MjLink Cannabis Business News and Press

Sicily’s health chief, Ruggero Razza, signed a decree Jan. 21 that will now allow medical cannabis patients free access to medical cannabis. The regional government will pick up the tab for registered patients suffering from chronic pain, cerebral palsy and multiple sclerosis, according to local news reports. 

Italy legalized medical cannabis in 2013. And ever since 2014, much of the country’s supply has been grown by the Italian Army at a facility in Florence. The country also allows medical cannabis imports and at-home cultivation by patients. 

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Curaleaf Holdings, Inc., a vertically integrated cannabis operator with licenses in multiple U.S. states, announced earlier this month that it had closed on a loan for $300 million in capital, which will be used to strengthen the company’s balance sheet and liquidity, according to Chief Financial Officer Neil Davidson.

Before transitioning to the cannabis industry, Davidson worked nearly 20 years in the regulated gaming industry, where capital was much easier to come by.

“Access to capital to build casinos was pretty abundant, and the reality is that access to capital for a lot of businesses in the U.S. is pretty abundant—you have mainstream banks that are willing to provide that,” Davidson told Cannabis Business Times. “For the cannabis industry, typically you have to turn to family offices and hedge funds, so your cost of capital is a little bit higher, and a lot of times, those types of investors are looking for some type of equity. So, what’s important about this particular transaction is it was a first, we think, in the industry, and it was a non-dilutive transaction, so there was no equity component.”

The financing was secured from a syndicate of lenders and matures 48 months from closing. The proceeds will be used to refinance existing debt, pay transaction fees and expenses stemming from previously announced acquisitions, and fund capital expenditures.

Curaleaf originally sought to raise $275 million, but Davidson said the company simply had more interest from investors, which helped it reach the $300 million mark.

This week, U.S. Rep. Ed Perlmutter and three other representatives who co-sponsored the Secure and Fair Enforcement (SAFE) Banking Act submitted a letter to Senate committee chairman Mike Crapo to address his concerns about the legislation and to urge him to approve the bill. Elsewhere, efforts to legalize adult-use cannabis were launched in New York, New Mexico and New Hampshire.

Here, we’ve rounded up the 10 headlines you need to know before this week is over.

Federal: Taking its 46-year history in magazine publishing and its 32-year history of running the lauded Cannabis Cup events, High Times is getting into the retail game, announcing that the company will open two cannabis dispensaries in Las Vegas and Los Angeles. These flagship dispensaries will carry a variety of High Times-branded merchandise alongside locally sourced cannabis products that have previously won awards at Cannabis Cup events. Read moreU.S. Rep. Ed Perlmutter and three other representatives who co-sponsored the SAFE Banking Act submitted a letter to Senate committee chairman Mike Crapo Jan. 21 to address his concerns about the legislation and to urge him to approve the bill. The House passed the SAFE Banking Act in September in a historic vote of 321-103. The bill would ultimately provide a safe harbor for financial institutions that work with cannabis clients, effectively opening the door to formal banking relationships in the industry. Read moreUtah: Lawmakers will likely consider legislation in the upcoming legislative session that would make dozens of changes to the state’s medical cannabis law in the months leading up to the program’s launch. Senate Majority Leader Evan Vickers (R-Cedar City) is the main sponsor of the forthcoming legislation, which includes a proposal to expunge the criminal records of patients who were prosecuted in the past for cannabis possession, among other provisions. Read moreMichigan: The Detroit City Council voted Jan. 21 to extend a moratorium on adult-use cannabis sales in the city. The moratorium was originally set to expire Jan. 31, and the extension is meant to give the city time to draft an ordinance to regulate the industry. Read moreNew York: Gov. Andrew Cuomo included a plan to legalize and tax adult-use cannabis in a state budget proposal released Jan. 21. The move comes after Cuomo pledged in his Jan. 8 State of the State address to legalize cannabis this year. Read moreNew Mexico: Lawmakers have unveiled legislation to legalize adult-use cannabis in the state, and Gov. Michelle Lujan Grisham seems eager to sign the bill should it make it through the legislature. NM S.B.115 was put forth in the Senate by Sen. Jerry Ortiz y Pino, and a companion bill has been introduced in the House by Rep. Javier Martinez. Read moreMissouri: The has approved roughly 25,000 medical cannabis cards ahead of the program’s launch. The state has 10 qualifying conditions in its medical cannabis program, and released its applications for patients, caregivers and businesses in June. Read moreThe Missouri Department of Health and Senior Services (DHSS) is in the process of issuing 192 medical cannabis dispensary licenses. The licenses were divided evenly among the state’s eight congressional districts, as required by law. Read moreSouth Carolina: Medical cannabis supporters gathered at the South Carolina State House Jan. 22 to urge legislators to approve a medical cannabis program during this year’s legislative session. Last year, Sen. Tom Davis and Rep. Peter McCoy introduced the Compassionate Care Act to establish a regulated medical cannabis program in the state, but the legislation was ultimately postponed after undergoing several last-minute amendments in the Senate. This year's version of the bill was scheduled for a Medical, Military, Public and Municipal Affairs (3M) Committee hearing Jan. 22. Read moreNew Hampshire: New Hampshire lawmakers are considering roughly a dozen cannabis-related bills that have been filed for the 2020 session, including one that would allow patients to cultivate medical cannabis at home and two separate adult-use legalization proposals. One legalization bill would allow adults to possess up to 3/4 of an ounce of cannabis and to grow up to six plants at home, but would not create a commercial market in the state. Read more

An increase of mutating microbes around the globe has led medical experts to call antibiotic resistance an "apocalyptic threat" and raises an alarm for needed research into finding new solutions now. The most recent antibacterial drug developments date back more than 30 years at this point. With many of the chemical components of cannabis known to have antimicrobial effects as a way for the plant to protect itself, research into how these benefits can translate into human disease has begun in earnest. In terms of antimicrobial action, one such cannabinoid, cannabigerol (CBG), has proven particularly potent.

The antimicrobial and antifungal implications of CBG were first investigated in 1982 by the Elsohly et al team at the University of Mississippi. But research remained superficial until larger concentrations of the compound could be easily obtained, either from lab synthesis or access to the CBG-rich plants that are now being cultivated after the passage of the 2018 Farm Bill.

In a 2008 study on antibacterial cannabinoids, investigators demonstrated potent activity against a variety of methicillin-resistant Staphylococcus aureus (MRSA) strains by both CBD and CBG via topical application. The researchers also pointed out that the potential synergy of cannabinoids and terpenes, many of which also have antimicrobial potential, should be considered to improve patient outcomes.

Additionally, a 2018 study reported that endocannabinoids, like anandamide (AEA), are able to inhibit the spread of MRSA infections by decreasing biofilm formation which can increase the spread of bacterial colonization on the skin. Drugs that mimic the effects of AEA in the body, like THC, or drugs that inhibit the degradation of AEA in the body by the enzyme fatty acid amide hydrolase (FAAH), may prove agents of promise in the fight against biofilm-associated MRSA infections.

In recent news, a study out of McMaster University in Hamilton, Ontario published in bioRxiv preprint demonstrated that CBG was more effective against MRSA USA300, a highly virulent and prevalent form, than the four other major cannabinoids tested: Δ9-tetrahydrocannabinol (THC), cannabidiol (CBD), cannabichromene (CBC), and cannabinol (CBN).

As effective as vancomycin, a drug widely considered the last line of defense against drug-resistant bacteria, CBG was shown to be successful at treating MRSA. Unlike vancomycin, which has already begun to exhibit bacterial resistance, this superbug displayed no such energy for overcoming the CBG therapy. The cannabinoid was also more potent than conventional antibiotics in inhibiting the thin, slimy biofilms associated with disease persistence and against dormant "persister" cells that have a role in chronic and relapsing infection, rapidly eradicating populations below detectable levels.

TORONTO, Jan. 23, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Golden Leaf Holdings Ltd., a cannabis solutions company and dispensary operator built around the recognized brands of Chalice Farms, and its wholly-owned subsidiaries GL Management, Inc. and Greenpoint Equipment Leasing, LLC, have filed a lawsuit against BMF Washington LLC and Peter Saladino in Multnomah County (Oregon) Circuit Court, seeking to recover US$‎6,916,580 in damages.

As to BMF, the plaintiffs assert two claims for breach of contract, arising out of the parties’ equipment leasing and intellectual property licensing agreements, seeking damages of US$676,580 and  US$2,080,000, respectively, with alternative claims against both BMF and Saladino for unjust enrichment related to their improper use of plaintiffs’ equipment and intellectual property. The plaintiffs are also asserting claims against both defendants for misappropriation of trade secrets under Oregon and Washington law, seeking additional damages of US$4,160,000.

ST. LOUIS, Jan. 24, 2020 /PRNewswire/ -- PRESS RELEASE -- Justice Grown, a multi-state cannabis operator which holds licenses in Missouri, California, Pennsylvania, Illinois, New Jersey, Massachusetts, and Utah, has announced that it has been awarded an additional eight new Missouri medical cannabis licenses.

Having just won three cultivation licenses in Missouri in early January, Justice Grown was also granted three manufacturing licenses, as well as five dispensary licenses for the state's medical cannabis program, bringing the company to a total of 11 licenses for the Show-Me State. The manufacturing licenses will allow the company to create cannabis-infused products, such as edibles, concentrates and tinctures, while the dispensary licenses will allow for the opening of five medical marijuana storefronts across Missouri. Additionally, the previously won cultivation licenses will allow for the growing of exceptional cannabis flower products in the state.

The licenses were awarded by the Missouri Department of Health and Senior Services after a blind review of hundreds of applications. Candidates that scored the highest in the application process and that met all of the eligibility requirements were ultimately selected, with 86 licenses awarded in manufacturing and 192 licenses awarded for dispensaries.

"We are very excited to work with our native Missouri partners in building out our businesses in the area," said Justice Grown CEO Darin Carpenter "We expect to create over 250 new jobs for local Missourians when our cultivation, production, and dispensary operations are fully built out."

This commitment to job creation in Missouri is a high priority on the company's list, as it will soon be looking to fill positions for people with backgrounds in agriculture, retail, and security. Justice Grown is rapidly expanding its operation, with the recent installation of Darin Carpenter as Chief Executive Officer, who previously served as Director of Operations for Tryke Companies / Reef Dispensary, which is currently under acquisition by Cresco Labs for $282.5 million.

Thanks to additional regulatory, legal and financial scrutiny, tax season is far more challenging for cannabis businesses than most any other enterprise or industry.

Much of that extra scrutiny stems from Internal Revenue Code 280E, the federal statute that severely limits what expenses plant-touching cannabis businesses can deduct on their taxes.

While these limitations are certainly frustrating, they are not insurmountable. They simply require cannabis businesses to perform a little extra diligence and preparation to successfully navigate tax season and stay on track for sustainable growth in the years to come.

Navigating 280E

While most other businesses can deduct any number of expenses when preparing their tax returns—salaries, rent, equipment, etc.—thanks to the nuanced limitations of 280E, those in cannabis can only deduct expenses directly related to earning a profit, or the cost of goods sold (COGS).

That doesn’t mean cannabis companies can’t deduct rent and salaries—just those that play a direct role in selling cannabis.

The Missouri Department of Health and Senior Services (DHSS) is in the process of issuing 192 medical cannabis dispensary licenses.

The state began notifying the more than 1,100 license applicants of their status on the morning of Jan. 23, according to a Springfield News-Leader report.

The final list was published on the DHSS website Jan. 24.

The licenses were divided evenly among the state’s eight congressional districts, as required by law, according to a St. Louis Public Radio report. The law requires a minimum of 192 licensed dispensaries, the news outlet reported, which means that the state could issue more, but officials first want to see if the minimum number can meet patient demand.

DHSS aims to launch medical cannabis sales this spring. Already, the state has issued roughly 25,000 medical cannabis cards to patients enrolled in the program.

Colorado-based EcoGen Laboratories will build out a new headquarters in Grand Junction, in the western half of the state, showcasing the growth of a company that now employs 205 people.

Just last years, EcoGen landed what it called “the largest genetics deal in the history of the CBD industry.” The company sold 20 million feminized hemp seeds in March 2019 at the annual NOCO Hemp Expo in Denver. The price tag? $11 million.

Now, the Grand Junction footprint will expand on that work.

“When it’s all said and done, it will house everything,” Facilities Development Director Keith Ehlers told the Grand Junction Sentinel. “A large contingent of our operations and sales and administrative offices. It will have our entire processing line through there, which does include everything from extraction all the way through to final products. We’ll have a distribution center because we’re a very large-scale operation.” 

READ MORE: Hemp Genetics in a Changing Marketplace: Q&A with EcoGen's Derek Du Chesne

Already, Colorado has secured a position on the vanguard of the emerging U.S. hemp industry. We wrote in our premier issue that it’s one of the top three states in the country to grow hemp, and, moreover, it’s a hotbed for much-needed processing facilities.

New Hampshire lawmakers are considering roughly a dozen cannabis-related bills that have been filed for the 2020 session, including one that would allow patients to cultivate medical cannabis at home and two separate adult-use legalization proposals, according to a New Hampshire Public Radio report.

The Senate Health and Human Services Committee heard a handful of bills Jan. 22 that would expand the state’s medical cannabis program to include additional qualifying conditions, such as autism, and that would also address issues like program access and affordability, the news outlet reported.

Some of the bills would allow qualified medical cannabis patients to access additional dispensaries around the state, offer employment protections for qualified patients and allow patients visiting from other states to purchase medical cannabis products from New Hampshire’s dispensaries, according to New Hampshire Public Radio.

Another piece of legislation proposes a “home grow” option that would allow patients to cultivate their own cannabis. The legislature passed a similar bill last year, but the legislation was ultimately vetoed by Gov. Chris Sununu. The House voted to override the veto, but the Senate vote fell short of the required two-thirds majority to override the veto in that chamber.

Two adult-use legalization bills have also been introduced this year. One would allow adults to possess up to 3/4 of an ounce of cannabis and to grow up to six plants at home, but would not create a commercial market in the state, New Hampshire Public Radio reported.

VANCOUVER, Wash., Jan 23, 2020 – PRESS RELEASE – Hawthorne’s Gavita 1700e LED lighting fixture has been certified by the DesignLights Consortium (DLC). This listing status means growers who purchase the fixture are now eligible for state and national rebates—potentially cutting upfront equipment costs by as much as half and making it increasingly appealing for growers to switch to more efficient LEDs inside their facilities.

“Core to our mission is helping growers to solve their most pressing problems,” said Chris Hagedorn, Senior Vice President and General Manager of Hawthorne Gardening Company. “This is one of the most exciting, innovative and challenging industries to be a part of, and we’re committed to helping cultivators of all sizes succeed. This new DLC listing allows for our Gavita LED to be rebate eligible, making lighting both more efficient and more affordable for growers”.

As the first Gavita fixture with DLC listing status, the 1700e combines power and efficiency like never before in the brand’s three-decade history. More efficient fixtures like the 1700e drive cost savings and improved margins without sacrificing quality, making products more competitive and empowering business owners to invest in growth and innovation in an increasingly competitive industry. The 1700e is designed specifically for the needs of indoor growers an efficacy of 2.6 µmol s-1 per Watt, IP66 wet rating and eight passively cooled bars that eliminate moving parts.

A New Source For Climate Control and Partnership with Spacesaver

In addition to Gavita’s DLC certification, Hawthorne also announced a partnership offering its tools and supplies for commercial growing operations bundled with durable, multi-tier benching from the leading high-density shelving manufacturer, Spacesaver Corporation. This partnership is aimed at helping growers optimize their business by equipping them with products designed for indoor growing that leverage any building configuration. Two-, three- or even four-tier benching systems allow growers to fit more tables and plants in the same square footage than single-tier options, increasing the potential for higher yields in a single growing season while helping streamline workflow and maximize efficiencies.

January 22, 2020 – PRESS RELEASE – The Marijuana Regulatory Agency (MRA) issued a health and safety advisory bulletin today due to the recall of vape cartridges which failed laboratory testing – under the Nov. 22, 2019 emergency rules – for high levels of vitamin E acetate.

All affected vape cartridges will have a label that indicates the license number of the marijuana facility and the METRC number assigned to the product in the statewide monitoring system.

This recall affects the following vape cartridges sold from Plan B Wellness – License PC-000137 – located at 20101 8 Mile RD, Detroit, MI 48219 from Oct. 3, 2019 through Nov. 22, 2019 and on Jan. 16, 2020:

METRC # 1A405010000426A000000015 Savage Stick 1G ConcentrateMETRC # 1A405010000426A000000743 1g-Savage-Blackberry Kush CartridgeMETRC # 1A405010000426A000000744 1g-Savage-GG#4 CartridgeMETRC # 1A405010000426A000000746 1g- Savage-Runtz Cartridge

Patients or caregivers who have these affected medical marijuana products in their possession should return them to Plan B Wellness for proper disposal. Plan B Wellness must notify patients or caregivers that purchased these medical marijuana products of the recall.

Patients who have experienced symptoms after using these products should report their symptoms and product use to their physician.

Kentucky Agriculture Commissioner Dr. Ryan Quarles announced this week that his state will not submit draft hemp regulations to the U.S. Department of Agriculture, opting instead to remain under the auspices of the 2014 Farm Bill’s pilot program provisions through 2020.

The move will allow Kentucky hemp farmers a bit of breathing room, a chance to regroup and watch the federally legalized hemp marketplace settle into itself a bit. And the wariness is not unfounded. Quarles said that he landed on this decision “after much discussion with industry stakeholders in Kentucky.”

He said that his office fears a degree of overreach on the part of the USDA. And this comes more than a year after Quarles eagerly submitted his state’s original plan to the USDA, before President Trump’s signature had even dried on the 2018 Farm Bill. (A federal government shutdown that same week immediately stalled Kentucky’s plans. Here we are now.)

Earlier this month, the Kentucky Hemp Industries Association published an open letter that urged Quarles to run with this idea.

“The Kentucky Hemp Industries Association is very close to our membership, with boots on the ground all over the state,” KYHIA President Mitchell “Tate” Hall said in the public statement.  “Everyone broadly supports the Kentucky Hemp Pilot Program and the efforts of the KDA, as we attempt to build hemp as a predictable, new industry.”

The U.S. Department of Agriculture released its interim final rule back in October 2019, and the public comment period is still open (through Jan. 29). But the sprawling regulatory guidance has been met with raised eyebrows and palpable concern across the hemp industry. Maureen West, former Colorado Industrial Hemp Program Manager, wrote for Hemp Grower that the draft framework isn’t really working for anyone right now. Challenges are inevitable this year—for farmers and regulators.

Medical cannabis supporters gathered at the South Carolina State House Jan. 22 to urge legislators to approve a medical cannabis program during this year’s legislative session.

Last year, Sen. Tom Davis and Rep. Peter McCoy introduced the Compassionate Care Act to establish a regulated medical cannabis program in the state, but the legislation was ultimately postponed after undergoing several last-minute amendments in the Senate.

This year's version of the bill was scheduled for a Medical, Military, Public and Municipal Affairs (3M) Committee hearing Jan. 22, and the Senate Medical Affairs Committee is expected to take up the Senate version of the legislation in the coming weeks, according to a press release.

South Carolina patients, health care professionals and veterans were in attendance Jan. 22 to show their support of the legislation, according to a local ABC Columbia report, although there is no indication of when a vote will take place on the bill in either chamber.

Missouri has approved roughly 25,000 medical cannabis cards, according to a local KCTV report.

The state has 10 qualifying conditions in its medical cannabis program, and released its applications for patients, caregivers and businesses in June.

Missouri residents must complete the application and provide proof of a qualifying medical condition, as well as pay a fee, to participate in the program, KCTV reported. Within a few weeks, they receive a digital medical card from the state, although Missouri has not yet licensed dispensaries to serve the market; the licenses are expected to be issued by Jan. 24.

The state issued 10 medical cannabis testing lab licenses at the end of December, followed by 60 cultivation licenses. Earlier this month, Missouri issued licenses to 86 medical cannabis manufacturing facilities, which will be responsible for producing cannabis-infused products such as edibles, tinctures and concentrates.

U.S. Rep. Ed Perlmutter and three other representatives who co-sponsored the Secure and Fair Enforcement (SAFE) Banking Act submitted a letter to Senate committee chairman Mike Crapo Jan. 21 to address his concerns about the legislation and to urge him to approve the bill.

In comments released Dec. 18, Crapo, chairman of the Senate Committee on Banking, Housing and Urban Affairs, recommended that lawmakers add public health and safety requirements to the bill, including a potential 2% THC limit on cannabis products and a requirement for companies to disclose product potency as a prerequisite to obtaining financial services from banks, according to The Denver Post.

Crapo also suggested including regulations in the legislation that would prevent “bad actors” from laundering money through banks, the news outlet reported.

The lead sponsors of the SAFE Banking Act, Reps. Steve Stivers (R-OH), Denny Heck (D-WA) and Warren Davidson (R-OH), have remained hesitant to expand the SAFE Banking Act, writing in their letter that, “The primary objective of our bill is to address public safety concerns resulting from marijuana-related transactions being forced outside the regulated banking system.”

The legislators expressed that they must be cautious about “adding limitations to the legislation’s safe harbor that impose unworkable burdens on financial institutions, or would jeopardize the larger, bipartisan effort to address public safety concerns associated with cash-only transactions,” and reiterated, “Our bill is about safety. It does not change the legal status of marijuana and is focused solely on taking cash off the streets and aligning federal banking laws with the decisions states are already making regarding cannabis.”

Most farmers who decide to grow hemp go into it with good intentions and high hopes. With all the excitement generated by the opportunity to legally grow hemp, it’s easy for farmers to get caught up in the “it won’t happen to me” attitude when it comes to regulatory compliance issues.

However, compliance issues can and do happen, leaving farmers to face the real possibility of crop destruction with no way to derive economic benefit from their failed hemp plants.

If hemp exceeds the 0.3% tetrahydrocannabinol (THC) threshold set by federal regulations, a farmer can be ordered to destroy the crop, otherwise known as a “hot crop.” As the former Colorado Industrial Hemp Program Manager for over three years, I had the dreadful task of telling farmers that their hemp crop tested hot.

Prior to delivering the news about the hot crop, I would brace myself for the farmer’s angry reaction. In fact, what I typically encountered was just the opposite. Farmers were polite, respectful and often even gracious— but of course, they expressed their deep disappointment at having to destroy what they worked all season to grow.

As the U.S. Department of Agriculture (USDA) prepares to implement additional rules that will regulate hemp farmers, these farmers continue to struggle with how to legally grow hemp within the proposed regulatory framework. Shouldn’t we be seriously exploring how hot hemp can be used for non-ingestible hemp products like t-shirts or hempcrete where THC levels aren’t an issue? This issue must be explored and solutions must be found.

Beyond the Farm: Challenges for Regulators

New Mexico lawmakers unveiled legislation Jan. 16 to legalize adult-use cannabis in the state, and Gov. Michelle Lujan Grisham seems eager to sign the bill should it make it through the legislature, but Drug Policy Alliance New Mexico State Director Emily Kaltenbach says continued advocacy efforts and education are key to a successful legalization attempt this year.

“These bills definitely could pass,” she told Cannabis Business Times. “The question, I think, is we still have a few senators who have been on the fence about it.”

New Mexico legislators considered two competing adult-use legalization bills last year, and although one proposal gained House approval and even cleared a Senate panel, the legislation ultimately stalled in the Senate at the close of last year’s legislative session.

Grisham in turn recruited policy experts to serve on a committee tasked with providing recommendations on legalization, and has renewed her push for policy reform this year, announcing last week that she was officially adding legalization to the 2020 legislative agenda.

The result is NM S.B.115, which was put forth last week by Sen. Jerry Ortiz y Pino. A companion bill has been introduced in the House by Rep. Javier Martinez, and Kaltenbach expects more legislators to sign on as the legislative session progresses.

The hemp market continues to settle as farmers look to the 2020 season. As U.S. growers learn from lessons they picked up in previous years, and as more growers get into the game, the national and international markets will shake out and begin to look more like a commodities market. PanXchange market updates, which we share on Hemp Grower, show us that the transition is already under way.

Andrew Graves, chairman of Atalo Holdings, will be explaining how his company has prepared for the long-term when he speaks at Cannabis Conference 2020. We decided to check in with him to tee up that spotlight session and get a sense of what farmers can be thinking about in this upcoming planting season.

Hemp Grower: Let’s begin with Hemp Knowbility. Why is it important to your company to be talking about long-term plans with other farmers? 

Andrew Graves: We have spent the last five years learning to be proficient in planting, cultivating and harvest, drying and then extracting our material. We now feel like we have accumulated enough information that we can share it with other groups and other farmers on a consulting basis. We'll even do big grows for those groups that are interested. We have a plethora of different avenues that we can travel. And it's all about the fact that we have total traceability with our genetics. It's repeatable. And we know how to achieve those things through our new hybrid, which we've developed over these years. We feel like we have a very good product that can help farmers and other groups to achieve their goals.

HG: Whether it’s in that capacity or more informally, what are some helpful ways to get hemp farmers out of the urgency of the fast-paced market to think more about long-term planning?

AG: As head of the company, I have to be thinking of all if I can. What I think is that genetics will lead us to the future, and that means really, really good hybrids. I believe that seed technology in general—and that means anywhere from seed coating to types of colors—all of these things will help farmers to get their use their precision planters to get this thing seeded and placed correctly in the soil.

Now, our company is all about outdoor growing. We are not confined to greenhouse. We think about scale. And that is thinking of the future, because this, obviously, in my mind, will be a commodity. It will be commoditized in every way of the crop. So, the other ways that our company thinks about whole plant—obviously we would use seed and sell seed to a grower that is specific to whatever he was trying to do. Right now, they all call and look for some kind of CBD that’s off the charts in percentage. However, you know and I know it has to remain compliant. Those companies in the future that offer a plant that gets the CBD percentage right up there where it can remain legal, but also, we can offer ways for those growers to sell the various parts of the plant. And that would mean dust, plant fiber, branches, the seed itself: this is something that we offer as a company that you just have to be able to sell everything, as they say, in the old Chicago stockyards, including the squeal. That's what it's going to take in order to make farmers remain profitable in this industry, because everyone around the world seems to be trying to get in.

Wellcana Group has ambitious plans for 2020: The company is expanding its medical cannabis operations and its offerings to include a cannabidiol (CBD) line.

The company holds the exclusive license from Louisiana State University to grow and manufacture medical cannabis products. Wellcana currently sells medical tinctures for about 5,000 patients and is planning to launch additional medical cannabis products.

“We’ll roll out topicals first and then the strips, and then the edible chews. Then the metered dose inhalers,” Wellcana CEO John Davis told The Advocate. Wellcana then plans to roll out the same products, excluding metered inhalers, with CBD.

The Baton Rouge, Louisiana-based company plans to expand its current facility. Wellcana is concurrently seeking additional space to build a 100,000-square-foot indoor medical cannabis greenhouse and storage facility, which will also be equipped for industrial hemp processing. Wellcana is seeking area farmers who can supply hemp.  

The U.S. Department of Agriculture approved Louisiana’s industrial hemp plan Dec. 23, and the state began accepting license applications Dec. 27.

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