Culture b2b q2 2016 by Culture Magazine

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inside

contents Q2.2016

18 24

features

departments 4

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8 News Bytes

12 By the Numbers

30 Legal

State by State The impact of the Supreme Court decision to dismiss the case by Nebraska and Oklahoma against cannabis is huge.

Big Business Female entrepreneurs make up 36 percent of the cannabis sector executives—more than any other market currently.

Seed-to-Sale Cannabis tracking is complex and complicated, but the cannabis industry is determined to figure it out.

Setting the Standard In the newly dubbed “Silicon Valley of Marijuana,” Los Sueños Farms is the world’s largest outdoor cannabis farm, and is also saving the local economy.

Shaping Pharmaceuticals Dr. Ethan Russo has spent the majority of his career changing the medical world with cannabisbased research.

34 Trends

40 Tech

44 Product Highlights

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Publisher Editor-In-Chief

Jeremy Zachary Evan Senn

associate Editor

Ashley Bennett

Editorial assistant

Victoria Banegas

Editorial Contributors

Benjamin M. Adams, Marguerite Arnold, Victoria Banegas, David Branfman, Esq., Hilary Bricken, Todd Mathews, Nicole Potter, Addison Herron-Wheeler

Art Director

Steven Myrdahl

Production Manager

Tommy LaFleur

Graphic Designer Account Executives

general Manager Office Assistant

Tanya Delgadillo,

Jon Bookatz, Kim Cook, Ryan Dunn, Cole Garrison, Gene Gorelik, Yolanda Imoberstag, Emily Musser, Beau Odom, Justin Olson, Chris Thatcher, April Tygart Iris Norsworthy

Angelina Thompson

digital media Editor

David Edmundson

director of digital media

Brian Gingrich

Distribution Manager

Cruz Bobadilla

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NEWS

BYTES Israel Could Become the Next Big Medical Cannabis Market

Hemp and Medical Cannabis Addressed During European Parliament Conference In late February, officials from all over the world met at the European Parliament in Brussels, Belgium to discuss the value of cannabis medically, economically and socially. During this conference, Marc Reiners, President of the European Industrial Hemp Program, spoke of the many uses of hemp, including production of clothing, paper and homes. Other positive insight was given on how cannabis production could lead to economic growth and save energy costs, with Anna Foulis of the Ministry of Rural Development revealing Greece’s decision to allow the cultivation of hemp. Coordinator for the European Coalition for Just and Effective Drug Policies, Joep Oomen, also chimed in during the conference, stressing the amount of European people who use cannabis as medicine, which is an estimated two to three million.

American cannabis companies have been turning to Israel for cannabis research and advancement in agricultural technology and since 2014 have invested $50 million in licensing Israeli medical cannabis patents, according to DNA India. While this number is rather high, CEO of the private cannabis research company iCAN estimates that these investments will reach $100 million this year. Although cannabis is illegal in Israel, research on the plant is widely accepted, unlike in the U.S. Recently, Israel’s Minister of Health, Yaakov Litzman, introduced a plan to make medical cannabis legally accessible to patients, which included two phases. The first phase would be training physicians on how to properly administer the plant, second would be to legally administer cannabis from local pharmacies, according to The Times of Israel. Currently, Israel only has 23,000 cannabis patients authorized with Health Ministry permits. This small market, with only nine suppliers, generates revenue of $15 million to $20 million and could generate much more if legalized and expanded.

Turkey Subtly Legalizes Cannabis According to Iceberg News, the Turkish Ministry of Health added THC and CBD in the form of oromucosal spray to the list of importable medicines. This decision is said to have happened on February 12, and will allow any patient with a “red prescription” to legally medicate with CBD- and THC-based oromucosal spray. This is part of a series of small movements being made by Turkish officials to “adhere to regulations that exist within the European Union Region,” as stated by Iceberg News. Currently, Turkey does not produce cannabis and importing medical cannabis is prohibited. Cannabis was made legal in Turkey in 1890 but is now used popularly throughout young and urban demographics. There is no penalty for imbibing in one’s home and police are known to let those caught in possession of cannabis go freely.

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NEWS

cont.

Strainz Earns $8 Million in Funds to Enhance Partnerships in Legal States Leading national cannabis management company Strainz Inc. announced in early April that it raised $8 million in investments, with $6 million coming from a round of Series A financing, according to PR Newswire. With this funding, the company plans on enhancing partnerships with companies in Colorado, Washington and Nevada. In Nevada, Strainz Inc. has a partnership with one of the state’s first legally operating production facilities, as reported by PR Newswire. This unspecified company is expected to distribute premium cannabis products to collectives this month. Strainz and its partnering brands will be distributing a variety of products with varying CBD and THC ratios and plans on announcing more new products in the coming months.

How Meadow Plans to Improve with $2.1 Million in Investment Funds One of the most refined cannabis delivery services, Meadow, sealed its “seed round” of $2.1 million in early April that will help the company create cannabis friendly alternatives to products like Square and Quickbooks. Those who funded Meadow’s venture include Reddit’s Steve Huffman and former SV Angel David Lee among others, according to Tech Crunch. What makes Meadow profitable is that it services 38 zip codes throughout California, allows users to easily upload their recommendation and can get product delivered within an hour. Other changes Meadow hopes to make with its investments are enhancing its software as a service (SAAS) platform and helping collective owners improve in finance, payroll and other areas of their businesses. Meadow founder David Hua hopes that his company will reveal the economic benefits of cannabis legalization and help encourage states to regulate the plant.

cannAbis benchmarks® transaction stats week ending April 1, 2016

Outdoor

Greenhouse

Indoor

100% 90% 80% 70%

55%

60% 50%

85%

40% 30%

22%

20% 10% 0%

% Observed Transactions 10

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23%

% Volume by Type (Source: New Leaf Data Services, LLC)

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The estimated amount of money, in billions of dollars, that the medical and recreational cannabis industry will make over the next five to 10 years in the U.S.: (Source: The Huffington Post)

NEWS

36.8

The percentage of arrests for cannabis possession in England that has dropped since 2010: (Source: BBC)

The amount of cannabis, in tons, that Chileâ&#x20AC;&#x2122;s largest cannabis farm is expected to produce this year between March and May:

1.65

The amount of money, in millions of dollars, that U.S. firms have invested in Israel-based medical cannabis patent licensing, tech startups and other cannabis businesses since 2014: (Source: Breitbart)

(Source: Latin One)

The percentage of Floridians who support medical cannabis: (Source: Sun Times)

The amount of money, in billions of dollars, that the cannabis grow light market is expected to be valued at by 2022: (Source: Market Watch)

4.19

The amount of money, in billions of dollars, that was spent on energy for legal cannabis in the United States in 2015: (Source: New Frontier)

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The amount of money, in millions of dollars, that the state of Louisiana could add to state coffers if the state changes its current medical cannabis law: (Source: Business Report)

334

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Supreme Court Denies Case from Nebraska and Oklahoma Against Cannabis

by Nicole Potter The cannabis industry is still in its infancy, and there will continue to be many new issues and hurdles to overcome in the near future. While Colorado state lawmakers and advocates have worked to make the state’s laws the best and fairest in the country for both cannabis users and business owners, not everyone in Colorado’s vicinity is happy with the results. The lawsuit of Nebraska and Oklahoma v. Colorado expressed the grievances of Colorado’s eastern neighbors, which looked to file a lawsuit with the Supreme Court because cannabis is federally illegal and cannabis products have begun to spill across the border and into their state territory. A case of that scale could have potentially harmed the progress that Colorado has made so far, however the case was recently dismissed by the Supreme Court, keeping Colorado and it’s budding cannabis industry safe for the time being. In December 2014, Nebraska and Oklahoma filed a combined lawsuit with the Supreme Court of the United States, arguing that Colorado “has created a dangerous gap in the federal drug control system.” The lawsuit also stated that “Marijuana flows from this gap into neighboring states, undermining Plantiff States’ own marijuana bans, draining their treasuries and placing stress on their criminal justice systems.” The lawsuit’s argument is a list of the “harm” that both Nebraska and Oklahoma had experienced, such as an increased cost for cannabis related arrests. Ultimately, the lawsuit claims that >>

“. . . the Supreme Court’s decision to dismiss the suit is still a great win for the industry, which shows that by allowing cannabis businesses to operate legally, the industry is still safe to continue business as usual.”

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Colorado has violated the U.S. Constitution’s Supremacy clause, which states that federal law trumps state law. However, while Nebraska and Oklahoma v. Colorado had been waiting approval for well over a year, it was a shortlived attempt for change. Attorneys in Colorado, as well as the Obama administration, had urged the court not to consider the lawsuit, and on March 21, a 6-2 vote by the Supreme Court agreed to decline to hear the proposed lawsuit. In response to the official dismissal, Colorado Governor John Hickenlooper gave a statement praising the court’s decision to deny the lawsuit and respecting the will of the voters in the process, “Since Colorado voters

overwhelming passed legal recreational marijuana in 2012, we have worked diligently to put in place a regulatory framework—the first in the world—that allows this new industry to operate while protecting public health and safety. With today’s Supreme Court ruling, the work we’ve completed so far remains intact,” Hickenlooper stated. This isn’t the only attempt at challenging the voter’s decision to legalize cannabis, on either a local or state level, and research regarding the funding of some of those other cases are a bit shady. According to The Denver Post regarding an in-depth analysis of other recent lawsuits against cannabis businesses in Colorado, three of the four

cannabis lawsuits that were reviewed were funded by anti-drug organizations that are located out of state. Some vastly different examples of lawsuits include horse ranchers who complained that their view was ruined by a cannabis cultivation facility, and a lawsuit from sheriffs and attorneys in Colorado, Nebraska and Kansas. Nebraska and Oklahoma v. Colorado could have potentially been one of the biggest lawsuits the cannabis industry has seen so far, and the attempt certainly won’t be the last. However, the Supreme Court’s decision to dismiss the suit is still a great win for the industry, which shows that by allowing cannabis businesses to operate legally, the industry is still safe to continue business as usual. Had the Supreme Court actually given the case an audience and voted in favor of Nebraska

and Oklahoma, Colorado’s cannabis community would have been affected greatly. It could have set back the strides that have been taken over the past year, threatening the progress that has been made so far. Recent numbers show that Colorado brought in almost $1 billion worth of legal cannabis in 2015, and it’s only expected to increase within the next year. Although the Supreme Court decided not to take the case, Nebraska and Oklahoma still have the ability to take the lawsuit to a federal district court instead. Following the case dismissal, Nebraska Attorney General Doug Peterson admitted in a statement that he’s working with both Oklahoma, as well as other states, “towards vindicating the rule of law,” which suggests that Nebraska and Oklahoma v. Colorado this isn’t the last we’ve heard of this particular case. d

Growth in Colorado cannabis Tax & License Fee Revenue 2014-2015 $16,000,000 $14,000,000

Jan-Jun 2014

Jul-Dec 2014

Jan-Jun 2015

Jul-Dec 2015

$30.1 Million

$46 Million

$60.6 Million

$74.4 Million

$12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000

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December 2015

November 2015

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March 2015

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January 2015

December 2014

November 2014

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September 2014

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July 2014

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January 2014

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Ladies Lead in Cannabis

Jessica Billingsley Image courtesy of MJ Freeway Software Solutions

Women who are crushing it in the cannabis sector by Jamie Solis

Although the cannabis business sector is largely male-dominated, female entrepreneurs and activists are known as significant influencers in the booming industry. According to a recent survey, 36 percent of the executives in the cannabis market are women. This is an increase from the percentage of women who hold executive roles in all markets, which was found as 22 percent, by Pew Research Center. With so many prominent women moving the cannabis industry forward, it is only appropriate to once again shout out some of the top female entrepreneurs in the cannabis sector. Influencing public policy, educating the market, setting operational standards and making millions, find out how the following 12 cannabis businesswomen are taking the industry by storm. Dale Sky Jones is the Executive Chancellor at Oaksterdam University as well as the Chairwoman at The Coalition for Cannabis Policy Reform. A prominent activist in the cannabis industry, Sky Jones was considered to be one of the leading media

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spokespersons for Yes on Proposition 19 in California. Sky Jones and Oaksterdam University are hugely successful in establishing top quality education, skills and support on the control, regulation and taxation for the cannabis industry. Amy Poinsett and Jessica Billingsley are Co-Founders of MJ Freeway Business Solutions, and they both are considered national industry experts in their field. Amy Poinsett is the Chief Executive Officer of MJ Freeway Business Solutions, and Jessica Billingsley is the company’s Chief Operating Officer. These two women created software solutions made solely for the sale of cannabis at the onset of Colorado’s cannabis legalization. With top quality software and impeccable timing, MJ Freeway Business Solutions has been recognized on the Inc. 5000 fastest-growing companies list. Two more powerful women in the cannabis sector are Jazmin Hupp and Jane West. Jazmin Hupp is the CoFounder and Chief Executive Officer of Women Grow, which is an organization that brings together various types of leaders in the cannabis industry

Jane West Image courtesy of Jane West

through networking, education and support. Forbes and Fortune Magazine recognized Hupp for her expert entrepreneurial skills within the cannabis industry. Jane West is the Co-Founder and National Events Director of Women Grow. She is also the CEO of Jane West Enterprises, which features her collection of cannabis accessories that are geared toward the female consumer. West is also the owner of Edible Events—a mainstream events company is cannabis friendly. Another powerful businesswoman is A.C. Braddock. Braddock is the Chief Executive Officer at the extremely successful multi-million dollar technology company, Eden Labs. She also remains active in the industry by serving on two boards, The

Amy Poinsett Image courtesy of MJ Freeway Software Solutions

“36 percent of the executives in the cannabis market are women. This is an increase from the percentage of women who hold executive roles in all markets, which was found as 22 percent . . .” National Cannabis Industry Association and Council of Responsible Cannabis Regulation. In addition to these two boards, Braddock is also a member of The Marijuana Business Association’s Women’s Alliance and as well as another Washington-based cannabis business group, Women of Weed. Anne Holland and Cassandra Farrington are Co-Founders of Marijuana Business Media. Anne Holland’s success in the cannabis

Dale Sky Jones Image courtesy of Dale Sky Jones

Jazmin Hupp Image courtesy of jazminhupp.com

industry is due to her role in electronic publishing as the founder of Anne Holland Ventures, which is dedicated to publishing and professional education. Cassandra Farrington is the President at Anne Holland Ventures Inc., and it’s safe to say this two-woman powerhouse is connecting cannabis industry professionals in a big way. You don’t have to be from Maine to know about the thriving Chief Operating Officer of Wellness Connection of Maine, Patricia Rosi. She runs four state-licensed medical cannabis dispensaries in Maine. Since 2011 her multi-million dollar company has grown to over 200 employees and counting. This wealthy businesswoman is providing her community with top quality medical cannabis and turning a huge profit. Last but undoubtedly not least,

A.C. Braddock Image courtesy of Cashinbis

Ophelia Chong Image courtesy of stockpotimages.com

established photographer and creative director, Ophelia Chong, has gained notoriety in the cannabis industry since her launch of StockPotImages.com. This company was the first of its kind, because it hosts cannabis specific stock photography, videos and illustrations that are rights-free and rights-managed. Chong’s attention to professional photos along with a persistent will to bring this much-needed resource into existence is worth noting. The progress of the medical and recreational cannabis industries is largely in part due to strong and successful women entrepreneurs. This is only scratching the surface of powerful, strong women who rock the cannabis sector day in and out, as they are many other women who dedicate their lives to making a difference in our community every day. d

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Getting on Track Seed-to-sale traceability has been anything but simple since states started tracking medical cannabis plants

“As an industry, we still have a stigma to overcome—right or wrong—and this is the cost to overcome that stigma and be accepted in the mainstream. We may have to hold ourselves to a higher standard for a period of time.”

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by David Downs On February 10, in a Sacramento, California hearing room, you could almost feel the page turning on the history of cannabis prohibition in America. In front of both the state and national flags, seated up on a stage with microphones and name placards, California State Board of Equalization member Fiona Ma kicked off a two-hour long discussion

about tracking and tracing every single legal gram of medical cannabis in California. “Cannabis sales are real,” said John Hudak, Ph.D., Senior Fellow in Governance Studies and Deputy Director, Center for Effective Public Management at The Brookings Institution. “Whether you oppose or support marijuana legalization, medical decriminalization or CBD oil, it’s a reality in a lot of places; 149 million Americans live in medical marijuana states.” “This is important,” said Ma, referring to the 2018 deadline to fully regulate California’s $1.4 billion medical cannabis industry. “There is a huge segment of the industry who wants to find themselves in compliance in the mainstream of industry.”

“This is important. There is a huge segment of the industry who wants to find themselves in compliance in the mainstream of industry.” The federal government is standing down with the mandate that states tightly regulate medical cannabis, Hudak said. “You should hope the governments regulating this gets it right [so that future government actions] look more like an IRA audit than a Navy SEAL raid.” It’s got to be the only time in history people clapped at the end of a regulatory presentation. Thanks to more and more medical and adult use legalization—which come with heavy regulations—

cannabis farmers nationwide are rapidly having to switch over from whiteboards and sticky notes to sometimes radio frequency identification badges (RFID), and desktop PC logged into state databases. And the transition is anything but smooth. Ask Jeremy Moberg, founder and operator of one of the largest licensed cannabis farms, Cannasol Farms, in the state of Washington. He sold a couple thousand pounds in 2015 and estimates that meeting state traceability requirements comprise 30 percent of his labor costs when he packages his product for retailers. Five of the 15 hours it takes to fulfill a typical order is spent on a computer, using the state’s cludgy portal, created by vendor BioTrackTHC, he said. The system lacks short-keys, he notes. It takes 20 mouse clicks to locate a product’s THC levels. You can’t perform bulk changes to batches of codes. “I bust their system more than anybody,” Moberg told us. “Nothing is intuitive. They really didn’t care.” The API is so wonky, “I’ve thought about suing them,” he said. He’s currently testing a third party plug-in to BioTrack, called Weedtraqr. It’s mostly okay, he said, except a third of his inventory is labeled “Cherry Pez Levity - 28 grams,” and the bug cannot be identified, much less squashed. Part of Washington’s problem is more systemic, Moberg said. The state tracks every gram by generating codes when a clone is created from a mother, another code for each bulk dried lot, another code for each testing batch, another code for sublots, and a final code for retail packaged lots. Actually tracing a tainted edible back to the plant sprayed with pesticides, is exceedingly difficult. “There’s so many codes,” said Moberg. “It’s pretty hilarious.” >> CULTUREB2B.com

Moberg also said he spends $7,000 per month on printer ink, printing up individually tailored retail stickers for each store. Imagine if Tide had to brand each box of detergent for each different Target and Wal-Mart. Moreover, the BioTrack system doesn’t tell growers where their buds are. So Moberg uses his own system in Microsoft Excel, plus BioTrack for state logging, and a CRM service from Salesforce for order tracking. California is uniquely poised to learn from implementing so-called “track-and-trace” technology elsewhere, expert consultant David McPherson, Principal at HdL Companies, told Ma in Sacramento. But California also comes with special problems of its own. It’s a huge state, with a specially convoluted supply chain, and a long history of avoiding the law. McPherson was among the first to regulate medical cannabis at the city level in the U.S. and said the new MMRSA regulations have to work with police pulling people over. “The delivery model will have big impact on track and trace. Also we have three extra steps in the supply chain with transporter, distributor, delivery.” California also has both indoor farms on the grid and outdoor farms with no constant connection to the internet. “California needs to identify its needs before we get a system, not after the fact,” he said. McPherson also asked for a “track changes” function in the software, for forensic use during investigation. “Systems need to be more intuitive, and ask people, ‘do you mean to say this?’” when a user enters something anomalous, McPherson said. And fundamentally, “it has to adapt to whatever

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regulatory environment we do today tomorrow or any of the changes associated with that.” And it can’t be onerous for tiny farms. “People are going to say, I’m not going to buy into that. I’m going to do what I’ve kept doing for generations.” Jeff Wells, CEO of Florida company Franwell, maker of METRC, explained how the company is the sole vendor for track and trace in Colorado, as well as Oregon, and Alaska. The company has 16,000 users in 2,700 licensees, and has tracked $1.6 billion in cannabis. METRC handles tracking for 70 percent of the legal U.S. medical cannabis supply, and is making a bid to be the cross-agency vendor for California as well. U.S. state cannabis surveillance “is like no system in the world,” Wells told California regulators. It’s the envy of Big Pharma companies like Abbott, or

major food distributors. With the click of a button you can hold the stuff and notify the supply chain of what needs to be held.” Plants can be moved four times in cultivation in the METRC system, which uses RFID. METRC studies show you can scan 4,000 plants in 40 minutes, versus six hours by bar code. METRC also has no conflicts of interest and only sells to regulatory bodies, not industry, Wells said. “This is serious and should be important.” BioTrack is also pitching for the California cannabis market, and has over 25,000 trained users and is in use in 23 states with over 1,600 business licensees countrywide. BioTrack does sell products to the industry and is “proud” to serve the private sector, CEO Patrick Vo said. “The state system needs to be informed by what you guys actually do, actual practical innovations

and challenges and should not be designed in an uninformed way.” About 50 members of the public showed up to the hearing and for many of them, track and trace will feel like massive overkill for a nontoxic plant. Cody Bass, owner of Tahoe Wellness Cooperative, noted that topless cabarets don’t have state surveillance cameras in them the way Colorado grows do. “We should not be treated differently than any other business.” “Is it a heavy burden? Yes.” said McPherson. “The truth of the matter is it’s still illegal federally. As an industry, we still have a stigma to overcome—right or wrong—and this is the cost to overcome that stigma and be accepted in the mainstream. We may have to hold ourselves to a higher standard for a period of time.” d

America’s 2015 cannabis Sales in Context 2015 legal cannabis sales and selected 2014 company sales in the U.S.*

$3.40 billion

Legal Cannabis Sales Dasani DiGiorno Girl Scout Cookies Oreo Blue Bell Pringles Blue Diamond Nabisco Wheat Thins Twizzlers

$1.02 billion $975.3 million $776.0 million $711.4 million $570.0 million $514.4 million $407.0 million $344.8 million $203.6 million

(*52 weeks ending Jan, 2015. Oreo and Dasani fiscal year ended April and May 2015 respectively. Source: Company reports)

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The World’s Largest Outdoor Cannabis Farm

by Benjamin M. Adams

Los Sueños Farms is changing the town of Pueblo and setting the bar for cultivators across the country

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An emerald oasis sits quietly in rural Pueblo County, Colorado. Methodical, well-groomed and visually-satisfying rows of cannabis stalks grace the expanding acreage. Four enormous farms in Avondale, Colorado in Pueblo County make up the compound that is Los Sueños Farms (LSF). They are busy this time of year, preparing for the spring greenhouse harvest and preparing to plant their massive outdoor harvest early this summer. Some believe Los Sueños Farms could help save the local economy from decades of recession. Los Sueños Farms is reportedly the world’s largest outdoor cannabis farm. Since the ‘80s, Pueblo County has been struggling to recover from a collapsed steel industry. Since Amendment 64 allows for local areas to regulate cannabis cultivation on their own, Pueblo has welcomed cannabis cultivation with open arms. Coloradans have renamed Pueblo from “The Pittsburgh of the West” to “The Silicon Valley of Marijuana.” Pueblo also pioneered cross-pollination rules, setting an example for other cities curious about cannabis cultivation.

The complex is ecologically accountable, adhering to a positive alliance with Mother Earth. By using natural predators native to the area, Los Sueños Farms allows larger, beneficial insects to feed on pests. More importantly, by using the sun’s natural rays, they leave a much smaller carbon footprint. “We grow outside— the way nature intended,” Michael “Caddy” Cadwell told CULTURE. “Farmers don’t grow other fruits and vegetables in warehouses— it’s not natural. Only the sun creates true photosynthesis. Trying to recreate nature indoors is very difficult, it weighs down the grid and it is a breeding ground for insects and disease. We want to provide consumers the option of natural sun grown pesticide-free cannabis from a farm that uses organic farming practices.” Growing cannabis in warehouses can yield five-figure power bills, among other things. Most other counties in Colorado, including Denver County, do not permit outdoor growing. Ironically, Colorado’s high elevation is ideal for cannabis—the ultraviolet rays have the ability to trick

“The sky is the limit as long as the public keeps demanding sun grown, natural pesticide-free cannabis.” the plants into producing more resin. It’s evident in Los Sueños Farms’ eight-foot high cannabis plants. The outdoor compound amounts to a combined total 36 acres of cannabis stalks. Caddy says the compound boasts a total of “170 developed acres as well as 60,000 square feet of green house growing.” Los Sueños Farms was recently awarded the ability to grow 24,000 plants. “Because we sold 100 percent of our first harvest, we can apply to increase our plant count for our licenses,”

explained Caddy. “The next level would be the equivalent of 6,000 plants per license, which totals 24,000 plants on the farm.” Boasting an enormous and diverse palette of flavor, LSF provides variety for the connoisseur. Sativas include strains like “Casey Jones” or “Chocolope.” Hybrids include rarities like “Bordello,” and indicas include “Critical Mass White Widow.” Pueblo voters approved a five percent increase, raising excise tax from 15 percent to 20 percent—and nobody in the cannabis industry opposed it. The five percent excise tax on cannabis sales will apply to up to 20 tons of harvest generated by Los Sueños Farms. The tax is projected to hit $3.5 million per year by 2020. Where does that money go? Well, a large fraction of the revenue is expected to generate $1.7 million in college scholarships. It’s expected to generate an additional $1.7 million in revenue which will go towards the nation’s 88

other licensed cultivators and other various projects. “We tend to be one of the poorer counties in the state with a lower percapita income and a higher unemployment rate,” Pueblo County Commissioner Sal Pace told Bloomberg. Los Sueños Farms could be the answer to Pueblo’s crumbling economy, and could serve as a great example for other states and counties considering similar salvation. “Local taxes and the city of Pueblo set up a scholarship that will give 400 college kids $1,000 per year,” explained Caddy. The funding goes to Pueblo Community College and Colorado State University-Pueblo. Commissioner Sal Pace had been “floating the idea of a special funding source.” Over 1,300 jobs and $120 million in revenue were created by the Colorado cannabis industry in 2014. Also in 2014, Pueblo County collected $1.8 million in revenue from cannabis ventures. Colorado is home to around 938 cannabis collectives—a higher number than the number of Starbucks franchises. “The sky is the limit as long as the public keeps demanding sun grown, natural pesticide-free cannabis,” says Caddy. d

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Making a Difference

“Doctors get little or no training about cannabis in medical school and almost none about the endocannabinoid system. The system predates cannabis. It’s been present in us and animals for millions and millions of years, before there even was cannabis.”

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Board-certified neurologist, psychopharmacology researcher, innovator, author, editor and former Senior Medical Advisor to GW Pharmaceuticals’

Dr. Ethan Russo by R. Scott Rappold

The first time Dr. Ethan Russo talked with a patient about medical cannabis, the cannalandscape was a very different place than today. The year was 1980, the Reagan Era would soon begin a backlash to the excesses of the 1970s that would evolve into a wide-spread war on cannabis and Americans who enjoyed it. A physician advocating for cannabis faced no small amount of personal, professional and even legal peril. Yet when Russo, then a young neurologist working at a Veterans Administration clinic, met a patient whose muscle deterioration had slowed since self-medicating with cannabis, he could not ignore it. In fact, it sparked a revolution in his thinking about medicine

and natural treatments. “It occurred to me that I was giving increasingly toxic drugs to my patients with less and less return, whether it be treating epilepsy or migraines,” he said. Russo would go on to become one of the foremost advocates of the medical benefits of cannabis, writing several books and pioneering numerous pharmaceutical cannabis medicines. He had to battle the federal government and the mainstream medical establishment along the way. But with medical cannabis now legal in two dozen states and more countries each year, it sure looks like he won. Or at least he’s no longer a voice out of left field, but a founding member of a global movement. >>

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Opening Minds Like many who came of age in the ‘60s and ‘70s, he was already acquainted with cannabis. “Unlike some people, I inhaled frequently, deeply and with forethought, but that was a long time ago,” he told CULTURE in a recent phone interview. After completing his residency at the Seattle VA hospital, he opened a practice in Missoula, Montana, a liberal bastion in cowboy country. If a patient asked—or if he thought it could help their condition— he freely espoused the benefits of cannabis. Multiple Sclerosis, muscle tightness, mood problems, depression; cannabis seemed to have benefits for these and more. A patient with ALS, a degenerative condition, taking only cannabis lived for a decade with no deterioration. “We didn’t cure anyone, however, the people that did use it tended to be better clinically and certainly had a better adjustment to their illness,” he said. And he was open about it, telling the state’s medical board that he was advising, but not prescribing, patients on cannabis. Soon other doctors were sending patients to him. Russo also began to wonder about what other plants out there could benefit human health. So in 1995, he took a sabbatical to live with an indigenous tribe in the jungles of Peru, studying the many plants and herbs used medicinally. The experience further shaped his curiosity of herbal benefits and helped inspire his first book, Handbook of Psychotropic Herbs. But one herb in particular was still his main focus.

Battling the Feds There was a twisted irony to anyone wanting to legally study cannabis in the 1990s. In 1997, the Food and Drug Administration denied Russo’s research request to study its effect on migraines. The FDA denied it again the next year. The study was approved in 1999, but cannabis for scientific research was required to come from the National Institute on Drug Abuse. That agency refused to provide it. Russo said, “I realized I was never going to be able to do the kind of cannabis therapeutic research I wanted in this country.” So in 2003, he quit his practice and

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“I realized I was never going to be able to do the kind of cannabis therapeutic research I wanted in this country.” began working for British company GW Pharmaceuticals. He didn’t have to move to Europe, but spent quite a bit of time there. He helped develop groundbreaking products like a liquid extract spray for MS patients, currently approved in 27 countries, but not the U.S. He remains frustrated by federal roadblocks to cannabis research, even as people in places like Washington and Colorado can simply walk into a store and buy the plant for recreational purposes. “Essentially what the government has set up is a situation in which American companies who might have a great deal of experience in this area cannot compete with companies from abroad,” he said. “What they’re doing is inhibiting commerce and proper research that could lead to better advancements and not only improved therapeutic applications but better safety as well.”

Last year, he became medical director of startup company PHYTECS, where he is conducting research on the human endocannabinoid system, a network of receptors in the brain and nervous system that he believes holds the key for many more breakthroughs in cannabis medicine. Russo envisions a time when patients will be able to go into a pharmacy to get their cannabis medicine instead of a tie-dye-draped dispensary. And of a time when mainstream doctors will be comfortable prescribing it. “Doctors get little or no training about cannabis in medical school and almost none about the endocannabinoid system. The system predates cannabis. It’s been present in us and animals for millions and millions of years, before there even was cannabis,” he said. “Why isn’t this important system that regulates how our bodies operate being taught in medical school?” Still, he has reason to be optimistic. “I do think when a cannabis-based medicine like (anti-seizure medicine) Epidiolex is approved in the US, physicians will take notice. If it’s been through the FDA process, they’re much more likely to accept it, be interested in it and be comfortable prescribing it so patients can get a script, go to a pharmacy and it will be like any other medicine at that point. The comfort level will increase and the intellectual curiosity will kick in and we’ll begin to make progress.” d

Cannabis market growth Projected value of cannabis sales in Massachusetts if legalized $1.17b $1 Billion

Recreational Use

$200 Million Medical Use

$500 k 2016

2017

2018

2019

2020

(Source: ArcView Market Research and New Frontier)

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LEGAL

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Intellectual Property Law Myths:

The Cannabis Edition by David P. Branfman

We’ve all heard those “Urban Myths” like there are alligators living in the sewers of New York City and Little Mikey from the Life cereal commercial died because he mixed Coca-Cola with pop rocks. We’ve also heard a lot of intellectual property myths regarding cannabis. The following is a list of seven of the most common myths we have heard—and the truth about them.

1 Myth #1: Cannabis Trademarks Should Describe the Goods and Services Offered Under the Mark and Should the Terms “Can,” “Canna,” or “Green,” and the Mark Must Contain a Geographic Indicator. Truth: FALSE! Logically, we think that our business and product names should tell the public what the product is. However, names that are generic for the business or products or are descriptive of the business or products are extremely hard to protect legally. For example, if you own a cannabis dispensary, you shouldn’t be able to have the exclusive rights to the name “Cannabis Dispensary,” which is generic, or even “Canna

Dispense,” which is descriptive. Instead, good trademarks are those that are clever, non-generic and non-descriptive. It’s ok if a mark is suggestive (e.g., “Edipure”) of the goods or services. It’s even better if the mark is arbitrary (for example a word that does not relate to the goods and services, such as “Dixie Elixirs”), or fanciful (made up). Likewise, people often think that a business or product name should contain a geographic indicator— especially in the field of cannabis, where even a few miles can make a huge difference in the quality of the grow (e.g. Humboldt). However, a trademark that is a geographic indicator (e.g. Sonoma Cannabis) of the origin of the goods or services is very hard (if not impossible) to protect. >>

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2 Myth #2: I Don’t Need to Register My Trademarks. All I Need to Do is Use the ® Symbol and My Trademark is Protected. Truth: FALSE! Using the ® symbol isn’t legal if you haven’t officially registered your trademark with the U.S. Patent and Trademark Office (PTO). More importantly, when you register your trademark with the PTO you will be entitled to a number of additional legal benefits that will legally strengthen your trademark. Chief among these is the presumptive right to national use of the trademark on the goods or services you have registered the trademark for.

Myth #3: It’s Easy to Obtain a Trademark Registration for Cannabis, Dispensary Services, and Other Cannabis-Related Goods and Services. Truth: FALSE! The PTO has taken a fairly hard stance when it comes to registering trademarks used in association with cannabis, dispensary services, or related goods and services. Why? Because cannabis still remains illegal under the federal Controlled Substances Act (CSA). However, the PTO usually will accept trademark applications for marks used with ancillary goods and services, such as clothing,

website services, or providing information in the field of marijuana. Also, a few states WILL register trademarks for cannabis, dispensary services, etc.

4 Myth #4: If I Find a Picture on the Internet, I Can Use It. Or I’m Free to Use Someone Else’s Work If I Change It by 12 percent. Truth: FALSE! The mere fact that something can be found on the internet doesn’t automatically mean that it’s free for anyone to use any way they want to. The author generally maintains his or her copyrights in the work. And changing a copyrighted work by 12 percent won’t save you either. There is no magic numerical formula that establishes a safe harbor for copyright infringement. The test for copyright infringement is whether the allegedly infringing work is substantially similar to the copyrighted work.

Myth #5: I Can’t Stop a Competitor From Growing My Strain of Marijuana Or From Using My Invention Because Cannabis is Illegal. Truth: FALSE! Patent protection exists to grant owners a monopoly over their invention for a limited period of time. Patents consist of inventions that are novel, useful, and non-obvious. Examples of patents

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include methods for extracting THC or CBD, apparatus for smoking or vaporizing cannabis, and more. Cannabis growers may also be eligible to obtain a plant patent, which grants a similar monopoly on their strain of cannabis.

6 Myth #6: I Have a Secret Method or Process, But I Can’t Protect It Because There Is No Place to Register It. Truth: FALSE! Trade secrets protect information, devices, methods, techniques or processes that: 1) are of economic value to a business; 2) are not generally known or readily ascertainable; and 3) kept secret through reasonable efforts. Although there is no government agency that registers your trade secrets, you can protect your trade secrets by rigorously taking steps to keep them secret.

7 Myth #7: Written Contracts Involving Marijuana Are Completely Enforceable. Truth: Mostly False! Some courts have refused to enforce contracts that involve cannabis because the contracts should be considered void as contrary to public policy since cannabis is illegal under the CSA. But careful drafting of the contract at the beginning may avoid this problem. d

David P. Branfman is an intellectual property attorney with Branfman Law Group, P.C. (www.branfman.com) in San Diego, CA who has been advising cannabis entrepreneurs and businesses since 2010. © 2016 Dave Branfman.

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41.5%

Canadians who said in 2010 that they had used cannabis in their lifetime, down from 44.5% in 2004.

10.7%

Canadians who said in 2010 that they had used cannabis in the past year, down from 14.1% in 2004.

40,000

Pounds of cannabis plants found in 2008 in a cornfield in eastern Ontario, in a bust OPP described at the time as “the largest in Canadian history”.

$10

Average street price for one gram of cannabis, down from $20 a few years ago.

15.7

Average age in 2010 that youth said they used cannabis for the first time, an age that has remained unchanged since 2004.

$1,000

Maximum bulk value of a cannabis plant grown to maturity in a grown operation.

(Sources: RCMP, Statistics Canada, Health Canada, canadian Alcohol and Drug Use Monitoring Survey. [Interactive by JAnet Davidson, Andre MAyer & Ruby Buiza/CBC]

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Turning On To Terps The fingerprint of fragrance and well-being by Benjamin M. Adams

Terpenes are rapidly becoming the next frontier of cannabis engineering. Knowing what levels of terpenes are in cannabis products lets you bridle what kind of flavor, aroma and most importantly, what kind of medicinal effect this product is going to have for you. About 200 or so known terpenes have been isolated in cannabis’ history, however, there’s about a dozen or so that are common enough to be noteworthy and sought after. Jeffrey Raber Ph.D. is co-founder and president of the acclaimed lab testing facility, The Werc Shop. Raber and his Pasadena-based team of chemists have been pioneering chemical reactor technology. Raber want to address the proverbial need for transparency in the world of commercial cannabis. Cannabis contains valuable—but volatile—terpenes which can unfortunately be lost in the production process; edibles, concentrates and salves included. Naturally-occurring terpenes can now be re-applied to commercial cannabis products with new terpene products. “Patients shouldn’t only consider if there are terpenes in the product, but rather are they always the same in each production run and which ones are present for their particular medical interest,” Jeff Raber explained to CULTURE. “The Entourage Effect is the term utilized to describe the synergistic physiological benefits that are derived by multiple plant components being ingested at once whereby they collectively activate the endocannabinoid system all at once. It is very different than a single molecule approach, and

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we’re finding it is superior in terms of a means of modulating the endocannabinoid system.” Our olfactory glands, having a direct connection with our memories, can elicit buried emotions. Olfactory memory is when we connect odors with memories. Consumers respond well to odors- and likewise can net profit. Simply increasing THC has become the norm. Raber warns “[This] should be a serious point of consideration for the potential therapeutic effect of a specific medicine. It is also not as simple as more must be better, sometimes less is more, especially in terms of the entourage effect as it is about the total balance, not just overwhelming the receptors.” Raber and his team have piqued interest with unique strains like ‘Oracle’ with unique terpene levels and a CBD:THC ratio of 20:1. “Terpenes are a major part of how cannabis delivers its entourage components to the body,” said Raber. “What patients are learning through more testing data becoming available to them is that many strains have a very similar cannabinoid profile, but their terpene profile is drastically different. Often times, major differences in strains are coming predominantly from the terpene profiles. Understanding some of the more prevalent terpenes in a patient’s preferred strain can help them make informed selections about other strains that have similar profiles. This is a different means of selecting medicine as opposed to using only a name, which may not be as informative or possibly could be misidentified.” >>

“Terpenes are a major part of how cannabis delivers its entourage components to the body.”

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Limonene Citrus aroma; antiseptic, treats acid reflux, cancer, anxiety and depression; Found in lemons and juniper; Useful in ointments and salves.

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Terpenes Commonly Found in Cannabis

Myrcene Earthy/Musky aroma; muscle relaxant, anticarcinogenic, sleep aid; Sedative; Found in mango, lemongrass and thyme.

Alpha/Beta-Pinene Pine aroma; antiseptic, anti-bacterial, aids memory, anti-inflammatory; found in pine needles, rosemary and sage.

Linalool Floral/Spicy aroma; can be minty; antiinflammatory, modulates motor skills. One report links Linalool with treating liver cancer. Found in lavender.

Alpha Bisabolol Floral aroma; chamomile-like; fights bacteria, deodorizer; Heavy presence in the Werc Shop’s ‘Oracle’. Found in Chamomile.

Delta 3 Carene Piney/Earthy; dries fluids and menstrual flow. Think cottonmouth. Found commonly in many strains.

Borneol Earthy and camphor aroma; analgesic, bronchiodilator, anti-insomnia. Found in K13.

Eucalyptol Strong spicy aroma; cough suppressant, antiseptic. Very uncommon in cannabis, however, some Haze strains contain eucalyptol.

Terpineol Pine/ Clove aroma; Anti-oxidant; One of the more rare terps found in Jack Herer varieties.

Caryophyllene Peppery aroma; Anti-inflammatory, analgesic, protects digestive tract. Found in pepper and cloves.

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Jeffery Raber Ph.D of The Werc Shop

“Patients shouldn’t only consider if there are terpenes in the product, but rather are they always the same in each production run and which ones are present for their particular medical interest.” When asked if a customizable experience is possible by controlling terpene levels, Raber cautiously replied “This remains to be seen. In theory it should be possible, but how much more we need to understand before we can do it to any appreciable degree of confidence is still not known. We definitely don’t know this today. Which patients respond to which terpene compositions to which extent is not understood well currently. It is certainly way too early for anyone to be making any sort of potential marketing claims about those types of experiences.” Cannaromas are terpene blends available in the natural-occurring collection of Cannaroma Native™, as well as additional, rare terpenes found in Cannaroma Strain Native™ and Cannaroma Inspired™. Most of the common and rare terpenes can be purchased and individually modulated.

“Cannaroma is the brand name for our terpene based ingredients that are used in cannabis product infusions and other noncannabis based consumer products. It represents a compilation of the analysis of thousands of cannabis samples which provides the knowledge base our scientists utilize to create each unique Cannaroma blend.” How accurate is it? “Professional chemists carefully monitor the purity and composition of these Cannaroma blends and they can replicate the profile of specific strains using our unique methodology,” said Raber. “. . . We feel it is important to patients that they have the ability to understand what is present in the cannabis products they are consuming and who is monitoring the specific standardization and purity of the product composition, as production reproduciblity is critical to providing good medicine.” d

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Lines at the Primaries Does booming canna-business play a role? by Benjamin M. Adams Support for recreational cannabis is at an all-time high, and poll after poll shows what Americans want to see this election season. A growing number of social issues are at stake this election cycle, and cannabis is definitely one of them. The supple cannabis market is not budding, it’s blossoming. With all Presidential front runners willing to at least downgrade

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cannabis to Schedule II, the sky is the limit when it comes to commercial cannabis sales. Mysteriously in Arizona, Democratic polling stations have dropped steadily since 2008. Voter polling stations in Maricopa County scaled down from 400 locations in 2008 to 200 in 2012, according to The Arizona Republic. On Arizona’s big day this year, only 40

Democratic polling stations opened up in Maricopa County, the most populous county in Arizona. Democratic hopeful Bernie Sanders called what happened in Arizona a “disgrace.” Liberals demanded an explanation, crying voter suppression. Sanders called out organizers who failed to present a fair vote. “Whatever the cost of that problem is people in the

United States of America shouldn’t have to wait five hours in order to vote,” Sanders said. Needless to say, Donald Trump swept the Arizona vote. Maricopa County Recorder Helen Purcell, who oversees the county vote, initially blamed the voters themselves “for getting in line” but later admitted to bad decisionmaking.

In Wisconsin, Republican Scott Walker issued strict new voter ID requirements. Critics say Walker’s law could suppress nine percent of the vote, or approximately 300,000 voters. Part of those 300,000 voters includes University students with student ID’s, military ID’s and tribal ID’s. In the University of Wisconsin-Madison, 40,000 mostly-liberal students had access to only one voter ID station. The legislature also limited weekend voting hours. Perhaps the worst part of the new regulations restrict grassroots groups (such as cannabis advocates) from running voter registration drives. Author Ari Berman called Wisconsin’s new voter rules a “nightmare.” Bernie Sanders immediately responded, saying “Democracy means one person, one vote. And whether Governor Scott Walker likes it or not, that is—that is exactly

what we are going to bring to every state in this country, including Wisconsin.” In Utah and Idaho, voters also waited up to four hours or more to vote in Democratic voting stations—which didn’t really matter—considering Clinton’s double-digit Arizona win. Arizona boasts more delegates than Utah and Idaho combined. Just months earlier, Sanders called for the end of the prohibition of cannabis. Hillary Clinton informed her followers that she would lower cannabis to Schedule II which would open the floodgates of cannabis research. The United States would have the potential to become a research industry leader like Israel is quickly becoming. As for recreational cannabis, Clinton calls Washington and Colorado “. . . the laboratories of Democracy.” At this point, Clinton doesn’t dare threaten the progress those states have made. Donald Trump says he supports medical cannabis “100 percent!” Whether you’re a fan of Donald Trump or not, he is certainly all about profit. The latest numbers predict the commercial cannabis industry will reach $44 billion by 2020—approximately 11 times Trump’s 2015 net worth. Trump’s cannabis policy has ranged from legalizing all drugs in 1990 to opposing recreational cannabis. Both Trump and Ted Cruz support the states’ right to legalize as Clinton does. Cruz’s position on cannabis has evolved several times as well, but his latest position supports states

with legal cannabis. A National Tracking Poll, conducted by Morning Consult, a Washington DC firm, interviewed registered voters. According to the poll, the vast majority of voters interviewed, 70 percent said our country is on the “wrong track.” In desperation, voters are looking for any kind of economic savior. 52 percent said they support the legalization of recreational cannabis. 63 percent of young adults under the age of 30 said they were most likely to support legalization. 68 percent of voters said they support “for medical use.” The DEA’s recent announcement to look at the status of cannabis could be the response voters are looking for. So what about what really matters? Of the registered voters interviewed, 61 percent of Democrats said they were most likely to support recreational cannabis and 37 percent of Republicans were supportive. Bernie Sanders told an energetic crowd at his final speech in Madison, Wisconsin before the state’s Primary. “Today, under the Federal Controlled Substance Act, marijuana is listed as a Schedule I drug alongside of heroin,” argued Sanders. “Now we can argue when scientists do the pluses and minuses of marijuana, but everyone knows marijuana is not a killer drug like heroin.” There are a lot of questions that still remain. However, as cannabisoriented businessmen and women, the upcoming voting season is more important now than ever. d

“With all Presidential front runners willing to at least downgrade cannabis to Schedule II, the sky is the limit when it comes to commercial cannabis sales.”

Photo by R. Gino Santa Maria

Photo by a katz

Photo by Andrew Cline

Photo by R. Gino Santa Maria

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Inside The Corporate Exodus to Cannabis CountrY How canna-businesses can capitalize on the influx of high-caliber talent by David Downs Over 1,100 cannabis fans and allies gathered at a San Francisco nightclub on a Sunday in April, but it was jobs and opportunity in the air, with nary a whiff of cannabis. The SF Bay Area Cannabis Career Fair had job seekers lining up down the sidewalk, and featured 24 companies hiring everything from trimmers to product development managers. All day, you could feel how seriously people were taking the fair; it hummed with nervous chatter, and tailored sport coats, collared shirts, slacks and nice shoes were in heavy effect.

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About 100 people were hired at the fourth such Bloom Farms Career Fair, which expands to Los Angeles this Summer; and, career fairs are just the beginning. America is in the middle of its largest exodus ever from corporate America into cannabis country. We estimate tens of thousands of executives, vice-presidents, human resources managers and accountants are coming into the space this year, and potentially a million more could follow in the coming ten years, estimates Bloom Farms’ Mike Ray. Changes in laws—following changes

in social mores—have made cannabis jobs more enticing to people on the traditional corporate ladder. Support for legalization has gone from the low teens in the ‘60s to a supermajority of 61 percent of Americans this year. Highly effective managers, creatives, and engineers are taking a pay cut for the cause of cannabis, as well as the challenge, the freedom, and the potential of being a part of what could be a $44 billion industry by 2020, according to Reuters. People who’ve never written a resume are looking for green work alongside the rank and file of Fortune 100 companies, said Kara Bradford, CoFounder of Viridian Staffing, a national company with headquarters in Seattle, WA. She rattles off the brands she’s seen burnishing resumes recently: General Electric. Amazon. Microsoft. Starbucks. DirecTV, Disney. PepsiCo. Whole Foods. She just placed a PhD horticulturalist who was also a Fullbright scholar in a cannabis company. “He said, ‘I’ll just be an intern . . .’ He was just so excited to learn about cannabis he was willing to take that pay cut.” “It’s just growing massively,” she said. “Our database is huge. We’re having to look at other places to store our data.” “Some of the fear is dissipating now that there’s more real knowledge about the industry,” said Danielle Schumacher, co-founder of THC Staffing, a boutique hiring agency in Berkeley, CA. “We pretty much can’t keep up with demand for it.” Morgan Paxhia, Co-Founder of investment company Poseidon Asset Management, jumped from UPS and private equity into cannabis. His sister and company Co-Founder, Emily Paxhia, had worked at a boutique firm serving American Express, Viacom and MTV. Friends and acquaintances are leaving the global liquor giant Diageo or the hot tech company Salesforce for cannabis country, she said. Forty-five fresh MBAs and friends of friends from Uber, Twitter, Facebook, Yahoo and LinkedIn were registered to attend Poseidon’s executive-level career event April 13 in San Francisco’s SOMA neighborhood. The goal: Find MBAs and COOs for the rapidly scaling companies in Poseidon’s portfolio. >>

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“Boredom is a deadly condition,” Emily Paxhia said. “If you can find people that are bored in their jobs that are very bright and motivated that’s where you want to look.” “It worries me,” she said. “We need people that want to join the [companies] that are hiring.” “No matter what the industry, they say, ‘it’s hard to find good people,’ and I say, ‘in the cannabis industry it’s ten times as hard,’” said Ray. Ray left a New York hedge to find more meaning in the cannabis industry, which is interwoven into his hometown of Calaveras County. “And the people are nicer.” Corporate Americans are not only starting their own companies,

“The cannabis industry provides community, freedom, social justice and employment. That’s a superrare combination. You often have to give up something to get one or two on that list. The cannabis industry doesn’t compromise. You can have everything on that list.” or flocking to hiring fairs, they’re networking and getting headhunted like never before. Bradford styles herself a professional COO-hunter with who turned to cannabis in 2013,

after 15 years doing HR for Fortune 50 companies. Lots of chemists are bringing in their expertise from Big Pharma. Store managers are jumping from Target and other big retailers. Lots of marketers from music and publishing are flooding in, as well as more and more agronomists and horticulturalists, she said. And lots of people are simply coming out of the closet with their true passion for cannabis. “Its architects, software developers or marketing and branding specialists—they’ve been growing on the side or selling edibles in the unregulated market for years,” she said. “They’re more comfortable about leaving their full-time job.” And they’re keen networkers. Witness the National Cannabis Industry Association’s growth, or Women Grow, which expanded from one chapter to countrywide, and threw a national conference this Spring with Melissa Etheridge. Women Grow Bay Area chapter co-founder Shabnam Malek also cofounded cannabis intellectual property boutique law firm Brand & Branch LLP, after a more mainstream past. Malek and partner Amanda Conley are witnessing a wave of lawyers and corporate marketing folks come over. They said professionals are jaded. “It sucks,” said Conley. “Corporate America isn’t all it’s cracked up to be. It’s not giving people everything they want.” “The cannabis industry provides community, freedom, social justice and employment. That’s a super-rare combination,” Malek said. “You often have to give up something to get one or two on that list. The cannabis industry doesn’t compromise. You can have everything on that list.” As for her straight-and-narrow law friends, “They are jealous to the point where we don’t talk about work with our traditional lawyer friends, because it’s like bragging. I feel like I’m bragging.” d

Be professional. Have a well-crafted interview process. Actually interview the candidates. Use more than just one person. Foster a great company culture with low turnover.

Low-Cost Tips To Snag Top Talent

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Be flexible and openminded. Don’t discount people with or without cannabis industry experience. Many leave cannabis experience off a resume. Alternately, plenty of reputable people come from within the industry itself.

Get HR help. Any company of 50 people needs an HR consultant. Just one hiring or firing lawsuit will be much more expensive.

Do “workforce planning.” Planning long-term is both necessary and terribly complex, especially because the laws change so fast.

Think, “Equity.” Rich equity packages help compensate most C-suite hires used to a large cash salary. But expect to pay competitively for CFOs with experience raising Seed or Series A or B rounds, who are also going to be your CPA.

Hot Job Positions in Cannabis

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PRODUCT HIGHLIGHTS

RYOT® Utility Tool Mighty Fast Herbal Infuser Making cannabis-infused edibles doesn’t get any easier than using the Mighty Fast Herbal Infuser. In three easy steps, this convenient machine takes the guess work out of making cannabis extracts for all cooking needs. The Mighty Fast Herbal Infuser has three settings that allow users to determine how long they would like to infuse their base of choice, giving an accurate dosage each time. To make things easier, the infuser has a “Mighty Clean” setting, which does a pre-cleaning of the machine after each usage (some hand cleaning is required). Small and convenient, the Might Herbal Infuser is great for cannabis cooks at all levels of expertise. PRICE: $159.95 MORE INFORMATION: theherbalinfuser.com

IntegraTM BOOST TM Storing cannabis can be a challenge when you’re trying to keep the humidity in cannabis containers at a specific percentage, but IntegraTM BOOST TM is here to help. Utilizing patent-pending technology, IntegraTM products are designed to either release or absorb moisture in the form a tiny packet that you place inside your cannabis container. This allows cannabis strains to stay crisp and fresh, which prevents mold from forming, and is said to also preserve the qualities and flavors of both strains as well as edibles. IntegraTM BOOST TM packets are available with either 55 percent or 62 percent relative humidity control, and both are currently available in either an 8 gram and 67 gram packages. PRICE: $4-$5.70 per package MORE INFORMATION: www.integra-products.com

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RYOT® has just released what many are calling the Swiss army knife of the 420 market—but technically it’s called the RYOT® Utility Tool. This new tool has everything a dabber or smoker needs. Whether it be poking, scraping, dabbing, scooping, cutting, grinding, drinking or anything where having the right tool makes all the difference. The hardened stainless steel lightweight construction can easily be carried around in your pocket and has a variety of useful essential tools for everyone. As an additional bonus, the tool comes with a slick silicone case with a built in wax storage jar. The RYOT® guys really thought this one through and there is no mistake this will soon be a cannasseur’s household item! MORE INFORMATION: www.volotrading.com

Dabsolute Concentrate Pen Hand crafted in the U.S., the Dabsolute Concentrate Pen is guaranteed not to disappoint users. Its patented airflow and coil design is guaranteed to prevent the pen from clogging so you won’t have to get a replacement. Other features include its stainless steel body with high heat ceramic components that guarantee its lifetime warranty. Easy to use, the Dabsolute Concentrate Pen is attractive in design and will vaporize any wax, oil or shatter if battery wattage is adjusted accordingly. All one has to do to ensure the pen lasts a lifetime is clean the unit every so often and enjoy! PRICE: $150 MORE INFORMATION: thedabsolutepen.com

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Colombia Joins in on International Legalization of Medical Cannabis by Victoria Banegas

In December 2015, Colombian President Juan Manuel Santos signed a decree legalizing the production and distribution of cannabis for medical and scientific purposes. Although the country decriminalized possession of 20g or less and cultivation of up to 20 plants, there was no legislation that clearly stated the legality of cannabis. According to the Daily Albany Star, there are 400,000 Colombians who can use cannabis to treat conditions like epilepsy, and this decree will help regulate possession of cannabis seeds and plants, production and distribution. “This decree puts Colombia in the group of countries that are leading in the use of natural resources to combat disease,” said Santos, shortly after signing the decree. Not only will medical cannabis be legally distributed to patients in Colombia, the decree created export licenses. These licenses will allow producers of medical cannabis products to conduct business with countries where the plant is legal. Santos also told the BBC that the demand for medical cannabis is in high demand and

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“These licenses will allow producers of medical cannabis products to conduct business with countries where the plant is legal.”

he hopes to conduct business with the U.S. and Canada. Colombia’s Health Minister Alejandro Gaviria told Bloomberg that he hopes cannabis will be a great export market for Colombia like wine in Chile and broccoli or asparagus in Peru. Some cannabis advocates, however, are not too excited about the newly legal medical cannabis market because they feel it will benefit big pharmaceutical companies. “We do not want pharmaceutical companies displacing or exploiting those doing good work because they have no muscle,” Marcela Tovar Thomas, a drug policy reform advocate told VICE. “I hope there will be measures to guarantee equal access to permits [to grow], which is not the same as monopolized control from the big pharma companies.” This is one move of many to change the international cannabis market. It will be interesting to see the different products offered through Colombian producers and how this country and others moving forward with legalization efforts will affect the global market. d

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