420 with CNW – California Judge Rules in Favor of Marijuana Home Growers

When California legalized recreational cannabis, it allowed people to grow a maximum of six plants for their own use. The state permitted cities and other local authorities to pass their own additional ordinances or regulations to implement the law passed at state level. Some cities, such as Fontana, took this liberty as a chance for them to put such severe restrictions that various aspects of state law, such as home growing, would practically be impossible within their jurisdictions. Someone sued, and a judge has ruled striking down several sections of the Fontana ordinance on cannabis.

The issues in contention were the strict inspection and permitting process for anyone who wanted to grow cannabis at home for his or her own use.

For example, each applicant for a permit had to pay in order to have a background check performed before the home growing license could be issued. The annual permit fees were also high, starting at $411 for the year in which the application was made and then $253 for each year that an approved applicant wanted to continue having a permit to grow marijuana at home.

In addition, applicants had to allow a city official to come and inspect their residence in order to confirm that the property conformed to all city requirements.

The plaintiff argued that the restrictions went against the spirit of the state law which legalized recreational cannabis. For example, the ordinance in Fontana allowed the city to deny an applicant the license to grow marijuana if that applicant had any outstanding city dues.

Additionally, state law didn’t envisage any permitting process for anyone who wanted to grow cannabis at their residence.

It is not surprising that not a single permit has been issued to a Fontana resident to grow cannabis at home so far.

David Cohn, a superior court judge, agreed with the plaintiff and struck down several sections of the city ordinance for being in violation of state law. He explained that the city could not claim to be implementing federal law since it wasn’t a federal entity.

What are the implications of this judgment delivered in the first week of this month? The city authorities have not revealed whether they will appeal against the judgment, but indicators are that they may modify the ordinance while leaving as many restrictions as they can.

Several local authorities have tried to do whatever they can to frustrate marijuana legalization in their jurisdictions. This judgment is likely to make them think twice before they pass restrictions which are “unreasonable” and go against the intention of the enabling state law.

The judgment is also unlikely to be used as a precedent in other cases since it was made by a lower court. However, the case may give other residents the courage to challenge the laws in other localities in case those laws make it very hard for them to enjoy the freedoms given under state law.

As Phivida Holdings Inc. (CSE: VIDA) (OTCQX: PHVAF) and Plus Products Inc. (CSE: PLUS) already know, plenty of time is required to change the mindset of various stakeholders after cannabis is legalized. The prayer is that the adjustment period doesn’t drag on for too long.

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420 with CNW – Israeli Researchers Look into Treating Endometriosis Using Cannabis

Gynica, a startup in Israel, has announced that it will conduct research in order to find a new cannabis-based treatment for endometriosis. The startup will use the newly licensed Lumir Lab found within Hebrew University in Jerusalem for this research.

Gynica specializes in providing marijuana-based solutions to the problems affecting the health of women. The lab will focus on medical cannabis research and product development.

Lumir Lab is headed by Lumir Odrej Hanus, one of the leading researchers on cannabinoids in the world. He is an analytical chemist.

Lumir Lab will collaborate with Gynica in this quest for a treatment for endometriosis. Endometriosis is a health condition in which tissues from the lining of the uterus migrate to other parts of the body. The condition causes a lot of pain among its estimated 180 million sufferers across the world.

Current research shows that the reproductive system of females is the second to the brain in terms of having the biggest number of endocannabinoid receptors within the body.

This reality creates an opportunity for cannabis to be used to influence the reproductive system so that uterine lining tissues reduce or stop moving from the uterus to the other internal organs of affected females.

The planned research by Gynica and Lumir Lab is intended to understand how cannabis works to alleviate the symptoms of endometriosis, or even stop the tissues from migrating. The research will also try to find the specific cannabinoids that give the greatest effects in preventing tissue migration or curbing disease recurrence in a way that leaves the ovulation cycle intact.

In the long run, the lab plans to set the standard by which cannabis research and product development is done around the world. Such research will help to address the concerns and reservations within the scientific community regarding cannabis as a treatment for various health conditions.

Currently, many of the cannabis treatments available are largely based on evidence that may not stand up to strict scientific scrutiny. Lumir Lab wants to end all this by bringing clinical analysis, validation and product development to the medical cannabis field. Terpene and cannabinoid profiling will also be done at the lab.

It is this type of research that will make cannabis treatments mainstream since no one will be able to claim that they don’t have any scientific backing behind them. Cannabis industry companies like Net Element (NASDAQ: NETE) and NUGL Inc. (OTC: NUGL) welcome every attempt to gather evidence in support of the different uses of cannabis, including the new efforts launched in Israel by Lumir Lab and Gynica.

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420 with CNW – Highlights of the 2018 Las Vegas Marijuana Business Conference

The 2018 Marijuana Business Conference held in Las Vegas came to an end on Friday last week after drawing record numbers of attendees. Several key issues can be identified from what transpired in Las Vegas during the conference.

Approximately 30,000 people were at this marijuana business conference. They ranged from marijuana business owners, vendors of cannabis products and investors gathering information before they make a decision to put money into the industry.

Such a huge interest can only confirm that marijuana is arguably the fastest growing industry across the world. This conclusion is valid given the rate at which different states within the U.S. and across Europe are legalizing some form of cannabis.

One of the biggest things to watch in the coming year are the changes that will be made in the way cannabis is grown. These changes are needed in order to grow as much as possible while cutting the cost of bringing the product to the market.

Some of the “smart” growing systems that were showcased could track various grow conditions, such as temperature and moisture level. The system can trigger the affected condition to be adjusted in a small area, such as a single grow bench.

In this way, you can minimize the inputs going into the cultivation process while increasing productivity. Such technologies will be key in the process of reducing the cost of producing each kilo or pound of cannabis.

Another trend to watch in the coming year and beyond is the growth in the number of pot lounges in states or countries where recreational marijuana has been legalized.

Pot lounges will play an increasing role in the cannabis industry for a number of reasons. First, different jurisdictions will have varying laws regarding the public smoking or use of recreational cannabis. A pot lounge therefore provides a haven where marijuana consumers can indulge without any fear of breaking public consumption laws.

Secondly, pot lounges provide an opportunity to create a cannabis lifestyle among consumers. The facilities can be designed and fitted in innumerable ways based on the wishes of the proprietors. This will create brand differentiation and build customer loyalty. A clear example of this is Planet 13, the largest cannabis retail store in the world located in Las Vegas. The establishment is already causing a stir in the industry and other places will have to take their cue from the standard that it has set.

Marijuana Company of America Inc. (OTC: MCOA), Medical Cannabis Payment Solutions (OTC: REFG) and other industry players may have left this conference confident that the outlook is bright for the entire cannabis industry.

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420 with CNW – First Cannabis Restaurant in the UK Set to Open

A restaurant that will offer meals infused with cannabis is due to open in the UK on December 1. The vegetarian and vegan dishes served at this Brighton restaurant will be infused with CBD compounds extracted from the cannabis plant.

The Canna Kitchen aims at changing the way people look at marijuana. The range of vegan and vegetarian dishes infused with CBD will show that marijuana isn’t just for recreational use. The restaurant wants to show the different fragrances, flavors, therapeutic and nutritional benefits inherent in the cannabis plant.

However, a client will first place an order to have his or her meal infused with CBD. This means that vegans or vegetarians who aren’t interested in sampling the cannabis-infused offerings can still dine at the restaurant.

It should be remembered that cannabis is a restricted substance in the UK and only became legal for medicinal use on November 1 this year. Those found in possession of cannabis may be jailed for five years while those found distributing it can be imprisoned for 14-years or face huge fines.

So, how will “The Canna Kitchen” operate legally? The laws in the UK permit the use of the non-psychoactive compounds in the marijuana plant. This means that the restaurant can freely use CBD and other non-psychoactive cannabinoids in its dishes without contravening any existing laws.

Cannabis is still highly restricted across the world. Only a few countries, including Canada and Uruguay, have legalized recreational marijuana. Ten states in the U.S. have permitted recreational marijuana and there are campaigns to end prohibition in more states.

Medical marijuana has fared better across the world with more countries making it legal nearly every month. This growing interest in cannabis has prompted many huge multinationals like Coca Cola to explore avenues of making cannabis-infused drinks so that the companies cash in on the wave of popularity that has engulfed marijuana. That wave of popularity is projected to be worth approximately $75 billion by 2030. That is such a huge magnet to anyone looking for a money-making opportunity.

Against that backdrop, the idea behind The Canna Kitchen is likely to trigger other entrepreneurial ventures all geared at bringing more cannabis-infused products to the market. After all, marijuana is now the new “cool” and even politicians are falling over each other to show support for legalization.

Existing industry players like GreenBox POS, LLC (OTC: GRBX) and Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) welcome the initiative taken by the brains behind The Canna Kitchen. Such efforts will be remembered when the cannabis industry becomes fully established around the world.

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420 with CNW – Canadian Tech Firms Gear Up For Cannabis Legalization Benefits

The legalization of cannabis in Canada has opened the door for different tech companies to cash in on the new opportunities presented by the cannabis industry. Several companies are testing or offering tech products and the consumers are loving those products.

Lobo Genetics is one such Toronto-based tech company that has a bright future if the preliminary interest in its latest product is anything to go by.

The company makes a handheld genetic testing device which only requires the user to take a swab from his or her mouth in order to assess whether that individual will metabolize THC (the major psychoactive ingredient in marijuana).

People who are genetically predisposed to metabolize THC are unlikely to develop adverse reactions when they consume cannabis whether for recreational or medical purposes.

The testing device was initially developed with the medical cannabis market in mind, but players in the recreational space have shown massive interest in it as well.

Strainprint Technologies Inc. is another Toronto-based startup that has designed an app for the cannabis industry. This app can help people track the strains, dosage of cannabis and any side effects that they notice as they use pot.

“Save the Drive” is another tech product being finalized in Winnipeg. It is intended to help people hire someone to buy and deliver cannabis to their addresses instead of driving out to a store themselves. The current supply shortages are the only reason why this platform hasn’t been launched as yet.

However, it is not just Canadian companies getting a piece of the action. A number of US-based tech companies have also thrown their hats in the ring.

“High There!” is a social networking platform with roots in Florida. The platform gives its users an opportunity to locate cannabis users with whom they can meet and enjoy a joint. The platform saw a massive 300 percent spike in new registrations when recreational cannabis became legal in October.

The founders of “Weedmaps” are based in California. Like the name suggests, “Weedmaps” helps people to locate places in Canada where one can buy cannabis. You therefore don’t have to drive randomly in a new place looking for a store selling cannabis.

Such tech innovations paint a very optimistic future for the opportunities available to the different industries with recreational cannabis now legal. It is hard to mention a single industry that may not benefit from the nascent marijuana industry. Golden Developing Solutions, Inc. (OTC: DVLP), Green Hygienics Holdings Inc. (OTC: GRYN) and other existing players welcome the new tech firms which have seen a gap that can filled in order to serve customers better.

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420 with CNW – Why Michigan May Have Decided to Levy Lower Cannabis Taxes

Michigan voters approved recreational marijuana in the recent mid-term elections and the state is now one of those with the lowest tax rates for cannabis. Didn’t Michigan need the revenue marijuana can bring? Was it playing for higher stakes? Several arguments can explain why Michigan chose the path it took.

First could have been concerns about the black market. The tax policy implemented by any state that legalizes marijuana influences whether consumers keep buying from the black market or switch to the legal product.

Michigan seems to have learnt from the pioneer states that legalized cannabis first. California has some of the highest taxes on marijuana, and it continues to struggle with the black market since illicit marijuana still costs much less than the marijuana from regulated suppliers.

Not many consumers would be willing to pay higher prices just because what they are buying is putting money in state coffers.

The low taxes set by Michigan may be geared at driving out the black market since the legal product would be priced competitively.

Secondly, Michigan may have designed their marijuana tax policy with cannabis companies in mind. Industry players are struggling to stay competitive and profitable in the states where taxes are very high.

The prospect of setting up shop in a state with low taxes may be attractive enough to lure many players into the Michigan cannabis space.

The third possible reasons why Michigan may have decided to levy lower taxes on recreational cannabis is the need to make the product affordable to as many willing consumers as possible.

The projections of the potential volume of retail sales often factor in how many people will consume the product on a regular basis. Those calculations can come to nothing if the target buyers see it as too expensive for them to afford.

Imposing lower taxes may therefore be a smart move to bring more consumers into the industry so that the sector can have a sustainable client base.

Generally speaking, taxes on marijuana have been falling as more states legalize adult-use cannabis. California and Washington which impose taxes in the range of more than 40 percent are increasingly becoming isolated as other jurisdictions levy lower taxes.

Fortunately, voters seem to have understood the logic behind the tax policy in Michigan. They voted the ballot measure through, unlike the voters in North Dakota who voted against the proposal.

It remains to be seen whether the reasoning behind the low cannabis taxes in Michigan bears fruit or not. Generation Alpha, Inc. (OTCQB: GNAL), Global Payout, Inc. (OTC: GOHE) and other industry players wish Michigan all the best on the journey it has started as one of the latest states to permit recreational cannabis use.

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420 with CNW – Canadian Employers Meet to Discuss Cannabis Legalization Implications

The cannabis forum of the Retail Council of Canada (RCC) met last month to discuss the workplace implications of cannabis legalization. The forum speakers and participants raised some issues that all employers need to think about as they adjust to the new reality in the country.

The first issue related to the medical cover provided to employees. Employers were asked to think about how they would respond if employees filed claims for medical cannabis benefits. Does the law compel the employer to provide such cover, or it is left to employers to decide whether to provide those benefits?

The second concern had to do with preventing impaired employees from showing up at work. Questions were raised about how the right of the employees to consume recreational cannabis could be married to the need to prevent impairment at work.

There was a suggestion that employers can impose consumption guidelines similar to what other sensitive sectors, such as the airline industry, impose on employees. For example, pilots are instructed to refrain from taking alcohol within a certain number of hours before they are scheduled to fly a plane.

The employers were cautioned to avoid imposing a blanket ban on cannabis consumption since that would be illegal and expose them to liability issues. Only those employers who could prove that the job required total abstinence could take such action. For example, it would be reasonable to restrict security guards from consuming recreational cannabis on the job or some hours before their shift begins.

There was a call for scientific data on how long someone can be impaired after consuming cannabis. Such data would provide a basis upon which employers can draft cannabis policies for their employees.

The issue of impaired customers was also raised. It is one thing to provide guidelines for your employees and it is a totally different matter when it comes to impaired customers in retail outlets.

Members in attendance suggested that employees need to be given some training regarding how to handle customers who visit retail establishments while apparently impaired after consuming cannabis.

The possible fear of being stigmatized for consuming recreational marijuana also came up. A speaker at the forum predicted that some employees may falsely claim that they are medical cannabis users in order to explain away their impairment while at work.

Other members suggested that it would be reasonable for employers to ask employees for a copy of their documentation for medical cannabis to prevent such false claims. However, the employer should not ask for the diagnosis upon which the authorization card was issued since that would be overstepping the acceptable boundaries.

The forum ended with members agreeing that more sessions need to be organized so that people can continue to share experiences and ideas regarding the workplace implications of cannabis legalization. Such healthy and progressive discussions are music to the ears of cannabis companies like Earth Science Tech, Inc. (OTCQB: ETST) and FinCanna Capital Corp. (CSE: CALI) (OTCQB: FNNZF) since such discussions differ from the polarized, adversarial pronouncements that are made in some jurisdictions.

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420 with CNW – Greenhouses Could Eliminate the Cannabis Black Market

Canada has seen a number of cannabis cultivators shifting to the use of greenhouses instead of growing the crop in indoor grow rooms. This new development could mark the final days for the cannabis black market in Canada and elsewhere.

Greenhouses can drive down the cost of legal marijuana in several ways.

As you may know, land accounts for one of the biggest costs that marijuana cultivators have to incur in order to bring the produce to the market. Indoor grows are located on prime industrial land which costs a fortune.

The shift to greenhouses means that cannabis producers can go to rural agricultural land which is cheaper to acquire. The reduced cost of land can translate into lower prices for each pound or kilo of cannabis.

Secondly, indoor grow facilities consume a lot of electricity in order to create the ideal conditions for growing cannabis. That high cost of providing electricity has always meant that legal cannabis will be more expensive than what is available on the black market.

Greenhouses can allow cultivators to use just 40 percent of the power that they needed when they were growing the plants indoors. This reduced energy demand would then make it cheaper to grow cannabis for the legal market.

Furthermore, greenhouses allow the economies of scale to come into play. As already mentioned, rural land is cheaper than the industrial land where cannabis has been grown indoors. Mega cannabis operations can therefore be undertaken on the expansive agricultural land which is available in Canada and elsewhere where cannabis is legal.

Pure Sunfarms is an example of cannabis producers in British Columbia who have decided to harness the power of the sun to grow marijuana. The facility has greenhouses covering a staggering 1.1 million square-feet. The complex used to cultivate other produce, such as tomatoes and peppers, before the greenhouses were retrofitted for the cultivation of cannabis.

This trend is likely to be replicated across Canada and the rest of the world if production costs are to be driven downwards. That means that big agricultural operators are going to drive the smaller players out of business since the “small guys” will not manage to compete with their bigger counterparts.

Ultimately, it is the cannabis consumers who will benefit since the competition among the big players will keep driving innovation in order to cut production costs further. It is those low production costs that will eventually kill the black market since the risks of illegal production are likely to increase with the passage of time. Legal cannabis industry players like Cannabis Strategic Ventures, Inc. (OTC: NUGS) and Canopy Rivers Inc. (TSX.V: RIV) long to see the day when the black market will dwindle to an insignificant level across the industry.

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420 with CNW – What the World Can Learn from the Dutch about Cannabis

Debate about cannabis has taken center-stage across the world after Canada took the bold decision to legalize recreational marijuana on October 17 this year. As people observe events in Canada, the true lessons about marijuana may lie in Europe, the Netherlands in particular. Several lessons are plain to see for those who are willing to observe how the Dutch have handled the issue of cannabis.

Neutral Observation is Important

While Nixon’s government declared all-out war on marijuana and other psychoactive substances, the Dutch opted for another approach. They decided to neither outlaw nor legalize cannabis. They “tolerated” it and observed what it would do to its users and others involved in the “industry”. That observation led the authorities to conclude that marijuana didn’t pose a serious-enough public safety risk to warrant the allocation of law enforcement resources to fight it.

Lesson number one? First observe a substance you are interested in before you make any policy decisions about it. You will rarely go wrong if you take this approach.

Tolerance Disarms Counterculture

Every community will have a group of people that will want to identify with what is illegal. The hippies are an example of a counterculture movement that swept across the U.S. decades ago. The youth are another section of the community that will be drawn to anything illegal “just for just”.

Counterculture has the irresistible “cool factor” attached to it, and declaring a substance illegal instantly gives it a cool factor. See how the U.S. FDA is having sleepless nights due to the explosion in the use of electronic cigarettes by minors.

The Dutch decided to tolerate cannabis, so it was no longer a substance of choice for those who wanted to rebel against society. It wasn’t cool to light a joint. That provides cannabis lesson number two for the world.

Tolerance Limits Criminal Involvement

The Dutch don’t have a huge cannabis black market to gobble up law enforcement resources because “coffee shops” openly sell marijuana to their clients. The government controls how much stock each establishment can have, and it imposes taxes on each gram of cannabis sold.

Law enforcement just steps in once in a while to confirm that the sellers aren’t breaking any of the rules regulating the sale of cannabis. Why would anyone buy from the black market when the same product can be procured openly? Lesson three, criminalizing cannabis will only magnify law enforcement headaches without stopping the criminal enterprises involved.

Science Prevails Where Legalization Occurs

Is cannabis legal in the Netherlands? No. Is it illegal? The answer again is in the negative. Cannabis is somewhere between legal and illegal, it is tolerated. This kind of legal regime has made it hard for the scientific community to study cannabis in the Netherlands. Consequently, the country has very little to show for all its decades of cannabis tolerance. Countries like Canada that legalized medical marijuana may have more knowledge about the plant than the Netherlands where it has been available for decades.

Lesson four? Legalization is the only way through which the scientific community can devote the immense resources needed to conduct studies about cannabis. This fourth lesson, along with the other lessons, may be why companies like ChineseInvestors.com (OTCQB: CIIX) and Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) would like to see different jurisdictions enacting laws to regulate the cannabis industry so that it grows in a responsible way instead of letting it thrive underground.

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Political Wins Hold Promise for Strong Cannabis Strategies

CannabisNewsWire Editorial Coverage: State ballots and the departure of Jeff Sessions have led to fresh confidence in the cannabis sector.

The cannabis industry is going through a period of huge growth.
Two states recently voted to legalize medical cannabis and one voted to legalize recreational cannabis.
The departure of Jeff Sessions removes a significant block for the industry.
A variety of strategies—some focused on product and others on support services—are emerging to make the most of this market.

Generation Alpha, Inc. (OTCQB: GNAL) (GNAL Profile) has developed a dual strategy to make the most of this opportunity, investing in both product and supplies for producers. MedMen Enterprises, Inc. (CSE: MMEN) (OTCQX: MMNFF) is financially supporting further legal reform while building up a cultivation and retail business across several states. KushCo Holdings Inc. (OTCQB: KSHB) has grown from a packaging company to one providing a range of support services. As new niches emerge, The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD) is staking its claim through a focus on organic, sustainably grown cannabis. Even non-cannabis companies are profiting from this growth, with Scotts Miracle-Gro Company (NYSE: SMG) investing in hydroponics offerings that will supply crucial equipment to cannabis cultivators.

To view an infographic of this editorial, click here.

A Blooming Industry

Cannabis companies are in a jubilant mood following the results of last week’s events in American politics. At the polls, two states voted to legalize medical cannabis while another voted to permit its recreational use. Though Congress lost several pro-cannabis Republicans, a majority for the Democrats, America’s less conservative party, is a good omen for reform. And with President Trump’s sacking of Jeff Sessions, the country is now rid of a staunchly anti-cannabis attorney general.

This opens the way for companies with strong cannabis strategies to make bold moves in the coming year. From entering new states to producing fresh product lines, the options for growth and development are many. A few key considerations define the strategies of the current cannabis players.

Product Versus Infrastructure

Two basic approaches to business strategy currently dominate the cannabis market — one based on infrastructure and the other based on product. However, these strategies don’t have to be separate, and Generation Alpha, Inc. (OTCQB: GNAL) is building strong businesses by combining them. And the way this strategy plays out shows a lot about where the industry is at.

The product strategy is an obvious one and typically garners the most public attention. Companies going down the product path focus on the production, processing, and retail side of cannabis. These are the companies setting up farms and dispensaries, feeding the growing demand from consumers across North America. It a strategy that Generation Alpha recently moved into, under its previous name of Solis Tek, with the acquisition of cultivation and processing facilities.

The other strategy is to provide support services and supplies for product-oriented companies. As the market grows, there will be more and more need for such services, which profit off cannabis but are better insulated from shifts in the market and its political oversight. Generation Alpha started out with this strategy, as a vertically integrated technology innovator, developer, manufacturer and distributor bringing products and solutions to cannabis growers. Providing horticultural and lighting supplies, the company grew by providing cannabis growers with the equipment they needed.

Each strategy can work well on its own, but running a double strategy, while more complex, has real potential benefits. As both supplier and customer for cultivation equipment, companies such as Generation Alpha can create great efficiencies in their supply chains. And by developing both business streams, they can benefit from the security of a picks-and-shovels approach while also accessing the growing profits of the front-line cannabis trade.

Location, Location, Location

Choosing which states to operate in is an important consideration for American cannabis companies. Although it is widely anticipated to change, cannabis currently remains illegal at a federal level, and it is only through state-level initiatives that the market has been allowed to emerge. Cultivation and retail effectively operate on a statewide scale at best, so looking at where a state stands now and where it is likely to go in the future is vital to making savvy business decisions.

Arizona, where Generation Alpha recently acquired cultivation and processing facilities, provides a useful example of how local conditions shape the market. The state made medical cannabis legal in 2010. Despite a closely fought vote, opponents of cannabis have failed to overturn or limit the market despite ongoing campaigns. The state’s supreme court even overturned a rule keeping medical cannabis off college campuses. Arizona’s medical cannabis market seems secure.

In 2016, an attempt to legalize recreational cannabis in the state failed by a narrow margin. Medical legalization faced a similar setback in 2002, only eight years before passing. As recent generations are generally more liberal toward cannabis than their elders, it is likely that a similar pattern will play out for recreational cannabis, with a successful vote almost inevitable. Companies that have become established under the medical licensing laws will be in a strong position to make the most of this.

“We are excited about this opportunity in Arizona and its growth and profitability potential,” said Generation Alpha CEO Alan Lien. “We are pleased to have partners such as Future Farm Technologies and Yorkville Advisors to collaborate and support the build-out and growth of this facility. Our collective experience and knowledge in cannabis will position this Arizona operation for success. We are excited to commence Phase 1 of the development and construction of our state-of-the-art cultivation and processing facility and look forward to many additional opportunities in the cannabis industry.”

Expanding Operations

The potential of the Arizona market hasn’t gone unnoticed by other companies. MedMen has invested heavily in getting into the state, acquiring a top Arizona medical cannabis wholesaler.

This is part of a wider pattern of companies spending big to secure their spots in a burgeoning cannabis sector. For example, drinks giant Constellation Brands has spent billions investing in a Canadian cannabis company to give itself a foothold in the industry. Canadian and American companies are looking at cross-border investment, while outsiders are moving into the market as well.

This big spending only adds to the strength of infrastructure plays such as Generation Alpha’s strong position in cultivation equipment. Much of the money being invested will go into growing more cannabis. That means more hydroponics, lighting and related services will be needed across the legalized states. Any investment in cannabis cultivators ultimately becomes an investment in their suppliers.

Where Next for Cannabis?

The next few years promise solid growth for the cannabis industry in North America. Even before this month’s political upheavals, analysts projected that the $9 billion industry would grow to $47.3 billion by 2027.

The fallout from the mid-terms means that investors can be even more confident about what happens next. The forced resignation of Jeff Sessions removes one of the biggest obstacles to growth for the cannabis industry in the United States. Sessions, a staunch opponent of cannabis, had rescinded the Obama-era memo committing federal law enforcement to non-intervention in state-level cannabis industries. With him gone, cannabis shares rose as businesses and investors looked forward to a more tolerant regime.

This won’t mean an end to campaigning for MedMen Enterprises, Inc. (CSE: MMEN) (OTCQX: MMNFF), the largest financial supporter of progressive marijuana laws, but it does mean that the company’s campaigning efforts are more likely to pay off, creating space for expansion of its cultivation and retail business. The company already operates 19 facilities in four states and has recently announced the addition of a fifth, through a move into Arizona. Despite the limitations created by federal laws, MedMen is showing that cannabis companies can operate on an inter-state level.

Like Generation Alpha, KushCo Holdings Inc. (OTCQB: KSHB) entered the sector by providing support services to cannabis producers, in the form of packaging solutions. The company has since expanded its operations, creating a one-stop shop for the cannabis market. Seeing the huge potential currently available, it has recently formed an advisory board to guide strategic growth initiatives, making the most of a constantly expanding market.

While KushCo provides another example of the infrastructure strategy, The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD) is focused on product. A producer of organic, sustainably grown cannabis, the company is making the most of the connection between cannabis consumption and concern with environmental issues. In a market large enough to start dividing into specialist niches, it is tapping into the higher prices people will pay for organic products.

Not every company profiting from cannabis is focused on that market. Lawn, garden and outdoor living company Scotts Miracle-Gro Company (NYSE: SMG) has been benefiting from the demand for cultivation equipment that cannabis’s success brings. It recently acquired the United States’ foremost distributor of hydroponic equipment, which is crucial to the cultivation of cannabis. As the cannabis industry grows, so too does hydroponics.

Political change offers further growth for an already flourishing industry, allowing profits from a wide range of strategies.

For more information on Generation Alpha, visit Generation Alpha, Inc. (OTCQB: GNAL)

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