MEDICINE MAN TECHNOLOGY NEWS

California Has Legalized Recreational Marijuana with Prop 64

Medicine Man TechnologiesCalifornia Has Legalized Recreational Marijuana with Prop 64 is excited to announce that California has legalized recreational marijuana by passing Proposition 64. With 56% of the vote, the ballot measure enables the state to regulate and tax how legal pot is cultivated, transported and sold for adult recreational use.

This represents a huge victory for those of us in favor of sensible marijuana laws and a big turnaround from the 2010 election where a recreational pot ballot measure was defeated in a 53.5% to 46.5% vote.

At this point, Californians can possess and grow marijuana legally, however, the state has until January 1, 2018, to begin issuing retail licenses. So, there will be a bit of a wait before you can buy legal pot at your local retail establishment. At least another year will likely be needed to develop the infrastructure required to properly regulate all aspects of California’s budding recreational marijuana industry.

For now, here’s what you need to know now that California has legalized recreational marijuana:

  • Adults 21 and older can legally possess up to an ounce of marijuana and grow up to six plants. Grow rooms must be secure and closed from public view.
  • Driving while impaired by marijuana remains illegal.
  • Commercially cultivated marijuana will be taxed by the state at $9.25 per ounce of flower or $2.75 per ounce of leaves. A 15% excise tax (on top of standard sales tax) will also be applied at the retail level. Cities and counties may also impose their own taxes.
  • Tax revenue will be primarily used to cover running the new program. It will also fund youth programs focused on drug education, prevention and treatment. Cleanup and remediation of public land damaged by cultivation will be funded, as well as training for law enforcement and other public safety programs related to regulation of legal marijuana.
  • You will not be allowed to smoke marijuana in public places or where state law already prohibits tobacco smoking. No smoking on the sidewalk, in bars, or within 1,000 feet of schools and other places where children are present. You will be subject to a fine.

Overseeing all licensed non-medical marijuana cultivators, manufacturers, testing facilities, distributors, retailers, and microbusinesses will be the Bureau of Marijuana Control inside California’s Department of Consumer Affairs. They will be responsible for governing all labeling, packaging, advertising, testing, and tracking of marijuana.

Stay tuned for our next update on where else marijuana was legalized during the November election. And if you decide to start your own commercial cannabis enterprise now that California has legalized recreational marijuana, our consultants at Medicine Man Technologies are here to guide you through planning, launching and operating a successful business. We’ve had a close eye on the new laws and will work with you to ensure compliance.


The Secret to Starting a Successful Commercial Cannabis Enterprise

The Secret to Starting a Successful Commercial Cannabis EnterpriseThe legal marijuana industry has come a long way in a very short time. And savvy entrepreneurs, even venture capital companies, see this emerging market as their next big money maker. Why? In a report published by ArcView Market Research, the industry is projected to generate a massive $21.8 billion in total annual sales by 2020.

The Current State of the Industry

According to Gallup polls, backing for full legalization has climbed from 12% in 1969 to 25% in 1995, and now 60%, firmly crossing into the majority.

Right now, twenty-five states and the District of Columbia have laws legalizing marijuana in some form, either adult use (also know as recreational) or medical. It’s also on the ballot in 9 states for a November vote. California, the first state to legalize medical marijuana, is one of these states. Advocates of recreational marijuana hope to succeed after suffering a 53.5% to 46.5% defeat in the 2010 election.

As for sales, ArcView reported an increase of 17% in 2015 over 2014, to $5.4 billion. And by the end of 2016, sales will likely grow another 25% to $6.7 billion. Calling it a “green rush” is an understatement, and there’s a lot of money to be made if a company has the ability to navigate an industry fraught with regulations and pitfalls.

So, how do you capitalize on this unprecedented market opportunity? Many find that partnering with a cannabis consultant is the surefire way to succeed.

How Important Is a Cannabis Consultant?

Many entrepreneurs have gotten their commercial cannabis enterprise off the ground on their own. If you were to decide to go this route, you’ll face licensing and legal hurdles, ongoing scrutiny by state regulators and the IRS, as well as delays caused by a trial and error method of setting up operations.

To streamline the start-up process, another other option is to partner with a cannabis consultant. Their experience can help you plan, launch and operate a highly successful medical or adult use cultivation, processing or dispensary operation – all without the headaches.

While raising enough capital and securing licenses are well-known obstacles, that’s just the start. Here are just a few other issues that commercial cannabis enterprises face today:

  • The industry is highly regulated by local laws and all aspects of the business will be scrutinized.
  • Because it’s illegal at the federal level, dispensaries are cash-only, requiring security logistics.
  • Due diligence is required when hiring employees, bringing on investors and cannabis cultivation.

The Role of a Cannabis Consultant

An experienced and knowledgeable cannabis consultant will be able to help you at every step, from planning and licensing, to hiring and training the right staff, ensuring consistent cultivation, and staying in compliance with state rules and regulations.

The right cannabis consultant will bring a proven, turn-key business model to the table, enabling you to produce a quality product via cost-efficient production methods. The model should be risk-averse and reduce your overall exposure. And it should allow you to recoup your investment while continuing to be competitive in a quickly evolving marketplace.

For current owners of a commercial cannabis enterprise, a consultant can play a key role in improving overall profitability. They should be able to customize a plan that aligns with your goals and meets your unique needs, helping you improve yields, consistency, quality, and efficiency.

Below is a quick checklist of what it takes to open a fully compliant, medical and recreational cultivation and dispensary operation. When meeting with a prospective consulting partner, be sure they have the ability to guide you through each of these areas, using proprietary approaches that maximize outcomes.

Planning Your Operations

  • Business plan/financial guidance
  • State application support
  • Facility layout/design
  • Cannabis cultivation
  • Operations planning
  • Hands-on cultivation training
  • Standard Operating Procedures

Launching Your Business

  • Facility design and build-out
  • Guidance in hiring
  • Hands-on staff training
  • Employee documentation/handbooks
  • Inventory control
  • Daily operations best practices
  • Managing a cash-only business
  • Security logistics
  • Daily procedures, open to close

Ensuring Your Success

  • Hands-on staff training
  • Patient/customer record keeping
  • Ongoing guidance/support

Choosing the Right Marijuana Consultant

Let’s recap. You’re looking to grab your share of a lucrative emerging market. You now understand the need for a cannabis consultant, as well as what role you can expect them to play in your business.

Now, here’s the most important part – finding a consultant you can trust.

They will be helping you make decisions that could have a dramatic effect on your business. Your first rule of thumb is to be wary of anyone that promises you the sun, moon and stars. Just like any other business, a commercial cannabis enterprise takes work and focus. If their claims of easy money sound too good to be true, they probably are. Don’t fall for it.

Along with being able to provide a solid plan and guidance through all of the areas listed above, your cannabis consultant should possess the following:

  • A deep understanding of this emerging industry, including state-specific laws and regulations
  • A proven track record and positive reputation, both in and outside of the industry
  • The ability to deliver quantifiable results that meet or exceed original expectations
  • A belief in open communication and a hands-on approach to partnering with you

Be sure to do your research, check references and have a conversation with prospective consultants. Because you’re going to be working closely with them on a long-term basis, even personality and rapport should be factors in your decision.

Are You Ready to Take the Next Step?

Since 2013, the legal marijuana industry has grown by an extraordinary $5.2 billion. And as both medical and adult recreational usage clear hurdles with voters, increasing competition for a stake in tomorrow’s billions will require cannabis entrepreneurs to optimize every facet of their business from day one.

This is where Medicine Man Technologies, a full-service cannabis consultancy, excels. As a publically traded cannabis company (OTCQB: MDCL), we work with groups who have the resources, connection and desire to enter the market but lack the technical expertise to plan, launch and operate a successful and fully-compliant commercial cannabis enterprise. We also offer our proprietary Cultivation Max™ services to help existing operators improve yields, consistency, quality, and efficiency.

If you’re looking to break into the market, Medicine Man Technologies is here to guide you.


Medicine Man (MDCL): A Leading Indoor Cultivator

There is certainly no wrong way to cultivate cannabis, as anyone growing cannabis plants in their basement can attest. But, there’s definitely a right way to cost-effectively grow high-quality plants. Expert cultivators optimize key performance indicators like pounds per light, grams per watt, or grams per square foot of flower canopy, since utilities and labor tend to be the most expensive component of any indoor grow operation.

Medicine Man Technologies Inc. (OTCQB: MDCL) provides consulting services covering all aspects of cannabis cultivation for both the newly minted operator in a state just coming online to an existing cultivator wishing to improve their overall efficiencies as well as outcomes. The company’s expert team has experience in a wide variety of cultivation methods making it an excellent solution for most any operation.

In this article, we will take a look at how the company is positioned to solidify its lead in the cultivation space with its pending acquisition and the launch of a new service called Cultivation Max.

Optimizing Cultivation

There are a fixed number of variables to manage when it comes to cultivation, including but not limited to genetics, nutrients, cultivation methods, pest management, environmental management, harvest methods, and labor. Indoor cultivators generally achieve five or six harvests per year, while greenhouses might have three or four harvests per year, and outdoor cultivators would typically have only one harvest per year.

The best indoor grow operations can achieve two or more pounds per light, one gram per watt, or 50 plus grams per square foot of canopy per harvest cycle. Often times, these are levels that professional grow operations can achieve with a significant investment in the right technologies and personnel to control for the aforementioned variables. Exceeding these metrics might require a significantly greater investment in new technologies that could increase the payback period.

A Better Solution

In August, Medicine Man Technologies Inc. announced an agreement in principle to acquire Pono Publications Inc. and Success Nutrients Inc. The acquisition would include the Three A Light™ cultivation publication that has sold more than 800 copies at $500 a piece. By the end of the year, Three A Light™ plans to release its ‘Professional Grade’ guide that will be sold exclusively to Three A Light™ and Medicine Man Technologies licensed grade clients.

The new cultivation protocol pioneered by Three A Light™ has already achieved documented yields in the 125 grams-per-square-foot of flower canopy per harvest range and is deployable in both greenhouse and indoor-based cultivation facilities. In terms of the aforementioned key performance indicators, that translates to about three pounds per light over a 32 square foot table compared to the two lights traditionally placed over the same square footage – a significant improvement. It should be noted that these performance metrics are also dependent upon the genetics deployed and the performance metrics noted herein are generally achieved over twelve plus strains of differing cannabinoid profiles.

Compelling Model

Medicine Man Technologies recently announced an Interim Products and Services Support Agreement with Pono Publications and Success Nutrients. This interim agreement allows the companies to work together synergistically while the final details of the acquisition are hammered out. In essence, the companies will combine forces almost as if the acquisition were completed, sharing revenues and expertise and marketing support to build each of the businesses involved.

Medicine Man Technologies has already begun to market this new cultivation service, referred to as Cultivation Max. The service differentiates itself from the competition by guaranteeing that the client’s cost per pound will drop while generating additional revenue from the delta in performance gains over the client’s current level of harvest in terms of dried cured flower. In other words, the company only generates revenue when its customers realize a tangible improvement in pounds per light and customers only pay when they realize a benefit that tangibly boosts their revenue. The fees generated for these services typically correspond to providing design services and a percentage of the improvement related revenue stream so clients are not burdened with fees that do not clearly reflect improvement.

Success Nutrients – the other part of the acquisition – is the culmination of two years of R&D and intensive testing. As nutrients specifically formulated for the cannabis industry, the company has generated $100,000 in sales in July as customers embrace the products. These are recurring revenues since cultivators must purchase nutrients over time for each harvest, which yields another compelling aspect of the business model. Success Nutrients is the recommended and exclusive nutrient line for the Cultivation Max service.

Looking Ahead

Medicine Man Technologies Inc.’s pending acquisition of Pono Publications Inc. and Success Nutrients Inc. could solidify its position as a leading provider of cultivation technologies. Rather than waiting, the companies are forging ahead now to bring the benefits of their combined experience and technologies to a competitive market full of growers in need of increased efficiency. With a compelling business model in place, investors may want to consider the company as a unique growth opportunity in the cannabis industry.

For more information, visit the company’s website at www.medicinemantechnologies.com.

CFN Media Group | Ryan Allway
October 24, 2016


Pot soda, marijuana treats for anxious dogs. NJ lawmakers see it all in Colorado

DENVER – Minutes after a group of New Jersey lawmakers entered the stark industrial Medicine Man marijuana cultivation center, an employee in blue scrubs rushed between them, pushing a plastic cart filled with pots containing a dozen leafy, two-foot-tall cannabis plants.

There was a scramble by the legislators and their aides to clear a path, and then chuckles and “wow”s.

“Oh, my God, It’s like a celebrity just came through,” Assemblyman Declan O’Scanlon (R., Monmouth) quipped – referring to the pot, not the worker.

Led by State Sen. Nick Scutari (D., Union), a municipal prosecutor, four Democratic and two Republican lawmakers spent more than an hour at the sprawling growing center as part of their excellent adventure – or three-day educational experience, as they would describe it – in the Mile-High City. Their mission – to determine if recreational marijuana use should be legalized in New Jersey.

On Tuesday, the lawmakers spent the day viewing thousands of pot plants and inhaling the intense smell, caught glimpses of workers preparing bottles of marijuana soda, and learned that Colorado also sells marijuana-infused products for dogs to relieve anxiety.

But while Colorado allows adults to purchase these products and up to one ounce of marijuana at a time for $100 to $250, it’s unclear whether New Jersey will follow the same path.

Most of the contingent said they had not decided whether they would support a bill Scutari plans to reintroduce soon to legalize recreational marijuana. He introduced a similar measure two years ago but it never got enough support to come up for a floor vote.

But times are changing and the momentum seems to have picked up after four states and the District of Columbia took the legalization leap. Five other states will ask voters to decide Nov. 8.

New Jersey lawmakers say they will have to wait until Gov. Christie, an opponent of legalization, ends his term in January 2018. But they want to get the debate started in the Garden State, where only medical marijuana is now sold.

“There’s been a lot of talk about legalization in New Jersey and I want to be informed on the successes and pitfalls of it. I’m not necessarily against it but I’m here to learn more and be better informed,” said Assemblywoman Maria Rodriguez-Gregg (R., Burlington).

National polls show a majority favor legalization. A Rutgers-Eagleton poll last year found 58 percent of New Jersey residents would support such a law.

Medicine Man Technologies, the operating arm for the grow center, handles the advertising, licensing, and other business details. Carrie Roberts, who led the tour, said the company also has eight clients in Pennsylvania who want to obtain licenses to open cannabis manufacturing and retail facilities when that state implements its medical marijuana program in the next two years.

She said she could not disclose the clients’ names but said the company also worked with lobbyists to get the law passed in Pennsylvania and other states.

In Denver, the Medicine Man grow center, one of the larger facilities in the state, is a 40,000-square-foot, noisy warehouse with 100 employees. It has more than 12,000 cannabis plants that are grown from clones, nurtured under green and red LEDs in different rooms, cooled with fans, and eventually harvested, dried, and put through a tumbler that separates the buds from the rest of the plant.

Then the cannabis is processed and sold. The discarded parts are used to manufacture oils, tinctures, and other cannabis products.

During Tuesday’s tour, a worker wearing a green headlamp walked toward one of the flowering rooms. The worker had to check on plants that were sleeping in a dark room; a white headlight would “stress the plants out … make them think the sun suddenly came up at night,” said Matt Best, another tour guide. The lighting and temperature are all controlled to optimize growth, with the electricity bills reaching about $35,000 a month.

The whole process takes five to six months, Best said.

“The plants grow themselves, but these guys care for and maintain them,” said Jordan Wellington, an attorney with the Vicente Sederberg firm, which focuses solely on cannabis business clients, and sets up tours for lawmakers and others interested in the billion-dollar cannabis industry in Colorado. The state was the first to legalize marijuana, in 2012. Businesses opened two years later.

“It’s a weed,” laughed State Sen. Kip Bateman (R., Somerset), marveling at the Medicine Man operation. Earlier he said that he was open-minded about legalization. “As long as the right restrictions are in place it could work in New Jersey,” he said.

Bateman, who also is a municipal prosecutor, compared the retail dispensaries to “jewelry stores where everything is kept behind glass cases” and the items are closely monitored.

Best said the plants would naturally grow more than 12 feet tall, but Medicine Man controls the growth and allows them to reach heights of three to four feet. “We maximize the canopy, the sea of green,” he said, saying trimming helps produce more buds.

During the tour, Best showed the New Jersey delegation plants that will be used to produce East Coast Sour Diesel, which he said is a popular strain.

“I’m just sucking it all in, no pun intended, but what I mean is, the industrial side of this brings it to a level of sophistication I had not expected,” said Assemblyman Jim Kennedy (D., Union), a redevelopment consultant for Burlington City and other towns.

The “Ramblin’ Express” white tour bus next took the delegation to the Dixie Elixirs manufacturing operation, which opened inside a former bread-baking plant in Denver two years ago.

There the group saw some of the products – lemonade, watermelon, root beer and other flavored cannabis drinks that are bottled and then sold in special childproof canisters in dispensaries they own.

Chuck Smith, the chief operating officer, said the 8.5-ounce bottles, which contain 10 milligrams of THC, the active ingredient in cannabis, sell for about $22 each. The company, which employs 110 workers, also sells cannabis chocolate bars, cannabis mints, and even cannabis dog products to help with a canine’s anxiety.

jhefler@phillynews.com

856-779-3224@JanHefler

www.philly.com/burlcobuzz

Philly.com, The Inquirer, Jan Hefler
October 19 2016


Colorado’s cannabis industry draws out-of-state interest

DENVER — Colorado marijuana operations are serving as a cannabis classroom for lawmakers across the country.

This week, a delegation of Democrats and Republicans from the New Jersey legislature are spending time in Colorado hoping to learn the successes and challenges facing the industry.  Medical marijuana sales are currently legal in the Garden State.  Lawmakers are considering pushing legislation allowing for recreational sales.

Democratic state Senator Nicholas Scutari helped organize the trip.

“It looks to be the new gold rush,” said Scutari. “To come here, put boots on the ground, and take a look around and see how it’s going and talk to the people on the front lines of this emerging market is something you can’t replace,” he said.

It’s easy to understand the out of state interest. Colorado’s dispensaries have seen a record setting summer.

In August – medical and recreational sales raked in $126-million dollars. In July, $122.7 million.

Carrie Roberts of Medicine Man Technologies has hosted similar tours of the Denver facility.

“We get to help people in emerging markets be able to replicate that same kind of technology and deployment without having to make those mistakes,” said Roberts.

New Jersey already has medical marijuana.

It’s looking to avoid some of the snarls including how to package edibles and how many plants you can grow at home.

“We’ve learned a lot based on the Colorado experiment which I like to call it.  And I want to replicate to some degree and then improve upon it in certain areas,” said Scutari.

As New Jersey ponders what to do next, several western states will decide on recreational sales on election day.

Mark Stewart | The Denver Channel – Denver ABC
October 18 2016


ADDITIONAL STORIES

Ryan Allway | CFN Media Group (October 3 2016) Medicine Man (MDCL): Building a Leading Cannabis Brand Warehouse

Matt Koesters | WCPO contributor (September 25 2016) Could marijuana become a treatment for heroin addicts?

ABC 6 On Your Side, By Liz Bonis, WKRC (September 8 2016) Can medical marijuana help addicts transition off heroin and opioids?

Cleveland.com (September 8 2016) Colorado marijuana businesses optimistic about Ohio medical marijuana law (video)

Forbes Magazine (August 27, 2016) Act 16 legalized Medical Marijuana in PA! How Long Till Patients Have Access?

Forbes Magazine (August 27, 2016) Four Cannabis Entrepreneurs Share Their Strangest Moments

New Cannabis Ventures (August 12, 2016) Medicine Man Technologies to Issue $12.6mm in Stock to Buy Pono Publications and Success Nutrients

The Denver Post (July 28, 2016) Marijuana industry ditches burnout image for “suit and tie” approach to DNC

Leafbuyer (July, 2016) Leafbuyer presents The 2016 Power List

OEN OpEdNews.com (June 27, 2016) Pot-Powered Family Business, Growing Like a Weed in Denver

Philly Voice (May 20, 2016) – This weekend, the business of pot comes to Philly

Inc. ( April 20, 2016) – The Marijuana Business Is Really the Real Estate Business

MJINews – Marijuana Investor News (April 15, 2016) Medicine Man Technologies Inc. Shows A Profit In Its First Full Year Of Operations

Marijuana Business Daily (April 14, 2016) With Pennsylvania Medical Marijuana a Reality, Attention Turns to Regulations

New Cannabis Ventures ( April 2, 2016) 7 Experts Discuss Best Practices On Taking Your Cannabis Company Public

PR NewsWire (March 23, 2016) Medicine Man Technologies to Present at MoneyShow Cannabis Investing Virtual Event on March 30

New Cannabis Ventures (March 23, 2016) Cannabis Investing Virtual Event Features Canopy Growth, MassRoots and Medicine Man Technologies

US News and World Reports (March 17, 2016) How to Invest in Marijuana Legalization

Marijuana Business Daily (January 5, 2016) A Look Ahead: Marijuana Retail, Cultivation & Industry Trends to Watch in 2016

Westword (September 14, 2015 )Taking Stock of Colorado’s Marijuana Industry – Westword Magazine article about Medicine Man Technologies becoming a publicly traded company

CFN Media Group CFN Interview with Andy Williams – CEO of Medicine Man

CNN (January 24, 2015) Colorado’s Booming Marijuana Industry – Medicine Man was featured in this recent CNN story about our Grow Technology.

The Denver Post (January 19, 2014): Family-owned pot shop in Denver seeks to become national player

The Denver Post (June 15, 2014): Reluctance of banks leaves pot shops looking for secure practices

TIME Magazine: Pot’s Money Problem

Playboy: Chronic Insecurity

Denver Business Journal: Colorado’s dispensaries will be its first recreational marijuana sellers as well

Orlando Business Journal: 5 ways to capitalize on medical marijuana

Natural Products Insider: Recreational Marijuana: How One Denver Dispensary Is Soaring to New Highs

Slate.com: A Look at Medicine Man, One of Colorado’s Largest Marijuana Dispensaries

Fox 31 Denver: Colorado pot pioneers will soon rake in the green

BBC News Tour: Inside a Colorado marijuana factory

NBC’s Today Show: Medicine Man Denver on The Today Show 1-27-14

Katie Couric Show: Katie Couric Goes Inside a Marijuana Store

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