid growth cycle, hardiness, and versatility. Customers can even recycle the packaging at local cannabis dispensaries where hemp recycling is permitted by law.

Cannabis cultivators and processors are working to remove barriers like legal requirements to destroy cannabis during waste disposal. As legislation continues to evolve and supply chains approach economies of scale, biocircular packaging options will become a mainstream practice.

According to James Eichner, Sana’s co-founder & chief strategy officer, “While the materials we use put our brand on the map, our goal is to affect broader systemic change in cannabis packaging and waste management as we strive towards circularity.” The Path Forward Today’s consumer is paying attention to corporate responsibility. That consumer

In today’s tumultuous and competitive environment, demonstrating your brand as a positive environmental change-agent is critical. It’s not about if your organization will be environmentally conscious, but how it will contribute to the greater good.

Brands who pioneer innovative and environmentally-responsible packaging solutions will see the cost of goods sold decline significantly. Although that cost differential could very well be the deciding factor between profit and loss, the more valuable outcome may very well be the brand loyalty and appeal that is generated with today’s consumer. ❖

INNOVATOR

OF THE

YEAR

Coming Together for Cannabis Why innovation in 2020 was driven by consumers first and companies second. By Rachelle Gordon

o say 2020 was a wild ride would be an understatement. Between a global pandemic, renewed calls for civil rights, and a dramatic election season, it was a true roller coaster of emotions. One thing however remained clear: the cannabis community is one of resilience, inclusion, and humble passion for the plant. Cannabis & Tech Today has opted to declare the consumers Innovators of the Year, as they are the true driving force behind everything the industry does — and continues to strive for. Here’s our love letter to the folks who inspire all of us to raise the bar every day and fight for safe access across the country until full legalization is finally a reality. Widespread Stay at Home Orders Lead To Increase In Canna-Curious Consumers The COVID-19 virus forced millions of Americans to shelter-in-place beginning in early March, creating a new at-home culture that includes video chat boardroom meetings, online homeschooling, and a DIY renaissance. For many people, the opportunity to try marijuana never seemed more apt. Legal cannabis sales spiked in the early days of the pandemic; California-based delivery juggernaut Eaze reported a 50% jump in new customers in mid-March and sales of edibles spiked across the board. Nathaniel, an industrial worker from Iowa, decided to try vaping hemp-derived delta-8THC (see Minor Cannabinoids, pg 84) for the first time after finding himself unemployed due to the pandemic. He had dabbled with traditional cannabis in the past but has been in recovery from alcohol addiction for several years. Nathaniel told Cannabis & Tech Today he was seeking relief from a variety of mental

Cannabis & Tech Today // Year-End 2020

health issues when forced to quit prescription medications cold turkey after having issues with his health insurance. “I have a disorder that causes me to be serotonin deficient; without medication, I suffer from severe depression and anxiety,” he said. “It’s cheaper to vape than to pay for prescription meds, which is messed up in its own right. But vaping works immediately, which is nice because it hits you right away when you need it.” Nathaniel and many more like him found themselves stuck at home for better or worse, and whether dealing with coronavirus-inspired worry or sheer boredom, the unprecedented demand for cannabis products during one of America’s darkest hours was indeed significant proof consumers needed the plant like never before. Cannabis Deemed Essential, Delivery Services Swell When large-scale shutdowns began to spread, the designation of “essential” or “non-essential” became an important factor in how we continued our day-to-day lives. In a somewhat surprising move, the majority of states with legal medical and/or adult-use cannabis found officials decreeing retail operations to be among services that would remain open. This notion solidified the theory that stigmas associated with cannabis consumers are more and more a thing of the past. Furthermore, compliant cannabis companies are crucial to the survival of economies in towns large and small across the country, something even hardline bureaucrats were unable to see past. With so many citizens now operating out of their domiciles, orders from cannabis delivery services ballooned in jurisdictions where they’re allowed. Some states even amended current

laws to allow for safe, contactless-delivery to patients in order to promote social distancing. Carl Saling III, co-founder and CEO of California-based Hollister Cannabis Co., stated his team was already planning on launching their retail arm Dreamy Delivery when the pandemic kicked plans into high gear. “To change consumer behavior typically takes a lot of money and time,” he said from his home. “COVID-19 changed that overnight.” Election Proves Cannabis Industry Here To Stay If the pandemic and social unrest wasn’t enough, cannabis consumers also had to contend with arguably one of the most intense election seasons in a generation. While the presidential contest was extremely divisive in nature, there was one truth that became abundantly clear on election night: Americans want legal cannabis. Voters in four states — Arizona, Montana, New Jersey, and South Dakota — approved full adult-use legalization (South Dakotans also said ‘yes’ to medical cannabis in a separate initiative) while medical marijuana was legalized by residents in Mississippi. Non-partisan support for cannabis reform has never been higher, something Evan Nison believes is indicative of an overarching shift towards acceptance. Nison, a member of the board of advisors for both the National Organization for the Reform of Marijuana Laws (NORML) and Students for Sensible Drug Policy (SSDP), and Founder of NisonCo PR, said Americans are now at the point of realizing consumers are everyday people from all walks of life and not the threat to society they were once deemed to be. “This has become less of a partisan issue and historically, drug policy has been led by the

The true heroes pushing the cannabis industry forward in 2020 were the patients and customers calling for better access and better products. While it’s true gatherings like the one pictured here aren’t part of our pandemic reality, it’s this sense of community that’s at the heart of cannabis culture.

people, not politicians,” he told Cannabis & Tech Today. “It’s always been true that there’s been more support among the people for repealing cannabis prohibition and the number of voters wanting reform has never been higher. The positive impacts and experiences of legal states is leading to interest for their neighbors.” Advocates like Nison, a consumer himself, are those truly moving the conversation forward as nationwide legalization inches closer and closer. Consumers Drive Innovation First And Foremost More than anything else, cannabis consumers want access to safe, high-quality, and effective products made by people who care. This ethos is at the heart of many cannabis brands big and small. As the population evolves and research into the potentials of cannabinoids expands,

brand catalogs will be shaped by their customer base’s desired experiences first and foremost. At Doc Green’s, a Berkeley, Californiaheadquartered maker of top-shelf live rosin extracts and infused pre-rolls, the consumer has always been the dominant force behind any and all paths they have taken since they were first founded in 2009, back when only medical marijuana was available in the state. “‘Consumers’ used to be [called] patients and we know that many people are still, perhaps more than ever, consuming cannabis as medicine or using it to enhance their lives,” explained Doc Green’s Chief Marketing Officer Elise McRoberts. “We prefer to call these people our community, rather than consumers, and they mean everything to us. “We listen to our community so we can

continue to evolve with them and provide products that fill their needs,” she continued. “They are at the core of every decision we make — from our product development to hardware and packaging selection, even our branded merchandise. It’s our privilege and honor to still be making cannabis products after all these years and throughout all the changes within the industry itself.” People who use cannabis, whether they’re a graduate student in their mid-20s dabbing in the evenings or an 85-year-old grandmother using topicals for their arthritis (and everyone in between), are the real innovators in this industry as they inspire operators to do their best every day. So for all you consumers out there, Cannabis & Tech Today salutes you and encourages you to keep calm and toke on. ❖ Year-End 2020 // Cannabis & Tech Today

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Building Business and Brand Value Through Sustainability By Geoff Trotter, Co-Founder / Chief Growth Officer, Regennabis At Regennabis, we believe there is a need to create a disruptive and innovative cannabis community. This community must be driven by exponential actions in alignment with the UN Sustainable Development Goals (SDGs) to deliver increased business and brand value. At the same time, the industry has to provide solutions to many of the world’s biggest challenges and build a better future for everyone in the cannabis space. The community must lead, learn, connect, and innovate breakthrough solutions around humanity’s greatest challenges while delivering for stakeholders. This places sustainability as one of the single biggest challenges — and opportunities — facing cannabis companies today; and an ever-increasing number of companies, investors, consumers, and governments believe it is a challenge worth tackling head on. Sustainability, planned for and executed diligently, ticks many boxes on a Chief Executive’s list of ‘Must Do Well,’ or at least, it ought to. Whether related to the P&L account, the balance sheet, or the cash-flow statement of an organization, sustainability reduces risks (financial and non-financial), saves money, drives revenues, stimulates innovation, and enhances brand reputation. Sustainability engages and delights clients, customers, and colleagues — and gets the right kind of attention from the investor community. This means that this is not only relevant for a company’s shareholders — but for their stakeholders too, all of them: clients and customers, employees (and their families), the communities within which they operate and serve, media platforms that may influence or be influenced, as well as governments and regulators within their local, regional, national and/or global jurisdictions.

Cannabis & Tech Today // Year-End 2020

Fig. 1 provides a view of what a sustainabilitycentric organization delivers for its key stakeholders when implemented. Sustainability and Cannabis – Why Now? The short answer to this question is simply because stakeholders in the nascent legal industry are demanding that a different version of the industry emerge; one that is absent of quarterly write-downs, class action suits, overstatements or mis-statements from some of the larger players, both north and south of the border. At Regennabis, we are seeing a growing number of companies embracing a long-term view for their business, one which places sustainability as being fully integrated in their strategic, financial, and operational goals. This “journey” is one that oftentimes begins with an organization understanding their “purpose,” i.e. the answer to the “Why do we exist?” question. With an increasing understanding that there are multiple stakeholders to satisfy, these ahead-ofthe-curve organizations also recognize that to realize their “purpose,” they need a roadmap for

the journey they wish to undertake. Increasingly, this roadmap is found in a company’s ESG [Environmental, Social & Governance] Framework. Embracing an ESG focus internally, as a core enabler, then subsequently sharing externally through a series of sustainability goals and objectives, an organization will create opportunities for operational excellence, business differentiation, and shareholder appeal. These aspects result in additional business value for the organization’s financial owners as well as for all stakeholders. Increasingly, investors also believe that time is of the essence for cannabis companies to deliver to their strategic, financial, and operational goals through the successful build-out and implementation of an ESG Framework. For Kellie Seringer, Founder of Symmetry Capital/Medicus LP, the focus on ESG is an imperative; without such, she simply cannot invest in a company. Seringer states that she “places a set of ESG ‘principles’ at the forefront of the diligence undertaken when looking to deploy capital into both the public and the private sectors.”

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iStockphoto.com/jittawit.21

Regennabis has identified the five key drivers for the adoption of an ESG Framework [see fig. 2]. Given that “Access to Capital” is one of them, it follows then that from such a base of understanding of the ESG factors material to their business, these “forward thinking, longterm” smart companies will be best-positioned to build-out a suite of sustainability, communications, and branding objectives, putting them on a clear path to deliver greater business and brand value and be real leaders in this nascent industry. The ESG Journey – When Should a Company Begin Creating Their Roadmap? Today, not tomorrow — is the answer to this question. While some cannabis company

5 Key Drivers for the adoption of an ESG framework

leaders believe that such internal focus is more for late-stage organizations, others believe we should await standards or regulatory guidelines, which will surely come upon full legalization, but just not tomorrow. And yet, in the absence of such standards or regulations, investors are increasingly indicating it can never be too early for a company to start their “ESG Journey.” In fact, as an organization seeks more capital to fuel growth and works toward becoming a publicly-listed entity (or a target for acquisition), an early focus on ESG factors will mean that future valuations of the company will be reflected favorably for existing shareholders, ergo, creating business value. The overarching sense is that we ought not wait for standards because the de-facto “standard” of

Access to Capital Risk Mitigation “License to Operate” Finding New Clients/Customers Recruiting & Retaining Talent

running a business to deliver multi-stakeholder value is already here. Internally, embracing this roadmap will help companies define and execute on a sustainability-centric continuous improvement plan, involving collaboration with suppliers, customers, and consumer facing organizations, and then subsequently engaging these stakeholders in discussions around materiality. Externally, a company’s marketing and communications outreach will use this framework to tighten-up existing relationships and open doors for additional conversations with investors. This ensures the creation of increased brand value. In this era of disruptive innovation, the cannabis industry could potentially garner the “eyes & ears / hearts & minds” of a hugely influential group of consumers, i.e. more than 1 billion Millennials & Gen Z — as well as an aging population of Boomers who are increasingly turning to alternative medicines as a path to extended health and wellness. At Regennabis, we see an opportunity for this industry to provide the trust and positive reputation, along with a sustainable product mix and mindset. With guidance, this industry could disrupt the existing mono-capitalist market structure to one that flourishes on a multicapital framework — and deliver solutions to many of humanity’s greatest challenges. This is the opportunity of our time. We should not let it pass us by. ❖ Year-End 2020 // Cannabis & Tech Today

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Mindful Marijuana

An Inside Look at the Current State of Organic Cannabis Cultivation By Taylor McLamb The uncertainty of the pandemic has forced many people to be more health-conscious and aware of what they’re putting into their bodies. Being healthy is so much more than just vigorously washing your hands — although that doesn’t hurt. It’s also being mindful of the hidden chemicals or pesticides that we eat, drink, and even smoke. While cannabis has been deemed essential due to all its healing, medicinal qualities, it’s important to research how your cannabis was cultivated. But, how does one determine if what they’re smoking is actually organic or just more corporate greenwashing? Consumer-Friendly Recognition Adam Duke, director of operations for the Midwest Sustainable Sungrowers Association and a Cannabis Certification Council board member, said unlike organic produce at a grocery store, it’s often a challenge for people to differentiate between organic and nonorganic cannabis. “When polled, most people believe what they are consuming is organic and natural. They have no clue it’s been grown in a synthetic fiber, it has been fed with waste products, basically from chemical manufacturing and weapons manufacturing, the ammonium, the nitrates, are byproducts of bombs, and it’s full of salts,” said Duke. Duke emphasizes the point of having an organically-grown certification is to provide a baseline for people to have recognition of what is organically grown, whether it was sustainable or not, versus something that’s completely synthetic. The Cannabis Certification Council (CCC) created a thorough organic standard for indoor, greenhouse, and outdoor cannabis production. The “Organic Grown Cannabis Standard” is designed as the baseline organic standard for 30

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(Left) Green Gorilla Founders Sir Steven Saxton and Katherine Guevara Saxton at their farm. (Right) Dr. Av Singh is in charge of overseeing all of Gorilla FarmCo’s farm activities. (Bottom) Green Gorilla’s certified organic 300mg per bottle CBD gummies and Hemp & Olive Pet Care, made with 99% pure cannabidiol.

legal commercial cannabis producers around the world. The CCC is also creating a unique seal that will be easy for consumers to identify in retail environments, which may help deter fraud in the marketplace.

more questions regarding what they’re consuming and if they’re really going to trust the producers they’ve been relying upon, or whether they should seek something that aligns a little bit more with their values.”

Duke said the CCC also plans to add value to some of the other certifications that already exist, such as Kind Bud, Sun+Earth, and Clean Green Certified. Unfortunately, those aren’t as easy to identify in the marketplace. Organically grown, however, is familiar. It’s a phrase consumers will recognize.

Rigorous Certification Process Green Gorilla is an example of a company in the cannabis industry that prioritizes the importance of transparency with their consumers. The company is pioneering the certified-organic hemp space. They recently announced that their massive, 1,474-acre farm in Arizona has been certified as USDA Organic. They went through a rigorous process to achieve the sought-after organic certification, which included on-sight inspection, a full review of farm activities, and a comprehensive verification of their inputs to ensure compliance.

“I think, in light of the circumstances of the world and how things have changed since March, people are going to pay more attention to what they are doing and what they are consuming,” said Duke. “It’s only a natural progression that people are going to start asking

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// SUSTAINABILITY // Mindful Marijuana

Charlotte’s Web was founded when the seven Stanley Brothers (left) developed a unique hemp strain to help Charlotte Figi with her epilepsy. Years later, the company founded in her honor offers high-quality CBD oils, tinctures, capsules, gummies, and pet products.

Gorilla FarmCo’s farm activities are currently being overseen by Av Singh, PhD. He’s consulted various farms around the world about their sustainable and organic practices. With the help of Dr. Singh, Gorilla FarmCo has sustainably irrigated its land and established regenerative soil practices through the use of organic cover crops while using and conserving pure water sourced directly from aquifers on its land. Sir Steven Saxton, CEO and founder of Green Gorilla, said the development of their own farm and planning to support the increased sales and manufacturing of their CBD products was a growing process, both literally and figuratively. “We have been able to prove ourselves through successful test crops and by ensuring every step we take is done with USDA organic standards in mind,” said Saxton. “Farming organically and sustainably not only makes our farm-grown organic hemp a premium, but it also helps our company be environmentally friendly”. Taking Care Of The Planet Cultivating clean, organic hemp goes hand-inhand with sustainability. Charlotte’s Web Senior Vice President of Government Affairs & Corporate Communications Kelly Shea, utilizes 32

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her years of experience working with agriculture and sustainability to further implement organic and non-GMO hemp farming. Charlotte’s Web, well-known for their trusted hemp-extracts, employs organic methods throughout their farms, with over half of their 2019 harvest receiving organic certification. “This is a product that people ingest and put into their bodies, you don’t want to be adding any sort of pesticide load or toxic load in somebody’s system. You want the cleanest, best products you can provide,” said Shea. “And from a sustainability perspective, that really is about taking care of the health of farmers, reducing the amount of toxins, pesticides, and herbicides that they or their families would be near. It’s also about taking care of the planet.” Earlier this year, Charlotte’s Web earned their B-Lab’s B Corporation Certification, which was a huge milestone for the company. Receiving an official B-Corp status will allow Charlotte’s Web to further expand the company’s commitment to transparency and accountability. According to their website, this includes practicing regenerative agriculture to build healthy soils, employing organic practices, and offering packaging designed for zero environmental impact.

“At Charlotte’s Web, we’re all about figuring out how to dial up the trust in hemp products, which is why a large part of my job, in addition to corporate social responsibility and communications, is government relations. At Charlotte’s Web, we’re really about advocating for very specific regulations for our hemp CBD industry,” said Shea. “We believe it’s critical to invest in sound and peer-reviewed science. If you look at our products and see the QR code, you can click it and it’ll take you to a very transparent list of all the tests that we do on our products, just so that people can have that trust in what they’re consuming.” There are so many beneficial properties of the cannabis plant. It can help people relax, alleviate pain, and calm anxiety. For some, cannabis is literally a life saver. With that in mind, it’s important to nurture the environment, and protect those relying on the plant as medicine, by implementing sustainable, organic practices. If you have any questions about sustainable farming practices or want to know “what’s in your weed,” make sure to check out the Cannabis Certification Council’s website for more information. ❖

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Igniting the Investor Mindset

Arcview CEO Kim Kovacs reveals how to cultivate capital, even during a crisis. By Ebby Stone How do you convince an investor your new business will not only succeed, but thrive, during a global economic recession? It’s a horrifying question, one many entrepreneurs are asking themselves this year. Fortunately, there are programs in place to help startups learn the invaluable language of the investor. Communicating with high-value venture capitalists is a skill, and like most skills, it can be learned and improved. Educational opportunities, like the newly debuted Arcview Ignites program, could help shape the future for many startups and entrepreneurs.

interaction than a typical in-person event would have allowed. “I had a whole hour with him. I got a chance to get personal with him. I got the chance to have a conversation with him, even though it was online. To me, that’s the benefit of doing these things on [video] platforms — being able to get that level of intimacy, where at a big event, maybe you get to 10% of the people who are there… here you can engage with everybody that’s on,” she explained.

Traditionally, the Arcview Group has focused on investor networking events to facilitate partnerships, but recently the brand pivoted to offer more digital opportunities. The difference with Arcview Ignites, however, is this program isn’t for investors, it’s for entrepreneurs. Developing a Digital Strategy With a decade of investor experience and more than 600 members, The Arcview Group is launching their new program to offer participants carefully curated insights into the investor mindset. CEO Kim Kovacs joined Arcview in January of 2020, and despite the turbulence of the past year, she’s embraced the company’s amplified digital strategy. “We can actually deliver more information and insights, albeit differently than you can at a live event. I actually feel it’s more personal,” Kovacs shared. During a recent digital event she was able to speak with Isaiah Thomas, a 12-time NBA AllStar who played his entire professional career for the Detroit Pistons. She confided that as a Detroit-native herself, she had a bit of a girlhood crush on Thomas. This virtual face-to-face provided more 34

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For many start ups, simply being noticed by investors is an advantage. A listing in an innovator directory, for example, could help bring a brand’s name to an investor’s portfolio. Arcview calls this their “Discover Platform.” Much like AngelList or Chronic Startups, this program offers companies a simple directory where they can highlight their brand and outline their goals, leadership, and funding. Refining to Pitch Perfection If a company wants more visibility, Arcview Ignites offers a “Summaries” program, where startups create a video pitch to share on the Arcview app. It’s a bit like a dating app, where investors can swipe through company after company until finding their ideal match. If a founder is just starting out and isn’t sure how to convince an investor or craft a compelling video pitch, Arcview Ignites offers a “how-to” series. “Launch Pack,” as they’re calling it, helps newcomers refine their approach.

Arcview CEO Kim Kovacs

Creating a Platform for Discovery As The Arcview Group is offering more webinars and virtual experiences, they’re hoping to connect in a deeper way with entrepreneurs. Kovacs noted: “Companies now need us more than ever… We know what investors are thinking. We talk with them all day. We know what they’re looking for and we know what they’re not looking for, so we have an inside track and a playbook for success that most organizations don’t. Therefore, we’re able to guide entrepreneurs and those starting out.”

Once the entrepreneur has their pitch ready to go, experts coach them through their pitch until it’s refined and ready to present to Arcview’s investor group. The investor group provides feedback so founders can tweak their pitch or conduct additional research. Learn to Tease to Please Kovacs also shared some advice from launching her own businesses: “It’s important to have the right information, presented at the right time. Your initial contact with an investor should be to get them interested enough to take that next phone call. You don’t want to give them everything they need.” She added, “It’s not a sales pitch. You’re not selling your product. What you’re doing is

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metrics. Make sure you’re asking the right questions. What about unit economics? What’s the lifetime value? Kovacs says if you’re at this stage of the game, it’s important to have the data investors want to see: “We want to know what a company would be measuring on a day to day or week by week or month by month basis to gauge success. You need to be intimately familiar with your metrics and be able to state the facts by memory.”

Arcview’s events are popular with investors, featuring insights from leading entrepreneurs like Daymond John (top left).

setting up that first meeting to get to the second and third meeting. And don’t expect that they’re going to write a check in that first meeting. That’s not ever going to happen.” Know Your Talents Echoing the sentiments of many successful entrepreneurs, Kovacs emphasizes the importance of knowing what one is best at, “Why you? Why now?” During initial meetings, investors are trying to understand founders and entrepreneurs as company leaders as much as they’re trying to understand the value of the company’s IP.

“We advise entrepreneurs to include things like your team, and not just the team you have right now, but how you’re thinking about your team. Who are you missing that you’ll need to bring in once funding occurs?” She added, “As an investor, we want to see: how you think, how you strategize, how you’re going to bring a product to market, how you’re going to evolve, and how you’re going to pivot. All these things need to be clearly communicated in just 10 minutes.” What if you’re a late-stage startup? Kovacs advises to be aware of your financials and

Understand the Competition If one’s company is poised to enter a market, who are the other players to watch? It’s more than knowing the enemy, it’s knowing there’s an audience. As Kovacs noted, “To me, if there’s no competitor in the market, then I’m going to question if there’s really a market.” When Kovacs started her first financial technology company, the biggest competitor at the time was Excel. She quickly realized they would need to drive customers away from the familiarity of Excel and into the loving arms of automated fintech. However, she cautions against comparing one’s company to an entity overtly dominating a space. She warns, “Don’t tell me your competitor is Google if you’re just getting started. We hear statements like this all the time, ‘Well, our competitor is Amazon. We’re building the next Amazon of cannabis.’ No, because if I can call up anybody at Amazon and they’ve never heard of you, then you were not a competitor of Amazon.” Year-End 2020 // Cannabis & Tech Today

// INVESTING // Igniting The Investor Mindset

“As opposed to trying to compete against them, or pursuing an avenue where we’re both doing the same program, let’s do what we do well. Let’s focus on the investor and helping companies, and they can help and work on the other parts of the industry that they do well,” Kovacs shared. Stay Calm and Pitch On Kovacs has launched six successful businesses during her career as an entrepreneur, and she said there was one key element that kept resurfacing: Don’t lie to the investors. If you don’t know something, admit that you don’t know.

Kovacs reminds startups to be aware of where they are now, even if they have lofty ambitions for the future. “Amazon has spent billions of dollars to build Amazon. If you want to be a competitor of Amazon, then you’re going to have to spend something similar. But, you could be a threat or an opportunity for Amazon.” She added, “If they’re not covering a specific thing or they’re not doing something a certain way, then there could be an opportunity. Large companies like Amazon buy smaller companies and technologies all the time. So, I would love to 36

Cannabis & Tech Today // Year-End 2020

see how you would fit into Amazon as opposed to trying to compete against them.” Collaboration > Domination Partnerships are another, often neglected, avenue for growth and investment. If there’s an area where a partner might add knowledge, capital, or clout, it’s worth exploring a collaboration. For instance, Arcview recently announced their partnership with Women Grow. The goal is to expand their Women Investor Network by leveraging the partnership to reach more women in the cannabis space.

“When I first started fundraising, I felt like I had to have an answer to everything… I was reaching to try to answer the question in the right way, as opposed to taking a nice pause and saying something to the tune of, ‘That is a really important question. I would like to get back to you with a very succinct answer on that, as I don’t have all the information I think is important to answer that question right now. So, I want to get back to you on that. Is that okay?’ As opposed to bull****ing your way through an answer, which they’re going to know anyway.” Most importantly, Kovacs encourages perceptiveness and flexibility. Read your audience and adapt the presentation based on who’s in the room. Ultimately, this is your opportunity to own the floor and make an impact on investors. Kovacs concluded, “During a pitch, you get to take the audience on a journey. This is your time to share your expertise, show your passion, and make connections.” Whether those connections help grow your business depends largely on you. ❖

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Pending Issues Vital Legislation Has Cannabis Industry Ready To Fly By Joe Toppe

iStockphoto.com/ wildpixel

As the COVID-19 crisis persists and many industries suffer while businesses are forced to close their doors, the cannabis market is just getting started. Over the next year, legislation vital to the emerging business sector is on the docket. Key bills pending before Congress include the Marijuana Opportunity Reinvestment and Expungement Act, the SAFE Banking Act, Strengthening the Tenth Amendment Through Entrusting States Act, House Amendment 398, Further Health Extenders Act, The Compassionate Access, Research Expansion and Respect States Act, and the Regulate Marijuana Like Alcohol Act. New Jersey Sen. Cory Booker, said recently “we have seen the war on drugs be a war on people, and particularly Black, brown, and lowincome people.” In America, “Black folks are about 3.64 times more likely to be arrested for marijuana possession than their white peers, even though 38

Cannabis & Tech Today // Year-End 2020

there’s no difference in marijuana usage or selling in each state,” he said. “I introduced the Marijuana Justice Act because I wanted to move forward and talk about restorative justice.” Decriminalizing Cannabis The Marijuana Opportunity Reinvestment and Expungement Act will ensure marijuana is off the Controlled Substances Act. In turn, there will be no criminality related to manufacturing, distribution, and possession of cannabis and cannabis-derived products while also allowing interstate commerce. Even Senate Majority Leader Chuck Schumer said legalization of cannabis will be prioritized if Democrats retake the senate. Right now, the federal government will not interfere with legal state programs, but “federal illegality is the biggest hindrance to the industry reaching its full potential,” Greg Kaufman said, Chair of the Cannabis Practice at Eversheds Sutherland.

The MORE Act includes social equity aspects and leaves the regulation of cannabis to the states, he said. “In my opinion, this does the most for cannabis because we understand how different states regulate medical and recreational cannabis.” Although some adjourned early, many states have now delayed their legislative sessions to observe social distancing protocol and diminish the spread of the COVID-19 virus. Before the pandemic, a variety of cannabis policy reform bills were introduced in state legislatures around the U.S., while some key changes seemed ready for passage by March. The Rundown Bills were proposed in Virginia, Vermont, New York, Connecticut, Alabama, and Kentucky to adopt new laws to either legalize marijuana for adults, to adopt effective medical marijuana laws, or to replace possible jail time with fines for marijuana possession.

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LEGISLATIVE UPDATES:

iStockphoto.com/bortonia

• Virginia’s legislature passed — and on May 21, 2020 Gov. Ralph Northam signed — a bill to decriminalize up to an ounce of marijuana, imposing a $25 fine instead of possible jail time.

iStockphoto.com/adogslifephoto

(Left to right) Chair of the Cannabis Practice at Eversheds Sutherland Greg Kaufman; U.S. Senator Cory Booker; U.S. Senator Chuck Schumer

Oregon Representative, Earl Blumenauer, said cannabis is “almost a settled issue.” “We now have 47 states with some form of cannabis that is legal,” he said. “We have states that are voting on it this fall, and we have overwhelming support in the House of Representatives.” While new legislation is proposed to address a wide range of concerns throughout the cannabis industry, Kaufman said The Regulate Marijuana Like Alcohol Act would move us closer to federal regulation of cannabis through a permitting process under the Federal Alcohol Administration Act and transferring enforcement authority to a new version of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). “The remaining acts or amendments advance adult use and medical cannabis incrementally by

reducing the risk of federal interference with state programs and their participants,” he continued. As many industry pros place heavy emphasis on the MORE act, The SAFE Banking Act is expected by some to become the most significant piece of cannabis legislation. Kaufman told Cannabis & Tech Today the industry would benefit from having access to traditional banking and lending relationships that non-cannabis businesses enjoy. “But what will the patchwork of state regulations look like, and how will cannabis be distributed across the country,” he questioned. “What role will the federal government have in regulating the market? How will this form of legalization affect an industry that currently exists, and how will that industry change once the cloak of illegality is removed?” ❖

• In Vermont, the Senate and House passed S. 54, a bill to legalize and regulate marijuana sales (possession and cultivation were already legal). Gov. Phil Scott allowed the bill to become law without his signature Oct. 7. The legislature and governor also enacted a companion expungement bill, S. 234.

• In New York, for the second year in a row, Gov. Andrew Cuomo (D) proposed including legalization in the state’s budget. However, the budget ultimately did not include it.

• Connecticut’s governor sponsored a legalization bill for the first time in 2020. However, the legislative session was also disrupted by virus-related precautions and has adjourned.

• Alabama’s Senate and Kentucky’s House of Representatives both approved medical cannabis bills, but both were derailed by the virus.

Year-End 2020 // Cannabis & Tech Today

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u f l ly r e w

Packag ed Blending artistry

with purp ose

By Pat ricia M iller

Thoughtful, creative, iconic — these may not be the first words that come to mind when scanning labels at the dispensary. Many cannabis brands focus on compliance rather than creativity, prioritizing function over form. Is there a place for artistry on the retail shelf? Though flower is often lumped together in nondescript jars — one cultivator seldom differentiated from the rest — other products can and do distinguish themselves. Pre-rolls, vaporizers, topicals, and edibles are packaged with original designs, formulated to entice and build recognition. Sometimes however, packaging is more than marketing, it’s art. Substance and Style “I wanted the brand and packaging to have a kind of experience rooted in American culture, but also in a style and world that brings together all the things that my father loved: collecting art, photography, taking pictures, his love of all things beautiful,” noted Marin Hopper of her approach when creating Hopper Reserve. The brand was created in honor of the late 40

Cannabis & Tech Today // Year-End 2020

Dennis Hopper, iconic actor and director of such films as Easy Rider and Out of the Blue. Hopper was also an avid photographer, capturing black and white portraits of some of the greatest talents of the 1960s, including Andy Warhol, Timothy Leary, and the Grateful Dead.

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Hopper’s daughter Marin and CEO Evan Eneman brought in pop artist Alia Penner to create unique packaging that would marry Dennis Hopper’s original photography to Penner’s vibrant artwork. The result is mysterious, dynamic, 60s-inspired designs that are as alluring as they are enigmatic. “I used abstract lines and colors to bring movement and space to people, that sets this new imaginary world for them to live in and brings them back to life,” shared Penner. Hopper was a counterculture idol throughout his career, but most notably when he directed and starred in Easy Rider. The film was the embodiment of rebellion, highlighting characters who cast off the chains of convention and embraced the cultural mores of the biker, the cannabis user, and the vagabond. Their brand isn’t the first to capitalize on characters from iconic cinema. Creating Connection Belushi’s Farm has similarly embraced its connection to rebellion, launching Blues Brothers pre-rolls to eager fans just this year. The packaging depicts a silhouetted Jake and Elwood Blues, a duo beloved for their subversive attitude and disdain for authority. They’ve paired their likeness with a reggae-esque color palette to create packaging reminiscent of both cannabis and counterculture. Lord Jones is also developing their packaging as a form of art. The brand employed Werner Design Werks to create their unique logo. In an interview with The Dieline, they discussed the creative process for crafting the imagery: “Having narrowed down the essence of the brand, our design exploration was relatively

focused. We immersed ourselves in the symbolism of heraldry, coat of arms, and family crests.” They added, “Our goal was to create a package that was as luxury as the products and so beautiful and well crafted that you wouldn’t throw it away. We wanted a package you’d be proud to display on your shelf, as well as have a sensuous, tactile quality that would feel precious in the hand.” Cultural Iconography Whether it’s visual, tactile, or emotional — packaging connects the consumer to the brand. For celebrity-driven products, it’s often a cultural connection. Be it the Blues Brothers, Cheech and Chong, or Hopper’s depiction of a freewheeling motorcyclist, viewers identify with the culture these characters represent. Eneman remarked, “The brand is not Dennis Hopper. It’s not putting someone’s face on a package. It’s about what Dennis represented to society, to culture, to his contemporaries, and how that is relevant today.” For some, the appeal of artistry in packaging could surpass cultural and visual intrigue. For artistic people, merging the practical with the beautiful speaks to their creative passions. Eneman mused, “A big part of our intent for the brand is to bring out the importance of creative self-expression.” Cannabis is often credited with inspiring creativity among users, and several brands have sought to incorporate that into their messaging. Carlos Santana’s brand Mirayo invites users to “follow their light” in both their creative expression and spiritual awareness. When discussing her Etheridge Botanicals line of products, this issue’s cover star Melissa Etheridge noted, “I think creativity and plant medicine just goes hand in hand.”

Building Effective Brand Architecture Effective design is more than clarity, functionality, and information. Thoughtful package design is tied to consistent brand architecture. This architecture organizes subbrands, products, and services to help consumers access and relate to the brand. Ideally, consistent brand architecture would enable a customer to form opinions about an entire family of brands based on their interaction with only one brand (or product) in that family. For instance, if a customer loved your pre-rolls, elegant brand architecture would resonate in such a way that they would be more likely to try your other products, like edibles, tinctures, or topicals. Eneman, a serial entrepreneur with many active projects, also founded Fiorello, a cannabis branding and marketing agency. He’s seen several companies expand with varied levels of success. In his view, “who” the brand is and what they represent are vital considerations in a marketing strategy. “A big reason why a lot of brands fail is they think about the product and the marketing for the purpose of sales, rather than considering the intention of the brand itself.” He notes that repeat customers often require more than a certain quality of experience, they want to engage with the brand. “The brand architecture, the purpose behind the brand, what that brand stands for, what its brand purpose or brand mission is, is important as well.” In cannabis, founders are often passionate individuals with a strong sense of purpose. When that purpose is combined with artistic expression, customer engagement is sure to follow. ❖ Year-End 2020 // Cannabis & Tech Today

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Delivery on Demand By Sara Brittany Somerset

Many would argue 2020 has been the most stressful year in a generation. Between a polarizing U.S. presidential election, a novel coronavirus pandemic claiming more than 268,000 lives from 13.6 million reported cases (as of November 30),, the fluctuating, unreliable data, and millions of people who may be stressing out due to ongoing isolation from their loved ones due to rolling lockdowns and social distancing measures, as well as rising unemployment with no end in sight, it is understandable for Americans to have a sense of heightened anxiety and insecurity. However, one set of data that can be relied upon is that Americans are turning en masse to cannabis, and cannabis delivery, to ease their tensions during these trying times. Enter the rise of cannabis delivery companies and the ancillary services that power them. Lantern: A Light in the Darkness Lantern is an independently-operated cannabis e-commerce marketplace and delivery platform in the U.S. It is a sister brand powered by the same technology as the alcohol e-commerce platform, Drizly. With the speed and convenience of on-demand delivery, Lantern partners with local dispensaries and cannabis brands to bring transparency, safety, and access to cannabis for both new and experienced consumers through intuitive, personalized shopping experiences. Lantern’s expertise in regulated industries helps dispensaries operationalize on-demand delivery. This process allows its customers to reach new customers, tap into key consumer insights, and diversify their businesses to grow sales. According to its website, Lantern’s on-demand cannabis home-delivery platform provides legal, convenient access to cannabis dispensaries and their products for state-issued medical marijuana cardholders. The interface 42

Cannabis & Tech Today // Year-End 2020

compares various dispensaries’ product selections and pricing, enabling patients to place dispensary orders with direct fulfillment to the customer’s home. From customers who are overwhelmed with choices but want to explore cannabis with confidence, Lantern aspires to bring transparency, equity, and access to cannabis. Jane Says She’s Done with Sergio Jane is a similar online cannabis marketplace with a network of over 1,300 dispensaries in 28 states that provides online pre-ordering and

delivery. After receiving a call from one of their San Francisco dispensary partners on Friday, March 13, Jane debuted a software update that allows for curbside orders and pickup within 24 hours. This capability is effectively keeping dispensaries like Harborside, The Apothecarium, and Airfield in business and

preventing patients’ medicine and related supplies from running low. Jane Technologies, Inc. is the retail technology company that created the cannabis industry marketplace iheartjane.com, which provides consumers with a reliable and intuitive shopping experience. Users can browse local products in real-time, compare by price, proximity, popularity, and then place orders at local dispensaries for free. As people continue to shop online at increasing rates, Jane also works hand-in-hand

Socrates Rosenfeld, CEO, and co-founder of Jane Technologies

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with brands to create innovative ways to stand out to the consumer in lieu of in-person budtender recommendations, including brand modules and verified customer reviews.

Service (SaaS) company or a software

Data from over 1600 dispensaries shows the initial, significant increase to online cannabis purchasing, falling, and then leveling at a much higher rate than pre-COVID-19 times.

provide a delivery service with everything the

distribution model. A third-party provider hosts applications and makes them available to customers over the internet. Drop aims to

Gabriel agrees that delivery sales are up, industry-wide, across all demographics and specific consumer packaged goods (CPG) categories, such as edibles. She attributes these increases to the need for coping mechanisms during the pandemic.

“The future of retail has always been digital, and the pandemic only served to accelerate that. At this moment in time, we have the chance to merge technology and retail infrastructure in an entirely new way, where digitization can support brickand-mortar businesses rather than replace them,” said Socrates Rosenfeld, CEO, and co-founder of Jane Technologies. “At Jane, we’re grateful to have the opportunity to help shape the future of retail for the new digital age, where customers can shop online from local retailers with the same level of safety, convenience, and curation as when shopping on Amazon.”

“A client of ours is experiencing their average sales up 150%, compared to prepandemic sales,” says Gabriel. “Our clients show increases in their customers purchasing edibles. This uptick can be due to customers ordering items to assist with anxiety and stress from the state of the world at the moment. However, what we see that is promising is the repurchase-rate is up dramatically by 59%.” Additional sales may be attributable to the increase of at-home or off-site office environments. The average order value (AOV) tracks the median dollar amount spent every time a customer places an order on a mobile app or website. To calculate a company’s average order value, it divides the total revenue by the number of orders. According to Gabriel, Drop’s AOV rate is up by 36% compared to before the pandemic. “Customers are ordering more frequently and purchasing more items per transaction,” she says. Vanessa Gabriel, CEO and co-founder of Drop Delivery

Drop is a proprietary Software as a 44

Drop’s software provides companies with a branded e-commerce app, customizable rewards, loyalty program, SMS texting to communicate with customers, and deals designed to increase revenue. Additionally, Drop offers necessary compliance integration with the cannabis regulatory system METRC for evolving individual state regulations. Similar to other big-box delivery companies, Drop provides last-mile delivery logistics to track drivers and deliveries and a dashboard to manage everything from inventory to staff.

On a related note, Jane calculated an enormous uptick in orders on election night. The company recorded 60% higher online sales per store throughout the day, with hourly increases.

Drop it Like it’s Hot As far as how Drop Delivery stacks up to Lantern or Jane, the latter two platforms are marketplaces for cannabis consumers to discover local retailers and shop from them. According to Vanessa Gabriel, CEO and co-founder of Drop Delivery, her company is different because it provides a turnkey solution. “As an all-in-one delivery management for retailers, Drop provides our clients with the necessary software needed to run their day-to-day operations and scale their businesses.”

company could need to streamline and elevate its user experience.

Cannabis & Tech Today // Year-End 2020

As JFK once said, “A rising tide lifts all boats.” On that note, substantial evidence supports the growth potential of all three ancillary cannabis companies. ❖

Every step of the way, CTI Processing is there. CTI Processing simplifies the merchant processing relationship and all its intricacies. They help CBD-based businesses like Hempology focus on the important things; helping their customers and increasing sales.

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With competitive rates designed specifically for your business and providing you with the most up-to-date equipment, CTI Processing integrates state-of-the-art technology for a quick, easy, streamlined operation that your customers will opt to use again and again.

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info@ctiprocessing.com

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High as Hell

Considering Opportunities for the Upcoming Federal Taxation of Cannabis By Robert H. Carp, CEO Certified Cannabis Compliance Training, Inc.

he change in the presidential administration has focused cannabis businesses on the potential for legalization nationwide. Running parallel to full federal legalization will be a corresponding regulatory and taxation scheme replacing the current regime of IRC §280E which prohibits anything but the cost of goods sold being deducted from a state licensed cannabis operation’s income statement. The evolution of the federal taxation of cannabis started with the Marijuana Tax Act of 1937, which applied tax to marijuana used for medicine. Historians and critics alike maligned this legislation as an attempt to stop the use of cannabis rather than tax it. The fines were greatly out of line with any failure in tax compliance — violators were fined up to $2,000 and a potential prison sentence of up to five years, while the actual tax was merely $1 per ounce or $24 per year.

Cannabis & Tech Today // Year-End 2020

The Marijuana Tax Act was declared unconstitutional in Leary v. United States, and replaced with the Controlled Substances Act as Title II of the Comprehensive Drug Abuse Prevention and Control Act of 1970.1 Currently, the Marijuana Opportunity Reinvestment and Expungement Act of 2019 (H.R. 3884) is primed to be debated in Congress, with many cannabis insiders expecting either passage, or a short deferral to allow the new administration time to attend to other immediate priorities demanding their attention nationwide. The Terminally Flawed Marijuana Opportunity Reinvestment and Expungement Act of 2019 The Marijuana Opportunity Reinvestment and Expungement Act of 2019 (the “MORE Act”) has entered the end game of cannabis prohibition, and is externally palatable to lawmakers, cannabis producers, and most consumers. The provision for federal taxation, according to an article published by The Tax Foundation, is a “modest” five percent excise tax on marijuana sales at the manufacturer’s

iStockphoto.com/GeorgePeters

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level (emphasis added).2 This ad valorem tax (a form of taxation based on the assessed value of an item — think sales tax or real estate tax) would be imposed on manufactured cannabis as proposed in the amendment to IRC Section 5701 of the Internal Revenue Code of 1986 by “redesignating subsection (h) as subsection (i) and by inserting after subsection (g)….” which then defines “cannabis products.” Essentially, the bill defines a “cannabis product” as “any cannabis or any article which contains cannabis or any derivative thereof.” Where are the flaws in the bill? The bill has issues in its perception by the consuming public, the anticipated revenue it will produce, and the actual use of the money generated by the excise tax. Let’s examine each individually. Perception by the Consuming Public The entrenched black market for cannabis will enjoy a greater share of the market if the MORE Act passes due to the increased cost of legal marijuana. In most states where cannabis is legal for recreational use (as well as some states offering medical marijuana) there is an additional sales tax imposed either at the point of sale or during the manufacturing process. Per the IRS’s definition, “Excise taxes are often included in the price of the product.”3 If the MORE Act becomes law, unless the excise tax is imposed like alcohol and gasoline and remitted to the government by the manufacturer, consumers will balk at purchasing legal recreational cannabis, where the combined taxes may be 35% or higher. Flaws in the Expenditure Model The proposed revenue model for the MORE Act creates an “Opportunity Trust Fund,” with a distribution plan where the expenditures derived from net revenues are to be divided as follows: “(c) Expenditures—Amounts in the Trust Fund shall be available, without further appropriation, only as follows: “(1) 50% to the Attorney General to carry out section 3052(a) of part OO of the Omnibus Crime Control and Safe Streets Act of 1968. “(2) 10% to the Attorney General to carry

out section 3052(b) of part OO of the Omnibus Crime Control and Safe Streets Act of 1968. “(3) 20% to the Administrator of the Small Business Administration to carry out section 5(b)(1) of the Marijuana Opportunity Reinvestment and Expungement Act of 2019. “(4) 20% to the Administrator of the Small Business Administration to carry out section 5(b)(2) of the Marijuana Opportunity Reinvestment and Expungement Act of 2019.” The 60% total provided to the Attorney General to carry out sections 3052(a) & (b) would be used exclusively to provide funding to 501(c)(3) nonprofits providing social services such as job training and substance abuse treatments. The amendments to the legislation promulgated in H.R. 5385 under section 3052(a) and 3052(b) part OO would create the “Community Reinvestment Grant Program (CRGP),” “to provide eligible entities with funds to administer services for individuals most adversely impacted by the war on drugs,” and to provide funds for “Substance Use Treatment Services.” CRGP would be overseen by a new Department of Justice regulation unit, The Cannabis Justice Office. The remaining 40% to be expended per the legislation would be provided to the Small Business Administration, which would spend their share of the trust by funding loans to small businesses owned and controlled by “socially and economically disadvantaged individuals” working in the legal cannabis industry. The bill adopts the definition of “socially and economically disadvantaged individual” contained in Section 8(d)(3)(C) of the Small Business Act which identifies these disadvantaged individuals as “Black Americans, Hispanic Americans, Native Americans, Asian Pacific Americans, and other minorities, or any other individual found to be disadvantaged [under the Small Business Act].” Thus, there is no provision for general SBA loans to people seeking to enter the business, or any sort of government capital specifically earmarked by the SBA for loans to the general public looking

to capitalize a new cannabis business. The 60% of proposed collected excise tax is specifically earmarked for those most affected by the war on drugs, with the services available as defined above. The Lack of Any New Medical Research Concerning the Effects of Cannabis The Federal government has done very few studies on the long term consumption of cannabis due to its designation as a Schedule 1 drug with “no currently accepted medical use and high potential for abuse.” The adoption of this bill would not earmark any funds for the research necessary to understand what sort of issues may arise in the future and how best to prepare for them. Poor or Little Tax Guidance In a Final Audit Report (Audit #20180022, released March 30, 2020) prepared for the Commissioner of the Internal Revenue Service by Treasury Inspector General for Tax Administration4, the contents revealed the Treasury Inspector General for Tax Administration (“TIGTA”) had four specific findings, all of which demonstrated that both the tax structure and the mechanism for auditing and collecting further taxes was critically flawed, with little being done about it. The audit used a very narrow sampling size, but the results still provided some important insights. The Treasury Inspector: i. “…determined that 59% (140 out of 237) of the tax return filings for Tax Year 2016 had likely IRC §280E adjustments, which when projected over the population totaled $48.5 million in unassessed tax year 2016, or $242.6 million the results are forecasted for five years.” ii. The “tax impact to comply with IRC §280E… TIGTA estimated a $95 million Federal income tax impact to these taxpayers from the application of IRC §280E on their tax year 2016, or $475.1 million when forecasted over five years.” iii. TIGTA additionally found through a random sampling of returns that IRC §61 Year-End 2020 // Cannabis & Tech Today

// BUSINESS INNOVATIONS // High as Hell iStockphoto.com/Pgiam

issues were noted, with both under-reported income or non-filing of specific tax returns. iv. The final issue according to TIGTA was that “the IRS lacks guidance to taxpayers and tax professionals in the marijuana industry.” v. The implementation period of the act and the reporting requirements will generate a negative optics response by the consuming public. The tax would go into effect one year after the MORE Act is implemented. The MORE Act also directs the Bureau of Labor Statistics to regularly compile and publish a demographic survey of business owners and employees in the “cannabis industry,” including information about individuals’ age, race, sex, educational attainment, and veteran status. Unless this information is directly extracted from original documentation submitted to state licensing board’s in original applications, this is another layer that will face pushback by the business community. The Proper Model for The Federal Taxation of Cannabis The MORE Act should be revised to reflect the true state of the cannabis industry, and the potential it holds. There are a number of key issues that must be considered and implemented in order to fairly and efficiently tax the nascent cannabis industry. The proper model for federal taxation must include: i. Achieving a proper balance of taxation that will fund government mandated programs associated with the production and consumption of cannabis. ii. A tax that is established at the manufacturing level such as alcohol and tobacco (so called “sin taxes”) rather than a tax added at the retail level in order not to discourage purchases, and to help disrupt the illegal marketplace. iii. Rather than an ad valorem tax which will plateau quickly, and provide a falling revenue curve due to a drop in prices because of increased production, the taxation of cannabis should be done on a “specific taxation” basis like alcohol and gasoline, but on the actual THC level in the 48

Cannabis & Tech Today // Year-End 2020

product. For example, the current tax on alcohol is approximately $13.50 per gallon, or $2.67 per 750 milliliter bottle. The tax is added at the manufacturing level, not at the retail level in order not to give the purchases sticker shock when viewing the receipt, and to provide a wholesale formula that is easier to track for the producer. This method provides for a consistent, defined purchase price allowing the consumer to easily compare prices. iv. In order to increase the legal market and hamper illegal operations, the taxation should be done at different levels for different products utilizing the specific taxation model, so consumers can also be guided toward lower levels of consumption thereby avoiding larger scale payments of funds for “externalities,” which are the issues that arise from the consumption of a product and require use of the collected funds. A parallel externality would be the use of cigarette taxes to help combat underage smoking by creating

advertising campaigns. v. The government should ensure that cannabis taxation is indexed (unlike alcohol taxes) to prevent the effects of inflation reducing the spending power of the money collected. Preparing the IRS for the Collection of Cannabis Taxes The TIGTA report should be used as a preliminary blueprint for the taxation, education, and compliance necessary for the cannabis industry. The report highlights the majority of tax returns submitted to the IRS have mistakes totaling millions of dollars in underpayment of taxes. Is the issue strictly a lack of knowledge in the preparation of tax returns for Schedule I substances? The answer is a resounding no. Despite the data from 2016, it is important to note that almost all cannabis companies use CPA’s or other tax professionals to help document and prepare their state and federal tax returns. On the federal level per 26 U.S. Code § 6662 ,

// BUSINESS INNOVATIONS // High as Hell

rapid growth and collection of taxes, along with a steep decline in prices that will create the descending part of the graphed collections (unless demand offsets cost). The estimated tax revenue derived from legalized cannabis is going to be large, but will not impact the overall economy. The Washington Post has utilized a report from New Frontier Data, that states “legalizing marijuana would create at least $132 billion in tax revenue… in the next decade.” This number, although substantial, pales in comparison to other sources of taxes collected by the federal government.

iStockphoto.com/malerapaso

there is an accuracy-related penalty of 20% of the underpayment assessed against the tax return preparer. In 2016, there were any number of tax professionals involved in the preparation of cannabis licensed businesses, but according to the Treasury the returns were almost 60% of the time prepared incorrectly, subjecting these preparers to fines, and other sanctions. Given these statistics, the taxation and collection of cannabis-based taxes upon the presumed overturning of the illegality of the plant should be modified to prevent the current issues. The IRS should be creating substantial documentation for both the taxpayer and the tax preparer in the form of guidance bulletins, tax forums, video instructions, and taped seminars. All of these are currently in use by the IRS under their website for “IRS Training and Communication Tools for Tax Professionals.” The proper method of taxation, accompanied by the proper tax remittance by the manufacturer as opposed to the retailer, will help reduce the illicit marketplace by avoiding

consumer perception of onerous taxes placed on cannabis to prevent consumption. It will also spur the creation of different forms of ingestible recreational cannabis, to help reduce the price for consumer acceptance based on lower levels of THC in the saleable product. Estimated Tax Revenue of Federally Legal Cannabis According to the Institute on Taxation and Economic Policy, “state and local excise collections on retail cannabis sales surpassed $1 billion for the first time in 2018.”5 This rapid growth is aligned with the acceptance of medical and recreational cannabis, and the efforts states are putting in to help discourage purchasing cannabis from unlicensed and untaxed sources. The report also points out that in both Colorado and Nevada, “the cannabis excise taxes already rival total excise tax revenues collected from all forms of alcohol including beer, wine, and liquor.” The estimated tax revenue is going to be a bell-shaped curve due to its original acceptance,

Conclusion When recreational cannabis is legalized and taxed, additional issues must be sorted out to create a robust, well-regulated industry. Once legalized, as a consumable, it will also be regulated by the FDA along with existing government agencies that already have responsibility for monitoring workplace safety, employee safety, etc. The large number of licensed facilities will help shape the business law, but the application of the taxation scheme will come from trained professionals in the IRS. It is incumbent that they are provided proper documentation, training, guidance manuals, and peer review to ensure across the board application of the rules. The actual form of taxation recommended, “the specific taxation” model, may be too difficult to integrate into different state revenue models that already use a flat excise tax based on weight. However, rather than look for the immediate solution, it is imperative the federal government and the legislators who craft tax policy understand the business model for licensed cannabis production, and understand the expected decline in prices upon the anticipated federal legalization of cannabis. ❖

1. http://www.druglibrary.org/schaffer/hemp/taxact/mjtaxact.htm. “The Marihuana Tax Act of 1937”, introduction by David Solomon. 2. https://taxfoundation.org/recreational-marijuana-tax/. “A Road Map to Recreational Marijuana Taxation” by Ulrik Boesen, June 9, 2020. 3. https://www.irs.gov/businesses/small-businesses-self-employed/excise-tax. 4. https://www.treasury.gov/tigta/auditreports/2020reports/202030017_oa_highlights.html “Treasury Inspector General for Tax Administration - The Growth of the Marijuana Industry Warrants Increased Tax Compliance Efforts and Additional Guidance”. 5. https://itep.org/taxing-cannabis/?gclid=CjwKCAiA2O39BRBjEiwApB2Ikgwa-zWMsVIbtLTaeNeRdJL2rv1KiMpN7OeoQtaxihtEGW_ Ve8XeLhoCC5IQAvD_BwE. “Taxing Cannabis”, by Carl Davis, Misha Hill and Richard Phillips, January 23, 2019. 50

Cannabis & Tech Today // Year-End 2020

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// BUSINESS INNOVATIONS // BROUGHT TO YOU BY POLYSCIENCE

Why is temperature control important to the cannabis industry?

Ask the Expert

When it comes to extraction, the name of the game is purity. For the ultimate in cannabis product, short-path distillation is what the extraction industry turns to for the best possible results. Distillation, chromatography, and re-distilling the product for purification can remove a lot of inactive compounds that serve no therapeutic purpose. It takes sophisticated, highly-calibrated components to allow companies to reach the level of purity that short-path distillation can obtain. While there are many factors that go into creating quality product in the cannabis industry, temperature control is one that is at the top of the list. At PolyScience, we have been 52

Cannabis & Tech Today // Year-End 2020

working in temperature control for 60 years and if you have a few hours, we are happy to tell you all about it.

measures when it comes to temperature control, but it’s a recipe for disaster and low-quality product.

Instead, we reached out to President of Summit Industries Elliot Kremerman to discuss the need for quality temperature control in the cannabis distillation process. Kremerman and the team from Summit are the industry leaders that others turn to for advice when it comes to short path distillation. He shares how Polyscience equipment works in tandem with his processes.

“People are actually out there using ‘stills,’ like the moonshiners used to use. The still model of distillation can result in a low-quality product as well as a dangerous work environment. Open boiling can lead to flammable and explosive chemicals in the air, which can lead to explosions. The proper tools and temperature control can keep your lab safe and functioning effectively,” he noted.

Safety First. You can’t have a great product if you aren’t safe. How does proper temperature control and safety come into play? As Kremerman explains, there are those who don’t take the proper

Quality goes way beyond the plant. Why is temperature control important to quality? There are many variables that go into producing a quality product, Kremerman says being able to control as many of those variables

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as you can is the difference between success and failure. Kremerman recalls: “A couple years ago, manufacturers were not aware how clean you can make a product. In the process of distillation and even in chromatography and redistilling the product for purification, we can remove a lot of the inactive compounds that serve no therapeutic purpose. “When you’re consuming dirty cannabis, there are parts of it that are therapeutic and then there are parts that are dissolved — like fats, waxes, proteins, or even bad flavor. You can remove the dissolved parts and create a flavorless product that’s very high in purity and actually clean and safe to consume.” Summit didn’t get here alone. It takes sophisticated, highly-calibrated components to allow them to reach the level of purity that they are obtaining. This is where the highlyspecialized team of temperature control experts at Polyscience comes in. What happens to the quality if temperature control isn’t precise? Precision is vital in every step of distillation. Kremerman explains: “You have a lot of heat and you have a lot of cooling, if those parameters are off you can be selecting different molecules or you could be having clogs in the system or you can be damaging your pumps. “People often complain about a darkness in extracts, or a foul odor or taste. This can all be due to degradation. Oxidation can cause

product to go from a lighter yellow to a darker yellow. You’re just distilling in a glass or stainless-steel apparatus with extracts that are hydrocarbon.” He continued, “Once you’re getting to distillate and to oils that have been further purified, winterized, evaporated, and distilled, you should be getting a nice color because you’re eliminating a lot of the fats and lipids. If you’re vaporizing or frosting the extract in order to decarboxylate and consume it, you’re consuming a carcinogen. Fats and lipids turn into something that’s bad for your lungs. “None of the equipment we manufacture would be able to operate at precision performance and exact temperature control without PolyScience chillers.” What about cheaper options for equipment, does it matter? Kremerman offers this explanation as to why quality is their primary concern: “A lot of our customers like PolyScience chillers because they’ll install them and they’ll run nonstop every day, versus a chiller imported from Germany or China, where if a part fails you almost always have to wait for someone to come and repair it or deliver a part from overseas.” He continued: “The quality is really important to our customers because they know that if they purchase a product, they’re paying a premium for an American-made product. But, that quality will ensure that their machines will run every single day.”

Why don’t you manufacture your own chillers? The Summit team are experts because they aren’t trying to overextend themselves. Kremerman shared his philosophy: “I focus on what I do best and rely on the experts to help make me and my company put out the best possible product. There are companies that make their own chillers out there or private label very unreliable products from China. “They may be more affordable, but as we have been talking about, they can be dangerous, won’t hold constant temperature, and are poorly made. PolyScience has been in business for 60 years, they are made in America, and when we do need help we call their office in Chicago and get an expert on the line.” Kremerman concluded: “When it comes to precise and reliable equipment, PolyScience is a leader in quality, which is key because precision is what counts the most.” Summit uses PolyScience chillers in their distillation process. Kremerman touts them as “the heaviest-duty chillers you can get.” He proudly claims customers can use PolyScience chillers for years before having to recharge and if there is a (rarely heard of) issue, PolyScience takes care of it the same day. If you are interested in how PolyScience or Summit Industries can help you, please visit www.polyscience.com or www.summitresearch.tech. ❖ Year-End 2020 // Cannabis & Tech Today

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Freedom, Representation, and Reform

The industry’s most engaged industry activists share why they’re passionate and how you can help. Compiled by Taylor McLamb

iStockphoto.com/MicroStockHub

At our recent Emerge Virtual Cannabis Conference & Expo, transformative thinkers and innovators voiced their insight on diversity, expungement, and prison reform to hundreds of eager virtual attendees. The event hosted several prominent speakers from the industry, boasting a powerhouse assembly of cannabis enthusiasts. Hemp and cannabis culture is all about community; it’s a space where everyone deserves representation. As the demand for 54

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cannabis continues to grow, many revolutionary leaders within the industry, including Andrew DeAngelo, Wanda James, Steve DeAngelo, and others have been fighting for change within the hemp space to better reflect the inclusive nature of the plant.

Wanda James James is the CEO of Simply Pure and the first African American woman to own a dispensary in Colorado.

On why James transitioned from working in politics with President Obama to becoming a successful cannabis entrepreneur: “When I met my brother and I discovered the grave injustice that was done to him, 10 years with a prison sentence, four years picking cotton, to buy his freedom for having possessed less than four ounces of weed. That to me, was an American failure on a grand scale when I found out that it wasn’t just my brother, but

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engineering issues, has built bridges all over the world. And yet, she puts something very small in her resume, like, ‘I had 70 projects,’ instead of all of that which she does…we have got to stop being humble and we have got to want to brag about ourselves and what we do… “I just want women to really feel comfortable in discussing what it is that they do, because I promise you ladies, the competition, the men on the other side have listed everything that they have ever done. Every committee that they’ve ever sat on, every idea that they’ve ever had, it’s in their resume.” 800,000 people a year. And when you find out those kinds of statistics and it hits your family, then that political policy becomes very personal to you. “I’m tough as nails. So whatever you throw at me, we can do it, thank you military. I understand business, thank you Fortune 50 companies for giving me outstanding business training. And politics, thank you for giving me the passion to be able to fight for policies that change people’s lives and that hopefully, no other 17-year-old black boy ever has to pick 100 pounds of cotton a day to purchase his freedom in America.” James reflected on her time serving on a transition team for Governor Polis, where she looked at over 300 resumes of highly-qualified men and women who all wanted to work for the governor’s cabinet. While conducting interviews for the position, she came across a fascinating discovery: “Men do a really great job of building themselves up to be there for the competition. And then you have this amazing woman that has a Ph.D. and has solved all types of civil

Towards the end of her session, James offered some memorable advice to women entrepreneurs:

fights to release incarcerated individuals for cannabis offenses, as well as record relief and expungement. DeAngelo shared the origin of the Last Prisoner Project and his involvement in activism. He gave credit to his brother, Steve, for the vision of LPP: “When we opened Harborside, we launched a program where patients could write letters to cannabis prisoners and get free medicine in exchange for that. We began our connection from the legal industry to our brothers and sisters in prison with that program. “Then about a year and a half ago, Steve was hit with a thunderbolt when he was in a conference room with a lot of high-net-worth individuals talking about starting publiclytraded cannabis companies worth hundreds of millions, if not billions of dollars, basically doing the same thing that all of our friends and family members had gotten busted for previously. It felt really, profoundly wrong that we had a legal industry where people were selling a lot more cannabis, manufacturing, and distributing

“Don’t be fearful, always be cautious, look at all the things around you, but don’t let fear be the reason why you don’t grab the brass ring. If there is something that you believe you can do, and there’s something you believe you want to do, it is imperative you take that step and you do it… “Figure out what you’ve got to do, one step at a time. The journey of a thousand miles starts with one step. So take that one step. It will lead you to the next step that leads you to your next step. And then 10 years from now, you’ll be sitting here at the Emerge Conference, having great conversations with wonderful female entrepreneurs. And that’s what it’s all about at the end of the day.”

Andrew DeAngelo Co-Founder of the Last Prisoner Project, DeAngelo also founded cannabis retailer Harborside alongside his brother, Steve DeAngelo. The Last Prisoner Project is a cannabis criminal justice nonprofit that Year-End 2020 // Cannabis & Tech Today

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businesses and giving them that support, and that is a huge, huge change. That is very important because that’s really what starts to push around the dollar and create support structures for minorities. It becomes lip service if we say to do all these things but then we don’t actually move money through these communities.

[more] than folks who are currently serving hard time in prison. Steve felt like we needed to do something about that, so that was the inspiration for the Last Prisoner Project.” After spending decades fighting for cannabis justice, DeAngelo shared how the state of activism has changed for the better and what he’s learned from the newer generation of activists: “What’s happened in the last couple of years with these activists is, I’ve realized the connection between... how much we have in common and how much my privilege protected me in that same trade, where everybody else did not have that protection. It’s really opened my mind. “We always had this commitment to freeing our brothers and sisters in prison. It didn’t matter what color your skin is, we always had that commitment. But, what I’ve learned from these activists is, it’s not enough to have commitment. You have to have law, the power of law behind some of this. Until it is mandated that we create equity, until it is mandated that we create ownership, our work is not done. That’s why, not just with LPP, but I donate a certain amount of my time to social equity too, because it’s our obligation, it’s that moral imperative we’ve been talking about. Just right now, I really feel it in every cell of my being — that moral imperative.”

June Johnson Johnson is the social media and events manager at Sava, a women-owned cannabis delivery company out of San Francisco. In the panel, Johnson discussed what steps retailers can take to become a more inclusive environment: “I think one important thing to realize is typically when you create a business, it’s out of a personal pain point, and I think that’s really important as a foundation of a business. But, I think how you keep a business successful is you start to think of other people’s pain points and address those in your business needs. So, much to both of their points, you want to make a space that’s inviting. 56

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“When I go into a lot of dispensaries it’s all male budtenders and I don’t feel comfortable asking them from a personal preference of what they could recommend for menstrual cramps because typically they can’t answer that. So it’s really important to be inclusive in the levels of who is behind the counter, who is picking out the products… so that all the products can reach all aspects of your audience and not just a niche demographic.” Johnson pointed out the historic political climate we’re living in and how initiating a dialogue about minorities in retail is crucial for the cannabis industry, now more than ever: “I mean, look at everything that’s going on, just from a news standpoint, a historical standpoint. It’s time for change… We talk about having representation, budtenders and stuff like that, and I want to expand beyond just male/ female, gender-nonconforming. We have a lot of ableist structure in our society, so it’s really important to see everyone. Then how you move the dollar for communities, for minority communities is, you buy their products, you support them. So not only do we want to see people who look like us in the dispensaries, at the delivery places that we choose to spend our money with, but it’s also important that you’re buying products from minority-owned

“I think also this industry has not only fiduciary responsibility but a moral responsibility to repair the harm from the war on drugs. Black and brown people literally carved out this entire industry for the most part and are sitting in jail for it, while we have dispensaries that — well, in design, look like Apple stores, and there is an imbalance with that. So there is very much a need for this industry to repair that, and to inject money, causes, time, getting records expunged, getting people out of jail, and creating opportunities for those who have been in prison for these offenses while the country is now moving forward to a different direction. So I think that’s really important.”

Steve DeAngelo DeAngelo is co-founder of Harborside, The Last Prisoner Project, Steep Hill Inc. (the first commercial cannabis lab in the country), and Arcview (the first cannabis investment firm). DeAngelo praises the cannabis community’s ability to adapt to these trying times and the desire to constantly evolve into a more welcoming environment: “What we’ve seen is an emphasis on equity, on making sure that people who get to participate in the industry come from communities that have been most affected by the war on cannabis, by the war on drugs. We’ve seen it in efforts like the organization I founded a year ago, Last Prisoner Project, which has a very simple mission of making sure that as we build this industry around the world, that every single cannabis prisoner, no matter where they are, is released. And they have a chance to come home and rebuild the lives that were stolen from them.

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clean of the industrial poisons that have been poured on by the ton loads, by the thousands of ton loads all around the planet. And as we do these things, we mitigate the climate change that’s threatening to end life as we know it on this planet. “And what about the effects of these kinds of changes as more and more people use cannabis around the world as legalization spreads? As patients extend, as creativity is sparked, as the whole planet becomes closer to nature and more open resolving conflicts more peacefully. That’s the kind of future that we can be moving towards.”

Jim Belushi And again, you always have to keep your eye on the ball. It’s always moving in cannabis. It’s always changing. It’s going to be that way for the rest of our lives. “As we have had success, moving legalization across the country and across the world, we have begun to take a look at what kind of industry we are creating and asking ourselves what it’s going to take to not just create a new industry, but to create a new kind of industry that breaks the mold and sets a better example for all other industries to follow.” When thinking about the future of the cannabis industry, DeAngelo recited a quote from rocker Patti Smith: “I don’t mess much with the past, but I mess plenty with the future.” DeAngelo stressed that the future of cannabis isn’t too far away and the versatile properties of the hemp plant could help save the world: “These things are not in the future. These things are here. These technologies are now. They await only our imaginations, our hands, our will. And many of you I 58

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know have already started that process, started that process of crafting the new world that we all know needs to come. And as we do that, as we plant more hemp, we sequester fantastic amounts of carbon just by growing cannabis. And then as we’re sequestering those tons and tons of carbon, we are also remediating the soil that the cannabis is being grown in, sucking it

Belushi has a new reality show airing on Discovery, Growing Belushi, which dives deep into his thriving cannabis farm. As an advisor for the Last Prisoner Project, Belushi talked about his gateway into activism, and how advocates like Steve DeAngelo continue to inspire him: “There are 40,000 people incarcerated for cannabis in the United States alone. While we’re

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headway in Michigan. The State’s Attorney’s office is now on it, and they’re writing a letter to the governor. Maybe we get Michael out. But it’s called Last Prisoner Project because Steve said, “We’re not stopping until the last prisoner is released.” And he’s just so inspirational. I find his inspiration as a leader just beautiful.”

iStockphoto.com/wildpixel

out here selling it and making TV shows about it, they’re in prison. Michael Thompson’s in prison in Michigan for three pounds. He was sentenced to 40 to 60 years. He served 24 years at this point. His family collapsed, destroyed — for three pounds. And now he’s got COVID[-19], and he’s in the hospital. “But Steve [DeAngelo] and Mary [Bailey] and the Last Prisoner Project have made some

Belushi shared an analogy that compared his body to a rowdy apartment building. When the cannabinoids enter into the endocannabinoid system, they calm the body’s “rowdy tenants” so the rest of the body can relax. Belushi hopes that his reality show can help end the stigma of cannabis and show it for what it really is – medicine: “There are regular working people who need medicine. I mean, I believe that the traumas that are caused in our lifetime aren’t just the veterans who witnessed horrific things. But it’s the collapse of a family. When a family collapses, it’s

trauma. Families collapse because of alcoholism, death in a family like mine, my brother John. Tragic deaths, car accidents, sickness, somebody who’s very sick with epilepsy or Alzheimer’s. Losing a job, which is going on right now. There is trauma going on right now. Losing a home. “All these traumas create a screaming inside of us that we try to manage. And those poor people on the streets of Portland in that homeless district, they lost their management. They scream out loud on the streets. And I think if I could just get them an edible, maybe it’ll stop the screaming, and maybe the healing can begin. “So I really believe we all are screaming from something. I’ve had a few traumas in my life, and when anything triggers them, CBD slows it down. But I believe people reach for alcohol. I’m not against drinking. Believe me, I have a beer, whiskey once in a while. But too much alcohol or medicine, it could be Xanax, it could be Ambien. Those kinds of things just cause so much havoc in the body. Why not reach for cannabis? It’s gentle. It’s beautiful. It’s generous. It’s healing. It doesn’t leave you hungover. It doesn’t complicate things.” ❖

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Finding a Path Forward Understanding Floridaâ&#x20AC;&#x2122;s Medical Marijuana Landscape

Cannabis & Tech Today // Year-End 2020

Section compiled by Patricia Miller

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ighly regulated, suspicious, and litigious could describe the nascent medical cannabis industry in Florida. Developing the groundwork for a new industry is never easy, but Florida has taken a particularly difficult path to implementation. Since voters approved the Florida Medical Marijuana Legalization Initiative (Amendment 2) in 2016, only 22 licenses have been granted to grow, transport, and sell medical cannabis. Cannabis Director for the Florida Department of Agriculture and Consumer Services (FDACS) Holly Bell said, “When you’re writing these laws, using ‘shall,’ ‘may,’ ‘and,’ ‘or,’ are very important, I’ve learned.” She’s referring to the original wording used in Amendment 2, which stated licensees could grow or transport or sell. When the legislators signed the amendment into law, they wrote the bill using different verbiage — simply replacing the “or” with an “and.” The result is a vertically-integrated cannabis landscape in which license holders are tasked with every step of the process from seed to sale. Vertical integration limits free enterprise, restricting competition and creating an oligopoly in the hands of a few licensed operators. Initially, only five people were granted licenses. A move which drew criticism from many, including Republican state Senator Jeff Brandes, who remarked, “Does this set up a state-sanctioned drug cartel, which is what it is? Yes, it does. You’re basically mandating that five families get wealthy.” There are now 22 licensees, only about half are operational. The inoperative half are waiting to sell their license to the highest bidder. And bids are high. Nature’s Way Nursery of

iStockphoto.com/Kimberly Delaney

Miami sold their license to Acreage Holdings Inc. for a staggering $67 million in January of 2019. It’s unclear why there are so few licensees. There are many barriers to entry for applicants, such as oddly specific criteria to even apply. For instance, the state requires $60,000 in non-refundable application fees, the applicant must prove they can grow at least 400,000 plants, and demonstrate they’ve been in continuous operation for at least 30 years. Winners were selected by a board appointed directly by then Governor Rick Scott. According to Bell, the application process is “extensive, thousand-page applications that cost millions of dollars to put together.” Though many minority applicants applied, none were selected. Alarmingly, many winners have no qualifications in cannabis cultivation, science, medicine, or growing plants for human consumption, while several have ties to Florida legislators. While there is much room for concern, the fact remains legal medical cannabis is now accessible to millions of Floridians. It’s expected to be the fifth largest market in the country, with Arcview Market Research estimating a potential $1.1 billion in retail cannabis sales by 2022. Despite the rocky rollout and opportunities for corruption, there is still money to be made and many companies operating who are genuinely seeking to help patients find relief. In this Tech Zone, Cannabis & Tech Today will speak with some of the industry’s leading businesses to discover how the state of Florida is helping (and sometimes hindering) the growth of medical cannabis, and how Florida can make its cannabis space transparent and efficient for patients and providers alike.

Year-End 2020 // Cannabis & Tech Today

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Pioneering a New Landscape How Total Grow Control Continues to Innovate During COVID-19 By Monica Stockbridge For the cultivator looking to achieve the highest efficiency, most consistent yields, and most predictable revenue results, this year has been a real challenge to say the least. “It’s a new landscape with COVID-19,” says Derek Oxford, CEO and Founder of Total Grow Control, an engineering and manufacturing company that builds reliable nutrient delivery systems and water filtration solutions. Like many companies serving the cannabis industry, Total Grow Control thrives on in-person relationships and traditional sales processes. Hence, social distancing dealt a heavy blow. Yet, Total Grow Control (TGC) adapted. They changed how they managed vendors and how they set up the manufacturing facility. What’s more, all TGC’s latest systems have built-in cameras. “This way, growers can continue to monitor critical functions even when they’re offsite,” Oxford says.

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We asked the rest of TGC’s leadership team about the challenges facing the industry today, and how they’re putting their heads together to bring new solutions to the table.

helping to design and implement our systems to adapt to new and improved growth methods. We have worked in many commercial and industrial applications, and it’s exciting to be able to bring that experience to the cannabis industry.

What is the greatest challenge in the cannabis industry right now? Alan Waldheim, President/Co-Founder: Right now, the biggest challenge is trying to keep production moving forward with today’s “new normal.” With the current COVID-19 pandemic, our suppliers are having issues keeping up with demand, which in turn affects our industry-leading turnaround for delivering products to our customers. Bob Pullar, CFO: One of the primary challenges growers face is building and managing an infrastructure that can support the industry’s rapid growth. One of the pillars of that infrastructure is people. From craft to largescale, maintaining a strong skill-base among crop management personnel is significant, especially where it involves proper procedures and technology.

Cannabis & Tech Today // Year-End 2020

Tavo Gutierrez, Chief Development Officer: The biggest challenges in our industry are lack of consistency in aroma, texture, taste, potency and the general experience. The end-user needs to be able to know what to expect time and again. Great value is when the customer knows what to expect for the price they are paying — regardless of the pandemic. How can industry leaders help growers succeed? AW: We believe we are one of the top of our industry at working with our customers in

BP: TGC is working on a “fertigation as a service” solution that will help growers move expensive technology purchases off the balance sheet and on to the P&L. This offers visibility into the true cost of goods for each strain or plant, giving them predictable expenses monthto-month. TG: We at TGC are designing and manufacturing systems that give consistency to the plants during all the stages of growth, such as water, nutrients, light, CO2, and ventilation. The end product should not be affected if the plants don’t get water at the planned time, due to COVID-19 or otherwise. We’re also creating online platforms to better interact with prospects and customers since we can’t do that in person right now. ❖

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Solving the Humidity Problem Florida growers need solutions for drying damp buds.

Tom’s Tumbler CEO Tom Bruggemann

Hot, balmy weather is Florida’s claim to fame. It’s the only state in the union where pool towels mildew while hanging on the line to dry. This perpetual moisture is a challenge for Florida cultivators. While humidity can be great during the growth cycle, it’s an obstacle during the drying, trimming, and curing process — all of which are crucial to creating high-quality medical products. There are fewer than 22 licensed cultivators providing cannabis to the entire state. These large-scale operations need to dry, trim, and cure quickly to start the next crop. Machine trimmers are often the preferred method, except they function best with dry flower — which is a challenge in 70-90% humidity. Some innovators use carbon dioxide (CO2) as a remedy. “CO2 just flash freezes the outside of the buds so the sugar leaves get brittle and can trim really efficiently,” shared Leslie ClarkeBruggemann, chief operating officer for Tom’s Tumbler. The company developed a CO2 infusion adapter kit for their trimmers in early 2019. Tom’s Tumbler Trimmers are used all over the world, operating in diverse climates. Customers were asking for a solution, a gentle trimmer that would work with moist flower. The CO2 kit was 64

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an affordable option, quickly fitting onto existing Tom’s Tumbler Trimmers for an easy conversion. Customization and affordability have been core principles for Tom’s Tumbler since they were founded in 2013. CEO and President Tom Bruggemann cultivated cannabis for more than 25 years and wanted his machines to be affordable and easy to alter. “[Bruggemann] recognizes every strain is unique and nobody knows the flower better than the grower. He gave [growers] the flexibility to tweak the angle and the meshes and the motor speed for their buds,” shared Clarke-Bruggeman. Now, they can also adapt machines for wet or dry trim. The use of CO2 for the removal of moisture is a process often used in commercial food preservation. In one study titled: “Drying of foods using supercritical carbon dioxide — investigations with a carrot,” author Z.K. Brown, used X-ray microtomography and light microscopy to examine carrots that had been air-dried versus those that had been dried using CO2. Brown noted, “Drying is a common unit operation in food processing, but the rehydrated product is often of very poor quality.” He concluded, “Samples dried in [CO2]... displayed

more favourable rehydrated textural properties than air-dried equivalents.” In other words, CO2 drying may actually preserve buds more effectively than air drying. Using both CO2 and bladeless trimming preserves trichomes, resulting in a more valuable final product. Tom’s Tumblers are one of the few bladeless options on the market. Clarke-Bruggeman explained, “Our machines use soft mesh net, so the trichomes and crystals are preserved in the process.” Medical cannabis in particular should be rich in terpenes. Tikun Olam, an international medical cannabis company, is one of Tom’s Tumbler’s most notable clients. The company operates all over the globe, with one of their larger facilities located just outside of Los Angeles. Tikun Olam uses the same equipment at their medical research headquarters in Israel as they do in California. In so doing, Tikun Olam Chief Marketing Officer Stephen Gardner noted, “we can provide our patients with the same level of consistency and continuity that we use for all our research, studies, and products that we’re developing in Israel.” For Florida’s cannabis community, consistent products will translate to a healthier market for both growers and consumers. ❖

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Creating a Crop Portfolio Optimize your ROI with data analytics. Medical marijuana has only been legal in Florida since 2016. Though it’s a new industry, there are still guidelines for success. The core principles of running a profitable business still apply to every vertical of the industry. Farmers especially should have standard operating procedures in place and a system for recording data. Most growers understand the benefit of tracking their crops. A journal or whiteboard is the preferred data collection for many, especially smaller farms. Ryan Moloney, CEO of Alef Agriculture in Michigan, shared this advice with the Cannabis Business Times: “Diligently record the variables and points of measurement during every grow. After the run has been harvested, analyze this data to see what it tells you. Use this data to refine your processes for the next run.” But as scale increases, whiteboards become cluttered and valuable ROI is often left on the grow floor. This is where smart system management becomes essential. Cannabis cultivation management platforms are emerging as game changers for growers. It’s a recurring theme in Cannabis & Tech Today, finding automated solutions to take the guesswork out of monotonous tasks. Data processing is vital if a cultivator wants to spend their time managing people and plants rather than numbers and metrics.

in the least amount of time, sell for the most per pound, and sell out the fastest. “Your goal should be to consistently get the best return on those four measurements.” FolioGrow President Brett He continued, “When you nail FolioGrow President Strauss saw farmers struggling to Brett Strauss that down, that is your most analyze their operations and profitable strain and should make up the bulk of developed software to streamline the process. your canopy.” “When you have all of this data available to you Strauss looks at strains like stocks, and in realtime, rather than a bunch of spreadsheets mirrored FolioGrow software around the that are always out of date, you can start making concept of a stock portfolio. His strategy is to better financial decisions — like which strains give growers as much information as possible are most profitable to you,” he said. about their crop, allowing them to “analyze the According to Strauss, there are four key math of their grow” in real time. measurements for assessing the profitability of a strain: which have the highest yield, harvest Central to the software is establishing standard 66

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operating procedures. Owners create templates to guide their team; staff then tracks how those procedures were performed and when, logging each step on their phone or tablet. “It creates a trackable system for ensuring every task gets done the way you want it at the time it’s needed, and creates a trail of these actions. With that, you can do a postmortem on the process itself and then improve on it,” noted Strauss. The system integrates with METRC and several third-party apps to create a compliant data ecosystem for growers. Once Florida decides on a seed-to-sale provider, a quality cannabis cultivation management platform should ensure a smooth integration with any state-selected compliance software. ❖

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Extracting Value Automation and cloud networking streamline production for Florida’s cultivators. With $7 billion, you could buy the Buckingham Palace seven times. Or you could own the majority of the global cannabis extraction market in 2019, worth a whopping $7.3 billion according to Grand View Research (GVR). The extract market is exploding, with GVR predicting a compound annual growth rate of 16.6% from 2020-2027. New Frontier Data Senior Economist Beau Whitney discussed data trends in an interview with the Financial Post, noting “If you look to the U.S., it was not uncommon to see 75% of the market consuming cannabis flower years ago, but as product offerings became more differentiated, we saw the market for flower drop to around 40% and the market for oils surge to over 60%.” As interest in extractions grows with the rise of infused products (think beverages, topicals, and edibles), Florida farmers will have to consider bringing in more automation to meet demand. According to NASA’s preferred automation tool provider and data analyst ThinkAutomation, companies using automation for mission-critical processes rose from 16% to 50% between 2017 and 2019. Automation is particularly helpful when working in highly-regulated industries, like cannabis. For example, the state of Florida holds all hemp products to food-grade quality standards. Processors and extractors must have a Hemp Food Establishment Permit and equipment must meet state compliance requirements. With strict quality protocols like these, automation can reduce operator error and contamination potential. Engineering and technology company Entexs Corporation started offering their extraction solutions earlier this year. Entexs CEO Ali Rashid feels strongly about automation’s potential to streamline the extraction sector. “Automated systems reduce the number of operators required in the lab as well as the number of times the product is exposed to the environment. This means lower labor costs, more stable production yields, and more 68

Cannabis & Tech Today // Year-End 2020

From top left to bottom right: The Entexs Mini, Midi, Maxi, Midi Mobile, and Maxi Mobile extraction units.

consistent product quality,” noted Rashid. Though automated extraction isn’t a new science, it is undergoing constant innovation. Entexs’ machines, for example, are programmable. This allows operators to program recurring routines, minimizing operator involvement. “With feedback from sensors embedded in the system, the machine takes care of the minor adjustments necessary to achieve consistent results,” Rashid shared. Medical markets are especially in need of highly consistent extractions. One unique aspect of the Florida growers ecosystem is there are few manufacturers supplying a large volume of patients. For processors who are pulled in too many directions, a cloud network can provide realtime and trend monitoring for the entire extraction process. This is especially helpful for Entexs customers, who can take advantage of standalone or mobile extraction systems.

Whether extraction is taking place in the lab or in the field, operators have around-the-clock monitoring solutions from the palm of their hands. This gives owners freedom and flexibility while optimizing efficiency. Network solutions are also helpful for ensuring transparency if using a toll service provider. One potential concern with automation is troubleshooting and repairs. When it’s time to process, there’s little time for delays. It’s important to work with an extraction services provider who prioritizes the customer experience. Rashid said this is an area to pay close attention to, as a lack of communication can be costly for extractors. He noted, “Entexs systems and modules are designed from the ground up to work as a cohesive system, minimizing operator requirements and ensuring product quality. We go out of our way to over communicate with our customers, providing the support and access they need to keep their business running.” ❖

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Managing the Patient Experience What does it take to obtain a medical cannabis certification in the state of Florida? Rather than a trip to a doctor’s office for a prescription, medical cannabis patients often face a gauntlet of regulation before they can begin treatment. Simplifying the Struggle Patients first have to prove residency within the state via a picture ID. Which is easy enough, unless the patient doesn’t drive or is a seasonal resident. In which case, they must provide an in-state deed or lease agreement, a utility bill, or mail from a federal agency addressed to their local place of residence. They then have to pay a $75 processing fee to the state to obtain their Medical Marijuana Use Registry Identification Card, which has to be renewed each year. Then the patient has to be certified by a physician every seven months. Any patient seeking medical cannabis must have at least one of ten qualifying conditions, such as cancer, HIV/AIDS, multiple sclerosis, or epilepsy. As one might imagine, keeping up with the certifications and fees required can be a challenge for someone suffering from a debilitating illness. CEO and Founder of My Florida Green Nick Garulay recognized this problem and became one of the first Medical Marijauna Certification Centers to open in Florida. He saw an opportunity to use technology to facilitate a faster, more navigable system for patients to connect with doctors.

My Florida Green CEO Nick Garulay

40, have never used cannabis, and have been indoctrinated by decades of stigma. Once they’ve opened their minds to accepting cannabis as a treatment, many struggle to find reputable, medically-focused resources where they can learn about their medicine. This is where Garulay’s platform adds an extra dimension. “We make sure our clients understand the basics, the foundation of cannabis, and the differences between THC and CBD,” he noted.

Garulay describes My Florida Green as a patient management platform, which “manages the relationship to the patient, the education for the patient, as well as scheduling with the doctor, and setting reminders for recertifications and documentation.”

My Florida Green’s educational videos cover topics ranging from delivery methods to understanding the endocannabinoid system. Each video provides an overview of the topic, educating without overwhelming viewers. The intention is not to create experts, but to give patients enough information so they can communicate effectively with their doctors.

Understanding the Medicine Most of Garulay’s clients are over the age of

Enabling Alternatives Many terminally ill patients suffer from more

Cannabis & Tech Today // Year-End 2020

than the symptoms of their disease. Side effects and adverse reactions to pharmaceutical medications are all too common, with doctors forced to treat symptoms caused by pills with more pills. This pharmaceutical snowball effect can be costly, damaging to the liver, and unsustainable for the patient. For many, medical cannabis is one of the most exciting alternatives to pharmaceuticals. With few, if any, side effects and overwhelmingly positive case studies citing relief from pain, nausea, sleeplessness, or anxiety, the therapeutic potential of the plant is high. It’s yet another reason Garulay feels My Florida Green is about more than convenience, and aims to take the platform nationwide. “I’m on a mission to change the healthcare system. It’s broken, and my ultimate goal is to disrupt it. If I have to do that with medical marijuana, proving that it can be used as an alternative to dangerous synthetic medicines, then I’m honored to be part of that.” ❖

// TECH ZONE // Presented By:

Cannabinoids and Carcinogens Innovations in Testing Spur a Safety Revolution in Sunshine State

When California first passed Proposition 64 legalizing recreational cannabis, voters waited in eager anticipation for natural, quality products to purchase. What they found instead was 84.3% of sampled cannabis tested positive for pesticide residue. The research, conducted by Steep Hill Labs, Inc., further concluded that 65% of cannabis samples submitted to their lab contained Myclobutanil, a pesticide that when smoked or vaporized is converted to Hydrogen Cyanide. As the name suggests, the chemical is extremely toxic for humans to ingest. Discoveries like these underscore the importance of lab testing requirements for cannabis operators. Be it medical or recreational, knowing what’s inside these products is essential for creating trust in the industry. As cannabis takes baby steps on its way to federal legalization, cannabis brands and consumers need a better means to identify which products have been tested for safety. Florida testing facility ACS Laboratory has some potential solutions. In addition to the standard certificate of analysis, the team is working to develop a seal of approval for 72

Cannabis & Tech Today // Year-End 2020

cannabis products. While still in development, the seal may one day serve as a valuable signal of quality for brands and consumers. Masha Belinson, head of corporate development for ACS Laboratory noted, “We intentionally did not create the seal with ACS on it. This is not about us. This is about creating a level of transparency and trust within the consumer.” Building trust with the consumer is foundational in ACS Laboratory’s mission. They’ve received Emerald Badges 21 times, which is an inter-laboratory comparison and proficiency test awarded twice a year. It’s a wellrecognized quality indicator for labs across the U.S. They are also CLIA licensed, which allows them to conduct human trials and perform pharmacokinetic studies. While many labs test for common cannabinoids, ACS tests for several unique compounds. They’re one of few labs offering testing for Delta 8 THCV, EXO-THC (found in synthetic THC), flavonoids, and polycyclic aromatic hydrocarbons (PAHs). This last category is especially important in 2020. PAHs are chemicals formed from burning wood or other materials like garbage, oil, or coal.

California, Colorado, Oregon, and several other states have battled record-breaking wildfires this year and the air is rife with PAH particles. These can easily seep into a grower’s water, soil, or nutrients and are extremely dangerous for humans to consume. Currently, there are no mandatory tests for PAH carcinogens. To ensure the safety of consumers and maintain the reputation of their clients, ACS offered a free PAH test with a full panel to farmers in California and Oregon for the entire month of November. It’s a commitment to safety and wellness that’s helping build a more reputable industry. Customers today are receiving safer products than they were just a few years ago thanks to regulatory oversight and advanced testing techniques. As with any industry, it takes time and research to create safety protocols. Pesticides are a prime example. They’ve been tested as food safe, but the need to test their safety when combusted and inhaled was a revelation. While cannabis safety has a long way to go, dedicated labs, regulators, and farmers will ultimately shape the industry into one that’s safe, transparent, and trustworthy. ❖

// COVER STORY //

Cannabis & Tech Today // Year-End 2020

// COVER STORY //

Come to My (Zoom) Window

From live-streaming content to launching her own cannabis line, Melissa Etheridge knows how to pivot during a pandemic. By Patricia Miller Photos by Lauren Dukoff Few singer-songwriters have known such commercial success as Melissa Etheridge. Her decades-spanning career earned numerous awards and accolades while building a cult-like following of fans. She’s topped the charts with hits like “I’m the Only One” and “Come to My Window,” while staying true to her unique style and powerhouse vocals. Etheridge’s activism on behalf of gay rights, breast cancer awareness, and medical marijuana have further cemented her status as an icon and innovator. Now, she’s continuing her legacy of activism with the Etheridge Foundation. The non-profit was established in honor of her son Beckett Cypher, who passed away in early 2020 as a result of an opioid addiction. The foundation aims to find new ways to understand and treat underlying mental health issues associated with addiction and to help those suffering find relief. Cannabis & Tech Today spoke with Etheridge via video conference, in traditional 2020 style, to learn how she’s keeping connected with her fans while touring is on hold. In this exclusive interview, she shares her thoughts on technology, cannabis, and creativity — both as outlets for her grief and her passion. She joins us from her home studio in Los Angeles, California. Cannabis & Tech Today: After your son passed, you hosted a Heal M.E. concert in his honor as a way of healing and connecting with your fans. You’ve since launched Etheridge TV, a streaming platform offering hand-selected content, ranging from original songs to guest appearances to video screenings. What inspired you to offer five nights of weekly content to your fans? Melissa Etheridge: One, it keeps my wife and I very busy and we like to be busy. We like to feel like we’re creating something and helping people and ourselves. And we were looking at a year of no income. So how do we make income? I have always believed if you entertain people, if you give them something they want to see and you delight them and they look forward to seeing you, then you can monetize that. That’s what we’ve done so far and we’re doing okay. C&T Today: Is it unusual to connect with your fans in such an unfiltered, raw way? ME: When the lockdown first happened in March and I started doing free shows — every day I would just do three or four songs, and I saw what people were liking and how they got involved, and I started thinking then. And then when my son died, we took a Year-End 2020 // Cannabis & Tech Today

// COVER STORY // Come to My (Zoom) Window

“ I think creativity and plant medicine just goes hand in hand.”

couple of weeks off and built this garage streaming studio out here. I thought, if I take this a step further, if I make this more professional and I give these people a variety of shows, both my own stuff and then a whole day of covers, and then a couple of more chat-like fun things, a nice variety, then they’ll subscribe and keep checking in and tell others. So that was our whole thought. It’s really unique and different. We have our Wednesday chat show — like today, we’ve got Billie Jean King on and we’re talking. We’ve had some great artists. I think the number one thing that people really vibrate with is, we’re certainly not about pandering, but we’re not about cynicism and we’re about lifting people up in a real way, in a truthful way. We’re not acting like, “Oh, everything’s fine,” but it’s just about lifting ourselves up and finding the answers inside ourselves and moving on and empowerment. C&T Today: It seems like you’ve really embraced technology as a way to connect with your audience. I imagine there have been some major challenges while adapting to perform that way. What have been some of your biggest hurdles? ME: From the Facebook shows we did, the concerts from home, we did 58 of those. It was 76

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everything from — I started out just filming on a phone, just singing in front of the phone and the phone would fall down [laughs], or not understanding, “Oh, I need to turn it sideways.” Just all sorts of stuff, to now we have seven cameras. We’ve got a professional switching system into a platform. We had to learn about streaming, which evidently we’re on the cutting edge, because sometimes we ask a question and we say, “Okay, we’ve got three cameras hooked up to this. And they’re like, wait, you’ve hooked up three cameras?” We’re the first ones doing this. So we’ve actually been working with some tech people, Silicon Valley people, to create what we need. Being on the edge, sometimes everything crashes. Every now and then it’ll just be like, “We can’t get on today.” It’s happening less and less the more we understand how we can push the cameras, what we can get out of streaming. I have to tell you, the hardest part is that my neighborhood has the worst internet in the world. I mean, we’ve been trying to get it upgraded here for months, and that’s out of my control. The neighborhood here is like, “No, we don’t want any towers!” Which I understand, it’s a very fancy neighborhood, but come on, give me something better. I have the worst internet. So we’re doing our best with the worst.

C&T Today: In addition to Etheridge TV, you’re also launching Etheridge Botanicals. What inspired you to create your own line of cannabis products? ME: It was 16 years ago. I was diagnosed with breast cancer and was put on a dose-dense regimen of chemo, which is horrific, which was awful. I had been a social smoker, I was not a drinker so much. I started saying, well, I like unwinding this way, but I had never thought about it medicinally. When I went through breast cancer and started using it to relieve the pain, to get an appetite, to relieve the depression, to help me sleep, to help me just feel normal, I realized, “Wow, this is medicinal.” This is better than all the handful of pills that they said “You can take this for the pain, but it will cause constipation. And then you have to take that and then…” Wow, what a horrible load of chemicals and I’m already awash in a chemical acid wash — that’s what chemo is. Having gone through that process using cannabis, I came out on the other end thinking, “Oh my gosh, this really needs to be available to anyone who wants it as an alternative, in so many ways.” This is 16 years ago, before medicinal cannabis. If you could find it, you could use it. Of course, I knew a roadie who knew a roadie who knew a guy who I could get

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“ We want to provide a pathway to those who are looking for alternatives to the things that aren’t working for them.”

they keep coming back to, that is consistent, that helps them in the way that they’re looking to be helped. I’ve built Etheridge Botanicals. I’m involved from the seed to sale. I know exactly what’s going on. The specialists that I work with, Jozee and Cricket Roberto, they’ve done this for years. They’ve worked in botanicals and nutraceutical medicine. I’ve worked out formulas with them. This is not just a name on a brand, and I have to take the long road to proving that to people. They have to see it for themselves, and I’m prepared for that.

my cannabis from. That was basically what it was 16 years ago. And I said, this has to change. So I started becoming an advocate and looking around in California where people were doing it legally and I ended up in Santa Cruz. That’s where Etheridge Botanicals is based. The city and the county have been just incredible. They really understand cannabis and how it can help. C&T Today: How will Etheridge Botanicals stand out from other artist-driven brands? ME: The difference is this brand comes from me. I had dozens of opportunities to make a licensing deal with some company or other, and then they’d go make it and it would just have my name on it. That’s what most of the celebrity brands are, “Yeah, you can use my name,” and then they don’t really become involved. They don’t do any work for it. In the end, if the product isn’t any good and it doesn’t connect with the people, it’s not going to work. That’s the thing about cannabis, you need to have a product that people not only like, but 78

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C&T Today: Something I’ve heard you touch on is you wanted Etheridge Botanicals to make cannabis accessible for people who hadn’t tried it before, particularly women. What would you like first time users to understand when considering cannabis as a supplement? ME: Yes, definitely, especially middle-aged women who have so many uses, I believe, for cannabis. One is sleep and anxiety. So many of us turn to, at the deep end, to Ambien, and at the other end, just a couple of glasses of wine, which both can become, over time, detrimental to the physical body. So much of Etheridge Botanicals is in research and development, research, research, research, research into how cannabis can help and how much. The thing about it is, we’ve grown used to, “Okay, take two aspirin, take one Tylenol, here’s the pill, one pill does this to everybody,” That’s not how cannabis works. You have a bit of your own responsibility to determine, “Okay, this is what helps me sleep.” For most people, a nice heavy indica and you’re falling asleep. Some people have the

opposite reaction. There’s a bit of a customization to the medicine. With Etheridge Botanicals, we will provide help with that, from our website to informing budtenders, to the information, research, and data on how to find what is working. “Eight out of 10 women say this helps with menopause, hot flashes,” or whatever it might be. We’re going to touch the subjects that other people don’t. I walk into dispensaries and there are a lot of young, cool, hip people, but to some middle-aged women, it’s scary. We want to provide a pathway to those who are looking for alternatives to the things that aren’t working for them. C&T Today: How does the plant play a role in your creativity — or maybe it’s more about healing for you? ME: Oh, no, no, no. There’s the healing, my nice indica that I use in the evening. But boy, when I’m ready to create something or when I’m ready to play some great music, a good sparkly, tangerine sativa just lights up the creative parts of my brain and I just want to create. So absolutely, I think creativity and plant medicine just goes hand in hand. I think that part of our brain is wired to work with plants. I think that’s the way humans and plants connect. C&T Today: What have you found most surprising about the legalized cannabis industry in the United States? ME: That it’s a mess [laughs]. What do I find surprising? I find that a lot of people are positive and really want to move this forward. It’s a great tax revenue for our state. It helps counties and it helps education and our justice system. It was designed that way. There’s also just a lot of misinformation and fear that I wish we could overcome, but that just takes time. C&T Today: What does the future hold for Etheridge Botanicals? Do you have plans for expanding beyond California? ME: Oh definitely, definitely. We are rolling it out in California first, getting a solid setting there. I spent years trying to get people to jump on the wagon with just a dream and I’m looking forward to actually having real numbers they can see, products they can see. Once we do that in California, then we can start rolling this out in other states. Someday that glorious federal legalization will come and then we’ll be the Johnson & Johnson of cannabis. ❖

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// HEALTH+WELLNESS //

Science, Soccer, and CBD Former pro soccer player Rachael Rapinoe shares the origins of her CBD company, Mendi. By Alex Moersen

The Rapinoe sisters have become synonymous with soccer. While Megan Rapinoe has played on the international stage, Rachael Rapinoe has played on every side of the ball as both a professional player and trainer, and has expanded her efforts off the field as an entrepreneur. After winning an NCAA national championship with the University of Portland in 2005 and subsequently playing professional soccer in Europe, Rapinoe eventually retired to pursue a career in the health and fitness industry.

O’Cannabiz in 2021. In this exclusive interview, we discuss with Rachael Rapinoe how Mendi got started, why science is so vital to their products, and how the company is focusing on the needs of athletes.

She went on to build Rapinoe SC, a top soccer performance training company and lifestyle apparel brand with her sister Megan. However, in the last several years, Rachael’s interest in how cannabis can help in athletic recovery and performance has grown tremendously, leading her to build Mendi, a CBD brand with athletes in mind. Now, she’s becoming a leader in the cannabis space, even keynoting at

Rachael Rapinoe: It’s been a newer discovery in my adulthood, but I’m a science geek. For undergrad, I got my biology degree, and I got my Masters of Science in Health and Exercise. So I’ve definitely always been interested in health and wellness and exercise, and particularly the role that recovery plays in performance, both with elite and everyday athletes…

Cannabis & Tech Today // Year-End 2020

Cannabis & Tech Today: How did your relationship with CBD begin? Is this something you’ve been interested in throughout your sports career or has this been a new discovery for you?

My sister plays at the highest level. I’ve just been watching her, her teammates, and our friends compete — and watching the journey and the science over the last decade about recovery and about the things that athletes put in their bodies. Then, I would say about five or six years ago, I started using cannabis myself and I was introduced to it by other athletes that I trusted. Going through the self-discovery process with the plant, it was quite eye opening and obviously it made me reflect a lot on all the meds that I took and the ways that I tried to manage pain during my playing days. If only I had known about hemp and the power of CBD, but also just cannabis in general and all the other cannabinoids, I think it would have dramatically changed the course of my career. So it was that self discovery process, and then my entrepreneurial brain looked at the market

// HEALTH+WELLNESS //

and saw that there was a real opportunity to be the trusted sports CBD brand in this space. Then Mendi was started. C&T Today: You mentioned you earned your Masters of Science in Health and Exercise. Were you able to use your science background as you were forming Mendi? RR: Oh, absolutely. All of our products are backed by science. All of our formulations are proprietary blends and we use not only cannabis, but other whole plant elements to formulate the products from the ground up to specifically meet the needs of athletes. That absolutely plays a role because I know what types of supplements or minerals or vitamins athletes need to take as a recovery tool. But then, as an everyday tool, I’m a huge believer in supplements, and I’ve done a lot of research, and I’ve taken them for years. I’ve been a big advocate for athletes to be using supplements. And so cannabis, at least the hemp plant, is another supplement that you can take every day to feed your endocannabinoid system and help you stay more balanced. I geeked out pretty hard on the science behind it.

C&T Today: With so many CBD and cannabis brands in circulation, what is Mendi’s strategy for standing out? From that marketing perspective, how are you targeting athletes specifically? RR: Our strategy from day one has been twofold. One, lead with a very clear and consistent brand voice. And number two is to use high profile athletes to convey the message because, as you know, the FDA doesn’t have any rules and regulations, so you have to be very careful with what you say about your products and how you educate consumers. We wanted to bypass those hoops by using athletes. As soon as we came to market, we came to market with Megan [Rapinoe] and Sue [Bird]. We immediately signed two NWSL teams coming off the women’s World Cup. We used athletes and we will continue to use athletes. We are an athlete-focused brand and it’s our mission to improve athletes’ lives using nature’s best tools. We want to make sure we service our network of professional athletes and every pro league and team that we can, and leverage their influence and their credibility.

C&T Today: You’ve mentioned the importance of building a trusted brand. How do you see Mendi’s role in the fight against CBD stigma and misinformation? RR: I think number one, people need to stop marketing CBD as a magical elixir, because it’s not snake oil and it’s not going to cure all things. I think that it’s really important to point to the science and to point to testimonials. You’re not hearing people say it’s curing cancer, but by and large, you are hearing people say, “I feel more balanced. I’m getting great sleep. When I use this topical on my knee, I’m getting relief within one to two days.” That’s what you’re hearing. We wanted to keep the integrity of the plant alive by telling an honest story, and the honest story is that cannabis is a wonderful daily supplement and analgesic. But it’s subtle; it’s not just going to cure everything. It’s part of the reason why a lot of people are leery of hemp, CBD specifically, because they expect it to cure all of their aches and pains. That’s just not necessarily the case, but it can do wonders in conjunction with other healthy daily regimens. Year-End 2020 // Cannabis & Tech Today

// HEALTH+WELLNESS // Science, Soccer, and CBD

“ I think the number one thing is, as an athlete, you learn how to fail. That’s so important. You can’t go into business being afraid to fail because you are going to fail.”

Number two, being transparent. If we say that something has 500 milligrams of CBD in it, we actually mean that it has 500 milligrams of CBD in it. I think there have been way too many incidences of falsely marketed dosages and ingredients, and that needs to stop. Part of that’s because the FDA doesn’t have any rules and regulations. It’s kind of been like the wild, wild west. We’re really excited for some regulations to be implemented because I think it will wean out some of the bad eggs. C&T Today: Have there been any lessons that you learned on the soccer field that you’ve been able to apply to your entrepreneurial endeavors? RR: Definitely. I think the number one thing is, as an athlete, you learn how to fail. That’s so important. You can’t go into business being afraid to fail because you are going to fail. You’re going to make mistakes. You know, there are so 82

Cannabis & Tech Today // Year-End 2020

many things that I would’ve done differently this year. You can’t dwell on it. You have to ultimately stay true to your mission and your vision and be comfortable failing and be comfortable being nimble and flexible because you just never know what’s going to happen. I could’ve never imagined 2020 panning out this way. And if I was inflexible and super fearful and failing, I’d be paralyzed by now, you know? C&T Today: Looking at the athletes you work with and your executive team, was it important for you to champion female leadership and diversity into Mendi? RR: Definitely. We were a company from the beginning that was always going to champion equity and equality first over anything. And the cannabis industry and the history of oppression and [the industry] being built on the backs of Black and brown people; that all goes hand in hand. Absolutely this industry needs to be much

more inclusive. We need to keep the integrity of it intact. You know, I’m a female, I’m gay, my sister’s gay, we came to market during the women’s World Cup and hedged our bets on women’s soccer and women’s basketball. I’ve been wanting to show that you can invest in women. This is a formula that works. You can absolutely come to market as a new company with high-profile, female athletes. Invest in them first and they can help you build a successful brand. Unfortunately, there isn’t equal investment in male and female athletes and male and female sports. I think a lot of more established, mature companies are worried that they’re not going to get there with the ROI, but you absolutely can if you’re doing it the right way. ❖ To read our full interview with Rachael Rapinoe, visit cannatechtoday.com/rachael-rapinoe

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Minor Cannabinoids Front and Center Could lesser-known cannabinoids be the future of cannabis? By Rachelle Gordon

The cannabis plant is extremely complex and nuanced. With a dizzying amount of active ingredients — including over 200 cannabinoids — it’s hard to imagine the majority of the legal market is comprised of products containing THC, CBD, or a combination of those two alone. But so-called “lesser-known cannabinoids” are beginning to emerge as research and development on the plant itself grows along with the industry. Cannabinoids such as CBN, CBG, and THC-A have been making their way into retail in a variety of forms, and interest in the potential of cannabis beyond the current status quo is rising fast. Could these lesser-known cannabinoids be the future of the marijuana marketplace? Cannabis & Tech Today aims to find out. Rare Cannabinoids Such As Delta-8 Already Making Waves While psychoactive delta-9tetrahydrocannabinol (aka THC) and it’s hemp-derived non-psychoactive counterpart cannabidiol (CBD) may be the dominant forces in the legal cannabis market (as well as the most prominent within the plant itself), other cannabinoids have entered the spotlight. One such compound rising through the ranks is delta-8-THC, a far less psychoactive analog of THC touted for its “antiemetic, anxiolytic, appetite-stimulating, analgesic, and neuroprotective properties,” according to the National Cancer Institute. The cannabinoid has become popular thanks to its mildly calming effects as well as its relative ease of access. Vape cartridges, dabs, and edibles containing hemp-derived delta-8-THC are readily available across the country and online. “Some of the rarer cannabinoids are more accessible; people might be more inclined to try 84

Cannabis & Tech Today // Year-End 2020

Dr. Matthew Elmes Photo: Jon Lohne

a delta-8 vape pen for the first time because it may cause less anxiety or have a less overwhelming psychoactive effect compared to regular delta-9-THC,” explained Harry Resin, chief science officer of Gold Drop, an Oakland, California-based cannabis extraction brand with a catalog featuring distillate and live resin vape pens as well as THC-A crystalline. Dr. Matt Elmes, an endocannabinoid system expert, biochemist, and director of scientific affairs for the vertically-integrated cannabis company CannaCraft, agrees. “Delta-8-THC is sort of like a ‘THC-light,’” he told Cannabis & Tech Today. “It behaves almost exactly like delta-9-THC in most respects but has roughly half the affinity for our brain’s CB1 receptors. This results in a much milder high that many people find to be more enjoyable and compatible with their daily lives.” Other Lesser-Known Cannabinoids Gaining Steam Delta-8 isn’t the only minor cannabinoid finding its way to the consumer. Here are some of the others cementing their spots in the market:

THC-A THC-A, the mildly psychoactive precursor to Delta-9 THC in non-decarboxylated cannabis, has become increasingly popular in several states. This is thanks in part to the compound’s perceived wellness abilities, with anecdotal evidence showing it to be effective at treating nausea, muscle spasms, and seizures. When heated, the cannabinoid is converted to delta-9-THC. THC-V Known best as an appetite suppressant (unlike its cousin THC, which tends to increase appetite), THC-V — short for tetrahydrocannabivarin — may also reduce some of the potential side-effects of its infamous relative. The cannabinoid has also been found to have analgesic and anti-inflammatory abilities. CBN Cannabinol (CBN) was among the first cannabinoids identified by scientists, but there is still limited research on the compound compared with THC and CBD. CBN has been identified as having several potential therapeutic uses, including as an anti-bacterial, antiinflammatory, a neuroprotectant, and a treatment for glaucoma. The cannabinoid is often found in products marketed toward aiding sleep, but the jury is still out as to whether it’s the ideal ingredient for the job. CBG This rare cannabinoid shares some of the same characteristics as the others listed above, including acting as an anti-inflammatory, stress reducer, anti-nausea, and pain reliever. It has also shown promise as a treatment for conditions like Crohn’s and colitis. It comprises less than one percent of cannabinoid content in most strains and is therefore considered one of the most sought-after minor cannabinoids.

// THE LAB //

Many companies are starting to embrace lesser cannabinoids in their formulations, offering higher percentages of CBG, CBN, and THC-V.

Lesser-known Cannabinoids Appeal To Wider Demographics And Help Segment Brands The addition of rare cannabinoids and unique formulations is all but certain to move the cannabis industry into the mainstream, especially as more benefits are revealed. “I think the minor cannabinoids will play a more prominent role in the coming years as consumers discover what personally works for them and become more sophisticated about what products and formulations they’re looking for,” predicted Elmes. “This is particularly true for the wellness market, as those consumers have all kinds of diverse needs and aren’t simply trying to get the ‘most stoned for their buck’ like some of the more recreationalfocused customers.” Cannabinoids are predicted to be a serious disruptor to the pharmaceutical industry as demand for alternatives to powerful prescription drugs increases. A recent analysis anticipates the global market for cannabinoid-based therapies will balloon to a value of $50 billion by 2029. According to Gold Drop’s Resin, developing distinct blends targeted toward certain

experiences or conditions will also help set companies apart as the battle for brand recognition intensifies. “It creates an intellectual property that belongs to each individual brand and product that is formulated,” he explained. “This is something that will become more and more important over time as cannabis legalization expands as they also create an individual brand identifier.” Are Lesser-Known Cannabinoids The Future Of Cannabis? When asked if the relatives of THC and CBD held the key to the cannabis market of tomorrow, Elmes and Resin both agreed the two star cannabinoids will remain a dominant force but only time will tell what the future truly holds as R&D continues and the population evolves to understand how these compounds could positively impact their lives. “There’s so much we still don’t know about cannabis and sometimes we need to rely on anecdotal experience to drive formulations,” Elmes stated, pointing to CannaCraft family brand Care By Design’s study of medical cannabis patients in Israel as an inspiration for their own line. “Consumers are, of course, actively influencing the market by selecting the

cannabis products with ingredients that work best for their own experiences. However, good producers can also use consumer experience to proactively drive their formulations.” Over at Gold Drop, the team is working with a group who is developing a cutting-edge cannabinoid unlike anything currently available, something Resin believes will revolutionize the industry. “We are assisting with R&D on a THC acetate, which is a super new cannabinoid that offers lots of benefits such as appetite promotion and pain relief. It’s an extremely potent cannabinoid where a little goes a long way, making it a dosable product with many applications.” The relatively high cost of producing minorcannabinoid based products at scale make compounds like THC acetate so attractive, Resin further noted. Whether THC-A or CBG will be found alongside conventional treatments like aspirin or ibuprofen remains to be seen, but based on the current financial projections and increasing interest in alternative wellness, these compounds are definitely here to stay. ❖ Year-End 2020 // Cannabis & Tech Today

// PRODUCT REVOLUTION // TOP 25 MOST INNOVATIVE PRODUCTS

HempLab Inc. CompleTest – This is the first in-house hemp/cannabis testing device using fluorescent spectroscopy to deliver lab-quality results in under 20 minutes. It only requires 100 mg of biomass per test and gives results as low as .1% for both CBD and THC. The seamless interface is simple and easy to operate, removing the human error normally associated with portable testing devices. The device is available in two models: Desktop and Portable. Call for pricing.

Potency Testing Plus T-Check – How potent is your butter? Tired of guessing at doses? With the tCheck Potency Testing Plus bundle, the power is in your hands. Give yourself the gift of lab-grade accuracy for both THC and CBD. Use the accompanying app to check your potency on the go, or get the expansion kit to test flower, concentrates, and more. Base model $280 / Expansion Kit $200

The Armoire by Green Goddess Supply – Fast, easy, discreet growing is every connoisseur’s dream. With the Armoire, your dreams are a reality. The furnitureinspired design allows you to grow anywhere in your home. A no-smell carbon scrubber and quiet filtration system provide odorless, quiet operation that needs just minutes a day to maintain. Plus, 90-days of complimentary concierge support ensures your grow is as easy as it is stylish. Cherry and Barn Board Finishes $1,395 / Moderne Black $1,595 Green Vault Systems Precision Batcher – This batcher is designed specifically for the unique qualities of cannabis and is accurate to .01g. Rather than vibration, the Precision Batcher uses patented Air Kush Technology to move flower. Whether it’s a gram or seven, fill up to 1000 packages an hour while saving money on overpack and labor. Intuitive, precision packaging has never been so easy. $145,000

ExtractCraft EtOH Pro – Ready to make pure, potent oils and concentrates from home? With a gallon of capacity and just three hours of processing time, this heavy-duty ethanol recovery appliance reclaims 98% of alcohol for re-use and is easy to use for the novice or the expert. Offer your friends and family something truly special this holiday season with homemade extracts from the heart. $1,999

Cannabis & Tech Today // Year-End 2020

TOP 25 MOST INNOVATIVE PRODUCTS // PRODUCT REVOLUTION //

Natoli Engineering NP-250 – Now available in three versions, the NP-250 tablet press is fully customizable. Each unit has a three-point gravity feeder, a clutchless variable frequency drive design, and adjustable punch penetration. With options up to 1,000 tablets per minute, adjustable operating pressures, and variable sizing, this powerhouse press has every angle covered. Ask about their upgrade options, like a force-feeder, a tablet reject chute, and more. Starting at $67,500 Cookies x G Pen Connect – If you’re tired of getting burned by your dab rig, you’ll love the G Pen Connect. This flameless vaporizer attaches to any glass-on-glass water piece to deliver high-density vapor without a torch and nail. A ceramic heating element with three adjustable temperature settings creates the perfect draw for every user’s preference. Connect with your concentrates at home or on the go thanks to the included hemp travel pouch. $170

Goodekind Notorious CBG Crumble – This one-of-a-kind crumble is the perfect topper for your bowl or as a stand-alone dab. If you’re looking for a euphoric, cerebral experience without the THC, this 100% hemp, all-organic CBG is just what the doctor ordered. Enjoy subtle notes of clove, black pepper, and eucalyptus while you relax with a notoriously satisfying concentrate. $40/1g

The Puffco Peak Pro – Puffco’s update to their 2018 Peak is loaded with new features and functions. Wireless Qi charging, autosleep functionality, and real-time temperature control offer a new level of convenience and efficiency. Easily customize heat and LED settings and enable stealth or lantern mode through a Bluetooth-enabled app. With a 40% larger chamber and double the water capacity, the new Peak is truly a Pro experience. $400

Double Happiness by My Bud Vase – Elegant, regal, and discreet, the Double Happiness water pipe is sure to impress. Stash it on a shelf when the in-laws are in town, or wow your friends with it’s timeless blue-and-white china pattern and large bubble bowl. This porcelain, double-handed vase will never go out of style. Artificial magnolia arrangement included. $200

Year-End 2020 // Cannabis & Tech Today

// PRODUCT REVOLUTION // TOP 25 MOST INNOVATIVE PRODUCTS Willie’s Remedy Hemp-Infused Tea – True to Willie Nelson’s unique style, these finely-crafted teas will relax your mind and refresh your palette. Infused with organically-grown, fullspectrum hemp extract from American farms, Willie’s Remedy is also eco friendly. Their innovative pyramid tea bags are free from chemicals and plastic, plus they’re completely biodegradable. Now available in five unique flavors. $26

Eminent’s Education Program: Fundamentals of Cannabis Science (Online) – This engaging program is designed to give budtenders and industry professionals the tools to advise and guide consumers on how to successfully incorporate cannabis into their lifestyle. Packaged in easy to digest video lessons complete with assessments, learning games, and instructor guidance, Eminent’s courses offer a comprehensive approach to learning. Courses range from $40-100.

Omura Series X – Using proprietary heat-not-burn technology, the Series X preserves terpenes and cannabinoids for a true full-spectrum experience. Every Series X comes with a pack of 12 Flowersticks, perfectly dosed with .17 grams of whole flower. Never worry about having too much or too little, precision dosing allows users to layer their Flowersticks and achieve the perfect experience every time. Available in gunmetal, savanna, sand, and rose. $100 Spherex Phyx THC-infused Sparkling Water – Why not unwind with a zero-calorie THC treat? Create an elegant non-alcoholic cocktail or savor on its own, there’s no wrong way to enjoy a Phyx. Feel the effects in just 10 minutes and time your exit perfectly, knowing you’ll be feeling fine in one hour’s time. Available in Grapefruit, Lime, All Natural, and Dragon Fruit flavors. $6/bottle

Ripple QuickSticks by Stillwater – Don’t wait for relief. Open a precision-dosed pack of Ripple powder and pour straight onto your tongue for a consistent, fast-acting experience. Whether you’re seeking a blend of THC and CBD, or a straight dose of either, Ripple has a QuickStick for you. These single-serving packs are perfect for unwinding, pain management, or just a discreet boost. Now available in Gingerberry, Blueberry Pom, and Mint Chocolate. $18-25

Cannabis & Tech Today // Year-End 2020

TOP 25 MOST INNOVATIVE PRODUCTS // PRODUCT REVOLUTION //

GRAV Clear Menorah – Hanukkah celebrates the miracle of a splash of oil lasting for eight nights, so why not rejoice with eight bowls? Each 10mm triple-punch bowl feeds into one bubbler chamber. An angled mouthpiece allows you to clear the whole chamber at once so you’re as lit as the Menorah during your festival of lights. Limited holiday availability. $400

LUFT Duo Air Purifier – Did you run over a skunk? Don’t let your car smell like a hotbox. With the LUFT Duo air purifier, your car will smell as fresh and clean as the day you bought it. With a 360-degree air intake and a patented nano-reactor, the Duo creates a chemical reaction using UV LED light, breaking down mold, bacteria, odors, and toxic chemicals. Smoke doesn’t stand a chance against this USB-powered purifier. $149

RiO Makeover by Stache Products – Dab on the go with this portable vaporizer experience. The RiO’s built-in butane torch evenly heats a 14mm male quartz banger with just the click of a button. The RiO kit comes with a dab tool, carb cap, two silicone plugs for traveling, plus a padded carrying case. $250

Zion Medicinals Spagyric Hemp Oil – This unique blend takes the extraction process a step further, refining and recombining mineral salts from leftover plant material using spagyric alchemy. The result is an organic, American-sourced hemp extract blended with coconut MCT oil to deliver a powerfully potent tincture. Available in 250mg, 500mg, 750mg, and 1500mg varieties. $50-225

The Cannabis Apothecary by Laurie Wolf – Finally, a comprehensive resource for understanding cannabis and incorporating it into our lives. For the cannacurious or the cannaconnoisseur, this in-depth and beautifully illustrated guide has everything one might need to know about the versatile plant. From describing the role of the endocannabinoid system to creating your own extracts, Laurie Wolf’s invaluable book is a must have for the cannabis lover in your life. $35

Year-End 2020 // Cannabis & Tech Today

// PRODUCT REVOLUTION // TOP 25 MOST INNOVATIVE PRODUCTS Care by Design Soft Gels – For Californians who prefer full-spectrum products while avoiding higher levels of THC, these 40:1 CBD-to-THC soft gels are just what the doctor ordered — now with 25% more cannabinoids, including CBDa and THCa. $90. Care By Design Hemp is available nationally in a variety of formulations, including Rest, Uplift, Calm, and Balanced. $65.

CBD Calming Chews by Paw CBD – These veterinarianformulated chews were awarded “Dog Calming Product of the Year” by the Pet Independent Innovation Awards and we understand why! Flavored with real turkey blended with CBD, plus soothing L-Tryptophan, Chamomile, and Passion Flower, these tasty chews are available in three strengths: 150mg, 300mg, and 600mg. Don’t let separation anxiety slow down your furry friend, give them a calming treat you can both agree on. $30-70

The DoubleBlind Essentials Kit – DoubleBlind Magazine is leading the charge for the psychedelic movement, offering ground-breaking content from thought leaders around the globe. This thoughtful bundle includes the publication’s three most recent issues, plus a gold-dipped mushroom pin, a mushroom-laden canvas tote, and two limited edition stickers. As an added bonus, 10% of proceeds are donated to medical psychedelics research. Don’t trip, it’s only $60 90

Cannabis & Tech Today // Year-End 2020

HydraMax by Hydra Unlimited – This comprehensive hydroponics system is designed to take your grow to the next level and beyond. Take the guesswork out of crop maintenance by seamlessly providing the ideal water and nutrients to your plants. Give yourself the gift of healthier plants and higher yields Starting at $1,499

Arca Labs Rolling Box – Isn’t it time to upgrade your wooden stash box with a stylish, functional alternative? Keep your greens fresh and lock-away odors with Arca’s magnetic, illuminated rolling box. A mesh catch screen plus a removable, freestanding V groove makes rolling a breeze. With its 4-part grinder, blunt-nosed scissors, and a built-in paper holder, everything you need for the perfect smoke is at your fingertips. $120

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RELAX // Something Edible With Laurie Wolf

Griddled Cornbread 4 Servings

Growing up in New York, I loved the griddled corn muffins you could get in diners. You could also get a cup of lousy coffee for a dime. This recipe takes the griddled corn muffin to a very special place. *If you are using the medicated cornbread, use regular butter for the sautéing unless you want that double dose. #Nojudgement Cornbread – 12 Servings What You’ll Need: • Baking spray • ½ cup cornmeal • 1 ½ cups flour • ¾ cups sugar • 1 tablespoon baking powder • ¼ teaspoon salt • 4 tablespoons non-GMO canola oil • 4 tablespoons canna-butter, melted • 2 tablespoons honey • 2 eggs, lightly beaten • 1 1/3 cups whole milk Directions: 1. Heat oven to 340° F. 2. Spray an 8-inch square baking pan, or 9 inch loaf pan, and set aside. 3. In a bowl, combine cornmeal, flour, sugar, baking powder, and salt. 4. Add the oil, butter, honey, eggs, and milk. 5. Pour into prepared pan. 6. Bake for 30-35 minutes, until golden brown. Topping: • 2 tablespoons butter • 4 teaspoons canna-butter* • 4 slices cornbread, recipe above • 1 cup vanilla Greek yogurt • 1 cup mixed seasonal fruit Directions: 1. In a large nonstick skillet melt the butters. When foaming, add the cornbread and sauté for 3-4 minutes. Flip and sauté on the other side. 2. Place the cornbread on four plates. Top with the yogurt and fruit.

Laurie Wolf is the author of such cannabis cookbooks as Marijuana Edibles, HERB, The Medical Marijuana Dispensary, and Cooking with Cannabis. Her recipes have been featured in High Times, Dope Magazine, Culture, and more. She is also the founder of Laurie + MaryJane, an edible company offering everything from almond truffle bites to vegan chocolate cookies. 92

Cannabis & Tech Today // Year-End 2020

CWCBExpo

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Los Angeles

New York

Boston

March 3-4, 2021

May 27-29, 2021

Nov 3-4, 2021

Learn. Earn. Network. #CWCBExpo

// COMING UP //

next issue

Events Event planners had a challenging year. Fortunately, we live in an age of technological marvels and imaginative innovation. Going into 2021, virtual events are finding creative ways to boost attendee engagement and provide exhibitors with tangible value. From immersive 3D platforms like Hyperfair, to more traditional video conferencing, these virtual gatherings are keeping the industry connected from afar. Be sure to check each event’s individual website for updates and announcements.

INNOVATIVE CULTIVATORS It’s springtime and that means one thing, time to plant crops and start cultivating. We’ll sepak with the industry’s most innovative farmers to discover how they’re evolving, what’s working, and what’s not.

SUSTAINABLE TECHNOLOGIES As the industry grows, more people are seeing the need for technologies that are earth friendly. Cannabis doesn’t have to be such a resource guzzler. We’ll speak with the thought leaders shaping the future of the industry with their efficient, innovative tech solutions. Plus, we’ll check out new products for the home grower, the commercial grower, and everyone in between.

WINTER EMERGE 2020 VIRTUAL CANNABIS CONFERENCE & EXPO

USA CBD EXPO (VIRTUAL) December 15-17, tickets available at usacbdexpo.com/virtual/

December 15-17, tickets available at emergecanna.com

SUSTAINABLE LEADERSHIP This publication is devoted to finding creative ways to end the stigma of unsustainable cannabis. Our annual Sustainable Leadership Awards highlight the hard work of groundbreaking companies leading the way to a more resilient industry. We’ll speak with 2020’s winners and share how they’re changing the industry for the better and how you can incorporate their practices to make your own carbon footprint a bit smaller.

HARNESSING THE POWER OF HEMP

CANNABIS MEETS HEALTHCARE (VIRTUAL)

WOMEN GROW STRONG (VIRTUAL)

January 26-27, tickets available at cannaone.com

March 25-26, tickets available at cannaone.com

Cannabis & Tech Today // Year-End 2020

Each issue we explore the expanding role of hemp in both small-scale and industrial applications. For this cultivation issue, we’ll explore emerging hemp sectors and speak with the farmers and inventors pioneering the domestic hemp marketplace.

RELAX // THE LIGHTER SIDE

Would You Like to Smell? By Matt Besser

iStockphoto.com/3 Pelos

When I’m shopping for cannabis, I don’t like the pressure of being asked to smell the product. I started smoking pot back when they still called it pot, and I don’t have that level of expertise to discern much from smelling it. I do it anyway, because it seems rude to refuse, and I always feel like a phony. Like when the waiter brings you the bottle of wine. How many times have I been offered a sip of wine that I just ordered, and I reject the bottle? Never. How many times have I rejected the bottle based on sniffing the cork? NEVER! I don’t have the balls to do that. It implies I have the skill to discern quality based on smell. Only a pretentious asshole would reject a bottle of wine. The only way I’d reject a wine based on the smell of the cork is if it smelled like poo poo. ME: “No, thank you, this has been in somebody’s ass.” WAITER: “But sir, only the cork has been in the busboy’s ass. The bottle is okay.” ME: “Okay fine, I’ll buy it!” 96

Cannabis & Tech Today // Year-End 2020

The budtender at the dispensary always wants you to take a sniff. Just like the cork, I don’t know what to do with that! “Yep, that’s pot.“ If people went around the grocery store sniffing the milk and cheese the way people in dispensaries snort their cannabis I would not do dairy. You want to go get a scented candle? Fine, you can smell the shit out of it. Seems reasonable. Otherwise, do all your smelling in the privacy of your own home. Smelling the weed is a tradition that goes back to the day when that was necessary. In the old days, you would indeed smell the weed to make sure it wasn’t actually just weeds. You don’t want your grass to really be grass. The first time I bought weed in Washington Square Park, I didn’t bother to smell it first. The guy who sold it to me said it was the legendary Thai Stick. I had read about Thai Stick but had never smoked it and really had no idea what it looked like. I assumed it was marijuana somehow in a stick form. I did not smell the Thai Stick before I bought it.

If I had taken a sniff I might have smelled airplane glue… because that’s what it was. But I probably took three toxic hits before I realized I had been burned. I was smoking a toothpick dipped in glue and covered in bird seed. Truth is, even if I had smelled the so-called Thai stick beforehand, I probably would have assumed this exotic cannabis smelled like airplane glue for some reason. Now with COVID-19, it is no longer considered sanitary to have people sticking their nose in a mason jar filled with the good stuff. We have to go back to trusting that the weed is indeed weed and not weeds. ❖ Matt Besser is a comedian known for his work with the Upright Citizens Brigade; author of the UCB Comedy Improvisation Manual; the podcast host of improv4humans with Matt Besser and the Smoke Me Up podcast with Matt Besser, Jon Gabrus, and Horatio Sanz; and most recently released a stand up special entitled “Pot Humor” available on Amazon.

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