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Dipping From The Same Pot. Federal Legalization Of Cannabis Will Shake Up Florida Structure

Florida is a fully vertically integrated state, and this has had some pretty massive impact on the way the legal cannabis market has grown in the state.

 

Florida, long thought known to have a Medical marijuana policy which would make sense have instead, implemented a system in which all cannabis companies are their own grower, processor, and distribution channels under one corporate entity with zero allowance for cooperation or subcontracting outside of some very special cases of outside products being licensed for production with one of the currently licensed Medical Marijuana Treatment Centers (MMTC, Florida’s term for these vertical cannabis companies).

Evidence of the system’s shortcomings can be found in a number of places and has permeated every corner of the “green rush” here.

Licensing – The first place to look for a clue as to the effects of a government-forced cartel system is in the market itself, based on the numbers available from the Florida Office of Medical Marijuana Use.

The numbers tell us two different stories: one of a stifled market with little incentive for innovation or growth, and one of an industry held back by regulations.

When looking at the effects vertical integration has had on the market itself, the most glaring thing is the limited number of licenses.

Florida started with only eight licenses, then approved four more, then another four, and eventually culminating in the 22 currently licensed operators.

Of those 22, only 13 are currently producing and dispensing products.

This is nearly four years after 71.3% of Floridians voted for Amendment 2, legalizing medical cannabis here in the Sunshine State.

This is fewer license operators than states significantly smaller, and newer to the legal market.

Vertical Integration has created a government-regulated monopoly virtually free from competition, entrepreneurship, and many of the jobs and opportunities normally associated with a growing industry.

Brian Vicente of Vicente Sederberg LLC said in an interview for Cannabis Business Times, “By mandating that anyone that’s allowed to do either of those activities needs to own both, you’re basically limiting yourself to rich people that can enter the market. I think that’s a negative thing in terms of promoting economic and racial diversity in this new industry.”

The point was further evidenced with the original licensure requirement of 30 years in business as a commercial nursery, which has since been ruled unconstitutional.

Product availability –

The second major effect that can be seen from these numbers is the lack of product availability and the slow rollout of normally available delivery methods.

Recreational Delivery Companies in Most States Deliver From A Local Dispensary.

Federal Legalization will allow delivery from Cannabis Depots where shipments

will be tracked into Depots from around the country. 

See our post on ComplyBag Technologies 

 

Florida started with only CBD available. When dispensaries first began opening a few months later they could only sell CBD over the counter and had to sell THC by delivery only.

For the first three years of legalization, Floridians were only allowed concentrates and tinctures. It took a lawsuit from Cathy Jordan to get Floridians the right to use whole flower cannabis, which also led to a near doubling of the market.

In case it didn’t jump out immediately, yes that said Florida was legal for three years before whole flower medication was available, and further cements the first downside by being the largest and most blatant constraint on the industry.

The industry was effectively kept at 50% of its capacity for the first three years.

Florida still has edibles only for those who seek Medical Approval for this delivery method and even faced a push this year by state legislator Gayle Harrell to cap cannabis products at 10% total THC.

                      As Of September 2, 2021

Limitations of vertical integration Outside of the industry in nearly every state. Cannabis titan MedMen has been one of the most successful marijuana firms to date, pushing the vertical integration model for the last several years.

In the last 18 months though, they have been among the hardest hit by a trend of market corrections, culminating in Interim CEO Ryan Lissack telling CNN that, “While vertical integration has been a big focus in the industry, our growing belief is that cannabis is evolving like every other consumer vertical: with a fragmented value chain and specialists at each layer.”

As other states are legalizing cannabis for medical and adult-use purposes across the country, Florida is still dragging its feet on things that should be a given when discussing medical marijuana.

As the major players nationally, and internationally, are moving away from the large mega-corporations and vertical operations, Floridians are still stuck with limited product options from a state-mandated oligopoly.

While there is nothing wrong with successful businesses diversifying into other segments of the supply chain, the evidence suggests that forcing this model onto the industry at large creates a stifled industry that lacks competition, small businesses, and the need for innovation. Specialization is the future, and it’s currently the one thing Florida lacks.

While the National Legalization undergoes it own legalization pains, we must look to states that have “moved the chains of aftermarket legalization”. In California, movement of cannabis products in the State and Subsequent Move to outlying areas are being utilized to help satisfy the recreational market. We in the USA who are interested, involved, curious and betting on the right way to proceed, need to take a step back and LOOK at The Bigger Picture.

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Cannabis CBD and Me    

 

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The Industrial Hemp Industry: An 18.6 Billion Dollar Market by 2027

Inspirational Technologies (2021)
“Misunderstood”
The Hemp Story


The Industrial Hemp Industry: An 18.6 Billion Dollar Market by 2027

 

 

The source cites, the “rise in usage of hemp seed and hemp seed oil in several food applications, increase in awareness regarding advantages of recreational hemp, and surge in demand for hemp-based beauty and personal care products drive the growth of the global industrial hemp market.”

However, complex regulatory structure for the use of industrial hemp hampers the market growth.

Department of Agriculture (USDA)

On the contrary, technological innovations are expected to create lucrative opportunities for market players in the future.”

lucrative opportunities?

Yes… a resounding yes. Industrial hemp has nearly

unlimited potential and the surface of that potential has only been scratched.

Much more remains to be discovered about the possible uses of the robust, multi-purpose substance.

Federal legislation in favor of hemp and many state approvals across the country have been a boon to the industry.

And with immense profits to be made, there is no doubt that companies in the industry, will benefit from it.

The hemp industry has evolved into an environment where the imaginations of creative scientists and inventors,

and business savvy entrepreneurs, will now be fully unleashed, leading to a cascade of innovations and surprising twists and turns.

Advanced technology in hemp will broaden product lines, increase efficiency, and boost production levels, ensuring ample funding for research and development for years to come. Technological innovation in the industrial hemp industry is already making a huge impact on several areas of the industry.

The number of consumer products made from hemp is already mind-boggling.

From personal care items to fuel, the list seems to be endless.

Hemp is here to stay and innovators will discover new ways to exploit the remarkable quality that has been known for years, Technological innovation will be the 

component to gain an edge in a highly competitive marketplace which will undoubtedly take the industry in some exciting and unpredictable directions.

From the grower to the manufacturer, and from the growing facility to the end consumer, technology is transforming the industrial hemp industry in unimaginable, riveting ways for everyone. For those outside the industry, the knotty question is, “How?” Well, according to the latest Allied Market Research Report, it’s the technological advancements in cultivation and machinery that are able to develop hemp plants more efficiently. These continual advancements are astounding, projecting the global industrial hemp market to “reach $18.6 billion by 2027, growing at a CAGR of 22.4% from 2021 to 2027.”

Just What Does $18.6 Billion Market Value Look Like ?

How much is 18.6 billion you ask?  

 

Well, you have come to the right place to learn all about 18.6 billion!
Let’s start with how you would write 18.6 billion with numbers only:
$18,600,000,000
And this is how you would write 18.6 billion with letters only:
Eighteen billion six hundred million
If you take apart 18.6 billion and turn it into millions you get:
18.6 billion = 18,600 million
If you type in 18.6 billion on your calculator, it may come out as a scientific notation of:
1.86E+10 (1.86 x 1010)
OK, enough of the basics. Now we will put 18.6 billion in the context of other things, so you can get a better idea of how much it really is:
Spending: If you had 18.6 billion dollars, you could buy 620,000 cars at $30,000/each or 93,000 houses at $200,000/each.
Travel: If you were to travel 18.6 billion miles, you could fly around the world 746,958 times or take a round trip to the moon 38,928 times.
Savings: If you could save $100,000/year, it would take you 186,000 years to save 18.6 billion dollars. If you could save $10,000 every single day, then it would only take you 5,096 years to save 18.6 billion.
Giving: With 18.6 billion dollars, you could afford to give every man, woman, and child in Canada $516.67.
Living: If you could live for 18.6 billion minutes, you would live until you were 35,388 years old.

Hemp may be the salvation in retooling America for greener, more sustainable domestic manufacturing. Inspirational Technologies is Committed to ” #HempMovesTheChains  #EnvironmentalHemp #ManufacturingHemp #PlanetHemp “

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New `1st Hemp USA News Exclusive ” 11/9/2021

Cannabis stocks rose Monday for the second straight day after a report by Marijuana Moment that Rep. Nancy Mace (R-S.C.)

 

is circulating the States Reform Act as a measure to legalize cannabis on a federal level.

 

Cantor Fitzgerald analyst Pablo Zuanic said late Friday the measure “significantly increases the probability of federal level marijuana reform” during the current term.

 

 

 

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Planting The Seeds of CDB . . .

An entire industry is being built around cannabidiol, or CBD,  

one of the many chemical constituents of the cannabis plant.

 

A message from the Founder of “Inspirational Technologies

      Inspirational Technologies – Steven Smith 2021                            In this Blog,                                             “Planting the Seeds of CBD . . .”,           we wish to Inspire those who are still waiting for the process of “Legitimizing the Claims of CBD” and “MOVE  the CHAINS” forward in the game of CBD. We have had patience, waited on government regulators and Pilot Hemp Programs to give framework to the farmers, cultivators and processing plants. Thank you for your participation, Steven M Smith, Owner/Founder, Inspirational Technologies.

 

Advocates of the compound say it confers all sorts of health benefits,

from mitigating the symptoms of depression and anxiety to treating Glaucoma,

 

 

It’s cropping up in protein powders, bath salts, makeup and even jelly beans.  

 

Medical Advisory Groups for Corporate Subsidiaries are critical for US FDA CBD Compliance

 

But scientists are still unsure of exactly what the benefits — and pitfalls — of CBD are. 

“Society has jumped way ahead of the science on this,” said Margaret Haney,

a professor of neurobiology at Columbia University Medical Center in New York.

Reported benefits have mostly been anecdotal, or they have come from studies involving animal models.

CBD isn’t well understood, nor have there been sufficient studies done in humans, she said.

 

 

Cannabis plants produce a group of chemical compounds called cannabinoids.

The best-known are tetrahydrocannabinol, or THC

(the so-called psychoactive component of the plant that’s associated with the marijuana “high”),

and CBD (a non-intoxicating component of the plant that doesn’t produce a high),

Hemp. Recently, Legal to grow and process for CDB.  

 

Florida Hemp 2019

 

 

Here’s what we do know: CBD can help treat some types of pediatric seizures.

Last year, the FDA approved GW Pharmaceuticals PLC’s Epidiolex for the treatment of seizures associated with two rare forms of epilepsy in patients two years of age and older.

But, to get to that point, GW Pharmaceuticals had to go through a long and rigorous drug-approval process to show the drug’s safety and efficacy through clinical trials.

This hasn’t been done with CBD for any other indication, until now.

While it’s true that CBD has shown promise in pre-clinical and animal trials in addressing a number of issues such as pain, anxiety, neuroinflammation and substance-use disorder,

there’s still not nearly enough peer-reviewed research available, said Ziva Cooper, research director of the Cannabis Research Initiative at the University of California, Los Angeles.

To truly determine the effects of CBD in humans, many further studies need to be done — studies with humans, she said. “Overall, we have very little real data on the therapeutic effects of cannabidiol,” she said.

As for those CBD-based skin products that are popping up on shelves and online, Columbia University’s Haney said she remains skeptical of their marketed benefits.

Many are diluted. It’s a question of both dosage and absorption, she said. “We have no idea how much CBD you would need to rub on your skin for it to have some kind of medical effect,” she said.

 The amount of CBD in a lot of marketed products — even ones that are meant to be taken orally — is so small that we can not make any therapeutic measures for the person using it, said UCLA’s Cooper.

In the few studies that have involved humans, doses were in the hundreds of milligrams, but most CBD-infused products contain much less than that,

which the company says can be used as a daily supplement and help “promote a calm sense of well-being,” it also notes on its website that such statements “have not been evaluated by the Food and Drug Administration.”  

CBD advocates were hoping laws around the compound might loosen up — or at least become clearer — after President Donald Trump signed the 2018 Farm Bill.

Mature Hemp Field Crop
Hemp Is Now A Viable Agriculture Phenomenon

 

The bill legalized hemp, a variety of the cannabis plant that contains no more than 0.3% THC.

December 2018 – The Farm Bill Legalized Hemp

But regulation of CBD, whether derived from hemp or not, is still largely under the FDA’s jurisdiction.

Since CBD is technically an active ingredient in an FDA-approved drug,

companies are not allowed to add it to food or drinks sold across state lines or to sell it as a dietary supplement.

 

Companies are, however, allowed to put the compound into beauty and skin-care products, as cosmetics are not subject to premarket approval by the FDA.

That could explain why drugstore chains like CVS and Walgreens aren’t worried about introducing CBD-infused topical products in their stores.

“People shouldn’t confuse availability with legality,” said former FDA regulatory counsel Jonathan Havens.

The agency has cracked down on unfounded claims, but it has limited resources and can’t get to everyone, so it is focusing mostly on companies making blatant health claims about their products, Havens said.

 

The FDA recently sent warning letters to Advanced Spine and Pain LLC, Nutra Pure LLC and PotNetwork Holdings,

saying the companies violated federal law by advertising their CBD-containing products as potential treatments for ailments including cancer, Alzheimer’s disease, arthritis and more. 

“The FDA wants to protect consumers. The last thing it wants is companies out there marketing CBD products and claiming health benefits without any clinical research to validate that,”

said Rob DiPisa, co-chair of the Cannabis Law Group at law firm Cole Schotz. 

US FDA Fight to Regulate Cannabis (Hemp) More Research is Needed

At the same time, requiring anyone who wants to put a CBD-containing food or beverage on the market to go through the clinical-trial process would “chill the whole CBD market,” he said.

  The FDA is aware of the public’s interest in CBD. Former FDA commissioner Scott Gottlieb put out a statement outlining steps to figure out a framework to lawfully market cannabis

and cannabis-derived products, including  public hearings and formed an internal working group to look into the issue.

DiPisa said he hopes the hearings last  May 2021 will provide more clarity for him and his clients.

“Everyone is running blind right now,” he said.

 

 

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Cannabis Global Selects Oakland, CA for New Mushroom-based Psychedelics Infusion Research Initiative

 

Cannabis Global, Inc. , an innovation-oriented company investing in disruptive cannabis and hemp-related technologies,

is pleased to announce that it has selected Oakland, CA for the location of its new research initiative to develop methods

to infuse food and beverage products with naturally occurring psychedelic compounds found in many species of mushrooms.

Oakland was selected due to its track record of open-mindedness toward research into psychedelic compounds, such as psilocybin.

As announced in the Company’s release dated October 4,

Cannabis Global recently launched a new research initiative to develop novel methods to infuse foods and beverages with psychedelic compounds

found in many species of mushrooms, including psilocybin, psilocin, baeocystin, norbaeocystin, and aeruginascin, among others.

A major component of the program will be the development of new ways to infuse both the psychedelic compounds

and fungal components into derivative products to improve both bioavailability and taste.

Arman Tabatabei,

CEO of Cannabis Global commented,

“It’s an exciting time for those interested in the benefits of psychedelics as the citizens of California

have the capability to sign petitions to add an initiative to the 2022 legislative agenda to legalize

these potentially healthful compounds.

We certainly support such efforts and plan to conduct research to apply our food and beverage infusion expertise

from our years of work in the cannabis sector to this emerging marketplace.”

 

About Cannabis Global, Inc.

Cannabis Global, Inc. is a Los Angeles-based, fully audited and reporting Company with the U.S. Securities & Exchange Commission, trading under the stock symbol CBGL.

We are an emerging force in the cannabis marketplace with a growing product and proprietary intellectual property portfolio.

We are marketing and producing Comply Bag™, an innovative solution for cannabis storage, transport and tracking, and are the developer and marketer of the Hemp You Can Feel™ brand.

Our subsidiary, Natural Plant Extract (NPE), is a Southern California licensed cannabis manufacturer and distributor which licenses our technologies to produce edibles for the cannabis marketplace.

Cannabis Global has filed three non-provisional and multiple provisional patents for cannabis infusion and nanoparticle technologies and continues an active research & development program.

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Current State Of CBD and Cosmetics in the USA

Watching Florida's Stop Light on Marijuana

Although the current state of regulation for CBD is in-flux for supplement and food products, the outlook is pretty good for beauty, as long as companies are careful about where they source the CBD, otherwise adhere to the regulations governing the marketing of cosmetic products, and limit sales to states where the sale of such products is legal.

While CBD Infused Beverages and Food Remains with the FDA. Cosmetic Use Is An Open Market Soon To Be Saturated.

  CBD, or Cannabidiol, is one of many cannabinoids found in the plant species Cannabis sativa L., which, surprising to many, includes marijuana and hemp.

December 2018 – The Farm Bill Legalized Hemp

The 2018 Farm Bill defines hemp as any part of the plant Cannabis sativa L. with a THC concentration of not more than 0.3% on a dry weight basis, and removes hemp and hemp derivatives from Schedule I of the Controlled Substances Act. CBD derived from a marijuana plant, or from a hemp plant with a THC concentration of greater than 0.3%, fall outside the statutory definition of hemp and therefore remain controlled substances. In order to legally market beauty products containing CBD, companies must be able to establish that the ingredient is derived from a hemp plant, grown by a licensed grower, and contains 0.3% or less THC. The United States Department of Agriculture, the regulatory agency responsible for implementing the 2018 Farm Bill, issued a legal opinion confirming that states may not prohibit the interstate transportation of hemp or hemp derived products that satisfy these requirements.

Department of Agriculture (USDA)

The Farm Bill does not, however, supplant the Food, Drug and Cosmetics Act (“Act”). Under the Act, companies that want to market beauty products containing CBD cannot claim the products, or the CBD, is intended to affect the structure or function of the body, or otherwise treat, mitigate, or prevent a disease. In addition to these Federal regulatory requirements, companies must also adhere to the laws of individual states, which have the right to restrict or limit the sale of CBD products within their jurisdictions. Thus, before shipping a CBD beauty product, companies should confirm the sale of such products is legal in the target state.

Nikki Fried -Florida Agriculture Commissioner 2021

  Why is it crucial for CBD brands and ingredients providers to be completely up to date on the fast-changing regulations? The fast-changing regulations really have to do with growing and licensing requirements for hemp growers. The regulation of what constitutes legal hemp is pretty much set by the 2018 Farm Bill. Since CBD derived from hemp is the only ingredient that has been legalized by the Bill, it is critical for companies and ingredient suppliers to be sure (1) the hemp is sourced from a licensed grower, and (2) the THC content is 0.3% or lower.

3rd Party Certificates Of Analysis (COA) determine what is in the sample tested. Look for the Good and the Bad. *Pesticides, Heavy Metal or Added Toxins. COA’s are a necessity.

  Products that fail to meet these two requirements fall outside the statutory definition of hemp, fall within the definition of marijuana under the Controlled Substances Act, and are thus illegal.

Florida Hemp

Companies interested in marketing and selling CBD cosmetic products will gain insights into the regulatory landscape surrounding the marketing of such products, and in particular, have an understanding of the FDA’s and FTC’s current thinking and approach to regulating the products. Research strategies companies can follow to avoid attracting the attention of regulators and consumer lawyers.   What is the number one question that CBD beauty professionals have? There are really two questions to answer. The first is can we legally sell cosmetics containing CBD? The second question is what can I do to protect the company from claims arising from the sale of CBD beauty products. As noted in response to question 1) above, the question of legality is somewhat straightforward. The question of protection is more complex, and involves the need contract with vendors, secure insurance coverage, and consider a myriad of other business considerations.

“Misunderstood”   The Hemp Story

  House Appropriations Committee to Consider Hemp Guidelines this Summer.

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Cannabis Global (CBGL) and Marijuana Company of America (MCOA) Applaud California Assembly Passage of AB 45 Allowing CBD in Food Despite Federal Red Tape

LOS ANGELES, CA September 20, 2021

Cannabis Global, Inc. (CBGL), an innovation-oriented company investing in disruptive cannabis and hemp-related technologies, and Marijuana Company of America (MCOA) today jointly issued statements concerning California’s Passage of Assembly Bill 45 (“AB 45”), which seeks to establish a regulatory framework for industrial hemp under the Sherman Food, Drug, & Cosmetic Law framework.

Governor Gavin Newsom (CA), who easily beat back a challenge to his leadership last week in a landslide recall election win, has already expressed strong support for AB 45.

Enactment of this legislation would resolve California state enforcement completely by deeming CBD safe for human and animal consumption and ending state prohibition of CBD products.

Moreover, full passage of the measure would open the door to the production and sale of CBD products in the state despite Federal regulatory barriers.

Cannabis Global Inc (CGBL)

 

Cannabis Global CEO Arman Tabatabaei stated,

“Without state cooperation, we believe the FDA would likely have trouble providing an effective regulatory framework for CBD in California.

AB 45 is a game changer for companies that market CBD products in the state. While important restrictions on manufacturing remain in place, this is unequivocally positive for any producer of hemp or CBD products targeting end-market consumers in California.”

Marijuana Company Of America (MCOA)

 

“This legislation represents a crucial step for a viable industry with tremendous value to offer California residents,” remarked Jesus Quintero, CEO of Marijuana Company of America.

“We have faith in the state’s democratic process and the system’s ability to produce a rational legislative result on this issue.

AB 45 opens the door to a world where California consumers can finally gain access to the CBD products they have been requesting for years.

And the Assembly’s passage of the bill is a big step in the right direction.

 

AB 45 has successfully passed California state legislative consideration

and now rests on Governor Newsom’s desk,

where it is widely expected to be signed into law over coming weeks.

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