marijuana business - Cannabis Law Group

Recreational Cannabis Sales Begin in L.A.

Cannabis Law Group — Wed, 31 Jan 2018 17:18:17 GMT

Three weeks after recreational cannabis sales officially became legal in California, select Los Angeles businesses were allowed to open their doors for

commercial sales. While the Adult Use of Marijuana Act made recreational sales legal in the state Jan. 1, it is still up to city and county governments to decide for themselves whether they will issue a ban or set up their own guidelines and regulations. Implementation of guidelines takes time, and some cities, Los Angeles included, were not able to get them in place before the rollout at the beginning of the year.

Los Angeles City Council approved commercial marijuana sales early in December, and by mid-January about two dozen businesses in the city had been granted temporary permits. Three of those businesses had state approval secured and were able to open for business that week, according to an NBC News report. More regulations will have to be met down the road to achieve legal status permanently, the Los Angeles Department of Cannabis Regulation told NBC.While this was happy news for the city, the delay was frustrating to some dispensaries, who wanted to follow proper legal channels but felt they were being punished while hundreds of unlicensed operations profited from recreational sales. Not only are these businesses operating without regulation, but they also are not paying taxes, those who have followed procedure complained. Officials in L.A. said they intend to tackle black market sales and shut down unlicensed operations.

That is why it is so crucial for serious owners to speak to our Los Angeles recreational cannabis business lawyers. Our experienced California marijuana attorneys are on top of all the latest laws and regulations to keep your business in compliance with local and state laws. While cutting corners might be tempting in the short term, such a decision can have devastating effects, potentially costing you your business, your hard earned revenue, and leading to possible legal ramifications. If you’re looking to start a business for the first time, we can walk you through all the necessary steps to establish your company and guide you through the licensing process with ease.

Recreational cannabis has been a longtime coming in the state of California, which was the first to usher in medical marijuana more than 20 years ago under the Compassionate Use Act of 1996. The state lagged behind a few others who have been reaping the benefits of adult use laws, with Colorado, Washington, Alaska, Oregon, and Washington, D.C., opening the recreational floodgates.

Illegal adult use has been prevalent in Los Angeles for some time, with residents taking advantage of black market availability. Others tried to stay above board by obtaining a medical marijuana card, though it is a not-very-well-kept secret among Californians that a recommendation for a card is easy to get from the right doctor, with little proof necessary of an ailment. Leaders in Los Angeles hope that through recreational marijuana legalization, they can weed out illegal distribution channels and smooth out the system for residents to have safe and easy access to cannabis. It also will clear the way for the city to collect tax revenue previously lost to an illegal economy that has been thriving under their radar.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients, defendants, workers and those facing criminal marijuana charges. Call us at 949-375-4734.

Additional Resources:

Los Angeles Marijuana Dispensaries Begin First Legal Recreational Sales, Jan. 20, 2018, By James Rainey, NBC News

Cautious Optimism Surrounds Marijuana Business Stocks

Cannabis Law Group — Mon, 08 Jan 2018 14:37:42 GMT

While there are lingering concerns around the cannabis industry, with the federal government scrutinizing state

legalization measures and uncertainty about the effects of tax reform and unemployment rates, there is still a lot of optimism surrounding marijuana industry stocks in the U.S.

Cannabis stocks saw a spike around the holiday season, bolstered by an increase in spending overall in November of 2017. Some reports even indicated marijuana and marijuana products were a popular gift this year. Our marijuana attorneys urge you to check local laws and only purchase, give and transport commercial products legally.

With reports showing possible economic growth in the U.S., it could mean a continued upswing for an ever-expanding marijuana market. The right factors seem to be in place to potentially see more people investing in the industry and more consumers with expendable income to buy recreational marijuana and related products.

This trend is expected to continue with California recently opening up legal recreational marijuana sales in the state, thanks to the Adult Use of Marijuana Act, ushering in the potential for a great deal of commerce in one of the nation’s biggest markets. Cities across the state were able to decide for themselves whether to participate and how, with major markets such Los Angeles throwing their hats in the ring.

According to an analysis of numbers from the North American Marijuana Index, the end of 2017 saw much growth for cannabis stocks in the U.S. This was despite overall markets (Dow Jones Industrial Average, NASDAQ, and S&P 500) falling the week of Christmas. This is good news for marijuana industry investors as to the strength of this market.

However, our California marijuana business lawyers know these investments are still not meeting full potential due to nationwide concerns over Attorney General Jeff Sessions’ looming desire to reign in legal sales. Even though 30 states have now legalized marijuana for either medical or recreational use (or both), cannabis retains its Schedule I status at the federal level, making it akin to Heroin and cocaine despite being non-lethal and having medical benefits. At the moment, a stance from the White House is unclear, and the legislative branch is embroiled in other issues.

The best bet before making any moves in the cannabis industry, whether in the medical sector or in new recreational markets, is to seek sound legal advice to help navigate the ever-changing legal terrain. We are still hopeful that the overwhelming benefits of the cannabis industry will overcome obstacles, particularly the hefty tax revenues brought in by the states. But our primary focus is on the laws and the uncertain climate we are entering.

Our neighbors to the north in Canada have more to celebrate, with recreational legalization tracking to be put in place in the country this summer. They too saw a jump in cannabis stocks going in to the holidays, according to the Canadian Marijuana Index, while overall markets were unsteady. The North American Marijuana Index is calculated using the leading stocks among businesses with a strategy focused on the legal marijuana industry, with further division between the U.S. and Canadian markets.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Marijuana Index Gains as Cannabis Stocks Cheer Consumer Spending Report, Dec. 22, 2017, By Brandon A. Dorfman, Pot Network

More Blog Entries:

Investors Eye Marijuana Stocks, Jan. 23, 2017, L.A. Marijuana Business Attorney Blog

Marijuana Company Embroiled in Branding Dispute

Cannabis Law Group — Mon, 04 Sep 2017 13:57:53 GMT

There are many considerations to take into account when starting a marijuana business, and branding is one of those. The marijuana industry on the whole prides itself on branding that is bold, cheeky and perhaps a little more risque than most. But cannabis start-ups must be careful to research whether certain names are not only good for marketing, but whether they are actually available. Otherwise, owners may find themselves embattled in a lawsuit alleging trademark infringement or copyright infringement.

Brand infringement is a serious, and potentially costly, risk. Companies are increasingly being proactive against this damage by monitoring their brand name and competition – especially online. Protecting yourself from such action, as well as protecting your own brand from infringement, is important.

When competitors, affiliates or other third parties take advantage of your brand by using your trademarks, ideas, products and keywords to confuse similar aspects of your brand as their own, it can cost you business. 15 U.S.C. 1114 outlines provisions for trademark infringement, innocent infringement and remedies. Our marijuana business attorneys in California can help.

Recently, an Ohio company that makes adhesive took legal action against a marijuana grower in Nevada for trademark infringement. Although the two products are dissimilar and are sold in very different geographic markets, the product name is identical. Defendant produces a potent hybrid marijuana strain that it has coined, “Gorilla Glue #4,” and it’s sold in dispensaries in some 24 states that have legalized marijuana. But the family-owned glue maker in Ohio says the branding of the marijuana company creates an unwanted connection, which plaintiff firm says is likely to harm its good name and branding.

Plaintiff is seeking unspecified financial damages, including any and all profits that were generated as a result of defendant’s sale of the aforementioned product. Specific allegations are trademark infringement, dilution, unfair competition and “cybersquatting.” Defendant is accused of trading on the goodwill and reputation of the Ohio-run glue company by marketing products under a confusingly similar name.

In a press release, defendant argued the entire marijuana industry is jam-packed with cultural references, and their brand is no different. The name, they argued, has nothing to do with the glue-making company. Rather, it was derived when a grower trimming a new plant strain realized the resin on the flower caused his hands to stick to his phone like glue. The Gorilla Glue marijuana strain has grown immensely in popularity since it was launched in 2012.

Of course, this is isn’t the first time this kind of litigation has arisen in the cannabis industry. However, it is arising at a time when the industry has much more clout that in the past, when underground guerrilla marketing was the norm. Defendant argues a loss for them would set a poor precedent for cannabis industry intellectual property rights. Plaintiff says the complaint has nothing to do with any negative stance on marijuana use – medical or otherwise – but rather that it’s valuable brand has been intentionally heisted by a company that played on its reputation for high-quality “sticky” adhesives.

Many cannabis companies are closely watching the outcome of Gorilla Glue Co. v. GG Strains, weighed in the Ohio Southern District Court, which it is believed could directly impact future trademark cases and intellectual property rights within the cannabis industry.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Gorilla Glue to weed grower: Dude, quit using our name, Aug. 16, 2017, By Randy Tucker, Cincinnati.com

More Blog Entries:

What the State’s New Accela Software Means for Cannabis Business Licenses, Aug. 4, 2017, Los Angeles Marijuana Lawyer Blog

Can California Cannabis Companies Combat Racial Inequality?

Cannabis Law Group — Sun, 27 Aug 2017 16:14:34 GMT

Here in Oakland, those convicted of marijuana trafficking are getting a new opportunity to launch California cannabis businesses under the city’s Equity Applicant system. The goal is provide longtime residents, typically those who live below the poverty level – including those who have prior convictions for marijuana sales – get assistance in starting a cannabis business.

City leaders say the goal of the Equity Applicant system is to right the fallout of many years of a failed “War on Drugs,” which hit poor minority communities especially hard. As USA Today recently reported, nearly 80 percent of those arrested for marijuana crimes in 2015 were black. Conversely, whites made up just 4 percent of those arrested. Meanwhile, the city’s population is evenly divided – 30 percent black and 30 percent white. What this shows, officials say, is a clear bias in policing, especially because we know that blacks and whites use marijuana at rates that are comparable.

Police received formal orders in 2004 to make the majority of marijuana offenses – particularly possession – the lowest priority in terms of enforcement. It’s even lower than jaywalking. Still, businesses that cultivate, manufacture and distribute the drug are overwhelmingly white. That’s true in Oakland and across California. City leaders want to change this.

In some jurisdictions, leaders pointed out, no marijuana business permits were given to any people of color. A system that does not incorporate equity applicant opportunity further perpetuates inequality, leaders say.

The equity system acts much like a form of affirmative action. It mandates that half of all new medical marijuana licenses be given to those who:

Have lived in Oakland for at least 10 of the previous 20 years;
Are low-income OR
Have a prior non-violent marijuana conviction.

Existing pot shop owners are not surprised at the move, noting Oakland has long been ahead of its peers when it comes to establishing progressive marijuana policy. It was one of the first municipalities in the country to establish a marketplace for medical marijuana. Many other jurisdictions borrowed from its regulatory framework in creating their own. The hope is the Equity Applicant system will help the city tap into talent that has long been underutilized.

One provider in Oakland, Harborside, serves an estimated 1,000 consumers daily. Harborside’s owner said both the clientele and the staff are reflective of the community’s racial makeup – something that is less common in similar operations in Washington, Oregon, Colorado and Alaska.

Primarily dominant within marijuana business ownership are white, middle-class operators. Part of this has to do with the fact that current regulatory schema tends to favor those who have access to family money and a no criminal record. Start up costs can be high, and many of those living in low-income neighborhoods simply don’t have the means. While many new business owners struggle with start-up capital, there is the option of a federal Small Business Administration loan. However, those who have poor credit or don’t have their own home to take out a second mortgage for the purchase of equipment and space are going to have difficulty getting an operation off the ground.

Officials say there was a long-perpetuated system of institutional racism that criminalized the actions of minority communities, while offering drug traffickers with lighter skin the opportunity to turn their operation into a legal business.

Local cannabis business owners say they don’t fear the competition, and that more competent business owners in this industry can only help make for a better overall market.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

California city to use pot shops to fight racial inequities, Aug. 1, 2017, By Trevor Hughes, USA Today

More Blog Entries:

Cases Out of Marin County Show Anti-Marijuana Sentiment Runs Deep, Aug. 8, 2017, California Marijuana Business Lawyer Blog

From Ghost Town to Green Town: Marijuana Business Buys Community for Cannabis Tourism

Cannabis Law Group — Wed, 23 Aug 2017 13:46:27 GMT

The town of Nipton, California is a small, unincorporated community in San Bernardino County bordering the Mojave National Preserve. An old cattle-loading and mining town, its population today fluctuates somewhere between 6 and 30. About three decades ago, a gold miner from Malibu purchased the ghost town. As The New York Times reported, the goal was to a community that could run on clean energy entirely of its own making. It was this foundation that recently attracted the business eye of a cannabis technology firm, which purchased the town for $5 million.

Now, owners of American Green Inc. say the goal is to turn the 80-acre community into an eco-tourism destination for conscious cannabis consumers. The fact that the city runs totally on a self-sufficient, off-the-grid energy system from a solar farm is likely to be attractive to many marijuana enthusiasts across the country. Already existing in the town is old western hotel, an RV park, a coffee shop and a handful of homes. American Green plans to expand the farm to manufacture and sell marijuana-infused water from the town’s aquifer. The company is also in talks with others in the marijuana industry business, in hopes of interesting them to relocate and bring more jobs to the tiny town.

As for whether it will be renamed, that’s not yet clear.

Such an undertaking is ambitious, to be sure. Since the passage of Proposition 64 last year, our Orange County marijuana lawyers have witnessed an influx of “ganjapreneurs” – entrepreneurs interested in getting in early to what is expected to be an explosive industry. While there is certainly money to be made on these ventures, it’s important that investors and business owners not get too far ahead of themselves. Consultation with an attorney experienced in marijuana business planning is essential – whether you’re buying an entire town or just a corner shop. There are still many legal pitfalls into which business owners could become ensnared.

Some of the common issues that must be addressed:

The federal government. Marijuana remains illegal under the Controlled Substances Act. Although the Obama administration eased its enforcement of these policies in states where the drug is illegal, the Trump administration – and U.S. Attorney General Jeff Sessions in particular – are planning to take a harder line. That could spell trouble for business owners – even those who operate within the confines of state law.

Banking. Although an increasing number of banks are willing to work with marijuana businesses, the potential threat of federal money laundering charges still looms. While there are some banking opportunities, less than 3 percent of the nation’s banks or credit unions serve cannabis clientele. Marijuana businesses that do establish a good banking relationship must have impeccable records and ensure their operations are totally in compliance with state laws and guidelines as laid forth by the Financial Crimes Enforcement Network.

Branding. This consideration is important for business, but also for legal purposes. You need to be extremely careful about how you brand and what you advertise. Failure to do so could result in unwanted attention from authorities.

If you are considering starting a marijuana business, our cannabis lawyers, with decades of experience, can help.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Marijuana company plans to turn town of Nipton, California into pot paradise, Aug. 4, 2017, Associated Press

More Blog Entries:

Influx of Indoor Marijuana Grows Increases California’s Power Needs, Aug. 10, 2017, California Marijuana Lawyer Blog

California’s Recreational Marijuana Laws Can Expose Cannabis Businesses to New Operating Expenses

Cannabis Law Group — Tue, 25 Jul 2017 13:36:51 GMT

The legalization of recreational marijuana use in California has presented many lucrative business opportunities within the cannabis industry. The Hill reports that Washington and Colorado surpassed one billion dollars in annual sales of marijuana in 2017 after legalizing its recreational use. California, by contrast, brought in two billion dollars of sales of medical marijuana in 2016. Cannabis business in California is projected to bring in five billion dollars in annual sales once the business provisions of the Adult Use of Marijuana Act take full effect in 2018.

Like any new business venture, however, new opportunities bring new challenges and expenses. For cannabis businesses which are prepared to manage these expenses, the opportunities can bring lasting cash flow to a growing industry.

Business Licenses: The majority of provisions in the Adult Use of Marijuana Act dealt with licensing businesses to sell cannabis products. According to the Desert Sun, the state is frantically working toward the “massive undertaking” of preparing its agencies to meet the Act’s January 1, 2018 deadline for issuing cannabis business licenses. While the cost of obtaining such a license has not yet been determined, it is highly likely that the cost of this “massive undertaking” will be passed on to consumers.

Once the state’s licensing process becomes established and more efficient, the cost of obtaining a cannabis business license will likely decrease. For now, however, cannabis businesses should be prepared to pay a hefty initial licensing fee. Additional administrative fees, fines, surcharges, taxes, and other costs may also arise. Businesses must allow for them in order to weather the revision of the cannabis industry.

Commercial and Industrial Rents: Bloomberg New reports on a trend among industrial real estate properties in Denver, Seattle and Portland. When Colorado, Washington and Oregon legalized recreational marijuana, the price of renting industrial space in major urban hubs increased dramatically. Research firm CoStar Group, Inc. expects the trend to continue across California, Maine, Massachusetts and Nevada, which have also legalized recreational marijuana.

One factor driving up rents is the unique needs of cannabis growers. Most entrepreneurs prefer small spaces which are easier to secure. In addition, federal law prohibits the growth of marijuana, which means those applying for California cannabis business licenses must demonstrate they already have the facilities to cultivate marijuana entirely within the state. The biological requirements of plant life must also be considered when looking for industrial space to rent.

Strategic Business Planning: As the cannabis industry undergoes massive changes in the wake of a regulatory revolution, business owners must plan for long-term growth. Leafly reports on the many different strategies which cultivators are exploring. Some growers are simply planning for massive expansion of their operations. Others are tapping a market niche by creating craft brands. Smaller cannabis operations are banding together to create co-operative groups, so that all members can access information and financial resources to adapt to the new cannabis industry in California.

The new 2018 business regulations for recreational marijuana can bring unexpected operating expenses and other challenges. Prepare for these regulations with a compliance action and financial planning.

The Los Angeles Cannabis Law Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Legal pot is driving up warehouse rents in Portland, Seattle, Denver, July 5, 2017, by Bloomberg News

More Blog Entries:

Issues with Regulated Marijuana Sales in California, April 10, 2017 by Cannabis Law Group

Update: LA City Releases Medical Marijuana Business Regs Draft

Cannabis Law Group — Tue, 27 Jun 2017 23:04:54 GMT

The City of Los Angeles has just released a draft of the “Commercial Cannabis Activity Requirements.” These are the essential regulations for the medical marijuana business in the City of Los Angeles. This document is 51 pages and must be posted for 60 days during a period for the public to make any comments they see fit.

The new regulations will cover various aspects of the recreational sale of marijuana. This includes recreational use marijuana cultivators, distributors, manufacturers, testing centers, and other parts of the marijuana business.As our Los Angeles marijuana business attorneys can explain, these new laws are an extension of what was already passed as Proposition M. Proposition M was enacted to replaced Proposition D that left no way for a marijuana business to enter the market in Los Angeles. Proposition D was essentially an indefinite moratorium on new medical marijuana businesses within city limits.

While there is a lot of material covered in the newly released draft regulations, let’s look at some of the more important aspects. First, an agency known as the City of Los Angeles Cannabis Department will issue what are being called Commercial Cannabis Activity Certificates of Compliance. These will be issued in the following order from first to last:

Any applications already operating in the city through an immunity under Proposition D.
Registry eligible applicants that are not involved in retail sales.
A restricted issuance to the general public based upon other regulations.
An unrestricted issuance based upon the Social Equity program.

While these regulations are not yet in effect, they are rather complex to someone who does not have experience working in the industry. Since we are talking about investing a lot of capital to enter the marijuana business, you want to make sure your money is well spent, and that you will have the best chance of traveling smoothly through the complex regulatory process. For this reason, the best thing you can do is to speak with an experienced marijuana industry attorney to make sure you are in full compliance with all regulations and taking the path of least resistance.

In addition to these city-wide regulations, there are also a lot of state regulations pursuant to the voter initiative that enabled legal sales of marijuana for recreational purposes. This is not to say that there is not a lot of money to be made in the cultivation, sale, and distribution of marijuana for recreational use, but again, it is essential that you make sure you are on the right side of the law. There also zoning requirements that will control whether or not you are allowed to have your marijuana business at a particular location, and, as we have seen in the past, there are many marijuana businesses that run into trouble if they are not in compliance with these various zoning ordinances. Those who oppose your business being in a particular location will be quick to call in any suspected violations of the zoning regulations.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Draft of Commercial Cannabis Activity Requirements, June 8, 2017, City of Los Angeles

More Blog Entries: Report: Colorado Marijuana Laws May Not be Safe, Feb. 5, 2017, L.A. Marijuana Lawyer Blog

Studies Show Cannabis Compound Can Halve Seizures in Epileptic Patients

Cannabis Law Group — Sun, 21 May 2017 14:28:04 GMT

Evidence continues to mount demonstrating the many health benefits of cannabis and cannabis compounds.

According to Medical News Today, researchers from Ohio State University recently conducted a study on the impact of a daily dose of Cannabidiol on patients suffering from a severe seizure disorder called Lennox-Gastaut Syndrome (LGS). The researchers noted a dramatic drop in seizure activity.

When seizure activity declines, not only does this improve quality of life for seizure sufferers, but it can also reduce the risks of physical damage that a seizure can cause. It is vital for patients with Lennox-Gastuat Syndrome and other serious disorders to have uninterrupted access to the cannabis products they need to remain healthy.

A Los Angeles medical marijuana business lawyer can represent owners of businesses who provide products to these patients and other customers and help them to ensure they are able to keep their doors open so they can continue providing this essential therapeutic service.

Study Shows a Dramatic Drop in Seizure Activity

Lennox-Gastuat Syndrome, or LGS, is considered to be one of the most severe types of epilepsy from which a person can suffer. Patients with LGS often experience many different kinds of seizures, including myoclonic seizures, tonic and atonic seizures, and atypical absence.

LGS affects anywhere from one in 50,000 children to one in 100,000 children within the United States. It typically develops when a child is between the ages of 3 and 5, and the condition is not a curable condition.

When providing treatment to sufferers, an individualized approach must be taken as LGS does not always respond effectively to common epileptic medications such as lamotrigine and valproate, which are designed to help control seizures. When patients do initially respond to these medications, they often develop a tolerance after continued use which reduces the effectiveness of the medications.

For families struggling with LGS, the new study, the results of which were recently presented at the 69th annual meeting of the American Academy of Neurology, could provide new hope. The study participants who had LGS took Cannabidiol every day for a period of 14 weeks and the frequency of atonic seizures they experienced fell by more than 50 percent. Atonic seizures can be particularly serious because this type of seizure, known as a drop seizure, results in a sudden temporary loss of muscle tone.

The study included 225 patients whose average age was 16. The patients included in the study had approximately 85 atonic seizures monthly as a result of their condition. Each of the patients who took part in the study had already failed to respond to an average of six medications to treat to treat their epilepsy. In addition to the cannabidioil, they were also using an average of three anti-epileptic drugs during the course of the study.

The drop in seizure activity experienced by these patients confirms prior research indicating Cannabidiols could be an effective method of treatment for epilepsy. As more evidence comes to light about positive benefits of cannabis, justifications for cracking down on purveyors of medical cannabis products continues to decrease.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Cannabis compound may halve seizures for patients with severe epilepsy, April 19, 2017, By Honor Whiteman, Medical News Today

More Blog Entries: Marijuana Sobriety Tests Still Elusive, Feb. 28, 2017, Marijuana Attorney Blog

Experts: Regulate Marijuana Potency to Lower Psychosis Risk

Cannabis Law Group — Mon, 27 Mar 2017 15:25:05 GMT

There is a worldwide trend toward liberalization and increasing consumption of marijuana. One of the only real harmful side effects of the drug (not withstanding use by motorists) is the potential for transient symptoms of psychosis, particularly among novice users.

You may recall the 2015 “American Sniper” trial wherein prosecutors successfully countered a claim by the defendant who fatally shot the sniper and then alleged he suffered from schizophrenia. Prosecutors opined he was simply high. Also in 2015, there was the case of a 49-year-old Denver man accused of killing his wife after eating marijuana-infused candy he had just purchased legally at a marijuana dispensary. Defense attorneys have argued defendant was so high, he did not intend to kill his wife. Then there was a death of a college student who jumped to his death after reportedly eating a potent marijuana cookie.

In each case, questions have arisen regarding the potency of these drugs. In the wake of this, researchers with King College’s London’s Institute of Psychiatry, Psychology and Neuroscience are urging regulators to fund scientific studies that will more accurately show how we can make marijuana safer.

Robin Murray, a professor at the institute, told London reporters at the briefing that we should expect that more people are going to be consuming marijuana globally – whether others support that choice or not – and the goal should be to explore if there are safer means and varieties.

There are some studies that show certain strains of the drug may be less likely to result in symptoms of psychosis, but further research is necessary to nail down exactly why that is and replicate it.

Murray and Amir Englund recently published a paper called, “Can we make cannabis safer?” which notes the average potency of THC in marijuana has doubled over the last four decades.

THC, or delta-9-tetrahydrocannabinol – is the primary active chemical compound in marijuana. The other is cannabidiol. Some forms of marijuana are extremely potent, containing high levels of THC, but lower levels of CBD. There is some research to suggest that CBD acts as a neutralizer in terms of potency, reducing problems with memory loss or paranoia.

Canada is preparing to legalize the drug for recreational use this year. Many states in the U.S. – including California – now allow for medicinal and recreational marijuana. In some areas where the drug isn’t tightly regulated, researchers said, the potency of the drug can reach up to 75 percent THC.

Lawmakers in both Uruguay and the Netherlands (where marijuana is also legal) have raised the question of whether to cap THC potency at 15 percent. Another idea that has been tossed around was to tax the drug according to the content of its THC, charging more for higher-potency marijuana.

The strategy of creating strains of the drug with higher CBD levels to offset some of the effects of the THC are promising, but we still need more study to determine whether that’s really going to address the issue. Such research has historically been challenging in the U.S., where federal drug laws have severely restricted who can study the drug and to what extent.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Regulate cannabis potency to reduce psychosis risk, experts say, March 2, 2017, Reuters

More Blog Entries:

White House Will Step Up Federal Marijuana Enforcement, Feb. 27, 2017, Marijuana Attorney Blog

Banker Seeks Promotion of Cannabis as the New Chamomile

Cannabis Law Group — Fri, 24 Feb 2017 15:44:09 GMT

When any consumer of marijuana – medicinal or recreational – seeks to purchase products, they typically will find them under names like, “Super Lemon Haze” or “God’s Green Crack.” But increasingly, marketers are seeing these kinds of “stoner slang” terms out-of-step with many consumers – or potential consumers. Instead, those looking to wade into the marijuana business are hoping to capitalize on marketing marijuana with a softer edge. They want to make the names supermarket-friendly, appealing to a broader range of consumers looking not just to get high but to relax and live better.

The idea is that marijuana isn’t just about the high. It’s about relieving the stress. It’s about being amorous. It’s about easing you into slumber. To put it another way, new marijuana industry marketers are looking to craft a new image of marijuana that can compete with other products that are already popular in pharmacies, markets and liquor stores.

Some have said that their competition isn’t necessarily other marijuana producers, but those who make your morning coffee, the manufacturers of the pill that helps you sleep at night or those who brew the tea you sip on a crisp evening.

Sales of legal marijuana are expected to grow to between $18 billion and $20 billion in the next four years, and companies are striving to extend legitimacy to their products by expanding the overall appeal of their products. The first step involves reducing the potency of the drug and then working to move the brand image of marijuana away from its black market roots. Promoting the mood enhancing elements of the drug is a big part of it. That’s why we’ve started to see marijuana-infused products with monikers like, “Midnight” (to help you sleep), “Pause” (to help you relax) and “Present” (to help you focus).

Do the products actually deliver on these ideals? As with so many other types of products on the market, it’s almost beside the point. A growing number of entrepreneurs are catching on too. And for many of them, less is going to be more. People aren’t looking to be totally removed from the present. That’s why micro-dosing is fast gaining in popularity. It’s enough to elicit a certain feeling without making someone completely dysfunctional. New vape pens on the market alert a user when they have consumed just 2.25 milligrams of cannabis oil, compared to most edible products, which typically have 5-milligram doses.

These kinds of brand positioning efforts aren’t novel. Our marijuana lawyers know that owing to its long-time illegal status (and still being illegal under federal law), the drug was often lumped together with the likes of Everclear, the potent form of grain alcohol that flowed freely in frat party punch bowls. But now, people are increasingly considering themselves cannabis connoisseurs, with the drug more akin to a fine wine.

As one marijuana business owner put it, people with kids and jobs and other responsibilities don’t have six hours to “have a date with an edible.” They want to know they can put the kids to bed, have a nice chocolate and relax without completely losing control. There are a growing number of businesses striving to offer them just that.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

This Ex-Banker Wants to Swap Your Chamomile for Cannabis, Jan. 26, 2017, By Jennifer Kaplan, Bloomberg

More Blog Entries:

Marijuana Tourism May Become Increasingly Common in California, Jan. 29, 2017, L.A. Marijuana Business Lawyer

From Chocolate to Cannabis: Former Hershey Factor Purchased by Marijuana Business

Cannabis Law Group — Wed, 22 Feb 2017 14:23:55 GMT

A Canadian company has tripled its production capacity by moving into an old chocolate factory, a long-time vacant facility that had posed the risk of blight and crime for the community in a suburb of Ottawa, Ontario for years.

According to Financial Post, this purchase could make Canopy Growth, the parent company, the owner of the biggest indoor marijuana production site in Canada, and possibly the world. The building was purchased with the help of a group of collective investors who backed Canopy. There was previously a medical marijuana facility of the site, but they were only a tenant and they only took up a third of the building’s space – a whopping 472,000 square feet.

This new space has the potential for add-ons of hundreds of thousands of square feet of production and processing space, which could include expanding the indoor facilities or creating greenhouse growing platforms. Even as there is a need for commercial processing of the drug, there is also space needed to convert the marijuana and cannabinoids into products that are higher margin means of profit, such as oils and edibles. Vaporizer pens and other medical delivery options too could be easily manufactured at this site.

The company expects this expansion will allow it to triple its potential for business in Ontario.

The building was purchased for $6.6 million, with about $925,000 in shares.

At this juncture, the company has already converted about 170,000 square feet of space into a licensed cannabis production space, with 12 of up to 40 possible growing rooms now operational. There are another dozen multi-level grow rooms that are either under construction or almost to the completion stage.

The mayor of the town, Smith Falls, has said the company’s impact on the community has already been overwhelmingly positive. The site sat vacant for years after the chocolate plant shut down in 2008. That’s when Hershey moved its production to Mexico. There was no other large-scale commercial production effort that needed that kind of footprint – until this.

Now, the town is looking forward to the promise of new jobs. As of right now, the company employs 200. It’s believed that number could at least triple. This goes beyond simple marijuana production. It’s likely going to involve partnerships with other dealers and businesses in the area, a highly-technical in-house quality assurance laboratory and a seed-breeding area. The company is also looking into whether it may be able to use any of the chocolate-making equipment left behind for the production of edible products.

“We’d love to come full circle and start producing chocolate again,” said the owner. “We just need a few laws to change before we can get going.”

Eventually, the owners say they are looking forward to opening up on-site tours, training and a “bud bar” for guests to relax and enjoy the fruits of this labor.

Other analysts have opined that California is primed for a “marijuana land rush,” particularly in the northern portion of the state. California could soon become the single largest marijuana market in the country, and possibly the world. We’re already seeing these kinds of real estate stories unfold. Those looking to invest or become otherwise involved should consult an experienced marijuana attorney.

The Los Angeles CANNABIS LAW Group represents growers, dispensaries, collectives, patients and those facing marijuana charges. Call us at 949-375-4734.

Additional Resources:

Cannabis producer Tweed Inc. triples production space with purchase of former Hershey factory, Jan. 27, 2017, By Sabrina Bedford, Financial Post

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