Legal Marijuana Probably Not As Profitable As Sports Betting

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February 2, 2020

Legal Marijuana Probably Not As Profitable As Sports Betting

States where sports gaming is legal are already generating millions of dollars in tax revenue. And they are doing it without much risk.

The cannabis industry is making impressive strides across the United States, swelling into a collective multi-billion dollar beast. But the legalization of marijuana might not be the most outstanding rockstar in the realm of economic saviors in America. Sports betting, however, could be.

In Illinois, for example, the state recently raked in a whopping $20 million during the first couple of weeks of legal cannabis sales. It was the kind of financial boost the state needed to begin tackling an enormous budget deficit, and it is one that will undoubtedly inspire more states to follow suit.

Still, the real money, the funds that some officials are most excited about, could come from fans trying to win a few bucks by betting on their favorite sports teams. States where sports gaming is legal are already generating millions of dollars in tax revenue. And they are doing it without much risk.

Gambling and marijuana have a lot in common. For years, both were considered products of degeneracy, the recreational path to deep downtrodden in the United States. They were almost exclusively for druggies, the debauched and the immoral swine coursing through the veins of this nation, all of them hellbent on leaving it in an empty state of godless decay. But that is no longer the case.

Marijuana is making some headway among mainstream society. It is now legal in 11 states like alcohol, and it is being used frequently by people of all races and social classes. Sports betting has experienced a similar coming out in the past year or so. Now, 14 states have forged a path allowing the existence of this gaming sect, with the odds in favor of more joining the fun very soon.

How To Get Your Money Back After A Bad Purchase — Photo by Sharon McCutcheon via Unsplash

All of this progress is due to a 2018 U.S. Supreme Court verdict that found the federal government’s Amateur Sports Protection Act (PASPA) to be unconstitutional. Until then, the law mandated that states could not “sponsor, operate, advertise, promote, license, or authorize by law or compact” sports betting. Now the market for such activity is starting to open up.

Many believed the ruling not only carried enormous implications for sports betting, but also marijuana. After all, since the nation’s highest court basically determined that the federal government could no longer ban states from passing their own laws, it was conceivable that more jurisdictions would muster the guts to get involved with legal weed without the fear of backlash.

But we really haven’t seen a lot of movement with marijuana that can be attributed to the ruling. Most states are still leery of a cannabis industry, perhaps continuing to hold on to antiquated ideas that legal weed will lead to some strange uprising of apocalyptic mayhem. This, of course, cannot be said about the arena of sports betting. State lawmakers are beginning to recognize that it is a much larger cash cow than marijuana, and it’s one that doesn’t come with immediate social harms such as increased minor consumption and stoned driving. And it is extremely profitable.

In fact, in the first four months of legal sports betting in Indiana, the state saw nearly $440 million in wagers, according to the Indiana Gaming Commission. And all of this cash was generated, too, without making much change to the current infrastructure. There also weren’t any long lines to contend with, like we’ve seen in states with legal weed, and no product shortages either.

“Indiana went from nothing to…this is effectively found money,” Max Bichsel, group vice president of U.S. business for Gambling.com, told the Indianapolis Star. “The state is making money. The operators are making money. Everyone is making money.”

By all accounts, sports gaming seems to be a safer bet than marijuana. Indiana isn’t even considering allowing dispensaries to open anytime soon. It is content with its almost $4 million tax haul from gambling.

Still, Illinois may initially fare better with legal marijuana than it does with sports betting when it officially launches this gambling sector later this year. The law will, at first, require people to place their bets at casinos or other larger sports venues.

So the take might not be as impressive as it was at the beginning in Indiana. After all, the bulk of the bets made in the Hoosier state from September through December last year (nearly 64%) were through online apps like DraftKings and FanDuel Sportsbook. But once Illinois residents are given the freedom to make wagers from the comforts of home, we could easily see sports betting giving legal weed a run for its money.

How Often Should You Change Your Bong Water?

Maria Loreto

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February 1, 2020

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How Often Should You Change Your Bong Water?

A lot of people let their bong water stew without thinking about all the germs that are growing there.

The maintenance and upkeep of weed paraphernalia is largely dependent on the person. You might clean your bong every two weeks or, if you’re that type of person, when the water starts to smell funky. If you belong to the latter group then you’re about to read some bad news. How often should you change your bong water?

While there’s no need to be obsessive, cleaning your pipe and bong is important. At the end of the day, these are the instruments that are handling elements that go inside your body, improving or messing with your experience. When it comes to the water in your bong, some people say switching out the water once a day is what you’re supposed to do, even if it sounds excessive.

Dirty bong water could lead to lung infections, especially if the bong is being used regularly. This water can quickly develop biofilm, which is filled with bacteria, yeast and all sorts of little creatures. Then there’s the fact that if the bong tips over and some of that water leaks onto any fabric, you’ll have a really tough time getting rid of the smell. Don’t do it.

For casual marijuana consumers — those who spend some times or weeks without using their bongs — it’s important to empty out your device after each use and to clean it with boiled water. If you know you won’t be using it anytime soon, let it dry completely before putting it away in a safe place that is warm and that will limit the chances of developing mildew.

When it comes to people who use their bongs every day, Westword recommends changing the water every 24 hours, unless you’re burning more than a quarter-ounce every day.

It’s also important to clean your bong at least every two weeks, utilizing alcohol and salt in order to prevent resin buildup get rid of other gunk that won’t melt away with hot water and soap.

If you’re bad at keeping track of your bong use and the state of your water, it’s pretty easy to know when you should give it a quick rinse. Avoid water that’s dark, that has resin, that’s moldy or that smells bad. If any of the above are occurring, you’ll most likely have a gross hit.

Study Finds Psychedelics Help You Become Emotionally Adaptable

Brendan Bures

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February 1, 2020

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Study Finds Psychedelics Help You Become Emotionally Adaptable

New research indicates that psychedelics allow users to increase psychological flexibility, leading to drops in symptoms of anxiety and depression.

Recent studies have found that psychedelics could provide answers for multiple psychiatric disorders, with significant results in combatting treatment-resistant anxiety and depression . A systematic review of previous studies showed that administering psychedelics significantly reduced symptoms of anxiety and depression in all cases they analyzed.

For a long time, scientists didn’t totally understand how psychedelics caused these changes in mental health. However, preliminary research published in the Journal of Contextual Behavioral Science may give clues as to how psychedelics reshape brain behavior. It has to do with something called “psychological flexibility,” which the researchers described “as an essential set of processes that help people manage stressors and engage in adaptive behaviors that promote values-driven action.”

According to the study, psychedelics increase psychological flexibility in individuals, explaining why psychedelics often allow for spiritual breakthroughs and renewed energy to life in users.

“Emerging evidence support the possibility that psychological flexibility is an important theory that could inform clinical practice with psychedelic assisted psychotherapy,” study author Alan K. Davis told PsyPost.

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

“We conducted this study to test the theory that psychedelics would increase a person’s psychological flexibility and that such changes would be associated with improvements in depression/anxiety.”

To test their theory, researchers created an online anonymous survey seeking those who had had a moderate to strong psychedelic experience. Of the 2,120 individuals who participated, 985 participants said their psychedelic experience — ranging from psilocybin mushrooms, LSD, or DMT — led to changes in their anxiety or depression.

Those that experienced meaningful psychological insight during psychedelic experiences, including the epiphany that current emotions were tied to previous life event, ultimately reported having increased psychological flexibility afterwards. That led to drops in users’ symptoms of depression and anxiety.

“Increases in psychological flexibility fully mediated the effect of mystical and insightful experiences on decreases in depression and anxiety following a psychedelic experience,” the study’s authors wrote. “This suggests that psychological flexibility may be an important mediator of the therapeutic effects of psychedelic drugs.”

Scientists stated their intention to further this research under laboratory settings to better understand their theory, as well as our knowledge of psychedelics.

5 Ways To Stay Well When Everyone Else Is Getting Sick

Kate-Madonna Hindes

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February 1, 2020

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5 Ways To Stay Well When Everyone Else Is Getting Sick

It’s cold and flu season, which means it’s never been more important to treat your body well and give it what it needs to fight off any virus that comes near it.

Flu season is upon us and this year the risk seems to be especially high. Whether kids are bringing germs home from school or the contagion of the communal fridge at work is putting a hamper on your weekends, know that the best ways to stay healthy are often the easiest.

Remember, viruses and bacteria thrive on dehydration and exhaustion so getting a good night’s sleep, eating well and drinking often is a MUST for this year’s flu and cold season. With coronavirus beginning to spread to new areas, here are five ways to boost your health on a minimal budget with maximum payout:

Hand washing

Your best defense against germs is hand-washing for at least 20 seconds. While hand sanitizers can be convenient, experts recommend what you’re using has at least 60% alcohol to be most effective at stopping spread disease. The Centers for Disease Control (CDC) states on their website, “Regular hand washing, particularly before and after certain activities, is one of the best ways to remove germs, avoid getting sick, and prevent the spread of germs to others.” While twenty seconds can seem like an eternity, taking the time to really lather and scrub can eliminate the germs on your hands and under your nails. Don’t forget to grab a towel or use an elbow to open the restroom door- germs love the handle!

Healthy foods

Eating well is one way to not only have a healthy body and mind but keep the common cold and flu at bay as well. By eating fruits and veggies, you’ll boost the immune system and give your body extra power to fight germs that come your way. Allina Health, a national health organization, recommends eating foods that are probiotic (think yogurts and unpasteurized sauerkraut,) along with keeping a healthy diet that includes fruits, veggies, and lean proteins.

Medical Cannabis Combats Anorexia's Obsessive Thoughts — Photo by Brodie Vissers via Burst

Stay hydrated

One of the most common complications of sickness is dehydration; not all beverages are created equal! Coffee and soda can weaken the body, while water and decaffeinated green tea can help the body retain (and regain) important fluids.

To stay well, Mayo Clinic recommends about 2.7 liters of fluids a day for women and 3.7 liters for men, which can seem like drinking an ocean. Mayo explains their logic by stating that foods rich in hydration (juicy fruit, for instance,) can count as liquid as well. While Mayo stated 8 glasses of water each day was a good start, they added the caveat, “for some people, fewer than eight glasses a day might be enough. But other people might need more.

Sleep

A lack of sleep can wreak havoc on your immune system. The National Sleep Foundation believes that sleep is one of the best defenses against the common cold or flu. They recently shared on their website, “Poll data shows that on average, newborns to l0-year-olds don’t even meet the low range of recommended hours of sleep each night, while two-thirds of older adults say they suffer from frequent sleep problems, including insomnia, which often prevent them from getting a good night’s sleep.”

Most experts suggest at least 7 hours for the average adult, offering advice to pay attention to your body and sleep more as necessary. While getting a truly good night’s sleep can be difficult, it’s one of our best defenses against sickness.

Be cautious of germs

How often do you wipe the items you use every day? From phones to doorknobs, germs can live on surfaces sometimes for days. In a pinch and looking for items that are anti-bacterial to clean with? Vodka, white vinegar, lemon, and hydrogen peroxide all have anti-bacterial elements. A simple cleaner of white vinegar and distilled water works well for most surfaces and leaves no smell. Add a few drops of essential oil or leave as-is when cleaning light switches, doorknobs, phones and toilet handles.

MedMen Is On A Downward Trajectory Cue SouthPark

Brendan Bures

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January 31, 2020

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MedMen Is On A Downward Trajectory Cue SouthPark

MedMen’s bid to become the country’s biggest marijuana brand has backfired, and its executives are paying the price.

It is one of the most recognizable and formidable brands in the cannabis industry. This week, they announced their CEO, Adam Bierman, was stepping down. The move comes amidst significant restructuring at the company, which has aggressively cut costs in recent months after failing to meet projections. It seems Medmen is on a downward trajectory cue SouthPark.

Last week, Bierman told Business Insider investors were correct in punishing MedMen’s stock, though he expected the company to rebound. Now, he will not be there to see through whatever evolution the company takes. Bierman co-founded the California-based dispensary chain in 2010, but will significantly lose his influence as a shareholder. Bierman has agreed to surrender his Class A Super Voting shares, the company announced in a release, which granted him more power than other shareholders.

“I continue to believe that MedMen is positioned to thrive,” Bierman said in a statement. “It’s time for our next iteration of leadership to capitalize on the opportunity we have created.”

MedMen began with a goal to re-orient the identity of cannabis consumers, by branding its stores with a sleek aesthetic common in Silicon Valley. MedMen’s vision was clear from the onset — to become “the Apple” of marijuana dispensaries. The company’s marketing efforts were successful initially and helped introduce and educate previously wary customers, including older crowds, into the cannabis revolution.

However, the company made aggressive moves in recent years, under Bierman’s direction, that didn’t pan out as MedMen hoped. A glossy public service announcement, directed by Hollywood director Spike Jonze and starring Jesse Williams, was called “The New Normal,” and intended to position the business as a political thought leader in the cannabis industry. But the commercials, as well as MedMen writ large, were frequently ridiculed by the popular TV show South Park last year.

In addition, MedMen sought to become the largest marijuana company in the country when it attempted a huge blockbuster merger with cannabis producer Pharmacann. That deal was mutually scrapped by the two companies last October, signaling the current upheaval playing out across the cannabis industry.

MedMen also engaged in serious lobbying pursuits, with the intention to push marijuana legislation in a direction that would favor the company. That included a recommendation to New York state not to allow homegrowing of cannabis, as the company said it was too dangerous in residents’ hands. New York ultimately did not legalize marijuana last year.

It tried a similar tactic with Make It Legal Florida, a political action committee that would introduce adult-use marijuana on the Sunshine State’s 2020 ballot. Make It Legal Florida would exclude residents growing their own marijuana as well, necessitating Floridians to buy their cannabis from dispensaries like MedMen. The bid however failed, and Florida will not vote on legalizing recreational marijuana this year.

According to the company’s release, MedMen will form a special committee after next month’s shareholder meeting. This committee, filled with independent directors, will determine the compensation Bierman will receive for stepping down and his transfer of shares.

The First Historically Black College Is Launching A CBD Line

Debra Borchardt

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January 31, 2020

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ALAFIA, which means “inner peace”, is currently selling two formulated pure CBD tinctures: Isolated CBD with 500mg for $40 and 1000mg at $80.

The first historically black college is launching a CBD line. The Southern University Agricultural Research and Extension Center in Baton Rouge, Louisiana, along with its partner Ilera Holistic Healthcare is launching a CBD product line called ALAFIA. Southern is the first HBCU (Historically Black College University) to start its own CBD product line that is available for sale at dispensaries and other retail locations. ALAFIA means “Inner Peace” in the Nigerian language Yoruba.

“Southern has been a leader in agriculture and the sciences for 140 year while staying true to its mission of access,” said Ray Belton, the president of the Southern University System. “This CBD venture with Ilera encompasses all of that.”

ALAFIA is currently selling two formulated PURE CBD tinctures: Isolated CBD with 500mg for $40 and 1000mg at $80. The Full Spectrum CBD is selling at 500mg for $40 and 1000mg at $80. The first sale took place at the H&W Drug Store Dispensary in New Orleans. More products will be released soon. All of the products are legal, laboratory tested, pesticide-free and scientifically formulated.

Ilera Holistic Healthcare CEO Dr. Chanda Macias said, “Our goals with this line is to support all communities by creating access to wellness products at affordable price points. No one should endure the stress of trying to balance a healthy lifestyle at high costs, that within itself is unhealthy. Our products offer an alternative supplement option at a reasonable price.”

Southern College was chartered in 1880 and was originally located in New Orleans. It opened in 1881 with 12 students. As the school grew, it moved to an area north of Baton Rouge in 1914. In 1947, Southern University Law School was created when LSU’s Law School refused to admit African Americans. The school had almost 7,000 students in 2019. 65% of the student body is female.

“The launch of ALAFIA has been our vision for some time and today we are officially on the market for sale,” said Osagie Imasogie, Chairman of Ilera. “Our team of experts created a superior hemp-derived product with patients in mind. We are proud of this partnership with Southern and pleased to know our product will be available to the people of Louisiana and beyond.”

Congratulations to the black college is launching a CBD line!

This article originally appeared on Green Market Report.

Why Can’t Football Players Use CBD

Brendan Bures

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January 31, 2020

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The NFL remains one of the few sports leagues that prohibits players from even using CBD creams in recovery and treatment.

In the past year or so, many professional sports organization have slowly embraced cannabidiol (CBD) as an alternative recovery option. UFC fighters, Olympians, professional golfers, runners, tennis players, and the amateur athlete alike can use CBD to train and heal. Last month, Major League Baseball announced it removed CBD and THC from its Drugs of Abuse list, partly due to growing concern around addiction to opioid painkillers.

The National Football League, however, remains against its players using CBD to recover from injury. Football is among the most physically devastating sports, with many athletes incurring long-term damage to their bodies and brains following their playing days. Earlier this month, the NFL announced that it maintains the stance enough information and research is not available to support claims CBD can treat acute and chronic pain.

“CBD is a promising compound, but the extent of its use in the United States outpaces the level of evidence,” wrote a pain management committee formed between the NFL and its players union.

Many former football players have advocated the league on allowing current athletes to use cannabis and CBD. Notable figures like Ricky Williams, Jake Plummer, and Chris Long have come out in favor of allowing marijuana in the league. Former New England Patriots tight end Rob Gronkowski recently became a leader in using CBD in recover for athletes.

“I’m advocating for CBD to be acceptable for all players for recovery,” he said. “You can just call me Mr. Recovery. You know you like that name. Mr. Recovery, baby.”

While opening all forms of cannabis to players is one thing, what remains confusing is why the NFL remains against CBD. This is especially perplexing when it comes to CBD topicals, says Eric Smart, a triathlete and CEO of Myaderm, which manufactures CBD cream products. Though the Food and Drug Administration hasn’t provided guidelines on CBD in food products, it has permitted the use of CBD topicals. In a statement, the FDA wrote, that “certain cosmetic ingredients are prohibited or restricted by regulation, but currently that is not the case for any cannabis or cannabis-derived ingredients.”

touchdown cannabis consumers prefer the nfl over all other pro sports — Photo by Doug Pensinger/Staff/Getty Images

Because CBD topicals are an emerging market, Smart admits, it presents unique challenge. “Most CBD products are illegal and so people are left vulnerable to bogus product claims and deceptive marketing gimmicks,” he told The Fresh Toast. But players could follow simple rules to ensure they aren’t being fooled when using CBD.

“For professional athletes who are allowed to use CBD and those leading an active lifestyle, they should ensure that it is topical only, made in an FDA registered facility, has a high concentration of CBD vs. other ingredients like menthol and sold by a national, reputable retailer,” Smart said.

After the Super Bowl, players from the San Francisco 49ers and Kansas City Chiefs can being using cannabis and CBD products without penalty until April 20. Ironically, 4/20 is when the NFL starts testing players again for cannabis and other drugs. The NFL will continue to study marijuana and reports indicate the league is prepared to change its substance abuse policy in the upcoming CBA negotiations. But for now, even rubbing CBD cream on sore muscles remains prohibited for NFL athletes.

“If the federal government says CBD is good enough for consumers, then it should be acceptable for all athletes, especially NFL players,” Smart said. “As the League continues to study this issue, I hope that common sense, and not ignorance, wins the day.”

Brain Imaging Study Evaluates CBD Antipsychotic Effects

Maria Loreto

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January 31, 2020

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CBD holds promise for treating psychosis in patients who suffer from schizophrenia.

Some positive news, a new brain imaging study evaluates CBD Antipsychotic effects. Aside from CBD’s positive effects on anxiety, pain and skin care, researchers have found the compound can treat more complex conditions, such as epilepsy in children and psychosis in patients who suffer from schizophrenia. This latter claim was first brought to the public’s attention when a study showed that CBD was beneficial for patients suffering from schizophrenia-related psychosis.

A study conducted by researchers from King’s College in London took things further by trying to understand why CBD was providing these anti-psychotic effects. This new research examined 13 patients with psychosis and studied their brains through fMRIs.

The study, published in the Psychological Medicine journal, performed two fMRIs on each patient, one under the influence of a placebo and another after taking a dose of CBD. There was also a control group made up of healthy subjects who weren’t taking any drugs.

your brain on weed concussions and cannabis — Photo by Roberto Valdivia via Unsplash, Illustration via rawpixel.com

The study found important differences between the fMRIs of subjects. They showed that CBD was able to reduce the dysfunctional connectivity present in subjects experiencing psychosis, making their brain scans look more similar to the ones taken from the control group.

Sagnik Bhattacharyya, senior author of the study, explained that the test results shed a light on how CBD impacts the brains of people going through one of these episodes. “It gives confidence in the antipsychotic potential of CBD by demonstrating that it targets the function of brain regions implicated in psychosis and indicating that even a single dose may ameliorate some of the brain function alterations that may underlie psychosis,” said Bhattacharyya.

While the study is small and the results aren’t definitive, they do suggest that CBD can provide some relief for patients suffering from this condition, leveling some of the abnormal activity that psychosis produces in the prefrontal and mediotemporal regions of the brain.

This study marks the first time that patients with psychosis are given CBD and analyzed in order to see the effects of the drug in real time. While the topic of CBD and psychosis has plenty of limitations and a long road, studies like this one represent an important start, continuing to legitimize CBD as medicine.

Pharmacy Students Not Trained To Prescribe Medical Marijuana

Brendan Bures

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January 31, 2020

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Pharmacy Students Not Trained To Prescribe Medical Marijuana

A new survey finds most pharmacy students want to be involved in prescribing marijuana, but only 15% received passing scores testing their cannabis knowledge.

Where pharmacy students attend university has almost no impact on the level of education they receive on marijuana, a new survey finds. Students in both states with legal marijuana and where cannabis remains illegal scored similar on quizzes questioning their knowledge on the indications and adverse effects of medical cannabis. This displays pharmacy students are not trained to prescribe medical marijuana.

Published in the current edition of Journal of the American Pharmacists Association, the survey also highlights a growing demand for today’s pharmacy students to receive better education on marijuana. Not only do around 90% of these students believe medical marijuana should be legalized, more than 70% stated they as pharmacists should be responsible in the dispensing process of medical cannabis. But that doesn’t mean they’re ready to do so, according to the study’s authors.

“Although students feel pharmacists should be involved in the dispensing process of [medical cannabis], this study continues to highlight that pharmacy students are not prepared to recommend, counsel, and interpret drug interactions related to [medical cannabis],” the study found.

the battle between gun ownership and medical marijuana in conservative states — Photo by LPETTET/Getty Images

Regardless of their state marijuana laws, less than half of the students surveyed felt knowledgeable about the efficacy of medical cannabis and capable of providing drug information to patients. In addition, the median score for tests about the indications and adverse effects of medical cannabis fell below 60%, meaning the majority of students received a failing score. Between 15-16% of students scored higher than 70% on a quiz testing indications, or medical conditions that warrant a marijuana prescription.

“Nearly all students in this survey indicated that they felt instruction on [medical cannabis] was imperative in the pharmacy school curriculum,” the study’s authors wrote. “However, only 15% indicated they received some formalized instruction on [medical cannabis.]”

These findings follow those of previous studies. A 2018 study from the American Journal of Pharmaceutical Education found that more than 80% of students believed medical marijuana should be taught at their schools within the next five years. Another survey of University of Kansas students from 2015 reported that 90% of students thought medical marijuana should be incorporated into their education.

“With increasing state legalizations, pharmacy schools need to address this knowledge gap to ensure optimal patient care,” the study’s authors concluded.

Should I Invest In My Friend’s Marijuana Business?

Terry Hacienda

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January 30, 2020

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Should I Invest In My Friend’s Marijuana Business?

Stop! Before you decide to give any money to your buddy’s marijuana start-up, here are 4 things to consider.

Cannabis and CBD are the hot industries in the U.S. and Canada, both expecting to be a $25 billion market by 2025. There are more than 30,000 marijuana businesses employing over 225,000 people with the average store grossing in excess of $2.5 million. With all the buzz, it seems like almost every friendly gathering now features at least one canna-business pitch from a friend: “For only $5,000, you can get in on the ground level in this amazing opportunity!”

Before you jump in, here are the 4 things to consider before investing.

Only invest money you can afford to lose

Investing does not mean giving away your money, rather putting it to work to potentially earn more money in the future. This distinction is important and implies that you have to be careful about jumping into the industry. Jan Hendrickson, a former U.S. Bank executive, says, “All start-ups are risky. Only put in what you can afford to lose and understand your return will take up to twice as long as you think, and will likely be smaller. Plan for that.”

Remember, before they hit it big, Walt Disney, France Ford Coppola, and George Foreman all went bankrupt in early business.

Alternatively, if all you want to be is a good friend, cozy up to the idea of not getting your green back, but do make sure you get something else in return, like free products or a lifetime discount at the business in question.

heres what canopy growth investors — Photo by LPETTET/Getty Images

Know the market and the business plan

While an idea can often sound innovative, the path to execution is what’s critical for success.

Michael Leen, who has founded and sold a clothing company and a sales company shared “Before you invest, do you know the market, and do you understand the business plan?” If you don’t understand the core of the business plan and the expectations, you could run into a rude awaking. Is it trying to solve a problem or is responding to a consumer need? Do your own independent research on similar businesses, the competition and the market.

A well-developed written business plan should include a rough roadmap of what future milestones to expect as a function of your funding. These expectations will increase accountability if the business deviates from its plans.

Add in cannabis’s federal illegality and complicated state-by-state legal landscape, and you have compounded risk. Cannabis business has higher costs and no tax exemption. Is the funding of the plan realistic? A good rule of thumb is that it will take twice as much money and twice as long to recoup.

You should consider if your friend’s cannabis startup is able to uniquely address an existing problem and if not, it might not be the a sound investment.

5 cannabis investor conferences worth attending in 2019 — Photo by Aleksandr_Kravtsov/Getty Images

Know the management team

Diane Czarkowski, a founding partner at Canna Advisors, shared, “Has your friend ever started a business before? This is not an industry for first-time business owners. It is challenging to be a start-up and being a start-up in a start-up industry is even more complicated.”

“And that’s the thing,” adds Javier Hasse, managing director at Benzinga Cannabis. “Starting a successful business is easier said than done. Even the best though-out business plan is virtually worthless if not accompanied by strong execution. Entrepreneurs need to be equally able to stick to their plans when needed, and to change their plans when warranted,” Hasse, author of the best-selling book “Start Your Own Cannabis Business” explains.

How organized are the founders, do they have the skills and persistence to complete the project, how well (and often) do you communicate with your friend, and can they share both good and bad news — these are all things to consider before you write the check.

When and how do you receive a payoff?

“You should have a clear understanding of how your investment is returned to you. Is it from profits or do they plan to sell and you get portion of the sale”? Says Noa Kahner, founder of Kahner Global, who runs a successful series of investor conferences in the U.S., Canada and the United Kingdom.”

It is easy to get caught up in the excitement of building a company, but make clear how your investment is going to grow and how to cash out. Since most start-ups fail, if the new business you decide to invest in succeeds, make sure you know how you’ll get your money.

The Fresh ToastThe most trusted name in cannabis

Legal Marijuana Probably Not As Profitable As Sports Betting

States where sports gaming is legal are already generating millions of dollars in tax revenue. And they are doing it without much risk.

How Often Should You Change Your Bong Water?

A lot of people let their bong water stew without thinking about all the germs that are growing there.

Study Finds Psychedelics Help You Become Emotionally Adaptable

New research indicates that psychedelics allow users to increase psychological flexibility, leading to drops in symptoms of anxiety and depression.

5 Ways To Stay Well When Everyone Else Is Getting Sick

It’s cold and flu season, which means it’s never been more important to treat your body well and give it what it needs to fight off any virus that comes near it.

Hand washing

Healthy foods

Stay hydrated

Sleep

Be cautious of germs

MedMen Is On A Downward Trajectory Cue SouthPark

MedMen’s bid to become the country’s biggest marijuana brand has backfired, and its executives are paying the price.

The First Historically Black College Is Launching A CBD Line

ALAFIA, which means “inner peace”, is currently selling two formulated pure CBD tinctures: Isolated CBD with 500mg for $40 and 1000mg at $80.

Why Can’t Football Players Use CBD

The NFL remains one of the few sports leagues that prohibits players from even using CBD creams in recovery and treatment.

Brain Imaging Study Evaluates CBD Antipsychotic Effects

CBD holds promise for treating psychosis in patients who suffer from schizophrenia.

Pharmacy Students Not Trained To Prescribe Medical Marijuana

A new survey finds most pharmacy students want to be involved in prescribing marijuana, but only 15% received passing scores testing their cannabis knowledge.

Should I Invest In My Friend’s Marijuana Business?

Stop! Before you decide to give any money to your buddy’s marijuana start-up, here are 4 things to consider.

Only invest money you can afford to lose

Know the market and the business plan

Know the management team

When and how do you receive a payoff?

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