On Monday, the state health department in Colorado tried to enact a ban on marijuana edibles citing an increase in accidental ingestion mainly by children and the problems many novice consumers have had with dosage as reasons why the ban should be enforced. Monday’s meeting of the state advisory group follows on a warning from the Denver police and a lot of media hype that always surfaces around this time of year concerning tainted Halloween candy. Since this is the first Halloween that recreational marijuana has been legalized, many parents are seriously concerned that cannabis-infused Halloween candy could find its way into children’s trick-or-treat bags.
In an article by The Denver Post, Dan Anglin, the chairman of the Colorado Cannabis Chamber of Commerce, claims that sales of infused edibles make up roughly 45 percent of the legal marijuana market in Colorado. The ban of edibles would have a significant impact for many of Colorado’s cannabis companies and also consumers. This issue was only one of 11 different proposals entertained by the state advisory board many others concerning packaging, labeling, and the overall appearance of the product.
Reports suggest that the meeting resembled a tennis match. One side would make a suggestion while the other side would quickly knock it down. This continued until the idea-well ran dry and both sides agreed to continue to disagree. However, the one thing that both industry and regulators do agree on is that a complete ban on edibles would be bad public policy. The risk of an edibles black market far outweighs the current challenges faced by the industry. The advisory board will meet again in mid-November with hopes that a solution will be reached by the state’s 2016 deadline.
Enforcing strict regulations on edibles is only one issue that the legal cannabis industry is still trying to overcome. In the world of legalized cannabis cash is king, but for most business owners this is not by choice but rather by force. Marijuana and the banking industry have been butting heads over the issue despite the government’s efforts to construct guidelines. This week, Meta Financial Group, based in South Dakota, pulled the plug on cashless ATMS located within recreational dispensaries. The company sent an email in January stating, “MetaBank, as a federally chartered bank subject to federal banking regulation, cannot sponsor ATM terminals that are deployed in any business establishment that distributes marijuana”. Despite the warning, the machines had remained online until this past Wednesday.
The Financial Crimes Enforcement Network (FinCEN) and the U.S. Department of Justice issued guidance earlier this year on how banks should deal with legal marijuana businesses. In August, Jennifer Shasky Calvery, the FinCEN director, stated that over 100 banks are reported to be working with at least one cannabis related company. However, she also mentions that over 500 accounts have been closed by banks due to this type of activity. In her remarks she says that, “From our perspective the guidance is having the intended effect,”. And while this may be true for the FinCen, from a cannabis industry perspective it may still be too early to tell if it is in the favor of, or against, marijuana businesses. There has been, however, a lot of positive signs from the DOJ as current US Attorney General Eric Holder announced that he will step down from office.
In an interview with Katie Couric for Yahoo global news, Holder stated that the current drug policies may have been set with “good intentions”, but they are clearly a violation of civil rights. Holder’s statements are not new. He has been a supporter of rescheduling marijuana for quite sometime. And while Holder proposes a very solid argument against the current drug policy, he said that the “jury is still out” in regards to his position for decriminalization on a federal level. In previous comments from April this year, Holder declared his stance on legalization to be “cautiously optimistic”.
Reschedualization is a debatable topic in the movement with many arguing for complete un-schedulization (aka legalization), however, the discussion of rescheduling marijuana by the US Attorney General is considered a victory and represents tremendous progress along the path to end cannabis prohibition.
The image of marijuana is also rapidly evolving. There is still a lot of talk about how “stoner”, “pothead”, and other negative stigmas are associated with the term marijuana, however, technology and social media are aiding in the transition to a cleaner image for the cannabis industry. Cheryl Shuman is the self-proclaimed “Martha Stewart of Marijuana”. She is the Executive Director of Moms for Marijuana, creator of the Beverly Hills Cannabis Club, and now, as the inaugural member of the Cannabis Advisory Board for Weedhire.com. It is websites like this and social-media-socialites like Cheryl Shuman who are creating a new brand of “stoner”.
WeedHire is the first app designed to match marijuana employers with job candidates. Earlier this month, the company was featured by HighTimes Magazine. The magazine published an interview with WeedHire CEO, David Bernstein, where he states that the biggest challenge facing legalization of marijuana on a state level is “perception”. He points out that, “There is an ongoing need to educate voters…This education can highlight the benefits both economically via tax revenues and jobs creation as well as socially with understanding why cannabis should be available to responsible adults.” Traffic to WeedHire has doubled since the site launched in May 2014 and recent positions posted by employers include government regulators, scientists, and medical professionals.
Although most marijuana companies understand the importance of an online presence, many are going a step further to connect with people via mobile apps. Highmark Marketing Inc., (CSE:HMK) (FRANKFURT:1HM) (OTC:HMKTF) a Canadian company located in British Columbia, has been able to implement an entire pipeline of products from R&D, to production, and now mobile technology. Press Release (10.15.14) Highmark Announces Entering Into and Closing of MobiWeed Asset Purchase Agreement and Issuance of Shares
In August, the company announced the hire of Dr. Dmytro P. Yevtushenko who was appointed the head of the R&D division. In September, BCBud Producers, Inc., a Highmark subsidiary, announced that the company had been notified by Health Canada that its application to become a LP has been accepted and is pending approval. This month, the company announced that it will be acquiring MobiWeed; a platform that will allow the company to interact directly with consumers and dispensaries.
MobiWeed hosts marijuana mapping software and educational content. It allows consumers the ability to search for nearby dispensaries anywhere in North America. With MobiWeed, dispensaries and pharmacies are able to create and update their own profiles giving them the capacity to directly inform visitors about the products they offer.
