Category: Policy

Despite marijuana’s growing legality at the state level, the fact that it’s still illegal at the federal level poses major problems for both the banking and marijuana industries.

The Problem With Cash-Only Cannabusinesses

Federal illegality means that most banks are unwilling to perform transactions with marijuana businesses for fear of federal prosecution for crimes such as money laundering and aiding and abetting federally illegal operations. This means that hundreds of legitimate licensed and regulated cannabusinesses cannot deposit profits, write checks, or accept credit cards.

Not only is this an inconvenience for businesses and consumers, but it makes these businesses and their workers vulnerable to threats of violence and theft as businesses are forced to keep excessive amounts of cash on hand.

What is the SAFE Banking Act?

In June of 2017, Representative Ed Perlmutter (D-CO) and Senator Jeff Merkley (D-OR) initially introduced the Secure and Fair Enforcement (SAFE) Banking Act to address the marijuana banking problem. The act proposes several protections for banks against criminal and civil liabilities with respect to working with licensed cannabis companies that are compliant with state laws. During that time, the bill didn’t receive a full vote in either chamber, but the changing political landscape has led to a reintroduction of the bill this year.

The SAFE Banking Act of 2019 was introduced by Perlmutter last month, along with Representative Denny Heck (D-WA) and Ohio Republican Representatives Warren Davidson and Steve Stivers. Specifically, the bipartisan bill would prevent federal banking regulators from limiting a depository institution’s access to the Deposit Insurance Fund; taking action against loans made to legitimate cannabusinesses; forcing a depository institution to stop providing banking services to state-legal cannabusinesses; and discouraging, penalizing, or prohibiting depository institutions for serving cannabusinesses.

Additionally, the bill protects ancillary businesses that provide products or services to legitimate cannabusinesses from prosecution for money laundering and other crimes. It also specifies how tribal land businesses can qualify for services and requires the Federal Financial Institution Examination Council to develop guidance on how banks and credit unions can serve cannabusinesses lawfully.

During the February hearing that led to the legislation becoming official, Perlmutter saidof the bill, “The SAFE Banking Act is focused solely on taking cash off the streets and making our communities safer. Only Congress can provide the certainty financial institutions need to start banking legitimate marijuana businesses—just like any other legal business—and reduce risks for employees, businesses, and communities across the country.”

The National Cannabis Industry Association (NCIA) submitted written testimony during the hearing along with stories from over 100 cannabis industry professionals outlining the dangers and burdens that legitimate cannabusinesses face without access to banking. NCIA spokesman Morgan Fox toldBenzinga, “The SAFE Banking Act has been one of the NCIA’s biggest legislative priorities for some time, and the sheer number of bipartisan cosponsors of this bill on introduction is a great sign that those efforts are bearing fruit. This level of support suggests that cannabis banking reform stands a serious chance of passing in the current session.”

Support for the SAFE Banking Act

The bill does, indeed, have a great deal of support, receiving 106 cosponsors at the time of its reintroduction, with a quarter of the House of Representatives being in favor of the bill. However, the Senate, which is currently controlled by Republicans, who are historically less inclined to support cannabis reform, has yet to address the bill, and some industry analystsbelieve that there’s not enough political will to push it through as a standalone bill.

Additionally, Republicans in the House Financial Services subcommittee reviewing the issue said during the February hearing that addressing how banks can serve federally illegal businesses will only muddy the already murky regulatory waters. Representative Blaine Luetkemeyer (R-MO) said, “Today we are discussing the merits of allowing federally illegal businesses to access banking services. As far as I know, the House Financial Services Committee does not have jurisdiction over descheduling a drug.”

But proponents of the bill argue that the marijuana banking problem is one that urgently needs to be addressed, with or without federal cannabis legalization. Denny Heck told the committee that “We have the power in this committee to prevent murders and armed robberies, and we must use it, we must use it now… I fear dispensary employees being at great risk.”

Bottom Line

The SAFE Banking Act of 2019 was introduced to protect financial institutions and ancillary companies that bank and do business with cannabis-related businesses from federal punishment. In addition to protecting these institutions, the act is likely to reduce the threat of criminality that cash-only businesses face, such as theft and violence.

With 106 cosponsors at the time of its introduction, the bill has received significant bipartisan support. However, it still needs to be discussed by the Republican-dominated Senate and approved by both chambers before becoming law.

The post What is the SAFE Act & How Will It Impact Cannabis? appeared first on CannabisFN.

Giving someone credit for unearthing the cannabis plant’s medicinal powers is like trying to name the person who invented chocolate. Our ancient ancestors have been using weed to treat a whole host of ailments and medical conditions for thousands of years.

Way back in 4,000 BC, weed was considered one of the “five grains” in China and was harvested as an important food crop. Some time later, in 2737 BC, the first recorded use of cannabis as a medicinal drug was confirmed.

While it may be difficult to pinpoint exactly who uncovered the plant’s therapeutic qualities, an Israeli chemist has earned himself the rather cool nickname, “The Godfather of THC.”

His real name is Raphael Mechoulam and he has been studying THC and CBD for more than 30 years. An 88-year-old Israeli organic chemist and professor of Medicinal Chemistry at the Hebrew University of Jerusalem in Israel, Mechoulam was born in Bulgaria on November 5, 1930.

Since he started research on cannabis in the 1960s – when he asked a police station if he could use the confiscated weed to perform the research – Professor Mechoulam has been nominated for 25 separate academic awards, one of which was a Nobel Prize! So influential have his research efforts been amidst the rise of cannabis reform that he even had a 2015 movie documentary called ‘The Scientist’ produced in his honor.

Mechoulam Started Studying Marijuana as a Young Professor

Back in 1949, Mechoulam immigrated to Israel with his family. It was there that he began studying chemistry and earned his Ph.D. at the Weizmann Institute, Rehovot, in 1958.

Following postdoctoral studies at the Rockefeller Institute, New York from 1959–1960, Mechoulam joined the scientific staff of the Weizmann Institute (1960–65), before leaving for the position of professor at the Hebrew University of Jerusalem in 1972. From 1975, he assumed the role of professor at Lionel Jacobson Professor of Medicinal Chemistry.

Mechoulam discovered that some 150 years ago, researchers accomplished the task of isolating morphine from opium. A century before, researchers managed to isolate cocaine from coca leaves, but what about cannabis and its all-important cannabinoids? Pondering over the thought led to Mechoulam and his colleagues acting on it. Within a few months, they had determined a method of testing cannabis’ medicinal properties.

Mechoulam’s Groundbreaking Discovery of THC

Since his early years of cannabis research in the 1960s, Mechoulam has made some crucial contributions to the science of cannabinoids and the human body’s powerful endocannabinoid system (ECS).

When he was aged just 34 years, Prof Raphael Mechoulam teamed up with his colleague Prof Yechiel Gaoni to publish a pioneering scientific article that highlighted how they successfully analyzed and synthesized the cannabis plant’s main psychoactive ingredient tetrahydrocannabinol (THC). In the years that followed, further work on the cannabis plant took place and the ECS was identified for the first time.

A separate research project kick-started by Mechoulam resulted in the isolation of anandamide, which was the world’s first described endocannabinoid. It was in the year 1992 that two of Mechoulam’s postdoctoral researchers isolated and characterized anandamide.

Mechoulam’s work soon propelled him to the top of the medical cannabis testing totem pole, not to mention earned him countless honors and awards, including the Israel Prize in 2000 and the NIDA Discovery Award in 2011, among many others.

In addition to his research efforts, Mechoulam serves as an advisor to the Israeli Ministry of Health. Most recently, Mechoulam joined the scientific advisory committeeof Israeli medical cannabis company Cannbit.

Mechoulam has Played a Major Role in Dispelling Misconceptions about Cannabis

Mechoulam’s outstanding lifework, combined with the rise of medical cannabis research in Israel, has helped millions of people suffering from plant-treatable conditions. It is thanks in large part to Mechoulam’s research over the past half century that doctors are now able to prescribe cannabis to patients for the treatment of widespread medical ailments and disorders.

One of his most impressive achievements was the isolation of Δ9-tetrahydrocannabinol, A.K.A “THC”. This psychoactive chemical compound is the most abundant of the plant’s naturally occurring cannabinoids. Something else that can be attributed to Mechoulam’s hard work and knowledge is the establishment of the structure of cannabidiol (CBD).

While he might not have been the man to isolate CBD for the first time, Mechoulam was the first to distinguish its structure. Such a tremendous accomplishment sent ripples of excitement across the world and informed people about the cannabis plant’s medicinal and therapeutic qualities.

In addition to this, the professor identified the brain’s first endogenous cannabinoid – Anandamide. This cannabinoid was one of the compounds that triggers cannabis’ receptors, thus activating them in the process. In Sanskrit, Anandamide is translated as “supreme joy”. His discovery of a second endogenous compound, named 2-AG, opened new doors for endocannabinoid research.

As a pro-pot professor with a strong influence on the moulding of the medical cannabis industry, Mechoulam (unsurprisingly) does not agree with cannabis’ Schedule 1 classification.

“The problem is that for many years, marijuana was put on the [same] scale as cocaine and morphine,” he says. “This is not fair. All drugs, starting from aspirin to valium, [have] side effects. One has to know how to use them.”

The post Who is Raphael Mechoulam & Why Is He Known as the Godfather of Cannabis appeared first on CannabisFN.

The Marijuana Justice Act was first introduced by 2020 presidential hopeful, Senator Cory Booker (D-NJ), in August of 2017. The bill is designed to federally decriminalize marijuana while promoting restorative justice for populations that are disproportionately affected by cannabis prohibition, such as people of color and low-income communities.

Changes That the Marijuana Justice Act Would Enact

The Marijuana Justice Act would make several important changes if passed into law. Topmost among those changes is that it would remove marijuana from the Controlled Substances Act, which would essentially end the federal government’s prohibition of cannabis.

In addition, the act would cut all federal funding for state law enforcement and prison construction in states where low-income and minority populations are being disproportionately arrested and incarcerated for marijuana offenses. It would also allow entities to sue any state that disproportionately arrests and incarcerates marginalized communities for these offenses.

With respect to those who are already incarcerated for marijuana offenses, the bill would provide a process of expungement at the federal level as well as federal resentencing processes for marijuana offenses. Those who are currently incarcerated for marijuana offenses would likely see their case expunged or sentence reduced. Moreover, the bill would prevent anyone with a minor marijuana offense from being deported for it.

In addition to taking punitive action on states, prisons, and law enforcement agencies that disproportionately arrest marginalized communities for marijuana, the bill would create a “Community Reinvestment Fund,” which would allocate funds to rebuild the communities that have been harmed by marijuana prohibition and incarceration.

Booker said of the bill: “The War on Drugs has not been a war on drugs, it’s been a war on people, and disproportionately people of color and low-income individuals. The Marijuana Justice Act seeks to reverse decades of this unfair, unjust, and failed policy by removing marijuana from the list of controlled substances and making it legal at the federal level.”

Impact of Federal Legalization

Federal legalization will minimize several pressing problems and injustices in addition to making access to cannabis easier. For example, nearly half of all drug arrests are for simple marijuana position, and between 2001 and 2010, there were over 8 million marijuana arrests in the United States. A marijuana arrest can cause difficulty with securing employment, housing, and federal financial aid.

Legalizing marijuana at the federal level could significantly mitigate the opioid crisis, as research suggests that cannabis is an effective treatment for pain with a better safety profile than opiates and less risk for dependence. This crisis is leading to addiction, hospitalization, and death for a growing population. Legal access to marijuana has been associated with a 23% reduction in opioid dependence and abuse-related hospitalizations, as well as 15% fewer opioid treatment admissions.

Federal legalization also has the potential to significantly improve communities. Colorado, for example, is allocating marijuana revenues for social good, distributing $230 million to the Colorado Department of Education between 2015 and 2017. Meanwhile, Washington state dedicates 25% of marijuana profits to substance use disorder treatment, education, and prevention and 55% of cannabis tax revenue to fund basic health plans.

Congressional Support for the Marijuana Justice Act

The Marijuana Justice Act, which was initially cosponsored by Senators Barbara Lee (D-CA) and Ro Khanna (D-CA), in addition to Booker, is garnering increased support from Congress.

Its current cosponsors in the Senate include Senators Ron Wyden (D-OR), Kirsten Gillibrand (D-NY), Bernie Sanders (I-VT), Kamala Harris (D-CA), Jeff Merkley (D-OR), Elizabeth Warren (D-MA), and Michael Bennet (D-CO).

The bill also boasts a laundry list of sponsors from the House of Representatives:

• Rep. Barbara Lee (D-CA-13)*
• Rep. Ro Khanna (D-CA-17)*
• Rep. Sheila Jackson Lee (D-TX-18)*
• Rep. Steve Cohen (D-TN-9)*
• Rep. Eleanor Holmes Norton (D-DC-At Large)*
• Rep. Bobby L. Rush (D-IL-1)*
• Rep. Earl Blumenauer (D-OR-3)*
• Rep. Danny Davis (D-IL-7)*
• Rep. Jared Polis (D-CO-2)*
• Rep. Hakeem S. Jeffries (D-NY-8)*
• Rep. Pramila Jayapal (D-WA-7)*
• Rep. Yvette D. Clarke (D-NY-9)*
• Rep. Marcia L. Fudge (D-OH-11)*
• Rep. Donald M. Payne Jr. (D-NJ-10)*
• Rep. Bennie G. Thompson (D-MS-2)*
• Rep. Frederica Wilson (D-FL-24)*
• Rep. Mark Pocan (D-WI-2)*
• Rep. Tulsi Gabbard (D-HI-2)*
• Rep. Jamie Raskin (D-MD-8)*
• Rep. Raul M. Grijalva (D-AZ-3)
• Rep. Jared Huffman (D-CA-2)
• Rep. Jerry McNerney (D-CA-9)
• Rep. Luis J. Correa (D-CA-46)
• Rep. Joseph Crowley (D-NY-14)
• Rep. Donald S. Beyer Jr. (D-VA-8)
• Rep. Carolyn B. Maloney (D-NY-12)
• Rep. Alan S. Lowenthal (D-CA-47)
• Rep. Gregory Meeks (D-NY-5)
• Rep. Ruben J. Kihuen (D-NV-4)
• Rep. Henry “Hank” C. Johnson Jr. (D-GA-4)
• Rep. Wm. Lacy Clay (D-MO-1)
• Rep. Karen Bass (D-CA-37)
• Rep. Alcee L. Hastings (D-FL-20)
• Rep. Emanuel Cleaver (D-MO-5)
• Rep. Cedric l. Richmond (D-LA-2)Rep. Eddie Bernice Johnson (D-TX-30)
• Rep. Janice Schakowsky D. (D-IL-9)
• Rep. Anthony G. Brown (D-MD-4)
• Rep. John Lewis (D-GA-5)
• Rep. Tim Ryan (D-OH-13)
• Rep. Bonnie Watson Coleman (D-NJ-12)
• Rep. Luis V. Gutierrez (D-IL-4)

*cosponsored initial bill

While the bill has been largely stagnant since its 2017 inception, given its widespread congressional support, including several presidential hopefuls, the 2020 election is likely to bring it back to the forefront of federal policy conversations.

The World Health Organization (WHO), the UN’s medical body, essentially, has issued its latest recommendations on how to deal with cannabis. The report, cautious and delayed since December, essentially states the obvious. Particularly given how many member states (and not just in the Western Hemisphere, let’s not forget) are jumping into the global cannabis market with abandon.

What does the report say? Remove cannabis from Schedule VI of the 1961 Convention regulating “dangerous substances.” Plus remove THC from the 1971 Convention and “just” place it under the Schedule I Convention of 1961.

Don’t get lost in the details. Delete the legislative gobbledygook from the equation and this is what it means: The WHO is NOT suggesting any real form of decriminalization much less rescheduling. Cannabis would still remain a Schedule I drug at the international level. CBD as long as it contains no more than 0.2% THC would be removed from international drug control regulations. This still does not address the novel food discussion Europe, by the way.

And pharmaceutical preparations only, could be added to Schedule III of the 1961 Convention. See dronabinol. It is already there. The UK opted, temporarily for a Schedule II situation last year, but that too, will certainly change soon.

This is, in other words, not a major “win” and is designed, on the international level, to slow things down dramatically everywhere. No member state of the EU, despite Luxembourg’s publication of a fast-track legalization timeline, is likely to run afoul of the pace of the UN. For multiple reasons. And especially over this.

The idea that Luxembourg, home of the EU Courts of Justice, would also pose a challenge to the unity of the EU over cannabis reform is also unlikely. That means, pretty much by definition, in other words, that the euphoric estimations of the “worth” of the European Cannabis market are to be treated with extreme caution for the investing class.

A Four To Five Year Window

Being bearish on the Euro canna market (or for that matter the canna market anywhere) is not popular right now, in a wave of (rightly earned), feel good news. Yes, markets are opening everywhere. But how and where is not only the stuff of strategic portfolio managers at the biggest public firms. It is also understanding what is driving markets, industry news and even more relevantly, headwinds already on the horizon if not here.

So the watchword, if one is to be had is not so much bear or bull but proceed with caution.

There are many parts to this. Part of it is the evolving discussion, on an EU member, state-by-state, national level debate about cannabis. And that is all over the lot. The British are in some ways, more ahead of the rest of the continent. When Brexit happens, if it does, so will cannabis reform, if for no other reason to stimulate the economy overall if not boost the NHS. But that is also a discussion fraught with uncertainty in all directions and not even the Brits are in a mood right now to defy the UN on something like this.

Europe, however, is also on an expedited timeframe for several reasons. It is being driven by Canadian and U.S. if not international reform. The EU as a bloc is also facing reasons to justify its existence which include conversations like drug legalization and healthcare. Cannabis falls into several fault lines, including the need for governments to seem responsive to the wants, needs and lives of citizens. Where cannabis intersects with the survivability of healthcare, it is central to the mainstream zeitgeist here far beyond just the plant, as it has been in other places (see both the U.S. and Canada). The question is, however, for all the political foment and daily press releases, where and how does one invest for not political but actual cash return on investment?

U.S. And Canadian Cash Looking Abroad Right Now

Europe is a different animal, as investors coming to Europe in droves this spring are about to learn in spades. Yes, this is a hugely valuable medical market. Germany is the most “advanced” in this discussion, but the big takeaway for value investors is that the problems seen here will be manifest everywhere, including the UK. Namely, access, cost, and doctor education if not approvals are a thicket that has yet to be broached decisively, by anyone. For all the giddy press releases about “first sales” anywhere (and by anyone), realize that the entire discussion in Europe is just different. And will take time.

Why? All forms of THC are expensive – outside the black market, which is pretty reliably clocking in at 10 euros ($12) a gram. In other words, it is EU black and grey market, not legal retail prices that seem reasonable to medical and recreational retail consumers in the U.S., Canada and of course, Holland and Spain. That is not the optic investors need right now, but rather this one: Right now, legal floss (flower) cannabis, prescribed by a doctor and picked up at a pharmacy, clocks in at around $3,000 per month. That entire discussion about sustainable pricing by the way, (also called prenegotiated bulk buy cost by the government) has yet to be really had, although it is clearly on the way. See the German bid.

CBD is not a question that is going to be solved overnight either, even with UN restrictions being lifted. Why? Novel food regulations that will impact most of the business for the next several years until things are more settled at the European level.

Look For Smart, Niche Plays

There are a gazillion ways to lose money but alot of very smart plays too. The smartest approach to invest in Europe? Get to know the territory.Visit. More than once.  Understand that staggered investments and strategies are going to be necessary. In other words, where is cash flow going to come from in six months not five years?

And that understanding is not just of the legislative landscape, but a knowledge of a bit of the history too. Don’t think that investors in French wine country (for example) have not already thought about how to partner with foreign cash in prep for a longer term crop that is absolutely coming. Or that Bavarians with wheat fields once bound for beer are not plotting how to get into the cannabis game. They just need some green of the financial kind, and probably from overseas.

However, just setting your eyes on growing is not where the smart money is looking right now. Look for other kinds of plays. Hybrid solutions in other words, that keep you in compliance. Cannatech and distribution will be big here. And above all, look for investments, even at the early stage, with at least logical if not clear paths to market that take into consideration that from the medical (i.e. most valuable) conversation for the immediate to medium term future is longer and slower than most think. CBD discussions are more complicated than they seem to be at first glance. And that sales numbers are the only thing that counts.

The post WHO (Barely) Moves The Needle On Cannabis Reform: But What Does This Really Mean For Investors? appeared first on CannabisFN.

In January of last year, then-Attorney General Jeff Sessions, someone with a long record of opposing marijuana, rescinded the Obama-era Cole Memo. The Cole Memo essentially stated that the federal government would take a laissez-faire approach to enforcing federal marijuana laws in states where cannabis is legal.

In response to this move by Sessions, Democratic Senator Elizabeth Warren and Republican Senator Cory Gardener introduced a bipartisan bill called the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act. If passed and signed into law, the STATES Act will authorize states to make their own decisions with respect to making and enforcing cannabis laws related to possession, production, and sale, without federal interference.

The Marijuana Problems the STATES Act Solves

There are three primary problems regarding cannabis regulation that the STATES Act would solve. Firstly, the act would address the glaring discrepancies between state and federal cannabis laws that create a lot of regulatory problems for consumers and industry stakeholders. The act identifiesthat “46 states have laws permitting or decriminalizing marijuana or marijuana-based products” and would protect anyone who’s acting in full compliance with state cannabis laws from federal prosecution. In other words, people who are acting in compliance with state law will no longer be violating federal law.

Additionally, the STATES Act would put protections in place for financial institutions seeking to conduct business with the cannabis industry. Right now, cannabis is classified as a Schedule I drug under the Controlled Substance Act, which means banks and other financial institutions are at risk of money laundering charges and other sanctions whenever they deal with the marijuana industry. The current threat to banks means that the majority of marijuana businesses are cash-only enterprises, which puts these businesses and their employees at great risk of theft and violence. In fact, both the Federal Reserve and law enforcement officials have expressed grave concern over the increase in crime associated with cash that cannot be banked.

Passage of the STATES Act would mean that, as long as cannabis transactions are compliant with state law, they cannot be considered trafficking under the Controlled Substances Act. Therefore, financial institutions in states with legal or decriminalized marijuana are free to work with the cannabis industry without the threat of prosecution. Not only would this development make transactions easier, but it would also help protect businesses from being targeted by criminals for having large sums of cash on hand.

The third biggest problem the STATES Act solves is great news for cannabis investors and the United States economy as a whole. The legalization of cannabis across Canada has resulted in a multi-billion dollar industry. Canadian marijuana firms are raising billions of dollars from public capital markets and institutional investors, which is money that the United States cannabis industry is likely to see once financial institutions feel safe to transact with marijuana businesses.

What Investors Are Saying About the STATES Act

Big-name Canadian cannabis businesses are already setting their sights on the U.S. market with the introduction of the STATES Act. For example, Canopy Growth, which is currently valued at more than $11 billion, reportedly saidthat it would “move ahead” into the U.S. market once legislation is in place to prevent the federal government from interfering with state marijuana policies, which the STATES Act would do.

Furthermore, the parent of Corona, Constellation Brands, which has increased its investment in Canopy Growth, said that it had “no plans to sell any cannabis products in the U.S. or any other market unless or until it is legally permissible to do so at all government levels.” In June of last year, shortly after the introduction of the STATES Act, Constellation CEO Rob Sands said that if “we see that opportunity within the confines of what we can legally do, we will do it.”

Other prominent cannabis investors who are optimistic about the investment promise the bill holds include president of Acreage Holdings George Allen who stated: “The illegality of cannabis at the federal level has put much of the financial industry off-limits to businesses operating legally in two-thirds of the states. But most lawmakers agree that the awkward dual legal status of cannabis has gone on too long, and they will vote in 2019 to pass the act to protect U.S. states that elect to legalize cannabis. The bill will not only allow cannabusinesses to bank, but it will also spark a big bang in terms of investment. We will see a frenzy of activity and attention when the first institutional investors join the fray.”

Additional Impacts of the STATES Act

In addition to the aforementioned solutions and implications for cannabis stakeholders, there are several other changes, both good and bad, worth noting that will occur if the STATES Act becomes a law. On a positive note, industrial hemp will no longer be considered cannabis. Hemp is currently a legal relative of cannabis and it’s a strong and sustainable material that can be used in everything from paint to food. If and when hemp is no longer considered cannabis, the significant production barriers it currently faces from being associated with the drug will be lifted, resulting in a lot of economic potential.

The bad news is, cannabis will still be illegal at the federal level because the Drug Enforcement Administration refuses to remove its Schedule I classification. And while the Schedule I classification won’t affect banking per the STATES Act, it does mean that major limits remain on medical cannabis research and the industry as a whole.

Bottom Line

The STATES Act, a bipartisan bill that Congress is expected to pass into law, is a major step forward for cannabis legalization and the entire cannabis industry. It will allow financial institutions to transact with marijuana businesses without fear of federal prosecution, which not only makes the cannabis industry safer by reducing criminal threats to cash-only businesses but opens the door to massive financial opportunities for investors.

The post Everything You Need to Know About the STATES Act appeared first on CannabisFN.

Europe as a medical cannabis market is opening in 2019. That is an easy prediction to make given all that is afoot. The European Parliament is debating the issue. That in itself is also pushing the UN. Individual countries across Europe have begun to make declarations, even if not so definitive as Luxembourg (see Switzerland, Spain and Greece) that major reform is on the roadmap over the next five years. Even the long-stalled German cultivation drama appears to be headed into the curtain call of its first act this spring.

Not to mention what the Brexiting UK might do, in the throws of extremis and when access to imported basic food and medicine is now absolutely thrown into doubt.

There are many, many optimistic signs afoot from the viewpoint of the cannabis industry and investors, in other words, even for not always positive reasons, that Europe is budding and this is a banner year.

For all the optimism, however, there are issues that the often giddy business analysts and mainstream media (in any language) are often NOT covering. And this too will also begin to show up, dramatically, starting with the ever important metric of patient numbers. It is also precisely the kind of thing that U.S.-based and other funds now looking at the terrain need to know.

Medical Cannabis Is The Only Game In Town For At Least Two Years

Luxembourg’s announcement that they were putting recreational reform on the agenda woke up the imagination of the North American press (if not industry). Plans are already hatching in the text of such articles, at least, for “US imports” bound for Luxembourg and Switzerland if not Holland and Greece beyond that. That includes producers from all states in the U.S. union, of course, but also includes tech companies from California and Canada.

However, even that dramatic pronouncement should be tempered with extreme caution.

Luxembourg is a tiny country. Looking to Canada for an example of how to transition to a recreational discussion is also at least a two year time period that will not end until 2020 at the earliest. California state law (on privacy to banking) is also not robust enough for central European if not British bankers (who still need passporting and trusted nation status). Want to hit coffee shops in Europe? Best place is still Amsterdam, and look what a mess that has turned out to be. Barcelona is Spanish Boulder. Federal recreational reform, no matter now introduced as bills in several federal legislatures across the Eurozone, is at least five years off – and in most places.

Europe, in other words, Dorothy, ain’t Kansas. Or Canada for that matter.

Health Insurance Coverage Is An Issue

While it may sound like manna from heaven to think that “public” health insurers in Germany, much less the beleaguered NHS will “pay for pot,” this idealized dream is actually the fact for a very small number of patients on a country-by-country basis. And that is what counts. Also remember that the average “cost” to either a patient or insurer here is about $3,000 a month. While people on statutory health care who get coverage have to pay about $15 per month as their copay, that still means insurers are at the end of a very expensive bill, that is also reserved pretty much for “the disabled.” And both patients and doctors who are successful, first have to engage in a paper storm that is significant (and where doctors are also reimbursed a pittance that has not been increased since the mid 80’s).

Where patients and doctors have reached compromises (in prescription and approvals), this has started to show up in the numbers. But this is absolutely slow going over rough territory. And not the kind of information that qualifies as “the fancy stuff” for corporate reports until some of the regulatory thicket around this entire conversation begins to be better defined and reformed.

Here are some sobering facts. The average patient in Germany (read Europe and the UK) is sick, poor, and has to battle through doctor approvals, doctor error and an extreme reluctance to cover the drug. It is classified in Germany (for example although this is essentially true across Europe), as a drug of last resort, an off-label medication for every condition except MS, and a narcotic. In the UK, they may issue “Schedule II” prescriptions, but basically, so far at least, so what?

For all of these reasons, the situation is more complex than merely patient counts.

Furthermore, “acquiring patients” by any producer or distributor – a model seen in the U.S. and Canada, will not work in any part of the EU or surrounding countries. German pharmacies are also a part of the equation in a way that is forcing everyone to up if not change their game.

CBD Entrance Is Also Strewn With Obstacles

Entering Europe with a CBD play is also not for the faint of heart. Seen at least last year as the way to get a “foot in the door,” even larger companies from overseas have stumbled. CBD has many issues that start with the question of “novel food” and end with the fact that “wellness” here, as it is everywhere, depends on consumers beyond patients to play along. It is clearly coming, but that, like McDonalds, will have to find its entry point in the market.

Digital Healthcare Comes With Regulatory Landmines In Several Directions

The ideas about “digital healthcare delivery” that include discussions of “doctor chats on Skype” (scarily even coming out of the mouths of senior British ministers at present), to the association of “home delivery,” of cannabis via Uber from a colorful dispensary will not happen in the EU. Anywhere. Including the UK. At least until some big network security, banking, insurance and other issues are ironed out.

Central to all of these problems is understanding of a new law here in the EU that North America is just hearing about. Violate that and you are looking at 4% of global revenues per fine. Don’t believe it applies to you? Think again.  Google just got hit in France. It also applies to telco. I.e. – no doctor Skype. And certainly no Uber delivery via Amazon webstore. In Germany at least, such trips and deliveries must happen by regulated, union driven service. And “online pharmacies” (as Auslandersunderstand the same), are verbotten.

From the perspective of investors, in other words, the European market is absolutely ripening with possibilities. However, there are many minefields in such newly opened battlegrounds (because that is what the regulatory environment looks like on the financial, security and overall regulatory front). And not always alot of accurate information.

Bottom line on Europe? Do your normal risk analysis, and find the right technical and legal help.

Go native, in other words. Befriend some locals. And ask alot of questions.

The post Understanding The European Cannabis Industry appeared first on CannabisFN.

Being prescribed pot by a doctor back in the ancient times was not exactly a rarity. The cannabis plant’s medical history dates back to 2900 B.C. in China. It was also included in the U.S. pharmacopeia throughout the 1800s, prior to its classification as a ‘Schedule 1’ narcotic.

Since the plant has been hailed for its medicinal potential, ignorantly stuffing it into the same category as addictive and dangerous illicit substances – like heroin and LSD – is pretty barbaric. Thankfully, today’s doctors are waking up to the medical potential of cannabis.

Scientists and researchers are digging up the true facts about this unique green plant’s bundle of therapeutic uses. In September of last year, the U.S. Drug Enforcement Administration (DEA) rescheduled medicines containing CBD (cannabidiol) to Schedule 5, so long as they don’t contain more than 0.1 percent of the psychoactive cannabinoid known as THC (tetrahydrocannabinol).

This allowed for the sale of the first non synthetic, cannabis-derived medicine to gain federal approval – Epidiolex. It was created by a company called GW Pharmaceuticals. GW is based in the United Kingdom, where medical cannabis legalization has also spread to.

Cannabis: A beneficial addition to everyone’s life?

Are you thinking about introducing cannabis into your life? Perhaps you’re not a consumer, but are considering an investment in the legal weed space? With the global sector forecast to rake in $146.4 billion by the end of 2025, it’s safe to say that the plant is piquing everyone’s curiosity.

After considering the below science-backed benefits of cannabis and its derivatives, e.g. oils and extracts, you’re sure to consider at least one of the above two options:

Chronic Pain

Numerous studies have cited the pain-relieving benefits of cannabis for chronic pain. Indica strains tend to be stronger painkillers than sativa strains. Combining the psychoactive compound THC with the non-psychoactive compound CBD will stimulate a synergistic effect for long-lasting relief.

Anxiety and/or Depression

Vaping cannabis oil or consuming infused edibles could help to relieve anxiety and depression, with this study stating how low doses of THC proved more effective at promoting relaxation. Start low, go slow is the method advised by healthcare practitioners who prescribe cannabis for anxiety and/or depression.

Anti-tumor and Anti-Cancer Properties

Cannabis’ antitumor properties have been studied in-depth, and the American Cancer Society has even admitted that cannabis kills and inhibits the growth of cancerous cells. Although it cannot be claimed a “cure” for cannabis as such, the plant’s active compounds can help manage a bout of cancer symptoms, including pain, nausea and insomnia.

Antipsychotic Properties

Contrary to what you might think, cannabis has the potential to treat and prevent psychosis. Studies in animal models expose the plant’s antipsychotic effects. Researchers stated how, in regards to CBD, “laboratory rodents and human studies have shown that this cannabinoid is able to prevent psychotic-like symptoms induced by high doses of Δ(9)- THC.”

Anti-inflammatory Effects

A popular treatment for athletes seeking relief from inflammation caused by sports injuries, cannabis boasts anti-inflammatory effects that make it an ideal treatment for people who suffer from arthritis.

Reduces Seizures in Epilepsy

Cannabis-derived medicines – like Epidiolex – are helping to relieve seizures caused by severe forms of epilepsy in children, including Dravet syndrome and lennox-gastaut. Various studies have proven this, with researchers from one study confirming that “both Δ9-THC and CBD can prevent seizures and reduce mortality in animal models of seizure with low toxicity and high tolerability.”

Lowers Risk of Diabetes

A research paper from the American Alliance for Medical Cannabis (AAMC) purported that cannabis can stabilize blood sugars, provide neuroprotective effects, improve circulation, reduce blood pressure and cholesterol, and relieve arterial inflammation experienced by people with diabetes. A separate study revealed a decreased prevalence of diabetes amongst cannabis consumers.

Helps Treat Substance Abuse

Addictive substances, like opioids (e.g. heroin, codeine) can be substituted with cannabis. A study on “Cannabidiol as an Intervention for Addictive Behaviors” demonstrated how CBD influenced the intoxication and relapse phase of opioid addiction.

Stimulate Appetite

Cancer patients who undergo chemotherapy will usually experience nausea and vomiting. Lack of appetite and weight loss are also two side effects experienced by people with AIDS. THC (tetrahydrocannabinol) is well-known for its appetite-stimulating properties, but this study concluded that another cannabinoid called cannabigerol (CBG) is “a novel, well-tolerated appetite stimulant in pre-satiated rats”.

Protect the Brain and Treats Trauma

The U.S. government owns the original patent on cannabinoids and lists them as “Neural Protectants.” In addition to brain protection, the endocannabinoid system (ECS) possesses promise in the treatment of traumatic brain injury (TBI) pathology, according to this study.

Promote a Good Night’s Rest

One in four Americans develop insomnia every year. That’s about 25 percent of the U.S. population. A study conducted using the Releaf App showed an average symptom severity reduction of −4.5 points on a 0–10 point visual analogue scale. The study assessed 1056 medical cannabis administration sessions from 409 people suffering with insomnia.

Bottom Line

It might still be illegal in many parts of the globe, but the cannabis plant did not sprout out of Planet Earth’s fertile lands by mistake. Even in its purest form, the plant can deliver the human body with a wallop of natural goodness. Heck, our bodies are even equipped with something called an endocannabinoid system (ECS) that triggers various therapeutic responses when exposed to cannabinoids!

A growing body of successful clinical trials and preclinical research are emerging to spotlight cannabis’ therapeutic potential. As legalization spreads, this is sure to restore cannabis’ suitability as a pharmaceutical medicine. Add to this the fact that cannabis legalization has contributed to a steep decline in opioid misuse and, well…  let’s leave you to ponder over what you’ve just absorbed, shall we?

The post Clearing the Smoke: The Science-backed Health Benefits of Cannabis appeared first on CannabisFN.

Many stakeholders in the cannabis and alcohol industries are eager to see how and if marijuana legalization will impact alcohol consumption. Due to cannabis only recently becoming more accessible, the degree to which it affects alcohol use is still uncertain, but early studies and observations suggest that many people are reducing their alcohol intake in favor of marijuana consumption.

A recent joint study by researchers at the University of Connecticut, Georgia State University, and Universidad del Pacifico suggests that there’s a reduction in alcohol consumption in the United States and it’s correlated to marijuana’s increased legality and accessibility.

Rather than survey consumers, the study used alcohol data from the Nielsen Retail Scanner for 90 alcohol chain stores between 2006-2015. The researchers opted for this data in lieu of surveys because people tend not to be truthful about their frequency and amount of alcohol intake. The study compared alcohol sales in states where medical marijuana is legal against states where it isn’t, including data before and after medical cannabis became legal in a state. Furthermore, the working paper considered socioeconomic status as that can impact how much alcohol various populations consume.

Significant Reduction

Over the 10-year time period the researchers studied, counties in states with legal medical marijuana showed nearly a 15% reduction in monthly alcohol sales. The study concluded that alcohol and cannabis are often substitutes for one another and, when presented with the option to consume marijuana, many alcohol users will forgo alcohol in favor of cannabis.

The study’s findings are even more significant considering that the study dates back to when medical cannabis programs were new in the states studied and cannabis regulations were more restrictive than they are now. However, the fact that the working paper addressed medical cannabis rather than recreational cannabis creates some questions about whether recreational cannabis results in a similar reduction in alcohol use. Alcohol tax revenues in Washington and Colorado, legal recreational states, have remained relatively stable since recreational use became legal in 2014.

That being said, because legal recreational marijuana is so new, there are many variables that have yet to be studied with respect to the relationship between cannabis and alcohol. In addition to a reduction in alcohol sales, it helps to look at how overall cannabis sales compare to alcohol. In 2018, Aspen’s cannabis sales eclipsed alcohol sales for the first time in U.S. history. According to an end-of-year sales tax report, cannabis is the fastest-growing industry of Aspen’s 12 retail sectors.

These developments have raised the alarm for alcohol businesses. In early 2018, Molson Coors determined that legal marijuana is a risk to the company’s growth and development: “Although the ultimate impact is currently unknown, the emergence of legal cannabis in certain U.S. states and Canada may result in a shift of discretionary income away from our products or a change in consumer preferences away from beer.”

Molson Coors isn’t alone with its concern; Boston Beer and Craft Brew Alliance also expressed concern while Constellation Brands, the owner of major alcohol brands like Corona, made a large investment in the cannabis industry.

Bottom Line

Like most aspects of the cannabis industry, there needs to be more research to determine how, exactly, the increased accessibility and legality of cannabis will affect alcohol consumption. However, early research and observations suggest that the accessibility of medical and recreational marijuana reduces consumer interest in alcohol, which is causing some alcohol companies to invest in the marijuana industry while others are strategizing for how to better combat the competition.

The post How Will the Cannabis Industry Affect Alcohol Use? appeared first on CannabisFN.

Cannabis is a hot topic nowadays. The plant has broken free from the ‘stoner stereotype’ that plagued pot’s reputation for so long. Here we are in 2019 and the plant has been legalized for medical use in 33 U.S. states, not to mention other countries around the world with varying levels of restrictions.

From Argentina, Brazil, Chile, Colombia and Uruguay, all the way to Czech Republic, Germany, Italy, Spain and the United Kingdom, cannabis has emerged as a popular medical treatment for a broad spectrum of diseases and conditions, including arthritis, AIDS, ALS, Alzheimer’s, cancer, chronic pain, depression, diabetes, epilepsy, glaucoma, multiple sclerosis (MS), Parkinson’s, PTSD, Tourette’s syndrome and much more.

With so many medical uses tied to the plant, it’s not surprising that the medical cannabis market is predicted to hit $37 billion in the United States by 2023. This is according to a report titled the “Medical Cannabis Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023.

We have been hearing so much good news about the cannabis plant lately, that it’s been hard to focus on the cons. In this article, we’re going to talk about something called cannabinoid hyperemesis syndrome (CHS). While it’s not exactly common, it’s certainly a topic that remains somewhat in the dark. Let’s lift the lid on this condition caused by cannabis use to shed some light on its symptoms, diagnosis and prevention.

What is Cannabinoid Hyperemesis Syndrome?

Just a small portion of people will develop CHS; particularly those who consume cannabis in copious amounts and have done so for many years. Daily users may also be affected. Nausea and vomiting are two unpleasant symptoms associated with CHS – ironic, since one of the plant’s primary cannabinoids, cannabidiol (CBD), has been proven to provide relief for many patients when used as an antiemetic drug.

CHS is somewhat of a mystery condition, since it occurs by an unknown mechanism, according to this study. What we do know, however, is that three main cannabinoids found in the cannabis plant may trigger opposing effects on the gastrointestinal tract emesis response. They are tetrahydrocannabinol (THC), cannabidiol (CBD) and cannabigerol (CBG).

In simple terms, nausea is the feeling of sickness that precedes emesis. When emesis occurs, the contents of the stomach may be expelled from the GI tract via the upper esophageal sphincter.

Stages & Symptoms

Repeated bouts of vomiting is a common symptom of CHS. A doctor or healthcare provider may not be up-to-date on the diagnosis of CHS, which is why it is best to visit a doctor who specializes in treating medical cannabis patients if you’re concerned.

Generally, an informed healthcare provider will diagnose CHS in one of three stages:

1. Prodromal phase – Nausea in the mornings and abdominal pain may present themselves in the prodromal phase. Using more cannabis to counteract the effects may not be a good idea if the symptoms last for months or years, which is common among CHS sufferers.
2. Hyperemetic phase – The longer a person goes undiagnosed with CHS and continues to use cannabis, the more severe the symptoms will become. Repeated episodes of vomiting, incessant nausea, dehydration, reduced food intake, weight loss, and abdominal pain are primary symptoms of the hyperemetic phase.
3. Recovery phase – The recovery phase for someone with CHS begins with cannabis cessation. (We talk more about this in the summary.)

Cannabinoid Hyperemesis Syndrome Diagnosis

As a newly discovered unwanted side effect of cannabis consumption, CHS is not a hot topic amongst healthcare providers. This is especially true in places that have not legalized the plant for medicinal use. Symptoms may go undiagnosed for years, with many doctors confusing CHS with Cyclic vomiting syndrome (CVS).

Visiting a gastroenterologist for a diagnosis is recommended. He or she may carry out the following tests to determine a diagnosis:

• Electrolyte tests
• Blood tests (for infection and anemia)
• Pregnancy tests (if necessary)
• Pancreas and liver enzyme tests (to check organ functioning)
• Urine analysis
• Drug screening (to determine if alternative substances have caused a synergistic effect)
• Head CT scan (for nervous system testing)
• Abdominal CT scan (to ensure no underlying health problems require surgery)
• Abdominal X-ray (to rule out potential blockages)
• Upper endoscopy (to clearly analyze the stomach and esophagus)

Treatment and Prevention

Refraining from cannabis consumption completely is the first approach to tackling CHS. For frequent users, drug rehabilitation programs may come in handy. If symptoms do not subside, your healthcare provider must conduct further testing to determine a cause for vomiting and nausea.

In severe cases, patients who are in the hyperemesis phase may require the following treatments:

• IV fluid replacement to treat dehydration
• Anti-nausea and anti-vomiting medication
• Pain-relieving medicine
• Regular hot showers

Despite the cannabis plant’s well-known anti-emetic properties, there is a growing body of evidence suggesting its paradoxical implications on the gastrointestinal tract. Ongoing studies are required to ascertain precisely what the prevalence of this disease is. In addition to this, evidence is required to determine what additional treatments may be needed, aside from discontinued cannabis use.

The post Cannabinoid Hyperemesis Syndrome: What You Need to Know appeared first on CannabisFN.

CFN Media Group (“CFN Media”, “CannabisFN”), the leading agency and financial media network dedicated to the worldwide cannabis industry, today announced that it would be filming interviews at the Benzinga Cannabis Capital Conference on Wednesday, January 16, 2019 in Miami Beach, FL at Eden Roc. The Benzinga Cannabis Capital Conference is among the largest gatherings of cannabis entrepreneurs and investors in North America.

“We are excited to attend the Benzinga Cannabis Capital Conference and connect with existing clients, promising companies and established leaders,” said CFN Media President Frank Lane. “Our exclusive interviews are trusted by a broad worldwide financial audience seeking visceral insight on cannabis investments. Entrepreneurs, executives and dealmakers have a unique opportunity to tell their story, in their own words, to this targeted audience.”

About CFN Media Group

CFN Media’s Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive coverage and original programming profiling the people, companies and investments shaping the industry.

For Cannabis Businesses & Companies

CFN Media is a leading agency and digital financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.

Our powerful media and distribution platform conveys a company’s message and value proposition directly to accredited and retail investors and national media active in the North American cannabis markets.

Since 2013, CFN Media has enabled the world’s preeminent cannabis companies to thrive in the capital and public markets.

The post CFN Media to Film Interviews at the Benzinga Cannabis Capital Conference appeared first on CannabisFN.

In late December, the news that the Austrian Minister of Health ordered businesses to immediately stop selling CBD infused food and cosmetics is a sign that this much heretofore misunderstood if not muted discussion is very much in the room not only in Austria, but also across Europe.

A Brief History of The Modern European CBD Market

The commercial CBD revolution has certainly hit the continent since the German medical market began to enter legitimacy in March 2017. However, as of the end of 2018, for all the exciting advancements logged over the last two years (see Switzerland in particular), there are also large and looming clouds on the horizon.

The fact that this move comes despite no new legislation to trigger it domestically is also a sign of how widespread this conversation actually is at the policy level across Europe, despite many attempts to downplay its significance by the burgeoning cannabis industry. While Austrian products made from the whole plant were not affected by the new decision, every extract and product which contains the same is.  As a result, all CBD extract-containing products are now in the crosshairs of this debate.

Further, the fact that in Austria, cosmetics are on the table too (a new and disturbing wrinkle for the industry) is also a sign that policy is catching up with a scientific understanding of delivery methods. Cannabinoids of course, can be absorbed through the skin.

However this development is hardly a surprise. The same issue also showed up in Spain in 2018, with the police literally raiding shops and taking product off of shelves. The new hard line taken in Austria means that this debate will probably show up in other places as the industry becomes large enough to actually regulate. And cannatech increasingly shows up across a spectrum of products – starting with delivery methods and beverages.

The fact that a commercialized industry had also already established itself in Austria, with an annual estimated industry revenue of 150 million euros last year is also a direct hit not only to the Austrian tax-paying, legitimate CBD business sector but far beyond it. Namely, this is actually a direct attack on the same argument that is being used to advance reform in other places. Reform, regulate and tax, in other words, might be a simple and effective slogan exported from the U.S. On the ground in Europe, however, this has already hit snags. And is of course, far beyond any one country’s CBD policy, another sign that the full recreational discussion (including THC) will take longer than advocates if not the commercial industry had initially hoped and so far projected.

So far, at least, the success of the Swiss CBD market over the last two years, has certainly driven the discussion other places because of the inherent tax value of the cannabinoid market to the government. In 2018, however, two years after this first began to bloom, the brakes are clearly being applied from the perspective of consumer safety.

Worse, at least for the industry itself, it is not just showing up in Austria.

What Is A “Novel Food?”

While the concept is essentially unheard of in the U.S. if not Canadian markets (although CBD regulation and labelling is clearly in the room in such countries as well as the UK), this is a big hurdle for the entire industry to overcome as things continue to develop in Europe.

Why?

A novel food, under European regulation, is a food that has no significant history of consumption in the EU prior to 15 May, 1997. That means that all things cannabinoid, are, by definition, affected. Further, this means that businesses must submit time consuming and expensive applications in every European country they plan to sell in.

And here is the biggest issue. While CBD oilis no longer prohibited, extracts are a very different animal.

Why?

Cannabidiol extractsare specifically included in the EU’s novel food list, which means that individual countries can set their own policies on the same. And the fight is likely to be, as a result, drawn out until European-wide policy on the same is finally amended. That said, with the pharmaceutical conversation on the drawing board, not to mention the coming impact of nanotechnology (all cannabinoid infused beverages) on the entire industry, don’t expect this to come soon, or be uncomplicated. Much less inexpensive.

Bottom line for all things CBD extract laden? Until CBD is registered in the Novel Food catalogue, consumption of anything with an extract (from food and beverages to supplements), the safest position for producers is to focus on products that are external use only. And even here, because cannabinoids can be absorbed by the skin, as in Austria, this is now dodgy territory for just about everyone. And just about everywhere.

With CBD producers looking for cross European distribution, this also means that issues like licensing and labelling costs are likely to become a major impediment to the same. Switzerland is the only country on the continent where this discussion has gone smoothly (and they are not in the EU).

Just like medicinal cannabis, in other words, major licensing, labelling and registration issues loom large. Not to mention a patchwork of changing legislation across individual countries that can be independently interpreted by sovereign governments. Further, and this is also another new twist to business development long term, will clearly be defined less by the cannabis legalization discussion and more by consumer and patient regulation far beyond it.

The post The Impact Of “Novel Foods” On Cannabis In Europe appeared first on CannabisFN.

Branching out into cannabis oil is a good idea, whether you’re starting from scratch or expanding an existing product line. Sure, big-name companies like Canopy Growth Corp., Tilray and Cronos Group are dominating the legal weed market in many aspects, but this doesn’t mean that a small-scale cannabis oil business can’t reap rather generous rewards from getting involved in the nascent industry.

The numbers indicate strong potential from a business point of view, with analysts at the Brightfield Group estimating that the hemp-CBD market alone could top $22 billion by 2022. Since CBD-rich cannabis oil can be derived from both the cannabis and hemp plants – not to mention the fact that the 2018 Hemp Farm Bill was recently passed – small business owners have the option of creating potent oils from either plant.

Why cannabis oil?

The oil that can be extracted from the cannabis plant is suitable for a broad scope of therapeutic treatments. Scientific research has taught us how the natural substance may have anti-tumor, anti-cancer and anti-inflammatory effects. Moreover, the primary cannabinoids contained in cannabis – CBD (cannabidiol) and THC (tetrahydrocannabinol) – leave the healthy cells intact, while they work on attacking the cancerous ones.

Aside from its growing use in cancer care, cannabis oil may also be used to treat insomnia, headache, muscle pain, glaucoma, anxiety and arthritis. A highly potent oil that is rich in the psychoactive compound THC may induce a “high”, whereas non-psychotropic CBD oil will not. Hemp grows with no more than 0.3% THC, making it ideal for creating CBD oil.

Vaporizing Cannabis Oil for Health Benefits

Ongoing praise for pot’s medicinal potential has helped the plant to gain more support from the general public; something that is having a direct effect on consumers and, consequently, the consumer demographic. A significant chunk of this expanding demographic includes “vapers” – the modern definition for someone who inhales CBD or THC-rich vapor using a vaporizer device.

Vaporizer devices ensure fast effects and better bioavailability of cannabinoids, with a recent study by California NORML demonstrating how these handheld gadgets can convert 46% of the available THC contained in dry plant matter into vapor. Compare this to the 25% THC that is delivered with a typical cannabis-tobacco cigarette, A.K.A. a “joint”, and it is clear why vaping is so popular among consumers.

Once inhaled, the vapor is delivered to the lungs, where cannabinoids are absorbed through the alveoli before entering the bloodstream.Cannabis oil can also be infused into a plethora of other products, therefore a small scale business will not be limited to the cannabis-vaping demographic.

Steps for small-scale cannabis oil production:

After obtaining incorporation, business licenses and EIN/TIN for your new cannabis oil business, (as well as having brushed up on your science about the plant), take the following steps:

1. 1. Understanding and Complying with Local Laws/Regulations– Exceeding the 0.3% THC threshold is a federal offence, since cannabis products containing more than this amount are still illegal under federal law. Sidestep potential pitfalls by using industrial hemp to produce hemp-extracted CBD products, rather than cannabis. Making THC-rich oil? Double-check the local laws and regulations in your specific jurisdiction prior to doing so. Each state’s set laws may differ, but they will be inclusive of transparent packaging and dosing regulations.
   2. Seek out the best suppliers – Next, it’s time to find a supply of hemp that can be used make federally legal CBD oil. Distributors and resellers ought to find a reputable wholesaler of hemp plants or alternatively, cannabis oils, (should you be thinking about avoiding the actual extraction process.) Standard practices, the equipment and raw materials used by a hemp cultivator must be in accordance with state regulations. Remember to obtain a certificate of analysis (COA) report, which will validate the exact purities, cannabinoid percentages, etc.
   3. Extract Cannabinoids from the Plant Matter –If you’re not buying cannabis oil in bulk from a supplier, you’ll have the option to make it yourself. A low-cost (albeit time-consuming) way to do this is by soaking the plant’s buds in a solvent or alcohol, before straining and collecting the remaining extract with a tool. Commonly used solvents include acetone, ethanol (alcohol) and isopropyl (IPO).
   4. Upgrading to a Hi-Flow Extraction System (CO2) – As your cannabis oil business starts to grow, larger quantities of extract can be churned out using a state-of-the-art system, like a Hi-Flow Extraction System (CO2). These high-tech machines are maintenance-free and utilize minimal energy with silent operation, making them ideal for a business that is rapidly expanding. CO2 extractionuses pressurized carbon dioxide to draw phytochemicals from the plant matter.

2018 Farm Bill Presents Opportunity to Make Cannabis Oil

An important bill was passed by the Senate on the 11th day of December, last year. On the following day, the House also passed the bill, which was titled the “Agriculture Improvement Act of 2018,” better known as the “2018 Hemp Farm Bill”.

Numerous expenditures that were included in the Agricultural Act of 2014were reauthorized under the passing of the bill. The amended bill was valued at $867 billion and was frontedby Senate Majority Leader Mitch McConnell. Its significance for the hemp-derived cannabis oil industry is huge, since it means that the term “marihuana” (included in the 1972 Controlled Substances Act) no longer includes hemp.

Quite rightly so, too. Hemp contains mere traces of THC and therefore will not produce psychoactive effects. As an increasing number of farmers gain permission to cultivate hemp across the U.S., more “cannapreneurs” will be capable of building a cannabis oil business in the foreseeable future.

The post How Cannabis Businesses Can Expand into Cannabis Oil appeared first on CannabisFN.

It has taken a few years for cannabis reform to begin to enter Asia. However, momentum is clearly picking up.

In the middle of December 2018, New Zealand announced its plans to legalize recreational use in 2020 during the country’s general election. As such, the country may well become the third country in the world (after Uruguay and Canada) to fully legalize the drug (although Luxembourg might yet pip the Ozzies to the post).

The news is also clearly already having a domino effect regionally and was not the only intriguing canna news out of Asia in December. South Korea moved to legalize medical use literally days before New Zealand’s announcement, although this will probably be an import led market in its early days. It is also not expected that the market here will liberalize dramatically. In fact, as of October, the government even issued warnings to its citizens about consuming cannabis on visits abroad (most notably Canada). South Korea’s decision was clearly influenced in turn by the stated intent of Thailand earlier in the year to also move forward on medical reform. And on Christmas Day, in fact, the Thai government finally voted to legalize medical production and even more intriguingly, export the same (along with Israel).

Malaysia is also expected to follow suit, with government ministers beginning to explore the idea of medical reform as of last fall.

The green tide is clearly turning if not rising, finally in Asia.

The big question that still remains? When will China move? The great, green slumbering giant has begun to allow farmers to produce hemp industrially again. No matter what its Asian neighbours do, this one country, with low labour costs and now in a trade war with the U.S., could easily redefine the global game, and in a big way, in the years to come.

The Significance of Asian Reform

Asia is widely heralded as the birthplace of medical cannabis. The history of the drug here stretches back millennia, and its use was documented and incorporated into medical texts. It is also thought that the Scythians, travelling bands of nomadic warriors, carried use and knowledge of the drug through Europe.

During the 19^thcentury, the drug was commoditized, like tea, by the British East India Company in both China and India. In the 20^thcentury, of course, communist anti-drug policies in China tended to follow those in the West, with one critical difference. Drug crimes in this part of the world became associated with even harsher punishments – including the death penalty.

Alone in Asian countries, at least for now, Thailand appears to be ready to step into the export market. The country was, of course, a leading exporter of illegal cannabis during the 1980’s. Now, it appears that the government, like many others around the world, wants to cash in on the multibillion global medical market now exploding in the rest of the world along with reducing an exploding prison population. That said, recreational users will still face harsh penalties.

This is also likely to be the course of reform in other places regionally, including China.

What Does This Mean For Foreign Companies And Investors?

Given the focus on medical use, and remaining draconian fines for recreational use if not “drug trafficking,” foreign entrepreneurs and investors should tread carefully. This is also likely, as a result, to be one of the most complicated places for foreign companies to obtain licenses for production if not ex-im permission.

Added to that, of course, is the likelihood of protectionist measures implemented along with reform, as is likely in Thailand, where the market will be highly protected to preserve both domestic ownership and the benefit to the economy of the same.

It is also highly likely that any foreign investment in such markets, as they liberalize, will be required to partner with local producers.

Regardless, it is clear as 2019 dawns that no part of the world is immune to cannabis reform. The Green Revolution is, five years after market start in Colorado, truly global.

The post What’s Happening with Cannabis Reform in Asia? appeared first on CannabisFN.

The following post was originally published by MAZAKALI.

2019 is poised to be a monumental year for the cannabis plant. The recent passage of the Farm Bill as well as sweeping changes across the most populated countries on earth are but two of the many reasons for this optimism. This comes off the heels of big change in 2018, when adult-use was implemented in the largest global consumer market (California) as well as the largest global capital market (Canada). We are well on our way to full federal legalization and continue to expect a nationwide resolution to the state-federal conflict by 2021.

In Cannabis 2018: Five Things To Watch, we anticipated moves towards banking and tax resolution, Canadian investment by big liquor and tobacco, a swing in the Midterm elections and volatility in California cannabis pricing. For 2019, we are pleased to see a legitimate pathway towards banking and tax resolution along with a move towards normalization in Canadian markets. Pricing continues to exhibit wide spreads, a trend we expect to continue and perhaps even intensify. Additionally, our hemp industry will receive a dual octane boost from CBD making its 2019 debut in drug and grocery stores as well as from the December 20th, 2018 passage of the Farm Bill. Lastly, a movement not to be missed includes one that affects nearly three billion humans.

The grass is greener where you water it
The government has waged a trillion-dollar war on unarmed plants for eight decades and we are pleased to report an impending plant victory. Five things to watch for in 2019:

Banking and 280(E) resolution

The STATES (Strengthening the Tenth Amendment Through Entrusting States) Act allows each state to set its own cannabis policy while requiring the Federal Government to defer to state legislation on the topic. When enacted, the impact on the cannabis industry will be enormously positive. With the threat of federal action eliminated, increased inflows of investor capital will impact asset values while fueling further growth and innovation. A provision redefining trafficking removes barriers to full banking services, while a provision redefining profit sources as lawful eliminates the application of IRS Code 280(E) (current & severe restriction on standard business deductions for cannabis businesses). Thus, the STATES Act resolves two of the biggest challenges in our industry: banking and taxes – a brilliant piece of legislation that also maintains the status quo for states that are not socially ready to embrace cannabis.

Hemp

President Trump signed the Farm Bill into law on December 20th, 2018. In doing so, he changed cannabis federal classification for the first time since 1970, permanently removed the federal ban on industrial hemp and paved the way to Make America Hemp Again. It is difficult to overstate the positive impact that full-scale industrial hemp production will have on the US economy. The hemp market may well exceed the cannabis market as regulation, information and transparency work to drive greater adoption. For farmers and hemp-related businesses, the opportunities are unprecedented. For investors, this translates to significant returns in an industry that now has a legal pathway to grow at a rapid pace. A $1 Billion industry today, hemp could reasonably exceed $50 Billion by 2025.

Canada

While Canadian capital markets remain the richest and deepest in the cannabis world, expect to see a normalization of perspective as addressable market realities emerge from the clouds of optimistic exuberance. The biggest Canadian companies have large multi-national presence on their capitalization tables, a trend that will perhaps accelerate as valuations continue their justifiable correction and as big food, pharma, liquor, tobacco and agriculture companies continue their justifiable cannabis march. Additional markets will emerge to help smooth the path towards cannabis capital optimization.

Market balance

While regional pricing inconsistencies exist in many agricultural products, few spreads are as wide as those currently seen in biomass, isolate and distillate. Oregon and Washington remain the cheapest states, while North Dakota and Virginia are amongst the most expensive. This imbalance is driven by the recent and steady trend of state-regulated surplus. Restrictive regulatory structures contrive a distribution system rather than allowing market economics to flourish and, along with disparate investment in parts of the supply chain, lead to supply imbalances. Oversupply is evidenced in Colorado, Washington and Oregon, while supply shortages have been rampant in Nevada and Massachusetts. Expect this trend to continue with California poised to become the next oversupply example. Conversely, expect U.S.-based industrial hemp biomass to fail to meet demand.

Asia

China produces half of the world’s cannabis and holds over half of the world’s cannabis patents. The predominance of these patents indicates the pace of evolution in pharmaceutical science and may offer valuable lessons along the evolutionary path of Western industry. As our acceptance of this plant grows, investors and entrepreneurs alike are well-served to watch this not so sleepy giant. As cannabis traverses the path to global trade, one of the biggest economic winners will be China.

Indian cannabis use has been widely documented and dates back to 2,200 BC, where it was used medicinally and as an offering to Lord Shiva. Cannabis was only banned in 1985 with the passage of the Narcotic Drugs and Psychotropic Substances Act and, with recent approval for legal cannabis cultivation accorded to IIM (Indian Institute of Management), the movement towards legalization is under way.

The Asian cannabis legalization movement was bolstered by the recent passage of medical laws in South Korea and Thailand. Every third human is governed by the laws of these four countries, and at over 2.8 Billion people represents the largest legal cannabis impact on the planet.

We remain optimistic around impending and positive change for the industry through 2019 and beyond. The cannabis sector has quickly emerged as an alternative asset class with low portfolio correlation and high demand inelasticity, and as such will continue to capture its rightful place in any well-diversified, impact-oriented investment portfolio.

The post Cannabis Trends to Watch in 2019 appeared first on CannabisFN.

Forget the hemp reform promised by the federal Farm Bill for a second, although that is a tall order. The bill sets national agricultural, nutritional, conservation and forestry policy for the country twice a decade. Allowing hemp to be grown legally, nationally, in every state for the first time since the Great Depression is certainly a forward victory long in the making.

However that is, from a cannabinoid perspective, just one small step. Concurrently there is also another federal initiative on the table now along with strategy to pass it that is actually far more momentous for cannabis should it actually move through the legislature as intended.

Senator Cory Gardner, a Republican Senator from Colorado, plans to speed up critical reforms in cannabis banking this week and further do so in a way designed to speed passage. Finally.

The cannabis industry is highly supportive. Recreational reform may have come to many U.S. states since 2014. One thing however that has not budged is banking services. Despite repeated attempts to reform the same at the federal level in Congress.

That is the simple news. As there is nothing “simple “about Congressional procedure however, the reality as well as the strategy is a little more complicated than that.

The Details

In Senate speak, here is the high pitch. Gardner plans to attach an already drafted piece of legislation called the STATES Act (Strengthening the Tenth Amendment Through Entrusting States) that has stalled in the Senate to another piece of legislation called the “First Step Act” (S.3649) which is on a more rapid trajectory to passage. This is a common legislative move, frequently also seen at the end of biannual legislative sessions.

The STATES Act, introduced by Gardner and Senator Elizabeth Warren (D-Mass) is what all the excitement is about from the cannabis side. The legislation, finally, fixes both the tax and banking problems that have plagued the industry for the last four years while leaving the rescheduling issue alone. Namely, it allows cannabis businesses to legally open bank accounts in states where either medical or recreational reform has occurred. It would also exempt retailers from federal prosecution while still keeping cannabis a Schedule I drug.

The reason that everyone is getting so excited about this strategy however, is that Gardner intends not to push for an up or down vote on this legislation, but rather include it in a prison reform bill that both the Republican Senate leadership and President Donald Trump want to prioritize.

The First Step Act is a sweeping criminal justice reform bill that allows non-violent federal prisoners to be released from prison more quickly and earn the right to enter society again through a defined set of steps intended to reduce recidivism.

It will also, at least according to the Congressional Budget Office (CBO) reduce the federal prisoner population over the next decade by about 53,000 “person years” – or the equivalent of freeing 53,000 inmates in a single year. As a result, at least according to the CBO, it will also increase direct federal government spending on programs such people would then qualify for (such as Medicaid and Disability) by $346 million through 2028.

Presumably the revenue gathered by both the states and federal government via efficient controlling and levy of both federal and state taxes will more than pay for the same.

Guaranteed Passage?

There is still no guarantee that this strategy will work. Why not? A similar version has to pass in the House and there is no guarantee that it will. If it does not, once both Senate and House versions of the First Step Act pass, the differences will have to be rectified in conference committee. And that also means that the language and intent of the STATES Act could be stripped from the final prison bill. Or even watered down.

That said, it is also clear that creative cannabis reform has finally hit the federal discussion on Capitol Hill, even if imperfect in multiple ways. And even if this creative attempt goes down in flames, there is no reason to believe that such efforts will go away, particularly spurred on in a democratically controlled House starting next year.

The post Cory Gardner Aims to Pass Cannabis Reforms in Senate appeared first on CannabisFN.

Two cocktails with marijuana against black background

Alcohol is a known carcinogen that has been directly linked to many chronic health conditions, such as cancer, diabetes, and liver disease. While cannabis has been shown to be much less harmful, and a potential alcohol-substitute, recreational consumption was only recently legalized with the passage of the Cannabis Act in October 2018, and it still faces much heavier-handed regulation than the alcohol industry.

A new white paper released by Hill Street Beverage Co. makes the case for parity in alcohol and cannabis beverage marketing, promotion, and distribution in Canada. In fact, the paper argues that allowing cannabis-infused and alcoholic products to co-exist on retail shelves together could produce a $4 billion per year cost savings. These savings would come from lower health care, criminal justice, and lost productivity costs.

Alcohol’s Higher Costs

Alcoholic beverages cost the country upwards of $14.5 billion in health care, criminal justice, and lost productivity, according to Hill Street’s new whitepaper, which is much more than the estimated $1 billion cost associated with cannabis. Alcohol is a known carcinogen that has been linked to many chronic health conditions, such as cancer, diabetes, and liver disease, while cannabis has far fewer side effects and perhaps even some benefits.

In fact, alcohol accounted for about 40 percent of the $38 billion abuse burden to Canadians, while almost 70 percent of the costs came from alcohol and tobacco. Cannabis accounted for just $2.8 billion in costs, but most of those costs came from criminal justice rather than health care sources. The legalization of cannabis could dramatically lower these cost to just $1 billion per year, which is the figure cited in the white paper’s research.

Cannabis as an Alternative

There’s little doubt that cannabis is a safer and less impactful alternative to alcohol. By repackaging cannabis into more familiar beverage formats, it could replace a meaningful amount of alcohol consumption and improve public health. The key is having the products placed in the same location as alcohol products to ensure that consumers have the option when they’re making their purchasing decisions.

While cannabis edibles are a problem with youth, adult-format beverages like beer, wine, and cocktails have already established an understanding that substances are available for purchasing at existing and reputable licensed outlets with strict guidelines. This also extends to staff members that are well-educated that alcoholic beverages aren’t intended for sale to persons under the legal drinking age.

Crunching the Numbers

Hill Street’s white paper argues that roughly one-third of the Canadian population may opt for cannabis-infused beverages rather than alcoholic beverages, based on usage studies from Deloitte and other sources. This means that demand could be roughly 65.5 million standard cases of 24 bottles each year. By applying the cost reductions, the company estimates that these converts could reduce societal harm and cost by $4 billion per year.

In addition to the lower costs, the company estimates that there could be 25,700 fewer hospital visits from overconsumption of alcohol and a seven percent reduction in violent crimes that are fueled by alcohol. The key is ensuring that consumers have an easy-to-access and easy-to-understand alternative on the shelves that they can purchase and consume.

The post The Case for Parity Between Alcohol & Cannabis appeared first on CannabisFN.

Cannabis stocks soared higher after a solid turnaround during the mid-term elections and the sudden departure of Jeff Sessions as Attorney General. The Horizons Marijuana ETF (TSE: HMMJ) rose more than 11 percent since November 5 and many U.S.-focused cannabis stocks moved even higher following the news.

Voters Relax Cannabis Laws

Michigan voters approved a ballot measure to legalize the recreational use of cannabis and two other states—Utah and Missouri—endorsed medical cannabis laws. While North Dakota legalized medical cannabis back in 2016, voters opted not to legalize adult-use cannabis during the latest midterm.

With these new additions, 33 states have legalized some form of cannabis and adult-use cannabis laws are in effect across ten states and the District of Columbia. The catch is that cannabis possession, selling, or use remains illegal under federal laws since no such measures have passed at the highest levels.

Michigan’s legalization of adult-use cannabis represents the most significant development since it’s the first midwest state to approval of the drug. In the past, the midwest has been the most conservative when it comes to drug laws and the hope is that Michigan helps pave the way toward a better understanding.

Sessions is Pushed Out

Attorney General Jeff Sessions resigned following the midterm elections. While the move is concerning to many Democrats concerned about the Mueller investigation, it’s a positive development for the cannabis industry given Sessions’ strong opposition to cannabis legalization efforts.

Earlier this year, Sessions nixed Obama-era rules designed to let states determine the legality of cannabis, which caused widespread confusion throughout the industry. He also instructed the Department of Justice to aggressively prosecute drug offenses, saying that drugs are a gateway to violence.

President Trump appointed Sessions’ Chief of Staff, Matthew Whitaker, as acting replacement. However, it’s unclear how long he will be in the role and who the replacement will be. Trump has been an on again, off again advocate of cannabis, but the true legal future will be determined by the next appointee.

Looking Ahead

The midterm elections have been a positive development for the cannabis industry, but there’s still uncertainty on a federal level. Cannabis enthusiasts, executives, and investors will be closely watching the Attorney General’s office and emerging regulations to see where these trends are headed.

The post Cannabis Rising: 3 States Legalize Cannabis & Sessions is Out appeared first on CannabisFN.

The cannabis industry is projected to reach $75 billion by 2030, according to Cowen & Co., driven by the legalization of medical and recreational cannabis across a growing number of states. With federal legalization a near-term possibility, the market could soon be dominated by so-called Big Cannabis—likely tobacco companies moving into the space and growing commoditized products leveraging their existing infrastructure.

Some cannabis cultivators aim to protect themselves from these changes by growing high-quality, niche strains. In California, the Mendocino Appellations Project, or MAP, aims to create a way for Mendocino County, Humboldt, and other Emerald Triangle growers to protect their intellectual property. The approach mirrors the strategy that the Champagne appellation has taken to protect French Champagne from copycats.

The state senate passed a bill last year requiring the Department of Food and Agriculture to come up with a process where licensed cultivators could establish appellations of standards, practices, and varietals applicable to cannabis grown in a certain geographic area by 2021. In essence, this paves the way for cannabis to be labeled similar to the wine industry rather than being sold as a commodity—like a mass market beer.

The science behind craft cannabis is still catching up after years of prohibition, but there are early signs that the same strain of cannabis could have different attributes depending on the climate and other growing conditions. With California’s diverse micro-climates, this presents a unique opportunity for craft cannabis growers that desire wine-like margins rather than razor-thin mass-market margins that Big Cannabis will likely seek.

Cannabis companies (and investors) looking to navigate the increasingly complex market in California may want to consider attending the NCIA’s California Cannabis Business Conference 2018 in Anaheim, CA between October 22 and 23, 2018. The conference features more than 100 thought leaders and policy experts, 3,000 cannabis business leaders, and 60,000 sq. ft. of expo floor where exhibitors will inform and educate.

At the conference, cannabis executives can learn everything from packaging best practices to craft cannabis to environmentally-sustainable production.

The NCIA is also putting on the NCIA’s 6th Annual Cannabis Business Summit® & Expo 2019 in San Jose, CA on July 22 24, 2018.

The post California’s ‘Cannabis Appellation’ Plans Aim to Set It Apart appeared first on CannabisFN.

It has long been known medical cannabis helps with pain management. From acute sharp short term pain, to chronic, deeper more long lasting pain, multiple studies have shown cannabis can replace opioids for pain management and help suffering patients live more normal lives.

However, as we know, when it comes to cannabis in the United States, it’s never as straight forward as just going to the doctor and picking up a prescription.

Well, that is slowly changing.

As cannabis becomes more main stream in the US, medical cannabis is replacing opioids for pain management. There are thirty states with medical cannabis programs, more than a handful of states with high CBD cannabis laws and eight states with adult use cannabis, opening Cannabinoid medication access to a record number of Americans.

Nowhere else is cannabis replacing opioids for pain management faster than in Florida.

After passing a full plant medical cannabis law in 2016, Florida pain patients have started choosing cannabis over more addictive deadly opiate medications, says Kim Rivers CEO of True Leaf, Florida’s largest medical cannabis provider. True Leaf operates seventeen dispensaries across the state of Florida, and serves 80,000 registered patients. No one else has their finger on the pulse of Florida medical cannabis more than Kim Rivers.

She tells CNBC in a recent interview, “There have been a number of recent studies that have come out that have shown that in states where medical cannabis programs are robust, the number of opiate prescriptions reduces dramatically. We also know from firsthand true stories, which we have on our website every Tuesday, that a number of our patients are transitioning from opioids to medical cannabis very effectively, and it’s a much safer and effective alternative.”

Kim Rivers goes on to say True Leaf will lobby the Florida legislature to make medical cannabis an easier choice for patients with pain management issues.

The study Kim Rivers speaks of is research published by Jama Internal Medicine, which looked at data from Medicare.

The researchers noticed a fourteen percent reduction in opioid prescriptions in states with easy access to medical cannabis. This, they estimate, adds up to about 3.7 million less doses of opiates a day.

That is a lot of pills!

Another study looked at data from Medicaid and found similar results. Other studies have shown encouraging results with a twenty-five percent decrease in opiate overdoses in states with easy access to medical cannabis.

In addition, baby boomers and seniors are using medical cannabis as replacements for opioids for pain management in record numbers. Seniors and boomers are learning that conditions like osteo-arthritis and other painful geriatric diseases are no match for Cannabinoid medicines, despite the higher cost.

Cannabinoids are the unique compounds found in the cannabis plant. The two most common Cannabinoids cannabidiol (CBD) and Tetrahydrocannabinol (THC) have been shown in multiple studies to be powerful pain relieving compounds. The two compounds work much in the same way by dampening pain receptors throughout the body and reducing inflammation. By attaching to CB1 and CB2 receptors, Cannabinoids can treat pain in different parts of the body.

These receptors make up the endocannabinoid system. The endocannabinoid system is a group of cells that help bring balance to the body. Both compounds were discovered in the 1960’s in Israel, but research into their therapeutic properties has been sparse in the US due to cannabis’ classification as a Schedule One Narcotic, a drug with no known medical use.

For decades patients suffering from pain who wanted to use cannabis had to risk arrest for cannabis possession, or settle for more addictive opioid medications. Now with laws loosening, more and more people are finding medical cannabis can replace opioids for pain management.

The post How Cannabis is Already Replacing Opioids for Pain Management appeared first on CannabisFN.

Cannabis has now entered the highest levels of the European Union’s political debate. So much so that production (albeit of the illicit kind) in one country, Albania, is now being used by some members of the EU in Brussels to refuse the country’s bid to join the economic union. Most notably the loudest objections are coming from France, which has yet to move on cannabis reform in general.

According to the Financial Times in 2017, at least, Albania produces the largest amount of illegal cannabis in any country on the continent. This in turn, serves as financing for organized crime that, according to authorities, seeps into Europe.

Production In The Ring States

Is this hypocritical? Does it smell suspiciously like a debate about both medical use and broader recreational reform on a European level that is frequently going off the rails these days for no reason?

Yes, to both questions. Especially given the current state of cannabis production gearing up all over the Mediterranean, from Spain in the west, to Greece and Malta further east. Not to mention what is going on in Macedonia and other border EU countries.

Cheaper labour markets ringing the EU are beginning to wake up to the entire cannabis economy question.

And that is the real issue, beyond the Albanian debate itself.

The EU, at the Brussels level is not copacetic about regional cannabis reform and is well aware of what is going on in an emerging market. This is showing up in various faces all over the continent, from the Spanish police removing CBD products from shelves to the drama at the Deutsche Börse about clearing public cannabis stocks.

And in the meantime, member states, particularly those who have not moved on national reform at all, are using cannabis as a convenient political lever. See Albania.

What this situation really demonstrates is how political the cannabis debate really is right now in Europe. And how indicative of the ducking and dodging if not the size and number of political hoops those in the market at this point, have had to jump through so far.

And how threatened, finally, the current status quo on cannabis reform really is.

The Impact On EU Reform

Regardless of both the immediate and long term impact on the Albanian situation, the forces of reform are afoot now at a regional not just a country level, in Europe. Expect the situation for the next several years to be fluid at a regional level while different sovereign countries adjust to a world of both still relatively open borders and legalizing cannabis.

This is exacerbated right now as the larger, legal Canadian LPs in particular, begin cultivation operations all over the continent and are setting up sophisticated distribution networks which span multiple countries (albeit with Germany still mostly as their largest destination point.)

It is also not going unnoticed that relatively poorer states with lower labour costs, i.e. on the fringes of EU economic activity, are eyeing the cannabis bandwagon with something akin to economic salvation. See the situation in Greece.

Add the additional political tensions of Brexit (where a still supposedly departing UK has now rescheduled the drug to a Schedule II, starting this month), and the topic of the great green plant is clearly causing headaches in Brussels that are not going to abate until cannabis legalization, finally, of some kind, is implemented at a regional economic bloc level.

In the meantime, the poorer countries of the region, hoping to play the cannabis card, as well as the companies now looking to exploit such opportunities, are going to have to engage in a continual political and lobbying game to make sure their newly found rights do not go up in smoke along with newly hatched cultivation and export dreams.

The post Will Albania’s EU Membership Be Scuttled by Domestic Cannabis Production? appeared first on CannabisFN.

CFN Media Group (“CFN Media”, “CannabisFN”), the leading agency and financial media network dedicated to the worldwide cannabis industry, today announced the enhanced launch of its Los Angeles-based studio for filming exclusive executive interviews and its CFN Weekly Show. The company soft launched the studio earlier this year, filming exclusive client interviews and early episodes of the CFN Weekly Show.

The new studio features green screen technology and a configurable set, which makes it easy for clients to choose a look-and-feel that best suits their vision and brand.

“California is becoming the epicenter of the industry and home to the best creative minds in the world,” said CFN Media President Frank Lane. “Our LA studio allows us to produce stunning media and programming that powerfully conveys our clients’ messaging to engaged audiences around the world.”

The exclusive interviews filmed at the new studio are part of CFN Media’s client outreach programs for private, pre-public and public cannabis companies. The digital media programs connect companies directly with their target audiences, including individual and institutional investors and national media.

The following videos were produced in the new studio:

For more information about becoming a client, learn more about our programs or contact us.

About CFN Media Group

CFN Media’s Cannabis Financial Network (CannabisFN.com) is the destination for savvy investors and business people profiting from the worldwide cannabis industry. Viewers will see breaking news, exclusive coverage and original programming involving the people, companies and investments shaping the space.

For Cannabis Businesses & Companies

CFN Media is a leading agency and digital financial media network dedicated to the cannabis industry. We help private, pre-public and public cannabis companies in the US and Canada attract capital, investors and media attention.

Our powerful media and distribution platform conveys a company’s message and value proposition directly to accredited and retail investors and national media active in the North American cannabis markets.

Since 2013, CFN Media has enabled the world’s preeminent cannabis companies to thrive in the capital and public markets.

The post CFN Media Enhances its LA Studio for Exclusive Interviews and CFN Weekly Show appeared first on CannabisFN.

The fourth annual New West Summit will take place between October 11 and 13 in Oakland at the Marriott City Center. The conference brings together the best and brightest international cannabis entrepreneurs, thought leaders, investors, and innovators, with over 100 exhibitors, 50 panels, 150 speakers, an investment symposium, and a career fair. Organizers expect more than 4,000 cannabis industry personnel to attend.

“This is a B2B technology, science and investment conference that happens to be about cannabis,” said New West Summit Founder and Producer Jim McAlpine. “To succeed in this industry, you need to have your finger on the pulse of tech advancements and media trends.”

Featured guest speakers include:

• Tim Seymour of CNBC
• Ricki Lake of Weed the People
• Krishna Andavolu of Viceland
• Dave Morin of Slow Ventures
• George Zimmer of Men’s Wearhouse
• Berner
• Former NFL Player Kyle Turley
• Eric Rachmany of Rebelution
• Professional Snowboarder Travis Rice
• UFC Champion Frank Shamrock
• Professional Skateboarder Bob Burnquist

The conference’s unique career fair will help connect prospective employees with more than 30 companies looking to hire for all types of jobs, from entry level budtending to behind-the-scenes operations management and executive positions.

See the event schedule for a complete list of panel topics and register now to secure the best conference prices!

The post New West Summit Will Feature Celebrity Guest Speakers & Cannabis Career Fair appeared first on CannabisFN.

Together (TASE:TGDR), one of two cannabis companies on the Israeli stock exchange, has just made an aggressive move into the German medical cannabis market. According to available information, Together has signed a deal to deliver up to €50 million (approximately 12.5 tons of produce)to a so far unnamed German medical cannabis distribution company. The German company has a distribution network of 100 pharmacies.

Together has also signed a Memorandum of Understanding to acquire 50.1% of the same with a target of closing the deal by October.

The other details on the German company remain sparse. It is an entity that is in the final stages of receiving an import license and already holds an R&D license.

Who Is Together?

Together Cannabis is not a well-known company outside of Israel, but if they keep up their current pace, that appears to be about to change. Earlier in the year, the company announced plans to create a grow area of 10 hectares(25 acres) in an unnamed country outside of Israel earlier this year. This year, Together also sold five tons of cannabisoil to a Canadian company in a deal worth at least $300 million.

The All Important Price Per Gram

The company is coming into a highly price sensitive market in Europe. According to statements, the Canadian deal will see wholesale prices of about $3 per gram. In Europe, they intend to sell product for about 10-12 euros a gram, to pharmacies direct.

This places them in an interesting position with regards to the new unofficial “reference price” to beat in the German tender bid. That price, according to bid documents has to be (well) under 7 euros a gram (wholesale) and to the government.

A Contender For The German Bid?

The last time around, the news about the German bid hopefuls centered on the Canadians. This time that already is not the case. It is also clear that Together would be well-placed to apply, with a footprint and profile that puts it well within the parameters of the German bid.

With money, deals and international distribution lining up, Together has indeed announced it’s global if not European presence and intentions with authority.

Will Jews Repatriate Germany Via The Cannabis Industry?

There are certainly more Jews in Germany these days, coming here for business reasons, than at any other time since WWII. Mainstream German supermarkets are even starting to stock whole specialty sections with kosher food.

Israeli interest in particular in the German cannabis market has been high for at least several years, although international complications (see the continued ban worked out between Donald Trump and Benjamin Netanyahu) and local goofs (see the issuance of the second tender) have slowed this down on a number of occasions.

It appears, however, that this interest is now ramping up to the next level.

It is widely rumoured at this point that the export ban in Israel is going to be lifted within the next year. Some have even suggested that the export ban could be abolished by the time the German government bid deadline is due in October, although that is very unlikely.

And in the meantime, firms like Together are establishing both cultivation and distribution networks on their own, outside of Israel.

This is not the first of its kind deal (or series of them) but it certainly is the largest of its kind.

What Is The Biggest Impact In The Short Term?

Israeli firms like Together are likely to impact the European, if not Canadian market in several ways.

The first is that they are absolutely driven by mind-set, beyond the market, to provide cheap, high-grade cannabis globally. This is in direct contrast with trends coming out of the Canadian market, where producers are starting to make noises about actually raising prices (presumably to meet unstoppable demand).

The second is that the pace of European cannabis cultivation is likely to increase dramatically. Israeli firms have been establishing cultivation sites in places like Eastern Europe and Greece for the better part of the last 18 months.

Several years from now, in other words, firms like Together could well shift the balance if not the bulk of where medical cannabis comes from – even in Europe – and certainly beyond it.

The post Israeli Together Cannabis Enters The German Market appeared first on CannabisFN.

CalCannabis is a division of the California Department of Food and Agriculture that provides cultivation licensing and regulation to commercial California cannabis cultivators. CalCannabis also oversees California’s track-and-trace system, tracking all commercial cannabis and cannabis products from seed to sale. The division has three branches: the Bureau of Cannabis Control, CalCannabis Cultivation Licensing, and Manufactured Cannabis Safety.

CalCannabis Branches

Each of the aforementioned branches manages different cultivation scenarios and companies. The Bureau of Cannabis Control is housed within the Department of Consumer affairs and licenses testing labs, distributors, retailers, and microbusinesses. The CalCannabis Cultivation Licensing branch is housed within the Department of Food and Agriculture and licenses cannabis cultivators while overseeing the track-and-trace system. Finally, the Manufactured Cannabis Safety branch is housed within the Department of Public Health and licenses manufacturers of cannabis products such as edibles and topicals.

Track-and-Trace System

The California Cannabis Track-and-Trace (CCTT) system records cannabis inventory and movement through the entire commercial supply chain—from seed to sale—throughout California. CCTT contracted technology company, Franwell, Inc., to provide the METRC software program for tracking, which is the same software used by Colorado, Oregon, Alaska, and Nevada for cannabis programs.

All annual California cannabis licenses must use the CCT-METRC system to record, track, and update information on their cannabis activities and inventories. Temporary cannabis licenses are not required to use the system and do not receive access to it. Instead, temporary licenses must use paper sales invoices or shipping manifests to document all sales and transfers of cannabis products between temporary licenses, as required by California’s emergency regulations.

Medicinal and Adult-Use Cannabis Regulation and Safety Act

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) provides the framework for commercial medicinal and recreational cannabis regulations in California. It should be noted, however, that California is yet to confirm permanent cultivation regulations and will continue to operate under emergency regulations until the Department of Food and Agriculture’s (DFA) proposed permanent regulations are final. Still, the proposed regulations provide insight into the general rules and regulations cultivators will likely need to adhere to.

Under MAUCRSA, “cultivation” refers to the process of planting, growing, harvesting, drying, curing, grading, or trimming cannabis. “Processing” refers to the activities associated with drying, curing, grading, trimming, storing, packaging, and labeling non-manufactured cannabis products. Non-manufactured products are defined in the regulations as dried flower, shake, leaf, and pre-rolls intended for sale to medical cannabis patients.

Proposed regulations will see the DFA offering 14 cultivation licenses depending on the type of cultivator, from Specialty Cottage Outdoor licenses for $65, which covers outdoor cultivation sites with up to 25 mature plants, to Medium Indoor licenses for $4,260, which covers indoor sites between 10,000-22,000 square feet of canopy. Note that prices only include the initial application fee; the annual license fees, which are required for all licenses, are significantly higher and must be paid each year.

14 Available California Cultivation Licenses

1. Specialty Cottage Outdoor ($65) – an outdoor cultivation site with up to 25 mature plants;
2. Specialty Cottage Indoor ($100) – an indoor cultivation site with 500 square feet or less of total canopy;
3. Specialty Cottage Mixed-Light ($285) – a mixed-light cultivation site with 2,500 square feet or less of total canopy;
4. Specialty Outdoor ($130) – an outdoor cultivation site with less than or equal to 5,000 square feet of total canopy, or up to 50 mature plants on noncontiguous plots;
5. Specialty Indoor ($1,070) – an indoor cultivation site between 501 and 5,000 square feet of total canopy;
6. Specialty Mixed-Light ($555) – an indoor cultivation site between 2,501 and 5,000 square feet of total canopy;
7. Small Outdoor ($265) – an outdoor cultivation site between 5,001 and 10,000 square feet of total canopy;
8. Small Indoor ($1,935) – an indoor cultivation site between 5,001 and 10,000 square feet of total canopy;
9. Small Mixed-Light ($1,105) – a mixed-light cultivation site between 5,001 and 10,000 square feet of total canopy;
10. Medium Outdoor ($765) – an outdoor cultivation site between 10,001 square feet and one acre of total canopy;
11. Medium Indoor ($4,260) – an indoor cultivation site between 10,001 and 22,000 square feet of total canopy;
12. Medium Mixed-Light ($2,435) – a mixed-light cultivation site between 10,001 and 22,000 square feet of total canopy;
13. Nursery ($60) – cultivation of cannabis solely as a nursery;
14. Processor ($310) – a cultivation site that conducts only trimming, drying, curing, grading or packaging of cannabis and nonmanufactured cannabis products.

Overview of Primary Cultivation Requirements

Similarly to manufacturing, retail, distribution, and transportation licenses, applicants for a cultivation license must submit background information on all owners. Each owner must undergo a criminal background check; however, a criminal history does not prevent owners from receiving licensure unless their history is substantially related to cannabis cultivation and sale.

Cultivation sites must not be closer than a 600-foot radius from a school for approval. Applicants must also demonstrate they have a valid seller’s permit or are in the process of applying for one, and must have a surety bond of at least $5,000 payable to the DFA.

Furthermore, all applicants must indicate that they’re operating in compliance with local laws and that they have already received local permits and approvals. Because local regulations are variable and evolving, cultivators are encouraged to secure all necessary local permits and documentation before applying for licensure. Applicants must also have a permit from the Regional Water Quality Control Board or State Water Resources Control Board.

The DFA is not expected to restrict the number of cultivation licenses a person can hold provided the total licensed canopy does not exceed four acres.

Note that the aforementioned requirements are not the only regulations cultivators must adhere to; potential cultivators can review all required processes and documentation on the CalCannabis website.

The post CalCannabis & California’s Cultivation Rules appeared first on CannabisFN.

The Ontario Cannabis Store, the province’s sole legal online retailer for recreational cannabis, has entered into supply agreements with 26 licensed producers to ensure that a safe, diverse and high-quality supply of cannabis is ready and available upon legalization this fall. Starting on October 17, consumers 19 and older will be able to purchase cannabis via an online retail platform provided by the Ontario Cannabis Store.  The OCS online channel will include a verification system that will ensure safe at-home delivery for cannabis products.

“These agreements are a significant milestone that signals our readiness for the legalization of cannabis in Ontario,” says Patrick Ford, President and Chief Operating Officer of the Ontario Cannabis Store. “These agreements will allow us to safely and securely provide a broad variety of cannabis products to adult customers when online sales begin.”

Supply agreements with authorized Health Canada producers were achieved through a competitive process, resulting in a range of cannabis products and size formats among the categories of dried flower, cannabis oil and cannabis seeds. In the coming months, the OCS will continue to hold competitive product calls to expand its selection of available cannabis products and to be responsive to the preferences of Ontario customers. The OCS is also working to finalize supply agreements with cannabis accessory suppliers to ensure a diverse selection of accessories is also available for customers.

The OCS is focused on providing safe and responsible access to recreational cannabis through its online retail channel when it becomes legal on October 17, and establishing a wholesale distribution network to supply cannabis to legal private stores in Ontario once legislative requirements are put in place.

The OCS has entered into initial supply agreements with the following companies:

7ACRES/The Supreme Cannabis Company

AgMedica Bioscience Inc.

Aphria Inc.

Aurora Cannabis Enterprises Inc.

Beleave Kannabis Corp.

Broken Coast Cannabis Ltd.

CannTrust Inc.

Canopy Growth Corporation

Emblem Cannabis Corporation

HEXO Operations Inc.

Hiku Brands Company Ltd.

Maricann Inc.

MedReleaf Corp.

Natural MedCo Ltd.

Northern Green Canada Inc.

Organigram Inc.

Peace Naturals Project Inc.

Radicle Medical Marijuana Inc.

RedeCan Pharm

Solace Health Inc.

Starseed Medicinal Inc.

THC BioMed Ltd.

The Flowr Group Okanagan Inc.

Tilray Canada Ltd.

Up Cannabis Inc.

VIVO Cannabis Inc.

The post Ontario’s OSC Enters into Supply Agreements with LPs appeared first on CannabisFN.

The Nova Scotia Liquor Corporation (NSLC) placed its first purchase orders this week for recreational cannabis in preparation for legalization October 17, 2018. The NSLC has placed orders with 14 Canadian cannabis vendors, including two from the Atlantic region, and one Cannabis Accessory vendor.

“We have done our homework and believe the 78 strains we have ordered will provide customers with a varied product assortment,” said Bret Mitchell, NSLC President & CEO. “We have carefully selected the strains and will adjust our inventory based on customer preference.”

The first purchase orders are intended to secure 3.75 million grams. The NSLC anticipates it will order in the range of 15 million grams in the first year.

The strains and amounts have been selected based on a number of criteria including relevant sales data from the recreational and medical cannabis markets in Canada and the United States, product availability and the suppliers’ ability to provide us with a continuous supply.

With these first purchase orders, the NSLC will carry 282 cannabis products and 21 accessories. Recreational cannabis for recreational use will come in five formats: flower, seeds, pre-rolls, oil and gel caps.

“I’m extremely proud of our employees for their diligence in bringing this new product category to market in a responsible way. Our focus has always been, and will remain, on the responsible retailing of this new product category,” Mitchell said.

The NSLC has leveraged its corporate social responsibility experience and used industry best practices to ensure the product is sold responsibly and according to federal and provincial legislation.

It has launched a customer education program called What to Expect to prepare and inform customers on the cannabis shopping experience. The program explains age restrictions in the cannabis stores including that nobody under the age of 19 is permitted into the section. It also prepares customers for the fact it takes more time to make cannabis purchases than beverage alcohol purchases and that lineups may occur.

The NSLC has also developed a corporate social responsibility program called Need to Know which focuses on the responsible consumption and safe storage of recreational cannabis. It informs customers they must be 19 or older to purchase recreational cannabis, that cannabis affects everyone differently so start with low THC percentages and slowly learn how you react, to consume alcohol and cannabis separately and to keep cannabis locked and out of reach and sight of minors. Finally, the program reminds Nova Scotians to never drive after consumption of beverage alcohol or cannabis and to plan ahead to get home safely.

Because the corporation did not sign Memorandums of Understanding with vendors, it has flexibility to adjust the products it carries based on customer preference. Nova Scotia products will be added as soon as local producers have licenses from Health Canada to both produce and sell recreational cannabis.

About the NSLC

For over eighty years, the NSLC has been managing the safe and responsible sale of beverage alcohol in Nova Scotia, returning 100% of its profits to government to help fund key public services. As a true partner in our communities, the NSLC conducts its business with integrity and respect for the environment, while supporting the sale of more than $200 million in Nova Scotia-produced products every year. For more information about the NSLC, please visit our website at myNSLC.com.

For more information please contact:

Beverley Ware, Communications Advisor

beverley.ware@myNSLC.com

O: (902) 450-5920

M: (902) 456-5040

The post Nova Scotia’s NSLC Places First Recreational Cannabis Order appeared first on CannabisFN.

It has been a long fought “Battle of Britain,” and it’s not over yet. However, change on the cannabis front has finally come to the UK. In late July, after an escalation by medical access campaignersand the press over the summer, the Home Secretary Sajid Javid announced that cannabis would officially now, be rescheduled in the UK and available, by prescription, as soon as October.

Make no mistake. This is a big deal, and at an ever bigger time. The implications of not only these events, but the obvious international string-pulling and “cannabis diplomacy” behind all, are also revealed in a fascinating way. Not to mention, the obvious win for medical cannabis, as another sovereign country throws in the towel on the war against the weed.

But what does it mean for the industry if not investors? If not other issues sure to impact the global investing world, far, far from cannabis?

GW Pharmaceuticals Monopoly On British Medical Cannabis Could Be Broken

Unlike any other place in the world, the hypocrisy of the powers that be on medical cannabis has been extreme in England. Other countries – if not cannabis companies – take note. One company, GW Pharmaceuticals, holds the exclusive license to produce cannabinoid medications in the UK and has since 1998. In turn, British Sugar, a grow operation in Norfolk, has the exclusive contract with GW Pharma to cultivate cannabis plants for medical purposes in the UK.

For everyone else, growing is still criminalized. So is possession.

Cannabis as medicine is also widely unavailable – even in a country with alarming cancer rates. In fact, in some reports, it was suggested that the only part of the country where “pharmacized” cannabis is Wales. As in the funny half-moon bump of geography sticking out into the Atlantic just above the “Cornish leg.”. Not to mention the place where the current Queen’s son is prince.

This year as two appalling child epilepsy cases pushed the legalization discussion, finally, into Parliament and beyond (much as families in Israel also forced the Israeli government to widen access in 2014), and the UK emerged as the largest exporter of cannabis globally (even ahead of Canada), the other shoe finally dropped in the press. The “drugs secretary” (a member of the Prime Minister’s cabinet and appointed by her) and the government official who has continued to lead the crusade against greater medical access for British patients, is married to the Managing Director of British Sugar. One month later, in June, it was revealed that Prime Minister Theresa May was even more directly involved in (and directly profits from) the current monopoly and restriction of such drugs at home than merely leading the charge from 10 Downing Street against greater legalization via her policies and appointments. Her husband’s investment firm is the largest stockholder in GW Pharma.

This disclosure was not the only reason Javid also said that both oils and flower (also presumably but not yet discussed publically, from firms other than GW Pharma) might be available as soon as October in the UK. GW Pharma also failed a critical trial in Eastern Europe for its cannabinoid drug for focal (or drug resistant) epilepsy this year right at the time British parents were having their personal imports confiscated (from Holland and Canada). That landed one of the kids in the hospital.

Where or where, possibly, could that cannabis come from if GW Pharma does not move into the vacuum and nobody else gets a domestic license to cultivate?

More on that in a moment. One hint? It ain’t going to be Holland.

It’s A Political Sticky Wicket In The US Too

There is another aspect to the timing of the British rescheduling that is also interesting. Particularly given May’s direct financial benefit via her husband and her continued outreach to President Donald Trump at a time when Brexit is causing economic and political warnings in the UK that are literally, historically unprecedented.

In the middle of all of the legalization drama at home, abroad in the U.S. things got really rosy this year for GW Pharma. Why? They finally got clearance to import Epidiolex – one of the company’s child epilepsy drugs based on CBD – to America. In the process, they also became the first federally approved cannabis medicine available on the legitimate, federally sanctioned market. And, in an environment, it should be pointed out, where the U.S. has yet to reschedule or deschedule cannabis.

The fact that this is also an “import” approved potentially behind the scenes at the White House level where “U.S. jobs” is the driver behind actions ranging from the border wall to separating children from their families and starting a trade war with Europe and China, has so far, gotten scant notice.

But it well might get more – especially as Britain heads into the last awful eight months before reality really hits home.  In the U.S., the cannabis industry has yet to focus on this politically, but that too, may still happen as a terminally stalled federal bill to deschedule gains more sponsors in Congress.

A great number of British citizens are already experiencing Brexit buyer’s remorse while the authorities moan about Facebook and Russia’s role in the outcome of the vote. If the U.K. crashes out of the EU without a deal in place, many more will rapidly come to the conclusion that the new British reality will be far, far from “cricket.” And cannabis is an easy, easy issue to focus on.

Especially as Canadian recreational legalization, as a member of the British Commonwealth, has to be authorized by the Queen before the October transition.

Imports From The Commonwealth (And US) in A Brexit World

Here is one of the reasons cannabis politics may play an even bigger if not outsize role and impact in the current Britain. Far from just investors in GW Pharma.

International firms as well as those based solely in the UK along with leading government officials are now leading the warnings of the dire economic hit Brexit will cause if the UK crashes out of the EU without a deal.  One of the most intriguing aspects of this conversation, however, is also now put front and centre. If Britain really “hard exits” from the EU, that means that domestic production of food and drugs will have to be increased – especially at a time when authorities are starting to reveal their (appallingly dire) plans for stockpiling.

While this may not seem obvious to Americans, there is a huge amount of ex-im traffic that crosses the Channel between the UK and the continent daily by truck. The impact on basic foodstuffs and drugs used far more widely than cannabis will be dramatic. However, if not grown at home, exporting it from Portugal and Spain (under “normal” circumstances) would be as much of a no-brainer as oranges.

This hit will also be immediately felt. Officials on both sides of the major transit points are literally scouting parking lots to house the trucks that will stuck in transit on both sides, with new rules in place dramatically slowing everything coming into the UK and coming back out of it.

There is also a controversial new runway under construction at Heathrow, London’s main airport these days. Could it be that imported cannabis (as the UK decides on how to deal with its GW Monopoly problem) would be flown in from Canada? Or even the U.S. in a bizarre swapsie deal?

It’s not like this would be unprecedented. Trump has used cannabis as a political card before – notably asking Israel’s president Netanyahu to delay Israeli exports in exchange for support of moving the Israeli capital from Tel Aviv to Jerusalem.

It may sound odd, but with backlash absolutely possible at this point – both against GW Pharma and against May (not to mention Trump) – such a scenario is also far from the strangest potential “alternative fact” to emerge these days. Even in the cannabis industry.

The post The UK Reschedules Cannabis To A Schedule II Drug appeared first on CannabisFN.

The United States’ legal cannabis industry is gearing up for immense growth. A total of 30 U.S. states have now legalized the plant for medicinal use and many more expected to follow suit. Let’s not forget about the nine states that have permitted the plant for adult-use, too.

Home to some 325 million people, the United States of America boasts a strong economy and perhaps the world’s most addressable cannabis market. With more U.S. states embracing cannabis reform and scientists unearthing the plant’s medicinal benefits, it’s not really surprising that the U.S. cannabis sales are fast-approaching an all-time high.

America is Dominating the Global Cannabis Market

By 2025, the global cannabis market is expected to pull in $150 billion, with the U.S. contributing to a significant portion of that figure. Based on statistics gathered by Pew Research Center, 61 percent of Americans say the use of cannabis should be legalized. This is in indication of a rapid shift in opinion on the five-fingered green plant. Back in 2000, a mere 31 percent of the population supported cannabis legalization.

According to the 2017-2018 edition of the Cannabis Benchmarks’ Annual Review and Outlookon the U.S. cannabis market, the market’s wholesale value in 2017 peaked at $5.7 billion; a figure that is four times larger than the value of the U.S. tobacco market and almost as big as the wheat market!

Cannabis Stocks are Skyrocketing in These U.S. States

If you’re an investor with your eye on the prize, make sure you seek out the most profitable cannabis markets that Uncle Sam has to offer. The following weed-friendly places on the map are contributing to the bulging U.S. cannabis market:

1. California –Of course, The Golden State is featured on this list. California’s cannabis market is worth billions of dollars and just last year, $3 billion was spent on cannabis in the state. Fast-forward to the year 2022, and expenditure is forecast to hit $7.7 billion.

2. Colorado –In 2017, Coloradoans spent $1.5 billion on both recreational and medicinal cannabis products. By 2022, an additional $1 billion will be spend on the green stuff. While the market may not be growing as quickly as California’s, it is a lot more mature, having legalized the plant for recreational use six years ago.

3. Arizona – The medical cannabis market in Arizona is well-established. Last year, consumers forked out $461 million on cannabis-based products. Recreational cannabis has not yet been legalized in the State of Arizona, but ArcView Market Research and BDS Analytics predicts that it may happen in 2021. Until then, the state will benefit from medical cannabis sales, which are projected to hit $1.2 billion over the next four years.

4. Florida– The cannabis industry in Florida is expanding at a rapid rate. So much so, that it could be worth $3 billion by 2020. Many cultivators are in the process of expanding their growing facilities. After all, Florida’s MMJ market will account for 50 percent of U.S. nations by 2020. What’s more, Orlando-based attorney John Morgan has pushed to get recreational cannabis on Florida’s 2020 ballot.

5. Washington – If we gaze into the future, Washington’s cannabis industry could be raking in the cash. Cannabis spending could top $1.5 billion within the next few years, with output expected to be just below $3 billion. The cannabis market in Washington is projected to grow with a compound annual growth rate (CAGR) of 23 percent from 2016-2020.

6. Michigan – Did you know that Michigan boasts one of the biggest medical cannabis markets in the U.S.? It’s true. A total of $812 million was spent on medical cannabis in 2017 and, if residents choose to legalize weed for adult-use in November, state cannabis spending could pull in $1.4 billion by 2022.

7. Massachusetts –In July 2018, cannabis was legalized for recreational use in The Bay State. Now, the market is in full force and is forecast to pull in over $1.2 billion by 2022. Total output will be almost $2.3 billion, so watch this space.

Investing in the U.S. Cannabis Market

The growth rate for cannabis is in a league of its own. It is one of the fastest-growing industries on the planet. One of the major appeals for investors is the diversity in cannabis stocks that are currently trading on over-the-counter (OTC) exchanges. Should you be interested in investing in cannabis stocks, remember that many businesses in the cannabis sector lack access to financial institutions. Nonetheless, it is possible to get a sizeable return on investment (ROI) if you keep a close eye on cannabis stocks. Moreover, the industry comprises more than just cannabis cultivators. Suppliers and ancillary cannabis businesses make up a major segment of the market, so you have plenty of investment options at your disposal.

The post What Are the Largest Cannabis Markets in the United States? appeared first on CannabisFN.

Tablet with the chemical formula of CBD

The medical community’s attention is shifting towards the green spectrum of whole-plant medicines; a category that cannabis essential oils (CEOs) slot nicely into.

Cannabis is by no means a new discovery for the pharmaceutical world. Back in the 1840s, the cannabis plant was welcomed into Western medicine by a surgeon called W.B. O’Shaughnessy. According to the U.S. National Library of Medicine, the plant contains over 400 chemical entities, many of which can be developed for medicinal purposes.

Rewind further back in time to the 15th century BC and cannabis was included in the Chinese Pharmacopeia! Praised by ancient physicians for its anticonvulsant, sedative, anti-inflammatory, antispasmodic and analgesic effects, the five-fingered plant is gradually rebuilding its reputation as a therapeutic powerhouse… especially when administered in oil form.

Cannabis’ legal status is TRANSFORMING – something that is contributing to the rise of cannabis essential oils. So, what are they and how could the benefit your lifestyle?Let’s find out.

How is cannabis essential oil made?

Intensely green in color and potent in its organic composition, cannabis essential oil is intended for aromatherapy use. It is extracted from the flowers and leaves on the plant’s (Cannabis sativa L.) upper segment. The oil comprises a wide range of active organic compounds, including sesquiterpenes and monoterpenes. Hemp-derived cannabis essential oil is usually high in CBD (cannabidiol), since it is non-intoxicating.

Studies Prove the Efficacy of Cannabis Essential Oils

The pure potency of cannabis essential oil was revealed in a recent study by N Gulluni, which saw researchers from an Italian university explore the effects it has on the brain. Results were predominantly positive, with the study subjects experiencing reduced levels of anxiety, stress and depression after being administered with the oil. Patients reportedly felt “relaxed and calm” following administration of the cannabis essential oils in small doses.

“These findings provide evidence that brain wave activity autonomic nervous system response and mood states were affected by CEO,” said the researchers.

Researchers from the university went on to say that self-evaluation indicated how the level of well-being and relaxation was heightened when test subjects inhaled cannabis essential oils.

“This relaxing and anxiolytic effect on ANS could be explained by the abundance of limonene, myrcene, and β-caryophyllene.”

The study also suggests “that b-caryophyllene has an anxiolytic and antidepressant activity in a CB2 receptor-dependent manner.”

So, what are limonene, myrcene and β-caryophyllene (Caryophyllene)?Well, these active medicinal components occur naturally in the cannabis plant, called terpenes. Myrcene is a powerful analgesic, sedative and muscle relaxant, while caryophyllene is a natural anti-inflammatory. Limonene is a powerful antioxidant with anti-cancer properties.

Cannabis essential oils are not limited to these “healing” components, however. Other common cannabis terpenes (or terpenoids, as they are scientifically known,) include linalool, pinene, eucalyptol and delta-3-carene. The terpenes contained in cannabis essential oils depends on the strain’s genetic composition. However, limonene, myrcene and β-caryophyllene are more frequently found in the oil.

Amplifying Health with Cannabis Essential Oils

A single dose of cannabis essential oil will provide your body with a bundle of medicinal components that can work in synergy to produce what is known as the “Entourage Effect”. This is especially true when the oil is administered by means of inhalation.

Using the distilled oil of the cannabis plant’s flower, cannabinoid-rich essential oil can benefit you in the following ways:

• Heart Health – A growing body of evidencesuggests that cannabis’ non-psychoactive compound CBD (cannabidiol) is beneficial for the cardiovascular system, making the heart a therapeutic target for cannabis essential oil.

• PTSD – When administered in acute doses, CBD-rich cannabis essential oil can help to relieve the symptoms of post-traumatic stress disorder (PTSD). It may also induce a peaceful night’s sleep, according to a 2017 study titled “Cannabis, cannabinoids and sleep”.

• Anxiety/Stress and Pain Relief – A preliminary studyon cannabis essential oil proved how it can decrease pain, as well as relieve the symptoms of anxiety and stress.

• Appetite Booster – Cannabis is often used as a medicine for people with anorexia or suppressed appetite caused by chemotherapy treatment. The essential oil from THC-rich cannabis has been shown to increase feelings of hunger.

• Cancer – The active ingredients contained in cannabis essential oil may provide cancer patients with widespread benefits, According to a study on using cannabis in clinical cancer care, the oil may relieve chemotherapy-induced nausea, depression, insomnia and pain.

• Eye Health – Research gleaned from studies on cannabis and glaucomain the 1970s reveal a link between THC and intraocular pressure. By using cannabis essential oil, it is possible to prolong eye health.

• Asthma– Vaping cannabis essential oil or applying a few drops to your pillow at night will help treat inflamed airways and keep the symptoms of asthma at bay. In fact, one studyshows how cannabis users who vaporize may experience decreased respiratory symptoms.

• Skin Care– As a natural anti-inflammatory, cannabis essential oil can be applied directly to the skin to soothe it. Hemp essential oil is especially good for minimizing acne and pimples.

How to Use Cannabis Essential Oils for Maximum Effect

Introducing cannabis essential oils into your daily routine needn’t cause hassle. Transdermal administration is a popular choice for people with skin conditions, joint aches and pains. By transdermally applying cannabis essential oils to the problem area, cannabis’ active ingredients can be absorbed through the skin. Alternatively, you may choose to vape the oil. This is perhaps one of the fastest routes of administration. However, you should understand that cannabis essential oil is different to cannabis oil, due to the fact it comprises lighter aromatic terpenes.

The post What Are Cannabis Essential Oils? appeared first on CannabisFN.

Europe is officially on the forefront of the global cannabis industry, according to new data released by analyst group Prohibition Partners. The 3rd Edition of The European Cannabis Report™ finds that the marijuana market is projected to be worth over €115 billion by 2028. The news comes during a watershed moment for legal marijuana around the world as investments into the industry reach a fever pitch. The report, which analyzed the markets in 28 key countries across the continent, found that over €150 million has already been invested in the European cannabis industry.

“We not so much believe, but very much know that Europe will become the biggest cannabis industry in the world, it’s just a matter of when,” said Stephen Murphy, Co-founder and Managing Director of Prohibition Partners, in an interview with CFN Media.  “The European market has grown faster in the past six months than it has in the past six years. It presents an opportunity for both investors and entrepreneurs with experience in the space to develop a market that is fresh and already thriving economically and ready to support the growth of a new legal cannabis industry.”

Some form of medical cannabis is currently legal in 20 countries across Europe; in 2018, three more announced legalization efforts. While patient numbers are currently below 100,000, they are expected to jump to over 30 million by 2028; authors of the report ascertain the majority of European states will pass both medical and adult-use cannabis within this time frame. This comes as Canada prepares to fully legalize the plant, the first G-7 nation and only the second in the world to do so. Murphy states that there a few nations that currently stand out in terms of rapid development.

“Where the markets are of major interest would be Portugal and Spain, Italy, Germany, the UK, and you’d also have Czech Republic, Croatia, Austria, France.  Up until April of this year we were predicting that the UK would be 12 months away (from medical cannabis) whereas now we are saying it is less than 6 months.”

For international cannabis companies and investors, the report does heed a warning:  Europe will be one of the most challenging markets to enter, mainly due to the complex regulatory framework currently in place or being developed. Medical marijuana will mostly be available via socialized healthcare that citizens already participate in and obtaining distribution rights will be tough. However, it’s not impossible for foreigners to seal valuable government contracts – Canopy Growth announced an agreement in late 2017 that will bring their cannabis products to over 12,000 pharmacies in Germany, one of several such deals for large-scale Canadian cultivators.

“The European industry is certainly complex and has a number of barriers to entry that make operating in Europe a challenge, however as the region is currently in such an early stage of development, it makes one of the most opportunistic markets to be operational,” Murphy explained.

“The European cannabis industry will be heavily regulated and tightly controlled, as such it will be companies that are first movers and work with local authorities who will benefit from such rapid growth. Operators and investors should have a very solid European market entry strategy that reflects the strengths and goals of the company and need to work with local experts who can help navigate the complex region. First mover certainly provides risk, the German cultivation tender process just being one of them, but with Europe forecasted to be the biggest cannabis market in the world, it is essential to at least have a strategy that will see you enter the market within the next 12- 18 months.”

The post European Cannabis Market To Hit €115 Billion By 2028 appeared first on CannabisFN.

For those who missed the notification via the European online bid portal on the 19^th, or even the headline on Friday, July 20, the German Bid is back!  15 months after the more or less quiet issuance of the bid the first time (although this announcement turned the first ICBC in Berlin, held just days after into not only a deals circus but a global event from the start).

Since then, through delays, and lawsuits, BfArM, the federal agency who controls all narcotic drugs in Germany – and thus has responsibility for bid administration – has now issued the redux.  Also as quietly as they could.

No luck. The global industry, itself a lot more developed during this period, along with the globally focused industry press, was watching.

The tender application process is posted here. For now, only in German.

What Is Interesting?

German authorities posted the bid six days after the news of the bid’s formal demise first surfaced in the press.

The week prior, in the first week of July, the agency had apparently issued an (undated) mass mailing to all bid respondents that they were cancelling the process while refusing to confirm to the press that they had done so. Or issuing a date on which the next tender application would be issued.

A group of industry related professionals, industry advocates, activists and others based in Europe is already informally organizing to get the tender text translated into English – for reasons ranging from holding BfArM accountable to public scrutiny from interested investors.

If a company has a snowball’s chance of becoming a cultivator, being able to afford a German-speaking attorney is not an issue. Being a retail-level investor, however, is a different matter these days.

The deadline for response is late October.

What Is Similar?

At first bird’s eye glance, the second tender requirements look almost identical to the first one. Which means of course, that those who submitted a highly scoring bid last time won’t have much to do on this front all summer. Except make sure they can deliver the commodity. It is clear from activity starting all over the continent that futures contracts for guaranteed, high quality product as of the bid’s delivery date are going through the roof. If one can find them at all right now.

For those in the suspected front runner positions last time, that too should not be any problem. The mostly Canadian companies who either announced or were rumoured to be part of the “Final 10” have all expanded, upgraded, and in some cases gone public. On several international if not U.S. exchanges.

This, beyond “federal grow” experience, is one of the real differentiators this time. But it is not the only one.

What Is Different?

If German authorities were hoping to keep the news quiet (or posting it only auf Deutsch) to limit respondents, good luck with that one. And this time, there well may be “American firms,” who, through strategic financial and geographic positioning in the last 15 months have changed the equation. And thus could qualify. Even if the crop they provide is not from the U.S., nor is their corporate HQ located there. Or their public stocks issued on a national stock exchange.

However that development too is bringing U.S. capital at least into the global and this time potentially German game – even if American cannabis is still, for the time being, landlocked.

The Israelis and the Australians also pose more of a market presence if not threat this time. Both have been busy setting up market presence in Greece, Eastern Europe, and the Balkans. If nothing else, these firms will be on the frontline of deciding whether to enter the bid directly for round 2 or partner with someone a little more strategically if not advantageously poised but with a need for commodity backup should the Canadian recreational market put too much demand on domestically produced warehoused crop.

Read in other words, with access to serious bank.

Except this time, that is also clearly not the only important part of the equation.

The Bid Amount Is Still The Same – And So What?

The amount of crop grown in Germany (officially) has been officially set now for at least the next three years, barring patient lawsuits for deliberately producing less than the market can already (easily) justify. In fact, according to one of the country’s top health insurers, in the past year, only one third of all patient prescriptions have actually been cannabis. The rest have been the synthetic dronabinol or other variations on a theme (Sativex is expensive for the German market). In a frustrated market, this is the kind of thing that can happen.

It may have influenced things this time.

Literally, days before the first letters from BfArM apparently began to be sent out, one of Germany’s most activist, legally minded, patients, Guenther Weiglein, won another victory in court – in Bavaria, – known as the most conservative German state. The issue at hand? Not being fined for growing his own supply in a situation where he could not afford his meds any other way or access it via his insurer.

Bottom line on the story here? It will be far, far cheaper to import into Germany – and not from Canada, but across the European continent (not limited to just EU members). Holland is often mentioned, but that is not really the entire story. Dutch firms are limited by domestic, not German law, on how much they can export. So see Spain, Portugal, Eastern Europe and of course, Greece. And don’t expect frustrated German patients to sit this one out.

Germany Will Be An Import Market Sourced From Europe

This is not a surprise either. The big firms have been aligning themselves this way for the last 12 months.

The difference this time? By the time tender respondents have to start guaranteeing crop (no matter where it comes from or where it is grown), Israeli firms will most likely be finally in the game as exporters. Even if not based in Israel. Australians do not have such issues even now. But they too are moving into this market aggressively and via similar strategies.

What investors and contenders have to consider this time, frankly, if this bid exercise is little more than window dressing. And if Germany is worth all the expense, risk, and contortions. At least at this point.

Here is why. An established German national distributor, with existing contracts and relationships to the network of German pharmacies and with access to crop grown in a country geographically close to Germany (in any direction) for the short term, is in a better position than anyone relying solely on expensive German grow operations to meet the current demand and with better prices.

Plus there is this to consider. Why grow auf Deutschlandwhen companies can import raw crop cheaply and focus on processing, rather than growing in-country for a market that is going to be medical only for at least the next four to five years?

What is crystal clear, in other words, about recent developments, is that at least for the foreseeable future, the firms who make it through the bid this time will have expensive “store front grow ops” in a country which still rely on imports to supply a market which is establishing itself with authority.

One thing, at this juncture, therefore is crystal clear. Despite huge domestic interest in cannabis as medicine now in Germany, when it comes to growing, authorities seem determined to keep as much cannabis cultivation out of the country as possible, for as long as possible. And in the meantime, allowing other forces (including European and German distributors and even pharmacies directly) to source it from, literally, the rest of the world.

The post The (German) Bid Is Back In Town appeared first on CannabisFN.

It’s official and “weed” if not the people have clearly won. The voters have spoken, the government has finally voted, and now the Prime Minister, Justin Trudeau has been allowed to set a date – even if later than initially promised or hoped.  Legal cannabis sales will begin across Canada just shy of two weeks before Halloween.

In the meantime, the last regulatory transitions for production, distribution, and consumption will be put into place, even if some provinces will be more organized and ready than others.

There are no barriers now to implementation – even the Queen (back in the UK) is expected to give Royal Assent with no issues.

It is, therefore, safe to say, in general, that Canadians across the board are pleased as punch. If not abask in the glow of legislative if not market change that is, indeed, and not just for Canadians, transformational. Not to mention now officially on the calendar.

Legal Questions Still Remain Domestically

It is also not as if Canada has just passed the point of “all she wrote.” With the advent of federal recreational reform, expect a few tweaks if not outright amendments down the road. Why?

First there already have been problems. And those are not all resolved. Plus there are other issues looming beyond just market start itself, which have not only remained unaddressed but are likely to be controversial for some time to come.

Starting with the delay until October in the first place. Rumours have swirled since earlier in the year that the provinces (in particular) did not want to be pushed into a summer start. Trudeau himself challenged the government on deadlines. However the Senate, itself a body of mostly unelected and rather appointed individuals, has now also been forced to move.

As a result, while the actual transition day (much like January 1, 2014 in Colorado) is now set by parliamentary mandate, expect many objections if not actual legal skirmishes along the way.

The first is the driving law Canada is also passing – deemed as the toughest in the world.

The second is what will happen to home grow (which is controversial just about everywhere). Three provinces (Quebec, Manitoba, and Nunavut) will prohibit people from growing at home, even though individuals have the federal right to nurture up to four plants. While the federal government will not challenge such provincial bans, individuals almost certainly will.

And of course, lastly, issues of expungement (having ones record cleared of cannabis-related crimes), is still a vast unknown. So far, the first motion to pardon Canadians convicted of simple possession did not garner the unanimous consent politically that it requires. That too will be on the horizon, presumably after the sun rises on actual legalization.

Will The Commonwealth Now Transition To Cannabis Reform?

Literally on the same day that the Canadian government moved forward on recreational, the impact was also felt in other places.  In the UK the issue also moved forward last week – and in a situation where Canadian reform was never out of the room. After an activist parent dared the British government to strip her son of Canadian supplies for his drug resistant epilepsy (which they did at Heathrow), the resulting hospitalization of her 12 year old finally sparked a move to “re-examine” UK cannabinoid policy at the nose bleed level.

Of all the places in the world where cannabis reform is at least on the table, the UK remains the most regressive and outrageous. One company – GW Pharmaceuticals – has retained the exclusive right to develop cannabinoid based medications domestically – which it not only mostly tests but then sells abroad. In fact, although this is now likely to change this year, up until this point, it was the UK, not Canada, which exported the most legal, medicinal cannabis every year.

In fact, the most remarkable thing about Canadian “legalization” is how closely it seems to be tracking GW Pharma’s “first” cannabis drug to be introduced into a U.S. (not Canadian) market where NO federal medical reform has occurred. Epidiolex is made for child epilepsy – even though it still is not effective for everyone. This is the reason the situation in the UK right now is not only so untenable, but embarrassing – and further, very threatening indeed to the entire discussion of “pharmaceutical” vs. literally “whole plant” medication when it comes to cannabis.

It is also increasingly clear to those who are fighting for medical access everywhere that the entire discussion of “reform” has been (again) cynically and politically delayed – and continues to be – for the benefit of drug company profits over basic (and multi-symptom) patient access. Worse, these are also, in the specific case of Epidiolex, for man-made pharmaceuticals that do not, (yet or ever), work as well as the raw if barely processed plant. And of course, are much, much, more expensive than the “real” thing. This is not only “Sativex” all over again (GW’s sativa-based, THC mouth spray), but Marinol and Cesamet (the synthetic versions of cannabinoids that are marketed for cancer pain, AIDs and Parkinson’s).

How Fares Germany?

Canadian recreational reform will also have an impact on Canada’s biggest coups to date – an almost virtual lockhold on the global medical trade which now stretches from Europe to Australia. In fact, in an era of threats and bullying tactics to keep both Uruguay and Israel from entering the increasingly valuable world of whole-plant ex-im, Canada is the only country which has managed to establish such trade. In turn, this has made the cannabis companies in Canada now serving both the recreational market at home and the medical market everywhere else literally multibillion, globe-straddling unicorns in less than four years.

However,there is, even now, a limit on how much can be grown and shipped internationally that depends on both domestic supply as much as international demand. Will Canadian companies be able to “serve two masters”?

That question, at least for the next six months is one that is likely to be more shaped by continuing downward and deliberate pressure to keep patient numbers low in Germany than any massive and sudden spurt in domestic production (although the biggest firms are also engaging in that too).

In sum, however, the announcement that Canada will now, in the name of eradicating the black market, move into full and final legalization in mid fall is a victory. For consumers. For patients. And of course, for a now far more than nascent and most certainly, international industry. No matter how many questions, controversies and battles still remain.

The post Canadian Legalization Delayed Until October 17 appeared first on CannabisFN.

British Columbia’s sole legal wholesaler of non-medical cannabis has entered into agreements with licensed producers to ensure a retail supply for when non-medical cannabis is legalized.

The Liquor Distribution Branch (LDB) has signed memorandums of understanding with 31 licensed producers of non-medical cannabis to form an extensive and competitive wholesale product assortment. The initial product assortment will feature more than 150 strains, ranging in quality, from value to ultra-premium product, at competitive prices. The LDB has also secured an array of cannabis accessories for retail sale in BC Cannabis Stores.

“We are thrilled to be reaching this significant milestone in developing a competitive wholesale assortment for non-medical cannabis,” said Blain Lawson, LDB’s general manager and CEO. “The volume, variety and quality of our product assortment speak to the LDB’s commitment to working towards eliminating the illicit market.”

The LDB has developed its product assortment with the aim of being as inclusive of as many licensed producers as possible. It has entered into agreements with all appropriately licensed producers that responded to the LDB’s request for information process and are able to supply a sufficient volume of non-medical cannabis upon legalization.

Licensed private retailers will be able to access the wholesale assortment via the LDB’s online sales portal. Details of the process for retailers to register with the LDB will be released at a later date.

The initial assortment includes product from 12 B.C.-based licensed producers. The LDB will be continually expanding its purchasing requirements as anticipated demand for non-medical cannabis product increases, and expects to issue a product call to invite additional licensed producers to engage as suppliers, shortly after legalization.

The 31 licensed producers that have entered into a Memorandum of Understanding (MOU) with the LDB are:

• Acreage Pharms Ltd.
• Agrima Botanicals Corporation
• Aphria Inc.
• Aurora Cannabis Enterprises Inc.
• Bloomera Inc.
• Broken Coast Cannabis Ltd.
• Canna Farms Ltd.
• CannTrust Inc.
• Canopy Growth Corporation
• Cronos Group Inc.
• DOJA Cannabis Ltd.
• Evergreen Medicinal Supply Inc.
• Experion Biotechnologies Inc.
• Hydropothecary
• Maricann Inc.
• MedReleaf Corp.
• Natural Med Company
• Redecan Pharm
• Seven Oaks Inc.
• Solace Health
• Starseed Medicinal Inc.
• THC BioMed Inc.
• The Flowr Corporation
• The Supreme Cannabis Company/7 Acres
• Tilray Canada Ltd.
• United Greeneries Ltd.
• UP Cannabis Inc.
• WeGrow BC Ltd.
• WeedMD RX Inc.
• Whistler Medical Marijuana Corp.
• Zenabis Ltd.

Additionally, the LDB has secured a location for its first BC Cannabis Store (BCCS) within Kamloops’ Columbia Place Shopping Centre. The selection of this location was based on a number of factors, including municipal readiness for the zoning of cannabis retail operations and site suitability. The LDB will apply for municipal approval of the store site when the City of Kamloops begins accepting applications for non-medical cannabis retail outlets in September.

“We welcome this announcement that the LDB is applying to open the first government-operated BC Cannabis Store in Kamloops,” said Mayor Ken Christian. “Kamloops City Council supports the work of the provincial government as they map out the future retail cannabis landscape in B.C. Their mixed model for cannabis sales, allowing both public and private retail, has many benefits to B.C. communities. The proposal, like all applications, will require the city’s approval before it will operate.”

The store will be staffed by about 20 employees, including managers and knowledgeable cannabis consultants. All BCCS employees will receive extensive training concentrating on social responsibility practices related to safety and responsible adult use, comprehensive product knowledge and customer service skills.

The LDB is considering a number of locations across various municipalities for the rollout of its BC Cannabis Stores, and is focused on ensuring a careful and efficient rollout that will provide the best possible customer experience and meet all health and safety regulations.

Learn More:

For updates on the development of the LDB’s wholesale and retail cannabis business, and a full list of licensed producers that have signed memorandums of understanding as part of the LDB’s initial product assortment, visit: www.bcldbcannabisupdates.com

For information on the online sales of non-medical cannabis, visit: https://news.gov.bc.ca/releases/2018AG0048-001265

To view job postings for the BC Cannabis Stores location in Kamloops and other opportunities, visit: www.bcldbcannabisupdates.com/opportunities/careers

The post New Agreements Will Ensure Quality Cannabis in British Columbia appeared first on CannabisFN.

On Tuesday, July 17, 2018, dozens of athletes, entrepreneurs, and ultra-high net worth accredited investors will gather in Beverly Hills, California for the Unofficial Pre-ESPYs Dinner, hosted exclusively by Green Table.  Entrepreneurs and investors participating in the event will benefit from the firsthand knowledge of some of the world’s most premiere cannabis experts and thought leaders and will receive a curated look at the cannabis industry’s top leading brands.

This invite-only exclusive event will see a collection of elite athletes, experts, and celebrities on stage discussing the benefits cannabis and CBD for the first time ever. Join Green Table, along with a select number of ultra-high net worth accredited investors and entrepreneurs, as they continue to elevate the cannabis conversation.

The event is made possible through several sponsors, including Young America Capital, and partners like AltaCorp Capital, one of the most prestigious financial institutions in Canada. Proceeds from the event will go towards a donation to the charities Athletes for Care and the UCLA Cannabis Research Initiative.

“Our recognition for excellence with institutional investors, capital markets, key influencers, and the cannabis space is unparalleled,” commented Bill Marcus, Managing Partner and Founder of Green Table. “We are proud to be working with Athletes for Care and the UCLA Cannabis Research Initiative, and we encourage all of our attendees to make a donation to these wonderful charity organizations.”

Attendees will be treated to two riveting discussion panels on the benefits of CBD, led by world-class cannabis experts and including elite athletes like Tiki Barber and household names like Jim Belushi. Accredited investors will hear presentations from the cannabis industry’s top-leading luxury brands. Green Table is the driving force for accelerated growth in the cannabis industry and prides itself in providing the opportunity for cannabis-related companies to present their business to investors who understand, support, and believe in the industry.

What: An elite gathering of professional athletes, entrepreneurs, and ultra-high net worth investors to discuss the benefits of CBD as well as investment opportunities in the cannabis industry.

When: Tuesday, July 17, 2018.

Where: Beverly Hills, California.

Some of the people expected to participate in the evening’s discussion panels include:

Panel 1
Tiki Barber – Former NFL Running Back
Tiki Barber is a former NFL running back who played for the New York Giants for ten seasons, and one of three players in NFL history with at least 10,000 yards rushing and 5,000 yards receiving.  Barber is co founder and Chief Business Development Officer for Grove Group Management, a next generation investment and management company in the cannabis industry.

Jeff Chen – M.D./M.B.A.
Dr. Jeff Chen is a graduate of the specialized dual degree MD/MBA program at UCLA. He has spent the past four years working at the intersection of academia, industry, nonprofit sector and government to accelerate cannabis research. He has been invited to speak on the topic of cannabis policy, science, and business at institutions ranging from the RAND Corporation to the UCLA Center for East West Medicine to Senator Feinstein’s Office.

David Bearman – M.D.
Dr. David Bearman is one of the most clinically knowledgeable physicians in the U.S. in the field of medicinal marijuana.  He has spent 40 years working in substance and drug abuse treatment and prevention programs. His career includes public health, administrative medicine, provision of primary care, pain management and cannabinology.

Nick Lowery – Former NFL Placekicker
Kansas City Chiefs Hall of Famer Nick Lowery knows about targets – he was the most accurate kicker in NFL History. He worked for three US Presidents in the White House during his NFL Career and was the first pro athlete with a Masters and Fellowship from the Kennedy School of Government at Harvard. He is the winner of the most prestigious humanitarian award an NFL player can receive, The Byron Whizzer White Award.

Todd Harrison – Founding Partner and Chief Investment Officer at CB1 Capital
Todd Harrison is the Founding Partner of CB1 and our Chief Investment Officer. Todd has spent almost three decades on Wall Street managing risk and researching financial market strategies. His institutional experience includes Morgan Stanley Global Equity Derivatives (VP), The Galleon Group (MD-Derivatives), and Cramer, Berkowitz LLC (President and Head of Trading).

Panel 2
Jim Belushi – Actor
Jim Belushi is an actor, voice actor, comedian, singer and musician. Jim has been a favorite of film, television and stage audiences for more than 30 years, one of the great leading character actors equally at home in drama and comedy, and a gifted performer who can also hold a room as front man of his rhythm and blues band.

Frank Shamrock – Former MMA Fighter
Frank “The Legend” Shamrock is an American mixed martial artist (retired), entrepreneur, motivational speaker and philanthropist.  Shamrock was the 1st to hold the UFC Middleweight Championship and retired as the 4-time defending undefeated champion and the #1 ranked UFC fighter in the world during his reign. He was named “Fighter of the Decade” for the 1990’s & holds the world record for the fastest knockout (14 seconds).

Nate Jackson – Former NFL Tight End
Nate Jackson is a writer and former American football player. Undrafted out of Menlo College in 2002, he spent most of his professional career with the Denver Broncos from 2003 to 2008 before injury problems ended his career in 2009. After retirement, Jackson began writing football-related commentary for the New York Times and other publications.

Riley Cote – NHL League Ambassador
Riley “Riles” Cote is a Canadian former professional ice hockey left winger and is currently an assistant coach with the Lehigh Valley Phantoms of the American Hockey League (AHL). His role as the NHL League Ambassador for Athletes for CARE allows him to continue pursuing his passion to help athletes find safe non-toxic ways to find relief, manage pain and guide them to understand self-healing.

DISCLAIMER: This is a private, invitation-only event. Green Table, and its partners, have no association with ESPN or the ESPYs.

About Green Table
Green Table produces exclusive events in cities around the United States to educate investors and thought leaders on opportunities within the maturing cannabis industry. Events are designed to forge deep relationships within the industry and provide an outlet for the best ideas to flourish. The Green Table dinner series has become the recognized brand within the sector as the place where leading cannabis companies get recognized, connected and funded. Find out more at GreenTableGlobal.com

Contact
Green Table
Bill Marcus
Green Table Founder and Managing Partner
Telephone: 312-375-6537
bill@greentableglobal.com

The post Ultra-High Net Worth Investors Gather in LA for Exclusive Pre-Espys Cannabis Event appeared first on CannabisFN.

Laboratory testing is already a critical component of the legal cannabis market. Producers are expected to maintain rigorous standards in order to prevent sub-standard products from reaching the end consumer. GemmaCert is a table-top testing device that analyzes cannabis flowers in a smart way in order to achieve an accurate potency reading – without the need to grind a single bud or send a sample to a third-party lab. The sleek and easy-to-use unit is disrupting the cannabis space by allowing anyone to analyze their flowers within a matter of minutes. The company recently announced a new funding round, seeking to raise an additional $5-6 million (US), having already raised $3 million to date.

CFN Media sat down with GemmaCert Co-founder and CEO Guy Setton at the recent Terpenes and Testing World Conference to learn more about the company’s innovative device and how it is could be a game-changer throughout the cannabis supply chain.

CFN Media:  How was GemmaCert developed?

Guy Setton:  We knew from the beginning that we wanted to do something in the analytical side of the cannabis industry because we understood that current laboratory potency tests are lengthy and costly, making multiple tests impractical. By contrast, FDA approved spectral examination methods offer a quick and cost-effective way to leverage multiple tests.

Cannabinoid content varies widely, even within a single commercial crop. Research has documented this variability but a casual survey of products for legal sale shows that cannabis doesn’t lend itself to potency standardization. It’s well known that potency differs between cannabis strains but, in fact, potency varies between plants of the same crop and even between flowers taken from the same plant. So, the concentrations of the active ingredients of tetrahydrocannabinol (THC) and cannabidiol (CBD) in an individual commercial batch range widely.

We decided to add apply NIR-spectroscopy, along with image analysis, to overcome the need to prepare a sample for analysis. With multiple sensors, we’re scanning the flower in a comprehensive manner, and that’s how we’re overcoming the need to grind the flower.

CFN:  Who can benefit from owning a GemmaCert unit?

GS:  Everyone along the supply-chain who is growing, buying or selling cannabis can benefit from a GemmaCert device. First, there are growers out there who want to have in-house testing capabilities for their own QA/QC and for their own breeding, and as well to know what they’re sending off to the market. At the end of the day when you look at all the tests that cannabis flowers have to go through, the only one that determines the price and use of a product is potency. All the other tests determine whether or not a product can go-to market. Potency determines the value, and therefore when you empower the grower with the ability to know what they have in their hands at any particular moment, they know how to best price the product. It becomes a critical decision-making tool.

Processors or distributors who are buying a raw material from multiple growers need this device to validate the quality of incoming goods onsite and in real-time. They can ensure the quality matches the specifications of what they desire, because the last thing they want is to over-pay for poor quality or lower than expected potency.

For dispensaries handling flowers, receiving them in bulk, and then packaging them, same case. Test what’s coming in, know what’s the value. They can also better serve their customers because if a customer walks in and wants something specific, and they can assure them what they’re giving them has been specifically tested, that ultimately boosts customer loyalty and also enables them to differentiate from other dispensaries who are not able to do so because they do not have the technology.

We’ve also had interest from medical practitioners who wish to know more about what they’re recommending for their patients. At the end of the day, if you get the potency wrong for someone who’s suffering from a chronic illness, it’s the difference between them functioning or not functioning in a given day. That’s very important.

CFN:  What sets GemmaCert apart from other testing devices on the market?

GS:  First of all, there’s the technology itself. The integration of multiple sensors has resulted in a proprietary hybrid solution, which avoids sample preparation and destruction. GemmaCert is easy-to-use, sparing the costs of employing skilled analytical personnel to run tests and interpret results. It is eco-friendly and does not require solvents or other unsafe additives; there are no expenses for removing hazardous waste after testing, while keeping the environment clean.

If you look at most of the solutions out there, their starting point was the analytical world, the professional lab. We came in with a device looking at the customer side – the customer being someone on the supply chain. And for them, again, what’s important is knowing what’s in the batch, not in the specific flower. When you understand that, then you understand the importance of not destroying the flower. That makes us different.

CFN:  Why should potential investors consider your company?

GS:  Firstly, for those who are hesitant and on the sidelines, you get exposure to the global cannabis market, without being totally immersed in it. You’re not touching the flower and there are a lot of investors out there who want that exposure but don’t want to dive in too deep. Furthermore, our proprietary technology is relevant for other herbal medications, such as Traditional Chinese Medicines, so there’s great upside potential outside the cannabis world.

We have a strong and experienced team of biotechnologists, data scientists and programmers who have successfully taken new technologies from the early idea phase through to commercialization in other industries. Our team has accumulated decades of experience throughout their careers and generally speaking, I think this sort of experience is lacking in the cannabis industry.

Inevitably, the cannabis industry is going to go down the same road that, for example, dietary supplements went. Regulators are going to require compliance with Good Manufacturing Processes (GMP) from seed to sale, which means companies will need managers with GMP expertise.. Testing will inevitably become common practice onsite as the necessity for potency and other tests increases far beyond a single laboratory test at the end of the process.

In the foreseeable future, cannabis supply chain stakeholders may be liable for potency labeling errors; and as cannabis moves into clinical acceptance, labeling will naturally be held to higher standards, as is the case in the health and nutrition industries. If pharmaceutical corporations were to sell products with active ingredient variance similar to cannabis crops, class-action lawsuits would soon arise. Accurate potency labeling will be a priority for retailers, if only for the reason of self-preservation.

At the end of the day, we believe there’s an unmet need in the market for onsite testing and we have a very well made, affordable and reliable solution that addresses this unmet need. That’s what makes GemmaCert such an interesting investment opportunity. The GemmaCert business model is to generate revenue from device sales and recurring income, which we are already doing. Investors who come in now are getting in with a company that is growing on a global scale with a steady influx of sales from North and South America, Europe, Israel and Asia. . With a focus on technology, investors  also don’t have to worry about all of the regulatory obstacles that accompany businesses involved in the trade of cannabis flowers and products.

CFN:  What’s next for GemmaCert?

GS:  In the long term, we want to take our technology and adapt it to automated sorting and packaging lines. This industry, as it grows, will inevitably go through consolidation.  Obviously, there will be always be smaller, boutique growers, but the industry will be dominated by the bigger, well funded growers. For them, economies of scale will come into play. Efficiencies will be critical for profitability. Therefore, like with mainstream agricultural crops, automation will be in high demand. We believe the ability to scan flowers in real time on a conveyor belt by their potency will become common practice by the market leaders. We see our technology enabling that automation.

From a medical perspective, every flower has a unique spectral fingerprint, which basically expresses all the compounds that exist in that flower. It’s going to take years, if not decades, for scientists to not only identify each one of those compounds, but to know what each and every one of those compounds does when consumed. We hope scientists will learn as much as possible about the flower. But until then, with our technology, we can assist the medical community in determining which variety is more or less effective for treating a specific health condition by correlating the need with the spectral fingerprints in our database.

Imagine a situation where someone walks into a dispensary and gets a product with a QR code on the packaging that contains the spectral fingerprint tested by GemmaCert. The patient scans the QR code with a smartphone app that already contains their health condition profile. The app will then generate either a green light or a red light. The green light means the spectral fingerprint of the cannabis product in their hand is similar to the spectral fingerprint they need to treat their ailment. A red light would indicate the opposite and warn the patient not to consume the product. In order to achieve this, we still need to do a lot of work with data analytics, but it’s a project we plan to advance over the coming years for the wellbeing of patients worldwide.

The post CFN Media Interviews Guy Setton of GemmaCert appeared first on CannabisFN.

Cannabis reform is finally coming to the United States this year, in the form of legalized adult-use cannabis in California and progress towards medical cannabis legalization nationwide. Investors may want to keep a close eye on these trends as the market could reach over $50 billion in size by 2026, according to Cowen & Co. analysts, driven by the liberalization of cannabis policy and growing public demand.

States’ Rights Win Out in the USA

The Trump Administration has held opposing views on cannabis legalization. While the appointment of Attorney General Jeff Sessions and the rescinding of the Cole Memo was certainly a negative development for the industry, President Trump recently indicated that he would support a new bipartisan bill sponsored by Sen. Cory Gardner and Sen. Elizabeth Warren to give marijuana growers and sellers better access to the formal financial system and ultimately return regulation to states rather than the federal government.

Libertarian Republicans, like Sen. Cory Gardner, tend to support cannabis legalization on states’ rights grounds, but even Republicans opposed to national legalization on moral grounds may be ready to change the mind along with voter sentiment. A late 2017 Gallup poll found that 64 percent of voters believe that cannabis should be legalized — including more than 50 percent of Republicans for the first time in history. And, President Trump is well known for being a politician that supports people over policy.

The new bill would close a key legal gap in the burgeoning industry. As it currently stands, the Rohrabacher-Blumenauer amendment limits Department of Justice’s firepower, but marijuana remains federally illegal on the list of banned Controlled Substances. The new bill would make it illegal, rather than inconvenient, for the federal government to interfere in state marijuana industries, which would in turn make it easier for banks and other legitimate industries to get involved with the sector to reduce crime and uncertainty.

Recreational Cannabis Begins in California

California voters legalized adult-use cannabis in November 2016, but it took more than a year for recreational cannabis to hit store shelves. On January 1, 2018, it became legal for any U.S. adult over the age of 18 to purchase cannabis for recreational purposes in California, which created one of the largest markets in the world overnight. Analysts believe that the market could bring in nearly $8 billion over the next four years.

Despite the legalization, there have been some growing pains along the way. Many black market growers have struggled to secure licenses in the new legitimate market, which has led to some concerns given that large investors and companies have been overwhelmingly benefiting at the expense of smaller growers. Local governments are trying to address these concerns and bring smaller growers into the fold, but in some cases, large swaths of marijuana crops have been destroyed as the black market is shut down.

California could also be a tipping point for the United States to bring adult-use legalization across the nation. While Colorado, Washington, and Oregon were early pioneers with recreational cannabis legalization, California is the most populous state and could be a more realistic proving ground for the entire nation. The successful rollout of a recreational cannabis program could demonstrate the viability of the legalization movement and open the door for lawmakers to push for broader national level legalization.

Keeping Up with the Trends

The National Cannabis Industry Association, or NCIA, is the only national trade association advancing the interest of legitimate and responsible cannabis industry participants. With hundreds of top companies participating, the group has become an important lobbyist and voice for the industry to lawmakers in the United States and has become a leading voice around the world.

The group has several upcoming conferences where companies, advocates, and other parties can gather to discuss these recent events and how the industry landscape is evolving.

NCIA’s 5th Annual Cannabis Business Summit® & Expo 2018
July 25 – 27, 2018 – San Jose, CA
www.cannabisbusinesssummit.com

CCIA’s & NCIA’s California Cannabis Business Conference 2018
October 22 – 23, 2018 – Anaheim, CA
www.californiacannabisbusinessconference.com

NCIA’s Seed to Sale Show® 2019
February 12-13, 2019 – Boston, MA
www.seedtosaleshow.com

For more information on becoming a member, visit the organization’s website at https://thecannabisindustry.org.

The post Cannabis Reforms Sweep the United States appeared first on CannabisFN.

The AGLC has been diligently working for months to select the right partners to bring legal cannabis to Alberta, in a safe and responsible manner while continuing to offer choices Albertans can trust.

The following federally licensed producers (LPs) were selected from 31 proponents that responded to the “Expression of Interest” that closed in February. The AGLC will continue to engage additional LPs as they become federally licensed, specifically Alberta-based producers.

Cannabis purchased by consumers directly from the AGLC at albertacannabis.org will be delivered by Canada Post and Purolator.

Further, the AGLC will leverage its current liquor warehousing and distribution system with Connect Logistics Services to provide retailers with cannabis.

“The AGLC is committed to providing the Alberta market with access to federally regulated cannabis in a safe and fiscally responsible manner, while helping to shrink the illicit market. We are confident that those we are working with will help us fulfill our responsibilities to Albertans.”

Niaz Nejad, Chief Operating Officer and Vice President, Gaming & Cannabis, AGLC

For more than 20 years, the AGLC has been a regulatory leader in the management of Alberta’s gaming and liquor industries. Our commitment to integrity and offering choices Albertans can trust will continue as our responsibilities expand to include cannabis.

The post Alberta Will Be Ready to Roll Come October 17 appeared first on CannabisFN.