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Penny stocks if you ask me are the kings and queens of manipulation.
Remember only a few days ago we were only a little above. .040.
Very interesting. Clearly shows the versatility of hemp.
When license comes out hopefully in our favor I will sell at a certain point and buy back and sell again. I will play the rise and dips.
No I am not doubting anyone but I do feel the license is the key. Even in the interview the Mayor said they are building and taking a risk without the license. I do feel once the license everything will fall into place. I still think license will come next week or thereafter.
Thank you for the information. I believe we should know as much as we can about a company. Too often we see the good and become unrealistic. Either not to sell at the right time or to wait so long the shorts have their say again. Thanks again for the info. I do believe we should hear something about hemp shortly.
I would imagine the approval is given after the inspection and several days later it becomes formal.If this is approved we are really on the map. First for the approval second for the legitimacy it gives to our company. Other companies are fight suspension and we receive approval from the highest agency in the country.
Industrial Hemp Could Take Root, If Legal Seeds Weren't So Scarce
by LUKE RUNYON
May 28, 2014 3:31 AM ET
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The hemp seedlings in Ben Holmes' warehouse in Lafayette, Colo. will be ready for harvest in about 50 days. Holmes says that during the peak growing season the little sprouts can shoot up several inches each day.
The hemp seedlings in Ben Holmes' warehouse in Lafayette, Colo. will be ready for harvest in about 50 days. Holmes says that during the peak growing season the little sprouts can shoot up several inches each day.
Luke Runyon/KUNC/Harvest Public Media
The most recent farm bill is allowing a handful of farmers across the country to put hemp, the non-psychoactive cousin of marijuana, in the ground.
Hemp plants look much like their cousin, marijuana, but lack the THC compound that gives users a high. Hemp fibers are used to make rope, clothing and car interiors.i
Hemp plants look much like their cousin, marijuana, but lack the THC compound that gives users a high. Hemp fibers are used to make rope, clothing and car interiors.
Luke Runyon/KUNC/Harvest Public Media
The bill allows small-scale experimentation with the plant. But despite the new law, many farmers say they're getting mixed messages from the federal government.
Jim Denny is one of more than 100 growers given the nod by the Colorado Department of Agriculture to start planting hemp seeds. On his farm in Brighton, Colo., just outside Denver, Denny is prepping for planting season. He recently converted his old vegetable garden into a plot to grow hemp.
Hemp is the same species as marijuana, but a different variety — one that lacks THC, the compound that gives users a high when smoked or ingested.
Hemp seeds are increasingly showing up in foods, and Denny says the plant's fibers can be turned into everything from clothing to rope to car interiors.
"The crop right now is sellable," he says. "I've already had people contact me on my website saying, 'We know you're growing stuff and we want to buy it from you already.' And we haven't even put it in the ground."
The recent farm bill allows farmers to start experimenting with hemp in states that have legalized the crop. The plant has been tightly controlled for almost 50 years.
During World War II, the U.S. was so hard up for hemp for use in rope on naval ships and on trooper's parachutes that the Department of Agriculture actually made a promotional film to encourage farmers to grow it. The film's title: Hemp For Victory.
Ben Holmes examines the hemp leaves on his plants. He says the plants get to be 20 feet tall.i
Ben Holmes examines the hemp leaves on his plants. He says the plants get to be 20 feet tall.
Luke Runyon/KUNC
But that was a long time ago, and today U.S. hemp seed is scarce. It's technically still illegal to import viable seed — it has to be sterile. So anyone with usable seed is suddenly very, very popular.
Ben Holmes is one of those people. He's the owner of Centennial Seeds. In his warehouse in Lafayette, Colo., emerald-colored hemp plants tower overhead.
This year, demand for hemp seed far exceeds the supply, and Holmes says he's been inundated.
"I get calls every day of every week of people who want to go into the hemp business," Holmes says. "When I let them know the seed isn't available, they really are sort of lost."
As a distributor, Holmes is in a great situation to actually get seed to farmers — except he doesn't have enough to go around. The Drug Enforcement Administration recently seized a shipment of Italian hemp seed to Kentucky. Holmes even admits he had to acquire some of his seed through nefarious means.
"It would just show up in the mail or by FedEx, or someone would come to my office and say, 'I'm a friend of so-and-so from [the] Czech Republic and he asked me to give you this,' and little bits of seed would come my way," Holmes says.
That level of intrigue is probably enough to scare off most large-scale crop farmers from hemp. The reality is, it's pretty tough to grow hemp in the U.S. right now, with limited seed stocks, legal roadblocks and nonexistent research.
Eric Steenstra, executive director of Vote Hemp, a group that lobbies for hemp legalization, is trying to temper expectations that hemp will be a savior crop for struggling Great Plains farmers. At least initially.
"There's no question in my mind that this could be a multi-billion dollar crop where we could see millions of acres, eventually," Steenstra says. "Is that going to happen in a year or two? Of course not."
But Steenstra says that with the plant's inclusion in the latest farm bill, it may not be too long before some of America's amber waves of grain get a little greener.
Luke Runyon reports from Colorado for KUNC and Harvest Public Media, a public radio reporting collaboration that focuses on agriculture and food production issues.
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Fitx and new board members are now becoming the new model for MJ stocks.
rowLife Strengthens Financial Management Core with New Addition To Its Board of Directors
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WOODLAND HILLS, Calif., May 27, 2014 /PRNewswire/ -- GrowLife, Inc. (OTC: PHOT), the recognized leader in specialty hydroponics and a provider of essential goods for indoor growers, today announced that financial executive Mark E. Scott joined its Board of Directors effective May 21, 2014. Mr. Scott has served as Chief Financial Officer and held board and secretary positions for several publically traded companies. Mr. Scott will help advise the company on strategic growth investments, financial reporting and governance.
"GrowLife needs to ensure it has the strongest financial controls in place that not only meet regulatory standards, but responsibly exceed them during this volatile time in the market," said Marco Hegyi, President of GrowLife. "Mark is a critical addition to the future of GrowLife, and with his guidance, we will strengthen and stabilize the Company's ability to work with the public market."
Mr. Scott has deep knowledge in all of the major aspects of finance with significant experience leading financial operations for fast paced growth companies in technology, consumer goods, telecommunication and mining sectors. He has built and managed financial teams in companies focused on high growth opportunities, and closed significant mergers and acquisitions over the past decade.
Mr. Scott also has an exceptional background in working on U.S. Securities and Exchange Commission (SEC) reporting and compliance matters. As a Board Member for GrowLife, his experience is expected to help expedite the return to active trading on a preferred exchange, and guide the Company's SEC reporting policies and procedures.
"The challenge of capitalizing on such market growth requires solid infrastructure and reporting systems to mitigate risks that are necessary to scale a company," said Mr. Scott. "The leadership team at GrowLife understands these challenges and, with my help, is reinforcing Company-wide financial controls to lead industry growth."
GrowLife continues to strengthen its SEC reporting policies and procedures, as well as improved internal controls following the trading suspension in April. Currently, the Company is voluntarily conducting an in-depth evaluation of the company's financial operations with assistance from independent counsel. The internal evaluation, and all new financial practices, is part of a larger effort designed to have the Company return to active trading on a preferred exchange.
About GrowLife, Inc.
GrowLife, Inc. (PHOT) (www.growlifeinc.com) develops, markets and deploys products and services addressing the needs of legal cannabis growing and retail operations, including hydroponic growing equipment and retail support software. The Company provides these solutions in our nationwide retail network, as well as online sites Greners.com, Phototron.com and StealthGrow.com. The Company also operates the political and social forum, Cannabis.org.
Cautionary Language Concerning Forward-Looking Statements
This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for GrowLife's products, the introduction of new products, the Company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in GrowLife's filings with the United States Securities and Exchange Commission. Examples of such forward-looking statements in this release include statements regarding future sales, costs and market acceptance of products as well as regulatory actions at the State or Federal level. For a more detailed description of the risk factors and uncertainties affecting GrowLife, Inc. please refer to the Company's Securities and Exchange Commission filings, which are available at www.sec.gov. GrowLife, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE GrowLife, Inc.
Copyright 2014 PR Newswire
More PHOT MessagesLatest Growlife Inc. (GM CE), PHOT Messages
OH WIZARD,please tell us,do you own shares here,or
bmoser412 • Tue May 27, 2014 5:01 PM (2 minutes ago)
What a ride.
Lombardi • Tue May 27, 2014 4:53 PM (11 minutes ago)
who woulda thunk it...8)
Rakos • Tue May 27, 2014 4:36 PM (27 minutes ago)
Not sure if its a run forest run
TheWizardOfPot • Tue May 27, 2014 4:12 PM (51 minutes ago)
Another good day here with PHOT! Trend should
UP Trend • Tue May 27, 2014 4:02 PM (1 hour ago)
Johnnys posted article is excellent. Shareholders are now looking for companies that have something going. Not the usual mj penny stock that contracts with another penny to trade stock and just give advice. This allows for the companies that have the best chance at being solid to lead the field. Go fitx.
Since all my analysis is news or when I believe news will come out what you mean by "nice consolidation."
Thanks for the info.
You are correct posting license will be a crazy week there is no doubt we are in for a rocket ride. How long who knows but definitely for a couple days at least. Thanks as always for your posts.
Thanks Johnny but I do believe we are doing all we can to comply with the aggressive posture re board directors. Thanks for the posts.
I think we need more news before license news. Would like to see some news on hemp, or up list. When do you think license will come, this week or within three weeks.
One thing that is very clear is the Regs a company must go thru. The compliance with the Regs has to be very expensive in an of itself.
I would like it to creep up but I would not be shocked if it went down a little. On the other hand no one wants to miss owning shares when the license comes out. So will see.
I would agree we have a very big market out there. Money by Fitx can come in from all directions.
Assuming licenses and other news, could run nice. Hard to say either way. This company has made tremendous in roads. After license how high do you think it will run?
I agree, but Johnny before we take over Rome and rebuild the palace, Licenses PLEASE!! Go Fitx
Great Article that explains quality medical people on the board.
That may be true but I do can not believe that they pick security risks. If you ask me some of these people who active police should not pass security tests.
Hopefully this issue will be taken care of in due order. But even the license will of itself increase the value of this company substantially. Secondly is not the prelicense inspection based on the building and if it is in accordance with the specifications? Where does it say the employees have to meet standards before approval. If you can find me the reg I would be very appreciative.
Which means if Fitx does get the license they are in a great position. How many applicants can conform to 300 pages and put up a virtual prison. If acquired puts Fitx in a great position, plus remember if they get import and export license and users in Canada grow slow they still have other options. I believe in that same article re Canada Regulations and applying for a license it did say some could get the license faster and the position 400 in line did not always make a difference. But Great if it is hard to get the license if we do we are better off. I can see why they make it stringent the whole purpose was to get rid of the recreational users. Thanks again.
I understand that the security will be former police. If that is the case I am sure the time should be shortened. Yes a company that has a license is a sure bet. You are right about security fitx does look like a mini prison. That has to be expensive itself. Thanks for the response.
Since the process is onerous a lot of companies may not be willing or able to afford the process. This could mean Fitx could place themselves in an excellent position if they get the license. Golbaldata I do not know the law in Canada but what could be more onerous then letting a company spend millions of dollars to put a building to onerous specifications and then not allowing them to get a license? Possible lawsuit? Also if you read the article about the lawsuit of growers for personal use you will see the judge said this will not interfere with the law being put into effect. I do believe the onerous part of the process caused Fitx to redesign their building. But I do believe we will get license in a relative short time. Thanks for your response.
Interesting Article:
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California Moves One Step Closer To Ending Medical Marijuana 'Chaos'
Posted: 05/24/2014 2:04 pm EDT Updated: 2 hours ago Print ArticleMEDICAL MARIJUANA
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MORE: California Medical Marijuana Regulations Marijuana Marijuana Ca Marijuana Medical Marijuana Ca Medical Marijuana California Medical Marijuana Bill California Medical Marijuana Rules Tom Ammiano Marijuana Medical Marijuana Regulations California Medical Marijuana California Marijuana
A bill that would provide order to California's muddled medical marijuana program cleared a major hurdle Friday, when the state Assembly's Appropriations Committee moved it forward for a full Assembly vote next week.
Authored by Assemblyman Tom Ammiano (D-San Francisco), the measure, AB 1894, would create uniform rules to govern the state's multibillion-dollar medical marijuana industry. Although California became the first state to legalize cannabis for medicinal use in 1996, the state has yet to establish a set of standards guiding the cultivation, production and sale of the plant, which has led to what Ammiano described to The Huffington Post as "chaos."
"I am optimistic that we can continue to work with all parties to finally create regulation that will satisfy all needs," Ammiano said in a statement Friday, "from federal law enforcement down to the very sick patients who depend on the health benefits only marijuana can provide."
California currently leaves it up to local governments to decide how they want to implement the state's medical marijuana law. As a result, some cities, like San Francisco and Oakland, have established clear-cut systems that dictate where dispensaries can operate and impose fees that directly enrich their coffers. Other places, like San Diego and Los Angeles, remain largely unregulated, with very little control over where pot-related businesses can operate.
LA, for example, has been called the "poster child of chaos" for the medical marijuana industry, after clusters of dispensaries began popping up in close proximity and doctors handed out medical marijuana prescriptions to anyone who complained of a headache. In 2012, the city council voted to ban pot shops outright, and the case has been winding its way through the court system ever since. Meanwhile, lawmakers in San Jose are in the process of considering a similar ban.
"Marijuana has never been regulated by the state as any other business," Ammiano told HuffPost last year after introducing similar legislation. "Cities and counties don't know what to do or what they can do. Police are unsure how to respond."
AB 1894 would create a division within California's Department of Alcoholic Beverage Control to regulate all medical marijuana-related entities throughout the state, from the farmers that cultivate the plant to the storefronts that sell it. The proposal would allow the agency to impose fees on marijuana businesses in order to raise revenue for the state, and local municipalities would also be allowed to impose additional taxes.
"Without regulation, there's no way to capture any of the income that could go toward our infrastructure or other worthy causes," Ammiano told HuffPost last month.
California's lack of statewide regulations over its pot program has left it vulnerable to federal interference, as the drug is still classified as a Schedule 1 substance (along with heroin and LSD) in the eyes of the national government. In 2011, a coalition of U.S. attorneys launched an aggressive crackdown on medical marijuana operations throughout the state under the guise that the industry had spiraled out of control. Since then, hundreds of businesses related to the drug have closed, and thousands of people have lost their jobs. Last month, the Drug Enforcement Administration raided several dispensaries in Los Angeles, and a pot shop in Mendocino, closed by federal authorities earlier this year, only recently reopened.
By contrast, the Obama administration has been less combative in states with more comprehensive regulations. Colorado, for example, has faced fewer DEA raids and has been allowed to implement its groundbreaking recreational, adult-use law largely in peace. Late last year, Attorney General Eric Holder indicated that the federal government would not intervene in states that had "strong and effective regulatory and enforcement systems."
"While statewide regulations won't change federal law, it does seem to be the case that states that have uniform, clear regulations are less likely to be interfered with by the feds," Tom Angell, the head of weed advocacy group Marijuana Majority, told HuffPost last mont. "It's very confusing in California right now: a patchwork of regulations city to city and county to county."
Ammiano has made many attempts to create statewide medical marijuana regulations over the past few years, but each piece of legislation stalled or was defeated by opponents who argued the measures didn't address key issues like the environmental implications of growing cannabis or the criteria for doctors to make recommendations to patients. He's confident his current bill addresses every concern and more.
"I'm cautiously optimistic," he told HuffPost last month. "People have seen that the more regulation you have, the less chaos you have."
Meanwhile, marijuana reform advocates believe a measure like Ammiano's is the key to paving the way for a law that would allow recreational use by adults in the state. Recent polls have suggested a majority of Californians support legalizing pot for recreational purposes, and Lt. Gov. Gavin Newsom (D) has joined an effort to place a legalization initiative on the 2016 ballot.
But first, "we need to show that California has the ability to regulate marijuana," Angell said. "This would help further demonstrate how tax revenue can be generated and put into needed programs."
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Interesting Article"
When Cannabis Goes Corporate
By IAN AUSTENMAY 24, 2014
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Inside the Cannabis Factory
Inside the Cannabis Factory
New federal regulations in Canada make way for the large-scale legal production of marijuana.
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Hershey stopped producing chocolate in Smiths Falls, Ontario, six years ago. The work went to Mexico, but the factory remains, along with reminders of the glory days: A sign that once directed school buses delivering children for tours. A fading, theme-park-style entrance that marks what used to be the big attraction — a “Chocolate Shoppe” that sold about $4 million of broken candy and bulk bars a year.
The once ever-present sweet smell of chocolate is gone, too. In the high-ceilinged warehouse, where stacks of Hershey’s bars and Reese’s Peanut Butter Cups once awaited shipment, the nose now picks up a different odor: the woody, herbal aroma of 50,000 marijuana plants.
Clinical, climate-controlled rooms with artificial sunlight house rows upon rows of plants at various stages of growth. In the “mother room,” horticulturalists use cuttings to start new plants. The “flowering rooms” are flooded with intense light 12 hours a day to nurture nearly grown plants in strains with vaguely aristocratic names like Argyle, Houndstooth and Twilling.
Photo
Marijuana plants grow under artificial sunlight in one of the many climate-controlled rooms at Tweed Marijuana in Smiths Falls, Ontario. Tweed is one of about 20 companies that are licensed to grow medical marijuana in Canada. Credit Dave Chan for The New York Times
The new owner of this factory, at 1 Hershey Drive, is Tweed Marijuana. It is one of about 20 companies officially licensed to grow medical marijuana in Canada.
A court ordered the government to make marijuana available for medicinal purposes in 2000, but the first system for doing so created havoc. The government sold directly to approved consumers, but individuals were also permitted to grow for their own purposes or to turn over their growing to small operations. The free-for-all approach prompted a flood of complaints from police and local governments.
So the Canadian government decided to create an extensive, heavily regulated system for growing and selling marijuana. The new rules allow users with prescriptions to buy only from one of the approved, large-scale, profit-seeking producers like Tweed, a move intended to shut down the thousands of informal growing operations scattered across the country.
The requirements, which went into effect in April, are giving rise to what many are betting will be a lucrative new industry of legitimate producers. The government, which will collect taxes on the sales, estimates that the business could generate more than 3.1 billion Canadian dollars a year in sales within the next decade.
“It’s just so rare that you have an industry that’s growing but which has a huge established market,” said Chuck Rifici, Tweed’s chief executive. “A year ago, if you asked me if I’d be working while looking at thousands of pot plants, I would never have thought that would be the case.” Before deciding to focus on the marijuana business, he worked as a financial consultant to technology start-up companies in Ottawa, less than an hour’s drive to the north.
Canada is not unique in transforming once-forbidden cannabis into a legal, or at least tolerated, proposition. The Netherlands has long allowed personal possession and cultivation of small quantities while allowing commercial sales through licensed cafes. Spain permits growing for personal use. Portugal has decriminalized possession of small quantities of all drugs.
In the United States, 20 states and the District of Columbia have legalized medical marijuana; both Washington State and Colorado have legalized recreational use with conditions.
But marijuana remains illegal under federal law, creating uncertainty; the federal government, for example, recently banned state-legal marijuana growers from using federal water on their crops.
Continue reading the main story
Canada’s across-the-board law, by contrast, provides a cohesive set of regulations, laying the groundwork for a group of companies to set up operations.
“That was really important for us as investors,” said Brendan Kennedy, chief executive of Privateer Holdings, a marijuana private equity fund based in Seattle that started Tilray, one of Canada’s new legal growers. “People talk about the Colorado model; people talk about the Washington model. I think someday they’ll talk about the Canada model. By creating a tightly regulated federal system, by creating a federal license, by making it difficult to navigate in and capital-intensive, Canada has attracted a different kind of player into this industry.”
Photo
Tweed Marijuana moved into a former Hershey’s chocolate plant which closed six years ago. Credit Dave Chan for The New York Times
‘Why Not Smiths Falls?’
For most of its recent history, Smiths Falls (population 9,000) was defined by two things: the 19th-century canal that passes through its center and the chocolate-
scented air. The Hershey plant, which had about 800 employees at its peak, was a vital part of the economy. Until a recent repainting, the town’s water tower featured the Hershey’s logo and declared Smiths Falls “the Chocolate Capital of Ontario.”
“It was a huge tourist attraction for the town,” Dennis W. Staples, the town’s mayor, said of the Hershey’s factory, which lured about 400,000 visitors a year. “They were without a doubt an excellent corporate citizen.” The company sponsored sports teams and hockey tournaments and helped underwrite a “chocolate and railway” festival each summer.
The relationship seemed so fixed — the factory had been there for more than 40 years — that Mr. Staples was a bit puzzled in February 2007 when reporters called asking for comment on Hershey’s plan to leave town. No one had told Mr. Staples. “Probably not the best way to communicate to the mayor,” he said.
Hershey shut down its conveyor belts in 2008. But that was just the beginning of the bad news for Smiths Falls. A year later, the province of Ontario closed a nearby home for up to 2,650 developmentally disabled adults. Stanley Tools, an industrial company, left, as did two other American manufacturers. And a portion of the Canadian Pacific Railway’s old transcontinental line, for which Smiths Falls was a regional hub, was ripped up. In all, about 1,700 jobs vanished, according to Mr. Staples.
At first, Hershey promised to help the town find a new business to take over the plant. A flavored-water company expressed interest but couldn’t get the money together. In 2012, Hershey sold the plant to a holding company controlled by the Omnicom Group, the ad-agency giant. The new owner inquired about demolition permits last summer.
Around the same time, Mr. Rifici, who lives in Ottawa, showed up in Smiths Falls.
Mr. Staples and the town council were supportive. They believed that Tweed would help stem, even if just a little, the outflow of jobs and investment.
“If it’s going to happen somewhere in Canada, why not Smiths Falls?” Mr. Staples said. “It’s an opportunity to be part of an industry that’s sanctioned by the federal government,” he said. “It’s going to create 100 jobs.”
The mayor also had a personal reason. When his younger brother was dying from colon cancer 11 years ago, marijuana was the only way he found relief from his pain.
Photo
When Hershey departed, hundreds of jobs were lost, a major blow to the town of Smiths Falls, which has a population of about 9,000. Credit Dave Chan for The New York Times
Despite the warm welcome, Tweed has had to overcome the stigma of a once-illicit business. Mr. Rifici said the factory owner wouldn’t lease the plant to a start-up focused on marijuana. So Mr. Rifici and his business partner Bruce Linton had to form a small investment pool to buy the plant for an undisclosed amount.
Continue reading the main story
Even once in the building, Mr. Rifici said it was impossible to get a bank loan to buy equipment. Initially, Tweed raised money from private investors. More recently, the company has tapped the public markets for 15 million Canadian dollars by issuing stock.
Other licensed marijuana-growing operations have faced similar impediments. When Privateer decided to start Tilray, for example, Mr. Kennedy crisscrossed Canada to find the right spot. It was apparent, he said, that Privateer would hit resistance in many areas. Illegal growing operations had attracted widespread negative publicity for destroying rental houses with mold and creating fire hazards with their lighting systems.
In Nanaimo, British Columbia, Mr. Kennedy found economic development officials who eagerly courted Tilray. The city was looking for new businesses to offset a gradual decline of the forestry and fishing industries, the region’s historical economic base. The officials introduced local zoning bylaws that made it easier for the medical marijuana industry to operate.
Tilray has since bought a building for $3.5 million and spent $17 million to renovate it. The company employs 65 people, with plans to increase that number to 100. “One hundred new jobs in a community of less than 100,000, that’s a big deal,” Mr. Kennedy said.
Still, he said it took a while to find a bank that would deal with a marijuana grower. The Royal Bank of Canada eventually agreed to take Tilray’s account and to process its credit card transactions.
Nor has Tweed won over everyone in Smiths Falls. Like many small, blue-collar towns in rural North America, it has an illegal-drug problem, mainly crack cocaine and marijuana.
Darlene Kantor, 50, works as a building manager, and she says she is thrilled that Tweed came to town with its jobs and millions of dollars of investment. “But my main concern is: Is it going to make the illegal drugs more rampant?” she said.
Some are more skeptical about whether Tweed will be able to provide many jobs. “They were talking about creating jobs and such, and it’s not going to, it’s not going to do anything,” said Andrew Brinkworth, 18, outside the downtown Tim Hortons. “A lot of people here have criminal records, and they’re not going to be able to get a job at the plant if they have a record.”
A 300-Page Application
Photo
Chuck Rifici, chief executive of Tweed, at a vault where marijuana is stored after it is harvested and while it is waiting to be packaged and shipped to clients. Credit Michel Comte/Agence France-Presse — Getty Images
Dressed in a casual shirt and slacks, Mr. Rifici, 39, is built from an entrepreneurial mold. His fast speech and seemingly inexhaustible enthusiasm appear to be byproducts of pitching start-up ideas to investors, or anyone who will listen, for two decades.
His early interest in the Internet came from playing simple, text-based games. “Slaying virtual dragons with someone from Australia from my computer in my parents’ basement in 1991-92 was eye-opening to how the Internet would fundamentally alter how we lived,” he said. “So I had to get involved in some way.”
In 1995, during his third year of computer engineering studies at the University of Ottawa, he decided to start an Internet service provider. He sold the business in 2003 for 1.1 million Canadian dollars ($1 million) to a larger competitor, Cybersurf, where he became chief financial officer. Over the next two decades, he helped start a dozen tech companies.
His interest in politics indirectly inspired his marijuana business. Mr. Rifici, who volunteers as chief financial officer of the Liberal Party of Canada, one of the three main national parties, closely tracked the evolution of marijuana laws.
In October 2012, Health Canada, the federal agency responsible for drug controls, published a long, technical list of proposed reforms. One thing caught his eye: Under the new approach, customers could buy only online or through call centers, types of systems that his Internet businesses had operated.
Continue reading the main story
But his background didn’t prepare him for the regulatory strictures of the medical marijuana business. Accustomed to developing start-ups on the fly with little capital, Mr. Rifici and Mr. Linton, another Ottawa entrepreneur who is Tweed’s chairman, underestimated the money they would need by a factor of three, largely because of the government’s regulatory demands. The application ran 300 pages, not including attachments. And before they could even submit applications, Tweed and other growers had to secure sites for their operations and obtain all local permissions. Applicants who passed the initial vetting then had to pass a final, two-day inspection.
The requirements are significant. Growers must have sophisticated carbon filtration systems to prevent the smell of marijuana from wafting outside. They must maintain high-security measures like biometric thumbprint readers. Employees need to pass rigorous security checks, conducted by the Royal Canadian Mounted Police, which take four to six months.
“If I knew how much regulatory overhead there would be from the beginning, I would have probably been just as excited about the industry,” Mr. Rifici said. “But I might have thought that I might not be able to get there.
“Nothing like a bit of ignorance to allow you to move ahead.”
The red tape was part of an effort to reform Canada’s initial approach to medical marijuana. In court filings, the government suggested that the old system had become little more than a legal veneer for recreational growers, with a significant amount of marijuana making its way to illegal operations. Health Canada said users, on average, grew enough marijuana to roll 54 to 90 cigarettes a day, far beyond what they needed for personal use.
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Mayor Dennis W. Staples and the town council were happy to have Tweed move in. Credit Dave Chan for The New York Times
“There was big, big diversion going on,” Brent Zettl, the chief executive of Prairie Plant Systems, the company that grew and distributed the government-supplied marijuana under the old system. The company is now among the newly approved growers. “They ducked behind legitimate patients and used them,” he said.
Trying to Convince Doctors
Walking the vast, 425,000-square-foot factory, Mr. Rifici talks animatedly about Tweed’s next steps. Just behind the new entrance of glass and shiny stainless steel, he has carved out space for a gift shop. He also hopes to lure a craft brewer into the unused portion of the factory. He wants to make 1 Hershey Drive a destination for tourists again.
Tweed is taking a subdued, almost artisanal, approach to its branding, avoiding the Cheech-and-Chong vibe of some rivals. Many of its marijuana strains are named after fusty fabrics like tweed, as well as people and places associated with such clothes. The Herringbone strain is supposed to help with depression. Bakerstreet is used to treat anxiety. Donegal is promoted as a pain reliever.
But the industry faces an uphill battle, as prominent doctors, researchers and even the Canadian Medical Association are advising against prescribing marijuana at all. Marijuana, they say, has not been through the testing and approval process required for other pharmaceuticals.
Dr. Mary-Ann Fitzcharles, a rheumatologist and professor of medicine at McGill University in Montreal, was the lead author of a widely publicized paper recommending that, without clinical evidence, marijuana should not be prescribed for rheumatoid arthritis. About 65 percent of users in Canada under the old system said they suffered from that condition. She compares the medical claims for marijuana to those once made for tobacco.
“I don’t think any physician today would say: ‘I suggest you take up smoking cigarettes to deal with your anxiety,’ ” Dr. Fitzcharles said.
So Tilray, Prairie Plant and Tweed are creating sales teams to persuade doctors to prescribe marijuana. Tweed’s chief medical adviser, Dr. John Gillis, an emergency-room and chronic-pain doctor in Dartmouth, Nova Scotia, is working to develop best practices for prescribing marijuana. Christopher Murray, who worked with a Canadian agency that evaluates new drugs and medical technology, leads a “medical education and outreach” group for Tweed.
A Fine Legal Line
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When Tweed shipped its first two orders directly to customers on May 5, about half of the company’s management watched, partly for ceremonial reasons but mostly to make sure that its elaborate, government-mandated inventory-tracking system worked. Employees weighed the total inventory before doling out the shipments onto smaller scales calibrated to 0.01 gram. The marijuana was dropped into boxes bearing Tweed’s logo and then, to meet government requirements, vacuum-packed into odor-blocking bags. Then came a final check on the scales before the two parcels left in standard courier pouches that did not bear Tweed’s name.
As with many in the new industry, Tweed repeatedly cites a Health Canada forecast suggesting that the user base will grow to more than 400,000 from about 40,000. But some analysts wonder how the industry will reach such levels. Mr. Zettl is one of the few players who acknowledges that many buyers will probably be recreational users with sham prescriptions.
Like most people in the medical marijuana trade, Mr. Rifici rejected suggestions that the industry was ultimately counting on the introduction of an open, legalized market. But there is such a possibility. Justin Trudeau, the leader of the Liberal Party, has vowed to legalize marijuana if he takes power in elections scheduled for next year, and polls suggest that the idea has widespread support.
Mr. Rifici, speaking over the drone of dehumidifiers in the production facility, said that “the difference between medical marijuana and nonmedical marijuana is one of legislation.”
“And at the end of the day,” he added, “our product is essentially high-quality marijuana under a medical platform.”
A version of this article appears in print on May 25, 2014, on page BU1 of the New York edition with the headline: When Cannabis Goes Corporate. Order Reprints|Today's Paper|Subscribe
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Well I agree there are numerous aspects to any company. Having a great product and being able to market it are two different things. Just look at ESPH great product never able so far to translate it into sales. But I do agree put are willing to invest 1000 or more in a company that has potential and that in the beginning will make the price go up. Whether any company is successful really is how it plays out down the road. But I do feel for the price fitx is an excellent choice to invest in and play wait and see. You are correct.
Certainly thank you for taking the time and giving a rather elaborate analysis. But let's assume your are correct the alert by the SEC could still have longevity in its effect meaning eventual it would hurt investments in MJ. On the other hand I felt Phot and Cann did hurt us, but you chart argument is convincing. Perhaps at this juncture you are correct.
Are you talking about the people who smoke it for pleasure!!! It appears otherwise in corporate land the trend is up.
If you are an authority on a subject and your on a board it is a big deal to potential investors. There are probably Experts on boards in companies that are private. The fact they do not sell stock makes it no big deal!!! The statement answers itself.
The complaint was it was broad based and hurt all shareholder value meaning value in companies that did nothing wrong. Then if you read on he pointed JP Morgan etc and said why don't they get suspended for 10 days. Fraud yes but not a blanket letter which will have a chilling effect on all investments, and investors. Makes sense thanks for the posts.
John was referring to the suspensions hurting the shareholders and not the people causing the fraud who should be punished. Secondly John talked about shareholders complaining about companies and fraud and stated his group was now preparing a whistle-blower claim. Once again we are at the Forefront not the back end or the target with John's letter. Thanks for your posts.
Making a valiant effort. Monday holiday. Tuesday let's see what PR they come up with. Also market will have more time to absorb the news and what it means.
Also harder to convince because we have a legitimate board. If we are involved re SEC because of MJ companies committing fraud it is because as we can see from John we are at the forefront of Turning Them In. A position to be in.
Your right they do not want the image or the problems with the Bar because they represent a bunch of Fraudulent pot dealers. Yes these firms may represent white collar crime but certainly don't want to be a part of it. Good Posts
Performance of Cannabis Sector Stocks Tied to New Ventures, Acquisitions and Identifying New Verticals for Marijuana Industry Growth
8:30a ET May 23, 2014 (PR NewsWire) Print
Market news updates and commentary for emerging companies in the Cannabis Sector aimed at growing worldwide brands, acquiring resources and developing new solutions as the industry continues to evolve at a rapid pace: Cannabis Capital Corp (OTCBB:CBCA), Hemp, Inc. (OTC: HEMP), Medbox, Inc. (OTC: MDBX), Medical Marijuana, Inc. (OTC: MJNA) and Creative Edge Nutrition, Inc. (OTC: FITX)
Creative Edge Nutrition, Inc. (OTC Pink: FITX) recently announced that it has retained the leading national law firm Thompson Hine LLP as its corporate counsel. Established in 1911, Thompson Hine has offices in Atlanta, Cincinnati, Cleveland, Columbus, Dayton, New York and Washington, D.C. The firm has been ranked among the top four in the country for "Value for the Dollar" and "Commitment to Help" by in-house counsel, and among the top ten firms for client service excellence, according to The BTI Client Service A-Team: Survey of Law Firm Client Service Performance. Thompson Hine serves premier businesses worldwide. "We are delighted to be working with Thompson Hine ," commented Bill Chaaban, President & CEO. "The firm has been recognized in the top 1% of law firms nationwide by in-house counsel for innovation for two years in a row and we are proud of our association with them. Given their business-oriented approach, we look forward to sculpting a framework based around our highest priorities which include our corporate governance practice, future financing activities and high quality counsel on our corporate business objectives. We look forward to working together to strengthen our public company infrastructure and to create realizable returns for our shareholders."
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No one her believes Bill has to study Moral Theology to lead this company. But he does have to pick the right people. I believe he has. Secondly he realizes US MJ now is treacherous, because of the Federal Law. However, he has positioned Fitx to take full advantage when it does become legal re Federal Law.
I do not believe someone who the article says is a leader in getting NIH grants and who worked on two patented drugs would lend his name and reputation unless there was something about the company he liked, like the possibility of getting grants from the NIH. First of all everyone is in it for the money me, you other shareholders. But you cannot deny the quality of the board picks. Dr. Felten as I found out by calling the Deans office at Seton Hall was there for three years.
No doubt we will have a new high. Everything rest on the license. Also I cannot believe some one like the newest appointee to the board would join if this company did not have a clear shot at the license. Pressler any idea on the high after approval and a barrage of media posts.