TheTHCReport | Green Rush News

Iowa Lawmakers Block Study Committee on New Medical Marijuana Bill

Iowa Lawmakers Block Study Committee on New Medical Marijuana Bill

Going back more than 20 years, Kyle Kazan has syndicated private equity real estate and launched 23 funds. He knows his way around property management and real estate analysis, which are vital tools for the California cannabis entrepreneur.

He took an interest in advocating for cannabis reform over those earlier years and then, seeing an opportunity, leapt into the nascent California cannabis market. Kazan started four funds that consolidated into California Cannabis Enterprises in 2016; the company’s portfolio includes Glass House Farms, Glass House Brands, Roam Escapes, The Pottery and Bud & Bloom.

On July 9, CCE announced the appointment of Derrek Higgins as its CFO. Higgins previously worked as the CFO of FLRish Inc., the parent company of Harborside. While there, he closed a $19.65-million capital raise prior to Harborside’s public listing on the Canadian Securities Exchange.

With that big hire on the books, we took a moment to ask Kazan how the market is evolving in California (answer: rapidly) and what it takes to build a team around an internal culture.

Cannabis Business Times: What’s the impact of Derrek’s background on the company—and specifically on the CFO role?

Kyle Kazan: From 30,000 feet, what makes CCE special are the people. Graham [Farrar] is the president of Glass House [Farms], which is a wholly owned subsidiary of CCE, and he does an amazing job. We’ve got some great assets, and we’ve got some great people. And now, as we’re rolling all these private equity funds and all these assets into one—and we’ve been in contemplating the public markets now for over a year—we decided now it’s time to build a C-suite with the best talent. I interviewed—and when I say ‘interviewed,’ I spent over three hours with—13 different people, and I’m absolutely determined that we have a culture fit and we have talent. And I kept calling the CFO position the ‘unicorn,’ and Derrek’s the unicorn. That’s somebody who has solid accounting experience, M&A experience and then public market experience. The unicorn was cannabis, too.

Not only does he fit our culture, he’s a hard worker, he’s humble, he just gets in there and gets after it. He has extensive market knowledge in cannabis, so that he can help us on all the M&A because he understands what the different markers are. He’s very good at saying, ‘Look, this is how we structure the deals, and this is how they’ll be looked favorably by institutional investors.’

CBT: When you’re in those lengthy interview settings, and you’re talking to these folks, how have you gone about identifying the culture of CCE and then looking for those fits, especially in the C-suite?

KK: One thing that I learned pretty quickly was: Find the right people and put them in the right seats. And for me, as the CEO of the company, it’s: Make sure that that our interests are aligned financially, but also that we see the world the same way. When you’re building a company, there’s friction, there’s pressure, there’s problems. So, the method of my madness that I’ve come up with running companies for over 20 years is every single CFO candidate met me at my house on a weekend or maybe a Friday morning, and I would take them on a hike. When I say hike, it was a three-hour hike—ups and downs—and from my law enforcement background I’m pretty good at asking the same question four different ways over the course of a hike.

Over the course of a long hike, you’re getting a little bit tired, you don’t know where the hike ends, you just start answering questions, and then you get a real feel for somebody. And I encourage them to ask me questions. And also feel free to meet Graham [Farrar, CEO of Glass House Farms], go visit our properties, do an audit on us—because I can’t afford to get the CFO position wrong. I can’t afford to get the COO position wrong. Graham and I started working together in 2016, so we’ve gotten into our own cadence, and we work really well together. And I didn’t want to screw that up. And so, to that end, every two months we get together, we have a four-hour meeting, and the spouses go to a spa, so that they can do some team-building too. You know what it’s like in this industry: We’re working in dog years right now. So, there has to be a buy-in, this has to become a family. And this needs to be a team.

CBT: Once you’ve got the team, how do you maintain that culture?

KK: We pay probably lower than almost every other cannabis company when it comes to salary. I basically put a cap at $250,000, including me. We just got valued at $380 million, conservative value. So, $380-million company, C-suite, a guy with Derrek’s role, I said, ‘Look, the whole reason we’re here is to build equity—not just for the investors, but for us.’ We align ourselves with the investors, we’re here to make millions. We’re not here to make it in salary, because that is not aligning our interest with investors.

CBT: How does your real estate background figure into the company’s goals?

KK: I look for capital dislocations. I always try and buy during a financial crisis; I cut my teeth during the RTC fiasco with all the S&Ls blowing up in the late ‘80s and early ‘90s. As an investor, that’s how I got out of a police car [and left a career in law enforcement], was by investing my own account. For many years, I had to analyze deals, and mainly these are apartment or commercial properties.

The people that came to me and said, ‘Hey, would you invest [in cannabis]?’ Back in 2011 and 2012 in Los Angeles? I said, ‘No. Hell no.’ But as I stayed in the battle to help these folks by trying to speak out about legalization, to try and help turn public opinion and do my share, all of a sudden I started looking at this going, ‘Oh my god, there’s a massive capital dislocation. There’s going to be a massive industry here. There’s the biggest capital dislocation I have ever seen.’

CBT: How is 2019 stacking up, as opposed to 2018? What are some of the questions guiding you now that might be different from one year ago?

KK: It’s a much better day in that far less people are being arrested for cannabis. And I can’t tell you how much of a big deal that is to me. In California, there’s a good new day for a lot of people. I’m super excited about that. On the business end, I would have told you in 2016 that by 2019 we would see major compression in the pricing of the ag segment—Glass House—of our business. You know, I’ve invested in in some big pecan farms just south of Macon, Ga., for a number of years. So, I know what it’s like to be in a mature ag business and how difficult that is. We’ve been preparing to get ahead by taking our COGS down and making sure we have no debt, so that when the compression comes not only will we be a survivor, but we will thrive. To the contrary: Marijuana in California is the highest regulated ag product in any state. Because we are well capitalized and came into this with the idea that we are going to make as high quality as we could with the lowest COGS, using technology and our scale, we’ve been in a great position where we have good product consistency. And we pass tests. So, we’ve had no issues. For others, each time [the state adds] in heavy metals [to the testing regulations], testing wipes out a bunch of people. And licensing is difficult around the state; it’s hard to get new businesses up. So, because of that, we’ve raised our prices three times this year, and we have a line out the door for trim.

CBT: How does brand-building fit into this?

KK: Our COO was the CFO of Nissin Foods. Nissin Foods is Cup Noodles. Before that, he worked at Nestle. What he basically said was, ‘Kyle, you’re going from silos to horizontal.’ Just like Nestle. You care about all your COGS—going from the genetics to the consumer. For our measurables, we’re going to be pushing those brands, because that’s where we’re going to get our margin—through the brands. That’s why our manufacturing facility—which will be finished in the fourth quarter this year—it’s in a zero-tax area. If I’m selling all that through my retail, I can stack a lot of the cost in the zero-tax, and tax is a big deal here. I’m in ‘Taxifornia.’ Every penny is going to count; we take it seriously now. You can get away with being sloppy now, because of the margins, but you will not be able to do that at some point in the future.

We have a board, an internal board that shows demographics by age and what the product does. We look at: This one has flower, this one’s a vape pen, this one is an edible. We are looking to make sure that our suite of brands doesn’t hit the same exact consumer; we’re targeting for different people. Our hope is at the end of the day, when we go up to Hall of Flowers in September, we will likely have the largest suite of brands of anybody in California.

CBT: That’s an interesting point of distinction between other acquisition strategies that are more focused on just getting feet on the ground in as many states as possible.

KK: We’ve been offered a Florida license that we could buy for $60 million. We’ve been offered—no cash, just stock—dispensaries in other states. And I’ve considered them. And I’m not saying that I wouldn’t consider, you know, Vegas. But, number one, my advantage right now with California is that, as the walls come down and when we can start delivering out of state, my COGS are going to be the cheapest in this state—and I think in the country. I’ve got the California reputation and the appellation. The other thing is that I only have to know my state’s laws. I don’t have to know Ohio’s. At the end of the day, if we get retail right here and we branded it correctly, then we can always manage, we can always franchise and we can always figure that out. But to me, I’m good just focusing in California. And we’re already talking to some of the MSOs about licensing our brands; I can get my brands out there. And my goal, quite frankly, is by this time next year we’ll be all over Florida. And if New York ever gets its act together we will be in New York.

I feel very, very comfortable that the road we’re taking with the team we have and the assets that we purchased and how they’re structured—we’re going to be very, very hard to compete with.

Editor’s Note: The interview has been edited for length and clarity.

Published at Fri, 12 Jul 2019 14:03:00 +0000

U.S. Rep. Ilhan Omar Calls for Federal Legalization, Montana and Arkansas Launch Adult-Use Ballot Initiatives: Week in Review

U.S. Rep. Ilhan Omar Calls for Federal Legalization, Montana and Arkansas Launch Adult-Use Ballot Initiatives: Week in Review

Going back more than 20 years, Kyle Kazan has syndicated private equity real estate and launched 23 funds. He knows his way around property management and real estate analysis, which are vital tools for the California cannabis entrepreneur.

He took an interest in advocating for cannabis reform over those earlier years and then, seeing an opportunity, leapt into the nascent California cannabis market. Kazan started four funds that consolidated into California Cannabis Enterprises in 2016; the company’s portfolio includes Glass House Farms, Glass House Brands, Roam Escapes, The Pottery and Bud & Bloom.

On July 9, CCE announced the appointment of Derrek Higgins as its CFO. Higgins previously worked as the CFO of FLRish Inc., the parent company of Harborside. While there, he closed a $19.65-million capital raise prior to Harborside’s public listing on the Canadian Securities Exchange.

With that big hire on the books, we took a moment to ask Kazan how the market is evolving in California (answer: rapidly) and what it takes to build a team around an internal culture.

Cannabis Business Times: What’s the impact of Derrek’s background on the company—and specifically on the CFO role?

Kyle Kazan: From 30,000 feet, what makes CCE special are the people. Graham [Farrar] is the president of Glass House [Farms], which is a wholly owned subsidiary of CCE, and he does an amazing job. We’ve got some great assets, and we’ve got some great people. And now, as we’re rolling all these private equity funds and all these assets into one—and we’ve been in contemplating the public markets now for over a year—we decided now it’s time to build a C-suite with the best talent. I interviewed—and when I say ‘interviewed,’ I spent over three hours with—13 different people, and I’m absolutely determined that we have a culture fit and we have talent. And I kept calling the CFO position the ‘unicorn,’ and Derrek’s the unicorn. That’s somebody who has solid accounting experience, M&A experience and then public market experience. The unicorn was cannabis, too.

Not only does he fit our culture, he’s a hard worker, he’s humble, he just gets in there and gets after it. He has extensive market knowledge in cannabis, so that he can help us on all the M&A because he understands what the different markers are. He’s very good at saying, ‘Look, this is how we structure the deals, and this is how they’ll be looked favorably by institutional investors.’

CBT: When you’re in those lengthy interview settings, and you’re talking to these folks, how have you gone about identifying the culture of CCE and then looking for those fits, especially in the C-suite?

KK: One thing that I learned pretty quickly was: Find the right people and put them in the right seats. And for me, as the CEO of the company, it’s: Make sure that that our interests are aligned financially, but also that we see the world the same way. When you’re building a company, there’s friction, there’s pressure, there’s problems. So, the method of my madness that I’ve come up with running companies for over 20 years is every single CFO candidate met me at my house on a weekend or maybe a Friday morning, and I would take them on a hike. When I say hike, it was a three-hour hike—ups and downs—and from my law enforcement background I’m pretty good at asking the same question four different ways over the course of a hike.

Over the course of a long hike, you’re getting a little bit tired, you don’t know where the hike ends, you just start answering questions, and then you get a real feel for somebody. And I encourage them to ask me questions. And also feel free to meet Graham [Farrar, CEO of Glass House Farms], go visit our properties, do an audit on us—because I can’t afford to get the CFO position wrong. I can’t afford to get the COO position wrong. Graham and I started working together in 2016, so we’ve gotten into our own cadence, and we work really well together. And I didn’t want to screw that up. And so, to that end, every two months we get together, we have a four-hour meeting, and the spouses go to a spa, so that they can do some team-building too. You know what it’s like in this industry: We’re working in dog years right now. So, there has to be a buy-in, this has to become a family. And this needs to be a team.

CBT: Once you’ve got the team, how do you maintain that culture?

KK: We pay probably lower than almost every other cannabis company when it comes to salary. I basically put a cap at $250,000, including me. We just got valued at $380 million, conservative value. So, $380-million company, C-suite, a guy with Derrek’s role, I said, ‘Look, the whole reason we’re here is to build equity—not just for the investors, but for us.’ We align ourselves with the investors, we’re here to make millions. We’re not here to make it in salary, because that is not aligning our interest with investors.

CBT: How does your real estate background figure into the company’s goals?

KK: I look for capital dislocations. I always try and buy during a financial crisis; I cut my teeth during the RTC fiasco with all the S&Ls blowing up in the late ‘80s and early ‘90s. As an investor, that’s how I got out of a police car [and left a career in law enforcement], was by investing my own account. For many years, I had to analyze deals, and mainly these are apartment or commercial properties.

The people that came to me and said, ‘Hey, would you invest [in cannabis]?’ Back in 2011 and 2012 in Los Angeles? I said, ‘No. Hell no.’ But as I stayed in the battle to help these folks by trying to speak out about legalization, to try and help turn public opinion and do my share, all of a sudden I started looking at this going, ‘Oh my god, there’s a massive capital dislocation. There’s going to be a massive industry here. There’s the biggest capital dislocation I have ever seen.’

CBT: How is 2019 stacking up, as opposed to 2018? What are some of the questions guiding you now that might be different from one year ago?

KK: It’s a much better day in that far less people are being arrested for cannabis. And I can’t tell you how much of a big deal that is to me. In California, there’s a good new day for a lot of people. I’m super excited about that. On the business end, I would have told you in 2016 that by 2019 we would see major compression in the pricing of the ag segment—Glass House—of our business. You know, I’ve invested in in some big pecan farms just south of Macon, Ga., for a number of years. So, I know what it’s like to be in a mature ag business and how difficult that is. We’ve been preparing to get ahead by taking our COGS down and making sure we have no debt, so that when the compression comes not only will we be a survivor, but we will thrive. To the contrary: Marijuana in California is the highest regulated ag product in any state. Because we are well capitalized and came into this with the idea that we are going to make as high quality as we could with the lowest COGS, using technology and our scale, we’ve been in a great position where we have good product consistency. And we pass tests. So, we’ve had no issues. For others, each time [the state adds] in heavy metals [to the testing regulations], testing wipes out a bunch of people. And licensing is difficult around the state; it’s hard to get new businesses up. So, because of that, we’ve raised our prices three times this year, and we have a line out the door for trim.

CBT: How does brand-building fit into this?

KK: Our COO was the CFO of Nissin Foods. Nissin Foods is Cup Noodles. Before that, he worked at Nestle. What he basically said was, ‘Kyle, you’re going from silos to horizontal.’ Just like Nestle. You care about all your COGS—going from the genetics to the consumer. For our measurables, we’re going to be pushing those brands, because that’s where we’re going to get our margin—through the brands. That’s why our manufacturing facility—which will be finished in the fourth quarter this year—it’s in a zero-tax area. If I’m selling all that through my retail, I can stack a lot of the cost in the zero-tax, and tax is a big deal here. I’m in ‘Taxifornia.’ Every penny is going to count; we take it seriously now. You can get away with being sloppy now, because of the margins, but you will not be able to do that at some point in the future.

We have a board, an internal board that shows demographics by age and what the product does. We look at: This one has flower, this one’s a vape pen, this one is an edible. We are looking to make sure that our suite of brands doesn’t hit the same exact consumer; we’re targeting for different people. Our hope is at the end of the day, when we go up to Hall of Flowers in September, we will likely have the largest suite of brands of anybody in California.

CBT: That’s an interesting point of distinction between other acquisition strategies that are more focused on just getting feet on the ground in as many states as possible.

KK: We’ve been offered a Florida license that we could buy for $60 million. We’ve been offered—no cash, just stock—dispensaries in other states. And I’ve considered them. And I’m not saying that I wouldn’t consider, you know, Vegas. But, number one, my advantage right now with California is that, as the walls come down and when we can start delivering out of state, my COGS are going to be the cheapest in this state—and I think in the country. I’ve got the California reputation and the appellation. The other thing is that I only have to know my state’s laws. I don’t have to know Ohio’s. At the end of the day, if we get retail right here and we branded it correctly, then we can always manage, we can always franchise and we can always figure that out. But to me, I’m good just focusing in California. And we’re already talking to some of the MSOs about licensing our brands; I can get my brands out there. And my goal, quite frankly, is by this time next year we’ll be all over Florida. And if New York ever gets its act together we will be in New York.

I feel very, very comfortable that the road we’re taking with the team we have and the assets that we purchased and how they’re structured—we’re going to be very, very hard to compete with.

Editor’s Note: The interview has been edited for length and clarity.

Published at Sat, 13 Jul 2019 13:00:00 +0000

Female Founders in Their 50s Are Starting Cannabis Companies to Take Care of Their Own

Female Founders in Their 50s Are Starting Cannabis Companies to Take Care of Their Own

Jennifer Chapin, the cofounder of Kikoko, recently recalled how she was “laughed out of the dispensaries” when she tried to sell her low-dose cannabis-infused teas in her company’s early days. Three years later, Kikoko’s teas, which come in sachets and canisters wrapped with pink-and-purple stripes and cartoon flowers promising benefits such as “Sensuali-tea” and “Tranquili-tea,” are sold through over 300 storefronts and delivery services across California.

“We are a women-centric, women-owned, women-operated company,” Chapin declared to a room full of women at Arcview, a conference for cannabis investors, in Los Angeles in February. “By women, for women.”

Arcview welcomes investors irrespective of gender, but Kikoko had sponsored a women-only “tea party” (with unmedicated tea) to facilitate some female-friendly networking and announce that the company was seeking capital for expansion into new product categories, with minimum investments starting at $1 million.

Courtesy, Kikoko

Founders of female-focused cannabis startups like Kikoko may soon be laughing all the way to the bank—and they’re getting there by looking beyond millennials, and catering to women in their 40s, 50s, and beyond. Executives such as Chapin, who is 55, are listening to older women’s wishes for low-dose cannabis products that address concerns such as sleep, anxiety, and sexual pleasure, and positioning their companies at the very lucrative intersection of women, weed, and wellness.

Wellness, women, and weed

It’s a market that’s growing. Women control the majority of household purchases, and according to the US Consumer Expenditure Survey, single women over 45 spend about $640 per year on personal care items and $400 annually on drugs. As legalization takes hold, those products are increasingly likely to contain—or even be replaced by—cannabis. According to sales data and a survey of 4,000 cannabis consumers by the San Francisco-based delivery platform Eaze, the number of female cannabis consumers nearly doubled in 2018, and with their growth outpacing men, women are on track to be half of the cannabis market by 2022. Female baby boomers on the platform grew by nearly a quarter between 2017 and 2018.

Kimberly Kovacs, the cofounder and CEO of MyJane, which delivers “curated cannabis” boxes  to women (think Birchbox-meets-Eaze), was also at Arcview. That same week, her company was acquired by the cannabis logistics conglomerate MJIC for an undisclosed sum, after completing just three weeks of deliveries. MJIC CEO Sturges Karban was unabashed about the acquisition’s main attraction.

“Women are the new targets of the adult-use cannabis wellness sector,” wrote Karban, in a press release. “Yet their needs are not being addressed by the cannabis industry.”

“We don’t call that micro-dosing. We just call that normal.”

Getting stoned is not chief among those needs, Kovacs found when MyJane conducted a survey of women in Orange County, CA. When I asked what was, she didn’t skip a beat: “Sleep,” she said. “100%.”

“I don’t want to take an Ambien,” said Kovacs, who is 52, with blonde hair and clear blue eyes. “I don’t even want to take Melatonin … half a cup of tea, I sleep through the night.” (MyJane includes Kikoko tea amongst its offerings in its boxes.)

Courtesy, MyJane

In addition to better sleep, women told MyJane they were seeking relief from pain, anxiety, and stress. Many hadn’t used cannabis before and said they wanted their THC—the chemical compound that results in feeling high—in very low doses.

“By the way, we don’t call that micro-dosing,” said Kovacs. “We just call that normal.”

Ding-dong, Avon calling

Both Chapin and Kovacs referenced Avon—the 135-year-old cosmetics company known for its door-to-door saleswomen. “I don’t want to go to a dispensary,” said Kovacs. “I don’t even want to go to the grocery store anymore!”

“I don’t want to go to a dispensary. I don’t even want to go to the grocery store anymore!”

Instead, these companies strive to deliver both products and education in personal and familiar settings, outside dispensaries. Part of what they’re doing is teaching their customers how to use the range of new products available in the sector.

MyJane’s customers create online profiles answering questions about their symptoms, food allergies, preferences, and prior experience with cannabis. Then, a female “ambassador” from the company arrives at a customer’s doorstep on the agreed-upon date and time to deliver a box of selected products and walk the recipient through each one.

Kikoko’s teas are sold via dispensaries and delivery services, but the company also holds tea parties which include a “cannabis 101” slideshow about the plant’s history and benefits. Chapin estimates that in 2018, the company held over 100 of these events in private homes, country clubs, and retirement communities throughout California. (It was at a Kikiko tea party in Santa Monica that Chapin and Kovacs first met.)

Courtesy, Kikoko

Anyone for a cuppa?

Kikoko’s website has a page for people who want to host their own “High Tea Parties,” complete with downloadable images for invitations, tips (take public transit), and a Pinterest page of suggested menu items.

“We envision an army of women throughout the state of California,” said Chapin, of the consumers she hopes to recruit into hosting high teas.

Bridgett Davis, the founder of the Los Angeles-based cannabis topicals brand Big Momma’s Legacy, is also building a business based on older women customers—using a similar model of cohosting tea parties with local cannabis brands at private homes to slowly build her business from the ground up.

“It’s a group of maybe 10 to 15 of my golden girls,” she said of a typical event. “I have a variety of clients, from white ladies in Brentwood to old grandmas in Compton.”

Quartz/Jenni Avins

Bridgett Davis, the founder of Big Momma’s Legacy.

Davis agreed that a familiar setting and privacy were crucial to her customers, who use her salve and roll-on oil to ease the pain of rheumatism and sciatica, and said she’s counting on her “golden girls” to help her grow her business.

“I cannot ask for better brand ambassadors, and they’re not paid,” she said. “It’s grass-roots, and I’m building it bit by bit. When one of my seniors talks to their friend, their friend is listening.”

Riding the wellness wave

With the global wellness industry now worth an estimated $4 trillion worldwide, it’s little wonder that cannabis companies such as MyJane, Kikoko, and countless others position themselves as purveyors of supplies for self-care rather than recreation. And women—especially those in middle-age—are frequently caring not only for themselves, but also for their friends, children, and aging parents. (Kovacs told me she supplies her father with topicals for his arthritis, and her mother with tea for sleeping.) No wonder they’re tired.

Getty/manonallard

Don’t bogart that joint, girlfriend.

Both Kovacs and Chapin came to cannabis by way of a woman close to them suffering as a result of cancer. In Kovacs’ case, it was her mother-in-law, who eased her post-surgery pain and reduced her opioid use with cannabis. In Chapin’s, it was a dear friend who used edibles to aid her sleep and appetite, but was getting pummeled by high dosages. Both women saw the opportunity for products that spoke to women’s wellness.

Plus, noted MyJane cofounder Cara Raffele, “There’s a trust gap in healthcare for women.” Indeed, as Quartz’s Annaliese Griffin has written, that trust gap has made women particularly receptive to wellness brands that address their health concerns, respect their pain, and speak to them personally.

During her presentation at Arcview, Chapin said at one point, “we’re really tired of taking Ambien.” A women near me whispered under her breath: “That’s so me.”

Published at Mon, 20 May 2019 21:58:56 +0000

1933 Industries Inc (OTCMKTS:TGIFF) Reaches Expansion Milestone With Over 800 Retail Outlets

1933 Industries Inc (OTCMKTS:TGIFF) Reaches Expansion Milestone With Over 800 Retail Outlets

1933 Industries Inc
(OTCMKTS:TGIFF)
recently celebrated a key expansion milestone in the U.S
after opening more than 800 retail outlets for its cannabis brands.

The achievement highlights the company’s commitment to
expanding its business into more areas as part of its strategy to expand its CBD
Brand Distribution. So far the impressive number of retail outlets allow 1933
Industries to achieve coast-to-coast distribution in the U.S. Although it has
impressive figures, the company intends to continue expanding in line with its
plan to provide customers more access to its Canna Hemp™ brand.

“We have been extremely successful at building our own
distribution channels across the country, which is now one of the largest
networks of CBD and a key differentiator of our Company,” stated 1933
Industries president, Ms. Ester Vigil.

Vigil also pointed out that her company’s integrated market
approach might attract third-party partners. This is particularly because TGIFF
basically controls all the processes from cultivation, extraction, marketing,
manufacturing, and sales. It also handles the branding, as well as
distribution. It also plans to commence CBD processing before the end of 2019.

The Canna Hemp brand consists of more than 70 agricultural
hemp-based, high-quality products infused with CBD. The products also focus on
a wide variety of effects. Market analysts and researchers forecast that CBD
sales will reach $20 billion in the U.S market alone by 2024.

1933 Industries
receives permanent occupancy permit for Las Vegas facility

1933 Industries recently announced that it was awarded a
permanent residency permit for a facility located in Las Vegas, Nevada. The
facility is important for the company’s operations in Las Vegas, especially as
far as its expansion plans in the state are concerned.

TGIFF CEO Chris Rebentisch stated that his company was
pleased about moving into the new facility, as well as commencing operations.
The firm expects the facility to increase its flower cultivation by five-fold
and this will also boost the growth of its AMA branded products. The facility will
therefore be accretive to the company’s revenues in the future and even help it
to attract more business partners in the future.

Published at Wed, 10 Jul 2019 12:01:58 +0000

Female Founders in Their 50s Are Starting Cannabis Companies to Take Care of Their Own

Female Founders in Their 50s Are Starting Cannabis Companies to Take Care of Their Own

Jennifer Chapin, the cofounder of Kikoko, recently recalled how she was “laughed out of the dispensaries” when she tried to sell her low-dose cannabis-infused teas in her company’s early days. Three years later, Kikoko’s teas, which come in sachets and canisters wrapped with pink-and-purple stripes and cartoon flowers promising benefits such as “Sensuali-tea” and “Tranquili-tea,” are sold through over 300 storefronts and delivery services across California.

“We are a women-centric, women-owned, women-operated company,” Chapin declared to a room full of women at Arcview, a conference for cannabis investors, in Los Angeles in February. “By women, for women.”

Arcview welcomes investors irrespective of gender, but Kikoko had sponsored a women-only “tea party” (with unmedicated tea) to facilitate some female-friendly networking and announce that the company was seeking capital for expansion into new product categories, with minimum investments starting at $1 million.

Courtesy, Kikoko

Founders of female-focused cannabis startups like Kikoko may soon be laughing all the way to the bank—and they’re getting there by looking beyond millennials, and catering to women in their 40s, 50s, and beyond. Executives such as Chapin, who is 55, are listening to older women’s wishes for low-dose cannabis products that address concerns such as sleep, anxiety, and sexual pleasure, and positioning their companies at the very lucrative intersection of women, weed, and wellness.

Wellness, women, and weed

It’s a market that’s growing. Women control the majority of household purchases, and according to the US Consumer Expenditure Survey, single women over 45 spend about $640 per year on personal care items and $400 annually on drugs. As legalization takes hold, those products are increasingly likely to contain—or even be replaced by—cannabis. According to sales data and a survey of 4,000 cannabis consumers by the San Francisco-based delivery platform Eaze, the number of female cannabis consumers nearly doubled in 2018, and with their growth outpacing men, women are on track to be half of the cannabis market by 2022. Female baby boomers on the platform grew by nearly a quarter between 2017 and 2018.

Kimberly Kovacs, the cofounder and CEO of MyJane, which delivers “curated cannabis” boxes  to women (think Birchbox-meets-Eaze), was also at Arcview. That same week, her company was acquired by the cannabis logistics conglomerate MJIC for an undisclosed sum, after completing just three weeks of deliveries. MJIC CEO Sturges Karban was unabashed about the acquisition’s main attraction.

“Women are the new targets of the adult-use cannabis wellness sector,” wrote Karban, in a press release. “Yet their needs are not being addressed by the cannabis industry.”

“We don’t call that micro-dosing. We just call that normal.”

Getting stoned is not chief among those needs, Kovacs found when MyJane conducted a survey of women in Orange County, CA. When I asked what was, she didn’t skip a beat: “Sleep,” she said. “100%.”

“I don’t want to take an Ambien,” said Kovacs, who is 52, with blonde hair and clear blue eyes. “I don’t even want to take Melatonin … half a cup of tea, I sleep through the night.” (MyJane includes Kikoko tea amongst its offerings in its boxes.)

Courtesy, MyJane

In addition to better sleep, women told MyJane they were seeking relief from pain, anxiety, and stress. Many hadn’t used cannabis before and said they wanted their THC—the chemical compound that results in feeling high—in very low doses.

“By the way, we don’t call that micro-dosing,” said Kovacs. “We just call that normal.”

Ding-dong, Avon calling

Both Chapin and Kovacs referenced Avon—the 135-year-old cosmetics company known for its door-to-door saleswomen. “I don’t want to go to a dispensary,” said Kovacs. “I don’t even want to go to the grocery store anymore!”

“I don’t want to go to a dispensary. I don’t even want to go to the grocery store anymore!”

Instead, these companies strive to deliver both products and education in personal and familiar settings, outside dispensaries. Part of what they’re doing is teaching their customers how to use the range of new products available in the sector.

MyJane’s customers create online profiles answering questions about their symptoms, food allergies, preferences, and prior experience with cannabis. Then, a female “ambassador” from the company arrives at a customer’s doorstep on the agreed-upon date and time to deliver a box of selected products and walk the recipient through each one.

Kikoko’s teas are sold via dispensaries and delivery services, but the company also holds tea parties which include a “cannabis 101” slideshow about the plant’s history and benefits. Chapin estimates that in 2018, the company held over 100 of these events in private homes, country clubs, and retirement communities throughout California. (It was at a Kikiko tea party in Santa Monica that Chapin and Kovacs first met.)

Courtesy, Kikoko

Anyone for a cuppa?

Kikoko’s website has a page for people who want to host their own “High Tea Parties,” complete with downloadable images for invitations, tips (take public transit), and a Pinterest page of suggested menu items.

“We envision an army of women throughout the state of California,” said Chapin, of the consumers she hopes to recruit into hosting high teas.

Bridgett Davis, the founder of the Los Angeles-based cannabis topicals brand Big Momma’s Legacy, is also building a business based on older women customers—using a similar model of cohosting tea parties with local cannabis brands at private homes to slowly build her business from the ground up.

“It’s a group of maybe 10 to 15 of my golden girls,” she said of a typical event. “I have a variety of clients, from white ladies in Brentwood to old grandmas in Compton.”

Quartz/Jenni Avins

Bridgett Davis, the founder of Big Momma’s Legacy.

Davis agreed that a familiar setting and privacy were crucial to her customers, who use her salve and roll-on oil to ease the pain of rheumatism and sciatica, and said she’s counting on her “golden girls” to help her grow her business.

“I cannot ask for better brand ambassadors, and they’re not paid,” she said. “It’s grass-roots, and I’m building it bit by bit. When one of my seniors talks to their friend, their friend is listening.”

Riding the wellness wave

With the global wellness industry now worth an estimated $4 trillion worldwide, it’s little wonder that cannabis companies such as MyJane, Kikoko, and countless others position themselves as purveyors of supplies for self-care rather than recreation. And women—especially those in middle-age—are frequently caring not only for themselves, but also for their friends, children, and aging parents. (Kovacs told me she supplies her father with topicals for his arthritis, and her mother with tea for sleeping.) No wonder they’re tired.

Getty/manonallard

Don’t bogart that joint, girlfriend.

Both Kovacs and Chapin came to cannabis by way of a woman close to them suffering as a result of cancer. In Kovacs’ case, it was her mother-in-law, who eased her post-surgery pain and reduced her opioid use with cannabis. In Chapin’s, it was a dear friend who used edibles to aid her sleep and appetite, but was getting pummeled by high dosages. Both women saw the opportunity for products that spoke to women’s wellness.

Plus, noted MyJane cofounder Cara Raffele, “There’s a trust gap in healthcare for women.” Indeed, as Quartz’s Annaliese Griffin has written, that trust gap has made women particularly receptive to wellness brands that address their health concerns, respect their pain, and speak to them personally.

During her presentation at Arcview, Chapin said at one point, “we’re really tired of taking Ambien.” A women near me whispered under her breath: “That’s so me.”

Published at Mon, 20 May 2019 21:58:56 +0000

#6B Accudata Ionic – Like Buying Cannabis Stocks In 2016

#6B Accudata Ionic – Like Buying Cannabis Stocks In 2016


Like Buying Cannabis Stocks In 2016


This upstart company is making big moves in the cannabis industry.

 ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

The Seed Investor

Dear reader,
 
What you are about to see is perhaps the most exciting cannabis opportunity for 2019.
 
An upstart company is making big moves in the cannabis industry.
 
Its rapid expansion may be unparalleled in cannabis history.
 
However, most investors just don’t see the potential here…
 
At least not yet anyways.
 
They will eventually.
 
And when they do the big gains will be had.
 
But you can get in before its shares potentially explode.
 
Follow this link to see what has the cannabis industry buzzing right now.
 
You’re looking at a true ground floor opportunity in cannabis.
 
It’s as close as you can get to buying into cannabis back in 2016 when the cannabis boom was just getting started.
 
Take a few minutes and see for yourself here.
 
High profits,
 
 
The Seed Investor
 
 
Please see full disclaimers at www.TheSeedInvestor.com applicable to all content provided by TSI, wherever published or re-published: http://theseedinvestor.com/about/disclaimer.

This news release/advertorial is a commercial advertisement and is for general information purposes only. The information provided by TSI through this website or other means does not constitute an offer or solicitation to buy or sell any securities or individualized investment advice. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. It is possible that a viewer’s entire investment may be lost or impaired due to the speculative nature of the companies profiled. Remember, never invest in any security of a company profiled or discussed on this website unless you can afford to lose your entire investment. Also, investing in small-cap and micro-cap securities is highly speculative and carries an extremely high degree of risk. This website makes no recommendation that the securities of the companies profiled or discussed on this website should be purchased, sold or held by viewers that learn of the profiled companies through our website. The Seed Investor and/or entities related to The Seed Investor hold shares in (CSE: CHOO; OTCQB: CHOOF) (Ionic CSE: IONC) and intend to sell those shares. Please review all investment decisions with a licensed investment advisor.

 
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©2019, All Rights Reserved

Published at Sun, 14 Jul 2019 16:14:04 +0000

OTC Markets Group Welcomes Vapen MJ Ventures Corporation to OTCQX

OTC Markets Group Welcomes Vapen MJ Ventures Corporation to OTCQX

OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 10,000 U.S. and global securities, today announced Vapen MJ Ventures Corporation (CSE: VAPN; OTCQX: VAPNF), a fully integrated agricultural technology, services and property management company in the cannabis industry, has qualified to trade on the OTCQX® Best Market.

Vapen MJ Ventures Corporation begins trading today on OTCQX under the symbol “VAPNF.”  U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com.

“We are pleased to welcome Vapen MJ Ventures Corporation to the OTCQX Best Market,” said Jason Paltrowitz, EVP of Corporate Services at OTC Markets Group. “Trading on the OTCQX Market in the U.S., along with the company’s recent listing on the Canadian Securities Exchange, will enable Vapen MJ Ventures Corporation to build visibility and provide additional transparency for investors globally. We look forward to supporting the company in the public markets.”

Thai Nguyen, chief executive officer, and Bob Brilon, president and chief financial officer of Vapen MJ Ventures Corporation added, “We believe that Vapen MJ’s qualification for trading on OTCQX will increase awareness and visibility while providing transparency for our global investors. Vapen MJ is expanding its market penetration in the United States with partnerships in various additional states. Simultaneously, the company is expanding its presence with the financial community, and joining the prestigious international community of companies that trade on OTCQX and increasing access for U.S. investors is a key step in this effort.”

SecuritiesLawUSA, PC acted as the company’s OTCQX sponsor.

About Vapen MJ Ventures Corporation
Vapen MJ Ventures Corporation, through its wholly-owned subsidiaries, currently operates as an agricultural technology, services and property management company utilizing a full vertical integration business model to oversee and execute all aspects of cultivation, extraction, manufacturing (THC and CBD cartridges, concentrates, edibles), retail dispensary, and wholesale distribution of high margin Cannabis THC and Hemp CBD products under the Vapen Brand. Vapen MJ currently provides these management and marketing services in the State of Arizona with expansion plans through acquisitions and partnerships worldwide. Vapen MJ expansion plans include partnering with cannabis license holders and hemp farms in multiple states within the U.S.

About OTC Markets Group Inc.
OTC Markets Group Inc. (OTCQX: OTCM) operates the OTCQX® Best Market, the OTCQB® Venture Market and the Pink® Open Market for 10,000 U.S. and global securities.  Through OTC Link® ATS and OTC Link ECN, we connect a diverse network of broker-dealers that provide liquidity and execution services.  We enable investors to easily trade through the broker of their choice and empower companies to improve the quality of information available for investors.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

OTC Link ATS and OTC Link ECN are SEC regulated ATSs, operated by OTC Link LLC, member FINRA/SIPC.

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Media Contact:
OTC Markets Group Inc., +1 (212) 896-4428, media@otcmarkets.com

OTC Markets Group logo. (PRNewsFoto/OTC Markets Group)

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SOURCE OTC Markets Group Inc.

Published at Fri, 12 Jul 2019 11:04:12 +0000

Plus Products Looks To Take Marketshare In A Pivotal U.S. Market

Plus Products Looks To Take Marketshare In A Pivotal U.S. Market

During the last year, we have noticed a significant increase the amount of demand for cannabis infused products and are bullish on this vertical of the cannabis industry. Over the next year, we expect this trend to persist and believe that the companies that are levered to this opportunity are poised to report massive growth.

Plus Products (PLUS.CN) (PLPRF) is a company that has been benefiting from the increasing consumer demand for cannabis infused products and this is an opportunity that we have been closely following.

The last two months have been significant for the cannabis infused product company and we are bullish on the growth prospects on a going-forward basis. During this time, Plus Products announced the acquisition of California cannabis concentrate business and reported plans to expand into the Nevada market. We are favorable on the growth prospects associated with these initiatives and will monitor how the team continues to execute on this.

Las Vegas Represents a Massive Market for Plus Products

Las Vegas is one of the most important cannabis markets in the US and we are favorable on the leverage that Plus Products has to this market. On an annual basis, Las Vegas attracts more than 42 million tourists, and this has made Nevada a primetime destination for cannabis businesses. When a company is working to build a national (or global) brand, they need to be focused on several key markets. These markets are similar in the way that they attract tourists and bring the people to the brand.

In late May, Plus Products announced plans to expand into the Nevada market through a definitive agreement to partner with TapRoot Holdings, a vertically integrated cannabis company with cultivation and manufacturing facilities in Las Vegas. When it comes to selection a strategic partner, Plus Products conducts significant due diligence and believes that it can leverage TapRoot’s extraction capabilities as a part of a supply agreement. In addition to TapRoot’s extraction capabilities, it has also received 7 of the 61 newly issued retail licenses in late 2018.

Plus Products believes that TapRoot has the facilities available for the company to easily and quickly deploy its machinery, ingredients, and personnel to ensure that the product remains consistent both in California and Nevada. As the company expands into new markets, it will serve as the manufacturing operations partner to ensure quality and consistency across markets. We find this to be significant when it comes to creating a consistent product and are bullish on the growth prospects associated with this relationship.

We are favorable on the leverage that Plus Products will have to the Las Vegas opportunity and believe that it is a key market when it comes to building an internationally recognized brand. We are of the opinion that the move into Nevada is just the start of something much bigger and this is a something that we are excited about. During the last year, Plus Products has become the top selling edible in the California market (according to BDS Analytics) and we expect its products to perform very well in cannabis markets across the US.

A Company with Massive Growth Potential

Last month, Plus Products announced that it has acquired an option to purchase Emerald Bay Wellness LLC, a California-based cannabis oil manufacturer. The option grants the company the irrevocable right, but not the obligation, to purchase all of the business assets of Emerald Bay Extracts for cash and stock.

There are a number of reasons why we are excited about this transaction and will highlight this one-by-one. First, Emerald Bay Extracts is currently one of Plus’ largest suppliers of cannabis oil and has been a supply partner for over a year. Second, if the option is exercised, the acquisition would give the company in-house cannabis extraction capabilities that would both improve quality control and increase gross margins on the core edibles business, while creating a new revenue stream and new product development capabilities. Finally, this transaction will provide attractive leverage to a burgeoning opportunity in California where the market is rapidly shifting towards manufactured products that require cannabis oil.

Another reason why we are bullish on the implications that this acquisition will have on the business is due to the cost of the transaction. Approximately 70% of the deal consideration would be subject to performance targets including revenue and we find this to be significant when it comes to execution. We are favorable on the vesting schedule associated with the acquisition and believe that it could significant advance Plus Products’ business.

A Company that is in a Class of its Own

One of the reasons we are favorable on Plus Products is due to the type of investors that it has attracted. During the last year, the company has received large investments from some of the most significant hedge funds that are focused on the cannabis industry and this is a testament to the quality of the opportunity.

When it comes to Plus Products, we believe that the company is led by one of the best management teams in the business and are favorable on the additions that have been made to the team. Since inception, the management team has proven its ability to execute and we are bullish on this aspect of the story. We believe that the strength of the management team played a key role in the company’s ability to attract strategic capital and find this to be significant.

Going forward, Plus Products has massive growth prospects and this is an opportunity to be watching. The planned expansion in Nevada will prove to be a major value driver and we expect to see the company enter additional US markets in the coming months. To learn more about how Plus Products plans to be a leading cannabis infused product company, please email support@technical420.com.

Pursuant to an agreement between StoneBridge Partners LLC and PLUS Products Inc. we have been hired for a period of 180 days beginning March 21, 2019 and ending September 21, 2019 to publicly disseminate information about (PLUS) including on the Website and other media including Facebook and Twitter. We are being paid $5,000 per month (CASH) per month for services rendered. We own 106,000 shares of (PLUS), which we purchased in via private placement. We may buy or sell additional shares of (PLUS) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. On November 1st 2018 StoneBridge Partners LLC sold 50,000 restricted shares of (PLUS) to a private investor via a direct sale.

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Authored By

Anthony Varrell

Anthony Varrell is Managing Director of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

Published at Fri, 12 Jul 2019 11:23:41 +0000

Cannabis plants don’t have to fall prey to mold, powdery mildew

Cannabis plants don’t have to fall prey to mold, powdery mildew

Danny Murr-Sloat, founder of AlpinStash, monitors plants for microbial growth at the company’s cannabis grow in Lafayette, Colorado. (Photo courtesy of AlpinStash)

(This is an abridged version of a story that appears in the July issue of Marijuana Business Magazine.)

Microbials such as powdery mildew and mold can be devastating for a cannabis grow and lead to decimated plants, lost time and money and even total eradication of the crop.

There are steps vigilant growers can take, however, to ensure that microbials don’t overrun their cannabis plants.

“The best prevention is preventative,” said Mark Krytiuk, president of Toronto-based Nabis Holdings, a vertically integrated cannabis firm. “If you have a clean facility with good HVAC, you’re 95% there.”

Krytiuk and other cultivation experts offered Marijuana Business Magazine some tips for growers to fight off microbials, including:

Published at Sat, 13 Jul 2019 14:00:47 +0000

Should This Marijuana Stock Have Your Attention

Should This Marijuana Stock Have Your Attention

Ever since marijuana was legalized in various states around the US and the whole of Canada, it has quickly become one of the fastest-growing industries. Consequently, a number of companies have emerged and their stocks have grown impressively over the past year. However, amidst all that, many investors may have failed to notice that another company in the marijuana space is making big moves in the hemp CBD market and hence, many experts believe that Charlotte’s Web Holdings (CSE:CWEB) (OTCQX:CWBHF) could prove to be an excellent investment.

Production Operations

In this regard, it is first important to note that unlike cannabis, hemp is legal all across the United States and Charlotte’s Web does not have to deal with the sort of uncertainty that is common with the cannabis industry. Additionally, it can set up its production operations in any state in the country and moreover, it can ship its products with ease as well. The lack of barriers with regards to hemp has made it a fairly attractive company for many analysts. However, the reasons go far beyond that. Charlotte’s has assiduously grown its network of retail outlets over the years and currently, there are as many as 6000 retail outlets that stock the different products that are produced by the company.

Solid Earnings

However, one of the most important factors in favor of this marijuana stock is the fact that it has posted profits in each of the last four quarters and seems primed to continue to do so as it consolidates its position in the hemp market. At this point in time, its profit margin stands at 14% and none of the profit includes any non-operating items, which is another positive aspect of its recent profit surge. It goes without saying that Charlotte’s has managed to build up a viable business that is able to churn out consistent profits in a high growth industry. Although hemp cannot generate as high margins as marijuana, there is a lot of positives about Charlotte’s Web Holdings.

Shares of Charlotte’s Web have outperformed the broader cannabis sector in the past one month as this marijuana stock has soared 55% since June 14. However, the stock is still 30% off from its 52-week high of $25.25 on the OTC market.

Published at Fri, 12 Jul 2019 19:28:19 +0000






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