Author: Johnny Green

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Demecan’s Successful Series A Financing Round Is A Major Milestone For Germany’s Domestic Cannabis Industry

Written by Johnny Green on October 16, 2019. Posted in Business.

Germany’s medical cannabis industry is increasing in size with every passing quarter. The profit potential for the nation’s emerging medical cannabis industry is significant considering that Germany is home to the largest economy in Europe and has more than twice the population of California.

For obvious reasons, Germany has been a very popular target for cannabis exports from other countries, including exports from Canada, Australia, Colombia, Portugal, and Uruguay.

Only one German-based company has permission to cultivate medical cannabis domestically. That company is Demecan. The Berlin startup recently completed a Series A financing round in which it raised €7 million to expand its ability to produce wholesale cannabis for the German medical cannabis market.

Demecan is expected to use the financing to ramp up cultivation, with an estimated output of at least 2,400 kilograms of dried cannabis flower over the course of the next four years.

Demecan may not be 100% German-owned (Canada’s Wayland Group owns 50% of Demecan), however, the recent financing is still very significant because it will help increase the amount of domestically cultivated cannabis in Germany in a way that results in wholesale revenues staying in Germany.

The German medical cannabis market possesses tremendous profit potential, yet it’s extremely important to keep in mind that revenues will be split up into various slices. As the slice for German-owned companies gets larger the slice for everyone else obviously becomes smaller.

Investors and entrepreneurs will have to adjust their strategies accordingly. That’s not to say that they should abandon efforts to gain market share in Germany altogether, because after all, the German medical cannabis industry is going to be huge.

However, it’s absolutely worth keeping a close eye on the situation to see how successful domestic production ultimately becomes in Germany.

Domestic cultivation could prove to be more advantageous for various reasons compared to importing cannabis. One of the biggest reasons why is that domestic cannabis, and products derived from domestically cultivated cannabis, could prove to be considerably more popular among patients.

The demand for cannabis in Germany is going to continue to increase well into the foreseeable future. Recent data regarding reimbursements by statutory health insurers in German shows that for the April-June 2019 period sales reached roughly 29.5 million euros – a 20% increase over the previous quarter. That upward trend will continue.

Germany is currently the largest importer of cannabis on the planet. As domestically cultivated cannabis makes its way into the German medical cannabis market, it will have a big impact on the international cannabis industry.

International cannabis companies have been awarded licenses to cultivate medical cannabis within Germany’s borders, so it’s not as if German-based cannabis companies have a monopoly on cultivation.

However, Demecan’s successful series A financing round is still a huge milestone for the emerging German medical cannabis industry. Reliance on imports could reduce significantly in the coming years.

If Demecan puts their new funding to good use, and its domestic cannabis cultivation model succeeds in Germany, more funds will likely be on the way. That could have a butterfly effect on plans by international companies, with those companies scaling back their plans in Germany.

The domestic cultivation model could also be adopted elsewhere in Europe if Demecan is successful going forward, which would impact additional pursuits of international companies throughout the continent.

Of course, if Demecan fails to meet expectations due to a multitude of potential factors, that could result in other governments and investors opting to support industry models that are more reliant on imports.

A lack of supply is something that patients, lawmakers, and regulators in Germany want to avoid. That will also be true in other European countries as they ramp up their industries.

The supply for Germany’s medical cannabis industry will obviously come from somewhere, the question that will ultimately be answered by the passing of time is what amount of that supply will originate from domestic sources versus what amount will be imported?

The success or failure of Demecan will have a big impact on what opportunities will be available in Germany in the coming years, and possibly in other countries.

The Demecan situation will result in winners and losers. Which side of the equation will those winners and losers fall on? We will all have to wait and see. In the meantime, keep a close eye on the matter as it develops in order to make informed investment decisions in Germany and beyond.

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Australia Launches Multi-Million Dollar Medical Cannabis Research Effort

Written by Johnny Green on October 16, 2019. Posted in Medical.

The cannabis plant is one of the most useful plants on earth. It has the ability to feed, clothe, and in many cases, the power to heal.

Cannabis possesses a tremendous amount of wellness properties that can be used to treat a number of conditions, from chronic pain to insomnia.

Demand for medical cannabis research has existed for decades. Unfortunately, harmful prohibition policies in the United States and other areas has hindered research from filling that demand.

That’s not to say that there’s no cannabis research being conducted. As of this article, a search for ‘marijuana’ on PubMed.gov (US National Library of Medicine National Institutes of Health) returns over 31,000 results for peer-reviewed cannabis studies.

The current body of research is significant, however, it’s not enough. Researchers need to be able to study the cannabis plant without political hindrances and hurdles.

Australia’s Health Minister recently announced that a fund will be launched that will be dedicated to medical cannabis research. Per Reuters:

Australia will provide A$3 million ($2.03 million) for research on the use of cannabis to help cancer patients, its health minister said on Sunday, as the demand for medicinal cannabis products grows rapidly.

“There have only been a limited number of well-designed clinical studies on medicinal cannabis, and we need to increase the evidence base to support medical professionals,” a ministry statement cited him as saying.

Australia is home to a growing medical cannabis program that is experiencing strong growth with more and more patients being permitted to cultivate, acquire, and/or use medical cannabis.

The launch of the fund demonstrates that Australia is taking the issue of medical cannabis research seriously, provided that the studies involved are objective and free from bias.

Cannabis opponents in Australia and everywhere else around the world often cling to the false talking point that ‘there needs to be more cannabis research’ before laws can be reformed.

Those same opponents simultaneously do everything that they can to prevent research, which makes it clear that their motives are not based on compassion, but rather they are based on politics.

A sensible approach to cannabis policy involves scientific research and figuring out ways to get all of the best benefits that the cannabis plant can provide while also figuring out ways to mitigate any undesirable properties that may exist for certain patients and required treatment regimens.

Hopefully other countries follow Australia’s lead and embrace cannabis research instead of prohibiting or limiting it. Public health policies should be guided by science, and not the harmful political views of a handful of lawmakers.

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Nevada Governor Forms Task Force After Report Of Failed Foreign Corruption Effort

Written by Johnny Green on October 16, 2019. Posted in Business, Politics.

A report came out this week involving a failed attempt by a group with Ukranian ties that were reportedly trying to obtain a Nevada cannabis business license via corrupt means.

The report has resulted in Nevada’s Governor forming a task force to investigate any possible corruption in the state’s emerging legal cannabis industry.

A federal court indictment was filed on Friday in New York which charged four men with illegally funneling foreign money to political campaigns in the United States.

The indictment detailed how the men missed a September 2018 adult-use cannabis license application deadline and then reportedly organized an effort to try to convince Nevada’s Governor to change industry rules.

Contributions of $10,000 to the failed campaigns of Republican gubernatorial candidate Adam Laxalt and Republican attorney general candidate Wesley Duncan were determined to be part of the indictment once the indictment was crossreferenced with Nevada state political contribution records.

In addition to Laxalt and Duncan, the indictment also detailed troubling allegations involving one of the biggest cannabis opponents to ever serve in Congress, former Texas Republican Representative Pete Sessions. Pete Sessions was defeated in the 2018 election.

Nevada Governor Steve Sisolak issued the following press release on Friday after the indictment was filed:

Today, the Governor released the following statement regarding ongoing issues surrounding the legalized marijuana market as well as his immediate response in the form of a multi-state agency special task force:

The Governor is outraged by yesterday’s news that a foreign national attempted to influence Nevada’s elections through a million-dollar laundering scheme in order to gain a marijuana license and enter our legalized market.

Yesterday’s indictments and their connections to Nevada, in combination with ongoing issues in Nevada’s legalized marijuana industry – such as illegal sales to minors, serious allegations of manipulated lab results, and a licensing process mired in litigation – have led the Governor to expedite regulatory and enforcement measures. Many of these enhanced measures were originally intended to be implemented at the start of the Governor’s Cannabis Compliance Board, but in the interest of time and the public health and safety of Nevadans, the Governor has formed a multi-state agency special task force to root out potential corruption or criminal influences in Nevada’s marijuana marketplace, effective immediately. Any marijuana entity – licensed or unlicensed – that violates the law will see swift and severe criminal and regulatory action.

The Governor is disappointed in the lack of oversight and the inaction from the state over many years that led us to this critical juncture – including the apparent absence of a single criminal referral by the Marijuana Enforcement Division since the inception of licensed marijuana sales, medical or recreational, in Nevada. Governor Sisolak’s administration is taking immediate action in order to protect the health and safety of Nevadans, the jobs created by the industry, and the long-term sustainability of education funding generated from the legalized marketplace.

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Brazilian Regulators To Vote On Medical Cannabis Proposals Tomorrow

Written by Johnny Green on October 14, 2019. Posted in Medical.

Brazil is the largest nation in South America, as measured by population size, and the next closest country on the continent isn’t close. Brazil’s population of over 200 million people dwarfs the next closest country on the list, Colombia, which has a population of fewer than 50 million people.

A new, compassionate, and exciting industry being created out of thin air in Brazil would be a really big deal on a global scale because of how large the country is. Brazil is the fifth most populated country on earth.

That is what is happening right now, albeit slowly, right before our very eyes. The medical cannabis industry is coming to Brazil beyond imports of pharmaceutical-based cannabis medicines.

Multiple proposals of regulatory models are currently being considered by Brazilian regulators, with a vote expected tomorrow. The vote was originally expected last week until a delay was announced leading up to the vote. Per Brazil’s National Health Surveillance Agency (Anvisa):

Some suggestions from the Agency’s directors on the texts of the Resolutions to be deliberated on Tuesday (8/10) on cultivation and registration of cannabis-based medicines need to be evaluated. Tema returns to the agenda of the Anvisa Collegiate Board at the next meeting, scheduled for October 15.

Initially, topics discussing criteria for cultivation and registration of plant-based drugs would be deliberated at the Board meeting on Tuesday (10/08).

However, some suggestions from the Agency’s directors were presented to the text. Prior to consideration by the Board of the Agency, the new considerations will be evaluated by the technical areas related to the topic, as well as by the Anvisa Attorney.

Brazil is currently a leading importer of pharmaceutical-based cannabis medicine. It’s far from being an optimal situation. Those types of products are extremely expensive compared to cannabis flower and other cannabis product options that are available in many legal cannabis markets.

Pharmaceutical-based cannabis products are not effective for a large number of suffering patients in Brazil. Those patients need legal access to other forms of cannabis that can be consumed via a wide array of consumption methods.

Domestically cultivated cannabis is what Brazilian lawmakers tasked the government with building a regulatory framework for, and once that becomes a reality, Brazil will likely become home to some of the cheapest medical cannabis options in the world.

It is no secret that cannabis grows better and easier in many parts of South America compared to the rest of the world, similar to other agricultural products. Brazil is no exception. The climate in many parts of Brazil is ideal for sungrown cannabis cultivation.

Not only could Brazil produce its own medical cannabis cheaper than current options for legal cannabis imports, it very well could end up cultivating so much cannabis that it creates the opportunity for Brazil to become a top cannabis exporter to countries around the globe.

Suffering patients in Brazil deserve better medical cannabis options, and individuals and entities that can do honest work and provide quality medicine to those patients should be allowed to legally do so. Hopefully this week’s vote is favorable and Brazil moves closer to implementing a legal, regulated medical cannabis industry.

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Is A Regulated Adult-Use Cannabis Industry Coming To Mexico Soon?

Written by Johnny Green on October 8, 2019. Posted in Business, Politics.

Last year Mexico’s Supreme Court ruled that the country’s cannabis prohibition policy is unconstitutional. Mexico became, in a way, the third country to legalize cannabis, albeit via a court decision. Uruguay and Canada legalized cannabis for adult-use via the political process.

Mexico’s Supreme Court directed lawmakers to craft and approve cannabis legalization by the end of October 2019. We are, of course, in the middle of October 2019. It appears that lawmakers feel confident that they will meet the deadline, which was first reported by Marijuana Moment. Per the report:

The Senate leader of Mexico’s ruling party said that the lawmakers will vote on a bill to legalize marijuana for adult use by the end of the month.

There are numerous pieces of legalization legislation already on the table, but Sen. Ricardo Monreal of the MORENA party said his chamber is nearly done crafting a new reform bill that will be the product of weeks of public forums and open-session debates. Members of the other half of Mexico’s legislature, the Chamber of Deputies, will be invited to weigh in on the bill.

“We’re thinking that we’ll bring the law out, approve it, at the end of October,” Monreal said. “That’s the schedule we have.”

A number of pieces of legislation have been introduced and/or floated by various politicians in Mexico. However, from afar it appears that Senator Monreal’s bill has the greatest chance of actually becoming law.

As the push for legalization legislation moves along in Mexico, many entrepreneurs are wondering what it means in regards to the chances of a legal adult-use cannabis industry in Mexico becoming a reality. The ruling by Mexico’s Supreme Court did not call for a regulated cannabis industry.

Rather, it determined that personal possession, use, and cultivation of cannabis should be legal and the Court tasked lawmakers with making it officially happen. Mexico has been operating in a gray area while lawmakers work to pass the required legislation.

In the immediate future, assuming lawmakers get the job done, Mexico’s adult-use cannabis policy will be more like that of Washington D.C. and Vermont compared to Canada and states in the U.S. that have legal adult-use industries. Consumers will be able to gift cannabis, however, that’s the extent to which cannabis can legally change hands between consumers for adult-use purposes.

That will obviously limit the business opportunities for entrepreneurs that are looking to start-up in Mexico. Legislation creating a regulated adult-use industry will hopefully follow shortly after lawmakers in Mexico meet the Supreme Court’s mandate. Ultimately, only time will tell if that actually occurs, but luckily momentum for such a move appears to be building.

Sign Up To Receive The International Cannabis Chronicle Newsletter

Written by Johnny Green on October 7, 2019. Posted in Business, Cultural, Medical, OMBC, Politics, Science, Social.

These are truly exciting times for all things cannabis. Cannabis policy reform is sweeping the globe, the cannabis industry is growing at an epic rate, and major cannabis culture news is occurring at an increasing pace.

It can be very difficult to stay up-to-date on everything that is happening in the cannabis world with so much going on at all hours of the day. Cannabis has gone mainstream, and the rise in the level of acceptance of cannabis in society has been paralleled by an increase of news coverage that touches on topics and situations that are not necessarily that important in the grand scheme of things.

For many cannabis consumers, entrepreneurs, and policymakers it can be exhausting to try to sort out the less important stories from the truly important ones due to so much cannabis media white noise. However, at the same time, it is vital for people in the cannabis community at all levels to stay on top of things. It’s a very frustrating catch-22.

To help address the problem the International Cannabis Business Conference launched a new e-mail newsletter, the International Cannabis Chronicle, which covers the most important cannabis news and developments from around the globe.

International Cannabis Chronicle is delivered straight to subscribers’ e-mail inboxes once a week. It’s an extremely convenient way to stay up to-to-date on the most important cannabis information.

If staying up to speed on the biggest cannabis stories is important to you, make sure to sign up to receive the International Cannabis Chronicle newsletter today. You will be glad that you did!

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Poll Finds That Support For Legalization In California Has Increased Since 2016

Written by Johnny Green on October 2, 2019. Posted in Business, Politics.

When it comes to cannabis in the United States, California is a pioneer. California was the first state to legalize cannabis for medical use (1996), and while it wasn’t the first to legalize cannabis for adult use, it is still the largest legal cannabis market in the country.

California voters overwhelmingly approved a cannabis legalization initiative in 2016. Nearly 3 years later, support has increased. That’s per poll results from a recent poll conducted by UC Berkeley Institute of Governmental Studies on behalf of the Los Angeles Times. Below are a couple of excerpts from the poll’s results:

According to the poll, 68% of Californians say legalization has been a good thing for the state, an increase in support since 2016, when 57% of voters approved Proposition 64, which legalized growing, selling and possessing cannabis for recreational use…

..the poll found that 63% of California voters favored their cities giving permits to cannabis stores, with support in all areas of the state, including 69% in Los Angeles County. The lowest support for pot shops was in the Inland Empire, which includes Riverside and San Bernardino counties, at 54%.

The implementation of a regulated adult-use cannabis industry in California has been tough. That should not come as a shock to anyone considering how large California’s population is, and how long the state had a medical cannabis industry that operated within a patchwork of often-conflicting public policies and regulations.

Local cannabis industry bans have not helped matters at all. Local communities should be embracing the cannabis industry, not continuing to prohibit it. Prohibition never works, including at a local level. Consumers should be able to make legal purchases at regulated cannabis stores, otherwise, they often turn to an unregulated market which is undesirable for a number of reasons.

Cannabis dispensaries have been associated with lower crime rates and increased property values, and that benefits all community members, not just cannabis consumers and cannabis entrepreneurs. Why prohibit them?

California’s cannabis industry is far from having reached its full potential, however, it’s encouraging to see that support for legalization has increased since legalization was passed in 2016. Cannabis opponents claimed that California voters would regret supporting legalization. That is clearly not the case.

Hopefully local lawmakers in areas that have cannabis industry bans listen to their voters and finally allow the industry to operate in their jurisdictions, and in the process, create local jobs, boost local economies, generate local government revenue, and provide other benefits.

We will be discussing local California cannabis laws and regulations at our upcoming International Cannabis Business Conference in San Francisco on February 6-7, 2020. Come join the conversation!

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Cannabis Industry Adds $8.26B To Canada’s GDP According To Statistics Canada

Written by Johnny Green on October 2, 2019. Posted in Business.

Canada was the second country to legalize cannabis for adult use and the first to implement a regulated, open-to-all, adult-use cannabis industry. Uruguay was the first to legalize cannabis for adult use, however, Uruguay’s industry is very limited.

The rollout of a regulated adult-use cannabis industry in Canada has experienced its ups and downs, which is expected considering that Canada was the first to ever tackle such a monumental undertaking. Some opponents have claimed that Canada’s public policy change was not worth it, however, the math does not back that up.

Statistics Canada put out new information this week about the cannabis industry’s economic impact, and the numbers are huge. Per BNN Bloomberg:

Canada’s cannabis sector contributed $8.26 billion to the country’s gross domestic product as of July, a steady increase from the $7.02 billion last October when recreational cannabis was legalized, according to new data published by Statistics Canada on Tuesday. The StatsCan figures also show Canada’s legal cannabis industry has grown by a whopping 185 per cent in the first 10 months since recreational marijuana was legalized. The black market’s cannabis output has fallen by 21 per cent in that same time, according to StatsCan estimates.

A lot of discussions about measuring Canada’s cannabis industry success focus on total sales figures, the amount of cannabis cultivated, and other direct measurements. Those types of measurements are worth noting, however, they don’t capture the full picture of the cannabis industry’s economic impact on the country.

Because the cannabis industry contributes billions of dollars to Canada’s overall GDP, it’s an industry that benefits all members of Canada in one way or another whether they consume cannabis or not. Canada’s adult-use cannabis industry is still very young, so the numbers put out by Statistics Canada this week should increase well into the future.

Canada has a very rich history when it comes to cannabis, which is one of the many reasons why we choose to host an annual event in Vancouver, British Columbia. The cannabis industry rules and regulations in Canada are obviously not perfect, however, they are better than full prohibition as the available math demonstrates.

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Cannabinoid Conference 2019 Is Coming To Berlin October 31 – November 2

Written by Johnny Green on October 1, 2019. Posted in Science.

Cannabinoid Conference 2019 is coming to Berlin, Germany October 31 to November 2. The event is the leading international meeting on medical uses of cannabis and cannabinoids and is hosted by the International Association for Cannabinoid Medicines (IACM).

We are in the midst of a truly amazing era for cannabis research and medicine. Cannabis reform is sweeping the globe, which is creating tremendous opportunities for cannabis entrepreneurs and scientists. The rise of the legal cannabis industry is resulting in an ever-growing demand for cannabis research.

Speakers and presenters at Cannabinoid Conference will be covering the latest results and data from their cutting-edge cannabis trials, studies, and investigations. If you are looking to learn more about cannabis research and network with the leading minds on cannabis science there is no better place to be between October 31 and November 2 than in Berlin, Germany at Cannabinoid Conference 2019.

“When we started our conferences about 20 years ago they were kind of “family meetings” of eminent scientists and clinicians active in the field of the medical use of cannabis and cannabinoids. This family has considerably grown in recent years and we were happy to gradually open the conference to an increasing number of healthcare professionals around the world interested in learning from recent scientific advances and practical knowledge of their experienced colleagues.” Dr. Franjo Grotenhermen, Executive Director of the IACM, told the International Cannabis Business Conference.

Cannabinoid Conference 2019 speakers will include:

Arno Hazekamp – Cannabis biochemist Hazekamp Herbal Consulting
Attila Olah – University of Debrecen
Bonni Goldstein – Medical Director Canna-Centers
Carola Perez – President Observatorio Espanol de Cannabis Medicinal
Christian Kessler – Immanuel Hospital Berlin
Daniela Eigenmann – Deputy Pharmacist Bahnhof Apotheke Langnau
Daniele Piomelli – Distinguished Professor UCI Center for the Study of Cannabis
Raquel Peyraube – Uruguayian Society of Endocannabinology (SUEN)
Ethan Russo – ICCI
Franjo Grotenhermen – Executive Director International Association for Cannabinoid Medicines
Guillermo Velaso – Associate Professor Complutense University
Ilya Reznik – MaReNa Diagnostic and Consultic Center
Javier Fernandez-Ruiz – Department of Biochemistry and Molecular Biology, Faculty of Medicine, Complutense University, Madrid
José Alexandre Crippa – Full Professor University of São Paulo
Ken Mackie – Indiana University, Bloomington
Kirsten Müller-Vahl – Hannover Medical School
Mario van der Stelt – Professor and Chair of the Department of Molecular Physiology Leiden University
Mark Ware – Chief Medical Officer Canopy Growth Corporation
Michael Krawitz – Executive Director of Veterans For Medical Cannabis Access
Roger Pertwee – Emeritus Professor University of Aberdeen
Ziva Cooper – Research Director, Associate Professor UCLA Cannabis Research Initiative

The robust event schedule will cover a number of topics, all of which are very timely. Cannabinoid Conference 2019 is going to provide an invaluable level of education and information, and will also be an amazing place to network.

There will be simultaneous translation from English into German on the first day. Day one of the conference is a tutorial day with reviews and practical information for physicians.

A reduced fee for the event is available for students and participants from developing countries. The conference offers a day pass option (first day only) in addition to a full conference admission option.

The IACM will honor four people for their major contributions to cannabinoid research and/or to the re-introduction of cannabis into modern medicine with the IACM Award as part of the conference.

When: October 31 – November 2
Where: Estrel Hotel, Berlin, Germany
Purchase tickets: http://cannabinoidconference.org/registration

About Cannabinoid Conference 2019

The first Conference on Cannabinoids took place in Berlin in 2001 and was organized by the International Association for Cannabinoid Medicines. Since the inaugural conference, the event has been held in Cologne, Leiden, Bonn, and Sestri Levante. The 10th conference, Cannabinoid Conference 2019, will be the first time that the event has been held in Berlin since 2001. Berlin is the cannabis capital of Europe and is the perfect setting for Cannabinoid Conference 2019. To find out more information about Cannabinoid Conference 2019 go to: http://cannabinoidconference.org/

About the International Association for Cannabinoid Medicines

The International Association for Cannabinoid Medicines (IACM) was founded in 2000. The aim of the association is to advance knowledge on cannabis, cannabinoids, the endocannabinoid system, and related topics especially with regard to their therapeutic potential. The IACM is the most respected international association on cannabis and cannabinoids in medicine. Former chairmen and chairwomen included Raphael Mechoulam, Mark Ware, Roger Pertwee, Manuel Guzman, Franjo Grotenhermen, Ethan Russo and Kirsten Mueller-Vahl. For more information about the International Association for Cannabinoid Medicines go to: https://www.cannabis-med.org/