Koch Brothers Support Marijuana State Rights

In a rebuke of United States Attorney General Jeff Sessions's rescission of the Cole Memorandum, the Koch brothers released a sharply worded statement supporting states' rights with regard to legal marijuana and also labels the war on drugs "misguided" and advocates a "new, smarter approach to drug policy."

 

In a rebuke of United States Attorney General Jeff Sessions's rescission of the Cole Memorandum, the Koch brothers released a sharply worded statement supporting states' rights with regard to legal marijuana. The statement, first released in late January, argues that "citizens have spoken on marijuana" and that the United State Justice Department can "choose to be on the side of individual liberty and states rights" by not interfering.

The Koch statement goes beyond just defending states' rights in reference to their dispute with Sessions over legal marijuana. The statement also labels the war on drugs "misguided" and advocates a "new, smarter approach to drug policy."

"The administration would be better suited working with members of Congress to reform outdated sentencing laws," the statement reads. "However well-intentioned these laws were upon implementation, they have ruined lives, torn apart families and communities, and have burdened taxpayers, doing little to keep people safe."

Read more

Senator Cory Booker Stays Firm Against Sessions

Colorado Republican Senator Cory Gardner said he would not allow any of Sessions' Department of Justice nominations to be confirmed if the Attorney General did not reverse his recent marijuana decision. And since Sessions has held firm, Gardner has followed through with his promise. 11 Justice Department nominees have been blocked from receiving a Senate floor vote in the past month as a result of Gardner's political maneuvering. 

When Attorney General Jeff Sessions announced his decision to rescind protections for states with legal marijuana laws, many politicians spoke out against him. But only one,  has taken actual steps to prevent Sessions' from enacting his agenda.

Last month Colorado Republican Senator Cory Gardner said he would not allow any of Sessions' Department of Justice nominations to be confirmed if the Attorney General did not reverse his recent marijuana decision. And since Sessions has held firm, Gardner has followed through with his promise. 11 Justice Department nominees have been blocked from receiving a Senate floor vote in the past month as a result of Gardner's political maneuvering. There are another 20 nominees that need to be confirmed in the following few months, and many politicians believe Gardner will continue to hold fast.

Read more

Canada’s new hemp rules to boost CBD production

New rules on hemp to help significantly increase CBD production.  This is a direct result of strong worldwide demand for CBD.

Canada’s hemp market is about to skyrocket under new regulations that allow the nation’s farmers to use the plant’s flower for cannabidiol extraction.

Canadian hemp currently can be used only for seed and fiber, with the leaves and flower unusable for CBD extraction without a special license from the national health agency.

The proposed hemp regulations in Canada’s larger marijuana plan – expected to become law next summer – would also allow hemp farmers to sell the flower and leaves to licensed processors in the marijuana market.

Because only trace amounts of cannabidiol are found in hemp stalks and seeds, much of the value of Canada’s hemp crop currently goes in the trash.

Market estimates for the value of hemp-derived CBD in Canada are limited, but researcher Jan Slaski of InnoTech Alberta has predicted the overall Canadian hemp industry could be worth $1 billion a year by 2023.

Canada grew about 120,000 acres of hemp this year, 10 times the acreage of hemp in the United States.

The hemp expansion not only gives farmers another product to sell, it gives CBD producers a huge new source of raw plant material.

 

Canada’s hemp market is about to skyrocket under new regulations that allow the nation’s farmers to use the plant’s flower for cannabidiol extraction.

The proposal has farmers and cannabis companies scrambling to capitalize on the change.

Canadian hemp currently can be used only for seed and fiber, with the leaves and flower unusable for CBD extraction without a special license from the national health agency.

The proposed hemp regulations in Canada’s larger marijuana plan – expected to become law next summer – would also allow hemp farmers to sell the flower and leaves to licensed processors in the marijuana market.

Because only trace amounts of cannabidiol are found in hemp stalks and seeds, much of the value of Canada’s hemp crop currently goes in the trash.

Market estimates for the value of hemp-derived CBD in Canada are limited, but researcher Jan Slaski of InnoTech Alberta has predicted the overall Canadian hemp industry could be worth $1 billion a year by 2023.

Read more

Supply & Demand - Cannabis Pricing Pressures

The legalized cannabis industry is incredibly exciting, and is the fastest growing segment of economy.  That being said, incredible amounts of supply capacity are coming online which will put further pressure on marijuana wholesale pricing.  There is not a week where I don't hear about  10-12 groups wanting to either start a new production site, or increase the capacity of an existing operation.

We have seen this across the country personally over the last two years, especially in WA, OR, and CO states, and the WSJ in its article further talks to this issue about the strong pressure on pricing, and this has clearly impacted profitability for many of these operators.  For some, the "Green Rush" of profits have never come for the growers, and many are looking to sell and move on with their lives to something else.

For us, there will be a select few cultivators that will win, and which will include those with unique genetics, those that are vertically integrated, those that have developed strong brands, and of course, those growers who can most efficiently cultivate quality product at a highly competitive cost.    Most operators coming into market will either be too small to grow and produce at scale or will ultimately be under-capitalized and lack the talent to produce efficiently when they companies compete not only within their states but across the country, and ultimately with international players as barriers and restrictions come down.

For Salveo Capital, with this phenomenon which happens with other commodity products, we become very interested in companies and innovative technologies that address the following:

  • increased yield technologies and services
  • novel genetics
  • proprietary formulations for processing flower to meet unique conditions
  • powerful branding with strong value propositions

By 

Jacob Bunge

Aug. 30, 2017 8:00 a.m. ET

208 COMMENTS

After decades of dodging law enforcement and fighting for legalization, U.S. marijuana growers face a new challenge: low prices.

From Washington to Colorado, wholesale cannabis prices have tumbled as dozens of states legalized the drug for recreational and medicinal uses, seeding a boom in marijuana production.

The market is still tiny compared with the U.S. tobacco industry’s $119 billion in annual retail sales, but the nascent cannabis business has grown to more than $6 billion a year at retail, according to data from Euromonitor International Ltd. and Cowen & Co.. 

For marijuana smokers, the price drop is sweet news. Recreational users and those prescribed cannabis for health reasons have seen prices decline as wholesale prices have fallen, though some retailers have pocketed part of the difference, according to New Leaf Data Services LLC, which researches the U.S. cannabis market.

At Hashtag Cannabis, a Seattle-based retailer running two dispensaries, co-owner Jerina Pillert said wholesale price declines show up on the plastic vials holding green-and-tan nuggets of “Super Silver Lemon Haze” marijuana produced by Longview, Wash.-based Bondi Farms. A gram sells for about $10 currently, down by a third from the $15 a gram it fetched in September 2015, she said. 

But for growers—ranging from high-tech warehouse operations to back-country pot farmers gone legit—the price drop has been painful. 

Since peaking in September 2015 at about $2,133 a pound, average U.S. wholesale cannabis prices fell to $1,614 in July, according to New Leaf. That is the sort of market decline that hit Midwestern corn and soybean growers in recent years after a string of record-breaking crops.

“There is an increasing recognition, on the part of the industry and those that grow and dispense, that this market is a commodity,” said Jonathan Rubin, New Leaf’s chief executive. 

 

Marijuana grows in a greenhouse at the Los Suenos Farms facility in Avondale, Colo., last year. PHOTO: MATTHEW STAVER/BLOOMBERG NEWS

In response, some producers are taking a page from the food industry, where farmers and food companies increasingly appeal to health- and environment-conscious consumers. Growth in organic food products for years has outpaced conventional grocery sales, and products made without genetically modified crops, gluten and artificial flavorings can command premium pricing and shelf space.

Stephen Jensen, who secured a state license to grow cannabis in Washington in 2015, has yet to turn a profit. He is promoting what he described as natural growing methods.

“We needed to give people a reason to select us,” said Mr. Jensen. He said his Green Barn Farms eschews synthetic pesticides and relies on natural light over high-powered lamps, which he said helps his cannabis stand out among more than 1,100 other Washington farms.

 

Because cannabis remains illegal under federal law, growers can’t get their crops certified as organic, a label that can only be bestowed by the U.S. Department of Agriculture.

Cannabis farmers instead have turned to alternative labels such as SunGrown Certified, which requires that growers use sunlight and water-conservation practices. They hope such labels will entice smokers and secure shelf space in the 29 states where marijuana is legal in some form.

Another label, Clean Green Certified, is modeled on U.S. organic standards. It bars synthetic pesticides and emphasizes what the program deems fair-labor practices. In May, Washington State passed a law that would set up a state-level organic-certification program, though it may need to use a label that doesn’t use that word.

That push to differentiate is splitting pot farmers into rival camps.

Indoor-grown cannabis, where climate controls and high-powered lights allow several crops per year, typically is of a more consistent quality, industry officials say. Its dense, often bright-green buds catch consumers’ eyes, often fetch a higher price and can be costlier to produce.

Proponents of marijuana grown outdoors and in greenhouses say indoor facilities rely on synthetic fertilizers and heavily consume electricity. They point to a 2012 paper by University of California Senior Scientist Evan Mills, which estimated that indoor cannabis production accounted for 1% of national electricity use, though some growers have been adopting LED lights, which consume less electricity.

Jeremy Moberg, owner of Riverside, Wash.-based CannaSol Farms and head of the Washington Sungrowers Industry Association, says marijuana smokers will come to care about the environmental cost of their high.

“The socially conscious, premium customer is going to want us because we’re sustainable,” he said. “It only takes me 30 seconds to convert somebody wearing Patagonia and driving a Prius that they should never smoke indoor weed again.”

At Hashtag Cannabis in Seattle, Ms. Pillert said customers occasionally ask for pesticide-free or sun-grown varieties. Smokers’ main fixation, she said, is the potency rating for the key active ingredient, tetrahydrocannabinol, or THC: “They want to make sure they are getting the biggest bang for their buck.”

 

A ‘Bud tender’ stocks packaged marijuana in display cases at the grand opening of The Cannabis Corner in North Bonneville, Wash., in 2015. PHOTO: JASON REDMOND/REUTERS

Many in the emergent industry expect marijuana to eventually resemble the beer business, where pricier craft brews have built followings in the shadow of cheaper mass-market beers like Budweiser and Busch.

While high-quality strains and specialty brands may secure premium prices, more low-quality marijuana will be processed into oil used in vaporizer cartridges or adult-oriented baked goods like brownies and cookies, growers and retailers said.

Mr. Jensen, the Seattle cannabis producer, said he hopes that his sun-grown, naturally produced plants over time will yield a 20% to 30% premium over the average market price.

“I always buy organic products at the store and think there is a future for that in the [cannabis] industry,” said Mr. Jensen. But, he said, “it’s a battle getting that awareness out.”

Write to Jacob Bunge at jacob.bunge@wsj.com

Appeared in the August 31, 2017, print edition as 'High Returns Wither for Marijuana Growers.'

Read more

Colorado Officials Respond to Attorney General Sessions on Marijuana Policy

Looks like states rights are coming on strong, and pushing back on AG Sessions.   The overwhelming benefits that are accruing to states with legalization along with strong public support is a force that the Federal government will hopefully start to better understand, and start prioritizing more critical issues to our country.

https://www.marijuanatimes.org/colorado-officials-respond-to-attorney-general-sessions-on-marijuana-policy/

Colorado Officials Respond to Attorney General Sessions on Marijuana Policy

By

 Joe Klare

 - 

  Aug 30, 2017

SHARE 

Facebook

 

Twitter

  

 

Getty

Late in July, U.S. Attorney General Jeff Sessions sent letters to officials in the first four states to approve adult use marijuana legalization: Colorado, Washington, Alaska and Oregon. Officials in all four states have responded, the last of which being Colorado, who did so just last week.

Colorado Governor John Hickenlooper (D) and Attorney General Cynthia Coffman (R) took umbrage with several of Sessions’ assertions, saying he relied on outdated and incorrect information while touting the progress made in their state since retail cannabis sales began in January 2014.

“The State of Colorado has worked diligently to implement the will of our citizens and build a comprehensive regulatory and enforcement system that prioritizes public safety and public health,” the letter reads. “When abuses and unintended consequences materialize, the state has acted quickly to address any resulting harms. While our system has proven to be effective, we are constantly evaluating and seeking to strengthen our approach to regulation and enforcement.”

Colorado officials insist that their regulations are effective, citing stats that show youth marijuana use in the state declining by 12% between 2013 and 2016. The state has also seen over $500 million in tax revenue and a drop in marijuana DUIs.

Considering Colorado’s governor was an opponent of Amendment 64 when it was being battled over in 2012, it is a little odd to see him now defending legalization to Attorney General Sessions. That, perhaps more than any other single fact, is a testament to how well legalization is working in Colorado. 

I have opined in writing here and elsewhere that it would seem that Jeff Sessions has enough to worry about without bothering with a legal marijuana crackdown that no one is clamoring for. I don’t see anyone marching in the streets against cannabis legalization. It is not an especially divisive issue, with clear majorities supporting legalization in every poll taken on the subject. 

It has been theorized that Sessions is using this time to feel out how receptive citizens and officials would be to a crackdown; if he doesn’t see the answer to that by now, he never will. Most people and officials in legal marijuana states want Sessions to go away and spend his time on other subjects.

In fact, the message officials in Colorado sent to Sessions tracks pretty close to the message the other 3 states sent him as well. None are calling for federal interference in their affairs; they are calling for quite the opposite.

Read more

Salveo Capital Announces Launch of Cannabis Fund

Salveo Capital LLC announces the re-launch of Salveo Fund I, LLC (“Fund”) with the addition of Michael Gruber (Managing Partner), Jeffrey Howard (Managing Partner) and Achint Prabhat (Director of Fund Operations) to the existing team of Alex Thiersch (Partner), John Dohm (Partner) and Eric Atienza (Director of Communications). Salveo is a venture capital fund with offices in Chicago, Illinois, that will invest in emerging growth companies within the cannabis sector.

Chicago, Illinois -- Salveo Capital LLC announces the re-launch of Salveo Fund I, LLC (“Fund”) with the addition of Michael Gruber (Managing Partner), Jeffrey Howard (Managing Partner) and Achint Prabhat (Director of Fund Operations) to the existing team of Alex Thiersch (Partner), John Dohm (Partner) and Eric Atienza (Director of Communications). Salveo is a venture capital fund with offices in Chicago, Illinois, that will invest in emerging growth companies within the cannabis sector. 

The addition of the new team members brings valuable investment, fund management, capital markets and due diligence experience to complement the existing team. Michael Gruber has over 20 years of experience working with early stage investments, particularly in the information technology, financial services, energy, and agriculture sectors. Mr. Gruber has founded and run several private investment organizations of high net worth investors and family offices focused on growth stage investments, including Cornerstone Angels and its affiliate Cornerstone Opportunity Partners, LLC.  Collectively, the portfolio companies have raised in excess of $2.5 Billion in capital. Mr. Gruber is a founding Partner of Independence Equity, a committed venture capital fund with key areas of investment interest including: water; energy efficiency; material science; and agriculture.

Jeffrey Howard spent 21 years on Wall Street in roles of increasing responsibility. Mr. Howard’s last role on Wall Street was with the Royal Bank of Scotland (RBS) where he was a Managing Director – Global Head of Prime Services. His responsibilities included running global Futures, OTC Clearing, Interest Rate Prime Brokerage and FX Prime Brokerage.  In that role he managed 90+ people across North America, EMEA & Asia Pacific, was responsible for the growth strategy of $150 million business and managed a $50 million front-to-back budget. Mr. Howard leverages his 20+ years of senior-level capital markets experience to source deals and perform due diligence on emerging cannabis focused companies, while providing financial & operational risk management guidance.

“I am excited to be part of this highly qualified Salveo team that brings together strong investment and cannabis sector expertise” said Michael Gruber. “We continue to have great access to exciting opportunities and quality management.” 

Salveo's primary investment focus will be early stage businesses enabling the cannabis industry, but which are generally ancillary to the production or processing of the plant and not subject to state regulations.  Key areas of interest include: Financial, Payments & Banking; Grow Systems, Agriculture & Operations; Software, Digital & Internet; Chemistry, Science & Genetics; and Business Services.

The Fund will be a committed capital fund and will only be available to accredited investors and qualified purchasers. The Fund’s objective is to achieve long-term capital appreciation by investing in early-stage companies servicing the cannabis industry.  

Read more

Salveo Capital's Michael Gruber Moderates Cannabis Investment Panel at Opal Conference

Salveo Capital Managing Partner Michael Gruber to moderate “Investing in Cannabis” panel at the Opal Family Office & Private Wealth Management Forum in Newport, Rhode Island today, July 19th.

Salveo Capital Managing Partner Michael Gruber to moderate “Investing in Cannabis” panel at the Opal Family Office & Private Wealth Management Forum in Newport, Rhode Island today, July 19th. The panel will discuss cannabis sector marketplace, and explore the various investment options for investors in the sector. More can be found here.

Read more

Who Is The Typical Cannabis Consumer?

Every day of legal cannabis has seen an expansion of the base of potential consumers. It stands to reason that since there is such a wide array of people purchasing legal cannabis in the U.S. these days that companies will begin to cater to these groups. As the industry develops, branding will become more sophisticated and more targeted, branching out from the simple product-based marketing that dominates today.

Cannabis users are one of the most stereotyped consumer demographics in the country. The archetype is familiar: the typical young, male, couch-locked stoner. With legalization spreading, though, is this actually typical of cannabis buyers today? Obviously hardcore enthusiasts are still a large and appealing set of consumers, and in the early days of any state's legal, adult-use program this will be the largest base. However, the 2015 Marijuana Business Daily Factbook indicated that 30% of all legal cannabis consumers had never purchased on the black market. Additionally we're seeing across the country many people who are purchasing cannabis - first time buyers or not - do not fit the stereotype. Cannabis has been normalizing for a long time, and the modern face of cannabis is incredibly multifaceted. 

First and foremost the legal cannabis market has expanded across the country because of the efficacy of medical cannabis. The face of this market is as counter to the stereotype as one can get. For instance, the most common medical cannabis patient in the state of Illinois is a 50 year-old female with fibromyalgia or cancer according to a report issued by the state. Across the country patients are seeing relief from epilepsy, Crohn’s disease, or multiple sclerosis among many other debilitating conditions. As we see study after study examining how medical cannabis can better the lives of children and veterans it becomes incredibly hard to pigeonhole these patients into the old stoner archetype.

While people under 34 have the highest approval ratings for cannabis legalization older generations are becoming a growing consumer segment in both the medical and adult-use spaces. Medical cannabis dispensaries are reporting increasing numbers of seniors using cannabis as treatment over prescription dugs, and according to a recent Pew poll Baby Boomers approve of the full legalization of cannabis at a rate almost equal to Generation X. The growth of this consumer demographic further muddies what a “typical cannabis buyer” might look like.

Women are an increasing demographic in cannabis as well which is evidenced by a recent CBS News poll indicating that a majority of women now approve of full adult-use legalization. Indeed, last year musician and medical cannabis activist Melissa Etheridge noted, “I think the cannabis revolution is being led by middle-aged women.” 

Every day of legal cannabis has seen an expansion of the base of potential consumers. It stands to reason that since there is such a wide array of people purchasing legal cannabis in the U.S. these days that companies will begin to cater to these groups. As the industry develops, branding will become more sophisticated and more targeted, branching out from the simple product-based marketing that dominates today.

There is nothing stereotypical about cannabis buyers in 2016. They come from a wide range of backgrounds and professions, are of varied ages, and consume different amounts in different ways for different reasons. They are students, yes, but also teachers, nurses, and business professionals. They are younger adults, but they are also mothers and grandfathers. Cannabis is a market that is beginning to cross all demographic boundaries and soon enough the “typical cannabis consumer” will be anyone, and everyone.

 

Read more

What is the Potential Size of the Legal Cannabis Industry?

In news reports about the potential size of the cannabis industry – and indeed in our own posts on this site – figures are often cited like a value of $22 billion dollars by 2020. These projections, provided by excellent sources like the ArcView Group and Marijuana Business Daily, are safe, conservative numbers based on the likelihood of continued legal expansion and available market data. They are also number based solely on sales of cannabis itself. What, though, is the potential size of the entire industry nation-wide and including ancillary markets? How big can the cannabis industry truly grow to be?

In news reports about the potential size of the cannabis industry – and indeed in our own posts on this site – figures are often cited like a value of $22 billion dollars by 2020. These projections, provided by excellent sources like the ArcView Group and Marijuana Business Daily, are safe, conservative numbers based on the likelihood of continued legal expansion and available market data. They are also number based solely on sales of cannabis itself. What, though, is the potential size of the entire industry nation-wide and including ancillary markets? How big can the cannabis industry truly grow to be?

In 2012 the RAND corporation estimated that the total size of the illicit cannabis market in the United States was $40 billion dollars, and we’ve heard a few people say that legal cannabis is simply a matter of moving those illegal sales into legal territory. That, however, is undervaluing the potential size of the market. Black market sales will only ever tell you how many people are willing to purchase cannabis from a drug dealer – it will not tell you how many would potentially purchase it if it were available legally.  According to the Marijuana Business Daily 2015 Factbook up to 30% of cannabis consumers in states with legal cannabis have only purchased the drug legally. As cannabis normalizes the number of mainstream consumers can only be expected to increase. 

The medical cannabis market opens this up even further as every day more studies are scientifically proving the medical efficacy of cannabis for a variety of conditions. Currently 86% of all Americans live in a state that has some form of legal cannabis law according to ArcView (whether CBD-oil only, fully regulated medical, or fully regulated personal use) and in 2014 ArcView estimated that 26 million people were qualified to use medical cannabis under their own states’ laws. As these programs begin to cover more conditions and register more patients, as more physicians become comfortable recommending cannabis as a treatment, and as states like Pennsylvania, Florida, and Ohio pass comprehensive medical cannabis laws the total number of patients will skyrocket. 

While most of the sales data has focused on cannabis sales the ancillary market potentially dwarfs this in size. Mark Twain once wrote, “During the gold rush it’s good to be in the picks and shovels business” and legal cannabis is no different. The long federal prohibition and regional legalization has led to an industry that must not only develop its primary services but must also establish an infrastructure from the ground up. Packaging, shipping, security, consulting, and technology companies, among others, are creating an enormous potential for profit. The MJBD Fact Book estimated that the ancillary market was worth up to three times that of cannabis sales themselves. 

Our own projections for the industry are always rooted in the most conservative industry estimates. Expanding our view to see the bigger picture, however, it’s hard to ignore that with regard to the cannabis industry the sky really is the limit.

Read more

What Schedule 1 Means for Cannabis

The conversation about cannabis in political circles has recently been focused around terms like “de-schedule” or “reschedule.” “Schedule 1” or “Schedule 2.” What do these terms mean, though? What, exactly, are the ramifications of the current federal legal status of cannabis?

The conversation about cannabis in political circles has recently been focused around terms like “de-schedule” or “reschedule.” “Schedule 1” or “Schedule 2.” What do these terms mean, though? What, exactly, are the ramifications of the current federal legal status of cannabis?

 

Overview

In 1970 President Nixon signed the Controlled Substances Act regulating drugs in the U.S., partially to comply with international treaties. It authorized the Department of Health and Human Services and the Food and Drug Administration to regulate drugs, tasked the Drug Enforcement Agency to enforce these regulations, and categorized drugs into five tiers, or Schedules.

Schedule 1 is reserved for substances that are so-called “dangerous, with no medical application, and with high potential for abuse.” This includes heroin, MDMA, LSD, and mescaline. Prescriptions cannot be written for anything in Schedule 1.

Schedule 2 is for substances with a high potential for abuse, that may result in high physical dependence, but that have currently accepted medical uses. This includes opium, morphine, oxycodone, methamphetamine, codeine, and cocaine. Prescriptions are required for all drugs in this list.

Schedule 3 substances have a lower potential for abuse than the previous two, have accepted medical uses, and have a low to moderate risk of addiction in cases of abuse. Prescriptions are required for Schedule 3 substances including intermediate-acting barbiturates, anabolic steroids, and ketamine.

Schedule 4 is reserved for substances that have lower potential for abuse than the previous three, that have low risk of dependence, and that have accepted medical uses. Prescriptions are required for these drugs which include benzodiazepines (like Xanax or Klonopin), benzodiazepine-like drugs (like Ambien or Lunesta), and long-acting barbiturates.

Schedule 5 substances have the lowest potential for abuse, low risk of dependence, and accepted medical uses. Prescription medications like cough suppressants containing codeine, and anti-convulsants like Lyrica are in this classification.

 

Consequences for Cannabis

Cannabis, and the individual cannabinoid THC are currently listed in Schedule 1. Many states have decriminalized possession of cannabis in small amounts (making simple possession the equivalent of a traffic ticket), but it is a class 1 federal felony to conduct research not pre-approved by the DEA. With cannabis in particular, all DEA-approved studies must requisition the plant from the National Institute for Drug Abuse facility at the University of Mississippi – a distinction that NIDA itself does not agree with.

Further, doctors cannot prescribe Schedule 1 substances which is why medical cannabis programs across the country – other than Louisiana’s mostly ineffective system – legally require only a doctor’s recommendation or verification of illness. State legal cannabis businesses also face additional tax burdens, and the lack of interstate commerce means that each state market is isolated with separate regulations and redundant business processes. 

 

The Future of Legal Cannabis

Given these legal complications, why is the cannabis industry booming in states across the country?

Over 50% of the country approves of the legalization of cannabis for personal adult use and that number climbs into the high 70s in swing states for medical cannabis legalization. From a voter standpoint it certainly seems like cannabis is here to stay.

Widespread popular approval is one of the reasons. Over half of the U.S. population lives in a state where cannabis is legal in some fashion. Over 50% of the country approves of the legalization of cannabis for personal adult use and that number climbs into the high 70s in swing states for medical cannabis legalization. From a voter standpoint it certainly seems like cannabis is here to stay.

Several signs from the federal government have also given cannabis entrepreneurs and investors some hope. The Justice Department’s Cole Memo gave states and businesses an outline to follow for reduced risk of prosecution, and though this action of the Executive Branch might seem tenuous in the 8th year of a President, each of the remaining candidates has stated that they would, at least, respect the rights of states to set their own cannabis policy. Congress has taken action as well, attaching amendments to the last several spending bills restricting the ability of the DOJ and the DEA to interfere with state-legal cannabis programs – a restriction that has been upheld in federal appeals court.

Additionally, the CARERS Act currently has 18 co-sponsors in the Senate (including several Republicans such as Lindsay Graham), and would reclassify cannabis to Schedule 2. It would also separate CBD from the definition of “marijuana”, it includes several provisions to open up cannabis to banking, it specifically creates more avenues for cannabis research, and it allows Veterans Affairs doctors to recommend cannabis to patients.

Should the bill become law it would essentially legalize medical cannabis at the federal level which is an overdue change. The medical efficacy of cannabis is proven in states across the country every single day (clinically, in the case of the recent G.W. Pharmaceuticals CBD study) as patients are able to drop prescription medications with debilitating side-effects and regain control of their lives.  

As studies of cannabis prove its medical efficacy it seems inevitable that it eventually meets the standard of “accepted medical use” and is rescheduled. In the meantime, though, there are many hurdles that cannabis businesses face, and that patients must deal with, while the plant remains in Schedule 1.

 

Read more

The Cannabis Industry Requires Reinvention, Not Revolution

This idea that cannabis means building an industry entirely from scratch, however, is neither necessarily true nor truly necessary. The building blocks for a successful and sustainable legal cannabis industry exist all around us; we just need to shape them to fit our needs.

It’s been 20 years since medical cannabis was first legalized in California, but due to the recent unprecedented growth geographically and monetarily the phenomenon of legalization still seems brand new. In a lot of ways the industry IS brand new compared to those early days on the West Coast. Today, according to the 2016 ArcView Report, over half of the U.S. population lives in a state that provides access to some form of legal cannabis, be it personal adult-use, medical-use, or CBD oil. The plant is heavily regulated in many places across the country, including in Colorado, Washington State, Oregon, and Alaska which have all legalized cannabis for consumption by adults over 21, and in 2016 a number of states on both coasts are set to follow suit. Because the re-introduction of cannabis as a commodity has come so quickly in recent years, and because the plant impacts so many different markets, many have been tempted to call this a revolution. The overturning of an old system to build something completely new. This idea that cannabis means building an industry entirely from scratch, however, is neither necessarily true nor truly necessary. The building blocks for a successful and sustainable legal cannabis industry exist all around us; we just need to shape them to fit our needs.

Technology is changing the world and rather than having to modernize old systems the cannabis industry has the opportunity to build its infrastructure around cutting edge ideas.

This isn’t to say we shouldn't innovate or that pure creation isn’t needed – both of these things are essential. Technology is changing the world and rather than having to modernize old systems the cannabis industry has the opportunity to build its infrastructure around cutting edge ideas.  Our workflows will grow up around seed-to-sale software like BioTrack THC or MJ Freeway, and our database of information is already being shared and codified on websites like Leafly, Project CBD, and CannaRegs, or through apps like Growbuddy. Additionally, the industry faces unique legal challenges that it will need to overcome, such as the tax burdens associated with 280e, the limited access to banking that forces business to be handled in cash, or advertising limitations in print, broadcast, and on social media that other legal businesses do not have to deal with. It will take real ingenuity to fill these needs and overcome these obstacles, but with focused imagination the solutions to these problems will become the foundation of the industry.

The majority of operations in a cannabis business, though, are not a matter of pure invention. They are a matter of harnessing decades of experience accumulated in other industries and applying it to the cannabis space. The skills and institutional knowledge involved in running a retail business – including staffing, controlling inventory, tracking sales, and logistics – apply to any product and differences between markets can be compensated for through standard research. We're finally beginning to get consumer data on cannabis sales courtesy of firms like New Frontier Financials but raw data is meaningless without the skill to turn it into actionable goals. This also holds true in fields like design and marketing where underlying skills and best practices have been honed over time by countless professionals and only require educated tweaking to apply to cannabis. Business development, strategic planning, and brand development in cannabis don’t require a seismic shift from the standard approach; they only require a marriage of experience with the specialized knowledge of this market.

Though in a lot of ways legal cannabis is every bit as fresh and new as reports are stating, there are a lot of lessons we can learn by tapping the right experienced partners and doing research into existing solutions. The ground floor has yet to be built in this industry, but we don’t need to create a new hammer to build it.

Read more

What Colorado's Near Billion Dollar Cannabis Year Means For the Industry

Where are all of these new sales coming from? Are they simply a recapturing of portions of the estimated $30 billion value of the illegal American cannabis marketplace, or is there more at play?

Cannabis is big business in Colorado, to the tune of $996 million in sales in 2015. In August of last year, after steadily increasing month-over-month sales, the state surpassed $100 million in monthly sales for the first time. This sales total in Colorado was a 42% increase over 2014, and in the industry as a whole 2014 was a 74% increase over 2013. This, despite the constantly dropping price per ounce in Colorado and Washington State. Where are all of these new sales coming from? Are they simply a recapturing of portions of the estimated $30 billion value of the illegal American cannabis marketplace, or is there more at play?

It seems unlikely that this constantly expanding consumer base is coming completely from black market buyers shifting to legal purchases. In fact, according to the Marijuana Business Daily Fact Book, states with medical or adult use dispensaries only 36% of cannabis consumers have moved completely from the black market to legal purchases. The report adds that 31% of consumers in these states have never purchased from the black market while the balance either purchase solely from the black market (17%) or purchase both legally and illegally (16%.) It stands to reason that as cannabis normalizes in states where it is legal customers unwilling to participate in the illegal market are coming to cannabis for the first time.

It’s generally true in consumer industries that casual, mainstream consumers contain vastly more revenue potential than hardcore consumers. 

It’s generally true in consumer industries that casual, mainstream consumers contain vastly more revenue potential than hardcore consumers. For example, despite the fervor of craft beer lovers macro-breweries still dwarf micro-breweries in total sales. Much to the chagrin of die-hard sports fans it’s often so-called “bandwagoners” that result in sold out games and increased merchandise sales. It’s becoming obvious that this is becoming true in cannabis as well. Even now, according to the Marijuana Business Daily report, 40% of non-medical cannabis consumers are not daily users.

The cannabis demographic is expanding, and it’s inevitable that we’ll see increased interest from professionals to homemakers. It’s up to industry professionals to create a marketplace that is appealing to these consumers. 

We know that the market is increasingly appealing to older consumers, and that more and more women are participating in cannabis. The cannabis demographic is expanding, and it’s inevitable that we’ll see increased interest from professionals to homemakers. It’s up to industry professionals to create a marketplace that is appealing to these consumers. The cannabis culture market will certainly continue to be vibrant and lucrative, but the true potential of the legal market can only be tapped through increased participation. 

This means increased thoughtfulness in image rehabilitation and branding, and it means taking an active role in establishing industry regulation. It means leveraging traditional business experience when it comes to retail, logistics, and strategic planning. It means building a forward-looking industry based on professionalism, reliability, and established best-practices. By developing a consumer base that includes every demographic in the country converting the $30 billion illicit cannabis market to legal sales will just be the beginning.

Read more

Medical Cannabis Sees Overwhelming Support in Key Swing States

Support for legalizing medical cannabis in the bellwether states of Florida, Ohio, and Pennsylvania is at or near 90%, according to a Quinnipiac poll released on October 8.

Support for legalizing medical cannabis in the bellwether states of Florida, Ohio, and Pennsylvania is at or near 90%, according to a Quinnipiac poll released on October 8. With 87% of Florida voters, and 90% of voters in Ohio and Pennsylvania approving of medical cannabis it is easy to see why most industry experts predict that both Florida and Pennsylvania will have medical cannabis laws on the books by the end of 2016 - indeed the Pennsylvania legislature may pass a bill before the end of this year.


Though support for medical cannabis is incredibly high in Ohio the state is not predicted to pass a medical cannabis law soon because the ballot initiatives projected for 2015 and 2016 are for fully regulated personal use for all adults over 21. The Quinnipiac poll also offered some numbers for each state regarding legalization of personal use.

Florida

Florida voters are narrowly in favor of legalizing personal use of cannabis at a rate of 51% in favor to 45% against. Men were more likely to be in favor (57%) than women (49%). It's unsurprising that the 18-34 age demographic showed the highest support (66%), though it is a bit surprising that the 50-64 age group showed higher support (55%) than the 35-49 range (52%). Voters 65 and over remain the only demographic still opposed to the legalization of the personal use of cannabis for adults at 56% against.

Ohio

Ohio voters support legalization of the personal use of cannabis at a rate of 53% in favor to 44% against. Men are more likely to support full legalization (59%) than women (47%). The age breakdowns, when compared to the 53% approval rate, reveal the greying of the state. 70% of the 18-34 age group in Ohio supports the full legalization of cannabis along with 59% of voters aged 35-49. Only 50% of voters aged 50-64 would vote for personal use, and again voters over the age of 65 are the only age group opposed to legalization with 64% against. 

Pennsylvania

In Pennsylvania voters are still narrowly opposed to full legalization with 49% of voters against and only 47% in favor. Once again, men are more likely to support legalization (52%) than women (43%). Voters 18-34 are the most in favor (66%) followed by the 35-49 demographic (51%). The 50-64 age bracket in Pennsylvania is largely undecided about the legalization of the  personal use of cannabis with 48% in favor and 47% against, and the 64% of voters 65 and over are opposed.

It's important to note in all of these cases that even though the numbers are very close in all three states, 65% of respondents reported that if cannabis were legalized for personal use they would not personally consume it. This means that a significant percentage of voters that are in favor of legal cannabis don't even have an interest in consuming the product. Whether it be because of the social justice aspect, the extra tax revenue legal cannabis brings, the monetary savings from not prosecuting and incarcerating non-violent consumers, or the efficacy of medical cannabis, voters in swing states are beginning to favor legalization even if they have no direct personal stake in the matter.

Political pundits often look to polling in these three states to try and predict the outcome of national elections and to spot national trends. This isn't necessarily because these states are policy leaders, but rather that the opinions and moods of these states represent the median of the country - populations that are equal parts conservative and liberal. With approval ratings like these from the American middle the next few years should be very exciting for legal cannabis.

Read more

Benefits of an Investment Fund in the Cannabis Industry

It’s certainly possible for savvy individuals to navigate this avalanche of information with a lot of time and work. For others, though, an investment vehicle such as a diversified investment fund could be the key to mitigating the risks of cannabis investment.

There are tremendous opportunities to be had in the legal cannabis industry. If you’re reading this then you’ve probably seen the numbers: $2.7 billion market value in 2015 behind 74% growth in 2014 with an ancillary market that could be three times the size of the market of the plant itself. These enormous positives obviously come with some challenges, and while all investments involve some degree of risk cannabis investment definitely has some unique hurdles. How can a new investor make sense of the variance in state and local regulations (or lack thereof), 280e, and the trials of an emerging market? It’s certainly possible for savvy individuals to navigate this avalanche of information with a lot of time and work. For others, though, an investment vehicle such as a diversified investment fund could be the key to mitigating the risks of cannabis investment.

 

Benefits of a Fund:

Diversification

A diverse investment portfolio is important with any kind of investment. With the uncertainties and exploding competition in the cannabis industry, diversification is a necessity. Companies now are generally looking for minimum commitments anywhere between $50,000 to $200,000 so someone looking to invest $200,000, for example, will not be able to participate in enough investments to achieve real diversification. Spreading the risk among 8-12 companies would be ideal, and pooling money together in a larger funding vehicle allows for that without individually having to put up a million dollars or more.

Term Sheet Negotiation

Investors aren’t the only ones that see the opportunity in cannabis. The individual companies see the coming years as more lucrative than anyone else, and they have put in the sweat equity to prove it. Consequently their valuations often reflect a lot of potential value that can be much higher than actual current value. Individual investors – again around that $50,000 to $200,000 point – might not have the negotiating power to secure a better valuation which means their dollars would purchase less equity and/or lower return. Once again, pooling money into a larger fund creates advantages, this time in leverage. A single entity controlling a large investment amount will have more negotiating power than several smaller individuals.

Expertise/Resources

One of the things that makes the cannabis industry so potentially lucrative is that it touches so many other industries: software development, technology, agriculture, retail sales, research, etc etc. It would be very difficult for an individual to amass expertise in all of these fields along with having the financial experience to evaluate the business side of each company. Additionally laws across the nation are constantly shifting. Researching and vetting companies and keeping up with the industry is a full-time commitment, and vehicles whose principal occupation is investing in this sector exist to handle this work.

Deal Flow

There are good companies in the cannabis industry, but finding them can be like looking for a needle in a haystack. You often have to sift through hundreds of companies to find ones with the idea, the team, the experience, and the plan to make investment worthwhile. Research, going to conferences, making connections, and being a public enough face that good deals search for you is yet another enormous commitment of time and money.

 

Considerations of Investing in a Fund:

Management Fee

Expertise, travel, accountant fees, and legal fees are necessary expenses and with investment vehicles these costs are paid by the investors, usually in the form of either a budgeted fee or 2% of committed capital.

Decision Making Authority

In addition to the management fee, the benefits listed above come at the cost of some authority as to which companies will be selected. Individuals obviously have 100% of the decision making power with their dollars, but once money is committed to a fund some of that is ceded to the firm. This may not be a negative, however, as the investor is able to rely on the firm’s industry knowledge and expertise.

Illiquidity

Committed funds are not liquid investments. Once the capital is called it is often working – and inaccessible – for a period of three, five, eight or more years. Investors should understand this before putting money into a fund.

 

As mentioned earlier, individual investment is absolutely possible, and groups like the ArcView Investor Network take care of a lot of the research and deal flow legwork – for a cost. Folks with the time to commit, a large amount of money, and a larger appetite for risk are certainly able to have an impact in funding in the cannabis space. For those with interest and capital but without the time and the expertise there are already several options to help you participate in the industry without sacrificing your piece of mind.

Read more

Salveo Capital Hosts Two Lunch Seminars on Cannabis Investment

Marijuana-focused investment firm Salveo Capital is hosting two lunch seminars for people interested in learning about the current state of the legal cannabis industry. The events will take place in Chicago on September 2 and September 16 from 11am - 1pm. Stop by for a primer on the challenges and great opportunities available in legal marijuana.

Marijuana-focused investment firm Salveo Capital is hosting two lunch seminars for people interested in learning about the current state of the legal cannabis industry. The events will take place in Chicago on September 2 and September 16 from 11am - 1pm. Stop by for a primer on the challenges and great opportunities available in legal marijuana.

R.S.V.P. today as space is limited. 

Read more

Recapping the First Salveo Capital Investment Summit

Salveo Capital hosted its first Marijuana Investment Summit last Wednesday in Chicago. A packed room of curious individuals spent the day learning about the potential opportunities and potential pitfalls of investing in the legal cannabis industry.

Salveo Capital hosted its first Marijuana Investment Summit last Wednesday in Chicago. A packed room of curious individuals spent the day learning about the potential opportunities and potential pitfalls of investing in the legal cannabis industry.

In the opening address managing principal Alex Thiersch spoke on the enormously bright future for those who get into the industry now, before the ground floor has even been built. His talk ranged from the fledgling nature of business infrastructure, to the very recent influx of individuals with past successes in non-marijuana industries, to the changing demographics of the cannabis consumer. 

Though the industry experienced 74% growth in 2014 and legal cannabis sales represented a $2.7 billion market last year, Alex said that these numbers were only the tip of the iceberg. This "green rush" could be an amalgam of the gold rush, the oil boom, and the end of alcohol prohibition all in one.

Scott Miller, Salveo Capital's Chief Financial Officer, then presented on the state of the legal marijuana market. He outlined the history of the marijuana business in the United States from the Marihuana Tax Act of 1937 to the Controlled Substances Act, all the way up through the Colorado medical and adult use markets of today. He described how these laws shaped the market today, and how the transition to legality has played out so far.

Scott spoke both as a member of the Salveo Capital team and as someone who has personally been researching investment in the cannabis industry, and gave an investor's look at the qualities of the companies and the types of deals available right now.

 

Director of Communications Eric Atienza spent the next session walking through the current federal and state legal landscape, and briefly projected how that landscape might change over the next few years. He spent time going over the implications of the Cole Memo and the FinCEN guidelines before touching on the Rohrabacher Amendment to the House spending bill, and bills currently in committee in Congress.

He then went into a quick breakdown of the current states with medical and adult use laws, and which states were the most likely to adopt new legalization laws through 2016.

 

The final presentation of the morning featured managing principal John Dohm explaining the benefits and considerations of investment as an individual versus as part of a larger investment vehicle. From liquidity to diversification to negotiating strength, John described the differences between various ways of investing in marijuana.

He also touched on a few of the other firms in the space, and the pros and cons of those models versus those of a committed fund.

 

The afternoon session opened with an introduction to the Salveo Capital team and a breakdown of its particulars. Alex and fund attorney Gary Jungels went over the history of Salveo, its accomplishments, and its legal structure. Three of the best up-and-coming companies in cannabis finished the day, showcasing the increasing sophistication of the cannabis space and the sort of savvy, professional, successful individuals that are now entering the marketplace.

The goal of the Salveo Capital Marijuana Investment Summit was to answer questions about investment in the burgeoning marijuana industry. At a time when there's so much change happening at the state and federal levels, and when there's such a dearth of information available to potential investors seminars like this can do much to allay fears and build the financial base of the legal cannabis industry.

Read more

Salveo Capital's Alex Thiersch to Speak at Cannabis World Congress & Business Expo in Los Angeles

Alex Thiersch, one of Salveo Capital's managing principals, will be speaking at the Cannabis World Congress & Business Exposition in Los Angeles on September 18. His talk, “Branching Out From Counterculture,” will focus on why and how the cannabis industry should move into the mainstream.

Alex Thiersch, one of Salveo Capital's managing principals, will be speaking at the Cannabis World Congress & Business Exposition in Los Angeles on September 18. His talk, “Branching Out From Counterculture,” will focus on why and how the cannabis industry should move into the mainstream.

"There’s a huge opportunity to expand the demographics of cannabis, and we just need the will to do it.”

“It’s time for the industry to get a corporate facelift,” said Thiersch. “There are markets that are not being targeted at all right now, like women, middle-aged professionals, and retirees. There’s a huge opportunity to expand the demographics of cannabis, and we just need the will to do it.”

While stoner brands and cannabis counterculture will always exist, Thiersch said, the greatest profits in any industry come from a high volume of casual consumers, not from hardcore enthusiasts. He added that in addition to strict financial considerations there are other tangible benefits to taking a more business-like approach to industry.

“Every company affects how people view the entire industry and projecting a more sophisticated, button-down image makes it easier to attract voters and legislators to advance legalization across the country,” he said.

Initial steps that Thiersch suggested include building brands that are less marijuana-centric, partnering with individuals that have had success in traditional businesses, and establishing standard operating procedures focused on strict legal compliance. He added that leaders in the cannabis space should be at the forefront of regulation so any laws governing legal marijuana companies would be well-informed and fully protective of patients, customers, and businesses.

The Cannabis World Congress & Business Exposition is sponsored by the International Cannabis Association and is one of the largest events in the marijuana industry. It will be held at the Los Angeles Convention Center September 16-18. George Zimmer will be giving the keynote speech.

Read more

4 Tips for Cannabis Branding

Now that cannabis is legal in nearly half of the U.S, American cannabis companies are facing something they’ve never had to face before: creating memorable and lasting brand identities. Legalization has created a need for brands for the first time among companies that produce, process, and sell cannabis and the green boom has birthed countless ancillary businesses focused on the cannabis space. As this industry moves forward these tips should help to create powerful, far-reaching, and long-lasting cannabis brands.

Now that cannabis is legal in nearly half of the U.S, American cannabis companies are facing something they’ve never had to face before: creating memorable and lasting brand identities. Legalization has created a need for brands for the first time among companies that produce, process, and sell cannabis and the green boom has birthed countless ancillary businesses focused on the cannabis space. As this industry moves forward these tips should help to create powerful, far-reaching, and long-lasting cannabis brands.

1)   Identify Your Target Market

The variance in state laws ensures that, for now, companies in different parts of the country will have to target different consumers. For example, dispensaries in Illinois or New York with their highly limited patient lists will be targeting a very different consumer than a dispensary in Los Angeles. Additionally, as legalization spreads and public opinion shifts, businesses have the opportunity to target more demographics than are traditionally associated with cannabis. The customer base is greying as baby boomers increasingly discover (or re-discover) its medicinal properties, and women are increasingly becoming a consumer demographic. Are you consumer-facing or business-to-business? How niche is your product? How cannabis-forward are your ideal customers?

2)   Center Your Brand Around an Idea, Attitude, or Persona – Not a Product

There are a lot of companies out there with names like Greenleaf Greenery or similar that seem to be trying to establish themselves as simply The Marijuana Company. This has worked for some so far in such a young industry, but in the long run it’s difficult to succeed and expand as a product brand unless you can actually establish yourself as the Marijuana-est of all the Marijuana Companies. There are hundreds if not thousands of cannabis businesses out there, so you need some other distinguishing feature for your company’s face. Nike makes money from selling shoes, but it sells athleticism and near-obsessive competitive drive. Gillette makes money from razors, but it sells masculinity. Apple makes money from computers and iPhones, but sells creativity and individuality. What are you selling?

3)   Live Your Brand Identity

Your brand is more than your name and your logo. Yes, these are very important and should both be memorable and easy to understand, but your brand encompasses every public-facing aspect of your business. The design of your website, the content of your social media, and the look and copy on all of your marketing collateral should all speak in the same voice – whether that be quirky, ironic, professional, or clinical. Consistency is key.

4)   Don’t Neglect Personal Contact

The web, social media, and the press are powerful tools to get the words out about your business, but oftentimes personal connections still have the strongest and longest-lasting impact. No matter how sophisticated and successful your marketing, it only takes one bad experience with a sales associate to spoil everything. Conversely, even a business with a limited marketing presence can make huge gains with excellent human outreach. Be seen in your community. Make connections. Create positive, personal impressions.

Competition is only increasing in this industry. Entrepreneurs with new products and new ideas are entering every day. A strong brand can elevate your business above the crowd, and can serve not only to attract new customers but create loyalty among existing ones. The youth of the legal cannabis market, along with its legally enforced regionality, has meant that so far there are no dominant brands. Will you take the opportunity to be the first?

Read more

Marijuana Consumers Going From Green to Grey

While the common idea of a marijuana consumer is the stereotypical stoner – young, unattached, irresponsible – the spread of legalization combined with recent medical research has led to a greying of the traditional cannabis demographics. Though younger generations are pushing marijuana into the mainstream, older Americans are beginning to shake off the effects of Reefer Madness and are coming around to the benefits of marijuana.

While the common idea of a marijuana consumer is the stereotypical stoner – young, unattached, irresponsible – the spread of legalization combined with recent medical research has led to a greying of the traditional cannabis demographics. Though younger generations are pushing marijuana into the mainstream, older Americans are beginning to shake off the effects of Reefer Madness and are coming around to the benefits of marijuana.

According to a recent Pew Research poll, support for full marijuana legalization among Baby Boomers has reached 50%, quickly approaching the approval rating held by Generation X.

“My story is the story of so many people who use each day. And so what? What’s the issue? What will it lead to?”

Certainly there are some people that have been consuming consistently through their lives despite legal and social prohibitions, like Catherine Hiller who recently published a book recounting a lifetime of smoking marijuana. A smoker for the better part 50 years – taking breaks for pregnancy – Hiller sought to break the taboo associated with the drug by telling her story of a life lived mostly normally.

“I wanted to show people that smoking marijuana did not make me hit rock bottom,” Hiller, 68, said. “My story is the story of so many people who use each day. And so what? What’s the issue? What will it lead to?”

Yet more of this cannabis resurgence is made up of folks that smoked recreationally in their youth and gave it up as they prioritized career and family. Alec Tyson, senior researcher of the Pew study, puts it this way: “Lifecycle is part of it. They went from young adults to parents and adults with family and the times had something to do with it. There was the famous war on drugs under the Reagan Administration and the 1960s and 1970s were a different time in this country than the 1980s. The political climate of the country and rhetoric coming from leaders has some impact."

“They’re like kids in a candy store. They come in and they’re, like, 55 and they’re blown away by the options.”

Now that the war on drugs is waning – with general support increasing across demographics and with decriminalization and legalization spreading throughout the country – these smokers are returning and finding a market unbelievably more robust than the one they left. “They’re like kids in a candy store,” said Alison Ledden, marketing director at The Farm, a dispensary in Boulder, Colorado. “They come in and they’re, like, 55 and they’re blown away by the options.”

Still other older consumers are seniors interested in the medicinal possibilities that have been unveiled in the last two decades. As a pain reliever, and as a treatment for a whole host of illnesses medical cannabis is often an alternative that is natural, does not carry the dangers of prescription painkillers, and without the debilitating side effects of pharmaceuticals.

The San Francisco Gate writes of a cannabis club at the Rossmoor senior community in Walnut Creek, California, “… club members quickly bonded over their shared disappointment in pharmaceuticals they had been prescribed. Either the pills weren’t helping them or the side effects were more onerous than their actual ailments.”

For a variety of reasons older consumers are increasingly coming around to the growing legal marijuana industry. Culturally and economically this generation will have an enormous impact on how marijuana is seen and sold, and cannabis companies would be wise to realize this and make an active effort to cater to this booming market. 

Read more

Salveo Capital To Host Marijuana Investment Summit

This Summit will outline not only the tremendous potential of cannabis, but will also outline the legal and business pitfalls. The Salveo team will spotlight the difficulties of investing in cannabusinesses and will highlight the ways savvy investors are overcoming the hurdles of such a young market. Additionally, representatives from businesses from several sectors of the industry will be on hand to provide a glimpse at the best of the companies fundraising in the marijuana space.

The Salveo Capital Marijuana Investment Summit is an invitation-only event open only to accredited investors. Contact us to inquire about an invitation to learn about investment in the cannabis space.

summit.jpg

The Salveo Capital Marijuana Investment Summit will provide attendees with the knowledge to confidently invest in the next great American industry.

With an astronomical 74% growth rate in 2014 legal marijuana is the fastest growing industry in the United States, and while its current $2.7 billion market value sounds impressive it’s only the beginning. As legalization spreads to new states, as markets begin to open, and as the federal governments eases its restrictions the limitless opportunities of this nascent industry will be revealed.
 
Opportunities to build dominant, national brands; to have a hand in constructing an industry from scratch; to get in before the ground floor is even constructed.
 
As with any investment there are risks and challenges. This Summit will outline not only the tremendous potential of cannabis, but also the potential legal and business pitfalls. The Salveo team will spotlight the difficulties of investing in cannabusinesses and will highlight the ways savvy investors are overcoming the hurdles of such a young market. Additionally, representatives from businesses from several sectors of the industry will be on hand to provide a glimpse at the best of the companies fundraising in the marijuana space.

The Salveo Capital Marijuana Investment Summit is an invitation-only event open only to accredited investors. Contact us to inquire about an invitation to learn about investment in the cannabis space.

 

The Salveo Capital Marijuana Investment Summit

When: August 12, 2015

Where: Salveo Capital HQ in Chicago

Contact for more information

 

Topics will include:

  • A Green Rush? More Like a Green Explosion - The legal marijuana market is ready for an explosion unlike any we’ve seen in our lifetime. From growing and selling the plant to cannabis tech, research, and development, billion dollar ideas are being hatched right before our eyes. Right now there is an opportunity to invest in one of the most exciting and profitable industries of all time, but this opportunity won’t last forever. Even now, the clock is ticking.

 

  • The State of the Marijuana Investment Market: The Good, the Bad, and the Ugly - Think investing in marijuana is easy? Think again. The industry is fraught with bad investments - from entrepreneurs with a lack of business acumen, businesses with unreliable and untrustworthy employees, to an unsophisticated and cash-based infrastructure. In this talk we address the many problems that accompany any attempted foray into the market.

 

  • Risky Business? The Legal Risks of Investing in Legal Marijuana - Is there any risk of prosecution? Seizure of assets? What truly are the risks of investing in marijuana? The Salveo legal team walks you through the state of the law, the latest developments, and the risks (or lack thereof) of investing in legal marijuana.

 

  • To Fund or Not to Fund? The Benefits of Working With an Investment Fund in the Marijuana Market - So you’ve decided you want to invest in marijuana - Now what? In this presentation we discuss the pros and cons of investing in a diversified fund versus an individual company. We will also explore the landscape of different investment vehicles available.

 
Salveo Capital is a noted thought leader in cannabis investment and has been featured as such in publications such as:

Read more