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Washington Cannabis: Then and Now

Cannabis has come a long way since the Marihuana Tax Act of 1937, which effectively outlawed the substance. The Controlled Substances Act followed the repeal of the Marihuana Tax in 1971, keeping the drug illegal and making it a Schedule I substance. It wasn’t until 1998 that Washington State made the drug legal for medicinal use to help treat certain conditions. 

Brief history of Cannabis in Washington 

The history of legalization in Washington began in 1998 when voters passed Initiative 692 (I-692), which allowed patients suffering from terminal illness and certain debilitating conditions to possess and consume marijuana. It took almost a decade later, in 2007 for lawmakers to define how much a patient could possess. The decision was that a patient could possess a 60-day supply, which was defined as 24 ounces and no more than 15 plants. Still, for the most part, the sale and commercial cultivation of the plant remained illegal. 

In 2012, voters in Washington decided to legalize the recreational use of cannabis. This provided for the regulation of the product at a state level as well as the taxation of cannabis

Back when it was only legal for medical users, one had to visit a doctor authorized to prescribe the drug. Then, a patient could possess only enough product to last 60 days, as noted above. However, one had to live in the state and have an in-state physician to obtain a medical marijuana card. Possession of the drug without the card was illegal. 

Now, anyone can walk into a dispensary or a dab bar or a cannabis bar and partake in cannabis. A prescription is no longer necessary to possess the drug, however, only those possessing a medical marijuana prescription can grow the drug. 

Another effect of legalizing recreationally is that prices have fallen. In just three years, prices for cannabis fell a staggering 67%, with further decreases in price predicted. 

Ways to Consume Cannabis

Along with legalization, a host of related industries have sprung up to help people consume cannabis in different ways. The most popular way, of course, is rolling the dried flowers into a paper, known as a joint, and smoking it. Rolling papers come in a variety of lengths and now can be made from differing fibers, including CBD hemp papers for that additional medical kick.

Another way to consume cannabis that is growing in popularity is vaporization. One of the most popular vapes for medical use are the Volcano Vaporizers. Volcano Vaporizers can use a whip, which is a long piece of plastic tubing through which the vapor from heating dried buds is drawn. The vaporizer can also be used to fill a plastic bag with the vapor, which is then inhaled. 

Box mod vapes also are a growing way to ingest marijuana. Dry herbs can be placed in a vaporizer specifically created for the purpose. Cannabis concentrates like CBD oils or waxes or THC concentrates can also be placed into the atomizer or tanks of certain box mods to allow the vaporization of oils. 

Edibles are another way to consume cannabis that is popular among medical patients. Edibles are popular for many reasons, one of which is they do not have the negative stigma of smoking joints and people feel that they are healthier overall. Edibles also have a longer period of relief, though they take longer to kick in than smoking or vaporization.

Another way to consume cannabis is via a hookah. With this method, dried herbs are placed into a bowl at the top of the device and then combusted, with the smoke being drawn through small tubes. Some hookahs allow for multiple people to smoke at once by drawing through multiple hoses. 

Legalization in the state has not been a smooth road. Although the 2013 Cole Memo of the Obama Administration provided that Federal law enforcement would not become involved in states that had voted to legalize cannabis. However, in 2018, Attorney General Jeff Sessions overturned the memo, to the dismay of both Republican and Democrat congressmen in states where the drug was legal. 

Cannabis is now legal for recreational purposes in 9 states and Washington, D.C. There is hope that the drug will soon be legalized nationally, following countries like Canada and Uruguay. 

Author

Michael Jacobs is a marketing and creative content specialist at GotVape.com with a primary focus on customer satisfaction. Technology and fitness combined with healthy lifestyle obsession are his main talking points 

 

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Growing Cannabis vs Buying Cannabis

What are the economics/benefits of growing your own MJ versus buying from a dispensary? 

Marijuana is also popular by the name of cannabis and it is a plant that acts like a psychoactive drug. Earlier, only the recreational uses of marijuana were known but nowadays it is extensively used for medicinal purposes as well. Marijuana can be used in various forms: it can be used for smoking; its extract can be added to food items; its oil can be applied on the skin, and it can be used for vaporizing for example. It has shown wonderful results in treating health conditions like cancer, glaucoma, heart problems, anxiety, depression, body pain, skin disorders, digestive disorders and much more, and that is the reason why many people state time and time again that they love growing marijuana.

Which is the right choice- growing marijuana or buying it from a dispensary?

Nowadays, medical practitioners are also recommending the use of marijuana for treating various health related disorders. If you wish to buy marijuana, the first thing that will come to your mind is to look for a dispensary that supplies it. But you may not know which dispensary is supplying the right quality of marijuana and whether genuine prices are being charged. So it is a better idea to grow your own marijuana as it offers a lot of benefits over the marijuana that is procured from a dispensary. 

Here are the benefits of growing your own marijuana:

Economical

The first thing that you will notice if you go to buy marijuana from a dispensary is that it is usually overpriced. But if you grow marijuana in your home then it would be far more economical and will help in saving a lot of money. You just need to invest one time for high quality seeds; soil, fertilizers etc and then you can have as much marijuana as you want. Many people love growing marijuana not only for themselves but they have even started their own businesses by supplying high quality marijuana to the people in need.

High quality is guaranteed

If you buy marijuana from a dispensary, you may never know about its true level of quality because there are many varieties. But once you will grow it in your home you will be assured that there is no compromise on the quality front.

You can grow as much quantity as needed

When it comes to buying marijuana from a dispensary, you have to think twice about its quantity, but if you will grow it on your own then this issue will be resolved completely.

Easily convertible for specified uses

By growing marijuana on your own you can easily convert it in various forms like you can secrete its oil and apply for skin related concerns, its extract can be added to food, or you can simply use it like a vaporizer. So it would be a great advantage altogether.

Everything will be supervised under your hand

Growing marijuana on your own gives you the privilege to supervise everything under your own hand, thus there won’t be any compromise in its standards and you will get the best quality for it. 

Now you must have gotten a complete idea to what the benefits are of growing your own marijuana versus buying from a dispensary, so it is guaranteed by following the aforementioned advice here then you would also say: I love growing marijuana.

 

Invest In MJ Editor Notes:

The article above was provided by James Hayes and are his opinions from his research. The views expressed above are not necessarily the opinions of Invest In MJ and we suggest you conduct your own research to determine the level of accuracy of the information contained in the article.

Here at Invest In MJ we believe that growing your own is an excellent option versus purchasing from a dispensary or other source. There are numerous benefits to being able to grow your own cannabis and there is a lot of information out there to help you get started. Cannabis is an enjoyable hobby to undertake once you have completed your research. With so many ways to grow and a variety of products to meet the needs of the everyday consumer, it can leave some people confused about which route is the best for them. Ultimately, growing your own (with some experience) will allow you to have control over your strain quality, grow method and it will also save you a lot of money in the long run.

While good quality seeds are a great investment, you should also invest time in researching the lights, tents and other equipment required for an excellent home set-up. We believe that LED grow lights are the way of the future. They do cost more than standard HPS but they last longer, use less electricity and they run at a much cooler temperature. We love Cirrus LED Grow Lights because they offer the latest technology and the light operates from an App on your Android of iOS device from anywhere around the world. Cirrus T series lights also give you 5 individual channels to control the red, white, blue, UV and IR rays of light. Take a look at all of the Cirrus products over on LED Tech Store

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Along with the proper lighting, you will also want to research tents, filters and fans to make sure that you have the best climate control and air flow in your set up. We encourage consumers to look at Gorilla Grow Tents because no one on the market makes a better tent than what they produce.

Through our own research we have found that the average cost of a personal home set-up with premium equipment will cost roughly $2500-$3000. Based on the average yield per light, you should be able to obtain 1lb of cannabis per light and it can be produced for roughly $2-$3 per gram. That means that 1lb of home grown cannabis is roughly $1300. The average cost per gram from a Licensed Producer in Canada is $10 per gram and you can typically only purchase in 1 gram increments. This means that 1lb of Cannabis from an LP would cost $4480. The numbers can vary if you are able to purchase cannabis for less than $10 per gram but ultimately it is much more affordable to make the investment in the equipment. Technically you would have the ability to produce 1lb of cannabis every grow cycle and there are 4 cycles in a year.

There are many options for consumption of cannabis products today from oils and extracts to edibles, topicals and tinctures, the options are nearly endless. We believe that oils are the way of the future when it comes to cannabis as it offers a wide variety of deliver systems in this form. The ability to easily produce these oils is questionable as there is a very tough science behind producing and distilling a product to its purest form. We will be releasing an article shortly regarding the process of creating oils and distillates and the trials and tribulations associated with it.

Growing your own cannabis is an excellent choice for the consumer who wants full control over their product and you will also save money. The investment for equipment is critical to produce a premium product and we have found that you really do get what you pay for. We encourage everyone to take the time to research growing, the equipment required such as lights tents and fans and the different methods of growing. By researching you will find out the correct method that’s tailored to your needs.

If you are interested in learning more about the cultivation of cannabis and you are located in the Niagara or New York region, take a look at the upcoming Grow Up Cannabis Conference & Expo that is being held on Oct 6-7 at the Scotiabank Centre. It is an excellent opportunity to learn about the equipment and the science behind cultivation. For more information on tickets and how to attend click here.

 

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*The numbers used to calculate the average costs from Licensed Producers in Canada are estimated based off of the research that we have conducted. Costs can vary.*

 

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Canadian Investments In The US

What Can Canadian Companies Expect if They Have Marijuana Stock Interest in the United States

Canadian companies who are on the forefront of the country’s medical and soon-to-be recreational marijuana business have some of the fastest growing stock interests in their home country. As well it should be – Canadian Prime Minister Trudeau and the Canadian government last year announced plans to legalize cannabis for recreational use nationwide come July of 2018. 

However, some of these companies are publicly traded on the Canadian Stock Exchange (CSE). The Toronto Stock Exchange (TSX), has largely shied away from listing companies that have interests in the United States, however it does possess all Canadian equity trades via its clearing house the Canadian Deposit for Securities. 

This means that companies needing to raise money have raced to CSE to do so. Often these funds are being raised to fund U.S. opportunities. These companies are allowed to list on CSE so long as there is adequate disclosure. However, in the case that TMX decides to stop clearing trades, a viable alternative is necessary. And it’s one that CSE executive Richard Carlton is actively seeking. 

It’s Still Challenging for the US Funding and Investing for Marijuana Industry

In comparison to the United States, where funding and investing a marijuana company even in legalized states remains difficult, money is flooding into Canadian-listed stocks. However, a decision to take a tougher line on Canadian capital markets could spell disaster for the possible expansion of Canadian companies looking to invest in U.S. states where marijuana is legal. 

Indeed, many of the companies that investors have fallen in love with are currently increasing their footprint in the United States. If they do not already have interest in the United States, they are planning to do expand. However, there’s a catch. These companies are mandated by TMX to remain in compliance with all relevant laws and regulations in the jurisdictions where they operate. 

Why Aphria Should be Concerned? 

Aphria, one of Canada’s rising investment stars, has reason to be concerned. As part of its investment strategy, it is planning on making a $25 million investment in Florida, where medical marijuana is legal, yet it remains illegal recreationally. In fact, 10 new companies that are cultivating marijuana in preparation for next year’s impending legalization. The entire industry has eyes on a possible large market: The United States. Where marijuana is still federally illegal, putting the stock exchange in a precarious position when it comes to listing marijuana companies that have interests in the United States. 

While TMX is currently allowing Aphria to remain listed, even with its plans for expansion in Florida, it has taken a harder approach for other companies. For example, Canadian Biotechnical Corporation left the TSX Venture Exchange after being told it could not pursue recreational marijuana interests in the United States. Conversely, Ottawa-based CannaRoyalty Corp has the bulk of its assets in the United States and is listed on the Canadian Securities exchange. 

The two rivals are taking different approaches when it comes to listing companies with U.S. interests. Not only is the CSE allowing for tiny, unlicensed companies to list, it is also allowing U.S. based corporations to trade, where they are barred from doing so domestically. 

Summary of the Current Status

While those with U.S. interests are looking to TSX to clarify its rules regarding companies listing on the exchange, some think that Canadian companies should avoid involvement and expansion into the U.S. entirely. They believe that institutional investors in the burgeoning market should feel confident that their investments are not funding illegal activities. 

While the federal government has yet to make a move against states where cannabis is legalized recreationally and medically, it is no secret that many in the Trump administration, including U.S. attorney general Jeff Sessions, are taking a hard line on federal marijuana policy. Unlike modern day vapes , which are a sensitive topic as well but are not banned in both countries, marijuana is illegal on the federal level. This is certainly a cause for some concern for investors and regulators in the Canadian market. 

It’s no better in the United States, where investors looking to take advantage of the boom in Canada and the growth of marijuana stocks there. The United States Drug Enforcement Agency has been tracking U.S. investments in the Canadian marijuana industry. When inquired by Reuters about the DEA’s view of U.S. investments in Canadian marijuana, spokesman for the DEA Robert Payne said that the agency is “most interested in those types of activities.” 

Author

Michael is a marketing and creative content specialist at GotVape.com with a primary focus on customer satisfaction. 

Invest In MJ Editor Notes:

The article above was provided by Michael and are his opinions from his research. The views expressed above are not necessarily the opinions of Invest In MJ and we suggest you conduct your own research and speak to your financial advisor as to the accuracy of the information contained in the article.

We at Invest In MJ are aware that the United States government still has cannabis as an illegal drug and that does bring lots of question and concerns for investor as to the legality of investing in the cannabis sector.  At the state level, cannabis companies are opening up and setting up shop, many of them looking north to Canada for raising capital.  While the DEA may be interested in activities in the cannabis space, they have yet to stop investment in the space. 

Many companies in Canada and the United States have raised capital from all around the world in record numbers; we do not think that trend will change.  The fact that no regulator has stopped the progress of capital raises or companies from trading on the exchanges should be kept in mind.  While some companies may not have business interest or operations in the US, many are moving forwards with their plans to enter the US market in States where cannabis is legal medically or recreational.

Please consult your financial and legal advisor before making any investment decisions.

 

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Marijuana Investments: A Word to the Wise

With more cannabis retailers and dispensaries entering the market, marijuana entrepreneurs are having an increasingly difficult time distinguishing their brands and product lines. The need to stand out is not only necessary to secure to new customers (once the company is up and running) but more importantly, to initially entice investors and convince them that the business model is sufficiently unique to succeed.  Indeed, raising capital from investors is absolutely critical for many marijuana entrepreneurs and as a corollary, an exciting proposition for investors looking to capitalize on this popular and growing industry. 

Cannabis Investors or Cannabis Lenders?

Cannabis investors may provide capital to cannabis entrepreneurs in (generally speaking) one of two ways; equity or debt.  A simple capital-for-equity model is fairly straightforward - investors buy into the company at a given valuation and in return, own a part of the company.  The second option, debt, is often a much more complex transaction and involves the "investor", who may not be an investor in any pure sense of the word, loaning the company money at a high rate of interest. Unfortunately, many smaller investors (or lenders, depending on your perspective) are not sufficiently equipped to protect their interests in the event that the marijuana business goes under.   

What happens when the invested in cannabis defaults on the loan? Here are your two options:

(1) Renegotiate the Marijuana Startup's Debt

Promissory notes that are well drafted typically contain a statement regarding an uncured event of default, which causes the debt to accelerate. Thus, if the cannabis business you have invested in misses a payment and does not make a late payment by a cure date, that company’s entire debt is due. When this happens, partners tend to negotiate an extension, and you as the financer can extract concessions from your borrower (i.e. security interests, personal guarantees, or pledges of ownership in the company). This generally happens so that your borrower can avoid you obtaining a judgment against them.

(2) Get A Judgment Against Your Cannabis Borrower

If you have the money to obtain a judgment against your borrower, you can use that judgment to levy on the borrower’s business assets.  The idea here of course is to seize assets of your borrower that are sufficiently valuable to cover your losses.  In many states, if you are indeed awarded a judgment against your marijuana borrower, you may also be eligible to be reimbursed for attorney fees and other associated costs.

A Note of Caution: Fraudulent Transfers

Unfortunately, it is not too uncommon for companies in debt to do everything in their power to avoid paying it.  Once such method used to this end is the employment of a fraudulent transfer. A fraudulent transfer occurs when a borrower transfers the company’s property to a third party, without receiving something back of equal value, in order to deplete the company of the funds required to repay the financer. This is undoubtedly a dirtier tactic and if intent can be established may rise to the level of criminal liability.

Be Proactive in Protecting Your Assets

Ultimately, if you are planning to finance or lend to a cannabis company, it is important to develop a contingency plan that accounts for the possibility of a failed business. Is your agreement with the marijuana company tight and drafted in such a way as to maximize your protections?  If the business goes under, can you sustain the loss of your entire investment? Do you have funds to litigate in court?  Unfortunately, the legalization of cannabis does not guarantee businesses financial success.

Blog Provided By: Abe Cohn is COO of THC Legal Group, a Marijuana Law Firm specializing legal protection for the cannabis industry.  For more information, please visit their website at http://www.THCLegalGroup.com

For more information on THC Legal Group, view the company directory listing on Invest In MJ

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