Congress Under Pressure: Colorado Officials Push For Cannabis Banking Reform

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October 11, 2022

Congress Under Pressure: Colorado Officials Push For Cannabis Banking Reform

The Secure and Fair Enforcement (SAFE) Banking Act, from Rep. Ed Perlmutter (D-CO), has passed the House on several occasions but stalled in the Senate.

With the end of Congress’s session just around the corner, marijuana advocates, stakeholders and lawmakers continue to push for marijuana banking policy change.

This time, Colorado Gov. Jared Polis (D) joined forces with Lt. Gov. Dianne Primavera (D), Attorney General Phil Weiser (D), Treasurer Dave Young (D) and Department of Public Safety (DPS) Executive Director Stan Hilkey in urging congressional leaders to revisit the issue, reported Marijuana Moment.

In a letter sent on Monday to both House and Senate leaders, Colorado officials focused on the impact which a bipartisan marijuana banking bill will have in terms of public safety and industry equity,

“The lack of safe banking and financial services for the cannabis industry in the State of Colorado has become a dire public safety issue for highly regulated cannabis businesses operating in compliance with state law,” the officials said.

The letter, which came on the heels of President Biden’s announcement to pardon prior federal cannabis possession convictions, also addressed the “uneven playing field faced by small and minority-owned cannabis businesses” caused by the lack of safe banking.

“We are proud of the robust cannabis structure established in our state that protects public safety, supports responsible innovation and, importantly, enhances the myriad economic development and social benefits the industry has provided to all Coloradans, especially minority-, women-, and veteran-owned small businesses,” the letter said.

colorado cannabis — Photo by traffic_analyzer/Getty Images

Banking Reform Bill Moving Closer To Passing

The Secure and Fair Enforcement (SAFE) Banking Act, from Rep. Ed Perlmutter (D-CO), has passed the House on several occasions but stalled in the Senate.

Meanwhile, Cantor Fitzgerald’s analyst Pablo Zuanic, who recently met with lawmakers in Washington, D.C., said last week that congressional leaders are considering a banking measure for the cannabis industry in the upcoming elections.

The analyst also said that the marijuana industry may not be in regulatory limbo for much longer, with the passage of “SAFE Plus” now more likely to pass during the Congressional lame-duck period, between the November midterms and when the new Congress is sworn in in January 2023.

The ‘SAFE Banking Plus’ Act is an updated version of a bill that seeks to harmonize state, federal and state law by protecting financial institutions that provide banking services to marijuana-related and ancillary businesses.

“We think that talk of a SAFE Plus (bill) is something that should be taken seriously,” Zuanic recently told investors during a Zoom call. “It’s not just a jingle. It’s not a pipe dream. It’s something that’s ongoing. There are discussions at high levels in the Senate between co-sponsors of the SAFE Banking bill on the Republican side with Senate leadership.”

This article originally appeared on Benzinga and has been reposted with permission.

Indoor Vs. Outdoor, Which Type Of Weed Gives A Better High?

Cannabis

Tom Gaffey

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October 11, 2022

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Indoor Vs. Outdoor, Which Type Of Weed Gives A Better High?

Both outdoor and indoor marijuana are capable of producing the best weed in the land. But which gives you the best high?

Cannabis options these days are more bountiful than ever before. It seems there is a new way to consume marijuana every season and always a new strain to try out. When it comes to selecting a marijuana product, the process, while exciting, can be altogether daunting. It’s helpful to find ways of narrowing the list of choices in front of you. Legal grow company early on, especially in Canada, invested millions in indoor grow. Now the question is Indoor vs outdoor, which type of weed gives a better high?

If you prefer indica to sativa, for example, you can cut your list in half. This can make your selection a bit less overwhelming. Then there is the growing method to consider.

You may have heard there are some differences between indoor and outdoor marijuana. You might even notice that the buds you purchase even look a bit different depending on whether they were grown inside or in natural sunlight. This might have you wondering if these visual differences between indoor grown and outdoor grown marijuana can also affect the quality of the product. If so, when it comes to indoor versus outdoor cannabis, which type is better to buy?

Reasons to Buy (and Avoid) Indoor Grown Marijuana

Indoor cannabis is sometimes compared to growing marijuana in a laboratory, and this comparison is by no means baseless. Indoor marijuana is grown in very controlled, laboratory-like conditions. This control allows growers to extract the exact attributes they are looking for in any given strain.

This controlled and hands-on approach can lead to potent products, with several indoor varieties having higher THC content than their outdoor counterparts of the same strain. According to the cannabis technology and marketing company Leafbuyer, “In an enclosed space, you can control the amount (and type) of light your plant gets, the humidity of your growing room, and just about every other factor that goes into growing cannabis.”

When you purchase indoor cannabis, you are likely to get a controlled product, with little variation. In other words, if you are less likely to be “surprised” with indoor cannabis, as part of the goal is to remove that nuance that exists in outdoor farming.

While indoor cannabis is quality controlled and closely monitored, there are some reasons that might steer you away from cannabis grown indoors. One of these reasons is noticeable right off the bat — the price. Because indoor cannabis is grown inside a facility, there are more overhead costs. It often takes more manpower per plant to grow as well, raising the price even more. And while each plant could potentially contain more THC than outdoor plants, the yields are often much smaller.

growing marijuana — Photo by Cappi Thompson/Getty Images

The other reason you might want to reconsider purchasing indoor weed has less to do with how the high feels, but rather how low the purchase might make you feel on a moral level. That is because indoor cannabis has a mammoth carbon footprint. According to New Frontier data, “Indoor cultivators use 18 times more energy to produce one gram of cannabis than outdoor cultivators use (kWh/gram).”

The study goes so far as to say that indoor marijuana cultivation produces almost 25 times more carbon than outdoor growing methods. If you, like many, are sensitive to your carbon footprint in this era of climate change, then purchasing some indoor cannabis might make you feel a bit environmentally irresponsible.

Outdoor Cannabis and Why You Should Choose It

When it comes to outdoor cultivation, it is easy to compare it to indoor growing and see a major potential downside, and that’s a lack of consistency. Just like with wine and other complex horticulture products, outdoor cannabis can vary greatly from one growing season to another. With ever-mounting wildfires, droughts, hurricanes and other intense unpredictable weather events, it is easy to see why there can be good years and catastrophic years for outdoor cannabis. This, more than anything, makes outdoor cannabis unpredictable, especially compared to cannabis grown indoors.

There is also the climate to consider. Growing cannabis outdoors in tropical Hawaii is simply not going to be the same process or product as the same strain grown in Maine. The growing seasons can be short or long, just as the days and sunlight can vary significantly.

Still, some argue that this individual relationship outdoor plants have with the Earth and the sun is what makes it special, and possibly superior. “By letting the plants do their thing and just making sure they have enough food and water to thrive, you can end up with an incredible crop,” according to cannabis nutrient supply company Geoflora Nutrients. “Many growers even consider outdoor-grown bud to taste better because it was grown with sunlight.”

marijuana crop — Photo by Lealnard Riengkaew / EyeEm/Getty Images

In fact, while the idea that indoor weed is more precisely grown and is therefore superior is one theory, others see great value in using the natural elements. “Outdoor has a bad rep for being weak or not as juicy in flavor as indoor,” Merry Jane editor Mary Carreon told Forbes. “But I’d argue that outdoor can be just as good, sometimes better, than indoor,” she continued.

After all, potency is not necessarily what makes marijuana “the best.” Some people look for taste and aroma. Just like with fine wine, much of that nuanced flavor can come from the soil and surroundings, which might be muted or altogether absent when marijuana is grown indoors with carefully manipulated soil.

Answer the question of indoor vs. outdoor, which time of weed give a better high, well the answer is both. Both are capable of producing the best weed in the land. Indoor cannabis is king when it comes to consistency, since it strips the environment of nearly all outside variables. It also unloads a giant carbon footprint. Outdoor cannabis, while married and unique to the climate where it is purchased, can offer a more eco-friendly and tasty experience, even if it might be a bit of a surprise. And is usually more cost friendly.

What Happens When You Smoke Magic Mushrooms

Terry Hacienda

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October 11, 2022

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What Happens When You Smoke Magic Mushrooms

There are tried and tested methods of consuming magic mushrooms safely. Smoking just isn’t one of them. Here’s why.

Psilocybin is the word on everyone’s lips these days. This amazing compound found in species of “magic mushrooms” is widely being consumed by everyone from young adults for recreation to moms, burnt out entrepreneurs, and everyone in between. After all, its health benefits are nothing short of miraculous; it can treat an array of ailments that Big Pharma hasn’t been able to do.

Psilocybin, whether in small or large doses, can be used for treating depression, anxiety, and PTSD to name a few. You can even take it without having any serious mental disorders just for overall well-being. And many consumers appreciate the myriad of ways you can consume psilocybin: in pre-dosed capsule, raw, in food, tea, packaged edibles, and more.

But some people wonder if you can smoke magic mushrooms, since smoking is a common way to consume many other psychedelic substances.

What Could Happen If You Smoke Magic Mushrooms

Smoking is currently not an accepted method of consumption for magic mushrooms. It could even cause serious harm. Don’t smoke magic mushrooms!

When psilocybin is exposed to high heat, it will break down rapidly and won’t get you high. In addition, magic mushrooms can be extremely harsh on the throat when smoked. This will be an unpleasant, potentially painful, and even dangerous experience to smoke it overall.

There are risks involved. You can get aspergillosis, which is a respiratory condition caused by fungal exposure, resulting in damage to your blood vessels. The only treatment for aspergillosis is antibiotics, or in extreme cases it may require surgery. Other side effects of smoking magic mushrooms include shortness of breath, wheezing, lung damage, fever, and inflammation. Also, keep in mind that on top of the existing risks, you could also accidentally inhale mold spores when you smoke magic mushrooms — this condition is called Lycoperdonosis.

Individuals who already have a compromised immune system can suffer from another problem called histoplasmosis especially if you smoke mushrooms that have mold. This can cause pneumonia and lung infections. Serious cases may lead to chronic conditions affecting the liver, nervous system, and mouth.

In short, nothing good can come out of trying to smoke magic mushrooms. Even if safe, you likely won’t get high since psilocybin requires interaction in the digestive tract to convert it to psilocin. The psilocin is what triggers the serotonin receptors to boost serotonin production, which is what makes you feel elated after you eat the mushrooms.

So, you will likely not get high and you have a pretty high risk of getting seriously sick. It just isn’t worth it.

magic mushrooms psilocybin — Photo by Artur Kornakov via Unsplash

Safest Way To Consume Magic Mushrooms

There are tried and tested methods of consuming magic mushrooms safely. Below are some ways you can do this:

Capsules: Pre-dosed psilocybin capsules are widely available especially in cities that have decriminalized it. It’s a discreet method of consumption plus offers the benefit of already being pre-dosed, so you already know exactly how much you’re getting in each capsule. Those who are fans of microdosing can take capsules containing 0.5 or 1 gram each, while macrodosing will entail consuming more.

If you want to make psilocybin capsules yourself, just grind the raw mushrooms until you’ve reached a fine, powdery consistency. Place them into empty capsules, whether manual or with a machine, and enjoy.

Tea: Taking mushrooms tea is an old, reliable way to consume mushrooms. This method is safe, and also advisable for individuals who have a sensitive stomach. Drinking mushroom tea also has a quicker onset time.

To make a tea, first use a grinder to turn the mushrooms into a fine powder form in your desired dose. Pour hot water over it, let it steep for around 10 minutes, and get ready for your trip. For those who do not particularly like the taste of mushrooms in tea, you can flavor it by adding honey or even another tea bag.

Edibles: You can add mushrooms into basically any kind of edible treat. This can be candy, omelets, chocolate, pizza and so much more. Doing so is an effective way of getting rid of the unpleasant taste. Just remember not to expose the mushrooms to high heat — above 190F for over 30 minutes in order to preserve the high.

sorry but the science of microdosing psychedelics is slim — Photo by eskymaks/Getty Images

Raw or dried magic mushrooms always works best if you are concerned about potency. Treat them the way you would other types of edible mushrooms.

Raw: If you don’t mind the taste of mushrooms, eating them raw is a simple, fuss-free way to get high. Simply pop the mushroom in your mouth, chew, and swallow. That’s all it takes!

Lemon tekking: Lemon tekking is a fairly new process that has grown in popularity for its refreshing way to consume magic mushrooms. Lemon tekking involves putting the magic mushrooms in freshly squeezed lemon juice, and allowing it to sit for 20 minutes. Doing so increases the intensity of the experience while also hiding any unpleasant taste of mushrooms.

According to experts, soaking mushrooms in the citric acid found in lemons results in a chemical reaction that breaks down the psilocybin in advance. What you get is a quicker onset through a delicious, refreshing drink.

Whatever you do, don’t smoke magic mushrooms. There are so many other ways you can safely consume mushrooms without having to worry about adverse side effects, such as the methods discussed above. Always do your research and plan for a proper, comfortable setting before dosing.

This State’s Governor Wants To ‘End The Stigma’ On Cannabis Despite GOP Opposition

Benzinga Staff Writer

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October 10, 2022

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This State’s Governor Wants To ‘End The Stigma’ On Cannabis Despite GOP Opposition

“The General Assembly didn’t pass your recommendations on this last session, but I believe they should,” the Gov. said, adding that cannabis possession conviction can “mar people’s records for life and maybe even prevent them from getting a job.”

By Jelena Martinovic

Just days after President Joe Biden announced he would pardon all prior federal offenses of simple marijuana possession and urged governors to do the same, North Carolina’s Gov. Roy Cooper (D) has taken steps in that direction.

During a Friday task force meeting on racial equity and criminal justice, Cooper addressed the issue of marijuana decriminalization, saying that it’s time to “end the stigma.”

The task force, established in June 2020, includes law enforcement officers, attorneys, civil rights advocates and state officials. The 24-member panel announced in a 2020 report that lawmakers should consider possession of up to 1.5 ounces of marijuana as a civil offense instead of a misdemeanor. However, the General Assembly ignored the task force’s recommendation.

“The General Assembly didn’t pass your recommendations on this last session, but I believe they should,” Cooper said, adding that cannabis possession conviction can “mar people’s records for life and maybe even prevent them from getting a job.”

Currently, North Carolinians caught with more than 1.5 ounces face a felony charge, while possession of over 0.5 ounces is punishable by up to 45 days in jail and up to $1,000 in fines.

North Carolina Attorney General Josh Stein seconded the governor’s stance on the issue.

“People should not have a federal criminal record for something that is legal in an increasing number of states,” Stein said last week. “Let’s act, and let’s get it right. That means decriminalizing adult use, expunging past convictions for simple possession, and including strong protections for kids, no advertising, state-controlled sales and putting NC farmers first.”

marijuana arrest — Photo by FatCamera/Getty Images

Legalization Efforts

Meanwhile, the state Senate approved the NC. Compassionate Care Act in June with bipartisan support in a 35-10 vote. The bill, co-sponsored by Senator Bill Rabon (R), sought to allow cannabis with higher levels of THC to treat debilitating conditions such as cancer and post-traumatic stress disorder.

However, North Carolina House Republicans decided not to legalize medical cannabis later that month.

House Speaker Tim Moore (R) was a key lawmaker who dismissed the idea of enacting medical cannabis legalization this year. “I feel very confident that Republicans will have a supermajority next year. When I say next year, I mean six months from now. We can deal with this then,” he said.

This article originally appeared on Benzinga and has been reposted with permission.

Do Dispensaries Share Your Information With The Government?

Sam Anderson

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October 10, 2022

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Do Dispensaries Share Your Information With The Government?

Despite the increasing acceptance and legalization of cannabis across the US, it is still illegal at the federal level, and there is an enduring stigma around cannabis use.

Do dispensaries share information with the government? The short answer is probably not. Dispensaries have little incentive to share customer information with the government at either the state or federal level. Furthermore, the information that dispensaries collect from customers will vary from state to state. Government access to dispensary information could also depend on the thoroughness of the dispensary in tracking and protecting customer or “member” data.

Under rare circumstances, however, dispensary customers could risk the federal government obtaining records of purchases made by all customers at a particular dispensary if the feds were to shut down a dispensary in a legal state. Remember, folks: while cannabis might be legal in your state, it remains illegal at the federal level.

There is some precedent for the federal government to step in on dispensary operations in legal states. For example, in 2011 some California dispensaries were warned by federal prosecutors that failed to comply with the state’s medical marijuana law.

What Is Marijuana Gifting And Why Is Everyone Talking About It? — Photo by megaflopp/Getty

Fortunately, the federal government seems more concerned with regulating the business of cannabis rather than the consumption of cannabis or cannabis-based products by individuals. And, though the DOJ has flip-flopped on its practices depending on who occupies the Oval Office, the Biden administration has confirmed that it will take a “hands-off” approach to cannabis-related law enforcement.

One last thing to keep in mind: regardless of the data sharing practices of any dispensary, federal government employees might still have to take drug tests and cannot test positive for THC.

As recently as 2021, senior security advisor for the special security directorate at the National Counterintelligence and Security Center Valerie Kerben, reiterated the federal government’s position in favor of maintaining a “drug free workplace,” according to public sector news publication Government Executive. Kerben’s comment came in the wake of the House of Representatives’ passing of the Marijuana Opportunity Reinvestment and Expungement (MORE) Act. The Senate has yet to make a decision regarding the MORE Act.

smoking marijuana — Photo by Alina Rosanova/Getty Images

Get started on your cannabis wellness journey

Have you started your cannabis wellness journey? Jointly is a new cannabis wellness app that helps you discover purposeful cannabis consumption so you can achieve your wellness goals with cannabis and CBD. On the Jointly app, you can find new cannabis products, rate products based on how well they helped you achieve your goals, and track and optimize 15 factors that can impact your cannabis experience. These 15 factors include your dose, the environment in which you consume cannabis, who you are with when you ingest, how hydrated you are, the quality of your diet, how much sleep you got last night, and more. Download the Jointly app on the App Store or the Google Play Store to get started on your cannabis wellness journey.

Sam Anderson is the content Director at Jointly, a cannabis wellness company powered by a proprietary data platform to help people reach their full potential. The company was created on the premise that purposeful cannabis consumption is the key to unlocking a better you. This article originally appeared on Jointly and has been reposted with permission.

Is Keeping Marijuana Illegal Harming People’s Health?

Tom Gaffey

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October 10, 2022

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Is Keeping Marijuana Illegal Harming People’s Health?

With marijuana still listed as a Schedule 1 drug, it simply is not possible to treat marijuana the same as other plants that are consumed by American citizens.

Some argue that marijuana is far less toxic than any drugs made in a lab, since it is a plant that comes from Mother Earth. While the sentiment and logic is in the right place, the sad truth is that our Earth, its soil and the way we grow plants in this modern times is a far cry from what one might consider “organic.” But you have to ask is keeping marijuana illegal harming people’s health?

Pollution, dangerous chemicals and haphazard growing techniques have led to all kinds of health issues in modern history. Organizations like the EPA and FDA have entire branches dedicated to more sustainable, healthy and safe ways of farming in this country. Unfortunately, these organizations are federally run, which means the multi-billion dollar cannabis industry goes relatively unregulated on a federal level in this regard. This loophole has led to some eye-opening recent discoveries that might be putting the health of cannabis users at risk.

A recent study from Arizona State University, published in the journal Environmental Health Perspectives, looked for contaminants in marijuana samples. Researchers examined all areas where cannabis is legal, and found a shocking amount of contaminants that should not be present on anything humans consume. Not only were dangerous contaminants found in many samples, but the sheer number is alarming.

“As of 18 May 2022, 36 states and the District of Columbia listed a total of 679 cannabis contaminants as regulated in medical or recreational cannabis,” according to the study’s findings. The list of contaminants, according to the report, included pesticides, inorganics, solvents, mycotoxins and other contaminants.

While the number of contaminants is certainly a huge red flag, if you think about how the marijuana industry has exploded recently, without strict federal guidelines, standards or regulation, it is not really all that shocking. After all, the marijuana industry is completely unique compared to other types of farming and plant maintenance.

If you have weeds in your lawn, there is a specific weed killer, or even weed killer fertilizer combination. This substance must first be tested and approved, and then becomes readily available on retail shelves near you. If you grow marijuana on the other hand, you have only word of mouth passed on through a game of telephone when it comes to controlling new pests, molds and diseases.

This trial and error way of growing is likely a contributing factor to all these contaminants. That, and a lack of Federal oversight of course.“Discrepancies between state and federal laws have left cannabis farmers without any pesticides approved for use on their crops—and as a result, some growers have taken the matter into their own hands, treating their plants with alarmingly high levels of pesticides intended for other uses,” according to The Atlantic.

marijuana testing — Photo by Esther Kelleter/Getty Images

Pesticides are not the only cause for health concerns when it comes to a world of unregulated marijuana farming. The soil where the marijuana grows can also have dangerous consequences on the consumer if left unchecked. Marijuana has the ability to absorb heavy metals from soils. These metals include carcinogenic and hazardous metals like lead, mercury, chromium and others. This rare trait in cannabis can sometimes be a great asset to the planet and farmers. Planting hemp in areas contaminated with certain toxic metals can help purify the soil.

But when it comes to growing marijuana for human consumption, this absorption can have potentially toxic consequences.

“The heavy-metal content of cannabis is not regulated; therefore, consumers could unknowingly be exposed to these toxic metals,” said Louis Bengyella, assistant research professor of plant science at Penn State. These findings are alarming when it comes to anyone who consumes cannabis, especially those who use it for medical purposes. “This is bad news for anyone who uses cannabis but is particularly problematic for cancer patients who use medical marijuana to treat the nausea and pain associated with their treatments,” Bengyella said.

According to the ASU study, “Cannabis use reports indicated usage in several patient populations susceptible to contamination toxicity, including cancer (44,318) and seizure (21,195) patients.” Marijuana is commonly used to treat side effects of cancer treatment, meaning many people consuming these potentially carcinogenic and otherwise harmful toxins are already battling cancer or other compromising conditions. This, if nothing else, should be enough to sound the alarm. “This study demonstrates an urgent need for a unified regulatory approach to mitigate the public health risk of cannabis contamination at a national level,” concluded the study’s authors.

cannabis research — Photo by boonchai wedmakawand/Getty Images

In order to help reduce potentially harmful contaminants from reaching cannabis consumers, the authors of the study suggest that individual states and the Federal government must work together to set standards and policy. This, of course, is much easier said than done.

With marijuana still listed as a Schedule 1 drug, it simply is not possible to treat marijuana the same as other plants that are consumed by American citizens. Meanwhile, marijuana continues to be consumed in record quantities, and its contaminants might not be properly regulated until it is finally decriminalized.

SEC Charges Eight In Cannabis Stock Promotion Scheme

Debra Borchardt

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October 9, 2022

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SEC Charges Eight In Cannabis Stock Promotion Scheme

Elegance Brands, Emerald Health Pharmaceutical, and High Times are the stocks included in the stock promotion scheme.

By Debra Borchardt, Green Market Report

The Securities and Exchange Commission announced on September 30 that it had charged eight in a stock promotion scheme that included promoting Emerald Health Pharmaceuticals and High Times Holdings stocks. The SEC says investors purchased $80 million of securities following the promotions. The individuals received payments based on the number of securities sold.

The SEC’s announcement attached the legal complaint that alleged recidivist securities law violator Jonathan William Mikula promoted the securities of four issuers Elegance Brands Inc. (now Sway Energy Corp.), Emerald Health Pharmaceuticals Inc., Hightimes Holding Corp., and Cloudastructure Inc. without disclosing that he received compensation for the promotions. Mikula is alleged to have promoted the securities through Palm Beach Venture, a newsletter for which he served as an author and chief analyst, and presented the recommendations as unbiased and not paid for, while he was secretly compensated in the form of cash and lavish expenses.

In addition to Mikula, the SEC’s complaint also charged Christian Fernandez and Amit Raj Beri, associates of Mikula’s, who allegedly acted as middlemen for the promotional scheme. The gentlemen earned millions of dollars off the promotions but hid the payments by submitting fake invoices for consulting services. Beri in particular acted as the middle man for the cannabis companies Emerald Health and HighTimes. High Times was not charged.

Elegance Brands

Beri also was listed as the CEO and CFO in various SEC filings of the company called Elegance Brands, which produced a product called Gorilla Hemp. Elegance was approved by the SEC for a Reg A offering but after nine months had raised less than a million dollars. When it was decided to promote Elegance through the Palm Beach Ventures newsletter, Beri made changes to the offering but did not prepare a new offering statement with the SEC. Thus any securities sold after that point were considered unregistered. The complaint stated, “At Mikula’s urging, and in order to “facilitate” the promotion, Elegance agreed to engage Individual 1, an associate of Mikula’s, and pay him 3% of investor funds raised through the promotion and provide him with 8.9 million shares of Elegance’s stock, which amounted to 10% of the company’s outstanding stock.”

The complaint said that the newsletter published an article stating that Gorilla Hemp was retailing for $3.95 a can; that Gorilla Hemp could yield Elegance a 2,630% price increase; that Elegance had distribution agreements in place for Gorilla Hemp with the largest adult beverage distributor in the United States; and that Elegance’s share price was projected to increase by 9,900% in five years.

The complaint stated that Elegance raised $20 million from the promotion and paid Individual 1 $350,000. The SEC statement said that Elegance has agreed to pay a penalty of $776,932; Beri has agreed to pay disgorgement of $960,314.96, prejudgment interest of $38,979.24, a penalty of $207,183, has consented to the entry of a 10-year bar and a conduct-based injunction prohibiting him from engaging in certain promotional activities.

In January 2022, Elegance renamed itself Sway Energy Corp. and earlier this year signed a distribution agreement with Halo Collective (OTC: HCANF) as part of its acquisition of H2C Beverages.

Emerald Health

Emerald Health allegedly made $30 million in the stock promotion campaign that consisted of promotional articles in the newsletter. Emerald Health’s CEO James DeMesa is accused of participating in the scheme and allegedly made material misrepresentations and omissions in the filings with the SEC and other investor materials concerning the promotion and related payments. According to the complaint, Emerald Health’s co-founder, Avtar Dhillon, played a key role in the scheme to promote Emerald Health. A separate administrative proceeding against Emerald Health’s CFO, Lisa Sanford, finds that she negligently participated in the scheme.

In 2019, Emerald Health reached out to Mikula for a story in the newsletter. The complaint wrote that Emerald Health would covertly transfer funds to Mikula by engaging Beri’s brother to ostensibly provide consulting services for the company. In turn, Beri’s brother would funnel a portion of his consulting fees to Mikula, and keep a portion for brokering the fraudulent deal. The complaint noted that DeMesa had reservations about the scheme but ultimately wanted the funds to aid in running the company.

cannabis money — Photo by anankkml/Getty Images

In February and March 2020, Mikula authored a Palm Beach Venture article titled “Curing Incurable Diseases and Giving Us Over 4,900% Potential Gains,” which touted Emerald Health and was distributed to the newsletter’s subscribers. In a quarterly update to its investors, Emerald Health highlighted that Palm Beach Venture recommended the company “as an attractive investment opportunity” without disclosing that this was a paid-for recommendation. In late summer 2020, Mikula authored another Palm Beach Venture article touting Emerald Health entitled “The Next Aspirin.”

The SEC statement said that Emerald Health has agreed to pay a penalty of $517,955; DeMesa has agreed to pay a penalty of $103,591 and agreed to a five-year bar from serving as an officer and director, and Dhillon has agreed to a permanent bar from acting as an officer and director.

High Times

High Times was promoted by Palm Beach Venture between April 2020 and March 2021. The complaint stated, “Hightimes ultimately entered into an agreement to pay Entity 1, a Canadian entity controlled by Individual 2, 5% of the funds raised through the Palm Beach promotion. Beri, Individual 2, Fernandez, and Mikula agreed that they would all receive a share of monies that Entity 1 received from Hightimes. The purpose of using a Canadian entity and offshore account was to conceal that payments from Hightimes would go to Mikula.” (Hightimes — using the combined words — is the legal name for the company. However, most refer to the company as High Times).

High Times paid $150,000 for the promotion, but the complaint did not state the number of securities sold through the promotion. However, if High Times agreed to pay 5% of the securities sold and then paid the individual $150,000 it could be deduced that at least $3 million was raised through this promotion. High Times did not respond to a request for comment.

marijuana investing — Photo by Olena Ruban/Getty Images

On Friday, High Times filed a report with the SEC stating that its independent auditor, RBMS LLP on July 18, 2022, declined to stand for re-appointment other than to complete the audit of the 2019 financial statements and the filing of the company’s Annual Report on Form 1-K for the year ended December 31, 2019. High Times did say that RBMS classified the company as a going concern for the years 2015-2019. High Times also stated that it has hired GreenGrowth to audit its statements from 2020 to 2021. It made no mention of the stock promotion scheme that had been announced on the same day.

The company has also extended its Reg A offering to January 2023. The offering however is paused until the company can file audited and updated financials.

The offering was stopped in June 2020, but it was July 2020 when the Cannabis Law report confirmed from HighTimes Holding Corp. lawyer Stephen Weiss and Megan Penick of L.A. based Michelman Robinson LLP that the Securities & Exchange Commission (SEC) has halted sales of shares in the company. Lawyer Megan Penick told Cannabis Law Report she wasn’t aware the company was continuing to solicit for investments even though the website to do so remained live.

In addition to that, press releases for the company continually remind readers that the offering deadline was extended and email inboxes for subscribers were flooded with almost daily offers to buy stock. The main issue according to Buhl wasn’t the company’s promotional activity, but whether the company’s escrow agent Prime Trust processed any sales after the June 12 cutoff. If no sales were processed after June 12, then there was no securities violation. Yet, the SEC says in its complaint that the Palm Beach Ventures promotion went as late as March 2021.

This article originally appeared on Green Market Report and has been reposted with permission.

What Happens If Marijuana Is Descheduled?

Marijuana Legislation

Maria Loreto

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October 9, 2022

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What Happens If Marijuana Is Descheduled?

With Biden’s pardon in the rearview, is it possible for marijuana to be rescheduled? Here’s what that means and what it could look like.

This week, President Biden pardoned all people convicted in federal court for marijuana possession. It was a big moment for marijuana proponents, one that suggests that the Biden administration is reconsidering the government’s stance on the drug.

What happens if marijuana were to be descheduled? This process is not clear and would have some variability from state to state. Reuters provided a thorough breakdown of how this would look, and how it could challenge existing marijuana medical and recreational programs.

medical cannabis — Photo by mikroman6/Getty Images

Marijuana is a Schedule I drug under the Controlled Substances Act, meaning that it’s under the strictest laws, putting it in the same category as substances like heroin. This prevents marijuana from being thoroughly researched, a hindrance for learning its medicinal properties. If the drug were to be rescheduled, say, becoming a Schedule II or a Schedule V drug, it would still be regulated.

In the case of the former, marijuana would be treated like opioids, requiring prescriptions for its use. In the latter, it would be treated like cough syrup and other drugs, monitored by drug stores on a minimal level.

When it comes to states with legal medical marijuana, where doctors are allowed to recommend the drug to their patients, there would also be a change. If marijuana were to be rescheduled, doctors would be able to prescribe the drug, and the drug would have to pass FDA regulation, like all other medications.

“Big Pharma might be the big exciting player here, because they have the most to gain if we were to reschedule but it was still something that was very highly regulated,” said Ohio State professor Douglas Berman.

When talking about states that have legal recreational marijuana programs, things wouldn’t change much unless the drug were to be removed from the scheduling process completely. While unlikely, if this were to happen, the government could put taxes on the drug or add warning labels as they’ve done with tobacco.

Biden’s pardon is by far his administration’s biggest decision regarding cannabis and is the first major step in decriminalizing it. Those that are qualified for the pardon will receive a certificate that shows they’ve been forgiven for their crime.

Scientists Finally Have Some Good News Regarding Marijuana Breathalyzers

Maria Loreto

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October 8, 2022

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Scientists Finally Have Some Good News Regarding Marijuana Breathalyzers

Researchers from UCLA have found some promising evidence that could lead to the development of a functioning marijuana breathalyzer.

While drug tests are able to tell if a person has recently consumed marijuana, there’s currently no way of measuring if a person is high, something that’s becoming increasingly important as more and more states legalize the drug. But that may be changing.

Researchers at UCLA and ElectraTect, a UCLA startup, are testing a promising “cannabinoid fuel cell.” They believe further testing will provide them with key understandings on marijuana breathalyzers, facilitating their existence at some point in the future. The findings were published in the journal Organics.

driving while high — Photo by Cappi Thompson/Getty Images

Researchers explain that the device they’re working on is able to spot THC and measure its concentration in a solution, unlike previous efforts that measure THC in blood, urine, and saliva. While bodily fluids will show traces of the drug after its use, these results are not indicative of current impairment, especially since THC can linger in the body for days.

“As such, there exists a need for a fair forensic tool capable of detecting THC in the short window of impairment,” wrote the scientists.

Researchers are trying to miniaturize their technology, thus extending its reach and becoming a viable option for testing drivers on the go. The technology could be incorporated into a traditional breathalyzer, resulting in a device that could test for both alcohol and THC in the future.

Late last year, a study from Australia claimed that marijuana breathalyzers were inaccurate, at least the ones that measured THC levels in saliva and blood. As we reported back in January, researchers analyzed 28 studies on driving performance and concentrations of THC in blood and saliva and found the connection between the two inconsistent,” we wrote in January.

A marijuana tool that measures THC impairment is pivotal to having a fair and functioning marijuana legal system. It could help manage and reduce the likelihood of accidents, promoting responsible cannabis use, while ensuring that marijuana users are treated fairly.

Stocks Go Green On Biden Pardon, Rescheduling News

Green Market Report

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October 8, 2022

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Stocks Go Green On Biden Pardon, Rescheduling News

While favorable reaction to the news has been generally widespread, investors and financiers remain vigilant regarding the work ahead.

By Adam Jackson, Green Market Report

Cannabis stocks across exchanges soared in the late afternoon Thursday after President Biden surprisingly announced to pardon thousands of people convicted in federal courts for simple possession of cannabis and launch a review of the plant’s classification under the Controlled Substances Act.

Here’s a snapshot of how some of those stocks ended the trading day:

WM Technology (Nasdaq: MAPS): Up nearly 64%.
Ayr Wellness (OTCQX: AYRWF): Up 50%.
Green Thumb Industries (OTC: GTBIF) (CSE: GTII): Up 32% after slumping earlier in the day on the news that three of its board members resigned.

“There are thousands of people who were previously convicted of simple possession who may be denied employment, housing, or educational opportunities as a result,” Biden said in a tweet. “My pardon will remove this burden.”

The development came as a surprise to the public, as the Biden administration has been mostly mum on the issue since taking office despite campaigning on a platform that vowed to end the War on Drugs.

Morgan Paxhia, co-founder and managing director of Poseidon Investment Management said that the move was unexpected, though welcomed. “This is a big step forward for American citizens and the global cannabis industry,” he said.

Good news, but work remains

While favorable reaction to the news has been generally widespread, investors and financiers remain vigilant regarding the work ahead.

“Investors should enjoy the victory, but understand that the overall market will still dictate where the price action goes,” notable investor and self-proclaimed cannabis provocateur Jason Spatafora (@WolfOfWeedST) told Green Market Report. “I am not confident a bottom is in and I say that as someone bullish on the sector.”

Investment firm Jefferies Financial Group said in a statement that the descheduling of cannabis is “unlikely,” though rescheduling (depending on where to) alongside SAFE Banking Plus legislation and a unified vision between the fed and state governments would “be enough for uplistings and a significant inflow of new institutional capital.”

George Mancheril, CEO & co-founder of cannabis financier Bespoke Financial thinks that while the move is a “huge step towards undoing the human cost and damage of the unsuccessful war on drugs,” descheduling cannabis will take much longer due to political headwinds.

This article originally appeared on Green Market Report and has been reposted with permission.

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Researchers from UCLA have found some promising evidence that could lead to the development of a functioning marijuana breathalyzer.

Stocks Go Green On Biden Pardon, Rescheduling News

While favorable reaction to the news has been generally widespread, investors and financiers remain vigilant regarding the work ahead.

Good news, but work remains

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