Attorney General Jeff Sessions’ recent attempt to slow legal progress in the cannabis industry will have no effect on industrial hemp, which has support in Washington, according to industrial hemp industry leaders.

Legislators moved to support industrial hemp as recently as December, when the Industrial Hemp Banking Act (H.R. 4711), was introduced in the United States House of Representatives by Rep. Andy Barr of Kentucky and co-sponsored by Rep. James Himes of Connecticut and Rep. Jared Polis of Colorado. The bill seeks to ease strict requirements for banks serving the industrial hemp industry, and bar action by federal regulators.

“I’m co-sponsoring the bill because hemp’s potential is boundless, and I want to ensure companies can reap the benefits it has to offer and access customer and financial services like loans, credit card processors and banks,” Rep. Polis told HEMP.

In August, Rep. James Comer of Kentucky introduced the Industrial Hemp Farming Act of 2017, which would declassify hemp as a Schedule I narcotic under U.S. Drug Enforcement Agency policy.

“It’s a huge step forward,” Comer said in a release. “It reclassifies hemp to an agricultural crop like corn or soybeans where it belongs.”

Comer is planning to seek support for his bill in the Energy and Commerce Committee, as well as the House Judiciary Committee, but he said it is possible the bill might be included in the upcoming farm bill, according to DTN/The Progressive Farmer. While he supports hemp, Comer has said he does not support legalization of cannabis and is looking to “differentiate between marijuana and hemp.”

Hemp, Inc. CEO Bruce Perlowin said the ‘Session obsession’ with cannabis really has nothing to do with hemp at all. “The first two days of January, everyone went crazy. Sessions talks about his marijuana obsession, and all the pot stocks drop.

We put out a press release saying – We’re industrial hemp. No matter what the federal government does, it won’t affect us,” Perlowin said.

North Carolina-based Hemp, Inc. (OTC PINK: HEMP) is a global leader in the industrial hemp industry, with the largest multi-purpose industrial hemp processing facility in the western hemisphere.

Perlowin said Washington’s recent support comes from years of educating politicians on hemp, especially emphasizing that hemp is not psychoactive, with a legal limit of under 0.3 percent THC. “For a long time, everyone thought hemp was marijuana. The politicians have been educated,” Perolwin said. “It’s much more accountable when you can’t get high – from hemp we can make rope, clothes, circulation material. Hearst paper mills and DuPont plastic aren’t around – there’s no real pushback to hemp anymore. The public-at-large doesn’t know as much about hemp as the politicians do. We have massive bipartisan support.”

Industrial hemp has state-side support as well. Washington removed hemp plants from the state’s controlled substance list in 2017 and launched an industrial hemp research pilot in 2014, but the program has been inactive due to lack of funding.

In 2017, Arkansas, North Carolina, Pennsylvania and Hawaii launched state-wide industrial hemp pilot programs. Wisconsin passed a law allowing farmers to grow industrial hemp. In New York, universities such as Ithaca and Cornell are running hemp research programs.

Perlowin said Sessions’ move to let the Cole memo expire this month – which removed the cannabis industry’s protections from federal prosecution – has only made political supporters more vocal about cannabis legalization.

“Why did the whole sector [stocks] go up after Session’s obsession came out? The pushback. The governor of Colorado called him a liar. He got pushback from California, and more governors, senators, congressmen. It united everyone in the industry. It has united the movement,” he said.

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Paraguay approved two cannabis products as medicines, allowing cannabidiol (CBD oil) Real Scientific Hemp Oil-X (RSHO-X) and RSHO Blue Label by Medical Marijuana Inc.

While Paraguay has long been known as a world leader in producing black market cannabis, it has been illegal to grow cannabis in Paraguay until just last week.

Paraguay’s congress passed a bill on Dec. 5 creating a state-sponsored system to import cannabis seeds and grow medical cannabis, a decision that followed Peru, Chile, Argentina and Colombia’s medical cannabis legalization. Uruguay has fully legalized growing and selling cannabis for any use, according to Reuters.

This marks only the third botanical cannabis product to be approved as a medicine in the world. Many European countries approved cannabinoid medicine Sativex, an oral spray for MS Spasticity and chronic cancer pain, in 2013.

Epidiloex, a cannabinoid medicine for epilepsy syndromes, has also been approved in Europe and is being considered for approval by the United States’ Food & Drug Administration. There is one other approved cannabis product called Marinol, which treats vomiting symptoms from cancer medications, but it is synthetic versus botanical.

Medical Marijuana, Inc. CBD oil products will be available through Paraguay’s medical distribution channels. The company is the first publicly traded cannabis company in the United States.

Real Scientific Hemp Oil-X is used to treat epilepsy symptoms and chronic pain. It is non-psychoactive with trace amounts of THC.

“This is yet another example of the international trend of acceptance of medical research on CBD for medical use,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus.

“We are continually encouraged by the decisions of governments to permit use of our products for patients suffering from multiple medical indications, where conventional medicine has had modest effects.”

Medical Marijuana, Inc.’s CBD hemp oil products have been used by over 100 citizens in Paraguay with medical indications ranging from cancer, pain, multiple sclerosis, epilepsy and various other neurological diseases, according to a release. In 2016, Real Scientific Hemp Oil became the first medical cannabis product approved and imported for use in Paraguay as a supplement.

“We are a company of firsts, and we are excited about this new historic milestone of being the only company to have a CBD product registered in Paraguay,” said Titus.

Earlier this year, RSHO was also the first cannabis product approved for Brazil and Mexico. Medical Marijuana, Inc. reported a total gross profit of 297 percent compared to Q3 2016, after focusing on international expansion and cannabinoid research this year.

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Canada’s cannabis industry leaders anticipate that U.S. Attorney General Jeff Sessions’ rollback of the Cole memo will have positive effects on the country’s newly regulated cannabis market.

Vancouver-based Medipure Pharmaceuticals CEO Boris Weiss said “It’s been widely reported that industry and investor interest is looking ‘up north’ because of the progressive stance of the Canadian Prime Minister.”

On Thursday, Sessions rescinded the Cole Memo, a policy that allowed for the legal cannabis industry to flourish across the United States, according to AP reports.

“If anything, this only further illustrates that Canada is the best place to conduct research in the cannabinoid field,” Weiss said. “The US has been unable to balance their federal and state laws, whereas Canada has taken a lawfully unified approach to cannabis and cannabinoid molecules that makes working in the regulatory environment safer and more stable.”

Canada will fully legalize marijuana by July 2018, which has been good news for Canada’s cannabis stocks, with the top four producers worth over $7.8 billion.

Canopy Growth Corp. stocks more than doubled in 2017. Aurora Cannabis Inc. more than tripled, Aphria Inc. gained more than 180 percent and MedReleaf Corp. has climbed more than 60 percent since its June debut, according to Bloomberg.

Recreational cannabis sales are estimated to grow to C$6 billion by 2021.

“Canada’s structure for a regulated cannabis market makes it more attractive to investors,” Weiss said. “Most would agree that investments in unregulated or legal gray areas are inherently risker than lawfully regulated markets.”

Medipure Pharmaceuticals operates under strict guidelines of Canadian federal regulatory agencies including Health Canada. The company is creating cannabis-based medicines for pain, Post-Traumatic Stress Disorder and anxiety disorders, and dermatological conditions such as psoriasis.

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“What Medipure Pharmaceuticals is doing with cannabinoid-based prescription drugs for targeted diseases will only prove the true benefits of these molecules and plan to do so in a well-regulated, federally legal environment,” Weiss said.

Fellow Canadian company InMed Pharmaceuticals Inc. shares this viewpoint. InMed CEO Eric Adams said “Certainly, stability on all levels is important and we look forward to things normalizing in the US. Canada has been and will continue to be a leader in all aspects of the marijuana industry, including on the pharmaceutical side, where there is a long track record and depth of knowledge at the regulatory level for cannabinoid compounds.”

By producing cannabinoids in a bacterial biosynthesis system, this pre-clinical stage biopharmaceutical company is developing therapies for multiple diseases, including Epidermolysis Bullosa, Glaucoma, and pain.

InMed‘s pharmaceutical research is coupled with innovative drug delivery systems that have a futuristic feel – recently, the company announced success in creating topical eye drop that forms a “gel-like” lens over the eye, promoting extended absorption through the eye.

“InMed, as a pharmaceutical company, has a very well defined pathway to commercialization which includes stringent regulatory oversight by the FDA,” Adams said. “While overall acceptance of the medical benefits of marijuana by the public-at-large is nice to have, our target audience are physicians and caregivers who treat patients with serious illnesses.”

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In light of Jeff Sessions rescinding the Cole memo, cannabis businesses should focus on compliance with their state and local regulations, according to Los Angeles cannabis attorney Kellsi Booth.

“Attorney General Jeff Sessions rescinded the Department of Justice principles specific to marijuana enforcement that federal prosecutors, states, and cannabis industry participants have relied upon for years,” Booth said.

Sessions reaffirmed that marijuana is a ‘dangerous’ drug and marijuana activity remains a ‘serious crime’ in the eyes of the federal government. In place of the Ogden and Cole memos, Sessions encouraged federal prosecutors to consider the ‘general principles’ governing federal prosecutions in determining which marijuana activities to prosecute.

Booth got her start in the cannabis industry with the Maryland Department of Health, where she helped the Natalie M. LaPrade Medical Cannabis Commission create regulations for their medical cannabis program.

Booth shared this feedback on how cannabis businesses should approach the news.

Are there any actions businesses should take to protect themselves?

As long as marijuana remains a schedule I drug, marijuana businesses are at risk. However, I am certain that states like California and Colorado who have invested significant amounts of time and money into developing comprehensive medical and adult use marijuana programs will not let these businesses go down without a fight.

Businesses should continue to comply with all state laws and regulations, and establish positive relationships with the communities they serve to show that cannabis can be a benefit rather than a detriment. Finally, everyone who believes that marijuana should be legalized should push their federal lawmakers for marijuana law reform.

Can we expect any immediate action from federal prosecutors?

This announcement has created confusion and uncertainty. However, the practical implications of this policy change remain to be seen. Marijuana has always been a schedule 1 drug, and the Obama-era policies did not change that.

Rather, the Ogden and Cole memos spelled out certain enforcement priorities that I believe are largely in keeping with the general federal prosecution guidelines Sessions refers to in his own memo.

Should we anticipate more changes in federal law?

The fact of the matter is federal law is out of touch with reality. “Legal” marijuana is the fastest-growing industry in the United States, and the states have shown that marijuana can be decriminalized and regulated safely and effectively.

This is a wakeup call for Congress to change the antiquated laws and move forward with marijuana law reform.

In the coming weeks, I will be carefully watching to see whether Congress will take a stand or will follow the DOJ’s lead by removing the protections provided for the medical marijuana industry by the Rohrbacher-Blumenauer amendment.

Read Booth’s advice on 8 Factors California Cannabis Businesses Need to Know About State Licensing.

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Attorney General Jeff Sessions has rescinded the Cole Memo, a policy that allowed for the legal cannabis industry to flourish across the country, according to AP reports.

The Obama-era Cole Memo allowed states to make decisions on legal cannabis, without federal intervention or prosecution of cannabis businesses. Sessions’ new stance allows federal prosecutors to enforce federal law prohibiting growing, sales and distribution of cannabis.

Cannabis industry leaders, who long anticipated prohibitive action from Sessions, are prepared for what’s ahead.

Marco Hegyi, CEO of Growlife Inc, a nationally recognized cultivation brand, said he does not anticipate an impact on GrowLife’s business. “The legal rights granted by the California government to its citizens is a political issue that is beyond our control, however, we do not see it impacting GrowLife’s business,” he said. “GrowLife sells ‘picks and shovels’ to cultivators and does not sell the cannabis plant.  Therefore it does not see a reason to have any more legal exposure than the electric company, water utilities or facilities provider in providing its supplies to its customers.”

Concerns as to whether medical cannabis patients and consumers will be vulnerable to federal prosecution remain.

“This is my personal concern,” Hegyi said. “We are dealing with serious health matters where patients may be directly affected.  The potential of turning ailing US citizens into criminals is reprehensible.  Our veterans suffering from PTSD have found legal relief with Cannabis as have cancer patients and children with radical epilepsy.”

I am a businessman not an activist but at some time we must take a stance and not permit bureaucracy to threaten lives and livelihoods. This is not a money issue but one of human rights,” Hegyi said.

Investor confidence in the cannabis industry will be affected, said Avis Bulbulyan, CEO of SIVA Enterprises. “By far, the biggest impact and hit will be to investor confidence. This will probably slow down some of the money that’s been rolling in, at least for the immediate future, but understanding how far the industry has come, and understanding that it’s highly unlikely the industry is going to be shut down, this could be a great opportunity for investors to really get more bang for their buck. It’s going to come down to risk tolerance levels.”

More cannabis industry leaders react:

MARCO HEGYI, CEO of Growlife Inc:

“GrowLife is a public company that sells supplies and equipment for indoor cultivation where its customers range from food to legal Cannabis farmers.  We intend to stand by our customers, the US States and their governors who have used the election process to put a compliant process that helps and protects its citizens.  As the Cannabis industry fully supports these compliance laws, I expect that the White House Administration will also learn to support these laws and the industry, which is diminishing the Black Market for Cannabis and its predatory actions.”

JANE WEST, CEO of Jane West:

“The Department of Justice does not speak for the majority Americans who support legalization and the 29 states where medical or adult-use cannabis is now legal. By rescinding the Cole memo, the old guard is signaling just how terrified they are of this viable and vibrant new industry. This decision does not respect the will of the people, and any money spent prosecuting compliant, state-legal cannabis businesses is money we’re not spending to fight the opiate epidemic. We must continue to support the small businesses, organizations, and industry leaders who are fighting the war on drugs, creating jobs, and generating tax revenue.”

AVIS BULBULYAN, CEO of SIVA Enterprises:

“Earlier last year, there was talk that MJ was going to be held as a bargaining chip against states for negotiation on immigration issues. This could very well be intended as a distraction for the administration to keep people focused on this while a different agenda item is pushed along. Reality is that cannabis has tremendous support across the country regardless of party affiliation, and has a higher approval rating than the administration, really any prior administration and it’s probably going to take a whole lot more than nixing the Cole memo to shut it down.”

GUILLERMO BRAVO, CEO of Foottraffik:

“This is unfortunate for the cannabis industry, especially with the biggest cannabis market California going recreational this week. This is going to reduce investment money, interest, and cut back spending within the cannabis industry as well. The clear goal of the administration is to slow down the progress of the cannabis industry in any form, and this is a clear shot at California, Colorado, Washington, and the entire industry in general.”

JAIME LEWIS, Founder and CEO of Mountain Medicine, Chairwoman of the Board for National Cannabis Industry Association:

“For Jeff Sessions and the current administration, the War on Drugs is not over, but we’re also not done fighting to end it. This policy change does not mean a wholesale dismantling of the regulated markets that now exist in over half of US states. Now more than ever, it is of the utmost importance that we continue to support our colleagues and the organizations that are fighting for a legitimate, regulated marijuana industry and safe, legal access to cannabis medicine.”

LAURA BIANCHI, Director of Cannabis, Business/Corporate Transactions and Estate Planning Departments, Rose Law Group:

“We have always known Jeff Sessions is anti-marijuana and while it is certainly alarming to see him take this position, I see it as having little to no impact at this stage. The 2013 Cole memo provided guidance; however, as I have consistently reminded clients, it is not law, it is not an order and it is not precedent. So while certainly something to keep an eye on, I do not think this is cause for panic. With 29 states and Washington DC having implemented some form of a medical marijuana program, to undo this industry would be like closing Pandora’s Box once it’s been opened. It would be a Herculean effort that would undermine another Republican cornerstone, which is the importance of states’ rights. I advise clients continue to focus on operating their businesses in compliance with the applicable rules and regulations and try to ignore the chaotic, political, and shock-motivated headlines which have unfortunately become the norm.”

JOSE BELEN, Founder and CEO of Mission Zero:

“Jeff Session’s decision to rescind the Cole memo is abhorrent and will cause massive negative ramifications to veteran community. I say this as a proud combat veteran. Prior to becoming a medical cannabis patient, my 13-year battle with PTSD cost me my job, my home, my financial stability, and very nearly my life. That is why I am one of the six individuals suing the federal government to remove marijuana from its list of Schedule I drugs. My fear is that the hundreds of thousands, if not millions, of veterans like myself will now have to live in fear of federal reprisal. As veterans we do not ask for much from our government. In this case we are simply asking for care from our country that we proudly would have died for.”

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Sessions came into office with the promise of cracking down on cannabis – including medical marijuana – at the federal level.

“The marijuana business has since become a sophisticated, multimillion-dollar industry that helps fund some government programs. Eight states and the District of Columbia have legalized marijuana for recreational use, and California’s sales alone are projected to bring in $1 billion annually in tax revenue within several years,” AP reports.

The Task Force on Crime Reduction and Public Safety, a group of prosecutors and federal law enforcement officials, declined to create new policy recommendations to advance the attorney general’s aggressively anti-marijuana views in 2016. The group’s report largely reiterated the Justice Department’s standing policy on marijuana.

California and Oregon submitted reports on the results of legal cannabis in their states to Sessions’ task force in 2017. Both reported positive effects on public safety and local economies.

In December, Sessions cited the American Medical Association policy when responding to a Department of Justice intern question about the risks of legal cannabis.
Cashinbis wrote the AMA and received their most up-to-date policies on cannabis. A document from the American Medical Association House of Delegates shows that these policies have changed slightly since September 2016, when the organization resolved to scratch that the “sale of cannabis should not be legalized.”

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Between Christmas movie reruns, TV viewers might see a commercial for this new stocking stuffer: a cannabis product sampler pack.

Christmas-themed commercials for CBD oil and cannabis-based wellness supplements are now running on over 40 network channels, in 24 countries.

Major networks airing the commercials for Palmetto Harmony products from Dec. 18 through Jan. 14 include Fox News, Fox Business, Bloomberg, MSNBC, CNBC, Headline News CNN, Weather Channel, HGTV, Hallmark, DIY, Food Network, Travel Channel and more.

It’s the first time Time Warner Cable has approved cannabis product ads to appear on its channels.

“This holiday season, fill your loved ones’ stockings with our sample pack of all natural, organically grown wellness products,” the ad’s voiceover says. While the ad doesn’t mention cannabis specifically, it depicts Palmetto Harmony’s line of hemp and cannabinoid vape oils and topical creams.

Christmas Ver 2 from DCP Media Production LLC on Vimeo.

In November, South Carolina-based Palmetto Harmony pushed cannabis advertising forward by running the first commercial for cannabis-based products to appear on nationally syndicated networks. The commercial  aired on 12 national networks including CBS, ABC, NBC, Oxygen, Lifetime Movies, and BBC-America.

Palmetto Harmony offers a range of CBD oil and cannabis-based products, which the commercial promotes as wellness products. The original commercial, which aired in 71 different cities, contains no specific mention of CBD oil or cannabis.

Janel Ralph, CEO of Palmetto Harmony, said the response to the original commercial was “crazy, with a lot of positive feedback.”

As competition heats up with legalization, U.S. cannabis businesses must determine how to stand out while advertising is still legally restricted in TV, radio, print, email marketing, and direct mailers.

“We had to be very careful in how we presented the products,” Ralph said. “Just like with the rules for pharmaceutical ads, there were certain things we couldn’t say and we had to be conservative.”

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Las Vegas’ newest cannabis dispensary, NuWu Cannabis Marketplace, opened its doors in mid-October. With its sprawling 16,000 square-foot space (including 10,000 square feet of retail space and 170 feet of display counters), NuWu is the largest cannabis dispensary in the world. And not only is this Las Vegas dispensary the largest, it’s open 24/7 and offers drive-thru service!

Located in Las Vegas’ historic downtown, 1.5 miles from the popular Fremont Street Experience, NuWu Cannabis Marketplace welcomes hundreds of customers a day.

Las Vegas Dispensary’s Drive-Thru Service Is the First of Its Kind in the Nation

Consumers can pull up to a drive-thru window, where they can buy a wide variety of cannabis products, including topicals, concentrates, vapes, edibles, and of course, flower.

The Las Vegas dispensary’s drive-thru service makes it more convenient for older patients, the disabled, and anyone with mobility issues, to purchase cannabis products.

“Despite being a recreational dispensary, we have a sizable number of elderly and disabled customers, including many veterans, who use cannabis therapeutically or for boosting their overall health and wellness,” said Benny Tso, chairman Las Vegas Paiute Tribe. “A major reason we decided to offer drive-thru service was to make it more convenient for individuals who may not be able to make it into our store easily.”

Customers Can Order Online Before Pickup 

Customers can place orders in advance thru NuWu’s secure online ordering system (), where they have access to NuWu’s expansive menu. For customers who don’t want order online, they may order on-site from a limited menu available at the drive-thru window.

NuWu Carries a Wide Variety of Products for Cannabis Enthusiasts (Including Dogs)

The recreational Las Vegas dispensary carries a massive variety of cannabis-infused products, and they also sell merchandise including t-shirts and baseball caps.  Not only does NuWu offer cannabis products designed for human consumption, but they also offer a selection of cannabinoid-infused products for dogs intended to help with problems such as excessive barking or itching.

Location

NuWu Cannabis Marketplace is located along North Main Street just north of East Washington Avenue at 1235 Paiute Circle. That’s 1.5 miles from the famous Fremont Street Experience.

Address:

NuWu Cannabis Marketplace
1235 Paiute Cir, Las Vegas, NV 89106

Phone: (702) 844-2707
Website: www.nuwucannabis.com 

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California has rolled out state licensing for cannabis businesses, and legal advisers have absorbed over 300 pages of regulations released in late November.

Los Angeles cannabis attorney Kellsi Booth got her start in the cannabis industry with the Maryland Department of Health, where she helped the Natalie M. LaPrade Medical Cannabis Commission create regulations for their medical cannabis program.

We asked Booth – who has read the rules three times over – what California cannabis businesses need to know about the detailed and comprehensive state licensing rules.

1. Local authorization is a priority

“The number one thing at this point is you need local authorization,” Booth said. There are few jurisdictions in California right now that are permitting cannabis businesses, but step one in state licensing is getting local approval.

There are two types of state licenses: A license for recreational, and an M license for medical. “Sometimes that decision is made for you. Many jurisdictions are allowing only medical commercial cannabis activity at this time. It’s possible to hold both an A and M license for the same activity at the same licensed premise – there are conditions that need to be met.”

In general, businesses will need a license for each premises where cannabis activity is conducted.

“One of the great things they’ve done is create more nuanced categories,” she said. For example, there are manufacturing license types “N” and “P” for infusing cannabis products and for packaging and labeling of manufactured products, respectively.

There’s also a Type S license for shared manufacturing facilities on the way. “Being able to collaborate will be helpful for small-scale manufacturers. Those regulations are expected from the California Department of Public Health in early 2018.”

Licenses are not transferable in the state model. “This means you want to be set up as a for-profit entity, rather than a non-profit collective or cooperative, and some will have trouble making that switch depending on their operating rules,” Booth said.

2. Some jurisdictions are tough

Major cities – Los Angeles, San Diego, and San Francisco – are leading the way for recreational cannabis, but smaller jurisdictions are mostly sticking to medical-only.

“I believe more and more jurisdictions will open up now that the state has put forth a regulatory framework. Northern California counties like Sonoma and Humboldt are also setting the standard for cultivation,” Booth said.

“Being in a jurisdiction that has granted or will soon be granting local licenses or permits is valuable,” Booth said. One of the most cannabis-friendly jurisdictions is Long Beach, where processing is faster because it follows the standard business license application process and there’s no set limit on the number of cultivation, manufacturing, distribution, and testing businesses allowed, she said.

3. Fees and taxes are shocking

For a 5,000 to 10,000 square foot indoor cultivation facility, the licensing fee is $34,910 annually – and the next level up is $77,905, plus application fees.

For retail, fees depend on estimated operational volume. For estimated volume of up to half a million, the fee is $40,000, and it increases incrementally from there. These are high barriers to entry.

Tax rates are another concern. “Because of tax code 280E, cannabis businesses can only deduct cost of goods sold from their income – there’s no built in cushion for tax purposes,” Booth said. “In other states with a similar situation, we’re seeing high state and local tax rates resulting in businesses staying in the black market instead of moving over to the legal market.”

The application and licensing fees, state tax rates, and local tax rates will add up quickly, and may prove overly burdensome.

4. Excessive concentration rules can be a deal-breaker

“At the state level, if you meet all requirements, they can still deny you if there is an excessive concentration of retail or microbusiness licenses in the area.”

“That means the ratio of licensees to population within the census tract or division exceeds the ratio of licensees to the population within the county in the area where the premises is located. This definition may be problematic in some parts of the state,” Booth said.

5. Volatile/Non-volatile extraction rules are more lenient

When it comes to extractions, the regulations have been expanded, she said. “You can do extractions with ethanol and not be considered volatile. Volatile licensing is a more difficult process – you need a closed loop extraction system with the stamp of approval from a certified engineer, and fire department permits.”

In common practices using ethanol or carbon dioxide in extraction, businesses are able to be considered non-volatile, she said. “Jurisdictions are much more accepting of non-volatile licenses due to horror stories of people blowing themselves up during volatile extraction.”

6. Seed-to-sale requirements are specific

A key change involves seed-to-sale tracking rules. All cannabis activity must be entered into the state’s track-and-trace compliance system, and activities must occur in a particular order. “Manufactured cannabis products have to be packaged and labeled to state standards before they leave the hands of a manufacturer. Retail outlets cannot do any packaging or labeling,” Booth said.

This is a different from the practice of allowing customers to open, smell and handle cannabis products prior to purchase. “That won’t be happening.”

The retailer can have “samples” of cannabis goods that are removed from their packaging and placed in containers to allow for customer inspection. However, cannabis goods removed from their packaging for display cannot then be sold or consumed, she said.

7. Delivery services rules remain murky

“The original legislation did not cater to delivery services. Now, it’s okay to do deliveries if you have a retail license, but it’s really hard to get a retail license.”

In San Diego, there are 200 delivery services and only around 11 retail licensees currently in operation, Booth said. “Not many jurisdictions have the framework for non-storefront retail licenses for deliveries and it’s very hard to get retail,” she said. “Businesses are allowed to use apps for deliveries, but all deliveries have to be carried out from your premises by your employees. So there’s no Uber delivery scenario.”

8. Small business barrier to entry concerns remain

Cannabis industry members voiced concerns that the new licensing fees will create a barrier of entry that gives big business an advantage.

“I can’t disagree,” Booth said. “Licensing fees are very burdensome, but they have contemplated this with the scaled fees. You’re also not going to see one entity monopolizing the market. For example, an entity can hold one medium cultivation license, not five. The fee-less temporary licensing process will incentivize small operators who know cannabis to stay in the legal market.”

In Los Angeles, the social equity program is designed to ensure equal access to the market to minorities, who have traditionally been targeted for cannabis-related prosecution. “It gives priority in processing of licenses – their applications will get through the process first,” Booth said.

Don’t worry – The transition period is allowed through July 1

The regulators have created a transition period with more lax rules, so existing businesses will have until July 1, 2018 to meet the new regulations in full. “To support the transition of the market, you’ll be allowed to adjust by repackaging or labeling items currently held in inventory or conducting business with either M or A licensees, for example.”

To jumpstart the licensing, temporary licensing are available. “If you can show that you have local authorization and are meeting all business formalities, the temporary license should be granted. It’s good for 120 days, and can be renewed for 90 days thereafter if you’ve submitted an application for annual licensing.” All forms are available here.

In Los Angeles, existing businesses allowed by Proposition D will be first in line for licenses, Booth said. “You’ll be in good condition if you’re in compliance with the local law.”

Get an adviser to sidestep challenges

Booth said it’s in the best interest of every business to retain legal counsel or a compliance adviser to navigate the extensive regulations.

Make sure to vet them, too – “Be wary of people saying they’re experts in cannabis and check their background, especially criminal defense lawyers branding themselves as cannabis attorneys. I can tell you criminal defense is very different,” she said.

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In a newly released video, Attorney General Jeff Sessions said to a Department of Justice intern, “Look, there’s this view that marijuana is harmless and does no damage . . . Marijuana is not a healthy substance in my opinion. The American Medical Association is crystal clear on that. Do you believe that? [The intern said no.] Well, you can write the AMA and see why.” See the full video at ABC.

We wrote the AMA and received their most up-to-date policies on cannabis.

A document from the American Medical Association House of Delegates shows that these policies have changed slightly since September 2016, when the organization resolved to scratch that the “sale of cannabis should not be legalized.”

In the current policy (in full below), the AMA calls for more cannabinoid research, stating, “Our AMA urges that marijuana’s status as a federal schedule I controlled substance be reviewed with the goal of facilitating the conduct of clinical research and development of cannabinoid-based medicines, and alternate delivery methods. This should not be viewed as an endorsement of state-based medical cannabis, the legalization of marijuana, or that scientific evidence on the therapeutic use of cannabis meets the current standards for a prescription drug product.”

AMA Policy on Cannabis 2017:

Cannabis Legalization for Recreational Use

Our AMA: (1) believes that cannabis is a dangerous drug and as such is a serious public health concern; (2) believes that the sale of cannabis for recreational use should not be legalized; (3) discourages cannabis use, especially by persons vulnerable to the drug’s effects and in high-risk populations such as youth, pregnant women, and women who are breastfeeding; (3) believes states that have already legalized cannabis (for medical or recreational use or both) should be required to take steps to regulate the product effectively in order to protect public health and safety and that  laws and regulations related to legalized cannabis use should consistently be evaluated to determine their effectiveness; (5) encourages local, state, and federal public health agencies to improve surveillance efforts to ensure data is available on the short- and long-term health effects of cannabis use; (6) supports public health based strategies, rather than incarceration, in the handling of individuals possessing cannabis for personal use.

Cannabis and Cannabinoid Research

(1) Our AMA calls for further adequate and well-controlled studies of marijuana and related cannabinoids in patients who have serious conditions for which preclinical, anecdotal, or controlled evidence suggests possible efficacy and the application of such results to the understanding and treatment of disease. (2) Our AMA urges that marijuana’s status as a federal schedule I controlled substance be reviewed with the goal of facilitating the conduct of clinical research and development of cannabinoid-based medicines, and alternate delivery methods. This should not be viewed as an endorsement of state-based medical cannabis programs, the legalization of marijuana, or that scientific evidence on the therapeutic use of cannabis meets the current standards for a prescription drug product. (3) Our AMA urges the National Institutes of Health (NIH), the Drug Enforcement Administration (DEA), and the Food and Drug Administration (FDA) to develop a special schedule and implement administrative procedures to facilitate grant applications and the conduct of well-designed clinical research involving cannabis and its potential medical utility. This effort should include: a) disseminating specific information for researchers on the development of safeguards for cannabis clinical research protocols and the development of a model informed consent form for institutional review board evaluation; b) sufficient funding to support such clinical research and access for qualified investigators to adequate supplies of cannabis for clinical research purposes; c) confirming that cannabis of various and consistent strengths and/or placebo will be supplied by the National Institute on Drug Abuse to investigators registered with the DEA who are conducting bona fide clinical research studies that receive FDA approval, regardless of whether or not the NIH is the primary source of grant support. (4) Our AMA supports research to determine the consequences of long-term cannabis use, especially among youth, adolescents, pregnant women, and women who are breastfeeding. (5) Our AMA urges legislatures to delay initiating the legalization of cannabis for recreational use until further research is completed on the public health, medical, economic, and social consequences of its use.

Cannabis Legalization for Medicinal Use

Our AMA: (1) believes that scientifically valid and well-controlled clinical trials conducted under federal investigational new drug applications are necessary to assess the safety and effectiveness of all new drugs, including potential cannabis products for medical use; (2) believes that cannabis for medicinal use should not be legalized through the state legislative, ballot initiative, or referendum process; (3) will develop model legislation requiring the following warning on all cannabis products not approved by the U.S. Food and Drug Administration: “Marijuana has a high potential for abuse. This product has not been approved by the Food and Drug Administration for preventing or treating any disease process.”; (4) supports legislation ensuring or providing immunity against federal prosecution for physicians who certify that a patient has an approved medical condition or recommend cannabis in accordance with their state’s laws; and (5) believes that effective patient care requires the free and unfettered exchange of information on treatment alternatives and that discussion of these alternatives between physicians and patients should not subject either party to criminal sanctions.

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Redmond-area cannabis consumers have something else to be thankful this holiday season. Origins Cannabis, a trendy West Seattle dispensary, recently opened a new location in Old Town Redmond, Wash. The new Redmond cannabis dispensary provides consumers with a cafe-like experience where they can purchase the highest quality cannabis in the state and shop for trendy, top-of-the-line clothing all while sipping small-batch coffee.

“Our brand is all about offering the highest quality products for the best value while creating unique experiences for our customers,” said Sean Miller, managing partner of Origins Enterprises. “Origins took on a year-long renovation project to bring back a dilapidated historic building in Old Town that’s been untouched for almost 40 years. We transformed it into a beautiful space that reflects our Pacific Northwest roots and we’re excited to share it with the community.”

Origins Uses Science to Enhance and Simplify the Cannabis Buying Experience

Redmond cannabis dispensary, Origins Cannabis takes their cannabis seriously. They take pride in hand selecting only the highest quality products from farms who share their same passion and values and certify their partners with the ORIGINS CERTIFIED designation. Origins invested a significant amount of time and resources to create what they believe is the first scientific approach based on cannabinoid and terpene profiles to recommending the most appropriate cannabis products to its consumers. 

“When we say hand selected we actually mean it,” said Andrew Cornwall, partner Origins Cannabis. “Each strain is selected in person by our trained curators to ensure it meets our rigorous quality standards. We provide customers a loyal brand they can purchase with confidence.”

Not only does Origins exclusively source the highest quality cannabis that meets their rigorous standards,  they also simplify the cannabis customer experience. With its patent-pending Origins Lifestyle Spectrum interactive menu, customers can easily find cannabis products that provide the effects they most desire, while matching their lifestyle.

Origins worked with scientists and cannabis experts to map their products (based on cannabinoid ratio and terpene content) to consumer lifestyle preferences, tailoring their products to six lifestyle profiles:

• Party Go’er: You live care-free and want to experience life on all cylinders. Party Go’er products are ideal for cannabis enthusiasts who want to hit the town with friends and live life to the fullest.
• After Hours: For consumers who want to chill out and relax, After Hours products are perfect when you’re ready to wind down from the perfect night.
• Holistic: Big pharma isn’t your thing. You prefer natural remedies to treat your ailments or improve your quality-of-life.
• Social: You seek the courage to be in a different state of mind while out among a group of friends, or maybe you just want to let loose and meet new people without hesitation.
• Adventurous You enjoy using cannabis to explore the world that you live in every day. Whether you are seeking a new outlook on life or just seeking a little more excitement on that trail you love so much, you lead with an open spirit.
• Self-Discovery: You want to challenge your mind. Reflection is essential to you, and it’s about becoming a better person.

Andrew Cornwall and Jon Sherman Run Old Town Redmond Cannabis Dispensary:

The Interior of Origins’ Redmond Cannabis Dispensary:

Origins’ Redmond Cannabis Dispensary Location and Hours: 

Origins Cannabis is located in Old Town on the corner of 164th and Cleveland next to the entrance to the Redmond Town Center. The address is 16390 Cleveland Street Redmond, WA 98052. They’re open Monday through Thursday from 8:00 – 10:30, Friday & Saturday from 8:00 – 11:30, and Sunday from 9:00 to 9:00.

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South Carolina-based Palmetto Harmony is pushing forward cannabis advertising by running the first commercial for cannabis-based products to appear on nationally syndicated networks. The commercial is airing on 12 national networks including CBS, ABC, NBC, Oxygen, Lifetime Movies, and BBC-America.

Palmetto Harmony offers a range of CBD oil and cannabis-based products, which the commercial promotes as wellness products. The commercial, airing in 71 different cities, contains no specific mention of CBD oil or cannabis.

Janel Ralph, CEO of Palmetto Harmony, said the response has been “crazy, with a lot of positive feedback.”

“We had to be very careful in how we presented the products,” Ralph said. “Just like with the rules for pharmaceutical ads, there were certain things we couldn’t say and we had to be conservative.”

So far, she said the company hasn’t received any backlash or negative feedback. Her company plans to run a holiday-themed ad on 42 national channels starting December 1.

Ralph said she hopes the commercial opens the door to advertising for the cannabis industry. “We all have to be very careful in how we present ourselves. Hemp is not yet regulated by the FDA as a food or dietary supplement, which is the end goal. We can’t go making any medical claims,” Ralph said.

Palmetto Harmony TV Commercial from DCP Media Production LLC.

As competition heats up with legalization, U.S. cannabis businesses must determine how to stand out while advertising is still legally restricted in TV, radio, print, email marketing, and direct mailers.

In September, Las Vegas-based Allegiant Air became the first U.S.-based air carrier to accept advertising from a cannabis dispensary, the LA Times reported.

Acres Cannabis, a marijuana dispensary located a few blocks off of the Las Vegas strip, ran ads in Allegiant Air’s in-flight magazine, Sunseeker.

While airline-based ads show potential, ground transportation is taking a step back. In San Francisco, the public transit board voted to ban marijuana advertising on its buses, trains and shelters.

Earlier this month, Los Angeles agency Sandwich Video aimed to go viral with an online-only SNL-style video for Briteside, a cannabis delivery service in Oregon.

The video, hosted on YouTube and Briteside’s website, was created in the style of a typical pharmaceutical industry ad. AdWeek reported that the “90-second video, like SNL skits that have come before it, mimics now-infamous pharma ads in its look, tone and voiceover.” The ad shows a 30-something woman treating her anxiety with cannabis.

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Medical Marijuana, Inc. reported a total gross profit of 297 percent compared to Q3 2016, after focusing on international expansion and cannabinoid research this year.

The cannabinoid company made international headlines in 2017 by bringing its HempMeds brand to Mexico and Brazil – and made history when the Mexican government bought HempMeds CBD oil for its citizens.

Now Medical Marijuana, Inc. (OTC: MJNA) is reporting major gross revenue and gross profit increases over last year.

“Gross revenue soared from $2,188,671 in Q3 2016 to $7,783,297 in Q3 2017, a quarter over quarter increase of 255%. Total gross profit rose from $1,266,488 in Q3 2016 to $5,034,464 in Q3 2017, an increase of 297%,” according to a release.

With its quick movements in the CBD oil and biotechnology industries, the company is posed to react to 2018’s industry trends. The CBD oil market will be at $1 billion by 2020 according to a Brightfield Group report. The biotechnology market size will exceed  $775.2 billion by 2024, according to a Global Market Insights, Inc report.

Medical Marijuana, Inc.’s assets include HempMeds® and Kannaway®, international divisions in Mexico and Brazil, and investments in biotechnology companies like AXIM Biotechnology and Kannalife Sciences.

Medical Marijuana, Inc. CEO Dr. Stuart Titus said, “We believe that with these record-breaking revenue numbers, we have the capacity to make 2018 the most profitable year the company has ever seen. We are currently spending on international expansion and research efforts, which should pay long-term dividends for shareholders.”

The international expansion efforts began soon after medical cannabis was legalized in Mexico in June, and U.S.-based HempMeds jumped on the news by opening its first office in Monterrey, Mexico in July. The Monterrey, Mexico office serves as the hub for distribution of HempMeds’ THC-free CBD oil product Real Scientific Hemp Oil-X.

Mexico legalized the cultivation, production, and use of cannabis products with less than one percent THC for medical use when President Pena Nieto signed a bill into law on June 19.

Next, for the first time ever, the government in Mexico purchased CBD oil products from HempMeds Mexico for its citizens. Having governments subsidize the healthcare costs generated by CBD oil is a historic step towards normalization of cannabinoids as a treatment option,” according to a release.

In November, the United Nations invited HempMeds Mexico president Raúl Elizalde to speak about CBD hemp oil.

Elizalde is a medical cannabis pioneer who advocated tirelessly for Mexican patients, culminating in the moment when he joined Mexico President Peña Nieto on stage in April 2016, as the leader announced Mexico’s medical cannabis reform. Elizalde started the Por Grace Foundation to continue his advocacy work, and was appointed president of HempMeds Mexico this year.

In Medical Marijuana, Inc’s research endeavors, there was progress for cannabinoid medicine at AXIM Biotechnology and Kannalife Sciences.

AXIM Biotechnologies, Inc. announced phase II clinical trials on cannabidiol (CBD)-based chewing gum to treat Restless Legs Syndrome. The company also filed a patent for a chewing gum to treat opioid addiction.

Kannalife Sciences, another Medical Marijuana, Inc. biotechnology investment, continued its work to develop cannabis-based drugs for the treatment and prevention of chronic traumatic encephalopathy (CTE).

“Company spokesperson and former NFL player Nick Lowery was part of a media blitz to promote cannabis as a solution to the NFL’s CTE epidemic,” according to a release.

A recent clinical study found promising results in CBD oil used as a treatment for patients suffering from seizures—primarily people with Tuberous Sclerosis Complex. Results from the trial showed that 60 percent of participants who used CBD products saw a clinically significant (80-100 percent) reduction in the frequency of their seizures. The trial utilized THC-free CBD oil product RSHO-X by Medical Marijuana, Inc.

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