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CAN (ON): Video Tour of An Ontario Based Cannabis Operation
James E. Wagner Cultivation Corporation President and CEO Nathan Woodworth gave a tour of the company’s new facility located in Kitchener, Ontario. Woodworth also talks about the company’s GrowthSTORM system and stresses that its high density, low-cost system is the most effective way to control the plant’s growth cycle. GrowthSTORM is a multi-part system that uses aeroponic and hydroponic techniques to optimize yield and plant growth.
“The degree of standardization that we can achieve with this system is proof that we have discovered a way to control the total plant growth cycle,” said Woodworth. “We’ve created a high-density, low-cost growth system which results in a 98 percent success rate after 11 to 14 days.”
Woodworth explained the process behind the system and its advantages. According to Woodworth, the plants are moved into GrowthSTORM baskets once they are fully rooted. The baskets allow the plant to form complex root systems throughout its life. Once the plants have reached full production size, they are moved to a low-density array until the flowering cycle is complete. Woodworth also talked about JWC’s latest innovation, the Dual Droplet system, which distributes a large and a small nutrient droplet. These droplets help KWC optimize the delivery and uptake of nutrients. The cannabis plants are then flat trained, ensuring standardization of yield per square foot and maximizing the quality of the finished product.
JWC’s facility has eight grow rooms that are capable of producing up to 50 kilograms per growth cycle with less than one percent crop loss. The company’s 29 strains, which feature four unique phenotypes, are all being grown using the GrowthSTORM system.
For more information:
JWC
1-888-594-4272
info@jwc.ca
jwc.ca
Publication date: 5/15/2019
Marijuana Prices Have Collapsed, Forcing Growers to Focus on Energy Efficiency
Particularly on the West Coast, prices have imploded as more growers set up shop and 2018 yielded strong harvests. That's good news for a cannabis consumer, but for the industry it means difficulty in turning a profit
Efficiency experts say the biggest opportunities to reduce energy use in the cannabis sector are in the design phase of a new grow operation.
Author: Robert Walton@TeamWetDog
May 1, 2019
As marijuana becomes more mainstream, an increasing number of utilities are seeing growers set up shop in their service territories — at times creating distribution system issues, and in general bringing significant new demand.
With federal legalization now a topic du jour, there is a growing focus on energy efficiency in the cannabis space and how utilities and industry groups can help growers control their demand. Total electricity demand from legal marijuana cultivation in the United States is estimated to rise 162% from 2017 to 2022, according to Research from New Frontier Data, which focuses on analysis of the cannabis industry.
Credit: New Frontier Data
Compared with a typical office building, indoor marijuana growers are about 10 times as energy intensive on a square footage basis, according to Neil Kolwey, industrial program director for the Southwest Energy Efficiency Project (SWEEP).
SWEEP recently hosted a webinar to discuss energy efficiency in the cannabis industry, and Kolwey said it is important to keep the sector's energy use in perspective — it is not particularly large in aggregate, but can have significant impacts in specific areas.
Data centers use two to three times the energy of marijuana growers, again on a square-footage basis, he said, and account for about 1.8% of the United States' electricity consumption. Pot growers, including illegal operations, account for just 0.1% right now.
But cultivation centers are energy intensive: a single one could overload a utility transformer, while an industry can add substantially to a city's power demand.
Utility headaches
Growers account for 4% of Denver's electricity consumption. In Xcel Energy's territory, marijuana cultivation can account for close to 2% of demand and as the legal industry ramped up five years ago, it caused headaches for the utility.
"The issue wasn't meeting the demand," Xcel spokesman Mark Stutz told Utility Dive. But in some areas of its territory, "we often found the systems were not adequate for a 24 hour grow operation. ... There were growing pains in the first couple of years after it became legal."
There are now about 500 grow facilities in Xcel's territory, using between 35,000 MWh and 45,000 MWh annually. "Certain pockets [in the city] became warehouse districts for marijuana growing," said Stutz. Built years ago for different types of industry, transformers had to be replaced in order to deliver enough energy.
Energy consumption in Xcel's Colorado territory from the cannabis industry has since leveled off, Stutz said
Credit: Xcel Energy
Nationwide, however, the trend remains upward.
"We're seeing that electricity consumption increases are just continuing as this market continues to escalate," said Derek Smith, executive director at Research Innovation Institute (RII), a non-profit market-transformation group in the cannabis space. "That's the trend we're on unless we do something about it."
There are now more than 30 states with medical marijuana programs, and nine plus the District of Columbia have legal recreational access. Growing interest in cannabis means higher energy demand. But with the product now legal, markets are responding to typical economic forces — meaning energy efficiency may become vital to turning a profit..
Crashing prices and a focus on margins
Particularly on the West Coast, prices have imploded as more growers set up shop and 2018 yielded strong harvests. That's good news for a cannabis consumer, but for the industry it means difficulty in turning a profit.
"In almost every established market that's been around more than a couple of years, right now we recommend getting production costs down to $300/pound or below to stay competitive. That's a steep curve from where it was a year or two ago," said Jacob Policzer, director of science and strategy at The Cannabis Conservancy, a group that provides sustainability certifications to producers.
"Getting costs down will be the biggest factor moving [the industry] towards energy efficiency and sustainable growing practices," Policzer said.
That's important because of growing carbon emissions associated with the cannabis industry's electric demand.
Credit: New Frontier
"Energy consumption and carbon emission levels have become critical issues among stakeholders in the cannabis industry," according to a New Frontier Data report on the sector's energy use. But in trying to make improvements, stakeholders have "been forced to rely on data and analysis based on research published prior to the deployment of medical and adult-use programs."
Cannabis has typically operated in the shadows, and little information on best practices was shared, said Smith. RII is working to correct this. In 2017 the group developed the Cannabis Power Score, which attempts to give growers an idea of where their energy use stands relative to others, while collecting data on industry best practices.
"We are beginning to have enough data to create benchmarks," said Smith, pointing to grams-produced/kWh as a key metric. In turn, this is allowing the group to validate effective technologies and techniques.
"We really see as a vision, that cannabis is an incubator platform for the way agriculture will be done in the future," said Smith, looking to regenerative farming techniques and hyper-efficient, multi-tiered greenhouses.
"A well-designed and operated indoor grow can save up to 40% per gram of flower, compared to a standard indoor grow," said SWEEP's Kowley. Well-designed greenhouses, which have HVAC, dehumidification and lighting systems properly-sized in the design phase, can save 60% to 70%, he said.
In an environment where prices have fallen and supply is plentiful, energy efficiency can make the difference for producers. Energy is about 20% to 40% of an indoor grower's total operating costs, said Kowley. By comparison, a mid-sized brewery might see energy make up 6% to 12% of its costs.
Renewables and cannabis?
It is somewhat counterintuitive to consider a need for renewable energy in the cannabis space — after all, you could just grow outside. But not all climates can support year-round outdoor cultivation, strict local regulations have kept many growers inside, and some consumers say indoor marijuana is simply better.
Adam Bartini, senior program manager at The Energy Trust of Oregon, has worked with a number of growers on efficiency projects, helping provide rebates and incentives. The Energy Trust offers licensed growers free technical services, along with incentives to install energy-efficiency equipment at new and existing facilities.
Bartini, in his presentation during SWEEP's webinar, pointed to Deschutes Growery in Bend, Oregon, where the Energy Trust helped provide more than $400,000 in incentives. Along with LED lighting, the growers also installed a 56.4 kW solar system — though the total project costs topped $1.1 million.
"It is a very big investment, given how energy intensive it is to grow cannabis," Bartini said, "You need a pretty sizeable investment to offset a large percentage of that usage. So it's not gonna be for every grower. It's going to be someone who really has a lot of capital to investment. But it's obviously something we love to see."
Energy financing solutions are beginning to reach cannabis companies, said Smith, though primarily for efficiency projects. The Energy Trust works with cannabis growers the same as any other Oregon customer looking to reduce their demand. And Smith noted that some smaller growers are "creatively organizing" to take advantage of renewable energy tax deductions.
"The financing solutions are coming to pass," said Smith.
Xcel's Stutz said the utility does not offer programs specifically for cannabis growers, but "the marijuana industry can and does take advantage of programs we have," including general lighting — though not growing lamps.
But according to SWEEP's Kowley, the most affordable way for marijuana growers to embrace efficiency is to consider it from the very beginning.
"The best opportunities are in the design phase," said Kowley. "Once a grow is up and running, retrofits are difficult. ... More utilities should offer the kind of design assistance that Energy Trust does."
Follow Robert Walton on Twitter
Village Farms Says Cannabis Planting On Track At Pure Sunfarms
The Canadian vegetable grower owns 50% of
Pure Sunfarms, a 1.03 million square foot cannabis growing space
April 23, 2019
Village Farms International announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has, on schedule, completed planting of Quadrants 1 and 4 of its 1.1 million square foot Delta 3 greenhouse operation in Delta, BC. As a result, the entire 1.03 million square feet of growing area at the Delta 3 facility (composed of 16 individual grow rooms) is now in production. Pure Sunfarms remains on track to achieve full run rate annual production of 75,000 kilograms at the Delta 3 greenhouse operation by mid-2019.
"With the support of Village Farms' decades of experience developing and ramping up large-scale growing operations, the Pure Sunfarms team continues to execute on plan," said Michael DeGiglio, Chief Executive Officer, Village Farms. "We have great confidence in the team's ability to replicate the success of the Delta 3 cannabis operation with the nearly identical 1.1 million square foot Delta 2 'sister' facility, which will double Pure Sunfarms' annual production to 150,000 kilograms and support its goal to be the high-quality, low-cost producer in Canada."
As previously announced, Pure Sunfarms is targeting to complete its first harvest at the Delta 2 facility by mid-2020 and achieve full run-rate production at the Delta 2 facility in the fourth quarter of 2020. All targeted production timelines for the Delta 2 facility are subject to the timing and receipt of requisite Health Canada licenses.
This Solar-Powered Cannabis Facility Is Biggest In U.S.
Written by Peter McCusker
The first commercial-scale solar-powered cannabis farm is a “green” template for the industry to follow, says the company behind its creation.
Californian cultivator Canndescent spent $3.75 million retrofitting its 11,000-square-foot growing warehouse in Desert Hot Springs. The commercial-scale solar cannabis project uses 734 solar modules, on seven different carport structures, and can now produce enough power to charge an estimated 20% of U.S. smartphones for a day.
Canndescent founder and CEO, Adrian Sedlin, said in a press statement: “We commissioned the solar project because the modern cannabis consumer deserves and demands that we create exceptional products using exceptional practices.”
“As an industry coming of age right now, it’s natural and appropriate for the cannabis industry and Canndescent to lead the business community in addressing some of the world’s pressing challenges,” he continued.
Desert Hot Springs, CA
The state-of-the-art, clean energy system has a capacity of 283 kilowatts and will reduce the facility’s annual carbon emissions by 365 tons. Two-thirds of U.S. commercial cannabis production facilities are indoor operations, while a further 20% are at least partially indoors. Indoor cannabis facilities require large amounts of energy for lighting, heating, air-conditioning, and dehumidification systems, said the press release.
Indoor cannabis greenhouses are said to consume around 1% of US electricity, according to industry experts. Whilst outdoor growers tax local water resources. As the first cannabis company to use renewable power at a large-scale production facility, Canndescent says it has “created a ground-breaking template for sustainability… uniting water efficiency, energy efficiency and pesticide-free growing in an indoor format.”
Canndescent constructed the project in eight weeks after a two-year struggle to win approval and financing. The project consists of custom carport structures since solar could not be installed on the facility roof due to fire codes, reports Solar Power World.
Canndescent’s Chief Compliance Officer Tom DiGiovanni said: “Given the restrictions around cannabis banking and lending and the complexities of energy projects and California civil construction in general, this was extraordinarily difficult to pull off. Nevertheless, we got it done and have established a template for the ‘green industry’ to go greener.”
Canndescent was set up by Harvard Business School graduate Adrian Sedlin and opened the first municipally-permitted facility in California in 2016. Desert Hot Springs, where Canndescent is based, went bankrupt in 2001 and almost did again in 2014. The town then decided to become the first place in California to allow indoor cannabis farming on an industrial scale, and has experienced a renaissance since.
California legalized the sale and use of marijuana for recreational purposes in 2018.
Zuri Humblet, Fospan Worldwide CEO “Growing Cannabis In Large-Scale Operations Demands Knowledge"
Fospan Worldwide is a Dutch-Spanish solution provider for the horticulture and specialized in the medicinal cannabis industry with many years of cannabis experience. Zuri, Fospan CEO, points out that “One of the most crucial issues in starting a horticulture business, is to look for and rely on specialized companies and products that aim at supporting growers in being successful”.
According to him, most of the time, setting up a growing facility reveals itself to be trickier than initially expected. “Growing cannabis, especially in large scale operations, demands knowledge on what is available on the market. In the recent past, a lot of starting growers jumped into the cannabis industry based on experience gained in small-scale operations from the days where cannabis was mainly cultivated for own usage”, explains Zuri.
For Fospan worldwide it has always been important to be a developing company whose mission is to support growers in being successful. “We help growers with their projects in every possible way. From designing complete facilities, advising or providing growing systems, custom-built aquaponic, aeroponic, natural substrates and hydroponics systems and equipment up to providing Magnus light (Fospan’s brand LED) solutions. But also our Optimus specialty substrates, nutrients and exclusive CBD seeds and award winning Sumo seeds are part of our portfolio”, says Zuri.
A regulation for lighting
Differently from traditional horticulture, cannabis greenhouses need a more careful management of lighting and, as a result, of climate control, especially with regards to the compliance with pharmaceutical standards. Zuri mentions “There are many fields in which we support our customers. A good example is the lightning which is needed in a farm. We were recently informed that the Danish agency responsible for licensing medical cannabis producers issued regulations on lamps that are allowed to be used. Apart from requirements like easily cleanable (for active cooling, no fans and for passive cooling, no cooling fins) and made from non-toxic materials, the output must be of high quality to ensure that yields and cannabinoid profiles are consistent. Further it is mentioned that the luminaires and parts must be of high quality so that their light output and spectrum does not decay quickly, dramatically affecting the yields. This also concerns the wavelength distribution of the spectrum which must remain without significant changes throughout the luminaires’ lifespan to ensure consistent yields and cannabinoid expressions”.
On the left: water-cooled ML-365 in a medical cannabis facility. On the right: water-cooled ML-700 in a medical cannabis facility
Zuri continues: “Such a regulation disqualifies HPS lamps from being used in GMP/GACP compliant cannabis production. Their light rapidly loses intensity, creating differences among growth cycles, while constancy is a key requirement. The regulations also mention that there is a product safety risk due to braking of the bulb of the HPS fixture as the entire facility would be compromised as the sodium and mercury inside the bulb would get dispersed all over the canopy”
With an eye for future developments, Zuri states: “I am rather convinced that the rules and regulations developed by the Danish authorities will be guiding for a lot of other countries, in and outside Europe, that are in the process of licensing medical cannabis production and whose government agencies will for sure demand GMP/GACP standards.”
As Fospan is the developer and exclusive provider of Magnus LED lights, Zuri understands some Danish regulations, even on the use of LED technology, which in fact support his advices. Most LED luminaires have deep fins which are used for heat dissipation. While good at removing excess heat, those lamps are very difficult to clean, which is seen as an important issue by the Danish regulator, according to him. “Even with a special set of tools and a high effort to get inside the ridges and remove the dust particles and pathogens from within, it would be hard to be absolutely sure and prove that these have been properly sterilized.”
Multiple solutions available
Zuri explains other consequences of the Danish ruling: “LED luminaires with active cooling such as fans cannot be completely closed as they need to circulate air. This means having a device that is even more difficult to clean than a passively cooled LED i.e. one with deep fins. Furthermore, the quality of spectra inside LED luminaires - while better than HPS - varies significantly from manufacturer to manufacturer. In some brands of LED lights, parts of the spectrum will start to diminish already after 10.000 hours of operation, starting with the blue peak and other shorter wavelengths resulting in taller plants with less cannabinoid accumulation (similar to HPS grown plants). This is dependent on the quality of the LED chips the manufacturer uses. The best quality chips will sustain the same spectrum quality with minimal variation over its entire lifespan”
ML-270 & ML-365 COB LED Lights with farred control | available in air or water-cooled fixtures
Zuri is more than happy that Magnus Lights anticipated on such regulations. “These are examples where our experience and partnerships played a major role” he says. Fospan worldwide developed water-cooled Magnus LED (100.000 light hours = 22 years of flowering) specifically for the medicinal cannabis industry and GMP standards. “For instance, some positive points are that the fixtures are totally closed, made of full aluminum parts and available in different wattage, voltage or type fixtures like linear or COB top-lights. The lights are developed in close collaboration with Parus who is one of the leading horticulture LED manufacturers in the world. To underline the quality and durability of the LED’s manufactured by Parus: in a project for the largest Russian lettuce producer which they installed in 2008 has not occurred a single LED fail or output decay until today”, he explains.
All in one
One of the pressing problems within this industry is the lack of a common knowledge that everyone can resort to. “There are so many products and there is so much information published – which is also an indication of how this industry is blooming. At the same time, it is hard for growers to understand what the best way to do things is, and who and what to rely on”. Zuri reacts to those development saying: “That is why we prefer to be completely honest to our clients, and share our experiences and everything we know about this industry with them – as we have been in this business for over 17 years and love what we are doing”.
Zuri explains that Fospan support its clients with tailor-made solutions and in every step of the process, starting from designing and building the facility to growing the plants. “One of trickiest aspects in cannabis growing facilities is lighting, and especially keeping it equal throughout the facility.” Zuri explains that it is crucial to design a lighting system that takes the complete lay-out of the facility into consideration and calculates the amount of micromoles required. “We distribute Magnus Light solutions and design a light plan specifically for each growing facility.”
Multi-layer solutions
According to him, Magnus Light solutions are a solution for both for the vegetative as well as the flowering state. Additionally, Magnus Light solutions support growers in keeping the growing facility as cool and efficient as possible: “We indeed offer lights with a water-cooling system, thus reducing the heat generated up to 20%” not even to mention that this effects also the lifespan positively.
Bringing the industry together
“Through Fospan Worldwide, we try to help growers in every possible aspect of their cannabis projects. For instance, we can supply them with genetics. Our strain portfolio is very diverse, from high THC/low CBD, to high CBD/low THC. With regards to our specialty substrates Optimus portfolio, we can, if requested, provide a made-to-measure mixture for a client who has already a personal mixture in use”.
Zuri underlines: “Fospan’s job is not finished after a project is completed. We take care of our clients, and we really like to follow up with them, exchange ideas and provide them with new developments. Success is the best advertisement. We have been active in this industry for a substantial amount of time, and therefore we have quite a number of connections. This allows us to support growers also in other types of activities and plans, as we can point them to the right direction, company and/or person. There is still a lot to learn in this industry and market, and we think it is important to support each other.”
For more information:
Fospan Worldwide
fospan.com
Magnus Light
magnuslight.com
Publication date: 4/12/2019
Author: Andrea Di Pastena
© MMJDaily.com
How Monsanto & Bayer Are Trying To Take Over The Cannabis Industry
Unfortunately, Bayer and Monsanto could create a monopoly on marijuana seeds in the same way we have seen them do with corn and soy. They have an incredible amount of corporate power and through enforcing international patent law, could end up with total control over the cannabis industry, including medicinal cannabis use and research.
Responsible for genetically modified organisms (GMOs) and the pesticides that are sprayed on them, Monsanto is on the tips of everyone’s tongues lately. Health conscious individuals are doing everything they can to boycott this company and support others instead, even if that means opting for much pricier organic produce.
There are a number of reasons for their concern, including the fact that no long-term studies have been done to show the potential health effects of consuming genetically modified foods or the high levels of pesticides that came with them. The mere fact that this company is responsible for some of the worst chemicals ever created, including Agent Orange, DDT, asbestos, and aspartame, also contributes to this widespread mistrust.
Last September, Bayer, the largest pharmaceutical company in the world, made a deal to buy out Monsanto for $66 billion, even though Monsanto was voted “the most evil company in the world” back in 2013. Unfortunately, this buyout only strengthened Monsanto’s lobbying power.
This corporate giant has now set its sights on another product, one that has garnered increasing attention lately as laws relax and medicinal uses become better understood: cannabis. Despite claiming otherwise, evidence suggests Monsanto may already have ties to cannabis production, a worrisome connection for anyone who uses cannabis medically or even enjoys an occasional puff.
How Is This Connection Made?
Monsanto and Miracle-Gro already have a business partnership. Hawthorne is a front for Miracle-Gro and has already purchased three of the largest cannabis producers in the business, Botanicare, Gavita, and General Hydroponics. A number of other companies have already received buy-out offers, but have refused.
According to a Hydroponics Lighting Representative, “They want to bypass hydroponics retail stores. . . . When we said we won’t get in bed with them they said, ‘Well, we could just buy your whole company like we did with Gavita and do whatever we want.’ ”
Miracle-Gro CEO Jim Hagedorn has gone so far as to announce his plans for reefer referendums. “Invest, like, half a billion in [taking over] the pot business,” he recommends. “It is the biggest thing I’ve ever seen in lawn and garden.”
One only has to connect the dots to see where this is heading, and it’s not surprising. The cannabis industry is on the brink of a major boom, and it makes sense that a huge corporation like Monsanto would like to get in on the action.
Now What?
Nothing has been decided at this moment, but we can see clearly that it is a possibility, and even if Monsanto/Bayer does take over the cannabis industry, it is not certain that they will create genetically modified strains. Even if they don’t, however, it is up to you to decide if this is a company you would like to support or not. If you actively choose non-GMO products, then you’ll certainly need to do your research to ensure the strains you are getting are not coming from a Monsanto-owned grow business.
Unfortunately, Bayer and Monsanto could create a monopoly on marijuana seeds in the same way we have seen them do with corn and soy. They have an incredible amount of corporate power and through enforcing international patent law, could end up with total control over the cannabis industry, including medicinal cannabis use and research.
Don’t Forget, As the Consumer, You Hold the Power
There will undoubtedly be some backlash against Monsanto — as if they haven’t gotten enough already — but it is absolutely necessary to call out this company for their ruthless business practices. DO NOT SUPPORT Monsanto or Bayer by buying any cannabis products coming from companies that they own. More information about Monsanto’s involvement in the cannabis industry, whether direct or indirect, will surely surface soon, and it is up to you to stay informed and make the appropriate decisions. A safe bet would be to grow your own and keep the seeds, if you are living in an area where this is legal. Spread this information far and wide; we cannot let Monsanto take over the cannabis industry.
Much Love
Seedo Partners With Kibbutz Dan For First-of-its-Kind Fully Automated Indoor and Containerized Commercial-Scale Cannabis Farm
AI-powered climate control technology serves growing demand for pesticide-free products around the globe
NEWS PROVIDED BY Seedo Corp.
TEL AVIV, Israel, March 19, 2019 /PRNewswire/ --
Today, Seedo Corp., "Seedo" (OTCQB: SEDO), a high-tech company providing the world's first fully automated and controlled indoor growing machines for the pesticide-free cannabis and agricultural markets, announced today it will be partnering with Kibbutz Dan in Northern Israel to establish the first fully automated, commercial-scale, pesticide-free containerized cannabis farm in Israel. With Israel's recent approval of medical cannabis exports, Seedo is positioned to become a key player in this emerging market as its technology can achieve reliable and uniform production goals to meet pharmaceutical-grade standards. Within 36 months of operation, the project is estimated to produce a minimum of 14 tons of dry cannabis bud, generating an estimated revenue of $24 million dollars.
Introducing the Seedo Farm, automated, commercial scale container
In legal cannabis markets around the world, new research has brought to light concerns surrounding the prevalence of pesticides, solvents and bacteria present in the current supply chain. This poses a serious threat to consumer safety, especially for patients that are increasingly dependent on medical cannabis for treatment of a variety of illnesses. Seedo's revolutionary technology can control the purity of the crop to meet stringent compositional standards set by pharmaceutical and beverage companies looking to supply clean and consistent products to the market.
"We are entering a new era of growing where demand for pesticide-free products will only continue to increase," said Seedo CEO Zohar Levy. "We're thrilled to partner with Kibbutz Dan to provide a business model with governments that the world can look to. We've built our commercial-scale system to reflect our philosophy that technology can provide precise and reliable results without sacrificing yield."
This Landmark installation includes Seedo's first commercial-scale product to meet growing demand stemming from maturation of the worldwide medical cannabis market. Seedo is now applying its proven technology, originally developed for home-grow devices, towards containers for commercial scale. This new offering will allow Seedo to leverage and adapt its existing and proven AI-powered technology to commercial farming applications, thereby maximizing the quality, yield and reliability of crops regardless of local climate conditions. By taking the guesswork out of the cultivation process, communities will be able to grow both native and non-native products with less labor, energy and water than ever before. The airtight, stackable containers will allow cultivators to optimize land-use and reduce the environmental footprint of their farming operations. Each one of Seedo's containers can provide a minimum quantity of 326 pounds of dry cannabis bud per year.
Seedo will also look to provide its commercial product to agricultural regions in need of healthy and reliable food supplies. Each container features maximum daylight illumination, built-in carbon filters, automated air conditioning, and a smart post-harvest drying system that allows farmers to minimize cultivation costs and provide high-quality food with extended shelf life. As rising temperatures and urban population growth encroach on global food supplies, Seedo's turnkey technology will allow communities to grow their food locally without fear of crop loss from external climate or weather conditions. As its network of systems continues to grow, Seedo will be able to leverage aggregated data to discover the ideal growing conditions for every type of fruit and plant species, even bringing some back from the brink of extinction.
As part of Seedo's recent momentum, the company recently appointed Daniel Birnbaum, CEO of SodaStream, and Dr. Jendayi. Frazer, the former U.S. Assistant Secretary of State for African Affairs, to its board of directors. Mr. Birnbaum's expertise in building global brands and Dr. Frazer's work in international development and governance will inform the development of the commercial product to serve vulnerable communities around the globe.
About Seedo
Seedo is a market leading high-tech company providing the cannabis and agriculture industries with the world's first fully automated and controlled indoor growing machine. Seedo provides growers with the freedom to cut costs while generating high yields of lab-grade, pesticide-free herbs and vegetables. Seedo's AI-powered, turnkey systems enable anyone from average consumers to large-scale producers the ability to grow without prior experience or ample space. Seedo is a publicly traded company backed by a group of international investors including Cannabics Pharmaceuticals and is headquartered in Israel. For more information, visit http://www.seedolab.com
Contacts:
Seedo Corp.
+972-546-642-228
General Information: info@seedolab.com
Media inquiries: seedo@antennagroup.com
http://www.seedolab.com
Disclaimer:
Certain statements contained in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to statements identified by words such as "believes," "expects," "anticipates," "estimates," "intends," "plans," "targets," "projects" and similar expressions. The statements in this release are based upon the current beliefs and expectations of our company's management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. Numerous factors could cause or contribute to such differences, including, but not limited to, results of clinical trials and/or other studies, the challenges inherent in new product development initiatives, the effect of any competitive products, our ability to license and protect our intellectual property, our ability to raise additional capital in the future that is necessary to maintain our business, changes in government policy and/or regulation, potential litigation by or against us, any governmental review of our products or practices, as well as other risks discussed from time to time in our filings with the Securities and Exchange Commission, including, without limitation, our latest Form 10-K Report filed on January 15th, 2019. We undertake no duty to update any forward-looking statement or any information contained in this press release or in other public disclosures at any time.
SOURCE Seedo Corp.
CEA Advisors Announces International Collaborations
March 20, 2019
CEA Advisors, Fospan Worldwide and Canna Pro, global players in Horticulture are pleased to announce that they have finalized their agreement to collaborate on cannabis related business opportunities. These industry heavyweights are joining forces to provide marketing, sales, consulting and technical support to the global Cannabis industry.
CEA Advisors is a major player in the global indoor farming industry. For the past 10 years, they have designed and built state of the art custom container farms for commercial clients such as growers, food manufacturers, pharma manufacturers, universities, government agencies, schools and non-profits worldwide. They are also the designer and manufacturer of Growracks®, an industry standard plug and play vertical production system in use worldwide. www.growtainers.com
Fospan Worldwide SL, headquartered in Barcelona, Spain is an experienced solution provider of Horticultural services to the medicinal and recreational cannabis industry. The registered Dutch- Spanish company also acts as a distributor for many of Europe’s top Horticultural products including their proprietary LED product, Magnus Lights by Parus. Fospan Worldwide’s management boasts of many years of industry experience and the successful completion of high-profile Cannabis projects in Denmark, Switzerland and throughout Europe. www.fospan.com
Canna Pro, a division of Pro Horticulture Inc has spent years designing and building premium indoor cannabis facilities & light deprivation greenhouses for growing high yielding healthy crops. They are a global cannabis entity with strategic partnerships in Canada, USA and Europe. Canna Pro has assembled a team of all-stars bringing tried and true cultivation methods mixed with the perfect dose of cutting-edge technology. They’ve built greenhouses and growrooms all over the globe and work closely with their team of HVAC engineers to provide the optimum indoor environments for rapid growth of healthy plants. www.cannapro.co
CEA Advisors Announces Formation of New Division Focused on Cannabis Industry
The company has completed the design process for the first shipping container farm specifically designed and built for cloning and young plant production.
March 5, 2019
After nine years of designing and marketing custom-made Growtainers and providing consultant services for commercial clients worldwide, CEA Advisors has announced that it has formed a new division to focus on the cannabis Industry. Recently the company has completed the design process for the first competitively priced shipping container farm specifically designed and built for cloning and young plant production.
“Although I grew indoors many years ago, I spent more than a year discussing today’s technology and the specific requirements of this crop with industry experts and component manufacturers and when I was sure we could execute, we began the design and manufacturing process” said Glenn Behrman, founder of Greentech Agro LLC and CEA Advisors LLC.
Each fully equipped, plug and play 20-foot fully insulated container-based Clone Facility has a separate utility area and provides climate controlled vertical production space for cloning and mother plant storage. Each unit is specially designed for maximum efficiency and workflow. Besides the dedicated technology for the ebb and flow irrigation system installed, a state-of-the-art water monitoring and dosing system and high-pressure fog system, each production area is equipped with energy efficient LED production modules, offering wavelength and intensity specifically designed for cloning and vegetative growth.
The LED environment for cloning provides light levels from 50 to 100 micromoles with an incremental increase as the plant becomes established and the mother plant storage area provides up to 700 micromoles for faster vegetative growth. In addition, each clone factory provides a warm, humid LED lit micro climate for germinating seeds. Based on the current configuration, each unit is capable of producing 1,080 four-inch pots per cycle or substantially more in standard 1020 trays.
CEA Advisors is in the process of finalizing agreements with some of the world’s top cannabis consultants to provide technical support for our clients. The company has already brought on board a container modification expert with over 20 years of hands-on experience to manage its agreement with the world’s largest container manufacturer to provide large quantities of ISO certified 20 foot, 40 foot and 45 foot Container Farms for quick deployment for all stages of growth in the food production, research and international cannabis market.
For more information contact us by email at GB@cea-advisors.com
Weed Is Growing Into a Big Market for This Dutch Lighting Firm
Weed Is Growing Into a Big Market for This Dutch Lighting Firm
By Ellen Proper
February 19, 2019
Signify CEO lifts veil on horticultural unit’s pot business
Demand for greenhouses signals boom is feeding supply chain
A boom in the cannabis industry that began a few years ago is now fueling sales of equipment like so-called grow lights. Photographer: Jason Alden/Bloomberg
The world’s biggest lighting company has been selling equipment to the horticultural industry for decades, building up its business outfitting greenhouses to grow plants like tomatoes, lettuce and roses. Lately, demand for a new crop has exploded onto the scene: Pot.
A cannabis boom that began a few years ago in the lead up to legalization in Canada, Uruguay and some U.S. states is now fueling sales of equipment like so-called grow lights. The changes in legislation and surge in consumption have led farmers to seek out more controlled and energy-efficient cultivation in hothouses.
“Where it’s legal, we participate,” said Eric Rondolat, chief executive officer of Signify NV, a spinoff of Amsterdam-based Royal Philips NV. “Worldwide we see an evolution in the thinking of cannabis production.”
Rondolat’s willingness to talk about marijuana and Signify is also a sign of change. The manufacturer gets the bulk of its 6.4 billion euros ($7.2 billion) in annual revenue from more mundane products like home lighting fixtures and street lamps. Until a few years ago, selling specialized gear to grow medicinal pot wasn’t something the company sought to publicize.
“We have seen big growth in cannabis being legalized lately and we see that also through our activity,” Rondolat said in an interview.
Greenhouse Boom
Signify’s brisker business is backed up by forecasts. The horticulture lighting market is set to expand to $6.2 billion by 2023 from $2.1 billion in 2017, partly driven by the legalization of cannabis for medicinal purposes, according to Markets and Markets, a consulting firm.
“We are just at the beginning of the greenhouse boom in Europe, and still at a fairly early stage in North America,” Alex Brooks, analyst at Canaccord Genuity, said by email.
Benefits to companies like Signify are a sign the cannabis rush is feeding into the manufacturing supply chain, with big firms in the drinks and tobacco markets also raising investment. The Dutch firm is not the only light maker wading in.
German rival Osram Licht AG has stakes in several horticultural specialists. In May, the company bought Austin-based startup Fluence, which like Signify sells more energy-efficient LED lighting for greenhouses. One tout on its website is for The Fireweed Factory in Juneau, Alaska, that gets about 1 million visitors a year and caters to local and tourist demand. Osram generally sells to “growers of pharmaceutically usable plants such as cannabis,” a spokeswoman said in an emailed statement.
Projections for overall growth in the pot industry are eye-catching. Industry consultant Prohibition Partners said more than 50 countries have legalized medicinal cannabis, with some 10 more expected to join the list this year. The U.K. recently received its first bulk batch from the Netherlands after it was legalized for prescription last year.
The global legal market will reach $232 billion in 2027 from $9.9 billion in 2017, according to Bryan, Garnier analyst Nikolaas Faes. Growing companies using new greenhouses outfitted with lighting, humidity and temperature controls have an advantage over those relying on retrofitted ones previously used for other crops, he wrote in a report this month.
Signify has a leg up on competitors, Rondolat said, because the company has developed more than 150 types of lighting adapted to individual crops, including tomatoes, cucumbers, tulips and cannabis. Each requires its own light intensity and duration to improve yields, hasten flowering and quicken root growth.
Bright Spot
Rondolat has been at the helm of Signify since before shares were listed in 2016. The company has yet to post revenue growth as it navigates the consumer switch from conventional lighting to light-emitting diodes, or LEDs. With Brexit, rising U.S. inventories, trade tariffs and a slowdown in China also biting, growth in its horticultural business is a bright spot.
Read Giant Russian Greenhouse Shows LEDs Swaying Light Bulb Die-Hards
“This is a substantial market size already, and with a very interesting perspective going forward,” said Rondolat. For investors, it’s hard to figure out how much of a difference this could make. The company doesn’t break out earnings from greenhouse lighting or from selling specialized equipment for cannabis production. The CEO declined to provide details.
Read More
The U.K. Just Got Its First Bulk Medical Cannabis Shipment (1)
Canopy Expected to Capture Biggest Chunk of Canadian Pot Market
Cannabis Lobbying Heats Up As Congress Looks At Pot Banking
Brooklyn Medical Pot Salon Opens to New York Legalization Push
Legalized Marijuana in New York State: The Green Gold Rush
Andrew Cuomo unveils a plan for legalizing recreational marijuana in New York State.
It’s a moment cannabis advocates have been waiting for. On Tuesday, Governor Andrew Cuomo officially unveiled a plan for legalizing recreational marijuana in New York State, in his State of the State budget address in Albany.
The plan includes the creation of a new Office of Cannabis Management, taxes on cultivation and wholesale, a ban on sales to anyone under 21, licensing for businesses throughout the supply chain, and the ability for counties and cities to ban sales, Gannett’s Jon Campbell reports. Also in the works: a program to review and seal past marijuana-related criminal convictions.
Officials estimate that legalization will eventually bring in $300 million in tax revenue a year, but the industry will be slow to ramp up, the New York Times reports:
That number, though, would not be available until the fiscal year starting in 2023, according to Mr. Cuomo’s budget director, Robert Mujica.
The initial rollout would bring in much less revenue, projections show. Budget documents released Tuesday projected no revenue from marijuana regulation and taxation for the 2020 fiscal year, and $83 million for 2021.
A code name for marijuana written on a train in New Jersey. Source: Wikimedia Commons.
Keeping Up With The Joneses
With more and more states moving toward legalization, the climate around cannabis is shifting quickly. Politicians who would have been loath to endorse recreational marijuana just a few years ago are now starting to worry that their states will lose out economically if they don’t jump on board the legalization bandwagon.
New Jersey, whose governor Phil Murphy campaigned on a promise to legalize recreational marijuana, is racing New York to pass a cannabis law. Reporter Payton Guion for NJ.com explains why New Jersey legislators are anxious to get there first:
If New Jersey were to somehow get beat to legalization by New York, the state would be leaving a lot of potential tax revenue on the table. Millions of people would likely cross the border to buy legal weed, based on estimates of New Jersey’s potential marijuana market.
But no one is likely to cross the border to buy weed in New Jersey if it’s also legal in New York.
While our neighbors New Jersey and Connecticut have yet to legalize, New York is already losing potential business–and tax dollars–to Massachusetts, where recreational cannabis has been legally available since November. Recently, Rockland/Westchester Journal News columnist David McKay Wilson, who writes about tax policy, took a road trip to Northampton, home to Massachusetts’s first legal dispensary. There, he met New Yorkers willing to stand in line for hours for the chance to purchase just an eighth of an ounce:
The New Yorkers claimed they could find marijuana on the streets of Schenectady for $150 an ounce, which would produce about 60 marijuana joints. That cost would be far less than what they would pay in the Massachusetts dispensary. Though state law allows dispensaries to sell as much as one ounce of cannabis, NETA has limited its sales to a maximum of one-eighth of an ounce because its supply of Massachusetts-grown marijuana is limited.
The one-eighth ounce was on sale for $50–equivalent to $400 an ounce. But they wanted to buy the legal cannabis, with its potency tested and certified.
“It better be good stuff for this wait,” [Johnny] Deitz said. “It will be a joy to finally smoke it legally.”
Cannabis isn’t the first vice New York State has seized on as a potential boost to the local economy. In recent years, the state has rewritten the laws on locally made beer, hard cider, and spirits to be friendlier to small brewers and distillers. The result has been a renaissance of small-scale craft beer and spirits in the state.
In an interview with Leafly, Melissa Moore of the Drug Policy Alliance, a pro-cannabis-legalization advocacy group, likens the recent push to legalize cannabis to the craft brewing and distilling movement:
“I think it’s encouraging to look at what the governor has done in terms of encouraging the craft beer and wine industry in New York State, and trying to put forth provisions that help smaller businesses in that arena be able to actually get a foothold to be competitive and grow and thrive,” Moore said. “And I think that’s something that we would certainly encourage him to look for in marijuana legalization as well.”
The chamber of the New York State Assembly, soon to be tasked with hammering out the fine print on marijuana legislation. Source: Wikimedia Commons.
Bumps in the Road?
Even with a cannabis-friendly Democratic majority in both the Senate and Assembly, and the endorsement of the governor, legalized recreational marijuana won’t happen overnight. There are still many details to be ironed out. The AP’s David Klepper reports:
Taxes and regulations must be approved. Rules for licensing retailers must be written. A new government entity may have to be created. Local governments will have to be brought in. Even after a bill passes, it could take a year or more for any pot shops to open, based on what’s happened in other states and New York’s own experience with medical marijuana.
One of the biggest worries for lawmakers is how to deal with marijuana-impaired drivers. There’s no clear consensus on what level of THC in the blood constitutes impairment, and unlike alcohol, marijuana can leave trace substances in a person’s blood for days or weeks, long after the initial high has faded. States are enacting a broad range of different laws and “playing catch-up” with science on the issue, Kaiser Health News reports.
Among the states that have legalized recreational marijuana, there is a range of approaches, from relatively permissive California to highly regulated Colorado. So far, New York has opted to keep the marijuana industry on a tight leash: After the state legalized medical marijuana in 2014, only five licenses were awarded in an intensely competitive process. In 2017, five more companies were awarded licenses.
One of those first five license-winners has deep roots here in the Hudson Valley: Etain, a company with dispensaries in Kingston, Syracuse, Yonkers and New York City, and the state’s only women-owned cannabis business. Founder Amy Peckham, who owns and operates the business with her daughters Hillary and Keeley Peckham, is a Katonah resident whose family operates a large construction business called Peckham Industries.
Getting into business in New York State isn’t easy. Just to apply for one of the state’s five coveted licenses cost the Peckhams about $750,000,The Cutreported in a 2015 feature story.
The first few years of legal medical marijuana have been tough on New York’s pioneering cannabis businesses, with few physicians to prescribe and daunting restrictions on every aspect of the business, but Etain’s founders hope to make good on their investment. Recently,The Street cited Etain as one of the top five businesses that stand to profit most from legalized recreational marijuana in New York State.
Transforming The Way Cannabis Is Grown
30% increase in yield and 8 week grow cycles
Pittsburgh, PA: New technology enables growers to significantly increase profit and yield, GrowQuick Systems patented technology will provide product 52 weeks a year. It is the fastest and most efficient system in the world. Proven to work it’s built with innovative features that will change the way cannabis, hemp and food are grown across the world.
Environmentally friendly while increasing profit due to lower energy use
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No Plant Loss Due To Mites or Bugs
The minimal maintenance required is a huge positive for growing in remote locations
7-8 Weeks From Clone to Crop
Less Than 24 Hour Turnaround From Crop to Clone
4-6 Inches Of Growth Per Day On Average
“This cutting edge technology will usher in a new age for cannabis grow systems similar to what the jet engine did for the airline industry”
-Ray Mays
Inventor/CEO
Each GrowQuick System is custom designed for each facility and customer. Featuring custom Full Spectrum LED lighting for fast growth and energy savings, with patented proprietary continuous disinfecting lighting. Allows remote monitoring of 120 control points with smart phone or tablet. Built to last with aluminum and powder coated racking.
GrowQuick Systems is technology for complete builds out of cannabis grow facilities. .
New York's Plan For Legal Marijuana Expected Early Next Year
Gov. Andrew Cuomo plans to put forward a proposal for setting up a legal pot program in early 2019.
By Noah Manskar, Patch Staff | Dec 11, 2018 4:54 pm ET | Updated Dec 11, 2018 4:56 pm ET
NEW YORK — New York lawmakers won't have to wait much longer to spark a blunt debate over legalizing marijuana. Gov. Andrew Cuomo plans to proffer a proposal for setting up a recreational pot program in the state early next year, his office said Tuesday.
Cuomo, a Democrat, commissioned a state Department of Health study early this year that found legalizing the drug for adult recreational use would do more good than harm. The governor in August commissioned a working group to draft legislation to that end and held a series of public listening sessions on the issue.
"Now that the listening sessions have concluded, the working group has begun accessing and reviewing the feedback we received and we expect to introduce a formal comprehensive proposal early in the 2019 legislative session," Cuomo spokesman Tyrone Stevens said in a statement.
The governor's office has previously indicated that a proposal would come in the upcoming legislative session. Unveiling it earlier in the year would give the state Assembly and Senate a chance to consider it before final negotiations over the next state budget, which must be approved by April 1.
Cuomo will likely present his next executive budget proposal in January. It's uncertain whether the marijuana plan will be part of the budget or a separate bill on its own, a Cuomo aide said.
"As we have said since August, the goal of this administration is to create a model program for regulated adult-use cannabis — and the best way to do that is to ensure our final proposal captures the views of everyday New Yorkers," Stevens said.
Officials estimate legal marijuana could become a $3.1 billion business in New York and generate more than $677 million in tax revenue in the first year. At least one politician wants to use some of the money to fund the struggling Metropolitan Transportation Authority, but others argue it should be used to tackle the racial injustices wrought by drug enforcement.
New York would join other northeastern U.S. states in legalizing cannabis. Marijuana sales started in Massachusetts last month and recreational pot use became legal in Vermont in July, according to news reports. Legalization legislation also reportedly got through committee votes in New Jersey's state legislature in November.
New York Governor Commits To Cannabis Legalization
The move is expected to generate some $1.7 billion in annual sales.
12/18/2018
New York Gov. Andrew Cuomo told reporters in a widely anticipated speech on Monday that he would push to legalize adult-use cannabis within a matter of months, The New York Times reports.
The move is expected to generate some $1.7 billion in annual sales and, according to Cuomo, is representative of his administration’s efforts to “advance our justice agenda and particularly address the forms of injustice that for too long have unfairly targeted the African-American and minority communities.”
“The fact is we have had two criminal justice systems: one for the wealthy and the well off, and one for everyone else,” he said.
Shortly after Cuomo’s speech, the Drug Policy Alliance announced via press release:
“Governor Cuomo and the new Democratic majority have a golden opportunity to get legalization done the right way, right away,” said Kassandra Frederique, the DPA’s executive director for the state of New York.
The New York Health Department issued a report earlier this year that suggested the pros of cannabis legalization would outweigh the cons of ongoing prohibition. Since then, officials have further informed their decision via dozens of public listening sessions on the issue.
Gov. Cuomo only recently came around to the idea of legalizing. He openly opposed the state’s hyper-restrictive medical cannabis program when it was established in 2014 and he relied on the tired trope of demonizing cannabis as a “gateway drug” as recently as last year.
Some believe that Cuomo’s shift on the legalization issue was spurred by former opponent in the Democratic gubernatorial primaries and celebrated “Sex and the City” star Cynthia Nixon, who announced her brief candidacyon a platform of ending cannabis prohibition and fixing the New York City subway system.
There are currently 10 states — plus Washington D.C. — that have opted for ending cannabis prohibition and many of them are neighboring New England states.
Cannabis Company Tilray Shares Jump as much as 22% After Announcing Deal with Swiss Drugmaker Novartis
The marijuana company would work with Novartis' generic drug business Sandoz.
Berkeley Lovelace Jr. | @BerkeleyJr
Published 9:36 AM ET Tue, 18 Dec 2018 Updated 6:17 PM ET Tue, 18 Dec 2018CNBC.com
Tilray enters a global supply and distribution agreement with Swiss drugmaker Novartis.
The marijuana company would work with Novartis' generic drug business Sandoz.
It may supply non-smokable and non-combustible medical cannabis products where it is legally allowed.
Shares of cannabis company Tilray jumped as much as 21.9 percent in intraday trading Tuesday after the Canadian marijuana producer announced it has entered a global supply and distribution agreement with Swiss drugmaker Novartis.
The company plans to work with Novartis' generic drug business Sandoz and supply non-smokable and non-combustible medical cannabis products where it is legally allowed, Tilray announced in a press release. As a part of the deal, Tilray and Sandoz may co-brand certain products as well as develop new ones.
"This agreement represents a major milestone in the movement to provide access to safe, GMP-certified medical cannabis to patients in need across the world," Tilray CEO Brendan Kennedy said in a statement Tuesday.
The stock, which was up by about 17 percent in the afternoon, surged by as much as 21.9 percent over Monday's closing price of $65.89 a share to an intraday high of $80.30 a share.
In September, Kennedy told CNBC that pharmaceutical companies have to start thinking about partnering with cannabis companies as a "hedge" against the burgeoning marijuana industry. Tilray formed a "strategic alliance" in March with Sandoz to help the drugmaker build this kind of hedge. In return, Novartis would help Tilray co-market and co-develop its products.
Tilray, which has products available in twelve countries, said the deal announced Tuesday builds on the company's mission of making pharmaceutical-grade medical cannabis products available around the world.
Earlier this year, Tilray announced it had become the first and only company to receive regulatory approval in Canada and Germany to export medical cannabis flower for distribution to German patients.
Shares of Tilray are down than 40 percent over the past month.
—CNBC's Thomas Franck contributed to this report.
Retail Executive Michael Kramer Joins MedMen as CFO
Now he will bring that knowledge to MedMen, where he is tasked with advancing the company’s growth plan, focusing on execution, maintaining a strong balance sheet, and moving toward profitability.
A veteran finance executive with more than three decades of experience in the retail industry, Michael Kramer has a proven track record at retailers such as Apple Inc., Abercrombie & Fitch, and Forever 21.
Now he will bring that knowledge to MedMen, where he is tasked with advancing the company’s growth plan, focusing on execution, maintaining a strong balance sheet, and moving toward profitability.
“Michael’s extensive experience, and his success in scaling high-growth businesses will be instrumental as MedMen moves to operationalize the balance of our footprint,” said Adam Bierman, MedMen co-founder and chief executive. “Today, we have the most talented and experienced leadership team in the industry to drive strategy, growth and competitive advantage.”
Kramer’s experience includes serving as CFO of Apple Retail, where he developed successful brick and mortar retail strategies. While at Abercrombie & Fitch, he oversaw 12 quarters of increased year-over-year earnings.
Kramer has been on advisory boards for organizations such as Martha Stewart Living Omnimedia, the Wharton School of Business at the University of Pennsylvania, and Kansas State University’s Business School.
“I cannot imagine a more exciting time to join the MedMen team,” said Kramer. “Rarely do you find an opportunity to build an industry that could truly define future generations. It was immediately clear to me that MedMen has the vision, the strategy and the talent to capitalize on the tremendous growth opportunity in the sector today."
For more information
MedMen
Publication date : 12/19/2018
Now That Hemp And CBD Are Legal, What Comes Next For Food And Beverage?
…they still face regulatory obstacles from the Food and Drug Administration,…
AUTHOR Cathy Siegner
Dec. 20, 2018
Dive Brief:
Now that the 2018 Farm Bill is signed into law, hemp and its derivatives are no longer classified as controlled substances by the Food and Drug Agency, and can legally be regulated by state and tribal governments and commercialized in foods and dietary supplements, New Hope Network reported.
U.S. hemp and CBD companies are expected to pursue listings on Nasdaq and other exchanges soon, according to Bloomberg. However, they still face regulatory obstacles from the Food and Drug Administration, the New Hope Network noted, because the agency's position has been that CBD can't be legally sold in conventional foods or dietary supplements.
While hemp and marijuana are both members of the cannabis family, hemp extracts contain CBD, a non-psychoactive compound that doesn't produce marijuana's trademark high from THC. Hemp does contain very low levels of THC, but hemp products legally sold in the U.S. must have no more than 0.3% of the chemical.
Dive Insight:
Besides removing hemp from the list of controlled substances, the new Farm Bill also expands research into commercial uses for the plant. Currently, hemp ingredients such as CBD oil, powders and seeds are being used to infuse beverages such as iced tea and are being added to a wide variety of other foods, including ice cream, salads, milk and even children's cereal.
The market for CBD and hemp products is already significant and likely to become more so. According to the Capital Press, a New Frontier Data report found that U.S. CBD sales jumped almost 40% in 2017, hitting $367 million. And, according to the Agricultural Marketing Resource Center, the total retail value of all U.S. hemp products last year was estimated at $820 million.
Major food and beverage makers are keeping an eye on the trend and considering how they might adapt forms of THC and CBD to their brands. Bloomberg recently reported that Coca-Cola has been talking with a Canadian cannabis company about marijuana-infused beverages following that country's recent nationwide legalization. A Coca-Cola spokesman told Bloomberg News the company has made no decision yet but is closely watching the growth of CBD as an ingredient in global functional wellness beverages.
THC, CBD and non-psychoactive terpenes from cannabis have appearing in beverages in states where such products are legal. Last year, Heineken-owned Lagunitas Brewing debuted a non-psychoactive, cannabis-flavored IPA brewed with terpenes — organic compounds that give plants their flavors — and the company introduced a THC-based sparkling water this year.
It's not a big stretch to combine cannabis and hops in beer brewing since they are genetically related. The key ingredient they share are terpenes. It's another question whether beer products containing both ingredients will spark a nationwide trend, although with hemp no longer a controlled substance, there could be many more drinks with some form of CBD or THC showing up on shelves and in coolers. Just this week, AB InBev and marijuana grower and distributor Tilray announced a joint $100 million investment to research cannabis-infused nonalcoholic beverages.
Other recent product introductions containing CBD are a nutrition bar from California-based SNAAK Bar that markets itself as optimizing sports performance — and is only available in California and online — and Spring's line of CBD-infused sodas sold in New York, Florida, Nevada, and Illinois.
One big unknown for this market is how the FDA will handle regulating hemp and CBD in products since the agency states that "it is a prohibited act to introduce or deliver for introduction into interstate commerce any food (including any animal food or feed) to which THC or CBD has been added." But because of the new Farm Bill's action regarding hemp, it's possible the agency will institute a rulemaking process to realign its regulation and enforcement of the crop and its products. Dave Donnan, a senior partner in A.T. Kearney's food and beverage practice, told Food Dive the regulatory machine will probably be figuring out how to make CBD a safe and legal ingredient.
“There's all these tactical things that 2019 will be the year to work through,” Donnan said.
Some concerns stem from the cannabis industry's poor food safety record and a tendency to market some edible and supplement products as miracle cures. The FDA took action last year against four firms selling supplements based on marijuana that were advertised as curing cancer. Such claims may not be as likely with CBD products, although the oil is said to help with pain, inflammation, anxiety, depression, insomnia and seizures, among other conditions. Critics say these benefits aren't based on science, but advocates counter there has been plenty of recent research to bolster health claims.
Whether hemp and CBD will be appearing across the board in foods and beverages is unclear at this stage since the ink is barely dry on the new Farm Bill. But as research grows into more commercial applications and companies innovate with new products testing public interest — and FDA's tolerance under its current policies — there could be a newly crowded segment attracting investors, retailers and consumers.
Despite Hemp Legalization, FDA Will Still Consider CBD Products Largely Illegal
FDA maintains hemp oil is a drug ingredient, and requires approval for products.
Published: Dec 23, 2018
Reuters
By ASSOCIATEDPRESS
SEATTLE — The hemp industry still has work ahead to win legal status for hemp-derived cannabidiol, or CBD oil, as an ingredient in food or dietary supplements despite the big farm bill President Donald Trump signed last week designating hemp as an agricultural crop.
CBD oils have become increasingly popular in lotions, tinctures and foods, but their legal status has been murky and the Food and Drug Administration has sent warning letters to some companies making health claims for CBD.
In a statement following Thursday’s bill signing in Washington, FDA Commissioner Scott Gottlieb restated his agency’s stance that CBD is a drug ingredient and therefore illegal to add to food or health products without approval from his agency.
“Selling unapproved products with unsubstantiated therapeutic claims is not only a violation of the law, but also can put patients at risk, as these products have not been proven to be safe or effective,” Gottlieb wrote.
CBD is a non-psychoactive compound found in hemp, a version of the cannabis plant that is low in THC, the part of cannabis that gives pot its high.
An FDA-approved drug for the treatment of seizures, Epidiolex, contains cannabis-derived CBD. GW Pharmaceuticals’ GWPH, +3.72% syrup became the first prescription drug derived from the cannabis plant in June.
The FDA statement also specified parts of hemp that are safe as food ingredients, but the CBD stance disappointed advocates. Courtney Moran, a lobbyist for Oregon hemp farmers, said she plans to work with U.S. Sen. Ron Wyden, an Oregon Democrat, to nudge the FDA toward greater acceptance of CBD.
“We do hope the FDA does clear a pathway for these products that have already hit store shelves and are out in the marketplace,” Moran said. She said it’s an “opportunity for industry to educate the FDA.”
The FDA statement said three ingredients derived from hemp — hulled hemp seeds, hemp seed protein and hemp seed oil — are safe as foods and won’t require additional approvals, as long as marketers do not make claims that they treat disease.
Hemp, like marijuana, already was legal in some states before Trump signed the farm bill. But now hemp farmers will be able to buy crop insurance, apply for loans and grants, and write off their business expenses on their taxes like any other farmer.
One Year of Legal Pot Sales and California Doesn’t Have the Bustling Industry it Expected. Here’s Why
Retailers and growers say they’ve been stunted by complex regulations, high taxes and decisions by most cities to ban cannabis shops.
DEC 27, 2018 | 12:05 AM
When Californians voted in 2016 to allow the sale of recreational marijuana, advocates of the move envisioned thousands of pot shops and cannabis farms obtaining state licenses, making the drug easily available to all adults within a short drive.
But as the first year of licensed sales comes to a close, California’s legal market hasn’t performed as state officials and the cannabis industry had hoped. Retailers and growers say they’ve been stunted by complex regulations, high taxes and decisions by most cities to ban cannabis shops. At the same time, many residents are going to city halls and courts to fight pot businesses they see as nuisances, and police chiefs are raising concerns about crime triggered by the marijuana trade.
Gov.-elect Gavin Newsom, who played a large role in the legalization of cannabis, will inherit the numerous challenges when he takes office in January as legislators hope to send him a raft of bills next year to provide banking for the pot industry, ease the tax burden on retailers and crack down on sales to minors.
Hundreds of new California laws take effect Jan. 1. How will they affect you? »
“The cannabis industry is being choked by California’s penchant for over-regulation,” said Dale Gieringer, director of California NORML, a pro-legalization group. “It’s impossible to solve all of the problems without a drastic rewrite of the law, which is not in the cards for the foreseeable future.”
After voters legalized marijuana two years ago under Proposition 64, state officials estimated in there would be as many as 6,000 cannabis shops licensed in the first few years. But the state Bureau of Cannabis Control has issued just 547 temporary and annual licenses to marijuana retail stores and dispensaries. Some 1,790 stores and dispensaries were paying taxes on medicinal pot sales before licenses were required starting Jan. 1.
(Los Angeles Times)
State officials also predicted that legal cannabis would eventually bring in up to $1 billion in revenue a year. But with many cities banning pot sales, tax revenue is falling far short of estimates. Based on taxes collected since Jan. 1, the state is expected to bring in $471 million in revenue this fiscal year — much less than the $630 million projected in Gov. Jerry Brown’s budget.
“I think we all wish we could license more businesses, but our system is based on dual licensing and local control,” said Alex Traverso, a spokesman for the state Bureau of Cannabis Control, referring to the requirement that cannabis businesses get permission from the state and the city in which they want to operate.
Less than 20% of cities in California — 89 of 482 — allow retail shops to sell cannabis for recreational use, according to the California Cannabis Industry Assn. Cities that allow cannabis sales include Los Angeles, Oakland, San Francisco and San Diego.
Coverage of California politics »
Eighty-two of Los Angeles County’s 88 cities prohibit retail sales of recreational marijuana, according to Alexa Halloran, an attorney specializing in cannabis law for the firm Solomon, Saltsman & Jamieson. Pot shops are not allowed in cities including Burbank, Manhattan Beach, Alhambra, Beverly Hills, Inglewood, Compton, Redondo Beach, El Monte, Rancho Palos Verdes and Calabasas.
“While some cities have jumped in headfirst, we've taken a deliberate approach,” said Manhattan Beach Mayor Steve Napolitano, “to see how things shake out elsewhere before further consideration. I think that's proven to be the smart approach.”
Can you carry marijuana in LAX? Yes, but it’s more complicated than that
SEP 28, 2018 | 6:40 AM
Voters have also been reluctant to allow cannabis stores in their communities.
Of the 64 California cities and counties that voted on cannabis ballot measures in the November midterm election, eight banned the sale of cannabis or turned down taxation measures, seven allowed sales and 49 approved taxes on pot businesses, said Hilary Bricken, an attorney who represents the industry. Among them, voters in Malibu approved pot shops while Simi Valley residents voted for an advisory measure against allowing retail sales.
Javier Montes, owner of Wilmington pot store Delta-9 THC, says he is struggling to compete with a large illicit market unburdened by the taxes he pays as a licensed business.
“Because we are up against high taxes and the proliferation of illegal shops, it is difficult right now,” Montes said. “We expected lines out of our doors, but unfortunately the underground market was already conducting commercial cannabis activity and are continuing to do so.”
Montes, who received his city and state licenses in January, says his business faces a 15% state excise tax, a 10% recreational marijuana tax by the city of Los Angeles and 9.5% in sales tax by the county and state — a markup of more than 34%.
He says there isn’t enough enforcement against illegal operators, and the hard times have caused him to cut the number of employees at his shop in half this year from 24 to 12.
“It’s very hard whenever I have to lay people off, because they are like a family to me,” said Montes, who is vice president of the United Cannabis Business Assn., which represents firms including the about 170 cannabis retailers licensed by the city of Los Angeles.
DELTA-9 faces a 15% state excise tax, a 10% recreational cannabis tax by the city of Los Angeles and 9.5% in sales tax by the county and state, the shop owner says. (Marcus Yam / Los Angeles Times)
Sky Siegel, who operates a cannabis business in Studio City, said he recently gave up trying to open another store in Santa Monica because of its restrictions on such businesses.
“It turns into this ‘Hunger Games’ to try to get a license,” said Siegel, who is general manager of Perennial Holistic Wellness Center, which has a dozen employees in Studio City and also operates a delivery service.
He says his firm is up against thousands of unlicensed delivery services going into cities where storefronts are banned.
“To me, it doesn’t make sense” that many cities have prohibited shops, he said. “Banning does nothing. It’s already there. Why not turn this into a legitimized business, which is what the people want.”
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California has also issued fewer cultivation licenses than expected in the first year of legalization, with about 2,160 growers registered with the state; an estimated 50,000 commercial cannabis cultivation operations existed before Proposition 64, according to the California Growers Assn. Some have given up growing pot, but many others are continuing to operate illegally.
The trade group hoped to see at least 5,000 commercial growers licensed in the first year, said Hezekiah Allen, the group’s former executive director who is now chairman of Emerald Grown, a cooperative of 130 licensed cultivators.
“We are lagging far behind,” Allen said. “It’s woefully inadequate. Most of the people in California who are buying cannabis are still buying it from the unregulated market. There just isn’t a reason for most growers to make the transition.”
Assemblyman Jim Wood (D-Healdsburg), who has crafted cannabis regulations, said the licensing system had not yet lived up to its promise.
“The state licensing process this past year has been a painful one,” said Wood, adding that the complex rules are particularly difficult for small businesses. “I recognize that this has been a significant undertaking for the state, and you combine that with the cannabis industry learning how to navigate the process — it’s been difficult for them both.”
The legalization of recreational pot has also created tension in areas of the state where cannabis growers are operating close to residents.
Jesse Jones said he moved his family to Petaluma from Marin County six months ago so his three children could enjoy more open space, but he is now fighting a proposal for a cannabis farm to operate a few hundred feet from his home, in part because of safety issues.
“You are going to have what is still a [Schedule 1] narcotic being produced in line of sight of my kids’ trampoline, on a shared road that was never intended for this type of commercial operation,” said Jones, an energy industry executive.
Sanjay Bagai, a former investment banker who lives with his family next door to a new cannabis farm in Sonoma County, is a leader of a residents group called Save Our Sonoma Neighborhoods, which has obtained a preliminary court ruling against one cannabis-growing operation.
Bagai said his group was “not anti-cannabis” but added that pot cultivation “is not something that fits into our neighborhood here.”
“The smell is horrific,” he said of the marijuana plants. “It’s like rotting flesh. And the traffic is insane.”
Quality-of-life complaints have also surfaced in neighborhoods where cannabis sellers have set up shop.
Van Nuys Neighborhood Council President George Thomas said he had received about a dozen complaints in the last year from residents living near pot stores who were concerned about loitering, the smell of marijuana smoke and other issues. Thomas, who is the publisher of the Van Nuys News Press and is an LAPD volunteer, passes complaints on to police officers.
“If they are not in compliance,” Thomas said, “if they are within a thousand feet of a school or church, we are totally against them and we are happy to work with the neighborhood prosecutor in the city attorney’s office to shut them down.”
At the same time, he said, the neighborhood council has worked with licensed cannabis stores to get them involved in improving the community and has asked the Los Angeles City Council to devote some of the tax revenue from Van Nuys shops to solving local problems, including homelessness and crime.
Meanwhile, despite concerns from law enforcement, the state is finalizing a proposal to allow deliveries throughout California — including in cities that ban retail stores. The new rule by Lori Ajax, chief of the state Bureau of Cannabis Control, is expected to be implemented in January.
Ajax says she believes that as the system is refined and is shown to operate successfully in some cities, other local governments will allow retail pot sales. But opponents of pot legalization, including Kevin Sabet, president of Smart Approaches to Marijuana, are happy that most cities are saying “no” to selling the drug.
“The residents of Compton and these other cities have seen the ills that come with allowing marijuana in the door,” Sabet said, “including skyrocketing drugged driving; the promise, then failure of social justice; and the targeting of children through the use of colorful and deceptive candies, gummies and sodas.”
Even in cities that allow cannabis sales, businesses face big hurdles.
The various taxes and fees could drive up the cost of legal cannabis in parts of California by 45%, according to the global credit ratings firm Fitch Ratings.
There is less of a tax burden in Oregon, where voters legalized recreational pot in 2014, and state and local taxes are capped at 20%. With nearly a tenth of the population of California, that state has more licensed cannabis shops — 601. On a per capita basis, Alaska has also approved more pot shop licenses than California, — 94 so far. The state imposes a tax on cultivation, but there is no retail excise tax on pot.
Assemblyman Rob Bonta (D-Alameda) tried and failed this year to push for a temporary reduction in California’s pot taxes to help the industry get on its feet.
“It’s a work in progress,” Bonta said of the current regulatory system. “We knew we weren’t going to get it exactly right on Day 1, and so we’re always looking for ways to achieve the original intentions and goal.”
Bonta said he may revisit the taxation issue in 2019 and is exploring the idea of having the state do more to get cities to approve businesses, possibly by providing advisory guidelines for local legalization that address cities’ concerns.
California cannabis businesses, like their counterparts in Colorado and Oregon, also face costs to test marijuana for harmful chemicals.
“The testing costs are excessive — $500 to $1,000 per batch, and most crops involve multiple batches,” said Gieringer, the director of California NORML. “No other agricultural product is required to undergo such costly or sensitive tests.”
Another problem hampering the legal market is a lack of banking for cannabis businesses. Federally regulated banks are reluctant to handle cash from pot, which remains an illegal drug under federal law.
“Banking continues to be an issue in terms of creating a real public safety problem with significant amounts of cash being moved for transactions,” said Bonta, who co-wrote a bill this year that would have created a state-sanctioned bank to handle money from pot sellers. It failed to pass after legislative analysts said the proposal faced “significant obstacles,” including no protection from federal law enforcement.
Industry leaders and activists said they knew it would be a slow process to establish a strong legal market, noting other states with legal pot, including Colorado, Washington and Oregon, also faced growing pains and problems along the way.
But Ajax, the state pot czar, says her agency has had a productive first year, issuing initial licenses, refining the rules and stepping up action against unlicensed operations, including partnering with the Los Angeles Police Department to seize $2 million worth of marijuana products from an unlicensed shop in Sylmar in October.
“I am optimistic about the coming year, where our focus will be primarily on getting more businesses licensed and increasing enforcement efforts on the illegal market,” Ajax said.
CAN (SK): Herb Grower Talks About Switch To Marijuana
If everything goes according to plan, Brian Bain will convert his Saskatoon market garden to a marijuana nursery by next year.
He said it's a matter of economics.
"All of a sudden, you have a crop that comes along, that you can pay your employees better, you can pay yourself better and the business itself will do better," he told CBC Radio's Saskatoon Morning. "It's really hard not to make that switch."
Right now, Bain grows herbs like mint, chives, dill and basil and sells them to grocery stores across western Canada. He plans to convert his hydroponic garden to a nursery that will sell live pot plants to licensed stores.
Bain said margins in the produce business are tight and it can be difficult to make money.
Publication date : 12/13/2018