Cannabis News

Ahead of 4/20, Business and Politicians Take Stock of Cannabis Industry Impact: Week in Review

April 17, 2021 by CBD OIL

Gilberto “Berner” Milam Jr. has created an empire.

After starting his (legal) cannabis career in the early 2000s as a Bay Area budtender, the rapper/entrepreneur noticed a lack of branding in the nascent industry. With little more than a strong vision, a love for the plant and an inhuman work ethic—he’s confessed to sleeping just four or five hours a night—Berner parlayed one powerful strain into Cookies, a global lifestyle brand with more than 20 dispensaries across the U.S. and Israel, a clothing line and a new digital content platform called Couch Locked Network (CLN).

CLN will launch on 4/20 with an inaugural comedy show, “Couch Locked.” The event touts a who’s-who of famous weed connoisseurs, from Bob Saget to Donnell Rawlings. The hybrid event consists of a live show with limited tickets on an outdoor terrace at a hotel in San Francisco. Viewers not attending in person can tune in via PPV livestream on Veeps.com.

Berner spoke to Cannabis Business Times and Cannabis Dispensary about how the hybrid comedy show came about, increasing Black and brown ownership in the cannabis industry, and what it would take for him to sell Cookies.

Raj Chander: Give us some background on the genesis of “Couch Locked.” How did it come together? Who was involved?

Berner: I actually designed the logo about five years ago, I’ve been sitting on it for a while. I’ve always wanted to get into the comedy space. … Obviously, smoking bud, you know, it’s just part of what comes with it. You relax. But with COVID being COVID and not wanting to miss another 4/20 event, I thought it was the perfect time to bring a livestream, in-person, limited-ticket comedy show to the table. I wanted to laugh, man, and I feel like the world needed a laugh. We want to bring smiles to people’s faces. … This felt like a good time to implement something I’ve been sitting on.

RC: So, it sounds like you’ve had this idea for a while, even before all the COVID stuff happened, and you were just waiting for the right opportunity?

B: Yeah, I had to level up a little bit, man. I had to get the other businesses going, get the businesses to where I could take on another challenge. Because it’s actually a big challenge to jump into a new space like this and try to sell pay-per-view tickets to a live comedy event. But I think it’s going to be well received, and it’s much needed for sure.

RC: That’s interesting, because to me there’s been such a flood of virtual pop-ups, Zoom things, etc. It’s cool to hear you want to approach it a certain way and be thoughtful about it instead of just rushing into the virtual event space like a lot of others.

B: Well, yeah, if you think about it, I don’t want to watch someone rap. No disrespect to anyone doing streams like that, but for the last year, everyone’s been doing these virtual concerts. Man, you go to a concert to feel the music, to feel the vibe, to feel the energy. So, I was like “OK, what could we do that would be some type of a normal thing?” and I know that when I get high and watch comedy specials, it’s amazing. To see a live comedy special, bring you into that crowd and that atmosphere, people smoking bud while watching the show—that’s some futuristic ass shit.

RC: It seems pretty unique both in terms of the types of people you have and also the format –

B: There’s a lot of diversity in the comedians we have too. Some OGs, some new cats. I mean, we got fucking Bob Saget. It’s amazing. I grew up on “Full House,” dude! I know he’s a dirty birdie when he starts doing his comedy, and you don’t picture Danny Tanner talking like that. San Francisco live? Danny Tanner? Bob Saget? It was a no-brainer, I was like “Get that motherfucker over there!” Hopefully I can get him some weed and get him blazed, man.

RC: What’s been the biggest adjustment you’ve had to make during COVID?

B: I think just working from a distance: having to create and vibe over Zoom or through virtual networking. That shit sucks. I’m an in-person kind of guy, so just being away from that for a year, … not being at some of the store openings was really tough for me. If you go watch some of the old YouTube blogs, I’ll be at the store and I’ll be there from beginning to end. I personally shake everyone’s hand in the line. I don’t care if it’s 8 a.m. til 6 p.m.. So not being there for some of our store openings was really tough, but I think we just adapt and change. In any business, in any situation, you have to learn how to adapt and change and make it work. If not, you’ll be left in the dust.

RC: In light of the police killing of George Floyd last year and now more recently Daunte Wright, there’s been a lot of discussion about equity in the industry: Black and brown ownership, and these big corporations coming in and buying out minority license-holders. How do you think the industry can solve these problems?

B: Well as far as Cookies goes, if anyone wants to have a conversation about working with or trying to acquire us, they should know that this is something I plan on giving to my daughter one day. If they even want to have those kinds of conversations they have to sit down with us, smoke a joint, get high, and see if they’re even the right kind of person. I mean, this vision has been built for a long time. Money’s not gonna move the needle. It’s gotta be something that would complement everything I’ve worked toward.

RC: So you’d be open to that kind of acquisition deal, if the situation was right?

B: Possibly. I mean, look, at the end of the day I want to enjoy my life too. I’ve been working since I was 13. I’ve never stopped working since I was 13. As I go harder and harder as an entrepreneur, I want to enjoy my kids and enjoy my time. You only live one time. But it’d have to be the right situation. They’d have to have pure intentions, they’d have to understand the vision. It’s not gonna be possible, because people in the game now are looking for the money. It’s not about the money—we provide an experience. That’s why I said someone would have to sit down and smoke a joint with us. These big money guys, they don’t even smoke weed. And if they do, they ain’t smoking the shit I grow! That ends a lot of conversations right there too, they’ll be real quiet. Their pitch won’t be so straightforward, might have to sidetrack these motherfuckers a little bit (laughs).

But, I mean, here’s my goal man, keep Black and brown businesses empowered in the cannabis space, keep traditional operators in the game, keep people’s intentions pure and understand that this plant and this business is here for a whole other reason. Yeah. There’s a lot of money behind it, but the shit really unifies people and brings people together. It’s much needed. I don’t care about “recreational” or whatever, this shit is a medicine.

RC: What specifically do you think would be involved in what you mentioned—keeping Black and brown operators in the game—is it the government? Something in the industry, or on the consumer side?

B: It’s a big gumbo of everything. The law that New York passed, some of the tax money coming in will go toward social equity applicants. That was huge, because people being awarded licenses with no money is like being given a key to a house with no house. It doesn’t make sense. So shout out to New York for taking that first step, but I definitely encourage other states that legalize—if you’re gonna take a 30% tax off weed, at least half of that should be dedicated to equity and empowerment programs.

I think another part of it is on operators like myself. We’re building something out called the Cookies University. We’ll have a facility that does everything from A to Z. From cultivation to breeding to operations to manufacturing, dispensary, lounge, nursery, POS system training, everything. We want to empower minorities—all minorities, Asian, Black, Latino, whatever—to come learn the game hands-on from us and get that knowledge, bro. We have houses being built on the facility, and so we can empower and share that knowledge with people and give them a chance to either land a position with us at Cookies or another company.

So it goes from the government giving money out, to people like myself empowering people. We opened up the first Black-owned social equity dispensary in San Francisco (Berner’s on Haight), gave one of the fairest deals ever—that is now a blueprint for what deals should look like in the Bay Area—and make sure it’s not just like a “Let us use your license, we’ll pay you” type of situation. Nah, I trained my partner personally. I hired the staff with him. I’ve known the guy—Shawn Richards—since I was 19 years old. So, besides the money, besides the opportunity, sharing knowledge so he can go and empower other people in his network, open up other stores and build a brand. That shit to me is the most important part.

Sharing Knowledge and Empowering People in the Cannabis Industry: Q&A with Berner

April 16, 2021 by CBD OIL

Gilberto “Berner” Milam Jr. has created an empire.

Raj Chander: Give us some background on the genesis of “Couch Locked.” How did it come together? Who was involved?

RC: So, it sounds like you’ve had this idea for a while, even before all the COVID stuff happened, and you were just waiting for the right opportunity?

RC: It seems pretty unique both in terms of the types of people you have and also the format –

RC: What’s been the biggest adjustment you’ve had to make during COVID?

RC: So you’d be open to that kind of acquisition deal, if the situation was right?

Canopy Growth to Acquire Supreme Cannabis Company

April 16, 2021 by CBD OIL

Wrigley outlines the benefits of the deal, Parallel’s market expansion strategy, the company’s clinical research partnership with the University of Pittsburgh School of Medicine, as well as why he believes there’s still “a ways to go” before cannabis can become a true consumer packaged goods (CPG) industry.

Editor’s note: A condensed version of this article originally appeared in April 2021 issue of Cannabis Business Times. It has been updated to include details from the company’s Windy City Cannabis acquisition in Illinois, as well as the recent termination of Kim Napoli, Parallel’s former senior director of corporate social responsibility. This interview has been edited for length and clarity.

Cassie Neiden Tomaselli: What enticed you to participate in this industry, and how do you see cannabis evolving as a consumer packaged good (CPG)?

Beau Wrigley: What got me into it was health and wellness. When I really started to understand cannabis—going back a couple years—I realized that it really has the potential to truly improve people’s quality of life. And obviously I’ve been successful and fortunate to run a couple different businesses. But when you can have a business that brings that to people, potentially all over the world, it’s a pretty high calling. And it’s pretty great to be involved with the foundational aspects of an industry that’s new.

On the CPG side, it’s interesting. Obviously, that’s my background; I spent many years in CPG. There are parallels, pun intended, to CPG with this, but I think it’s going to be a while before this really looks like a CPG business. You’ve got a highly regulated environment, and I think a lot of people get overly optimistic about legislative changes that are going to change things dramatically in the near future. I think it’s a little further out. Things like being able to sell outside of regulated stores is a big issue, and that doesn’t necessarily match up with your traditional CPG. A retail environment and what you do with a retail environment does match up with CPG, but you’ve got regulations on packaging and you can’t ship products across state borders. And then every state has a different regulatory environment, so you don’t have any consistency for mass marketing. So, there’s still a ways to go from a CPG standpoint.

CNT: While the industry is continuing to advance, what ways can Parallel enter the mainstream, drawing on the experience that you have with the legacy Wrigley brands?

BW: I think what we bring to the party is legitimacy because, frankly, my name and reputation for quality, consistency, efficacy, doing the right thing in terms of building companies, taking care of employees, developing great cultures. Our intent is to create a gold standard in this industry. We’re not necessarily trying to be the biggest, but our intent is trying to be best from a compliance standpoint. So I think we can set the table in that regard, and then that will give people more confidence in the industry as a whole. Then the way we approach it in our retail stores is very much one of education, and that’s just a matter of time—to educate people on these amazing benefits of cannabis.

CNT: Parallel’s expansion strategy seems to be that you go very deep into the states that you’re in (Florida, Massachusetts, Nevada, Pennsylvania, Texas), instead of rapidly moving into multiple states. How do you think your focus will help the Parallel company over the long term?

BW: I feel strongly about this: Businesses are more successful when they’re focused. Now, you need to be focusing on the right things, and that’s what sometimes trips other businesses up. And I love our footprint. We are in high population markets with a relatively limited number of licenses on a comparable basis. We’re always looking at different markets, and we have applications in for licenses in a couple different states. But to go out and really add to that footprint, [whereas] we could do so much with our existing footprint—it’s like, why would you open up another front? I think it will serve us in terms of the depth of our customer base and the ability to build a strong business and be more competitive longer-term.

CNT: Parallel recently acquired Windy City Cannabis, which will give the company a significant presence in Illinois’ medical and adult-use market. What made Windy City specifically most attractive to Parallel as a point of entry to the state?

BW: I would say several things. One, it has four stores up and running and a viable ongoing business, so it’s not starting from scratch. Two, they have two more stores, which will be opening shortly, so it will be a total of six against the cap in Illinois currently of 10. So it’s a significant store count for us with significant revenue that is anticipated to flow through those stores very quickly. Three, I like where the stores are because they’re dispersed throughout the state in places where, in many cases, there’s less competition. I think sometimes that’s overlooked. [Being] in the middle of the city can be good, and there can be volume and traffic there, but there also can be a lot of competition from that. It gives us a foothold continue to expand our business and expand our brand. [And] we were able to acquire this company, pending approval [from the Illinois Department of Financial and Professional Regulation], at the right price.

CNT: Could you share more details about the Ceres business combination announcement? How does this set you up for your upcoming public offering?

BW: We’re very pleased with the relationship with the Ceres folks. They’re knowledgeable about cannabis, which is really great. And they do bring a network and a certain expertise in media and entertainment, which is highly relevant, not from a licensing standpoint necessarily, but more from the challenge that I think every company, whether it’s CPG or otherwise, faces today which is: How do you reach your consumers? And in our case, we have multi-generational consumers who are 21 to 80 [years old], and it’s all about really unlocking the code to how do you do that.

And I think they can be very helpful for the company in that overall relationship. Obviously the transaction will put more cash in the piggy bank, so to speak, so it allows us to keep investing in a whole host of meaningful initiatives that we have as a company. And the timing is right now because people are beginning to take a harder look at the fundamentals on what makes a good company in this business. In the early days it was, “If it’s a weed stock, I want in. I want to say I own a piece of that.” But now people are starting to say, “OK, wait a minute, there are differences between these companies.” There’s differences in the boards of the companies, there’s differences in the footprint. Another difference for us, for example, is our intense focus on R&D and innovation, and we invest a lot in that. There are a lot of other companies that aren’t really doing that to the same degree.

CNT: The Boston Globe and MassLive reported that Senior Director of Corporate Social Responsibility Kim Napoli was recently terminated as a result of a breach in Parallel’s conflict-of-interest policy—because Napoli’s husband, Jonathan, had acquired a license to sell cannabis in the state of Massachusetts. Can you confirm these reports?

BW: Yes, this is 100% a significant conflict of interest. We have had a clear and strict policy, and that policy is that you cannot be employed by us and be in a competing business. It’s not about an individual, it’s not about social equity. If someone was working at your donut shop and opened a donut shop next door, or frankly, anywhere—and you had intellectual property, you had plans, products, would you want them in your donut shop when they’re going to be in competition with you? It’s a policy that protects the company and it also protects our associates.

I have great respect for Kim, she’s done a lot for the company. We promoted her within the organization when we purchased [New England Treatment Centers (NETA)].

Editor’s note: Cannabis Business Times/Cannabis Dispensary reached out to Kim Napoli regarding her termination from Parallel. Napoli declined to comment on the record.

CNT: There are reports of some fallout from the decision. How are you communicating this decision to your social equity partners as well as your employees and your other stakeholders?

BW: It’s a tricky one, it’s a fair [question]. I am not aware of significant fallout. I think that’s sensationalized media. We have had conversations with anyone who wants to raise it. We have had general communications within our organization and others. We also believe in, to the degree possible, respecting people’s privacy within the company, so we’ve tried to navigate that territory as carefully as possible.

CNT: Is there a plan now to fill the position of senior director of corporate responsibility?

BW: Absolutely, there’s a plan to backfill to continue to add to all of our efforts across the entire company in every market we function in. I am a huge, huge supporter [of corporate social responsibility]. That’s why we have all the policies in place that we do, and all the benefit programs. And we’re taking action. It’s not about writing a check. It’s not about saying things. It’s about doing things.

CNT: What are some of the Corporate Social Responsibility (CSR) initiatives that the company is taking?

BW: We kind of have a three-pronged approach. We have an external approach to it with our partners out there, and that can be Cannaclusive, or CultivatED, or Minority Cannabis Business [Association]. We have an internal aspect, where we have Employee Resource Groups: we have Black Empowerment Network; we have a Pride group [Pride at Parallel]; we’re launching shortly a women’s initiative throughout the company [Women Impact Network]; we have Parallel Cares, where we match donations that people want to direct in certain ways. And we have an employee relief fund, so if someone needs help at a critical time, we’re there as a company to stand by. So we have a lot going on, and it’s very deep and thorough. I think people are going to start looking into companies like ours and saying, “Wow, OK, they really get it and they’re really doing the right thing in spades.” That’s what differentiates us as a company.

CNT: Why do you believe it’s so important for the cannabis industry in particular to take on these initiatives like you’ve just outlined?

BW: It’s important for two reasons. One: it’s a young, newly developing industry; it’s always good to start with the right kind of foundation—and not do something and try to convert later. And I think it’s important again to set the example because there are a lot of people who haven’t run companies who are in the cannabis business, so I think it’s important for them to start thinking about these things. And then there’s social history with regards to cannabis, [such as] incarceration of people for past offenses during different times. All of this is not saying we can go back and change history; we can’t, but we can do things right going forward. But doing things right going forward is in a holistic approach, not just trying to solve for one thing, [for example,] expungement. Great idea, but let’s be holistic and make sure we develop a workforce that’s inclusive.

CNT: Can you talk a little about the partnership with the University of Pittsburgh School of Medicine for clinical studies on sickle cell disease, and why you’re focusing there?

BW: We’re excited about our relationship there because something the industry has lacked for many, many years is legitimate research to prove out many of the things that people already know and feel. Even though it’s anecdotal, it’s improving their quality of life, so it will be nice to substantiate some of that over time. Sickle cell is the tip of the iceberg, we’ve got lots of things we want to do with [the University of Pittsburgh School of Medicine] over time. It’s a good place to start, primarily because [sickle cell disease is] something that afflicts a disproportionately high number of African Americans. And African Americans have been disadvantaged by the whole cannabis industry, and that’s something that has to be acknowledged. Maybe we can come back and really help that particular population with one of the first initiatives. But there will be other studies addressing different [ailments] as well.

CNT: What about your in-house R&D? Are there any other products or delivery methods that you’re particularly excited about?

BW: I would say beverage is very exciting. And we have in-house technology on beverage, which I think is very good, [that] allows us to basically emulsify cannabinoids in liquids—some with mild taste effects and others that are actually tasteless. So we feel that in the coming months here we’ll be able to launch some products and differentiative in a very good way in that category.

CNT: What about running a vertically integrated cannabis company keeps you up at a night?

BW: What keeps me up at night I would say is regulatory uncertainty. The number of regulatory bodies, and in some cases, their propensity to change the rules. It’s very difficult to run any business when the rules are changing all the time and when you’re really highly restricted. It’s an education process, but unfortunately in many cases, it takes quite a while to educate regulators on benefits of doing things certain ways. It’s not the industry trying to take advantage, it’s just, [they’ve] got to understand: the beliefs of the 1960s don’t hold muster anymore, and we must move into the next century here. And as such, we need to think about the economic benefits and the employment benefits, and work more hand-in-hand with the industry. I would say the other thing that keeps me up at night is the possibility that maybe a less sophisticated operator will cut corners and do something that could be detrimental to the industry that we’re trying to create the gold standard for in terms of compliance, relationships and the like.

CNT: What helps you sleep at night then?

BW: I have a very supportive family, which is No. 1, and that’s pretty awesome. And it’s just experience dealing with these sort of things. I’ve seen a lot in my years and career and so don’t tend to get too flustered by things, and [I] know what we can’t control and how we are going to find our way through it. Every day in this business you wake up and the landscape has changed to a certain degree, so you just have to look at it and say, “OK gosh, I thought we were going to go here, but we’re going to have to maneuver a little because now there’s a mountain in the way.” It really comes down to your attitude and approach and your experience I think, so I sleep pretty well.

CNT: Where do you see Parallel in the next five years?

BW: Lots of growth. We’re going to continue to innovate, diversify our portfolio. Beverage is part of that. Rare cannabinoids is part of that, and that’s the individualized cannabinoids a lot of people don’t really know much about—things to address sleep, to disrupt healthcare—three to five years for sure we’re going to see things like that in the marketplace, and I think we will see continued behavioral change and adoption in numerous states. We’ll be focused, but we will continue to grow our footprint to some degree. I think you’ll see some loosening of restrictions at a federal level, but I’m not convinced we’re going to see massive legalization change in the near term.

Cassie Neiden Tomaselli is a contributing editor to Cannabis Business Times and its sister publications Cannabis Dispensary and Hemp Grower.

Your Guide to Crop Steering With Nutrients

April 16, 2021 by CBD OIL

For several years, commercial cultivation has been a trial-and-error process for growers as they navigate the most efficient way to care for plants throughout the different life cycle stages.

During each stage, plants must have specific plant essential nutrient ratios to develop, grow or produce at its best. If a plant has too much or too little of one of the 14 essential plant nutrients, it will not complete its life cycle stages correctly, says Ian Bateman, who works in professional technical services at Hawthorne Gardening Company Horticulture Division.

“When you think of the plant body, it’s like a skyscraper you’re trying to build,” Bateman says. “All the nutrients are pieces of equipment, machinery or structural components that help make that building. So, if you have one missing piece out of the equation, you can’t finish your building, and that’s how I would think about plant nutrients. If a grower has just one out of the 14 nutrients, that isn’t sufficient to sustain the growth level they want, then, the growth is slowed down by that nutrient.”

Knowing what to feed a plant when it needs it will help save time, money, and most importantly, the plant. Additionally, understanding essential plant nutrients and maintaining proper ratios can help with crop steering, Bateman says.

Cultivators use crop steering to direct the plant to grow in the way they want by altering the environment, how often plants are irrigated and other inputs. Growers can steer the plant’s growth and habit by adjusting nutrients, as well, another important component of crop steering, Bateman says.

In order to use nutrients to steer crops, Bateman suggests these key considerations.

Timing is Key

Different nutrients contribute to different aspects of plant growth and development. For example, nitrogen and iron help plants develop strong leaves to capture light, Bateman says.

Nitrogen and iron are most useful when the plant is in the vegetative stage, when it grows larger, and when stems and leaves are developing, Bateman says. Growers can use these key nutrients to help boost growth and ensure the plant is ready for flowering.

“The opposite is also true when it comes to getting the plant to fruit or to flower,” Bateman says. “We want to taper back those vegetative signals to the plant and start bringing in some nutrients that encourage the plant to focus on flower production.

To steer the plants to flower, elements such as potassium, phosphorus, sulfur and calcium become more important during that cycle. By changing the levels of these individual nutrients, a grower can start to tailor the plants growth in a way that is beneficial to them, Bateman says.

Why More Nutrients is Not Always Better

It’s essential to have all of the nutrients in the right proportion for the plant. Growers must navigate a fine line of having the optimum amount of all 14 nutrients to get the plant to grow as optimally as possible, while avoiding too much or too little of each nutrient, Bateman says.

“The plant pulls up the nutrients and water continuously, and if the plant has too much of one nutrient, the plant doesn’t have anywhere to put it,” Bateman says. “It can’t store it past a certain threshold, get rid of it or use it, so it starts to become toxic in the plant body. If you’ve heard someone say, ‘I burned my plants.’ or ‘They’re curling over,’ this is when one or more nutrients have been overapplied and accumulated to toxic levels and the plant starts to become sick and grow slower.”

One example is iron, Bateman says. “Iron’s primary role in the plant is it’s involvement in the synthesis of chlorophyll. You can think of nitrogen, magnesium, and carbon as the fundamental structural components of chlorophyll, and iron comes in and helps build it.”

During the plant’s vegetative stage, growers should provide the plants with a significant amount of iron to build chlorophyll. Then during the flowering cycle, cultivators will want to reduce the rates of iron fertilization as the plant is not focused on leaf development anymore and it may not be able to store any more iron, which can cause the plant to burn or show signs of iron toxicity, Bateman says.

“There are other nutrients like boron and manganese that are also involved in various stages of plant metabolism,” Bateman says. “Generally speaking, when a plant gets to the flowering stage, the grower will want to start ramping these nutrients down because they are already built up in the plant. So that’s why some nutrients in excess can hurt the plants.”

Tailoring Nutrients to Plant Growth Stage: What it Means and How it Works

In the hydroponics industry, it’s common for growers to have a different set of fertilizers for the plant’s vegetative and flower stages, Bateman says.

“The flower fertilizers are lower in nitrogen, broadly speaking, and have higher levels of phosphorus, potassium and calcium,” Bateman says. “The vegetative set of fertilizers tend to have higher iron, nitrogen that help the plant grow leaves, stems and roots.”

The goal is to give plants exactly what they need during their different life cycle stages. Bateman suggests different products growers can use to help crop steer plants by tailoring nutrients to the plant’s development.

For example, Botanicare Pure Blend Pro plant food blends are formulated for specific stages during the crop’s lifecycle; Grow includes essential nutrients needed during the vegetative stage, while Bloom gives plants what they need during the flowering stage, Bateman says.

“With those two bottles of fertilizer, a grower will already be 80% there; however, there are limitations to changing those two bottles because there are 14 essential plant nutrients,” Bateman says. “The Pure Blend Pro supplies quite a few of those nutrients, but how does a grower adjust individual nutrients to give the plant exactly what it wants no more, no less when every one of those nutrients is just in two bottles?”

It can be challenging to increase or reduce specific nutrients, but that’s where nutrient supplements come in, Bateman says.

Botanicare Hydroplex, for example, provides a boost of primarily phosphorus and potassium to help maximize flower size.

“A grower can combine the Hydroplex with the Pure Blend Pro to ramp up the phosphorus and potassium while still keeping the nitrogen low and iron in check to ensure they are still giving the plant exactly what it wants when it needs it,” Bateman says. “Hydroplex is a great example where a grower can add a little extra horsepower in bloom by giving the plant just what it needs to tailor the precise amount of phosphorus and potassium.”

The nutritional needs of crops are not constant, as they shift over time in terms of overall concentration and composition, which means growers should apply different proportions and quantities of all 14 plant essential nutrients to best support the needs of their crops as they develop, Bateman says.

“Nutrients, supplements are all tools in the toolbox, which should be deployed strategically,” Bateman says. “Don’t bring tweezers to a job-site and don’t bring a sledgehammer to perform open heart surgery. Be strategic. Strive to give your crops what they want, when they want it, no more, no less.”

6 Tips To Improve Plant Nutrition and Quality

April 16, 2021 by CBD OIL

With the introduction of nutrient supplements, one common misconception Ian Bateman, who works in professional technical services at Hawthorne Gardening Company’s Horticulture Division, sees at cultivation operations is growers focusing their attention onsupplements at the expense of base nutrients, or the primary fertilizers that contain essential macronutrients such as nitrogen, phosphorus and potassium (NPK). As a result, plants don’t get the nutrition they need from their food, and because supplements aren’t meant to be holistic, deficiencies can manifest.

“[Base nutrients contain] the bulk of the plant essential nutrients,” Bateman says. “What the supplements should be doing is enhancing or supporting the base nutrients, but because of marketing, because of how these products are positioned, growers think that they’re going to get all the yield and the performance out of the supplements and the base nutrients become kind of an afterthought.”

Just like for humans, vitamins are a great way to supplement nutrients people may not get enough of in their regular diets, but they can’t completely negate unhealthy eating.

“You can take all the fish oil and all the B vitamins and all the stuff you want, but if you eat like crap, you’re going to look like crap and you’re going to feel like crap,” says Ian Bateman. “The same is true for plants.”

When plants don’t get what they need, nutrient deficiency symptoms vary, but common problems include interveinal chlorosis (yellowing leaf margins,) or chlorosis (leaves appear pale, lime green or even yellow), Bateman says. However, it’s often difficult to diagnose the specific nutrient disorder without lab testing, and even then, it’s generally not just one nutrient that is lacking.

“In the real world, most of the time, when plants are deficient, they will have multiple things wrong with them,” he says. “It’s rarelyjust one nutrient. It can happen, but often times it’s linked because nutrients are linked.”

Without proper nutrient balance, toxicity also can occur, and symptoms include burning or singeingfoliage, Bateman says.

In order to avoid an imbalance, Bateman recommends dialing in thebase nutrientsbased on crop demand and life stage, thenleveragingkey supplements. He shared the following tips:

1. A combination of base fertilizers and supplements is key to producing high quality plants.

Two decades ago, nutrient programs were more complicated, Bateman says, and often involved 10+fertilizer parts.

“Now we’ve gone in the other direction where growers want to simplify,” Bateman says. “The pendulum swings one way, and now it’s definitely swung the other way, where I feel like a lot of growers are being a little too reductionist. They may say, ‘All I need is mineral salts, just give me a simple base nutrient recipe, and we’re done.’ And that does work, there’s no doubt about it. But what is being left on the table?”

Plants need different proportions of different nutrients as they grow and mature and during key lifecycle stages for growers to get the results they want, including stronger plants, higher yields and improved fruit and flower quality, Bateman says.

“For example, a young seedling is going to want high phosphorus to set roots. A young fast growing vegetative plant is going to want lots of nitrogen and iron to grow lots of leaves,” he says. “And then when it starts to fruit and flower, it’s going to want less nitrogen and is going to want higher levels of potassium, calcium and sulfur to improve the quality and abundance of the fruit set.”

A base fertilizer program tailored for plants at different growth stages is a good start, Bateman says, but supplements are often highly beneficial to produce the highest quality plants and can solve a lot of common problems, as described in additional tips below.

2. Solve nutrient deficiencies with supplements, not base fertilizers.

Base fertilizers contain not only key macronutrients for plant development, but also an array of micronutrients that plants need very small amounts of but are still crucial, Bateman says. Because base fertilizers are wholistic feeding programs, it’s difficult to use them to increase a single nutrient without overapplying another key nutrient, Bateman says.

“It’s usually easier to address a class of deficiencies with supplements then it is to raise the base level of nutrients,” he says. “For example, calcium deficiencies tend to flare up pretty often. If you raise base nutrients to raise calcium levels, you’re going to be bringing in other nutrients, usually nitrogen and lots of micronutrients. You might get a situation where you correct the calcium deficiency but now you have toxicity in some other nutrients. So bringing in a calcium/magnesium supplement makes a lot more sense to me.”

3. Calcium deficiencies are common. Make sure plants get enough.

Calcium deficiencies in plants tend to be more common than others for many reasons, Bateman says. Plants need calcium in high amounts, and if they don’t have enough, they aren’t able to produce high quality fruits and flowers, he says.

“Plants have a harder time picking up calcium from the roots and moving them into their tissuesthan other nutrients,” Bateman says. “And this is because unlike a lot of nutrients, which can move cell to cell, and the plant has ways of getting what it needs, calcium doesn’t. Once calcium is deposited into the plant tissue, it’s like the mortar to the brick, it’s not going anywhere, so plants need a consistent supply of calcium. Calcium becomes deficient in the new tissuefirst, which needs it the most.”

Although calcium is critical in all stages of growth, the plant needs it the most in early flowering, Bateman says, as it’s a key element in producing strong, healthy fruits and flowers.

“The plant is growing very quickly and at that point setting its inflorescence structure,” he says.

When correcting for calcium deficiencies, it’s important to also supplement with magnesium, which is why Hawthorne Gardening Company offers a Botanicare Cal-Mag Plus formula to address this widespread deficiency.

“Nutrients can be antagonistic to each other. Calcium and magnesium are a perfect example of that. If you raise one, you have to raise the other to keep them in balance,” Bateman says. “Otherwise, you fix the calcium deficiency and now you could run a magnesium deficiency.”

4. Check your water supply before using a calcium/magnesium supplement.

If growers are working with a base nutrient with ample calcium and magnesium, they may not need to supplement them, Bateman says. However, most do not contain enough. And, if growers irrigate with soft water or use reverse-osmosis systems, a calcium magnesium supplement is highly recommended, he says.

“For growers who are using hard water that has tons of calcium and magnesium in it, I actually don’t recommend using [Cal-Mag Plus] because in that case, you’re overloading the plant with it,” Bateman says. “There’s so much in the water already. It’s not a one-size-fits-all [solution], but for the majority of growers, it’s a good thing to use or at least have [Cal-Mag] in your arsenal so if something does come up, you’re ready.”

5. Consider sulfur to improve aroma and value.

Sulfur is one of the elements thought to contribute to plants’ “funky, gassy” aroma, Bateman says. In addition to boosting fragrant properties, sulfur may help improve fruit quality and fruit set.

“It’s one of those nutrients that people don’t talk about a lot. They like to focus on the potassium and the phosphorus, but sulfur is one of those underrated ones,” he says. “Plants are also very tolerant to high sulfur levels, and I think this makes evolutionary sense because a lot of water supplies are full of sulfur.”

6. Silicon can be used as an “insurance policy” for plants.

Silicon is considered a beneficial nutrient, not essential, as plants can grow without it. But Bateman says growers should consider supplementing their crops with silicon throughout the plant’s entire lifecycle starting in the vegetative stage after each irrigation. Botanicare offers Silica Blast, which can help improve vigor and protect plants from environmental stressors. Like calcium, silicon is not translocated within the plant, so new tissues won’t get the benefit of silicon if it is only applied once in a while

“Silicon is deposited in the skin or epidermis of the plant, and it makes the plant stronger. And there’s a lot of benefits to having a stronger plant,” Bateman says. “One of the obvious ones is the branches won’t break as easily. It also helps the plant in extreme environments.”

For example, if an air conditioning unit goes down and the heat rises, forcing plants into a drought situation, silicon can help protect plants and provide much-needed buffer time until the problem is resolved.

“It’s almost an insurance policy that it offers you to give the plant a bit more time to react should something bad happen,” Bateman says.

Premier Cannabis Beverage Company Keef Brands Expands Eastward: Missouri, Ohio and Maine

April 15, 2021 by CBD OIL

Multi-state, vertically integrated cannabis operator Parallel—run by the former CEO and namesake of the Wrigley Company William “Beau” Wrigley Jr.—made headlines earlier this year after announcing the company would combine with special purpose acquisition company Ceres Acquisition Corp. in a $1.9-billion deal expected to close this summer. The merger would allow Parallel’s team to make a public offering while continuing to grow the business through mergers and acquisitions.

Wrigley outlines the benefits of the deal, Parallel’s market expansion strategy, the company’s clinical research partnership with the University of Pittsburgh School of Medicine, as well as why he believes there’s still “a ways to go” before cannabis can become a true consumer packaged goods (CPG) industry.

Editor’s note: A condensed version of this article originally appeared in April 2021 issue of Cannabis Business Times. It has been updated to include details from the company’s Windy City Cannabis acquisition in Illinois, as well as the recent termination of Kim Napoli, Parallel’s former senior director of corporate social responsibility. This interview has been edited for length and clarity.

Cassie Neiden Tomaselli: What enticed you to participate in this industry, and how do you see cannabis evolving as a consumer packaged good (CPG)?

Beau Wrigley: What got me into it was health and wellness. When I really started to understand cannabis—going back a couple years—I realized that it really has the potential to truly improve people’s quality of life. And obviously I’ve been successful and fortunate to run a couple different businesses. But when you can have a business that brings that to people, potentially all over the world, it’s a pretty high calling. And it’s pretty great to be involved with the foundational aspects of an industry that’s new.

On the CPG side, it’s interesting. Obviously, that’s my background; I spent many years in CPG. There are parallels, pun intended, to CPG with this, but I think it’s going to be a while before this really looks like a CPG business. You’ve got a highly regulated environment, and I think a lot of people get overly optimistic about legislative changes that are going to change things dramatically in the near future. I think it’s a little further out. Things like being able to sell outside of regulated stores is a big issue, and that doesn’t necessarily match up with your traditional CPG. A retail environment and what you do with a retail environment does match up with CPG, but you’ve got regulations on packaging and you can’t ship products across state borders. And then every state has a different regulatory environment, so you don’t have any consistency for mass marketing. So, there’s still a ways to go from a CPG standpoint.

CNT: While the industry is continuing to advance, what ways can Parallel enter the mainstream, drawing on the experience that you have with the legacy Wrigley brands?

BW: I think what we bring to the party is legitimacy because, frankly, my name and reputation for quality, consistency, efficacy, doing the right thing in terms of building companies, taking care of employees, developing great cultures. Our intent is to create a gold standard in this industry. We’re not necessarily trying to be the biggest, but our intent is trying to be best from a compliance standpoint. So I think we can set the table in that regard, and then that will give people more confidence in the industry as a whole. Then the way we approach it in our retail stores is very much one of education, and that’s just a matter of time—to educate people on these amazing benefits of cannabis.

CNT: Parallel’s expansion strategy seems to be that you go very deep into the states that you’re in (Florida, Massachusetts, Nevada, Pennsylvania, Texas), instead of rapidly moving into multiple states. How do you think your focus will help the Parallel company over the long term?

BW: I feel strongly about this: Businesses are more successful when they’re focused. Now, you need to be focusing on the right things, and that’s what sometimes trips other businesses up. And I love our footprint. We are in high population markets with a relatively limited number of licenses on a comparable basis. We’re always looking at different markets, and we have applications in for licenses in a couple different states. But to go out and really add to that footprint, [whereas] we could do so much with our existing footprint—it’s like, why would you open up another front? I think it will serve us in terms of the depth of our customer base and the ability to build a strong business and be more competitive longer-term.

CNT: Parallel recently acquired Windy City Cannabis, which will give the company a significant presence in Illinois’ medical and adult-use market. What made Windy City specifically most attractive to Parallel as a point of entry to the state?

BW: I would say several things. One, it has four stores up and running and a viable ongoing business, so it’s not starting from scratch. Two, they have two more stores, which will be opening shortly, so it will be a total of six against the cap in Illinois currently of 10. So it’s a significant store count for us with significant revenue that is anticipated to flow through those stores very quickly. Three, I like where the stores are because they’re dispersed throughout the state in places where, in many cases, there’s less competition. I think sometimes that’s overlooked. [Being] in the middle of the city can be good, and there can be volume and traffic there, but there also can be a lot of competition from that. It gives us a foothold continue to expand our business and expand our brand. [And] we were able to acquire this company, pending approval [from the Illinois Department of Financial and Professional Regulation], at the right price.

CNT: Could you share more details about the Ceres business combination announcement? How does this set you up for your upcoming public offering?

BW: We’re very pleased with the relationship with the Ceres folks. They’re knowledgeable about cannabis, which is really great. And they do bring a network and a certain expertise in media and entertainment, which is highly relevant, not from a licensing standpoint necessarily, but more from the challenge that I think every company, whether it’s CPG or otherwise, faces today which is: How do you reach your consumers? And in our case, we have multi-generational consumers who are 21 to 80 [years old], and it’s all about really unlocking the code to how do you do that.

And I think they can be very helpful for the company in that overall relationship. Obviously the transaction will put more cash in the piggy bank, so to speak, so it allows us to keep investing in a whole host of meaningful initiatives that we have as a company. And the timing is right now because people are beginning to take a harder look at the fundamentals on what makes a good company in this business. In the early days it was, “If it’s a weed stock, I want in. I want to say I own a piece of that.” But now people are starting to say, “OK, wait a minute, there are differences between these companies.” There’s differences in the boards of the companies, there’s differences in the footprint. Another difference for us, for example, is our intense focus on R&D and innovation, and we invest a lot in that. There are a lot of other companies that aren’t really doing that to the same degree.

CNT: The Boston Globe and MassLive reported that Senior Director of Corporate Social Responsibility Kim Napoli was recently terminated as a result of a breach in Parallel’s conflict-of-interest policy—because Napoli’s husband, Jonathan, had acquired a license to sell cannabis in the state of Massachusetts. Can you confirm these reports?

BW: Yes, this is 100% a significant conflict of interest. We have had a clear and strict policy, and that policy is that you cannot be employed by us and be in a competing business. It’s not about an individual, it’s not about social equity. If someone was working at your donut shop and opened a donut shop next door, or frankly, anywhere—and you had intellectual property, you had plans, products, would you want them in your donut shop when they’re going to be in competition with you? It’s a policy that protects the company and it also protects our associates.

I have great respect for Kim, she’s done a lot for the company. We promoted her within the organization when we purchased [New England Treatment Centers (NETA)].

Editor’s note: Cannabis Business Times/Cannabis Dispensary reached out to Kim Napoli regarding her termination from Parallel. Napoli declined to comment on the record.

CNT: There are reports of some fallout from the decision. How are you communicating this decision to your social equity partners as well as your employees and your other stakeholders?

BW: It’s a tricky one, it’s a fair [question]. I am not aware of significant fallout. I think that’s sensationalized media. We have had conversations with anyone who wants to raise it. We have had general communications within our organization and others. We also believe in, to the degree possible, respecting people’s privacy within the company, so we’ve tried to navigate that territory as carefully as possible.

CNT: Is there a plan now to fill the position of senior director of corporate responsibility?

BW: Absolutely, there’s a plan to backfill to continue to add to all of our efforts across the entire company in every market we function in. I am a huge, huge supporter [of corporate social responsibility]. That’s why we have all the policies in place that we do, and all the benefit programs. And we’re taking action. It’s not about writing a check. It’s not about saying things. It’s about doing things.

CNT: What are some of the Corporate Social Responsibility (CSR) initiatives that the company is taking?

BW: We kind of have a three-pronged approach. We have an external approach to it with our partners out there, and that can be Cannaclusive, or CultivatED, or Minority Cannabis Business [Association]. We have an internal aspect, where we have Employee Resource Groups: we have Black Empowerment Network; we have a Pride group [Pride at Parallel]; we’re launching shortly a women’s initiative throughout the company [Women Impact Network]; we have Parallel Cares, where we match donations that people want to direct in certain ways. And we have an employee relief fund, so if someone needs help at a critical time, we’re there as a company to stand by. So we have a lot going on, and it’s very deep and thorough. I think people are going to start looking into companies like ours and saying, “Wow, OK, they really get it and they’re really doing the right thing in spades.” That’s what differentiates us as a company.

CNT: Why do you believe it’s so important for the cannabis industry in particular to take on these initiatives like you’ve just outlined?

BW: It’s important for two reasons. One: it’s a young, newly developing industry; it’s always good to start with the right kind of foundation—and not do something and try to convert later. And I think it’s important again to set the example because there are a lot of people who haven’t run companies who are in the cannabis business, so I think it’s important for them to start thinking about these things. And then there’s social history with regards to cannabis, [such as] incarceration of people for past offenses during different times. All of this is not saying we can go back and change history; we can’t, but we can do things right going forward. But doing things right going forward is in a holistic approach, not just trying to solve for one thing, [for example,] expungement. Great idea, but let’s be holistic and make sure we develop a workforce that’s inclusive.

CNT: Can you talk a little about the partnership with the University of Pittsburgh School of Medicine for clinical studies on sickle cell disease, and why you’re focusing there?

BW: We’re excited about our relationship there because something the industry has lacked for many, many years is legitimate research to prove out many of the things that people already know and feel. Even though it’s anecdotal, it’s improving their quality of life, so it will be nice to substantiate some of that over time. Sickle cell is the tip of the iceberg, we’ve got lots of things we want to do with [the University of Pittsburgh School of Medicine] over time. It’s a good place to start, primarily because [sickle cell disease is] something that afflicts a disproportionately high number of African Americans. And African Americans have been disadvantaged by the whole cannabis industry, and that’s something that has to be acknowledged. Maybe we can come back and really help that particular population with one of the first initiatives. But there will be other studies addressing different [ailments] as well.

CNT: What about your in-house R&D? Are there any other products or delivery methods that you’re particularly excited about?

BW: I would say beverage is very exciting. And we have in-house technology on beverage, which I think is very good, [that] allows us to basically emulsify cannabinoids in liquids—some with mild taste effects and others that are actually tasteless. So we feel that in the coming months here we’ll be able to launch some products and differentiative in a very good way in that category.

CNT: What about running a vertically integrated cannabis company keeps you up at a night?

BW: What keeps me up at night I would say is regulatory uncertainty. The number of regulatory bodies, and in some cases, their propensity to change the rules. It’s very difficult to run any business when the rules are changing all the time and when you’re really highly restricted. It’s an education process, but unfortunately in many cases, it takes quite a while to educate regulators on benefits of doing things certain ways. It’s not the industry trying to take advantage, it’s just, [they’ve] got to understand: the beliefs of the 1960s don’t hold muster anymore, and we must move into the next century here. And as such, we need to think about the economic benefits and the employment benefits, and work more hand-in-hand with the industry. I would say the other thing that keeps me up at night is the possibility that maybe a less sophisticated operator will cut corners and do something that could be detrimental to the industry that we’re trying to create the gold standard for in terms of compliance, relationships and the like.

CNT: What helps you sleep at night then?

BW: I have a very supportive family, which is No. 1, and that’s pretty awesome. And it’s just experience dealing with these sort of things. I’ve seen a lot in my years and career and so don’t tend to get too flustered by things, and [I] know what we can’t control and how we are going to find our way through it. Every day in this business you wake up and the landscape has changed to a certain degree, so you just have to look at it and say, “OK gosh, I thought we were going to go here, but we’re going to have to maneuver a little because now there’s a mountain in the way.” It really comes down to your attitude and approach and your experience I think, so I sleep pretty well.

CNT: Where do you see Parallel in the next five years?

BW: Lots of growth. We’re going to continue to innovate, diversify our portfolio. Beverage is part of that. Rare cannabinoids is part of that, and that’s the individualized cannabinoids a lot of people don’t really know much about—things to address sleep, to disrupt healthcare—three to five years for sure we’re going to see things like that in the marketplace, and I think we will see continued behavioral change and adoption in numerous states. We’ll be focused, but we will continue to grow our footprint to some degree. I think you’ll see some loosening of restrictions at a federal level, but I’m not convinced we’re going to see massive legalization change in the near term.

Cassie Neiden Tomaselli is a contributing editor to Cannabis Business Times and its sister publications Cannabis Dispensary and Hemp Grower.

Parallel Chairman & CEO Beau Wrigley Talks CPG, R&D and Market Expansion

April 15, 2021 by CBD OIL

Multi-state, vertically integrated cannabis operator Parallel—run by the former CEO and namesake of the Wrigley Company William “Beau” Wrigley Jr.—made headlines earlier this year after announcing the company would combine with special purpose acquisition company Ceres Acquisition Corp. in a $1.9-billion deal expected to close this summer. The merger would allow Parallel’s team to make a public offering while continuing to grow the business through mergers and acquisitions.

Wrigley outlines the benefits of the deal, Parallel’s market expansion strategy, the company’s clinical research partnership with the University of Pittsburgh School of Medicine, as well as why he believes there’s still “a ways to go” before cannabis can become a true consumer packaged goods (CPG) industry.

Editor’s note: A condensed version of this article originally appeared in April 2021 issue of Cannabis Business Times. It has been updated to include details from the company’s Windy City Cannabis acquisition in Illinois, as well as the recent termination of Kim Napoli, Parallel’s former senior director of corporate social responsibility. This interview has been edited for length and clarity.

Cassie Neiden Tomaselli: What enticed you to participate in this industry, and how do you see cannabis evolving as a consumer packaged good (CPG)?

Beau Wrigley: What got me into it was health and wellness. When I really started to understand cannabis—going back a couple years—I realized that it really has the potential to truly improve people’s quality of life. And obviously I’ve been successful and fortunate to run a couple different businesses. But when you can have a business that brings that to people, potentially all over the world, it’s a pretty high calling. And it’s pretty great to be involved with the foundational aspects of an industry that’s new.

On the CPG side, it’s interesting. Obviously, that’s my background; I spent many years in CPG. There are parallels, pun intended, to CPG with this, but I think it’s going to be a while before this really looks like a CPG business. You’ve got a highly regulated environment, and I think a lot of people get overly optimistic about legislative changes that are going to change things dramatically in the near future. I think it’s a little further out. Things like being able to sell outside of regulated stores is a big issue, and that doesn’t necessarily match up with your traditional CPG. A retail environment and what you do with a retail environment does match up with CPG, but you’ve got regulations on packaging and you can’t ship products across state borders. And then every state has a different regulatory environment, so you don’t have any consistency for mass marketing. So, there’s still a ways to go from a CPG standpoint.

CNT: While the industry is continuing to advance, what ways can Parallel enter the mainstream, drawing on the experience that you have with the legacy Wrigley brands?

BW: I think what we bring to the party is legitimacy because, frankly, my name and reputation for quality, consistency, efficacy, doing the right thing in terms of building companies, taking care of employees, developing great cultures. Our intent is to create a gold standard in this industry. We’re not necessarily trying to be the biggest, but our intent is trying to be best from a compliance standpoint. So I think we can set the table in that regard, and then that will give people more confidence in the industry as a whole. Then the way we approach it in our retail stores is very much one of education, and that’s just a matter of time—to educate people on these amazing benefits of cannabis.

CNT: Parallel’s expansion strategy seems to be that you go very deep into the states that you’re in (Florida, Massachusetts, Nevada, Pennsylvania, Texas), instead of rapidly moving into multiple states. How do you think your focus will help the Parallel company over the long term?

BW: I feel strongly about this: Businesses are more successful when they’re focused. Now, you need to be focusing on the right things, and that’s what sometimes trips other businesses up. And I love our footprint. We are in high population markets with a relatively limited number of licenses on a comparable basis. We’re always looking at different markets, and we have applications in for licenses in a couple different states. But to go out and really add to that footprint, [whereas] we could do so much with our existing footprint—it’s like, why would you open up another front? I think it will serve us in terms of the depth of our customer base and the ability to build a strong business and be more competitive longer-term.

CNT: Parallel recently acquired Windy City Cannabis, which will give the company a significant presence in Illinois’ medical and adult-use market. What made Windy City specifically most attractive to Parallel as a point of entry to the state?

BW: I would say several things. One, it has four stores up and running and a viable ongoing business, so it’s not starting from scratch. Two, they have two more stores, which will be opening shortly, so it will be a total of six against the cap in Illinois currently of 10. So it’s a significant store count for us with significant revenue that is anticipated to flow through those stores very quickly. Three, I like where the stores are because they’re dispersed throughout the state in places where, in many cases, there’s less competition. I think sometimes that’s overlooked. [Being] in the middle of the city can be good, and there can be volume and traffic there, but there also can be a lot of competition from that. It gives us a foothold continue to expand our business and expand our brand. [And] we were able to acquire this company, pending approval [from the Illinois Department of Financial and Professional Regulation], at the right price.

CNT: Could you share more details about the Ceres business combination announcement? How does this set you up for your upcoming public offering?

BW: We’re very pleased with the relationship with the Ceres folks. They’re knowledgeable about cannabis, which is really great. And they do bring a network and a certain expertise in media and entertainment, which is highly relevant, not from a licensing standpoint necessarily, but more from the challenge that I think every company, whether it’s CPG or otherwise, faces today which is: How do you reach your consumers? And in our case, we have multi-generational consumers who are 21 to 80 [years old], and it’s all about really unlocking the code to how do you do that.

And I think they can be very helpful for the company in that overall relationship. Obviously the transaction will put more cash in the piggy bank, so to speak, so it allows us to keep investing in a whole host of meaningful initiatives that we have as a company. And the timing is right now because people are beginning to take a harder look at the fundamentals on what makes a good company in this business. In the early days it was, “If it’s a weed stock, I want in. I want to say I own a piece of that.” But now people are starting to say, “OK, wait a minute, there are differences between these companies.” There’s differences in the boards of the companies, there’s differences in the footprint. Another difference for us, for example, is our intense focus on R&D and innovation, and we invest a lot in that. There are a lot of other companies that aren’t really doing that to the same degree.

CNT: The Boston Globe and MassLive reported that Senior Director of Corporate Social Responsibility Kim Napoli was recently terminated as a result of a breach in Parallel’s conflict-of-interest policy—because Napoli’s husband, Jonathan, had acquired a license to sell cannabis in the state of Massachusetts. Can you confirm these reports?

BW: Yes, this is 100% a significant conflict of interest. We have had a clear and strict policy, and that policy is that you cannot be employed by us and be in a competing business. It’s not about an individual, it’s not about social equity. If someone was working at your donut shop and opened a donut shop next door, or frankly, anywhere—and you had intellectual property, you had plans, products, would you want them in your donut shop when they’re going to be in competition with you? It’s a policy that protects the company and it also protects our associates.

I have great respect for Kim, she’s done a lot for the company. We promoted her within the organization when we purchased [New England Treatment Centers (NETA)].

Editor’s note: Cannabis Business Times/Cannabis Dispensaryreached out to Kim Napoli regarding her termination from Parallel. Napoli declined to comment on the record.

CNT: There are reports of some fallout from the decision. How are you communicating this decision to your social equity partners as well as your employees and your other stakeholders?

BW: It’s a tricky one, it’s a fair [question]. I am not aware of significant fallout. I think that’s sensationalized media. We have had conversations with anyone who wants to raise it. We have had general communications within our organization and others. We also believe in, to the degree possible, respecting people’s privacy within the company, so we’ve tried to navigate that territory as carefully as possible.

CNT: Is there a plan now to fill the position of senior director of corporate responsibility?

BW: Absolutely, there’s a plan to backfill to continue to add to all of our efforts across the entire company in every market we function in. I am a huge, huge supporter [of corporate social responsibility]. That’s why we have all the policies in place that we do, and all the benefit programs. And we’re taking action. It’s not about writing a check. It’s not about saying things. It’s about doing things.

CNT: What are some of the Corporate Social Responsibility (CSR) initiatives that the company is taking?

BW: We kind of have a three-pronged approach. We have an external approach to it with our partners out there, and that can be Cannaclusive, or CultivatED, or Minority Cannabis Business [Association]. We have an internal aspect, where we have Employee Resource Groups: we have Black Empowerment Network; we have a Pride group [Pride at Parallel]; we’re launching shortly a women’s initiative throughout the company [Women Impact Network]; we have Parallel Cares, where we match donations that people want to direct in certain ways. And we have an employee relief fund, so if someone needs help at a critical time, we’re there as a company to stand by. So we have a lot going on, and it’s very deep and thorough. I think people are going to start looking into companies like ours and saying, “Wow, OK, they really get it and they’re really doing the right thing in spades.” That’s what differentiates us as a company.

CNT: Why do you believe it’s so important for the cannabis industry in particular to take on these initiatives like you’ve just outlined?

BW: It’s important for two reasons. One: it’s a young, newly developing industry; it’s always good to start with the right kind of foundation—and not do something and try to convert later. And I think it’s important again to set the example because there are a lot of people who haven’t run companies who are in the cannabis business, so I think it’s important for them to start thinking about these things. And then there’s social history with regards to cannabis, [such as] incarceration of people for past offenses during different times. All of this is not saying we can go back and change history; we can’t, but we can do things right going forward. But doing things right going forward is in a holistic approach, not just trying to solve for one thing, [for example,] expungement. Great idea, but let’s be holistic and make sure we develop a workforce that’s inclusive.

CNT: Can you talk a little about the partnership with the University of Pittsburgh School of Medicine for clinical studies on sickle cell disease, and why you’re focusing there?

BW: We’re excited about our relationship there because something the industry has lacked for many, many years is legitimate research to prove out many of the things that people already know and feel. Even though it’s anecdotal, it’s improving their quality of life, so it will be nice to substantiate some of that over time. Sickle cell is the tip of the iceberg, we’ve got lots of things we want to do with [the University of Pittsburgh School of Medicine] over time. It’s a good place to start, primarily because [sickle cell disease is] something that afflicts a disproportionately high number of African Americans. And African Americans have been disadvantaged by the whole cannabis industry, and that’s something that has to be acknowledged. Maybe we can come back and really help that particular population with one of the first initiatives. But there will be other studies addressing different [ailments] as well.

CNT: What about your in-house R&D? Are there any other products or delivery methods that you’re particularly excited about?

BW: I would say beverage is very exciting. And we have in-house technology on beverage, which I think is very good, [that] allows us to basically emulsify cannabinoids in liquids—some with mild taste effects and others that are actually tasteless. So we feel that in the coming months here we’ll be able to launch some products and differentiative in a very good way in that category.

CNT: What about running a vertically integrated cannabis company keeps you up at a night?

BW: What keeps me up at night I would say is regulatory uncertainty. The number of regulatory bodies, and in some cases, their propensity to change the rules. It’s very difficult to run any business when the rules are changing all the time and when you’re really highly restricted. It’s an education process, but unfortunately in many cases, it takes quite a while to educate regulators on benefits of doing things certain ways. It’s not the industry trying to take advantage, it’s just, [they’ve] got to understand: the beliefs of the 1960s don’t hold muster anymore, and we must move into the next century here. And as such, we need to think about the economic benefits and the employment benefits, and work more hand-in-hand with the industry. I would say the other thing that keeps me up at night is the possibility that maybe a less sophisticated operator will cut corners and do something that could be detrimental to the industry that we’re trying to create the gold standard for in terms of compliance, relationships and the like.

CNT: What helps you sleep at night then?

BW: I have a very supportive family, which is No. 1, and that’s pretty awesome. And it’s just experience dealing with these sort of things. I’ve seen a lot in my years and career and so don’t tend to get too flustered by things, and [I] know what we can’t control and how we are going to find our way through it. Every day in this business you wake up and the landscape has changed to a certain degree, so you just have to look at it and say, “OK gosh, I thought we were going to go here, but we’re going to have to maneuver a little because now there’s a mountain in the way.” It really comes down to your attitude and approach and your experience I think, so I sleep pretty well.

CNT: Where do you see Parallel in the next five years?

BW: Lots of growth. We’re going to continue to innovate, diversify our portfolio. Beverage is part of that. Rare cannabinoids is part of that, and that’s the individualized cannabinoids a lot of people don’t really know much about—things to address sleep, to disrupt healthcare—three to five years for sure we’re going to see things like that in the marketplace, and I think we will see continued behavioral change and adoption in numerous states. We’ll be focused, but we will continue to grow our footprint to some degree. I think you’ll see some loosening of restrictions at a federal level, but I’m not convinced we’re going to see massive legalization change in the near term.

Cassie Neiden Tomaselli is a contributing editor to Cannabis Business Times and its sister publications Cannabis Dispensary and Hemp Grower.

Understanding Delta-8-THC: Where Does it Come From?

April 14, 2021 by CBD OIL

Delta-9-tetrahydrocannabinol (THC) may be the most well-known cannabinoid in cannabis, but according to the National Hemp Association, scientists believe that there may be more than 100 different cannabinoids in cannabis.

One cannabinoid that has recently emerged in the market is Delta-8-THC.

As previously reported by Hemp Grower, the National Cancer Institute defined Delta-8-THC in a statement as an analogue of THC that contains neuroprotective properties that can increase appetite and reduce nausea, anxiety and pain. It produces some psychotropic effects that are believed to be less potent than Delta-9, the primary form of THC found in cannabis.

The legal status of Delta-8 remains unclear, as some say it’s federally legal under the 2018 Farm Bill, while others consider it a loophole.

“In terms of the legality, I think everyone is confused,” said Scott Churchill, the director of scientific operations at MCR Labs, an independent cannabis testing laboratory based in Massachusetts. “There are people that say it’s illegal because it’s a derivative of cannabis, which I believe is how the original prohibition was written, stating that anything that is a derivative of cannabis is illegal. But then the hemp farm bill came out and depending on that language [in the Farm Bill] is whether or not it created a loophole for non-Delta-9.”

Delta-8 is reported to have similar psychoactive effects as Delta-9, but the effects are much more subdued, said Roger Brown, the president and founder of ACS Laboratory, a cannabis, hemp and CBD testing laboratory in Florida.

Delta-8 vs. Delta-9: Chemical Differences:

The chemical structure between Delta-8 and Delta-9 is similar, as Delta-8 is just an isomer of Delta-9, Brown said.

“The only difference between Delta-8 and Delta-9-THC is where that double bond is located on the chain of carbon atoms,” according to ACS Laboratory. “Delta-8 has a double bond on the 8th carbon chain, and Delta-9 has a double bond on the 9th carbon chain. This seems like a small distinction, but it’s significant enough to produce slightly different cognitive and physical effects.”

And Jeremy Sackett, the founder and owner of Cascadia Labs, a cannabis-centric testing laboratory in California, agrees, as he said there is a minimal difference between the two isomers because essentially the only difference is the double bond location.

RELATED: Should Your Business Invest in Delta-8-THC?

How is Delta-8 Made?

As previously reported by Hemp Grower, Delta-8 is a naturally occurring cannabinoid, most commonly converted in a laboratory from Delta-9-THC or CBD (cannabidiol).

There are several standard operating procedures (SOP’s) that can be used to extract Delta-8, said Allison Justice Ph.D., CEO of The Hemp Mine, a vertically integrated hemp CBD business in South Carolina.

Although The Hemp Mine does not make Delta-8, Justice has gained an extensive knowledge of the extraction process from others in the industry and from being in the industry for more than ten years. She broke down the Delta-8 extraction process:

The flower is extracted so that the material that’s left is an isolate, or pure CBD, and then that isolate goes through an extensive process to get turned into a distillate, Justice said.

“Once it is isolate, a solvent is added to melt it down, and then an acid reagent is added to cause the reaction,” Justice said. “The material is then neutralized with an alkaline material, and this it is distilled to clean it up.”

The final distillate ends up being 60% to 70% Delta-8 and roughly 2% to 6% Delta-9, but if a company is trying to make a compliant hemp product, it has to be under the 0.3% THC limit, Justice said.

“Certain companies that are doing it properly will run it through extensive chromatography to remove the Delta-9 or dilute it down to be compliant [with the U.S. Department of Agriculture’s (USDA’s) final rule on hemp],” Justice said.

From there, the distillate is sent to the lab for testing.

As Delta-8 is a relatively new cannabinoid, the testing process is not always perfect, as many labs do not have the proper SOP’s or equipment in place to properly separate Delta-8 from Delta-9, Justice said.

Delta-8 Testing and Measurement

According to the ACS Laboratory website, the lab uses “Ultra High Performance Liquid Chromatography (HPLC) machinery to measure Delta-8-THC potency in flower, edibles and extracts.”

“There are multiple different ways that a testing laboratory could analyze for Delta-8, but the most common would be liquid chromatography methods,” said Sackett of Cascadia Labs.

The testing process begins when a Delta-8 sample is brought into the laboratory and that sample is extracted. When the sample is extracted, it means the lab is trying to pull out what they are looking for via Delta-8, Delta-9, pesticides, solvents, etc., he said.

“Then, we extract the sample and try to leave behind any interferences, such as the plant material, fats and other stuff from the concentrate, so we can extract exactly what we are looking for,” Sackett said. “That extraction goes onto an instrument, and we run it through the instrument.”

After the sample gets run, it gets measured against a known reference material, and then the lab can record the percentage of Delta-8 or Delta-9 in the sample, he said.

Brown echoed this sentiment, noting this was part of the ACS process, as well.

“When there is a known standard, you measure the sample that you receive against the known standard, and then you can produce results based on the potency level or percentage of the known standard,” Brown said.

In general, Sackett said he had not experienced any significant challenges to test for Delta-8 in cannabis flower or cannabis products; however, he said the challenges related to Delta-8 are the same challenges associated with any other minor cannabinoid, which is the availability of reference materials and non-standardized methods.

“Up until fairly recently, maybe within the last five years or so, reference materials were not available for Delta-8,” Sackett said. “The availability of reference materials has been a limiting factor for the ability to test for these alternative cannabinoids, but now it is available.”

Read more Hemp Grower Delta-8 coverage here.

Remembering Cannabis Entrepreneur and Coach Sara Batterby

April 14, 2021 by CBD OIL

At the end of March, New York state lawmakers approved the Marijuana Regulation and Taxation Act, making it the 17^th state in the U.S. to legalize cannabis for adults 21 and older. The bill establishes a new regulatory body, the Office of Cannabis Management, to oversee the new adult-use program, in addition to the existing medical and hemp markets. Other provisions are detailed in the bill; however, much of the regulatory framework has yet to be decided, leaving the 10 existing medical cannabis companies operating in the state in limbo. Cannabis Business Times spoke with Hillary Peckham, chief operating officer of Etain, an independent, women- and family-owned medical cannabis operator with a cultivation facility and four dispensaries in New York, to get her take on the bill and how the company plans to transition into the adult-use market.

Michelle Simakis: What aspects of New York’s adult-use cannabis bill that have been outlined so far do you like?

Hillary Peckham: I think it’s really incredible they have passed legislation with an initiative for diverse business ownership. That’s something we really support, especially trying to foster small business social equity licenses and MWBEs [minority- or women-owned business enterprises]. (Editor’s Note: The bill indicates the state’s social and economic equity program will include a goal to allocate 50% of licenses to a minority- or women-owned business, distressed farmers or service-disabled veterans.) As a woman-owned business, we’re very supportive of that effort.

MS: What are your concerns about the bill?

HP: Things we are looking out for, which we won’t know more until regulation, would be ensuring that there’s a commitment to the medical program’s success after legalization starts, because most states you see the medical program decline or basically go away. And to make sure the support for [MWBE] businesses isn’t just to give them a license, but that there’s ongoing support and commitment to fostering growth for those companies that extends beyond just the initial licensing. There [are] proposed startup loans. I think that will be really important because cannabis businesses are very capital intensive, and it’s really hard to find capital without traditional financing. Additionally, in other industries New York set goals for purchasing from MWBEs for state contracts, and something similar to that to make sure there’s ongoing commitment to support and purchase from suppliers or retailers in those special category licenses I think will be great.

MS: As it’s written now, medical cannabis companies can remain vertically operated and add up to four stores, in addition to the four medical dispensaries you already have. Do you plan to transition into the market, and what would be the first step?

HP: We are still waiting on details on what that’s going to look like. We can add four more stores. Two need to be in underserved areas, and there’s no definition for that. So we’re still trying to figure out what that means and where we can site. If they can make medical changes soon, that will be really great, because we’ve been waiting years now for some modernization to the program, and I think that it will be really great for patients to get access sooner and for expanded product capacity. We’re still committed to the medical program.

Hillary Peckham, COO, at Etain’s cultivation facility. Etain is a vertically integrated, medical cannabis company in New York’s medical program but plans to transition to the adult-use market. Photo courtesy of Etain

MS: As of April 13, there are more than 147,600 registered patients in New York’s medical cannabis program. In previous interviews, you’ve noted the importance of expanding qualifying conditions in the medical cannabis market to improve access, which this bill includes.

HP: Honesty I think what they’ve done is really fabulous. If the doctor thinks you will benefit with medical cannabis, then you can get access to it. So instead of having a legislated list right now, it will be much more open. It’s really critical, and it’s something we’ve been looking forward to now for years. It treats [cannabis] much more like a regular drug.

I think we’ll see a holistic change to medical program.

RELATED: New York-Based Etain Continues to Innovate Despite Limitations of Medical Program

MS: As an already established medical cannabis company in the state, what would you like to see as you transition and as the adult-use program launches?

HP: I think making the medical changes as soon as possible will really have a positive impact on the program and start to expand it, which will help drive scaling, etc., and by getting more patients in the medical program and giving more access. Right now, the thing that we are really just anxious about but can’t really comment on is regulation, or how this is going to work. There are still a lot of unanswered questions that I think have left everybody in limbo. There’s so much that needs to be figured out in the next steps that I don’t know what the path is going to be.

There are still a lot of unanswered questions that I think have left everybody in limbo. There’s so much that needs to be figured out in the next steps that I don’t know what the path is going to be.

MS: Do you have a proposed timeline or an idea of when you’ll learn more?

HP: Not yet, but we are scheduled and starting to have some conversations to try and figure that out. In the bill there are some effective dates of certain milestones, [for example,] home grow is effective for medical patients six months from the passage of the bill, so I would assume that is in line with when they are going to start making some changes to the medical program at a minimum. But there is a big administrative task to start up a new Office of Cannabis Management. So that is a huge hurdle that will just take time.

MS: What are your thoughts on the fact the bill creates a new regulating body, shifting responsibility of managing both the medical and the new adult-use program to the future Office of Cannabis Management governed by a cannabis control board?

HP: You’ve got medical, adult-use and hemp all under one regulating body, which I think is a great idea because all three of those impact each other. Treating them holistically will hopefully streamline regulations and at least people will be conscious of changes they make. Because the hemp market and access to CBD did have an impact on the medical market and the products that you can sell, so it’s important to have a regulating body that’s aware of the impact it’s going to have.

MS: What is the first step you are taking to adjust your business (both cultivation and retail) to cater to an adult-use market and most likely increased demand?

HP: Right now, one of the biggest changes to the medical market that will be relevant in adult use is that we [will be able to] sell whole flower. So, being able to [sell whole flower], which is the most requested product we’ve had since the beginning of the program, I think will be a really important change. From an operations standpoint, on the backend, [we need] to build out additional cultivation square footage and invest in more equipment for different product forms because in adult-use, there will be more allowable forms like edibles and things like that that we don’t currently have in medical program. The first step is [offering] whole flower because that’s the really important one for patients, and the rest is just scaling the business to get ready.

The first step is [offering] whole flower because that’s the really important one for patients, and the rest is just scaling the business to get ready.

MS: What changes in cultivation will you have to make to prepare to offer whole flower?

HP: We do have ground flower now. Part of that is to make sure it’s metered. When you have a tablespoon of ground flower that you’re then going to vaporize, there’s a certain dosage that’s associated with that, but it has to be ground to less than 5 mm, which is a very small particle size. A lot of times it can be confusing for patients or it’s not what they are familiar with using, so being able to have full flower will be a really good step.

We’ve been ready for this kind of change, and our process will need to change because curing will come into play whereas mostly the medical program has been focused on sterilization and making sure that it’s pharmaceutical grade before it goes out to the patient. So there will be some changes in process, but I think it will not be a huge impact.

Etain’s newly rebranded packaging Photo courtesy of Etain

MS: What challenges do you anticipate in the transition?

HP: It’s our intention to stay women-owned and scale the business, and just figuring out how to do both. Because scaling takes access to capital, and we are trying to figure out our next steps in how to accomplish that, so that’s just something that’s on my mind. Are we able to reach the scale that we need or want right now with the resources we have? And then it’s just waiting for the regulations.

MS: What are the key opportunities for Etain?

HP: Having an existing footprint and just being able to leverage all the expertise we’ve had now for over five or six years, I think will be a really positive thing for us in this next stage. We know how to make a consistent, high quality product that our patients really like, and now we’re able to offer that and use that experience to a broader audience.

MS: You’ve noted in past conversations that the innovative consumption methods you offer were important to Etain to improve access to medical cannabis, but there were also many limitations in the medical market. How will you change/expand your offerings with more options in the adult-use market?

HP: I’m really excited about offering some of our existing products in an adult-use setting, with more applications. Like our water-soluble powder … I think that will be really popular because you can cook with it, you could put it in drinks, like cannabis cocktails. My sister [Keeley Peckham, chief horticultural officer], in addition to being in charge of horticulture, is an avid baker, and so she’s very excited about the opportunities with some edibles. We’re starting to reach out to some companies in New York City to try and gain some expertise, especially being in New York with so much culinary expertise. So it’s exciting to be able to think about that and start to plan for it, but we haven’t made any concrete decisions at this point.

MS: As only one of 10 cannabis companies operating in the state now, among multistate operators like MedMen and Curaleaf, how are you positioning your business to get ready for increased competition?

HP: We just initiated and launched a total rebrand of the company. So establishing new packaging and making sure we have messaging, and a better way of communicating who we are already to people. We reformulated all of our products and the packaging and just started launching that March 1, when we got it all in stores. We opened our flagship Manhattan store in August, so we’ve started to establish more of a footprint and branded materials. We are already starting to account for the fact that there will be increased competition. We also have a lot of experience that we can leverage that will be helpful moving forward. The new marketing materials also communicate our founding story and why we are doing this.

Fair Warning: Colorado Auctioning Off Cannabis-Themed License Plates

April 14, 2021 by CBD OIL

Cannabis News

Footer