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Whoopi Golderbg’s Cannabis Business Tanks

by Travis C | Feb 6, 2020 | 420, 420 News, Blog, Business, Culture

Whoopi & Maya, the medical cannabis company co-founded by Whoopi Goldberg, is closing up shop, according to a statement posted on its website.

In an interview with CNN Business, Rick Cusick, a Whoopi & Maya board member who helped found the company with Goldberg and Om Edibles founder Maya Elisabeth, said he received word Friday from Goldberg that she planned to step away from the brand.

“It became clear to everybody that Whoopi and Maya wanted a divorce,” Cusick said, noting he was speaking for himself and not the company or its board. “How do you do that? Because both of them were very integral to what we were doing.”

Whoopi Goldberg’s cannabis blunder

Four years ago this week, Whoopi & Maya launched with a specific focus on providing medical cannabis for people who suffered from menstrual pain. When they started the company, Goldberg and Elisabeth saw a large market opportunity in an area that not many people wanted to address, Goldberg told The Cannabist, the Denver Post’s cannabis-centric website, in 2016.

“They wanted to include menstrual cramps in the list of things you can prescribe medical marijuana for,” Goldberg said in the interview, “but the governor said that will never happen in New Jersey because our doctors only prescribe marijuana for ‘real’ pain. The fact that people think of (women’s health) as a niche market — that he didn’t think of menstrual cramps as ‘real’ pain — tells me that there’s a lot of education to do on this subject.”

The reasons for the closure of Whoopi & Maya went beyond personal fissures, Cusick said.

No special treatment for celebrities

When the company launched, California was still a solely medical cannabis market. Come November 2016, the state passed Proposition 64, which legalized adult-use sales. As the state folded in the medical cannabis regulations into the new program, it was difficult for operators like Whoopi & Maya to adapt, he said.

“Suddenly we’re jumping through hoops like every other company in California,” he said. “We were well on the way to [being cash-flow positive] but then we had to jump through hoops to change our packaging … and then change our packaging again.” Working in an emerging industry proved challenging, he said.

Read the original story on CNN.

Michigan Cannabis Off to a Green Start

by Travis C | Dec 12, 2019 | 420, 420 News, Blog, Business, Culture

The first few recreational dispensaries have begun legal sales in Michigan, and the numbers are starting to roll in.

Michigan legalized cannabis in 2018, but took an entire year to plan and establish a legal marketplace. On December 1, 2019 the first recreational dispensaries were allowed to begin sales. Suffice to say the people of Michigan were ready.

While Michigan’s first day of legal sales was pretty different from other legal states there’s no way to deny that it was a success.

First Day of Legal Michigan Cannabis

Michigan cannabis consumers were definitely a little worried when December 1st rolled around, mainly because of the lack of locations to visit. The entire state had only five dispensaries for the entire population, three of which were in Ann Arbor.

But that didn’t stop the people of Michigan from lining up around the block and buying every last gram of cannabis that was available. Over 2,200 people spent over $220,000 at the three Ann Arbor stores alone, each averaging over $100. For only three stores in one day, that’s pretty good.

With over 200 people still waiting out in the cold until the stores closed at 9 PM, there were high expectations the following days as well. It’s safe to say those expectations were met.

Michigan Cannabis Makes Big Money

In the first eight days of recreational cannabis sales in Michigan, the state pulled in over $1.6 million, with over $162,000 being collected from the 10% sales excise tax and another $106,000 from the 6% state sales tax. The numbers are pretty big, especially for only five stores across the whole state, but keep in mind that’s over the first week of sales.

To put that in perspective, when Colorado legalized began recreational cannabis sales in 2014 the state sold over $1 million in cannabis just on the first day. However keep in mind that Colorado also had 24 dispensaries open on the first day of sales compared to Michigan’s 5. And taking tax dollars into account, Michigan is on a good track right now.

The state is projected to pull in close to $300 million in total tax dollars by 2023, with most of the money going to roads, schools and the state’s general fund.

Are More Dispensaries Coming?

The short answer is yes. But like any legal cannabis market, it won’t be without its roadblocks. The state began accepting applications for recreational marijuana business licenses on November 1 and has since awarded 21 licenses and pre-qualified another 73 applications.

But more than 1,400 of the state’s 1,771 communities have said they don’t want marijuana businesses in their towns, so finding a city that’s amenable to legal weed has been a challenge for businesses. With just a little more than 300 towns so far accepting legal cannabis businesses, it might be some time before there is a dispensary in close driving range for every Michigan resident.

Nevertheless by the end of 2020 there should be close to 100 dispensaries in Michigan. While still not a great amount compared to other states, it has become a common tactic among new legal cannabis states to start out slow and avoid a market crash from too many dispensaries and cannabis supply. It may mean overpriced cannabis and cannabis products for now, but it also means more quality products and prices that will drop in the future.

Hemp Industry Win: Farmers Might Finally Get Bank Access

by Travis C | Dec 5, 2019 | 420, 420 News, Blog, Business, Cannabis Law, Hemp, Hemp Law

Banking has been an issue for cannabis and hemp businesses alike due to federal banking restrictions for years. But for hemp, that all could be changing very soon.

It’s safe to say that the hemp industry and cannabis industry don’t have the best relationships with banks. Because most banks are federal institutions, they have to follow federal law. This is why despite cannabis being legal in multiple state, businesses have a lot of difficulty finding a bank that will work with them.

While this will remain the case for the cannabis industry unless the SAFE Banking Act passes, the legal hemp industry has achieved another milestone in regards to banking for legal hemp businesses.

Hemp Industry Banking

Currently, the banks that actually work with legal hemp businesses could be counted on one hand. Due to strict requirements that come with loads of paperwork, most banks just avoid hemp businesses all together. But that is all about to change.

Federal and state bank regulators announced Tuesday that they were scrapping a burdensome requirement that banks said kept them away from the hemp business. With the requirement scrapped, banks no longer have to treat their hemp customers as suspicious and file reams of paperwork to anti-money-laundering authorities for each interaction.

In other words, with less paper work and red tape surrounding the legal hemp industry, banks are about to feel a lot safer about working with hemp businesses. And it’s not like the demand isn’t there either.

In November of 2019, the American Banking Association surveyed 1,800 agriculture-focused banks in the country and found that almost half had gotten questions from their farmer-customers about whether they would still do business with them if they started growing hemp.

Hopping on a moving train

Banks have been sitting on the sidelines of the legal hemp industry and legal cannabis industry for a while now, and the industry has progressed just fine without the financial institutions up to this point. Even though banks have been slow to embrace the cannabis industry, investors have been geared up to profit from it.

Analysts tracking publicly traded companies have added pot producers to their portfolios, in order to help investors decide where best to maximize their exposure to the industry. Ultra-rich venture capitalists have begun to treat pot businesses like tech start-ups. While some stocks have had their hiccups, the industry is looking strong and projected to continue growing through 2020 and beyond.

While banks have been slow to get onboard the legal hemp industry train, hemp businesses will likely be happy to work with them now that the requirements have been lessened. Even though hemp flower producers may still find it difficult having a product so similar to federally illegal cannabis, other businesses in hemp clothing and manufacturing should start finding it much easier to find a bank that will work with them.

Is cannabis banking next?

The hemp industry is making strides on strides in terms of legalization and banking access, whereas legal cannabis industries have been inching along slowly year over year. Progress has been exponential since Colorado first legalized in 2012, with multiple states following suit in the years after. But with federal law remaining the same regarding cannabis, progress has been slow with legal cannabis businesses still lacking banking access, despite state law.

The SAFE Banking Act is currently the best hope legal cannabis businesses have to achieve banking access in the near future. While the bill has already passed through the House of Representatives with large support from the banking industry. However not many are hopeful of the bill surviving the republican controlled senate headed by Mitch McConnell.

The irony of the whole situation is that McConnell is largely responsible for the passing of the 2018 Farm Bill the federally legalized hemp across the country, yet he will also be the reason that legal cannabis businesses may not get the access to banks they desperately need. Only time will tell, and for, all the wires are silent.

First Year of Industrial Hemp: Is it Booming or Bust?

by Travis C | Nov 27, 2019 | 420, 420 News, Blog, Business, Hemp

Millions of pounds harvested. Tons of CBD extracted. But the market might not be ready for so much industrial hemp.

There was no shortage of farmers ready to make the switch to industrial hemp after the Farm Bill passed at the end of 2018. Many were looking for a new cash crop that they could get in on to make some real money.

The beginning of 2019 and outdoor grow season was an exciting time for just about everybody involved. More states passed legislation over time establishing their own ground rules for industrial hemp, and farmers licensed up, cleared out their land and made the transition.

The Industrial Hemp Boom

The mass migration of farmers and traditional cannabis cultivators to industrial hemp led to a massive increase in production. Everything from hemp seeds and hemp flower to CBD extracts and the plant’s fibers were all the sudden in extremely high demand. So much so that just about every dispensary, smoke shop and even gas stations started selling CBD products on their shelves.

Sales exploded with more and more articles vouching for the medicinal benefits of CBD and the potential financial gains the industrial hemp industry could provide the country. On top of the media exposure, plenty of celebrities hopped on the CBD band wagon, with actors and athletes alike sponsoring and being sponsored by CBD companies, and some even creating their own.

CBD is the first real aspect of cannabis to break into the mainstream, and even be celebrated on a massive scale. Recreational cannabis pales in comparison to the international attention CBD has received just in the last 12 months. But with any new industry that takes off sprinting from the gate, there are going to be some trip-ups.

The Industrial Hemp Bust

While industrial hemp production was regulated on the state level, there is very little regulation in the way of CBD production, and barriers to entry were (and still are) extremely low. The lack of regulation allowed a lot of untrustworthy and potentially dangerous products out into the market. While the producers of these products made a pretty penny, the consumers soon started to learn of the risks of bad CBD products.

A lot of shady CBD manufacturers got in, sold their bad product made from poorly grown “biomass” and got out with their money. There was an industrial hemp seed deal in which the buyer was promised feminized seeds but received more than half male seeds, resulting in a multi-million dollar law suit.

As the hemp harvest season came to a close, a lot of farmers were hit with a massive reality check; too many people are growing hemp. Farmers brought their hemp to auction, some hauling thousands of pounds hundreds of miles in the hopes of getting a big chunk of change in return. Almost every single farmer at the auction left without a sale.

The overflow of product, both in biomass and CBD extract has led to a crash in the price as supply for outweighs demand. While the consumer may benefit from lower prices, many farmers who were hoping the industrial hemp would be the answer to their financial problems are starting to second guess their decision.

What Does 2020 Hold for Hemp?

The industrial hemp industry is due to have some fat trimmed. A lot of farmers are going to ditch hemp after an unsuccessful harvest and go back to their traditional row crops. As consumers learn about unreliable CBD products, the shady companies will drop off, and very few might step up and raise their standards.

Farmers with the right connections that were able to secure deals ahead of harvest made a lot of money this year, and it’s only going to increase in 2020. Hemp genetics and seed breeding is going to become more of a desired job title, and more cannabis breeders will begin adding hemp to their repertoire.

Overall, while many did not have a successful year with legal hemp, just as many did. Industrial hemp will keep expanding into different forays of the plant’s abilities, like using its fibers to create concrete, clothing, paper and more. While some states have made a push against it, smokable hemp flower is also getting bigger as people look for a cannabis alternative that still provides medicinal benefits without the THC high.

Frankly, the possibilities of hemp, just like cannabis, are nearly endless. We can only look forward in excitement and enjoy the ride!

Lowell Farms: A Cannabis Cafe Review

by Travis C | Nov 19, 2019 | 420, 420 Culture & Travel, Blog, Business, Culture

The world’s first legal cannabis cafe is now open in the United States. Does it meet the hype?

Cannabis culture has grown exponentially since cannabis was first legalized recreationally in Colorado in 2012. With more states starting their own legal cannabis industries than ever before, the stigma surrounding cannabis is finally being broken down piece by piece.

As cannabis becomes more culturally accepted into the mainstream, so grows the cannabis consumer base, looking for a place to enjoy their cannabis. Unfortunately, a lot of states have laws on the books preventing public consumption, which means that you can only consume cannabis on private property. For a lot of people that rent, it just isn’t possible.

While some attempts at cannabis consumption businesses have popped up, they are very limited in their permissions, with all of them only allowing vaping, edibles or dabbing, with no smoking of flower allowed. That is, until now.

Lowell Farms: a Cannabis Cafe

Lowell Farms is a well known name in the California cannabis industry, with their pre-roll joint packs being found on just about every dispensary shelf in the state. But Lowell is more than that now. They are also the first company to open a legal cannabis consumption cafe in the United States.

So how does the world’s first cannabis cafe operate? Well it’s not like any dispensary or cafe you’ve ever been to, that’s for sure.

The best way to describe Lowell Farms cannabis cafe is a half restaurant, half dispensary hybrid. You can get your food and your cannabis from the same place, but not from the same people. If that sounds confusing, let me dive into the full experience for you.

The Lowell Farms Experience

It’s an incredibly simple concept, that works alright in practice. When you walk into Lowell Farms Cannabis Cafe, you wouldn’t be wrong if you mistook it for your average restaurant. It has an indoor and outdoor seating area, a bar in the middle of the dining room, and hustling and bustling waiters and waitresses.

After being seated, you’re given not one, but two menus. The first is your average food and drink menu with soft drinks, tea, coffee, small plates and lunch entrees. The second menu is the cannabis menu. This menu has your pre-rolls, joint packs, concentrates, and flower to pick from.

When your first server comes to the table, you can order tea, coffee, other drinks and food off of the first menu, just like your average dining experience. But then your second server comes, who would be described better as a walking dispensary.

The cannabis server came up and took our order just like the food server did, but because the cafe is half restaurant and half dispensary, the orders are taken and paid for (and tipped) separately, which can be a hassle especially if you decide you want seconds. The selection of cannabis products is varied, and there are a lot of options to pick from, including outdoor, greenhouse and indoor cannabis flower, hash-packed pre-rolls and more.

The food came out less than 5 minutes after we ordered it, which is great. Unfortunately, we had just rolled up our first joint, and had to let the food sit while we smoked. If there was a little more delay between servers with the cannabis coming out first followed by the food, the experience definitely wouldn’t feel so rushed.

The Products

California cannabis is world renowned, and only having tried it one other time back in 2013 I wanted to take advantage. While Lowell Farms actually allows customers to bring their own cannabis for $20, buying your cannabis there gets you a rolling tray, grinder and papers that you would otherwise need to bring yourself, so we went with buying ours there. Not just to save us the trouble of bringing our own, but to really see what kind of products they are selling.

The pricing of each product seemed to vary on whether it was indoor or outdoor, in addition to brand name. Upon asking our budtender/server how the prices were structured, we were told that the prices are set according to what the cafe pays their vendors to get it all. If that’s the case, Lowell Farms must be paying a pretty penny for their product.

We will dive into the costs of the Lowell Farms Cannabis Cafe experience soon, but for now let’s dive into the actual product. We decided to keep it simple on our visit, and only bought an eighth of flower. Out of the 20-30 flower options on the menu, only the first two were not indoor-grown, and they were also the cheapest. Other than that, the prices slowly rose as you went down the menu, with the “exotic” strains being the most expensive at the bottom. We went with a middle of the road Zkittles eighth, grown indoors.

As much as I hate to say it for the price we paid, I have seen Colorado outdoor that looked better than this cannabis. That’s not to say it didn’t look good, smoke well, taste good and get the job done, but I just wasn’t impressed with the look. Machine trimmed, compact nugs with not much trichome shine on the outside, and a sweet and mild fruit smell when you cracked the bud open. Throughout our time there we rolled up four joints, and had about a gram and half left by the time we decided to head out.

That’s really it. You get some food, you get some cannabis, and you enjoy. We weren’t rushed out the door with our leftover cannabis once we were done eating, but we did feel a little odd sticking around 30 minutes after we finished our meal to keep smoking, especially knowing that servers are trying to hustle as many tables as possible. But like I said, had we had more time before the food arrived to enjoy our cannabis, it probably wouldn’t have been an issue.

Now let’s get down to the biggest pitfall of Lowell Farms Cannabis Cafe – the price.

The Price of a Good Time

Can you really put a price on a good time? At Lowell Farms Cannabis Cafe, the answer is yes and then some.

I get it. This is the first cannabis cafe in the history of the United States, there’s a lot of demand, and it’s in Los Angeles which is an expensive city. It should be no surprise that a cafe that advertises itself as a luxury cannabis lifestyle experience charges a premium for it. But let’s put it all in perspective.

In our time at Lowell Farms Cannabis Cafe, we purchased one eighth of flower and one pre-roll with some hash in it. Our total was over $100. Throw in the $24 for the meal we split, and you’re looking at an expensive experience just to smoke in peace and have a snack. When an eighth of cannabis costs $55 without any tax, you expect a certain quality, and frankly the flower we got from Lowell Farms did not meet that standard for me.

Is Lowell Farms Cannabis Cafe Worth It?

As a one-time experience to check out the only cannabis cafe in the country? Yes, it is worth it.

Being in a public space with a hundred other people, all just relaxing, smoking and enjoying good food is a real sight to see. It makes me so excited for the future cannabis cafes that are bound to start popping up across the country, and competitive market is going to drive down the prices for these places over time.

But for Lowell Farms Cannabis Cafe, there are still a lot of adjustments to be made before it’s a real accessible, enjoyable experience for your average cannabis consumer. The cannabis is insanely over-priced, and it all comes pre-packed. Our flower had been sitting in its jar since July 2019, and we went to Lowells in Mid-November.

In a realistic Lowell Farms Cannabis Cafe experience, the cheapest flower you’ll find will still be over $60 with tax (and that’s the outdoor), the concentrates will be over $70 (without tax) for half a gram, and the pre-rolls come small. But for a once in a lifetime experience that you can’t find anywhere else in the country, Lowell Farms Cannabis Cafe is worth a visit.

Illinois Cannabis is Legal? Why You Probably didn’t Hear about It

by Travis C | Nov 12, 2019 | 420, 420 News, Blog, Business, Cannabis Law, Culture

A major issue in the cannabis legalization movement is that every state can do it differently. Illinois cannabis legalization definitely did it different, and not for the better.

A lot of states that legalize cannabis add something new to their industry. Whether that’s limiting licensing because Oregon didn’t, or lowering regulations like Oklahoma did because California’s are so strict. Illinois is no different.

In June, Illinois became the first state in history to legalize the recreational possession and sale of cannabis entirely through the legislative process, whereas every other state has legalized through state-wide ballots. They also took a huge step in expunging the criminal records of nearly 800,000 residents in the state who possessed or purchased up to 30 grams of cannabis and were prosecuted.

With the state set to begin adult recreational sales in January 2020, all seems well and good. That is until you look a little closer at the legislation.

The Illinois Cannabis Crunch

Some states choose to be very lax with their regulations, like Oklahoma or Oregon. Both states have booming cannabis economies with Oklahoma’s in particular taking off faster than any other medical industry in the country. But both states are also facing serious over-supply issues.

Oregon has already taken the brunt of the surge, with so much more cannabis in the state than its residents consume that they had to pass a law permitting cross-border sales of cannabis to try to get rid of the excess. Oklahoma is following a similar path, with over 4,000 licensed growers and only 1,400 dispensaries for a state that is highly interested in cannabis. On top of that, there is roughly one dispensary for every 70 Oklahomans, which is not ideal for continued business traffic.

To avoid making the same mistakes, Illinois put a cap on how many dispensaries are allowed to open in order avoid cities filling up with pot shops too quickly. However at the end of 2019, the state only has 113 permitted dispensaries for recreational sales. Remember how Oklahoma had a dispensary for every 70 people? Illinois hardly has one for every 100,000.

An Attempt to Keep Big Business Out

It’s fair to say that Illinois’ cannabis legalization intentions were pure enough. The purpose of the dispensary cap is to prevent chains from taking over. The legislation limits chains to no more than 10 locations in the state, and limits the entire state to only 500 dispensaries, total.

That may sound like a lot of dispensaries, but 500 dispensaries is just enough for every 200 people to have a shop to visit. Additionally, the state won’t be adding any new dispensary licenses until May 2020, leaving four months of extremely limited supply. Even then, the state is only issuing 75 more licenses, leaving less than 200 dispensaries by the end of May at the earliest.

Also being a more conservative state, it is expected that a good bit of Oklahoma jurisdictions will ban retail dispensaries altogether, and a lot of people are concerned that the efforts to keep big business out will result in even more solicitation of private market cannabis.

A Slow and Steady Approach

Recreational cannabis sales are set to begin in less than 2 months in Illinois. With a little more 100 dispensaries to serve the entire state on January 1, it’s going be very difficult to get everyone taken care of for some time. But the Illinois cannabis industry doesn’t appear to be in a rush.

To put it all in perspective, by the end of 2020 Illinois is only projected to have about one tenth of the amount of dispensaries as Oregon has, with the maximum allowance of the legislation only being equivalent to one quarter of the Oregon cannabis industry when the Illinois cannabis industry is fully up and running in what will most likely be a few years.

This might not be a bad thing for Illinois though. Being a more conservative state outside of Chicago, demand for cannabis likely won’t be as high as other states that have legalized. Also with homegrowing allowed under the new law, residents that can’t find a nearby dispensary will either not participate in the industry, or start growing their own.

While the latter could lead to a rise in private market distribution, it isn’t very likely due to what most are projecting will be low demand outside major metropolitan areas, where dispensaries are most concentrated. This is why the industry hasn’t sparked a lot of interest nationally. A lot of people aren’t expecting any big developments for at least two years, and even then the Illinois cannabis industry will still be a small player compared to other states that have legalized cannabis.

Illinois cannabis legalization is a great thing for the state and the country. They may be moving more slowly than other states, but they may also just be more cautious and hoping to avoid the mistakes made by Oregon or California. Unfortunately it’s much too soon to say how the Illinois industry will perform, but usually where there is legal weed, there is prosperity.