420 with CNW – Florida Judge Rules that Cap on Dispensaries is Unconstitutional

A Circuit Court Judge, Karen Gievers, has ruled that the state and the health department in Florida violated the constitution when they imposed a cap on the number of dispensaries that a licensed business could open within the state.

Trulieve sued the state and asked court to strike down the cap on dispensaries that had been imposed limiting each business to a maximum of 30 outlets. Initially, the cap was at 25 but it was raised to 30.

The plaintiff successfully argued that patients could get better access to medical marijuana treatment centers at an affordable cost if more dispensaries were available instead of forcing patients to incur the cost of vehicle delivery of cannabis to their addresses.

The company had also argued that the ban, which was imposed long after they had opened a number of outlets, affected their business since they wouldn’t have opened dispensaries in some locations had they had prior awareness of that cap. Trulieve therefore asked court to nullify that cap so that their business isn’t unnecessarily hampered.

The judge agreed and wrote in her ruling that the state didn’t have any plausible reason to impose such a restriction on legally licensed businesses. Furthermore, the judge observed that the cap wasn’t mentioned anywhere in the constitutional amendment legalizing medical cannabis.

The state made a vain attempt to justify the cap by saying that the local and state authorities needed time to study how to regulate medical cannabis. Judge Gievers threw out this argument saying that the constitutional amendment didn’t provide for such “study” and that she didn’t get evidence of what needed to be “studied” for three years.

She argued that the state had ample time to study medical cannabis regulation as much as they wanted before the first medical cannabis law was passed years back in 2014.

This same judge lifted the ban on smoking medical cannabis and gave the state a dressing down for the blatant way in which it was disregarding constitutional provisions while implementing the medical marijuana program. The previous Governor, Rick Scott, appealed against that ruling and left office before the appeal was heard.

Recently, Gov. DeSantis threatened to withdraw from pursuing that appeal if the legislature didn’t amend the law to allow patients to smoke medical cannabis. He gave the legislators a few weeks to act or else the courts will be left to change the law by judicial declaration.

Golden Developing Solutions, Inc. (OTC: DVLP), Green Growth Brands, Inc. (CSE: GGB) (OTCQB: GGBXF) and the whole industry welcomes the decision of the court since patients in Florida will now have medical cannabis dispensaries closer to them.

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420 with CNW – Baby Boomers are a Growing Cannabis Market

Statistics have it that baby boomers are a rapidly growing market segment in the cannabis industry, and any firm looking to get a foothold in this industry needs to pay attention to this demographic.

Why This Group Matters

First, baby boomers are no longer taking care of kids, and many are approaching retirement. This means that this group has accumulated some resources and they have disposable income that they can spend on cannabis. Who wouldn’t want a potential client that has money to spend?

Secondly, cannabis isn’t an altogether new substance to these people. Many of them sampled the product or know someone who did during their younger years. It will therefore not be as if you are starting from scratch if you want to get these people to buy your cannabis products.

Thirdly, baby boomers tend to be brand-loyal, so it makes sense to get to them early before a competitor wins their loyalty. Getting them to switch from one brand to another can be a monumental undertaking that you don’t want to attempt.

Crucially, many baby boomers have health conditions for which medical cannabis can be a viable solution. For example, arthritis and chronic pain plague a significant fraction of this demographic. Positioning your products as the products to ease their pains and alleviate other ailments can pay off in a big way.

How to Get Your Foot In

Each demographic has its own unique characteristics that businesses must understand in order to win their patronage. For starters, baby boomers are more likely to pay attention to word of mouth recommendations when compared to other marketing efforts. Crack this method and you will have them buying from you in droves.

Another way to get this demographic is by making it easy for them to access your products. Many among them have mobility challenges while some may be concerned about keeping their cannabis use discreet. Home delivery and shuttle services can address these concerns and boost your sales.

Additionally, this group is what some may call “old fashioned.” Product information should be given to them during face-to-face interactions, especially at the dispensary or retail outlet. Cannabis businesses that are designed to make this possible will get a sizeable share of the clientele in this group.

The cannabis industry, especially Generation Alpha Inc. (OTCQB: GNAL) and Global Payout Inc. (OTC: GOHE) will definitely find ways to meet all the needs of the different age groups, including the baby boomers.

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420 with CNW – Why the US is Unlikely to Legalize Cannabis in 2019

The year of 2018 registered some major wins for marijuana (Canada legalized recreational cannabis, the FDA made history by approving a cannabis-derived drug, more states legalized marijuana, public opinion is at an all-time high in favor of legalization, etc.), and that has led many cannabis advocates to expect 2019 to bring even better news along the lines of the U.S. federal government legalizing marijuana. However, this is unlikely to happen this year for a number of reasons.

The Senate isn’t Warm to Marijuana

While Congress is now dominated by Democrats (and Democrats have a history of being friendly to cannabis law reform), the Senate is still firmly in the hands of Republicans. Even the recent polls that show massive support for cannabis legalization reveal a small majority of Republicans supporting legalization (53 percent, according to the latest Gallup poll) while Democrats (75 percent) support the end of cannabis prohibition. This means that even if Congress passed a bill to legalize marijuana, such a bill is unlikely to make it past the Senate this year.

Marijuana isn’t Yet Divisive Enough to Cost Politicians their Jobs

The elected representatives on Capitol Hill don’t yet feel that their position on marijuana can cost them their jobs. Some opinion polls conducted last year discovered that a large majority of people (82 percent) would still vote for a politician even if that candidate had a different view on marijuana from that of the voter.

What such polls show is that politicians are unlikely to take the public’s views on marijuana seriously if the voters don’t put their representatives on the spot over the issue. Consequently, it is unlikely that marijuana will be legalized federally, unless the subject becomes so polarizing that political offices can be lost or earned based on this one issue alone.

There’s Money Involved

The role of money also rears its head on matters of cannabis legalization. Under the present legal framework, marijuana companies are subjected to very high corporate tax rates (as high as 90 percent). This is because such companies cannot claim corporate tax deductions since they deal in a substance that is federally illegal.

Legalizing cannabis would change the section of the tax code applicable to pot companies, and the federal government may lose approximately $5 billion over five years in corporate taxes from these companies. The federal government may be unable to recoup this money from the federal excise tax on legal marijuana sales since some states already have very high state-level excise taxes on cannabis, hence any increase can effectively be an advert for the cannabis black market. So, 2019 may not be the year for cannabis legalization at the federal level until a solution to this money conundrum is found.

While the issues above appear to be serious individually, the views of the voters can trigger a dramatic shift in the way cannabis is regarded at the federal level. The cannabis industry, including ChineseInvestors.com (OTCQB: CIIX) and Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) can only wait for that time when pressure from below forces the federal government to end cannabis prohibition.

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420 with CNW – Canadian Marijuana Producer Uses Fish in a Unique Way

As the cannabis industry matures, a number of innovations have been introduced in order to optimize marijuana grow operations. A Canadian producer is using fish to reduce how much water the marijuana grow uses while getting a better yield compared to conventional growing methods.

Green Relief Inc., based in Ontario, is using underground aquaponics to grow cannabis and raise freshwater fish as well. This one-of-a-kind method has enabled the cannabis producer to reduce their water consumption by up to 90 percent while increasing marijuana harvests by 20 percent.

In this cutting-edge system, the cannabis plants clean the water in which the fish live and grow while the fish provide wastes that are filtered to provide fertilizers for the cannabis plants. Consequently, the grow operation doesn’t use any artificial fertilizers or pesticides to produce cannabis for the market.

The company revealed that it opted for this sustainable way of growing cannabis and raising fish because any business that isn’t eco-friendly will soon be pushed out of the market since it will be regarded as a dinosaur. The only sign that one can see of this Ontario grow facility is its ventilation equipment sticking out of the hillside. Everything else is underground.

The closed-loop system used by Green Relief raises 6,000 fish (tilapia) and grows 4,500 marijuana plants. Every month or so, the company harvests the fish in one of its 16 fish tanks. 300 fully-grown tilapia from each harvest is donated to a charity that runs a soup kitchen for the homeless.

Green Relief is currently constructing other grow facilities in Hamilton, Halifax and Thunder Bay. The company plans to list on the Canadian Securities Exchange (CSE) in order to raise funds to take their production to higher levels. Green Relief also wants to list on Nasdaq soon. The Green Relief IPO in Canada will take place within a few months.

While the company is looking to strengthen its position locally, it is also taking steps to nurture an international presence to take advantage of the position of Canada as a global leader in the cannabis industry.

Warren Bravo, the company’s director of business development, is finalizing arrangements to acquire properties in Australia and Italy. He is also hammering out joint venture deals with two major laboratories in Switzerland.

Earth Science Tech, Inc. (OTCQB: ETST), FinCanna Capital Corp. (CSE: CALI) (OTCQB: FNNZF) and the entire cannabis industry take their hats off to Green Relief for championing sustainable cannabis cultivation, as well as giving back to the community.

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420 with CNW – Cannabis should be Reclassified Internationally, Says World Health Organization Committee

According to a leaked letter written by the World Health Organization’s Director General (Tedros Adhanom Ghebreyesus) to the UN Secretary-General, marijuana should be rescheduled from the most restrictive categories to less strict categories in all international treaties.

The recommendations in this letter were scheduled to be released publicly last year in December but this didn’t happen for unknown reasons.

According to the recommendations of the expert committee that studied the matter, whole-plant marijuana and marijuana resin should be removed from schedule IV (the most restrictive category) and left in schedule I.

The World health Organization also wants to be categorical and state that any cannabis products that contain less than 0.2 percent THC content aren’t subjected to any international controls. Previously, CBD didn’t appear anywhere in the international treaties that categorize different substances, so it was unclear what the position of the international body was on this substance. The letter now puts this matter to rest.

These recommendations will go to the UN Commission on Narcotic Drugs where 53 nations will cast a vote either to adopt the recommendations or reject them. Several countries, such as China and Russia, are expected to vote against the recommendations due to those countries’ history of being unwilling to see reforms in drugs laws.

However, other countries, such as Uruguay and Canada are certainly going to vote for reclassification, as will other European and South American countries where medical cannabis is legal.

It is harder to predict which way the U.S. vote will go. President Trump is quoted to have said that his administration respects the right of U.S. states to enact and implement their own marijuana laws, but the federal government has been reluctant to reform its own cannabis laws. One will therefore just have to wait and see how the U.S. representative at the UN votes when these recommendations are tabled.

While the recommendations contained in that WHO letter will not create any major legal shockwaves, they do have potentially serious political implications.

For starters, the rescheduling recommendations are a tacit admission that the UN and other world bodies made a grave error to classify marijuana as a substance that has no medicinal value. This decision seems to have been based on political considerations rather than being rooted in scientific data.

Secondly, the recommendations will embolden many countries to pass their own marijuana laws, as has been the case in the dozens of countries around the world that have legalized medical cannabis despite the current classification of marijuana as a substance with no known medical value.

Cannabis Strategic Ventures, Inc. (OTC: NUGS), Canopy Rivers Inc. (TSX.V: RIV) (OTC: CNPOF) and the cannabis industry in its entirety are waiting with bated breath to see how events will unfold worldwide once the recommendations of the UN are passed.

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420 with CNW – Four Things You May Not Know about Cannabis Jobs in the US

Your mind may immediately go to the rate at which different states are legalizing marijuana when the cannabis industry in the U.S. is mentioned. However, there is so much that many people don’t know about the job market in the U.S. cannabis industry. Here are four facts you most likely didn’t know about employment in the cannabis industry in the U.S.

Hiring Has Increased By 76 Percent

According to a study conducted by Glassdoor, the number of available jobs in the cannabis industry in the U.S. has increased by 76 percent when compared to the number of jobs that were available in 2017. Additionally, the second half of the year saw the biggest jump in the number of cannabis jobs advertised throughout the country.

Cannabis Jobs Have Attractive Salaries

Contrary to what many people may think, jobs in the cannabis industry don’t pay minimum wage. The Glassdoor research revealed that the average base salary for the jobs advertised in the cannabis industry was $58,511 a year. That figure may not be glamorous on its own, but it takes on greater significance when you realize that the median base salary across the U.S. in general is approximately 11 percent lower than the median base salary of the cannabis industry jobs advertised. In fact, slightly more than 30 percent of the cannabis industry jobs advertised paid more than $70,000 as base salary. In short, the cannabis industry may be among the best-paying industries in the country!

Many of the Top Employment Destinations Aren’t Where Recreational Cannabis is Legal

One may be tempted to think that the greatest number of jobs are to be found in locations where recreational cannabis was legalized. This is only partially true because the Glassdoor data shows that cities in California ranked highest among the top destinations for marijuana industry jobs.

However, cities in states where only medical marijuana is legal also pulled their weight as top cannabis employment destinations. For example, New York City was fourth on the list of the top 15 cannabis employment destinations while Chicago was seventh on that list.

Most of the Top Employers Are Traded Publicly

It is possible for casual observers to imagine that only Canadian cannabis companies are publicly traded. However, while the Canadian companies get the lion’s share of publicity, American marijuana companies are also traded on different stock exchanges. For example, Green Thumb Industries is traded on Nasdaq and it was the top employer in the cannabis industry. Others are MedMen Enterprises and Truelive.

While the findings of the study were only based on the jobs advertised on Glassdoor, the general idea is that the cannabis industry is growing fast since employers can only take on new hires once those employers are sure of sustainable growth to justify the cost of additional employees. The Glassdoor research is therefore good news to the marijuana industry, including Youngevity International, Inc. (NASDAQ: YGYI) and VIVO Cannabis Inc. (TSX.V: VIVO) (OTCQX: VVCIF).

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420 with CNW – Does the Tobacco Industry See its Future in Marijuana?

Tobacco cigarette sales have been on the decline in the U.S. for several decades now, and it seems the tobacco industry now sees its future in marijuana.

The major tobacco firms have been watching the cannabis industry as it evolves and they now think that having a part of this nascent industry holds the key to the tobacco industry’s future. The Big tobacco companies have several factors that favor their entry into the cannabis industry.

First, the tobacco industry has a well-known record of manufacturing products in a way that maximizes their addictive potential. You can therefore bet your last dollar that big tobacco will tap into this “heritage” to make marijuana products that will get their users hooked for life. Addiction is good for business because it assures you of repeat customers for decades to come.

Secondly, the tobacco industry has an extensive marketing network across the globe. This capability means that it will not be hard for the companies to get marijuana anywhere buyers or potential buyers may be. As you may know, several states, such as California, are already struggling with surplus supplies of cannabis. The marketing muscle of tobacco companies can fix that problem on a large scale.

Thirdly, tobacco firms have a long tradition of lobbying and navigating their way around tough legislative and regulatory scrutiny. This experience can be an invaluable resource to the cannabis industry that is struggling to shake off the association of marijuana with junkies and criminal gangs. Who knows, the lobbying resources of the tobacco industry can even make the federal government to move faster towards ending marijuana prohibition!

However, the tobacco industry does have some baggage that may make the cannabis industry jittery about jumping into bed with “big tobacco”.

For example, the tobacco industry didn’t win a lot of friends when it was discovered that the industry deliberately misled the public about the health and safety issues of cigarette smoking. Actually, the big players even used taxpayer money to find ways to make smokers addicted sooner!

Additionally, there’s agreement among experts that cigarettes are a product that will kill half of the people who use it as it was intended to be used. Cannabis industry players are a little uneasy about associating with an industry that has such a reputation.

That notwithstanding, a number of deals have already been struck between tobacco companies and players in the cannabis industry. One of the largest is one between Altria and Cronos Group worth $1.8 billion.

The cannabis industry, including TransCanna Holdings Inc. (CSE: TCAN) (FSE: TH8) and Therma Bright, Inc. (TSX.V: THRM) (OTC: THRBF), hopes that the tobacco industry doesn’t soil the reputation of cannabis as big tobacco jumps on the cannabis bandwagon.

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420 with CNW – Baltimore to Stop Prosecuting People for Marijuana Possession

The chief prosecutor in the city of Baltimore has announced that people will no longer be prosecuted for possessing marijuana. This announcement comes as a wave legalization is sweeping across the nation, and marijuana is no longer seen as the evil substance that it once was thought to be.

Marilyn Mosby, state attorney for Baltimore, revealed that her office will immediately stop prosecuting cases of marijuana possession. This decision will apply regardless of how much marijuana someone has been found with, or what the criminal history of that person is.

Mosby added that no serious person can ever claim that devoting the city’s scarce law enforcement resources to prosecuting marijuana possession cases is a good way to use taxpayers’ money.

Baltimore has the unenviable record of being the major city across the country with the highest homicide rates, with most of those homicides going unsolved. Mosby wants to focus a lot more on solving those violent crimes instead of being bogged down by marijuana possession cases.

The chief prosecutor admitted that the city’s law enforcement agencies take a huge hit in terms of their public image each time murders go unsolved and yet they are seen vigilantly going after people possessing marijuana.

She gave the example of what a mother whose son has just died because of gun violence. Such a mother cannot condone the allocation of resources to prosecuting marijuana possession cases instead of using those very resources to investigate and bring violent crime down.

However, there may be a showdown brewing between the city prosecutor and the men and women of the police department over this change in policy. Gary Tuggle, the Police Commissioner of Baltimore, insisted that his department will continue making marijuana possession arrests until the legislature changes the law about the matter.

This potential standoff is a tricky one to resolve because each side may have valid arguments to support it. For example, the prosecutor sees that it doesn’t make sense to keep fighting something that is hardly harmful to the public, while the police is doing its work of enforcing the laws as passed by the legislature.

The question is, what will happen once suspects are arrested by the police and the prosecutor refuses to sanction any charges against those individuals?

The best way out is for these two sister departments to find a middle ground on this issue so that ordinary people aren’t caught in the crosshairs as the elephants fight. Such a stalemate isn’t in the best interest of the marijuana industry, especially The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) and The Flowr Corporation (TSX.V: FLWR) (OTC: FLWPF).

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420 with CNW – Minnesota Legislators Introduce Marijuana Legalization Bill

Three legislators in Minnesota have introduced a bill that is intended to legalize recreational marijuana for adults in the state. Two senators (Scott Jensen and Melisa Franzen) and House Rep. Mike Freiberg are the brains behind this bill that was introduced on Monday this week.

The bill seeks to allow adults over 21 years of age to possess, grow and consume cannabis within the state. The state would also set up mechanisms through which the industry can be regulated in order to ensure that all activities conform to set standards during the cultivation, processing and marketing of marijuana. Special attention would also be devoted to preventing teens from accessing cannabis.

Frieberg released a statement in which he said that the prohibitionist laws of Minnesota were outdated and caused more problems rather than fixing the problem of drug abuse. He added that creating a regulated market would get rid of the criminals currently selling the drug and regulated sales would also bring revenue to the state while reducing the potential harm of marijuana to consumers.

Rep. Frieberg also said that it was time to start having a debate on marijuana in the state in order to come up with an appropriate model that will end cannabis prohibition.

In the bill, the Department of Health would be responsible for regulating cannabis dispensaries in the state. The department would also make sure that cannabis regulators establish a system that oversees the entire cannabis value chain from the time a seed is planted to the time the finished product is sold.

The bill will also allow the state to expunge certain cannabis arrests from the criminal records of those who qualify for such a reprieve. Under the bill, approximately $10 million from the cannabis tax revenue will be spent n the impoverished communities that have been affected the most by the prohibitionist laws. Millions of dollars would also be directed towards mental health programs each year in addition to funding education campaigns on drug use by teens.

The Marijuana Policy Project estimates that Minnesota can earn about $200 million to $300 million from marijuana taxes each year.

Currently, 10 states and Washington D.C. have legalized recreational marijuana while 33 states have legalized medical marijuana. Minnesota therefore will have a large pool from which to draw experiences when finalizing its marijuana law.

However, it may be a while before a final law is passed since the Senate’s Majority Leader (Paul Gazelka) said that the most that can happen during this legislative session is to have an informational hearing.

All the same, cannabis industry players like Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTCQX: SPWRF) and Sunniva Inc. (CSE: SNN) (OTCQB: SNNVF) hope that the discussions will be objective and culminate in a decision that is in the best interest of Minnesotans.

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420 with CNW – Another Cannabis Lounge Set to Open in Denver

Vape and Play, a social club that will allow patrons to consume marijuana in its premises, is due to open on February 18 in Denver. This will be the second lounge in the city where one can consume marijuana.

Such businesses are geared at addressing one of the biggest challenges that has existed since recreational cannabis was legalized in Colorado: where can one consume cannabis after buying it?

These businesses want to give cannabis users a place that is a little more than a smoke-filled room from which to consume their cannabis. In fact, Vape and Play aims to provide a venue that is “better than your living room.”

Megan Lumpkins, the Chief Operating Officer of Vape and Play, says that it was hard to come up with a business model for their establishment since such places don’t usually sell marijuana, yet they can’t just say “we have a seat where you can come and use the cannabis you just bought.”

Vape and Play has decided to adopt the model of an event venue where cannabis consumers will be charged an entry fee for two or so hours during which they can enjoy a comedy show or attend a fitness class while consuming their cannabis.

Such an approach may give their target market a valid reason to visit the venue since clients will be able to socialize as they use cannabis.

Lumpkins added that she hopes that other marijuana lounges or venues will open so that Denver can become a cannabis tourism destination where visitors can have a variety of experiences to enjoy while in the city.

The only other consumption lounge in the city is The Coffee Joint which was opened in March last year. The difference with this lounge is that the owners have a cannabis dispensary right next to it, so clients can buy their marijuana and then head to the consumption lounge.

It hasn’t been an easy ride to securing a license to open Vape and Play. The proprietors have had to jump through numerous hoops for over two years before they finally got approval for the business. This challenge could explain why this type of business hasn’t grown in the area despite the decision of voters in 2016 to permit consumption lounges.

Vape and Play plans to give visitors wristbands of different colors based on how much experience each visitor has with consuming cannabis.

For example, a seasoned user will be given a black wristband after completing a survey at the entrance. A “vape tender” will look at the armband of each guest and tweak the temperature setting of one of the custom vaporizers at the venue in order to allow that visitor to vape cannabis whose strength is equal to his or her experience level (a higher temperature setting gives a higher THC concentration in the vapor, for example).

The innovations brought by Vape and Play are welcome news to the entire cannabis industry, including Sugarmade Inc. (OTCQB: SGMD) and Sproutly Canada Inc. (OTCQB: SRUTF) (CSE: SPR) (FRA: 38G), since such innovations contribute to the growth of cannabis culture.

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