Our cannabis business lawyers are always getting emails from blog readers asking them where they can be found on social media. This post is our response to all those emails and to let everyone else know that if you cannot get enough of Canna Law Blog, you can find more of us in the following places:
Facebook. We have an exceedingly popular and perpetually growing Facebook page here with more than 180,000 likes/followers. We use that site to disseminate information and to initiate discussion on a wide range of uber-topical cannabis issues. That site is meant to be a less serious than this one and the range of cannabis topics we address there is considerably wider than here. We allow for a wide range of views on our Facebook page and we delete only those comments hateful of others or that involve anyone trying to sell anything.
Twitter/Publications. Our blog and a number of our cannabis lawyers have the following twitter accounts, with posting frequencies all over the map:
@cannalawblog We use this account to tweet 2-4 times a day, mostly on important cannabis issues of general interest. This is a go-to account for current events.
The City of Los Angeles has been slowly issuing temporary approval for Existing Medical Marijuana Dispensaries (“EMMD”). The deadline for EMMDs to receive Prop M Priority Processing is this Sunday, March 4th. Submitting an application prior to Sunday gives EMMDs “limited immunity” to keep their businesses open while the Department of Cannabis Regulation (the “DCR”) processes applications. Those dispensaries that have not submitted an application must close down.
It is no surprise the DCR is completely understaffed and unable to process the volume of applications that have been submitted thus far. On Wednesday, the City Council approved the creation of 21 new jobs for the DCR. For those EMMDs with a valid 2017 Business Tax Registration Certificate (“BTRC”), it has been a relatively easy process for submitting an application. However, Proposition D placed a halt on the issuance of 2017 BTRCs for cannabis businesses and has left confusion among those applicants that have been in business prior to 2007, but only have a 2015/2016 BTRC. The DCR is working to issue temporary 2017 BTRC numbers, so EMMDs who believe they qualify for Prop M Priority Processing have the opportunity to submit an application prior to March 4th.
Thus far, the DCR has approved 112 temporary licenses for the City …
When looking at treatment options for different kinds of illnesses and ailments, many people don’t stop and consider medical marijuana as an option. However, if you’re struggling to find a way to cope with the symptoms of your illness, it could be a viable option for you.
Today, we have thounsands of cannabis strains with tens of different traits, so that virtually any type of grower can easily find what he’s looking for. Today we’ll focus on strains with fruity flavour, like oranges, lemons, strawberries or blueberries. Thus, in this article we’ll list some of the best and most reputed fruity cannabis strains, which have a terpene profile (terpenes are aromatic molecules which give marijuana its particular scent and taste) reminiscent of these fruits.
OG Kush x Blueberry hybrid with berry scent
Cannabis strains with citrus flavour
Citrus flavour, which is present in some local strains from Asia or South America, comes from a terpene called limonene. Highly appreciated by many users, these strains have been bred to fix this trait and even enrich it, so we can now find diverse genetic lines with complex citrus scent, each of them with its own nuances and personality. In this way, Las Vegas Lemon Skunk has favored the appearance of many other strains with citrus aroma, like Super Lemon OG, Lemon OG Candy, Lemon Walker…
However, and depending on concentrations and interactions with other terpenes, another limonene isomer can also produce a scent more similar to oranges or mandarins. Without a doubt, Orange Bud – a particularly smelly Skunk phenotype which became …
With new startup companies that plan to raise funds, I’ll often have a sit-down meeting to discuss the fundraising process, the company’s growth path, and address any concerns of the startup founders regarding financing. At these meetings I’ve heard company founders say each of the following:
We’re all going to get diluted!
We’re going to lose control of the business!
We’re too busy to raise funds, so it makes sense to pay someone a “finder’s fee” to procure the investors.
Everyone loves our idea, so we’ll have the investors’ checks in hand next week.
Let’s just focus on the business, getting angel investment, and we’ll deal with all the corporate legal mumbo-jumbo later.
Trading stories with our corporate cannabis attorneys up and down the west coast, it seems like all of us have heard similar things. However, none of the above is based on reality or adviseable, and some of it is downright dangerous. So, let’s bust some myths around financing your cannabis startup.
We’re all going to get diluted!
“Dilution” is super-scary word that rarely has the perceived affect, particularly in the context of equity financing. By-and-large equity financings are done in successive rounds, when the value of the company is increasing. Companies very rarely do a down-round (raising …
Until recently, it was very difficult to find professional quality extractions without investing several thousand euros in a complex closed circuit system.
Herborizer offers one of the most interesting alternatives with this Passive Mini Closed Loop system. Closed circuit systems permit us to obtain better quality oils thanks to the purification of the gas (which we will discuss next) but also permits the almost infinite reuse of this refined gas.
Finally BHO lovers can try professional quality extractions thanks to this Mini Closed Loop by Herborizer. Compact in size, the tube measures 15cm in length by 4cm wide and the containers of the system measure 10cm x 10cm, being very easy to transport and particularly resistant thanks to its integral fabrication of 304 stainless steel. With a capacity of 45 grams of flower and approximately 400-500ml of butane gas, with this system it will be possible to recover between 4 and 7 grams of BHO in each session.
We have been able to make various extractions with different plants
Above all, never forget that this type of extraction is potentially dangerous if the proper security measures are not respected. Although this is a closed circuit, it is always vital to carry out the extraction outdoors, in a well ventilated place.
It seems like most days I receive a call or an email from a client or potential client that wants to examine a marijuana joint venture (JV). Whether it’s a business arrangement between companies that already has been negotiated, or stage one of the deal process, marijuana JVs are all the rage, even though many people don’t understand what they are getting into. This post covers some the main do’s and don’ts of the marijuana JV.
What is a JV and why are so many companies looking to get into them? Counter to how they are often discussed, a JV isn’t an entity in the same way that a corporation or LLC or limited partnership is. A JV can take many forms but generally involves a contract between multiple business entities that involves some level of profit sharing for joint activities. As it turns out, financiers looking to capitalize off of the green rush often know nothing about producing or manufacturing cannabis. Conversely, a lot of our country’s best cannabis talent lacks both cash and know-how necessary to run a complex, highly-regulated cannabis business or ancillary company in a hugely competitive environment. Each side wants and needs a partner to cover some gaps, but the parties often are unwilling to share direct ownership in their businesses. So, we see some …
Approximately 40 percent of Canadians will experience a sleep disorder during their lifetime, and roughly 3.3 million Canadians (which translates to about one in seven) have problems going to sleep or staying asleep. Insomnia is a serious condition because your brain needs sleep in order to function properly. When you don’t get enough sleep, you can suffer from low energy, cognitive impairment, mood disturbances, and difficulty maintaining personal relationships.
We’ve written extensively on a federal lawsuit filed by five plaintiffs against Attorney General Jeff Sessions challenging the constitutionality of the federal government’s continued classification of cannabis as a Schedule 1 drug under the Controlled Substances Act (CSA) (here, here, and here). While we were cautiously hopeful, the Judge dashed those hopes yesterday when he granted the government’s motion to dismiss the case, styled as Marvin Washington et. al. v. Jefferson Beauregard Sessions, III, et al.
In a nutshell, the plaintiffs sought a ruling that the continued classification of cannabis has no rational basis because cannabis clearly has a medical use. (Recall that the standard for Schedule I includes “no currently accepted medical use in treatment”). Although this is certainly true, it was not enough to win the day due to a few insurmountable and incredibly frustrating procedural hurdles.
Exhaustion of Administrative Remedies
Generally, parties must exhaust available administrative remedies before they can seek relief in federal court. The Judge found that these plaintiffs failed to exhaust an available remedy under the CSA: Interested parties can petition the DEA to reclassify drugs after an on the record hearing. 21 …
Today we present you a grow report made by the guys at Colorado Seed Int. with their Clementine Kush, an amazing and tasty hybrid between Tangerine Sunrise (awarded as one of the top 10 best strains in Colorado in 2014) and Gupta Kush, one of the flagship parents of this American seed company. Remember that you can pruchase Colorado Seeds strains in feminised form only at Alchimia!
Clementine Kush by Colorado Seed
Genetics of Clementine Kush by Colorado Seed
This hybrid, which we already saw in our presentation of Colorado Seed, comes from a cross between he renowned Tangerine Sunrise and Gupta Kush, from which the best individual was used to develop the feminised version or S1.
Tangerine Sunrise is a cross between a spectacular Sativa from Hawaii – Hawaiian Sunrise – and Tangenesia, a hybrid between Tangerine Haze and (Ghiesel x Amnesia Haze). The resulting strain has intense orange scent with delicious Haze and musky notes, highly appreciated by connosseurs from Colorado also thanks to its positive, euphoric effect.
On the other hand, Gupta Kush is a second generation backcross between Ghost OG Moonshine and Rugburn OG. It’s a mostly Indica strain created by Colorado Seed to honour Dr. Sanjay Gupta with potent sedative effect and suitable to treat anxiety, stress or insomnia. It performs …
When California’s state legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA) back in 2015, it was the first time that California enacted a statewide licensing and regulatory regime for commercial cannabis businesses. Prior to the passage of the MCRSA, cannabis collectives and non-profits in California were operating under the Compassionate Use Act of 1996 (Prop 215), Senate Bill 420 a/k/a the Medical Marijuana Program Act (passed in 2004), and the California Attorney General guidelines that were issued in 2008 (bonus points if you knew that current Governor Jerry Brown was the AG at the time).
The pre-MCRSA landscape allowed collectives, co-ops, and non-profits to proliferate throughout the state with no real oversight. That all ended with the enactment of MCRSA and passage of the Adult-Use of Marijuana Act (AUMA) by California voters in November of 2016. Then, in June of 2017, the California State Legislature passed the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to create one regulatory system for both medicinal and adult-use cannabis businesses. Under MAUCRSA, cannabis businesses are regulated and licensed mainly by three state agencies: the Department of Food and Agriculture (regulates cultivators), the Department of Public Health (regulates manufacturers), and the Bureau of Cannabis Control (regulates distributors, laboratories, retailers, delivery-only retailers, and microbusinesses). These three governing bodies have since released hundreds …
One of the reasons people turn to medical marijuana is to ease the symptoms of chronic pain. Chronic pain is most often treated with painkillers like opioids. Everyone now knows how addictive opioids are and the damage they can inflict on a person’s life, which is why doctors have become hesitant to prescribe them to patients. While this is understandable, it leaves patients who suffer from chronic pain with limited options for relief. One of those options, though, is medical marijuana. There are many medical marijuana strains that are effective at treating chronic nerve pain.
When you look at a map of states that have legalized cannabis use and sale, it is hard to believe that “marijuana” remains classified as a Schedule I drug under the federal Controlled Substances Act (CSA). A decisive majority of states and voters, across the political spectrum, believe the marijuana prohibition should end. The war on drugs has failed abjectly. And yet, here we are.
Over the years, many different parties have undertaken efforts to end prohibition. A dozen times or so, private parties have filed petitions with the Drug Enforcement Administration (DEA), per CSA protocol on rescheduling. The DEA has routinely denied each petition, or declined to accept it outright. The lone exception was a petition filed by the pharmaceutical manufacturer of Marinol, to move that synthetic cannabis drug from Schedule II to Schedule III. That one was granted
Other efforts have been made in the court system. These efforts are too numerous to detail at present, but they too have failed. Even a ruling by DEA’s own administrative law judge that cannabis should be reclassified was swatted away by the agency—and that was nearly 30 years ago. Nevertheless, a group of plaintiffs is at it again. It seems that today, almost fifty years after marijuana was placed on Schedule I of the CSA, people are less tolerant …
Cannabis producers make up the largest number of Oregon industry licensees. As of the Oregon Liquor Control Commission’s (OLCC) February 15, 2018 report, there are 922 licensed producers and approximately 1100 producer licenses awaiting approval. In comparison, the next largest license category is retail establishments, with a total of 527 approved licenses and approximately 200 awaiting approval. Clearly, licensed marijuana farms are leading the pack.
Cannabis farm workers are sometimes subject to additional statutes, rules, and regulations that do not apply to non-farm workers. For this reason, if you are an Oregon marijuana producer, it is important to be familiar with agricultural rules as well as the OLCC marijuana rules. One especially important area to be aware of is hourly payments for cannabis farm workers. Underpaying farm workers can have disastrous consequences, and overpaying workers simply because you do not understand the rules is a poor business model.
Certain cannabis farm workers are exempt from overtime payment requirements. For example, employees engaged in agricultural work 100 percent of the workweek are exempt from overtime pay requirements. Agricultural work is broadly defined to include farming in all its branches, including, but not limited to the cultivation and tillage of soil, the production cultivation, growing and harvesting of any agricultural or horticultural commodities …
On Friday, I had the privilege of speaking on a panel at American University Washington College of Law’s Intellectual Property Symposium in Washington D.C., which addressed the obstacles of obtaining and enforcing IP rights in the cannabis industry. Many of the questions asked were ones I’ve been working through for the last several years, so I thought it would be helpful to address them in this post, and to revisit some of the basic issues my cannabis clients face in protecting their brand assets.
First, here are a number of posts I’ve written on cannabis IP and trademarks that cover many of the issues we discussed:
The most pressing topic, of course, was how we should advise our clients to protect their brand assets, given the unique legal status of cannabis. As far as brand protection goes, federal trademarks are the most effective device for ensuring that consumers are able to identify your goods and services, and for ensuring that third parties are unable to copy your mark. A trademark is a word, phrase, symbol, and/or design that identifies and distinguishes the …
As we’ve discussed before on this blog, cannabis can be and is being patented. It is important to remember that patents are a balance between competing social values. In classical legal theory, patents exist to encourage innovation by offering innovators a limited monopoly in return for making inventions, and eventually releasing them to the public. Although the common law disfavors restraints on trade such as patents, the prevailing theory is that granting a partial monopoly is justified by the social benefit of innovation. This is known as the contract model of patents. Whether this model really produces net social utility in particular cases, or ever, is hotly debated.
What isn’t debated is that the contract model fails if what is patented is not new. One of the biggest challenges of our patent system is determining what is “new enough” to reward with a patent. In general, the patent system examines novelty by comparing a claimed invention to existing products (known as the “prior art”) that are in the same or related fields. (In some patents, an invention must also be “non-obvious” in light of prior art. I don’t address obviousness here.) The practical problem is searching the historical haystack for the needle of relevant prior art. Searching the text of patents is relatively easy. But most of the world …
Once you and your doctor decide that medical marijuana is the right treatment option for you, you have to learn how to get medical marijuana. Currently, you’re not able to just walk into any regular pharmacy and ask for it. This makes getting your hands on it a little bit more challenging because the government wants to ensure you actually need it for medical reasons.
Cannabis plants have a remarkable capacity to adapt to the environment they grow in, a great advantage for us growers as it frees us to select the type ofsubstrate best suited to our needs from the wide range available on the market that serve perfectly as growing media for cannabis.
In this post we will look at the different substrates and the variants of each of them, highlighting the fertilisers to be used and the peculiarities of each substrate, enabling you to choose the one that best suits your needs, whether it is for ease, production, quality , or simply because you want to innovate or try new cultivation techniques.
Cannabis and substrates
Soil as a substrate for cannabis
Soil is the universal substrate used for all vegetation, the most widely used growing medium since the invention of agriculture. We can describe what we call soil as a composite of different types of substrates. The native soil out in the fields may be suitable for cultivating certain types of plants but not for others. Likewise, not all soils work for cannabis cultivation, they must have structure, composition and characteristics suitable for this use.
We must highlight the essential characteristics that the soil must have so that the cannabis plants have an optimal, problem-free development. If that’s not …
The Washington State House of Representatives is considering House Bill 2334, which would allow licensed marijuana producers and processors to use cannabidiol (CBD) from a source not licensed by the Washington State Liquor and Cannabis Board (LCB). The bill defines a “CBD product” as “any product containing or consisting of cannabidiol” and would permit the use of CBD products from unlicensed sources so long as the CBD product has a THC level of 0.3 percent or less on a dry weight basis and has been lab tested.
Washington’s regulated cannabis market is a closed loop that works on the principle that no marijuana comes in and none goes out. Everything sold in a licensed retail store is grown by licensed producer and processed into products like oils and edible by a licensed processor. If a licensee is caught bringing in marijuana from an outside source, the LCB will cancel the license.
HB 2234 would have the most impact on processors who could add CBD to products such as marijuana oils, candies, capsules, and other infused products. Though HB 2334 is still far from being law, processors in Washington have flirted with the idea of using unlicensed CBD to create products with higher CBD concentrations. Processors who choose to enrich products with unlicensed CBD do so at their own risk.…
Earlier this month, the Oregon Secretary of State’s office released a formal audit report (“Report”) of the Oregon Liquor Control Commission’s (OLCC) information technology systems as they relate to Oregon’s recreational cannabis regulatory enforcement. The Report, titled “Oregon Liquor Control Commission: Cannabis Information Systems Properly Functioning but Monitoring and Security Enhancements are Needed“, focused on two separate but related issues: 1) the OLCC’s Marijuana Licensing System (MLS) and Cannabis Tracking System (CTS), and 2) general IT security concerns and disaster recovery procedures. The Report and the OLCC’s formal written response (“Response”) paint a picture of an underfunded agency doing its best to establish appropriate procedures and processes in the face of a unique emerging marketplace, unexpected demand for licenses, strict statutory deadlines, an an ever-changing regulatory framework. It is also apparent that the Secretary of State and the OLCC worked well together during the audit process, as each party complements the other on transparency, professionalism, and common courtesy.
The audit was initiated to determine whether:
the OLCC has sufficient technical controls in place to ensure that the MLS and CTS are supporting effective regulation of the recreational cannabis industry; and
the OLCC has implemented sufficient security procedures to protect against known technical and physical threats.
California has 58 counties and 482 incorporated cities across the state, each with the option to create its own rules or ban marijuana altogether. In this California Cannabis Countdown series, we cover who is banning cannabis, who is embracing cannabis (and how), and everyone in between. For each city and county, we’ll discuss its location, history with cannabis, current law, and proposed law to give you a clearer picture of where to locate your California marijuana business, how to keep it legal, and what you will and won’t be allowed to do.
Why we get the munchies as a staple part of any heavy cannabis session has been something of a scientific mystery throughout the ages. Nevertheless, targeted studies are for the first time beginning to explain exactly what the munchies are and why they occur. For the most part, it all comes down to the way […]
Nowadays more and more people are being made aware of the benefits of consuming cannabis resin extracts or concentrates, they are more efficient, with higher purity and potency, they have better flavour and give relief more quickly than smoking or vaping flowers. Indeed, in California, cannabis flowers currently make up just over half of the market (55% in the 2nd quarter of 2017.), with extracts making up the remaining 45%, and according to figures from Colorado, another beacon of legalisation in the US, the concentrate market is growing at an astounding rate, with sales increasing by 125% from 2015 to 2016, compared to an 11% rise in flower sales and an 53% rise in edibles.
Fresh frozen ice water hash (Photo: @hashcelona)
Solvent, Non-solvent, Solventless and Solvent-free. What’s the difference?
These terms are increasingly common to see in the menu in dispensaries or cannabis clubs, but they can cause some confusion, so let’s examine the real meaning behind them within the context of the cannabis world. Solvent extracts are those that are carried out using a (generally hydrocarbon like purified butane gas) solvent to dissolve the active ingredients and separate them from the plant material. Solventless or non-solvent is a label applied to products that have been extracted mechanically, without the use of solvents. Now, here’s …
We receive calls on a weekly basis from clients and prospective clients who want to know what steps they must take to host a cannabis event. We’ve heard plans for cooking classes, dinner parties, shows at art galleries with on-site consumption, and the list goes on. And while the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) does provide for state temporary event licenses, those licenses are unfortunately extremely limited.
Pursuant to MAUCRSA, a state licensing authority may issue a state temporary marijuana event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons twenty-one years of age or older at a “county fair or district agricultural association event, provided that certain other requirements are met.” No other venue is allowed.
The hypothetical events I listed above do not constitute a “county fair” or a “district agricultural event,” and so technically, even if a local jurisdiction were entirely willing to issue a special event license for one of these types of events, it would not be permissible under state law. Assembly Bill 2641, introduced on February 15th, seeks to remedy this problem.
AB 2641 would authorize the Bureau of Cannabis Control (“BCC”) to issue the temporary event licenses, and would authorize a state …
California is just starting to get its cannabis packaging and labeling regulations right under MAUCRSA. The state has a mandated transition period from January 1 to July 1, 2018, during which time adult use and medical marijuana licensees can do business with each other, and temporary and annual state licensees can transport and sell cannabis products already in their possession in the newly regulated market. This means there are two packaging and labeling standards during this transition period: one for products that licensees bring into the marketplace from before January 1, 2018 and another for products cultivated or made on or after January 1, 2018. I covered transition period product packaging and labeling in a previous post. This post will cover the packaging and labeling requirements for those products made or cultivated on or after January 1, 2018 (collectively, “New Products”).
For New Products, retailers won’t package or label anything. Instead, all New Products will come to retailers already packaged and labeled by either cultivators, processors, manufacturers, or distributors. The only packaging requirement retailers have for New Products is exit packaging. Specifically, per section 5413 of the Bureau of Cannabis Control Emergency MAUCRSA rules, “[c]annabis goods purchased by a customer shall not leave the retailer’s premises unless
Thirty states and the District of Columbia have laws that legalize marijuana for adult recreational use and/or medical use. Many of those states also protect employees’ off-work use of medical marijuana. However, some of those states, including California, Oregon and Washington, have statutes or case law allowing employers to terminate employees for off-work use of marijuana– even employees legally using it under the state’s medical marijuana laws. Oregon recently tried to pass legislation protecting off-work use of marijuana, but the bill failed to gain traction and fizzled at the committee level. California is the latest state to attempt to pass legislation to protect employee’s off-work use of medical marijuana. Let’s hope it happens!
California Assembly Bill 2069 (AB 2069), introduced last week, proposes to protect medical marijuana patients’ off-work use of marijuana. AB 2069 would amend California’s anti-discrimination statute by expanding the list of protected classes to include medical marijuana patients. This means that if an employer discovered that an employee or potential employee was a medical marijuana patient, or that the employee had tested positive for marijuana, it would be illegal for the employer to:
“refuse to hire or refuse to select the person for a training program leading to employment, or to bar or to discharge the person from employment …
A growing number of startups in the cannabis space are engaging brokers and online platforms to assist in their fundraising. This makes sense: as we’ve written previously, most investors (particularly institutional capital) are staying on the sidelines and taking a wait-and-see approach to the cannabis industry. Thus, cannabis startups will always target a smaller, more dispersed, more specialized investor base, and going through experts is a logical way to reach them. Note that 506(c) is one of the relatively new options for company financing, implemented as part of the JOBS Act of 2012. It allows for companies to engage in a more public “general solicitation”—but with strings attached, as we’ll detail below.
From a securities law perspective, the engagement of a broker-dealer or online platform converts the offering exemption from the ever-popular 506(b) offering to a 506(c) offering – changing this one letter has a number of significant consequences:
1 – You must ensure that the broker-dealer is registered, or else.
Section 3(a)(4)(A) of the Securities Act generally defines a “broker” broadly as “any person engaged in the business of effecting transactions in securities for the account of others.” This broad definition includes any “finder,” “fundraising consultant,” or anyone else receiving any transaction-based bonus or commission in return for introducing or engaging an investor. You should always consult your …
An estimated 3.3 million Canadians suffer from insomnia, which is about one in every seven people. Insomnia is defined as having difficulty falling asleep or staying asleep, even when you have the chance to do so. Because of this, people who have insomnia can experience fatigue, low energy, difficulty concentrating, and mood disturbances.
The nutrition of cannabis plants is a key factor that to a huge extent will determine the success of the harvest. Naturally, achieving a high yield of flowers is one of the principal objectives of every gardener, and a good way to measure the success of the grow. As a result the use of fertilisers in cannabis cultivation is pretty much ubiquitous, although there are still many growers unaware of the benefits of a healthy and active microbial life in the substrate.
To faithfully reproduce and accentuate the organoleptic characteristics (the aromas and flavours) of the cultivated variety, and to achieve a high cannabinoid content in the trichomes, are good indicators of a successful cannabis grow, and to achieve this, proper nutrition is absolutely indispensable.
All growing media needs microbial life for healthy plant development
Therefore, the type of fertiliser that we use, in addition to encouraging flower production, will also have a significant influence other aspects such as the quality and final aroma of the flowers, their cannabinoid content and even the speed of flowering and maturity.
It has been demonstrated that when cultivating cannabis with natural or organic fertilisers instead of chemical or mineral fertilisers (minerals) the plants will produce better quality buds, giving excellent results in terms of flavour and aroma as …
We have previously discussed blockchain technology and the effect it can have on the cannabis industry here and here. This post serves as a more detailed analysis of how blockchain can and may disrupt the tracking of cannabis from seed to sale, specifically within the new California adult use market.
Currently, cannabis businesses are spending significant amounts of money to implement track and trace systems compatible with Franwell’s Metrc. Metrc is a government-designed software that many states have elected to use, including California, that allows regulators to ensure that cannabis products are not being diverted to illegal markets. Cannabis products are given a radio frequency identification (“RFID”) tag, which licensees along the supply chain must input into their systems. This allows regulators to track the chain of custody of marijuana products. Under this system, however, licensees and regulators spend significant time ensuring compliant transfers.
Enter blockchain. In its simplest form, blockchain is a dispersed ledger. Transactions, or “blocks,” are added in a linear fashion, or “chain”, after they have been verified by other members of the blockchain as valid. All transactions on the chain are trackable to the initial entry. A blockchain platform can have various levels of supply chain information gathering, such as record keeping, tracking, assigning verifications, linking products together and sharing information.