Embed Size (px)
Citation preview
VENTUREM A R I J U A N A
US $7.99 / CAN $9.99
JUNE 2017
AWARD-WINNING NATIONAL CANNABIS BUSINESS MAGAZINE
Doctors, growers, retailers and more are pioneering the marijuana industry
THE GREEN PAGES:Importance of sustainability and consumer education
spurs the rising demand for organic cannabis
Inside Canada’s most innovative production facility
CANNABIS IN CANADA
CALIFORNIA’S FASTEST-GROWING CLONE FACTORY
Medicine Creek
6440 UNDER 40
Marijuana Venture highlights 40 rising stars in the cannabis
industry, including the president of Washington’s Cannabis
Alliance, the leader of a family farm in Colorado and one of the youngest CEOs of a Canadian
licensed producer
50NEVADA RETAIL
Medical marijuana dispensaries in Nevada
gear up for the transition to recreational sales
MJVenture
features
54DARK HEART
One California business excels by specializing in
providing clones to commercial growers
ABOUT THE COVER: Marijuana Venture presents its second annual 40 Under 40 feature on industry influencers, leaders and pioneers. The special section starts on Page 64.
8 | Marijuana Venture // June 2017
130 THE GREEN PAGESMarijuana Venture’s new month-ly installment looks behind the scenes at Alter Farms, an all-nat-ural grower in Southern Oregon, and looks at the complexities of certifying cannabis as organic.
144LEGAL PAGES• Without bankruptcy option,
personal assets are at risk.• Legalization increases focus on
medicinal users’ rights.• Owe taxes you can’t pay? You
have options.• The push for diversity in a
mostly white industry.
OPINIONS18 | Message from the Publisher22 | Letter from the Editor28 | Quick Hits
contents
BASICS24 | Calendar34 | Market Watch153 | P.O.V.157 | Ad Directory158 | Photo Page
PROFILES40 | Vincent Petrescu
SPOTLIGHTS42 | Pollen Gear 42 | Neem Cake 6-1-242 | Lemonhaze44 | Shimadzu44 | PrimoCombi46 | Green Card Greetings46 | Green Care Network46 | Valoya
Marijuana Venture’s goal is to provide the best information possible to the legal, licensed, commercial marijuana business. Our belief is that a great business publication will help professionals in the industry create more efficient and profitable businesses.
mission
42
the
GREEN PAGES
130
NEW!
10 | Marijuana Venture // June 2017
Staff
Chloé was born and raised in Wisconsin, where she graduated from St. Norbert College in Media Communi-cations and Graphic Design. In her free time, Chloé enjoys photography, woodworking, exploring the Pacific Northwest and making incredible grilled cheese sandwiches.
Chloé MehringGraphic Designer
Resident avocado enthusiast and Street Fighter II champi-on, Patrick graduated from the University of Washington with a degree in communications in 2014. When he isn’t making snarky quips around the office, he works on editing, research-ing, writing and the concept of compound modifiers.
Patrick WagnerStaff Writer
Originally from upstate New York, Brian is an award-win-ning journalist, photographer and editor with 16 years expe-rience who joins Marijuana Venture after editing a week-ly newspaper outside Seattle. He is a former punk rocker, a sketch comedy performer and a Philly sports fan.
Brian BeckleyManaging Editor
Born and raised in Seattle, Brandon loves his city, com-munity and family. He is also an avid Seattle sports fan and local music enthusiast who’s driven by new challenges and new experiences. But please, don’t get him started on beer and wine. He thinks he’s an expert or something.
Brandon OwenMarketing Intern
Aaron joined Marijuana Venture after years of sales account management in the construction industry and management in the music business. He enjoys all things outdoors, playing music and causing trouble with his young sons.
Aaron GreenreichAccount Executive
Greg founded Topics Enter-tainment in 1990 and grew it to be the largest privately held consumer software company. After graduating from Bellev-ue High School in 1975, he enlisted in the Navy. He was honorably discharged after serving from 1975 to 1979. He has four kids and enjoys skiing, hiking, scuba diving, sailing, biking and foreign travel.
Greg JamesPublisher
Prior to helping start Marijuana Venture in 2014, Garrett was an award-winning — and once laid-off — writer, editor, photographer and page design-er for multiple newspapers, who never expected to be as knowledgeable as he is about the personalities of pet rats.
Garrett Rudolph Editor
Lisa SmithSales ManagerLisa is a longtime advocate for legal marijuana and feels fortunate to be a part of the industry. She especially enjoys working with and getting to know our advertisers. If you’re interested in getting your message out and in front of this new & evolving category, drop her a line, we’re certain she can help and would love to hear from you.
14 | Marijuana Venture // June 2017
LAUREN RUDICK represents investors and startup organizations in all aspects of business and intellectual property law, specializing in cannabis, media and technology. Her law firm, Hiller, PC (www.hillerpc.com), is a white-shoe boutique firm with a track record for success and handling sophisticated legal matters that include business and corporate law.
Expert contributors Marijuana Venture seeks out well-respected experts in their fields to contribute content and guidance for cannabis industry business owners and managers.
JESSICA MCCONNELL is of counsel in the Portland office of Williams Kastner Greene & Markley (www.williamskastner.com). Her practice concentrates on federal, state and local tax controversies, including tax audits, offers in compromise and tax collection matters. She excels at complex audits, offers in compromise, employment tax liabilities and protecting her clients against unwanted and unexpected collection efforts.
JASON GELLER is the managing partner of Fisher Phillips’ San Francisco office. He represents employers in all facets of employment law matters. He has extensive experience defending employers in federal and state courts, as well as in investigations by the Equal Employment Opportunity Commission, U.S. Department of Labor and the National Labor Relations Board. In addition to defending his clients in litigation, he frequently counsels employers to assist them in avoiding litigation. He can be reached at [email protected].
MATTHEW CLEARY is an attorney at Van Kampen & Crowe PLLC (www.vkclaw.com), practicing business and transaction law with an emphasis on the cannabis industry. He has represented cannabis businesses from highly trafficked retail stores to large producer operations and everything in between. Before practicing law, he was an enforcement officer for the Washington State Liquor and Cannabis Board.
16 | Marijuana Venture // June 2017
18 | Marijuana Venture // June 2017
PUBLISHERGREG JAMES
EDITORGARRETT RUDOLPH
MANAGING EDITORBRIAN BECKLEY
SALES MANAGERLISA SMITH
ACCOUNT EXECUTIVEAARON GREENREICH
STAFF WRITERPATRICK WAGNER
GRAPHIC DESIGNERCHLOÉ MEHRING
MARKETING INTERNBRANDON OWEN
CONTRIBUTORSMatthew ClearyJason A. Geller
Jessica McConnell
Maxwell MartinLauren RudickSue Vorenberg
MARIJUANA VENTURE VOL. 4, ISSUE 6Marijuana Venture (ISSN #2376-0710) is published monthly by MJ Directions LLC. PO Box 1419, Renton, WA, 98057. Phone: (425)656-3621. Website: www.marijuanaventure.com. Copyright 2016 by Marijuana Venture. All rights re-served. Reprinting, in whole or in part, is expressly forbidden without written permission from the publisher.
ADVERTISINGFor advertising rates, call (425)656-3621 or email [email protected].
SUBSCRIPTION SERVICESFor subscription services, please call (425)656-3621, visit www.marijuanaventure.com or email [email protected]. For change of address, please include the old address and new address, along with an address label from a recent issue, if possible. Please allow up to three weeks for address to be changed. If an address is not updated when the magazine is mailed, we are not responsible for delivery of your magazine. If the Post Office alerts us that your magazine is undeliverable, we will suspend our subscription until a correct address is received.
Marijuana Venture assumes no responsibility for any claims or representations contained in the magazine or in any adver-tisement. All materials contained are for educational purposes and intended for the legal marijuana business where allowed by state law. Marijuana Venture does not encourage the illegal use of any of the products contained within.
A MESSAGE FROM THE PUBLISHER
To those who are still scratching
their heads about Don-ald Trump winning the presidency, fake news and dozens upon doz-ens of scandals, I sim-ply say this: Thank god
for The New York Times and the rest of the real journalists that still report on real stories.
As I started writing this month’s edito-rial, Bill O’Reilly had just been fired by Fox News. And the biggest reason was the explosive, well-researched piece in The New York Times exposing the $13 million paid to numerous women who had accused O’Reilly of sexual harassment. Natural-ly, he claimed he was a “target” because of his stature, but any-one with a lick of sense would know what a crock of bull that is. (For exam-ple, why hasn’t Sean Hannity, another fa-mous Fox mouth, been sued?)
Frankly, I find O’Reilly’s ilk, and the rest of the far-right media, repul-sive. They’re certainly smart enough to know their form of news is mostly lies cooked up to appeal to the feeble-minded, yet it doesn’t bother them. In other words, they’ll take the cash and harm the United States without a second thought. We al-most certainly ended up with Trump and all the idiots he’s appointed to important positions because of the never-ending garbage spewed forth by Fox News, Bre-itbart News and the far-right radio jocks who have no qualms preaching to gullible dimwits. Obama born in Africa? 9/11 was a government job? The Clinton child sex scandal? The Pope endorsed Trump? Sure, and the moon is made of cheese.
If you need further proof of the type of crap the fake news types on the right spew
out of their pie holes on daily basis, take time to research Alex Jones’ custody bat-tle. The well-known, right-wing radio host, who has millions of followers (including Donald Trump), is in a nasty custody bat-tle with his ex-wife. His own attorney, in a statement to the judge, stated in no un-certain terms that Jones is a “performance artist.” That same attorney told the court that Jones doesn’t actually believe any of the loony conspiracy theories he pushes on stupid people on a daily basis. “It’s all an act,” the attorney told the judge. I guess when push comes to shove in a courtroom, Jones had to admit he’s a liar and a fake (and that he occasionally smokes pot, purely to “monitor its strength”).
Why does this matter to the legal marijuana commu-nity? Because folks like Jones helped get Trump elected, then Trump appointed At-torney General Jeff Sessions, who has the look and demeanor of a cop straight out of “Leave it to Beaver” from the 1950s.
Sessions can — and very well may — wreak havoc on the legal marijuana
community despite the well-established evidence in both Washington and Colo-rado that legalizing recreational canna-bis for adults is much smarter than pro-hibition. My advice: Go subscribe to The New York Times, The Washington Post, The Economist, The Atlantic or some other “real” source of news. Support these businesses and be damn glad this country still has some really good inves-tigative reporters. Those reporters are the only thing between us and a govern-ment that is rapidly starting to resemble a third-world kleptocracy run by dorks elected by the gullible.
GREG JAMES PUBLISHER
Fake News and The Right Wing Support publications that pursue the truth
BE DAMN GLAD THIS COUNTRY
STILL HAS SOME REALLY
GOOD INVESTIGATIVE REPORTERS
“
22 | Marijuana Venture // June 2017
LETTER FROM THE EDITOR
We live in an era when racial and
religious tensions seem to be at their highest point in decades. This socio-political land-scape makes broad-stroke stereotyping and
misinformation campaigns especially ef-fective and dangerous.
However, to me, the marijuana move-ment has been one of the few subjects in recent years that has made measurable, meaningful social progress. People have finally begun to allow facts to guide their beliefs, rather than propaganda and unsub-stantiated personal biases.
In the three years we’ve been publishing Marijuana Venture, I’ve had countless peo-ple tell me they never have and never will use marijuana, yet they fully support le-galization. They recognize that the War on Drugs has been a complete failure, both in its ineffectiveness and its wasteful spending of taxpayer money; they’ve opened their eyes to the true medicinal value of cannabis; they recognize that it’s far safer than alcohol, to-bacco and many pharmaceuticals; and they acknowledge that the dangers of prohibition outweigh those of legalization.
But every once in a while, something will catch my eye and remind me how far we still have to go. Typically, it’s a head-slap-ping statement from some right-wing poli-tician, such as Jeff Sessions likening mari-juana to heroin. In other circumstances, it’s the concoction of some marketing dimwit — remember Buddie, the legal-weed mas-cot of ResponsibleOhio?
In April, that jaw-dropping moment of disbelief came in the form of “Weed Smoke OK,” a short, animated series distributed by High Times that rolls out every awful pot-re-lated stereotype you can imagine.
The characters, mostly dispensary em-ployees and customers, are nymphomani-acs, drug addicts and hucksters. They’re portrayed as lazy, stupid, dirty and for-getful — “Frank, dude, forgot to pay the electric bill,” laments the main character in one scene.
The absurdity of the plot is only out-matched by the perpetual undertones of racism and misogyny.
And perhaps worst of all, it’s not even funny.
I don’t get offended easily. Actually, I real-ly enjoy off-color humor that may not be ap-propriate for all audiences. Weed Smoke OK doesn’t offend my delicate sensibilities, per se. If it were funny — like Don Rickles on the warpath, or even “Half Baked” — some of the content might be forgivable. Let’s just say this is a far cry from a stand-up comic cracking pot jokes for laughs.
But it’s not hard to imagine the type of people who probably enjoyed Weed Smoke OK the most — those looking to confirm negative stereotypes about marijuana users in order to generalize the entire industry:
People like Jeff Sessions, the anti-civil rights attorney general of the United States, the man who was too racist to be a federal judge back in the 1980s but just the right level of racist to be the nation’s top law enforce-ment official in 2017.
People like Kevin Sabet, the prohibitionist crusader who uses lies to push his agenda, a man who likely salivates at the idea of just one fatal marijuana overdose to prove his rhetoric.
People like drug czar nominee Tom Ma-rino and Chris Christie, chairman of the Trump administration’s Opioid and Drug Abuse Commission. In other words, people who blindly believe the negative stereo-types with every fiber of their being.
It’s worth noting that the cartoons were not specifically created by High Times, but by publishing the cartoons, the iconic magazine brand is sanctioning these hor-rendous stereotypes.
I’m guessing there will be backlash.Marginalizing cannabis users and busi-
ness people has the potential to erase de-cades of progress.
High Times should know this better than anybody.
But then again, maybe that was the in-tention.
GARRETT RUDOLPHEDITOR
Cartoon series hits new low in stigmatizing marijuana
Tax Defense
Accounting
24 | Marijuana Venture // June 2017
NEW YORK — The Cannabis World Con-gress & Business Exposition will host its fourth annual trade show at the Javits Center in New York City on June 14-16. The event focuses on the medical cannabis market, but also high-lights the state’s relatively new hemp industry and a broader political discussion.
Keynote speakers include the Reverend Al Sharpton, the highly controversial Republi-can political adviser Roger Stone and former professional wrestler, Minnesota governor and television host Jesse Ventura.
Scott Giannotti, the expo’s managing direc-tor, calls Stone’s speech a “watershed” moment.
“As far as I know, there has never been some-body so close to the president and with as much impact on advising the president — who is not only going to be at the show – but is going to
be there for two days, with a booth,” Giannotti says. “When he leaves our show, I guarantee you he is going to talk to Jeff Sessions and I guarantee you he will talk to Donald Trump. That reflection on our show is going to be a re-flection on our industry as a whole.”
The expo also features a legislative pan-el with several state senators discussing New York’s laws, as well as a pavilion highlighting some of Canada’s largest players.
This will be the first of two shows in the North-east hosted by the Cannabis World Congress & Business Expo. In October, the first-ever Boston expo will have a larger emphasis on Massachu-setts’ eagerly-anticipated adult-use market.
Tickets for the CWCB Expo start at $99 and a detailed list of the seminars, speakers, exhib-itors and more can be found at: cwcbexpo.com.
CANNABIS CALENDAR
NY event hosts former Trump adviser as keynote speaker
Attendees network on the show floor of the Javits Center
during the 2016 Cannabis World Congress & Business Exposition.
– MORE EVENTS –June 3-4GrowXSan Jose McEnery Convention CenterSan Jose, CaliforniaCost: $20-30 Mygrowx.com
June 10PDX Hempfest ExpoPortland Expo CenterPortland, OregonCost: $20Hempfest.org
June 12-14The NCIA Cannabis Business SummitOakland Marriott City CenterOakland, CaliforniaCost: $695-895Cannabisbusinesssummit.com
June 21-22InterchangeRenton Pavilion Renton, WashingtonCost: $2,500-3,000Marijuanaventure.com/inter-change
June 21-23CEA Hands-on WorkshopCEA Learning Center EastWindsor, Connecticut Cost: $995Growerssupply.com/techcenter
June 23-25Alaska HempfestHouston, AlaskaCost: $10 (suggested donation)Hempfest.com
June 23-25Oregon HempfestDixonville Log PondRoseburg, OregonCost: $20-60Hempfest.org
July 8710 Degree CupAmerican Royal PalacePhoenix, ArizonaCost: $0-85Theerrlcup.com
Interchange Spring ‘17
Interchange Fall 2016 was a huge success!Millions of dollars in sales were made or committed to. The next event on June 21 and 22 at the Renton Pavilion in Renton, Washington will feature over 40 retail stores and buyers.
Interchange is not just another trade show, it is a buy/sell event for the legal marijuana industry where buyers meet with new vendors and do business!
• 40 plus licensed retail stores• The biggest legal marijuana market in the world• Industry only. Open to retailers, processors,
growers/vendors and jobbers
CALL NOW TO REGISTER! • (425) 656-3621 • [email protected]
Don’t miss out on
SPRING1̔7
• Each vendor participant gets two days of private one-on-one meetings with buyers
• Breakfast and lunch provided• Limited to 50 vendors. Don’t miss out this time!
JUNE 21-22 • RENTON PAVILION IN RENTON, WASHINGTON
SUMMER‘17INTERCHANGE
26 | Marijuana Venture // June 2017
CANNABIS CALENDAR
July 13-15CannaConHynes Convention CenterBoston, MassachusettsCost: TBACannacon.org
July 15TerpestivalDockside Cannabis – Sodo Lot Seattle, WashingtonCost: $25-60Cannabisandsocialpolicy.org
July 15-18Cultivate’17Greater Columbus Convention CenterColumbus, OhioCost: $0-450Cultivate17.org
July 19-21Cannabis Compliance Summit 2017Los Angeles, CaliforniaCost: $95-985Infocastinc.com/cannabis
August 5-6IndoExpoOregon Convention CenterPortland, OregonCost: $30-199Indoexpo.com
August 18-20Seattle HempfestMyrtle Edwards and Centen-nial ParksSeattle, WashingtonCost: $10 (suggested donation)Hempfest.com
August 23-25FarwestOregon Convention CenterPortland, OregonCost: $10-129Farwestshow.com
August 28-302017 Cannabis Science ConferenceOregon Convention CenterPortland, Oregon
Cost: $40-399Cannabisscienceconference.com
September 8-11HIA 24th Annual ConferenceLexington Convention CenterLexington, KentuckyCost: $400-700Thehia.org
September 12-14CEA Hands-on WorkshopCEA Learning Center WestDyersville, Iowa Cost: $995Growerssupply.com/techcenter
September 13-15Cannabis World Congress and Business ExpositionLos Angeles Convention CenterLos Angeles, CaliforniaCost: TBACwcbexpo.com
September 29-30King Cannabis ExpoSpokane Convention CenterSpokane, WashingtonCost: $40-300Kingcannabisexpo.com
October 4-6Cannabis World Congress and Business ExpositionJohn B. Hynes Convention CenterBoston, MassachusettsCost: TBACwcbexpo.com
October 11-13CEA Hands-on WorkshopCEA Learning Center EastWindsor, Connecticut Cost: $995Growerssupply.com/techcenter
To submit an event for in-clusion in the Marijuana Ven-ture calendar, email [email protected].
Maverick Label
28 | Marijuana Venture // June 2017
QUICK HITS
Sign of the Times
Dope of the Month: Alex JonesThe Name Game
By the Numbers
Blowing Smoke
“I think you still have to look at a lot of aspects of marijuana use. Is it something that can be negative to the health of our players? Listen, you’re ingesting smoke, so that’s not usually a very positive thing that people would say. It does have addictive nature. There are a lot of compounds in marijuana that may not be healthy for the players long-term. All of those things have to be considered. And it’s not as simple as someone just wants to feel better after a game. We really want to help our players in that circumstance but I want to make sure that the negative consequences aren’t something that is something that we’ll be held accountable for some years down the road.”
NFL Commissioner Roger Goodell on ESPN’s “Mike and Mike” talk show discussing the league’s opposition to allowing cannabis for medical purposes, despite the well-documented issues caused by addictive opiate-based painkillers currently favored by the league.
As the cannabis industry digs deeper into the subject, Marijuana
Venture asks: How well do you know terpenes? Take a look at the following terpenes and see if you can tell which ones are real and which ones are fake.
See results on the next page.
Bisabolol
Borneol
Fenchol
Myrmidol
Billboards are one way cannabis companies are reaching their customers in several states where cannabis has been legalized for recreational use. The sign picture above directs customers to buy “MARIJUANA!” at the West Seattle Marijuana Store. See more marijuana-related signage in the POV section on Page 153.Photo by Greg James.
Sources: Lemonhaze, Bismarck Tribune, The Scranton Times-Tribune.
Percent increase in Washington’s legal cannabis sales on April 20, 2017 compared to the same date in 2016. During this period, there were also 45% more stores operating.
61Acres accepted for North Dakota’s industrial hemp program in 2017 — 45 times the acreage approved last year. The program involves 36 producers and one seed processor from 17 counties.
3,124Number of permits Pennsylvania will grant for medical marijuana busi-ness (12 grower/processor licenses and 27 dispensary licenses). Hun-dreds of businesses applied, paid a nonrefundable fee of $10,000 and a permit fee of $200,000, which can be refunded if a permit is not granted.
39
This month, we turn our attention to right-wing radio blowhard and President Donald Trump’s favorite conspiracy theorist, Alex Jones. During his recent child custody trial in Texas, Jones was asked about his marijuana use on the Joe Rogan Experi-ence podcast. Jones admitted to smoking about once per year to “monitor its strength” because George Soros is using it to “brain-damage people.” While we doubt that Soros is behind it, we have to admit, Jones’ brain does appear damaged, though we are not convinced cannabis is to blame. Congrats, Alex, here’s hoping you have your tin foil hat off long enough for this transmission to reach you.
30 | Marijuana Venture // June 2017
The Name Game
QUICK HITS
In The News
Feedback
Legalization support at anall-time high
A poll released by CBS News on the unofficial marijuana holiday, April 20, shows that support for legalization of marijuana has reached 61% among Americans, its highest level ever, and a five-point increase from the previous year. In addition, 88% support marijuana use for medical purposes.
The poll also reports that 71% of Amer-icans believe the federal government should not stop marijuana sales in states that have legalized, 65% think cannabis is less dangerous than other drugs and only 23% believe legalizing marijuana leads to an increase in violent crime, despite what Attorney General Jeff Sessions says.
The greatest support for legalization comes in the 18-34 age range, with 76% supporting. The only age group with less than 60% support for legalization is senior citizens.
Pennsylvania picks MJ Freeway; Washington looking
The state of Pennsylvania awarded the contract for its medical marijuana seed-to-sale tracking system to MJ Freeway of Denver.
Seven companies reportedly responded to the state’s call for bids, but five were disqualified because they either failed to respond or were found to be “non-respon-sible.” In the end, the state awarded the five-year, $10.4 million contract to MJ Freeway over BioTrackTHC due to the cost.
Meanwhile, Washington state is also searching for a new seed-to-sale tracker for its recreational market. Current con-tract-holder BioTrack told the state it does not plan to bid on the new contract when the deal expires in October. According to a story by U.S. News and World Report, BioTrack said the Washington proposal is less robust than the company’s existing
platform and it is unsure the state’s request would satisfy the requirements of the Jus-tice Department’s Cole Memo, the Obama-era document that currently describes federal policy regarding legal cannabis.
Washington’s contract is estimated to be worth $3 million. Bids were due in April. The news system will be in place by Oct. 31.
West Virginia governor signs medical marijuana law
In April, West Virginia became the 29th state to legalize forms of marijuana for medical purposes when Governor Jim Justice signed into law the West Virginia Medical Cannabis Act.
The law allows doctors to prescribe cannabis for patients who are terminally ill or who have seizures, cancer, chronic pain, post-traumatic stress disorder, AIDS and a few other conditions. It will also license growers, processors and dispensaries. Can-nabis will be sold in pills, oils, topical gels, liquids and a form that can be vaporized, but flower will not be available for sale and patients may not grow their own plants.
Patient ID cards are expected to be issued beginning in mid-2019.
Patent awarded for treating cannabis-related cotton mouth
The U.S. Patent and Trademark Office issued a patent for “Compositions and Methods for Alleviating Hyposalivation and for Providing Oral Comfort,” believed to be the first-ever patent for a topical product designed to relieve cotton mouth.
According to a press release, hyposali-vation, or dry mouth, is a common side ef-fect of marijuana usage and can potentially lead to dental impacts, such as periodontal disease. The new topical uses low concen-trations of grape seed extract and lemon pulp to induce normalized salivary flow for up to six hours.
Marijuana Venture wants to hear from you! We encourage our readers to take part in the conversation about cannabis, whether it’s regarding legalization, business-related issues, cultivation questions or just to say hi and share some interesting pictures.
To submit a letter to the editor, a question for an upcoming “ask the expert” segment, a photo for the POV or just to pass along a compliment or complaint email [email protected].
BISABOLOL
P A sweet-smelling terpene that’s also found in chamomile flowers.
BORNEOL
P A common component in Chinese medicine that reduces pain and
inflammation.
FENCHOL
P A terpene used in perfumes that naturally occurs in basil and
cannabis resin.
MYRMIDOL
Q This fictional terpene’s anti-fungal qualities aid the treatment of
athlete’s foot.
A look at business metrics from the legal cannabis market, with information provided by FrontRunnerData.com and CannabisBenchmarks.com
MARKET WATCH
Greenhouse US Spot Price
$0 - $500 $501 - $1000 $1001- $1500 $1501 - $2000 $2001 - $2500 $2500+
Outdoor US Spot Price
$0 - $500 $501 - $1000 $1001 - $1500 $1501 - $2000 $2001 - $2500 $2501+
Indoor US Spot Price
$0 - $500 $501 - $1000 $1001- $1500 $1501 - $2000 $2001 - $2500 $2500+
National spot pricing by grow type
POWERED BY
$2,501 +
27%
20%
20%27%
70% 23%
21%
22%
<1%
Indoor U.S. Spot Price
Outdoor U.S. Spot Price Greenhouse U.S. Spot Price
Source: Cannabis Benchmarks
1%
6%
>1%
4%
57%
<1%<1%
$2,001 - $2,500
$1,501 - $2,000
$1,001 - $1,500
$501 - $1,000
$0 - $500
34 | Marijuana Venture // June 2017
40 | Marijuana Venture // June 2017
PERSONALITY PROFILES
Vincent Petrescu wanted to give people the ability to invest in cannabis startups without over-extending their own budget.
Petrescu says he’d been approached by many people proposing investment opportunities, all with a $10,000 mini-mum outlay.
“I’d say I like the deal, I’ll invest $500 easily without thinking,” he says. “But a minimum of $10,000? I could not un-derstand why anyone would want to take that deal.”
Petrescu, a CPA and civil engineer with an MBA and a master’s degree in strategic management, has a vast amount of experience in the crowdfunding field. He’s also the CEO of Equidam and tru-Crowd, Inc.
His latest venture, Fundanna Crowd-funding, is like Kickstarter for marijuana companies.
“The big difference is that you, the person that gives the money, you don’t get a T-shirt,” he says. “You get shares in that company. And many people think that is a big difference.”
Fundanna allows people to support startups at an approachable level.
“Anyone can invest and the minimum is usually $100,” Petrescu says.
Participating companies pay $3,500 up front, and Fundanna takes a percent-age of the final dollar amount raised. As a crowdfunding platform, Fundanna is regulated by the U.S. Securities and Exchanges Commission and although
meeting federal requirements caused a slight delay in the site’s official launch, it is now fully operational, Petrescu says.
Petrescu says crowdfunding also gives cannabis businesses a way to legally ad-vertise their funding campaign.
“What is interesting in this type of raising money, the company is allowed to advertise and solicit investments,” Petrescu says. “That is a unique thing in the industry. There are not many ways a seller can advertise. This is one of them. Plus, you get the ambassador an-gle. Those people who invest will talk about you. They want you to be suc-cessful. They will do whatever they can to help you.”
The Fundanna website features a catalog of startup businesses, along with photos and in-formation about the products, where the project is based and who is developing the idea.
The stock price varies for each in-vestment opportuni-ty, but Petrescu says it’s usually around $2 per share.
The platform has a built-in 48-hour
notice before an event closes, allowing the investor a final opportunity to either pull out or promote the startup. Investors with Fundanna can pull their pledges at any moment. If a company fails to reach its goal, the money goes back to the in-vestors without any fees. Petrescu is planning a marketing push to highlight the platform and the startup businesses it represents.
“It doesn’t matter how good a product is if people out there do not know about it,” Petrescu says.
VINCENT PE TRESCU–
Crowdfunding expert creates cannabis-specific platform for smaller investers
By PATRICK WAGNER
Pollen GearAward-winning designer Ed Kilduff
has created a new, stylish and child-re-sistant storage solution for cannabis products aimed at higher-end con-sumers and retailers.
The Pollen Gear packaging is all ASTM-certified, but adds modern styl-ing and colors while being more than five times stronger than standard pop-top style containers, according to the company.
Pollen Gear comes in three distinct styles: Pop Box, SnapTech bags and a glass jar. All products are air-tight, odor-resistant and water-resistant. The Pop Boxes are made of FDA food-safe propylene and are recycla-ble. According to the company, the boxes are strong enough to stand on, but easy to open. The bags tested at 100% child-resistant effectiveness.
Pollen Gear is exclusively distributed by Greenlane Wholesale (gnln.com).
WWW.POLLENGEAR.COM
Neem Cake 6-1-2West Coast Horticulture, a nutrient
supply company that specializes in fertilizers and growing media, recently added Neem Cake 6-1-2 to the com-pany’s catalog of offerings.
Neem Cake 6-1-2 is derived from organically grown, cold-pressed neem seeds. The neem tree, or Azadirach-ta indica, has been used for centuries in agriculture as an organic pesticide. The highest concentrations of this trait can be found in the tree’s oil and its seeds, making Neem Cake 6-1-2 an effective natural fertilizer and soil amendment.
The product can be top-dressed, made into a tea for liquid feeding or premixed into soil to increase mineral content and organic matter.WESTCOASTHORTICULTURE.COM
Lemonhaze.comCurious what the top-selling flow-
ers, edibles or concentrates are in Washington state this past week? There’s a new website that works with retailers and processors to pro-duce top-10 lists of the Evergreen State’s top-selling products, retailers and processors.
Lemonhaze.com, the new site from the creators of Front Runner Data, collects information from its user base of more than 100 licensed cannabis businesses to produce its lists. Busi-nesses that participate and share data can also log in to enable enhanced features and reporting, including prod-uct searches by processor, product type, strain and package size, com-plete with contact information for the processors. According to the compa-ny, this allows retailers to find a pop-ular strain from a secondary proces-sor if their primary supplier sells out. According to company officials, more than 90% of SKUs found in Washing-ton’s recreational marijuana stores are on the site.
In addition, Lemonhaze.com pro-vides sortable columns showing the wholesale cost, retail cost and profit margin of any product on the site.
The site is still in beta testing and the company promises further enhance-ments, such as the ability to sort by east/west of the Cascade Mountains and reports specific to metropolitan areas. Access to the product searches are currently available to license-hold-ers who sign up to share information with the site.
WWW.LEMONHAZE.COM
PRODUCT SPOTLIGHT
42 | Marijuana Venture // June 2017
44 | Marijuana Venture // June 2017
PRODUCT SPOTLIGHT
Shimadzu Cannabis AnalyzerShimadzu Scientific Instruments has
released the new Cannabis Analyzer for Potency, described by the company as “the first-ever instrument designed specifically for quantitative determina-tion of cannabinoid content.”
The Analyzer is a comprehensive package integrating hardware, work-flows and supplies. After one day of installation and testing, users will have everything they need to measure the potency of their cannabis. According to Shimadzu, operators save lab time because they do not have to develop quantitative testing methods, which have been included and confirmed for repeatability and accuracy.
The Cannabis Analyzer includes three analysis packages for different purposes: the High Throughput pack-age is designed for potency determi-nation of 10 cannabinoids in less than eight minutes per sample; the High Sensitivity package adds THCV to the list with an analysis time of 10 minutes; the High Resolution package gives baseline resolution for all 11 com-pounds in less than 30 minutes and of-fers the option of expanding the target list as regulations change.WWW.SSI.SHIMADZU.COM
PrimoCombi 0.5LPaxiom’s PrimoCombi 0.5L is a
simpler, faster and less expensive multi-head scale, designed to gently weigh cannabis flowers. The Primo-Combi can accommodate tight accu-racy requirements and is compatible with most container- or bag-filling machines.
Each PrimoCombi weigh-bucket can measure accurately to 0.01 grams and the complete scale utilizes a com-bination of three to five weigh-buckets to eliminate product loss.
The machine features an adjust-able hopper for loading flowers and uses a vibratory pan-feed mecha-nism with stagger-dump settings to
allow product to freely flow through the machine without damaging tri-chomes.
Each machine comes standard with a Windows 360 Operating Sys-tem that can interface with enterprise resource planning (ERP) or material requirements planning (MRP) soft-ware. This feature allows for a com-plete operational overview, remote control of machine functionality and total traceability.
All contact parts on the Primo-Combi can be disassembled without tools, allowing for both easy cleaning and servicing.
WWW.COMBISCALE.COM
PRODUCT SPOTLIGHT
Green Care NetworkThe Green Care Network features
a front end similar to Weedmaps and Leafly, but distinguishes itself through a second network open only to can-nabis businesses, allowing them to connect with each other and see what products are available.
The seed-to-sale networking plat-form allows growers to create pages that display products and contact infor-mation, along with a ZIP code-based geo-locator so retail buyers can see
products available within 25 miles.The front end is open to the public
and includes the locations of doctors, dispensaries, testing labs and delivery services, while the back end is creat-ed for producers, processors and oth-er industry insiders, like contractors working within the cannabis space.
Developed in Michigan, the service is now available nationwide. Cost for access to the backend for the first year is currently $120.
GREENCARENETWORK.COM
Valoya LED Grow LightsFounded in 2009 with the goal of
creating the best quality LED grow lights, Finland-based Valoya recent-ly opened a North American division to focus, in part, on lights for canna-bis production. Valoya light fixtures range from tubes and bars to canopy and showbox lights to give growers a choice between a “sea of green” style and a multi-tier approach. All lights deliver a high-intensity light while consuming less energy than traditional high-intensity discharge lights. The lights have a lifetime of at least 50,000 hours, according to the company.
WWW.VALOYA.COM
Green Card GreetingsThere’s a new way to give the gift
of ganja, thanks to the folks at Green Card Greetings who have developed a new gift bag that combines a tradi-tional greeting card with a food-grade bag to package flower, pre-rolled joints, edibles or concentrates for any gift-giving opportunity.
The standard card-sized bag comes with a green envelope and marijua-na-related greeting for traditional occasions such as birthday, anniver-sary, congratulations, get well, thank you and more. All greetings are matte printed and allow for personalization.
According to the creator, the idea was to create an experience similar to gifting wine. The bags are point-of-purchase items aimed at recreational retailers.
GREENCARDGREETINGS.COM
46 | Marijuana Venture // June 2017
50 | Marijuana Venture // June 2017
RETAIL PROFILE: NEVADA
Gambling vs. Ganja
Tryke Companies CEO Matthew Morgan provides insight on the upcoming launch of Sin City’s recreational marijuana program
― ― ―By PATRICK WAGNER
The Las Vegas entrepreneur runs one of the largest vertically integrated cannabis companies in the state.
“I am excited to treat cannabis more like alcohol in regards to advertising, marketing and it being more mainstream versus medicinal,” Morgan says. “I have been doing this a while, for nine years. This is my first time entering the recre-ational market and I think we are posi-tioned really well.”
Exactly one year ago, Marijuana Ven-ture followed the launch of Morgan’s mul-tifaceted cannabis business, Tryke Com-panies, along with its 165,000-square-foot flagship grow facility located just blocks away from the Vegas Strip. Today, the 32-year-old CEO of Tryke Companies is preparing for the recreational launch af-ter what he describes as a “soft year” of medical sales.
“There was a lot of supply and not a
ton of demand,” he says. “I’m expecting about one-third of all recreational sales to come from tourism and I expect sales to be at about two to three times of what they currently are, conservatively.”
For a while, it seemed as though Mor-gan and other business owners in Las Ve-gas would have to wait until early 2018 to welcome customers into their licensed retail outlets. But as of press time, and in accordance with the Clark County Com-mission’s Green Ribbon Panel, the sale of cannabis to adults 21 and older can begin July 1 through medical dispensaries that receive a special license allowing sales to recreational customers.
Tony Alamo, chairman of the Nevada
Matthew Morgan waits with great anticipation and tem-pered expectations to discard the limits of Nevada’s medical marijuana program and focus on developing the adult-use market, set to open on July 1.
www.marijuanaventure.com | 51
Gaming Commission and a member of the Green Ribbon Panel, prompted the decision to separate ganja from gambling.
But there are some caveats with the summer rec launch — starting with con-sumption and gambling.
The commission agreed with Alamo’s suggestion that gaming companies not be directly involved with cannabis or allow it on site. According to Morgan, the gam-ing industry has been one of the biggest opponents of cannabis in Las Vegas.
“Obviously, the largest portion of em-ployment in Las Vegas is from the service industry and since they are involved in gaming they are very opposed to canna-bis,” Morgan says. “Remember that every gas station has keno machines and poker machines, so they have a gaming license. Everything I have found in Nevada has some sort of tie to gaming and they won’t touch cannabis. It’s a logistical challenge in the micro-climate of Las Vegas.”
Morgan says it’s unlikely that casinos
would distribute free joints to gamblers the same way they do with alcohol, even if they were allowed.
“They want to get you as drunk as pos-sible,” he says. “Alcohol tends to do a lit-tle better job of getting people loose than cannabis does. The next thing they know everyone is over at the restaurant and no longer gambling.”
So far, the consumption laws have been a major topic at every meeting of the Green Ribbon Panel, the 12-member
52 | Marijuana Venture // June 2017
group that is tasked with making licens-ing and zoning recommendations to the county commission. The panel features members of the cannabis, gaming and re-tail industries. The gaming portion of the panel says off-strip consumption lounges look to be the most agreeable option, but there are myriad conflicting interests of how those would work. Morgan believes there’s “no chance” that public consump-tion of cannabis will mirror that of alco-hol in Las Vegas, but he does think Ne-vada might succeed where Colorado and other states have failed with social use cannabis clubs.
“I think the lounges have a good chance,” Morgan says. “The hotels are for the lounges, just to keep it away from the strip. But the lounges would definite-ly not be allowed in the gaming corridor, aka Las Vegas Boulevard.”
Currently the hotels have a “don’t ask, don’t tell” philosophy, Morgan says. Cre-ating lounges would allow hotels to stay in compliance with gaming regulations, accommodate guests and drastically re-duce the amount of odor complaints hotel staff will have to respond to.
Those in the gaming industry “abso-lutely do not want public consumption and they absolutely do not want people
using it in the casinos,” Morgan says. “So, that brings up the question of where people can use it. There’s 44 million peo-ple who visit here every year.”
The discussion over consumption rules is still predicated on approval by the state Legislature and Governor Brian Sandoval.
Meanwhile, the Green Ribbon Pan-el decided to take a different approach than Oregon or Colorado and not distin-guish between medical and recreational sales until each transaction occurs. That means that cannabis will be regulated as a whole from seed-to-store. Prior to the full opening of the recreational market, Clark
County intends to create “master” licens-es to allow recreational sales from busi-nesses licensed to sell medical cannabis.
As of the July 1 launch, only 20 Clark County retailers will be licensed to allow recreational sales. After 18 months, the county intends to treat cannabis as it does with alcohol: Any business that meets its criteria can become a licensed participant. The criteria have yet to be defined by reg-ulators, but the commission estimates new marijuana retailers will be operation-al as soon as Jan. 1, 2019.
“From what I am hearing, after 18 months they are going to take a step back and look at the industry and see if, given demand, we will need more stores,” Mor-gan says.
With 11 acres of land ready for devel-opment in Reno, one might think that Morgan would be primed to set up as a third-party wholesaler for the industry, but he’s not ready to ramp up expansion plans just yet.
“I think I will actually be going out to buy wholesale,” Morgan says. “You’d think it would be the opposite. We have a certain amount of genetics that we want to concentrate on, so we will definite-ly need to go shopping around in order keep up a variety.”
EVERYTHING I HAVE FOUND
IN NEVADA HAS SOME SORT OF TIE TO GAMING
AND THEY WON’T TOUCH
CANNABIS.
“
CEO Matthew Morgan expects both the North Las Vegas location of Reef
Dispensaries (left) and its flagship location (above) just blocks away from the Vegas Strip
to start recreational sales on July 1.
54 | Marijuana Venture // June 2017
www.marijuanaventure.com | 55
CALIFORNIA’S CLONE
LEADERS
Marijuana Venture has always believed that for the legal cannabis industry to become consistently profitable, many businesses need to evolve and embrace proven practices from similar industries.
On the cultivation side of the industry, the need to adapt is espe-cially acute as former methods that worked with no taxes and little oversight are rap-idly proving themselves less valuable in a regulated, taxed and highly competitive environment. One of the characteristics of most mature industries is specialization within the business community. This can be seen in both big and small companies.
Take aerospace as an example: Boeing could make jet engines if it wanted to, but instead sticks with its core competency and builds the fuselage, while Rolls-Royce and General Electric manufacture the engines.
Similarly, McDonald’s could operate cattle ranches if it wanted, but its core busi-ness is running restaurants. Raising cows and shipping beef is left to ranchers, feed lots and packing houses.
This is the way smart business works in America. While there are exceptions, specialization is the norm because in the long run it leads to more efficiency and greater profits. This explains why you rarely find a tobacco farmer trying to sell his own cigarettes or a farmer selling his steaks directly to Safeway.
Growing cannabis commercially is inevitably going to go the same route as all other forms of agriculture: Farmers grow the crop, wholesalers/distributors buy and distribute it and retailers sell it. Along the way, companies will develop models that focus on services and products that allow others to focus on their core competency.
For example, a business could fill the same niche as a commercial nursery that supplies fruit tree starts to orchardists. In Oakland, California, Dark Heart Nursery is doing just that in the cannabis space. Marijuana Venture recently spoke with CEO Dan Grace who explained his business model and other views about how the com-mercial cannabis industry may evolve in California.
Dark Heart Nursery excels by focusing on providing commercial
flower growers with quality cuttings Interview and foreword by GREG JAMES
Photos by MAIKA PHOTOGRAPHY
56 | Marijuana Venture // June 2017
Marijuana Venture: Do you have a background in marijua-na cultivation or agriculture?
Dan Grace: Neither. My back-ground before can-
nabis was really in activism. There are many of us still left in California who started out trying to make a positive so-cial change. Over the years we've picked up some business skills, but I'm still proud to be part of a business community that values social progress.
In developing Dark Heart, though, I've always looked to conventional agriculture for best practices. These guys operate at large scale and with small margins. Effi-ciency is the name of the game. Cannabis is a unique plant, but there are few cultivation issues that confront us that haven't been ad-dressed elsewhere in conventional ag.
MV: How did you come up with the idea to create a business that
supplies cuttings to growers?
Grace: Ten years ago, when we first got started as flower grow-
ers, we used to go to great lengths to get clones. It was always a shady back-alley transaction and you never knew what kind of genetics you would get. Often the plants were pest-infested. It was a horrible expe-rience. When we did find a reputable nurs-ery, it was almost impossible to get the plants we needed when we needed them.
With some help from friends, we start-ed to learn how to make our own clones. We got better and better at it and soon started selling them to other growers, and we've never looked back. I think our ini-tial experience as flower cultivators really helped us understand the trials and tribu-lations that growers go through, how im-portant their work is and how important it is that we do a great job. If we can ensure that our customers get great quality plants every crop cycle, at least that's one less thing they have to worry about.
MV: It sounds like you’re following a tried-and-true model in agri-
culture. Did you model your business after another?
Grace: Not just one in particular, but certainly we've gathered
many best practices over the years. An ear-
ly role model for us within cannabis was Oaksterdam Nursery. They had the first great cannabis nursery that I ever knew about. As we started to look at conven-tional ag, we started working with trade groups. Farmers — and especially nurs-ery people — are a friendly bunch. At the end of the day, they're all problem-solvers and we like to share our best solutions to challenging problems. One of my favorite groups is the International Plant Propaga-tors’ Society. We get together once a year and share nursery tours. Everyone is really collegial. We've learned a lot there. And now we're becoming a resource for con-ventional farmers and nursery people who are interested in cannabis.
MV: Was it hard to convince grow-ers to buy your cuttings instead
of growing their own?
Grace: It depends. I find that more experienced growers un-
derstand the value. They understand that maintaining moms is going to take up space and labor resources. It's also going to make it more difficult to maintain a successful pest management program.
Purchasing from Dark Heart gives them access to a top-notch library of ge-netics and it gives them a fresh, clean start on their crop cycle. Returning customers also understand the value in Dark Heart Nursery's quality. Not very many people
www.marijuanaventure.com | 57
can consistently create clones of the stat-ure and quality that we do. Growers have a lot to lose by using lower-quality home-grown clones. They will see an increased cycle time and a reduced yield.
Some of the newer operators with less experience have a harder time un-derstanding the value. They're looking at their spreadsheet and seeing that they can save money by producing their own plants. For some of them, it may well make sense. But for most of us, it's better to ‘stick to our knitting.’ Everyone makes money in Excel, but in the real world we tend to do best when we stick to what we know. For us, that's clones; for our cus-tomers, that's flowers.
MV: We’re big believers in sticking to a specific skill set, meaning
those who cultivate should stick to that and leave tasks like sales, packaging, etc. to others. Do you agree?
Grace: Totally agree. I think we all create the most value by
sticking to what we know best. Most indus-tries are not vertically integrated. In fact, the larger an industry sector is, the more it tends to become atomized. You often have relatively small firms owning one niche. I think the cannabis industry still has a long road to maturity. I can't predict how long it will take, but ultimately, I think, special-ization will win out over integration.
Dark Heart has refined the cloning process for a high-
volume model. Fresh cuttings are
tagged and staged to move farther
down the work line.
58 | Marijuana Venture // June 2017
MV: Are pathogens a problem?
Grace: Pathogens are a huge prob-lem in any crop, but the
problem is really pronounced with canna-bis. We just don't have a lot of resources to fight pathogens. There's not much re-search on pathogens that affect cannabis, so there are few recommendations on how to treat them. We are also far behind most crops in breeding cannabis. The genetics haven't been improved to help resist pest and disease pressures.
MV: Last summer, growers all over the West got hit by hemp russet
mites. How do you ensure clean cut-tings?
Grace: We dedicate a lot of re-sources to our integrated
pest management program. We have a full-time staff member dedicated exclu-sively to managing this program. As with any IPM program, ours starts with exclu-sion. We focus on keeping the bugs out. From there we actively trap and scout
pests. Every week we record data from our pest traps to develop a quantitative understanding of the pest pressures con-fronting us. This helps us monitor the success of our program and make adjust-ments as needed.
From there we focus on biological controls. Over the last few years we've become fans of predatory insects within the garden. Every week now we add new batches of predators and they've been re-ally useful. We also apply preventative and curative pest treatments as needed. Also, every clone that leaves our facility is closely hand-inspected to ensure that nothing made it through the cracks.
MV: Is there an art to having the right strains available? It seems
like consumers jump around from one hot strain to the next. Timing sounds like it’s important. Are you able to an-ticipate demand?
Grace: It is an art for sure. There are a lot of ‘boutique’ or ‘trendy’
strains that you see and then you see those that really stick, that the growers know
WE'RE DEALING WITH A LOT OF RED
TAPE AT THE LOCAL LEVEL.
IT'S A HUGE CHALLENGE
AND A BIG DISTRACTION.
“The Dark Heart Nursery team.
60 | Marijuana Venture // June 2017
is a proven genetic, that has many of the elements a grower looks for and that ven-dors will purchase. We have a substantive research-and-development process — we test the genetics, we check the yield, the length of time it takes in cycle and that we can create a quality clone that can be pur-chased time and again. We make sure that growers will get the results they want. This takes time, but it also means quality that growers can depend on.
MV: How big is your facility and how many cutting can you cre-
ate a year?
Grace: We cultivate in 20,000 square feet of space in Oak-
land. We produce hundreds of thousands of plants each year.
MV: Do you supply both indoor and outdoor growers? Are their re-
quirements different?
Grace: Yes, we supply all sorts of growers — indoor, outdoor,
light dep, etc. Their requirements are quite different in many respects.
First, There are certain strains that appeal to each type of grower. Indoor growers, for example, love short-cycle OG strains (Fire OG for example). Out-door growers, on the other hand, prefer longer-cycle and higher-yielding sativas (like Sour Diesel). Consumption habits are also much different. Outdoor grow-ers come to us all at once in the spring, whereas indoor growers purchase year-round.
MV: How has the state been when it comes to licensing?
Grace: To be determined. Califor-nia is just now rolling out its
rules; 2018 is when the regulated program will really start to be implemented. This year we're dealing with a lot of red tape at the local level. It's a huge challenge and a big distraction. It's certainly going to cause disruption within the industry. Overall I think it will be worth it, but we're in for some rocky times.
MV: What do you see coming down the tracks with full legalization
in California?
Grace: California will once again be the center of the cannabis
economy. We have a huge consumer base and a lot of companies that already have long track records in the industry. I think you're going to see scale and innovation unlike anywhere else in the world.
Dark Heart Nursery CEO Dan Grace used the Oaksterdam Nursery as an early role model for his business.
35,500 sq.ft. (approx 6 x 6000 sf)Greenhouse(s) + office on 3 acres
FOR SALE/LEASE
CONTACT: [email protected] • (949) 533-4464
SantaBarbara
County
64 | Marijuana Venture // June 2017
www.marijuanaventure.com | 65
40 UNDER 40Rising stars of
CANNABIS
Welcome to Marijuana Venture’s second annual “40 under 40” feature, celebrating some of the industry’s most exciting young entrepreneurs and rising stars. Of the
thousands of potential candidates, the biggest challenge is narrowing the list to 40 individuals who have been successful in a wide range of opportunities
related to the cannabis space, ranging from growers and retailers to doctors, lawyers, politicians and tech innovators.
This is not intended to be a complete list of the most influential or most successful entrepreneurs under
the age of 40, but a cross-section of the traits and vision necessary to not just survive,
but thrive in the ever-changing world of legal cannabis.
Profiles by: Brian Beckley, Greg James,
Garrett Rudolph, Sue Vorenberg and
Patrick Wagner
Todd Hughes ▼ Age: 29Company: EntreVation Title: Co-founder
Todd Hughes and Brandon Wyatt created a staggeringly effective tool to improve corporate and social responsibility simply by helping victims of the War on Drugs. They started the business development firm EntreVation to provide event planning, marketing, market research and project execution for various groups and individuals.
“Our special niche is being able to take communities — es-pecially oppressed communities and businesses — and forti-fy them with the concept of corporate and social responsibili-ty to educate, legitimize, raise policy awareness and create a lasting bridge into the formal market,” Wyatt says.
EntreVation has consulted for 121 companies since it was unofficially formed in 2015.
Hughes and Wyatt built EntreVation from the inside out, or-ganizing fundraisers, setting up educational events, leading protests outside the White House and providing business and legal counsel, all for free over the past two years. It was only after the work was complete that the two realized what they had built.
“We were working so hard under the radar that at one point we looked up and said, ‘If we don’t form our own compa-ny, nobody is going to be able to connect all these dots,’” Hughes says.
“It was a labor of love,” Wyatt adds. “EntreVation is what formed after doing pro-bono advocacy work with groups
like the Minority Cannabis Business Association, the Weed for Warriors Project, Patients Out of Time,
Veterans for Compassionate Care, DCMJ, NORML, Students for Sensible Drug Policy
and Marijuana Policy Project. We wanted newcomers to the industry to be safe and
prepared with formal business docu-mentation, legal business practic-
es, and also to pay taxes.”
Wyatt is a decorated combat soldier, disabled Army vet-
eran and business attor-ney who graduated
66 | Marijuana Venture // June 2017
from the Howard University School of Law. He’s also in the process of earning his MBA from George Washington Univer-sity and is the principal at Wyatt Legal & Consulting.
Hughes is a mechanical engineer and program manager at the U.S. Department of Energy, working in applied research and development for the National Nuclear Security Admin-istration and currently studying for his Ph.D. from George Washington University.
“I was a bit nervous about entering the field because I have a federal government job and I do not personally consume cannabis,” Hughes says. “I have been doing this from be-hind the curtain for the last couple of years. After lots of hard work and challenges, we are at a stage where we are really helping people break stereotypes and establish via-ble revenue streams and businesses.
“We are lucky to see cannabis change into a true industry in our generation, but many people truly don’t understand that it’s not just about cannabis or money. It's about people. The people who are left behind and remain damaged because they don’t have legal access.”
Recently, Wyatt and Hughes were appointed as diversity consultants for Maryland’s Medical Cannabis Commission. EntreVation has been tasked with producing a disparity study and scoring all applicants for Maryland licenses.
“This is still a taboo field, especially for minorities,” Wyatt says. “There is a lot of groundwork policy coordina-tion and true interactions with government leaders needed to survive in the industry. … The current issues regarding cannabis business is more than medical versus recreational or even di-versity and race. The duty and responsi-bility bestowed upon our generation is not based on reparations but actu-al repairs to those communities, veterans and students who have paid the medical, ed-ucational and criminal price of prohibition."
Brandon Wyatt ▼Age: 32Company: EntreVation Title: Co-founder
www.marijuanaventure.com | 67
Kristina NeoushoffAge: 35Company: Women GrowTitle: Interim CEO
There are two types of people in the cannabis industry: those who always wanted to work in the marijuana business and those — like Kristina Neoushoff — who never imagined they would.
“There are times when I’ll look at my fiancé and say, ‘Do you believe that this is our life?’” Neoushoff says. “It’s crazy. I hadn’t even smoked a joint until I started working at Women Grow.”
Growing up, Neoushoff wanted to be a veter-inarian. She attended Rutgers University and majored in animal sciences, before working at a variety of companies, including Apple, Tekserve, MoviePass and Estee Lauder.
She joined Women Grow in June 2015 and was promoted to interim CEO in April, having previously served as the company’s chief operating officer.
The timing is fortuitous; behind the scenes, Neoushoff had been working closely with former CEO Leah Heise to implement some major chang-es within the company. Now, Neoushoff will have the opportunity to bring those innovations to life.
“All the exciting stuff is going to start happening now,” she says.
Maybe she never intended on being a part of the cannabis movement, but it seems a natural fit now that she’s here.
ing sarcastically, “It was great wage.”Now, as the owner of Cannabis & Glass, one of the top marijuana retail stores in Eastern Washington, Kapple starts all his employees at a minimum of $15 an hour, with paid time off and health insurance. “I think we treat our employees well and we are really proud of that,” he says. Kapple was the youngest license-holder in Wash-ington when he opened Cannabis & Glass in 2014 with $500 dollars of inventory, no money to pay rent and very little sleep. “I was lucky that I didn’t have much money,” Kapple says. “If you have no money then you are salivating over all the possible decisions that you can’t quite make yet. It forces you to really consider the options at hand.”Having recently hired its 40th employee, Cannabis & Glass now has locations open in Spokane and the tiny town of Millwood, with a third store in the works along the Idaho border. “I am pretty sure we’ll do $15 million in sales after taxes this year,” he says. “I think that’s pretty good for a 28-year-old.”
Tate KappleAge: 28Company: Cannabis & GlassTitle: Owner
Starting at the bottom of a corporate ladder can greatly influence one’s perspective on business. Case in point: Tate Kapple, who began his business career — literally — in a Kansas City, Missouri basement. Kapple worked at a min-iature Applebee’s located in the basement of the restaurant chain’s corporate headquarters, serving the executives during lunch and dinner hours.“I got paid $2 and change plus tips,” Kapple says, add-
68 | Marijuana Venture // June 2017
Crystal OliverAge: 33Company: Washington’s Finest CannabisTitle: Co-founder and CEO
Even when she is not running the day-to-day operations of Washington’s Finest Cannabis, a state-licensed outdoor pro-ducer, Crystal Oliver is a busy woman.
Along with the farm, Oliver is also an executive board member of the Canna-bis Farmer’s Council, a board member of The Center for the Study of Cannabis and Social Policy, an executive assistant at Washington NORML, a member of Washington State Liquor and Cannabis Board Cannabis Advisory Council and a member of Women of Weed, among other projects.
“We’re business owners, but we’re advo-cates at heart,” she says.
For the past three years, Oliver, along with her husband and Washington’s Finest co-founder Kevin Oliver, have advocated for small cannabis farmers, including organizing against a code pro-posal to label all marijuana processing as “moderate hazard/factory/industrial use,” which would have made fire suppres-sion requirements for greenhouse, hoop houses and indoor facilities too much for many small farmers, especially those that use well water.
“Had it been adopted it would have dev-astated small farmers in Eastern Wash-ington,” she says.
Oliver believes it is imperative for those in the cannabis industry to get to know their local representatives and to make sure those representatives know you, so they can see that those in the marijuana business are not stereotypes, but just like any other small business owner.
“By getting to know me, that has moved the ball forward,” she says of her experi-ence.
70 | Marijuana Venture // June 2017
Josh CrossneyAge: 31Company: jCanna, Cannabis Science Conference Title: President, Founder
Before getting involved in cannabis, Josh Crossney did recruiting and staffing for the analytical science in-dustry. He’d also done some work in corporate training and event planning.
But as more and more states across the country began to liberalize their cannabis laws, Crossney saw a need for advancement in cannabis science, particularly in testing technologies and standardization. In addition, many scientists he knew had little idea how to go about the testing, or even gain access to cannabis for testing.
It was a “perfect storm for the creation of jCanna,” a nonprofit organization that includes cannabis industry in-siders, scientists, doctors, policy makers and anyone else interested in working to advance awareness of cannabis.
“Many of the entrepreneurs starting cannabis testing labs lacked experience in natural products sample preparation and analytical testing,” he says. “We set out to embrace, educate and empower this new industry.”
The group regularly hosts meetings and roundtables on topics like sample preparation, chromatography, can-nabinomics, terpene profiling, contamination analysis, regulations, scientific standards and more.
Crossney says he is excited that American culture is moving away from “anecdotal evidence toward ad-vanced clinical trials.” He encourages others to do what he did and find a way to match their skillset with a need in the industry and then get involved.
“I always tell people not to conform to the canna-bis industry, but to bring their special skills and experiences to the cannabis industry,” he says.
the proposed law is Moira Walsh, a Democratic fresh-man legislator who a year ago was a waitress and single mother struggling to get by. She got her first taste of politics lobbying Rhode Island legislators to raise the minimum wage for tipped workers from $2.89 to $3.89 over the next two years.
As a legislator, Walsh has promised to focus on the issues that affect the people in her community, including the legalization of marijuana, which she sees a criminal justice issue. Walsh is also a medical marijuana patient herself.
“The War on Drugs has disproportionally targeted people of color in low income neighborhoods,” Walsh wrote to Marijuana Venture. “Legalizing marijuana is a common sense step toward leveling the playing field for people in my district.”
Walsh represents a new generation of legislators working to right the wrongs of the past, including the War on Drugs.
Moira Walsh Age: 26Rhode Island House of Representatives
Most successful legalization efforts have come through voter initiatives, but several states are moving to legalize marijuana through their legislatures. In Rhode Island, two bills called the “Adult Use of Cannabis Act” are currently being considered by legislators.
Among the co-sponsors of
www.marijuanaventure.com | 73
Former U.S. Marine Corps Staff Sgt. Kyle Hudson knew he want-ed to start a business that gives back to the veteran community.
Having heard a number of stories about wounded warriors treating physical and mental ailments with cannabis, Hudson decided to find his niche in the cannabis industry. The former Marine founded California-based Highlanders Distribution on the same standards that were instilled in him from his years in the armed forces, including taking care of his fellow vets. Today, his company supports organizations such as Make-overs That Matter, Operation EVAC (Educating Veterans About Cannabis), Tactical Patients, the Weed for Warriors Project and groups that help feed the Los Angeles homeless community.
“We volunteer time and money with a local group, where we made around 1,000 bagged lunches that we handed out to the homeless at Skid Row this last time,” Hudson says.
Highlanders Distribution handles supply-chain logistics for above-board producers and dispensaries across California.
Hudson met his future business partner, Mike Garcia, a fellow veteran, while attending the University of Southern Califor-nia’s Marshall School of Business.
“He brought up the fact that it was announced that third-party distribution would likely become mandatory (under new state-wide regulations),” Hudson says. “It seemed like the perfect time to jump into it.”
Highlanders Distribution moves product from 19 producers into more than 100 dispensaries that
reach across the state from San Diego to San Francisco.
Kyle HudsonAge: 29Company: Highlanders DistributionTitle: CEO
74 | Marijuana Venture // June 2017
Saagar VaruAge: 22Company: HarvestdateTitle: Founder, Co-owner
Saagar Varu built a web-based cannabis sales and marketing platform from scratch. Although he does have one business partner in the venture, Varu handles all aspects of the design and development of Harvestdate on his own. That alone would be an impressive feat for just about anybody, and it’s made even more impressive by the fact that Varu began working on Harvestdate before he was old enough to legally buy marijuana at retail shops in Washington. Plus, he did it while taking a full slate of college classes. His goal is to create a valuable tool for the industry and let people use it for free. “I didn’t do it because I was necessarily super enthusias-tic about cannabis,” says Varu, now 22 and graduating from the University of Washington in June with a busi-ness degree. “I did it because I saw a problem.”Varu has an almost obsessive work ethic and plans to dive into Harvestdate full time after graduation. “When I have a personal stake, I work harder than I’ve ever worked,” he says. “I work harder at this than I’ve ever worked in school.”
Calvin MedinaAge: 31 | Company: Agate Dreams | Title: Manager
When Calvin Medina got called into a meeting about marijuana with his bosses at the Suquamish Tribe, he was more than a little bit uneasy. The last thing he expected was a promotion. “It’s one of those things because you want to keep marijuana use under wraps,” he says. “You don’t know how it’s perceived if you’re a marijuana user or if it’s going to cost you your job. So the meetings were very awk-ward at first until they gave me assurances that we changed the rules on how we view marijuana and marijuana use so you can be open about it.”A graduate of the Minority Business Executive Program at the University of Washington’s Foster School of Business, Medina was, at the time, next in line to take a management position with Port Madison Enterpris-es, the Suquamish Tribe’s business entity.His education, which included the NACS Executive Leadership Training Program at Cornell University, along with his experience in the service industry and knowledge of the parent corporation’s operations, made him a shoe-in to take over responsibility of the tribe’s latest — and per-haps boldest — venture: operating a marijuana retail store. The Suquamish were the first tribe to sign a compact with the state of Washington, allowing Native American business operations. The tribe opened the Agate Dreams retail store in December 2015. But the Suquamish have plans in place to expand operations into processing. “In our compact is vertical integration, so under one corporate umbrella we can have all three license types,” says Medina. “It was nice to have a chance to help build something. It turned out quite well for us.”
76 | Marijuana Venture // June 2017
78 | Marijuana Venture // June 2017
a “great math student,” ultimately leading him to a degree in engineering from Florida State University. While in college, he also learned more about the criminal justice side of cannabis and the racial disparity of marijuana-related arrests nationwide. Seeing this impact firsthand, particularly in the South, where he was raised, had a profound impact on Horton. “I saw that and all of it was really close to me from living in the South,” he says. “So, it was im-portant to me to figure out a way to give back to the industry and luckily I was able to meet some amazing people to build this small organization.”Horton says the goal of the Minority Cannabis Business Association is to “ensure that the people who have been targeted the most by the War on Drugs and by cannabis prohibition have the opportunity to benefit from the industry.”Horton has made an impressive career in cannabis thus far, having helped start Panacea Valley Gardens, an award-winning medical operation in Portland, Oregon in 2012. Horton says he is now ready to sell his shares in the company so he can move on to his new venture, Saints Cloud, a grandiose plan to house a grow operation, extraction lab, commercial kitchen and more on one tourist-friendly property. “Saints is essentially where we would have all of the licenses on one property with a lounge and a bed and breakfast,” he says. “We want to do a lot of different things on this property that we were able to acquire. We are going through some permitting and construction right now.”
Jesce HortonAge: 34Company: Panacea Valley GardensTitle: Founder, Co-owner
Jesce Horton says he owes a lot to cannabis, so the 34-year-old co-owner of Pan-acea Valley Gardens is taking steps to give back as the president and founder of the Minority Cannabis Business Association. Horton credits much of his professional and academic career to cannabis, saying the plant helped him become
When Alaska legalized recreational cannabis in 2014, Jana Weltzin felt the call to return home.
Born and raised in Fairbanks, Weltzin moved to Arizona at age 18 to get her law degree at Arizona State University. She remained in the Southwest and joined Rose Law Group, the largest wom-en-owned law firm in the country, where she focused on land use law and cannabis compliance.
“There are a lot of vague concepts in the law, like how do you define a community center, what’s a social services center, what are these things really when you’re looking at zoning a cannabis business,” she says.
As soon as Alaska legalized, Weltzin immediately started looking for ways to expand Rose Law into the state to help newly forming cannabis businesses. But when she realized that starting her own firm would keep more money in her home state, she founded JDW LLC, instead.
“I wanted to invest in Alaska, not send fees back to Arizona,” Weltzin says. “And I also wanted to know that I had what it takes to create and be a business owner myself. And I did. It’s the best choice I ever made.”
The young firm now has two paralegals and has worked to secure about 70 business licenses for cannabis growers and retailers in Alaska. One of its bigger upcoming projects is working with the state to allow on-site consumption at cannabis clubs.
“We’ve advocated really, really hard, but it hasn’t come to fruition yet,” Weltzin says. “But we’re go-ing to keep working on that, and working on getting Alaska’s industry to be as strong as it can be.”
Jana WeltzinAge: 30Company: JDW LLCTitle: Attorney, Principal Owner
80 | Marijuana Venture // June 2017
Jodie Emery Age: 32 | Company: Cannabis Culture | Title: Co-owner
A darling of Canada’s activist community, Jodie Emery has been at the forefront of the country’s marijuana legalization movement since 2004. However, this has also made her a target as the federal gov-ernment has escalated its crackdown on gray market dispensaries. Law enforcement officials recently raided seven Cannabis Culture dispensaries owned by Emery and her husband, Marc — five in Toronto, one in Vancouver and another in Hamilton. The Emerys now face charges of drug trafficking, conspiracy and possession of marijuana. Emery, the self-proclaimed Princess of Pot, has been an outspoken critic of Prime Minister Justin Trudeau’s legalization plan, saying it doesn’t go far enough to repair the damage of prohibition and she remains resolute in her activism in spite of her uncertain future.“I’m not a criminal. I’m not a dangerous person … and yet this law seeks to put us behind bars, the police call us a threat to public safety,” she told reporters in April, according to the Toronto Star. “When the laws criminalize and harm peaceful people, those laws are unfair.”
When OutCo executives began mapping out the future of their company, they wanted to look beyond the common methods, techniques and faces that were staples within the cannabis community.
Bucking the conventional wisdom of needing a “master grower” with years of experience growing cannabis, the company hired Allison Justice as vice president of cultivation.
Justice didn’t have much cannabis experience, but she has a Ph.D. in plant and environmental science from Clemson University, where her dissertation in-vestigated the effects of a beneficial mycorrhizal-type organism and showed that organic, sustainable grow-ing can be easy and cost-effective when done proper-ly. After graduation, she started a business teaching commercial greenhouse operators how to breed their own nematodes for pest control.
Justice joined OutCo as the company was transitioning from indoor cultivation to a 105,000-square-foot hybrid greenhouse in San Diego County. She was instrumental in designing the production facility, as well as ushering in a more science-based methodology for growing cannabis.
“It’s so much like growing poinsettias or tomatoes, and much of my work has been with poinsettias,” Justice says.
Allison JusticeAge: 32 | Company: OutCo Title: Vice President of Cultivation
82 | Marijuana Venture // June 2017
As a licensed pesticide applicator for more than 15 years, you could call Kelly Vance a mite assassin. However, now that’s he’s a technical consultant for Beneficial Insectary — a company that provides natural pest management solutions — Vance says he has “no desire to ever spray chemicals again.”Vance says cannabis growers need biocontrols not only because of limited chemical options and strin-gent testing procedures, but “to produce a clean product for medical and recreational consumers.”“This has made me focus harder on offering dynamic control options for these pests to accom-modate the needs of my customer base,” he says.After spending the majority of his career safeguarding houseplants and ornamentals in mas-sive commercial greenhouses, Vance joined Beneficial Insectary in 2016. Now, roughly half his clients operate cannabis farms. “The fields intersect because the pests nearly always do,” he says. “Spider mites, broad and russet mites (and) aphids don’t care if you’re growing strawberries, azaleas or cannabis.”Although there are many similarities between marijuana production and traditional horticulture, Vance says commercial-scale cannabis operations tend to attract more pests, more frequently. Farms face a constant threat of infestation and just one bad season has the potential to shutter an operation permanently. “Their livelihood depends on the performance of a crop and with so many unknowns they can’t risk losing their hard work to pest pressure,” he says.
Kelly VanceAge: 37Company: Beneficial InsectaryTitle: Technical Consultant
84 | Marijuana Venture // June 2017
◀ Neil JunejaAge: 38Company: Gleam Law Title: Founder, Managing Partner
An intellectual trademark attorney by training, Neil Juneja represented Cannabis City, when it received one of the first eight retail licenses in Washington.
Juneja realized there were a relatively limited number of lawyers working in the cannabis field at the time.
“We had quite a bit of fun with it and decided to con-tinue doing it,” he says.
Today, Gleam Law is one of the largest cannabis-fo-cused law firms on the West Coast and recently opened a second office in Portland, Oregon. The firm has filed about 400 cannabis trademark applications and represents three publically traded cannabis-re-lated companies. The challenge, Juneja says, is dealing with ever-changing regulations and uneven enforcement.
But more than that, Juneja says his work is no longer just work to him.
“It’s not just ‘these are my clients,’” he says. “This is my community.”
Noah Stokes ▶Age: 33Company: The Cannabis Distribution Company Title: Founder and CEO
Noah Stokes is a problem solver.
The CannaGuard founder and CEO says he likes to “find a pain point and then find a solution.” The many pain points of the marijuana industry led Stokes to his newest venture, The Cannabis Distribution Company, a licensed wholesale/distribution company in Oregon.
“I believe that if you can solve a problem, it makes selling it really easy,” he says.
Stokes had been handling secure transport for a lot of cannabis companies, because none of the larger and better-known secure transport companies were willing to work with cannabis companies. Security firms often rely on government contracts and work with banks, which could be threatened by also working in cannabis.
“If nobody’s going to do it, we’re going to do it,” Stokes says.
He also saw the need for a centralized distribution center to ship cannabis products out to retailers. Through Can-naGuard, Stokes regularly connected the two sides of the industry and decided to formalize the relationship into a new company to leverage economies of scale.
The Cannabis Distribution Company now has a 40,000-square-foot, cannabis-only warehouse in Portland, where it houses not only its transportation division, but also trimming and packag-ing, as well as having connections to labs for product testing.
86 | Marijuana Venture // June 2017
Nick KovacevichAge: 31Company: Kush Bottles, Inc. Title: CEO
Nick Kovacevich says he might consider filling his own Kush Bottles packaging with cannabis if federal legal-ization ever happens.
“But then who is going to handle the logistics behind getting Spokane County (Washington) cannabis to a dispensary or retail store in New York City?” he says. “Somebody is going to have to manage that.”
Kovacevich could easily be that “somebody” as he has already made Kush Bottles one of the more recogniz-able names in the industry. Now a publicly traded com-pany, Kush Bottles ranked No. 774 on the 2015 Inc. 5000, a listing of the fastest-growing privately owned companies in the nation. Headquartered in Southern California, Kush Bottles also has satellite operations in Seattle and Denver.
After graduating from Southwest Baptist University in 2010, Kovacevich began looking for an opportunity in the cannabis industry.
“We knew that compliance and safety was going to be a big driver for the transformation and legitimization of the cannabis industry,” Kovacevich says.
His goal was to provide an ancillary product that would meet the needs of cannabis businesses, while building ongoing relationships with the unique players in the industry. Like bottle manufacturers after the end of alcohol prohibition, cannabis packaging has seen explosive growth as more states legalize. Since Kush Bottles launched in 2010, it has sold more than 100 million bottles and regularly services 3,000 clients in North America.
“The way cannabis is being regulated is giving small, mom-and-pop businesses an opportunity to grow and
flourish into a large organization,” he says. “It’s the best part and I don’t think you will
find that in any other industry.”
88 | Marijuana Venture // June 2017
Aaron MitchellAge: 39 | Company: La Mota | Title: Owner
There were times when Aaron Mitchell thought he’d made a huge mis-take. Two years ago, he and his future wife, Rosa, would lie awake at night on the floor of a laundromat they had retrofitted as the first La Mota medical dispensary.
Mitchell had already taken a sizeable loan to finance a beachfront hotel in Florida, which, at the time, he thought he would run for the rest his life. Instead, he left the hotel business and the East Coast for a shot at owning a marijuana retail store in Oregon.
“We used every single penny we had,” Mitchell says. “Rosa and I both had fairly nice cars that were both paid off. We sold them. I bought a RAV-4 that cost $500 and you had to secure the hood down with dry-wall screws.”
Many sleepless nights weren’t spent in vain, though, as La Mota has be-come one of the fastest-growing cannabis companies in Oregon. Even after making their first million, Mitchell and his wife avoided unnecessary expens-es to reinvest everything they could back into real estate and the company.
“I have 15 (stores) and I already purchased six more buildings,” Mitchell says. “We have six more that we are building out right now.”
Mitchell admits he is still “nerding out” over the success La Mota has had in its two short years. And after paying off the loan for his former hotel, Mitchell is setting his sights on a new goal.
“I’m aiming to have the most retail stores in the world,” he says. “And I want to have that title for a while.”
Will KleidonAge: 27 | Company: Ojai Energetics | Title: Founder, CEO
Ojai Energetics has a patent pending on the process of “making little water bubbles filled with CBD,” says CEO Will Kleidon. The company’s water-soluble delivery system lets consumers feel the effects of CBD and other cannabinoids almost immediately.
Kleidon says there are some major beverage companies that are currently doing research and development to include Ojai in their beverages.
“We’ve had to scale up on production on the water-soluble end and we can now produce up to 30,000 gallons a week if needed,” he adds.
Since starting beta tests on its hemp-based tinctures and other products that are infused with water-soluble CBD demand has grown by several thousand percent, according to Kleidon. It’s fast growth, even for a company with former NASCAR driver Stanton Barrett as its president.
“We started exploding last year through word of mouth and I basically pulled the product back so we could scale for bigger distribution,” he says. “We will be in brick and mortar (stores) all over the U.S. this year.”
Coming from Silicon Valley, it should be no surprise that Kleidon built Ojai to operate in a similar fashion to a tech company.
“We are really set up to be more like the Intel Inside of cannabis delivery sys-tems,” he says. “I built the whole intellectual property catalog for a whole bunch of uses, not just for the water-soluble element. The water-soluble element is for all cannabinoids, not just for CBD from hemp. We can actually license out our tech.”
90 | Marijuana Venture // June 2017
THE DEA MAY FINALLY BE PRESSURED INTO PROVIDING
SOME MUCH-NEEDED REGULATORY STABILITY TO
THE HEMP INDUSTRY“
Ramsey HamideAge: 38Company: Main Street Marijuana Title: Founder, Co-owner
Main Street Marijuana co-owner Ramsey Hamide created a retail juggernaut. Since opening in July 2014, the Vancouver, Washington store has maintained the No. 1 sales position in the state, racking up total sales of almost $40 million.
With two more stores now open, the retail chain is seeing gross receipts each month of about $2.5 million in marijuana sales and anticipated reve-nues of $30-$40 million for the 2017 fiscal year.
As of March, Main Street’s flagship location had generated over $5 million more than any other state-licensed cannabis company in Washington since the state launched its rec program, including all retailers, producers and processors.
Hamide studied business at the University of Washington and worked in the ticket brokerage business before getting into marijuana retail sales. He believes customer service has been one of the biggest reasons for the company’s success.
“We love our customers and based our whole business concept on the Costco model, which is centered on the idea that great products, smart employees and aggressive pricing will create customer loyalty,” Hamide says.
As the Main Street Marijuana empire has expand-ed, Hamide has learned a lot and continuously strives to make the stores a better and more efficient retail experience. One of the things he’s most proud of is Main Street’s tax contribution. With more than $14 million already sent to the capital — and monthly excise tax payments near-ing $1 million for the three retail outlets — Ha-mide’s retail operation is a significant contributor to all residents of Washington state.
www.marijuanaventure.com | 93
94 | Marijuana Venture // June 2017
Alabama is not exactly the best state for would-be cannabis entrepreneurs. Without a recre-ational or medical marijuana law, the marijuana economy there remains entirely underground.It was in that environment that Sirius Extracts co-owner Erin Wallace got her start, growing at home and making oil on the down-low. When the opportunity arose to move to Oregon, Wallace and her husband Frank jumped. By the time they arrived, family members had already pur-chased supplies for them to keep growing and making oil.“We started the day after we got here,” Erin says.The couple named their company “Sirius,” after a star believed to be the home of the cannabis plant by the Dogon tribe in Africa. The company’s oil and shatter quickly grew in popularity. At one point, Sirius products were available in more than 60 dispensaries throughout the state. However, the switch from medical to licensed recreational sales led to a temporary shutdown, but the Wallaces are finally ready to get their product back into stores, including their own, Gram Central Station.Today, Sirius owns a 10,000-square-foot building in Portland with solar panels, reducing both its carbon footprint and energy costs. The company is expanding to Southern Oregon and is looking at California, but the ultimate goal is even bigger.“Our dream would be to do this in Alabama too,” Wallace says.
Erin WallaceAge: 36Company: Sirius Extracts, Gram Central StationTitle: Co-owner
Scott Taylor ▶ Age: 37U.S. House of Representatives
▼ Tulsi GabbardAge: 36U.S. House of Representatives
In February 2017, Tulsi Gabbard and Scott Taylor were the first co-signers on House Bill 1227, the “Ending Federal Marijuana Prohibi-tion Act of 2017.” The bill was introduced by Republican Thomas Garrett of Virginia (who at 45 is slightly too old for this list). If passed, the bill would remove “marihuana” from the Controlled Substances Act.Taylor, a freshman congressman and former Navy SEAL also from Virginia, has released no public statements on the bill and did not return a request for comment, though his campaign website lists the Republican as a strong sup-porter of states’ rights.Gabbard, a two-term Democrat from Hawaii and member of the Hawaii National Guard, also signed on to sponsor the legislation. She favors legalization as part of a criminal justice reform strategy.“Our outdated policies on marijuana are having devastating ripple effects on individuals and com-munities across the country. They have turned everyday Americans into criminals, torn apart families and wasted huge amounts of taxpayer dollars to arrest, prosecute and incarcerate peo-ple for non-violent marijuana charges,” Gabbard said in a statement supporting the legislation.Gabbard also supports the legislation because it would mean businesses in the medical marijuana industry, like those in Hawaii, would have access to banking services and business loans, like any other legal business in the state.Though neither representative is technically part of the House of Representatives’ “Cannabis Caucus,” both are helping lead the fight for legal-ization from their respective sides of the aisle and proving that cannabis is one of the few non-parti-san issues everybody should get behind.
96 | Marijuana Venture // June 2017
◀ Jessica KnoxAge: 31Company: The American Cannabinoid Clinics Title: Co-founder, Consulting Physician
Rachel Knox ▶Age: 34Company: The American Cannabinoid Clinics Title: Co-founder, Consulting Physician
In the realm of medical cannabis, far too many peo-ple rely on dispensary employees with no medical training to help them determine the best course of action of treating a medical condition.
In other words, there’s too much emphasis on mari-juana and not enough on medicine.
However, the AC Clinics are changing all that.
All the consulting physicians at the AC Clinics (which stands for American Cannabinoid Clinics) have years of experience as emergency room doctors, family physicians, anesthesiologists and in preventative medicine.
“It’s a family affair, really,” Dr. Jessica Knox says. “It’s my sister, myself and also our parents who are all doctors.”
Dr. Rachel Knox says her family’s clinics aim to provide more than just recommendations for medical cannabis.
“Sure, we can write you a card if you qualify for a medical condition, but we also know that cannabis isn’t everything,” Rachel says. “We also cover topics like nutrition, chemical exposure, stress and your relationships. We really do describe our care as integrative cannabinoid medicine.”
Alongside the four AC Clinics locations in Oregon, the Knox family established The Canna MDs web-site as “an effort to educate patients and healthcare providers and the public in general with a reliable and verifiable source of information about cannabis
98 | Marijuana Venture // June 2017
as medicine,” Jessica says. The website contains a wealth of valuable resources for clinicians, advo-cates and even historians. It’s a lot more than what was offered during Rachel and Jessica’s years at medical school.
“When we were going to medical school, which wasn’t that long ago, cannabis was only discussed as a drug of abuse,” Jessica says.
Ironically, while both sisters were away at college, it was their mother, Dr. Janice Knox, who began look-ing at the medicinal benefits of cannabis. Her interest led to the formation of both The Canna MDs and the AC Clinics.
“I remember when she was telling me about this (medical cannabis), I was thinking, ‘What kind of pseudo-science has she gotten into?’” Jessica says.
Both sisters say their interests in traditional medicine at the time were waning and the allure of non-tra-ditional medicine promised a move away from the United States “sick care” system where doctors are trained to provide enough health care to send patients home, but not necessarily thrive.
“That was a very frustrating thing to do, because I think everybody goes into medical school thinking they are going to change the world,” Jessica says. “We both felt that there we were missing the boat, that there were a lot of other approaches that we weren’t trained in that could be beneficial for patients.”
“I felt very limited in what I would be able to do to truly help people through conventional medicine,” Rachel says. “When I discussed this with my mom, she challenged us to think outside the box, so we only applied to medical programs where we could get a dual degree in business.”
Rachel and Jessica both graduated from Tufts Med-ical School in 2012 with their MD and MBA degrees. And though they graduated college the same year, they’re not twins.
“We always get asked if we are twins,” Rachel says, “and sometimes we’ll just say yes because when we say no people are bummed out.”
www.marijuanaventure.com | 99
www.marijuanaventure.com | 101
utive director of the California Growers Association. Now his goal is to protect the young industry — especially in California — through lobbying and statewide programs.“(Our goal is) ensuring that the culture, the varietals and the farmers that have long been the global leaders in cannabis are able to transition to the regulated future,” Allen says. “(That means) ensuring that cannabis remains a startup-friendly business, ensuring that cannabis is an equitable industry and continues to create good jobs in communities up and down the state, and ensuring that the marketplace of the future acknowledges and corrects the injustices of our past.”The California Growers Association lobbied for and helped pass the Medical Regulatory and Safety Act in 2015. Many of the details in that bill were later incorporated into Proposition 64, which legalized recreational cannabis, including “recognizing cannabis as an agricultural product, establishing appellations for cannabis and ensuring that license requirements and fees are used to provide pathways forward for all,” Allen says. After the legislative session ends in September, the regulatory process for new commercial cannabis licenses will move forward and likely be ready around the start of 2018. But that process won’t be easy. “With two divergent regulatory frameworks (MRSA and AUMA), more than 45 pieces of cannabis relat-ed legislation and three new licensing agencies just getting off the ground, there really aren’t enough hours in any day, or enough days in any week,” Allen says.
Hezekiah AllenAge: 33Organization: California Growers AssociationTitle: Executive Director
Born and raised in rural Humboldt County, California, Hezekiah Allen grew up learn-ing everything there is to know about cannabis.He grew it, sold it, smoked it and ran his own cannabis farm before becoming exec-
Kathryn VanEatonAge: 34Company: The Stoner MomTitle: Founder
Like millions of moms, Kathryn VanEaton has an array of social media accounts to share family photos, political opinions and stay connected with friends and family. But unlike most parents, VanEaton also posts videos of herself smoking pot and talking about canna-bis under her online pseudonym, The Stoner Mom.
“I began TheStonerMom.com as a personal project with the premise of showing one face of modern can-nabis use,” VanEaton says.
VanEaton normalizes responsible cannabis use by discussing topics relevant to parenting and adulthood, such as an ongoing series on “getting things done for stoners.”
“I had already been blogging for over a decade at that point,” she says. “As a former professional photogra-pher, I was well-versed in branding, Internet marketing and maintaining a small business.”
Her growing base of paying subscribers is emblem-atic of her ability to resonate with the masses of less stereotypical consumers.
“I originally had no plans on having any videos or podcasts,” she says, “but as I became more invested in my website I saw that I would need to incorporate different media to keep up with the times.”
Nick Mosely ▶Age: 30 | Company: Confidence AnalyticsTitle: Co-founder, Chief Science Officer
As Washington was on the verge of legalizing recreational marijuana usage, Nick Mosely was a clinical researcher for the University of Washington Medi-cal Center, focusing on redefining newborn and prenatal growth charts.But one evening just prior to the vote, a friend in the medical marijuana industry lamented the lack of competition among testing labs and pointed out that Mosely had exactly the background needed to open a testing lab.Eight months later — after putting together a business proposal, getting together with partners and investors, finding a space and developing a method to test cannabis — Confidence Analytics opened its doors. In those early days of Washington’s regulated cannabis industry, Mosely, who has a master’s degree in genetic epidemiology, often had to person-ally pick up and test samples for clients throughout the state. “It was hectic,” he says. Confidence was the second lab in the state to receive accreditation. A package of the first lab-approved product sold in Seattle was donated to Washington’s Museum of History & Industry.Mosely is now a board member of the Cannabis Alliance and serves on the Washington Liquor and Cannabis Board’s Traceability and Packaging and Labels Advisory Panels. He says there’s never a dull day working in canna-bis, which is “endlessly complex” with “decades of research” yet to be done.“The drug has incredible capabilities,” he says. “It’s really unlike any-thing else.”
102 | Marijuana Venture // June 2017
104 | Marijuana Venture // June 2017
the Cole Memo era has allowed him to invest in the company without fear of random raids or be-ing shut down at the whim of local officials, resulting in the multi-faceted business he oversees. “The rules in Arizona are such that those licenses are fully integrated,” he says. “So, it allows us to have a cultivation, processing and a kitchen facility.”Despite the size and scope of the Phoenix-based company, Adakai wasn’t the type of com-pany that was born out of the so-called green rush. Johnson says it was actually the result of a boating accident that left his mother with neurological pain symptoms similar to phan-tom limb syndrome.“Her knee was healed, but she was going through heavy amounts of pain on a daily basis,” he says. Doctors prescribed 12-13 Vicodin pills a day for his mother’s pain and the effects ultimately drove Johnson to seek a healthier alternative with cannabis in 2010. In 2013, he opened Monarch, the first licensed dispensary in Scottsdale, and the Adakai brands can now be found in more than half of the licensed dispensaries in Arizona, Johnson says, help-ing his mother, as well as others.
Dustin JohnsonAge: 36Company: AdakaiTitle: CEO
At 36, Adakai CEO Dustin Johnson employs more than 70 people through the company’s dispensary (Monarch Wellness Center), its cultivation center (Oma-ha Farms) and its extraction company (Huxton). Johnson says operating in
David Barakett had already solidified his career in real estate by becoming the youngest owner of a Century 21 office before deciding to launch a new business, ShowGrow, in California’s medical marijuana industry in 2015. Within a year, Barakett’s cannabis business grew to three locations in California and became one of the few to cross state borders and establish itself in Las Vegas, Nevada. Now he is looking to step beyond medical sales.
“Currently, ShowGrow only sells medicinally, but with recent changes in California's legalization and as we grow national-ly, we will be expanding into the recreational market as well making all the necessary adjustments to conduct business on the recreational side,” he says.
ShowGrow isn’t just a clever title. Barakett built his stores to literally show the grow it’s selling.
“It’s always been our focus to show transparency to our pa-tients, as it allows us to showcase one of our core ideals, an inspiring concept for the ‘show’ in our ShowGrow name,” he says. “It provides a more hands-on approach for consumers, and allows them to get to know the product and industry for themselves.”
Barakett says the model has proven itself in the California and Las Vegas markets and he anticipates the upcoming re-moval of gray market competitors will stimulate his business further.
“The transition from medicinal to recreational will cause the black market to become almost obsolete,” he says. “The surge in people coming in for recreational purposes will happen at dispensaries across the board.”
David BarakettAge: 29 | Company: ShowGrow | Title: CEO
foresight to believe that my state would come off to be the most aggressive hemp state in the nation.”
In addition to his own farming venture, Giannotti’s Canna-bis and Hemp Association has helped produce more than 100 educational events since the trade association was founded in May 2014.
“The main focus of the Cannabis and Hemp Association is education and raising awareness of cannabis as, what I like to call, ‘a cornerstone crop for sustainable living,’” Giannotti says, “meaning that with one plant you can get food, shelter, medicine, spirituality and culture — everything you need to have a human civilization and have it run optimally.”
Giannotti, who is also the managing director for the Cannabis World Congress & Business Expo, plans use his new hemp farming license for a third enterprise, One Stop Hemp, which he envisions as a clearing house for the CBD industry and an incubator to help establish new hemp businesses.
Scott Giannotti Age: 37Company: Cannabis and Hemp AssociationTitle: Founder
Scott Giannotti feels pret-ty blessed right now. The 37-year-old founder of the Cannabis and Hemp Associ-ation is in the final stages of acquiring his hemp farming license in New York.
“Our governor (Andrew Cuomo) is looking to be the Rambo of hemp,” he says. “I would never have had the
106 | Marijuana Venture // June 2017
Moon Sun was 18 years old when voters in Washington approved Initiative 502, legalizing the recreational use of marijuana for adults. He was wrapping up his senior year of high school, but he knew he wanted to work in the nascent cannabis industry, so he turned his focus to biochemistry when he began attending Western Washington University.For his senior project in college, Sun looked into creating genetically modified cannabis strains that included an additional THCA synthase, the enzyme that creates THC, with the goal of pro-ducing a more potent plant. On the chemistry side of his degree, Sun studied how CBD affects cancer cells and allows the body to more easily attack the invader.At Haystack Cannabis, Sun helped the company refine its product line, developing the method for processing the distillate it uses in all its products, including the Tuscara CBD/THC topical.Sun says he plans to improve his process further, making it easier to get some of the less accessible cannabinoids, such as CBN, which helps induce sleep. He also hopes to restart his genetics work to develop a plant with the additional synthase.“People are forgetting why they got into this industry in the first place,” he says. “Always strive for excellence.”
Moon SunAge: 22Company: Haystack CannabisTitle: Chemist
108 | Marijuana Venture // June 2017
David MurétAge: 37 | Company: Viridian StaffingTitle: Co-founder, Chief Operating Officer
When David Murét moved from California to Washington in early 2013 to join the fledgling cannabis industry, he found a big empty niche with no real professional recruiting services.So he and his co-founder, Kara Bradford, created Viridian Staffing.“We did our research and found that there were no firms providing the industry with professional recruiting services, just a small handful of temp staffing agencies out of Colorado, providing trimmers and such,” Murét says. “Seeing the need, as well as our complementary skill sets, we founded Viridian Staffing and never looked back.”Murét’s background in the legal field, finance and information technology was a good counterpoint to Bradford’s skill in technical recruiting. “Since 2013 we have managed to expand our practice across North America, servicing clients coast to coast, including multiple firms in Canada and Puerto Rico,” he says, adding that the company will be expanding services into California’s new recreational market.But his efforts to facilitate the merger of four separate trade organiza-tions into The Cannabis Alliance, Washington state’s largest nonprofit industry association, is Murét’s proudest accomplishment. “Not only has that organization attracted some of the most admirable and inspiring people I have had the pleasure of knowing,” he says, “but they have helped unite Washington’s fractured industry.”
Kyle ShermanAge: 30 | Company: Flowhub | Title: Founder, CEO
Kyle Sherman became an entrepreneur at an age when most of his peers didn’t even know what the word meant. Way back in middle school, Sherman started his first business, a comput-er services company that removed malware and other unwanted pro-grams from computers.“I’m a problem solver and a doer,” he says. “I don’t let barriers get in my way.”Three years ago, Sherman moved from Los Angeles, where he worked in marketing, to Colorado to try to make his way in the emerging cannabis industry. He started doing marketing for several companies and then began to work on compliance issues. He realized there were multiple short-comings in the products available, mainly that it was built for other industries and being applied to the cannabis industry’s needs.As a “hobbyist coder” who never attended college, Sher-man began work on a marijuana-specific product in January 2015 and officially launched Flowhub in June 2016. The seed-to-sale tracking system has taken off. Since the fourth quarter of 2016, the company has grown 300%, according to Sherman.Today, Flowhub has 30 employees. Sherman says its success stems from his philosophy of “Go. Do. Execute.” He believes that Flowhub’s focus on compliance and transparency can help show the industry’s value and spread it across the country. He’s already seen the difference that can be made in working with state legislators to change their minds on the matter.“Going into my 30s, it’s really cool to know you can make a difference,” he says.
110 | Marijuana Venture // June 2017
the differences in cannabis varietals, Keahey launched the now-famous “Hemp looks like this” campaign, which promoted the many uses of hemp, including textiles, foods and nutritional supplements, all from a supply that has to be imported.“The fact is we already have this on the shelf in the U.S.,” she says. “We have the ability to grow that domestically.”Growing up in the ‘90s, Keahey always understood the difference between hemp and marijuana thanks to a clothing store in the Tennessee town where she lived. The purses and jewelry pro-vided an “early awareness” of the plant’s industrial, not psychoactive, nature.“I understood it was a textile,” she says.Fast forward to 2013 and Keahey was working at the state chapter of the National Rural Water Association. Her father had 80 acres of land and the family was trying to figure out what to do with it that would be “meaningful and have a lasting impact.” One February afternoon, she went to pay for lunch and pulled out a dollar upon which someone had stamped “I grew hemp” over President Washington’s head.She eventually started a Tennessee chapter of the Hemp Industries Association, but she never forgot the first message that made her look deeper into hemp. “I still have it,” she says of that stamped dollar bill. “I had it framed.”
Colleen KeaheyAge: 33Organization: Hemp Industries AssociationTitle: Executive Director
As the Hemp Industries Association’s new national director, Colleen Keahey hopes to continue educating farmers, legislators and the public on the versatility of marijuana’s sister crop.“All cannabis plants have val-ue for humanity,” she says.To help educate people about
112 | Marijuana Venture // June 2017
tion. Amazingly, some of CMH’s retail partners have more stores than CMH has employees, Diiullo says.
“We’re a lean team, but we’re able to adapt faster,” she says. “It’s like a velociraptor versus a brontosaurus. A smaller, faster team can drive change much faster. That’s what we do and I’m so honored to work with such talented and hard-working individuals. I’m constantly impressed by every facet of my team.”
CMH Brands is the Colorado licensee of Willie’s Reserve. CMH partners with a number of cannabis growers to manufacture and distribute all the Willie’s Reserve pre-rolls, pre-packed flower and vape products. But rather than just repackaging somebody else’s product, CMH and Willie’s Reserve develop true partnerships with the farmers, Diiullo says.
It’s an uncommon arrangement in the cutthroat cannabis industry, where so many companies see each other as bitter rivals — but she believes working together will strengthen the industry.
“We’re all aware of obstacles and political gray areas that keep us up at night, but by working together, we only have more strength,” she says. “I might not agree with everything you say or agree with everything you do, but if you also operate in this space, you know how hard it is. You know it’s a grind and it’s risky. Together we have more power.”
Diiullo’s insight comes from having worked in Colorado’s cannabis industry since 2008.
“We’re really maturing as an industry and entering into this new era that will allow us to em-brace more traditional marketing techniques and marketing approaches,” she says.
Publishers note: This list would not be complete without the inclusion of three members of Marijuana Venture’s staff: editor Garrett Rudolph, Patrick Wagner (the magazine’s first full-time writer) and Chloé Mehring (our amazing graphics editor).
All three of them are tireless workers and full of talent. With this small, under-40 team and a few of us older farts, we’ve managed to create the fastest-growing magazine in North America and a publication that has become a trusted source of real information on the business of legal marijuana. Thank you to all three of you.
(I forced Garrett to run this as I know he’s too modest to even think of himself as deserving of a mention.)
— Greg James
Amy DiiulloAge: 32 Company: CMH BrandsTitle: V.P. of Business Development and Sales
To be successful in the cannabis industry, companies have to be flexible, adaptable and tenacious — a concept that’s been embraced by Amy Diiullo, vice president of busi-ness development and sales for CMH Brands.
Despite its association with Willie Nelson, easily the big-gest celebrity name involved in marijuana, CMH Brands is a relatively small opera-
114 | Marijuana Venture // June 2017
PH
OTO
BY LA
UR
EN
GIB
BS
, RIS
E A
BO
VE
SO
CIA
L STR
ATEG
IES
116 | Marijuana Venture // June 2017
The 34-year-old entrepreneur has de-veloped the business on a simple motto: “Never give up and never stop trying to improve.”
With just four full-time employees, AlpinStash is the epitome of a family business. Sloat, his sister Emily, his fi-ancé Murr, and family friend Sylvia An-chondo manage the entire 3,000-square-foot grow operation.
“My mom also works with us from
Danny Sloat builds his business on trust and perseverance ― ― ―
By GARRETT RUDOLPH
Danny Sloat is banking on the theory that bigger isn’t always better.
As the owner and head grower of AlpinStash, a recreational cannabis producer in Louisville, Col-orado, Sloat makes the most out of a small team and a small indoor production facility. By taking
an artisanal, craft approach to cannabis, the company is able to focus on quality and consistency, without worrying about the highest yields.
A Family that Grows Together…
40 UNDER 40
118 | Marijuana Venture // June 2017
PATIENCE AND COMMUNICATION
ARE CRUTIAL IN ANY WORK
ENVIRONMENT, BUT EVEN MORE
IMPORTANT WHEN IT COMES
TO FAMILY
“
time to time when we need an extra hand,” Sloat says. “It's great to see her interact with some of the young trim-mers. She's a very cool lady and it's a blast to see her trim.”
Running a business that’s so inter-twined with family members can be tricky at times, but Sloat says he feels blessed to be surrounded by loved ones and wouldn’t have it any other way.
“It can be a challenge to separate busi-ness life from personal life,” he admits. “Patience and communication are cru-cial in any work environment, but even more important when it comes to family. As the boss, I have learned that the key is to know your employee (and) know how to give constructive criticism and praise to an individual in a way that’s most ef-fective for them.”
AlpinStash recently celebrated the two-year anniversary of receiving its marijuana business license. Like so many entrepreneurs in the early stages of cannabis legalization, Sloat’s story began with a debilitating illness.
Over the course of a six-year stretch, Sloat battled multiple chronic pain syn-dromes, including a non-cancerous brain tumor. The Boulder native had grown up enjoying the outdoors, but several sur-geries and extended hospital stays led to an ever-growing regimen of prescription medications. He was taking large doses of opioids, followed by medications to quell the side effects of the painkillers, followed by even more medications to stave off the side effects of those drugs — a dangerous spiral of 19 medications.
“I was stuck in a medical and phar-macological funk to say the least,” Sloat says.
By 2009, he was caught firmly in the clutches of depression. He disengaged from family and friends, became over-weight and spent most of his time an-chored in front of a television.
“I was in a really bad spot before I found cannabis,” he says. “After six years of opiate use and more medical
Growing cannabis helped Danny Sloat get his life back after years of being prescribed opioids for pain.
120 | Marijuana Venture // June 2017
issues and procedures than I care to re-member, I needed psychological and spiritual healing as much as physical healing.”
Cannabis provided both. “Ingesting cannabis helped to relieve
my pain, which allowed me to get off of opiates as well as do the things I en-joyed previously, such as climbing and hiking,” he says. “Growing cannabis was a way for me to be physical again and reactivated my brain.”
Sloat’s medical journey is one of the reasons he’s fanatical about holding Al-pinStash to a high standard of quality. With 3,000 square feet of cultivation space, Sloat and his team can afford to give every plant “the individual care and love they deserve,” he says. But they’ve also embraced methods and equipment to operate in an ecologically friendly manner.
AlpinStash uses an energy-efficient cooling system and low-wattage, ener-gy-efficient lighting.
“On average, we use 70% less electric-ity per light to achieve the industry stan-dard in terms of yield per light fixture,” Sloat says.
The company also avoids using salt-based fertilizers and pays close attention to where it sources nutrient inputs.
“Everything we do is geared towards growing the best flower we can,” Sloat says. “We are always striving for perfec-tion. This includes specific protocols like changing into clean work clothes and shoes in our clean room, using only the finest natural inputs to keep our plants happy and healthy, spending as much time with each plant as they need so the get exactly what they want and em-ploying well-researched and thoroughly thought-out growing practices.”
EVERYTHING WE DO IS GEARED
TOWARDS GROWING THE BEST FLOWER
WE CAN
“The AlpinStash family (from left to right):
Sylvia, Emily, Murr and Danny.
122 | Marijuana Venture // June 2017
Fowler’s background in cannabis, along with his more recent experience as a securities lawyer, gives him a unique insight into the business. But despite the many differences between him and other industry leaders, there’s no denying the entrepreneurial spirit that inspires them all. Fowler left a stable career at a Bay Street law firm in Toronto to run what was, at the time, an unlicensed, unfunded,
CEO John Fowler’s unconventional path leads to one of the most innovative facilities in the country
― ― ―By GARRETT RUDOLPH
Canada’s booming marijuana industry has lured dozens of serial entrepreneurs and venture capi-talists into the once-forbidden space with soaring stock prices and the hope of a wide-open future.
In an industry flush with financiers, John Fowler is somewhat of a rarity — a 29-year-old CEO who
actually worked in cannabis long before founding one of the nation’s 43 federally licensed medical marijuana producers.
Growing BIG at Canada’s 7 Acres
40 UNDER 40
www.marijuanaventure.com | 123
startup cannabis company.The average person might call it career
suicide. Fowler calls it “a no-brainer.”And considering Fowler’s atypical ca-
reer path, it makes sense that his compa-ny, 7 Acres, would not only be an outlier in Canada’s rapidly growing industry, but uses one of the most innovative produc-tion facilities in the country.
While most producers grow cannabis un-der artificial lights in a warehouse, 7 Acres utilizes a massive hybrid greenhouse in Kincardine, Ontario. When complete, the greenhouse will be 342,000 square feet — roughly the equivalent of six football fields or a little more than seven acres, thus the name — and capable of producing 50 mil-
lion grams of sun-grown cannabis per year.Fowler says simply scaling up a small
garden- or basement-style grow will not meet market needs in the near future, but the hybrid greenhouse will allow the company to fill the gap between the high capital and operating expenses of indoor growing with the environmental and qual-ity benefits of growing in the sun.
The company also differs in its business model: Rather than selling direct to the consumer through Canada’s mail-order system, 7 Acres focuses solely on farming.
“I love that quote by Steve Jobs, where he says being focused is not just about doing that one thing; being focused is also about saying no to everything else,”
Fowler says. “He took as much pride in what he said no to as what he said yes to.”
Fowler believes 7 Acres is the only ded-icated wholesaler among the country’s licensed producers. He wants 7 Acres to be a retail brand, but doesn’t necessarily want to be the retailer.
“We want to be Coca-Cola, not the cor-ner store,” he explains.
Fowler helped start Supreme Pharma-ceuticals, the parent company of 7 Acres, in 2013. Since then, the publicly traded company has raised about $100 million in capital and is currently valued at about a quarter-billion dollars, despite still not having sold a single gram of its crop.
In the process, Fowler had to give up
Growing BIG at Canada’s 7 Acres
When complete, the 7 Acres greenhouse will be 342,000 square feet and capable of
producing 50 million grams of cannabis a year.
www.marijuanaventure.com | 125
a lot of equity in the company. He says he’s “nowhere near the majority share-holder,” but it was a strategic move he doesn’t regret.
“When you don’t have any money, you have to give up a lot of the company to get it going,” he says.
Building the 7 Acres greenhouse would have taken a decade or longer if the com-pany had to bootstrap it, Fowler says.
With adult-use legalization slated for July 2018, 7 Acres is ramping up its pro-duction capacity.
It went from 10 employees last year to 50 employees today and could have as many as 400 people on staff within the next couple years. So far, only about 40,000 square feet of the facility has been completed as a proof of concept. Fowler aims to be at full capacity within 18 to 24 months.
Though the focus appears to be on quantity, quality remains one of Fowler’s top priorities.
“I don’t think scale and quality have to be mutually exclusive concepts if you do it right,” he says.
In fact, he adds, it should be fair-ly easy to grow better plants at 7 Acres than somebody with just a couple lights in their basement. After all, 7 Acres has some pretty significant advantages: tens of millions of dollars in capital, a team full of scientists and passionate garden-ers, access to the top engineering firms and technological advances, and the ben-efits of being a legal, licensed company.
But the process to get there hasn’t been easy and despite many indicators of fu-ture success, 7 Acres still hasn’t delivered a single product to a customer, another luxury afforded by the company’s inves-tors.
The company had its pre-sales inspec-tion with Health Canada in January. Af-ter several long years, Fowler believes 7 Acres is in the final stages of receiving its sales license and being able to sell the couple hundred kilograms it’s already harvested. The next step is ramping up the massive greenhouse to its full poten-tial as a wholesale provider.
But Fowler admits even the best-laid plans may change as laws and the market tend to evolve rapidly.
“I’m not particularly rigid about what section of the cannabis industry we’re in,” Fowler says. “We want to be in it where we see the best opportunity.”
CEO John Fowler says he wants to be the Coca-Cola of
cannabis, not the corner store. Below: Fowler says 7 Acres’
access to the brightest minds and latest technology helps the company produce high-
quality cannabis at a fair price.
126 | Marijuana Venture // June 2017
Danielle Rosellison is not afraid to be out in front and help blaze that trail. She and her husband, Juddy, make up the ownership team behind the appropriately named Trail Blazin’ Productions of Bell-ingham, Washington. Since being licensed in 2014, the company has lived up to its name, blazing a trail through the labyrinth known as the legal marijuana industry.
Today, Trail Blazin’ has 10,000 square feet of canopy inside its 20,000-square-foot warehouse. The company employs 10 full-time employees, four multi-skilled part-time workers and 15 part-time trim-mers, as well as the two owner/managers.
Rosellison was an early activist who made it a point to learn as much as she could when industry rules were being writ-ten. She attended numerous industry events and state-sponsored meetings in order to better understand how the legal marijuana business would likely unfold. She’s a smart entrepreneur who did her homework and planned carefully, and the result of her due diligence is a cannabis cultivation operation that returns consistent profits to its owners. Rosellison is also so well-respected among her peers that she was elected to serve as the first president of The Cannabis Alliance, a nonprofit dedicated to the advancement of
a sustainable and ethical cannabis industry. Marijuana Venture caught up with
Rosellison to discuss some of the many challenges that growers in other states that legalized marijuana in 2016 are likely to face in the coming months and years.
Marijuana Venture: What have you learned as a legal can-nabis cultivator?
Danielle Rosellison: Where do we start? Choose business part-ners carefully. Hope for the best, but plan for the worst. Don’t expect other compa-nies to do their job as well as you do. Lis-ten, take notes, and do research, but also, trust your gut. We are the experts.
Leader of the AllianceTrail Blazin’ Productions reflects on cutting a path through a new industry
― ― ―By GREG JAMES
Photos by SAVATGY PHOTOGRAPHY
Making your way in a new and growing industry is nev-er easy. Someone has to build the path that others can follow as the business grows and develops.
40 UNDER 40
Left: Danielle Rosellison with husband, Juddy, inside the Trail Blazin’ Productions facility.
www.marijuanaventure.com | 127
MV: What was the biggest surprise or lesson that you learned?
DR: Government bureaucracy. If you’re thinking about getting into
this business, you should have all your local government officials on speed dial. You need to know who they are, and they need to know who you are.
You also need to know and under-stand regulatory agencies and how they work.
You should also be involved with the local chamber of commerce, join with other cannabis businesses to form trade groups and get involved with local and national cannabis associations. Knowl-edge and connections are your best line of defense when problems — and you will have problems — arise.
MV: What are your thoughts about indoor compared to outdoor pro-
duction? Why did you choose indoor?
DR: There are hundreds of ways to grow cannabis. We went with the
method that best suited our circumstanc-es. We have small children and needed to be near “granny nanny.” That meant stay-ing in Bellingham, which is on the cooler, wetter west side of the state.
Growing outdoors or in a greenhouse would not be optimal for our corner of the state. In the end, we went with what we knew and created an indoor facility that could consistently produce high-quality flower.
MV: How did you select your grow lights?
DR: It’s been an evolving process. LED technology was relatively new
when we got licensed in 2014, so we did some initial small-scale testing of four different brands that we researched on the Internet. From there, we purchased lights for our first grow room. Unfortunately for us, they were not UL listed and therefore did not qualify for rebates from the power company. For rooms 2 and 3, we went with a manufacturer that was UL certified and within our budget. We also took advantage of the rebate programs that make LEDs an affordable option. Finally, with rooms 4, 5 and 6, we purchased LED fixtures that rep-resented the latest in technology. So now we have three different brands of LEDs in our warehouse. Overall, we’re very happy with LED fixtures and at this time we’re a 100% LED grow facility.
128 | Marijuana Venture // June 2017
MV: How many retailers carry your product?
DR: We’re at 17 and counting. Do you know any stores that want to car-
ry award-winning, pesticide-free, sustain-ably grown Trail Blazin’ product?
MV: Do you personally do any sales?
DR: Heck no! Being successful in business means knowing your
particular skill set. I’d probably give our
product away for free, while my husband would try to get $10 per gram wholesale. We settle somewhere in between. I let my husband and his team handle sales. That’s their area of expertise.
Hiring professional sales people was one of the smartest things we did in this business, and I’d encourage any-one thinking about this industry to hire according to proven skills and not big talk.
MV: How effective are the various forms of promotion?
DR: For us, budtender samples are the most effective means of pro-
motion because they love our product. If you’re not a big company with huge amounts of cash, you have to be very careful with your marketing budget. Bud-tender samples, vendor days and social media have worked well for us.
MV: Do you see a noticeable ‘bump’ in sales after a budtender edu-
cation session?
DR: Budtender education is incred-ibly important. The more we
educate the budtenders, the more am-munition they have to sell our product. But the bigger concern for me is con-sumer education. As we know, there are some producers who have used illicit pesticides that can be carcino-genic when heated. We’d like to form an alliance with other good players out there to co-fund a large-scale educa-tion program.
Let’s be honest, there is a lot of good marijuana on the market. What makes us different is our commitment to can-nabis culture. We’ve been immersed in the culture for a long time, from the mu-sic scene to the ski/snowboard crowd to my father growing and using cannabis to self-medicate from his PTSD. It’s always been part of our life and to me it’s important to communicate to bud-tenders and consumers that this isn’t our first rodeo.
MV: What words of advice would you offer someone contemplat-
ing entering the cannabis industry?
DR: If this is your first venture as an entrepreneur, I would not
recommend the marijuana business. Starting a business requires a variety of skills, knowledge, capital and unwaver-ing tenacity. The legal cannabis indus-try is a whole other level. This is hands-down the most difficult thing our family has ever done. On the bright side, it also has the ability to be the most beneficial. It will take every ounce of strength and determination to make it to the finish line and the winner’s podium.
HIRING PROFESSIONAL SALES PEOPLE WAS ONE OF THE SMARTEST THINGS WE
DID IN THIS BUSINESS“
A close-up of Trail Blazin’s Dutch-47.
GTH Law
Bud Bar
Ethanol Extraction
130 | Marijuana Venture // June 2017
the
GREEN PAGES
The Organic Overview
The Green Pages is a new section focused entirely on the subject of organic and sustainable cannabis, a complicated issue due to the federal illegality of marijuana. This monthly
feature will address the various certification programs that are available, organic production techniques, products and pitfalls, as well as highlighting farms that have received a third-
party endorsement to confirm their production standards. by garrett rudolph
T HE WORD “ORGANIC” carries a great deal of weight in American culture.
It’s a buzzword that boosts the price of produce, implies the use of all-natural ingredients and gives consumers a sense of security that they’re doing right by their bodies and the environment.
Cannabis cannot be certified as organic, due to the continued federal pro-hibition of the wonder-plant. However, that hasn’t stopped hundreds, if not thousands, of businesses from capitalizing on the widespread recognition of the label. This has created one of the most convoluted, confusing and misun-
derstood subjects in the cannabis industry, both for consumers and businesses alike.
“That word, ‘organic,’ is understood by consumers, but the challenge is that it was being used based on that consumer understanding, but not actually being practiced,” Organic Cannabis Association chairman and co-founder John-Paul Maxfield says. “You wouldn’t accept this from your food, so why would you accept it from what you’re smoking?”
The organic food industry is valued at more than $40 billion in the United States and consumer demand has been on a steady rise since the USDA first introduced the Organic label in 2002. The global market is project-ed to surpass $200 billion by 2020, according to the California-based firm Grand View Research.
The average shopper may not know the first thing about organic farming, but most still perceive organic products to be somehow healthier than their conventional alternatives.
www.marijuanaventure.com | 131
But in the cannabis industry, the word “organic” has been overused to the point of rendering it meaningless. Although state regulations are slowly squeezing out the phrase, it was at one point as ubiquitous as the simple green crosses that shined like medical marijuana beacons.
Ben Gelt, co-founder of the Organic Cannabis Association, says state agencies should play a greater role in upholding standards related to health and safety. The misleading use of the word “organic” can give marijuana consumers — particularly those using it to treat a medical condition — a false sense of security.
It’s as if the states are saying, “You figure it out, potheads,” Gelt says.
Gelt draws a comparison between shopping for cars and shopping for food. People have been taught to ask questions when they go to buy a car: How many miles are on it? What kind of gas mile-age does it get? Has it been involved in previous accidents?
But at a grocery store — similar to a marijuana retail shop — consumers have become accustomed to believing everything meets an established standard.
“We are a society that has been trained to think things have been done for us,” he says. “Yes, robust standards are needed, but public education is equally important.”
As part of this new monthly section, Marijuana Venture will dig into the ins and outs of organic cannabis production, both from a technical standpoint and from the legal, financial and marketing ramifications.
What is ‘organic?’To start, it’s important to understand the fundamentals of organic farming in the non-cannabis sense.
Organic is essentially a legal definition signifying that a crop has been certified to meet specific standards established by the USDA’s National Organic Program or the Canada Organ-ic Regime.
In general, the standards prohibit the use of most synthetic fertil-izers and pesticides and require crops to be grown in soil. There are separate standards for livestock and textiles, but the standards for food crops are most applicable to cannabis growers.
The movement to identify organic farming practices began
nearly a hundred years ago, but started to gain national mo-mentum in the 1970s, leading to a patchwork of state certi-fication programs and independent certifying agencies. The national programs eventually unified these standards under one umbrella, but the process moved at the sluggish pace of government. In the United States, Congress passed the Organ-ic Foods Production Act in 1990, but didn’t implement stan-dardized regulations until 2002. Canada’s national standards went into effect in 2009.
Considering how long it took for the U.S. and Canada to establish organic standards for fully legal crops, it’s easy to understand why cannabis remains persona non grata in the eyes of federal agriculture departments.
Certified cannabisBecause there’s no way to have cannabis certified as organic, a small handful of private companies and non-profits have stepped in to fill the void.
For-profit companies like Clean Green Certified and Certi-fied Kind offer endorsements based on the principles of the USDA’s National Organic Program. They’re often referred to as “the closest thing to organic” and more will surely follow as demand continues to grow.
Clean Green is the older and more widely used of the two certification programs. It was started in 2004 by Chris Van Hook, an attorney who was also the director of a USDA Organic certification program. In addition to certifying can-
Perfectly aligned rows of cannabis add to Southern Oregon’s natural beauty.
To read more about Alter Farms, one of about 60 companies that is Clean Green
Certified in Oregon, see Page 136.
132 | Marijuana Venture // June 2017
nabis growers, Clean Green also offers an endorsement for processors and retail outlets that demonstrate their ability to keep organically grown cannabis separate from convention-ally grown marijuana.
In total, more than a hundred companies have achieved Clean Green Certification in California, Oregon, Washington, Colo-rado, Montana and Nevada. Each is listed on the Clean Green website, making it easy for vendors and consumers to verify a brand’s certification.
Certified Kind was started by Andrew Black, who has more than a decade of organic certification experience with Oregon Tilth, a non-profit certifier of organic agriculture for more than 40 years. The Certified Kind website lists about 20 farms in California, Oregon, Washington and Colorado the company has certified.
Meanwhile, in Colorado, the non-profit Organic Cannabis Association take a slightly different approach. The trade group offers memberships to individuals and ancillary businesses (including law firms, accountants, etc.), but state-licensed mar-ijuana businesses are not eligible to join. Gelt says this is done to prevent conflicts of interest and to remove the possibility of conflating membership with certification.
The Organic Cannabis Association does offer a Pesticide-Free certification, which ensures a cannabis grower’s final product has zero residual pesticides. Gelt is careful to point out that this does not necessarily mean no pesticides were used, but they have to be used “correctly and safely.”
The association offers three levels of Pesticide-Free certifica-
SPOTLIGHT: Neptune’s Harvest
Fish-based fertilizers are among the most common or-ganic inputs for growing a wide variety of crops, so it
makes sense that some of the country’s leading fertilizer brands would have their roots in the fishing industry.
In 1986, seeking a way to dispose of the fish remains created after processing, Ocean Crest Seafoods inad-vertently became part of the organic fertilizer industry.
The Massachusetts-based wholesale seafood company, with help from the University of Massachusetts marine station, developed a process of turning the fish remains — also called gurry — into fertilizer, allowing the company to utilize 100% of the fish and creating a separate division, Neptune’s Harvest, to focus on agricultural products.
The fertilizer is made using a unique cold process to pre-serve the heat-sensitive nutrients and enzymes. Multiple species of fish, caught in the cold, mineral-rich North Atlantic Ocean are ground fresh the day it comes off the boats, so it doesn’t stink.
Fish fertilizer not only helps create healthy plants and soil, but it can help reduce the need for pesticides and other chemicals. Fish also helps build up organic matter in the soil to retain moisture, allowing growers to reduce water usage.
In addition to nitrogen, phosphorus and potassium, it contains micro- and macro-nutrients, amino acids, miner-als, vitamins, trace elements, enzymes, omega oils and naturally occurring growth hormones that feed beneficial bacteria and soil microbes. The result, according to the company, is higher yields and better quality for all crops.
Neptune’s Harvest (www.neptunesharvest.com) has ex-panded its product line over the years to include Liquid Fish & Seaweed Blend, Straight Seaweed, Lawn Starter, Turf Formula, Rose & Flowering, Tomato & Veg and two dry products, Crab Shell and Kelp Meal.
Chris Van Hook, director of Clean Green, examines a greenhouse grow facility.
A 2,075-pound pumpkin grown with Neptune’s Harvest
www.marijuanaventure.com | 133
Certified organic garden materials such as soils, fertilizers and pest/pathogen controls give progressive farmers and gardeners the opportunity to cultivate in
harmony with nature, providing the necessary com-ponents to do things the old-fashioned way and feed the soil rather than the plant.
Organically fertilized soil gets better and better each year, while providing nutrient-dense crops that are resistant to disease and healthy to consume.
In contrast, manufacturing chemical fertilizers requires heavy use of non-renewables such as coal or natural gas. One of the most concerning aspects of synthetic fertil-ization is that such fertilizers leach into groundwater, disrupting and damaging aquatic ecosystems. Adding petrochemical-based fertilizers drives up the salt con-centration of a soil, while changing pH and negatively impacting beneficial microorganisms in the soil. These negative factors are growing as academia releases new studies regarding harmful effects of consuming chemical-ly fertilized and pest controlled crops.
Growing the cleanest crops, including cannabis, means not using synthetic pesticides, genetically mod-ified organisms, sewage sludge or petroleum-based fertilizers. Premium quality inputs yield premium
quality output and higher value for the crop. Organic fertilizers grow stronger plants, provide lasting nutri-tion that can bring out flavorful essential oil profiles, increase bag appeal and ultimately increase potency. Organic pest and pathogen controls formulated with essential oils and organic acids are a safe and effec-tive alternative to chemical sprays.
Demand for all crops, including cannabis grown under the standards of organic crop production, is swiftly increasing due to consumer desires. Dispensaries, wholesalers and cultivators receive top-dollar for well-grown, certified plant material such as Clean Green Certification. Commercial cultivators who have previously grown with salt-based fertilizers are switching to OMRI or OIM (Organic Input Material) inputs because discerning consumers ultimately prefer organics. Why not grow the highest grade possible by using organic soil and fertilizers?
Healthy gardens create healthy humans.
Maxwell Martin is an independent thinker from Humboldt County, California and the director of business devel-opment for Dr. Earth, Inc. of Winters, California (www.drearth.com). He believes that living an organic lifestyle and farming/gardening sustainably with certified organics is good for Mother Earth and good for man-kind.
What does it mean to be an organic producer of nutrients and other materials for growers?
BY MAXWELL MARTIN
134 | Marijuana Venture // June 2017
tion: the Gold level means only OMRI Listed, non-synthetic products were used during cultivation; Silver and Bronze levels mean some synthetics may be used, but the finished product must not have residual pesticides.
Gelt admits the phrase “Pesticide-Free” doesn’t carry the same weight as “organic,” but in the wake of the Colorado cannabis industry’s widespread pesticide recalls over the past two years, it’s a crucial step in the right direction.
The organic futureIn many ways, the organic cannabis movement resembles the organic food industry of the 1980s. There are a fair number of organic growers, but most have not completed any sort of certification process.
Without an official endorsement, consumers have no way to know whether phrases like “organic” or “all-natural” are accu-rate or just marketing ploys.
Plus, the few existing programs vary from state to state or from one certifying agency to the next, so Clean Green prod-uct might be slightly different from Certified Kind.
There are also a number of certification programs that are
not necessarily based on organic practices, but geared toward sustainability or healthy products, including The Cannabis Conservancy, Patient Focused Certification and the United Patients Group Seal of Approval.
“This is how the organic movement started in food, with state-run organizations sort of fragmented and then coming together through the USDA and the NOP,” Maxfield says.
But it’s kind of a chicken-or-egg question: What comes first, demand for the product or the product itself?
Maxfield also believes marijuana could be the fuel needed to initiate a greater level of sustainability throughout agriculture.
“I truly think from the bottom of my heart that cannabis is go-ing to go down in history as being this necessary catalyst that helps to rethink how we grow food and rethink agriculture,” Maxfield says.
Regardless, growers that have adapted organic standards in advance of any federal program will continue to be at the fore-front of the push for clean, safe, standardized products.
“It’s not going to harm the early adopters,” Maxfield says. “If anything, it’s only going to strengthen them, because they’ll be more prepared to certify and move in that direction as it evolves.”
North Country Dis-tributors
the
GREEN PAGES
136 | Marijuana Venture // June 2017
www.marijuanaventure.com | 137
Growing naturally in
OregonAt Alter Farms, producing top-quality cannabis is truly a labor of lovestory by greg james | photos by cody alter and jason rambo
SOUTHERN Oregon is easily one of the most beautiful places in the western United States. Blessed with lots of sun and a wide variety of ecological wonders, including two mountain ranges, a spectacular coastline, wild rivers and the northern end of the giant coast redwood forest, it’s hard to imagine a location better suited for cannabis cultivation — or a more welcoming spot for those who want to grow it.
Alter Farms partners Jodi Haines, Cody Alter and Jason Rambo strongly believe in both the intrinsic value of cannabis and the conservation ethos that many Southern Oregon residents have had for generations. Located near Grants Pass and the wild and scenic Rogue River, Alter Farms represents the epitome of what it means to care about the quality of marijuana.
“How can you not fall in love with a plant that brings people together and that also has abundant medical applications?” Haines asks.
Others may embrace marijuana cultivation as a business opportunity, but with Haines and the Alter Farms team, the concern and love for the plant is more than a slogan or a marketing line; it runs through them as richly as the soil they till.
138 | Marijuana Venture // June 2017
Mark Twain once said, “The secret of success is making your vocation your vacation.” His words ring especially true at Alter Farms, where cultivating cannabis is a true labor of love.
TerroirThe wine business has long embraced the notion of terroir. Simply put, it’s the combination of climate, soil, water and other environmental factors that influence the taste and “nose” of fine vintages. For Alter Farms, the Southern Oregon growing conditions have the same impact on cannabis.
Haines admits that at this early stage in the legalization pro-cess, adaptation is the order of the day.
“In a lot of ways we are all just starting to learn what this plant can do,” she says. “As a grower, cannabis is a fascinating spe-cies and is so responsive and complex that we are constantly challenging ourselves to get better and better.
“We get to grow this plant that we love right out in the open, in the Oregon sunshine, as part of a movement to help bring an end to 80 years of prohibition. And, we can share it with thousands of other people who will love it too.”
Haines believes the farm’s geographical location may be ideal for
producing some of the best marijuana flower on the planet. With rich soil, healthy forests and clean, clear mountain water, the envi-ronmental conditions lend themselves to a vision of purity that is rare in other locations. Could this be why so many have historical-ly chosen the area as a site for their legendary bud production?
Clean greenThe Alter Farms ownership team is committed to growing the best flower possible.
From the onset, their commitment to excellence also applied to the methods they would use. In Haines’ view, the right way to grow superb cannabis is no different than creating top-quality organic fruits or fine wine.
“We are Clean Green Certified and proud to support efforts to dis-tinguish and legitimize organic growing practices,” Haines says. “We’re really excited about the important work that is going on now to establish meaningful and coherent standards in areas like clean inputs, sustainable methods and fair labor practices.”
Oregonians traditionally value craft and the growth of specialty cultivators is developing rapidly.
Some of the Alter Farms growing methods parallel those
Natural flower patches bloom along the edges of Alter Farms’
outdoor cannabis orchards.
140 | Marijuana Venture // June 2017
used by all top-quality organic farmers. The farm grows in native soil and natural sunlight. It uses cover crops and compost to increase organic matter and the tilth of their land. It’s a system that creates a virtuous cycle: Balancing and re-mineralizing the soil; increasing the humus content and biological diversity; and creating a natural, diverse ecosystem in and around the plants.
Haines does not mince words when it comes to how the farm-ers nurture their cannabis: “We are not fertilizer applicators, we are farmers. Fertilizers can dominate much of the plant’s expressions (traits). We believe that the plant’s natural expres-sions are achieved though facilitating a symbiotic relationship with the soil and climate it is grown in.”
Bringing the plant’s natural expressions to the consumer drove Alter Farms’ motivation to offer an alternative experience. Do things correctly and, in Haines’ words, “the magic follows.”
Strains and curingCannabis aficionados love to talk about their strains, and the Alter Farms team is no different. Currently, the farm grows more than 60 cultivars and has an extensive seed library.
Haines believes the Southern Oregon topography and its many varied micro-climates strongly influence local tastes and preferences.
“The environment is great for cultivation all over southern Oregon, but because of the topographical differences between
river valleys and mountaintops, different cultivators gravitated to different cultivars,” Haines says.
At Alter Farms, two well-acclimated favorites are Pineapple and a unique Purple Hindu Kush. The Alter Farms Purple Hindu and Pineapple finished first and second, respectively, for THC content in the outdoor division of the Cultivation Classic in 2016. For 2017, the company has a new and exciting pheno called Purple Wild Fire, which according to Haines, has a unique and powerful smell, the likes of which they’ve never experienced.
If the Alter team sounds highly focused on the way they grow their cannabis flower, they are just as fanatical about its cure. According to Haines, the cure must be done correctly to achieve superior results.
“The duration of the cure is strain-specific and requires diligent attention with each different cultivar,” she says. “Not only is climate-controlling extremely important, but how long it hangs, how it is handled and what receptacle you cure the flower in all play a critical role in achieving extra smooth and flavorful cannabis.”
At Alter Farms, there is a genuine love of the cannabis plant. Everything the farmers do reflects that love, from the way the plants are grown, to the cure, to the way their organic style cultivation techniques respect Mother Earth. Southern Oregon will likely see some spectacular new cannabis farms in the coming years, and Alter Farms will be at the forefront, creating superior bud with a dedication to detail.
The Alter Farms partners: Jason Rambo, Jodi Haines and Cody Alter.
Photo by Vikki Lex.
Flying Skull
Clean Green Certified
Vital Garden Supply
144 | Marijuana Venture // June 2017
Starting a cannabis business legally
under state law re-quires owners to con-sider a wide range of possible challenges. Some of the major considerations in-
clude possible federal enforcement issues if the DEA changes its stance regarding the Cole Memo; concerns with banking because many FDIC-insured banks do not want to handle cannabis business ac-counts; potentially limited growth options since businesses cannot move product across state lines; and personal financial and safety concerns related to being in a cash industry.
These are just a few issues to consider before entering the cannabis industry, but there are countless more.
One significant issue that many entre-preneurs may fail to consider and could have huge implications on both the busi-ness and its owner is bankruptcy. Entre-preneurs and business owners rarely think about the possibility of failure when start-ing a new venture, but this is something that needs to be discussed, particularly in the cannabis industry.
Compare the following two stories:First, we have a business person look-
ing to open a restaurant. The owner finds a location and uses a small business loan to renovate the building, buy new kitchen equipment, hire qualified personnel and then opens the doors for business. As is the case in most industries, the owner is paying for rent, utilities, payroll and prod-ucts, which leads to a fairly sizable oper-ating budget on top of paying down the small business loan.
Next, we have an entrepreneur look-ing to start a cannabis business — in this case, let’s say a retail store. The owner needs to find a location, pay for build-out, security systems, licensing fees, operat-ing costs, etc.
Both businesses aim to make enough in-
come to cover the owners’ personal needs outside of work, but after a few months, it becomes clear that neither business is generating enough revenue to cover costs and make a profit. The restaurant owner can file for bankruptcy. In this setting, the owner has the chance to be relieved of the outstanding debts and liabilities and live to fight another day. However, bankrupt-cy is off the table for cannabis businesses.
Federal bankruptcy courts in both Ari-zona and Colorado have recently made the decision to deny bankruptcy protection for cannabis businesses and their owners, and these rulings have been affirmed by the 9th and 10th Circuit courts. As long as cannabis remains illegal at the feder-al level, cannabis entrepreneurs will be unable to file for bankruptcy. Debtors go-ing into bankruptcy cannot receive relief if they are considered to have “unclean hands,” meaning they are involved in ille-gal activity. However, there are a number of steps owners and cannabis businesses can still take to mitigate against this fate.
First, make sure the business is a prop-erly registered corporate entity (limited liability company, S corporation, C cor-poration). The structure may be different given the preferences of the owners.
Second, maintain all the corporate for-malities necessary for the entity structure chosen. This means holding annual corpo-rate meetings as required by law in the state governing the business, accurately keeping books and records for the business, voting on major decisions, taking minutes for the meetings at which votes take place and otherwise following the rules and require-ments of the LLC agreement, operating agreement, shareholder’s agreement, etc., as is applicable to the business. If the busi-ness is properly maintained, it will assist in protecting the personal assets of the owner from future creditors.
Third, while some construction is nec-essary for nearly every cannabis business, it is important to keep initial startup costs low. Many cannabis businesses start out ex-
pecting that having a license to operate is enough to guarantee a profitable business. This assumption has proven repeatedly to be incorrect. Keeping expenses low will go a long way to preventing a business from ever needing bankruptcy protection.
Fourth, do not overextend yourself per-sonally in an effort to fund the business. A cannabis business will not be entitled to bankruptcy relief and neither will an indi-vidual owner with debts and liabilities as-sociated with that company. This means liens against personal property, additional mortgages, credit card debt and any oth-er form of liability incurred to fund the business may remain enforceable.
These steps will not allow you to enter bankruptcy, but they may help avoid the need to file for it. There is a misconcep-tion that cannabis businesses are “print-ing money” with people across the coun-try believing an investment in cannabis equals big returns. In reality, excessive taxes, tough competition and growing uncertainty with the federal government make this a risky bet and such risks should not be taken lightly, especially in a business without bankruptcy protection.
Matthew Cleary is an attorney at Van Kampen & Crowe PLLC (www.vkclaw.com), practicing business and transaction law with an emphasis on the cannabis in-dustry. He has represented cannabis busi-nesses from highly trafficked retail stores to large producer operations and every-thing in between. Before practicing law, he was an enforcement officer for the Wash-ington State Liquor and Cannabis Board.
LEGAL PAGES
Without bankruptcy option, personal assets are at riskFour tips to protect your business and yourselfBy Matthew Cleary
AS LONG AS CANNABIS
REMAINS ILLEGAL AT THE FEDERAL LEVEL, CANNABIS ENTREPRENEURS WILL BE UNABLE
TO FILE FOR BANKRUPTCY
“
Seattle Commercial
Development Robert Howie
Willows Ridge Building12611 Willows Rd NE, Kirkland, WA
CONTACT Thomas Allen 425.837.9720 [email protected]
NEW 502-COMPLIANT CONSTRUCTION Heavy Power AvailableLarge Water Supply with Recapture SystemSecure Building Access w/ Card Key ControlReady for Tenant Build OutBuilding Designed to Control OdorAvailable January 2018
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to it’s accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, state-ments of income and expenses. Consult your attorney, accountant, or other professional advisor.
Johnston En-gineering
DK Law
146 | Marijuana Venture // June 2017
In many states, the legalization of can-
nabis for recreational use has created im-portant challenges for employers and employees alike. One challenge often aris-
es when an employer becomes aware of medical marijuana use by an employee, forcing the employer to address its ob-ligations under disability discrimina-tion laws, among others. Some states, including California, have not extended protections to medicinal users in the em-ployment context; however, employers must still be mindful of their obligations regarding the potential accommodation of employees with disabilities and mitigat-ing risks of discrimination claims.
California recently legalized recre-ational use of cannabis through Propo-sition 64. Importantly, Prop 64 does not supersede the right of employers to main-tain a drug-free workplace, including the right to discipline employees who test positive for the use of cannabis. The law expressly does not require an employer to permit or accommodate the use, con-sumption, possession, transfer, display, transportation, sale or growth of marijua-na in the workplace.
The Americans with Disabilities Act (ADA) and certain state laws, includ-ing the California Fair Employment and Housing Act (FEHA), require employers to provide reasonable accommodations to disabled employees and applicants. This responsibility is broader under the FEHA than under the ADA.
Whereas the ADA limits its coverage to physical or mental conditions that “sub-stantially limit” a major life activity, the FEHA requires only that the disability “limit” such activity.
Selecting an appropriate accommoda-tion is an individualized process depend-ing on the limitations of the applicant or employee’s disability. The purpose is
to assist the employee with performing the “essential” functions of the job. For example, FEHA regulations provide a non-exhaustive list of possible accommo-dations, including: job restructuring; of-fering part-time or modified work sched-ules; reassignment to a vacant position; altering when and/or how an essential function is performed; modifying super-visory methods; permitting an employee to work from home; and providing paid or unpaid leave for treatment and recovery.
A finite leave is also a potential ac-commodation, in the absence of an undue hardship, as long as the leave will assist the employee in returning to work. An employer cannot require employees to accept a leave if they’re able to work with an accommodation. The employer should hold the job open during the finite leave.
Once the employer is on notice that an employee has a potential disability that may impact the performance of essential job functions, it has a duty to engage in the “interactive process” with the disabled em-ployee. This process is a dialogue between the parties to discuss potential reasonable accommodations for the employee. In general, the employee should request an accommodation to trigger this process. However, the employee does not have to use the magic words, “I request a reason-able accommodation.” Rather, once an employer becomes aware of the employ-
ee’s potential disability or its impact on the employee’s ability to perform the main job duties, the employee may establish the requisite “request” for an accommodation. This could trigger important duties of the employer. The employer should carefully document the process and the accommo-dations proposed and provided.
An employer’s knowledge of an em-ployee’s medical cannabis use may mean the employee has a protected disability for which he or she needs a reasonable accommodation.
Knowledge of the potential disability is also a factor that the employer should con-sider in deciding whether to impose sub-sequent discipline on the employee. To do so may suggest disability discrimination, which the employer must avoid, of course.
Therefore it is critical that employers be familiar with its obligations to engage in the interactive process and consider how and whether to initiate it. This will depend on the particular circumstances, including whether the employer was otherwise aware that the employee is disabled, whether the employee has requested a reasonable ac-commodation or whether the employer was aware that a physical or mental condi-tion impacted job performance.
These rules apply even though employ-ers in California, and in other states, may still terminate or take adverse action against an employee who tests positive for canna-bis or works while impaired. It is also im-portant that an employer not take adverse action against an employee solely because the employee has a medicinal use card.
If employers are confronted with these situations, including an employee’s dis-closure of a medicinal use card, they should consult their human resources pro-fessional or employment counsel.
Jason Geller is the managing partner of Fisher Phillips’ San Francisco office. He represents employers in all facets of em-ployment law matters. He has extensive experience defending employers in federal and state courts, as well as in investiga-tions by the Equal Employment Opportuni-ty Commission, U.S. Department of Labor and the National Labor Relations Board. In addition to defending his clients in liti-gation, he frequently counsels employers to assist them in avoiding litigation. He can be reached at [email protected].
LEGAL PAGES
Legalization increases focus on medicinal users’ rightsEmployers must follow applicable discrimination laws By Jason A. Geller
PROP 64 DOES NOT SUPERSEDE
THE RIGHT OF EMPLOYERS TO MAINTAIN A DRUG-FREE WORKPLACE
“
Superior Cannabis
ConsultantsPayQwick
Silkie Farms OVER 800 LBS OF MATERIAL AVAILABLE
FOR RETAILERS AND PROCESSORS.
HIGH QUALITY TESTED CBD AND THC STRAINS.
FLOWER, ROSIN, BHO, AND VAPE CARTRIDGES AVAILABLE.
RETAILER INQUIRES WELCOME.
PHONE: 509-861-0801
EMAIL ADDRESS: [email protected]
High Quality Flower and Trim For Sale!
148 | Marijuana Venture // June 2017
Do you or your business owe
taxes you can’t pay? Have you received a collection notice from the IRS or had your bank accounts gar-nished? First, file all
your tax returns. People often delay fil-ing tax returns if it will result in a tax bill they are unable to pay, which increases the penalties and interest. Plus, all returns must be filed before utilizing the IRS’ resolution options.
If taxes are not paid right away, the IRS will begin collections by mailing a series of four to six collection notices, each one more threatening than the last. The final notice comes with a 30-day appeal right. Except in special circumstances, the IRS cannot begin forced collection efforts un-til that appeal right expires or while the appeal is pending.
If no appeal is filed, the taxpayer be-comes a target for liens, levies and gar-nishments. I almost always recommend filing an appeal because it provides pro-tection against collection efforts, gives the taxpayer more time to develop a plan and is often the most efficient way to re-solve an outstanding tax liability. It is im-portant to bring in a tax professional as soon as possible.
Once collection starts, assuming you cannot pay the tax in full, there are only five resolution options:
1. Do Nothing
Very few people can get away with doing absolutely nothing. These indi-viduals are otherwise collection-proof or the business has already shut its doors with no remaining assets. Tax-payers are collection-proof if they have no equity in assets and no income. For taxpayers with regular income or equi-ty in assets, doing nothing comes with grave consequences.
2. Uncollectable Status The IRS sometimes agrees to place
certain taxpayers in uncollectable status, which means that the IRS will put a col-lection hold on the taxpayer’s account. To qualify, taxpayers must have little to no equity in assets and earn income at or below the amount required to meet their ordinary and necessary living expenses (as determined by the IRS). Uncollect-able status can be achieved by filling out financial statements and providing sup-port documentation for the lack of assets and income. This status can last up to two years, at which time the IRS will require the taxpayer to submit new financials.
3. Installment Agreement An installment agreement to pay the tax
over time is the most common resolution option. It is a formal agreement between the taxpayer and IRS to make regular, monthly payments over time. While the IRS has 10 years to collect a tax, it typi-cally wants the tax debt paid in less than six years. The taxpayer must make timely payments and stay in current tax compli-ance during the entire installment agree-ment. Current tax compliance means filing all tax returns and paying the tax on time, including making all estimated deposits.
The IRS will evaluate the taxpayer’s ability to pay and make a demand for what it believes the taxpayer can afford to pay. There are certain expenses that the IRS must allow and there are others that are negotiable. A tax attorney can often negotiate a lower payment.
4. Offers in Compromise/Settlement
You’ve probably heard the phrase “set-tle your tax debt for pennies on the dol-lar” on radio and TV commercials. This settlement process is called an “offer in compromise.” It can be a good resolution option, but only under certain conditions.
If the IRS would never be able to col-
lect enough to pay the tax in full, it may agree to settle for less than the total owed. The IRS analyzes the taxpayer’s income, reasonable expenses and equity in assets to determine what it will accept. The offer process can take up to 30 months. How-ever, there is a collection hold while the offer is under review.
The valuation of assets and determi-nation of disposable income can often be difficult but it is crucial to calculating the lowest acceptable offer. A tax attorney can prepare the offer in compromise, as-sert valuations and negotiate on your be-half. If an offer is accepted, the taxpayer has between five months and two years to pay in full. Importantly, the taxpayer must remain in tax compliance for five years after the offer has been accepted (plus other conditions).
5. Bankruptcy Individual income tax liabilities may
be dischargeable in bankruptcy. Excep-tions to discharge include: taxes from a fraudulent return; situations where no return was filed at all; if the IRS filed a substituted return for you; and taxes re-lating to attempts to evade or defeat a tax. Generally, a taxpayer can discharge a tax when more than three years have lapsed since the due date of a timely filed tax return or two years from a late filed return, whichever is later. There are ad-ditional circumstances that may impact this timeframe. It is essential to consult with a tax or bankruptcy attorney if you have tax debts you may wish to dis-charge in bankruptcy.
Withholding tax liabilities such as sales tax and employment taxes are non-dis-chargeable. Certain excise taxes are also non-dischargeable in bankruptcy.
Jessica McConnell is of counsel in the Portland office of Williams Kastner Greene & Markley (www.williamskastner.com). Her practice concentrates on federal, state and local tax controversies, including tax audits, offers in compromise and tax col-lection matters. She excels at complex au-dits, offers in compromise, employment tax liabilities and protecting her clients against unwanted and unexpected collection ef-forts. Williams Kastner publications should not be construed as legal advice.
LEGAL PAGES
Owe taxes you can’t pay? You have several options Delayed filing of returns only increases penaltiesBy Jessica L. McConnell
Chicago Culinary FX
Evans MacTavish Pacific
Sportswear
150 | Marijuana Venture // June 2017
The cannabis in-dustry faces a di-
versity conundrum. What stands to be
a $50 billion industry by 2025 is, nonethe-less, still overshad-owed by disturbing
racial disparities. This problem is driving industry regulators and business partici-pants, with increasing intensity and fre-quency, to encourage diversity through-out the cannabis space.
The racial disparities in the cannabis industry are reflected in estimates by the Drug Policy Alliance, including that only 1-3% of existing cannabis businesses are owned by people of color. The embar-rassing lack of minority inclusion may be attributable to regulation itself, largely shaped by the failed War on Drugs. Those with a criminal record of drug felonies are practically banned from financing, owning or working for cannabis busi-nesses (which touch the plant) in virtual-ly every state that has legalized medical or adult-use cannabis. And some states, including New York and Pennsylvania, have extremely high financial barriers to entry, making it nearly impossible for so-cio-economically disadvantaged groups to participate.
There can be no question that the War on Drugs disproportionately affected mi-nority populations. The American Civ-il Liberties Union reports that in 2010, black people were over four times more likely to be arrested for marijuana posses-sion than whites in more than one-third of the United States. On a local level, for ex-ample, 92% of cannabis arrests in Balti-more were of black people, as were more than 80% of cannabis arrests in Fulton, Georgia and Philadelphia, despite con-sumption rates between people of color and whites being virtually identical.
To counteract this problem, state reg-ulators are seeking to increase diversity in the licensing/permitting selection pro-
cess. In Pennsylvania, regulations require marijuana business license applicants to submit a “community impact statement” and a detailed “diversity plan,” contain-ing a breakdown of the number of em-ployees who are men, women, veterans, service-disabled veterans and members of each racial minority. Collectively, these portions of the application are worth more than 20% of an applicant’s total score.
Oakland, California regulators ad-dressed diversity by mandating that 50% of all dispensary permits be awarded to applicants previously incarcerated for cannabis-related offenses and those who lived (in the last two years) in one of Oak-land’s six precincts most adversely affect-ed by the War on Drugs.
In Puerto Rico, the commonwealth pro-posed — and it was agreed — that Natural Ventures, one of the island’s first medical cannabis licensees, hire single mothers first, military veterans second and then open hiring to the rest of the population.
And in Maryland, the state’s apparent failure to mandate diversity in the licens-ing process resulted in litigation and legis-lative challenges. One-third of Maryland’s population is black, yet none of the 15 applicants selected to grow medical can-nabis are owned by black people. Legis-lation was introduced (but failed to pass in the most recent session) that would have given five new licenses to minority-owned businesses. While successful passage of that bill would have been a win for diver-sity, opponents insist that it would have spurred litigation from existing licensees who stood to lose market share, under-mining representations previously made to their investors. Two applicants who scored in the top 15, but were bumped in favor of less-qualified applicants in the name of geographic diversity, have demanded a regulatory fix and sued the state.
Industry associations are also respond-ing to correct racial disparities in the cannabis industry. THC Staffing, a re-cruitment firm emphasizing diversity, is
seeking to influence regulators to remove non-violent drug crimes as a disqualify-ing factor to ownership. Multiple trade or-ganizations, including the Cannabis Cul-tural Association, Women Abuv Ground, Women Grow and the Minority Cannabis Business Association, have made it their mission to connect and empower diverse participants in the cannabis space.
While business owners are encour-aged to adopt diversity goals and prohibit discrimination at the workplace, courts disagree on the best means by which to achieve this and employers must use cau-tion in considering race in all employ-ment-related decisions. Title VII of the Civil Rights Act and many state and local laws prohibit discrimination in employ-ment based on race and other “protected” characteristics (such as gender, religion and disabilities). Discrimination lawsuits often arise from an employer’s effort to avoid discrimination.
To help employers navigate permis-sible diversity initiatives, various gov-ernment agencies, including the Equal Employment Opportunity Commission, have recommended best practices, in-cluding: establishing management-level diversity committees to oversee and sup-port diversity efforts; striving for diverse slates of qualified applicants; fostering and encouraging a mentoring culture and opportunities for internal and external networking; forcing transparency in em-ployment decisions; and requiring diver-sity and sensitivity education and training for owners and employees.
The data is clear: businesses that man-age successful diversity and inclusion pro-grams enjoy increased profits over those that do not, and diversity is proven to drive innovation. In cannabis, however, a com-mitment to diversity goes beyond gaining a competitive edge; it can provide a healthy pathway to repair relationships with scores of victims of the failed War on Drugs.
Lauren Rudick represents investors and startup organizations in all aspects of business and intellectual property law, specializing in cannabis, media and tech-nology. Her law firm, Hiller, PC (www.hillerpc.com), is a white-shoe boutique firm with a track record for success and handling sophisticated legal matters that include business and corporate law.
LEGAL PAGES
The push for diversity in a mostly white industryThe War on Drugs fuels the industry’s racial disparitiesBy Lauren Rudick
Seminar Group
Nine Point Strategies Netafim
Weed TraQR
Hort Services
Vanity Number
VIP
www.marijuanaventure.com | 153
P.O.V. P.O.V. is a monthly section in Marijuana Venture showing images of operational cannabis businesses throughout the U.S. and Canada. To submit photos for consideration in future issues email: [email protected].
www.marijuanaventure.com | 153
Growers, retailers and cannabis enthusiasts alike braved a rainy April day for the sixth annual Dope Cup in Seattle. Awards were given in multiple topical, edible and flower categories and the event featured performances from a wide variety of artists.
P.O.V.
The marijuana economy has not just been a boon for those in the business, but for other local industries as well, such as billboard advertising, where shops are using the giant signs to promote their company. In another sign of the times, various marijuana-related messages can be seen at ski resorts in states that have legalized cannabis.
154 | Marijuana Venture // June 2017
www.marijuanaventure.com | 155www.marijuanaventure.com | 155
P.O.V.
Above: Marijuana Venture Publisher Greg James recently hosted a fundraiser for King County (Washington) Executive Dow Constantine, center in black jacket, that included dozens of cannabis industry professionals.
156 | Marijuana Venture // June 2017
JUNE 2016 $6.99
M A R I J U A N AVENTURETHE JOURNAL OF PROFESSIONAL CANNABIS GROWERS AND RETAILERS
BIG APPLE IN BIG TROUBLE • GREENHOUSE DESIGN • NOW HIRING
LIGHT DEP TECHNIQUES / FEDS CONSIDER RESCHEDULING / LAS VEGAS MEGA-GROW
RISING
Marathon runner Katina Morales leads a pack of exciting young entrepreneurs
STARS
— 40 UNDER 40 —
OF CANNABISPlus:TECH SUPERSTARS
SAVVY GROWERSRETAIL TYCOONS
MILITARY HEROESBRAND-BUILDERS
and more!JUNE 2016 $6.99
M A R I J U A N AVENTURETHE JOURNAL OF PROFESSIONAL CANNABIS GROWERS AND RETAILERS
BIG APPLE IN BIG TROUBLE • GREENHOUSE DESIGN • NOW HIRING
LIGHT DEP TECHNIQUES / FEDS CONSIDER RESCHEDULING / LAS VEGAS MEGA-GROW
RISING
Marathon runner Katina Morales leads a pack of exciting young entrepreneurs
STARS
— 40 UNDER 40 —
OF CANNABISPlus:
TECH SUPERSTARSSAVVY GROWERSRETAIL TYCOONS
MILITARY HEROESBRAND-BUILDERS
and more!
IIII 11:11 AM 100%
IIII 11:11 AM 100%
Marijuana Venture
$39.99SunGrower & Greenhouse
$29.99
Three easy ways to subscribe:Visit www.MarijuanaVenture.com | Call (425) 656-3621 | Mail a check to: PO Box 1419, Renton, WA, 98057
SUBSCRIBE TODAY!The most trusted sources in the legal cannabis industry
Gleam Law
Shirreff Insurance
Great Northern Dunnage
Available: MA Facility
ATTENTION!!– AVAILABLE –
FITCHBURG MASSACHUSETTSAPPROVED
MEDICAL MARIJUANAGROW FACILITY
100,000 SQFTSUB-DIVIDABLEREADY TO GO
ADDITIONAL INFORMATIONCALL ROY @ 978-697-3019
www.marijuanaventure.com | 159
MARIJUANA VENTURE ADVERTISER DIRECTORY
Business IntelligenceCannabis Benchmarks........................36Lemonhaze ......................................142
Consulting/educationBridge West .......................................33Canna Ventures .................................53Clean Green Certified ......................141Superior Cannabis Consultants ........147
ContractorsJohnston Engineering ......................145
DistributorsVital Garden Supply .........................141
Employment ServicesAlliance 2020 ...................................119
EventsCannabis Science Conference.............63CWCB Expo ........................................48Interchange Summer ‘17 ....................25MJ Business Conference ....................12NCIA’s Cannabis Business Summit ....143The Seminar Group ..........................151
Extraction EquipmentAcross International ........................162Eden Labs ..........................................79ExtractionTek .....................................91Precision Extraction ...........................59
Financial ServicesTax Defense Accounting .....................22
GreenhousesEvolve Greenhouse Systems ..............45Growers Supply .................................29Hort Services ...................................152Next G3N .........................................161Nexus ................................................47
Growing equipmentAccelerated Growth Solutions ............ 9Advancing Alternatives ....................119AiroClean420 .....................................85Air-Pot ...............................................69BOLD Light Deprivation .....................11CO2 Meter .......................................113HydroLogic ........................................43Japco Post .......................................115Left Coast Wholesale .......................105NCFI Polyurethane .............................77Puradigm Solutions ...........................61
Rambridge .........................................97Savant Tech .....................................103Surna ...............................................111
InsuranceNine Point Strategies .......................151Shirreff Insurance ............................158
Investment OpportunitiesAvailable: MA Facility ......................158For Sale/Lease: CA Greenhouse .........62For Sale: T-3 Grow Operation .............49Seattle Commercial Development ....145
LegalDK Law ............................................145Gleam Law ......................................158Gordon Thomas Honeywell Law ......129GSB Law ..........................................124
LightingBios Lighting ......................................75Forever Green Indoors .......................89Nanolux Technology ........................... 1NCWGS ..............................................31
Misc.Energy Trust ....................................121Method Seven .................................113Pacific Sportswear ...........................149Suite 420 Marketing ........................117Vanity Number VIP ..........................152
PackagingAssurpack ........................................121Bio Hazard Inc. ..................................23Cannaline ..........................................38Evans MacTavish ..............................149Futurola ............................................. 4Kush Bottles ......................................71Maverick Label ..................................26VC999 ................................................87WeighPack .........................................81
Producer/processorsChicago Culinary FX .........................149Clarity Farms .....................................27Fairwinds .........................................100Four Twenty ......................................35Kushy Punch ....................................109Silkie Farms .....................................147
Retail services/equipmentBud Bar Displays ..............................129PayQwick ........................................147
Retail by Champion .........................107
SecuritySalient Systems .................................17
SeedsCrop King ...........................................20Seeds Here Now ................................. 3
Soil/nutrients/pesticidesBio Nova ............................................15Destiny Grow Systems ........................ 7Flying Skull ......................................141Lambert Peat Moss ............................72Miller Soils ........................................37Mills Nutrients ..................................41Netafim ...........................................151North Country Distributors ..............134Plant Success .....................................92Premier Tech .....................................32Rx Green Solutions ............................19Safer ................................................135West Coast Horticulture ..................139
Testing LabsConfidence Analytics .........................83Medicine Creek .................................. 2
TrackingWeed TraQR ....................................152
TransportationCampbell Nelson .............................115Terpene Transit ................................117
TrimmingSpeedee Trim ..................................124Trimpro .............................................95Twister Trimmer ................................. 6
www.marijuanaventure.com | 159
Back issues of Marijuana Venture are available. Send an email to [email protected] or check out
www.marijuanaventure.com for details.
JANUARY 2016 $6.99
M A R I J U A N AVENTURE
WWW.MARIJUANAVENTURE.COM
VOLUME 3 / ISSUE 1
IN NAME ONLY
Inside the nation’s most high-tech aquaponic production facility
2015’s
SPACE-AGEGROW
TOP STORIES
DIRT WEEDLow-tech grow, high-potency bud
A look back at the past year of legal cannabis
THE JOURNAL OF PROFESSIONAL CANNABIS GROWERS AND RETAILERS
THE JOURNAL OF PROFESSIONAL CANNABIS GROWERS AND RETAILERS
FEBRUARY 2016 $6.99
M A R I J U A N A
VENTUREWWW.MARIJUANAVENTURE.COM
VOLUME 3 / ISSUE 2
HARVESTHIREfor
GARDENHOLISTIC
Black Dog Acres thrives
with an approach to satisfy
the mind, body and soul
Trimming specialists eliminate
the need for in-house staff
PLUS: CALIFORNIA’S OVERHAUL • HIGH-TECH GREENHOUSE • CANNACLOUD
160 | Marijuana Venture // June 2017
PHOTO OF THE MONTH
Submit entries for Marijuana Venture’s photo of the month to [email protected]. We’re looking for the most interesting, unusual and just plain beautiful photos from any sector of the legal cannabis industry. You never know — your submission may end up on the cover!
‘I Grew Hemp’Prior to becoming executive director of the Hemp Industries Association, Colleen Keahey received a special message in
the form of a dollar bill. Keahey saved the bill, pictured above, which inspired her to pursue opportunities in hemp. Photo courtesy the Hemp Industries Association.
