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CBD Blending, Transportation & Supply – How Sustainable Manufacturing Can Improve Your Cost-Efficiency at all Stages

May 19, 2021 by CBD OIL

Environmentally conscious manufacturing has never been more important; for the survival of both the planet and your business. The internet makes CBD product comparisons quick and efficient, so consumers can interrogate every aspect of your product and processes before deciding to make a purchase. Sustainability credentials are now a primary decision making factor for your customers.

Water jacketed vessels are a cost-effective way of achieving more consistent blends than is possible manually

For business of all sizes, improving resource use and efficiency is a great place to start. This will reduce waste and improve your environmental impact, and has the added benefit of improving your return on investment!

I always recommend investing in stainless steel equipment for manufacturing and distributing CBD oils. Stainless steel is one of the most environmentally efficient raw materials, because of its durability and ability to be recycled. Vessels last an extremely long time, and even once their service life is over, they should never enter the waste stream. Many of our US customers transport their CBD products around the world in stainless steel vessels, which can then either be shipped back for re-use, or re-used at the recipient site.

In terms of finding your ideal equipment supplier, those who have won awards for their environmental initiatives are the cream of the crop; they can be a real asset to your business and will often collaborate on sustainability-themed social content, which is really valuable to get in front of your customers.

Once you’ve investigated the credentials of suitable suppliers, how do you make sure their blending equipment will perfectly meet your needs?

Here are my recommended four points for consideration:

  1. Adding Toggle Clamps keeps your products airtight and reduces the chance of contamination in transit

    Vessel Capacity: Vessel capacity must be considered in two ways; maximum and minimum working capacity. Standard vessels have their capacity listed as ‘brim full’ – suppliers tell you the total overall volume of space in the vessel. However, maximum capacity must allow for 10-20% free space below ‘brim full’, so that if product is being mixed and stirred, there is no overspill. For example; to blend 75L batches of CBD oil, it’s generally recommended to purchase a 100L mixing vessel.

  2. Vessel Bottom Shape: Standard vessels have flat bottoms, which makes it difficult to drain them to completely empty. An experienced supplier such as Pharma Hygiene Products has the capability to modify standard vessels, to include a sloped bottom at 3 degrees, which reduces leftover product pooling when draining your oils. Vessels can also be custom-made with a cone or dish shaped bottom, whereby a valve can be positioned in the centre of the base to allow full draining, to reduce waste and increase profitability.
  3. Stainless Steel Grade: Stainless steel blending vessels for CBD oils are generally offered in 304 or 316L pharmaceutical-grade material. A simple description of the difference is that 316L grade contains an extra 2% molybdenum, for additional corrosion-resistance. Increased regional and interna­tional legislation concerning CBD products has come hand-in-hand with tighter interrogation of hygiene practices. Contaminant-free materials such as stainless steel are ideal to ensure international pharma-quality compliance for your business’ blending processes. Critically, at Pharma Hygiene Products a comprehensive range of compliance certification is available to confirm the grade of material, to prove surface smoothness, and to guarantee that no cross-contamination from BSE or CJD diseases occurs.

    Hygienic stainless steel CBD storage & transportation vessels

  4. Lastly, don’t forget to let your supplier know in advance if you have any special requirements for your product or vessel. Some common examples include:
  • Flammable product components – Requiring ATEX certified blending equipment.
  • Temperature control – Adding a water jacket to your vessel is a simple solution for heating, cooling or maintaining the temperature of your product as it blends.
  • Toggles and seals – For airtight, contaminant-free transportation.
  • Viewing holes – For easy visual inspection whilst blending.

Your equipment supplier can be a real financial and reputational asset, so be sure to do your homework before making an investment!

Filed Under: Cannabis News

Colorado Senate Passes Bill to Double the Cannabis Possession Limit and Expand Expungement

May 19, 2021 by CBD OIL

At first, Alabama Gov. Kay Ivey did not commit to signing a medical cannabis bill when the state legislature passed the legislation by a roughly two-to-one ratio in both chambers May 6.

In a statement from Ivey’s office that night, Press Secretary Gina Maiola said the governor looked forward to thoroughly reviewing Senate Bill 46 and providing the diligence it deserves but did not say whether she would sign it.

The Republican executive provided her ink to the bill Monday, making Alabama unofficially the 36th medical cannabis state, joining the likes of nearby Arkansas, Florida and Louisiana, according to reform organization Marijuana Policy Project (MPP). Mississippi dropped from the ranks of medical cannabis states after its Supreme Court ruled May 14 that Initiative 65 was unconstitutional.

When the Alabama Legislature passed its medical cannabis bill earlier this month, MPP Director of State Policies Karen O’Keefe said the legislation will allow seriously ill patients to finally get the relief they deserve and urged Ivey to sign it into law.

Ivey did just that Monday afternoon.

“I would like to thank Sen. Tim Melson and Rep. Mike Ball for their hard work over the last few years and their commitment to continue to work on this to ensure we have a productive, safe and responsible operation in Alabama,” Ivey said in a statement.

Medical cannabis legislation was first introduced in the Alabama House of Representatives two decades ago. Eight years ago, it was the laughingstock of the lower chamber. Now, a medical cannabis bill claimed supermajority support and the governor’s signature.

After a nearly 10-hour filibuster May 4, House lawmakers reconvened May 6 and considered several floor amendments before passing the Senate-originated bill, 68-34, which will allow registered patients diagnosed with qualifying conditions to access cannabis. The legislation returned to the Senate for final consideration later on May 6, when the upper chamber voted, 20-9, to concur with the House changes.

The Alabama Senate has passed medical cannabis bills three years in a row, but this is the first time the House has passed legislation. Last year, pandemic-related circumstances derailed the lower chamber’s possibility of a vote.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022. Republican Rep. Mike Ball sponsored the bill in the House.

“When we get in politics, we get down here and we focus our attention on what it is we’re after; we tend to tunnel up and we don’t see the other side very well, and there’s so many aspects of this that has been so difficult,” Ball said on the House floor May 6, after bearing the brunt of the filibuster, from opponents on his own side of the aisle, two days earlier.

“And, quite frankly, this has caused me to lose my appetite for politics in this whole process,” he said. “And the people who don’t see it, they’re not bad. They’re just not looking at it.”

Eight years earlier, a Democratic bill for medical cannabis that was introduced by former Rep. Patricia Todd won the 2013 “Shroud Award,” given to the “deadest” bill in the House that session, according to The Associated Press.

“They laughed at me,” Todd said, according to the AP. “I’m glad to see it passed. It’s long overdue.”

Final passage didn’t come without nearly three more hours of floor debate and amendment votes on May 6. Democratic Rep. Laura Hall, 78, said she first introduced medical cannabis legislation to the House two decades ago.

“Twenty years ago, I brought [legislation to the House] in honor of my son, who had just died the year before I was elected, of AIDS,” Hall said. “And I did that with the idea thinking if I could have had access [to medical cannabis]. The only drug that was available to him was a drug called AZT. He could not take that. When he took that medicine, we would have to get up every four hours—that was the regimen to giving him the medication. And he had finally said, ‘Enough is enough. I may get my T cells back and I can function, but I can’t do it on this medication.’”

Azidothymidine (AZT) is an antiretroviral medication used to prevent and treat HIV/AIDS.

Later during the House’s session on May 6, the chamber voted, 87-3, in favor renaming the legislation “Darren Wesley ‘Ato’ Hall Compassion Act,” as a tribute to Rep. Hall’s son.

While HIV/AIDS-related nausea or weight loss is one of more than a dozen qualifying conditions included in Alabama’s medical cannabis bill, two other conditions in the Senate’s original version of the bill were removed during an emending process in the House Health Committee—fibromyalgia and menopause or premenstrual syndrome (PMS).

That specific amendment was grouped with several other committee amendments as one package, which passed as a single vote May 6 on the House floor, 72-26.

“This amendment is so disappointing to me as a woman, that all of the issues that specifically impact women were taken out in the Health Committee, which is why I’m going to vote against this amendment,” Democratic Rep. Merika Coleman said. “I support [Rep. Ball] and support the concept, but this body sometimes is so disappointing.”

When enacted, S.B. 46 will create a 14-member Alabama Medical Cannabis Commission, which will determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers can provide patients with each of the qualifying conditions—also including cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome, post-traumatic stress disorder and others.

The new commission will also be responsible for issuing up to five licenses for vertically integrated operators, up to 12 cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses awarded the dispensary licenses can operate up to three sites in different counties, while vertically integrated operators can have up to five dispensing sites in different counties, according to the bill’s text.

Other housekeeping items the commission will be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

Some amendments that were rejected on the House floor were adding a THC dosing cap of 10 milligrams, enacting a zero-tolerance policy for diving under the influence, and revisiting the Alabama Medical Cannabis Commission’s authority to provide caregiver’s the right to distribute medical cannabis should the federal government reschedule cannabis, so that patients could instead receive their medical cannabis from pharmacies should federal prohibition end. 

“My concern in this issue, is if we create this large bureaucracy that we’re having, this large board that’s going to be there, that this will never go away,” Republican Rep. Matt Simpson said about the commission’s authoritative arm. “And you could have 49 other states that are going to be able to receive medical marijuana through a licensed pharmacist … but the state of Alabama would be required to go through these dispensaries based on this legislation you have.”

Meanwhile, the bill will prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 will limit medical cannabis use to forms such as pills, gelatin cubes, oils, creams and topical patches. Patients can possess up to 70 daily doses of cannabis.

In addition, minors cannot use—or be recommended—more than 3% THC. And employers can still drug test and prohibit employees from using cannabis.

Regarding social equity, depending on the business type, either at least one-fourth or one-fifth of all licenses are to be awarded to businesses with at least 51% ownership by individuals of African American, Native American, Asian or Hispanic descent, according to MPP. 

Filed Under: Cannabis News

The Parent Company Plans to Invest $50 Million in Glass House Group

May 18, 2021 by CBD OIL

At first, Alabama Gov. Kay Ivey did not commit to signing a medical cannabis bill when the state legislature passed the legislation by a roughly two-to-one ratio in both chambers May 6.

In a statement from Ivey’s office that night, Press Secretary Gina Maiola said the governor looked forward to thoroughly reviewing Senate Bill 46 and providing the diligence it deserves but did not say whether she would sign it.

The Republican executive provided her ink to the bill Monday, making Alabama unofficially the 36th medical cannabis state, joining the likes of nearby Arkansas, Florida and Louisiana, according to reform organization Marijuana Policy Project (MPP). Mississippi dropped from the ranks of medical cannabis states after its Supreme Court ruled May 14 that Initiative 65 was unconstitutional.

When the Alabama Legislature passed its medical cannabis bill earlier this month, MPP Director of State Policies Karen O’Keefe said the legislation will allow seriously ill patients to finally get the relief they deserve and urged Ivey to sign it into law.

Ivey did just that Monday afternoon.

“I would like to thank Sen. Tim Melson and Rep. Mike Ball for their hard work over the last few years and their commitment to continue to work on this to ensure we have a productive, safe and responsible operation in Alabama,” Ivey said in a statement.

Medical cannabis legislation was first introduced in the Alabama House of Representatives two decades ago. Eight years ago, it was the laughingstock of the lower chamber. Now, a medical cannabis bill claimed supermajority support and the governor’s signature.

After a nearly 10-hour filibuster May 4, House lawmakers reconvened May 6 and considered several floor amendments before passing the Senate-originated bill, 68-34, which will allow registered patients diagnosed with qualifying conditions to access cannabis. The legislation returned to the Senate for final consideration later on May 6, when the upper chamber voted, 20-9, to concur with the House changes.

The Alabama Senate has passed medical cannabis bills three years in a row, but this is the first time the House has passed legislation. Last year, pandemic-related circumstances derailed the lower chamber’s possibility of a vote.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022. Republican Rep. Mike Ball sponsored the bill in the House.

“When we get in politics, we get down here and we focus our attention on what it is we’re after; we tend to tunnel up and we don’t see the other side very well, and there’s so many aspects of this that has been so difficult,” Ball said on the House floor May 6, after bearing the brunt of the filibuster, from opponents on his own side of the aisle, two days earlier.

“And, quite frankly, this has caused me to lose my appetite for politics in this whole process,” he said. “And the people who don’t see it, they’re not bad. They’re just not looking at it.”

Eight years earlier, a Democratic bill for medical cannabis that was introduced by former Rep. Patricia Todd won the 2013 “Shroud Award,” given to the “deadest” bill in the House that session, according to The Associated Press.

“They laughed at me,” Todd said, according to the AP. “I’m glad to see it passed. It’s long overdue.”

Final passage didn’t come without nearly three more hours of floor debate and amendment votes on May 6. Democratic Rep. Laura Hall, 78, said she first introduced medical cannabis legislation to the House two decades ago.

“Twenty years ago, I brought [legislation to the House] in honor of my son, who had just died the year before I was elected, of AIDS,” Hall said. “And I did that with the idea thinking if I could have had access [to medical cannabis]. The only drug that was available to him was a drug called AZT. He could not take that. When he took that medicine, we would have to get up every four hours—that was the regimen to giving him the medication. And he had finally said, ‘Enough is enough. I may get my T cells back and I can function, but I can’t do it on this medication.’”

Azidothymidine (AZT) is an antiretroviral medication used to prevent and treat HIV/AIDS.

Later during the House’s session on May 6, the chamber voted, 87-3, in favor renaming the legislation “Darren Wesley ‘Ato’ Hall Compassion Act,” as a tribute to Rep. Hall’s son.

While HIV/AIDS-related nausea or weight loss is one of more than a dozen qualifying conditions included in Alabama’s medical cannabis bill, two other conditions in the Senate’s original version of the bill were removed during an emending process in the House Health Committee—fibromyalgia and menopause or premenstrual syndrome (PMS).

That specific amendment was grouped with several other committee amendments as one package, which passed as a single vote May 6 on the House floor, 72-26.

“This amendment is so disappointing to me as a woman, that all of the issues that specifically impact women were taken out in the Health Committee, which is why I’m going to vote against this amendment,” Democratic Rep. Merika Coleman said. “I support [Rep. Ball] and support the concept, but this body sometimes is so disappointing.”

When enacted, S.B. 46 will create a 14-member Alabama Medical Cannabis Commission, which will determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers can provide patients with each of the qualifying conditions—also including cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome, post-traumatic stress disorder and others.

The new commission will also be responsible for issuing up to five licenses for vertically integrated operators, up to 12 cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses awarded the dispensary licenses can operate up to three sites in different counties, while vertically integrated operators can have up to five dispensing sites in different counties, according to the bill’s text.

Other housekeeping items the commission will be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

Some amendments that were rejected on the House floor were adding a THC dosing cap of 10 milligrams, enacting a zero-tolerance policy for diving under the influence, and revisiting the Alabama Medical Cannabis Commission’s authority to provide caregiver’s the right to distribute medical cannabis should the federal government reschedule cannabis, so that patients could instead receive their medical cannabis from pharmacies should federal prohibition end. 

“My concern in this issue, is if we create this large bureaucracy that we’re having, this large board that’s going to be there, that this will never go away,” Republican Rep. Matt Simpson said about the commission’s authoritative arm. “And you could have 49 other states that are going to be able to receive medical marijuana through a licensed pharmacist … but the state of Alabama would be required to go through these dispensaries based on this legislation you have.”

Meanwhile, the bill will prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 will limit medical cannabis use to forms such as pills, gelatin cubes, oils, creams and topical patches. Patients can possess up to 70 daily doses of cannabis.

In addition, minors cannot use—or be recommended—more than 3% THC. And employers can still drug test and prohibit employees from using cannabis.

Regarding social equity, depending on the business type, either at least one-fourth or one-fifth of all licenses are to be awarded to businesses with at least 51% ownership by individuals of African American, Native American, Asian or Hispanic descent, according to MPP. 

Filed Under: Cannabis News

Medicinal Genomics Hires Sherman Hom as New Director of Regulatory Affairs

May 18, 2021 by CBD OIL

According to a press release published last week, Medicinal Genomics has hired Sherman Hom, Ph.D. to be their first director of regulatory affairs. Dr. Hom is coming from a position at New Jersey’s Division of Public Health and Environmental Laboratories (PHEL) where he was the leading research scientist for the state’s cannabis testing lab as well as coordinating their pre-analytical activities for SARS-CoV-2 testing.

Sherman Hom, Director of Regulatory Affairs at Medicinal Genomics

As project manager for the state’s cannabis testing lab, he was responsible for validating microbial testing in cannabis. He has also been a professor of microbiology, a lab manager, a senior research scientist, a writer and an inventor, according to the press release.

“My passion is regulatory affairs,” says Dr. Hom. “For the last 4 years, we’ve been building a facts and comparison database of required state medical cannabis testing. It’s formidable. Of course, the states will all have the same regulations eventually. In the meantime, it’s my job to help them craft the safest, most efficient and effective set of regulations possible. I’m here because I know Medicinal Genomics shares that passion.”

Filed Under: Cannabis News

Top Notch THC Blazes a Trail for Minority Ownership in Cannabis

May 18, 2021 by CBD OIL

At first, Alabama Gov. Kay Ivey did not commit to signing a medical cannabis bill when the state legislature passed the legislation by a roughly two-to-one ratio in both chambers May 6.

In a statement from Ivey’s office that night, Press Secretary Gina Maiola said the governor looked forward to thoroughly reviewing Senate Bill 46 and providing the diligence it deserves but did not say whether she would sign it.

The Republican executive provided her ink to the bill Monday, making Alabama unofficially the 36th medical cannabis state, joining the likes of nearby Arkansas, Florida and Louisiana, according to reform organization Marijuana Policy Project (MPP). Mississippi dropped from the ranks of medical cannabis states after its Supreme Court ruled May 14 that Initiative 65 was unconstitutional.

When the Alabama Legislature passed its medical cannabis bill earlier this month, MPP Director of State Policies Karen O’Keefe said the legislation will allow seriously ill patients to finally get the relief they deserve and urged Ivey to sign it into law.

Ivey did just that Monday afternoon.

“I would like to thank Sen. Tim Melson and Rep. Mike Ball for their hard work over the last few years and their commitment to continue to work on this to ensure we have a productive, safe and responsible operation in Alabama,” Ivey said in a statement.

Medical cannabis legislation was first introduced in the Alabama House of Representatives two decades ago. Eight years ago, it was the laughingstock of the lower chamber. Now, a medical cannabis bill claimed supermajority support and the governor’s signature.

After a nearly 10-hour filibuster May 4, House lawmakers reconvened May 6 and considered several floor amendments before passing the Senate-originated bill, 68-34, which will allow registered patients diagnosed with qualifying conditions to access cannabis. The legislation returned to the Senate for final consideration later on May 6, when the upper chamber voted, 20-9, to concur with the House changes.

The Alabama Senate has passed medical cannabis bills three years in a row, but this is the first time the House has passed legislation. Last year, pandemic-related circumstances derailed the lower chamber’s possibility of a vote.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022. Republican Rep. Mike Ball sponsored the bill in the House.

“When we get in politics, we get down here and we focus our attention on what it is we’re after; we tend to tunnel up and we don’t see the other side very well, and there’s so many aspects of this that has been so difficult,” Ball said on the House floor May 6, after bearing the brunt of the filibuster, from opponents on his own side of the aisle, two days earlier.

“And, quite frankly, this has caused me to lose my appetite for politics in this whole process,” he said. “And the people who don’t see it, they’re not bad. They’re just not looking at it.”

Eight years earlier, a Democratic bill for medical cannabis that was introduced by former Rep. Patricia Todd won the 2013 “Shroud Award,” given to the “deadest” bill in the House that session, according to The Associated Press.

“They laughed at me,” Todd said, according to the AP. “I’m glad to see it passed. It’s long overdue.”

Final passage didn’t come without nearly three more hours of floor debate and amendment votes on May 6. Democratic Rep. Laura Hall, 78, said she first introduced medical cannabis legislation to the House two decades ago.

“Twenty years ago, I brought [legislation to the House] in honor of my son, who had just died the year before I was elected, of AIDS,” Hall said. “And I did that with the idea thinking if I could have had access [to medical cannabis]. The only drug that was available to him was a drug called AZT. He could not take that. When he took that medicine, we would have to get up every four hours—that was the regimen to giving him the medication. And he had finally said, ‘Enough is enough. I may get my T cells back and I can function, but I can’t do it on this medication.’”

Azidothymidine (AZT) is an antiretroviral medication used to prevent and treat HIV/AIDS.

Later during the House’s session on May 6, the chamber voted, 87-3, in favor renaming the legislation “Darren Wesley ‘Ato’ Hall Compassion Act,” as a tribute to Rep. Hall’s son.

While HIV/AIDS-related nausea or weight loss is one of more than a dozen qualifying conditions included in Alabama’s medical cannabis bill, two other conditions in the Senate’s original version of the bill were removed during an emending process in the House Health Committee—fibromyalgia and menopause or premenstrual syndrome (PMS).

That specific amendment was grouped with several other committee amendments as one package, which passed as a single vote May 6 on the House floor, 72-26.

“This amendment is so disappointing to me as a woman, that all of the issues that specifically impact women were taken out in the Health Committee, which is why I’m going to vote against this amendment,” Democratic Rep. Merika Coleman said. “I support [Rep. Ball] and support the concept, but this body sometimes is so disappointing.”

When enacted, S.B. 46 will create a 14-member Alabama Medical Cannabis Commission, which will determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers can provide patients with each of the qualifying conditions—also including cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome, post-traumatic stress disorder and others.

The new commission will also be responsible for issuing up to five licenses for vertically integrated operators, up to 12 cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses awarded the dispensary licenses can operate up to three sites in different counties, while vertically integrated operators can have up to five dispensing sites in different counties, according to the bill’s text.

Other housekeeping items the commission will be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

Some amendments that were rejected on the House floor were adding a THC dosing cap of 10 milligrams, enacting a zero-tolerance policy for diving under the influence, and revisiting the Alabama Medical Cannabis Commission’s authority to provide caregiver’s the right to distribute medical cannabis should the federal government reschedule cannabis, so that patients could instead receive their medical cannabis from pharmacies should federal prohibition end. 

“My concern in this issue, is if we create this large bureaucracy that we’re having, this large board that’s going to be there, that this will never go away,” Republican Rep. Matt Simpson said about the commission’s authoritative arm. “And you could have 49 other states that are going to be able to receive medical marijuana through a licensed pharmacist … but the state of Alabama would be required to go through these dispensaries based on this legislation you have.”

Meanwhile, the bill will prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 will limit medical cannabis use to forms such as pills, gelatin cubes, oils, creams and topical patches. Patients can possess up to 70 daily doses of cannabis.

In addition, minors cannot use—or be recommended—more than 3% THC. And employers can still drug test and prohibit employees from using cannabis.

Regarding social equity, depending on the business type, either at least one-fourth or one-fifth of all licenses are to be awarded to businesses with at least 51% ownership by individuals of African American, Native American, Asian or Hispanic descent, according to MPP. 

Filed Under: Cannabis News

The New Delta 8 THC Market: A Q&A with the Founders of DeltaVera

May 17, 2021 by CBD OIL

Delta 8 THC (delta-8-tetrahydrocannabinol) sprung onto the scene late last year in a big way. While similar to the much more widely-known delta-9-tetrahydrocannabinol that produces a lot of the psychoactive effects associated with ingesting cannabis, delta 8 THC can be derived from hemp with less than 0.3% delta 9 THC. Given the legality of hemp-derived products following the 2018 Farm Bill, delta 8 THC can be produced in some states where delta 9 THC still remains illegal.

While delta 8 is considerably different in its psychoactive effects from its cousin, it does overlap in some ways. It can still produce some more manageable, less “heady” versions of delta 9’s effects like euphoria and relief found in the many medical applications of cannabis. DeltaVera, a company that launched less than six months ago, aims to share that more manageable THC experience with the masses.

The sharp rise of the delta 8 market means that DeltaVera is poised for growth. With distribution contracts inked, exciting partnerships in the works and a large surge in consumer demand, the founders of DeltaVera are at the ready to capitalize on this lesser-known molecule and bring it to the forefront of the nascent hemp industry. Starting out as a small family business, Sam and Craig Andrus launched DeltaVera with their third founder, PK Isacs.

We sat down with Sam Andrus and PK Isacs, two of the founders of DeltaVera, an award-winning brand, to ask them about their plans for expanding, how they became entrepreneurs and why they think delta 8 is the next big thing in cannabis.

Cannabis Industry Journal: Tell me about your company. How did you get started in the cannabis space?

Sam Andrus, cofounder of DeltaVera

Sam Andrus: I had an early start in the Delta 8 THC industry on the sales side. We knew we wanted to get into the market, but observed a number of aspects in the space that needed to be addressed: the most important being quality control, transparency and brand trust. With this as a backdrop we launched DeltaVera. Highly curated, approachable, transparent and value-oriented with a strong focus on reliability and trust. The DeltaVera family is made up of three operating managers and the sales team. We are three founders with complementary skill sets: Craig, who has domain expertise in finance, governance and startups, PK who has experience in business and marketing and my sales experience round out the management team.

We have yet to solicit outside capital and have funded ourselves internally as we create our brand and refine our product offering. That said, we are seeing numerous opportunities in strategic partnerships and expansion, which will require additional capital. And we are excited to start this expansion process.

CIJ: What makes the Delta 8 space so remarkable? Why are your SKUs primarily formulated with Delta 8?

Sam Andrus & PK Isacs: Delta 8 THC is an alternative/complement to delta 9 THC, CBD and other cannabinoids. Its status as non-federally scheduled and its less potent psychoactive effects make it appealing in its own right. Delta 8 THC can help with healthier sleep patterns and with pain management in a way that CBD can’t, without a strong “head high” that many of our customers like to avoid. Additionally, it’s shorter lived and doesn’t give you any negative residual effects, which makes it beneficial for people on tighter schedules. These factors make it easier for us to approach markets that are inaccessible to both delta 9 THC and CBD, such as older demographics. In a world where delta 9 is legal, there will still be a place for delta 8.

PK Isacs, cofounder of DeltaVera

While we are very proud of our suite of smokable products, we are currently focusing our efforts on edibles: our Delta Discs are our mainstay, though we are expanding our product line to include nano-emulsion products such as liquid shots and nano gummies. They strongly appeal to our target demographics; additionally, the edible market is growing very quickly in states that allow the sale of hemp-derived consumables.

CIJ: Continuing on the delta 8 front – right now it is considered a cannabinoid legal for interstate commerce, much like CBD, correct? Do you think that will change? 

Sam & PK: That is currently the case. Delta 8 THC is newer, and as such, it has even more ambiguity in regards to its legal future. But what’s most exciting (and our most challenging task right now), is informing consumers about the benefits of delta 8. We are one of a few companies solely focused on the consumption of delta 8, because of its similar benefits to delta 9 and CBD – our products are the perfect happy medium: a high with less psychoactive effects and all the health benefits of both, making it a desirable alternative to all consumers.

In addition, we are looking at some combinations of delta 8/CBDA, delta 8/CBN, delta 8/THCV and are very excited to begin test marketing these combinations. These proprietary blends of minor/major cannabinoids can cater to a niche target demographic as they can be curated to have very specific and unique effects when combined in the right quantities with the right delivery system. They will also be able to serve a larger customer base as these cannabinoids can all be derived from hemp.

CIJ: How do you think the FDA would regulate your product? Do you welcome federal oversight?

DeltaVera gummy products

Sam & PK: Regardless of whether or not we are regulated we are committed to a high level of transparency and trust. As noted in unregulated markets, like the supplement market, you don’t always know what you are getting in terms of purity and potency. We are changing that paradigm by adding unique QR codes to our sustainable containers which reference COAs [certificates of analyses] specific to the contents of the case. A lot of the space is naturally trying to avoid that kind of regulatory interference, but we are currently doing our best to self-regulate and make sure that our consumers are fully informed about what they’re receiving.

We will be the first to say that there aren’t as many laws governing delta 8 THC as there could be, and that’s why we’ve spent so much time and money on self-regulation. All of our products have very clear nutritional information in addition to test results down to one hundredth of one percent. As for what category these products should fall under: we have a wide range of products, and each one has its place under a different umbrella of regulation. We hope that the federal government will take advantage of the vast array of studies that have been conducted on delta 8 THC since it was first extracted in 1942 to step up to this product that is, in our experience, helping so many people.

CIJ: Tell me about how your business has grown so far.

Sam & PK: When we sell to a retailer, we try to provide them with as much material as possible on what delta 8 THC is and what differentiates DeltaVera’s products. Still, we’ve had some difficulty in places with limited delta 8 THC exposure. That being said, when someone tries our product, there is a high likelihood that they become a repeat customer (and they tell their friends). Given our newness to the market (Our brand launched in January 2021) initial indications are – we have a good rate of repeat orders, and we’ve heard the same from our brick-and-mortar partners.

The DeltaVera Delta Discs

Our distribution network has grown tremendously; we’ve taken a three-pronged approach to distribution: partnerships with like-minded companies in compatible spaces, an e-commerce market on our website, and a commission-based sales structure to reach brick-and-mortar establishments. To date, most of our distribution takes place in the latter two spaces, due to the added time and commitment involved in forming partnerships. As a company we are taking a more creative approach on how we present our product and alternative ways to consume it. We have some exciting collaborations in the works; follow us on social media to stay up to date with everything on the horizon. We are very enthusiastic about our partnerships however, with our first collaboration with WaxNax, a Denver-based company revolutionizing the cannabis dabbing experience, hitting the shelves this week.

CIJ: What is your marketing plan?

Sam & PK: We are working on building a social media presence. Natalie, who is leading the charge on social media, recommended we take an organic approach to build our base. We want to avoid falling into the “paid ad”, “spam” vibe as long as we can. We are currently focused on building a community through delta 8. Our mission is making DeltaVera a brand for all lifestyles, athletes, creatives, travelers or business professionals. We’re confident in our product, and have faith that it can speak for itself.

CIJ: How do you ensure quality in your products?

Sam & PK: Our products are of guaranteed quality with our licensed growers and manufacturers. We provide COAs, informing the retailer & consumer about each product, displaying full panel tests on cannabinoids and heavy metals. These preliminary and secondary lab tests ensure our product is below 0.3% delta 9 THC in all our products. Through third-party labs, we run full panel tests which pick up a variety of cannabinoids; for most of our products we focus on the level/purity of delta 8. Our products are screened for both contaminants and heavy metals.

All this information is housed conveniently on our website that can be reached through our QR codes.

CIJ: What are your plans to grow the business in the future? 

Sam & PK: We feel very confident in our three methods of distribution: partnerships, e-commerce and a commission-based sales structure. We’ve made tremendous ground on partnerships, and are very excited about numerous partnerships we have in the pipeline. We’ve reached out to some incredible groups in the CBD space, the THC space and a few groups that you wouldn’t normally associate with cannabinoids, but with whom we’ve workshopped some really creative ideas that we’re really looking forward to bringing to market.

Readers can use promo code “CIJ” to get 15% off their first order here. 

Filed Under: Cannabis News

UPDATE: Alabama Gov. Kay Ivey Signs Medical Cannabis Bill

May 17, 2021 by CBD OIL

At first, Alabama Gov. Kay Ivey did not commit to signing a medical cannabis bill when the state legislature passed the legislation by a roughly two-to-one ratio in both chambers May 6.

In a statement from Ivey’s office that night, Press Secretary Gina Maiola said the governor looked forward to thoroughly reviewing Senate Bill 46 and providing the diligence it deserves but did not say whether she would sign it.

The Republican executive provided her ink to the bill Monday, making Alabama unofficially the 36th medical cannabis state, joining the likes of nearby Arkansas, Florida and Louisiana, according to reform organization Marijuana Policy Project (MPP). Mississippi dropped from the ranks of medical cannabis states after its Supreme Court ruled May 14 that Initiative 65 was unconstitutional.

When the Alabama Legislature passed its medical cannabis bill earlier this month, MPP Director of State Policies Karen O’Keefe said the legislation will allow seriously ill patients to finally get the relief they deserve and urged Ivey to sign it into law.

Ivey did just that Monday afternoon.

“I would like to thank Sen. Tim Melson and Rep. Mike Ball for their hard work over the last few years and their commitment to continue to work on this to ensure we have a productive, safe and responsible operation in Alabama,” Ivey said in a statement.

Medical cannabis legislation was first introduced in the Alabama House of Representatives two decades ago. Eight years ago, it was the laughingstock of the lower chamber. Now, a medical cannabis bill claimed supermajority support and the governor’s signature.

After a nearly 10-hour filibuster May 4, House lawmakers reconvened May 6 and considered several floor amendments before passing the Senate-originated bill, 68-34, which will allow registered patients diagnosed with qualifying conditions to access cannabis. The legislation returned to the Senate for final consideration later on May 6, when the upper chamber voted, 20-9, to concur with the House changes.

The Alabama Senate has passed medical cannabis bills three years in a row, but this is the first time the House has passed legislation. Last year, pandemic-related circumstances derailed the lower chamber’s possibility of a vote.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022. Republican Rep. Mike Ball sponsored the bill in the House.

“When we get in politics, we get down here and we focus our attention on what it is we’re after; we tend to tunnel up and we don’t see the other side very well, and there’s so many aspects of this that has been so difficult,” Ball said on the House floor May 6, after bearing the brunt of the filibuster, from opponents on his own side of the aisle, two days earlier.

“And, quite frankly, this has caused me to lose my appetite for politics in this whole process,” he said. “And the people who don’t see it, they’re not bad. They’re just not looking at it.”

Eight years earlier, a Democratic bill for medical cannabis that was introduced by former Rep. Patricia Todd won the 2013 “Shroud Award,” given to the “deadest” bill in the House that session, according to The Associated Press.

“They laughed at me,” Todd said, according to the AP. “I’m glad to see it passed. It’s long overdue.”

Final passage didn’t come without nearly three more hours of floor debate and amendment votes on May 6. Democratic Rep. Laura Hall, 78, said she first introduced medical cannabis legislation to the House two decades ago.

“Twenty years ago, I brought [legislation to the House] in honor of my son, who had just died the year before I was elected, of AIDS,” Hall said. “And I did that with the idea thinking if I could have had access [to medical cannabis]. The only drug that was available to him was a drug called AZT. He could not take that. When he took that medicine, we would have to get up every four hours—that was the regimen to giving him the medication. And he had finally said, ‘Enough is enough. I may get my T cells back and I can function, but I can’t do it on this medication.’”

Azidothymidine (AZT) is an antiretroviral medication used to prevent and treat HIV/AIDS.

Later during the House’s session on May 6, the chamber voted, 87-3, in favor renaming the legislation “Darren Wesley ‘Ato’ Hall Compassion Act,” as a tribute to Rep. Hall’s son.

While HIV/AIDS-related nausea or weight loss is one of more than a dozen qualifying conditions included in Alabama’s medical cannabis bill, two other conditions in the Senate’s original version of the bill were removed during an emending process in the House Health Committee—fibromyalgia and menopause or premenstrual syndrome (PMS).

That specific amendment was grouped with several other committee amendments as one package, which passed as a single vote May 6 on the House floor, 72-26.

“This amendment is so disappointing to me as a woman, that all of the issues that specifically impact women were taken out in the Health Committee, which is why I’m going to vote against this amendment,” Democratic Rep. Merika Coleman said. “I support [Rep. Ball] and support the concept, but this body sometimes is so disappointing.”

When enacted, S.B. 46 will create a 14-member Alabama Medical Cannabis Commission, which will determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers can provide patients with each of the qualifying conditions—also including cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome, post-traumatic stress disorder and others.

The new commission will also be responsible for issuing up to five licenses for vertically integrated operators, up to 12 cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses awarded the dispensary licenses can operate up to three sites in different counties, while vertically integrated operators can have up to five dispensing sites in different counties, according to the bill’s text.

Other housekeeping items the commission will be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

Some amendments that were rejected on the House floor were adding a THC dosing cap of 10 milligrams, enacting a zero-tolerance policy for diving under the influence, and revisiting the Alabama Medical Cannabis Commission’s authority to provide caregiver’s the right to distribute medical cannabis should the federal government reschedule cannabis, so that patients could instead receive their medical cannabis from pharmacies should federal prohibition end. 

“My concern in this issue, is if we create this large bureaucracy that we’re having, this large board that’s going to be there, that this will never go away,” Republican Rep. Matt Simpson said about the commission’s authoritative arm. “And you could have 49 other states that are going to be able to receive medical marijuana through a licensed pharmacist … but the state of Alabama would be required to go through these dispensaries based on this legislation you have.”

Meanwhile, the bill will prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 will limit medical cannabis use to forms such as pills, gelatin cubes, oils, creams and topical patches. Patients can possess up to 70 daily doses of cannabis.

In addition, minors cannot use—or be recommended—more than 3% THC. And employers can still drug test and prohibit employees from using cannabis.

Regarding social equity, depending on the business type, either at least one-fourth or one-fifth of all licenses are to be awarded to businesses with at least 51% ownership by individuals of African American, Native American, Asian or Hispanic descent, according to MPP. 

Filed Under: Cannabis News

Mississippi Supreme Court Overturns Voter-Approved Ballot Initiative for Medical Cannabis

May 17, 2021 by CBD OIL

At first, Alabama Gov. Kay Ivey did not commit to signing a medical cannabis bill when the state legislature passed the legislation by a roughly two-to-one ratio in both chambers May 6.

In a statement from Ivey’s office that night, Press Secretary Gina Maiola said the governor looked forward to thoroughly reviewing Senate Bill 46 and providing the diligence it deserves but did not say whether she would sign it.

The Republican executive provided her ink to the bill Monday, making Alabama unofficially the 36th medical cannabis state, joining the likes of nearby Arkansas, Florida and Louisiana, according to reform organization Marijuana Policy Project (MPP). Mississippi dropped from the ranks of medical cannabis states after its Supreme Court ruled May 14 that Initiative 65 was unconstitutional.

When the Alabama Legislature passed its medical cannabis bill earlier this month, MPP Director of State Policies Karen O’Keefe said the legislation will allow seriously ill patients to finally get the relief they deserve and urged Ivey to sign it into law.

Ivey did just that Monday afternoon.

“I would like to thank Sen. Tim Melson and Rep. Mike Ball for their hard work over the last few years and their commitment to continue to work on this to ensure we have a productive, safe and responsible operation in Alabama,” Ivey said in a statement.

Medical cannabis legislation was first introduced in the Alabama House of Representatives two decades ago. Eight years ago, it was the laughingstock of the lower chamber. Now, a medical cannabis bill claimed supermajority support and the governor’s signature.

After a nearly 10-hour filibuster May 4, House lawmakers reconvened May 6 and considered several floor amendments before passing the Senate-originated bill, 68-34, which will allow registered patients diagnosed with qualifying conditions to access cannabis. The legislation returned to the Senate for final consideration later on May 6, when the upper chamber voted, 20-9, to concur with the House changes.

The Alabama Senate has passed medical cannabis bills three years in a row, but this is the first time the House has passed legislation. Last year, pandemic-related circumstances derailed the lower chamber’s possibility of a vote.

Sponsored by Republican Sen. Tim Melson, S.B. 46 proposes implementing a medical program that would open the application process for potential patients by Sept. 1, 2022. Republican Rep. Mike Ball sponsored the bill in the House.

“When we get in politics, we get down here and we focus our attention on what it is we’re after; we tend to tunnel up and we don’t see the other side very well, and there’s so many aspects of this that has been so difficult,” Ball said on the House floor May 6, after bearing the brunt of the filibuster, from opponents on his own side of the aisle, two days earlier.

“And, quite frankly, this has caused me to lose my appetite for politics in this whole process,” he said. “And the people who don’t see it, they’re not bad. They’re just not looking at it.”

Eight years earlier, a Democratic bill for medical cannabis that was introduced by former Rep. Patricia Todd won the 2013 “Shroud Award,” given to the “deadest” bill in the House that session, according to The Associated Press.

“They laughed at me,” Todd said, according to the AP. “I’m glad to see it passed. It’s long overdue.”

Final passage didn’t come without nearly three more hours of floor debate and amendment votes on May 6. Democratic Rep. Laura Hall, 78, said she first introduced medical cannabis legislation to the House two decades ago.

“Twenty years ago, I brought [legislation to the House] in honor of my son, who had just died the year before I was elected, of AIDS,” Hall said. “And I did that with the idea thinking if I could have had access [to medical cannabis]. The only drug that was available to him was a drug called AZT. He could not take that. When he took that medicine, we would have to get up every four hours—that was the regimen to giving him the medication. And he had finally said, ‘Enough is enough. I may get my T cells back and I can function, but I can’t do it on this medication.’”

Azidothymidine (AZT) is an antiretroviral medication used to prevent and treat HIV/AIDS.

Later during the House’s session on May 6, the chamber voted, 87-3, in favor renaming the legislation “Darren Wesley ‘Ato’ Hall Compassion Act,” as a tribute to Rep. Hall’s son.

While HIV/AIDS-related nausea or weight loss is one of more than a dozen qualifying conditions included in Alabama’s medical cannabis bill, two other conditions in the Senate’s original version of the bill were removed during an emending process in the House Health Committee—fibromyalgia and menopause or premenstrual syndrome (PMS).

That specific amendment was grouped with several other committee amendments as one package, which passed as a single vote May 6 on the House floor, 72-26.

“This amendment is so disappointing to me as a woman, that all of the issues that specifically impact women were taken out in the Health Committee, which is why I’m going to vote against this amendment,” Democratic Rep. Merika Coleman said. “I support [Rep. Ball] and support the concept, but this body sometimes is so disappointing.”

When enacted, S.B. 46 will create a 14-member Alabama Medical Cannabis Commission, which will determine the maximum daily dosages of tetrahydrocannabinol (THC) that caregivers can provide patients with each of the qualifying conditions—also including cancer, terminal illness, depression, epilepsy, anxiety or panic disorder, chronic pain, spasticity, autism, Tourette syndrome, post-traumatic stress disorder and others.

The new commission will also be responsible for issuing up to five licenses for vertically integrated operators, up to 12 cultivation licenses, no more than four processor licenses and no more than four dispensary licenses. Businesses awarded the dispensary licenses can operate up to three sites in different counties, while vertically integrated operators can have up to five dispensing sites in different counties, according to the bill’s text.

Other housekeeping items the commission will be responsible for include overseeing the patient registry, issuing medical cards and outlining regulations from seed to sale.

Some amendments that were rejected on the House floor were adding a THC dosing cap of 10 milligrams, enacting a zero-tolerance policy for diving under the influence, and revisiting the Alabama Medical Cannabis Commission’s authority to provide caregiver’s the right to distribute medical cannabis should the federal government reschedule cannabis, so that patients could instead receive their medical cannabis from pharmacies should federal prohibition end. 

“My concern in this issue, is if we create this large bureaucracy that we’re having, this large board that’s going to be there, that this will never go away,” Republican Rep. Matt Simpson said about the commission’s authoritative arm. “And you could have 49 other states that are going to be able to receive medical marijuana through a licensed pharmacist … but the state of Alabama would be required to go through these dispensaries based on this legislation you have.”

Meanwhile, the bill will prohibit the smoking or vaping of cannabis, as well as processing cannabis into a form that is attractive to or targets children, such as candy or baked goods. Instead, S.B. 46 will limit medical cannabis use to forms such as pills, gelatin cubes, oils, creams and topical patches. Patients can possess up to 70 daily doses of cannabis.

In addition, minors cannot use—or be recommended—more than 3% THC. And employers can still drug test and prohibit employees from using cannabis.

Regarding social equity, depending on the business type, either at least one-fourth or one-fifth of all licenses are to be awarded to businesses with at least 51% ownership by individuals of African American, Native American, Asian or Hispanic descent, according to MPP. 

Filed Under: Cannabis News

Curaleaf to Acquire Colorado-Based Los Sueños

May 17, 2021 by CBD OIL

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WAKEFIELD, Mass., May 17, 2021 – PRESS RELEASE – Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, signed definitive documents to acquire the Los Sueños Farms and its related entities, the largest outdoor grow in Colorado. This will significantly expand Curaleaf’s Colorado presence, vertically integrating in the state with large-scale outdoor cannabis cultivation. The proposed transaction includes three Pueblo, Colorado outdoor cannabis grow facilities covering 66 acres of cultivation capacity, including land, equipment and licensed operating entities, an 1,800-plant indoor grow and two retail cannabis dispensary locations serving adult-use customers.

Total base consideration for the proposed acquisition is approximately $49 million for the Los Sueños operating companies and $18 million for the real estate and farm assets. Total consideration of $67 million to be paid 61% in Curaleaf subordinate voting shares, 29% in cash at closing, and 10% in assumed debt maturing in five years. Additional contingent consideration of up to $8 million in stock will be paid based upon operating cash flow-based targets for 2022.

Curaleaf Executive Chairman Boris Jordan said, "The acquisition of Los Sueños provides Curaleaf with outdoor cannabis cultivation expertise at commercial scale and establishes our foothold in the $2.2 billion Colorado market. This deal furthers our strategy of constructing low-cost supply chains that will secure healthy margins and position us for interstate commerce when it comes. Ultimately, our goal is to cultivate cannabis at less than $100 per pound, and this acquisition is a significant step in the right direction."

The acquisition will complement Curaleaf’s existing Colorado presence through its Select brand. Select is known as America’s No. 1 cannabis oil brand, with a variety of best-in-class cannabis products distributed to nearly 2,000 locations across 18 states.

Curaleaf CEO Joseph Bayern said, "The acquisition of Los Sueños will add over 50,000 pounds per year of low-cost wholesale capacity to Curaleaf’s footprint in Colorado, which we intend to double to over 100,000 pounds, representing a significant market share. As the largest producer of biomass in the state, this facility will also fuel the further deployment of our Select product line, which can already be found in 230 independent dispensaries in the state."

The proposed transaction has been unanimously approved by the Curaleaf board of directors and is expected to close upon regulatory approvals.

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Filed Under: Cannabis News

Support Grows for Federal Cannabis Legislation with the SAFE and CLAIM Acts

May 17, 2021 by CBD OIL

Things are about to change for cannabis and cannabis-related businesses, as landmark legislation to reform federal cannabis banking and insurance laws is just around the corner with the SAFE and CLAIM Acts now making their way through Congress.

The Secure and Fair Enforcement (SAFE) Banking Act, which already passed in the House, would allow financial institutions to do business with cannabis companies without facing federal penalties. There are high expectations the proposal will make its way through the Senate and onto President Biden’s desk.

The Clarifying Law Around Insurance of Marijuana (CLAIM) Act was introduced in Congress in March and is in the first stage of the legislative process. If it passed, it would allow insurance companies to service cannabis businesses without the threat of federal penalties.

For years, fear of sanctions kept banks and credit unions from working with the cannabis industry, forcing cannabis businesses to operate on a cash basis which made them targets of crime and created complications for financial regulators. This is a significant first step for cannabis businesses toward conducting more legitimate and safe operations.

The SAFE Banking Act: Providing a Legitimate Avenue to Banking and Loans

With 37 states and D.C. having taken action to legalize cannabis in some way, it is clear the federal cannabis regulatory model has shifted and the path forward for the SAFE Banking Act shows promise.

The bill creates a safe harbor for banks and credit unions to the extent they would not be liable or subject to federal forfeiture action for providing financial services to a cannabis-related business.More competition means greater capacity and lower premiums for all. 

The bill would prohibit a federal banking regulator from:

  • Recommending, incentivizing or encouraging a depository institution not to offer financial services to an account holder affiliated with a cannabis-related business or prohibit or otherwise discouraging a depository institution from offering services to such a business
  • Terminating or limiting the deposit insurance or share insurance of a depository institution solely because the institution provides services to a cannabis-related business
  • Taking any adverse or corrective supervisory action on a loan made to a person solely because the person either owns such a business or owns real estate or equipment leased to such a business. 

The CLAIM Act: Backing Cannabis Businesses with the Right Insurance Coverage

Should the CLAIM Act pass, it will protect insurance companies that provide coverage to a state-sanctioned and regulated cannabis business. It would also prohibit the federal government from terminating an insurance policy issued to a cannabis business and protect employees of an insurer from liability due to backing a cannabis-related business.

The CLAIM Act will be a boost for the insurance market and drive more underwriters to write cannabis policies. More competition means greater capacity and lower premiums for all. The act would also have a notable impact on currently hard-to-source policies like Cyber coverage, Directors & Officers (D&O) insurance, Errors & Omissions (E&O) and other management liability policies that have been extremely limited to cannabis businesses.

Cannabis Sales Still Growing Strong Globally 

The cannabis market is not slowing down in the United States or globally. Recent forecasts have U.S. sales reaching $28 billion in 2022.

As was the case in Canada where cannabis was made federally legal in 2018, there’s going to be a steep learning curve industry-wide for financial services and insurance vendors who don’t yet understand the risks and liabilities of cannabis operations, even if the SAFE and CLAIM Acts pass this year. And yet this is one giant step in the right direction toward the safe and equitable sales of cannabis country-wide.

Filed Under: Cannabis News

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