January 07, 2020
 

Expo New Mexico officials agreed to drop a pending appeal and pay $69,600 to medical marijuana company Ultra Health as part of a lawsuit settlement. The settlement comes almost a year after a judge ruled that event company Expo New Mexico had violated Ultra Healths First Amendment rights by restricting its free speech. The legal […]

New Mexico medical cannabis firm wins $69,000 in lawsuit settlement is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs

January 07, 2020
 

Adult-use cannabis retailers in Illinoishave sold almost $11 million of recreational marijuana since sales began Jan. 1. According to state Department of Financial and Professional Regulation, the 37 licensed recreational marijuana stores registered more than 271,000 transactions since the launch of Illinois’ rec industry. On the first day alone, sales nearly reached$3.2 million. Sales were […]

Illinois’ recreational marijuana sales near $11 million is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs

January 07, 2020
 

The number of Canadian cannabis producers with fewer than six months of cash on hand has increased over the past quarter, reflecting disappointing earnings and front-loaded capital expenditures, according to an analyst. Greg McLeish of the Toronto office of Mackie Research Capital found that 25 companies are down to half-a-year of cash when capital expenditures […]

Analyst warns of shelved expansion, restructuring as cannabis firms teeter on edge is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs

January 07, 2020
 

Voters in South Dakota will decide this year whether to legalize recreational marijuana for adults 21 and older. Voters also will decide in November the fate of a measure to allow medical marijuana for patients with serious health conditions South Dakota will become the first state to vote on both medical marijuana and adult-use legalization […]

South Dakota to vote on adult use, medical cannabis is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs

January 07, 2020
 
Harvest Files Suit Against Falcon International, Inc. PHOENIX, Jan. 7, 2020 /PRNewswire/ — Harvest Health & Recreation Inc. (CSE: HARV, OTCQX: HRVSF) (“Harvest”), a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., today announced that yesterday Harvest filed suit against Falcon International, Inc. (“Falcon”) requesting termination and rescission […]
January 07, 2020
 
TOWSON, Md.,Jan. 7, 2020/PRNewswire/ —United Food and Commercial Workers Local 27 (UFCW27) and Vireo Health International, Inc. (“Vireo” or “the Company”) (CNSX: VREO;OTCQX:VREOF), today announced that workers at its wholly-owned subsidiary, MaryMed, LLC (“MaryMed”), voted overwhelmingly to ratify a Collective Bargaining Agreement and officially join the ranks of UFCW Local 27. The three-year agreement marks […]
January 07, 2020
 

A few adult-use cannabis retailers around Illinois stopped selling over the weekend and plan to remain closed for at least part of this week as they deal with product shortages. Recreational marijuana sales began in the state on Jan. 1, and sales almost reached $3.2 million on the first day. Sales fell to just under […]

Some Illinois marijuana stores run out of product in first days of sales is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs

January 07, 2020
 
Craft rolled Jack Haze is available online and in-store LONDON, Ontario, Jan. 07, 2020 (GLOBE NEWSWIRE) — Indiva Limited (the Company or Indiva) (TSXV:NDVA) (OTCQX:NDVAF) is pleased to announce that it has shipped its first cases of Sugarleaf by 7AC (Sugarleaf). In October 2019, Indiva announced that it had signed a definitive agreement (the “Agreement”) […]
January 03, 2020
 

A staunch proponent of researching medicinal marijuana for the treatment of military veterans plans to retire from the U.S. House of Representatives. Rep. Phil Roe of Tennessee, a Republican who serves as the ranking member of the House Committee on Veterans’ Affairs, said Friday he will retire at the end of the year, according to CNN. He introduced

Medical marijuana proponent Roe says he’s retiring from US House is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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more details, George Scorsis

January 03, 2020
 

A judge denied a request for a temporary restraining order against the state of Missouri that was sought by an applicant for a medical cannabis licensee. Paul Callicoat and his family sued the Missouri Department of Health and Senior Services after their application for a license was among hundreds denied by the agency. They planned

Missouri medical marijuana grower at odds with state over license denial is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

January 03, 2020
 

A medical marijuana dispensary in Michigan won a design award from the International Council of Shopping Centers (ICSC). Flint-based Common Citizen won a Gold Award for retail design from the ICSC, a worldwide trade group for the shopping center and retail real estate sector. The award is the first the ICSC has bestowed upon a cannabis retailer.

Michigan medical cannabis store wins mainstream design award is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

January 02, 2020
 

Thousands of marijuana enthusiasts - including Illinois' lieutenant governor - turned out on a cold New Year's Day to mark the historic start of adult-use cannabis sales in what could become one of the biggest U.S. recreational markets in the nation.

Long waits and some sticker shock, but Illinois recreational marijuana market launches with a roar, nearly $3.2M in sales is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

January 02, 2020
 

MJardin Group, a cannabis production company with offices in Denver and Toronto, on Thursday said it has agreed to sell its GreenMart of Nevada cultivation facility in Cheyenne to a division of Phoenix-based Harvest Health & Recreation. MJardin plans to use the proceeds to reduce its debt and for working capital. The company bought GreenMart in July. For

MJardin selling Nevada marijuana grow facility for $35 million is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

January 02, 2020
 

hemp cbd fda

2019 was, to put it lightly, an intense year for the hemp and hemp-derived cannabidiol (“Hemp CBD”) industries in the United States. We saw the implementation of the 2018 Farm Bill,  strongly worded statements by the Food and Drug Administration (“FDA”) that Hemp CBD was unlawful in many products followed (amazingly) by almost zero enforcement, the issuance of interim hemp production regulations by the United States Department of Agriculture (“USDA”),  and the development of hemp cultivation and Hemp CBD bans, regulations, and/or gray areas in nearly every state in the union (see the Canna Law Blog’s ongoing 50-state survey series that we post every Sunday).

Though 2019 was indeed busy, the U.S. hemp and Hemp CBD industries are far from normalized. The next few years will continue to be equally busy and we expect there to be dramatic changes across the board, both good and bad. Here are our top four predictions for 2020.

1. State Hemp Production Rollouts

For anyone who isn’t deeply familiar with the 2018 Farm Bill by now, it set up a system where states and tribes were required to come up with hemp production plans for approval by the USDA. Some states submitted plans to the USDA immediately, but it only began its substantive review after issuing its interim regulations. As of today, numerous states and tribes have submitted or are in the process of submitting plans (you can see the actively updated list here), but only a small handful have actually been approved. In 2020, we expect that the USDA will approve most of the plans, or force states or tribes to change their plans up to comply with the USDA’s rules. Either way, state-level production is expected to kick into full gear under the 2018 Farm Bill.

2. FDA Enforcement

To date, the FDA hasn’t really done much about Hemp CBD products it claims are unlawful. Until late November 2019, all the FDA did (sometimes in concert with the FTC) was issue a small handful of warning letters to companies it claimed made unlawful products or advertised products in an unlawful way. But on November 29, it sent 15 warning letters simultaneously. While, to date, the FDA has not initiated any kind of public enforcement proceeding or litigation, the fact that it went from just a small handful of letters over 11 months to 15 in one day signals that the FDA is shifting into enforcement mode. 2020 may be the year where we see actual enforcement or litigation.

3. Hemp CBD Importation

Over the last few months, our hemp attorneys have fielded numerous questions about importing raw hemp or Hemp CBD products, mostly from South America and Europe, but even from Asia or Africa. Importation can trigger the jurisdiction of a number of agencies, including Customs and Border Protection, the FDA, and/or the USDA. I say “and/or” because importing products usually involve multiple agencies. For example, in this ruling, CBP noted that some Hemp CBD products were also subject to federal laws that are administered by the FDA. To boot, importation also involves the consideration of laws in the country from which products are being imported and, in some cases, international treaties. Notwithstanding the extreme legal complexity of importing hemp and Hemp CBD, we expect to see a huge uptick in 2020.

4.  FDA Regulation of Hemp CBD

2020 may be the year that the FDA picks up the pace and does something clear with Hemp CBD. After all, Congress has been admonishing the FDA to speed things up for months now, and just recently an appropriations bill was signed that apparently directs $2 million to the FDA to finish its Hemp CBD regulations. Still though, at this point, FDA regulations on Hemp CBD are more of a hope or wish than an expectation. If they do come out in 2020, things we expect to see are testing requirements, packaging and labeling rules, advertising restrictions, Hemp CBD concentration limitations, etc. Hopefully, we will have more clarity in the next few months.


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george scorsis

January 02, 2020
 

A recent rash of break-ins at marijuana companies in Washington state has spurred regulators to remove an online map that detailed where cannabis producers and processors were located. “We had a request by some of our stakeholders feeling that having those addresses posted on the website was an easy way for them to be found

Washington state removes online map of cannabis businesses in response to recent burglaries is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional information, George Scorsis

December 31, 2019
 

Happy New Year! Before we cue up our favorite version of Auld Lang Syne, pop the CBD-infused champagne, and begin to celebrate the roaring 20s, we’d like to take a look back.

2019 was another big year for cannabis, and another busy year for the Canna Law Blog. We dove deep into our archives on Facebook, Twitter, and the nitty-gritty Google searches to see what you, the reader, were most interested in this year. These are the Canna Law Blog’s Biggest Hits of 2019, in alphabetical order:

  1. BREAKING NEWS: FDA Issues More Guidance on CBD Products
  2. Charlotte’s Web Faces Class Action Lawsuit for Improperly Marketing CBD Products
  3. FDA Enforcement Against Hemp-CBD Products Has Begun
  4. Going Postal: USPS Provides Guidance on Mailing Hemp-CBD
  5. Grading the Democratic Presidential Candidates on Marijuana: Elizabeth Warren
  6. Grading the Democratic Presidential Candidates on Marijuana: Bernie Sanders
  7. New Trademark Litigation Against “Stone Patch” Cannabis Products Calls Out an Industry Trend of Copycats
  8. The FDA Issues Hemp-CBD Warning Letters and a Consumer Update
  9. Utah MLM Essential Oils: doTERRA’s Copaiba Oil Challenges Young Living’s CBD Oil
  10. Young Living vs. doTERRA: Utah MLM Companies and the CBD Race

What’s the overarching theme of our top 2019 posts? Three letters: C-B-D. It turns out our readers were very interested in CBD, which should come as a surprise to absolutely no one. Our series on presidential candidates was also popular, with Elizabeth Warren and Bernie Sanders garnering the most interest. There is also a budding interest in Utah cannabis, especially when it comes to CBD.

In addition to the top ten list, which was based on a number of different metrics, we also noticed some trends specifically on social media.

Our followers on Facebook “liked” our posts on California and international:

On Twitter, our followers were especially interested in posts on federal issues:

With 2019 fading into the rearview mirror, we are looking forward to the future. We’ll keep writing about CBD, politics, litigation, and even Utah in 2020. We’ll also keep international cannabis posts coming as next year is going to be huge for the international cannabis market. Expect to also see our authors write about states that legalize marijuana in 2020, including Illinois and Michigan, who will ramp up their recreational markets in the new year. We are also open to your ideas as to what we should cover in 2020. Feel free to drop your suggestions in the comments below or reach out of Facebook or Twitter.


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george scorsis

December 31, 2019
 

The start of the new year will launch a flurry of activity for Illinois’ recreational cannabis industry, a sizable new market that will unleash stiff competition for business licenses and could eventually reach $2.5 billion in annual sales. On Jan. 1, recreational sales will begin through existing medical marijuana dispensaries in the state. The next

Chart: Illinois’ new adult-use marijuana market to attract fierce competition is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

December 30, 2019
 

Bermuda released the draft legislative blueprint to establish a domestic medical cannabis industry, which Attorney General Kathy Simmons said would create business opportunities for local enterprises and attract international investment. The government is inviting the public to submit feedback on the proposed Medicinal Cannabis Bill and corresponding Medicinal Cannabis Licensing Regulations. The proposed law and

Bermuda releases draft medical cannabis law and rules to ‘spark entrepreneurship’ is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

December 30, 2019
 

oregon cannabis marijuana hemp

Here we are at the end of 2019, which means it’s time for the fourth annual “State of the State” post on Oregon cannabis (see the 2018 post here; 2017 here; and 2016 here). This past year has been a reckoning of sorts for Oregon cannabis: things slowed down on the marijuana side but accelerated on the hemp side (albeit in fits and starts). Below is a high-level summary of what we are seeing in Oregon cannabis as we move into the new year.

Fewer new laws and regulations.

From 2015 to 2018, the Oregon legislature passed a large number of cannabis-related bills in every session, including omnibus legislation, and the state cannabis agencies (OLCC, OHA and ODA) engaged in seemingly non-stop rulemaking. In 2019, the full session was nothing like sessions past. No omnibus bills were enrolled, and only a few narrow laws eventually passed. We summarized those laws in July, but here is the shorthand:

  • Senate Bill 218 allows curtailment of production licenses.
  • Senate Bill 582 opens Oregon up for interstate trade once the federal environment relaxes.
  • Senate Bills 420 and 975 deal with criminal charges and expungement.
  • Senate Bill 364 protects cannabis production from “systems development charges.”

Of these bills, only Senate Bill 218 had an immediate, appreciable impact on the industry at large, especially as OLCC moved stalled applications out of its queue and tightened up license transfer policies. But agency rulemaking was mostly standard fare at each of OLCC, OHA and ODA, and the regulatory environment was less dynamic than ever – which is probably a good thing.

For 2020, expect Oregon to pass a hemp bill related to Oregon’s implementation of the 2018 Farm Bill, and perhaps work around the edges even less energetically with respect to marijuana. It will only be a five-week session.

Status quo in the marijuana industry.

Anecdotally, 2019 was nothing like years past in terms of M&A activity for Oregon cannabis. We helped buy and sell businesses and their assets, place investments, etc. throughout the year, but the fever pitch of Oregon cannabis M&A seems to have peaked and passed. Some of this may be due to the secondary markets maturing in other states, some may be due to the general malaise affecting Canadian cannabis stocks (a significant source of Oregon investment), some may be due to the brutal timelines associated with OLCC approvals, and some may be a general settling out and industry maturation.

For those staying the course, people have begun to figure out how to make money, or at least to survive notwithstanding oversupply and other market challenges. Perhaps for this reason, we also saw a corresponding decrease in litigation on the THC side, aside from a few marquee filings. From the regulatory perspective, we saw continued uptick in OLCC enforcement actions. We also saw regulators leave state jobs for industry jobs and a few of the larger THC companies draw in c-level talent from other industries. These are all further signs of program maturation.

With respect to licenses issued, last year at this time there were 1,110 active producers; this year, that number increased only slightly to 1,152. On the retail side, the increase was larger in both absolute numbers and by percentage, moving from 606 active licensees to 664. Look for licensee growth to essentially flatline in 2020, and for new market entrants to continue to come in via “side doors” like co-packing and branding agreements.

Big boom for hemp.

Farmers planted a record number of hemp acreage this year. According to ODA statistics, nearly 2,000 growers registered to plant over 63,000 acres in 2019. This was a profound increase from 2018, which saw 568 growers and 11,754 acres registered. Overall, Oregon grew more hemp than almost any state in the country this year, and continued to pioneer and promote hemp industry development.

Nearly all Oregon hemp planted in 2019 was grown for CBD, but not everything worked out as planned. First, prices for raw and refined products dropped dramatically. Second, much of the hemp that was planted went unharvested or unsold due to a combination of bad weather and inexperience. For these and other reasons, our office handled more hemp-related litigation than ever before. We expect that unfortunate trend to continue in 2020.

The regulatory environment for hemp continues to evolve both federally and in Oregon. By the time the 2020 planting season rolls around, USDA rules should finally be in place and Oregon will have made some adjustments to its statewide program, as mentioned above.

In 2020, expect Oregon cannabis growth to continue on the hemp-CBD side rather than the THC side. This will be true of everything from intellectual property development to new products and services. Should be fun.


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George Scorsis

December 30, 2019
 

Cannabis markets in Canada and elsewhere in the world went on a roller-coaster ride in 2019, as irrational expectations gave way to more realistic market assessments. Global medical marijuana markets, corporations and top executives experienced breakthroughs and setbacks this past year. That’s the gist of the 10 most widely read business stories carried by Marijuana Business Daily

Top 10 global cannabis stories of 2019: WHO backs rescheduling, Linton out at Canopy, Canadian firms eye US & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 30, 2019
 

The U.S. cannabis industry experienced some momentous moves forward on the legalization front in 2019, but it also faced significant obstacles that reflected how the licensed marijuana sector is continuing to mature and why it cannot always expect boom times and unfettered growth. The top page views of the year at Marijuana Business Daily show

2019’s top US cannabis business stories: Vape crisis, California MJ industry challenges, landmark legalization moves & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

December 29, 2019
 

nevada hemp cannabis

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA.

This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp-CBD”). Each Sunday, we summarize a new state in alphabetical order. Today, we cover Nevada.

Pursuant to the 2014 U.S. Farm Bill, the 2015 Nevada Senate Bill 305, the 2016 Nevada Senate Bill 396, and the 2019 Nevada Senate Bill 209, industrial hemp and Hemp-CBD products may be produced in Nevada under the supervision of the Nevada Department of Agriculture (“NDA”) so long as the crop and its finished products contain no more than 0.3% tetrahydrocannabinol (“THC”).

The sale of Hemp-CBD products is allowed under Nevada law. However, not every category of Hemp-CBD products may be lawfully sold in the state. The Nevada Department of Health and Human Services (“DHHS”), along with many county Departments of Health, have publicly adopted the Food and Drug Administration (“FDA“)’s position on the sale and marketing of CBD in foods and dietary supplements. Some, including the Washoe County Health District, have taken enforcement actions by seizing these products from local stores. In addition, the state’s Division of Public and Behavioral Health (“DPBH”) recently published guidelines that further reiterate that only hemp ingredients generally recognized as safe (“GRAS“) can be lawfully sold in the state.

Although the sale of CBD-infused foods and dietary supplements is strictly prohibited in the state, the sale of other categories of products, such as CBD-infused smokables and cosmetics, is neither expressly authorized nor prohibited.

Chapter 557 of the Nevada Revised Statutes (“NRS”) legalized the sale of Hemp-CBD products “intended for human consumption,” which means “intended for ingestion or inhalation by a human or for topical application to the skin or hair of a human”, so long as these products  meet specific testing requirements. See NRS 557(270)(4)(b). Both the NDA and the DHHS have been tasked with developing regulations on this issue; however, according to the Department of Agriculture’s Industrial Hemp FAQs, the agency does not regulate processed finished Hemp-CBD products for human consumption; the FDA and the DHHS do. It’s worth noting that while the DHHS regulates the sale of foods and dietary supplements, it does not oversee the sale of cosmetics, which are regulated by the DPBH. As of the date if this post, neither the DHHS nor the DPBH have adopted testing rules, which means the sale and marketing of these categories of products  remain uncertain, unregulated, and therefore, risky in Nevada.

For previous coverage in this series, check out the links below:


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George Scorsis

December 28, 2019
 

(This is an abridged version of a story that appears in the November-December issue of Marijuana Business Magazine.) An unthinkable collaboration not long ago, more and more marijuana businesses and mainstream companies are joining forces on products such as sleep-inducing CBD gummies, infused beverages and pharmaceutical-grade medications. This melding of unlikely bedfellows is a sign that

The stories behind cannabis companies and their partnerships with mainstream businesses is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 28, 2019
 

cbd fake news

When it comes to hemp-derived CBD (“Hemp CBD”), the best advice we can give is not to trust most of what’s out there on the Internet. No, I am not talking about the claims of medical benefits for Hemp CBD (which could be the subject of its own entire post), but rather about whether or not Hemp CBD is legal.

As I write this post, the 2018 Farm Bill is just over a year old. Generally, when such a significant law has been on the books for about a year, it’s easy to find reliable and accurate information about that law online. But for whatever reason, there is still so much inaccurate information about Hemp CBD online in the wake of the 2018 Farm Bill.

For example, anyone who does a Google search for “Is CBD legal in X state” will likely see numerous sources that claim that CBD is completely legal, or at least fail to address critical legal nuances that may clearly bar one class of products (such as Hemp CBD foods) while leaving others in a gray area (such as cosmetics). A person can even find websites making claims that Hemp CBD is lawful  in states like California that have made clear since months before the 2018 Farm Bill was passed that certain Hemp CBD products are not lawful.

Many dubious sources also ignore the FDA’s long-stated position that some Hemp CBD products are not lawful. I still even hear, on a semi-regular basis, people say that “I read online that the 2018 Farm Bill legalized all Hemp CBD products, right?” (If you couldn’t guess where I was going with this, the answer is no.) The persistence is remarkable.

I can’t comment on the reason why there is so much incorrect information about Hemp CBD online. But I can say that there can be some pretty severe consequences for Hemp CBD businesses who rely on what they read after a five-minute Google search to make big-picture business decisions. On numerous occasions, our Hemp CBD lawyers have spoken with business owners who have done just that, and in some cases have invested a lot of money into proposed ventures that need to be completely scrapped or at least heavily retooled.

The moral of the story is that businesses need to do their homework before jumping into the Hemp CBD game. It’s not always easy to do tons of up-front work in an industry that is so rapidly evolving and when getting in first can mean more success. But doing the leg work up front can often mean the difference between being on the FDA or some state agency’s short list for an enforcement action, or operating without avoidable problems.

While Google can be a valuable starting point in many industries, it should not be the only source that Hemp CBD businesses should look to when developing products or strategies.


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George Scorsis Liberty Health Sciences

December 27, 2019
 

Los Angeles-based MedMen Enterprises, one of the most high-profile cannabis retailers in the United States, said Friday it plans to raise a total of $74 million by selling noncore assets and initiating a stock offering,

Marijuana raise is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

December 27, 2019
 

Quebec’s largest federally licensed cannabis producer has moved its corporate head office from Gatineau, Quebec, to its existing office in Ottawa, Ontario. Hexo Vice President of Communications Isabelle Robillard wrote in an email to Marijuana Business Daily that the company tried to avoid the administrative change, but “this choice was imposed on us as we are

Cannabis firm Hexo moves head office from Quebec to Ontario is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

December 27, 2019
 

British Columbia-based Emerald Health Therapeutics has requested that Health Canada not continue with a cannabis processing license for one of its subsidiaries as part of a strategy to decrease unnecessary regulatory risk. Federal cannabis licenses were highly valued commodities in recent years, but their worth has waned as the number of permits has swelled to

Emerald pulls plug on affiliate’s federal cannabis license to decrease risk is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 27, 2019
 

Business threats against legal cannabis stores California are so severe that it may be necessary for voters to address some of the issues at the ballot box, according to the annual draft report of the Cannabis Advisory Committee.

Marijuana business threats is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 27, 2019
 

oregon hemp litigation due diligence

Although I am a litigator who loves to be in court, I often counsel clients on how to avoid litigation – even though it may mean less work for me in the future!  Front and center in these discussions are: 1) the importance of due diligence prior to entering a new business relationship and 2) the importance of a fulsome contract written by at attorney knowledgeable in the hemp industry that accounts for the likelihood that things may not go as planned. Two new Oregon lawsuits involving hemp reflect the continued importance of conducting due diligence on a potential business partner in this industry. (Please note that I do not represent any of the parties in the litigation and do not write about litigation matters involving my clients).

Hettervig v. Morell et al. – Hemp farmer alleges harvester did not perform, causing $1.2 million in damages

The plaintiff cultivated 240 acres of hemp around Madras, Oregon. By September 2019, the crop was near ready to harvest and the plaintiff began to reach out harvesters. According to the complaint, plaintiff contacted the defendant who told plaintiff he was capable of harvesting the crop and would come to the farms with two drapper heads to swather the crop, and with four-to-five combines to combine the crop. Defendant said he could swather and combine the crop in about 15 days at a cost of $1,500 per acre, or $360,000 overall. Defendant required 1/3 of the overall cost ($120,000) be paid up front. In October, plaintiff agreed to hire the defendant and his company and paid the deposit. The defendant began to swather the crop on October 10 but over the course of the next two weeks appeared at the farm sporadically, leaving the crop unbundled and decaying in the elements. By October 22, defendant had stopped work altogether leaving much of the 240-acre crop downed and decaying. The overall yield for the crop was diminished by half. It turned out, alleges the plaintiff, that defendant did not have the combines available to perform the work as promised.

These factual allegations form the basis of plaintiff’s $1.2 million lawsuit which alleges causes of action for breach of contract, unjust enrichment, negligence, and fraud.

The complaint says very little about what due diligence the plaintiff performed when deciding to hire the defendant (and the complaint need not have done so). But I am left wondering whether some or all of the plaintiff’s woes could have been avoided by taking steps to investigate the defendant – who is not from Oregon. Along with requesting and contacting a list of defendant’s references, the plaintiff could also have taken steps such as placing the deposit in escrow and investigated whether the defendant had sufficient resources (including any applicable insurance policies) to make the plaintiff whole in the event the crop was improperly harvested.

The lesson for farmers is that one needs to be very careful about selecting business partners, vendors, and other third parties. (That said – the allegations in the Complaint are for now just that, allegations).

Patel v. Horton et al. – Investors in hemp extraction alleges partners defrauded them out of $1 million

Plaintiffs are individuals and a New York company that came to Oregon to invest in the industrial hemp extraction sector. Defendants are Oregon individuals and an Oregon company that allegedly represented to plaintiffs that they owned an established industrial hemp extraction business complete with production equipment, existing revenue-generating contracts, warehousing space, and other infrastructure necessary to ply their trade.  Defendants allegedly represented they had equipment and contracts to process more than 2 million pounds of industrial hemp per month and promised significant returns on investor capital.

Based upon the representations of the defendants, plaintiffs invested more than $600,000 into a supposed partnership with the defendants only to later learn that none of the defendants’ representations were remotely true: they had no equipment, no contracts, no infrastructure of any kind. Defendants instead converted $600,000 worth of industrial hemp extraction equipment and investment capital provided by plaintiffs to their own uses.

The complaint contains numerous allegations constituting “red flags” from a due diligence standpoint. For example, one of the plaintiffs flew to Oregon in March 2019 and visited the defendants’ production facilities. The plaintiff did not see any of the hemp extraction equipment defendants purported to own; instead plaintiff was shown a video of the equipment that was supposedly at an off-premises secure storage facility. Not long after the plaintiffs agreed to go into business with defendants and loaned them $150,000.

A few months’ later, plaintiffs became suspicious when defendants failed to show any revenue or to produce any final products. At the same time, defendants threatened to stop production entirely unless plaintiffs paid money to them. In response plaintiffs sent defendants another $200,000. Yet just a few months’ before, defendants had sent the plaintiffs a “Hemp Extraction Business Proposal” in which defendants represented they had “executed” tolling contracts to process over 1 million pounds of biomass and which they projected net monthly income of $8.4 million.

During all of this, plaintiffs attempted to formalize a business arrangement which defendants refused. In October, another plaintiff visited Oregon to inspect the production facilities and allegedly learned that the defendants were operating an entirely different hemp extraction business. The complaint alleges fraud, unlawful trade practices, conversion and breach of contract. Plaintiffs seek damages in the amount of $1,000,000.

The possible forms of due diligence abound in this case. For example, the plaintiffs apparently did not demand access to the secure storage facility where the equipment was located and accepted a video. The plaintiffs did not get personal guarantees on the loans. It does not appear that plaintiffs asked to see the purported underlying tolling contracts or defendants’ financial statements, bank statements, corporate documents, letters of credit, leases, insurance policies, and other documentation. Nor does it appear that the plaintiffs had someone knowledgeable about hemp extraction examine defendants’ financial projections. Perhaps some combination of these inquiries could have saved plaintiffs’ $600,000 and the attorneys’ fees to try and recover their investment. But its too late for that now.


For more about the importance of due diligence and what kind of due diligence may be appropriate for your business or potential investment, see below:


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George Scorsis website

December 27, 2019
 

Aurora Cannabis loses two of its most important executives at a crucial time as the company continues to struggle, Curaleaf secures $275 million in debt from a group of lenders, Illinois recreational marijuana retailers get ready for large customer turnout and high demand for New Year’s Day launch – and more of the week’s top MJ business news.

Week in Review: Aurora Cannabis execs depart, Curaleaf raises $275M in debt, IL readies for adult-use MJ sales & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 26, 2019
 

Ohio’s State Medical Board set a Dec. 31 deadline for petitions for new conditions and illnesses that would qualify for treatment by medical cannabis.

medical marijuana conditions is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

December 26, 2019
 

eu trademark marijuana cannabis

On December 12, 2019, the EU General Court upheld an EU Intellectual Property Office ruling that blocked registration of a mark that “an average person would assume references marijuana use” because it was “contrary to public policy.” The mark in question was CANNABIS STORE AMSTERDAM with green cannabis leaves in the background, and the court held that the public would perceive this mark (reasonably, we think) as referencing narcotics.

The court’s decision does not ban all marks containing a reference to cannabis, which is, under certain circumstances, legal in many EU countries. However, the court’s decision effectively blocks registration of marks that an average person would assume reference narcotic marijuana use.

The trademark applicant in this case was Santa Conte, and the goods and services covered by the application were as follows:

  • Baked goods, confectionery, chocolate and desserts; salts, seasonings, flavourings and condiments; ice, ice creams, frozen yoghurts and sorbets, savoury pastries;
  • Soft drinks; beer and brewery products; preparations for making beverages;
  • Services for providing food and drink.

One of the applicant’s arguments against refusal was that the mark did not reference any narcotic because the psychoactive substance in marijuana comes from the flower of the plant, not the leaves, as pictured in the mark. The court reasonably rejected this argument, stating that “the particular shape of this leaf is often used as a media symbol for marijuana, understood as the psychoactive substance that is obtained from the dried inflorescences of female cannabis plants.” The court also reasoned that what mattered most in the analysis of whether the mark should be rejected for public policy reasons was public perception, and that it didn’t matter if that perception was based on inaccurate definitions from a scientific or technical point of view, and “irrespective of whether the consumer has all the information available.”

The court also determined that the applicant’s use of the word “Amsterdam” in its mark would “be understood by the relevant public as referring to the city in the Netherlands which tolerates the use of drugs and is known for its ‘coffee shops.’”

For applicants seeking to register hemp or marijuana-related trademarks in the EU it will be important to consult with a trademark attorney to determine whether the mark could be considered contrary to public policy or to accepted principles of morality as perceived in reference to the relevant public of the EU. The court noted that the relevant public in this case was not only the English-speaking public, “but more broadly, the public in the European Union,” and that the relevant public should not be limited only to potential customers within a certain age range or within a certain member state that has taken a less strict regulatory approach to regulation of cannabis. The court also pointed out that in many countries of the EU, including Bulgaria, Finland, France, Hungary, Ireland, Poland, Slovakia, Sweden and the United Kingdom, products derived from cannabis with a THC content exceeding 0.2% are regarded as illegal narcotics.

This decision will be important for trademark applicants in the EU seeking protection of cannabis-related trademarks, and business owners should be careful not to adopt brand names that could be deemed contrary to public policy.


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George Scorsis Aphria

December 26, 2019
 

Illinois cannabis retailers are thrilled at the prospect of large crowds of customers and high demand at 6 a.m. CT New Year’s Day, which is when state lawmakers said several stores can begin adult-use recreational sales. Anticipating long lines and cold temperatures, companies are going the extra mile to keep customers happy. One business, for

Illinois marijuana retailers in potential $2B market expect long lines, possible supply shortages as adult-use sales kick off Jan. 1 is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional info, George Scorsis

December 25, 2019
 

hannukah cannabis

Wishing all of our readers, along with friends and families, the very best this holiday season.

Whether you celebrate Hanukkah, Christmas, Kwanzaa, Winter Solstice, Festivus, or something else, we hope you can kick back and enjoy this wonderful time of the year.

Happy holidays!


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george scorsis

December 24, 2019
 

Former Maryland state lawmaker Cheryl Diane Glenn, a leading advocate for legalizing adult-use marijuana in the state, is facing several federal charges for fraud and bribery, including an allegation she voted to increase the number of medical cannabis grower and processing licenses available to an unnamed, out-of-state company.

Marijuana charges is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

December 24, 2019
 

Linx Card, which touts itself as a “primary provider” of debit merchant services to marijuana retail stores, has faced a flurry of lawsuits in recent months from cannabis businesses that allege the California firm owes them millions of dollars. Linx includes a platform where customers can load up Linx “gift” or debit cards at a

Cannabis payment provider allegedly owes millions to MJ retailers is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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more details, George Scorsis

December 24, 2019
 

bank credit union hemp

Our firm represents a number of financial institutions and even a federal agency on banking state-legal cannabis. We have practiced in the space ever since the 2014 FinCEN guidelines were issued and it’s been slow going for the most part. The number one question we have received lately is: “do you know a bank or credit union that will bank my hemp-CBD business?” The answer to this question, in short, is probably not. And if a financial institution is indeed banking your hemp-CBD business, they’re certainly doing it at their own risk in the face of the Bank Secrecy Act and federal anti-money laundering laws. This is because the legal status of hemp-CBD federally is currently precarious at best.

Banking regulators recently clarified (including for credit unions) that financial institutions should have no issue banking lawful hemp businesses pursuant to the 2018 Farm Bill. Industrial hemp is now excluded from the definition of “marijuana” and off of the Controlled Substances Act (“CSA”) altogether, and we have now have U.S. Department of Agriculture (“USDA”) interim regulations for state and tribal hemp cultivation plans under the ’18 Farm Bill. However, no banking guidance exists for hemp-CBD businesses, which are very different from just hemp cultivators. And under the ’18 Farm Bill, lawful hemp businesses, federally speaking, mean only hemp cultivators/producers. Furthermore, the 2014 FinCEN guidelines have nothing to do with hemp or hemp-CBD businesses; they exist solely to guide financial institutions on how to provide financial services to state-licensed medicinal and adult-use cannabis businesses.

Banks and credit unions are in a weird legal area then when it comes to hemp-CBD. They have the green light on openly banking hemp cultivators like any other legal business and they have fairly robust guidance on how to (if they want to) bank state-licensed cannabis businesses via an elevated SAR filing system while following other invasive “know your customer” diligence protocol. But when it comes to hemp-CBD, there’s good reason though for banks and credit unions to be confused and/or conservative.

And here’s why.

While the 2018 Farm Bill removes hemp from the CSA and permits the cultivation of industrial hemp (which previously required a permit from the Drug Enforcement Administration) pursuant to state or tribal cultivation plan that must be approved by the USDA, that federal law is silent about the legality of hemp-CBD. Unless you’ve been living in a cave, you know that hemp-CBD is literally everywhere and in almost every consumer product you can think of (see here for a CBD-infused sports bra for example). Hemp-CBD is the main hemp consumer market, and businesses of all sizes are chomping at the bit in the food, beverage, and supplement world to get a handle on manufacturing, distributing, and selling hemp-CBD products as the newest wellness craze. At the same time, the Food and Drug Administration (“FDA”) and certain states (including California) are up in arms against hemp-CBD going into food and drinks, and the FDA  doesn’t consider hemp-CBD to be a supplement exempt from drug trials if you’re making curative or bodily health claims about hemp-CBD products. All told, the only legally “safe” hemp-CBD category is probably hemp-CBD topicals and makeup, but even that isn’t bulletproof given the FDA’s current position on hemp-CBD products generally.

Even though industrial hemp was legalized federally that doesn’t mean that all hemp-CBD products are legally kosher. It’s quite the opposite actually, and as a result financial institutions are pumping the brakes on banking hemp-CBD businesses, as they should. At the same time, financial institutions could certainly try to take cover within certain states that openly permit and regulate hemp-CBD products, including in food and drinks, pursuant to comprehensive state-based hemp-CBD laws. And financial institutions could also borrow diligence protocol from the FinCEN guidance to better verify the legality of a hemp-CBD operation under state law. Given the fact though that we don’t have any guidance from federal banking regulators specific to hemp-CBD companies, you’re unlikely to see financial institutions (which are already extremely conservative creatures) openly or knowingly serving hemp-CBD businesses. By extension, this is an area ripe for fraud and bad behavior around the provision of “alternative financial services” (similar to what we see occasionally in the state-legal cannabis world).

In the end, you’re more likely to get a bank account if you’re a hemp cultivator or a state-licensed cannabis business than if you’re a hemp-CBD business. If financial institutions consider servicing hemp-CBD businesses, they need to seriously study and understand the 2018 Farm Bill, the FDA’s position, and enforcement priorities around hemp-CBD businesses. They also need to be very familiar with the hemp-CBD laws in the states in which they operate so that they can perform sufficient diligence on their hemp-CBD customers and ensure they’re lawfully operating pursuant to state hemp-CBD laws.


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George Scorsis

December 24, 2019
 

‘Tis the season for increased holiday spending – and that includes outlays on recreational cannabis products, which saw average category sales increases of more than 50% in 2018 on items designated for both gift-giving and personal consumption. Data from Seattle-based cannabis analytics firm Headset shows that sales in the pre-Christmas week (Dec. 18-Dec. 24) in 2018

Chart: Pre-Christmas marijuana product sales increase up to 53% is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

December 23, 2019
 

The rollout of adult-use cannabis sales in Maine is being threatened by a lack of testing facilities

Marijuana Testing is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

December 23, 2019
 

The worst days of the vaping crisis are likely behind the state-legal marijuana industry, but many MJ firms are turning to technology to help further boost cannabis vape consumer confidence as well as deal with the dip in sales that followed the health scare. Examples of tech-based solutions available to cannabis companies include: Providing certificates of analysis (COA),

How cannabis vape companies are using technology to ensure consumer confidence and bolster sales is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

December 21, 2019
 

It’s no secret that California’s illicit cannabis market is alive and well; a recent audit showed that there are nearly 3,000 unlawful cannabis businesses in the Golden State. A few months ago, I wrote a post offering a few suggestions on how the state could combat the problem of illicit cannabis, and I am not the only one who has made these suggestions. Until very recently, it did not look like the state was taking serious action to do any of the things that I or others have suggested to combat the illicit market (in fact, the state recently announced tax hikes for cannabis which will just raise the price of legal cannabis and drive sales towards the illicit market). It seems now, however, that the state is following the traditional path of other states with regulated cannabis markets and stepping up enforcement.

Last week, for example, the Bureau of Cannabis Control (“BCC”) and Los Angeles officials raided 24 allegedly unlicensed businesses in Los Angeles. This follows on the heels of the BCC mailing hundreds of notice letters to landlords of allegedly unlawful cannabis businesses across the state informing them that they could be subject to criminal and civil liability. This kind of enforcement activity is a major uptick in comparison to what the BCC had previously done. Up until recently, the BCC had only sporadically raided and shut down allegedly unlawful operators.

The BCC is not the only agency that has begun ramping up enforcement. Just last week, the California Attorney General, on behalf of the California Department of Food and Agriculture (“CDFA”), sued a number of persons and entities, claiming that they had cultivated and processed cannabis without licenses. That lawsuit claims that the defendants are liable for civil penalties of up to three times the amount of the CDFA’s nearly $10,000 license fee per violation, which could be a massive penalty.

The penalties that the state can seek are no joke. Under state law, the California cannabis agencies are entitled to seek penalties of up to $30,000 per day/violation for unlicensed commercial cannabis activity. Anyone can do this math. Being in the illicit market is beyond a major risk, especially now that the government is doing something about it. Just consider how many days it takes to get from seed to harvest, and this fine could get into the millions very quickly. In fact, Stanislaus County recently made the news by implementing a $1,000 per plant, per day penalty, which according to one source could amount to $90 million for a 3,000 plant unlicensed grow over 30 days.

The enforcement trend is only going to increase. Just take a look at Washington, a state with a much more mature regulated recreational cannabis market. Any of our Washington cannabis lawyers will tell you that as the agencies became more sophisticated, they moved from compliance to enforcement (in fact, Washington went so full-in with enforcement that its legislators had to force the cannabis agency to focus its attention back on compliance by way of legislation).

In my opinion, enforcement is not the best way to combat the illicit market. No matter how high the penalties are, there will always be people who are willing to “risk it” and ignore the law. Prohibition never stopped many people from selling cannabis. The big difference between prohibition and enforcement, however, is that enforcement still leaves open the possibility that there is a regulated (yet very complicated and expensive) pathway to selling cannabis. But if the government really wants to eliminate the illicit market in California, lower taxes, lesser regulations, and expanded access to cannabis are a pretty good starting point.


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George Scorsis website

December 20, 2019
 
Cause of Pessimism in the Cannabis Sector
Alan Brochstein from 420Investor ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

December 20, 2019
 
Ravenquest BioMed (CSE:RQB) Responds to Patent Infringement Claim
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

December 20, 2019
 
420Investor, Chart Guys, Greenlane, Ravenquest Biomed & Xortx Therapeutics - Midas Letter RAW 303
The Final Midas Letter Raw of 2019 with James West and Ed Milewski. The first show of the new year will air on January 10th at 3PM EST Episode 303 Features: Alan Brochstein - 420Investor Charting Man Dan McDermitt - https://chartguys.com Greenlane - CFO, Ethan Rudin Ravenquest Biomed - George Robinson Xortx Therapeutics - Dr. Allen W. Davidoff Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

additional information, George Scorsis

December 20, 2019
 

Canadian license holder Pure Global Cannabis has become the latest marijuana firm to shed part of its workforce to conserve cash amid the challenging capital market conditions facing the industry. “This is about cost containment,” CEO Mel Panchal said in an interview. “It’s just prudent fiscal measures to ensure that we’re not burning unnecessary cash.

Pure Global Cannabis ‘temporarily’ lays off staff to conserve cash is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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more details, George Scorsis

December 20, 2019
 
Changing a Weekly Trend - An In-Depth Technical Analysis
See more from Dan at https://www.thechartguys.com ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

December 20, 2019
 

Greece is one of a half-dozen European countries hoping to cash in on medical cannabis exports. The country is also developing rules for domestic patients to access medical marijuana. Because Greece was among the first countries to allow medical cannabis cultivation in Europe, it already has attracted more than 100 companies in the application process seeking

Greece’s new government committed to cannabis sector success: Q&A with Pelopidas Kalliris of Ministry of Development and Investment is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

December 20, 2019
 

Cannabis vapes will not be among the mix of new edible, extract and topical products available in Alberta’s retail stores in the coming weeks, the provincial regulator said. In early December, Marijuana Business Daily reported that the province was weighing legal changes involving vaping devices – including those containing cannabis – as part of a review of

Alberta pulls plug on cannabis vape sales amid smoking law review is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

December 20, 2019
 

What is an injunction?

An “injunction” is an order of the Court that a certain act be done or not be done. There are three types of injunctions:

  1. A temporary restraining order (“TRO”) (issued on a temporary, emergency basis);
  2. A preliminary injunction (issued on a basis that usually lasts through the end of trial); and
  3. A permanent injunction (issued after trial and as part of the judgment).

When do you need an injunction?

An injunction is appropriate when the legal remedy (i.e., monetary damages) is inadequate. In this industry, we most commonly see examples in the partnership dispute context:

  • Your business partner is “freezing you out” of the business;
  • Your business partner is making transactions that are harmful to your business;
  • Your business partner is pursuing a competing business venture; or
  • Your business partner is straight up embezzling or stealing from the business.

Of course, other examples outside this context can include things like infringement of intellectual property, theft of business, or other breaches of contract or fiduciary duty.

How do you get an injunction?

The primary statutory authority for injunctions pending trial is Code of Civil Procedure §§ 525-533.  Combined with the California Rules of Court §§ 3.1150-3.1152, these statutes provide the basic injunction-seeking procedure.

The important thing to note here, is that the Court has broad discretion in granting or denying an application for a TRO or preliminary injunction, and the burden on the application is very high. The Court will balance these two factors:

  1. Who will suffer the greater injury? Will the applicant suffer more if the application is denied or will the defendant suffer more if it’s granted?
  2. What is the probable outcome at trial? Is there a reasonable likelihood that the applicant/plaintiff will win on the merits?

Let’s frame this in a common scenario: your business partner is stealing from your business. If you know that this is happening, it’s important to take action right away to stop the bleeding. You can’t and shouldn’t wait to go through litigation (which can take years to complete) before you do something. That’s where a TRO and preliminary injunction comes in. You can ask the Court to freeze the business’ assets or remove your business partner’s access to the same right away, as long as you can show:

  1. You will suffer the greater injury if your request is denied (in that you will be unable to stop the stealing, which will impact your and your business’ financial status vs. your business partner will be unable to keep doing what he shouldn’t be doing anyway); and
  2. There is a reasonable likelihood that you will win in the litigation (in other words, you have good evidence).

In addition to the balancing of these two factors, Code of Civil Procedure § 526(a)(2) also lists the traditional consideration of “irreparable harm.” This factor obviously relates to factor 1 above, but in California, it’s also an entirely separate consideration. It will be really hard to get a TRO or preliminary injunction unless you can show that you will imminently be significantly damaged in a way that cannot be repaired later in time.

If you find yourself in a situation where an injunction might be appropriate, begin documenting EVERYTHING and reach out to our litigation team. We can help you create an effective strategy that outlines why injunctive relief is necessary and appropriate in your case, sets forth the irreparable harm you will suffer, and includes good admissible evidence to support your application.


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George Scorsis

December 19, 2019
 

U.S. Senate Banking Chair Michael Crapo, an Idaho Republican, laid the foundation for his own version of cannabis banking reform with a potentially onerous THC potency cap when he released a statement saying he doesn’t support the Secure and Fair Enforcement Banking (SAFE) Act as is. In September, the U.S. House of Representatives approved the SAFE Act, which would

Key US Senate leader signals major changes to cannabis banking bill, dimming prospects for significant reforms in 2020 is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

December 19, 2019
 

Canada’s federal health department and tax collection authority are teaming up to offer an information session for micro-class cannabis entrepreneurs in Vancouver, British Columbia. Health Canada and the Canada Revenue Agency (CRA) are hosting the seminar in Vancouver on Jan. 10. “This information session is targeted towards current and prospective applicants applying for a cultivation,

Health Canada, CRA to hold info session for micro-class cannabis businesses is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

December 19, 2019
 

According to recent reports, the hemp-derived cannabidiol (“Hemp-CBD”) market is expected to grow by 700 percent by 2020 and grow to $2.1 billion by 2020. Given this significant growth forecast, sensitive business information (also known as trade secrets) has become an incredibly valuable asset for Hemp-CBD stakeholders. Realizing value from those trade secrets requires sharing them with business partners and employees. Therefore, it isn’t surprising that in the past few months our firm has drafted numerous confidentiality agreements, also known as non-disclosure agreements (“NDA”), to protect our Hemp-CBD clients’ trade secrets. This post provides an brief overview of what an NDA is and which provisions makes it a well-drafted agreement.

WHAT IS AN NDA?

An NDA is a contract in which the person receiving the sensitive information (“Receiving Party”), usually a business partners, an employee, or a customer, agrees not to share that information with any other party without the prior written approval of the owner of this information (“Disclosing Party”).

Most states, including Oregon, have adopted a version of the Uniform Trade Secrets Act (“UTSA”). Under Oregon law, a trade secret is defined as

information, including a drawing, cost data, customer list, formula, pattern, compilation, program, device, method, technique or process that:
(a) Derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and
(b) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.”

This means that to be legally protected, business information must be valuable and its owner must take reasonable steps to keep it secret. For example, informing new employees that confidential information will be shared in the course of their employment, specifically when requiring them to execute an NDA, should prove that reasonable efforts were made.

In addition, NDAs are enforceable provided they are “fair,” meaning the NDA is not overly restrictive or unduly burdensome on the Receiving Party.

WHAT PROVISIONS SHOULD BE IN AN NDA?

Whether an NDA is needed for business or employment purposes, an effective NDA should include the following provisions:

  1. A clear definition of the confidential information that will be shared with the Receiving Party during the term of the agreement. Depending on the state law that governs the NDA, an overly broad definition could expose the Disclosing Party to legal actions and render the NDA unenforceable.
  2. The reasons for which the sensitive information is shared with the Receiving Party.
  3. Terms under which the sensitive information may be disclosed. Generally, confidential information may be disclosed to a third-party on a need-to-know basis, such as when required by law.
  4. The consequences for disclosing the confidential information, which usually include large monetary fines and a court order preventing the breaching party from continuing to disclose the protected confidential information.
  5. The length of time during which the Receiving Party must retain the information confidential. Ideally, the Receiving Party will be required to maintain the confidential information secret after their employment agreement terminates.

NDAs are a relatively inexpensive investment for companies given the protection they afford over valuable business information. Accordingly, any business, particularly those engaged in growing markets like Hemp-CBD, should consult with experienced business attorneys to help them prepare sound NDAs.

 


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George Scorsis Liberty Health Sciences

December 19, 2019
 

A judge cleared the path for Montana to enforce a temporary emergency ban on flavored vaping products, including those containing THC

Marijuana vaping ban is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 18, 2019
 

New Zealand completed the regulatory foundation for its medical cannabis sector this week, making a key concession by not requiring specialist approval for prescriptions. When the new rules take effect April 1, 2020, all general practitioners will be able to prescribe medical cannabis products without oversight from a specialist. Proposed medical cannabis regulations in July considered

New Zealand finalizes groundwork to launch medical cannabis industry in April is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 18, 2019
 

Insurance reimbursements for medical cannabis in Germany reached a new high during the July-September period, according to recently published data by the German National Association of Statutory Health Insurance Funds (GKV-Spitzenverband). However, the data also suggests that growth in medical marijuana sales is losing momentum as double-digit gains in MMJ reimbursements become harder to maintain. Statutory health insurance reimbursements

Analysis: Germany’s medical cannabis market loses momentum but on pace to surpass 100 million euros is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

December 18, 2019
 

This is the second in a three-part series explaining why companies making and sell hemp-derived CBD products ought to be concerned about state consumer protection laws. Last week we looked at Oregon and an article on California is in the works. It probably comes as no surprise that companies selling hemp-derived CBD in the State of Washington ought to be very careful in how they market and advertise their CBD products.

Overview of Washington’s Consumer Protection Act—Damages, Attorneys’ Fees, and Treble Damages

The principle consumer protection law in Washington is the Consumer Protection Act (CPA). Enacted in 1961, the CPA was modeled after Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, and its purpose is to protect the public and foster fair and honest competition. The CPA prohibits “unfair or deceptive acts or practices in the conduct of any trade or commerce.” “Unfair or deceptive acts or practices” is not defined and its meaning evolves via reasoned judicial decisionmaking.

Actions under the CPA may be brought by Washington’s Attorney General or by “any person” who is injured in her business or property. A private litigant may bring suit for injunctive relief, damages, attorneys’ fees and costs, and treble damages. Washington courts generally affirm awards of attorneys’ fees whenever there is an “injury” cognizable under the CPA and a trial court may award treble damages based on “actual” damages awarded by a jury up to a maximum of $25,000.

Washington does not require a consumer transaction between the parties, under the guise of a separate standing requirement. In other words, an actionable violation may occur without any consumer or business relationship between the plaintiff and the defendant. For hemp-CBD companies, this means an increase in the number of potential plaintiffs and a corresponding increase in the risk of being sued.

Elements of a Claim under Washington’s Consumer Protection Act—Intent to Deceive Not Required  

A claim under the CPA may be predicated upon (1) a per se violation of statute, (2) an act or practice that has the capacity to deceive substantial portions of the public, or (3) an unfair or deceptive act or practice not regulated by statute but in violation of public interest.

The plaintiff in a private CPA claim must prove (1) an unfair or deceptive act or practice, (2) occurring in trade or commerce, (3) affecting the public interest, (4) injury to a person’s business or property, and (5) causation. An act is “deceptive” if it is likely to mislead a reasonable consumer.

Notably, a plaintiff need not show that the act in question was intended to deceive the public, only that the alleged act “had the capacity to deceive a substantial portion of the public.” Hangman Ridge Training Stables, Inc. v. Safeco Title Insurance Company, 105 Wash.2d 778, 785, 719 P.2d 531 (1986). The means that a plaintiff suing your CBD company does not have to prove that your marketing and advertising was “intended” to deceive the public. Indeed, even a truthful statement may be found deceptive based on the “net impression” it conveys.

A case study establishes the importance of carefully crafting advertisements for CBD products

A recent decision by the Washington Court of Appeals, State v. Living Essentials, LLC, 8 Wash. App. 2d 1, 436 P.3d 857 (2019), highlights the risks to hemp-CBD companies in making advertising claims about their products. We have written quite a bit about these risks over the past year, including the rise in consumer class actions against hemp-CBD companies. Worth noting here is that the appellate court affirmed the trials court’s imposition of a $2,183,747 civil penalty on Living Essentials, who also was required to pay $1,886,866.71 in attorneys’ fees and $209,125.92 in costs.

The State of Washington sued Living Essentials under the CPA alleging Living Essentials made deceptive advertising claims about its product, 5-Hour ENERGY®. After an 11-day bench trial involving testimony from over witnesses and the admission of some 500 exhibits, the trial court agreed that Living Essentials’ advertising campaigns violated the CPA. (The costs of defending this lawsuit must have been enormous).

The trial involved three claims by Living Essentials, each found deceptive and in violation of the CPA:

  1. “the key vitamins and nutrients [in 5-Hour ENERGY®] work synergistically with caffeine to make the biochemical or physiological effects last longer than caffeine alone.”

The trial court found this deceptive because the studies presented by Living Essentials did not “clearly establish” that 5-Hour ENERGY®’s vitamins and nutrients would work synergistically with caffeine to make these benefits last longer than with caffeine alone. This claim was “plausible . . . but it remain[ed] a hypothesis, not an established scientific fact.”

  1. that the decaf variety of 5-Hour ENERGY® providing energy, alertness, and focus “for hours”;

The trial court found that Living Essentials lacked competent and reliable scientific evidence to make this claim.

  1. that 73% of doctors would recommend 5-Hour ENERGY® in a national television ad proclaiming:

We asked over 3,000 doctors to review 5-hour Energy®, and what they said is amazing. Over 73% who reviewed 5-hour Energy® said they would recommend a low calorie energy supplement to their healthy patients who use energy supplements. 73%. 5-hour Energy has 4 calories and is used over nine million times a week. Is 5-hour Energy right for you? Ask your doctor. We already asked 3,000.

The trial court found this advertisement deceptive because the “impression” left by the ad—that a majority of doctors would recommend 5-Hour ENERGY® to their patients—was not true.

For the sake of brevity, this post does not address every ground of reversal urged by Living Essentials. Instead this post focuses on the overlap between the CPA and the Federal Trade Commission Act (FTCA).

Court of Appeals does not adopt the FTCA’s “prior substantiation” doctrine wholesale, but permits its use in evaluating deceptive advertising claims under the CPA

On appeal, Living Essentials challenged the trial court’s use of the Federal Trade Commission’s “prior substantiation doctrine.” Under the “prior substantiation doctrine,” an advertiser must have a “reasonable basis” for any claim that the product successfully performs an advertised function or yields an advertised benefit. And the advertiser must have some recognizable substantiation for the representation prior to making it. Where the advertiser lacks adequate substantiation, the advertisement is deceptive as a matter of law under Section 5 of the FTCA.

The Court of Appeals held that the trial court did not err in considering this doctrine because it specifically declined to rely only on prior substantiation. Instead the trial court carefully reviewed Living Essentials’ claims of prior substantiation, post-claim studies, and expert testimony. In doing so the trial court reasonably concluded Living Essentials’ claims superior-to-coffee and decaf claims were materially misleading.

The court’s reasoning likely means CBD companies need competent and reliable accepted scientific evidence of the benefits of their products. Although there are numerous studies regarding the benefits of CBD, it is an altogether different question whether such studies would satisfy a court. (E.g. see this recent “what we know what we don’t” post on CBD by the Harvard Health Blog). Notably, Living Essentials challenged the use of a “competent and reliable” standard with respect to prior substantiation and was quickly rebutted by the Court of Appeals which reasoned that standard has been a “benchmark” since at least 1984.

The Court of Appeals distinguished between levels of substantiation required for claims that “relate to consumer health” and claims that do not

“Under the FTC’s prior substantiation doctrine, the court must determine the appropriate level of substantiation required for a claim to have a reasonable basis.” Living Essentials argued the trial court erred by using standard for claims that “relate to consumer health”— for which the FTCA requires a high level of substantiation. In such cases the representation must be non-misleading and be backed by backed by competent and reliable scientific evidence that is sufficient in quality and quantity to substantiate that the representation is true.

Although Living Essentials marketed 5-Hour ENERGY® as a dietary supplement, this did not necessarily mean Living Essentials’ representations were also health claims. And indeed they were not because Living Essentials did not make any claims that 5-Hour ENERGY® had “any direct impact on a disease or health related condition.” Accordingly, held the Court of Appeals, the trial court erred in using that standard for assessing substantiation.  (Note: the FDA does not allow marketing CBD products as dietary supplements).

Nonetheless, Living Essentials did not secure reversal. The CPA requires an advertiser have some “recognizable” substantiation for the representation prior to making it. Here, Living Essentials failed to present evidence that “anyone with any science training” had ever assessed the advertising claims and the science backing up those claims. (Asking an advertising director to conduct internet research was not adequate). Consequently, the trial court’s error in applying the higher standard did not require reversal.

Conclusion

The implications of this discussion for any company advertising CBD in Washington ought to be clear: be very very careful or you may find yourself defending an action that may subject you to injunctive relief, damages, attorneys’ fees and costs, and treble damages. We recommend that operators in Washington talk to their attorneys about labeling, marketing, and advertising practices before becoming a target.


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George Scorsis website

December 17, 2019
 

The Italian Ministry of Health plans to almost triple the quantity of medical marijuana to be produced domestically in the coming year. This signals the intention of the government to rely to a lesser degree on imports in 2020 amid a growing demand. As per the country’s psychotropic substances quota, which covers medical cannabis, the health ministry is allowing

Italy to nearly triple domestic medical cannabis production in 2020 is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

December 17, 2019
 

As a corporate and transactional attorney focused mostly on cannabis, I see my fair share of financing documents and transactions involving cannabis operators. It’s no secret many cannabis businesses can’t get bank accounts or loans or lines of credit from financial institutions because of the Bank Secrecy Act and federal anti-money laundering laws — despite current FinCEN guidance. It’s also no secret many cannabis businesses need significant start-up capital to even get to state licensure and  operation in a multitude of states because of significant barriers for licensing, like liquidity requirements, wildly competitive and exclusive licensing regimes, build out costs, local permitting and licensing, need for city and county approvals, leasing and other real property costs, staff, inventory, and the list goes on and on.

The concept of starting a cannabis business on a shoestring budget has never really existed. As a result of this, I often see loan agreements and promissory notes between individuals/companies and cannabis operators of all sizes on loans secured by collateral belonging to the cannabis operator or cannabis business. In these sorts of loan deals, as is true in any secured lending situation, the value of the collateral is what matters most, and with cannabis businesses, secured parties typically want a few prized items included in the collateral description, such as the cannabis business ownership interests, its license, its inventory, its equipment, and its accounts receivable. However, unlike in more traditional secured transactions, foreclosing on a cannabis business and its secured assets depends very much on state law and it is often a very complicated process.

My clients that lend to cannabis businesses routinely ask me whether their security agreements will be enforced in the event of a dispute. My usual answer is, “Yes, if the security agreement will be/should be upheld pursuant to the state laws in which the loan was made or where the cannabis business operates.” In other words, this only occurs in a state with laws that recognize commercial cannabis conduct as legal. These states usually enforce cannabis contracts despite federal illegality. In cannabis legal states like California (where I’m located), the state usually has laws making commercial cannabis contracts enforceable. Smart lenders ensure their security agreements are enforceable based on the cannabis laws in the state in which any disputes will be handled.

Once a lender gets past the enforceability hurdles, its next legal hurdle is usually state-required disclosures. Depending on the state, if you’re a secured party dealing with a cannabis business, you almost certainly will need to disclose your financial interest in the cannabis business to state regulators in a timely and transparent manner (as required under the specific state’s law) or the state will not allow your loan to go through at all. It is important to mention that the Uniform Commercial Code (“UCC”) adopted in the relevant state still applies, and this means your security agreement should be drafted and authenticated in accordance with state UCC requirements.

In almost all cannabis states, state licenses are not transferable, and they therefore should not be listed as individual collateral in a security agreement. If a lender wants a cannabis license in a security agreement, it almost always should get the cannabis business to pledge its ownership interests in a separate pledge agreement. And if a cannabis business signs away its license and then seeks to transfer that license in the event of default, most cannabis states will just cancel the license due to an illegal transfer. In addition, if a lender wants the cash belonging to the cannabis company or its customer accounts or its inventory, the lender usually will first have to become an “owner” of the cannabis business, which creates its own complex and lengthy regulatory process outside the confines of the UCC.

Of course, certain other collateral belonging to the cannabis business, like its equipment, won’t trigger these ownership issues because foreclosing on equipment usually does not impact control of the business or its license.

In certain states, merely holding a security interest from a cannabis business does not trigger any disclosure requirement. But in some of these same states, the loan to the cannabis business triggers minimal disclosure requirements because the state considers the originating loan a minor financial interest in the business. If your collateral list includes ownership interests in the cannabis business or its inventory, most states require you first go through mandatory personal and financial disclosures to foreclose on that collateral. This is another reason why cannabis security agreements are not your run-of-the-mill secured transactions and why it is so critical for cannabis security agreements to properly account for these particular regulatory issues.

Bottom Line: Lenders should proceed with caution with cannabis secured transactions and not just trot out their boilerplate security agreements/pledge agreements because those do not sufficiently address the unique issues presented by cannabis companies.


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George Scorsis

December 17, 2019
 

The cannabis industry is at a crossroads where companies will need to differentiate based on profitability, strong yet simple capital structures and investor communication.

Cannabis firms must focus on profitability, communication for long-term viability is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

December 17, 2019
 

California officials continued their crusade against the illicit cannabis market in December with 24 search warrants served on illegal cannabis shops in the Los Angeles area.

Illegal marijuana crackdown is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 16, 2019
 
Paul Bissonnette on CBD Use in Sports
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addiitional information, George Scorsis

December 16, 2019
 

Federally licensed cannabis producer Hexo recorded net revenue of 14.5 million Canadian dollars ($11 million) in its most recent quarter, down slightly from the previous quarter’s CA$15.4 million. The Gatineau, Quebec-based company’s net loss widened to CA$62.4 million in the period ending Oct. 31 from CA$56.7 million in the last quarter. About three-quarters of the

Canadian cannabis producer Hexo’s sales decline as net loss grows is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 16, 2019
 

USMCA cannabis unites states mexico canada marijuana

Last week, amid the impeachment turmoil, President Trump and Democratic leadership somehow agreed on a landmark international trade agreement. The package is generally referred to as USMCA (U.S-Mexico-Canada Agreement), or sometimes as NAFTA 2.0. Although the White House has not yet released a final copy of USMCA, its contents are widely known. As expected, USCMA will not include mention of cannabis. This does not mean that cannabis (specifically, non-hemp cannabis, aka marijuana) won’t make its way into North American trade. In fact, USMCA could become a promising forum for cannabis trade policy.

USMCA was first announced in September of 2018. Around that time, certain commenters argued that cannabis should be included in NAFTA 2.0, including former Mexican President Vicente Fox. At that time, Canada was rolling out its program of federal legalization; Mexico was seemingly close behind (Mexico will launch its program in 2020, as explained here). Under USMCA, the U.S. will be sandwiched between two trading partners that have begun to treat cannabis similarly to other produce commodities; and many states within the U.S. have legalized cannabis to boot. Because federal legalization in the U.S. is a “when” and not an “if”, USMCA could provide the platform for three-state cannabis trade. There are a couple of ways this could happen.

The first route is straightforward: cannabis will come in through a rutted pharmaceutical path. Democrats succeeded in paring back original USMCA text calling for “biologic drugs” to receive 10 years of intellectual property protection, but the new USMCA intellectual property chapter is said to include more stringent protections for patents and trademarks than NAFTA (including for biotech). Because cannabis patents are now prevalent and because FDA has begun to approve cannabis drugs, USMCA is primed for cannabis to some extent already.

The second route requires some legwork, but ultimately is more comprehensive. Like NAFTA, USMCA will include a Free Trade Commission (“FTC”) comprised of delegates from each party-country. Those delegates will be tasked with monitoring and implementing USMCA. Crucially for cannabis, the FTC may form “working groups” for particular topics. There will be no limitation as to what might be addressed in a working group: rather, the delegates can work on whatever seems relevant.

It is not uncommon for trade topics to get hammered out first inside of regional trade agreements, and cannabis would likely follow this path. These new “disciplines” are eventually then raised at the World Trade Organization or in other treaty contexts. With respect to USMCA, the initial focus for cannabis would be to identify principles or rules for a coherent policy to form a North American market for the cannabis trade. Given that the U.S. is also a party to the Central American Free Trade Agreement (CAFTA), that treaty could be folded into the process.

Do we think all of this is realistic? Absolutely, and it could happen in any number of ways. Here in Oregon, for example, pro-cannabis U.S. Senator Ron Wyden sits on the USMCA trade committee. The Pacific Northwest has a prominent role in trade policy—especially with Canada—so the required base of political support is already in place. Oregon has shown thought leadership on cannabis export generally, and state officials coordinate well with Mr. Wyden and other federal representatives. Industry should push here.

The FTC path would also require convincing each USMCA country to staff a working group. In the U.S., staffing for USMCA (as with CAFTA and similar treaties) would come through the Office of the U.S. Trade Representative and via congressional trade committees. Expect high interest from Mexico and especially from Canada to build out cannabis channels: each country will have a generational head start on the U.S. with respect to cannabis as a national, scaled commodity. In fact, Canada is a leader in cannabis export today.

No one is really talking about cannabis and the USMCA, but it is likely that cannabis will be traded in the USMCA framework. This will happen both inside and outside the pharmaceutical context, just as cannabis is traded domestically in the U.S. today.

For more on the international cannabis trade, check out the following:


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George Scorsis Aphria

December 16, 2019
 

Unionization is spreading through the cannabis industry, spurring some companies to sign labor agreements or "peace pacts" but causing other businesses to resist labor organizers.

Cannabis labor peace requirements expand, sometimes sparking conflict in legal marijuana markets is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 15, 2019
 

montana hemp cbd

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA.

This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday, we summarize a new state in alphabetical order. Today we turn to Montana.

When it comes to Hemp CBD, there’s not a ton of guidance in Montana. Like many other states, Montana has not adopted a regulatory framework for the sale of Hemp CBD . What we do know is that the Montana Department of Public Health and Human Services (“DPHHS“) has adopted the federal Food and Drug Administration’s position on the unlawful sale of CBD-infused food and dietary supplements. The DPHHS policy is also a bit vague when it comes to manufacturing hemp products in Montana, referring companies to the FDA. This does not offer much guidance for Montana Hemp CBD companies who wish to make non-ingestible products, such as Hemp CBD topicals.

That said, the DPHHS policy really only tracks the FDA’s policy and even notes that “CBD products marketed not as food and do not make any health or health-related claims, should not be considered a workload obligation for the local health authority for possible enforcement action”. In other words, the policy recommends that only items marketed as foods and/or that make health claims should be the subject of local scrutiny. It does not take off the table the possibility that other products (like cosmetics) could be barred, but it certainly makes clear that it’s not a priority.

The cultivation of hemp is lawful and regulated in Montana. Cultivation and processing are overseen by the Montana Department of Agriculture (“MDA”). Draft sampling and testing regulations were published in August 2019 and the MDA indicated that hemp sampling is now underway in Montana.

Interestingly, MDA publishes guidance for hemp processors, which says: ” The processor license allows licensees to produce derivatives that may be included in products for food, fiber, oils, supplements or drugs (excluding THC) for the wholesale or ingredient market.” It may seem like MDA didn’t get DPHHS’ memo, but MDA goes on to note: “Hemp processors must comply with city, county, and tribal ordinances and laws. The approval of manufactured hemp derived products at the retail level continue to be subject to the laws and regulations of the United States Food and Drug Association (FDA) and the Montana Department of Public Health and Human Services (DPHHS).”

At the end of the day, this means that hemp processors will still need to follow DPHHS’ (and by extension, the FDA’s) policies when processing hemp. But this isn’t terribly clear from the hemp processor application itself, which notes that hemp can be used to make foods. This may be a reference to hemp seed oils, which are allowed in Montana and under FDA policies, but that may not be known to many people who are applying to process hemp in Montana.


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George Scorsis Liberty Health Sciences

December 14, 2019
 

oregon china hemp

If you are an eccentric person like me and follow the Oregon Department of Agriculture (“ODA”) on Twitter and have a deep interest in international business (especially the trade war with China), you will have noticed that ODA recently (and proudly) posted something that I see as both positive and negative for the hemp industry:

ODA’s #Cannabis Policy Coordinator, Sunny Summers & @OSUAgSci meet with researchers from China’s Heilongjiang Academy of Agricultural Sciences Institute of Industrial Crops to talk about how Oregon can ship #hemp to #China! #WhatWeDo #AgIsCool #TuesdayThoughts #trade #agriculture

When I saw this, I cringed a bit, even though the benefits to Oregon and the U.S. are clear:

  1. Oregon marijuana farmers who recently produced a 2x surplus of marijuana can switch to growing hemp for export markets, as long as Oregon hemp farmers can grow hemp strains that fit the definition of hemp under the newly released USDA interim final rules;
  2. other U.S. states with hemp surpluses will be able to piggyback on Oregon’s engagement with international export markets because the coveted “grown in U.S.A.” brand strategy applies to Washington, California, and Kentucky hemp just as much as it applies to Oregon;
  3. disenfranchised farmers, especially those who have seen the demand for their tobacco crops diminish, can stay on the farm and keep the U.S. heartland throbbing with crops and cash (see here);
  4. exporting hemp means that the U.S. moves closer toward addressing our trade imbalance with the rest of the world, including China (the U.S. became a consistent net exporter of LNG (liquid natural gas) in 2018); and
  5. the U.S. can export its culture of quality and innovation in hemp to the rest of the world, which will continue to provide positive external benefits across many international industries and in our recently flagging international relations.

But there are potentially negative aspects of Oregon’s Department of Agriculture engaging with Chinese researchers. I raised my eyebrows at the ODA post because in addition to this blog, our firm publishes a sister blog, the China Law Blog, where we write on international business (especially China) and frequently warn our readers to protect their intellectual property all costs, whether you are at home or abroad.

If you follow our blog or keep up with international news, you know that researchers with Chinese ties who work in the U.S. are being scrutinized more closely. In the past, they have often been heavily involved in graduate programs where a lot of U.S. R&D occurs, and U.S. academic institutions are constantly wrestling with the dynamics of: potentially losing tuition dollars from fewer mainland Chinese students enrolling in the U.S.; losing grant dollars (both from the U.S. and Chinese governments, for very different reasons); losing prestige in the U.S. for engaging too much with China; losing prestige internationally for failing to hire capable researchers who publish influential scholarly works; monetizing R&D projects; and protecting intellectual property stemming from R&D projects.

Chinese academics’ largely unfettered, unmonitored, and unprecedented access to U.S. educational institutions has provided fertile ground for Chinese economic espionage. In short, whenever China is involved, you (I’m looking at you, ODA) need to keep your eyes open. China has a publicly acknowledged program of acquiring U.S. intellectual property any way it can (at least it is publicly acknowledged and documented by U.S. authorities – see here and here), and that includes by making relationship inroads with government contacts, trade groups, educational institutions, and directly with hemp farmers and businesses.

The geopolitical ramifications of engaging in international hemp business relationships are really inescapable, whether you are a hemp farmer who “only” sells to the local market, the ODA trying to promote Oregon hemp and hemp products, a hemp trade group, or a multinational corporation engaging in a sustained and well-planned M&A program to enhance your market share in the global hemp marketplace. China and the U.S. continue to be at loggerheads over many aspects of bilateral and international trade, but even with the trade war raging at the national level, U.S. and China subnational groups continue to engage with each other, working to establish and enhance relationships that can outlast or at least mitigate the effects of the trade war.

Ultimately, Oregon is simply doing what Utah did earlier this year when Utah welcomed over 85 Chinese government officials to discuss Utah-China business relations. With ODA, our advice remains unchanged: be on your guard where China is involved. Use whatever applicable cliché you have: trust but verify; speak softly and carry a big stick; keep your friends close and your enemies closer; or tread lightly on thin ice. And make sure that you clearly understand all of the potential angles your Chinese counterparts may be working. We will work to keep you in the know as U.S. businesses try to engage further with the international hemp community.


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George Scorsis Liberty Health Sciences

December 13, 2019
 

LAS VEGAS – Cannabis experts took to the MJBizCon stage this week to share marijuana business know-how and best practices, touching on everything from the vaping epidemic to corporate integration challenges surrounding M&As to the future of marijuana retail and more. Rebounding from the vaping epidemic What can legal marijuana vape manufacturers and retailers do

MJBizCon 2019: Marijuana professionals offer up business insights on vaping crisis, M&A, retail best practices & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional information, George Scorsis

December 13, 2019
 
Dan Mitre on New Wave Esport
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George Scorsis

December 13, 2019
 
StoneCastle Investment
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George Scorsis Liberty Health Sciences

December 13, 2019
 

The two most important cannabis markets in Canada experienced the worst sales of adult-use products per capita in the first year of legalization, reflecting struggles of officials in those provinces to get a handle on the policy tools at their disposal to regulate the industry. From October 2018 through September 2019, British Columbia’s marijuana stores

BC, Ontario see lowest cannabis sales per capita in first year of legalization is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

December 13, 2019
 

cbd social media

Last month, comedian Sacha Baron Cohen delivered a now widely shared keynote speech at an Anti Defamation League event in New York, in which he spared no harsh words for social media companies who he claims provide a platform for hate speech and the proliferation of fake news. In his speech, Cohen offered sharp criticisms for social media executives’ weak justifications for allowing this to occur, and offered suggestions on how to clean up the mess he claims they created. Cohen’s criticisms aren’t new: Facebook reportedly announced that it would not fact check political ads, and Twitter has reportedly not banned certain forms of hate speech because such bans would allegedly end up blocking some political accounts.

Given all of the misconduct that social media companies allegedly let fly under the radar (mostly on the excuse that doing anything about it would infringe free speech), it may shock many readers to learn where many social media companies actually draw a line in the sand: hemp-derived CBD advertisements.

For some reason, if you are a politician who wants to run attack ads on a competitor using completely fake information, you will probably be able to find some platform that allows you to do it, if you pay enough. But if you are a small business that sells a hemp CBD bath bomb, you run the risk of having your entire social media account deleted without any repercussion or remedy. This makes no sense.

Over the past few months, there have been many reports detailing how social media companies have banned user accounts for advertising CBD products (see here, for example). Many social media companies, like Facebook and Instagram (which is owned by Facebook), do not even have a public term and condition or policy that states that CBD advertisements are prohibited anywhere on their website. Apparently, Facebook’s bans have been justified by language on its website that says: “Ads must not promote the sale or use of unsafe supplements, as determined by Facebook in its sole discretion.” But right below that language, the policy lists a series of examples, and does not include CBD, which Facebook could easily include to promote transparency.  Nevertheless, according to many articles published this year, many small businesses have lost their accounts for advertising CBD products.

Despite that Facebook doesn’t publish any terms or conditions relative to CBD, according to the Verge, Facebook’s ban is really meant to target ingestible products. According to Digiday, Facebook apparently won’t ban advertisements regarding topical hemp products. When the Digiday post came out, I attempted to verify whether Facebook had published any information that would give CBD advertisers guidance on what they can and cannot publish, but from what I can tell, the Facebook terms have not changed. All that we have are a few statements from various third-party journalists who are not affiliated with Facebook or other social media companies, and whose statements are not binding on the social media companies. Nothing is stopping Facebook from continuing to ban people who advertise any kind of CBD products.

For any small business that sells CBD products, reliance on these posts can be dangerous. Any small business owner knows that getting social media followers takes time, and often, lots of money. With the potential to have an account shut down, and to lose all the good will associated with that account, social media advertising can be a serious gamble for many businesses. There is no clear appeal right for these denials and the idea of taking a social media giant to court (or forced arbitration) is just unfathomable for almost any small business.

Of course, there are some exceptions to this rule. Twitter, for example, has express (though overly restrictive) rules regarding CBD advertising in the United States, which I’ve copied below:

       We permit approved CBD topical advertisers to target the United States, subject to the following restrictions:

  • Advertisers must be licensed by the appropriate authorities and pre-authorized by Twitter
  • Advertisers may only promote non-ingestible, legally derived CBD topical products
  • Advertisers may only target jurisdictions in which they are licensed to promote these products or services online
  • Advertisers may not target Georgia, Idaho, Iowa, Mississippi, Missouri, Nebraska, Oklahoma, South Dakota, and Virginia
  • Advertisers are responsible for complying with all laws and regulations
  • Advertisers may not target users under the age of 21
  • Contact Twitter if you are interested in this option.

 

There is no clear appeal right for these denials and the idea of taking a social media giant to court (or forced arbitration) is just unfathomable for almost any small business.These are extremely restrictive and paternalistic regulations. Ironically, Twitter’s advertising policy places more restrictions on CBD advertisers than many states do on CBD companies. These terms are so broad that it is likely that many companies currently advertising CBD on Twitter are not in compliance with them, and are therefore risking their accounts.

All of this is compounded by the fact that many CBD companies may not use their own accounts for CBD advertisements and instead use brand ambassadors or influencers to advertise for them. Earlier this year, I wrote about many of the dangers that can come with using social media influencers to advertise cannabis products, but a lot of those risks are the same for hemp-derived CBD advertisements. There are strict Federal Trade Commission (“FTC”) guidelines covering what endorsers can and can’t say and requiring them to disclose the fact that they are paid for their endorsements in the advertisements, which raise three distinct problems for CBD companies.

First, brand ambassadors or influencers can’t do things that an actual CBD company can’t do. The FTC has played a fairly active role in sending warning letters with the Food and Drug Administration (“FDA”) to companies that the two agencies believe are engaged in unlawful advertising online. As the FTC recently told Vice, companies can be held accountable for any unsubstantiated claims made by influencers on the companies’ behalf (and obviously, so can the influencers). But when it comes to social media companies, it is irrelevant who is making a prohibited advertisement. Whoever violates a social media company’s policies (apparently even the undisclosed ones) risks being banned.

Second, if an influencer is banned after making claims paid for by a CBD company, this will likely lead to disputes. Like small businesses, influencers work very hard to build followers. If they lose accounts based on ads requested by companies, that is like losing business. They may sue the CBD companies for some kind of compensation. It is critical for CBD companies who are willing to risk advertising on social media to have actual contracts with their advertisers.

Finally, CBD companies cannot use influencers to hide the fact that they are advertising. I have heard many times that some social media companies won’t take action against people for just discussing CBD products (though I have never been able to verify that claim since social media companies generally do not publish anything in their terms and conditions on CBD). If that claim is true, it may seem advantageous to just pay an influencer to say things about a company’s CBD products that the company would be prohibited from advertising itself. This is flatly prohibited under FTC rules. Any paid relationship must be prominently disclosed. In fact, earlier this year, the FTC released guidelines for social media influencers to help them make the proper disclosures. This follows on the heels of earlier FTC guidance that is highly particularized, for example:

“When people view Instagram streams on most smartphones, longer descriptions (currently more than two lines) are truncated, with only the beginning lines displayed. To see the rest, you have to click ‘more.’ If an Instagram post makes an endorsement through the picture or the beginning lines of the description, any required disclosure should be presented without having to click ‘more.'”

The point is, there is no hiding the ball when it comes to influencer advertising. Companies have to be honest, and this can lead to trouble for them if they don’t follow the rules.

One area where there are actually clear rules is cannabis. Facebook and Instagram, for example, ban cannabis advertisements. These bans actually make sense given that federal law still prohibits cannabis, and because the bans are actually published on viewable terms and conditions for people to comply with.

Social media companies have largely remained outside the scope of federal regulations to date, though that may change in the future. From their standpoint, it makes sense to ban a product that is still classified as a Schedule I narcotic. But hemp-derived CBD is not a Schedule I narcotic. The only real federal policy on point is the policy of the FDA, which only claims that a few classes of CBD goods are prohibited.

Notwithstanding that the FDA has publicly acknowledged that there may be a regulatory pathway to marketing certain products containing Hemp CBD, such as cosmetics, some social media companies have apparently taken it upon themselves to step into the shoes of regulators and ban all kinds of hemp-derived CBD products. Though that has allegedly changed recently, as noted above, many social media companies have yet to publish formal guidance here, though they certainly can. One thing is clear, unfortunately: those whose accounts were banned may never get them back, even if social media companies do change their positions.

My advice to social media companies is to make a choice: step out of the shoes of the government and let people advertise products that are not unlawful, or ban whatever you decide to ban but make clear what the rules are.

The point of all of this is that when it comes to CBD advertising, things are very unclear. Social media companies are apparently dead set on allowing all kinds of posts and advertisements that many people find reprehensible. But when it comes to advertising CBD bath bombs, you better be prepared to bet your business’ account.


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George Scorsis Liberty Health Sciences

December 13, 2019
 

LAS VEGAS – Panelists at MJBizCon in Las Vegas this week took on various complicated issues swirling around the marijuana industry, including regulatory changes occurring in many states, best practices for indoor MJ cultivation, the vape health crisis and more. Assessing regulatory challenges in new markets According to a panel of marijuana industry experts at

Cannabis business experts at MJBizCon discuss shifting regulatory climates, cultivation practices, vape issues & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

December 13, 2019
 

Tennessee man filed a federal lawsuit seeking millions of dollars in damages against Trulieve, Florida’s largest medical marijuana operator, for allegedly sending illegal text messages to his cellphone.

Marijuana lawsuit is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

December 13, 2019
 

LAS VEGAS – From a Dutch cultivator of medical cannabis to one of the handful of retailers to open for Canadian Legalization Day, Marijuana Business Daily recognized leaders of the hemp and MJ industries Thursday night during the inaugural MJBizDaily Awards gala at The Cosmopolitan Hotel. Setting the stage for the new awards program, MJBizDaily

Stars of marijuana and hemp sectors honored at MJBizCon in Las Vegas is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

December 11, 2019
 

LAS VEGAS – Members of the cannabis industry’s brain trust used the first day of MJBizCon to share predictions for 2020 and describe how changing attitudes in the United States might affect future marijuana legalization efforts – plus more coverage from this week’s conference in Las Vegas. In his keynote presentation Wednesday, Chris Walsh, president and

MJBizCon 2019: Cannabis industry recognizes year’s challenges as it looks forward to longer-term growth is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

December 11, 2019
 

The cannabis stock meltdown that erased $49 billion in enterprise value this year should begin to shift in 2020 as the industry leaders separate themselves, one of Canada’s largest investment banks forecasts. A new CIBC World Markets report by John Zamparo, director of institutional equity research, called this year’s “rationalization” of marijuana stock prices inevitable. “Even

CIBC: ‘Indiscriminate’ cannabis selloff should start to shift in 2020 is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

December 11, 2019
 

Two Massachusetts agencies agreed to share information with each other to determine if six probable cases of vaping-related lung illnesses are linked to state-licensed marijuana retailers.

Vaping regulations is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 11, 2019
 

Pueblo, Colorado-based Los Sueños Farms – the state’s largest cannabis grower – now estimates it lost about $7 million in an early October freeze, but the owner said the outdoor harvest was still better than last year, and the company will have ample material for the extraction market. The Colorado market was initially concerned when

Despite early freeze and $7 million in losses, Colorado marijuana grower still enjoys strong sales is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

December 10, 2019
 

CannTrust Holdings said the New York Stock Exchange has notified the Canadian marijuana producer that its stock price had fallen below the $1-a-share threshold required to continue trading on the Big Board. The Vaughan, Ontario-based company said in a news release it has six months to regain compliance. In the meantime, CannTrust’s stock, which trades

New York Stock Exchange warns cannabis producer CannTrust its listing in danger is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

December 10, 2019
 

Denmark might need to extend its medical cannabis trial plans in order for the government to conduct a mandated midterm evaluation of the pilot program, Health Minister Magnus Heunicke said. The four-year program launched in 2018, and a formal evaluation is required to take place in 2020. The number of patients who accessed medical cannabis

Denmark eyes medical marijuana trial extension  is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

December 10, 2019
 

cannabis patent litigation presumptionI recently received an inquiry as to how difficult it would be to invalidate a competitor’s patent in litigation. In short, it’s pretty tough.

A patent is deemed invalid “if the differences between the subject matter sought to be patented and the prior art are such that the subject matter as a whole would have been obvious at the time the invention was made to a person having ordinary skill in the art to which said subject matter pertains.”

In light of the Supreme Court’s decisions over the years, it’s clear that an infringer asserting the defense of invalidity has high hurdles to overcome due to three considerations:

1. The USPTO examiner having reviewed the prior art, has already made a determination that the patent is not obvious in view of this prior art.

Patents issue only after a pretty extensive examination has been conducted, which includes analysis as to whether the form and content of each application conforms to the applicable laws. Actions taken by agencies of the government are generally granted the presumption of administrative correctness. In this context, that presumption is actually codified into my next point, the existence of 35 U.S.C.A. § 282.

2.  Patents are presumed to be valid under 35 U.S.C.A. § 282, so defendants must prove invalidity by clear and convincing evidence.

That section provides, in relevant part:

A patent shall be presumed valid. Each claim of a patent (whether in independent, dependent, or multiple dependent form) shall be presumed valid independently of the validity of other claims; dependent or multiple dependent claims shall be presumed valid even though dependent upon an invalid claim. The burden of establishing invalidity of a patent or any claim thereof shall rest on the party asserting such invalidity.”

Although a nebulous concept, “clear and convincing” evidence has been described as evidence which produces in the mind of the trier of fact an “abiding conviction” that the truth of the factual contentions is highly probable. Translation: it’s the highest burden you could bear. (Note, the statutory presumption of validity attaches to each claim independently of other claims).

3.  A federal court will only overturn the district court’s underlying factual determinations under the clearly erroneous standard of review.

The district court will determine the issue of obviousness as a matter of law based on several factual determinations:

  • “The scope and content of the prior art”;
  • “Differences between the prior art and the claims at issue”;
  • “The level of ordinary skill in the pertinent art”; and
  • “Such secondary considerations as commercial success, long felt but unsolved needs, failure of others, etc.”

These are usually fact-intensive inquiries, and the higher courts trust that the district court reviewed the evidence carefully.  Unless a factual determination is glaringly wrong (which almost never happens), it won’t be questioned.

For more on cannabis patent litigation, check out the following posts:


[Read More ...]

George Scorsis Aphria

December 09, 2019
 

cbd litigation charlotte's web california

We’ve written extensively about hemp-derived CBD and the myriad issues faced by manufacturers CBD edibles. You can read more about this topic here:

And now, adding to the regulatory woes faced by many CBD companies, Charlotte’s Web Holdings Inc. and Infinite Product Co. have both been served with consumer class suits in California alleging that the products made by both companies violate FDA regulations and therefore violate California state law.

According to allegations, the Charlotte’s Web CBD products are labeled as dietary supplements, which according to the U.S. Food and Drug Administration (FDA), is not allowed:

Based on available evidence, FDA has concluded that THC and CBD products are excluded from the dietary supplement definition under section 201(ff)(3)(B) of the FD&C Act [21 U.S.C. § 321(ff)(3)(B)]. Under that provision, if a substance (such as THC or CBD) is an active ingredient in a drug product that has been approved under section 505 of the FD&C Act [21 U.S.C. § 355], or has been authorized for investigation as a new drug for which substantial clinical investigations have been instituted and for which the existence of such investigations has been made public, then products containing that substance are excluded from the definition of a dietary supplement.”

The FDA, as we have covered before, has explicitly stated that it is not legal to sell a food (including any animal food or feed) in interstate commerce to which THC or CBD has been added.

The lawsuit against Infinite Product Co. is slightly different, in that it targets products sold by the company included marketing statements that “CBD can alleviate some symptoms of autism, that cannabinoids have been found to inhibit the growth of cancer cells, and that, because of opiods’ addictiveness and painful withdrawal symptoms, people have moved to using CBD.”

The FDA has issued multiple statements that “[s]elling unapproved products with unsubstantiated therapeutic claims – such as claims that CBD products can treat serious diseases and conditions – can put patients and consumers at risk by leading them to put off important medical care,” and observed that “[t]he FDA has previously sent warning letters to other companies illegally selling CBD products that claimed to prevent, diagnose, treat, or cure serious diseases, such as cancer. Some of these products were in further violation of the Federal Food, Drug and Cosmetic Act because they were marketed as dietary supplements or because they involved the addition of CBD to food.”

Both causes of action in this case include allegations of violations of California Unfair Competition Law, California False Advertising Laws, California Consumer Legal Remedies Act, Breach of express and implied warranties, and the state’s Declaratory Judgment Act.

What is truly unfortunate is that these lawsuits come as no surprise. It has been widely acknowledged that there is no uniform regulatory framework in place to ensure that consumers of CBD products are actually consuming what they think. Leafly recently published a report showing that while most of the 47 CBD products they purchased and tested contained some CBD, most products did not contain the amount of CBD promised on the label. Leafly’s data broke down as follows:

  •     51% of products (24 of 47) delivered the promised CBD within 20% of the labeled dosage;
  •     23% of products (11 of 47) delivered some CBD, but less than 80% of the dosage promised on the label;
  •     15% of products (7 of 47) delivered more than 120% of the promised CBD; and
  •     11% of products (5 of 47) delivered no CBD whatsoever.

These results should be extremely concerning both to consumers, who may lack confidence about the nature of the products they’re purchasing, and to suppliers, who are opening themselves up to product liability lawsuits like those filed against Charlotte’s Web Holdings and Infinite Product. We expect that this is only the beginning of the lawsuits to come against CBD companies, and recommend that operators in this space talk to their attorneys about labeling, marketing, and advertising practices before becoming the next target.


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george scorsis

December 09, 2019
 

Canada’s largest cannabis company by revenue has appointed David Klein as its new CEO, effective Jan. 15, 2020. Klein currently serves as Canopy Growth’s board chair and chief financial officer (CFO) at Constellation Brands, which became the Smiths Falls, Ontario, company’s largest shareholder earlier this year. Klein will step down from his role at Constellation,

Canopy Growth hires ex-Constellation exec David Klein as CEO is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

December 09, 2019
 

Flurries of meetings and negotiations have occurred behind the scenes in Sacramento since California announced a cannabis tax increase last month. The stakes surrounding these discussions – all aimed at lowering the marijuana industry’s tax burden – are nothing less than the survival of the state’s legal marijuana market, according to some industry watchers. Representatives from multiple

California marijuana tax hike puts future of legal market in spotlight amid worries over state industry’s viability is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

December 07, 2019
 

At a time society is crying out for businesses to show an environmental conscience, marijuana companies nationwide are searching for ways to do their part and keep their ecological footprints as small as possible.

How marijuana firms can adopt environmentally friendly practices and avoid the greenwashing trap is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

December 06, 2019
 
Ravenquest
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george scorsis

December 06, 2019
 

After Brazil’s health authority shelved a proposal on domestic cannabis cultivation this week, a court decided in the opposite direction, allowing – for the first time in Brazil – a company to grow hemp commercially. The court’s decision could spur other cannabis companies to appeal to the judicial system for permission to cultivate domestically. The

Brazilian court decision could encourage other cannabis companies to seek approval for cultivation is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

December 06, 2019
 

Findings from Alberta, Canada’s smoking law review could lead to legislative or regulatory changes involving cannabis vaping – though the analysis is not specifically aimed at cannabis – the Treasury Board and Finance ministry told Marijuana Business Daily. The review, which started in October, is being conducted because Alberta’s current legislation does not address vaping

Alberta weighs legal changes for marijuana vape market is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

December 06, 2019
 

Two federally regulated cannabis companies, including one of the earliest licensed producers in Canada, sought creditor protection this week. Wayland Group on Monday said it is seeking creditor protection to pursue restructuring and consider financing arrangements. Wayland subsidiary Maricann became the 19th licensed producer in Canada by receiving its federal approval in early 2014. NVS

One of Canada’s oldest cannabis producers seeks creditor protection is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis website

December 06, 2019
 

hemp

Last month, Nathalie Bougenies and I put on a webinar on the US Department of Agriculture’s (“USDA”) new interim hemp rules. We got some great questions from our viewers but were unable to answer all of them in real-time. In this two-part series, Nathalie and I will respond to a number of those questions. This first part will focus on licensing and transportation questions. In tomorrow’s post, Nathalie will respond to questions relating to THC testing.

LICENSING

If a state, like Tennessee, operates under the 2014 Farm Bill, but the state applies for a USDA state plan and that is approved, does that then void the 2014 pilot rules and regulations for existing farms in Tennessee operating under 2014 Farm Bill?

Each state is handling the transition from the 2014 Farm Bill to the 2018 Farm Bill a little differently so if you are a hemp producer operating under a 2014 Farm Bill program, you’ll need to check with your state’s department of agriculture. Also, the 2018 Farm Bill extended the 2014 Farm Bill for one year after the USDA  published its interim rules on hemp (October 31, 2020) meaning that states who submit 2018 Farm Bill plans can continue to regulate under the 2014 Farm Bill. It’s also likely that most states will implement procedures to allow current licensed producers to transition to the 2018 Farm Bill.

Because this question addresses Tennessee specifically, the following passage from the Tennessee Department of Agriculture is helpful:

The U.S. Department of Agriculture (USDA) has released a draft of the rule outlining federal provisions for the domestic production of hemp. A preview of the rule is posted on USDA’s website, along with answers to frequently asked questions.

Leaders at the Tennessee Department of Agriculture (TDA) are reviewing this draft to determine potential impact on Tennessee’s hemp program.

No immediate changes are expected. Licensed hemp growers in Tennessee will continue to operate under current state regulations at this time.

As of Nov. 1, we have 3,800 producers licensed to grow as much as 51,000 acres of hemp statewide.

TDA looks forward to continue working with farmers and industry partners to support the production of hemp in Tennessee.

Since USDA has not regulated processing, is an entity that grows not allowed to process? Must a separate entity be formed?

Nothing in the 2018 Farm Bill or the USDA’s interim hemp rules explicitly allow or prohibit a hemp producer from processing hemp. The USDA doesn’t really touch on processing at all. Some states issue licenses to process hemp and may continue to do so under the 2018 Farm Bill. State law must be analyzed to determine what is required for processing.

TRANSPORTATION

Can you legally transport extracted Hemp CBD across state lines lab tested which shows less than 0.3% THC?

The 2018 Farm Bill prevents a state from interfering with the transport of hemp that was legally cultivated. Hemp is defined under federal law to encompass hemp derivatives, which includes Hemp-CBD. Strictly speaking, you can legally transport Hemp-CBD across state lines. However, states are free to prohibit the sale or distribution of Hemp-CBD within their borders.


[Read More ...]

George Scorsis

December 06, 2019
 

Michigan launches its recreational marijuana industry, California-based Harborside appeals a closely watched federal tax case, Brazil lays the groundwork for what could become one of the world’s largest medical MJ import markets – and more of the week’s top cannabis news. MI adult-use sales begin with limited number of stores open Michigan’s first day of

Week in Review: Michigan begins adult-use cannabis sales, Harborside appeals tax case, Brazil sets stage for big import market & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

December 05, 2019
 

Colorado Gov. Jared Polis was lauded in May when he signed into law legislation allowing outside money to be invested in the state’s cannabis industry. Since the law went into effect Nov. 1, outside capital has already begun flowing into Colorado marijuana businesses. For example: Denver-based Medicine Man Technologies through the year announced an almost

New Colorado law boon for cannabis capital, but concerns remain for minority businesses is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis website

December 04, 2019
 

Creating CBD chocolate at home is simple with this easy to follow CBD recipe.

CBD has found its way into a wide range of edibles, including CBD gummies, CBD hard candies, and even CBD chocolates. With our quick recipe, you can make delicious CBD infused chocolate at home with RSHO™ CBD Isolate powder. Keep reading for our easy to follow CBD chocolate recipe.

How to Make CBD Chocolate

CBD chocolates can be a tasty way to add CBD to your system each day. Completely customizable, you can easily change the amount of CBD in each serving, as well as the type of chocolate you use and any special flavor ingredients you want to add to make these CBD chocolates your own.

One of the advantages of using RSHO™ CBD Isolate in this recipe is the ability to customize the potency of your chocolates. Each milligram of CBD isolate is approximately one milligram of CBD. With that in mind, 200 mg of CBD isolate will come out to 20 mg of CBD per ounce of chocolate. This can be adjusted up or down to reach a potency you prefer.

What you will need:

  • Double boiler
  • 10 ounces of chocolate chips
  • 4 tablespoons of coconut oil or unsalted butter
  • RSHO™ CBD Isolate
  • Chocolate molds (optional)

Instructions:

  1. In a double boiler, heat chocolate chips until melted, stirring regularly
  2. Add coconut oil or butter, stirring as it mixes
  3. Remove from heat and mix in RSHO™ CBD Isolate, stirring until thoroughly blended
  4. If you are using chocolate molds, pour your melted CBD chocolate into your molds.

If you are not using chocolate molds, you can also allow the chocolate to cool for about 10 minutes, and then spoon it out onto wax paper in drops to cool fully. You can also pour this chocolate over ice cream, use it to dip strawberries, and more.

Feeling creative, you can add extras to your CBD chocolate by blending in sea salt, crushed candy canes, mini M&Ms, or any other treat you can think of.

Why Make CBD Chocolate

Infusing edibles with CBD is a great way to add the benefits of hemp derived CBD into your diet. CBD naturally promotes balance and wellness by supporting the endocannabinoid system, a network of receptors tasked with keeping the body and its functions running optimally.

When CBD is taken with food, the body is able to more efficiently absorb the CBD and other cannabinoids before transporting throughout the body. Here is more about why you should take CBD oil with food.

This CBD chocolate recipe calls for RSHO™ CBD Isolate, a 99% pure CBD powder that makes it easy to add CBD to nearly any recipe. Using CBD isolate to make CBD chocolate is ideal because it has no odor or flavor. However, you can also make this recipe using our CBD liquids.

There are literally dozens and dozens of possible recipes featuring CBD oil tinctures and liquids. Use our CBD recipes to stimulate your creative cooking juices. Keep in mind that it isn’t suggested that you cook with the oil, as doing so can diminish potency.

You can get RSHO™ Liquids in our Green, Blue, and Gold Labels, giving you the choice between our non-decarboxylated, decarboxylated, and filtered options. You can also opt for our RSHO-X™, which is made with CBD isolate and contains no detectable amounts of THC. Available in 4 oz. bottles, our line of RSHO™ Liquids provide 31 mg of CBD per serving.

Edibles Beyond CBD Chocolate

Explore the benefits of CBD and adding the natural compound in your favorite foods through our CBD Oil Education page.

Visit our CBD Oil Recipes page to discover how to make even more CBD edibles.


[Read More ...]

George Scorsis Aphria

December 04, 2019
 

Denver-based cannabis technology company MassRoots’ website has been offline for a number of days, raising fresh questions about the financial health of a company that has been in turmoil since at least 2017. Isaac Dietrich, the company’s founder and chief executive officer, maintained in an email to Marijuana Business Daily that the cannabis social networking pioneer

Is cannabis technology company MassRoots out of business? CEO insists no is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

December 04, 2019
 

New Brunswick, Canada, marijuana publishing company Civilized Worldwide is “temporarily” laying off its entire workforce ahead of a pending sale to Washington DC-based New Frontier Data. New Frontier, a data and analytics company, said in a news release it has completed its diligence and will move forward with its acquisition of Civilized. The companies did

Canadian cannabis publisher Civilized sheds jobs amid New Frontier purchase is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

more info, George Scorsis

December 04, 2019
 

Jushi Holdings, a Florida-based marijuana and hemp operator, said it received approval to begin trading on the Canadian Securities Exchange (CSE) as JUSH.

Medical marijuana is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

December 04, 2019
 

Brazilian health authorities rejected domestic cultivation of medical marijuana but agreed to permit the distribution of medicinal cannabis products that have not completed clinical trials, potentially setting up one of the largest import markets in the world. The new rules, adopted Tuesday, allow bulk imports and sales in pharmacies for the first time. Tuesday’s decision – involving

Brazil’s new medical cannabis rules reject domestic cultivation, potentially setting up large import market is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

December 04, 2019
 

The number of legal cannabis product batches undergoing lab testing in California each month has rebounded since a lull over the spring and summer and, as of late November, was on pace to grow even more before the end of the year. But the increase in legal product making its way through the supply chain met

Uptick in California lab-tested marijuana products met with both hope and skepticism from industry is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

December 03, 2019
 

A law forming the legal foundation for a medical cannabis industry in Barbados has overcome the last important parliamentary hurdle after being approved by the Eastern Caribbean country’s Senate. The law, which covers activities related to cultivation, processing, dispensing and export, empowers the Medicinal Cannabis Licensing Authority to develop policies and guidelines for a newly

Barbados medical cannabis law clears final hurdle in Parliament is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

December 03, 2019
 

New Brunswick aims to hit the reset button on how adult-use cannabis is sold, and the province might be willing to pull the plug on at least some of the 20 existing government-run stores under any new retail system. If a private company is chosen to run the new system, it will not be required to

New Brunswick looks for cannabis retail reset as future of 20 established stores uncertain is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

addiitional information, George Scorsis

December 02, 2019
 

Federally regulated cannabis producer Aphria expects the first harvest from its Diamond facility in Leamington, Ontario, to be sold to provincial wholesalers in March, capping off a year-plus delay from when shipments were initially expected to start. Aphria expected Diamond to be completed in time for its first sale in January 2019 – a goal long-since abandoned –

Aphria Diamond cost creeps higher as first marijuana sales pushed to March is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

December 02, 2019
 

As the cannabis industry has moved to shed the “stoner” stereotype many have held of its consumers, several marijuana businesses are rebranding themselves via name changes and other steps to try to reflect the companies they’ve become.  Whether the decision revolves around an initial public offering (IPO), including Akerna’s, or the acquisition of multiple dispensaries such

Why some marijuana firms are rebranding in response to cannabis industry’s changing business climate is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

November 30, 2019
 

hemp cbd california

Dozens of times per month, I am asked by clients and potential clients whether hemp-derived cannabidiol (“Hemp CBD”) products are legal in California. With almost any other product, I can give an easy “yes” or “no” answer. But with Hemp CBD, my answer usually takes five to ten minutes to explain and ultimately ends with “there is no clear answer, all of this could change dramatically in the next few months, and all of this will change in the next year”. Given the perplexing state of Hemp CBD laws in this state, I thought it might help to try to answer this all-too-common question here as well.

To really understand the legal status of Hemp CBD in California, one should understand the state’s stance on “cannabis”. The term “cannabis” is a legally defined term that means the Cannabis sativa L. plant with more than .3% delta-9 THC and excludes hemp, which is legally defined as the Cannabis sativa L. plant with .3% or less delta-9 THC. Cannabidiol can be derived from either cannabis (in which case it is generally legal and may be sold through the licensed cannabis chain), or hemp (in which case the law is completely unclear in many cases). If this all seems a bit confusing, it is. I won’t even try to get into the different terminology that the federal government uses.

The state cannabis agencies, ironically, prohibit licensed commercial cannabis businesses from using Hemp CBD in manufactured cannabis products or selling Hemp CBD products in licensed cannabis retail stores. Beyond that, the state has not adopted a single law that expressly outlaws Hemp CBD processing, sale, or consumption (though some cities or counties in the state may actually have laws prohibiting such activities). Instead, about a year and a half ago, the California Department of Public Health’s Food and Drug Branch (“CDPH”) released an FAQ document which stated that in spite of the fact that cannabis derivatives may be lawfully added to edibles, Hemp CBD could not legally be added to foods (including beverages and animal foods) or dietary supplements. The FAQ says nothing about many other products, such as cosmetics, smokeable hemp, or Hemp CBD vapes.

These FAQs, notably, are based expressly on federal law, and do not explicitly cite California law to support CDPH’s attempted ban on Hemp CBD foods. There are really two main arguments in the FAQs for why Hemp CBD foods are unlawful:

  1. Hemp was a Schedule I (illegal) drug under the Controlled Substances Act. This argument is no longer valid, since the Controlled Substances Act (“CSA”) was amended by the 2018 Farm Bill to carve hemp out from the CSA. But either way, it is a bit odd that the CDPH was attempting to ban a substance based on its placement in the CSA, when the CDPH is also responsible for licensing cannabis manufacturers, where cannabis is a Schedule I narcotic.
  2. The FDA did not allow Hemp CBD to be added to foods. This is still the case, as the FDA recently made clear. But again, it is interesting that the CDPH is relying on a federal agency’s position when it comes to Hemp CBD, but not when it comes to cannabis.

While the FAQs really only cite federal law, the CDPH has apparently been threatening enforcement actions and even pulling products under a California law that most people in the state probably aren’t aware of: the California Sherman Food, Drug, & Cosmetic Law. The Sherman Law is in many respects similar to the federal Food, Drug and Cosmetic Act (which is the basis for the FDA’s power over Hemp CBD). Notably, the Sherman Law prohibits selling “adulterated” food. There are numerous different definitions for when food is “adulterated”, but generally it means that it is poisonous, harmful, or unsafe. Though CDPH has made no public fining that Hemp CBD is actually “adulterated”, it has apparently been using this provision as the basis for its enforcement actions. In fact, the Los Angeles Department of Public Health, which to some extent acts as a local enforcement arm for CDPH policies, issued guidance stating that Hemp CBD was an adulterant.

In response to the claim that Hemp CBD was an adulterant, California Assembly Member Aguiar-Curry introduced AB-228 in early 2019, which would have expressly found that Hemp CBD was not an adulterant. In fact, when I started writing about AB-228 back in January, that’s basically all the bill did, though subsequent amendments would have created a much more robust regulatory framework for Hemp CBD. Unfortunately, the bill stalled out in committee a few months ago, so for now there will be no progress on that front. But we are basically guaranteed to see a revival of the bill in some form or another in the 2020 legislative session.

Also interestingly, there appears to have been no public challenge in the courts over whether Hemp CBD actually even qualifies as an “adulterant”. It is certainly possible that over the next few months, we could see a company that was subject to CDPH or local department of health enforcement sue and claim that Hemp CBD is not an “adulterant”. It’s possible that the CDPH would cite the FDA’s assertions that Hemp CBD could have some toxicity issues, but whether those assertions are sufficient for a state to take enforcement actions under state law is not so clear.

Ultimately, there is no great answer to the question “is Hemp CBD really unlawful in California?”, but there are some good pieces of information to consider:

  • While there is no state law that bans Hemp CBD processing, sale, or consumption outside of the licensed cannabis chain, the CDPH or local departments of health may initiate enforcement actions for foods, beverages, animal products, or dietary supplements under federal authority or the Sherman Law.
  • There are a number of products that the CDPH has not publicly identified as unlawful, such as cosmetics. The CDPH has jurisdiction over cosmetics under the Sherman Law, and could take the same position that they are not lawful. But they did not do so in the FAQ. It’s also possible that they could take a similar position to the FDA, which has been much less aggressive when it comes to cosmetics unless they make medical claims.
  • The law is subject to change quickly. As we live in a state where a couple-page-long FAQ document, rather than a law or regulation, can support enforcement actions against an entire industry, it’s entirely possible that the CDPH or another agency could reverse course or take an entirely new position at the drop of a dime.
  • We are pretty much certain that the law will change dramatically in the longer term. The FDA will issue regulations for Hemp CBD (though that may take time), and it’s highly likely that the California legislature will work on new Hemp CBD legislation in 2020.

So stay tuned to the Canna Law Blog as we continue to cover developments on the Hemp CBD front in California.


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George Scorsis

November 29, 2019
 

Aurora’s products are temporarily unavailable in Germany pending a review by health authorities of “a proprietary step” in the Alberta company’s production process, a spokesperson confirmed to Marijuana Business Daily. MJBizDaily corroborated the products’ unavailability with several German pharmacies “until further notice.” According to the pharmacies, the reason is related to a method used by

Aurora Cannabis products unavailable in Germany until further notice is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

November 29, 2019
 

fda hemp cbd

The Food and Drug Administration (“FDA”) had a busy Monday this week. On November 25, the agency issued warning letters to 15 businesses selling hemp-derived CBD (“Hemp-CBD”) products as unapproved drugs. The FDA also released updated consumer guidance on Hemp-CBD.

Warning Letters

The recent batch of warning letters appear to turn on the marketing of Hemp-CBD products as unapproved drugs. The FDA has approved CBD as a drug: Epidiolex. Epidiolex is used to treat epilepsy and requires a prescription. That’s the only approved use of CBD as a drug. The FDA determines whether something is a drug based on how the product is marketed. Any marketing material that includes a health claim will cause the FDA to classify a product as a drug.

These letters warn Hemp-CBD companies that are making health claims about Hemp-CBD products. In addition, the FDA reiterates its view that Hemp-CBD cannot be added to food or dietary supplements and states that it “cannot conclude that CBD is generally recognized as safe (GRAS) among qualified experts for its use in human or animal food” based on the available data.

Consumer Update

The FDA’s update to consumers makes it appear that Hemp-CBD is a dangerous and unknown substance. Here is the FDA’s own summary of its latest updates:

  1. CBD has the potential to harm you, and harm can happen even before you become aware of it.
    • CBD can cause liver injury.
    • CBD can affect the metabolism of other drugs, causing serious side effects.
    • Use of CBD with alcohol or other Central Nervous System depressants increases the risk of sedation and drowsiness, which can lead to injuries.
  2. CBD can cause side effects that you might notice. These side effects should improve when CBD is stopped or when the amount ingested is reduced.
    • Changes in alertness, most commonly experienced as somnolence (drowsiness or sleepiness).
    • Gastrointestinal distress, most commonly experienced as diarrhea and/or decreased appetite.
    • Changes in mood, most commonly experienced as irritability and agitation.
  3. There are many important aspects about CBD that we just don’t know, such as:
    • What happens if you take CBD daily for sustained periods of time?
    • What is the effect of CBD on the developing brain (such as children who take CBD)?
    • What are the effects of CBD on the developing fetus or breastfed newborn?
    • How does CBD interact with herbs and botanicals?
    • Does CBD cause male reproductive toxicity in humans, as has been reported in studies of animals?

Let’s start with the FDA’s first point, that Hemp-CBD may hurt you and you may not realize it. During the investigation of Epidiolex, there was some evidence that CBD could cause liver injury. The FDA is therefore concerned that the widespread use of Hemp-CBD without doctor supervision, could result in liver damage. That’s an understandable concern. But the consumer update doesn’t stop there.

The FDA goes onto warn about Hemp-CBD interactions with alcohol and other drugs. I don’t want to diminish these interactions as a legitimate concern, but I do want to point out that concerns over drug and alcohol interactions are not limited to Hemp-CBD. Pretty much all drugs can interact with other substances in a negative way. The FDA didn’t frame the issue of Hemp-CBD interactions as something to be aware of or something to watch out for; it was presented as a way that Hemp-CBD can hurt consumers.

Last year, the World Health Organization (“WHO”) issued a report on CBD, concluding that “there is no evidence of recreational use of CBD or any public health related problems associated with the use of pure CBD.” WHO also raised the issue of CBD’s interactions with other drugs, but still reached the conclusion that CBD, as a compound, was generally low-risk to public health.

Let’s move onto the second point about Hemp-CBD side effects. Here is another passage from the FDA’s  Hemp-CBD consumer update:

In addition, CBD can be the cause of side effects that you might notice. These side effects should improve when CBD is stopped or when the amount ingested is reduced. This could include changes in alertness, most commonly experienced as somnolence (sleepiness), but this could also include insomnia; gastrointestinal distress, most commonly experienced as diarrhea and/or decreased appetite, but could also include abdominal pain or upset stomach; and changes in mood, most commonly experienced as irritability and agitation.

This passage raises some serious questions about side effects. It does not provide citations to the studies that lead the FDA to determine that these side-effects were serious enough to warrant inclusion on the FDA’s website. Also, how did the FDA make the determination that the most common change alertness is somnolence or the most common change in mood is experienced as irritability and agitation? Also, the FDA’s recommendation that side effects will improve if the use of CBD is stopped or the amount ingested is reduced has to based on clincial information, right? The FDA wouldn’t make an unsubstantiated medical claim online, especially when there is so much misinformation out there regarding Hemp-CBD, would it?

I don’t doubt that the FDA based its above conclusions regarding Hemp-CBD on some set of studies or other data set, but it’s hard to justify the FDA making these claims without any reference to how the FDA reached these conclusions. I’ve written before about how the FDA has a credibility problem with the American public. I don’t think this latest consumer update does the FDA’s credibility any favors.

The third point focuses on questions that remain about the safety of Hemp-CBD. These are important questions and should be considered. The fact is that the interest in CBD has eclipsed the scientific data we have available. The FDA’s questions are important and should be studied carefully. The problem is that the FDA appears to have already made a number of determinations about the dangers of Hemp-CBD without showing its work or refuting the data provided by the WHO.

Conclusion

The FDA’s approach to Hemp-CBD has been one of regulatory inaction and even obfuscation. Rather than providing guidance to or issuing regulations concerning manufacturers of Hemp-CBD products, the FDA has focused on telling consumers and Hemp-CBD businesses that most Hemp-CBD products are not legal and not safe. This latest round of warning letters and the consumer update are a continuation of this approach, but with greater intensity. The consumer update strikes a more urgent and alarming tone and the sheer number of warning letters sent out on one day is a departure from the FDA’s norm.  Hopefully, the FDA has also been working behind the scenes to also establish a regulatory framework for the safe manufacture and distribution of Hemp-CBD products. The FDA’s current approach to Hemp-CBD does not seem tenable for much longer.


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more information, George Scorsis

November 29, 2019
 

The Ontario Cannabis Store backtracked on a Black Friday promotion this week after “consulting” with Health Canada, highlighting the limitations facing adult-use marijuana retailers – even ones owned by the government – in getting their message out. In a Tweet earlier this week, the Ontario Cannabis Store (OCS) said “something big” was coming to OCS.ca, its monopoly

Ontario Cannabis Store deletes Black Friday tweet ‘in consultation’ with federal regulator is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

November 29, 2019
 

Trimming and curing marijuana are two crucial steps in the final stages of getting flower to market.

All of the time and effort a marijuana cultivation company spends caring for its plants could be for naught if there's a poor trim or cure.

Proper trimming, curing are key to creating a quality marijuana product is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

November 29, 2019
 
WeedMD Outdoor Harvest Inside Look - Great Buds
WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) (FRA:4WE) CEO Keith Merker talkes us through the company’s 27 acre outdoor cannabis grow. While the results of cannabis crops cultivated outside may vary, from what we saw, WeedMD’s growing fantastic looking buds. During our visit to the drying rooms, it became even more apparent that the WeedMD outdoor harvest is likely to result in heavy yields. The buds were large, well-formed, and even though it might not have initially been part of the plan – they can probably sell a portion of it as premium dried flower. WeedMD also has the option to expand if they like what this year’s crop will do to their balance sheet. Behind the current area there is enough land to expand significantly. Not that 27 acres isn’t significant though, it remains to be seen what this will do in terms of revenue and margins, but it does indeed seem very promising for the company to compete for the low-cost crown. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

November 28, 2019
 

Here’s to a great holiday for everyone out there, along with friends and families.

We are thankful for the privilege of working with so many great people and companies every day, and in such a dynamic area of law and policy.

Enjoy the holiday! We’ll be back tomorrow.


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George Scorsis Aphria

November 27, 2019
 

It’s that wonderful time of the year again– the season to focus on family, friends, and gratitude. Show acts of love to your friends and family during the holidays this year by gifting the wellness benefits of CBD and hemp.

In our ultimate CBD and hemp gift guide for 2019, we’ve curated the best gifts to help you check everyone off your list. From delicious CBD gummies to the newest innovative vaporizer to a socially-conscious and eco-friendly hemp tee, we’ve got the best CBD and hemp gifts and stocking stuffers for your family, friends, and colleagues. And don’t forget another special person in your life– you!

Best-Selling CBD and Hemp Gifts

RSHO™ Gold Label CBD Oil Liquid

best CBD giftAn incredibly versatile way to experience the benefits of CBD, RSHO™ Gold Label Liquid combines our award winning CBD oil and sustainably-sourced MCT oil to create a pourable CBD oil supplement with 31 mg of CBD per serving. The CBD oil in our popular Gold Label line has been both decarboxylated and filtered for a smoother and more refined experience. It can be added to foods and beverages or used on its own.

Shop for Gold Label CBD Oil Liquid


RSHO™ CBD Isolate Powder

CBD isolate giftPotent, powerful, and made from superior all-natural hemp oil. The most concentrated CBD product available, our CBD Isolate is a 99% pure powder that can be used on its own, vaped, or easily added to foods and beverages. Each 1 gram jar of RSHO™ CBD isolate powder contains 990 mg of CBD, which can be broken down into specific servings of any size. How does CBD-infused eggnog sound?

Shop for CBD Isolate


RSHO™ Blue Label CBD Oil Capsules

CBD capsules giftGift these high quality CBD oil capsules to that person in your life who is always on the go. RSHO™ Blue Label CBD Oil Capsules conveniently deliver decarboxylated full spectrum hemp oil plus 200mg of calcium, and 200mg of our proprietary blend of powdered turmeric root and white willow bark. Each capsule contains 25 mg of CBD. They come in a 30-count jar, enough for a month’s worth of daily CBD goodness!

Shop for Blue Label CBD Capsules


RSHO™ Green Label CBD Hemp Oil Concentrate

hemp oil giftGive your loved one the gift of raw hemp oil. Packaged in a convenient oral applicator, RSHO™ Green Label CBD Hemp Oil Concentrate offers all the natural components found in hemp as when it was harvested. A 3-gram applicator has 300 mg of CBD and is abundant in terpenes, chlorophyll, CBDa and a range of other cannabinoids– hemp oil kept in its raw, natural state.

Shop for Green Label CBD Oil Concentrate


RSHO™ CBD Hemp Oil Salve

CBD salve giftA perfect gift for the family member whose skin always struggles with dryness during the winter season, this luxurious body balm contains a 50 mg concentration of CBD, plus beeswax, camphor oil, and a unique herbal extract blend to nourish and soften skin. Each 1.3-ounce jar of this hemp topical contains 50 mg of CBD, and it’s compact enough to slip into any bag, drawer, or medicine cabinet for easy access.

Shop for CBD Hemp Oil Salve


HempMeds Active Relief Roll-On

CBD gift for athletesYour friend that loves running marathons or has a physically strenuous day job will surely appreciate HempMeds Active Relief Roll-on that is formulated to offer natural comforting effects. This roll-on mentholated blend of CBD and proprietary herbs is cooling and all but made for strenuous post-workout recovery. Each roll-on bottle contains 50 mg of CBD.

Shop for Active Relief Roll-On


HempMeds Hydrating & Soothing Body Lotion

Everyone loves a skincare treat during the holiday season. Earning the spotlight of HempMeds’ popular Personal Care Line, our Hydrating & Soothing Body Lotion is made with a botanical blend of CBD, jojoba, and almond oils to leave skin silky and smooth. It contains 100 mg of CBD per bottle, allowing your lucky recipient to enjoy the topical balancing benefits of hemp-derived cannabinoids.

Shop for Hemp Body Lotion


Dixie Botanicals CBD Vape Liquid + KandyPens RUBI Vaporizer Bundle

CBD vape giftEverything your loved one needs to get started vaping CBD. With this convenient bundle pack, your friend or family member will receive KandyPens’ popular RUBI vaporizer, plus a 30 mL bottle of delicious and rigorously-tested Dixie Botanicals CBD Vape Liquid. They’ll be relaxing with pure CBD-infused clouds of inhalable vapor in no time. And did we mention that our vape liquid comes in a variety of tasty flavors?

Shop the CBD Vape Liquid Bundle


Hemp for Pets Full Spectrum CBD Oil Tincture

pet CBD giftOf course, you’ll be shopping for your furry family members this holiday. You can gift your dog or cat the benefits of CBD too! Pets can enjoy many of the same benefits that lead humans to seek out hemp oil, and they have cannabinoid receptors that respond to CBD. This pet-specific tincture blends full spectrum hemp oil with MCT oil to naturally promote health and wellness in your pet. A 1-ounce bottle comes with a convenient dropper top and contains a total of 100 mg of CBD.

Shop CBD Oil Tincture for Pets


Hempy’s Save the Humans Hemp T-shirt

Hemp t-shirt giftA winning gift for that socially-conscious loved one in your life, Hempy’s Save the Humans tee features an amusing tongue-in-cheek play on the save the whales movement from the 1970s. Like all of Hempy’s t-shirts, this popular design is made in the USA with eco-friendly hemp blended fabric. Skilled craftspeople use high-quality hemming to construct a high quality tee that fits right every time.

Shop for Hempy’s T-shirts


Hempy’s B-Fold Wallet

Hempy’s Bi-Fold Wallet takes the stress out of carrying your essentials. Crafted in the USA from high quality 100% hemp, the Bi-Fold Wallet features a cash pocket and eight separate slots for your credit cards in a no-nonsense slimline design. A unique double-sided clear ID holder is convenient when checking out or passing through any security points. It comes in a variety of colors.

Shop Hempy’s Bi-Fold Wallet


KandyPens K-Vape Pro Vaporizer

Earn your rightful place as a favorite family member by gifting the K-Vape Pro Vaporizer from KandyPens. Seasoned dry herb vaping enthusiasts will enjoy its high performance and quick-heating capabilities, while beginners will appreciate its straightforward single-button functionality. Handmade in the USA, it is one of the most popular portable dry herb vaporizers available.

Shop the K-Vape Pro


Eyce Spoon

Eyce pipe giftThis funky pipe can be a stunning and unique gift for any dry herb devotee. Its high quality borosilicate glass bowl ensures flavorful draws, while its platinum-cured silicone body makes its nearly indestructible. It even has a built-in poker tool and a hidden stash compartment to keep extra herb safe. You’ll have fun choosing from the several wild color options!

Shop the Eyce Spoon


Revelry Supply “The Confidant” Bag

cannabis luggage giftA great gift for herb-loving jet-setters. If your gift recipient likes to travel with herbs and concentrates, this bag offers a discreet and safe way to do so. Constructed of durable rubber-backed nylon and a carbon filter system, The Confidant from Revelry Supply is a stylish single pocket pouch that keeps odors in and water out. It’s available in several colors.

Shop The Confidant


Best CBD and Hemp Stocking Stuffers

Dixie Botanicals® Orange CBD Isolate Tincture

CBD tincture giftPerfect for both CBD newbies and connoisseurs, this delicious CBD tincture is small enough to slip into any pocket yet offers a considerable 3.3 mg of CBD per serving that’s perfect for supplementing throughout the day. It’s made by combining all-natural hemp oil CBD isolate with MCT oil to naturally boost absorption. With its zesty orange flavor, this CBD tincture will easily be your recipient’s most cherished stocking stuffer.

Shop for Orange Isolate Tincture


Dixie Botanicals® CBD Gummies

The perfect way to introduce CBD-curious loved ones to cannabinoids. Who could possibly resist delicious fruit gummies infused with CBD and its natural benefits? Dixie Botanicals® CBD Gummies are specifically formulated with CBD isolate so they contain no detectable amounts of THC. With 10mg of CBD per gummy, you’re recipient will appreciate having these during the holiday season frenzy. They come in both sweet watermelon and tropical mango flavors.

Shop for CBD Gummies


Dixie Botanicals® + Surface® CBD-Infused SPF50 Sunscreen

best CBD gifts 2019Wear sunscreen in the winter is just as important as other times of year! Give the gift of premium sun protection and skincare with this new innovative CBD-infused sunscreen. Dixie Botanicals® joined forces with respected sunscreen brand Surface® to create a high quality CBD sunscreen that shields the sun’s UVA and UVB rays while enhancing the overall health of your skin. It’s reef safe, water resistant, and feels fresh on the skin.

Shop for CBD Sunscreen


KandyPens Slim Vaporizer Battery

Simplistic functionality combined with performance. The KandyPens Slim Vaporizer Battery will give delight any vaping beginning or enthusiasts who like to keep things simple. With its sleek design and buttonless operation, this vape battery is perfect for discreet and convenient vaping on-the-go. Pair it with any standard pre-filled vape cartridge. An included USB charger keeps the vaping sessions going.

Shop for the Slim Vaporizer Battery


Storz & Bickel Authentic Volcano Grinder

Drop this premium dry herb grinder into the stocking of any dry herb fan and you’re sure to see a smile. Compact yet efficient, the Storz & Bickel Authentic Volcano Grinder shreds herbs to perfection to enhance vaping sessions. Sharp teeth and a built-in stash chamber provide everything needed for perfect grinding, while heavy duty acrylic construction makes this grinder virtually indestructible.

Shop for THE Volcano Grinder


Higher Standards Supreme Clean Kit

If you’re looking for a stocking stuffer that will delight any dry herb consumer or aficionado, look no further than this premium one-stop-shop glass cleaning kit from Higher Standards. Herb enthusiasts know a clean pipe or vaporizer is key to ensuring flavor and smoothness. The Higher Standards Supreme Clean Kit comes with a premium isopropyl alcohol cleaning solution, perfectly-sized salt grains, high-quality pipe sticks, dot wipes, a resin rag, a steam brush, and more for the perfect cleaning ritual.

Shop for the Supreme Clean Kit


Hempy’s 100% European Hemp Beanie

best hemp giftsIf you’re looking for the perfect winter gift, consider a cozy and super soft hemp beanie to keep your loved one warm and toasty during the cold season. Introduced to the U.S. market after popular demand, this sought-after classic workmen-style beanie is made from 100% European hemp yarn for unmatched durability and comfort. Your recipient can unfold it to wear as a slouch beanie, or keep it folded for a classic cuffed style.

Shop for the 100% European Hemp Beanie


Larabar Blueberry Lavender Hemp Bar

hemp stocking stufferRather than filling your family stockings with candy, gift nutritious hemp bars from Larabar. Hemp has been used as a valuable food source for thousands of years, and with good reason. Larabar’s Blueberry Lavender Hemp Bars combine six wholesome superfoods into a delicious, satisfying and healthy snack bar. A sweet combination of dates, blueberries, apples, almonds, hemp seeds, and lavender oil provides a bright taste and an abundance of nutrients. Available in a pack of 15 so you can divvy up tasty hemp bars to all the stockings in your home.

Shop for Larabar Hemp Bars


 

Shop for CBD Gifts

Nothing is better than giving the gift of hemp and CBD products. With our wide array of CBD and hemp products, you’ll have no problem finding the right wellness gift for everyone in your life. Visit our online shop today to finish your holiday shopping.

Unsure which CBD product is best for that hard-to-gift family member or friend? Allow them to choose for themselves with a Medical Marijuana, Inc. gift card, available in several preset values between $25 and $500.


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George Scorsis Liberty Health Sciences

November 27, 2019
 

The Chamber of Commerce in British Columbia wants the province to adopt policies encouraging craft cannabis businesses to join the regulated market, including allowing proprietors to keep their doors open during the transition into the legal fold. The proposals were among a number of policies the chamber asked Public Safety Minister Mike Farnworth to consider during

British Columbia chamber lobbies province over craft cannabis cultivation is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

November 27, 2019
 

On December 4, 2019, at 12:30 PM, Harris Bricken attorney Daniel Shortt and Cascadia Intellectual Property attorney Krista Wittman will be presenting at a seminar put on by the Washington State Bar Association’s International Practice Section titled “U.S. and International Aspects of Cannabis Laws and Legal Practice.” Additional information on the event is available below and on the International Practice Section page.

The presentation will cover the following:

The passage of the 2018 Farm Bill opened the door to importing and exporting hemp in the United States, at least in theory. Cannabis remains illegal under federal law and states that have legalized cannabis sales do not even allow cannabis to cross state lines, let alone international borders. Daniel Shortt will discuss how U.S. cannabis policy impacts the growing international cannabis market.

National laws can also greatly affect whether and how intellectual property rights for cannabis-related businesses can be obtained.  Patent attorney Krista Wittman will discuss her experience prosecuting cannabis-related patent and trademark applications in the United States as well as in select foreign jurisdictions.

The international cannabis market is quickly becoming a reality as countries change their laws and policies on cannabis. Attorneys from both our international and cannabis practice groups are fielding an up-tick in questions on cannabis trade. For more information on the international cannabis market, check out these recent posts:

We hope you can join Daniel and Krista on December 4th! Register here.

Details

Date: Wednesday, December 4, 2019
Time: 12:30 P.M. – 2:30 P.M. (registration begins at 12:00 PM)
Credits:  2.0 Law and Legal Procedure
Tuition: $35 Standard, $0 International Practice Section Member, $18.75 Law Student
In-Person Location:
Foster Garvey PC
1111 Third Avenue, Suite 3000, Seattle, WA 98101


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George Scorsis Aphria

November 27, 2019
 

By now, everyone knows that to export medical cannabis to Germany, which is by far the largest importer of medical cannabis flower in the world, achieving European Union Good Manufacturing Practice (GMP) is a prerequisite. But beyond getting that certification, certain quality requirements could have huge implications if they are not considered and integrated into a business’

What businesses need to know about exporting irradiated medical cannabis to Germany is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

more information, George Scorsis

November 27, 2019
 

Back in September Drake, via his Dream Crew company, applied for U.S. federal trademark protection for the warning symbol required on all recreational cannabis products that contain THC by the Health Canada. The symbol resembles a red stop sign with a black cannabis leaf and the letters “THC” prominently displayed:

cannabis marijuana trademark drake

The application specified the following goods:

  • Herbs for medicinal purposes
  • Boots; Coats; Dresses; Gloves; Hats; Hoodies; Jackets; Jerseys; Shirts; Shoes; Shorts; Sneakers; Suits; Sweat pants; Sweatshirts; T-shirts; Ties as clothing; Track suits; Trousers; Undergarments; Waist belts
  • Raw herbs
  • Herbs for smoking

The USPTO examining attorney assigned to this application refused registration on three grounds, all of which are interesting and relevant to would-be cannabis trademark applicants.

First, registration was refused due to likelihood of confusion with an existing trademark registration in Class 25, which covers apparel. This existing trademark registration is for the mark THC. Because the literal element of the applicant’s mark was identical to the registered THC word mark, the examining attorney deemed the marks likely to cause consumer confusion, and denied registration for apparel. This is an illustration of why conducting a trademark clearance search prior to filing your trademark application is a good idea.

Second, the application was denied as to the other three classes of goods specified (herbs) because “applicant did not have a bona fide intent to lawfully use the applied-for mark in commerce as of the filing date of the application.” As we’ve covered before, in order to qualify for federal trademark protection, the use of a mark in commerce must be lawful (Gray v. Daffy Dan’s Bargaintown, 823 F.2d 522, 526, 3 USPQ2d 1306, 1308 (Fed. Cir. 1987)). Here, the examining attorney did some digging and quickly learned that the applicant was a company owned by Drake, who had recently partnered with a Canadian cannabis company to produce marijuana. The wording of the three classes encompassing herbs was broad enough to include cannabis, which is not lawful under U.S. federal law, and is not eligible for trademark protection.

But this leads us to the third and perhaps most interesting grounds for refusal. which involves the nature of the applied-for mark itself. The logo specified in the application is identical to the symbol mandated under Canadian law to indicate that goods bearing the symbol contain THC. This is a warning symbol intended to alert customers that cannabis products contain more than 10 micrograms of THC per gram. The examining attorney asserted that because “the symbol is intended to be used merely to convey information about the material content of the product,” it serves no source identifying function.

The examining attorney’s assertion is an important foundation of trademark law: In order to be eligible for trademark protection, a mark must actually function as a trademark, meaning that it must actually indicate the source of the specified goods. The examining attorney’s considerations here included (1) the significance of the symbol, (2) the nature of the symbol’s use in the relevant marketplace, and (3) the impression created when the mark is used in connection with the identified goods. Ultimately, the examining attorney declared that:

[b]ecause consumers are accustomed to seeing this symbol used in this manner, when it is applied to applicant’s goods, they would perceive it merely as informational matter indicating that the goods are comprised of THC derived from cannabis or marijuana.

These are all valuable lessons in what can and cannot be eligible for U.S. federal trademark protection, and illustrate the ongoing challenges faced by the cannabis industry in developing strong brands that are eligible for federal protection.


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addiitional information, George Scorsis

November 27, 2019
 

The Toronto Stock Exchange (TSX) said it would delist CannTrust’s shares if the Ontario cannabis producer is unable to file relevant financial statements by March 25, 2020. A review will be conducted on the company’s eligibility for continued listing on the stock exchange, CannTrust disclosed this week. The review is a result of CannTrust being late

Toronto Stock Exchange warns CannTrust about possible delisting is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

November 27, 2019
 

The Los Angeles marijuana market is enduring more licensing delays. This time, it’s for a government-ordered audit of the city’s cannabis regulators.  It means more uncertainty for marijuana firms. And, perhaps most excruciating, it means more money down the drain. That’s the ongoing narrative surrounding the L.A. marijuana market, where hundreds of entrepreneurs have waited

Hopeful L.A. cannabis market entrants bleed money as they wait again – this time for licensing audit is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

November 26, 2019
 

Chicago-based multistate cannabis operator Cresco Labs said it is ending its agreement to buy Florida’s VidaCann, becoming the latest U.S. marijuana M&A deal to unravel and highlighting the steps companies are taking to navigate a rocky business environment. Cresco’s decision, in particular, sheds light on how marijuana companies are scrambling to save money and refocus

Cresco terminates VidaCann acquisition, highlighting cannabis industry’s focus on saving cash is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

November 26, 2019
 

The bidding process to cultivate medical cannabis in Cyprus is stalled after government authorities requested a review of the licensing fees. The delay, reported by the Phileleftheros newspaper, stemmed from concerns the fees are too low given the revenue growers are expected to reap. According to previous announcements, winners of the application process would have to pay

Cyprus delays bidding process so medical cannabis licensing fees can be reviewed is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

November 25, 2019
 

The Danish government is engaging stakeholders about the future of the country’s medical cannabis pilot program, but industry and government sources say the talks are at an early stage and a decision won’t be made until after the scheme’s formal evaluation next year. Denmark’s four-year medical cannabis trial program launched Jan. 1, 2018. A lot

Early talks underway on future of Denmark’s medical cannabis pilot program is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis website

November 25, 2019
 

cannabis business tax

One of the most fundamental questions facing any businessperson in the cannabis industry and every other industry is: “What type of business entity should I use?”

This is such a loaded question that your lawyer or accountant will first respond with, “That depends,” and then they will need to ask you at least ten follow-up questions to understand your goals and expectations, as well as the goals and expectations of your business partners and financiers. Some of these follow-on questions are tax-driven; others are regulatory-driven; others are dictated by financing relationships; and still others deal with control and flexibility within your business.

This is Part 1 of a two-part series. In Part 2, I will discuss more in depth the difference between and among various legal entities from which you can choose. For those who are wondering whether it is “really necessary” to use a business entity instead of just hanging out your shingle, know that your properly established and maintained business vehicle puts the “limited” in “limited liability.” And don’t forget insurance (here and here) and clean business contracts (here), both of which are also essential in helping you sleep at night.

Some types of industries are relatively low risk (NOT cannabis); some business owners are relatively judgment-proof (but it’s hard to start a business if you have no assets); and some business owners like to drive their cars without windshields and seat belts (neither they nor their businesses tend to last very long). I get that many potrepreneurs are used to taking on more than their fair share of risk, but my short response is: forming a business entity is a relatively inexpensive foundation upon which to build a solid business. Don’t ever cut corners in your business, but really don’t cut corners when it comes to your business entity (or getting good insurance or having great contracts in place).

Let’s go over some of these important questions to help you decide how to move forward with your entity selection.

The tax-related questions:

  • Do you or any of your fellow owners need to offset revenue in other business ventures?
  • Do you or any of your fellow owners need to maximize losses in this business venture? (i.e. will you be 50/50 in the business ownership, but your business partner wants to capture 100% of the losses in the startup years of the business?)
  • Are any of your owners non-residents?
  • If taxed as a pass-through, will you and other owners be prepared to pay all taxes owed while the company builds out its balance sheet?
  • Does your business plan involve real estate ownership?
  • Will your business own other assets that are likely to appreciate over time?
  • What is the anticipated impact of IRC 280E on your business model?

The regulatory questions:

  • Do your state’s cannabis regulations require you to use a particular business entity? (i.e. some states required all licensees to be nonprofit entities or “entities operated on a not-for-profit basis”).
  • Do your state’s regulations require full transparency in entity ownership?
  • If possible, do you want to keep some of the business’ owners out of the public eye?

The purpose-related questions:

  • Are you going to operate your business with a specific mission so that you can draw investment funds from particular types of investors?
  • Are you going to operate your business with a specific mission so that you can provide something good to the world by furthering education, providing charitable assistance, or stepping in to help where governmental resources cannot address needs in your community?

The financing-related questions:

  • Do you intend to have outside financiers involved, such as private equity or venture capital? If so, have your prospective investors made any requests regarding the type of entity in which they prefer to invest?
  • Do you intend to give all owners equal rights to profits, or do you intend to have different classes of ownership (i.e. preferred vs. common ownership interests and voting vs. nonvoting interests)?
  • How many owners do you expect to have in the first five years of the business?
  • Will any of your owners consist of C corps or S corps?
  • Do you intend to take the company public as soon as your business model and U.S. laws permit it?
  • How do you intend to get funds from the company to the owners: via salary, debt payments, distributions, or something else?

The control and flexibility-related questions:

  • Do you intend to have a small group of owners or a larger group?
  • Do you intend that all owners will have equal rights to profits and to decide when profits are distributed?
  • Are you a part of the minority owner group or majority group?
  • What type of governance structure do you envision working best for your company? Small or large?
  • Do you intend to hire outside management for the business?

The answers to these questions will help your legal or tax advisor help you make the right decision on what type of entity to choose and what to do with that business entity. For instance, just because you are already using an LLC does not mean that you cannot take advantage of making a Subchapter S election with that LLC. You just need to have a good reason for doing so, time it correctly, and your accountant needs to know and agree with you. The same is true if you want your business to be taxed as a C corporation or you want to convert your entity to another type of entity.

In a future post we will dig in more deeply to the advantages and disadvantages in the various types of entities you can choose. Stay tuned!


[Read More ...]

George Scorsis Liberty Health Sciences

November 25, 2019
 

In the wake of the recent vaping crisis that’s sickened more than 2,000 people and killed dozens more, vape makers and retailers are using a variety of strategies to ease consumer concerns and shore up sagging sales. In particular, marijuana vape manufacturers and dispensaries are: Posting signs in stores and training in-store staff to help consumers understand

As vaping crisis continues to affect legal marijuana vape sales, MJ firms use education to allay consumers’ concerns is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

November 24, 2019
 

minnesota hemp cbd

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA.

This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday, we summarize a new state in alphabetical order. Today we turn to Minnesota.

The Minnesota Department of Agriculture (the “MDA”) has adopted an industrial hemp pilot plan that governs hemp cultivation in Minnesota. The MDA’s program appears consistent with the 2014 Farm Bill: “The Hemp Research Pilot Program studies the growth, cultivation, and marketing of hemp.” And it also appears that the program is consistent with certain provisions of the 2018 Farm Bill: “All first-time applicants must submit an application, pay the program fees, and pass a federal/state criminal background check. An applicant is disqualified from participating in the program if they have a controlled substance-related conviction in the last 10 years.” Minnesota hemp cultivators should therefore be aware that there will be strict requirements for hemp cultivation, unlike other states which have more relaxed rules concerning hemp cultivation.

Minnesota’s primary Hemp-CBD law is SB-12. The hemp provisions of SB-12 take effect on January 1, 2020.  SB-12 will allow the sale of non-intoxicating Hemp CBD products and will impose testing and labeling requirements which are relatively strict. It will also allow Hemp CBD products to be sold to marijuana licensees if the hemp was cultivated in Minnesota, which not all other states allow (e.g., California). Per SB-12, the state health commissioner is required to create a workgroup to advise on how to regulate Hemp CBD product and submit a report to the legislature by Jan. 15, 2020. So we expect to see some kind of regulations on top of SB-12, as soon as next year.

While we’re waiting for SB-12 to take effect, there is not much guidance on most kinds of Hemp CBD products in Minnestota.  The MDA states that it does not regulate food products containing Hemp CBD and instead defers to the FDA guidelines (which as we all know claim that Hemp CBD can’t be added to foods).  For many other kinds of products, there just is no real guidance. And Minnesota has not yet adopted a flavored vape ban, so we don’t yet know (a) if it will, and (b) whether that would apply to Hemp CBD.

There will be a lot of changes to Minnesota Hemp-CBD laws in the future, so please stay tuned for updates.


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George Scorsis

November 23, 2019
 

Though the majority of U.S. financial institutions remain hesitant to offer accounts and loans to non-plant-touching cannabis companies, there are steps those businesses can take to land a banking partner.

Ancillary marijuana businesses can avoid banking hurdles by turning to smaller financial institutions is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis website

November 23, 2019
 

hemp cbd litigation justcbd

A couple of months ago I wrote a “Hemp/CBD litigation forecast.” (See here.) One topic of that post was the rise in class actions against Hemp-CBD companies and I noted the consumer class action complaint filed against JustCBD in the Southern District of Florida, Case No. 0:19-cv-62067-RS. The gravamen of the complaint is that JustCBD overstated the quantity of CBD contained in its products on numerous occasions and in violation of representations and warranties it made in connection with selling its products. The plaintiff seeks to represent a class of persons defined as all persons in the United States who purchased JustCBD products that contains specific representations about the amount of CBD in the product.  I write today with an update on that case.

On November 18, the defendants filed a joint motion to dismiss the complaint for failure to state a claim. This type of motion – for the unfamiliar – must be filed before a defendant answers the complaint and may be filed against some or all of the claims in the complaint. In simple terms, a motion to dismiss argues: “Court, even if everything alleged in the complaint were true, the plaintiff could not win her lawsuit, so the lawsuit should be dismissed.” More technically, federal courts apply the standards set forth in two Supreme Court cases, Twombly and Iqbal, colloquially referred to by lawyers as Twiqbal.  The guiding principle of these opinions is whether the complaint “plausibly” alleges a claim for relief and courts deciding these motions apply the following principles:

  1. Although the court must accept as true all facts asserted in a pleading, it need not accept as true any legal conclusion set forth in a pleading.
  2. The complaint must set forth facts supporting a plausible claim for relief and not merely a possible claim for relief.
  3. Determining whether a complaint states a plausible claim for relief is a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.
  4. A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.
  5. Mere conclusory allegations do not suffice.

Although a complaint that does not plausibly allege a claim for relief will be dismissed, a plaintiff may be given leave to amend her complaint to cure the pleading deficiency.

The defendants filed a densely packed 27-page motion, let’s go over some of the key arguments that I’ll simplify in some respects for the sake of brevity:

  1. Gaddis alleges he purchased two JustCBD products in November 2018 (Honey Tincture and Ribbons) and apparently tested the CBD content of one of the products, which he alleges was below the amount listed on the label. But Gaddis purports to bring claims on behalf of a class claiming that every product sold by JustCBD (roughly 50 different products) is mislabeled. Defendants argue that Gaddis lacks standing to assert claims for products he did not purchase. This appears a well-founded argument. In Twiqbal terms, the issue is whether the court may reasonably infer from Gaddis’ allegations every JustCBD product (roughly 50) had a lower CBD content? Or is Gaddis limited to bringing claims regarding only the products he purchased? I expect the defendants have the better argument here, which if accepted by the court would significantly constrain the class action and the potential liability of the defendants.
  2. Gaddis seeks to pierce the corporate veils of the various entities he sued, alleging that a parent company “dominates and controls all aspects” the subsidiaries’ operation. But in Florida – as in most jurisdictions – piercing the corporate veil is a drastic measure taken only in rare circumstances. Defendants argue that the mere fact that one company is a corporate parent or affiliate is insufficient to pierce the corporate veil and that Gaddis’ allegations simply do not plausibly plead the circumstances necessary for a court to reasonably infer that the subsidiaries are “mere instrumentalities” of the parent. I believe the defendants have a good argument here as courts are generally loathe to disregard the corporate forms. A ruling in favor of the defendants would further limit the ability of Gaddis and his attorneys’ to reach into the pockets of the defendant corporations.
  3. Gaddis alleges that he and the Class suffered economic injury as a result of the defendants’ conduct. Namely, that they paid a “price premium” for the JustCBD products based on defendants’ express representations about the CBD content of the products. Defendants argue that Gaddis has not plausibly plead a “price premium” injury because he did not plead the specific price he paid, how the price he paid compared to competitors, or how the competitors’ products are comparable to the products he purchase. This argument is persuasive, the deficiency in pleading probably is one that could be corrected. What I mean is that were the court to rule in favor of defendants on this argument, I expect the court would allow Gaddis to try and remedy the deficiency by filing an amended complaint.

Defendants’ motion includes several other arguments including attacks on Gaddis’ claims for (i) violations of New York’s General Business Law §§ 349, 350, (ii) fraud, (iii) violations of the Florida Deceptive and Unfair Trade Practices Act, and (iv) breach of express and implied warranties. I won’t get into those here except to note that fraud claims are subject to a heightened pleading standard under the federal rules and that at least some of the purported deficiencies may be curable.

We will continue tracking this lawsuit and update the blog accordingly. In the meantime, any company involved in selling Hemp-CBD to consumers ought to be working closely with their regulatory attorneys to avoid getting snared by a class action lawsuit. For more reading about advertising and other statements about products see herehereherehere and here.


[Read More ...]

George Scorsis

November 22, 2019
 
James & Ed Investor Research Trip to CannTrust, Hexo, Trulieve, GTII, - Midas Letter RAW 299
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

November 22, 2019
 

Adult-use cannabis sales fell sharply in September in every Eastern Canadian market except Quebec, a reflection of the industry’s inability to open new stores to meet consumer demand in those provinces. Overall sales of recreational marijuana in Ontario, Quebec, Newfoundland, Nova Scotia, Prince Edward Island and New Brunswick declined 5.5% to 71 million Canadian dollars

Recreational cannabis sales in Eastern Canada punished by lack of retail expansion is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

November 22, 2019
 

MORE Act legalize marijuana

The House Judiciary Committee approved a 2019 bill to decriminalize marijuana at the federal level and end cannabis prohibition on Wednesday. The Marijuana Opportunity Reinvestment and Expungement (MORE) Act passed by a vote of 24 to 10 after more than two hours of debate. Two Republican representatives, Matt Gaetz (R-FL) and Tom McClintock (R-CA), joined the 22 Democrats who voted for the bill. This marks the first time a marijuana legalization bill has been approved by a congressional committee.

The MORE Act was introduced by House Judiciary Committee Chairman Jerry Nadler (D-NY), which has several critical components. First, it would decriminalize marijuana at the federal level by de-scheduling it from the Controlled Substances Act. Second, it gives states varying incentives to expunge the criminal records of people with low-level marijuana offenses. Third, it instates a 5% tax on cannabis products that would go towards programs benefiting communities that have suffered most from the War on Drugs.

House Judiciary Committee Chairman Jerry Nadler said in his opening statement:

For far too long, we have treated marijuana as a criminal justice problem instead of a matter of personal choice and public health. Whatever one’s views on the use of marijuana for recreational or medicinal purposes, arresting, prosecuting and incarcerating users at the federal level is unwise and unjust.”

While some Republicans argued that the bill was moving too quickly, others appeared to agree with Chairman Nadler’s sentiments but instead pushed for action on the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act. The STATES Act would simply allow states to determine their own cannabis policies.

Several amendments were introduced during the markup:

  • Chairman Nadler put forth an amendment that added a “findings” section, which noted the racial disparities in prohibition enforcement and the lack of equity for communities targeted by the War on Drugs (approved).
  • Sheila Jackson Lee (D-TX) put forth a proposal to require the Government Accountability Office (GAO) and National Institute on Drug Abuse to conduct a study examining the demographic characteristics of people convicted of federal marijuana offenses (approved).
  • Cedric Richmond (D-LA) filed an amendment to widen the justice reinvestment provisions. For example, the amendment clarifies that those provisions directed at helping people most harmed by the War on Drugs are not limited to programs that help on an individual-level, they can also include programs like community-wide mentorship programs (approved).
  • Ken Buck (R-CO) filed an amendment requiring the GAO to study the societal impact of legalization (approved).
  • Buck also set forth another amendment that would replace major provisions of the MORE Act with the STATES Act (defeated on voice vote).

As with the SAFE Banking Act, the MORE Act still faces a long road towards becoming law. Seven more House committees must approve or waive the bill before it even gets a vote by the full House. And while it’s certainly possible that it could pass in the Democratic House, it then must face the Republican-controlled Senate. Committee member Ken Buck (R-CO) cautioned:

I don’t think a majority of the Republicans will support this bill. It is even less likely that the Senate would take it up. Therefore, I would just suggest that we deal with other bills that we can get a much larger bipartisan support from.”

If the MORE Act does pass the House, Senator Kamala Harris (D-CA) has already introduced a companion bill in the Senate.


[Read More ...]

additional info, George Scorsis

November 22, 2019
 

A key U.S. House panel makes history by passing a federal cannabis legalization bill, Michigan reveals its first adult-use license winners, two states finalize bans on vitamin E acetate as an additive in vaporizer products and more of the week’s top cannabis news. Panel casts first-ever US House vote to federally legalize MJ In a

Week in Review: Landmark cannabis vote by US House committee, first MI adult-use licenses, vitamin E acetate vape additive bans & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

November 22, 2019
 

California cannabis regulators have revoked the business license of well-known vaporizer brand Kushy Punch after the company was raided last month and found to be operating from an unlicensed facility. After receiving a complaint about illegal cannabis activity at a location in Canoga Park, California regulators searched the unlicensed facility and seized nearly $21 million

License revoked for California cannabis vape maker Kushy Punch after state seizes $21M worth of products is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

November 21, 2019
 

The Boston City Council approved an ordinance creating an independent Cannabis Board, in an effort to boost involvement of minority entrepreneurs in Massachusetts’ growing pot industry. The move also creates the state’s first local fund supporting minority-owned firms, according to officials. – Associated Press

Marijuana social equity is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis website

November 21, 2019
 

Israel’s Medical Cannabis Agency has unveiled transitional guidelines that would approve medical cannabis exports on a case-by-case basis provided local supplies are sufficient to meet patient demand, giving licensed companies a new market to sell their product. The new guidelines, which will be in place for at least six months, were laid out by the

Israel unveils six-month transitional guidelines for medical cannabis exports is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

November 20, 2019
 
Charting Man Dan Talks About the Bounce in the Market This Week
To see more from the chartguys visit ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

November 20, 2019
 

California’s cannabis industry continues to struggle with problems that remain much the same since early 2018 when the state transitioned to a legal market – and no clear solutions have yet emerged.  At a two-day marijuana industry conference in Long Beach, California, this past weekend, state regulators and industry insiders mingled to lament those familiar

No one clear path around California marijuana industry’s major business woes, insiders lament is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

more details, George Scorsis

November 19, 2019
 

Australia is one step closer to joining Canada and the Netherlands in the competitive medical cannabis export market. New South Wales-based Australian Natural Therapeutics Group said its domestically produced cannabis has been listed on the Register of Therapeutic Goods (ARTG), clearing one of the most important hurdles before exports can occur. Australian Natural Therapeutics Group

Australian-grown medical cannabis clears key export hurdle for first time is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

November 19, 2019
 

Could medical cannabis be a growth engine for the pharmaceutical industry? A subsidiary of Danish pharmaceutical giant Novo Nordisk is betting the answer is yes. NNE A/S, a 1,000-person strong pharmaceutical engineering and advisory unit of Novo Nordisk A/S , has been counselling medical cannabis companies on establishing pharmaceutical-grade facilities in Europe and Asia. NNE’s cannabis

Tips for entering Europe’s medical cannabis market: Q&A with Christian Carlsen of Danish pharma firm NNE is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

more details, George Scorsis

November 18, 2019
 
TREC Brands, Save Canadian Mining & Matt Bottomley, Cannaccord Genuity  - Midas Letter RAW 295
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

george scorsis

November 18, 2019
 
Matt Bottomly Cannabis Market Analysis
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

November 18, 2019
 
Olympic Gold Medalist Levelling the Playing Field in Cannabis
Canadian professional snowboarder, Olympic Gold Medal Winner and Legacy Brands founder and CEO Ross Rebagliati joins Midas Letter to discuss setting the gold standard for cannabis retail companies and his own sporting experiences with the plant. Mr. Rebagliati was the first ever athlete to win an Olympic Gold Medal for men's snowboarding at the 1998 Olympic Games. Subsequent to winning however, having found traces of THC in his system, was disqualified and stripped of his achievement. The decision was eventually overturned but not before Mr. Rebagliati spent time in a Japanese jail. Since his athletic achievements, Mr Rebagliati has maintained belief that cannabis is part of living a healthy lifestyle and has founded a medical marijuana business: Legacy Brands. Watch the full interview to find out Ross Brands business plan and how the legendary snowboarder is levelling the playing field in Cannabis. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

November 17, 2019
 

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA.

This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday, we summarize a new state in alphabetical order. Today we turn to Michigan.

The cultivation of hemp has been authorized in Michigan and overseen by the Department of Agriculture and Rural Development (“MDARD”). Until a year ago, only the MDARD or a college or university could grow industrial hemp for the strict purpose of research.

However, on December 28, 2018, Governor Rick Snyder signed into law Michigan House Bills 6330, 6331 and 6380 (Public Acts 641, 642, and 648 of 2018), amending the Industrial Hemp Research Act and creating the new Industrial Hemp Research and Development Act. The Industrial Hemp Research and Development Act requires the MDARD to regulate the growing, processing and handling of industrial hemp. The other new laws make changes to the Public Health Code and the Michigan Marihuana Facilities Licensing Act to address the new Industrial Hemp Research and Development Act. Despite these enactments, the new laws won’t go into effect until the USDA approves the state’s plan and the MDARD adopts hemp rules.

Michigan does not appear to have a licensing process for creating products derived from industrial hemp. However, Michigan’s office of Licensing and Regulatory Affairs (“LARA”), which oversees Michigan’s medical marijuana program, issued guidance, stating that marketing CBD-infused food is illegal in the state, per FDA guidelines. The guidelines are silent as to whether CBD may be lawfully infused to other categories of products. Earlier this fall, Michigan’s Governor prohibited the sale of flavored vape products, which seemed limited to nicotine products but could apply to Hemp CBD products. However, the ban was blocked by a judge on October 15, which means the sale of these products remains allowed but unregulated.

While Michigan seems to have jumped on the hemp-bandwagon, the state has yet to regulate the commercial production of hemp and Hemp-CBD products. Accordingly, the distribution and sale of Hemp-CBD products comes with certain risks in the Great Lakes State.

For previous coverage in this series, check out the links below:


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george scorsis

November 16, 2019
 

Continuing our discussion from last week, we received a few follow-up questions on whether patent litigation is really worth the trouble and what can be potentially recovered. In short, the amount of damages you can recover for patent infringement is outlined by statute. Here is a cursory discussion of the different types of damages that are available in such a case:

Compensatory damages

35 U.S.C.A. § 284 provides: “Upon finding for the claimant the court shall award the claimant damages adequate to compensate for the infringement but in no event less than a reasonable royalty for the use made of the invention by the infringer, together with interest and costs as fixed by the court.”

The major, underlying theory of damages in patent litigation is to deny the infringer the fruits of his illegal act, AND to restore to the patent owner the benefits which he would have derived from his monopoly had he not been denied the infringing sales. Another way to think about this is the distinction between “damages” and “profits.” Profits refers to what an infringer makes. Damages refers to what a patent owner lost by the infringement. A patent owner’s monetary award equals the amount adequate to compensate him for the infringement (usually, for the patent owner’s lost profits), but in no event less than a reasonable or established royalty.

Measured by patent owner’s lost profits

For a patent owner to recover lost profits, he must demonstrate that “but for” the infringement, he would have made the sales that the infringer made. To recover under the lost profits approach, the patent owner must prove two things:

  • The patent owner would have made the sale of the product but for the infringement (which is an inquiry made based on the demand for the patented product in the market, the patent owner’s ability to meet this demand, and the absence of acceptable substitutes); and
  • Computation on the loss of profits by proper evidence.

Unlike copyright or trademark infringement, patent infringement does not provide for an accounting for an infringer’s profits (except in the case of a design patent). However, the infringer’s profits may properly be considered, for comparison purposes with the patent owner’s proof of his lost profits, in estimating the patent owner’s damages.

Lost profits may be in the form of diverted sales, eroded prices, or increased expenses. It should be noted that an infringer’s foreign sales are not included in this calculation because protection only extends to infringement in the United States.

Measured by a reasonable royalty

In the event a patent owner cannot prove the above, his damages are limited to a “reasonable royalty.” A reasonable royalty is generally the amount at which a person desiring to manufacture and sell a patented product would be willing to pay as a royalty to the patent owner. The factors considered in this analysis are called the Georgia-Pacific factors (from Georgia-Pacific Corp v. United States Plywood Corp.):

  • The royalties received by the patent owner for the licensing of the subject patent.
  • The rates paid by the licensee for the use of other patents comparable to the subject patent.
  • The nature and scope of the license, as exclusive or non-exclusive.
  • The licensor’s established policy and marketing program to maintain his patent monopoly by not licensing others to use the invention or by granting licenses under special conditions designed to preserve that monopoly.
  • The commercial relationship between the licensor and licensee.
  • The effect of selling the patented specialty in promoting sales of other products of the licensee; the existing value of the invention to the licensor as a generator of sales of his non-patented items; and the extent of such derivative or convoyed sales.
  • The duration of the patent and the term of the license.
  • The established profitability of the product made under the patent; its commercial success; and its current popularity.
  • The utility and advantages of the patent property over the old modes or devices, if any, that had been used for working out similar results.
  • The nature of the patented invention; the character of the commercial embodiment of it as owned and produced by the licensor; and the benefits to those who have used the invention.
  • The extent to which the infringer has made use of the invention; and any evidence probative of the value of that use.
  • The portion of the profit or of the selling price that may be customary in the particular business or in comparable businesses to allow for the use of the invention or analogous inventions.
  • The portion of the realizable profit that should be credited to the invention as distinguished from non-patented elements, the manufacturing process, business risks, or significant features or improvements added by the infringer.
  • The opinion testimony of qualified experts.
  • The amount that a licensor (such as the patent owner) and a licensee (such as the infringer) would have agreed upon (at the time the infringement began) if both had been reasonably and voluntarily trying to reach an agreement.

Indirect damages

Generally, indirect or consequential damages (such as lost supply sales) are not recoverable.

Interest on damages award

35 U.S.C.A. § 284 provides as follows regarding interest: “Upon finding for the claimant the court shall award the claimant damages … together with interest and costs as fixed by the court.”

Both pre-judgment and post-judgment interest are included.

Exemplary (or, punitive) damages

35 U.S.C.A. § 284 provides as follows regarding exemplary damages: “When the damages are not found by a jury, the court shall assess them. In either event, the court may increase the damages up to three times the amount found or assessed.”

A patent owner can win exemplary damages, up to and including three times the actual damages, where the infringer has knowingly, deliberately, intentionally, willfully, or wantonly infringed the patent. While “willful infringement” is a nebulous fact inquiry, the primary question is whether the infringer, acting in good faith, had reason to believe that it had the right to act in the infringing manner. The In re Seagate Technology test is comprised of two parts:

  • Did the infringer act despite an objectively high likelihood that his actions would constitute infringement of a valid patent? (Note, the infringer’s actual state of mind is irrelevant).
  • Was this risk either known or so obvious that it should’ve been known to the infringer?

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George Scorsis Aphria

November 15, 2019
 

MedMen, a Los Angeles-based multistate marijuana operator, announced it is laying off more than 190 employees to shore up its bottom line, joining a growing list of cannabis companies shedding workers amid falling MJ stock prices and a dearth of outside funding. The cash-strapped, vertically integrated company also disclosed plans to scale back its store

Major cannabis firm MedMen slashes more than 190 jobs, unloads assets to bolster bottom line is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

November 15, 2019
 
Red, White & Bloom & StoneCastle Cannabis Update - Midas Letter RAW 294
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

November 15, 2019
 
StoneCastle Investment
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

November 15, 2019
 

Infusing honey with CBD is a fast and easy process that creates a CBD sweetener that can be added to a range of food and beverages to make your own DIY CBD edibles. 

Looking for a sweet way to use CBD as a daily supplement, try infusing CBD with honey. CBD honey is great on its own as a sweet CBD supplement swallowed from a spoon, but it can also be used to create CBD edibles like CBD yogurt parfaits, CBD tea, CBD smoothies, and more. 

You don’t have to be an expert in the kitchen to make your own CBD honey in your kitchen. With just a few simple steps, you could be adding this CBD infused sweetener to your foods and drinks at home. 

Making CBD Honey

This recipe will provide about 16.5 mg of CBD in each tablespoon serving, but the recipe is easily altered to meet your preferences. 

Each mg of powdered CBD isolate is approximately 1 mg of CBD. It is easy to modify this recipe to use more or less CBD, making it a snap to adjust the amount of CBD per serving to best fit your needs. 

You can also adjust how much CBD honey you make at a time. This recipe uses a full 24 oz bottle of honey (available in any grocery store). However, you can make as much or as little as you want in each batch. 

This recipe calls for using a double boiler or slow cooker that will keep the honey from burning. If you don’t have access to a double boiler, then you can use a saucepan. When using a saucepan, use low heat and stir regularly to keep the honey from burning. 

What you will need:

  • Double boiler (or similar heating method)
  • Honey – 24 oz (or preferred amount)
  • RSHO™ CBD Isolate – 500 mg
  • Glass jar for storage

Instructions

  1. Combine honey and CBD isolate in double boiler. 
  2. Heat to a temperature of 95 degrees Fahrenheit. 
  3. Stir constantly as CBD dissolves into honey. 
  4. Once CBD is fully dissolved into honey, remove from heat.
  5. Before fully cooling, transfer CBD honey into glass jar for storage. 

If you follow this recipe as written, 24 oz of honey will provide about 30 servings of one tablespoon each. There will be just over 16 ½ milligrams of CBD in each serving.  

You do not need to keep your CBD honey in the refrigerator. Simply store in an airtight container at room temperature. 

Why CBD Edibles

Infusing foods and beverages with CBD is a great way to add the benefits of hemp derived CBD into your diet. When CBD is taken with food, the body is able to more efficiently absorb the CBD and other cannabinoids before transporting throughout the body. 

Here is more about why you should take CBD oil with food

You can use our 99 percent pure CBD Isolate from RSHO™ to infuse your edibles like our CBD honey. This pure CBD powder can be blended into foods and beverages to create any number of CBD edibles. 

There are literally dozens and dozens of possible recipes. Use our CBD recipes to stimulate your creative cooking juices. Keep in mind that it isn’t suggested that you cook with CBD, especially at high heat, as doing so can diminish potency.

You can also use RSHO™ CBD concentrates to create your CBD honey. Because these pure CBD oils are full spectrum, they offer more than just CBD, infusing your honey with all the same beneficial nutrients, terpenes, flavonoids, and cannabinoids that are present in the hemp plant. 

RSHO™ CBD concentrates come in a wide range of CBD concentrations, so some math will be required to formulate a serving size that works best for you. Simply divide the amount of CBD you add by 30 to get the amount of CBD per one tablespoon serving. 

Learn More

Read more about the benefits of CBD and other CBD topics now on our CBD Oil Education page. 

You can also find more recipes like this on our CBD Oil Recipes page.


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George Scorsis

November 15, 2019
 

Layoff announcements continue to weigh on the marijuana industry, state regulators focus on vitamin E acetate additive in vaporizer products as the vape crisis continues, Michigan businesses set their game plans for a December adult-use MJ launch, and more of the week’s top cannabis news. Pink slips pile up  Three well-known California cannabis companies this

Cannabis layoffs, regulators scrutinizing vitamin E acetate as vape villain, MI adult-use launch looms & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

November 14, 2019
 
The Esports Ecosystem & How To Invest
New Wave Esports (CNSX:NWES) CEO, Dan Mitre ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

November 14, 2019
 

International CBD company Kannaway again honored by global business awards for their industry leading efforts. 

Medical Marijuana, Inc. subsidiary Kannaway was recently named Small Business Company of the Year in the Life Sciences, Health, Wellness, and Nutrition category by the Business Intelligence Group’s 2019 BIG Awards for Business

The Business Intelligence Group’s 2019 BIG Awards for Business launched seven years ago with the mission to acknowledge companies, products, and people that are leading their respective industries. 

The organization’s proprietary and unique scoring system selectively measures company performance across multiple business domains and then rewards those companies whose achievements stand above those of their peers.

As the first direct selling company to bring hemp based cannabidiol (CBD) products to market in the U.S. and Europe, Kannaway has been a leader in the international CBD market. The company distributes its line of CBD products through its global team of brand ambassadors. 

Kannaway was named Small Business Company of the Year by the 2019 BIG Awards for Business to recognize the company’s international advocacy efforts for CBD access and education, their innovative products, and successful year over year growth. 

In 2018, Kannaway experienced an increase of nearly 200% in revenue over 2017 revenue, with much of that success attributed to its European operations. This year, the company is on track to again to surpass the previous year’s sales. 

“We are honored and humbled to have the hard work of our team recognized by the BIG Awards for Business,” said Kannaway CEO Blake Schroeder. “2019 was a banner year for revenue growth at the Company, especially in our international operations, and we are proud to continue to be a pioneer for the industry in educating new markets about hemp-based CBD.”

Kannaway’s CEO Blake Schroeder also took home a 2019 BIG Awards for Business, being named Small Business Executive of the Year in the Life Sciences, Health, Wellness, and Nutrition category.

Schroeder is one of 60 global leaders recognized by the 2019 BIG Awards for Business and the sole winner of the Small Business Executive of the Year for the Life Sciences, Health, Wellness, and Nutrition category. 

The award honors Schroeder’s efforts in growing Kannaway’s revenue more than 60 times since joining the company’s executive team, along with his work to help expand the Kannaway’s hemp and CBD product offerings to meet growing worldwide consumer demand.

“We are excited by this recognition and believe that it will help us make CBD and hemp-derived products available to people around the world,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus of the news. “Awards like these continue to boost our reputation as a category leader and set a standard of professionalism that we wish to impart upon the entire industry.”

The hard work and resulting success from Kannaway has garnered a number of awards in 2019, including: 

You can learn more about Kannaway and the rest of the Medical Marijuana, Inc. portfolio of CBD products here, or visit our company news feed for the latest from across our portfolio. 

Interested in trying CBD for yourself? Shop our online CBD store.


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George Scorsis Aphria

November 14, 2019
 

On October 31, the U.S. Department of Agriculture (USDA) published its interim final rules for the production of hemp under the 2018 Farm Bill. Our firm has provided a broad overview of the rules and written about the potential impact of the testing rules on the hemp industry. Today we address disqualifying criminal history for the purpose of participating in the hemp industry.

The interim rules outline the requirements for States and Indiana Tribes hemp production plans, which must be approved by the USDA.  Among these requirements is that if the producer is a business entity, the State or Tribe must collect and submit information that includes:

  • The full name of the business,
  • Address of the principal business,
  • The location, full name and title of the “key participants”,
  • An email address if available, and
  • The EIN number of the business entity

Applications for a producer license – whether submitted to the USDA, a State, or a Tribe – must be accompanied by a completed criminal history report for each key participant. This is because the 2018 Farm Bill prohibits persons convicted of a felony related to a controlled substance under State or Federal law from producing hemp for 10-years following the date of conviction. An exception applies to persons who were lawfully growing hemp under the 2014 Farm Bill before December 20, 2018 (the date that the 2018 Farm Bill was signed into law), and whose conviction occurred before that date.

Who is a key participant? A key participant is:

  1. A person or persons who have a direct or indirect financial interest in the entity producing hemp, such as an owner or partner in a partnership;
  2. Persons in a corporate entity at executive levels, including chief executive officer, chief operating officer and chief financial officer.

The rules expressly state that “key participants” do not include other management positions like farm, field or shift managers.

USDA is requiring a criminal history records report for key participants because those persons are likely to have control over hemp production, whether production is owned by an individual, partnership, or a corporation. What does this mean? It means that the USDA considers those persons as responsible for ensuring compliance with the regulatory requirements. For a corporation, if a key participant has a disqualifying felony conviction, the corporation may remove that person from a key participant provision – failure to do so will result in a denied application or license revocation.

What is unclear from the interim rules is how far into a web of corporate relationships the requirement of identifying and providing criminal history reports for key participants’ extends.  Consider a scenario in which Company X is applying for a hemp production license. Company X is owned in equal parts by two individuals and Company Y. Company Y’s ownership is comprised of three individuals and a trust.  Read broadly, the requirement to identify key participants and submit criminal history reports would apply to C-level employees of Company X, five individuals and the beneficiaries of the trust and may include the trustee.  This is a basic example of the kinds of corporate structures that we often see and which can create burdensome headaches when it comes to identifying “key participants.”

Those of us operating in states that have legalized recreational marijuana are used to reading the identification as extending through the entire corporate family.  For example, here is a recent post on this issue California. And here is a post about considerations for foreign companies when investing in US cannabis. As these articles explain, financial interest disclosure requirements can be incredibly difficult to comply with and it may not always be clear who has an “indirect” interest.  The goal of such regulations is to ensure that the government knows the identity of every person who may profit from the recreational marijuana business.

It appears that may also be the case for hemp and there is much more to say on this and other topics. So stay tuned as we delve further into the interim rules governing hemp production in the coming weeks and please register for our webinar this afternoon at 12:00 PM.

 


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george scorsis

November 14, 2019
 

Outdoor marijuana growers are reporting an increase in cross-pollination from hemp farms, a development that could mean MJ cultivators might lose upwards of tens of thousands of dollars if their plants become unmarketable as flower products.

Cross-pollination could cost marijuana farmers several thousand dollars as hemp production expands nationwide is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

November 13, 2019
 

Cresco Labs, a Chicago-based multistate cannabis operator, and Origin House are overhauling the terms of their merger announced earlier this year, as falling cannabis stock prices and other factors slashed the value of the transaction in half to approximately $400 million. Because of the revised terms, the transaction also will now not close until approximately

Cresco Labs, Origin House revamp cannabis merger as value falls more than 50% and close delayed is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

November 12, 2019
 
Adastra Labs & Market Analysis - Midas Letter RAW 291
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

george scorsis

November 12, 2019
 

New British guidelines for the first time recommend that two plant-based cannabis medicines – Sativex and Epidiolex – be covered through the United Kingdom’s National Health Service (NHS), a significant step that is likely to boost sales of both products. Health regulators also are recommending the NHS make available a synthetic cannabinoid known as nabilone.

New UK guidelines recommend public insurance coverage for two GW Pharma cannabis medicines, plus a synthetic cannabinoid is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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more information, George Scorsis

November 12, 2019
 

Ontario-based Cronos Group reported quarterly revenue of 12.7 million Canadian dollars ($9.6 million), an improvement over the previous quarter’s CA$10.2 million but slightly lower than consensus estimates. The cannabinoid company’s adjusted EBITDA loss widened quarter-over-quarter to CA$24 million. Cronos said it shipped 3,142 kilograms (6,927 pounds) of cannabis in the third quarter, double the amount

Cronos to convert some cultivation space, reports revenue growth is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

more info, George Scorsis

November 12, 2019
 

On the heels of recent news that several U.S. and Canadian marijuana companies were slashing employee headcounts, two more California companies announced job cutbacks. CannaCraft and Grupo Flor both told Marijuana Business Daily they undertook cost-saving layoffs as a result of financial challenges, which along with previous downsizing disclosures by other cannabis firms might suggest larger underlying financial

Two more California cannabis companies disclose layoffs is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

addiitional information, George Scorsis

November 12, 2019
 

Citing Ontario’s slow cannabis retail build-out, Organigram Holdings issued revenue guidance for expected fourth-quarter net revenue of 16.3 million Canadian dollars ($12.3 million), a substantial decline from the previous quarter’s CA$24.8 million. Analysts had expected the New Brunswick producer to report quarterly net revenue of about CA$27 million. That prompted a downgrade from Bank of

Organigram blames Ontario’s slow retail build-out in lower revenue guidance is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

November 11, 2019
 

Jamaica plans to overhaul the interim regulations governing legal marijuana businesses and create a national road map to support the development of the island’s regulated industry. The support could help businesses overcome obstacles hindering the sector’s growth, which include banking issues and finding markets for products. The Agriculture Ministry (MICAF) will reconstitute the National Cannabis Advisory

Jamaica plans cannabis regulations overhaul, blueprint for industry support is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

November 11, 2019
 

It is trite of me to say so, but the current “gold rush” in the U.S. has prospectors dreaming of double-fisting cannabis buds and greenbacks, and that makes for fertile fraud soil. In this green rush, investors are voraciously putting money into cannabis ventures that are, in some instances, producing vast amounts of cash and garnering valuations at 10x (and more) EBITDA when potential purchasers come knocking (and they are knocking) (see here and here for posts on cannabis business valuations). But this frothy business market means the fraudsters are also salivating en masse about would-be investors, and securities regulators are keeping close tabs on these securities transactions. Regardless of which side of the investment equation you are on, you do not want your company, yourself, or someone you care about to be involved in securities fraud. This post focuses on Utah, which is infamous (pronounced IN-fame-us) for being one of the fraud capitals of the U.S., but the principles are widely applicable to cannabis ventures in established cannabis markets like Colorado, Washington, Oregon, California, Maine, and beyond.

I recently attended Utah’s annual securities law workshop with some heavy-hitting headliners: Ben McAdams from Utah’s Congressional delegation; the chief accountant for the SEC’s enforcement division; and the head of Utah’s Division of Securities, Tom Brady (the slightly less famous one). Mr. Brady confirmed for me that Utah has more than its fair share of fraud and that the fraud has a particular Utah flavor, with confidence schemes dominating the landscape, often perpetuated by fraudsters who work their church, neighborhood, and family connections in a state that rivals China for its interconnectedness (in Chinese it’s called guanxi (gwon shee) – 关系). Many of Mr. Brady’s examples of fraud perpetuated in Utah began with a hot tip provided by a well-regarded businessperson who was extremely likeable and therefore seemed trustworthy. Utah has a very trusting population, and it also has a growing elderly population, both of which are vulnerable to fraud. Although it is currently only appearing as an intermittent blip on the radar of Utah’s Division of Securities, the Utah cannabis scene is ripe for fraud opportunities. Caveat investor.

Utah is on the cusp of rolling out its medical marijuana program. The Utah Department of Health will begin issuing medical marijuana cards no later than March 1, 2020. Even before Utah voters passed the ballot initiative on November 6, 2018, the green rush had already started in Utah, with would-be investors looking at getting in on the ground floor in Utah’s new marijuana marketplace. Heavy cannabis investments are happening in all the states where we have attorneys: Washington, Oregon, California, and Utah, which means that bogus investments (not just bad investments) are also being shopped to would-be investors as an alternative to the evergreen oil-and-gas venture fraud in the West. How can prospective investors in a Utah cannabis venture avoid losing their money in a fraudulent scheme? It helps to ask the right questions and to know what the right answers sound like.

Is the company or individual raising funds using a law firm to help with the transaction? Does that law firm know both securities and cannabis?

These questions are partially self-serving, but I put this point first because you do not want to dabble in securities law, whether you are a company, an individual businessperson, an investor, or a lawyer. Whatever your role in business, if money is changing hands between investors and a business venture, the investor is investing in securities being offered by the company. Even if it is “just” a promissory note or you are “just” loaning some funds to a friend or family member, unless you do not care about getting your money back, make sure there is a qualified securities attorney involved. There are a lot of great attorneys in Utah. There are at least two good cannabis attorneys in Utah. I am not aware of any other lawyers in Utah who know both securities and cannabis. You need good securities attorneys representing the company and each investor.

If the company is using an intermediary to solicit investments, is that intermediary licensed to solicit investments? Are they registered with the SEC, FINRA, or the State of Utah? Has the intermediary been disciplined by any of these entities?

Intermediaries or “finders” are (by definition) not involved with the day-to-day operations of the company that is soliciting investment, and they must be registered with state and federal regulators because they are in the trusted position of soliciting funds for investment. If the intermediary is not registered as a broker or investment advisor, they should not be soliciting investments unless they have a direct and substantial role with the company. If the company thinks the intermediary is registered but the intermediary is not registered, you should think twice about investing with the company. If the company does not know that their intermediary needs to be registered, you should also think twice about investing with the company.

What type of investment registration statement is the cannabis venture required to file?

The company either has to register its investment securities or qualify for an exemption from registration. If the company owners do not know what a securities offering is, you should think twice before investing with the company unless the company is willing to get competent advice from a securities lawyer. If the company or its attorney has not heard of Reg D, Rule 4(a)(2), or Rule 506, you should probably walk away or insist a qualified securities attorney get involved.

What parts of a cannabis business can be invested in, or what are the limits to the company’s business purpose?

Some states (like Arizona) allow full integration of marijuana business activities; others (like Washington) do not. If, for instance, the company seeking investment plans to develop a cannabis testing facility and have a fully integrated cannabis business (cultivate, manufacture, distribute/transport, and retail sales), but you know that the company can only do what its license permits, then you may want to look for another company to invest in. In Utah, only eight companies have been authorized to grow medical cannabis: Dragonfly Greenhouse, Harvest of Utah, Oakbridge Greenhouses, Standard Wellness Utah, True North of Utah, Tryke Companies Utah, Wholesome Ag, and Zion Cultivars. There will initially be only up to 14 privately-operated medical cannabis pharmacies licensed by the Utah Department of Health, but the RFP for applications has not yet been issued.

What can be found out about the principal owners and operators of the business by (1) word of mouth, (2) a simple Google search, and (3) checking with state and federal securities regulators?

I cannot tell you how many instances of investment fraud could have been avoided by doing a simple Google search. This was stressed recently in another conference I attended with the Washington State securities regulators. Do your homework or pay someone else to do your homework. In the legal world, that homework is called “due diligence”, which is a crucial part of any business transaction.

When it comes to investing in cannabis, know your counterparts, know their business, and know their flaws and weaknesses. Know all of this before you invest.


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George Scorsis

November 10, 2019
 

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA.

This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday, we summarize a new state in alphabetical order. Today we turn to Massachusetts.

The Massachusetts Department of Agricultural Resources (“MDAR”) oversees the state’s “Hemp Program.” The Hemp Program offers the following services:

  • Licensing for Growers and Processors through an application process
  • Inspection of growing sites and processing facilities
  • Education and outreach to interested parties and hemp program participants
  • Certification of Industrial Hemp through regulatory testing to ensure THC levels < 0.3%

MDAR test the THC percentage in hemp using high-performance liquid chromatography (“HPLC”) to test for total THC, including both delta-9 THC and THCa. This appears to be required pursuant to the recently issued interim hemp rules but is going to likely create problems for hemp growers nationwide.

An MDAR license is required to plant, grow, harvest, process or sell industrial hemp in Massachusetts. MDAR issues three different license types for growers, processors, and for those engaged in both growing and processing. A grower is a person who cultivates Industrial Hemp, and a processor converts Industrial Hemp into a marketable form through extraction or manufacturing. A processor is only allowed to process hemp that was grown in Massachusetts as part of the Hemp Program. However, according to MDAR’s Frequently Asked Questions on hemp, there is an exception to this general prohibition:

The only exception to this is if such hemp to be processed was obtained lawfully under federal law from an approved source. We are still waiting on guidance from USDA as to how domestically grown, unprocessed hemp may be transported over state lines and as such no unprocessed hemp grown in the United States may be brought into Massachusetts for processing at this time.

MDAR’s FAQs also state that Massachusetts was “waiting for additional guidance from USDA before developing a plan to ensure compliance with the 2018 Farm Bill[.]” Now that the USDA has provided guidance through its interim hemp rules, it appears to be only a matter of time before Massachusetts submits a hemp production plan to the USDA pursuant to the 2018 Farm Bill.

When it comes to the sale of hemp-derived products, the MDAR states that it does not regulate the retail market and is limited to the wholesale market. According to the MDAR, the wholesale market includes the following transactions:

  • Wholesale of industrial hemp from Massachusetts Grower to Massachusetts Grower
  • Wholesale of industrial hemp from Massachusetts Grower to Massachusetts Processor
  • Wholesale of industrial hemp from Massachusetts Processor to Massachusetts Retailer
MDAR does not require a license for the retail sale of hemp-derived products.
MDAR states that the following hemp-derived products can and cannot be wholesaled in Massachusetts:
Allowed Not Allowed
Hemp seed and hemp seed oil Any food product containing CBD
Hulled hemp seed Any non-food product containing CBD derived from hemp that makes therapeutic and/or medicinal claims on the label, unless it has already been approved by the FDA
Hemp seed powder Any product containing CBD that is being marketed as a dietary supplement, unless already approved by the FDA
Hemp protein Animal feed that contains any hemp products, including CBD
Clothing Unprocessed or raw plan hemp, including flower that is meant for end use by a consumer.
 Building material
Items made from hemp fiber
Non-food CBD products for human consumption that DO NOT make any medicinal/therapeutic claims on the label and  are not marketed as a dietary supplement, unless the product has already been approved by the FDA.
Flower/plant from a Massachusetts licensed Grower to a Massachusetts licensed Grower or Processor

The Massachusetts Department of Public Health (“MDPH”) has also posted FAQs on CBD and hemp in food.  Unlike MDAR, the MDPH does have the ability to regulate retail sellers of food. Therefore, the sale of Hemp-CBD food and dietary supplement products is not allowed in Massachusetts. In addition, Massachusetts issued a temporary ban on “all non-flavored and flavored vaping products, including mint and menthol, including tetrahydrocannabinol (THC) and any other cannabinoid.”

In summary, Massachusetts allows for the cultivation and processing of hemp and appears to be working on a plan in light of the 2018 Farm Bill and USDA’s interim hemp rules. Massachusetts currently bans the sale of Hemp-CBD in food, dietary supplements, and unapproved drugs, following the FDA’s state position on these products. Massachusetts also prohibits the sale of hemp flowers and has a temporary ban on vaping products, essentially eliminating the smokable hemp market as well.

For previous coverage in this series, check out the links below:


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george scorsis

November 08, 2019
 
Inner Spirit Holdings (CNSX: ISH), Canopy Rivers (TSE: RIV) - Midas Letter RAW 289
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

more information, George Scorsis

November 08, 2019
 
Canopy Rivers Inc.(TSE:RIV) CEO, Narbé Alexandrian
Canopy Rivers Inc.(TSE:RIV) CEO, Narbé Alexandrian ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

November 08, 2019
 

A group comprised of cannabis industry leaders and experts is calling on Ontario’s government to provide a more complete timetable for when retail stores will be permitted through an open allocation of licenses. So far, the province has used a botched lottery system to award opportunities to open recreational marijuana stores. The Ontario Cannabis Policy

Ontario business group wants ‘clear timeline’ for cannabis store expansion is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

November 08, 2019
 

Cannabis companies confront fewer funding opportunities, Vireo Health taps Bruce Linton to help the multistate operator expand, a Massachusetts judge rules an emergency ban on vapes can’t be enforced for medical marijuana patients – and more of the week’s top cannabis business news.   Marijuana investment activity slows Cannabis companies are struggling to thrive as

Week in Review: Marijuana lending activity cools, Vireo hires Linton, MA judge lifts MMJ vape ban & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

November 08, 2019
 

One of the largest cannabis companies in the world, Canopy Growth, is restructuring its overseas operations by laying off 15% of its workforce in Latin America, reflecting the slow pace at which revenue-generating opportunities and regulatory structures are evolving in the region. Though the layoffs account for a tiny fraction of the Canadian producer’s global 3,850-person workforce,

Cannabis producer Canopy downsizes Latin America workforce as region struggles to generate revenue is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

November 07, 2019
 

Illinois awarded three more medical marijuana retailers licenses to sell recreational cannabis, including two in Chicago. There are now 14 medical marijuana dispensaries in Illinois that can sell recreational cannabis when legal sales begin Jan. 1, the Chicago Tribune reported.

Illinois hands out three more adult-use cannabis licenses, two in Chicago is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

November 07, 2019
 

To help expand its national footprint, multistate marijuana company Vireo Health International has hired Bruce Linton, one of the biggest names in the cannabis industry and former leader of Canada’s Canopy Growth until his surprise firing in the summer. It’s a high-profile hire for the U.S. cannabis industry, one that many executives and investors across

Marijuana company Vireo Health wagers on former Canopy co-CEO Linton to expand nationally is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

November 07, 2019
 
StoneCastle Investment
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

george scorsis

November 06, 2019
 
Orthogonal Thinker & 420Investor Alan Brochstein - Midas Letter RAW 287
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

November 06, 2019
 
Nikolaas Faes - Bryan, Garnier & Co
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

November 06, 2019
 
Cannamerx company update with CEO, Dietwald Claus
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

November 06, 2019
 

Anyone paying attention to cannabis business headlines has noticed what on its face seems a disturbing trend: At least half a dozen large companies recently announced layoffs, perhaps suggesting there’s financial trouble surrounding the marijuana industry. But those headlines don’t reveal the full story, several industry watchers told Marijuana Business Daily. Rather, recent layoffs are a

Experts suggest recent marijuana industry layoffs are part of a reality check; more job cuts expected is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

November 05, 2019
 
Introduction to Toronto-Based Trichome Financial - A Lender to Canadian & Global Companies
Trichome Financial - CEO, Michael Ruscetta ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

November 05, 2019
 
Wikileaf Technologies (CNSX:WIKI) Founder & Ceo, Dan Nelson
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

November 04, 2019
 

New regulations to facilitate the commercial export of medical cannabis from Jamaica, intended to make the country’s businesses competitive on the global stage, face further delay as relevant ministries iron out the final rules. Agriculture Minister Audley Shaw previously stated the regulations were to be finalized in September 2019. Speaking at a Public Administration and

Jamaica’s medical marijuana export rules face further delay is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

November 04, 2019
 

Marijuana regulators in Michigan received 52 recreational cannabis business license applications on the first day of the application period, a modest number because most communities initially decided to opt out of the program. “With that level of municipal participation, it’s not surprising that applicants are waiting and wanting to see how the landscape unfolds,” Andrew

Michigan nets 52 adult-use marijuana applications on first day is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

November 04, 2019
 

Canadian marijuana company Sundial is facing two class action lawsuits filed in the United States by shareholders over hundreds of pounds of alleged “un-sellable” cannabis. The latest suit charged that the company failed to disclose that one client, Vancouver, British Columbia-based Zenabis Global, returned more than 1,200 pounds of marijuana worth $1.9 million (2.5 million

Shareholders sue Canadian cannabis grower Sundial is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional info, George Scorsis

November 04, 2019
 

Whether it’s a cannabis-focused arts and music festival, a “garden party” or a tour that guides visitors from cultivation all the way to the sales floor, experts say that creating memories that stick with customers is among the most effective ways to build brand loyalty. In an industry constrained by regulations that limit cannabis advertising,

Offering consumers a face-to-face experience helps them remember a marijuana brand, experts advise is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

November 01, 2019
 

Michigan’s adult-use cannabis application process got off to a fast start Friday, with regulators giving “prequalification” approval to two existing medical cannabis operators before 9:30 a.m. local time. But a spokesperson for the state Marijuana Regulatory Agency told the Detroit Free Press that the second stage of the approval process will take a few weeks.

Michigan starts taking recreational marijuana applications is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

November 01, 2019
 
Cannamerx & StoneCastle Weekly Update - Midas Letter RAW 284
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

November 01, 2019
 

Chicago-based Cresco Labs is more than doubling its workforce in Illinois as the multistate operator prepares for the Jan. 1 launch of recreational cannabis sales in the state. The company, expected to close its acquisition of Canada-based distributor Origin House by Nov. 15, said it is hiring more than 300 people in its home state

Cresco Labs growing jobs in Illinois as adult-use marijuana looms is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

November 01, 2019
 

The shortage of cannabis that plagued businesses in the early months of legalization is over, according to an industry group representing Canada’s biggest marijuana producers. “There is ample supply of cannabis for the adult recreational market,” Cannabis Council of Canada wrote in an open letter to Ontario Premier Doug Ford, who cited the shortfall when

‘No longer a shortage,’ Canadian cannabis industry group declares is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

November 01, 2019
 

usda hemp testing rules

On Tuesday, the U.S. Department of Agriculture (“USDA”) released its interim final rule for the production of hemp under the 2018 Farm Bill. Although these rules are not final, they will go into effect once published in the Federal Register, at which point a 60-day public comment period will begin.

Upon the publication of the rules, our firm provided a broad overview of the provisions found in the rules. Today, we further discuss the THC testing requirements proposed in the rules and how they will impact the hemp industry.

TOTAL THC TESTING PROTOCOL

To the disappointment of many in the hemp industry, the USDA adopted a total THC testing requirement. As we previously explained, total THC is the molar sum of delta-9 THC (“THC”) and delta-9 tetrahydrocannabinolic acid (“THCA”). Using a total THC testing protocol will create additional hurdles for hemp farmers who are already engaged in a precarious industry. Not only does this testing method tend to increase the THC concentration in the hemp sample, and thus, pushes it over the 0.3 percent limit, it also limits the type of strains farmers can work with. This is because few hemp genetics currently on the market would comply with a total THC testing method. Consequently, this rule will force hemp farmers to carefully select the types of seeds they buy.

To make things worse, the USDA rules also require that hemp be sampled and tested for total THC within 15 days of anticipated harvest. Given that the concentration of THC increases as harvest approaches, the rule will create additional challenges to get at or under the 0.3 percent limit. Although the USDA stated in its rules that it was “requesting comments and information regarding the 15-day sampling and harvest timeline,” the agency also explained that the rule “will yield the truest measurement of THC level at the point of harvest.” In light of these statements, it will be interesting to see whether stakeholders’ input on the matter will convince the USDA to revise this requirement.

DEA REGISTRATION

The USDA testing rules further require that the testing labs be registered with the Drug and Enforcement Administration (“DEA”). The rationale for this rule is that labs could potentially handle hemp that tests above the THC testing limit, and thus, would constitute “marijuana”, a Schedule I drug under the Controlled Substances Act. Because it is unlawful to possess marijuana without a DEA registration, all labs must be registered with the DEA in order to conduct hemp THC testing. However, the current DEA rules limit registration to labs located in jurisdictions in which the prescription, distribution, dispensing, research and handling of marijuana is legal. Accordingly, this USDA rule may reduce the number of labs that will be authorized to engage in this industry, which would be problematic given the fact that there are currently too few labs compared to the amount of hemp being produced.

Therefore, the proposed USDA rules present real challenges for the hemp industry as many crops will likely fail to meet the total THC limit and fewer labs will be allowed to test the crop.

If you would like to further discuss this issue, please contact our team of regulatory attorneys.


[Read More ...]

George Scorsis website

November 01, 2019
 

The U.S. Department of Agriculture (USDA) unveils its hotly anticipated hemp regulations, Mexico’s bid to legalize recreational marijuana is delayed, sales of adult-use MJ in Michigan won’t begin until March or April at the earliest – and more of the week’s top cannabis business news. USDA rolls out hemp rules The USDA released 160 pages of

USDA issues hemp rules, Mexican recreational cannabis vote delayed, spring rollout for Michigan’s rec market & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

October 31, 2019
 

Chicago-based Green Thumb Industries, a vertically integrated multistate cannabis company, is refusing to recognize a newly formed Teamsters unit at its cultivation facilities in Rock Island, Illinois, saying the union failed to hold a vote among GTI’s employees on the decision. “GTI respects the rights of our employees,” the company told Marijuana Business Daily in

Cannabis firm Green Thumb refuses to recognize Illinois union effort is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 31, 2019
 

The U.S. Senate on Thursday approved a spending bill that includes a provision that would continue to protect state-legal medical marijuana programs from U.S. Department of Justice interference. The provision, which would be good for a year, was included for the first time in the House fiscal year 2020 Commerce-Justice-Science bill. In the past, the

US Senate votes to continue temporary medical cannabis protections is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

October 31, 2019
 

Denmark’s medical cannabis pilot program saw virtually no quarter-over-quarter growth in the first half of 2019, according to new Danish Health Authority data. Experts say the market was hampered by a combination of prohibitively priced imports and supply issues. In the second quarter, 1,844 cannabis prescriptions were redeemed by 1,045 patients under Denmark’s four-year medical

Danish medical cannabis sales stall on supply, price issues is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis website

October 31, 2019
 
RavenQuest BioMed Orbital Garden Grow-Op
RavenQuest BioMed (CNSX:RQB) CEO George Robinson will tell you when asked if the orbital garden is a gimmick, the short answer is - No.  Our films team went to Edmonton where they are headquartered to see for ourselves and we came away with the same answer: It's not a gimmick at all.  Upon reflection, this shouldn't really be a surprise as they are heavily invested and partnered with bio-science as illustrated with their partnership with McGill University.  It becomes even more obvious listening to George and his attention to detail.  There was simply too much to include in our video; for example that they use batteries in conjunction with their generators so as to never have fluctuations in the voltage going to their systems which he believes will give many of their components an extra 3-5 years of life.  With all of that said, it was still a bit of a jolt to the system looking at the orbital garden which have a very science-fiction vibe to them.  It took a while to get used to seeing only top buds slowing rotating in their golden cylinders. By growing just the "top buds" Raven Quest believes they are saving effort and capital in the long run with their orbital garden.  Why expend more energy to grow an entire plant where a lot of it isn't even used? That is the driving theory behind why they chose to develop and refine their orbital gardens.  They literally take a clone and let it root, then put it right to flower and skip an entire step in the traditional growing process.  By doing this, along with other protocol, they are able to reduce their time-table to about 9.5 weeks all-in; from clipping to putting it in bags to ship out. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

more information, George Scorsis

October 31, 2019
 

unpa natural products cbd fda

I recently attended two events in Utah headlined by the United Natural Products Alliance (“UNPA”) where its President, Loren Israelsen, discussed the voluminous public comments received by the FDA in response its latest round of questions regarding how over-the-counter cannabis extracts like CBD should be regulated. Israelsen provided numerous takeaways for UNPA members and their in-house attorneys regarding CBD and cannabis-derived products, and many cannabis businesses can also benefit from these insights.

As a nearly 40-year veteran of the dietary supplements industry, Israelsen knows his business. UNPA, led by Israelsen, was instrumental in helping pass the 1994 Dietary Supplement Health and Education Act (“DSHEA”), and the majority of UNPA’s calls in recent months have been from UNPA members who want to understand how natural products companies can dive into the CBD world. These inquiries culminated in UNPA reviewing the over 4,000 public comments to the FDA’s inquiries regarding cannabis regulation. In UNPA’s review of the FDA comments, UNPA identified several trends emerging that cannabis business owners should understand to help frame where UNPA believes the cannabis industry is heading in the next five years and beyond, including the intersection of cannabis-derived products appearing as foods, food supplements, drugs, and cosmetics. Those trends are summarized below.

The FDA Already Knows a Lot About CBD.

Epidiolex is a drug that was created by Cambridge, UK-based GW Pharmaceuticals and was approved by the FDA as a drug in 2018 to help relieve epilepsy-induced seizures. GW Pharmaceuticals has now done two decades’ worth of research on CBD and other cannabinoids and is responsible for putting CBD on the FDA’s radar many years ago. CBD’s involvement as an active ingredient in an FDA-approved drug precludes CBD from being marketed as a dietary supplement.

The Larger Battle is for Cannabinoids Generally, Not Just CBD.

GW Pharmaceuticals describes itself as having “established a world leading position in the development of plant-derived cannabinoid therapeutics through its proven drug discovery and development processes, intellectual property portfolio and regulatory and manufacturing expertise.” In its 23-page comment submitted to the FDA, GW Pharmaceuticals provided its well-reasoned argument as to why cannabis research should be led by pharmaceutical companies instead of business leaders (a health care professional-driven market instead of consumer-driven). Even though CBD is driving the current cannabinoid craze, companies like GW Pharmaceuticals are looking beyond CBD to the dozens of other cannabis-derived cannabinoids.

This is a Battle Among the Food and Beverage Industry, the Nutraceutical Industry, and Pharma/BioTech.

GW Pharmaceuticals made it clear that if the FDA allows cannabinoid products to be ingested in food, drinks, or dietary supplements, then pharmaceutical companies have zero incentive to spend millions or billions of dollars on R&D to develop new drug compounds to address diseases. It is highly unlikely that the current CBD market structure will extend beyond CBD to other cannabinoids because the FDA will want to maintain R&D incentives for pharmaceutical and biotech companies.

Big Pharma and BioTech are Much Farther Along than the Food and Beverage Industry and the Nutraceutical Industry.

Based on GW Pharmaceutical’s submitted comments, it is clear that the company has spent decades and many dollars on its research, and it likely knows more about cannabinoids than any other pharmaceutical or cannabis company in the world. In the broader industry, at least 10 cannabinoids are currently under research, and companies are manufacturing synthetic cannabinoids and researching cannabinoids derived from non-cannabis sources. Established food and beverage companies and nutraceutical companies have been slowly wading into the CBD world, but they are lagging behind these pharmaceutical companies.

Dosage/Acceptable Daily Intake Will Vary by the Individual.

The observable negative effects of CBD vary by individual factors such as height and weight, and what dosage is “well-tolerated” is not yet widely understood or implemented in the marketplace. That will change. Israelsen believes that the dosage will look something like this: the number of milligrams of CBD per kilogram of person, with special attention to vulnerable populations (children and pregnant/nursing women) and animals.

Everyone is Starting to Lawyer/Lobbyist Up.

During this interim period where the FDA has not yet issued its final rules, the lawmakers and regulators in Washington D.C. are regularly being contacted by trade groups, trade associations, constituents back home, and lawyers and lobbyists. The current political base is focused on how the cannabis industry is helping disenfranchised rural farmers. These hemp farmers are the ones to hitch your wagon to, especially in states that are not saturated with overcapacity. And if the FDA determines that it does not have enough guidance, it will kick the can back up the road to Congress.

UNPA Wants to Join Forces with Cannabis Businesses and Trade/Interest Groups.

UNPA recognizes that there are many cannabis interest groups and that both existing natural products companies (and trade alliances like UNPA) and new natural products companies (aka cannabis businesses and trade alliances) should collaborate to learn from each other and find commonalities. The natural products companies excel in quality control systems and analytical practices. There may be good opportunities to share expertise, resources, and legal strategies. Israelsen said the nutraceutical industry needs to get to know the cannabis farmers and marijuana-related business groups.

Product Liability Insurance was Not Discussed in the FDA Comments But is Critical.

No one likes to talk about insurance except insurance agents and lawyers. Israelsen stressed the importance of insurance for all companies engaging in the cannabis industry, and it underscores this prior blog post about product liability insurance.


The next several months will provide significant insight into these issues and how they will affect the intersecting paths of companies in the pharmaceutical, biotech, nutraceutical, food and beverage, and cosmetics industries. I believe we will see more strategic alliances, partnerships, and mergers and acquisition activities across industries.


[Read More ...]

George Scorsis

October 31, 2019
 

As Canada’s marijuana market enters the next phase of its evolution, serial cannabis entrepreneur Chuck Rifici expects to see a stratification of businesses that have the products consumers demand – and those that lack such merchandise. “We really started the beginning of the brand race, where the consumers are going to start seeing different types

Canada’s cannabis market ‘comes down to execution’: Q&A with marijuana entrepreneur Chuck Rifici is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

October 30, 2019
 

Hundreds of thousands of dollars of glass jars and other packaging were seized in Washington state by federal customs agents, according to several licensed marijuana businesses. The seizures, in Tacoma, Washington, raise concerns that state-lawful cannabis businesses are being unfairly targeted for importing what they believe are legal goods. The recent action was reported by

Customs seizes glassware bound for Washington state’s legal cannabis markets is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

October 30, 2019
 

More confusion was added to the mix in Los Angeles this week over the city’s latest marijuana business licensing round after City Council President Herb Wesson called for the process to be redone, thus throwing into doubt the fate of 100 highly coveted cannabis retail licenses in the largest MJ market in the world. Some

L.A. Council president requests redo of retail marijuana licensing round, sending shockwaves through market is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

October 30, 2019
 

Canada’s largest cannabis companies are urging Ontario Premier Doug Ford to significantly increase the number of recreational marijuana stores, noting that the province’s retail footprint is “severely challenging” their ability to invest in the new industry. In an open letter to Ford, the Cannabis Council of Canada said there is an ample supply of marijuana

Cannabis Council urges Ontario to ramp up number of adult-use stores, citing ‘ample’ marijuana supplies is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 29, 2019
 

usda hemp rules

Today, the U.S. Department of Agriculture (“USDA”) released its interim hemp rules. This is a major step in the full implementation of the 2018 Farm Bill. These rules are not final but they will be effective as soon as they are published in the Federal Register. Stakeholders will have 60 days to submit comments on the interim hemp rules.

Expect to see additional analysis of these rules on this blog in the coming days. For now, we’ve highlighted some of the main points that stuck out to us.

State and Tribal Plans. The 2018 Farm Bill requires states and Indian Tribes to submit hemp cultivation plans to the USDA. The interim hemp rules require that these plans include a practice to collect, maintain and report information on hemp cultivators, the land where hemp is produced, and the status and number of licenses issued. Plans must include a procedure for testing hemp within 15 days of the anticipated harvest. Plans must also ensure that samples are representative of an entire hemp lot and the state or tribal agency charged with testing must have unrestricted access to all land, building, and structures used for the cultivation, handling, and storage of hemp. Hemp producers may not harvest before samples are taken. Hemp that tests above 0.3% THC is deemed a “non-compliant cannabis plant” and a state or Tribal plan must cover the destruction of such material. Non-compliant cannabis plants must also be reported to USDA, along with other information on hemp producers and production generally. States and Tribes must also establish lab standards for testing hemp.

The USDA will review state and Tribal plans within 60 days of receipt. States and Tribes can submit amended plans in the event that the USDA does not approve of the initial submission or if the state or Tribe alters a previously approved plan. The USDA will, from time-to-time, audit state and Tribal plans.

USDA Licensing. If a state or Tribal plan is not approved, would-be hemp producers can grow hemp in that state or Tribal area under a USDA hemp license, so long as “the production of hemp is not otherwise prohibited by the State or Indian Tribe.”

The USDA will issue hemp producer licenses. Applicants can apply 30 days after the rules are published in the Federal Register. After that, the USDA will accept applications between August 1 and October 31 each year. Applicants must submit their contact information and a criminal history report. Remember that a felony conviction, at either the state or federal level, results in a 10-year ban from participating in the legal hemp industry, unless a person was lawfully growing hemp under the 2014 Farm Bill before December 20, 2018.

USDA license will be valid until December 31st three years after the year the licensed was issued. Licenses cannot be sold, assigned, transferred, pledged or otherwise disposed of. An application is required for each location where hemp is grown. USDA licensees must submit tests within 15 days of harvest to the USDA or to a state agency, federal agency, or a person approved by the USDA to accept tests. Non-compliant plant material must be destroyed. USDA licensees will be subject to inspections and must maintain records relating to hemp.

Total THC Testing.  The interim hemp rules also cover THC testing, which was a point of concern in the lead up to theses rules being released. The interim hemp rules state that:

 A State or Tribal plan must include a procedure for testing that is able to accurately identify whether the sample contains a delta-9 tetrahydrocannabinol content concentration level that exceeds the acceptable hemp THC level. The procedure must include a validated testing methodology that uses postdecarboxylation or other similarly reliable methods. The testing methodology must consider the potential conversion of delta-9 tetrahydrocannabinolic acid (THC-A) in hemp into THC and the test result measures total available THC derived from the sum of the THC and THC-A content. Testing methodologies meeting these requirements include, but are not limited to, gas or liquid chromatography with detection. The total THC concentration level shall be determined and reported on a dry weight basis.

This appears to require Total THC testing, which includes THC-A, and as has been implemented in Oregon.  Laboratories who test hemp will also report their “measurement of uncertainty” or “MU.” The USDA provides additional context on this concept:

The definition of “acceptable hemp THC level” explains how to interpret test results with the measurement of uncertainty with an example. The application of the measurement of uncertainty to the reported delta-9 tetrahydrocannabinol content concentration level on a dry weight basis produces a distribution, or range. If 0.3% or less is within the distribution or range, then the sample will be considered to be hemp for the purpose of compliance with the requirements of State, Tribal, or USDA hemp plans. For example, if a laboratory reports a result as 0.35% with a measurement of uncertainty of +/- 0.06, the distribution or range is 0.29% to 0.41%. Because 0.3% is within that distribution or range, the sample, and the lot it represents, is considered hemp for the purpose of compliance with the requirements of State, Tribal, or USDA hemp plans. However, if the measurement of uncertainty for that sample was 0.02%, the distribution or range is 0.33% to 0.37%. Because 0.3% or less is not within that distribution or range, the sample is not considered hemp for the purpose of plan compliance, and the lot it represents will be subject to disposal. Thus the “acceptable hemp THC level” is the application of the measurement of uncertainty to the reported delta-9 tetrahydrocannabinol content concentration level on a dry weight basis producing a distribution or range that includes 0.3% or less. As such, the regulatory definition of “acceptable hemp THC level” describes how State, Tribal, and USDA plans must account for uncertainty in test results in their treatment of cannabis.

Labs that test cannabis for THC levels must be registered with the DEA. The USDA is considering a fee-for-service that would allow labs to seek approval with the USDA for THC-testing.

Interstate Transport. The interim rules prohibit states or Tribes from “prohibiting the transportation or shipment of hemp or hemp products produced under a State or Tribal plan,” a license issued by the USDA, or “under 7 U.S.C. 5940[.]” What is 7 U.S.C. 5940? It’s the codification of the  2014 Farm Bill’s industrial hemp provisions. That means that states (looking at you Idaho) can not seize hemp produced under the 2014 Farm Bill, so long as it’s done in compliance with state law or cultivated by an institution of higher education.

Bottom line. We’ve just begun to scratch the surface. These interim hemp rules also outline hemp violations, the appeal process for hemp licensing, and touch on the interplay with the Controlled Substances Act. More than anything else, the USDA’s release of these rules means that we are finally headed towards full implementation of the 2018 Farm Bill. We expect the USDA to be inundated with state and Tribal hemp plans and applications for USDA hemp production licenses over the next few weeks, and then again early next year after many state legislature reconvene. We’ll keep an eye out for developments and suggest you do the same.


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George Scorsis

October 29, 2019
 

The Missouri Medical Cannabis Trade Association wants the state’s health officials to issue strict vaping regulations. The association, in a letter to the Department of Health and Senior Services, asked for rules on vaping additives, testing and labeling before legal medical marijuana sales begin in Missouri in 2020, according to the St. Louis Post-Dispatch. Nationwide,

Missouri cannabis group seeks vape rules is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 28, 2019
 

An African-American entrepreneur is offering $250,000 in loans with either zero or a low interest rate to 100 social equity applicants for marijuana business licenses in Illinois in hopes of getting more minorities into the industry. Good Tree Capital founder Seke Ballard – who already is in the business of handing out loans to cannabis

Entrepreneur offers $250,000 in loans for Illinois social equity cannabis applications is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

October 28, 2019
 

Citing “unprecedented” pressure from companies trying to influence Mexico’s cannabis legislation, voting on a bill to completely legalize marijuana – including its recreational use – will be delayed, according to media reports. Ricardo Monreal, president of the Senate’s Political Coordination Board (Jucopo) – a governing body of the chamber – told Milenio the bill “won’t be voted on this

Mexico to miss deadline to legalize marijuana, including recreational use is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

October 28, 2019
 

The vaping health crisis apparently has been good for the marijuana edibles sector, a sign that consumers are funneling more money into infused products instead of vaporizers. Since the first vape-related death was reported in August, retail sales of edibles have climbed steadily in four states while those of vaping products have declined, though the

Sales of marijuana edibles up in at least four states in wake of vape health scare is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 27, 2019
 

maryland hemp cannabis

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA.

This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday, we summarize a new state in alphabetical order. Today, we turn to Maryland.

Maryland’s Industrial Hemp Pilot Program opened a little more than a year ago. In line with the 2014 Farm Bill, the purpose of the program was and is to authorize and facilitate research of industrial hemp and any aspect of cultivating, manufacturing, transporting, marketing, or selling industrial hemp for agricultural, industrial, or commercial purposes. The Maryland Department of Agriculture (“MDA”) or an institution of higher education that submits an application to the MDA may cultivate, manufacture, transport, market, or sell industrial hemp if the hemp is cultivated to further agricultural or academic research—notably, an undefined term in Maryland’s law.

Last year, MDA issued hemp regulations to govern its program. Per MDA guidance, farmers can partner with institutions of higher education, but otherwise, general commercial cultivation is prohibited. MDA also notes that it does not have jurisdiction over hemp processing or sale.

Earlier this year, Maryland’s governor approved of HB-1123, which includes specific provisions for hemp production and requires the MDA to create a plan for monitoring and regulating hemp production in the state.

That said, Maryland isn’t as open to Hemp CBD. The Maryland Department of Health sort of follows the FDA’s approach and holds that foods and beverages containing Hemp CBD are adulterated and can’t be sold in Maryland (sorry, no Maryland Hemp CBD crab cakes). The state has not really addressed many other types of products, but it could change its position to include Hemp CBD products such as vapes, cosmetics, or topicals (apparently, the state will try ban flavored vapes in the future).

Stay tuned to the Canna Law Blog for developments on hemp and Hemp CBD in Maryland and other states across the country. For previous coverage in this series, check out the links below:


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George Scorsis

October 26, 2019
 

(This is an abridged version of a story that appears in the October issue of Marijuana Business Magazine.) The perks beyond salary that a marijuana business can offer prospective employees could be the difference between landing the workforce needed to scale up the company or losing that talent to other firms in the space. The potential for

Salary isn’t the only way to lure – and keep – quality cannabis employees is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

October 25, 2019
 
Trichome Financial Corp. & StoneCastle Investment Mgmt. - Midas Letter RAW 279
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

October 25, 2019
 

Two years after Gibraltar legalized CBD, the tiny British Overseas Territory located on Spain’s south coast widened the range of cannabinoids available in the local market. The move could create limited opportunities for medical marijuana companies looking for an entry point into the European market, Brexit notwithstanding. “The new legislation covers a wider range of products

Gibraltar expands medical cannabis market beyond just CBD is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

October 25, 2019
 

Mexico prepares to become the most populous nation in the world to legalize adult-use marijuana, vape company Pax cuts 25% of its workforce, governors of Northeast states consider working together to legalize recreational MJ – and more of the week’s top cannabis business news. Mexico prepares to legalize recreational cannabis Mexico’s Senate is ready to receive a

Mexico moves toward recreational cannabis legalization, vape firm Pax cuts jobs, Northeast govs huddle & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

October 24, 2019
 

The U.S. Tax Court again ruled that Section 280E of the Internal Revenue Service tax code is constitutional and cannabis companies aren’t entitled to common business deductions. The ruling centered on a plea from Northern California Small Business Assistants, which received a tax bill and penalty from the IRS for $1.5 million for the 2012 tax

US Tax Court rules cannabis deductions are not allowed is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

October 24, 2019
 

Using RSHO™ CBD Liquids, it is easy to make your own CBD infused eggnog in your kitchen at home. 

Feeling festive? A traditional holiday favorite gets a calming revamp with this DIY, from-scratch CBD eggnog recipe. Do something different for your next holiday get together or dinner party by making your own tasty CBD eggnog using fresh ingredients and delicious spices. This easy to follow recipe uses RSHO™ CBD liquids to quickly add CBD to each mug.

How to Make CBD Eggnog

With the holiday season around the corner, make your daily CBD supplement more festive by treating yourself to a foamy cup of virgin CBD infused eggnog. This recipe makes about 16 servings, ideal for serving at parties. Any leftovers can be stored in the fridge to enjoy this seasonal delight throughout the week.

Ingredients:

  • 8 eggs, separated
  • 1/3 cup sugar
  • ½ teaspoon salt
  • 4 cups whole milk
  • 2 cups heavy whipping cream
  • 1 teaspoon freshly grated nutmeg or cinnamon, plus more for garnish
  • 1 teaspoon vanilla extract
  • ¾ teaspoon RSHO™ Liquid per mug as desired

Instructions:

  1. Whisk together the egg yolks, sugar, and salt until smooth and light in color
  2. Add in the whole milk, whipping cream, nutmeg, and vanilla. Whisk further until smooth.
  3. In the bowl of a stand mixer fitted with the whisk attachment or using a hand mixer, whip the egg whites until soft peaks form – about four minutes.
  4. Fold the whipped egg whites into the cream mixture until smooth.
  5. Chill until cold. Add a single ¾ teaspoon serving of RSHO™ Liquid to each mug and stir. Serve with more freshly grated nutmeg on top and garnish with cinnamon sticks.

Be sure to use or discard your homemade eggnog within a week of making it.

Why CBD Edibles

Infusing edibles with CBD is a great way to add the benefits of hemp derived CBD into your diet. When CBD is taken with food, the body is able to more efficiently absorb the CBD and other cannabinoids before transporting throughout the body. 

Here is more about why you should take CBD oil with food

There are literally dozens and dozens of possible recipes featuring CBD oil tinctures and liquids. Use our CBD recipes to stimulate your creative cooking juices. Keep in mind that it isn’t suggested that you cook with the oil, as doing so can diminish potency.

You can get RSHO™ Liquids in our Green, Blue, and Gold Labels, giving you the choice between our non-decarboxylated, decarboxylated, and filtered options. You can also opt for our zero-THC RSHO-X™. Available in 4 oz. bottles, RSHO™ Liquids provide 31 mg of CBD per serving.

Learn More

Read more about the benefits of CBD and other CBD topics now on our CBD Oil Education page. 


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george scorsis

October 24, 2019
 

Troubled Canadian cannabis company Hexo, which this week postponed the release of financial results amid lower revenue expectations, said it is cutting about 200 jobs across multiple locations and divisions. The cuts represent approximately 20% of the Quebec-based company’s workforce and include the elimination of some executive positions and the departures of Arno Groll, chief

Hexo slashes workforce by 200 amid lower marijuana revenue expectations is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional info, George Scorsis

October 24, 2019
 

Innovative Industrial Properties, a real estate investment trust (REIT) that focuses on buying and leasing warehouses in the marijuana space, paid $17 million to Trulieve Cannabis for a five-building cultivation facility in Florida. Trulieve will lease back the 150,000-square-foot marijuana cultivation centers in Quincy, Florida, from IIP. The initial lease is for 10 years, with

Cannabis giant Trulieve signs $17 million Florida warehouse leaseback deal is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

October 23, 2019
 

An Alberta-based cannabis producer is weeks away from flipping the switch on what it says will be Canada’s largest array of rooftop solar panels. Freedom Cannabis expects to activate the 1,830-kilowatt array at its facility 20 kilometers (12 miles) west of Edmonton in November. The initiative is, in part, an answer to the growing amount

Alberta cannabis producer readies Canada’s largest rooftop solar array is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

October 23, 2019
 

california residential cannabis leasing

Recently, Governor Newsom signed 18 bills aimed to combat the housing crisis in California, including the Tenant Protection Act of 2019.

When I spoke at the California Association of Realtor’s Legal Affairs conference a couple of weeks ago, I was asked whether cannabis activity could be considered grounds for “just cause” eviction under the new Tenant Protection Act.  While there is nothing specific to cannabis in the Tenant Protection Act, and there is not yet any case law interpreting the new statute, landlords fearful of having their properties overrun by pot-smoking hippies can put their minds at ease. Hippies are one thing, but cultivation and processing operations on private residential property are quite another. Read on for more.

The Tenant Protection Act of 2019 Implements Statewide Rent Control and Requires Just Cause to Terminate a Tenancy

Rent Control

Subject to a number of exceptions, new Civil Code section 1947.12 prohibits an owner of residential real property from increasing the rental rate by more than 5% plus the percentage change in the cost of living, or 10%, whichever is lower, over the course of a 12-month period.

Just Cause Termination

To avoid a surge in lease terminations due to the new cap on rent increases, subject to some exceptions, the State now requires “just cause” to terminate a residential lease after a tenant has continuously occupied a residential property for 12 months. (Civil Code 1946.2).

“Just cause” may be either “at-fault” or “no-fault.” At-fault just cause includes:

  1. Default in payment of rent.
  2. A breach of a material term of the lease, including a violation of a provision of the lease after being issued a written notice to correct the violation.
  3. Maintaining, committing, or permitting the maintenance or commission of a nuisance.
  4. Committing waste.
  5. The tenant had a written lease that terminated on or after January 1, 2020, and after a written request or demand from the owner, the tenant has refused to execute a written extension or renewal of the lease for an additional term of similar duration with similar provisions, provided that those terms do not violate this section or any other provision of law.
  6. Criminal activity by the tenant on the residential real property, or any criminal activity or criminal threat on or off the property that is directed at any owner or agent of the owner of the residential real property.
  7. Assigning or subletting the premises in violation of the tenant’s lease.
  8. The tenant’s refusal to allow the owner to enter the residential real property.
  9. Using the premises for an unlawful purpose.
  10. The employee, agent, or licensee’s failure to vacate after their termination as an employee, agent, or a licensee.
  11. When the tenant fails to deliver possession of the residential real property after providing the owner written notice as provided in Section 1946 of the tenant’s intention to terminate the hiring of the real property, or makes a written offer to surrender that is accepted in writing by the landlord, but fails to deliver possession at the time specified in that written notice.

No-fault just cause includes:

  1. Intent to occupy the property by the owner or their spouse, domestic partner, children, grandchildren, parents, or grandparents. For leases entered into on or after July 1, 2020, this applies only if the tenant agrees in writing to the termination, or if a provision of the lease allows the owner to terminate the lease if the owner, or their spouse, domestic partner, children, grandchildren, parents, or grandparents, unilaterally decides to occupy the residential real property.
  2. Withdrawal of the residential real property from the rental market.
  3. The owner complying with any of the following:
    • An order issued by a government agency or court relating to habitability that necessitates vacating the residential real property.
    • An order issued by a government agency or court to vacate the residential real property.
    • A local ordinance that necessitates vacating the residential real property.
  4. Intent to demolish or to substantially remodel the residential real property.

Landlords wishing to exercise a “no-fault” termination must either waive payment of the last month’s rent or pay for tenant relocation.

There is a long list of exceptions to above requirements. Further, if a local ordinance requiring “just cause” termination exists in the jurisdiction where the property is located, then the local ordinance controls.

Owners of single family residences that are “alienable separate from the title to any other dwelling unit” (AKA a single home on a lot) are exempt from the new requirements so long as (1) the owner is not a REIT, a corporation, or an LLC in which at least one member is a corporation, AND (2) the tenants have been given written notice that the property is exempt from the just cause and rental cap requirements.

Cannabis and Just Cause

Non-exempt landlords want to know if cannabis activity constitutes “just cause” for termination under the Tenant Protection Act.

Health & Saf. Code, § 11362.1(a) provides that

“it shall be lawful under state and local law, and shall not be a violation of state or local law, for persons 21 years of age or older to:
(1) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than 28.5 grams of cannabis not in the form of concentrated cannabis;
(2) Possess, process, transport, purchase, obtain, or give away to persons 21 years of age or older without any compensation whatsoever, not more than eight grams of cannabis in the form of concentrated cannabis, including as contained in cannabis products;
(3) Possess, plant, cultivate, harvest, dry, or process not more than six living cannabis plants and possess the cannabis produced by the plants;
(4) Smoke or ingest cannabis or cannabis products; and
(5) Possess, transport, purchase, obtain, use, manufacture, or give away cannabis accessories to persons 21 years of age or older without any compensation whatsoever.”

However,

“Section 11362.1 does not amend, repeal, affect, restrict, or preempt the ability of an individual or private entity to prohibit or restrict any of the actions or conduct otherwise permitted under Section 11362.1 on the individual’s or entity’s privately owned property.” Health & Saf. Code, § 11362.45(h).

Accordingly, while the cannabis activities described in Health & Safety Code section 11362.1 are not considered “criminal activity” under California law, property owners are well within their rights to prohibit tenants from engaging in any cannabis activity (including smoking, cultivating, and processing) on privately owned property.  Therefore, landlords concerned about cannabis activity should prohibit such activity in their leases, and provide written notice to correct any violation. Landlords should then look to Civil Code section 1946.2(b)(1)(B) (breach of material term) and/or 1946.2(b)(1)(C) (nuisance – if the appropriate elements are present) to justify termination for cannabis-related activity.


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George Scorsis website

October 22, 2019
 

Rhode Island’s governor is asking a judge to declare the Legislature’s control over new medical marijuana and hemp regulations unconstitutional. Gov. Gina Raimondo said Tuesday she’s suing in Superior Court because the Democratic-controlled Legislature, in provisions of the state budget, violated the constitutional guarantee of separation of powers by giving itself the right to veto,

Seeking fairness for medical cannabis firms, RI gov sues over control of state’s industry is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

October 22, 2019
 
KoreConX & Colin Fisher, StableView Asset Mgmt. - Midas Letter RAW 276
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

October 22, 2019
 

Sales of recreational marijuana across Canada rose 19% in August to 127 million Canadian dollars ($97 million) from the previous month, buoyed by new store openings in Western Canada. British Columbia’s adult-use market is starting to hit its stride after getting off to an extremely slow start, according to new Statistics Canada data. Receipts of

British Columbia’s adult-use cannabis program hits stride as sales double is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 22, 2019
 

Terra Carver has lived in California’s Humboldt County nearly her entire life. Since January 2017, she’s served as executive director of the Humboldt County Growers Alliance (HCGA), a coalition she co-founded with the aim of helping longtime local marijuana farmers transition successfully into the new legal market. The first year of California’s legal marijuana market

Prospects brighten for cannabis farmers in California’s Emerald Triangle: Q&A with Humboldt Alliance’s Terra Carver is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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more info, George Scorsis

October 22, 2019
 

California-based Pax Labs, one of the leading vape pen companies in the cannabis industry, disclosed Monday it laid off 65 workers, or 25% of its workforce, after missing its revenue projections. The layoffs come amid a health crisis that has shaken the vaporizing industry. The San Francisco company – which originally had ties to the

Cannabis vaporizer company Pax Labs cuts 25% of workers after missing revenue projections is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

additional information, George Scorsis

October 21, 2019
 

With recipes like our CBD pasta recipe, it is easier than ever to make sure your whole family gets their daily CBD. 

Here is an exciting way to boost the nutritional content of your family’s dinner while providing your loved ones with the balancing effects of CBD. Our from scratch penne rosa recipe includes plenty of fresh ingredients to further boost its nutrient content. This delicious CBD pasta recipe is sure to please, and you can feel good about helping your family do something good for their well being. 

CBD Pasta – Infused Penne Rosa Recipe

Nothing brings a family together like preparing and sharing a home cooked dinner together. This from scratch recipe uses fresh garden ingredients like garlic, mushrooms, tomatoes, spinach, and more for a wholesome, naturally nourishing meal. 

For a healthier take on a popular comfort food, this penne rosa CBD pasta dish is quick and easy to whip up on a weeknight. This recipe makes 6 servings, enough for the whole family. Here is what you will need. 

Ingredients:

  • 1 tablespoon olive oil
  • 4 cloves garlic, minced
  • 1 pinch crushed red pepper flakes
  • 8 ounces button mushrooms, sliced
  • 2 medium tomatoes, chopped
  • Salt and pepper, to taste
  • 4 cups fresh spinach
  • ½ cup marinara sauce
  • 12 ounces whole wheat penne, cooked
  • 1/3 cup plain Greek yogurt
  • ¼ cup grated parmesan cheese
  • 6 teaspoons RSHO™ Liquid (¾ teaspoon per serving) as desired

Instructions:

  1. In a large skillet with lid, heat olive oil over medium-low heat.
  2. Add in garlic and red pepper flakes. Cook until garlic softens – about 2 minutes.
  3. Stir in mushrooms, tomatoes, salt and pepper. Cook until mushrooms start to release their water – about 5 minutes.
  4. Add in spinach and cover skillet. Let spinach wilt for 2 minutes.
  5. Remove lid and stir in the pasta sauce. Remove the skillet from the heat, and let rest for 5 minutes.
  6. While the vegetable sauce mix cools, use a small bowl to mix RSHO™ Liquid into the Greek Yogurt. Stir thoroughly.
  7. Stir in Greek yogurt-CBD oil mix into the sauce, and then add the penne. Toss until pasta and vegetables are coated.
  8. Divide into pasta bowls and top with grated parmesan cheese before serving.

Optional: You can add a protein to this recipe, such as Italian sausage, meatballs, grilled chicken, etc. by preparing protein separately and then tossing it with the pasta and sauce in step 7.

Why CBD Edibles

Infusing edibles with CBD is a great way to add the benefits of hemp derived CBD into your diet. When CBD is taken with food, the body is able to more efficiently absorb the CBD and other cannabinoids before transporting throughout the body. 

Here is more about why you should take CBD oil with food. 

There are literally dozens and dozens of possible recipes featuring CBD oil tinctures and liquids. Use our CBD recipes to stimulate your creative cooking juices. Keep in mind that it isn’t suggested that you cook with the oil, as doing so can diminish potency.

You can get RSHO™ Liquids in our Green, Blue, and Gold Labels, giving you the choice between our non-decarboxylated, decarboxylated, and filtered options. You can also opt for our zero-THC RSHO-X™. Available in 4 oz. bottles, RSHO™ Liquids provide 31 mg of CBD per serving.

Learn More

Read more about the benefits of CBD and other CBD topics now on our CBD Oil Education page. 


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additional information, George Scorsis

October 21, 2019
 

Infuse wellness into everyone’s favorite game time or late night snack with this homemade DIY CBD guacamole. 

Whether you are hosting friends or curling up on the couch to watch a movie, CBD guacamole is a great way to relax and enjoy a delicious snack boosted with the wellness properties of CBD. 

Our guacamole recipe takes advantage of Real Scientific Hemp Oil™ CBD Liquids. RSHO™ liquids blend pure hemp oil into medium-chain triglyceride (MCT) oil to provide the balancing properties of CBD in a versatile liquid form that can be mixed into almost any prepared food, including guacamole. 

CBD Guacamole Recipe

This recipe takes only 15-20 minutes to prepare and makes enough for 4 servings. You can change these ingredients according to your tastes or any dietary restrictions. You can also adjust the amount of CBD up or down by adding more or less RSHO™ liquid. 

Now let’s get ready to make some CBD guacamole. Here is what you will need.

Ingredients:

  • 3 avocados, peeled, pitted, and mashed
  • 1 lime, juiced
  • 1 teaspoon salt
  • ½ cup diced onion
  • 3 tablespoon chopped fresh cilantro
  • 2 roma tomatoes
  • 1 teaspoon minced garlic
  • 1 pinch cayenne pepper, optional
  • 3 teaspoons RSHO™ Liquid (¾ teaspoon per serving) as desired

Instructions:

  1. In a medium bowl, mash together the avocados, lime juice, RSHO™ Liquid, and salt.
  2. Mix in onion, cilantro, tomatoes, and garlic.
  3. Stir in cayenne pepper.
  4. Refrigerate 1 hour before serving.

Why CBD Edibles

Infusing edibles with CBD is a great way to add the benefits of hemp derived CBD into your diet. When CBD is taken with food, the body is able to more efficiently absorb the CBD and other cannabinoids before transporting throughout the body. 

Here is more about why you should take CBD oil with food

There are literally dozens and dozens of possible recipes featuring CBD oil tinctures and liquids. Use our CBD recipes to stimulate your creative cooking juices. Keep in mind that it isn’t suggested that you cook with the oil, as doing so can diminish potency.

You can get RSHO™ Liquids in our Green, Blue, and Gold Labels, giving you the choice between our non-decarboxylated, decarboxylated, and filtered options. You can also opt for our zero-THC RSHO-X™. Available in 4 oz. bottles, RSHO™ Liquids provide 31 mg of CBD per serving.

Learn More

Read more about the benefits of CBD and other CBD topics now on our CBD Oil Education page. 


[Read More ...]

George Scorsis

October 21, 2019
 

Nevada cannabis regulators suspended the license of a Reno cultivator, just days after the beginning of an investigation into the industry by a governor-appointed, multiagency task force. The cultivator, Helio, was notified of the suspension Friday, according to the Reno Gazette Journal. The action comes as a task force has been making unannounced spot inspections of several

Nevada suspends Reno marijuana grower’s license is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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more information, George Scorsis

October 21, 2019
 

Maine regulators adopted a symbol that will be required on marijuana products sold for recreational use, starting next year. The Maine Office of Marijuana Policy partnered with the Massachusetts Cannabis Control Commission to unveil a shared universal symbol for cannabis and marijuana products. The symbol, already in use in Massachusetts, features a red triangle with

Maine requiring cannabis label for recreational products is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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addiitional information, George Scorsis

October 21, 2019
 
Cannabis NewsOctober 21 News - Canopy Growth, Indiva, Nutritional High, Trulieve, Harorside, 4Front
Canopy Growth Corporation Indiva Limited Nutritional High International Inc Trulieve Cannabis Corp Harborside Inc 4Front Ventures Corp ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

October 19, 2019
 

Cannabis growers need to maintain solid cultivation practices through the entire harvest process to ensure the tough job of raising a good crop doesn't go for naught.

There are tricks to getting a cannabis crop safely to harvest is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 18, 2019
 

A Nevada task force investigating possible corruption in the marijuana industry already has conducted unannounced spot inspections at several testing laboratories. The inspections are being done, the Las Vegas Journal-Review reported, after allegations emerged that test results had been manipulated, allowing products with unacceptable levels of mold, yeast and other microbials to be sold to

Nevada inspecting cannabis testing labs in corruption probe is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

October 18, 2019
 
Halo Labs (NEO:HALO), StoneCastle Cannabis Update & Todd Shapiro - Midas Letter RAW 274
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

george scorsis

October 18, 2019
 

Everything you need to know to choose your perfect first vape pen.

A clean, flavorful method of consuming vape liquids, botanical waxes, and dry herbs wherever you go, vape pens are a popular choice among Medical Marijuana, Inc. customers because they are simple to use, low cost, and ultra portable. But how do you choose the right one? And what makes a great beginner vape pen?

Vape pens like those in our store have a number of different options – like type of material they vape, strength of the battery, type of heating element, button or buttonless activation, and more. Here we help you recognize what to look for when shopping for a beginner vape pen and recommend our best vapes for first time vapers, but first, let’s look at the basics of vaping.

What is Vaping?

Vaping is a common alternative to smoking that has grown in popularity in recent years as more and more users begin to discover the many benefits of vaping.

Vaporizers like vape pens work by heating your vape material – such as dry flower, wax, oil, and eliquid – to their vaporization points, but below their combustion points, to produce a clean, flavorful vapor that can be inhaled, absorbing the active ingredients from the vapor through your lungs.

Best beginner vape pen

Why Should I Vape?

Consumers choose to start vaping because it offers them a number of advantages over smoking, as well as other methods of consumption.

Since vaporizers don’t burn your vape material, vaping helps users avoid the toxins and carcinogens associated with smoking, reducing smoking’s negative health concerns. There is also no foul smoke smell to linger on clothing, hair, and furniture. Instead, vape pens create a clean vapor with a mild scent that dissipates quickly.

Vaping is also a fast and effective way to capture the benefits of your vape material. When you inhale vapor from your vape pen, the active ingredients in the vapor are absorbed by the lungs. Whether you’re a connoisseur or a vaping beginner, this is the fastest and most effective way to consume botanical extracts and dry flower, with effects starting nearly instantaneously.

How Do Vape Pens Work?

The elements of a vape pen kit

Vape pens use battery power to heat dry herb or botanical extracts in the form of wax, oil, or liquid to their vaporization point, creating clean, flavorful vapor that users can inhale. To do this, vape pens, including beginner vape pens, have three important parts: the battery, the atomizer, and the cartridge or tank.

First, we will look at its battery. Vaporizer batteries come in a variety of shapes and sizes, from pencil thin, to short and boxy, and even fatter models that support hotter temperatures and a longer time between charges. Batteries also come in a choice of voltages, and some even allow you to change the voltage (and the resulting heat produced) to fine tune your vaping experience.

Your battery will connect to the vape pen’s atomizer or heating element. The atomizer is responsible for converting the vape pen’s electrical power from the battery into heat. This allows you to heat your vape material in your vaporizer, whether it is dry flower, vape juice, or other botanical oil extracts.

While most vape pens use conduction heat, heating your dry herb or oil of a hot surface, some other vaporizers make use of convection heating that moves heat evenly over vape material. Convection heating is most popular in vaping dry flower. These heating elements (often called atomizers) come in a variety of styles and materials, such as metal coils or ceramic surfaces.

Finally, vape pens have a section that holds your vape material. In some cases, especially in disposable vapes, this is called the cartridge, or pod. Your vape cartridge will often also contain the atomizer as a single unit. While this is common in disposable vape cartridges, it is also possible to buy this style of cartridge in a refillable model. Other times, the atomizer will be a separate piece that attaches to the vape pen’s tank or chamber (the piece that holds your vape material).

Using your vape pen

Once your vape pen parts are assembled and filled with your vape material, you are ready to get started. There are two ways vape pens are activated. Some pens are what is called “autodraw”. This means that all you need to do is take a draw or puff and the pen will heat up creating inhalable vapor. The other style is button activated, meaning you need to hold down a button to activate your pen’s heating element. In either case, you will inhale the vapor from the vape pen’s mouthpiece.

Although many beginners prefer autodraw because it removes a step and makes it easier to take quick puffs, it comes down to a matter of preference when choosing autodraw versus button-activated. Autodraw beginner vape pens also won’t be accidentally turned on when kept in a pocket or purse like a button-activated pen might.

Now that you know the basics and some important terms, it is time to start looking for your perfect starter vape.

best vape mod beginner

Tabletop Vaporizers vs Vape Pens

When selecting your first vaporizer, you will have to choose between a larger tabletop vaporizer and more portable vape pens. Many beginners choose vape pens and other portable vapes for reasons like their small size, lower cost, and ease of use.

Consumers who are new to vaping botanical waxes or dry flower usually prefer not to invest in a bulky tabletop vaporizer with advanced features they may not use. Instead, many beginner vapers choose smaller vape pens because they offer a simplified vaping experience with features like preset temperatures and buttonless activation that make it easy to pick them up and get started vaping right away.

The smaller size of vape pens vs tabletop vaporizers is also a popular selling point for this type of vape. Beginner vape pens, living up to their name, are often the size of a highlighter pen or even smaller. This minimalist design means they can be used discreetly wherever you go and can easily slip into your pocket or bag between uses.

Because they offer fewer advanced features and use smaller hardware, beginner vaporizer pens usually have a lower price tag than tabletop vapes. The tabletop vaporizers in our store start at $119.99 and range up to $500. In comparison, you can get started vaping with a vape pen for just $19.99, and the most expensive vape pen in our store is $99.99.

Seeing these advantages for first-time vapers, many beginners choose a vape pen when just starting out.

Best Vape Pens for Beginners

If you are just starting out using a vape pen, it may be helpful to know which vapes best fit your individual needs, including size, cost, user features, and type of vape material with which each vape pen is compatible. This can make choosing the best beginner vape pen easier.

There are many choices in beginner vape pens on the market, and even just in the Medical Marijuana, Inc. store, there are dozens of vape pens to choose from. To help you narrow your search, here are the best starter vapes in each category.

Best Starter Oil and Liquid Vape Pen: KandyPens Slim

Best beginner vape pen for CBD oil and liquid : KandyPens Slim

The first choice for many consumers looking for a straight forward, ultraportable, and easy to use oil and eliquid vape pen, the KandyPens Slim is a common starter vape for beginners. The sleek battery is the same diameter as a standard ink pen. Buttonless autodraw activation makes use incredibly easy – just pull air in through the mouthpiece and inhale the vapor. There is no button to fumble with. KandyPens Slim uses the near industry standard 510 threading to connect to the included atomizer cartridge, which can be filled with your choice of vape oil or eliquid. If you want to vape oils or liquids the KandyPens Slim is one of the best vape pens for beginners.

Already own or planning to buy a prefilled cartridge? Then you can purchase just the Slim battery.

Best Beginner Dry Herb Vape Pen: Atmos Jump

Best beginner dry herb vape pen: Atmos Jump

Dry herb vapes make it possible to consume the active ingredients in your favorite dry herbs without the dangers associated with smoking, the traditional method for using dry herbs. However, finding a truly portable dry herb vape that was capable of thoroughly vaporizing your dry flower without combusting while still being beginner friendly used to be a challenge. Enter the Atmos Jump.

The Atmos Jump combines the incredible portability of a small vape pen with the effectiveness of a much larger vaporizer. That is largely due to the vape pen’s design, which protects your dry flower from the heating coils and allows more thorough heating without burning. An optimized single temperature also protects your dry herbs from combusting, while single button functionality simplifies use.

Visit our online store to buy Atmos Jump.

Best Wax Extract Vape Pen: KandyPens Galaxy

Best wax extract starter vape pen: KandyPens Galaxy

If your preferred vape material is waxes and similar botanical extracts, then the KandyPens Galaxy is a strong choice for a beginner vape pen. Dual quartz crystal heating coils provide even heat for full vaporization and no cold spots in the atomizer.

The KandyPens Galaxy has three variable heat settings, allowing you to tailor your vape session. Choose the lower setting for a more flavorful vape. Use the higher setting for bigger, fuller clouds of vape. This flexibility means that the Galaxy vape pen from KandyPens works for a wide range of vaping preferences. Despite this customization, the Galaxy has single button functionality, keeping the user experience as simple as possible.

Visit our online store to buy KandyPens Galaxy.

Shop for Your Beginner Vape Pen Now

You can find these and other great beginner vaporizer pens now in the Medical Marijuana, Inc. store. If you want to learn more vaping basics, or still need help choosing a vape check out our guide to portable vaporizers, we have everything you need to get started!

The vape products and vaping advice featured in Medical Marijuana, Inc. posts are specifically for people looking to support their health with legal natural botanicals and are not created with nicotine or tobacco users in mind.


[Read More ...]

George Scorsis

October 18, 2019
 

Toronto-based DionyMed, a multistate marijuana brands operator, is under pressure after key executives stepped down amid a possible credit default. CEO Edward Fields and Mark Zinselmeier, the chief operating officer, resigned from the company, which has businesses in states including California and Nevada. DionyMed received a notice of default under an existing credit agreement demanding

CEO of DionyMed cannabis company leaves amid possible default is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

October 18, 2019
 

Massachusetts cannabis regulators have lifted the roughly five-week suspension of marijuana cultivation license holder Nova Farms, but the operation remains under investigation. The state’s Cannabis Control Commission said it withdrew the suspension order after determining that threats to public health, safety, and welfare had been mitigated. Last month, criminal charges were dismissed against Mark Rioux, who has a

Massachusetts drops suspension against marijuana cultivator is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

October 16, 2019
 

Chicago’s City Council approved a zoning ordinance that bans recreational marijuana stores from the central business district but allows them to locate in part of the popular River North area downtown. Mayor Lori Lightfoot initially had proposed a ban covering nearly all of downtown, but she recently had a change of heart that unlocks some

Chicago allows some adult-use cannabis sales downtown is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

additional information, George Scorsis

October 16, 2019
 
420Investor Alan Brochstein & Harvest Health and Recreation (CNSX:HARV) - Midas Letter RAW 272
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

addiitional information, George Scorsis

October 16, 2019
 
Harvest Health & Recreation (CNSX: HARV) on Track To Become Largest Vertically Integrated MSO in USA
Harvest Health & Recreation (CNSX:HARV) CEO, Steve White ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

October 16, 2019
 

A tax expert who spent six years as an IRS trial lawyer is sounding a new 280E alarm bell that many cannabis businesses might need to answer soon. Nick Richards, a Denver-based tax attorney who now works in the private sector with a clientele that includes marijuana firms, is calling attention to changes in IRS policy that

Former IRS attorney warns of upcoming ‘tsunami’ of marijuana-related 280E audits is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

October 15, 2019
 

Colorado regulators are finalizing rules to ban certain ingredients from marijuana vaping products, following the lead of other states with legal cannabis programs in the wake of a health crisis that has sickened more than a thousand and killed over two dozen people. At a public hearing Tuesday, Colorado’s Marijuana Enforcement Division discussed the proposed rules

Colorado proposes rules to ban additives in cannabis vape products is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

October 15, 2019
 

Recent skepticism of the cannabis sector may be overblown, especially for companies that are fully funded - as highlighted by Aphria’s latest quarterly results.

Aphria’s latest results highlight positive outlook for marijuana industry is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

October 14, 2019
 

Banks and other financial institutions are gearing up for potential massive involvement with the marijuana industry after last month’s passage of the SAFE Banking Act by the U.S. House of Representatives. While it remains unclear how the measure might fare in the Senate and if President Trump would sign it into law, the bill’s eventual passage

Big banking shows more interest in serving cannabis clients after recent SAFE Act passage by U.S. House is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

October 13, 2019
 

louisiana hemp cbd

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA.

This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday, we summarize a new state in alphabetical order. Today, we head to the bayou: Louisiana.

Louisiana lawmakers recently adopted House Bill 138 (HB 138) and  House Bill 491 (HB 491) in light of the 2018 Farm Bill. HB 138 amends Louisiana’s definition of marijuana to exclude “industrial hemp that is in the possession, custody, or control of a person who holds a license issued by the Louisiana Department of Agriculture and Forestry, or is cultivated and processed in accordance with the U.S. Agriculture Improvement Act of 2018.” In turn, HB 138 defines industrial hemp as “the plant Cannabis sativa and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids and salts of isomers, whether growing or not, with a delta-9-tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis and cultivated and processed in accordance with the U.S. Agriculture Improvement Act of 2018, or the plan submitted by the Louisiana Department of Agriculture and Forestry that is in compliance with the U.S. Department of Agriculture rules.” In Louisiana, hemp is only legal if it meets the THC concentration outlined in the 2018 Farm Bill and also was cultivated and processed legally, either in Lousiana or elsewhere.

HB 491 lays out the details of Louisiana’s hemp cultivation plan. The Louisiana Department of Agriculture and Forestry (LDAF) oversees the program. LDAF issues the following licenses:

  • Grower License – authorizes the licensee to cultivate, handle and transport industrial hemp;
  • Processor License – authorizes the licensee to handle, process and transport industrial hemp;
  • Seed Producer – authorizes the licensee to produce, transport and sell industrial hemp seed; and
  • Contract Carrier – authorizes the licensee to transport industrial hemp (required when the transporter is not the licensed grower or processor of the plant material).

LDAF has not yet begun issuing these licenses as the USDA has yet to approve any state plan, including Louisiana’s. With regards to hemp cultivation, HB 491 tracks the farm bill closely. It is worth mentioning that any person transporting or delivering hemp in Louisiana must carry a dated invoice, bill of lading, or manifest which shall include the seller and purchaser’s name and address, the specific origin and destination, and the quantity of hemp. That’s important to note for anyone traveling through Louisiana with hemp.

HB 491 also covers Hemp-CBD products. No person may process or sell (1) any part of hemp for inhalation, (2) any alcoholic beverage containing CBD, or (3) any food product or beverage containing CBD unless the FDA approves CBD as a food additive. All Hemp-CBD products must be labeled and registered in accordance with Louisiana’s  Food, Drug and Cosmetic Law (R.S. 40:601 et seq.). Hemp-CBD may not be marketed as a dietary supplement. In addition, Hemp-CBD labels must meet the following criteria and be approved by the Louisiana Department of Health:

  • Contain the following language: “This product has not been evaluated by the Food and Drug Administration and is not intended to diagnose, treat, cure, or prevent any disease.”
  • Contain no medical claim
  • Have a scannable bar code, QR code, or web address linked to a Certificate of Analysis (COA)

COAs for Hemp-CBD products in Louisiana must contain the following:

  •  The batch identification number, date received, date of completion, and the method of analysis for each test conducted.
  • Test results identifying the cannabinoid profile by percentage of dry weight, solvents, pesticides, microbials, and heavy metals.

Retailer sellers of Hemp-CBD must (1) register with the Office of Alcohol Tobacco Control (OATC) and (2) meet the above specific labeling and testing requirements. Hemp-CBD may only be sold by businesses holding a CBD Dealer Permit from OATC, which requires a location in Louisiana where products are stored and/or sold. CBD Dealer Permit applicants must also have been residents of the state of Louisiana for two years prior to applying. These provisions make the online sale of Hemp-CBD in Louisiana impractical in most cases. 

Stay tuned to the Canna Law Blog for developments on hemp and Hemp CBD in Louisana and other states across the country. For previous coverage in this series, check out the links below:


[Read More ...]

George Scorsis

October 12, 2019
 
Quebec Precious Metals (CVE:CJC) Exploration Plans for Highly-Prospective James Bay Territory
Quebec Precious Metals Corporation (TSX.V:CJC) (OTC-BB:CJCFF) CEO Normand Champigny joins Midas Letter to discuss the highly-prospective Eeyou Istchee James Bay territory in Quebec, which it describes as "the next Eleonore Mine". The Eleonore Mine is 90 kilometres from the Eleonore mine, which is one of Canada's largest gold mines producing over 350,000 ounces of gold annually. The project already has infrastructure in place to be able to explore and drill all-year round. The CEO states Quebec Precious Metals is planning on drilling at least 10,000 meters. The company have recently announced exploration plans for the first phase of the 2019 program in the James Bay territory. The program will primarily focus on advancing its flagship project Sakami and the La Pointe deposit. As of the interview date, a total of 100 diamond drill holes have intercepted the deposit.

George Scorsis

October 11, 2019
 

California-based cannabis company Bloom Farms settled a defamation lawsuit filed by Oregon’s Cura Partners for an undisclosed sum. Neither company would disclose details of the settlement of the case filed in January in Alameda County Superior Court in California, according to multiple news reports. Cura claimed in the suit that Bloom, an industry rival, had

Bloom Farms, Cura Partners settle marijuana lawsuit is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional info, George Scorsis

October 11, 2019
 

Days after Hexo's CFO resigned, the marijuana company announced a huge miss to fiscal fourth-quarter revenue and withdrew its 2020 revenue guidance.

Cannabis company Hexo’s stock craters on bad news is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

additional info, George Scorsis

October 11, 2019
 
In-Depth Look Into the Declining Cannabis Market - Canopy, Hexo
Bruce Campbel - Stonecastle Investment Analysis ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

October 11, 2019
 

Cultivator of the Year. Regional Game Changer. Community Impact. These are just some of the categories for which the editorial team of Marijuana Business Daily vetted more than 670 entries for the inaugural MJBizDaily Awards. With the list of nominees having been culled to 55 finalists, a panel of cannabis industry professionals is hard at

55 finalists announced for inaugural MJBizDaily Awards honoring cannabis companies, executives is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

October 10, 2019
 

Sales of medical cannabis in Arkansas continue at a strong pace, totaling $12.35 million in the first five months of the program. At this rate, sales are on pace to reach the upper end if not exceed Marijuana Business Factbook projections of $15 million-$20 million for 2019. The sales, representing 1,730 pounds of marijuana, were

Arkansas medical marijuana sales brisk, total $12.3 million for five months is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

October 10, 2019
 

U.S. Senate Majority Leader Mitch McConnell is scheduled to talk with cannabis industry executives this week in California about marijuana banking legislation and other issues, perhaps signaling that the Kentucky Republican is open to MJ reform. McConnell is a key gatekeeper in determining whether cannabis banking reform legislation, which recently passed the U.S. House of

US Senate leader McConnell expected to discuss marijuana banking reform is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

October 10, 2019
 
StoneCastle Investment
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

October 09, 2019
 

New Frontier Data, a privately owned data analytics firm in Washington DC that focuses on the cannabis industry, plans to pay roughly $10 million for a Denver-area company in the same field. New Frontier Data reached an agreement to buy Zefyr, based in Greenwood Village, Colorado, in a cash and stock deal. The acquisition will

New Frontier Data paying $10 million for cannabis research firm is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 09, 2019
 
Cannabis News September 9th 2019 - Acreage , Canopy Growth, Sundial Weekend, James E. Wagner
Acreage Holdings, Inc Canopy Growth Corp Sundial Growers Inc Weekend Unlimited Inc James E. Wagner Cultivation Corporation AgraFlora Organics International Inc ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

October 09, 2019
 

canada cbd border marijuana

In a recent tweet, the Canada Border Services Agency (CBSA) reminded us that transporting CBD oil into Canada remains illegal. While in most places south of the 49th parallel what CBSA has to say is of little consequence, it certainly matters here in Washington State, where you’re never too far away from the Canadian border. The full text of the tweet reads:

#DYK that transporting #CBDOil across the border remains illegal? Transporting any form of #cannabis across the border without a permit or exemption authorized by @GovCanHealth remains a serious offence. #DontBringItIn #DontTakeItOut

With the coming into force of the Cannabis Act on October 17, 2019, recreational marijuana use became legal on both sides of Washington State’s 427-mile border with British Columbia, as well as other stretches of the U.S.-Canada boundary. This created a situation ripe for confusion. The man (or woman) on the Amtrak Cascades might reasonably conclude that there is nothing wrong with taking a cannabis product bought legally at a Seattle shop to Vancouver, where it can also be purchased legally.

However, as the Canadian government made clear in the information sheet it sent to every household in the country prior to the Cannabis Act’s effective date: “It’s illegal to take cannabis and cannabis products, including those with CBD, across the Canadian border, whether you’re leaving or coming to Canada. This applies to all countries, whether cannabis is legal there or not.”

With CBD products also on the hook, the potential for confusion extends to much of the borderlands. For instance, while Montana has a much stricter cannabis regime than Washington State, THC-free CBD products are not illegal in Big Sky Country. This puts not just the marijuana aficionado from Tacoma on his way to party in Van at risk of border trouble, but also the arthritic retiree from Helena heading up for a weekend in Banff.

To be fair, it’s not uncommon at all for products that are legal on both sides of a border to be subject to customs controls, for revenue and/or regulatory reasons. That said, the situation with cannabis along the U.S.-Canada border is more fraught with risk because it is still an illegal drug as far as the U.S. federal government is concerned.

It is perfectly understandably for U.S. Customs and Border Protection (CBP) to be on the lookout for cannabis products. The agency is tasked with enforcing federal law, and logically their officers in Metaline Falls, Washington should not go about their duties any differently that their colleagues 55 miles away in Eastport, Idaho. However, it is clear appears that the Feds are going far beyond that—with Canadians feeling much of the pain.

The CBC is likely not exaggerating when it reports, “Thousands of Canadians have been denied entry to the U.S. simply for admitting they’ve smoked a joint once in their lives.” As my colleague Akshat Divatia recently explained:

U.S. law will not recognize any amnesty or pardon by Canadian authorities for cannabis-related convictions. Admitting to a CBP officer that you used marijuana any time before legalization is the equivalent of a formal court conviction for that crime and you will likely be denied entry into the United States.”

The same CBC article notes than an “unsuspecting CBD oil user”—remember our arthritic retiree—could be “banned from entering the [U.S.] for life.” But you don’t even need to carry or even have used cannabis products to get in trouble. As Akshat notes:

Those who legally work in the Canadian cannabis industry must provide details about their role and convince U.S. border officers that their trip to the U.S. is purely personal. Cannabis workers will likely need to prove that while in the U.S., they will not engage in any networking or strategic meetings, presentations, marketing efforts, or any manufacturing or distribution activities with customers or cannabis industry colleagues.”

Stated less elegantly, coming to the U.S. for cannabis-related business is a no-no. Even investing in cannabis businesses could theoretically get you banned for life from the United States. With this kind of onslaught, even innocuous activities such as changing planes at a U.S. airport to attend a cannabis conference in a third country are causes of concern.

It doesn’t stop there, though. In at least one instance that we know of, CBP took away NEXUS privileges from someone who wrote a reference letter for a fellow Canadian applying for a waiver for a marijuana-related ineligibility. This is worth repeating. They did not take away NEXUS privileges from someone who him or herself had a marijuana ineligibility, but rather from someone who wanted to help that person by writing a letter. This would be akin to a lawyer getting sanctioned for serving as a character reference for a bar applicant who had a run-in with the law in the past.

You might think, well, it’s just NEXUS—wait in the regular line like the rest of us. But the ability to avoid long waits at the border can be critical for persons engaged in cross-border business activities. And, again, the privileges are being taken away for writing a letter.

I wish I could say that the bottom line is as simple as not taking any cannabis products—whether THC, CBD or somewhere in between—with you when you cross the border. However, the risks run much deeper for Canadians and other foreigners with any cannabis involvement heading south. And to be sure, this includes foreigners living in the United States, who are pretty much subject to the same ineligibilities.

If in doubt, talk to a lawyer before you go anywhere near the Peace Arch. DON’T take chances: The consequences can be as serious as they get.


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George Scorsis

October 08, 2019
 

The cannabis industry experienced a 62% year-over-year jump in banking options in the federal government’s most recent quarter. The number of banks and credit unions actively serving the marijuana industry totaled 715 in the U.S. government’s fiscal third quarter, which ended June 30, federal data shows. The data reflects a healthy increase in the number

Even without reform, banks increasingly serving marijuana industry is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

October 08, 2019
 

New Mexico regulators are requiring marijuana vape products to be labeled with a warning in the wake of the nationwide vaping health crisis. The health department isn’t banning any products at this time but wants the public to be aware that both marijuana and nicotine vape products are believed to cause health problems. Medical marijuana

New Mexico requires cannabis vape products to include health warning is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 08, 2019
 
An Introduction to Jushi Holdings Inc. (NEO: JUSH.B)
Jushi Holdings Inc. (NEO: JUSH.B) Founder & President Erich Mauff ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

October 07, 2019
 

Voting on resolutions to regulate the cultivation and registration of cannabis-based medicines in Brazil has been postponed, the Agência Nacional de Vigilância Sanitária – or National Sanitary Surveillance Agency (ANVISA) – announced Monday. Voting was originally scheduled to take place Tuesday. The delay throws the future of the groundbreaking proposals in doubt. The reason given for the postponement was

Brazil postpones vote on key marijuana proposals, raising questions about their future is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

October 07, 2019
 

Maine state officials said they are poised to begin accepting adult-use marijuana license applications before the end of the year and expect customers will have the ability to purchase products in retail stores by March. There are no statewide license caps, but municipalities can limit or ban recreational marijuana in their jurisdictions – and most

Maine on track to launch recreational cannabis sales by spring 2020 is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

October 07, 2019
 

Village Farms is counting on its 30-plus years of experience in megascale, low-cost product growing to give it a leg up as it shifts focus to the Canadian cannabis and U.S. hemp markets.

Exclusive Webcast: Village Farms CEO talks branding, strategy for marijuana is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 07, 2019
 

California’s cannabis testing industry was stressed to the brink in 2018, with newly required testing thresholds going into effect first in July 2018 and then in January 2019. The result at the time was long waits for test results, a temporary increase in product testing failures and various industry stakeholders arguing the state needed far

Life has stabilized for California testing labs since 2018, but hurdles remain is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

October 06, 2019
 

kentucky hemp cbdThe Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA.

This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday, we summarize a new state in alphabetical order. Today, we turn to Kentucky. This might come as a surprise to some readers, but Kentucky is one of the more hemp friendly states in the U.S.

Kentucky’s definition of industrial hemp mirrors the definition in the 2014 Federal Farm Bill. The Kentucky Department of Agriculture (“KDA”) oversees the state’s Industrial Hemp Research Pilot Program (the “Program”). Per the program, licenses are required to cultivate,  handle, process, and market hemp. The application period this year for cultivators, as well as processors and handlers, has already closed.

To legally grow hemp, a cultivator must apply with KDA. Kentucky, unlike many other states, has robust regulations and requirements for hemp cultivators. Kentucky includes express provisions for hemp pesticide use, and requires all hemp cultivators to enter into a hemp grower licensing agreement with KDA. This is much more comprehensive than some other states that have little oversight over hemp cultivators.

Kentucky also imposes strict licensing requirements on hemp processors and hemp handlers. Hemp licensees must follow strict hemp manufacturing, testing, and labeling requirements . There are even animal feed requirements. Hemp in its wholesale form also may not be sold to non-licensees within Kentucky.

In Kentucky, Hemp CBD products are lawful, but certain hemp products are clearly prohibited including the following:

  • Hemp cigarettes;
  • Hemp cigars;
  • Chew, dip, or other smokeless material consisting of hemp leaf material or hemp floral material; and
  • Hemp leaf material or floral material teas.

In addition, only hemp license holders may possess or distribute whole hemp buds, ground hemp floral material, ground hemp leaf material, or any hemp product with more than 0.3 delta-9-THC.

As we’ve written previously, Kentucky is one of the few states that actually prohibits smokeable hemp, in spite of its pretty lax standards when it comes to the sale of Hemp CBD (in stark contrast to states like California or even the FDA, which claim that many Hemp CBD products are unlawful but say nothing about smokeable hemp). Though the regulations are not quite as clear on vapor products, given the current climate around vapor products generally and Kentucky’s position on other smokeable hemp products, Kentucky is not a good state in which to distribute any smokable hemp products.

Stay tuned to the Canna Law Blog for developments on hemp and Hemp CBD in Kansas and other states across the country. For previous coverage in this series, check out the links below:


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George Scorsis Liberty Health Sciences

October 05, 2019
 

safe banking act cannabis

Great news! In a pretty historic moment, the House of Representatives officially voted to pass the SAFE Banking Act (H.R. 1595). We’ve extensively covered the Act’s progress in past posts (the latest can be found here and here), but just as a reminder, the Act would finally allow the cannabis industry to access banking and financial services. It’s gained a lot of support over time, and it passed in the House yesterday by a vote of 321 to 103.  All but one Democrat (Rep. Terri Sewell (D-AL)) was in favor, and almost half of the Republic caucus was as well.

Though the fight is far from over, yesterday’s vote is a major win and milestone sign of progress for so many: cannabis retailers, banks, credit unions, and more. While it doesn’t do anything in terms of the larger fight for decriminalization, it does shield banks and insurers from penalties if they choose to serve state-legal cannabis industries. Under the Act, a federal financial regulator won’t be able to terminate or limit the depository or share insurance of a depository institution. It won’t be able to prohibit or penalize financial institutions from providing services to cannabis businesses. And, the Act provides protections for ancillary businesses in transactions with cannabis-related businesses.

As co-sponsor of the bill, Rep. Ed Perlmutter (D-CO) said on the House floor right before the vote: “It’s an invitation to theft, it’s an invitation to money laundering already, it’s an invitation to tax evasion, and it stifles the opportunities of this business.” Sen. Marco Rubio (R-FL) agreed: “I think you can be against marijuana and still understand that if it’s going to be a legalized product, we need to be able to control it through our banking system.” While the focus has been on the bill being a banking bill, Rep. Perlmutter also expressed his hope that passage of the SAFE Banking Act would eventually lead to Congress’ acknowledgment of the reality that 33 states (and counting) have now legalized marijuana in some form. “If someone wants to oppose legalization of marijuana, that’s their prerogative. But American voters have spoken and continue to speak, and the fact is you can’t put the genie back in the bottle,” Rep. Perlmutter. “Prohibition is over.”

Most Republicans opposed the bill for the same reason that Rep. Perlmutter hopes will come to fruition. Rep. Patrick McHenry (R-NC) argued that Congress should be facing the “underlying issue” of whether or not cannabis should be a Schedule I drug. “We do not fully understand the sweeping implications of this legislation. We do not yet know what the resulting regulatory regime will look like, nor do we have any assurance it will not expose the current financial system to illicit activity.” “This bill doesn’t change the fact that cannabis remains a prohibited Schedule I substance under the Controlled Substances Act. To that end, if we seek to give financial institutions certainty, we should deal with the listing of cannabis as a Schedule I substance, not debating a partial solution for financial institutions to what is a much larger problem and a larger societal issue that we must wrestle with.”

In any event, it’s important to note that the final version of the Act definitely included some additions specifically so that the legislation would be more appealing to certain Republican senators. To entice Senator Majority Leader, Mitch McConnell, a well-known advocate of hemp legalization, certain protections for hemp were added (because of hemp’s association with cannabis, hemp industry players have also had difficulties accessing banking services despite the fact that industrial hemp farming was nationally legalized in 2018). Similarly, the legislation includes another provision that would restrict bank regulators from pressing lenders to cut ties with customers based on their “reputational risk.” This was aimed to appease Republicans who are against an Obama-era program that discouraged banks from serving payday lenders and gun retailers, known as Operation Choke Point. It’s believed that this second provision specifically had Sen. Crapo in mind.

Of course, the companion bill in the Senate, introduced by Sen. Jeff Merkley (D-OR) and Sen. Cory Gardner (R-CO) back in April, has yet to be voted on by the Senate Banking Committee. There have been some positive signs for the legislation, most notably coming from Senate Banking Committee Chairman Mike Crapo (R-ID) and a lack of apparent opposition from President Donald Trump. The Senate is currently in recess but returns this Tuesday, October 8.


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george scorsis

October 04, 2019
 

A four-month ban in Massachusetts on the sale of all marijuana and tobacco vaping products is expected to remain in place. On Friday, U.S. District Judge Indira Talwani was “leaning toward” dismissing a temporary restraining order to stop the ban, which is being sought by the Vapor Technology Association, a national industry trade group, according

MA vaping ban, including cannabis products, expected to survive court challenge is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

October 04, 2019
 

Nevada’s first cannabis tasting room is opening this weekend, giving the venue a head start on a sector that won’t be widely available for two years. The Las Vegas Pauite Tribe will open the establishment Saturday at the NuWu Cannabis Marketplace, which is located on tribal land about two blocks from downtown Las Vegas. In June, Nevada

Nevada’s first marijuana lounge opens this weekend is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 04, 2019
 

The Alaska Alcoholic Beverage Control Board wants to remove the state’s top alcohol and marijuana regulator, marking the latest potentially destabilizing development for the state’s cannabis industry. The board voted 5-0 at a special meeting Thursday to remove Erika McConnell, director of the Alaska Alcohol & Marijuana Control Office, according to the Anchorage Daily News.

Alaska’s top cannabis regulator under siege by state liquor board is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

October 04, 2019
 

Brazil’s Agência Nacional de Vigilância Sanitária – a.k.a. National Sanitary Surveillance Agency (ANVISA) – is expected to vote next week on two draft resolutions which could have sweeping ramifications for the medical cannabis industry. If approved, the proposals would for the first time regulate the domestic cultivation of medical cannabis in Brazil and create a framework

Date looms for Brazil decision on medical cannabis cultivation, product registration is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

October 04, 2019
 

Washington state cannabis regulators approved a two-month contract extension for Leaf Data Systems, the seed-to-sale tracking product offered by Denver-based software company Akerna. The contract lasts until Nov. 30, “to focus solely on providing a stable system to our users,” said Megan Duffy, deputy director and executive sponsor of the Washington State Liquor and Cannabis

WA extends marijuana traceability system contract with Leaf Data Systems is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 04, 2019
 
SLANG Worldwide
SLANG Worldwide (CNSX: SLNG) CEO, Peter Miller ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

October 03, 2019
 

This report takes a closer look at the vape segment of cannabis and provides a framework to assess the downside risk and upside potential of stocks with significant exposure to the sector.

New report: Impact, outlook for investors in wake of marijuana vape crisis is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

October 03, 2019
 
Cannabis News October 3 2019 -  Aurora, Canopy Rivers, Green Growth, Planet 13, Sundial VIVO
Aurora Cannabis Inc Canopy Rivers Inc Green Growth Brands Inc Planet 13 Holdings Inc Sundial Growers Inc VIVO Cannabis Inc Origin House Tetra Bio-Pharma Inc ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

October 03, 2019
 

State-legal cannabis vape products and the companies selling or distributing them may not be the principal cause of the recent outbreak of respiratory illnesses in the United States, but those firms are feeling the effects nonetheless.

Vaping health scare takes toll on cannabis vape firms’ stock prices, but many see longer term opportunity beyond crisis is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

October 02, 2019
 
CanAlaska Uranium (CVE: CVV) & Chart Analysis - Midas Letter Raw 264
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

October 02, 2019
 

San Diego is expected to crack down by year’s end on billboards advertising marijuana, a move supported by much of the cannabis industry. The proposed rule would ban cannabis billboard ads within 1,000 feet of schools, public parks, playgrounds, day care centers or youth centers, the San Diego Union-Tribune reported. The restrictions would apply to

San Diego preparing to restrict cannabis billboards is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

October 02, 2019
 

cannabis litigation employment flsaYes, cannabis is still federally illegal. But no, that doesn’t mean cannabis businesses should act as if federal law doesn’t exist. It does, and it probably applies to any cannabis business. Nevertheless, our cannabis attorneys often hear claims that federal law doesn’t apply. In fact, two questions that I’ve heard numerous times are:

  1. If the other side breaches this cannabis contract and we sue them, will they just claim that the contract is federally illegal to get off the hook, and if so, will the judge agree?
  2. Does federal law apply to our cannabis business?

The answer to the first question is admittedly pretty tough. Our cannabis attorneys see parties put all kinds of things in contracts to try to avoid this problem—from acknowledgements of federal illegality, to waivers of the right to bring a case in federal court, to outright waivers of the illegality defense. Whether any clauses could make a difference in litigation is not clear, and depending on the jurisdiction, a court could theoretically agree that the contract is illegal and can’t be enforced, though we believe that’s unlikely to happen in any state court in a state with a commercial cannabis licensing system. After all, one would hope that a judge wouldn’t sympathize with a party who signed a contract, breached it, and then claimed the whole thing was illegal.

The answer to the second question is much easier: federal law almost certainly applies. A good rule is that if the federal government says that a business has to do something, they have to do it. On the other hand, when federal laws offer protections or benefits to normal businesses, those often don’t apply to cannabis companies (such as bankruptcy protection or certain tax deductions). Here are a series of examples:

  • The Controlled Substances Act: Even though the federal government hasn’t really enforced the CSA against state-lawful operators in a few years, it actively enforces it against allegedly unlicensed operators. Theoretically, nothing is stopping the federal government from bringing charges against every licensed dispensary in the United States (with the exception of strictly medical operators as protected by the Rohrbacher Blumenauer amendment, as extended from time to time). In reality, it doesn’t look like the federal government will abandon its current policy of non-enforcement any time soon.
  • Federal Trademark Laws: Thinking of using an established company’s trademarks on cannabis goods? Well, they might haul you into court under the federal trademark laws. A federal trademark registration offers the holder the right to seek certain remedies against unlawful users of that trademark (the “infringer”), regardless of whether the infringer was selling a legal or illegal good. Even businesses without federal trademark registrations can bring trademark actions against infringers.
  • Federal Trade Secret Laws: If a cannabis company improperly acquires information, data, methods, or any other kind of secret from any other company, the cannabis company could be sued under the federal Defend Trade Secrets Act.
  • Federal Environmental Laws: Cannabis companies that don’t comply with federal environmental laws risk being penalized or even criminally indicted.
  • Federal Tax Laws: Yes, cannabis companies need to pay federal taxes, but unfortunately, thanks to Internal Revenue Code section 280E, they cannot take regular business deductions, so they end up paying taxes on their gross receipts less their allowed cost of goods sold.
  • Federal Employment Laws: Thanks to the Tenth Circuit Court of Appeals (a federal appellate court based in Denver that is one step below the U.S. Supreme Court), we can now add compliance with the Fair Labor Standards Act (“FLSA”) to this list.

The case at issue is Kenney v. Helix TCS, Inc., which we’ve been following for about a year. As we explained previously:

Helix TCS, INC. (“Helix”) provides security services to cannabis businesses. Kenney, an employee of Helix, was classified as an exempt employee, meaning Helix did not pay him overtime pursuant to the requirements of the FLSA. Kenney brought suit against Helix claiming he was misclassified as exempt and should have been paid overtime.

Helix moved to dismiss the case, arguing that Kenney was not entitled to the protections of the FLSA because cannabis was entirely forbidden under the CSA. The district court denied the motion to dismiss but certified the ruling for immediate appeal to the Tenth Circuit Court of Appeals.

On Appeal, Helix contends that its employees are not entitled to the protections of the FLSA. Helix’s main argument is that all participants in state recreational marijuana industries assume the risk that their activities will subject them to federal criminal sanctions and therefore they are not entitled to benefits under federal law, and cannot expect federal court to aid their conduct. Essentially Helix is arguing that the federal government would be assisting employees in drug trafficking if they afforded the employees the protections of the FLSA.

On September 20, 2019, a three-judge panel of the Tenth Circuit issued a concise, 12-page opinion unanimously disagreeing with Helix and holding conclusively that the FLSA does apply to cannabis businesses. In one part of the Kenney opinion, the court noted that “case law has repeatedly confirmed that employers are not excused from complying with federal laws just because their business practices are federally prohibited.” After reviewing this law, the court held that “the FLSA is focused on regulating the activity of businesses, in part on behalf of the individual workers’ well-being, rather than regulating the legality of individual workers’ activities.” In conclusion, the court held that the FLSA does apply to cannabis companies and allowed the case to proceed.

There is an important note in the wake of the Kenney case: the case is only “binding” on jurisdictions within the Tenth Circuit, which are the District of Colorado, District of Kansas, District of New Mexico, Eastern District of Oklahoma, Northern District of Oklahoma, Western District of Oklahoma, District of Utah, and District of Wyoming. The decision will just be “persuasive” authority for federal courts elsewhere in the U.S., which means that they don’t necessarily need to be adhered to. Even though Kenney won’t be binding on federal courts outside the Tenth Circuit, we don’t see many courts departing from the Kenney rule.

You may be asking why this case is relevant to the illegality defense. The answer is simple—the court’s reasoning is broad enough to apply outside of the context of the FLSA. In other words, courts across the country could either cite the case persuasively outside the FLSA context, or just come to different conclusions based on the same reasoning. Even if federal legality doesn’t happen soon, we expect that the federal illegality defense will continue to weaken substantially over the next few years.


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more details, George Scorsis

October 01, 2019
 

Recreational cannabis retailers could open far more stores in California if municipalities respond favorably to a poll that shows the majority of state residents welcome the legalization of adult-use MJ sales. The UC Berkeley Institute of Government Studies’ poll conducted for the Los Angeles Times found that 68% of Californians say the legalized sale of

Poll suggests Californians want more adult-use marijuana stores is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

October 01, 2019
 
PropGO - CEO, George Varvitsiotis
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

October 01, 2019
 
October 1 News - 48North, Australis, Canada House, Fire & Flower, Harborside, MediPharm
48North Cannabis Corp Australis Capital Inc Canada House Wellness Group Fire & Flower Holdings Corp Harborside Inc MediPharm Labs Corp Sundial Growers Inc World-Class Extractions Inc cbdMD, Inc ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

September 30, 2019
 

Illinois officials identified areas where applicants who want to legally grow and sell recreational cannabis would get preference under the law’s social equity provision, one that some believe could become a national blueprint for other MJ programs. The map was released on the eve of the state making applications available for up to 75 rec

Illinois releases social-equity map for adult-use marijuana licensing is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

September 30, 2019
 
RavenQuest BioMed (CNSX:RQB) & Amex Exploration (CVE:AMX) - Midas Letter Raw 262
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

September 30, 2019
 
Sensi Prop - CEO, Daniel Sax
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

george scorsis

September 30, 2019
 
Cannabis News Sept 30 News - iAnthus, Zenabis, Trulieve, Cresco Labs, Avicanna, 1933
iAnthus Capital Holdings, Inc Zenabis Global Inc Trulieve Cannabis Corp Cresco Labs Inc. Avicanna Inc 1933 Industries Inc Harvest Health & Recreation, Inc ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

September 30, 2019
 

(California Marijuana Notebook is a regular column that delves into the complicated issues surrounding the state’s immense cannabis market from the vantage point of Marijuana Business Daily Senior Reporter John Schroyer. Based in Sacramento, he’s been writing about the cannabis industry since joining MJBizDaily in 2014.) It appears one of the longest-standing controversies in the California marijuana industry will come

How Weedmaps’ major change in course may impact the cannabis industry is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

September 30, 2019
 

As the U.S. and Canadian marijuana markets continue to mature, consolidation is inescapable.

But cannabis entrepreneurs need to think more in terms of bigger buyers and smaller sellers, not winners and losers, in the race for market share.

There’s more to exiting a cannabis business than simply deciding whether to sell or go public is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

September 28, 2019
 

The gig economy has permeated U.S. culture as companies such as Uber, Lyft and DoorDash offer people a way to make a living while offering services that customers are demanding.

Cannabis companies seeking short-term help have plenty of options is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

September 27, 2019
 

A yearlong ban on all cannabis vaping sales introduced this week by a Los Angeles City Council member has many in the industry fretting over the future and scrambling to head the motion off before it becomes law. If the city does enact the proposed ban, that could lead to tens of millions – if not

Possible L.A. vaping ban could be ‘extinction event’ for some marijuana firms, California industry executives say is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

September 27, 2019
 

Health officials reported on Friday that the majority of those sickened in the vaping health crisis used cannabis vape products containing THC, and many of those in the first two states to report illnesses – Illinois and Wisconsin – said they used counterfeit marijuana products from the illicit market, not licensed MJ companies. The revelations,

CDC reports majority of patients sickened in vape epidemic used marijuana vaporizer devices – many from illicit market is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

September 27, 2019
 

Chicago-based Cresco Labs will sell two cultivation and processing facilities in Illinois to Innovative Industrial Properties, a real estate investment trust company (REIT), for $46.3 million as the multistate operator prepares for a “significant increase in demand” when recreational marijuana sales become legal in the state Jan. 1. The facilities, which will continue to be

Cresco Labs to sell marijuana facilities to REIT for $46.3M under leaseback deal is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis website

September 27, 2019
 

The U.S. House of Representatives’ vote approving legislation that would pave the way for financial institutions and insurance companies to serve state-legal marijuana businesses without fear of reprisal is a milestone for the cannabis industry. Nevertheless, the 321-103 House vote is but another step on a long and often bumpy legal road toward changing how

After the SAFE vote in US House, here’s what you need to know about the current state of banking in the marijuana industry is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

September 27, 2019
 
Cannabis New August 27 2017 - Invictus, Cresco, Choom, Dixie Brands, Weekend Unlimited
Invictus MD Strategies Corp Cresco Labs Inc Choom Holdings Dixie Brands Inc Weekend Unlimited Inc ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

September 27, 2019
 

A Los Angeles City Council member is moving to temporarily ban the sale of all marijuana vaping products in response to the recent vaping illness epidemic. Whether the measure will become law remains unclear. But, if successful, it could prove to be a major blow to cannabis retailers and vaporizer companies in the world’s largest

Los Angeles City Council expected to weigh one-year cannabis vape sales ban is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

September 26, 2019
 

Editor’s note: Sergio Vazquez will appear at the MJBizDaily Latin American Cannabis Symposium, Sept. 30-Oct. 1, in Bogota, Colombia.) Uruguay could see the start of an export stream for hemp as early as 2020, after a period of testing has been completed, marking a milestone for Latin American hemp industry. That’s according to Sergio Vazquez, head of

Uruguay’s hemp exports could start next year: Q&A with Sergio Vazquez of the agriculture ministry is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

September 25, 2019
 

In a landmark move, U.S. House lawmakers on Wednesday approved overwhelmingly by a 321-103 vote legislation that would pave the way for financial institutions and insurance companies to serve state-legal marijuana businesses without fear of federal reprisal. Ninety-one Republicans voted for the measure, in a showing of strong bipartisan support. The bill – the first piece

Historic day: US House passes cannabis banking bill with strong bipartisan support is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

more info, George Scorsis

September 25, 2019
 
Martin Cronin from Patriot One & Jake Heimark from Plus Products - Midas Letter RAW 260
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

additional info, George Scorsis

September 25, 2019
 

A California health agency joined the chorus of officials across the country urging consumers to stop vaping all substances immediately, saying it’s still unsure what’s caused the recent epidemic that has sickened at least 530 and claimed nine lives in the U.S. The California Department of Public Health (CDPH) also announced that 90 Californians with a

California health officials urge residents to stop vaping tobacco, marijuana is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

September 25, 2019
 

Earnouts are a common risk-allocation provision in cannabis and hemp mergers and acquisitions used to bridge the business-value gap between a business owner and an acquirer.

Why earnouts matter in cannabis M&A is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

September 25, 2019
 

Australia’s capital is the first part of the country to legalize recreational marijuana for personal use. The Australian Capital Territory Legislative Assembly voted on Wednesday to legalize possession by adults of up to 50 grams (1.8 ounces) of dried marijuana and cultivation of two marijuana plants beginning Jan. 31. The assembly is the local government

Australian capital legalizes recreational marijuana is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

September 25, 2019
 

The multibillion-dollar U.S. cannabis industry is poised to cross a historic threshold Wednesday with a scheduled U.S. House vote on a bill that would permit financial institutions to serve state-legal marijuana businesses without fear of federal punishment. The vote would mark the first time a standalone marijuana bill has come before the full House. And it

At long last: A full US House vote on a cannabis banking bill is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

September 24, 2019
 

Massachusetts regulators approved two new types of licenses that could be a boon to marijuana businesses in the state – cannabis cafes and home delivery. The Springfield Republican reported that the Cannabis Control Commission voted 4-1 to allow social consumption of recreational marijuana at cafes as well as delivery of adult-use cannabis to residences. Both licenses

Massachusetts regulators say yes to marijuana cafes, home delivery is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis website

September 23, 2019
 
C21 Investments(CNSX:CXXI) aiming for profits by 2020
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

addiitional information, George Scorsis

September 23, 2019
 

fda ftc cbd cannabis

Last week, the Federal Trade Commission (“FTC”) issued warning letters to three unnamed companies that advertised their CBD-infused products as treatments or cure for serious medical conditions.

These warning letters are nothing new. As we have explained before, making medical claims about CBD-infused products is the perfect way of falling under the scrutiny of federal authorities.

What may be surprising to some, however, is that the FTC sent out these letters, not the Food and Drug Administration (“FDA”). The regulatory authority of the FDA and of the FTC overlaps greatly.

Pursuant to the Food, Drug & Cosmetic Act (“FDCA”), the FDA has regulatory authority over labels and labeling and is to ensure that consumer products (foods, dietary supplements, cosmetics, tobacco products and drugs) are not misbranded. Generally, misbranding consists of false and misleading labeling. On the other hand, the FTC is tasked under the Federal Trade Commission Act (“FTC Act”) with regulating “advertising” to protect the public from unfair and deceptive claims in any medium.

The distinction between labeling (including packaging) and advertising is not always clear. Over the years, some courts have expanded the authority of both agencies by interpreting “labeling” to include products sold on the Internet, especially if purchased directly from a website. This expansion of power has blurred the lines between the FDA and FTC’s jurisdiction. In addition, the agencies have increased collaboration in regulating the advertising of food and dietary supplement products, making those jurisdictional lines foggier.

A perfect example of this interagency collaboration is reflected in the March 28 warning letters that the FDA and the FTC sent jointly to three CBD companies: Advanced Spine and Pain, LLC; Nutra Pure LLC; and PotNetwork Holdings, Inc..

The growing symbiotic relationship of these agencies has resulted in heightened regulatory scrutiny of consumer products, including that of CBD-infused products. Of course, with increased scrutiny comes increased financial risks in defending against those enforcement actions. In addition, the public nature of these warning letters naturally opens the door to potential consumer class action claims and securities violations – take the example of Curaleaf, here and here.

Since the beginning of the year, the FDA and the FTC have issued a total of four warning letters to CBD companies, which suggests that the agencies are acknowledging the growth of the CBD industry and that more enforcement actions are sure to come.

Consequently, and given the lack of distinction between labeling and advertising and the overlap of regulatory authority between the FDA and the FTC, CBD stakeholders, particularly manufacturers, distributors and marketers, should:

  1. not make health claims about the therapeutic value of their products;
  2. closely monitor both agencies’ enforcement actions (i.e., warning letters) and regulations; and
  3. develop compliance programs to (i) ensure that their marketing efforts align with federal guidelines and (ii) ensure that their compliance team is familiar with the FDA and the FTC’s regulations to successfully implement these guidelines.

For more information on FDA and FTC’s guidelines and how to mitigate your risk of enforcement action, please contact our team of regulatory attorneys.


[Read More ...]

george scorsis

September 23, 2019
 

Cannabis businesses are taking careful note as professional marijuana courses and programs spring up at universities and other educational institutions across the country. Examples include – to name a few – Northern Michigan University, the College of Southern Nevada, the University of Denver and Florida Gulf Coast University, with colleges offering a huge variety of

Why marijuana firms are paying attention as higher education expands MJ course offerings across the US is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional info, George Scorsis

September 22, 2019
 

iowa hemp cbd

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA.

This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday, we summarize a new state in alphabetical order. Today, we turn to Iowa.

On May 13, 2019, Iowa Governor Kim Reynolds signed into law Senate File 599, aka the Iowa Hemp Act (the “Act”). The Act requires Iowa’s Department of Agriculture and Land Stewardship (“DALS”)  to prepare and submit a plan for hemp cultivation to the USDA. DALS will assume primary authority over the “production of hemp” after the USDA approves Iowa’s state plan. Under the Act, “produce” means “to provide for the planting, raising, cultivating, managing, harvesting, and storing a crop.” DALS will issue hemp licenses and the Act outlines the application process and licensee qualifications.

A hemp licensee is exempt from criminal offenses for “producing, possessing, using, harvesting, handling, manufacturing, marketing, transporting, delivering, or distributing hemp” so long as the licensee is in compliance with the Act and DALS subsequent regulations. DALS will likely issue regulations elaborating on what is required to produce, process, manufacture, market, transport and deliver hemp and hemp products.

The Act defines hemp products as “an item derived from or made by processing hemp or parts of hemp, including but not limited to any item manufactured from hemp , including but not limited to cloth, cordage, fiber, food, fuel, paint, paper, particleboard, plastic, hemp seed, seed meal, or seed oil. Hemp product does not include any of the following: (1) An item or part of an item with a maximum delta-9 tetrahydrocannabinol concentration that exceeds three-tenths of one percent on a dry weight basis. (2) Hemp seed that is capable of germination.”

The Act allows for the retail sale of a hemp product if the hemp was “produced in this state or another state in compliance with the federal hemp law or other applicable federal law.” In addition, “[t]o the extent consistent with applicable federal law, a derivative of hemp, including hemp-derived cannabidiol, may be added to cosmetics, personal care products, and products intended for human or animal consumption. The addition of such a derivative shall not be considered an adulteration of the product, unless otherwise provided in applicable federal law.” Reading between the lines, it sounds like the Act mandates that Iowa follow the FDA’s guidance in determining what hemp products will be permitted for sale within the state’s borders.

Though the Act seems to allow for the sale of at least some Hemp-CBD products, the sale of Hemp-CBD remains risky in Iowa until the USDA approves of DALS’s state plan. Don’t believe me? Then take Iowa Attorney General Thomas Miller’s word for it. AG Miller issued a Statement on Hemp and CBD Products after Governor Reynolds signed the Act into law. Miller’s position on the matter is summed up nicely in this particular passage of that Statement:

The only provision of the Iowa Hemp Act that can be currently implemented is Section 3, which requires the [DALS] to prepare a state plan to be submitted to the USDA. Per Section 18 of the Act, the other provisions of the [Act]  cannot be implemented until after the USDA approves Iowa’s state plan. Therefore, at present time, no one can grow, manufacturer, or process hemp in Iowa, outside of the two mCBD manufacturers licensed by the Iowa Department of Public Health.

I need to briefly interrupt AG Miller to note that “mCBD manufacturers” refers to Iowa’s limited Medical Cannabidiol Act, which allows patients to legally possess “medical cannabidiol” if they have a qualifying condition and obtain a registration card based on a recommendation from a healthcare professional. See Iowa Code Ann. § 124E et seq. OK, now back to the statement:

In addition, the coordinating amendments, many of which remove hemp and hemp products from the Uniform Controlled Substances Act, do not become effective until after the USDA approves Iowa’s state plan. Until the coordinating amendments of the Iowa Hemp Act are effective, any product sold over-the-counter containing CBD or THC technically falls within the definition of marijuana and is considered a Schedule I controlled substance.

AG Miller goes on to warn consumers about mislabeled and Hemp-CBD, health claims related to Hemp-CBD, product liability for Hemp-CBD products, and investing in the volatile Hemp-CBD market. AG Miller also notes that local law enforcement will retain authority and discretion to take criminal enforcement actions against those selling or possessing Hemp-CBD products.

All things considered, Iowa appears poised to enter the Hemp-CBD game but at this time anyone distributing or possessing Hemp-CBD faces potential criminal liability. Iowa may not be as anti-cannabis as a state like Idaho, but it is also pretty clearly opposed to Hemp-CBD, at least right now. I expect that Iowa will strictly regulate Hemp-CBD products after the USDA approves of DALS state plan.

Stay tuned to the Canna Law Blog for developments on hemp and Hemp CBD in Iowa and other states across the country. For previous coverage in this series, check out the links below:


[Read More ...]

George Scorsis

September 20, 2019
 
TerrAscend Corp (CNSX:TER) First Cannabis Company Licensed for Sales in Canada, US & EU
TerrAscend Corp (CNSX: TER) CEO, Michael Nashat ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

September 20, 2019
 
Charting Man Dan, Pasha Brands (CNSX:CRFT) & TerrAscend (CNSX:TER)  - Midas Letter RAW 257
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

September 20, 2019
 
Charting Man Dan on Cryptocurrency Landscape (SPX, BTCUSD, CGC, ACB)
Fo more from Dan and the Chart Guys visit https://chartguys.com for more. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

September 20, 2019
 

Walmart said Friday that it will stop selling electronic cigarettes at its namesake stores and Sam’s Clubs following a string of mysterious illnesses and deaths related to vaping. Walmart’s decision comes in the wake of the U.S. Food and Drug Administration (FDA) launching a criminal investigation into the vaping health crisis, bringing added scrutiny to the

Walmart pulls plug on all e-cigarette sales as vaping crisis roils marijuana industry is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

September 20, 2019
 

The number of city-approved cannabis stores in Calgary surpassed 200 this week, while the province has licensed 63 of those to open their doors to customers. The city’s store approvals exceed Ontario, British Columbia and Quebec combined, the three most-populous provinces in the country. Experts say Calgary should be seen as an example for other

200 cannabis stores approved by Calgary, more than BC, Ontario & Quebec combined is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

September 20, 2019
 

Three legislators introduced a bipartisan bill that would legalize medical marijuana in Wisconsin, creating a licensing system for growers, processors and sellers. Sens. Jon Erpenbach and Patrick Testin along with Rep. Chris Taylor introduced the bill Friday. Erpenbach and Taylor are Democrats. Testin is a Republican. The bill faces an uphill fight in the Republican-controlled

Wisconsin lawmakers introduce bill to legalize medical cannabis is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

September 20, 2019
 

Ecuador is one of the few South American countries that still has not legalized medical cannabis nor hemp, but that could change soon. This week, the country’s Congress approved a major reform of the Organic Integral Criminal Code. If given the green light by the executive branch – which has the authority to veto proposed

Ecuador moves closer to legalize medical cannabis and hemp is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

September 20, 2019
 

Los Angeles-based Future State Brands, a consumer brands cannabis holding company, received $25 million of funding led by Cresco Capital Partners. Future State Brands has a portfolio of hemp, THC and CBD brands in a variety of sectors including beverage, clothing and cosmetics. The proceeds will be used by the holding company for product development

Cresco Capital backs $25 million funding of CPG marijuana firm is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

September 20, 2019
 
Cannabis News September 20 2019 - Halo, Origin House, Delta 9, MediPharm, Inner Spirit, Choom
Halo Labs Inc Origin House Delta 9 Cannabis Inc MediPharm Labs Corp Inner Spirit Holdings Ltd Choom Holdings ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

September 20, 2019
 

State regulators from across the country react to the vaping crisis, a federal marijuana banking bill sees movement, Utah ups its medical cannabis licensing opportunities – and more of the week’s top marijuana business news. States’ responses to vaping crisis State regulators nationwide have begun responding in earnest to the vaping illness epidemic, which now stands

Vape crisis continues, federal cannabis bill moves, Utah licenses & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

September 20, 2019
 
Generation Mining Chairman(CSE: GENM) on their Palladium Mine on the Marathon Property
Kerry Knoll (CSE: GENM) Chairman, Generation Mining Ltd ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

george scorsis

September 18, 2019
 
Senior Consultant at Global Public Affairs Urges Constituents to make Cannabis an Election Issue
Alanna Sokic is a senior consultant at global Public Affairs ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

more information, George Scorsis

September 18, 2019
 

California-based testing lab Cannalysis raised $22.6 million that will fund its expansion in the state as well as bankroll its entry into other marijuana markets in the U.S. The Santa Ana-based company raised the money from Canlab, a cannabis, hemp and CBD testing laboratory network. The unusually large raise for a lab also will help

California cannabis testing lab raises $22.6 million for expansion is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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more info, George Scorsis

September 17, 2019
 

A survey of Ohio’s registered medical marijuana cardholders found that the price of MMJ remains prohibitively expensive and it’s difficult to buy. According to the Ohio State University’s Drug Enforcement Policy Center and the nonprofit advocacy group Harm Reduction Ohio, patients said the biggest barriers to purchasing medical cannabis, in order, were: High costs of

Survey: Many Ohio medical cannabis patients ‘very dissatisfied’ with program is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

September 17, 2019
 

Citing noncompliance with Canada's federal cannabis law and regulations, embattled producer CannTrust says it has received a Notice of License Suspension from Health Canada.

CannTrust’s cannabis licenses suspended by Health Canada is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

September 17, 2019
 

Nevada-based GB Sciences, which has been under contract with Louisiana State University to cultivate medical marijuana, sold its 50% ownership stake in GB Sciences Louisiana. The stake will be purchased by Wellcana Plus, a Lafayette, Louisiana-based company which holds the other 50% of the operation, by the end of October, according to a release. The

GB Sciences sells Louisiana medical marijuana company for $32 million is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

September 17, 2019
 

cannabis wine california litigation right to farm

California, like other states, has a Right to Farm Act that is intended to protect agricultural activity, and many counties have their own local right to farm ordinances as well. California’s Right to Farm Act provides:

“No agricultural activity, operation, or facility, or appurtenances thereof, conducted or maintained for commercial purposes, and in a manner consistent with proper and accepted customs and standards, as established and followed by similar agricultural operations in the same locality, shall be or become a nuisance, private or public, due to any changed condition in or about the locality, after it has been in operation for more than three years if it was not a nuisance at the time it began.”

The intent of these types of laws is to protect farmers who use accepted and standard farming practices from nuisance lawsuits in certain circumstances. In California, at the state level, cannabis cultivation is not considered “agricultural” such that it would be eligible for protection under the Right to Farm Act. But in some counties, local ordinances do define cannabis cultivation as agricultural activity, giving cannabis cultivators protection under local right to farm ordinances.

Tensions arise, however, where the standards for things like pesticides are very different for cannabis versus other agricultural products like wine grapes. Many pesticides that are legal for use on vineyards are not legal for use on cannabis. This is when pesticide drift, which refers to the “airborne movement of pesticides from an area of application to any unintended site,” becomes a major issue.

There is case law addressing the issue of pesticide drift in California, and one such relevant case involving a farmer of organic dill whose crop became contaminated through pesticide drift from a nearby brussels sprouts farm, found that the organic dill farmer did have legal recourse against the Brussels sprouts farmer, even though the pesticides were legally applied.

The defendant Brussels sprouts farmer argued that because it had not run afoul of state law, the plaintiff did not have the right to sue. But the court held that the defendant could in fact be held liable for tainting the plaintiff’s organic crops. The defendant of course argued that this would “impose a serious burden and concern to the industry.”

But the issue becomes even more sensitive when 1) cannabis cultivators are held to extremely high standards in terms of pesticide restrictions and 2) they are operating near vineyards that have been in the same location, using the same accepted best practices for pesticide application for many years. Pesticide drift from these vineyards has the potential to taint valuable cannabis crops rendering them unviable.

And this is exactly what is happening in some areas like Santa Barbara County. In June, the operators of the Fiddlestix Vineyard in the Santa Rita Hills learned that the fungicide they had been spraying on their grapes for decades could be drifting onto a nearby cannabis farm. The vineyard has now started using a “more expensive and far less effective spray on the grapevines that are nearest to the cannabis farm” while the county investigates. Some vineyard owners have complained that Santa Barbara County in particular has been “too permissive” toward cannabis cultivation operators.

Ultimately, in counties that are licensing cannabis cultivators, growers of all sorts of agricultural products will need to learn to coexist. But the issue of pesticide drift and the implications of right to farm laws seem to be more issues in a long list that regulators didn’t adequately anticipate at the outset of regulation. Our hope is that these disputes will resolve amicably, and we will be following them closely.


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George Scorsis

September 16, 2019
 

In the wake of a nationwide epidemic of illnesses associated with vaping, California Gov. Gavin Newsom on Monday signed an executive order launching a new crackdown on the burgeoning industry, both for tobacco-related companies and those in the cannabis industry. The move appears to be the first state regulatory backlash against vaping that includes the cannabis

California governor issues executive order on vaping, says it’s an e-cigarette and marijuana problem is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

September 16, 2019
 

New York Gov. Andrew Cuomo is pushing to enact a statewide ban on the sale of flavored e-cigarettes amid growing health concerns connected to nicotine and marijuana vaping. New York would be the second state after Michigan to take such action. Cuomo announced Sunday that the state health commissioner would be making a recommendation this

New York move to ban flavored e-cigs spurs cannabis vape concerns is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

September 16, 2019
 
Cannabis New September 6 2019 - Halo Labs, RavenQuest, Valens GroWorks Corp, lower One
Halo Labs Inc RavenQuest BioMed Inc Valens GroWorks Corp Flower One Holdings Inc Nutritional High International Inc MedMen Enterprises Inc Leviathan Cannabis Group Inc Cresco Labs Inc *********************** Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

September 16, 2019
 

idaho cannabis litigation

Regular readers know that we are in the midst of presenting a 50-state series analyzing how each state treats hemp-derived cannabidiol (“Hemp CBD”). Recently we covered Idaho, which we neatly summarized as “probably the worst state in the country to get caught with hemp.” The article explains why this is so in detail.  Among the reasons is that last winter the Idaho State Police seized a shipment of 13,000 pounds of hemp which was being transported across Idaho from Oregon to Colorado. (See here.) The case has received considerable attention from the press and the hemp industry. Indeed, the American Trade Association of Cannabis and Hemp filed amicus briefs in both the federal district court and the Ninth Circuit in support of the owner of the hemp.

The Ninth Circuit sends hemp owner to Idaho state court on the basis of the Younger abstention doctrine.

The seizure led to a federal lawsuit by the owner of the seized load. Big Sky Scientific, LLC v. Jan M. Bennetts, No. 1:19-cv-00040-REB (D. Idaho).  Big Sky sought a declaration that (i) the cargo is industrial hemp under provisions of the 2018 Farm Bill, (ii) hemp is not a controlled substance under federal law, and (iii) Idaho cannot interfere with the interstate transportation of hemp.

Big Sky also quickly moved for a preliminary injunction asking the federal court to compel the Idaho State Police (“ISP”) to return the hemp. Big Sky contended the cargo was deteriorating and losing its value as it sat in ISP’s possession. Meanwhile, ISP filed a state-court complaint in rem for forfeiture of the hemp under Idaho state law.

In considering the motion, the federal district court directed the parties to address “whether the Court has jurisdictional authority to compel the relinquishment of property seized in connection with a state criminal case.” ISP drew upon the Younger abstention doctrine to argue the federal court lacked jurisdiction and ought to abstain from exercising jurisdiction over Big Sky’s request for equitable relief.

The federal court denied the motion for a preliminary injunction and ruled that it need not decide the abstention question. Big Sky appealed the denial to the Ninth Circuit, wherein ISP argued the district court abused its discretion by not abstaining pursuant to Younger.

In a short, unpublished opinion issued on September 4, 2019, the Ninth Circuit agreed with ISP and reversed the district court’s decision not to apply Younger abstention. The decision was based, in part, on ISP’s representation at oral argument that (i) Idaho will immediately move to lift the stay in the in rem forfeiture action, and (ii) the assumption that the Idaho state court would proceed expeditiously with the in rem action, including Big Sky’s challenge to Idaho’s interpretation of the 2018 Farm Bill.

In plain terms: the Ninth Circuit ruled that the federal district court should refrain from exercising jurisdiction over Big Sky’s case because doing so may interfere with the ongoing proceedings in Idaho state court. (Feel free to email me for a copy of the opinion.)

What is Younger abstention?

The Younger abstention doctrine is named after the Supreme Court’s 1971 decision in Younger v. Harris which held that federal courts may not enjoin state court criminal proceedings. At heart the Younger abstention doctrine arises from our system of federalism and its separation of powers. States are independent sovereigns (as are Indian tribes in many respects) and most abstention doctrines proceed from this understanding. Since 1971, federal courts have applied the principles of Younger to proceedings far beyond the criminal context. Generally speaking, the doctrine operates to prevent federal courts from enjoining pending state court proceedings.

The doctrine is controversial in several respects for reasons we won’t get into here. (See Federal Jurisdiction by Erwin Chemerinsky for a thorough analysis). Other abstention doctrines include Colorado River abstention – which is concerned with avoiding duplicative litigation; the Rooker-Feldman doctrine – which concerns federal court review of state court decisions; Pullman abstention – which concerns refraining from deciding questions based on unclear state law; and Burford abstention – which concerns deferring review of complex state administrative procedures.

For now, I’ll briefly explain the elements of Younger abstention and turn to the implications of the Ninth Circuit’s decision. As the Court explained, “Younger abstention is appropriate when (1) there is an ongoing state judicial proceeding; (2) the proceeding implicates important state interests; (3) there is an adequate opportunity in the state proceedings to raise constitutional challenges; and (4) the requested relief seeks to enjoin or has the practical effect of enjoining the ongoing state judicial proceeding.”

In Big Sky, the Ninth Circuit found these elements met because of the pending in rem forfeiture proceeding in Idaho state court in which Big Sky may raise its federal claims. Although the state courts had stayed that action, ISP’s promise to move to lift that stay, and the “assumption” the state court would proceed to resolve that action expeditiously and permit Big Sky to raise its constitutional challenges led the Ninth Circuit to conclude Younger abstention was appropriate.

What are the implications of the Ninth Circuit’s ruling in Big Sky for shipping Hemp-CBD across state lines?

The Ninth Circuit’s decision has several immediate consequences relevant to anyone operating in the Hemp-CBD marketplace:

1)            Big Sky (and others) who have Hemp-CBD shipments seized in Idaho may ending up winding their way through state court and the state court appellate process (this is less than ideal);

2)            Other states that take a dim view of hemp (we are looking at you, South Dakota) may see this as a template for seizing Hemp-CBD shipments and keeping related proceedings out of federal court (though South Dakota is in the Eighth Circuit so not bound to follow the Ninth);

3)            Trucking and shipping companies may decline to offer Hemp-CBD shipping services because of the potential of seizure;

4)            The risk and costs of shipping Hemp-CBD ought to be addressed in your contracts – as we have said before – and you should consider spelling shipping routes to lessen the risk of seizure;

5)            Ensure that your Hemp-CBD shipments and shippers have the proper manifests and other chain-of-custody documents; and

6)            Finally, if one of your Hemp-CBD shipments is seized by law enforcement, act quickly with your litigation attorneys to commence a federal court action and be prepared to make sophisticated jurisdictional arguments.

For now, it may be best to stay away from Idaho.


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George Scorsis Aphria

September 13, 2019
 

A subsidiary of multinational pharmaceutical giant Teva Pharmaceuticals signed a deal with Israeli medical marijuana company Canndoc to distribute its products to pharma customers that include pharmacies and hospitals. While the deal is not exclusively for products in Israel, it will start there and move to other countries once it becomes logistically legal to do

Teva Israeli subsidiary signs cannabis distribution deal is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

September 13, 2019
 
Todd Harrison(CIO, CB1 Capital Management) on the price on Cannabis
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George Scorsis

September 13, 2019
 

The Denver Police Department warned Colorado marijuana businesses that it’s seeing an increase in burglaries at dispensaries and is encouraging operators to report any suspicious activities. In an online bulletin, the department wrote, “Dear Marijuana Industry, (the DPD) is seeing an uptick in burglaries at marijuana facilities.” The letter outlined several suggested steps, both proactive

Denver police warn cannabis businesses of ‘uptick in burglaries’ is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

September 13, 2019
 

The Denver Police Department warned Colorado cannabis businesses that it’s seeing an increase in burglaries at dispensaries and is encouraging operators to report any suspicious activities. In an online bulletin, the department wrote, “Dear Marijuana Industry, (the DPD) is seeing an uptick in burglaries at marijuana facilities.” The letter outlined several suggested steps, both proactive

Denver police warn marijuana businesses of ‘uptick in burglaries’ is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

more information, George Scorsis

September 13, 2019
 

Cannabis stores in Oregon began taking vaping products off their shelves and offering returns on previously purchased vape pens. The move comes amid a nationwide scare over severe lung illnesses and deaths tied to electronic cigarettes, the latest sign that the health-care scare is having an impact on the vaporizer industry. Vaping sales have pulled

Oregon marijuana retailers pulling vaping products in wake of health scare is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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more info, George Scorsis

September 13, 2019
 

Canada’s largest medical cannabis company by revenue and production is planning to make a “significant” splash in the near future on another point of entry in the U.S. market, one of the company’s executives said in an interview. Aurora, based in Edmonton, Alberta, already has arms-length involvement in the United States through Australis Capital, a

Aurora plots ‘significant’ US marijuana entry in ‘very short period’ is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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more info, George Scorsis

September 13, 2019
 

Sales fall for recreational marijuana vaping products as a health scare hits the mainstream media, a California marijuana banking bill dies but could return in 2020, a Massachusetts mayor is deposed for allegedly ripping off MJ firms – and more of the week’s top cannabis business news. Vaping crisis The pulmonary illness epidemic related to

Cannabis vape crisis, CA banking bill fails, public corruption in MA & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Aphria

September 12, 2019
 
CB1 Capitol, Ravenquest Biomed (CSE:RQB) - Midas Letter RAW 253
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

September 12, 2019
 
TruTrace Technologies (CNSX:TTT) CEO Robert Galarza
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George Scorsis

September 12, 2019
 

Cannabis testing labs around the country are adding more specific tests targeting an additive that’s been linked to the string of recent illnesses and deaths health authorities say are related to marijuana and tobacco vaping devices. Although no definitive cause of the vaping-related issues has been identified, early reports have targeted the additive vitamin E

Marijuana labs adding tests targeting vitamin E acetate in response to vaping health scare is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

September 12, 2019
 
Cannabis News September 12 2019 - Aurora, Valens, 48North, Body and Mind Inc,Bhang Inc Choom , TGOD
For Cannabis News Updates - https://midasletter.com/cannabis-daily/ Aurora Cannabis Inc Valens GroWorks Corp 48North Cannabis Corp Body and Mind Inc Bhang Inc Choom Holdings The Green Organic Dutchman Holdings Ltd Namaste Technologies Inc Next Green Wave Holdings Inc ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

September 11, 2019
 
BONE Structure  -  Founder & CEO, Mark A Bovet
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George Scorsis website

September 11, 2019
 
Coperbank Resources (CSE:CBK) CEO, Gianni Kovaccevic
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George Scorsis

September 10, 2019
 
Charting Man Dan technical analysis - Gold, Interest Rates - WEED, APHA, MMEN, OH
To see more analysis from Dan visit https://www.chartguys.com/ ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

September 09, 2019
 

A cannabis industry trade group in Washington state on Monday proposed legislation to fund a social equity program that would help remove barriers to capital for minority business owners and would eliminate a residency requirement for potential investors in the market. The Washington CannaBusiness Association (WACA) put forward the Cannabis Capital Equity Act, which would be supported

Washington state marijuana trade group proposes capital equity fund is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

September 09, 2019
 
Faircourt Fund Manager, The Future of Cannabis with Alessandro Bruno - Midas Letter 249
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

September 08, 2019
 

illinois hemp cannabis

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA. This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday we will summarize a new state in alphabetical order. So far, we’ve covered Alabama, Alaska,  Arizona,  ArkansasCaliforniaColoradoConnecticutDelawareFlorida, GeorgiaHawaii and Idaho. Today we turn to Illinois.

Overview. Since 2016, Illinois has limited the cultivation of industrial hemp by the Illinois Department of Agriculture (“IDA”) and institutions of higher learning for research purposes only. However, on August 26, 2018, Governor Bruce Rauner signed SB 2298, which expanded the state’s industrial hemp regulations to cover commercial activity. SB 2298 updated Illinois’ industrial hemp laws to allow individuals and entities to cultivate hemp by registering with the IDA and removed industrial hemp from the definition of cannabis.

Earlier this year, the IDA adopted temporary rules under SB 2298. Under the rules, “Industrial Hemp” means

the plant Cannabis sativa L. and any part of that plant, whether growing or not, with a delta- tetrahydorcannabinol (THC) concentration of not more than 0.3% on a dry weight basis that has been cultivated under a license issued under the Act or is otherwise lawfully present in this State and includes any intermediate or finished product made or derived from industrial hemp.

Production of Hemp and Hemp-CBD Products. Pursuant to Illinois law, only licensed growers and processors may sell or transfer living hemp plants or viable hemp seeds to (1) other IDA licensees, or (2) others outside of Illinois so long as the sale is authorized by a state agency in the destination state.

The IDA also permits the sale and transfer of “stripped stalks, fiber, dried roots, nonviable seeds, seed oils, floral and plant extracts (excluding THC in excess of 0.3%) and other marketable hemp products to members of the general public, both within and outside the State of Illinois.” Note that neither the bill nor the IDA rules define “marketable hemp products.”

However, Section 25 of SB 2298 provides the following provision:

Nothing in this Act shall be construed to authorize any person to violate federal rules, regulations, or laws. If any part of this Act conflicts with a provision of the federal laws regarding industrial hemp, the federal provisions shall control to the extent of the conflict.

Accordingly, because there is no permissive language that allows for Hemp-CBD products and because of Section 25, the sale of these products is illegal at worst, and unregulated at best.

In addition, only registered processors can process Hemp-CBD grown under the program. However, nothing in SB 2298 nor the IDA rules expressly prohibit the introduction of hemp products lawfully processed under another state plan.

Possession. Pursuant to SB 2298, “[n]othing in this Act shall alter the legality of hemp or hemp products that are presently legal to possess or own.” Consequently, the possession of Hemp-CBD products seems limited to those approved by the FDA or that meet the standards set by IDA rules (i.e., containing no more than 0.3% THC and that satisfy other requirements).

Transportation. Only a licensed grower or registered processors may transport hemp so long as the hemp contains no more than 0.3% THC. Note that the IDA rules state that the transportation of Hemp-CBD products is not restricted after sold to a member of the public.

Marketing or Advertising Restrictions. As of the date of this post, the state has not enacted regulations governing the marketing or advertising of Hemp-CBD products.

Bottom Line. Although the production and sale of Hemp-CBD products isn’t clearly authorized or restricted, Illinois is authorizing the cultivation of the crop and has not taken any enforcement actions against these products. For these reasons, Illinois should be considered a hemp friendly state. That being said, there is a possibility that things may change upon the adoption of final rules by IDA.


[Read More ...]

George Scorsis

September 07, 2019
 

CBD is a fascinating phytocannabinoid with many qualities. Here we reveal 10 super unique cannabidiol oil and CBD facts you may be surprised to learn about.

It seems that CBD is everywhere you look these days. Health food stores, farmers markets, yoga studios, and more have begun to offer CBD products to their customers. 

Media and news outlets have also caught the CBD wave and have helped spread the word about the all natural cannabinoid and its benefits.

Still, there is probably so much that you don’t know about CBD, even with all the CBD facts that are out there. It is important to get your CBD information from a source you trust. 

Cannabis and hemp have had a long, complicated history, but only over the last decade or so has CBD oil from hemp surged in popularity as a dietary supplement to promote wellness. CBD, or cannabidiol, is an all natural cannabinoid found in cannabis that supports one of the body’s largest self regulatory systems and promotes balance so that you can feel and perform your best each day.

Looking to learn the truth about CBD? Here, we reveal the top 10 most unique CBD facts.

1. CBD Can Come From Both Hemp and Marijuana

With so much misinformation on the internet about CBD, a common misconception is that CBD only comes from one type of cannabis plant. In reality, CBD is found throughout the stalks, flowers, stems, leaves, and seeds of both hemp and marijuana.

One of the most unknown CBD facts is that hemp and marijuana can both be sources of CBD. However, marijuana is naturally lower in CBD than THC, or tetrahydrocannabinol, the intoxicating compound known for its euphoric properties. In hemp, CBD dominates the plant’s makeup, and THC is only present in trace amounts. 

Out of all of our CBD facts, why is this one so important? Hemp’s naturally higher levels of CBD make it an ideal source for CBD extract products like CBD oil. Hemp cultivars also grow much faster than marijuana, for a more environmentally sustainable and conscious CBD product.

With that said, there are thousands of unique varieties of hemp, and not all of these hemp strains contain the same percentages of CBD. The cultivars of hemp used to create CBD oil, in general, contain significantly higher concentrations of CBD than others used mostly for fiber.

Cannabidiol oil facts

2. CBD is One of Over 100 Cannabis Derived Cannabinoids

CBD rightfully garners much of the attention in the cannabis industry due to the many natural CBD benefits. But, did you know that it is just one of more than 100 cannabinoids scientists have so far discovered in the cannabis plant?

Along with THC, CBD is the most prominent of the many cannabinoids found in cannabis. Outside of these two well researched compounds, however, are dozens more cannabinoids present at low levels. Like CBD, these cannabinoids interact with the body’s native system and elicit various natural effects. 

Some of the more well known cannabis derived cannabinoids, or phytocannabinoids, that are found in cannabis plants include cannabichromene (CBC), cannabinol (CBN), cannabigerol (CBG), tetrahydrocannabivarin (THCV), cannabidivarin (CBDV), delta-8-tetrahydrocannabinol (Δ8-THC), cannabidiolic acid (CBDA), and tetrahydrocannabinolic acid (THCA).

While researchers have identified many cannabinoids, they have primarily focused their efforts on studying and understanding how CBD and THC influence the body’s systems. Many studies have explored CBD oil effects and CBD oil benefits, as scientists look to learn more about potential CBD hemp oil uses.

3. Cannabis Growers Can Breed High CBD Plants

Not all cannabis contains the same amount of cannabidiol. There are now thousands of unique cannabis strains available to consumers. On a chemical level, these strains differ in their make up of their cannabinoid content, providing various CBD concentration options.

Thanks to crossbreeding, cannabis growers are able to cultivate cannabis plants that contain high levels of CBD.

These high CBD strains, also referred to as CBD rich strains, have become a popular choice for anyone interested in the natural effects of cannabinoids while maintaining a clear head.

Want more CBD facts? Here’s an interesting one – when Medical Marijuana, Inc. was searching for the perfect cannabis seed to introduce CBD oil products to the market, our experts first tested a total of 3,000 possible varieties to find the perfect hemp cultivar that contained the optimum level of cannabidiol.

4. CBD Actually Is “Psychoactive”

Although there are many “CBD facts” floating around, some of them can be extremely misleading. CBD is regularly classified as a “non-psychoactive” compound nearly everywhere it is mentioned.

What people mean when they describe CBD in such a way is that it doesn’t elicit any temporary euphoric effects. Here are the hard facts regarding this CBD truth: CBD is non-intoxicating and has shown to have no serious side effects, which is why many feel comfortable to buy CBD oil for all of their family members, including children and seniors.

While it is correct to say that CBD won’t cause a “high,” it is incorrect to describe it as non-psychoactive. The term “non-psychoactive” means that a substance does not affect the mind, which isn’t an accurate description of CBD.

CBD is often mischaracterized in sources as ‘non-psychoactive’ or ‘non-psychotropic’ when it is compared to THC.

The truth about CBD is that it has demonstrated an influence on one of the body’s major native regulatory networks, the endocannabinoid system. CBD’s interaction with the endocannabinoid system does alter the release of neurotransmitters in the brain and elsewhere. In doing so, CBD encourages balance in the body and its functions.

Therefore, rather than CBD being labeled as non-psychoactive, a more accurate description would be that CBD is ‘non-intoxicating,’ because it does not elicit any euphoric effects.

This is one of the most important CBD facts you learn today: While CBD is non-intoxicating and won’t cause impairment, it is psychoactive.

cbd oil facts

5. CBD is CBD, No Matter the Source

No matter where it comes from, CBD is CBD. Some cannabinoid users mistakenly think that CBD from marijuana is somehow more potent than CBD derived from hemp. On a molecular level, CBD from hemp is the same as CBD from marijuana.

Researcher Franjo Grotenhermen of the International Association for Cannabinoid Medicines has been quoted saying, “CBD is CBD. The human body does not care where the molecule comes from.”

An easy way to understand this CBD fact is to consider vitamin C. No matter whether your body absorbs it through an orange or a lemon, it will treat and use the water soluble vitamin the same way.

While it is true that the percentage of CBD in hemp plants by dry weight is generally lower than the percentage of CBD in some specially bred marijuana plants, once CBD oil is extracted from the plant, this difference becomes negligible. Whether it’s CBD cannabis oil from marijuana or CBD hemp oil, CBD is CBD!

6. CBD May Help You Manage a Cannabinoid Deficiency

A relatively new theory speculates that supplementing the body with plant-based cannabinoids like CBD could possibly be beneficial for addressing a nutritional deficiency.

This theory, called the clinical endocannabinoid deficiency syndrome (CECD), attempts to explain why in some cases the endocannabinoid system is unable to properly keep the body balanced. It proposes that a deficiency in cannabinoids can lead to a dysfunction in the endocannabinoid system. The theory was initially introduced in 2001 by EB Russo.

Americans may be at a greater risk for being depleted of cannabinoids since cannabis, both marijuana and hemp, were prohibited in the 1930s. Eliminating hemp from the diet may have contributed to cannabinoid deficiency issues.

Adding CBD oil to your diet could, the theory suggests, augment the body’s own cannabinoids and help the endocannabinoid system effectively balance the body.

7. CBD’s Benefits Can Be Maximized with Hemp’s Other Phytochemicals

Of all the CBD facts, this one may surprise you the most. Taking CBD with all the other natural compounds found in cannabis may enhance the compound’s effects.

The entourage effect, first introduced in 1998 by renowned researchers Raphael Mechoulam and S. Ben-Shabat, suggests that the sum total of all the chemical compounds in cannabis — including CBD and the other hundreds of plant compounds — act synergistically to provide a more powerful effect.

In other words, these scientists and others believe that consuming full spectrum CBD oil offers greater natural wellness properties than taking isolated CBD compounds alone. Learn more about the effects of CBD isolate here.

Hemp contains more than just CBD. It is made up of 400-plus active compounds, including cannabinoids, flavonoids, and terpenes, as well as essential vitamins and minerals, fatty acids, fiber, protein, and chlorophyll.

While CBD on its own has demonstrated undeniable natural benefits, the entourage effect could mean that the compound’s benefits can be maximized when consumed with the other natural compounds found in cannabis. If you’re still worried about taking full spectrum CBD there are many CBD isolate options available.

8. CBD is Beneficial, Even if You’re Healthy

Many people first incorporate CBD into their lives once facing health problems, but CBD offers botanical properties that are beneficial for anyone interested in promoting wellness.

CBD’s stimulation and support of the endocannabinoid system may help it continue to run efficiently.

Hemp derived CBD oil (or CBD hemp oil) also supports the maintenance of a complete and healthy diet. When discussing CBD oil facts, it’s impossible to not mention that in addition to CBD and other trace cannabinoids, CBD oil is also a natural source of many vitamins and minerals, including B complex vitamins, vitamin C, vitamin E, calcium, and magnesium. CBD oil also contains protein, fatty acids, and other dietary nutrients critical for keeping your body running at its best.

For healthy people, supplementing the endocannabinoid system, the largest self regulatory system, with plant based cannabinoids like CBD is a potential way to maintain optimal health. The balancing effects of CBD combined with the nutritional content of hemp oil will help ensure your body is given what it needs for peak performance each day.

9. CBD Can Also Be Beneficial for Your Pet

What does CBD do for our pets? Like us, many of our loved pets can benefit from the natural balancing properties of CBD. All mammals, including dogs, cats, horses, and more, have an endocannabinoid system, the bodily system with which cannabinoids interact.

A growing number of pet owners are discovering how adding CBD oil to their pets’ diets can be a natural alternative to promote well being in their pets.

CBD’s support of the endocannabinoid system has shown to promote pets’ cardiovascular function, support healthy joints, and promote neurological health and emotional behavior. Also, for many pet owners, hemp CBD oil’s nutritional profile complements the dietary requirements of their animal.

Today, you can buy CBD oil products specifically designed for pets, including CBD oils, CBD liquids, and CBD treats. Interested in trying CBD for your pets but still not sure where to start? Check out our CBD for Pets Buyer’s Guide.

10. CBD is Federally Legal, Provided it Comes From Hemp

CBD, provided it is derived from hemp, is federally legal in the United States. While a Ninth Circuit Court of Appeals ruling had allowed hemp CBD and hemp CBD oil manufacturers to operate for years without interference, the passing of the 2018 Farm Bill in late December eliminated any confusion of hemp CBD’s legal status.

The hemp provision in the new Farm Bill allows hemp to be legally “cultivated for any use,” including the production and extraction of CBD. It also means that you can legally use and buy CBD oil, without a doctor’s recommendation or prescription.

For those curious about cannabinoids and CBD oil facts, this is a big deal. While states can regulate hemp and hemp CBD as they choose, the new federal law will make many consumers familiar with CBD oil benefits more willing to try the variety of CBD oil products that are available to buy. Nearly everyone in the country can legally shop for CBD oil products and have their order delivered right to their doorstep.

Buy CBD oil

Learn Even More About CBD

There is always more to learn about cannabidiol (CBD) and how it can help the endocannabinoid system regulate the body’s homeostasis. Read our overview of CBD for more cannabidiol facts

To start incorporating the natural wellness benefits of CBD oil products into your routine, visit the Medical Marijuana, Inc. online shop today. If you’re interested in taking CBD but aren’t sure where to get started, our CBD Oil Buyer’s Guide can help. Want to know what Medical Marijuana, Inc. customers have to say about our products? See our CBD oil reviews

References:

  1. Russo, E.B. (2004, Feb-Apr). Clinical endocannabinoid deficiency (CECD): can this concept explain therapeutic benefits of cannabis in migraine, fibromyalgia, irritable bowel syndrome and other treatment-resistant conditions? Neuro Endocrinology Letters, 25(1-2), 31-9.
  2. Russo, E.B. (2017, March). Cannabidiol claims and misconceptions. Trends in Pharmacological Sciences, 38(3), 198-201.

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George Scorsis Aphria

September 06, 2019
 
Copper Bank (CBK) Political Risks & Cannabis Market Analysis  - Midas Letter RAW 248
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

September 06, 2019
 

A Mississippi group advocating for medical marijuana legalization in the Deep Southern state turned in more than 105,000 signatures to get a free market-oriented initiative on the ballot next year. Mississippians for Compassionate Care submitted the signatures to the secretary of state’s office, which now must review and certify the signatures. The initiative has these main

Business-friendly medical cannabis initiative moves forward in Mississippi is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

September 06, 2019
 

The mayor of Fall River, Massachusetts, was arrested on charges he conspired to extort $600,000 from at least four business owners in exchange for official letters needed to obtain a license to set up a marijuana business, according to federal authorities

Massachusetts mayor charged with extorting cannabis businesses is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

September 06, 2019
 

Concerns over marijuana vaping-related illnesses continue to mount, as U.S. health officials on Friday again urged people to stop vaping until they figure out why some are coming down with serious breathing illnesses

Deaths, illnesses related to vaping cannabis on the rise, health authorities say is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

September 06, 2019
 

Scandal-plagued CannTrust, an Ontario-based cannabis grower, laid off 180 employees, or 20% of its workforce. “We have made the extremely difficult decision to restructure our workforce to reflect the current requirements of our business,” Robert Marcovitch, CannTrust’s interim CEO said in a news release. The layoffs are expected to save the company about 9 million Canadian

Embattled Canadian marijuana firm CannTrust lays off 180 is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional info, George Scorsis

September 06, 2019
 
Cannabis News September 06 2019 - CannTrust, Trulieve, Canopy Rivers, Eve & Co, High Tide,Phivida
CannTrust Holdings Inc Trulieve Cannabis Corp Canopy Rivers Inc Eve & Co Incorporated High Tide Inc Phivida Holdings Inc Planet 13 Holdings Inc ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

addiitional information, George Scorsis

September 06, 2019
 

Police in Sacramento, California, are looking into roughly 10 break-ins at local marijuana shops in the past month, with the possibility the incidents might be connected. Such robberies apparently have escalated, according to West Sacramento TV station KOVR. Robberies have always been a problem for marijuana retailers, many of which operate on a cash-only basis

Police investigating rash of cannabis retail robberies in California capital is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

September 06, 2019
 

international law cannabis uruguay single convention

Yesterday, I came across an article in this week’s Economist titled Going to Pot (*sigh*). The premise of this article is that “a global revolution in attitudes towards cannabis is under way” and it explains how countries in many parts of the world have begun to undertake cannabis reforms in varying degrees. This includes everything from wholesale federal legalization (i.e. Canada, Uruguay) to emerging medical cannabis programs (e.g. South Korea, Germany, Thailand, Zimbabwe). The article covers what these changes mean in a commercial sense, but also their implications under international law.

The global reconsideration of cannabis is a recent phenomenon, but only relatively. In August of last year, I explained that the United Nations (UN) itself had finally begun to reconsider the status of cannabis under international law, including under the Single Convention on Narcotic Drugs of 1961 and related treaties (“Single Convention”). I also analyzed, this February, the significant and long overdue World Health Organization recommendations related to the treatment of cannabis under international law. What the UN does with those recommendations is still an open question, but in a certain sense it doesn’t matter: countries are moving ahead.

In keeping with these changes, our law firm has begun doing more and more international advising with respect to cannabis in the last few years. Broadly, we divide this work into three classes:

  1. Importers and exporters of hemp (We have clients doing this. There are no real treaty issues; it’s more about domestic law and customs);
  2. Importers and exporters of medical cannabis (We have clients looking at this. Treaty issues are generally navigable, given the Single Convention allowances on “medical and scientific” cannabis);
  3. Fully legalized jurisdictions, à la Canada (We represent one sovereign looking at this. It is “illegal” and really interesting).

So what happens under international law when a country legalizes cannabis outright? As a practical matter, not much. Public international law is decentralized, unenforceable, unpoliced and frequently broken. States are “immortal” and cannot be sued. This means that neither Canada nor Uruguay will be hauled before a court or tribunal for admitted violations of the Single Convention. The same will be true of Mexico when it legalizes cannabis later this year. Same for Luxembourg. And Switzerland. Etc. At most, these states will be subject to diplomatic moralizing and criticism, mostly out of sight.

That isn’t to say that states do not have options with respect to the Single Convention and cannabis. Below are three that are commonly discussed.

Withdraw from the Treaties

Under international law, a state may withdraw from a treaty in conformance with the provisions of the treaty itself (if the agreement permits withdrawal) or with the consent of all parties. The Single Convention permits withdrawal, at Article 46. And there is precedent for withdrawal: Bolivia withdrew from the Single Convention in 2012 when it wanted to legalize the chewing of coca leaves. It then rejoined with a “reservation” as to coca leaves in 2013.

In the context of cannabis, Canada seems to have discussed the withdrawal option in detail. Ultimately, it appears that Canada will not withdraw, on the reasoning that its contravention of the treaty is principled (cannabis prohibition is harmful), and that withdrawal would be an excessive response given the all the other drugs included in the Single Convention. That may seem unconvincing, but options here are few.

Inter se Agreement

Canada and other scofflaws could also form an “inter se” (between themselves) agreement, allowing those states to modify existing drug treaty obligations with respect to cannabis.

The inter se option is wonky territory, even for international law. Based in Article 41 of the 1969 Vienna Convention on the Law of Treaties, it was designed to allow changes without consensus while supporting stable treaty regimes. This option would require that the inter se agreement include a clear commitment to the Single Convention’s original aim; that is, to promote the health and welfare of humankind (as to cannabis, here) and to maintain the original treaty obligations vis-à-vis countries left behind. That doesn’t seem terribly challenging.

So, will an inter se agreement happen anytime soon in the context of cannabis? Probably not, for the simple reason that not enough countries have legalized cannabis outright to create a major constituency. Check back in ten years.

Violate International Law

This is what countries have begun to do, and will continue to do, to the point where the Single Convention is broadly undermined. The scenario is roughly analogous to what U.S. states have done to the domestic Controlled Substances Act as to “marijuana.” It will be an even slower process, however, given the prohibitionist posture of global heavies like China and Russia on cannabis, and the glacial development of international law generally. It will take decades and decades, in fact.

The Economist is correct that a global revolution in attitudes towards cannabis is under way. The revolution of laws, however, will be slower. Until then, and as the poet once said, “to live outside the law you must be honest.” Canada, Uruguay and every other country making a move on cannabis knows exactly how that feels.


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additional info, George Scorsis

September 06, 2019
 

Los Angeles opens the next marijuana licensing round for 100 retail permits, Missouri growers and dispensary licensee applicants face fierce competition, Illinois restricts cannabis electricity and water use for MJ growers – and more of the week’s top cannabis business news. 100 MJ retail permits up for grabs in L.A. The rush is on for another

Week in Review: New L.A. cannabis retail permit round, MMJ license race hot in MO, IL restricts electricity/water use for MJ growers & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

September 06, 2019
 

Business prospects are permitted at the discretion of legislators and regulators around the world. So anyone interested in capitalizing on the overseas cannabis industry must pay close attention to those legal and regulatory developments—and perhaps even participate in crafting the rules. Here are seven countries to keep an eye on as they roll out new

Global Cannabis: Seven Nations Where Change is on the Horizon is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional information, George Scorsis

September 06, 2019
 

There seven businesses are worth watching at they attempt to capitalize on the numerous business opportunities in the global marijuana market for entrepreneurs and companies with ambition. And check mjbizdaily.com/intl often for new updates. Looking for where else the action is taking place in the global cannabis market? Here is our list of seven countries to keep

Global Cannabis: Seven Global Players Worth Watching is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

September 05, 2019
 

We’ve all heard the idiom “mind your p's and q's.” But in the business world, p's and q's speaks to how we drive revenue: price and quantity.

Price, quantity key metrics for cannabis sector’s financial health is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

September 05, 2019
 

The marijuana industry has spent about $2 million so far this year lobbying for federal cannabis reform in Washington DC, and more than half that money has come from individual MJ-related companies. Businesses and lobbying organizations said the investments are critical in helping lawmakers and federal regulators understand the importance of cannabis-related issues. They are

Curaleaf, Surterra among big spenders on federal marijuana lobbying is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

September 04, 2019
 
Bruce Linton, Canaccord Genuity Analyst & Faircourt Asset Fund Manager - Midas Letter RAW 247
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

September 04, 2019
 

Former New Zealand Prime Minister Helen Clark is supporting the nation’s binding 2020 referendum on ending cannabis prohibition. In an opinion piece published in the United Kingdom’s Guardian newspaper titled “Cannabis prohibition doesn’t work anywhere; It’s New Zealand’s turn to legalize it,” Clark urged voters to make New Zealand the first Group of 20 nation

New Zealand’s marijuana legalization referendum picks up major backer is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional info, George Scorsis

September 04, 2019
 
Khiron Life Sciences (CVE:KHRN) Expanded Retail Presence and Latin American Growth
Khiron Life Sciences Corp (TSX-V:KHRN) (OTCQB:KHRNF) joins Midas Letter on Skype from his office in Bogota, Colombia to discuss his outlook for the company in the next few quarters. Khiron's revenue has been growing, reporting an adjusted EBITDA of 7.7 million, and will expand its income statement as the company will begin medical cannabis sales within the next six months. Patients living in Colombia should be able to start enjoying shipments of Khiron medical products before the end of the calendar year pending just a couple more regulatory hurdles. Khiron's Kuida cosmeceutical product line is also increasing its distribution across different retail networks. Most recently, Khiron's 50/50 joint-venture with Dixie Brands Inc (CSE:DIXI.U) (OTCQX:DXBRF) received conditional TSX-Venture exchange approval allowing for the commercialization of the Kuida products in the U.S. market. Khiron have advantages in the cannabis market with the lower-cost of running a cannabis company based out of Colombia coupled with the company's progress in Europe and the rest of Latin American like Mexico, Brazil and Argentina. For these reasons, the CEO sees Khiron exceeding the expectations of a consensus of six different analysts indicating that the company's projected profit in 2021 will be at least $6.1 million. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

September 04, 2019
 

washington hemp cbd food ban

If you’ve been following the hemp scene in Washington state, you know it’s been a bit of a roller coaster. The latest “drop” comes in the form of an August 1 memo from the Washington State Department of Agriculture (“WSDA”) titled Restrictions on the use of hemp CBD as a food ingredient. According to the memo, Washington is following the lead of many other states, most notably California,  in prohibiting the use of hemp-derived CBD (“Hemp-CBD”) in foods and beverages.

Washington is essentially implementing the Food and Drug Administration’s (“FDA”) policy on Hemp-CBD as a food ingredient. Last year, the FDA approved the drug Epidiolex. Epidiolex contains CBD. The Food, Drug and Cosmetics Act (“FDCA”) and FDA regulations generally prohibit an article that is approved or investigated as a drug from being an ingredient in food or dietary supplements, unless that article was marketed as a food or dietary supplement prior to being investigated as a drug. The FDA has concluded that Hemp-CBD was not marketed as a food or dietary supplement before the investigation of Epidiolex and therefore the FDA’s position is that Hemp-CBD cannot be added to food or dietary supplements.

According to the WSDA, Hemp-CBD is not approved as a food ingredient. Note that the WSDA’s memo does not apply to Washington’s regulated marijuana market. Licensed retailers are still free to sell CBD-infused edibles derived from marijuana, so long as those products were manufactured by a licensed processor. Washington processors are allowed to add Hemp-CBD to marijuana products so consumers, over the age of twenty-one, can still access Hemp-CBD by going to marijuana retailers. Additionally, the WSDA has stated that some parts of the hemp plant, specifically hulled hemp seeds, hemp seed protein powder and hemp seed oil are allowed for use in food. Why? Because the FDA has determined that these components are Generally Recognized as Safe (“GRAS”) for use in food. Notwithstanding these marijuana-food products containing CBD and food items containing these GRAS components, the WSDA is prohibiting all hemp in food:

Other parts of the hemp plant, including CBD, cannot be used as a food ingredient under a Washington State Food Processor License. Foods containing unapproved parts of the hemp plant may not be distributed in Washington State under a Washington State Food Storage Warehouse License.

This development from the WSDA was somewhat unexpected in light of Senate Bill 5276, which went into effect in April and overhauled Washington’s hemp program in light of the 2018 Farm Bill.  Section 4 of SB 5276 provides:

“[t]he whole hemp plant may be used as food. The [WSDA] shall regulate the processing of hemp for food products, that are allowable under federal law, [and] may adopt rules as necessary to properly regulate the processing of hemp for food products including, but not limited to, establishing standards for creating hemp extracts used for food.”

In addition, SB 5276 Section 14 struck RCW 15.120.020’s language which previously prohibited processing hemp, except for hemp seeds, into any consumable good.  This is not to say that the WSDA doesn’t have authority to follow the FDA’s position on hemp, it just seemed as if the legislature had set the WSDA up to allow for Hemp-CBD in a whole host of products, including food.

In terms of enforcement, it does appear that the WSDA is going to ramp out any aggressive efforts against Hemp-CBD right away:

Recognizing that these recent changes in law may have caused some confusion in the manufactured-food industry, WSDA has been reaching out to the industry so they can take appropriate actions, such as removing CBD ingredients from their products or discontinuing distribution of CBD-containing food products in the state. WSDA is committed to working with our food industry partners during this transition.

Steve Fuller, director of the WSDA’s Food Safety and Consumer Services division told Ben Adlin of Leafly that he prefers to focus enforcement efforts on “outreach and education,” optimistically stating that “[a]s processors and distributors learn that this is not legal either federally or within the state, most of them will do the right thing and figure out a way to come into compliance around that.”
If the outreach and education method doesn’t work, we expect to see WSDA partnering with cities and counties to seize Hemp-CBD food products and potentially even shut down non-compliant businesses. It’s worth noting that King County’s Food Protection Program weighed in on Hemp-CBD in food on August 30:

Recently there has been interest from food establishment operators in selling food and beverage products with industrial hemp and its derivatives such as cannabidiol, more commonly known as CBD. Federal and State laws do not permit the manufacture and retail sales of CBD as a food ingredient in foods and beverages for sale in retail food establishments.

Therefore, in King County, the addition of CBD to food and beverages is prohibited until further guidance and approval by the U.S. Food and Drug Administration, Washington State Department of Agriculture, and Washington Department of Health.

This means that operators may not add CBD to food or beverages, nor may they obtain products containing CBD for resale in any retail food establishment in King County, including restaurants, coffee shops, cafeterias, grocery stores, or at temporary food events and farmers markets.

So what is the big takeaway here? If you are operating in Washington State, steer clear of Hemp-CBD in foods for now. If the FDA changes its tune, the WSDA will likely follow suit but until then, selling Hemp-CBD food in the Evergreen State is risky.
Finally, if you want some additional information on Hemp-CBD in Washington, check out the September 3 episode of KUOW’s The Record where I spoke to host Bill Radke about whether CBD bars are legal in Washington State.

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George Scorsis

September 02, 2019
 

napa california cannabis

 

Cannabis cultivation and the means for regulating it have been contentious topics in Napa County for some time now. Back in July, proponents of allowing commercial cannabis cultivation in unincorporated Napa County, led by the Napa Valley Cannabis Association, collected enough signatures to qualify for a ballot measure during the March 3, 2020 election.

Following collection of those signatures, the County Board of Supervisors took up the issue on July 23rd. Typically, the Board would have three possible paths forward in such a situation. The Board could: 1) place the measure on the ballot next March, 2) adopt the measure outright, or 3) order a 9111 report to analyze the potential impact of the measure before taking action at a later date.

The County Board of Supervisors issued a 9111 report regarding the cannabis regulation initiative on August 20th in which it analyzed the land use, environmental, fiscal, and other impacts of the proposed initiative. The report detailed some of the negative implications that could result from the initiative, including a purported negative impact on Napa County’s tourism industry “through adverse odor and visual impacts on wineries, restaurants, resorts, and lodging facilities in both incorporated and unincorporated areas of the county.” The report drew analogies to the struggles of Santa Barbara County in regulating cannabis as well.

Aside from the details contained in the 9111 report, opponents of the initiative emphasized that the initiative process was not the proper means for developing cannabis regulations for the county, because the county’s ability to amend the regulations established pursuant to that initiative would be extremely limited. Such amendments could only occur via a ballot vote.

But on August 28th, proponents of commercial cannabis cultivation in the county “announced plans to withdraw their ballot initiative, saying they now prefer regulations they are seeking to be included in an ordinance by the county board of supervisors.”

“Following discussions with industry trade associations, various members of the Napa Board of Supervisors and community, the NVCA and The Committee prefer an ordinance that is a living document, over an initiative process,” Napa Valley Cannabis Association board member Eric Sklar wrote. “An ordinance can be evolved and changed by the Board of Supervisors at any time, whereas approved initiatives can only be changed with a ballot vote.”

Additionally, Sklar described the withdrawal as a “gesture of good faith,” stating, “We support and prefer the ordinance process to collaboratively develop written regulations that will evolve in line with the current and future needs of the community, in a responsible and representative manner.”

Hopefully the withdrawal of the initiative will open the door to productive collaboration on an ordinance that adequately addresses the interests and concerns of all impacted parties. This serves as yet another example of the myriad ways local jurisdictions in California have struggled to regulate cannabis in the wake of legalization, and we’ll be paying close attention to see how one of California’s most recognized agricultural regions decides to move forward.


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george scorsis

September 01, 2019
 

idaho cannabis hemp cbd

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA. This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday we will summarize a new state in alphabetical order. So far, we’ve covered Alabama,  Alaska,  Arizona,  ArkansasCaliforniaColoradoConnecticutDelawareFlorida, Georgia and Hawaii. Today we turn to Idaho.

To put it bluntly, Idaho is probably the worst state in the country to get caught with hemp. Hemp cultivation is not legal, even after the passage of the 2018 Farm Bill. The state legislature considered House Bill 122 earlier this year. It would have allowed for the regulated cultivation of hemp. It stalled out in April.

Long before that bill failed, the Idaho Attorney General issued an informal opinion (see pages 132-134) on the legality of Hemp-CBD in 2015. He concluded that in almost all cases, the possession of any form of CBD, whether derived from marijuana or hemp, is illegal.  According to the opinion, in Idaho, products containing CBD are only legal if the two following criteria are met:

  • the substance cannot contain any THC; and
  • the substance must be excluded from the definition of “marijuana” under Idaho Code § 37-2701(t)

Under Idaho Code § 37-2701(t), the only legal part of the cannabis plant, whether hemp or marijuana, are (a) mature stalks of the plant; (b) fiber produced from the stalks; (c) oil or cake made from the seeds or the achene of such plant; (d) any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks; or (e) the sterilized seed of such plant which is incapable of germination.

For a CBD product to be legal in Idaho and it must be totally THC free and must come from one of the five categories mentioned above. It doesn’t matter whether the CBD was derived from hemp or marijuana. If derived from anything other than the seeds or stems of the cannabis plant, it is illegal.

Stems and seeds aren’t going to have high levels of CBD or any other cannabinoids so really this just means that CBD is pretty much outlawed in Idaho with one notable exception: Idaho allows for FDA-approved CBD, such as that found in Epidiolex. The Idaho Office of Drug Policy’s webpage on CBD Drug Policy indicates that Idaho’s position on CBD has not changed as of June 2019 and that the informal opinion from 2015 is still followed.

Idaho’s opposition to hemp goes beyond the informal opinion as Idaho has recently seized hemp shipments traveling through the state. On August 28, 2019, the Ninth Circuit Court of Appeals heard oral arguments in Big Sky Scientific, LLC v. Jan Bennetts, on appeal from the District of Idaho. We wrote about that case in great detail here.

The case involved the Idaho State Police’s seizure of 6,700 pounds of industrial hemp biomass cultivated lawfully in Oregon that was on its way to Colorado for state-lawful processing. The appeal involved the denial of Big Sky’s preliminary injunction by the state court. Big Sky moved for a declaratory judgment stating that Idaho Police improperly seized Big Sky’s hemp in light of the 2018 Farm Bill’s and a preliminary injunction requiring police to return the hemp. The District Court issued an Order denying relief to Big Sky stating that it’s not clear that the 2018 Farm Bill, which prohibits states from interfering with shipments of legal hemp, provides protection for hemp grown under the 2014 Farm Bill. Because the USDA has not approved any state-level hemp cultivation plans under the 2018 Farm Bill, all hemp in the US is grown under the 2014 Farm Bill. In other words, all hemp shipments are at risk of seizure if they pass through Idaho.

The Ninth Circuit indicated that it believes federal jurisdiction may have been improper, meaning the case may ultimately be dismissed on procedural grounds. Even if Big Sky is unsuccessful here on procedural grounds, it’s worth noting that the USDA’s opinion is that Idaho should not have seized this hemp under the 2018 Farm Bill.

One day Idaho will come around and stop fighting hemp farmers who are merely shipping products through the state. For now, Idaho is one of the worst states on hemp. If you are a stakeholder in this industry, avoid Idaho at all costs.


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george scorsis

August 31, 2019
 

julian castro marijuana cannabis

Every Saturday, we have been running a series of blog posts that take a close look at the Democratic Party candidates for President in 2020. We examine each candidate’s historic approach to marijuana law and policy, and we also canvas their current respective stances on marijuana.

Over the past nine weeks, we covered Joe BidenBernie SandersKamala Harris, Elizabeth WarrenPete ButtigiegCorey BookerBeto O’RourkeAndrew Yang and Amy Klobuchar.  Today, we turn to Julián Castro, former U.S. Secretary of Housing and Urban Development and former Mayor of San Antonio.

Grade: B-

Stance on marijuana: Julián Castro supports legalizing marijuana and expunging records of past marijuana convictions as he said at a town hall in April.

History: Prior to his pro-legalization statement in April, Castro had remained relatively ambivalent on the issue of marijuana. Under Castro, HUD issued a statement reaffirming its policy of allowing property owners to evict marijuana users in federally assisted housing facilities. Other than this statement, however, Castro lacks much of a legislative record (or any other record) on marijuana. In 2014 (five months before his appointment as HUD secretary), Castro expressed uncertainty about whether he supported legalizing marijuana:

I haven’t looked at the science yet about addiction and what it means, but it’s certainly something that I think deserves more scrutiny and more analysis.

Castro’s website does not mention marijuana. Though Castro does address some aspects of criminal justice reform through his platform on policing, important topics such as the War on Drugs, legalizing marijuana, and sentencing reform are nowhere to be found on his website.

To his credit, Castro has expressed his views on marijuana on social media. In 2017, he criticized the Trump administration for threatening to crack down on states that legalized marijuana, writing in a Facebook post:

The federal government should focus its resources on more serious crimes. Not only that, growing evidence from Colorado and other states suggests we can sensibly legalize marijuana use with reasonable controls in place. State voters should have that power.

This past January, Castro retweeted a post by Representative Ro Khanna that called for both legalizing marijuana and expunging marijuana convictions from criminal records. Then in April, Castro announced his full support for legalization at a town hall and later on Twitter.

Conclusion: Julián Castro receives a “B-” grade because his support for the legalization of marijuana is not an important part of his platform and because he has no legislative record on the issue. Castro has openly supported legalizing marijuana on his social media, but he does not mention marijuana on his website and only recently did he wholeheartedly express support for legalization at the federal level. He also omits key aspects of criminal justice reform from his platform. Overall, as president we think Castro would support legalizing marijuana, but we question his enthusiasm on this issue.


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George Scorsis

August 30, 2019
 
Trulieve Cannabis Corp (TRUL), Green Relief, Generation Mining (CNSX:GENM) - Midas Letter RAW 245
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

August 30, 2019
 
Green Relief CEO, Dr. Neilank K Jha on CBD Recovery in Sport
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

August 30, 2019
 
30 Minutes with Trulieve (CSE:TRUL) CEO, Kim Rivers
Kim Rivers in-depth interview with Nika Domi ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

August 30, 2019
 

The owners of a high-profile marijuana shop in Southern California – Santa Ana’s 420 Central – are accused in a lawsuit of defrauding investors. The suit, filed in Orange County Superior Court of California, contains a host of salacious allegations, including one that founder and CEO Robert Taft ran an unlicensed marijuana grow operation in Sonoma County.

California cannabis company accused of breach of contract, fraud is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 30, 2019
 

Illinois awarded its first licenses to businesses that can sell recreational cannabis when it becomes legal in the state next year. State regulators announced the five medical marijuana dispensaries where residents will be able to buy small amounts of recreational marijuana products starting Jan. 1. The first group of licensees are all owned by Chicago-based

Illinois licenses first five adult-use marijuana retailers is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 30, 2019
 

usda hemp testing thc

Hemp stakeholders have been eagerly waiting for the release of rules and regulations by the U.S. Department of Agriculture (“USDA”). Although the 2018 Farm Bill removed the hemp and its derivatives from the Controlled Substances Act, it did not provide clear, consistent and reliable standards to safely and lawfully produce the crop. Instead, the new law tasked the USDA with adopting those standards with which states and Native American tribes wishing to regulate the crop within their borders will have to comply.

Earlier this summer, the USDA announced in a notice published in the Federal Register that it aimed to release its interim final rule in August. However, various comments recently made by USDA representatives suggest that the agency is struggling to meet its deadline. Specifically, the agency seems to be wrestling with the drafting of THC testing standards.

THC Testing standards matter because THC concentration is the key factor in differentiating hemp from marijuana.  It is the difference between a regulated agricultural commodity and a Schedule I controlled substance. Without a national THC testing standard marijuana and hemp are virtually impossible to differentiate because they look, smell and feel the same.

Pursuant to Section 297B (a)(2)(A)(ii) of the 2018 Farm Bill, states and Native American Tribes seeking regulatory authority over the production of hemp must submit a plan to the USDA that includes, in part,

a procedure for testing, using post-decarboxylation or other similarly reliable methods, delta-9 tetrahydrocannabinol concentration levels of hemp produced in the State or territory of the Indian tribe[.]”

As I explained in a prior post, there is no “postdecarboxylation” testing method per se, and although the congressional intent of the 2018 Farm Bill apparently was to refer to a testing method known as gas chromatography (“GC”), this method has been heavily criticized by stakeholders because it tends to increase the THC concentration in the hemp sample and pushes it over the 0.3 percent limit.

So it isn’t entirely surprising that the USDA is struggling to craft THC testing standards with so little guidance.

Unfortunately, this delay is further exacerbating state and local enforcement authorities’ ability to differentiate hemp from marijuana. As of now, most jurisdictions lack the resources to test for specific levels of THC and differentiate hemp from its illegal cousin, marijuana. The patchwork of testing standards across states has further hindered the lawful sale of hemp nationwide. After all, why impose a 0.3 percent THC threshold if the states are imposing 50 different testing standards?

Establishing a reliable and uniform testing standard is only one of many other standards the USDA needs to promulgate in order to fulfill the intent of the 2018 Farm Bill. Implementing a procedure for tracking the source of the crop and its finished products is as important as the adoption of a uniform testing standard. Indeed, the 2018 Farm Bill legalized hemp grown pursuant to a state or Native American tribe plan. This means that not all hemp is treated equal, even if the tested crop contains no more than 0.3 percent THC.

As such, hemp industry players must maintain records showing the source of the plant, including but not limited to the grower’s license under which hemp was cultivated as well as the certificate of analysis (“COA”) for each batch of hemp or finished hemp product tested showing that they contain no more than 0.3 percent THC. If your company is dealing in hemp, you should know exactly where it was grown and should be prepared to prove it.

The lawful production and sale of hemp and hemp products is a complex business that requires cautious planning and due diligence. As such, hemp stakeholders should consult with lawyers who thoroughly understand the field in order to mitigate their risks and thrive in this fairly unregulated market.


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george scorsis

August 30, 2019
 

The DEA indicates support for expanding cannabis research, a Florida medical marijuana licensing issue is sent to the state’s Supreme Court for potential review, a Nevada judge freezes some permits for new recreational marijuana shops – and more of the week’s top cannabis business news. DEA to up cannabis research The U.S. Drug Enforcement Administration (DEA)

DEA marijuana research, MMJ licensing case heads to FL high court, NV adult-use license ruling & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

August 30, 2019
 

The DEA indicates support for expanding cannabis research, a Florida medical marijuana licensing issue is sent to the state’s Supreme Court for potential review, a Nevada judge freezes some permits for new recreational marijuana shops – and more of the week’s top cannabis business news. DEA to up cannabis research The U.S. Drug Enforcement Administration (DEA)

Week in Review: DEA marijuana research, MMJ licensing case heads to FL high court, NV adult-use license ruling & more is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

August 30, 2019
 

The cultivation scandal that engulfed Ontario-based CannTrust, one of Canada’s top marijuana companies, dealt a serious blow to the company’s reputation, according to a survey by market research firm Leger, which exclusively shared its findings with Marijuana Business Daily.

CannTrust reputation plummets in wake of cannabis cultivation scandal: Q&A with pollster Dave Scholz is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 29, 2019
 

Vireo Health, a Minneapolis-based multistate marijuana operator, on Thursday reported revenue of $7.2 million in the second quarter, up 70% from the same period a year ago. The net loss for the quarter, ending June 30, was approximately $1.9 million, compared with net income of $120,080 for the prior-year period. The company recently announced it

Vireo Health posts cannabis revenue rise, net loss for second quarter is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 29, 2019
 
Canopy Rivers Inc (CVE:RIV) Horizontally Integrated Investment Ecosystem
Canopy Rivers Inc (CVE:RIV) (OTCMKTS:CNPOF) CEO Narbe Alexandrian joins Midas Letter to discuss the company's value proposition for investors to avail themselves of venture capital firm level due diligence while investing in a portfolio of cannabis companies. The CEO likens the investment to an Exchange-Traded Fund (ETF), however Canopy Rivers also are able to invest into private companies at multiples lower than companies already trading in public markets. Mr Alexandrian states he "can proudly say that I don’t think any other venture fund out there within the cannabis space looks at as many deals as us." In the last year Canopy Rivers, with its merchant bank type of structure in the cannabis space, have seen 1,523 pitches to date. The company looks to invest in all segments of the cannabis value chain and currently have eighteen companies in its portfolio. The recent purchase and supply agreements between portfolio companies James E. Wagner Cultivation Corp (JWC) and TerrAscend Corp demonstrates the collaboration and synergy that can happen within their investment ecosystem. The CEO also discusses his views on the future of the cannabis sector and what that means for Canopy Rivers future deal flow. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

August 29, 2019
 

Tilt Holdings, a Massachusetts-based company specializing in cannabis technology, reported revenue of $39 million in the second quarter, a 13% increase from the first quarter of 2019. Net loss for the second quarter, ending June 30, was $48.9 million, compared with a net loss of $5.3 million for the prior-year period. Tilt Holdings trades on

Tilt Holdings reports increased marijuana revenue, second-quarter loss is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

August 29, 2019
 

For investors, it is critical to know the details of how a cannabis company in this hypergrowth industry plans to bridge the gap between its current money-losing reality and the vision of a profitable future.

Cannabis path to profitability requires close look at operating models is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 29, 2019
 
CannTab Therapeutics Ltd (CNSX:PILL) Hard Pill Formulation is Patentable, Novel and Useful
CannTab Therapeutics Ltd (CSE:PILL) (OTCMKTS:CTABF) (FRA:TBF1) CFO Richard Goldstein visits Midas Letter Studios to discuss the recent stock surge and latest company developments. CannTab is a solid oral-dose tablet company, which started in the pharma business and then adapted its technologies to the cannabis space almost four years ago. The stock jumped as high as 98 percent and closed up 62.5 percent from the previous days closing price. The CFO explains “we had the little flurry of activity; we hope to have more trading and more interest behind the stock. We’re getting more eyeballs, and taking advantage of all our hard work.” CannTab recently graduated on the OTC to the QX listing making it easier for US investors to take ownership of the company. Mr. Goldstein believes tablets are truly the medical answer. The company’s bi-layered tablet, which are scheduled to be going into clinical trials soon, combine immediate release and extended release properties, using both CBD and THC. Additionally, the hard pill received an initial assessment from the Geneva-based International Preliminary Report on Patentability indicating the formulation is novel, non-obvious and useful. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Aphria

August 28, 2019
 

Marijuana company Origin House posted revenue of 21.4 million Canadian dollars ($16 million) in the second quarter, a sixfold increase over the CA$3.5 million ($2.6 million) it reported for the same period a year ago. But the Ottawa-based company’s losses totaled CA$34.9 million ($26.2 million) for the quarter ending June 30, compared with a profit

Origin House cannabis revenues rise, but losses mount is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

August 28, 2019
 

Oregon-based cannabis genomics company Phylos Bioscience's disclosure that it was positioning itself to be bought by Big Ag underscores the need for marijuana companies to take steps to protect their cannabis genetics and data from falling into the wrong hands.

How cannabis companies can protect intellectual property in the wake of Phylos Bioscience uproar is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

August 27, 2019
 
Horizons ETFs Management (TSE:HMMJ) Opportunity to Scale into Top Marijuana Companies
Horizons ETFs Management (TSE:HMMJ) Senior Vice-President of ETF Strategy Mark Noble joins Midas Letter to discuss the downturn in the cannabis sector - which in his contrarian view provides investors with a entry opportunity into higher quality marijuana companies. Mr. Noble believes investors are looking solely at company earnings and profitability while overlooking company strategies for growth, especially direct investment into foreign markets looking to scale the companies global footprint. The Senior VP highlights Organigram and Aphria's financials, as both companies generated a profit on Canadian revenues, but doesn't believe other top cannabis companies should be punished in the markets while extending themselves outside of Canada for future growth capitalization. And there is where the potential opportunity may lie. As of the interview date, the HMMJ ETF is still up around 12 percent, although the whole sector has declined around 30 percent in the last quarter. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

August 26, 2019
 
ChartingManDan Technical Analysis, Macroeconomic News (SP500 & Gold) - Midas Letter RAW 241
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

August 26, 2019
 

The U.S. Drug Enforcement Administration (DEA) announced Monday that it will expand scientific and medical research of marijuana, a development that could ultimately boost industry prospects. But it’s unclear how soon additional research projects will be approved. The DEA said in a “notice to applications” filed with the Office of the Federal Register that it intends

DEA supports expanding cannabis research, but timing uncertain is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 26, 2019
 
Cannabis News 26th August 2019 - Khiron, James E Wagner, Halo Labs, 48North
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis Liberty Health Sciences

August 26, 2019
 

Last December, East Fork Cultivars, an outdoor cannabis farm in the idyllic Illinois River Valley of Southern Oregon, partnered with Portland, Oregon-based agricultural genomics company Phylos Bioscience on a breeding program specifically targeting new varietal traits.

How Phylos Bioscience sent shockwaves through the cannabis industry with ‘Big Ag’ disclosure is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 25, 2019
 

hawaii cannabis marijuana

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA. This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp CBD”). Each Sunday we will summarize a new state in alphabetical order. So far, we have covered Alabama,  AlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareFlorida, and Georgia. This week, we look at Hawaii.

Hawaii is one of the growing list of states that has created an industrial hemp cultivation pilot program. The Hawaii Department of Agriculture (“DOA”) launched the state’s hemp cultivation program and issued the state’s first license in June 2018. In May 2019, Hawaii enacted SB-1353, a bill that required DOA to establish a permanent hemp program under the 2018 Farm Bill, among other things. It’s important to note that DOA’s authority only falls on cultivation and not processing or retail sales, but DOA warns that processing could subject a person to different sets of regulations or different legal authorities.

But if you thought Hawaii would be friendly to Hemp CBD products, think again. Sort of like California, a May 2019 press release by the Hawaii Department of Health (“DOH”) states that the sale of CBD infused-products is unlawful in Hawaii.  DOH’s Food and Drug Branch echoes this press release on its website:

  • Products containing CBD are not generally considered safe and there may be potential health risks associated with them.
  • It is illegal to add CBD to food, beverages and cosmetics that are manufactured, distributed and sold in Hawaii.
  • CBD may not be sold as a “dietary supplement.”
  • CBD may not be marketed by asserting health claims because that would constitute prohibited misbranding or false advertising.
  • CBD is the active ingredient in an FDA-approved prescription drug. Therefore, it cannot be put into food, beverages and cosmetics, sold as a drug without a prescription, or marketed as a “dietary supplement.”

These statements by the DOH make pretty well clear that they are following the federal Food and Drug Administration’s (“FDA”) guidelines (by repeatedly citing/referring to them), but they also cite Hawaii’s food, drug, and cosmetics laws, similar to what California has done.  In fact, Hawaii appears to have gone further than both the FDA and California in prohibiting Hemp-CBD in cosmetics. Hawaii’s position on Hemp-CBD is one of the strictest in the nation as the sale of Hemp CBD products such as foods, beverages, cosmetics, dietary supplements, unapproved drugs, or any other kind of Hemp CBD product that makes health claims, appears to be unlawful in Hawaii.

The bottom line is that the sale of many different kinds of Hemp CBD products in Hawaii appears to be unlawful, at least according to the DOH. Anyone who follows this blog knows that these laws are fluid and changing rapidly, so stay tuned to the Canna Law Blog for further developments.


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George Scorsis

August 24, 2019
 

(This is an abridged version of a story that appears in the August issue of Marijuana Business Magazine.) Medical and recreational cannabis retail stores near state borders have tremendous business opportunities. They’re able to draw the interest of cannabis consumers in adjacent states that might prohibit the drug and can also benefit from reciprocity laws that

Cannabis retailers should embrace out-of-state consumers – after they’ve taken appropriate steps is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

August 23, 2019
 

Acreage Holdings, one of the largest multistate operators in the U.S. marijuana market, faces a demand for arbitration from a Rhode Island company that claims Acreage violated a contract agreement. CanWell filed an arbitration request alleging that New York-based Acreage breached a noncompete portion of an operating agreement the companies signed in 2018 by pursuing competing

Rhode Island cannabis company seeks arbitration against Acreage Holdings is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

August 23, 2019
 

Tilt Holdings, a Massachusetts-based company specializing in cannabis technology, faces a possible class-action lawsuit over its marketing tactics.

Lawsuit alleges marijuana tech firm Tilt Holdings broke law with solicitations is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

george scorsis

August 23, 2019
 
Goldplay Exploration, Gold Price, SP500 on the back of FED Powell Address - Midas Letter RAW 241
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis website

August 23, 2019
 
RavenQuest BioMed Inc (CNSX:RQB) Orbital Gardens Passes Health Canada Analytical Tests
RavenQuest BioMed Inc (CNSX:RQB) (OTCMKTS:RVVQF) (FRA:1IT) joins Midas Letter to discuss the quality and cleanliness of their cannabis products produced from the company’s revolutionary orbital garden technology. All cultivars passed analytical tests otherwise known as the COA (Certificate of Analysis) as required by Health Canada. It is becoming exceedingly rare among licensed producers that its grown cannabis have no traces of pesticides or Aflatoxins detected. The low microbial readings serve as evidence that the products produced by RavenQuest BioMed are safe. Mr. McDonald also discusses the company’s future direction heading into edibles and extracts market in Canada as well as their large growth plans for Europe, starting with Portugal and Norway. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

August 23, 2019
 

Guam, a U.S. territory, reminded businesses and consumers that recreational cannabis sales remain prohibited until the new rules to govern the industry are completed.  The Western Pacific island approved the creation of an adult-use cannabis market earlier this year.  The Cannabis Control Board has until April 2020 to finalize a set of rules and regulations

Guam clarifies adult-use marijuana rules ahead of new industry regulations is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 23, 2019
 

Regulators in New Mexico will cap licensed medical marijuana cultivators to 1,750 mature cannabis plants starting next week, a 30% drop from the 2,500 plants allowed under an expiring emergency state rule. Some cultivators such as Ultra Health, the largest MMJ operator in the state, said the plant limit will exacerbate a medical marijuana shortage

New Mexico limits medical cannabis growers to 1,750 plants is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

August 23, 2019
 

Alaska Gov. Mike Dunleavy is bringing back a marijuana advocate to the state cannabis regulatory board, a move welcomed by an industry that successfully fought his attempt to install an MJ critic. Dunleavy’s office said he appointed Bruce Schulte to the Marijuana Control Board. Schulte was involved in the 2014 initiative that legalized adult-use marijuana

Alaska governor puts marijuana advocate back on state MJ board is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

August 23, 2019
 
Cannabis News August 23 2019 - 48North Cannabis Corp iAnthus Capital Holdings, Inc Avicanna Inc
48North Cannabis Corp iAnthus Capital Holdings, Inc Avicanna Inc ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

george scorsis

August 23, 2019
 
Legendary DJ David Marsden talks about the revolution of radio & cannabis
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George Scorsis website

August 22, 2019
 

(This story is part of MJBizDaily’s premium subscription service, Investor Intelligence.) Warrants can align stakeholder incentives with shareholder interests, but they complicate the share count at different valuations and can cloud what you really own. There are two essential steps to valuing equity: Value the underlying business. Divide that by the stakeholders – first the debt

How much is your slice of the marijuana pie worth? is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional information, George Scorsis

August 22, 2019
 

(This story has been updated to include further comments from the Ontario Cannabis Store and the Ministry of the Attorney General.) Regulators in Canada’s largest cannabis market are working to return to the current government’s original plan of allocating adult-use marijuana store licenses based on market demand, a move that would unlock significant opportunities for the

Ontario planning to allocate cannabis store permits ‘based on market demand’ is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

August 22, 2019
 

California-based KushCo Holdings, a cannabis company specializing in ancillary products such as packaging, closed on a $50 million credit facility that will be used for working capital and potential acquisitions. The transaction consists of a $35 million revolving line of credit that can be increased by $15 million subject to certain terms, according to the

Marijuana firm KushCo secures $50 million credit line is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis website

August 22, 2019
 

doterra young living cannabis cbd mlm

Recently I wrote about the two dominant global MLM essential oil companies based in Utah: Young Living and doTERRA. Last month Young Living announced it is entering the CBD oil market, but doTERRA publicly stated on its website that it will not (yet) follow suit, even though everyone and their dog are clamoring for CBD oil and CBD oil-derived products. doTERRA only hints that it may produce CBD oil if it can be produced according to doTERRA’s rigorous standards for its products, but “Right now, it is not possible to deliver a CBD oil that meets [doTERRA’s] CPTG® standards.”

Instead, doTERRA has gone to great lengths to educate its distributors (wellness consultants) both about the medical and legal issues surrounding CBD oil. On its website in a post modestly titled Everything You Need to Know About CBD, doTERRA provides a part-medical part-legal treatise, complete with embedded video, a PowerPoint presentation, and 24 footnotes to medical journals and federal laws. Its thoroughness means that it is a beast to digest if you did not double major in pre-med and pre-law, but doTERRA makes some compelling points about the current unsettled state of CBD.

On the legal side, doTERRA takes a conservative approach:

  • doTERRA advises its distributors to “remain cautious” against products that may not follow the Federal Food, Drug, and Cosmetics Act (the “FD&C Act”) that may put health and safety at risk. This point is well taken, as we mentioned in a prior blog post entitled Four Important Considerations for Any Hemp CBD Company.
  • Relatively little medical and scientific research has been completed regarding CBD and its “perceived health benefits” (see FDA Says It Is Speeding Up The CBD Regulation Process). This point is also well taken with respect to U.S. regulators. Neither the FDA nor the USDA have issued implementing regulations yet regarding hemp-derived CBD.

Young Living is aware of these potential legal issues with the current state of CBD, and it has taken proactive steps to mitigate potential negative effects. In its acquisition of Colorado-based Nature’s Ultra that produces 0.0% CBD oil (no THC content), Young Living has opted to keep Nature’s Ultra as a separate operating company rather than integrating its operations within Young Living. Nature’s Ultra’s CBD oils can be purchased with Young Living’s essential oils blended into its products rather than the other way around.

On the medical side, doTERRA provides extensive information regarding cannabinoids:

  • The human body has cannabinoid receptors that are broken down into two categories:
    • CB1 receptors – affect the brain and central nervous system (pleasure and reward) (more widely distributed throughout the body).
    • CB2 receptors – immune system (inflammatory system) (less widely distributed than CB1 receptors).
  • THC works directly on both CB1 and CB2 receptors.
  • CBD works indirectly on both CB1 and CB2 receptors by slowing down the work of an enzyme called fatty acid amide hydrolase (“FAAH”), which breaks down anandamide (your body’s naturally-produced cannabinoid as a response to strenuous exercise (runner’s high), stress (fight or flight), and other related stimuli (stepping on a pile of your kid’s Legos in the dark)), which is why anandamide is called an endocannabinoid).
    • A slower breakdown in anandamide means it is present in the body longer and continues to interact with the body’s CB1 and CB2 receptors.

Finally, in good competitive market fashion, doTERRA educates its distributors that it already has a superior product to CBD oil called Copaiba oil:

  • Copaiba oil contains beta-caryophyllene (“BCP”), which is a cannabinoid and a sesquiterpene (delivers oxygen molecules to cells) found in hundreds of different plant species.
  • Copaiba oil comes from distilling the oleoresin of varieties of copaiba trees, which are found in Brazil. The resin is harvested similar to the method used to extract maple sap from maple trees.
  • BCP interacts directly with the body’s CB2 receptors (“no risk of psychoactive effects”), “soothing tissues and helping to manage healthy inflammatory responses.”
  • doTERRA’s copaiba essential oil contains 55% BCP content, which is the “highest BCP content of any known oil.”
  • Its efficacy means only “a drop or two” is needed for its BCP to start affecting the human body, so its price point is significantly lower than CBD oil per application (They can’t call it a “dose” because “These statements have not been evaluated by the Food and Drug Administration” and “This product is not intended to diagnose, treat, cure, or prevent any disease.”)
  • Copaiba oil has been produced under doTERRA’s rigorous proprietary CPTG® standards.

But at the end of the day, copaiba oil is not CBD oil. BCP is not CBD, even though it contains two of the same three letters and may be confusingly similar enough for doTERRA’s wellness advocates to have an opening in the conversation to educate the market about BCP’s benefits. doTERRA is hoeing a hard row right now, but there is a segment of the doTERRA and Young Living essential oil market that is hesitant to use products that have not been approved by the FDA or that have any trace of THC content, as I explained my prior blog post. If copaiba oil is as effective as and can be purchased at a fraction of the price of CBD oil, it may get some takers, but because it does not interact with the CB1 receptors, it may be a hard sell. And copaiba oil is not as cool or edgy as CBD oil. Will doTERRA eventually produce CBD oil? Almost certainly. Will doTERRA’s consultants be able to educate the market about copaiba and BCP and keep pace with Young Living’s sales of its CBD oil through Nature’s Ultra? Probably not. The developments over the next several months will be interesting as these two competitors continue to fight for market dominance.


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George Scorsis website

August 21, 2019
 

Michigan regulators are hosting a series of educational sessions in September for potential recreational cannabis business applicants, with online applications starting Nov. 1. The five sessions are designed to demonstrate the online business license application process. Under Michigan’s adult-use marijuana law, local jurisdictions decide whether to permit or ban commercial rec MJ activity. There is

Michigan offers application help to adult-use marijuana businesses is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 21, 2019
 
Concierge Capital Partners - Intersection of Government Relations, Biz Dev & Capital Markets
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

george scorsis

August 20, 2019
 

Bruce Linton, the former co-CEO of Canopy Growth who was fired by the Canadian company last month, on Tuesday told CNBC’s “Squawk Box” he has since acquired more shares in the cannabis giant. “It was a right time for them to make the change, and it was the right time to buy the stock,” Linton said

Linton continues investing in marijuana giant Canopy after dismissal is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional information, George Scorsis

August 20, 2019
 

Sweeping changes to Lesotho’s cannabis regulations are set to go into effect later this year and are expected to be grandfathered in, meaning existing businesses will be exempted from the most burdensome parts of the new rules, according to government and industry sources. Marijuana Business Daily recently reported that the southern African country is planning

Sources: Lesotho’s draft cannabis regulations to be ‘grandfathered in,’ giving existing firms an edge over new entrants  is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 20, 2019
 
Cannabis News August 20th 2019 - Eve & Co, Khiron, Organigram, Canopy Growth, iAnthus, MediPharm
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George Scorsis

August 19, 2019
 
Ventura Cannabis (CNSX:VCAN) US MSO with Outpatient Addiction Treatment Background
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george scorsis

August 18, 2019
 

georgia hemp cannabis

The Agriculture Improvement Act of 2018 (“2018 Farm Bill”) legalized hemp by removing the crop and its derivatives from the definition of marijuana under the Controlled Substances Act (“CSA”) and by providing a detailed framework for the cultivation of hemp. The 2018 Farm Bill gives the US Department of Agriculture (“USDA”) regulatory authority over hemp cultivation at the federal level. In turn, states have the option to maintain primary regulatory authority over the crop cultivated within their borders by submitting a plan to the USDA. This federal and state interplay has resulted in many legislative and regulatory changes at the state level. Indeed, most states have introduced (and adopted) bills that would authorize the commercial production of hemp within their borders. A smaller but growing number of states also regulate the sale of products derived from hemp.

In light of these legislative changes, we are presenting a 50-state series analyzing how each jurisdiction treats hemp-derived cannabidiol (“Hemp-CBD”). Each Sunday we will summarize a new state in alphabetical order. So far, we have covered Alabama,  AlaskaArizonaArkansasCaliforniaColoradoConnecticutDelaware, and Florida. This week, we look at the Peach State.

Earlier this year, Georgia jumped on the hemp bandwagon by enacting HB 213, which legalized the commercial production of hemp and hemp products in the state. Under the new law, which is codified in O.C.G.A. § 2-23-1 et seq., only growers and processors licensed by the Georgia Department of Agriculture (“GDA”) will be permitted to grow and process hemp in the state. Note that licenses will not be issued by the GDA until final rules and regulations are in place. The GDA’s process of drafting rules and regulations began in July with the agency released proposed rules that are now open for public comments.

The proposed rules provide that licensees shall comply with specific testing, storage, recordkeeping and transportation requirements. For example, in Georgia, no licensed grower or processor may transport hemp without a hemp transportation permit issued by the GDA. Hemp may only be transported to permittees or to storage facilities owned by the licensees and listed on the licensee’s approved license application.

The proposed rules also address the manufacture of hemp products. Hemp product means “all products with the federally defined THC level for hemp derived from, or made by, processing hemp plants or plant parts that are prepared in a form available for commercial sale, but not including food products infused with THC unless approved by the United States Food and Drug Administration.” (Emphasis added).

Although the manufacture and sale of Hemp-CBD food is expressly prohibited – and reiterated in a May 10 press release issued by the GDA – the manufacture and sale of other Hemp-CBD products, such as smokables and cosmetics, is not clearly authorized nor restricted. However, the GDA’s proposed rules provide that “[n]othing in these Rules shall be construed as authorizing any person to violate any Federal law or regulation” and requires that licensed processors comply with the federal Food, Drug and Cosmetic Act and other rules and regulations related to product manufacturing, consumer safety and public health.

As this summary reveals, the proposed rules address the fundamental issues that surround the production of hemp but are vague on the manufacture and sale of Hemp-CBD products, with the exception of food. As the public comment period evolves, it will be interesting to see whether the GDA clarifies this issue and whether other state agencies, such as the Georgia Department of Health, provide additional guidelines on the production of these products.


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george scorsis

August 17, 2019
 

A growing number of cannabis companies - both ancillary and plant-touching - are creating internship programs for college students and graduates whom the firms hope will eventually become full-time employees.

Internships allow marijuana companies to ‘grow talent from within’ is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

August 16, 2019
 

It’s been an eventful week for German medical cannabis distributor Iuvo Therapeutics. First, the Neuss-based company received its first international shipment of dry cannabis flower from Canada-based TerrAscend. Then, Iuvo Therapeutics announced it was being acquired by London-based cannabis firm Wundr Co. “In the upcoming weeks – and together with our new team from Wundr – Iuvo will continually scale up

Germany gains new supplier of medical marijuana flower is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

August 16, 2019
 

Missouri is giving businesses that want to run medical cannabis facilities more time to file applications. The state’s Department of Health and Senior Services extended the deadline until 4:30 p.m. Monday. The deadline was scheduled to end Saturday. Director Randall Williams said in a statement that the agency learned during the early days of accepting

Missouri extends medical marijuana license application timeline is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 16, 2019
 

Given the skyrocketing demand for cannabis and its newly found legitimacy, we anticipate increased government scrutiny and a need for more testing.

As cannabis industry grows, opportunities in testing rise is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 16, 2019
 

A law was introduced in the Barbados House of Assembly to establish the legal foundation for a local medical marijuana industry. If the law is adopted, Barbados will join other Caribbean countries Jamaica, St. Vincent and the Grenadines as well as Antigua and Barbuda in approving cannabis cultivation. A law is also in the works in Saint Kitts and Nevis. The

Barbados latest Caribbean country to propose sweeping medical cannabis law is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis

August 15, 2019
 

A Fairbanks dispensary is moving closer to becoming the first in the city where on-site consumption of cannabis is permitted. The Fairbanks City Council voted unanimously on a measure that allows consumption at The Fairbanks Cut, once it gets a certificate of occupancy, according to the Daily News-Miner. It can take several weeks to a

Fairbanks, Alaska, approves first marijuana consumption site in city is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Liberty Health Sciences

August 15, 2019
 

California’s marijuana market is poised for huge growth after a $500 million drop in legal sales in 2018, according to a wide-ranging report released Thursday. Key takeaways from the report released by Boulder-based BDS Analytics include: Legal marijuana sales slid to $2.5 billion in 2018 from roughly $3 billion in 2017 amid the transition to

Report: California cannabis market poised for growth is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis

August 15, 2019
 
Sundial Growers Inc (NASDAQ:SNDL) Generates $19.3 Revenue in Q2
Sundial Growers Inc (NASDAQ: SNDL) CEO Torsten Kuenzlen joins Midas Letter to discuss the company’s Q2 financial report, the associated company revenues, and its footprint within the cannabis industry. This is Sundial’s inaugural quarterly earnings release as a public company following its listing on the NASDAQ stock exchange on August 1, 2019. The CEO states that “with over $20 million in gross revenue, that places us among the larger players.” Mr. Kuenzlen is working hard to grow the company to compete with the larger players starting with the completion of its initial public offering and the recent Bridge Farm acquisition subsequent to the second quarter. Bridge Farm is a producer of ornamental plants, flowers and herbs in the United Kingdom. This international acquisition allows Sundial access to marketshare in Europe. Sundial are concentrating on three areas internationally in which they call “Heal, Health and Play”; Heal: operating within the medical cannabis space, Health: the global health and wellness CBD opportunity, and Play: the company’s recreational adult-use product-line. Watch the full interview to hear everything the Sundial CEO has to say about the company’s financials and the latest company developments. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

george scorsis

August 15, 2019
 

Arizona-based Harvest Health & Recreation, a major multistate operator, reported revenue of $26.6 million for the second quarter, a 153% jump from the $10.5 million booked in the same period last year. Net loss for the second quarter, ending June 30, totaled $20.6 million compared with net income of $2.83 million for the same period

Harvest Health & Recreation reports improved marijuana revenue, net quarter loss is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

addiitional information, George Scorsis

August 15, 2019
 
Cannabis News August 15th - Canopy Growth, Truelieve, Harvest, Aurora & more
************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

more info, George Scorsis

August 15, 2019
 

 

cannabis patent litigation claim construction

 

In following the progress of the first-ever cannabis patent litigation case, United Cannabis Corporation v. Pure Hemp Collective, Inc., the parties are now in a special phase of patent litigation called “claim construction.” Claim construction is specific to patent cases, and it’s the process of deciding what the various terms of the asserted patent claims actually mean. Claim construction is generally where most cases are decided.

The process begins when the parties actually go through the claims and propose their definitions to each other. Typically, the parties will end up agreeing on a lot of the terms so that the Court only has to decide a few things (which the Court usually appreciates). Then, the parties will prepare briefs and advocate their own meanings at a hearing. That hearing is called a “Markman hearing” (after the Supreme Court case that created this process), and it usually requires each side to present experts, scientists, demonstratives, and technological tutorials to ascertain the appropriate meaning of relevant key words used in the patent claim. Although Markman hearings can occur at different times in different cases, they generally occur during discovery and well in advance of trial.

Here, the parties dispute just two terms: “cannabinoids” and “infused in a medium chain triglyceride (MCT).” Let’s discuss the parties’ arguments concerning “cannabinoids”:

The patent claim includes the phrase, “at least 95% of total cannabinoids,” and Pure Hemp argues that “cannabinoids” should be interpreted as cannabinoid content – a term to describe different amounts of cannabinoids, and to describe how to calculate cannabinoid content as a percentage. On the other hand, UCANN argues that “cannabinoids” should simply be construed as “more than one cannabinoid.” This is a small, technical, but really important distinction to make because Pure Hemp’s proposed interpretation would really limit what UCANN is attempting to claim as its own.

After the parties present their interpretations, the Court will decide how to construe the patent claims at issue by undertaking the following process:

  1. Read the claims at issue.
  2. Read the “written description” of the patent specification, and any drawings if they exist.
  3. Consider which terms of the claim are at issue or in dispute as to its meaning.
  4. Read the other claims in the patent to obtain a holistic understanding.
  5. Read the prosecution history if it exists.
  6. Consider any other objective evidence of the meaning of claim language that is available – specification, prosecution history, ordinary/dictionary meaning, evidence that a specific term means something different to a person having ordinary skill in the art (“POSITA”).
  7. Understand the invention that is described in the specification.
  8. Determine what the claims objectively disclose to the POSITA as to what the inventor actually claimed (whether or not that objective meaning corresponds to the invention that was just determined to be disclosed in the specification and without regard to how that objective meaning will affect validity or infringement).

For each term, the judge can adopt either party’s definition or neither party’s definition. Regardless, once the Markman opinion issues, it’s often clear whether the patent is valid and if the defendant is liable for infringement.

In our case, the parties jointly requested a Markman hearing in mid-June. On July 15, 2019, the Court issued an order denying their request, and indicated: “Having reviewed the claim construction briefs, the Court finds that no evidentiary hearing is necessary to resolve the parties’ disputes … the Court will resolve the claim construction dispute in due course.” We’ll continue to monitor the docket and provide an update on how the Court rules as soon as we can. Previous updates on this case can be found here, here, here, and here.


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George Scorsis Liberty Health Sciences

August 15, 2019
 

When Nicole Elliott was appointed senior adviser on cannabis in California Gov. Gavin Newsom's Office of Business and Economic Development in February, many in the state's marijuana industry cheered.

‘Long process that is nowhere near perfect’: Q&A with California cannabis czar Nicole Elliott is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis Aphria

August 15, 2019
 

This past week saw the second-highest amount of money raised through equity in three months in the North American cannabis industry - even as merger and acquisition activity slowed to a complete halt.

Deal Watch: Equity raises highest in three months; M&A activity slows is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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additional info, George Scorsis

August 14, 2019
 

The world’s largest marijuana company, Canopy Growth, on Wednesday reported improved revenue in its latest quarter, but its losses widened substantially from the same period a year ago. Smiths Falls, Ontario-based Canopy saw revenue rise 250% in the first fiscal quarter of 2020 to 90.5 million Canadian dollars ($67 million) compared with the same period

Marijuana giant Canopy’s revenues soar, but losses widen is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

August 13, 2019
 

Acreage Holdings, a New York-based multistate marijuana operator, on Tuesday reported net quarterly revenue of $17.7 million for the three months ended June 30, up more than five times from the same period last year. Net loss totaled $33.9 million for the company, which is due to be acquired by Canadian cannabis giant Canopy Growth

Acreage reports improved cannabis revenue, net loss for quarter is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

August 13, 2019
 
Tristar Gold, Halo Labs, Hong Kong Protests Effecting Gold - Midas Letter RAW 234
Midas Letter RAW highlights the stocks and stories to watch in the Canadian markets today. James West and Ed Milewski provide comprehensive fundamental & technical analysis on all trending business and investment news, while interviewing the top CEOs of all public companies and analysts with the highest reputations in the business. ************************ Check out our website: https://midasletter.com ************************ SUBSCRIBE to our YouTube: http://bit.ly/MidasLetterYoutube SUBSCRIBE to our 2nd YouTube Channel - Midas Letter Clips: https://bit.ly/2rtQzgy SUBSCRIBE to our Newsletter: http://bit.ly/MidasLetterNewsletter Download Our Podcast on iTunes: http://bit.ly/MidasLetterPodcast ************************ Follow Us on Twitter: http://bit.ly/MidasLetterTwitter Like Us on Instagram: http://bit.ly/MidasLetterInsta Like Us on Facebook: http://bit.ly/MidasLetterFacebook ************************ #WeedStocks #MidasLetter

George Scorsis

August 13, 2019
 

Sales growth rates play a huge role in determining the value of a cannabis investment. However, growth analysis is rarely a clean or simple task.

What cannabis sales growth rates may be hiding is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


[Read More ...]

George Scorsis Liberty Health Sciences

August 13, 2019
 

High Times, the cannabis media group, is partnering with creative industry awards organization Clio to launch Clio Cannabis, a marketing and advertising awards competition. Clio started in 1959 and hosts numerous awards competitions in industries such as sports, fashion, music, entertainment and health. Nominations for the Clio Cannabis awards begin Aug. 26. High Times, which

Clio, High Times partner to launch cannabis marketing awards is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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George Scorsis website

August 13, 2019
 

While medical marijuana is legally available in 36 states and Washington DC, the fragmented nature of the industry – each state creates its own set of rules – means each market grows at a different rate. The new quarterly release of the Marijuana Business Factbook presents updated profiles of each state market, highlighting the growth

Chart: Medical marijuana markets expanding at varying rates, with Oklahoma, Florida setting the pace is a post from: Marijuana Business Daily: Financial, Legal & Cannabusiness news for cannabis entrepreneurs


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george scorsis

August 12, 2019
 

With so much misinformation on the internet about CBD oil, one of the most common questions we get from consumers is in regards to the difference between CBD from marijuana vs CBD oil from hemp.

First, let’s look at the basic differences between marijuana and CBD hemp oil. 

Marijuana vs. CBD Oil from Hemp

CBD Hemp Oil:

  • High levels of CBD
  • Federally legal
  • Non-intoxicating
  • Can be purchased online or in stores

Marijuana:

  • High levels of THC
  • Legal only in certain states
  • Intoxicating
  • Available from dispensaries only

Despite these important differences, many prospective cannabis consumers are surprised by the number of similarities between hemp and marijuana. However, the resemblance should come as little surprise, since both hemp and marijuana are versions of the Cannabis Sativa L. plant. As we dig deeper into the two types of cannabis plants, we begin to see how they can each play a role in the use of cannabis.

What is Marijuana?

Marijuana is a cannabis plant that is most frequently harvested for its euphoric, intoxicating properties, which are responsible for making users feel high or stoned. The fibers and stalks of marijuana are not used commercially. Instead, the marijuana plant is cultivated specifically for its flowers, which contain the highest levels of THC in the plant. 

To maximize THC levels in marijuana, it’s often grown indoors so that conditions like light, temperature, and humidity can be closely monitored. Any male marijuana plants are removed to prevent the female plants from becoming fertilized, which lowers the plant’s concentration of THC. When compared to hemp, which grows tall, marijuana grows shorter and bushier with lots of flowers. Though, some variation does exist. 

Through selective breeding, varieties or strains of marijuana can contain THC concentrations that usually range from 10 percent to 30 percent, or even higher. Marijuana is naturally lower in CBD than THC – though some breeders have worked to increase the amount of CBD produced by some marijuana plants.

Since marijuana contains high levels of THC, use and possession of marijuana, whether for recreational or medical reasons, remains federally illegal in the U.S., although states have passed laws that have legalized marijuana use under certain conditions.

What is Hemp?

Hemp is a cannabis plant that is harvested commercially for its seeds and stalks. Hemp seeds and stalks are used to produce a number of products: including food, nutritional supplements, medicine, body care products, paper, textiles, building materials, plastic composites, and even biofuels. Depending on which parts of the plant hemp oil is made from the amount of CBD will vary, producing everything from nutritious hemp foods to hemp seed oil to rich CBD oil.

Because it thrives under natural conditions, hemp is typically grown outside, with both male and female plants sown closely together to encourage wind pollination and increase seed production. The hemp plant grows sturdy and tall, up to 2 to 4 meters in height, without the need for herbicides or pesticides.

For cannabis to be legally considered hemp, it must contain no more than