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inside this
issue. contents:
18.
Q2 2017
Essential Expertise Entrepreneur Kenny Morrison strengthens the cannabis industry with his knowledge and skill.
Publisher Jeremy Zachary Editor-In-Chief Jamie Solis associate Editor Ashley Bennett creative Evan Senn consultant Editorial Benjamin Adams coordinator Editorial Sheryll Alexander, Contributors Marguerite Arnold, David Branfman, Esq., Hilary Bricken, Bonni Goldstein, MD Natasha Guimond, Meital Manzuri, Nicole Potter, Ann Toney, Addison Herron-Wheeler photographers Jon Gilhooley, Tonya Perme, Eric Stoner Art Director Steven Myrdahl
Perfect Packaging
Production Tommy LaFleur Manager
New innovations in packaging are available for cannabis.
14. Time to Transition
26.
Explore the cannabis-based alternatives that can replace the most common over-the-counter drugs.
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First Impressions Be sure your employees are a reflection of your company values by understanding the importance of appearance.
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Cannabis in Colombia Once known for its roots in illegal drug trafficking, Colombia has become the newest country to embrace international cannabis cultivation.
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Medical Advancement Uruguay has set a new pace for the industry, as the country will soon sell recreational cannabis over-the-counter.
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Digital Representation Tips and advice on bolstering a business’ essential online presence through website design.
Graphic Designer Tanya Delgadillo sales director Justin Olson Account Jon Bookatz, Alex Brizicky, Executives Eric Bulls, Kim Cook, Cole Garrison, Beau Odom, Gloria Santiago, Garry Stalling, Ryan Tripp, Chris Walker, Vic Zaragoza
general Manager Iris Norsworthy Office Assistant Angelina Thompson digital content David Edmundson manager Interns Kiara Manns
in EVERY issue. 06. news bytes 10. by the numbers 36. legal 40. trends 44. event listings
Distribution Cruz Bobadilla Manager CultureB2B Magazine® is published quarterly and distributes 20,000 copies at over 6,000 locations throughout the United States and Europe. No articles, illustrations, photographs, or other matter within may be reproduced without written permission. CultureB2B Magazine® is a registered trademark. All rights reserved. Phone / Fax (888) 694-2046 B2B@iReadCulture.com
CULTUREB2B® Magazine is printed using post-recycled paper.
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First-Ever Cannabis ETF Launches in Canada
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bytes Arkansas Governor Signs One Dozen Cannabis Bills
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uring the 91st General Assembly, Gov. Asa Hutchinson signed 12 medical cannabis bills that modify the voterapproved Arkansas Medical Marijuana Amendment. An additional five bills have also received approval from the Senate and the House. In order to pass, bills must receive a two-thirds majority vote from both chambers. Of the 12 bills that have been signed into law, Act 740 is sponsored by Rep. Robin Lundstrum, and it prohibits cannabis smoking in areas where cigarette smoking is prohibited, and also bans smoking in front of a child who is younger than 14 years old, near a pregnant woman, or while
in a vehicle. Lundstrum defined her bill as “straightforward. It’s not taking anybody’s marijuana away, but it is lining us up with the Clean Air Act.” Another recently signed bill, Act 1369, aims to redirect some of the program’s tax revenue. Act 638 places the Arkansas Medical Marijuana Commission under the state Department of Finance. Act 545 mandates that the Arkansas State Police and FBI will conduct background checks. Several more housekeeping changes to the Arkansas Medical Marijuana Amendment have been made, demonstrating the commitment that Arkansas legislators have to regulating the state’s cannabis industry.
Majority of French Presidential Candidates Support Loosening Cannabis Laws
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our out of five of France’s major presidential candidates support at least loosening cannabis laws. Centrist Emmanuel Macron and right-wing 6
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candidate Franscois Fillon both believe that law enforcement should issue warnings or fines for cannabis use, instead of throwing individuals into jail. Left-wing candidates Jean-
Luc Mélenchon and Benoît Hamon support the outright legalization of cannabis in France. Mélenchon shared on his website why he supports legalization, which has been translated from French. “As I am absolutely against cannabis, I also support legalizing it. And do not come and tell me that it is hypocritical because what is hypocritical is to say we are forbidden; we know that everybody smokes on all sides and everywhere,” Mélechon stated. “We’ve wasted enough time, lost enough money and done enough damage to people. Now we have to get serious.” Only the far-right candidate, Marine Le Pen, is against loosening cannabis laws in France. Cannabis has been illegal in France since 1970, and the punishment for taking any illegal drug can result in a one-year prison sentence or a fine of up to €3,750.
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annabis stocks have typically been limited to the oftenoverlooked OTC Markets Group and in penny stocks, however, the cannabis industry is establishing a stronger presence in the stock exchange. The world’s first exchange traded fund (ETF) that offers stocks involved with medical cannabis bioengineering and production was launched in Canada. The Horizons Medical Marijuana Life Sciences ETF debuted on the Toronto Stock Exchange on April 5, and President and Co-CEO Steven Hawkins is proud of the monumental progress. “Canada is the birthplace of ETFs and has been home to many firsts in the industry,” said Hawkins. “The Horizons Medical Marijuana Life Sciences ETF is another made-inCanada ETF milestone, the world’s first marijuana ETF. At Horizons, we take pride in our innovations, so we’re very happy that for the first time, investors will be able to access a lowcost, diversified portfolio of companies that are directly involved in the rapidly growing medical marijuana industry.” The fund currently has holdings with 11 major Canadian cannabis companies and three American cannabis companies.
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Lift Cannabis Expo
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he Lift Cannabis Expo is returning once again for another successful year of exhibiting what the Canadian cannabis industry has to offer. This year, along with a 50 percent increase in floor space and an extra day of opportunity, the event will be bringing over 200 exhibitors and special guests. Speakers such as The Cannabist’s Ricardo Baca, Brent Reynolds, Phillipe Lucas of Tilray, Dr. Paul Daeninck of the Canadian Consortium for the Investigation of Cannabinoids, Jacque Miller, Gregory Smith, Andrea Dobbs, Chuck Rifici and more will be in attendance. The first day of the expo is referred to as “Industry Day” and is exclusively for industry professionals. The rest of the weekend includes a variety of panels and seminars, and also a contest where startups battle with their pitches for hefty prizes. The Lift Industry Kick-Off Mixer offers food, drink and entertainment and great opportunities to meet like-minded entrepreneurs. The Canadian cannabis industry is rapidly progressing towards legalization, so no matter where you’re from, if you’re a cannabis business owner or investor, this is the place to be.
What: Lift Cannabis Expo. When/Where: Fri, May 26Sun, May 28. Metro Toronto Convention Centre, 222 Bremner Blvd., Toronto, Ontario, Canada. Info: Visit mtccc.com for details.
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Mexican Study Confirms Effectiveness of CBD Oil Drops for Epileptic Seizures
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he Mexico-based Por Grace Foundation announced that cannabidiol (CBD) hemp oil has helped reduced the number of seizures in children with refractory epilepsy (RE), according to a study published in Neurology Research International. The study found that out of 43 cases of children who were treated with CBD oil, 81 percent showed a reduction in convulsions. These findings are similar to other studies conducted on the same topic, but President Raúl Elizalde of the Por Grace Foundation commented that the results continue to solidify cannabis as a reliable medicine. “These new survey findings where the improvements reported by the parents were related not only to the frequency of the seizures, but also their duration and intensity, come on the
heels of another critical study recently performed in Mexico with our Company’s RSHO-X™ product, which also showcased the therapeutic benefits of hemp-based botanical CBD,” stated Elizalde. While these findings will continue to help patients in Mexico, Elizalde shared his company’s excitement that it will also help people worldwide. Eighty-eight percent of respondents showed improved cognition, 86 percent showed improved mood, 77 percent showed improved sleep, and 67 percent showed a better appetite. This was the first study in Mexico to explore the application of cannabis in pediatric RE.
Portland Residents Purchased More Cannabis than the Rest of the State
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regon Department of Revenue released a report that shared how Portlanders purchased more cannabis than the rest of the state combined during the January 4, 2016 and March 31, 2016.
Portland residents bought 3,039,000 grams of cannabis compared to the rest of Oregon residents, who bought 1,958,000 grams of cannabis. “The purpose of this report is to help policymakers and the general public understand how Oregon’s marijuana tax program operates and the characteristics of taxed recreational cannabis sales in Oregon. This document is the first report by the Department of Revenue to describe this new tax program using data from tax returns filed by registered cannabis businesses,” according to the text of the Oregon Marijuana Tax Statisical Report. The report also states that Oregon’s cannabis tax and operations are different from other taxes in the state. For this reason, the document was released to give readers a better understanding of these nuances. An average of 1.3 grams of cannabis was legally sold in Portland, per person. In the rest of Oregon, an average of 1.2 grams of cannabis was legally sold per person.
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The approximate initial amount of money, in millions of dollars, that Washington State is looking to pay for a new seed-to-sale tracking company: (Source: U.S. News)
3
The number of doctors who were recently approved to recommend medical cannabis to patients in South Florida: (Source: Miami New Times)
236
The amount of money, in millions of dollars, that was collected from recreational cannabis sales in Colorado in February 2017:
126.1
(Source: Colorado Department of Revenue)
The number of cannabis companies that were recently added to the U.S. Marijuana Index in mid-April: (Source: Forbes)
The amount of money, in millions of dollars, that a Canadian medical cannabis producer is expanding its investment in an Arizona-based (Source: Aphira) cannabis cultivator:
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The estimated amount of dried cannabis, in kilograms, that was harvested in Chile by AusCann Group Holdings for the first time in midApril: (Source: Proactive Investors)
300
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The estimated number of people who attended the Las Vegas Hemp Festival in April: (Source: Las Vegas Sun)
15,000
The number of pharmacies in Uruguay that have registered with the (Source: The Independent) government to sell adult-use cannabis:
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The Importance of Appearance How your employees represent themselves can have a major impact on your business and its longevity by Evan Senn
ven though we teach our children that they shouldn’t judge a book by its cover, the majority of human beings do in fact judge books by their covers. Houses are financially appraised by their curb appeal, and people evaluate each other based on the visual appearance of how they choose to dress and behave. Obviously, what’s inside a person is more important in the long run, as is the case with businesses as well, but people will judge your business based on its outward appearance, its displays and the way your employees present themselves to the customers. Social psychologists studying the impact of imagery have determined that within the first 30 seconds of meeting or interacting with someone, that individual has made internal determinations about your character and abilities. In 30 seconds, people form impressions of you
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based almost entirely on what they see—your clothes, hairstyle, smile, how you carry yourself and many other nonverbal communications and mannerisms. Needless to say, appearances count. These first impressions can also be lasting ones. Psychologists call it the “halo effect.” If your customers only spend a few minutes with your employees, they do not get the opportunity to fix or alter their first impressions, and that can have a lasting effect on their return business, as well as their desire to tell other people about their impressions of your business and employees. The initial impressions that people make within the first 30-second encounter include the following: Educational level, career competence and success, personality type, level of sophistication, trustworthiness, sense of humor and social class or heritage. In his comprehensive research on communication, sociolinguist Albert Mehrabian found that in a face-to-face encounter, seven percent of a verbal communication comes from the words used; 38 percent comes from the vocal tone, pacing and inflection; and 55 percent of the message is transmitted by the speaker’s appearance and body language. In a 1998 survey conducted by psychologist Jeffrey Magee revealed that relaxed dress codes actually had a detrimental effect on business, resulting in relaxed productivity, punctuality, ethics, manners and quality. Employee uniforms are a great representation of where the brand is headed, letting customers know what the company’s intentions are for its future. Many business owners have noted that being in a uniform helps an employee get into a frame of mind of being present at their job and representing the brand, almost like getting into a role for a theatrical production. The employee feels more responsible
for “acting the part.” A uniform can alter an employee’s mannerisms to meet the company’s needs. When employees aren’t dressed appropriately they can be lackadaisical about their job and their behavior. With scientific and social research backing the foundation that employee appearance can be incredibly helpful or harmful, why do so many cannabis-related businesses choose to let their employees look overly casual, dirty, unprofessional or overtly sexual? The original cannabis culture started without much thought into how it appeared to others, its presentation or its packaging. Now, the cannabis world is a thriving and booming industry where presentation is of the utmost importance, especially to help change stigmas, misrepresentations and decades of anti-cannabis propaganda. In many areas, it is common practice for cannabis collectives or dispensaries to hire attractive young women with little-to-no real education or experience with cannabis, and require or encourage them to dress provocatively, in hopes that their customers’ visual and sexual attraction to the employees will encourage them to spend more and to come back. At cannabis competitions and conventions, many companies choose to have “booth babes” to represent the company, which has proven to only attract a fair number of visitors, while making many other prospective visitors uncomfortable. This can also make prospective visitors to your booth think that your employees—and by association, you, the business owner—don’t take your business seriously. When the stock market collapsed in 1929, people embraced cheap thrills—boozing at speakeasies and visiting brothels—for comfort and distraction. The “sex sells” adage has proven to be effective in visual advertising and marketing throughout history, but has a limited marketability and a limited lifespan as effective advertising and marketing; with the cannabis industry involving large percentages of female business owners and a large female consumer base, the “sex sells” marketing style is not effective across the board or for long periods of time. What has been effective across the board is conservative and consistent professional attire, attractive grooming and proper personal hygiene. Conservative dress codes do not
offend people, and they make the first 30-second impression of professionality and seriousness about business and respect. Uniforms or consistent employee dress codes have been effective in every industry, and keeping that professional appearance in line with the company’s individual branding is key to return business and brand development. Of course, every company is different. A law firm has a different dress code than a company that employs people who work outside in the heat. Despite these differences, it is essential that every company create and enforce a policy that outlines an appropriate standards of employee appearance. It is In 30 seconds, important to make compliance people form mandatory, and as a business owner, you should update and impressions of redistribute the policy as trends or company culture changes. you based almost Whether your business entirely on what warrants matching company T-shirts, long sleeve button-up they see—your shirts and khakis, a specific color palette or full suits, your clothes, hairstyle, dress code policy should smile, how you include a statement that specifies each employee›s carry yourself clothing requirements, personal appearance and personal and many other hygiene to help project a nonverbal professional image. Good grooming and appropriate dress communications inspire customer confidence and help to create a pleasant work and mannerisms. environment for all. Your policy Needless to say, should go on to explain what type of clothing is acceptable appearances and not acceptable, as well as behavioral expectations. c count.
Total Plants Eradicated (Millions)
Will the Cannabis Eradication Program Grow Under Trump? 12 10.4M
DEA Cannabis Eradication Program
10.3M
10
$18 Million
2015 Cannabis Eradication Budget
8 6.7M
$740
6
Cost/Plant (NH)
4.4M 3.9M
4
4.3M
4.2M
$113,000
2
Cost/Arrest (HI)
0 2009
2010
2011
2012
2013
2014
2015
Source: Drug Enforcement Agency
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kept fresh New innovations and best practices in storing, transporting and packaging cannabis flower
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by Nicole Potter
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rom seed-to-sale, cannabis flower must be carefully cultivated and cured in order to maximize quality and ensure that it’s free of mold, bacteria and other harmful substances. As a business owner, whether you purchase product from a local grower or grow it yourself, it’s your job to guarantee that all cannabis flower is safely stored, packaged and ready for the customer to consume. Like any herb, cannabis flower can lose quality quickly if it’s exposed to too much light, air or a number of other factors. However, you can make sure that your stock of cannabis flower is protected to the fullest with these tried-and-true packaging solutions to guarantee quality.
Glass Jars
There’s a reason that most cannabis dispensaries store and display their flower in glass jars. Not only do glass jars make for an excellent way for consumers to view the variety of cannabis available for sale, but glass jars also provide consistent freshness. Many glass jars and bottles can seal in both the scent and freshness of cannabis flowers, and they are reusable, which makes them a reliable option as one of the most used methods of packaging cannabis. Additionally, glass jars come in a variety of sizes and shapes, and for the price, it is an efficient and inexpensive choice for storage and packaging of flower.
Pharmaceutical Medicine Bottles
Not only are orange-colored pill bottles associated with medicine coming from a pharmacy, but they are also the perfect size to store most average-sized cannabis flowers. The bottles are small, slender and lightweight for transport, which makes it easy for customers to purchase and take home for their personal use. These bottles also have a longstanding reputation for their uniquely effective child-proof tops, which is even more appealing to customers who want to keep children, pets or unsuspecting family members from finding their cannabis flower. This method of storing cannabis flower has been the goto packaging solution for many decades, and its reliability as such.
Nitrogen-Sealed Cans
This unique packaging method is high on the innovation scale. Nitrogen-sealed cans utilize the same style of can that are used to store foods like tuna fish or other pre-sealed cans at your local grocery store, complete with a pull-off top. In the case of cannabis, each can contains a few cannabis buds and is filled with
nitrogen prior to being sealed. This helps to prevent mold or bacteria from developing, and is also praised for being a foolproof way to secure freshness for an extended amount of time. Most importantly, this method of storage promotes odorless packaging and transporting until it has been opened—after that, it can be temporarily re-sealed with a plastic top.
Stainless Steel Containers
Newer to the market are airtight containers made from stainless steel. Similarly to the nitrogensealed cans (minus the nitrogen), these can help seal in oxygen to ensure the cannabis flower is fresh—however, this ingenious creation has a lid that that can be removed and replaced infinitely. Stainless steel storage containers such as these also help keep cannabis flower in the dark away from harmful exposure to UV light. Not only are these containers reusable, but they are often sold in a variety of larger sizes, which is ideal for dispensaries that dry and cure their own cannabis in-house. These containers also help maintain the humidity level, especially with the addition of humidity packets.
Plastic Bags
This is by far the most traditional way to store and transport cannabis, and it is also the most cost-effective method around. Plastic bags are perfect for temporary storage of cannabis flower. While plastic sandwich bags are both cheap and come in large quantities, specifically crafted plastic bags can work in conjunction with a vacuum-sealing machine to remove all air from the packaging. While plastic bags are arguably the most inexpensive method of storage, other options such as plastic food containers offer more convenient portability and can assist in keeping the scent of cannabis from permeating through the bag. c
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Tricks of the Trade
Kenny Morrison’s diverse experience and wisdom further the burgeoning cannabis industry by Benjamin M. Adams
ver a decade ago, Kenny Morrison opened up two medical cannabis collectives in West Los Angeles and Venice. Years later, he founded VCC Brands (formerly the Venice Cookie Co.) and co-founded its Washingtonbased sister company, Evergreen Herbal. Morrison is taking the cumulative experience of owning and operating retail businesses, manufacturing and production businesses and applying it to the California Cannabis Manufacturers Association (CCMA) as President and as a Board Member of the California Cannabis Industry Association (CCIA.) CCMA has been actively lobbying for fair regulations for the future of legal cannabis business in California. These regulations are essential, as California’s cannabis industry is projected by New Frontier Data to be worth more than $6.59 billion by 2025. Morrison recalls how he has seen California’s cannabis industry transition from the pre-Medical Cannabis Regulation and Safety Act (MCRSA) “wild west” era to where it is now. “Over the past I have operated in a shadowy environment completely devoid of regulation, and I’ve navigated an environment that experienced overly burdensome freshman regulations,” Morrison told CULTURE. “I’m more of a survivor than a business man. But a friend recently pointed out that in corporate America those two things are often one and the same.” VCC Brands has expanded to sell infused honey, chocolate, cookies, candy and beverages. All of Morrison’s products, such as the award-winning Cannabis Quencher line, are all labeled clearly and concisely and are consistent with state regulations. Leading by example, Morrison has shown dedication to promoting responsible practices in this industry. >>
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Simply put, we want to ensure a strong business climate for California cannabis businesses, namely producers of cannabis and cannabis products.
photos by Eric Stoner
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Over the past I have operated in a shadowy environment completely devoid of regulation, and I’ve navigated an environment that experienced overly burdensome freshman regulations. I’m more of a survivor than a business man. But a friend recently pointed out that in corporate America those two things are often one and the same.
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As president of the CCMA, Morrison is paying close attention to regulatory changes as California lawmakers attempt to build a bridge between MCRSA and Proposition 64. “Simply put, we want to ensure a strong business climate for California cannabis businesses, namely producers of cannabis and cannabis products,” Morrison said. “This keeps us very focused and allows us to rely on and work closely with other great cannabis trade associations, like CCIA and California Growers Association (CGA).” The CCMA represents trusted cannabis brands, many of which are represented by board members, including Jetty Extracts, Cheeba Chews, Altai Brands, Kiva Confections, 710 Combinator, Herbalcure and Hashman Infused. Morrison is on the board of the CCIA along with Kristi Knoblich, who is COO of Kiva Confections. Knoblich
also chairs the CCIA’s Manufacturing Committee. “CCMA is laser-focused on the issues of top concern to manufacturers. With this approach, we can more effectively tackle issues from two different angles.” The two groups are able to work in tandem on issues and support each other where needed. Knoblich said that each of the two groups support the other by working together. Members of the CCMA are committed to tracking and tracing each of their product batches, and they use third-party testing multiple times. Consistency of their products is crucial for building a foundation of trust with their consumers. “Our members are some of the oldest and well-known brands in the business,” Morrison said. For those interested in becoming a part of CCMA, the organization accepts new members by invitation. >>
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The CCMA helped to successfully lobby Gov. Jerry Brown to make alterations to state laws that regulate cannabis businesses. Many of the CCMA’s concerns were addressed in the governor’s Trailer Bill Language. Although nothing is finalized before the gavel strikes, few groups have done more to protect cannabis businesses in California than the CCMA and the CCIA. Originally, the exclusory distribution license in California was only available to third-party companies. The CCMA helped push for open distribution. Open distribution helps infant businesses
affected. “We anticipate the need for additional third party testing labs, or increased throughput at the existing labs to ensure that cannabis and cannabis products can get to market in a timely fashion,” Morrison said. The United Food & Commercial Workers (UFCW) is currently the only union that represents cannabis workers in California. When it comes to unionization, Morrison is comfortable with the UFCW than the International Brotherhood of Teamsters (IBC). “[The IBC wants] more members. God bless ‘em. They are going to gain some from the cannabis industry,
You have to treat your staff as good as you treat your customers. enter the cannabis space. By providing California cannabis cultivators with legal outlets of distribution, they are essentially discouraging out-of-state diversion. “Manufacturers’ products have logos imprinted directly on them, or packaging that says, ‘Made in California’ on it, so a manufacturer’s temptation to divert outside the state is far, far less,” Morrison said. Morrison expects that California could face similar problems that plagued Oregon when recreational cannabis testing standards were first implemented. If necessary changes aren’t made, thousands of businesses and their investors may be negatively
I would imagine,” Morrison explained. “However, the UFCW has been occupying the cannabis space for years, long before these Teamsters got interested and has demonstrated a much better understanding of the needs and culture of our particular industry.” Other business owners could benefit from the way Morrison has handled his own businesses, prioritizing his employees while simultaneously prioritizing his customer base. “You have to treat your staff as good as you treat your customers,” Morrison advises. “And of course HACCP [Food Safety] plans and published [Standard Operation Procedures] don’t hurt either.” c
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Getting Over It
How over-the-counter drugs can be replaced by cannabis
by Bonni Goldstein, MD
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eople often question how cannabis can treat so many different ailments, such as epilepsy, cancer, chronic pain and Post-Traumatic Stress Disorder. The answer lies in the location of a critical physiologic system that we humans have called the endocannabinoid system. This system is made up of our “inner cannabis” compounds called endocannabinoids and the cannabinoid receptors that sit on the membranes of many cells in our brains and bodies. The endocannabinoid has the important role of balancing the messages sent
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between our cells. The location of the endocannabinoid system has been mapped out by researchers, who found an abundance of receptors in the brain, gut and immune system. In situations of illness, injury and inflammation, the endocannabinoid system is triggered and endocannabinoids are released, working to balance the “bad” messages. Sometimes we are overwhelmed by these insults and balance can’t be achieved. Taking cannabis medicine can help the endocannabinoid system to get back into balance and stay in balance as the plant cannabinoids mimic our endocannabinoids.
Cannabis medicine can replace over-the-counter (OTC) medications that are used to treat symptoms that stem from common ailments. OTCs only treat the symptoms without addressing the underlying condition. This is why so many patients report that the underlying condition improves, reflecting that balance has been achieved. OTC medications that can be replaced with cannabis include those that treat pain, insomnia, inflammation, menstrual symptoms and gut symptoms. All of these symptoms stem from areas that contain cannabinoid receptors which, when targeted with plant cannabinoids, may become balanced, relieving the symptoms.
Pain
OTC pain relievers such as acetaminophen, ibuprofen and naproxen are often thought of as effective and quite safe. However, there are numerous side effects such as liver damage, nausea and vomiting (from acetaminophen) and gastric bleeding, heart failure and increased risk of stroke (from ibuprofen and naproxen). Cannabinoids such as CBD, THC, CBN, CBC and CBG have been shown to alleviate and lessen pain with little to no side effects when taken in the proper doses. In addition to less pain, most of these cannabinoids are also antiinflammatory and work to eliminate the root cause of the pain.
Insomnia
OTC sleep aids are very popular for those who suffer with primary insomnia (no cause for the sleep disturbance) or secondary insomnia (poor sleep due to another medical condition). OTC sleep aids mostly contain diphenhydramine, an antihistamine allergy medicine that has a wanted side effect of drowsiness. However, side effects such as constipation, dizziness, daytime sedation, confusion and an increased risk of dementia can occur and certainly are unwanted. THC when combined with myrcene, a common essential oil in cannabis, works quite well to help with sleep. Many patients report that cannabis helps them have better sleep, without the adverse side effects. >>
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rowX is a new and innovative gardening conference and expo that is coming to San Jose. This event features a guest speaker series, sponsorship opportunities and interactive features for all attendees. There will be a variety of seminars on topics such as insurance, cultivation, licensing, lobbying and the latest industry trends in technology in gardening mediums. GrowX is the go-to place to get an overview of MCRSA and Prop. 64 regulations during the seminar on the “State of the California Cannabis Industry.” For those looking to gather knowledge will benefit from the GrowX’s “Dispensary 101” seminar, which guides attendees through IRS Tax Code 280-E. Many top-tier suppliers will make appearances at this expo, which creates numerous opportunities to meet up-and-coming business people. Additionally, this event is sponsored by Maximum Yield Inc., which has been hosting indoor cultivation shows for 15 years.
GrowX Modern Growing Conference + Expo
Over-the-counter medications that can be replaced with cannabis include those that treat pain, insomnia, inflammation, menstrual symptoms and gut symptoms.
What: GrowX Modern Growing Conference + Expo. When/Where: Sat, June 3-Sun, June 4. San Jose McEnery Convention Center, 150 W San Carlos St., San Jose, California. For more information: Visit mygrowx.com for details.
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Inflammation
OTC anti-inflammatories, called non-steroidal antiinflammatory drugs (NSAIDS) work by blocking enzymes which in turn decreases the production of an inflammatory compound called prostaglandin. These enzymes have positive effects such as protecting the gut lining, promoting normal blood clotting and promoting normal kidney function. When these enzymes are blocked, gut ulcers and increased risk of bleeding may result. There are many cannabinoids that work as anti-inflammatories, such as CBD, CBDA, CBG, CBGA, THCA and THC. The “entourage effect” of these anti-inflammatory compounds makes cannabis medicine a great choice for treating inflammation.
Menstrual Symptoms Many women experience symptoms of Premenstrual Syndrome (PMS) including cramping, mood swings, headache, bloating and fatigue. Current OTC medications include NSAIDS, and combination medications that contain acetaminophen, caffeine and either pyrilamine (an antihistamine) or pamabrom (a diuretic). Side effects include drowsiness, dizziness, constipation and severe allergic reactions. Many patients find cannabis helps combat PMS. A much-repeated rumor is that Queen Victoria who ruled the British Empire from 1837-1901 used cannabis to treat her menstrual complaints. Depending on symptoms and personal preference, cannabinoids such as THC, CBD, THCA, CBDA and CBN can all be useful for PMS.
Nausea/Vomiting/ Gut Symptoms
There are a few OTC medications available for nausea, vomiting, stomach upset and diarrhea. Bismuth subsalicylate is mostly used as an antacid and antidiarrheal medication, but it is also promoted to treat nausea. It is thought to work by coating the stomach. Other OTC antinausea medications include dimenhydrinate, diphenhydramine, and meclizine hydrochloride, and although these are all fairly safe, they have limited effectiveness. Loperamide is an antidiarrheal medication with side effects of drowsiness, constipation, vomiting, abdominal pain, and rare skin reactions. Cannabinoids have been found to reduce gastrointestinal motility, meaning they slow down the transit time of gut contents, thereby slowing down diarrhea. THC, CBD, THCA and CBDA all work to diminish nausea and vomiting. Many patients with nausea from chemotherapy, other medications, or migraine headaches report significant relief of nausea with cannabis use, with inhaled THC being the most effective.
As you can see, OTC medications can be replaced with plant cannabinoids, often with little-tono side effects and with multiple symptom relief. Since cannabis can be inhaled, applied topically, taken sublingually or as edibles, patients can customize their delivery method to get the best results. c
Annual Number of Daily Doses Prescribed Per Physician 95,762
States Without a Medical Cannabis Law
85,148
States With a Medical Cannabis Law
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11%
Reduction in Daily Doses Prescribed
20,000
40,000
60,000
80,000
100,000
Source: Medical Marijuana Laws Reduce Prescription Medication Use In Medicare Part D, Ashley C. Bradford & W. David Bradford, Health Affaire 35, No. 7/2016
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The 3rd Annual DispensaryNext Conference & Expo
D
ispensaryNext is a conference specifically designed for cannabis dispensary owners and those in marketing and managing positions who are looking to learn more about how to improve their businesses. This event is unique, as it will be offering 20 “session agendas” that explore improved business practices in how to manage and market a dispensary. The conference will be bringing together over 75 vendors with the most recent and innovative pieces of technology that can aid dispensaries in a variety of ways. Session leaders include industry insiders such as Amy Andrle, Alexa Divett, Alyson Macmullan, Jen Meyer, Megan Stone, Nancy Whiteman, Charles Oster and Eva Rosenberg. The industry is transitioning into a new realm of regulation and best business practices, so events such as this one will be essential to the success of the industry as a whole. What: 3rd Annual DispenaryNext Conference. When/Where: Mon, July 17-Tues, July 18. Crowne Plaza Denver Airport Convention Center, 15500 E 40th Ave., Denver, Colorado. Info: Visit dispensaryexpo.com for details.
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Progress in Paradise
Colombia continues its transformation into a jewel of cannabis cultivation
F
by David Edmundson
ew countries have been ravaged by war more than the South American nation of Colombia, but from the ashes of over 50 years of conflict, cannabis cultivation may be the key to bringing the nation back together and elevating its citizens out of debilitating poverty. Since the 1960s, cartels and drug empires used the immense wealth garnered by trafficking cannabis and illicit drugs to fund an army that they loosed on the nation’s government and rival organizations. Then in 2016, under the leadership of President Juan Manuel Santos, the warring factions agreed to a ceasefire, ending over a half century of fighting. That same year President Santos overhauled the nation’s outdated drug laws and legalized medical cannabis. The Colombian government’s decision allowed them to reap the financial benefits of the cannabis industry that had funded small guerrilla operations so well that they were able to stand up to the entirety of the Colombian military. In addition to providing medicine to its people, the law also granted authorization for commercial cannabis cultivation for medical purposes. Canadian-based PharmaCielo LTD., which was founded in 2014, has a powerhouse board of directors that includes former executives from Phillip Morris and Bayer. The company is requesting that the Colombian government allow it to cultivate cannabis on land previously occupied by rebels who once used it as a base of operations, and where a large portion of Colombia’s cannabis was produced. PharmaCielo is awaiting approval on
its cultivation license application, but it is currently licensed in Colombia to process and manufacturer cannabis oil. “Receiving cultivation licenses is the next stage in PharmaCielo’s goal of becoming Colombia’s first fully licensed and integrated grower and manufacturer of cannabis oil extracts,” PharmaCielo President and CEO Dr. Patricio A. Stocker said in a press release. PharmaCielo’s sales pitch includes the promise to pay the growers a better wage than the previous tenants. Under the cartel’s rule, Colombians were forced to work in unbearable conditions for little to no money. The company has chosen the area of Medellín for their Colombian headquarters. “The medical marijuana industry can become bigger than coffee, bigger than flowers,” said Stocker. “Our aim is to help the most [troubled] regions in the country.” “They were in very bad shape in this area, they have a very long history of suffering there,” Stocker added. “It is not just developing the cannabis business. This will help generate funds to develop other businesses. Politicians and local communities want to develop the region; and cannabis, combined with other agricultural activity will take them out of poverty.” Colombia’s location near the equator also makes it an ideal location for cannabis cultivation. The country receives a steady 12 hours of sunshine regardless of the time of year. This allows farmers in the area to cultivate outdoors year round without the added cost of electricity for lights. Colombia is also rich with natural water sources, so companies can avoid significant water charges as well. When added to the country’s low cost of labor, it is no wonder why companies like PharmaCielo are interested in investing heavily in Colombia.
It is not just developing the cannabis business. This will help generate funds to develop other businesses. Politicians and local communities want to develop the region; and cannabis, combined with other agricultural activity will take them out of poverty. This national shift toward cannabis is something truly unique. Colombia received $10 billion over the last 15 years from the United States to combat the nation’s alarming drug industry. Now North American companies are looking to invest billions of dollars to grow the medical cannabis market in the country. The irony is not lost on Colombia’s president, who received the Nobel Peace Prize in 2016 for ending the conflict in Colombia. “It makes no sense to imprison a peasant who grows marijuana, when nowadays, for example, its cultivation and use are legal in eight states of the United States,” he said during his Nobel acceptance speech. He continued that the United States continued “War on Drugs” is creating significant environmental damage and violence to under-developed nations and is forging an ecosystem for black markets to flourish. Many farmers in Colombia are switching their crops over to cannabis. Where traditional plants like tomatoes and mangos have limited sales opportunities outside of local markets, cannabis has a global market and a demand that cannot be satiated. Instead of competing with the big corporations, a group of 53 local cultivators is looking to partner with PharmaCielo. The CauCannabis Cooperative was formed in July of 2016 and applied for a joint license with the Canadian operation. The cooperative hopes the incoming companies will utilize their already operational farms in lieu of starting from scratch with a new facility. c
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Progressive Precedent
Uruguay will be the first country to sell recreational cannabis over-the-counter by Jacob Cannon
T
he Oriental Republic of Uruguay has made its final step toward full legalization of recreational cannabis, setting a new precedent on cannabis reform across the globe. From requiring national registration of recreational cannabis consumers to offering grams at record-low prices, this latest announcement paints the revolutionary future of Uruguay’s cannabis industry. Presidential aide and Head of the National Drugs Council, Juan Andrés Roballo, made this much-awaited announcement on April 6 during a press conference. “Cannabis will be dispensed in local pharmacies starting in the month of July,” Roballo said. “Sometime in the first two weeks of July.” Out of the 30 pharmacies the government hopes to have distributing cannabis in July, only 16 pharmacies have registered so far. Uruguay’s recreational cannabis industry has a unique requirement for adults who would like to purchase cannabis. This program is only open to Uruguayan citizens or permanent residents aged 18 and over. Interested participants must sign up for a national registry to purchase cannabis at pharmacies. The registry started accepting applications on May 2.
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This registration process was created to ensure that each adult does not purchase more than the allotted 40 grams of cannabis per month (or 10 grams per week). Permitted pharmacies will sell cannabis in five-gram containers. However, it is expected that legislation to allow the sale of 10-gram containers will be introduced. Buying cannabis at pharmacies is not the only option available. Adults are permitted to cultivate cannabis in their residences or join a cannabis cooperative. The industry will be regulated by
consuming, and so the risks will diminish considerably,” Roballo said. So far, the country has been stockpiling cannabis that has been grown by two state-supervised suppliers. While the South American country has already acquired 882 pounds of cannabis so far, the call for cannabis in the country is much steeper. It’s estimated that there are 150,000 regular cannabis consumers in Uruguay. “We’re far from covering the real demand,” said Roballo. However, the output by participating cultivation companies is expecting to increase once sales begin. Another unique aspect of Uruguay’s burgeoning industry is the price of cannabis—the country has set a progressive precedent for the rest of the world. One gram of cannabis will cost $1.30, according to Secretary General of the NDB, Diego Olivera. In comparison, one gram of cannabis in Colorado sells for an average of $6.61, which is 25 percent less than it sold during the first quarter of 2014, according to BDS Analytics. A portion of the revenue generated from recreational cannabis sales will be allocated between private pharmacies and prevention programs by the Institute of Cannabis Regulation and Control. Less than $1 from each gram sold will go to the company that produced the cannabis. Back in 2013, Uruguay legalized
Supporters expect this new development will help eliminate the black market while allocating funds toward the country and legitimate businesses.
the National Drug Board (NDB). The cannabis sold in pharmacies will be grown by licensed producers under the supervision and regulation of the NBD. This oversight will be enacted to ensure quality assurance and public safety. “Buyers will have complete certainty about the quality of the product they are
the consumption, production and sale of adult-use cannabis. Advocates have been awaiting pharmacy sales of cannabis to put this law into motion. Supporters expect this new development will help eliminate the black market while allocating funds toward the country and legitimate businesses. c
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ICRS Symposium on the Cannabinoids
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he International Cannabinoid Research Society (ICRS) has held symposia each year in locations across the globe since 1990. The ICRS dedicates itself to scientific research in the field of all cannabinoids, including the endogenous, plant-based and synthetic cannabinoids and related bioactive lipids. As a veteran event in the industry, the symposium in Montréal serves as an open forum for researchers to meet and discuss their work. This year, attendees will be given the opportunity to listen to speakers such as Catherine Wooley (Professor and William Deering Chair of Biological Sciences at Northwestern University), Francis Lee (Professor and Vice Chair for Research with the Department of Psychiatry at Cornell University) and Margaret McCarthy (Professor and Chair of the Department of Pharmacology at the University of Maryland). Among these knowledgeable industry insiders, hundreds of other lectures and poster presentations are expected to be offer new perspectives and approaches to understanding the world of cannabinoids.
What: ICRS Symposium on the Cannabinoids. When/Where: Thurs, June 22-Tues, June 27. Le Centre Sheraton Montréal, Montréal, Quebec, Canada. Info: Visit icrs2017.org for details.
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Website Wizardry
Ensure the best user-friendly experience with top-notch cannabis website design by Benjamin M. Adams
There are several critical factors to consider when developing an effective, actionable website for your cannabis business. In the technological year of 2017, the importance of online presence should not be underestimated. Every enterprise in the cannabis industry needs a competitive website, whether it’s a dispensary, vendor, manufacturer or an ancillary business. Depending on the size of your business, and the budget available for your website, there are a variety of approaches you can take toward ensuring your website gives customers and patients the most user-friendly experience possible. Choose Your Approach to Design Choosing your website developer can be approached in several ways. A do-it-yourself (DIY) template developer website, such as a content management system (CMS), can present some limitations to your website design, but it is also an economical approach. Other cannabis businesses may desire a slick, customized design that only an experienced branding agency can achieve. Don’t bite off more than you can chew. Those who want to design their website from scratch may take on more than they can handle.
Need over greed It is important for cannabis business owners to consider what features they require of their website before making a decision. “The thing that you want to think about with a cannabis website, you need to be thinking about ‘Do I need to invest in a website that’s custom-built, or something that uses an existing template and perhaps customizes an existing template a little bit?’” co-Founder and Partner of Higher Ground Agency, Robert O’Shaughnessy, told CULTURE. Website building platforms like WordPress or Squarespace are ideal for the type of business that doesn’t have a lot of money to spend and is considering building the website in-house.
Custom Build Many cannabis business owners choose to hire a creative professional to help establish their brand and presence in the industry. Remember that building a great website from scratch requires constant maintenance. “Oftentimes people are under the impression that all they have to do is sign up for a website and leave it up to the professionals! Wrong,” said Dan Rocha, owner and CEO of 420 Web Pros., a company that offers a variety of services geared toward the cannabis industry and ranging from branding to designing interactive e-commerce websites. “Web design is a collaborative effort and the most successful projects are when the client really gets involved with their project and continuously stays involved even after launch!” Investing in a website can be a big sacrifice, but the dividends will pay off later down the line.
attractive Design Don’t forget the visual aspect of web design. Well-chosen photos and videos can do wonders for your websites. “Pictures and especially video often speak louder than words in most cases—including on your website!” Rocha said. The visual aspect is not only fun, but it’s a crucial asset to your website. “We also know from looking at analytics, photos are really more popular than you’d expect on cannabis sites,” O’Shaughnessy added. “People spend a lot of time looking at photos of cannabis.”
information and Education Your website becomes a central hub of information about your company or product. Be sure to take the time to inform your readers about what you stand for and how your product will benefit them. Establish a clear and concise mission statement that allows your ideal customers a direct answer to the question, “Why should I buy from this company?” Through common sections such as “About Us” or consistent blog posts, elaborate on how your product is unique or what made you want to join the thriving cannabis industry to offer such an amazing product. This form of communication will allow you and your company to be well-connected with your customer, and help establish trust in your brand.
Integration We live in the digital age, and consumers have been migrating to the online marketplace for years. It is a best practice for cannabis dispensaries in particular to offer their menus online. This is important because consumers are drawn to the fastest experience. Consumers want speed, and the business of cannabis is just like any other industry. For dispensaries, a virtual collective is one way of handling e-commerce on your website. Rocha shared with CULTURE how dispensaries have been utilizing this essential aspect of e-commerce in their websites for many years. “A
virtual collective helps streamline business by allowing caregivers to bring their menus online and directly to their patients,” Rocha said. “Patients can register for an account then begin ordering online only once the caregiver has approved them.” There are other factors to consider when including e-commerce as a feature on your website. Point-of-sale tracking can be a necessity, depending on where you live. Additionally, if you are going to integrate with any type of e-commerce database, ensure they are willing to offer services to the cannabis industry.
Visibility Once you have a beautiful website, you need to ensure it will be seen by current and potential customers. Be sure to do this through social media integration, blog posts and considering search engine optimization (SEO). While posting special deals online is not a problem for most ancillary companies, advertising cannabis sales is prohibited on most social media platforms. This is why driving customers to your website through blog posts and smart SEO is essential. “SEO is still a very important factor in terms of being visible online,” O’Shaughnessy said. “Especially because some of the traditional advertising options that are available to many industries like promoting posts on Facebook or pay-per-click on Google are not options for cannabis companies even if they operate in a state that’s totally legal.” c
Majority of U.S. Residents Support Economics of Cannabis Legalization
69%
20%
11%
60% 51%
23% 21%
17% 27%
The revenue raised from taxing cannabis will be enough to pay for any social costs of legalization
48%
30%
22%
Campaigns like ‘Just Say No’ and ‘D.A.R.E.’ (Drug Abuse Resistance Education) are effective at reducing cannabis use
20%
30%
Legalizing and taxing cannabis will raise valuable revenue for the government Legalizing cannabis will save the government law enforcement expenses The public has enough information to make informed choices about cannabis
Agree Neither Agree or Disagree Source: New Frontier Data
50% Disagree
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LEGAL
Protecting Interests
Making the best out of a bad cannabis investment by Hilary Bricken
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hat happens when you’re an investor in a cannabis business and there’s a shortterm surplus of similar cannabis products on the market, making it harder to stand out and to make a good profit? The reality is that your asset isn’t competitive on price or quality and likely gets left behind. At that point, you’re probably looking for a way out of that cannabis business deal you fear will never pay off. When you’re looking to bail on or navigate a cannabis investment that’s gone south, the road to financial redemption isn’t easy. American businessman and investor Mark Cuban once said that only a moron would start a business on a loan, but various state-law limitations on equity ownership of cannabis businesses (whether it’s residency or the sheer amount of red tape it takes to be vetted by state regulators) leave many new cannabis businesses cash-strapped, so they turn to debt. Many of the creditors involved in the cannabis industry are not seasoned small-business investors—they are people looking to take advantage of an industry that seems to be printing money. Debt feels less risky than equity, so they throw some money into a cannabis business or two, believing they will be able to get 10-20 percent interest annually.
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Because so many of these investors are new to small business investing, many don’t protect themselves adequately. Lenders have a lot of tools to make sure they get paid. Security interests in real, personal and intangible property provide avenues for seizing assets. Cannabis inventory or the cannabis business license or permit itself is complicated to secure, but most cannabis businesses have at least some high dollar capital equipment. Personal guarantees from major players put personal assets on the hook as well, and signed confessions of judgment make the process of obtaining a judgment on the debt significantly easier. Most loans do not involve all of these protections, but most smart lenders are not willing to provide completely unsecured capital to brand new
businesses (let alone federally illegal ones) without any way to get a return if the business folds. If you are one of those unsecured investors and the cannabis company to whom you loaned money defaults on your loan, what can you do? If you want any chance of recouping your investment, you really only have two options. First, you can renegotiate the debt. In most well-drafted promissory notes, an uncured event of default causes the debt to accelerate and mature. This means that if your cannabis borrower misses a payment and doesn’t make a late payment by the cure date, its entire debt becomes due. Once this happens, it is just a matter of negotiating an extension on the note. During that extension, you as the creditor have significant leverage to extract concessions from your cannabis borrower, such as personal guarantees, security interests or even pledges of ownership interest in the cannabis company. The reason you, as the creditor, have leverage is because your only other viable option would be to obtain a judgment against the borrowing company and that judgment will likely be a nightmare for your borrower. If you are willing to brave the legal fees and get a judgment against your borrower, you can then use that judgment to begin levying on the cannabis business’ >>
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LEGAL
assets as though you had a security interest in the property to begin with. In most states, once you get the judgment, at least some of what you spend collecting on it, including your attorneys’ fees, will be collectable as well. Companies that owe debts to third parties and realize that they are about to go under sometimes look for ways to avoid paying the debt. This is a good time to bring up fraudulent transfers. As defined in most states, a fraudulent transfer occurs in a few different ways, the most common of which is when an insolvent debtor transfers property without receiving a reasonably equivalent value in the exchange. If an “insider”—someone connected to the company like a director or a director’s spouse—is involved in the transaction, showing fraudulent transfers becomes far easier. For example, if a debtor company has a bunch of equipment and transfers it to the company owner’s brother, that is potentially a fraudulent transfer, and the property can be clawed back for creditors. The stickiest situations come when there are multiple debts. A company is not necessarily breaking any laws if it chooses to pay one creditor before it pays other creditors. Unless the
Because so many of these investors are new to small business investing, many don’t protect themselves adequately. creditor is an “insider,” the company can generally choose which of its debts to pay unless it is in a formal bankruptcy (which is probably not available to cannabis businesses because of the federal law conflict) or a state receivership proceeding. In certain circumstances, multiple debt investors have signed promissory notes in which the company promises not to pay the notes proportionally and not to provide any payment preference. If the debtor company does pay one holder disproportionately to the others in that circumstance, the creditor left-behind
may be entitled to a claw-back of the payment. These collections matters don’t usually end with either side truly happy. Attorneys make some money, and investors can often recoup a portion of their investments, but debt litigation against a business is an unpleasant affair. If you are looking to lend to a cannabis company, make sure you know what your plan is if things turn south. It’s better to have a security interest up front than it is to fight the company and other creditors in court to get the right to levy, especially given the issue of illegality under federal law. c
Federal Cannabis Legislation Gaining in Numbers The debate over policy reform in Congress has experienced a sharp uptick over the past few sessions, setting the stage for national cannabis reform in the coming years.
40 2013-2014
During the 2015-2016 congressional session, overall, there were 71 cannabis-related measures, a 78 percent increase from the 40 cannabis-related bills introduced during the previous session. 38
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71
Of the 71
2015-2016
Bills
Cannabis-Related
50 industry-friendly 13 industry-hostile 8 industry-neutral
There has been
223% Growth
in the number of cannabis related congressional bills from the 2011-2012 session to the 2015-2016 session. Source: New Frontier Data
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TRENDS
It’s All About Strategy
What to consider when aiming to increase your profit margins by natasha Guimond
U
nderstanding profit margins is essential to owning a successful cannabis business. When you start a cannabis business, you have high hopes that your high profit margins will make it all worth it. Sure, helping patients obtain clean, top-
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quality cannabis products is priority number one, but great profit margins mean you can keep growing your business and continue to improve your life, and the lives of your consumers, in the process. Since there are so many different ways to consume cannabis now, the market is definitely changing—and so are the profit margins. While on
average, profit margins in the cannabis industry are above 50 percent (according to market-research firm, Headset), certain categories are definitely experiencing upward and downward trends, respectively. That’s why we took the time to talk to a couple businesses that have chosen to do it all, to see how profit margins can differ >>
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between cannabis products and the areas that they are sold in. In Washington State, Blue Roots Cannabis has 16 retailers west and 16 retailers east of the northwestern Cascades mountain range. They focus on all major categories of popular cannabis sales through flower, concentrates and edibles. Dominique Small, Operations, Marketing and Purchasing Manager of Blue Roots Cannabis, shared a few basics with CULTURE, noting that it’s essential to understand that cost is determined by efficiencies and sourcing, whereas price is driven by both the market and estimated consumer value. “Margins are not solely determined by the hands of the market but also by managerial styles and business strategies,” Small said. Basically, a successful business requires a diversification of strategies. Blue Roots Cannabis has retailers on either side of the Cascades and approaches each market differently because purchasing patterns are different between regions within states, not just state-to-state. Small said, “There is a significant difference between purchasing patterns on the west side of the state vs the east side of the state. Main differences are in price elasticity and new product excitement.” According to numbers reflected by Blue Roots Cannabis, edibles have the highest margin of all of their cannabis products. Edibles contain the most expensive ingredient, aka cannabis extract, and it requires very little extra ingredients or labor to produce. For example, 21 grams of cannabis extract can produce upwards 1,900 edible units. Margin prices can inflate when a business considers using a more advanced extraction technique, such as THCa or high terpene full spectrum extracts. With products such as these, margins can increase drastically depending on how many other producers are competing to sell that particular product. Small also noted that aside from considering the financial impact of producing the product you want to sell successfully, business owners must still expect to overcome the challenge of competition. “Understand and prepare for the two-part hurdle that is producing and then processing. Once you’ve produced 100-plus pounds of high quality flower, it’s a whole other hurdle to get it on the shelves of retailers amidst the growing competition.” Business owners must reconsider their target product, and if the production of that product is sustainable in their particular area.
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Also in the state of Washington, but crossing over into the entire state of California, with plans to expand even further, GFarmaLabs covers the whole spectrum of cannabis products as well with flower, concentrates and edibles. Brittney Uribe, Chief Marketing Executive at GFarmaLabs, argues that having an established business that has a wide selection of products for all different types of consumers is ideal. According to Uribe, cannabis flower yields the greatest profit margin for GFarmaLabs. “There is minimal processing compared to edibles and extraction,” she said. “There is a noticeable difference in margins however there is a growing demand for cannabis products.” Of course, average retail prices of cannabis flower fluctuate year-to-year and market-to-market. In
Once you’ve produced 100-plus pounds of highquality flower, it’s a whole other hurdle to get it on the shelves of retailers amidst the growing competition. California, the 2016 average price for an ounce of cannabis ranges $200-$248, but in Colorado, the average price for an ounce of flower ranges $199-$230. Washington’s average price in 2016 for an ounce of flower is $190-225, according to market research. The cannabis industry is fast-paced, and quality matters in every facet. Whether you’re considering producing cannabis flower, edibles, concentrates, or all of the above, the greatest success for profit margin lies in taking the time to research your general area, your target customers and your competition. The cannabis industry has taken decades to become a legally accepted business, so taking your time to efficiently decide which cannabis products work for your business is the best approach. c
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EVENT listings
IT’S BUSINESS TIME Marijuana Business Conference & Expo, May 16-19 Investors, retailers, cultivators, manufacturers and other cannabis business owners will find insightful methods to improve their day-to-day business operations and long-term goals. With close to 4,000 investors and leading entrepreneurs, 275 exhibitors and 60 industry insiders, this event is not only huge, but it is packed with knowledge as well. Washington D.C., District of Columbia mjbizconference.com
Science of Cannabis Summit, May 17 Learn about what’s happening in the rapidly growing world of cannabis from industry specialists, medical professionals, growers, scientists and families involved in it every day. Whether you are new to cannabis or a long time veteran, these short-form lectures are designed to expose you to the personal experiences and advances in the understanding of this wonderful plant. Mesa, Arizona scienceofcannabis.com
Marijuana Business Conference & Expo May 17-19 The Marijuana Business Conference & Expo is America’s oldest and largest cannabis tradeshow. This year’s event will feature 3,500 cannabis business leaders and investors, 275 exhibitors and exclusive sessions from 60 business insiders. Oxon Hill, Maryland mjbizconference.com
Cannabis Grand Cru, May 20 Touching on all important aspects of cannabis, this premier event brings together the business, lifestyle, culture and community of the plant. Lectures, entertainment and professionally hosted seminars ensure this
will be an event wroth attending. Seattle, Washington www.cannabisgrandcru. com
Canadian Cannabis Business Conference, May 24-25 Help shape the future of Canada’s cannabis industry by attending this pivotal conference. Weigh in on discussions surrounding regulations, public health, safety and the industry as a whole. Additionally, visitors from surrounding countries can learn about the promising international trade opportunities that are popping up in the Canadian cannabis market. Toronto, Canada www.canadianinstitute. com/canadian-cannabisbusiness-conference
Strong Majority of u.s. residents support Medical Cannabis & Oppose Criminalization Cannabis has valid medical use Cannabis is highly addictive Cannabis is a dangerous drug I am more likely to consider using cannabis if it’s legal If cannabis is legalized, the government should keep track of cannabis users People who use cannabis should be treated like criminals People who use cannabis should be arrested
86% 34% 28% 28% 28% 12% 12%
10% 28% 21% 23% 16% 18% 17%
Agree Neither Agree or Disagree
4% 39% 51% 49% 56% 70% 71% Disagree Source: New Frontier Data
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Home Grown Maine 2017 Trade Show & Expo, June 3-4 Coming back for its sixth year, Home Grown Maine is bringing together a variety of unique vendors and panels that is thought to be one of the best medical cannabis conference in New England. Explore a plethora of showcased products and attend workshops and lectures and aim to inform and impress business owners and consumers alike. Augusta, Maine homegrownmaine.net
The Southeast Cannabis Conference and Expo, June 9-11 With more than 200 vendors and 10,000 attendees expected at this business-to-business marketing event, it’s safe to
assume that all the biggest players in the cannabis industry will benefit from attending The Southeast Cannabis Conference and Expo. Over 70 speakers will also give exclusive and forward-thinking insight in conjunction with this year’s theme, “The Cannabis World of Tomorrow.” Fort Lauderdale, Florida seccexpo.com
PDX Hemp Fest Expo, June 10 Spend a full day downloading valuable cannabis knowledge at this educational event. Industry leaders, networkers, entrepreneurs and newcomers who attend PDX Hemp Fest Expo will be armed with countless resources of information that will help them to better run their cannabis businesses. Portland, Oregon pdxhempfestexpo.com
NCIA’s 4th Annual Cannabis Business Summit and Expo, June 12-14 The National Cannabis Industry Association is wellknown for hosting events with countless cannabis industry leaders who have valuable knowledge to offer business owners. The three-day event will offer over 140 speakers and over 200 exhibitors aimed at improving your cannabis business. Oakland, California cannabisbusinesssummit. com/oakland-2017
4th Annual Cannabis World Congress and Business Exposition, June 15-16 The Cannabis World Congress and Business Exposition is the go-to conference for cannabis
business owners across the country. Explore everything from information on accounting and insurance services and legal resources to innovative new technologies, and network with the country’s most prominent entrepreneurs. New York, New York www.cwcbexpo.com
International Canna Pro Expo, June 24-25
Featuring keynote speakers known for their role in advocating cannabis, the International Canna Pro Expo is bringing together both consumers and medical professionals to fight for better and more frequent studies regarding cannabis as medicine. Many experts in their field will be in attendance to educate attendees about the importance of studies on cannabis. Philadelphia, Pennsylvania internationalcannaproexpo. com
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