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inside
contents
14 20 30
features
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The War For Independence Despite Government “Financial Revolution,� Cannabis Banking is Still an Issue.
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On The Horizon Californian Delivery Services are Still Thriving Even with Bans.
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Packaging an Empire The Trends, Innovations and Entrepreneurs of this Industry within an Industry.
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Changes Coming for Florida CBD Industry
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Investors Turn to Canada for Medical Cannabusiness
Potential Legal Updates Open Up the Market in Florida.
Canada Might Pose Less Risks for Investors.
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Cannabis Business Ventures in Italy Growth for Cannabis Market and Headway for Legalization.
8 News Bytes 12 By the Numbers 38 Legal 44 Trends 48 Tech 52 Product Highlights
Vol 1 IssUE 3
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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 Designers Account Executives
general Manager Office Assistant
Tanya Delgadillo, Jonathan Ibarra 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 Number of Medical Patients Increases in the Netherlands
The Foundation for Pharmaceutical Studies in the Netherlands has revealed a 45 percent increase in medical cannabis use in the country. This is a significant increase seeing as the rate had only increased by 25 percent each year, over the past four years, according to the NL Times. Medical cannabis in the Netherlands is monitored by The Office of Medical Cannabis (BMC), who offers five different strains ranging in “composition and concentration of active substance.” Studies conducted by the BMC have shown the significant effects cannabis has on conditions like chronic pain, glaucoma, AIDS and cancer. The average amount of cannabis a patient in the Netherlands can be in possession of is 16 grams with teas or vaporizers being the BMC’s preferred forms of ingestion.
Scientific Cannabis Course Offered at University of Vermont The University of Vermont has decided to offer its students a scientific course, which delves into the specifics of medical cannabis. The course will cover the medical chemistry of cannabinoids, physiological effects of cannabis, therapeutic applications and historical, political and socioeconomic influences of medical cannabis, according to The Washington Post. As the first full-on course dedicated to medical cannabis studies, professors at the institution admitted that one challenge in teaching the course is the lack of official information on medical cannabis, “Without having enough clinical trials, we won’t really know whether this is applicable or whether this is snake oil,” says Vermont pharmacology professor, Karen Longsbury. So far, 90 graduate and undergrad students have registered for the class, which is expected to start this spring. The class is also open to the general public, allowing those in law enforcement, medicine and legislature to attend.
Colombian Senate Pushes for Legalization of Medical Cannabis Colombia’s President Juan Manuel Santos made an announcement to BBC in November that he planned to legalize medical cannabis, “in three or four days.” A month later, the Colombian senate decided to take the matter into its own hands by approving this notion, 46-6 in a plenary session. The law is awaiting approval from the Chamber of Representatives who are expected to make a decision sometime this year, according to TeleSUR. Senator Juan Manuel Galan introduced the bill because he sees the benefit medical cannabis has on patients. “Cannabis inhibits nausea, helps recovering appetite and quality of life,” Galan stated, soon after the vote. So far, there are no plans to legalize recreational cannabis, with growing and selling cannabis remaining illegal, according to Fox News Health.
Croatia Legalizes Medical Cannabis This month the Ministry of Health in Croatia decided that the country should move forward with legalizing medical cannabis. This decision was made in support of cannabis’ ability in aiding illnesses like AIDS, Multiple Sclerosis, cancer and child epilepsy, according to New Europe. Another factor in the Ministry’s decision was the conviction of Multiple Sclerosis patient, Huanito Luksetic, in 2014. After hearing of Luksetic’s conviction many doctors and patients spoke out on the benefits of cannabis, helping to bring the industry to life. In October, doctors were permitted to administer a 30-day supply of medicines, teas and oils to patients, with the month supply not exceeding 7.5 grams. Unfortunately, Croatia does not yet produce any of its own medical cannabis products and there are very few foreign suppliers who have shown interest entering the country’s market.
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NEWS
Jail Sentences Overturned for Tunisian Artists Arrested for Cannabis Possession A Tunisian Court of Appeals has decided to overturn the jail sentences of three artists who were arrest for possession of cannabis in December 2015. According to ArtForum, 15 Tunisian policemen raided the home of filmmaker Ala Eddine Slim, along with photographer Fakhri El-Ghezal and artist Atef Maatallah, suspecting the three of performing terrorist activities. Their search warrant “evidence” was El-Ghezal’s beard, as well as a suspicious bag that he was seen carrying. Since they could not find the original evidence they sought, law enforcement arrested the three for cannabis possession instead. The unruly actions led to a so-called “revolt” in Tunisian press, which eventually garnered enough attention to have a petition issued for the artists’ release. In the most recent ruling, the Appeals Court stated that “procedural errors” were grounds to overturn their sentence.
Legal Cannabis Could Cause Boost in U.K. Economy A private Treasury study in the U.K. revealed that cannabis legalization could boost the country’s economy by “hundreds of millions of pounds” and create funds for its criminal justice system, according to The Independent. The report was conducted by the party of former Deputy Prime Minster, Nick Clegg and relied heavily on research conducted by the Institute of Economic Research (ISER). The ISER calculated annual revenue of £500 million to £800 million if cannabis was treated like tobacco. Clegg conducted the study as a guide for the next Liberal Party to take office. Lib. Dem. Spokesperson, Norman Lamb believes that the U.K. is long overdue for changes to its cannabis policies stating, “There are successful cannabis markets emerging in different parts of the world and we should look to learn from these experiences.”
BYTES
cont.
Cannabis Use and Support in Spain Increases New data reveals that Spain is third in the world regarding how many of its people use cannabis. The study, conducted by Recovery Brands with use of United Nations data, follows Iceland, ranked at number one in cannabis use, and the U.S. ranked at number two. Spain has about 100-130 out of every 1,000 adults who have used cannabis at least once in the past year. Along with Spain’s decreased cannabis prices compared to other parts of Europe, this new information has earned Spain the title of the “New Amsterdam of Europe.” Thanks to the increasing number of private cannabis clubs, where many users partake, since cannabis is illegal to smoke in public, many more cannabis associations have emerged. An estimated 40 operate in Madrid, with 162 in Catalonia, 119 in the Basque Country and 69 on the Canary Islands.
Cannabis is Removed from “Hard Drugs” List in Chile Chile’s President, Michelle Bachelete, has removed cannabis from the country’s hard drugs list, according to Latin One. This change will permit pharmacies to sell medical cannabis products, and allow patients to grow up to six personal plants at home and have up to 10 grams in their possession. Cultivation, transportation and distribution of non-medical cannabis is still punishable by five to 10 years in prison, with congress taking steps to revise these restrictions. The initiative was announced in July 2015, and ended up passing with a 68-39 vote in congress. Those who disagreed with the movement criticized the decision, stating that it would encourage illegal use amongst young people, while those who voted in favor of the movement believe it will help prevent individuals from being wrongfully prosecuted for fulfilling their medical needs. This is a big step for Chile, which has been known for being a largely conservative country.
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NEWS
The maximum number of retail cannabis access points that will be allowed by (Source: the Washington State Liquor and Cannabis Control Board: Washington State Liquor and Cannabis Control Board)
556
The amount of money that Illinois collected in cannabis taxes during the medical cannabis program’s first month of operation: (Source: Chicago Tribune)
56,550
The percentage of tourists surveyed in a study commissioned by the Colorado Tourism Office, who said that the legalization of cannabis in Colorado was an “extremely” to “somewhat influential” reason to visit the state: (Source: The Denver Post)
49
The percent of Macedonians who support allowing the use of cannabis as a treatment of cancer and other life-threatening diseases: (Source: Balkan Insight)
70
The estimated amount of money, in USD, that Uruguay plans to charge per gram of cannabis in an attempt to undercut organized crime: (Source: Leafly)
1.20
The number of signatures that will allow for the Florida-based advocacy initiative, People United for Medical Marijuana, to be placed on the November 2016 ballot: (Source: WUFT)
683,149
The number of varieties of cannabis being considered for medical patients to have access to in Uruguay: (Source: REUTERS)
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The amount of milligrams of CBD that is contained in Europe’s very first legal CBD pills: (Source: Metro)
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“The federal love note to the cannabis industry seemed to open the door to banks eager to serve the fastgrowing industry.�
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Marijuana Fiscal Year 2015 Sales and Excise Tax by County, in Washington State
The War For Independence Despite Government
“Financial Revolution,” Cannabis Banking is Still an Issue by Todd Mathews
We’re coming up on the second anniversary of what might have been the cannabis industry’s Fourth of July. On Valentine’s Day 2014, the U.S. Departments of Treasury and Justice announced that in states where cannabis was legal, they were willing to look the other way. The federal love note to the cannabis industry seemed to open the door to banks eager to serve the fast-growing industry. That’s how it played in the media. “Banks to be Allowed to do Business With Marijuana Dispensaries,” trumpeted the Wall Street Journal. Bloomberg declared, “Pot Businesses Allowed to Open Accounts With U.S. Banks.” Two years after the cannabis financial revolution, little has changed. >>
County
Reporting Period
Total Sales
Excise Tax
Asotin
7/1/2014 - 6/30/2015
$78,390
$19,597
Benton
7/1/2014 - 6/30/2015
$5,123,127
$1,280,782
Chelan
7/1/2014 - 6/30/2015
$6,383,822
$1,595,956
Clallam
7/1/2014 - 6/30/2015
$1,877,875
$469,469
Clark
7/1/2014 - 6/30/2015
$27,007,613
$6,751,903
Cowlitz
7/1/2014 - 6/30/2015
$6,178,816
$1,544,704
Douglas
7/1/2014 - 6/30/2015
$3,281,503
$820,376
Ferry
7/1/2014 - 6/30/2015
$203,910
$50,977
Franklin
7/1/2014 - 6/30/2015
$154,453
$38,613
Grant
7/1/2014 - 6/30/2015
$1,876,614
$469,154
Grays Harbor
7/1/2014 - 6/30/2015
$1,155,161
$288,790
Island
7/1/2014 - 6/30/2015
$1,358,382
$339,596
Jefferson
7/1/2014 - 6/30/2015
$1,725,044
$431,261
King
7/1/2014 - 6/30/2015
$59,022,028
$ 14,755,507
Kitsap
7/1/2014 - 6/30/2015
$5,810,182
$1,452,546
Kittitas
7/1/2014 - 6/30/2015
$3,871,972
$967,993
Klickitat
7/1/2014 - 6/30/2015
$3,661,394
$915,349
Lewis
7/1/2014 - 6/30/2015
$208,480
$52,120
Lincoln
7/1/2014 - 6/30/2015
$2,532,930
$633,233
Mason
7/1/2014 - 6/30/2015
$2,865,834
$716,458
Okanogan
7/1/2014 - 6/30/2015
$3,504,809
$876,202
Pacific
7/1/2014 - 6/30/2015
$4,924,707
$1,231,177
Pend Oreille
7/1/2014 - 6/30/2015
$173,177
$43,294
Pierce
7/1/2014 - 6/30/2015
$18,767,090
$4,691,773
San Juan
7/1/2014 - 6/30/2015
$808,338
$202,084
Skagit
7/1/2014 - 6/30/2015
$4,507,047
$1,126,762
Skamania
7/1/2014 - 6/30/2015
$351,594
$87,899
Snohomish
7/1/2014 - 6/30/2015
$26,146,851
$6,536,713
Spokane
7/1/2014 - 6/30/2015
$37,134,659
$9,283,665
Stevens
7/1/2014 - 6/30/2015
$1,679,053
$419,763
Thurston
7/1/2014 - 6/30/2015
$9,951,729
$2,487,932
Wahkiakum
7/1/2014 - 6/30/2015
$249,840
$62,460
Walla Walla
7/1/2014 - 6/30/2015
$94,796
$23,699
Whatcom
7/1/2014 - 6/30/2015
$11,446,882
$2,861,721
Whitman
7/1/2014 - 6/30/2015
$2,059,985
$514,996
Yakima
7/1/2014 - 6/30/2015
$3,344,237
$836,059
(Source: The Washington State Liquor and Cannabis Board)
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The reason for the stalemate was captured almost immediately in a prophetic Fox News story. Under the headline “Feds Allow Banks to do Business with Marijuana Shops, Industry Still Nervous,” Fox cited a bank association spokesperson who said that until congress repealed laws banning the sale and distribution of cannabis, and the feds offered “clear and precise” regulations, “the nation’s 7,000 banks will be highly reluctant to participate in this this new type of ‘commerce.’” Justice’s Valentine’s Day announcement, written by Deputy Attorney General James M. Cole, and so called the Cole Memorandum, is wonderfully, dangerously vague. In one place, Cole says the Justice Department is merely making a decision to deploy its “limited” enforcement resources only in “the most significant marijuana-related cases.” But in another, Cole unrings the freedom bell: “Finally, nothing herein precludes investigation or prosecution . . . in particular circumstances where investigation and prosecution otherwise serves an important federal interest.” Anti-drug warriors cried foul. But such “prosecutorial discretion” is a favorite of government officials. County sheriffs who think federal gun laws violate the Second Amendment say they haven’t got the bandwidth to mess with people’s AR-15s. The Obama Administration has used its prosecutorial discretion to ignore immigration laws in cases of American adults who came to the U.S. as the minor children of undocumented parents. The Cole Memorandum is subject to change, in 16
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other words, and today’s prosecutorial discretion to ignore may give way to the next president’s determination to end the trade in cannabis. That’s no foundation for a sound banking relationship.
“We can’t celebrate this second anniversary of the Cole Memorandum with anything more than flugelhorns and pennywhistles.”
“Say [New Jersey Governor] Chris Christie is elected president, and he’s riding out here to shut down dispensaries,” says Bend, Oregon attorney Michael Hughes. “Most banks with multiple milliondollar accounts aren’t willing to risk all that.” While that’s kept most major banks out of the cannabis trade, there’s some evidence that smaller banks in weed-legal states are entering cautiously. Hughes, the Oregon attorney and industry consultant, said he saw a number, maybe hundreds, of businesses open bank accounts after the feds’ announcement. “They’re doing it legally, of course,” and that means filling out Suspicious Activity Reports that declare the bank’s cannabis clients meet the Cole Memorandum’s eight priorities: No kids, no crime, no weapons, no DUIs and no use or possession of cannabis on federal land. He won’t tell you which
banks are banking the cannabis businesses; that would violate his clients’ confidentiality. The banks probably won’t brag about it either, says Hughes: “I don’t think they mind doing it for a few people, but if a bank gets a run on it for new [cannabis] business, that could raise a red flag for regulators.” And the cannabis retailers aren’t likely to tell you whom they’re banking with, either, he says; that’s “proprietary, like a trade secret. You could probably waterboard them and they wouldn’t give up that information.” Some retailers said they got the bank accounts necessary for a credit card account with a wink-anda-nod from the merchant services company. “If you can explain to the merchant services rep that you’re not just in the marijuana business, but that you’re selling something else— like art, lighters, other accessories, that you’re really an accessories retailer—then you qualify for an account.” “Not a chance,” said >>
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Jaime Gonzalez, Vice President of Business Development for Costa Mesa, California-based CardFlex Financial Services. “That’s just miscoding the business and it’ll get you closed down by the bank—if we don’t catch you first.” And being closed by your bank or merchant services provider is no minor inconvenience. As part of that closure, the merchant services provider is likely to divert your deposits for hours or days— that’s called putting you on 100 percent reserve— capturing your cash against the possibility of a default in your business. And both the bank and merchant services provider are required to add you to the creditcard processing system’s Terminated Merchant File, also known as “Match.” That designation is so nasty that it has become its own verb: To be “TMF’d” or “Matched” means that everyone associated with the merchant account is financially radioactive—any legitimate U.S. bank or processor will deny them access to the processing system. “We’re not risking our entire portfolio for the sake of one or two or even a hundred bad merchants. We’re not just setting people up [with a credit card account] on a guess that they’re legitimate. We vet everyone. We spend
an enormous amount of time, money and effort making sure that every one of our clients is doing precisely what they say they’re doing, and to make sure that what they’re doing is legal.” But financial regulation change is in the air—real, substantial change. Steven Greenhut, California columnist for The San Diego Union-Tribune, sees it in the migration of Republicans toward a more free-market ethos. He recalls his interview with George Runner, a Republican member of the California Tax Board. Runner said he was shocked to see cannabis retailers walking into state offices to pay their
California taxes with trash bags filled with cash. “He’s worried that all that cash is an invitation to violence and corruption,” Greenhut said. Runner told Greenhut he opposes cannabis legalization, but figures “it’s important for us to set up a regulatory structure before there’s an expansion” of the industry. We can’t celebrate this second anniversary of the Cole Memorandum with anything more than flugelhorns and pennywhistles. But when the people in power, people like George Runner, finally decide it’s more profitable to tax than to jail you; you’ve nearly won your war for independence. d
Total Pounds of Retail and Medical Flower Sold in Colorado January-may 2015 January
February
March
April
May
Medical
8,930
9,130
10,673
11,872
12,797
Retail
6,049
5,968
7,712
8,448
10,743
(Source: The Colorado Marijuana Enforcement Division)
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World Cannabis Conference Barcelona Spain’s World Cannabis Conference is a thematic organized event, covering four aspects of cannabis culture; Medical, scientific, national and international. Through “specific conferences and audiovisual works,” the event addresses these four topics in depth in order to broaden a collective understanding of cannabis and its evolution and acceptance in cultures throughout the world. With various speakers from different countries, the World Cannabis Conference will cover topics of cultivation, the influences of women and cannabis and regulation. While the event is intended to be informative, guests are encouraged to engage in conversation and debate with the speakers and their peers to address any concerns or ideas revolving around the growth of the cannabis community. This is a great opportunity to make connections on an international level and experience the astounding impact cannabis is making world-wide. WHAT: World Cannabis Conference Barcelona. WHEN/WHERE: Fri, March 11- Sat, March 12 The Auditorium of Cornellà Carrer Albert Einstien, 51, 08940 Cornellà de Llobregat, Barcelona, Spain. INFO: Visit spannabis.com for details.
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“Despite the many bans of cannabis businesses across California, it hasn’t been enough to slow the outcome of delivery services.”
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“Other states, such as the recreational and medically legal Oregon, Colorado and Washington, haven’t even been given the chance to develop delivery businesses like California has.”
On The Horizon Despite Bans, Californian Delivery Services are Still Thriving by Nicole Potter
There’s no stopping cannabis legalization in California. Business is thriving, but more importantly for patients, cannabis delivery services are high in demand. Governor Jerry Brown’s Medical Marijuana Regulation and Safety Act (MMRSA), which went into effect on January 1 and aims to help California regulate cannabis, has caused a chain reaction of panicking municipalities that have banned, or may soon ban, cannabis collectives, cultivation and delivery services. However, despite the growing number of bans, delivery services are still flourishing. Originally, the MMRSA included a March 1 deadline that required cities to approve any ordinances that they wanted to implement regarding cannabis regulations—
their inaction would cause city law to default to state law instead. Despite that portion of the act being repealed in the beginning of January, giving municipalities more time to choose whether or not cannabis businesses are right for their city, there was still an increase in bans as a result. Municipalities have already banned many cannabis collectives and cultivation, and even more are still considering the same move. In the realm of cultivation, 30 cities have already enacted a ban, 20 have bans pending and an estimated 20 more are considering bans as well. Medical cannabis delivery services have seen similar reactions, with about 26 cities that have already voted to ban delivery, and another dozen or so other municipalities have plans to follow suit, according to the San Francisco Chronicle. >>
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okay. It’s about experimenting, listening to the regulators, understanding their points of view, and then sharing your points of view as well. Most people want to make sure that we’re catering and serving the patients first and making it a great experience for everybody.” Other states, such as the recreational and medically legal Oregon, Colorado and Washington, haven’t even been given the chance to develop delivery businesses like California has. According to the The Oregonian, a recent regulation update in October 2015 now allows cannabis deliveries in Oregon, but only $100 worth of cannabis can be transported at a time. Colorado on the other hand, does not allow the delivery of recreational cannabis, but will allow medical cannabis deliveries if it is not-for-profit, and can only be delivered by a primary caregiver to a patient, as reported by the Canna Law Blog. Washington, too, has gone the way of illegality for delivery services, as seen in Senate Bill 5052. While these states are unable to deliver cannabis, each has produced exponential monetary numbers that prove how lucrative the recreational cannabis industry can be—which is something that California still lacks. Despite the many bans of cannabis businesses across California, it hasn’t been enough to slow the outcome of delivery services. Competition is fierce, with countless businesses like Eaze, GreenRush, Nugg, SpeedWeed, and even the potential delivery with 22
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companies such as Uber, which is planning a new campaign through UberHEALTH that will deliver flu shots to people early this year. Another popular medical cannabis delivery service, Meadow, is a Bay Areabased delivery service using Sidecar and other carefully chosen partners to help bring medicine to patients. Meadow’s CEO and co-founder, David Hua, believes that like all cannabis businesses, delivery services will continue to serve patients, but it will take time to solidify regulations.
“Unfortunately, there are counties that ban, there are cities that ban . . . The city of San Francisco does not want third party delivery services—and that’s
The entire Meadow team is made up of medical cannabis patients, and from that perspective, they understand the necessity of offering another option for fellow patients that’s more convenient than driving to a local collective. “There are a lot of patients that cannot leave their home, and rely on delivery, and there’s a lot of counties that don’t allow a dispensary on “Main Street,” but they’re okay having a delivery service operating and still satisfying patients in their respective county,” Hua said. The most recent developments for the delivery side of cannabis comes with Assembly Bill 1575, which introduces new regulations for “virtual dispensaries.” The bill states that all of the MMRSA also applies to these “virtual dispensaries,” aka delivery services, and also establishes a limit on how many licenses an individual can hold. More importantly, it shows that the state is taking cannabis businesses seriously, especially when it comes to delivery. There’s no doubt that cannabis delivery services, like collectives, will continue to thrive as California gets closer to implementing the necessary regulations in 2016. d
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Packaging an Empire The Trends, Innovations and Entrepreneurs by Benjamin M. Adams
When expanding business, entrepreneurs must compromise between cost-effectiveness and beauty. The list of states that require tamper-proof child-resistant packaging is swelling. Colorado has advanced further to require opacity and additional labeling requirements. Local regulations have 24
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prompted business to thrive and expand exponentially. We looked at some of the manufacturing strategies that established companies have adopted. We spoke one-onone with industry insiders to find the secrets of the enormous and growing packaging trade in the world of cannabis.
Subscription Boxes The Classic Pop Top In August 2015, Kush Bottles (KSHB) was named one of Inc. 5000’s “Fastest Growing Companies in America” with a three-year growth of 582 percent and 2014 revenue of $2.4 million. Kush Bottles’ products have permeated nearly every facet of the cannabis industry. Kush Bottles recently announced that it has become the first publicly-traded canister company in the cannabis community. “We’ve grown the business first, and then went public. The reason for going public is obviously the opportunity. We see the opportunity ahead of us and we want access to public capital, Kush Bottles CEO Nicholas Kovacevich told CULTURE. “It’s not a sexy business. You’re going to see a lot of young entrepreneurs enter this business. But, in this business you have to grow yourself. You need to have infrastructure. You need to have human resources. Every time you grow as a company, more product is going in and more product is going out.” Kush Bottles recently acquired Colorado-based Dank Bottles, LLC. The bottom line is that injection-molded plastic containers are inexpensive. “We got in early, so we’re able to have a first-mover advantage—to really get ahead of the market and to get a stronghold on the market. We’re
“You’re going to see a lot of young entrepreneurs enter this business. But, in this business you have to grow yourself. You need to have infrastructure. You need to have human resources. Every time you grow as a company, more product is going in and more product is going out.” expanding in two ways: One, by adding more verticals. We’re dealing with plastic containers. We’re dealing with silicone containers. We’ve moved into bags, rolling papers, grinders, ancillary products, consumption products, hand pipes and water pipes. When we talk about expanding vertically, we’re talking about bringing new products into our portfolio and adding that to the customer base. Another way we’re expanding is horizontally, which is geographically,” said Kovacevich. Kush Bottles has sold over 50 million bottles in states that allow it.
Not everyone is looking for inexpensive materials. One of the packaging concepts to truly catch fire is the concept of the monthly subscription box. One of the first companies to offer luxury subscription boxes is PotBox. For a flat monthly fee, the PotBox arrives at your doorstep each month. PotBox is marketing its products for the sophisticated cannabis enthusiast. It’s a total of 10 grams for $150 a month, packaged like luxury wine or a bottle of Maker’s Mark. Cheap plastic is replaced with corked glass casing. As PotBox CEO Austin Heap described, his service is, “a more sophisticated alternative to the various other ‘on-demand’ cannabis delivery services that simply aggregate and deliver whatever inventory is currently available at the local dispensaries.” PotBox is now joined by dozens of companies hoping to offer slightly different angles. Hemp Box is marketing a monthly subscription box that contains no cannabis. Instead, Hemp Box sends boxes with an array of hemp-based health products. Stash Box, Green Bake Box and others are all geared towards a “stoner kit” with a minimum of five or so accessories.
Metal Cans Other companies are focusing on freshness. Developers like N2 Packaging Systems LLC have come up with methods that have stood the test of time in the food industry. The N2 Packaging Systems has designed the N2 Pack, a hermetically sealed steel can. N2 Packaging System’s patented system seals in freshness by preserving cannabis with nitrogen in tamper-proof cans. The nitrogen preserves the cannabis four times longer than other packaging methods. The N2Pack provides stable nitrogen at purity of 99-99.99 percent. In addition, steel is recycled at rate of more than 2.5 times than most other materials. The metal can is a relatively untapped market. “The can is the most utilized delivery form in the food industry in the world. Another factor here is recyclability,” N2 Packaging CEO Scott Martin told CULTURE. According to Keep America Beautiful, steel is one of the most recycled materials in the U.S. N2 Pack’s non-leaching cans are smell proof and ready for mass consumer level production. Other features can be added including an external bar code system and radio-frequency (RFID) tracking. Metal Cans could be the next major alternative to plastic in the cannabis industry. >> CULTUREB2B.com
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Teen-Resistant Cooljarz is offering a variety of products. One of Cooljarz’ latest creations is its latest line, Sealz™. Sealz jars are threaded and airtight, and come in sizes for pre-rolls, concentrates and every other imaginable size. Sealz™ are childresistant. Another child-resistant option from Cooljarz is the Locking Lockz™ line which is a newer prototype. Cooljarz is marketing Locking Lockz™ as teen-resistant. Yes, that’s right, teen-resistant jars come with a small key, so you can lock anyone out of it. They also come with an opaque sleeve, making it compliant with opacity requirements. Cooljarz are made from FDAcertified polypropylene, a recyclable thermoplastic polymer which is resistant to heat and can be washed in a dishwasher. Opacity can easily be added to polypropylene. Cooljarz lists all of its childresistant products in a single category. Cooljarz posts its child-resistant and tamper-proof certifications with dates right on its website for easy reference. Cooljarz products comply with federal regulations including the Toxics in Packaging Prevention Act of 01/01/2006.
3D-Printed A newer concept has taken the cannabis sector by storm. A better way to call 3D Printed products is “additive manufacturing.” Additive manufacturing has become the alternative to injection molding. Now we’re seeing everything from 3D printable hydroponics kits and WiFiEnabled medical cannabis inhalers to 3D printed cannabis containers. Green Technology Solutions, Inc (GTSO) has partnered with Texasbased 6th Dimension Technologies to develop a prototype Lock Box for storing herb. The Lock Box features a sliding mechanism that required adult strength to operate. The Lock Box is made out of inflexible material and snaps closed with the mechanism.
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“When expanding business, entrepreneurs must compromise between costeffectiveness and beauty.” By childproofing, Green Technology Solutions has ensured that their product lasts beyond the passage of growing local regulations. Green Technology Solutions hopes to unveil its first 3D Printed product in early 2016.
Looking Ahead Many states are importing the restrictions laid forth by American Society for Testing and Materials (ASTM) to provide child-resistant, labeling and opacity regulations. Until more options are developed, most companies are burdened with compliance themselves. MMC Depot lists the two top trends in the cannabis packaging industry as niche marketing and edible marketing. Niche marketing drives sales through brand recognition. Marketing in the edible world means knowing local restrictions on product testing. The growth of the concentrate market has opened up a world of possibilities for silicone products. Silicone dab jars and silicone water pipes are popping up everywhere. An array of products are being developed for the environmentally-conscious consumer. Elevate Packaging has come up with eco-friendly materials including PURE Label hemp compostable adhesive labels and compostable flexpouch bags. Marijuana Packaging is coming up with a child-resistant package for shatter. The promising engineering possibilities and future market projections for this industry within an industry are endless and exciting. d
Top Ten Cannabis Stocks 1 A battis Bioceuticals Corp. (OTC:ATTBF) 52-week low: $-.0000 52-week high: $0.278 Volume: 2,230,824 Avg Vol (3m): 788,505 Market Cap: 57.75M Sector: N/A Industry: N/A 2 Cannabis Science (OTCOB:CBIS) 52-week low: $-.003 52-week high: $0.12 Volume: 5,245,269 Avg Vol (3m): 6,663,050 Market Cap: 124.86M Sector: Healthcare Industry: Medical Laboratories & Research 3 Creative Edge Nutrition, Inc. (OTCPINK:FITX) 52-week low: N/A 52-week high: N/A Volume: 30,309,411 Avg Vol (3m): N/A Market Cap: 49.64M Sector: N/A Industry: N/A 4 Enertopia Corp. (OTCBB:ENRT) 52-week low: $0.01 52-week high: $1.08 Volume: 1,832,767 Avg Vol (3m): 906,290 Market Cap: 29.46M Sector: N/A Industry: N/A 5 GreenGro Technologies, Inc. (OTCPK:GRNH) 52-week low: $0.02 52-week high: $1.20 Volume: 1,746,301 Avg Vol (3m): 10,946,000 Market Cap: 57.25M Sector: N/A Industry: N/A
7 GrowLife, Inc. (OTC:PHOT) 52-week low: $-.01 52-week high: $0.78 Volume: 11,774,588 Avg Vol (3m): 48,595,000 Market Cap: 397.93M Sector: Conglomerates Industry: Conglomerates 8 MediSwipe, Inc. (OTCOB:MWIP) 52-week low: $0.08 52-week high: $0.68 Volume: 701,312 Avg Vol (3m): 2,054,720 Market Cap: 18.90M Sector: Services Industry: Business Services 9 Nuvilex, Inc. (OTCQB: NVLX) 52-week low: $-.005 52-week high: $0.62 Market Cap: 232.02 Sector: N/A Industry: N/A 9 Terra Tech Corp. (OTCMKTS:TRTC) 52-week low: $0.06 52-week high: $1.42 Volume: 5,553,528 Avg Vol (3m): 7,785,010 Market Cap: 115.33 Sector: Industrial Goods Industry: Farm & Construction Machinery 10 Tranzbyte Corp. (OTCPink: ERBB) 52-week low: N/A 52-week high: N/A Volume: 204,001,838 Avg Vol (3m): N/A Market Cap: 62.38M Sector: N/A
(Source: Sativa Magazine)
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Changes Coming for Florida CBD Industry
“The state’s CBD oil policy has long been criticized for being overly stringent—hardly anyone but the sickest of patients can actually access the medicine, despite the technically legal status of medical CBD.”
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by Addison Herron-Wheeler
Florida CBD patients and business owners are getting excited about potential legal changes to the status of CBD and who can access the substance. The state’s CBD oil policy has long been criticized for being overly stringent—hardly anyone but the sickest of patients can actually access the medicine, despite the technically legal status of medical CBD. If these proposed changes go through, then the patient pool could be opened substantially and a lot more people could gain access to cannabis. Additionally, patients may no longer be limited to just getting the CBD benefits. “Everybody’s goal is to deliver a regulatory framework where there is business compliance, and (one) that supports a safe and tested product, but where there is enough volume that people who need it can get it and that it’s affordable,” Jeff Sharkey, President of the Medical Marijuana Business Association of Florida, told Marijuana Business Daily. >>
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In addition to legal plans to open up CBD oil access for more patients, there are also plans in the works to put legal cannabis up for a ballot vote, meaning that Florida could soon have access to medical herb as well as oil. Senator Jeff Brandes approved a bill that, if it passes, would allow the cultivation and processing of medical cannabis. Another of the bills in the senate moves to add cannabis as an approved drug under the Right to Try Act. This act allows terminally ill patients to use non-FDA approved drugs so that they may seek cures and relief outside of normally approved medications. This bill is sponsored by Senator Rob Bradley, and would increase the patient pool by about 100,0000-150,000 people. A third bill seeks to increase the amount of
Washington State’s Recreational Cannabis Production Surplus Cumulative Production Surplus in Pounds
licensed growers in the state. Currently, only five facilities are licensed in the state to grow, which means that even if the patient pool was increased, the existing growers and producers might not be able to keep up. Increasing the amount of providers could help the industry to healthily grow without having to cut corners. “I anticipate that they will move forward on a broad rewrite that will fix some of the issues and change some of the conditions,” Sharkey stated. “People know conditions need to be added and licenses need to be expanded.” While the approaches are different, the resounding consensus is that the Florida cannabis industry needs change. Heidi Handford, manager and life partner of Irvin Rosenfeld, author of the book My Medicine, who is also
a public speaker and advocate, and supporter of the Regulate Florida Campaign, feels that cannabis should be available as a medical option for all, not just the few that the state deems in need. “Regulate Florida allows patients to grow their own while some other campaigns do not, and that’s important,” Hanford told CULTURE in an exclusive interview. “Patients should always be able to grow their own and not have to rely on stores for their medicine. And we need more than CBD. CBD is very good but it’s by far not enough. We’ve got to have the THC component as well. We need full plant medicine.” It is not yet clear which of these bills will pass, if any, but with so many new plans in the works, it seems inevitable that some positive changes will be coming to the Florida medical CBD and cannabis soon. d
July 2014 August 2014 September 2014 October 2014 November 2014 December 2014 January 2015 February 2015 March 2015 April 2015 May 2015 June 2015 July 2015 August 2015 September 2015 October 2015 November 2015
(Source: The Washington State Liquor and Cannabis Board)
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Investors Turn to Canada for Medical Cannabusiness by Victoria Banegas
Canada has seen a variety of media coverage concerning its plans to recreationally legalize cannabis on the promise of its freshly elected Prime Minister, Justin Trudeau. Although Trudeau is making small efforts to move forward with his plan, American investors are already moving their way toward Canadian borders to create profit in its “friendly� medical cannabis market. While cannabis is recreationally legal in states like Oregon, Washington and Colorado, and medically legal in 24 states, the substance remains a federally illegal Schedule I drug. This effects cannabis business because investors aren’t willing to take too much of a risk on businesses that could be shut down by the American Government at anytime. >>
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ultimately be implemented in recreational program. This is good for current licensed producers under the medical program in Canada since these changes will likely mean they will have an easier time interacting with potential customers and also have additional product/distribution “The medical program is likely to avenues to generate revenue.” serve as a test bed over the next As far as recreational cannabis goes, the Financial Post one to two years for what may estimates that the Canadian government could bring in $1
For companies like San Francisco-based Poseidon Asset Management, having holdings in Canada is ideal because it doesn’t pose the same risks as dealing with cannabis companies in the U.S., according to the Financial Post. For example, Poseidon Asset Management currently only deals with U.S. cannabusinesses that are “one step way from touching the leaf,” which in its case, means it only deals with businesses that produce cultivation equipment or vaporizing technology. In Canada however, these precautions aren’t necessary, because the market is legal nationwide. This budding trend is causing many to believe that if and when recreational cannabis is legal in Canada, the country will become the world’s leading cannabis market. Khurram Malik, a Jacob Securities analyst who tracks cannabis space, states that companies are looking for “a market where their legitimate peers are trading and that happens to be Canada.” To get a clearer picture as to how Canada’s medical market is a great starting point for American investors, CULTURE got in touch with Malik, who elaborated with this statement:
billion annually from the market. Making for a promising venture for entrepreneurs looking to branch out into the Canadian cannabis market. d
Marijuana Tax $64.63 million
Other Marijuana Income
M il li o n
Washington Marijuana Income and Licensing Fees (2015)
$
$1.06 million
02 0.
Marijuana Licensing Fees
$ 1 .0 6
$6
3 4 .6
Top 7 Critical Factors for Recreational Customers Inventory in Stock
67%
Knowledgeable Budtender
63%
Lab-tested Cannabis
57%
Menu and Prices on Display
56%
Personal Safety
53%
Atmosphere
43%
High THC products
43%
$0.02 million
Total Marijuana Income compared to Tobacco
Marijuana $65. 71 million Tobacco $0.050 million
(Source: The Washington State Liquor and Cannabis Board)
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LEGAL
8
Patent Law Tips for Cannabusiness Entrepreneurs and Professionals by David Branfman, Esq.
In our last article for CULTURE B2B, we wrote about intellectual property (IP) law in general for the cannabis industry and we identified the four basic IP tools:
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Trademarks, copyrights, trade secrets, and patents. This time we’re focusing on just one of them—patents—the IP tool that protects inventions and discoveries. There is a lot that can be said about this, but here are eight starter tips: >>
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LEGAL
3
1 Spoiler Alert - Patents Aren’t a DIY Romp: Patents are complicated. Ok, there it is; I said it. Patent details confuse even most lawyers. The applicable rules and laws contain a ton of “legalese.” So, while it’s not impossible, don’t plan on preparing, filing and prosecuting a patent application on your own. Instead, work with a Registered Patent Attorney (RPA) that not only understands patent law, but also really understands the industry and your invention.
“Patents are a critical tool that can help you protect your inventions, and make investors and potential buyers of your business more excited about your business.” 2 Get On Your Pony & Ride: When it comes to patent applications, time is of the essence. The general worldwide rule: A patent application must be filed before the invention is disclosed to the public. But in the U.S. we generally have one year to file a patent application—unless someone else files the patent application first. Therefore, if you think you have a patentable invention, organize your thoughts and get to a RPA sooner rather than later.
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Understand the Three Different Types of Patents: Utility patents protect inventions that are new, useful and nonobvious to someone skilled in the industry, e.g., a new, improved grow light system or extraction process. Design patents cover the ornamental non-functional aspects of an invention’s design. Think the shape of the Perrier bottle and the DeLorean automobile. Plant patents generally cover newly invented or discovered and asexually reproduced distinct and new varieties of plants. The realm of what patents can protect is broad, so consult a RPA to see if your invention might be patentable. See www.branfman. com/marijuana for an illustrative list of cannabis-related patents.
4
Utility Patents Have Strict Requirements: Before a utility patent will be issued, an invention must meet five essential requirements. First, it must be patentable subject matter, i.e., a process, method, machine, manufacture, or composition of matter (with a few notable exceptions). Second, it must be useful. (This is a loose guideline, and patents are granted for seemingly useless inventions all the time). Third, the invention must be novel. This means it must not be known or used by others. Fourth, the invention must be non-obvious. This means it can’t be obvious to somebody with ordinary skill in the field. Thus all patent applications must disclose “prior art”—pre-existing patents or inventions. Fifth, the patent application must disclose the details of the invention, enable others to make and use it and describe the best mode for doing so. The Patent and Trademark Office (PTO) can reject an application based on these criteria. >>
Southwest Cannabis Conference + Expo The cannabis industry is changing rapidly and with that change comes acceptance in unexpected places. For the first time ever, conservative Texas will hold a cannabis business conference with the sponsorship of Texas NORML, Texas Women Grow and the Texas Cannabis Industry Association (TCIA). This event will highlight medical cannabis, new CBD laws in Texas and cannabis in sports. With thousands of business professionals expected to attend the conference and over 150 floor exhibitors, this is a great opportunity to make influential connections as well as gain professional insight and hands on training through the expo’s seminars and interactive workshops. Event coordinators encourage all to come to this event as Texas is “at the forefront in a billion dollar industry” and the Southwest Cannabis Conference + Expo carries all of the resources needed to become informed of the economic and health benefits of cannabis. WHAT: Southwest Cannabis Conference + Expo. WHEN/WHERE: Thurs Feb. 26 - Sun Feb. 28. Fort Worth Convention Center, 1201 Houston St., Fort Worth, Texas. INFO: Visit swccexpo.com for details.
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INTELLECTUAL PROPERTY Different Intellectual Property (IP) rights:
The following is a list of the different IP rights and examples of how they relate to the cannabis industry.
Type
Definition
Cannabis Examples
Patents
Any person who “invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent,” Types include: Utility, Design, Plant
• • • •
Trademarks
Words, names or symbols identifying goods made or sold, distinguishing them from others
• Branding/Trademark
Inventions or manufacturing processes that do not meet the patentability criteria and therefore can only be protected as trade secrets. A trade secret may consist of any formula, pattern, device or compilation of information which is used in one’s business, and which gives him [or her] an opportunity to obtain an advantage over competitors
• Growing techniques • Grow room designs • Growing, Extraction and Infusion techniques • Trade recipes (edibles infused products) • Customer lists
Trade Secrets
Plant patent (genetics) Growing techniques Extraction techniques Trade recipes (edibles infused products)
Trade secret protection continues indefinitely (as long as the secret is not revealed to the public). Trade secrets have immediate effect and trade secret protection not require compliance with formalities such as disclosure of the information to a Government authority
Copyright
Original works of authorship fixed in any tangible expression form
5 Really - You Can Patent a Plant: Plant patents protect a new and distinct variety of plant that was invented or discovered and asexually produced. In general, the new plant must differ from known, related plants by at least one distinguishing characteristic, which is more than a difference caused by growing conditions or fertility levels. Plant patents can therefore be used to protect specific cannabis strains. Additionally, unlike trademark law which prohibits U.S. trademark registrations for cannabis
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or products containing cannabis because they are federally illegal under the Controlled Substances Act (CSA), patent law does not have the same limitation. Therefore, even though cannabis remains a Schedule I drug under the CSA, new cannabis strains are theoretically eligible for patent protection. However, the absence of well-known cannabis strain patents is most likely due to the length of time it takes to get a patent issued (two to three years) and/or faulty patent applications—notably the failure to convince the PTO
• Literary works • Pictorial/graphic: Glassblowing • Web pages
that the strain differs from known and related strains.
6 Despite the Hassles – Go Ahead and Explore Your Patent Options: Investors and potential buyers of your business love patents. And they can help slow down the competition. A patent protects your invention for a period of 20 years (14 in the case of design patents), and will help you prevent others from using your invention for that period of time. However, make sure you also consider the drawbacks of obtaining a patent. Legal fees and filing
LEGAL
fees/costs are sure to run in the thousands of dollars. In addition, a patent application can take two to three years to register, so your creation should be an invention or cannabis strain that you intend to use, sell, and/or grow more than three years from the date of the application. Ultimately, you need to consider whether your anticipated profits justify the investment of time and legal fees and costs.
7 Don’t Violate Someone Else’s Patent: It may seem easy to just use somebody else’s invention or reproduce somebody else’s strain. However, the cost of getting caught can be extremely high. Remedies often include an injunction— which can prevent you from continuing to sell your invention—and damages. Damages can include royalty payments, lost profits and attorney’s fees.
8 Insurance Isn’t a FourLetter Word: If you’re going to go to the trouble and expense of patenting your invention, take the extra step to insure it. There are two types of insurance: Defensive and abatement. Defensive insurance covers claims against you for infringing someone else’s patent. Abatement insurance helps to cover the cost of suing someone if they infringe your patent.
Conclusion: Don’t be intimidated by patents. Patents are a critical tool that can help you protect your inventions and make investors and potential buyers of your business more excited about your business. Just be sure to take the steps to protect your inventions. d
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TRENDS
Global Movement U.S. Cannabis Reform Sets Global Pace of Change
by Marguerite Arnold
When it comes to the conventional wisdom predicting future progress on the cannabis legalization front, all bets are off these days. Politically, the issue has swung from toxic sideline to central stage although the going is often rough and ready. However, it is often hard to
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believe, particularly for those who have been involved in the legalization push for decades, how fast things have suddenly changed domestically. Unlike medical reform in California post-1996, recreational markets in Colorado and Washington State have completely changed the conversation in the U.S. in
just two short years. However, what is also stunning, far beyond American borders, is how much the legalization push in the United States is beginning to change the international conversation too. “[Domestic political reform] seems to be enabling global changes,� said Seth Yakatan, the CEO of Kalytera, >>
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TRENDS
CA Legal Expo
“The pace of legalization in the United States is faster than anyone expected.” a California-based CBD pharmaceutical company. “Each country must make its own policy decisions, but given that the U.S. is slowly changing its stance, it appears to be one of the catalysts to push global change.” And global change is indeed underway. Over the past two years, Canada and Germany have begun to move forward on integrating medical cannabis into their national health systems, Italy has started national medical trials, Israel expanded its medical program to distribution by general practitioners and Croatia began selling medical cannabis in November of last year. In Central and South America, perhaps the nexus of the American led drug war during the 1980s, forward progress is equally stunning. Jamaica, Columbia and Uruguay are all in or heading towards the recreational column with no backward glances. The Mexican Supreme Court even recently ruled that cannabis use
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could not be banned without infringing on national civil rights. Medical hemp also went on sale across Europe this fall. The Australian government is also expected to begin growing medicaluse cannabis. There are even beginning to be serious calls for international human rights and nongovernmental organizations to start to change global regulations. “The pace of legalization in the United States is faster than anyone expected,” said Aaron Herzberg, a partner in Calcann Holding Company based in California. “It’s exciting to see other states and countries such as Uruguay take a look at the legalization of marijuana. Even on a European level we see progress in the Czech Republic and Spain. The United States, particularly California has often set the stage on important global social issues and It’s nice to see how the US trend towards legalization is spreading across the world.” d
2016 is going to be a year of major change for the cannabis industry. Even in the first month of this year, the Medical Marijuana Regulation and Safety Act (MMRSA) was put into action, bringing many new regulations to California. Advocates across the state have high hopes that this new bill will help organize California and educate both cannabis users as well as non-cannabis users, just in time for the ballot. For those seeking an in-depth look at what the MMRSA brings to the table, check out the (title) hosted by famous Los Angeles Attorney Meital Manzuri and sponsored by Rezn Extracts. There, attendees can check out a panel that dives into the MMRSA in its entirety, as well as recreational cannabis initiatives and local ordinances. The event has invited a number of important attorneys, policy makers and industry leaders to speak at the provided panels. The main focus of this event is to discuss how to embrace the MMRSA and the importance of getting involved in Los Angeles to fix Proposition D. Cocktails and appetizers will follow the panel, allowing all attendees to network. WHAT: CA Legal Expo. WHEN/WHERE: Thurs, March 31. 6:30pm-9:30pm. Los Angeles Athletic Club, 431 W 7th St., Los Angeles, California. INFO:
Tickets $75 for early registration. Visit manzurilaw. com for details.
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TECH
CannaTech
Growth
The growing investment in cannabis’ digital tech realm
by Hilary Bricken
Tech entrepreneurs are into cannabis, and I don’t mean like how Bill Gates was into cannabis. I mean as an investment. Tech investors and tech startups constantly contact my law firm with, or looking for, a new cannabis technology idea or platform. Product traceability, consumer support, market tracking, commodities exchanges, data support
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for cultivators and processors—both software and hardware companies are actively looking for ways to participate in the cannabis market. As an ancillary service, technology is less scary for financiers than investing directly into a business that violates the Federal Controlled Substances Act. Market entry is also easier because, though some states employ regulations to deter investment into businesses that
deal directly with cannabis, typically “robust” state regulations don’t affect outside tech providers. Banking, taxation and fundraising are all a little easier for these ancillary businesses. The IRS treats technology companies in the cannabis space much better than cannabis companies, and the United States Patent and Trademark Office is more than willing to allow tech companies to register their trademarks. >>
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And in case you think we might just be blowing smoke about “CannaTech,” here is a sampling of some of the companies currently populating the everexpanding marketplace:
1
Weedmaps has been a staple in the cannabis ancillary economy for a number of years now. Often called the Yelp of cannabis, Weedmaps is “[a] free . . . service that maps out local marijuana dispensaries in states across the country. Registered users of the site can leave reviews and ratings for different dispensaries with the ultimate goal of helping others find the best weed in town,” according to their website. As of May 2014, the company’s website has more than half a million registered users and accommodates four million unique visitors per month and is estimated at bringing in over $30 million in revenue as of 2014.
2
The phone app that tells you if you’re THCimpaired, My Canary, is another impressive cannatech company. Through a series of memory, balance, reaction and time perception tests, the app can allegedly determine if you’re impaired. The science behind My Canary can be found on its website. With new state cannabis laws that maintain strict DUI standards for relatively low thresholds of active THC, My Canary, if truly effective, could prove to be a useful tool for consumers (though Canary currently disclaims relying on its app to determine whether you should drive or not if you’re under the influence).
3
Looking at payment platforms to avoid paying cash at a dispensary? PayQwick is one of several companies that offer this service, but they may be the first company to actually register those services under Washington’s money transmitter licensing schemes. In addition, according to its website, PayQwick is working on the technology to allow consumers to pay for their cannabis with their smart phones and there should be an app coming soon.
4
If Weedmaps is the Yelp of cannabis, Leafly is the WebMD. Leafly describes itself as “The World’s Cannabis Information Resource” made up of cannabis dispensary and strain reviews. By clicking on the site’s “Strain” tab, you can search volumes of information about “Flavors, Effects, Symptoms and Conditions;” you can also locate any local dispensary on Leafly (in multiple states). Leafly has been estimated at bringing in over $9 million in revenue as of 2014.
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TECH
5
Billing itself as the Instagram of cannabis, Denver-based Massroots maintains an app that “allows its 275,000 semianonymous users to post pictures of themselves smoking marijuana without the potential repercussions of doing so on conventional social sites.” Essentially, Massroots is a social media platform for its users (and cannabis businesses) to unite over their common love and interest in cannabis, regardless of state lines. And Massroots is serious about its staying power. Through the power of lobbying and persuasion, Massroots pioneered a big victory against Apple in February 2015 where the tech giant originally refused to allow Massroots (as well as other cannabis-geared apps) to offer its free app in its App Store. As of April 2015, MassRoots was trading at approximately a $44 million market capitalization.
But even cannabis-tech companies are not entirely immune to the business and financial headaches that befall cannabis-related commerce. For example, Facebook, Google, Apple and Twitter (just to name a few) seem committed to shutting out any cannabisrelated business, ancillary or not. Moreover, just like businesses directly involved with the plant, software companies are often constrained by having to deal with the laws of multiple states and with the fact that cannabis is not yet legal nationwide. It’s not often that you meet a coder who loves digging into the minutiae of different state regulatory regimes, but tech companies that offer services in multiple states generally need to have a pretty good understanding of the regulatory scheme in each of the states in which they operate. And, likely worst of all, a zealous U.S. prosecutor could also argue that cannabis tech companies do violate the Federal Controlled Substances Act by aiding and abetting cannabis businesses—though no U.S. prosecutor has made such an argument. And financial institutions sometimes get cold feet in dealing with cannabis tech companies that depend on payments from cannabis entities. The combination of cannabis and tech is exciting not only for the changes it is bringing to the cannabis industry, but because it is helping to normalize the industry one megabyte at a time. d
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PRODUCT HIGHLIGHTS
The Adventurer water pipe by Strong Silicone
Boundless Vape CF The Boundless CF is the only portable vaporizer on the market to have a full convection heating system. This is what allows the CF to produce large and consistent quantities of vapor while never sacrificing quality. With their patented airflow and heating technology and their sleek design, Boundless Vape CF is one of the most affordable high quality vaporizers available. PRICE: $149 MORE INFORMATION: www.boundlessvapes.com
This bendable, foldable, nearly unbreakable Strong Silicone water pipe is perfect for traveling, festivals or parties. The Adventurer is made from BPA free, non toxic, 100 percent FDA approved food grade silicone with a boro-silicate downstem and bowl. One of the best things about this water pipe is that the base suctions to any smooth surface. No more knocking your device over while you’re trying to load it. This gem comes in several colors, and they even have a brand new glow-in-the-dark model too, for extra fun! PRICE: Starting Wholesale at $40 MORE INFORMATION: www.strongsilicone.com
HempDox CBD Oil HempDox CBD Oil is derived from industrial hemp plants, made in the U.S.A. and certified by both U.S.A. and Canadian Labs. The oil is made from 100 percent natural, high concentrate CBD to ensure high quality. Nano-formulation through a High Energy Homogenization System delivers an incredible smooth blend with purity, stability and consistency. Cannabidiol (CBD) is a major phytocannabinoid, and is one out of at least 85 active cannabinoids identified in industrial hemp plants. CBD is non-psychoactive, and has numerous benefits in helping or combating the symptoms of many medical conditions. MORE INFORMATION: www.hempdox.com
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DRUMi: Foot-Powered Washing Machine From Toronto based company, YiREGO comes the environmentally ethical Drumi. Drumi is a 15 pound, 22-inch-tall foot-powered washing machine that uses only 5 liters of water and no electricity. Sure that doesn’t seem like that big of a deal, but according to YiREGO, the typical laundry cycle uses up to 50 liters of water and 500 watts of power. Not only does Drumi use significantly less water and power, it can wash up to five pounds of clothes and each cycle only takes about five minutes! Drumi is the new alternative to washing clothes, allowing users to spend less on water, electricity and save time, with its innovative design. PRICE: $239 MORE INFORMATION: www.yirego.com
Phantom Open D.E. System The Commercial DE Open Lighting System is state-of-the-art double-ended technology that uniformly delivers optimum photo-synthetically active radiation (PAR) value over a broad footprint. With the unique ability to remove its ballast, this product allows you to eliminate heat generated by the ballast, making it convenient for controlling temperatures. Designed with a high-precision microprocessor, the ballast is totally silent, lightweight, highly efficient and extremely reliable. Aside from its innovative design, Phantom Ballasts Commercial DE is equipped with an efficient reflector that dissipates heat and elongates lamp life. PRICE: $589.00 MORE INFORMATION: growgeneration.com
Holmes Smart Wifi-Enabled WeMo True-HEPA Premium Air Purifier Thanks to this bad boy, you can keep the air in your home clean and pure for you and your loved ones, no matter where you are. The Holmes® Smart Air Purifier with WeMo® can be controlled from anywhere using your smart phone or device. Set a weekly schedule, receive air quality status, and be informed when to adjust settings. This air purifier operates quietly to help reduce common odors and allergens without any annoying buzz or hum. True HEPA filtration captures up to 99.97 percent of airborne particles like pollen, dust, mold, pet dander and smoke. Seriously clean air, ready at the touch of your finger. PRICE: $199.99 MORE INFORMATION: www.holmesproducts.com
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Cannabis Business Ventures in Italy by Victoria Banegas
Monday, January 11, Italy’s Justice Minister, Andrea Orlando, ruled out cannabis use for anything other than therapeutic purposes. However, this ruling did not prevent a group of agronomist and entrepreneurs from planting the seed to become Italy’s most establish cannabis businesses, as they feel it will inevitably become legal in 2016, according to ANSA. While the identities of these pioneers remain unknown, their intentions are clear: Get into the game early on to establish a dominant presence before other companies do. One company who has stepped out into the market as an online entity is Nativa. This company has chosen to establish itself online for now so the public can become familiar with their products and intentions. Nativa management states that through this online presence, people can identify it as a “strong, elegant brand that is tied to high-quality agro-food traditions that Italy has long been known for around the world.” Already, Nativa has product descriptions for five strains, 54
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which are all named after women and are nicely packaged. Like others interested in the market, Native believes that legalization will happen in 2016 and spent most of 2015 analyzing marketing strategies and costs. Nativa management hopes to open brand specific shops in farming cities such as Chianti, Salento and Cilento, with the intent of growing their products without the use of hydroponics. While growing and selling cannabis is currently illegal in Italy, ANSA states that Italians consume up to 3 million
“Like others interested in the market, Native believes that legalization will happen in 2016 and spent most of 2015 analyzing marketing strategies and costs.”
kilograms of cannabis a year (3,306 U.S. tons). A study conducted by Nativa also revealed that 65 percent of the 500 individuals surveyed are forced to make do with low-grade cannabis, and if they had a choice, 85 percent would choose to have a cannabis market like in other countries. Unlike strains in markets where cannabis is legal, Italian cannabis typically goes unspecified and users are unaware of what they are smoking, aside from its effects and the presence of seeds. With this knowledge in mind, Nativa management expresses that they plan on “making marijuana into a high-quality product that brings together the undisputed knowledge of our farmers and a specific knowhow that Italy has always had in cannabis growing.” Although there is no current information regarding Italy’s steps towards legalization, in July 2015, 250 Italian lawmakers supported a proposal that would decriminalize cannabis use completely. While the Nativa survey reveals that 85 percent of those surveyed do not feel that current cannabis legislation makes sense. d
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