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"The administration would be better suited working with members of Congress to reform outdated sentencing laws," the statement reads.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."

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Scientific Evidence for Cannabis Effectiveness on Elderly

A new published clinical study out of Israel offers scientific evidence that the therapeutic use of cannabis can be a safe and effective treatment for elderly people, and is often a factor leading to the decreased use of other drugs, including opioids. 

A new published clinical study out of Israel offers scientific evidence that the therapeutic use of cannabis can be a safe and effective treatment for elderly people, and is often a factor leading to the decreased use of other drugs, including opioids. 

The groundbreaking article, "Epidemiological characteristics, safety and efficacy of medical cannabis in the elderly" published on February 7, 2018 in the European Journal of Internal Medicine, is the first of its kind. The study surveyed patients above 65 years of age who received medical cannabis at Tikun Olam clinics in Israel from January 2015 to October 2017.  All 2,736 patients, with a median age of 74.5 years, were prescribed one or more of Tikun Olam's proprietary cannabis strains, each developed over a number of years to address specific symptoms. The main strains used in the study were Erez, (53.2%), Avidekel (33.4%), Alaska (25.7%), and Midnight (20.4%). 

The most common indications for cannabis treatment were pain (66.6%) and cancer 60.8%). After six months of treatment, 93.7% of the respondents reported improvement in their condition and the reported pain level was reduced by half -- from a median of 8 on a scale of 0–10 to a median of 4. Adverse side effects were minor and rare and included dizziness (9.7%) and dry mouth (7.1%). 

Importantly, after six months, 18.1% of the patients reduced their dose of opioid analgesics -- or stopped using them entirely.

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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.

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German Police Association Calls for Complete Legalization

German police association advocates for a complete decriminalization of cannabis use.

The Association of German Criminal Officers (BDK) has spoken out in favour of ending the ban on cannabis and has called for the decriminalization of all use of the drug.

"The prohibition of cannabis has historically been seen as arbitrary and has not yet been implemented in an intelligent and effective manner,” the head of BDK, André Schulz, told Bild newspaper on Monday.

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Oregon Wholesale Pricing At Record Lows

Cannabis Grower Pain Grows With Cannabis Pricing Fall.  MJ Biz Daily reports that wholesale pricing for outdoor trim in Oregon has fallen to as little as $50 pound.   Pricing pressure leaves little margin for profit, and firms not vertically integrated with retail stores face greater difficulties as they face fewer buyer options.

Significant wholesale pricing pressure continues to be financially devastating to growers.  MJ Biz Daily reports of wholesale trim pricing has fallen as low as $50/lb.   This extreme pricing pressure is exacerbated following the large amount of outdoor grown product that is available for sale after the fall harvest.

Per Cannabis Benchmarks U.S. Spot Prices Observations as of January 19, 2018, weighted average outdoor wholesale pricing for flower is $964, and $1,292 nationally for both outdoor and indoor.

Michael Gruber, Managing Partner of Salveo Capital, an active investor in the cannabis states that "...Wholesale pricing in general within mature markets continues to decrease significantly making profitability difficult for most growers.  Successful growers will continually need to be large volume, highly efficient low cost and high yield producers, with a brand that resonates with consumers.  Furthermore, vertical integration will be important for many, especially in certain state markets."

 

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Members of Congress Urge Extended Protection of State Medical Cannabis Laws

On Nov. 28, 2017, a bipartisan group of federal lawmakers sent a letter to congressional leaders, urging them to extend protection of state medical cannabis laws in the 2018 appropriations bill via a provision that would put language in the spending bill to prevent the United States Department of Justice from using federal funds to prosecute those in compliance with state medical cannabis laws.

With the 2017 appropriations bill expiring on Dec. 8, the letter, spearheaded by Reps. Dana Rohrabacher, R-Calif., and Earl Blumenauer, D-Ore., was sent on behalf of 66 members of Congress, in the hopes of securing protection for state medical cannabis laws in the 2018 appropriations bill, which has yet to be finalized.

Should this protection not remain in place, and any moves by AG Sessions or the Justice Department for crackdowns, we will likely see a major fight by states exercising their states rights.

On Nov. 28, 2017, a bipartisan group of federal lawmakers sent a letter to congressional leaders, urging them to extend protection of state medical cannabis laws in the 2018 appropriations bill via a provision that would put language in the spending bill to prevent the United States Department of Justice from using federal funds to prosecute those in compliance with state medical cannabis laws.

With the 2017 appropriations bill expiring on Dec. 8, the letter, spearheaded by Reps. Dana Rohrabacher, R-Calif., and Earl Blumenauer, D-Ore., was sent on behalf of 66 members of Congress, in the hopes of securing protection for state medical cannabis laws in the 2018 appropriations bill, which has yet to be finalized.

“The provision, which first became law in December 2014, has successfully protected patients, providers, and businesses against federal prosecution, so long as they act within the confines of their state’s medical marijuana laws,” the group of lawmakers wrote in its letter.

While the group has the support of 66 members of Congress, U.S. Attorney General Jeff Sessions personally asked Congress this past May to oppose the provision.

 

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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.

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Baker Acquires GrassWorks Media

Baker, leader CRM vendor to the cannabis sector, has acquired Glassworks Media, to expand its reach in the market.   Salveo Capital is an investor in Baker.

Salveo Capital's portfolio company just announced an acquisition to further expand its market lead in providing CRM and loyalty reward services to the cannabis industry.
Baker Buys Grassworks Media, Expanding Cannabis Dispensary Base to 700
https://www.newcannabisventures.com/baker-buys-grassworks-media-expanding-cannabis-dispensary-base-to-700/

 

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Michael Gruber Participating at Agri Investor Forum Oct 11th in Chicago

Michael Gruber, Managing Partner of Salveo Capital, will share insights into the cannabis industry landscape and opportunities for investment.

Salveo Capital Managing Partner Michael Gruber will participate in the Insight into Cannabis Investing panel at the Agri Investor Forum to be held in Chicago on October 11th.

With an ever acceleration of legalization both domestically in the United States on a state-by-state basis, as well as internationally, increased focused is being placed on cannabis, clearly one of the world's highest valued cash crops.

Michael Gruber will help lead a discussion surrounding the cannabis eco-system, and the investment opportunities that are available to investors, including family offices and institutional investors.

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Feds Hands Tied From Cannabis Enforcement Until December

Temporary reprieve for cannabis businesses.  

A key federal law protecting the medical marijuana industry from interference by the U.S. Department of Justice has been extended until Dec. 8 under the provisions of an  approved Friday by Congress, 

The Rohrabacher-Blumenauer Amendment will now remain in place for at least several more months. The amendment prohibits the U.S. Department of Justice from using federal funds to interfere with state medical marijuana programs, or from prosecuting MMJ businesses compliant with state law.

By John Schroyer

A key federal law protecting the medical marijuana industry from interference by the U.S. Department of Justice has been extended until Dec. 8 under the provisions of an emergency aid package approved Friday by Congress, Marijuana Business Daily has learned.

The Rohrabacher-Blumenauer Amendment – which has had to be renewed annually by Congress and was formerly known as Rohrabacher-Farr – was set to expire Sept. 30.

However, it will now remain in place for at least several more months. The amendment prohibits the U.S. Department of Justice from using federal funds to interfere with state medical marijuana programs, or from prosecuting MMJ businesses compliant with state law.

“That’s right … extended through Dec. 8,” a spokeswoman for U.S. Rep. Earl Blumenauer, one of the sponsors of the amendment, wrote to Marijuana Business Daily in an email.

The amendment’s future was thrown into doubt this week when the House Rules Committee blocked the Rohrabacher-Blumenauer Amendment – along with several other cannabis amendments – from receiving floor votes.

But an emergency aid package for victims of Hurricane Harvey also extended the current federal budget, meaning that the Rohrabacher-Blumenauer Amendment has received at least a stay of execution.

President Donald Trump signed the package into law Friday.

Amendment’s third reprieve

This is the third time the amendment has remained in place by default because Congress has kicked the can down the road on the federal budget: It survived two previous expiration dates in April and May, also without being voted on apart from the entire federal budget.

That, however, means the amendment’s future is still in doubt, said Massachusetts-based cannabis attorney Bob Carp.

“I do think it’s a coin flip. It’s only a three-month extension,” Carp said. “It makes me a bit uneasy.”

In the face of such federal uncertainty, and with a U.S. attorney general who is openly anti-marijuana, the marijuana industry must “start circling the wagons,” Carp added.

Time to ‘join forces’

“We need, really, to join forces. There are too many disparate groups,” he continued. “If we pooled the money, lobbied and did what tobacco and some of the other successful vice interests have done, I think marijuana would have a far better chance.

“Right now, we’re fractured, with people representing their own interests. And it’s dangerous to the entire industry.”

Bill Piper, senior director of national affairs for the Drug Policy Alliance, wrote in an email to Marijuana Business Daily that “this is good news, but we have to win the fight in December.

“We also need real reform – an actual change in federal law, so we don’t have to have this fight every few months.”

Marijuana Policy Project’s executive director, Rob Kampia, added via email that “If any allies out there are celebrating, they shouldn’t be.”

Kampia said the fate of the Rohrabacher-Blumenauer Amendment is now going to be in the hands of a joint House-Senate conference committee charged with reconciling differences between the two chambers’ federal budget bills. So the amendment is still very much in danger.

“Now we must pray that one of the four good guys on that conference committee will promote our marijuana amendment,” Kampia said, and called the situation “the nightmare scenario we’ve been scrambling to avoid since May.”

In a joint statement issued Monday, Reps. Dana Rohrabacher and Blumenauer said, “While this action provides a measure of certainty for the millions of medical marijuana patients and the clinics and business that support them, much more needs to be done… Ultimately, we need permanent protections for state-legal medical marijuana programs, as well as adult-use. Prohibition is a failed policy.”

John Schroyer can be reached at johns@mjbizdaily.com

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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.'

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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

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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.

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Salveo Entire Portfolio Selected as Marijuana Trailblazers by CB Insights

Salveo portfolio companies: Wurk, Front Range Biosciences, and Headset

In a report just released by CB Insights named, Trailblazers 2017: Innovators in the Marijuana Industry, all 3 existing portfolio companies were selected as Trailblazers across 3 separate categories.

Salveo companies listed as trailablazers included: Wurk (Compliance), Front Range Biosciences (Next Gen Cultivation), and Headset (Business Intelligence).   

 

 

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CO Governor Hickenlooper Interview on Cannabis Legalization

CO Governor on Cannabis Legalization

CO Governor John Hickenlooper provides more detail in an interview with his thoughts on cannabis legalization in his state, and how he hasn't seen anything negative regarding an increase in "kid usage" which was one of his greatest worries.

As the Governor explains, people to his surprise have reacted in a much more responsible fashion than he had originally envisioned.

Each of the states need to continue to watch the effects of usage after legalization.   For legal professional operations, it is incumbent upon everyone to make sure the product is safe, and that there are the necessary protections against under-age access, and that there is not illegal diversion of product.

As described, the population continues to overwhelming support legalization and decriminalization, and only upon such success we the proper research be able to be conducted on where and how cannabis is medicinally beneficial.

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What the White House doesn’t know about marijuana policy

During today’s White House briefing, Press Secretary Sean Spicer was asked about the Trump administration’s position on marijuana enforcement. This issue has left marijuana advocates, business owners, investors, patients, and consumers wondering what the president’s true intentions are. As 28 states and DC have legalized medical marijuana and eight states and DC have legalized recreational marijuana, the administration’s position is one that will affect many Americans.

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During today’s White House briefing, Press Secretary Sean Spicer was asked about the Trump administration’s position on marijuana enforcement. This issue has left marijuana advocates, business owners, investors, patients, and consumers wondering what the president’s true intentions are. As 28 states and DC have legalized medical marijuana and eight states and DC have legalized recreational marijuana, the administration’s position is one that will affect many Americans.

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As Pot Prices Plunge, Growers Scramble to Cut Their Costs

As Pot Prices Plunge, Growers Scramble to Cut Their Costs
by Jack Kaskey - Bloomberg
Scotts and other agricultural-tech companies tap new market; Harvesting 1,700 pounds of Dirty Girl and Cinderella's Dream
The increasing supply of legal marijuana is turning into a major buzz kill for growers as prices plunge -- and an opportunity for companies that can help cut production costs.

by Jack Kaskey - Bloomberg Scotts and other agricultural-tech companies tap new market; Harvesting 1,700 pounds of Dirty Girl and Cinderella's Dream.

The increasing supply of legal marijuana is turning into a major buzz kill for growers as prices plunge -- and an opportunity for companies that can help cut production costs.

Prices are tumbling as formerly illicit cultivators emerge from the shadows to invest millions of dollars in massive pot factories. In Colorado, the average price sought by wholesalers has fallen 48 percent to about $1,300 a pound since legal sales to all adults started in January 2014, according to Cannabase, operator of the state’s largest market. Supply is surging as growers expand and install the latest agricultural technology.

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Chill Out!

Take me out to the ball game,

Take me out with the crowd;

Buy me some peanuts and Cracker Jack,

I don’t care if I never get back.

Let me root, root, root for the Cubbies,

If they don’t win, it’s a shame.

For it’s one, two, three strikes, you’re out,

At the old ball game.

Take me out to the ball game,

Take me out with the crowd;

Buy me some peanuts and Cracker Jack,

I don’t care if I never get back.

Let me root, root, root for the Cubbies,

If they don’t win, it’s a shame.

For it’s one, two, three strikes, you’re out,

At the old ball game.

The Chorus song at all Cubs (#Cubs) games during the 7th inning stretch. Bill Murray did a nice rendition as Daffy Duck on Friday night, and with Chicago-native Vince Vaughn singing for us on Saturday.

As you may have heard, the Chicago Cubs are in the World Series for the first time since 1945. There is plenty of blame to go around, but if you spend enough time listening to people, you usually hear about that darn Billy Goat, the Durham error, or the Bartman catch. The story gets worse as you have to go back to 1908 for the last time that the Cubs won a World Series Championship –the longest active championship drought faced by a major U.S. sports franchise

It’s 3-1 in favor of the Cleveland Indians in this 2016 World Series, and the Cubs, and their tortured fans around the world are clearly worried. The Cubs are in a hole, a very deep one in fact, but teams have come back from this type of deficit before and won, with last one being the Kansas City Royals in 1985.

I hear the pain. I see the misery. But, you gotta have faith! (#flythew) No need to get all bent out of shape. Just chill out, or in today’s modern world, the hippest thing to do would be to take a hit, toke, dab, infused candy, or whatever your preferred method of delivery of marijuana.

More than half of the United States - 25 states plus the District of Columbia (D.C.) – have some form of legalization of marijuana (#marijuana). Four states (Colorado, Alaska, Oregon and Washington) plus D.C. allow full adult use.

In 9 short days, on Nov 8, 5 states (California, Nevada, Arizona, Maine, and Massachusetts) will vote with on full adult use, and 4 additional ones will vote on medicinal use, with Florida being the one of highest promise and focus.

With close to 70 years of federal prohibition of the plant, there has been little to no research done. Surprisingly, Israel is often the country that is mentioned as being the most advanced in its research. Research has indicated that there are over 400 chemical compounds, including over 100 cannabinoids, including the often mentioned THC (psychoactive element) and CBD. That being said, there are thousands of years of documented cannabis use, and the calming and relaxing effects from use.

Based on the long-term illegality of marijuana, potential users were at the whim of the black market to provide them with product. You had little to no choice, you took what you were given: strain? where it was grown? THC%?, and even more worrisome, what if any pesticides were used? Things have changed.

Legalization is wonderful!

  1. Selection

Your choice as a consumer is mesmerizing. You can easily find over 100 choices, amongst flower, concentrates, and edibles. For flower, you can chose amongst sativa, indica, and even hybrid strains. I am sure terms such as shatter, wax, and resin are even less familiar. It can be information overflow, but luckily the bud tenders (essentially your individual sales person at the legalized dispensary) will help find a solution that fits your needs and preferences.

  1. Strength

This ain’t your father’s marijuana. Today’s product is considerably stronger, with a significant amount of this through advanced strain genetics and breeding programs. THC % can easily be found above 20% in flower, and there are a good number of concentrate products which have THC % above 70%.

  1. Safety

Every legalized cultivation facility needs to comply with its state specific rules relating to testing and certification. This testing is often done by requiring the submission of sample materials from harvests that test for a variety of things, including but not limited to: microbiological contaminants and mycotoxins, heavy metals, residual solvents, pesticides, THC, and CBD.

Oh, how lucky we are… and things only get better once other states adopt laws supporting legalization, and ultimately when the federal government wakes up and ends federal prohibition.

So, back to the good old Cubbies who are in a difficult pressure spot.

Illinois is one of the states that has already legalized medicinal use of cannabis the Compassionate Use of Medical Cannabis Pilot Program Act with program that started January 1, 2014, and was to sunset in 2018, but which recently had its program extended through July 1, 2020. To gain access to the medicine, patients need to apply for a medical card, and some of the requirements include: getting a physician to verify that you have a qualified debilitating medical condition, be a resident of Illinois, select your dispensary from which you will need to purchase your medicine, and get fingerprinted, while waiting to get approved after submitting your application.

Sound convenient… not really.

For Indians fans, Ohio has legalized it as well earlier this year, but the situation is much worse, and with most of the rules and regulations will not likely be formalized until deep into 2017, and with product not likely to be available until mid 2018. So, if the Cubs do start coming back, you Indians fans have no legal way to chill yet.

If you are one of the approved patients in IL or other legal states, you have the ability to medicate from all of this stress.

For the rest of us, we unfortunately have to find less pleasant ways to chill.

So, relax, have faith, and things will get better.

Go Cubs Go!

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Local and National Implication of Election 2016

November 8 is approaching quickly and many are speculating what the results of the election will mean for cannabis going forward. Now that the DEA has re-examined the scheduling of cannabis and decided not to reschedule, the concern has shifted to what policy changes might occur in 2017.

Local and National Implication of Election 2016

November 8 is approaching quickly and many are speculating what the results of the election will mean for cannabis going forward. Now that the DEA has re-examined the scheduling of cannabis and decided not to reschedule, the concern has shifted to what policy changes might occur in 2017.

State Ballot Measures

Though the focus in the media has been largely on Presidential politics, when it comes to cannabis in the U.S., the states have lead the way. Next month, five additional states - California, Arizona, Massachusetts, Maine, and Nevada - will vote on whether or not to join Colorado, Washington, Oregon, and Alaska in fully legalizing the adult use of cannabis. Currently, each state is polling in favor of legalization, however the Washington Post points out that the various polls are showing a wide degree of variance depending on the wording of their questions. It seems, at this point, that California and Nevada are likely "yes" votes along with Maine to a lesser extent, while Massachusetts and Arizona are still close enough to be in the toss-up category.

Though the Florida legislature passed a very limited medical cannabis bill last year, an amendment for a more open medical cannabis program will be on the state's ballot. This is the same bill that failed to pass in 2014, requiring 60% of the vote and only receiving 58%. The latest polls currently show this iteration of the amendment polling above 70% in the state.

Congress

Congress has gone back and forth with regard to cannabis in 2016. It once again passed the Rohrabacher amendment, barring the Department of Justice from using its funds to interfere with state-legal cannabis programs. However, Congress did not pass bills or amendments related to opening medical cannabis to veterans, increasing protections for banks, and allowing the District of Columbia to use its own funding to implement an adult use program that voters have already passed.

At the very least, it seems that Congress will continue to allow states to take the lead on cannabis, since the Rohrabacher amendment has passed in each of the last three years, with increasing margins of passage each time.

President

The Presidential election on one hand is the most difficult to analyze because cannabis is viewed so differently among different voting blocs, and candidates often try to hedge their statements to appeal as broadly as possible. On the other hand, every major candidate in the race at the very least has been at least moderately supportive of legal medical cannabis, and has also at least said they would support the right of states to institute their own cannabis laws. It will be interesting to watch what the FDA and DEA do under a new administration given the success that G.W. Pharmaceuticals has reported with its Phase 3 trials of Epidiolex.

Over all, though many were hoping for more clarity at the national level this year, it seems that might be put off for now. At the state level, however, legalization appears to be on the same pace as recent years, and the federal government seems ready to let the states continue on their course.

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