Staff, Author at Green Market Report

StaffStaffMarch 2, 2021
pollen.jpg

9min250

Editors Note: This is a guest post. 

What is cannabis pollen? Just another pollen. It serves the same purpose as for any other plant in the kingdom, fertilization of the female so she can produce seeds for breeding and fruits for your labor.

The Science Of Plants

Particularly cannabis plants, that is. Cannabis plants are dioecious, meaning there are male and female species. In this case females produce the buds and in some cases seeds. Males produce flowers and the pollen. 

Most growers these days are only interested in female plants, but if you want to cross different strains and breed new combinations, you’ll need the pollen. And in fact, few companies sell pollen so it’s actually much more practical to just collect your own. For indoor growers, collecting it is the only option, since nature’s elements are not present to spread the pollen for them.

If you are going to jump on the honey wagon, there are some things to know first. 

Pollen is found in the male plant, inside the seeds in a sac. The seeds must be fully mature and ready to harvest. To identify their readiness, examine the seeds which are heftier in shape and size; They should have a darker hue color, possibly even tiny tiger stripes. They are ready.

The traits of a strain are not always apparent on the male, only sac size and density. Select your breed by examining the female parent plant for traits such as yield and aroma.

The seeds are usually approaching maturity when the male plants start flowering. The male plants will not produce buds, which is why feminized seeds are so popular.

Pro tip: If you are storing seeds for later pollen collection, best to occasionally pull one out and give it a germination test to make sure the little babies are still active and viable.

About halfway through the flowering stage of a male plant, it’s time to collect your pollen. 

Part 1: Collecting Pollen

When is your pollen ready to be collected? When you start seeing a yellow-y, powdery dust on the leaves below the male flowers. This is the pollen. 

The ideal time to remove your pollen is when the sacs seem to be breaking apart. It should take about six weeks to start recognizing mature seeds which are primed for the popping.

Let the sacs dry for at least several days and up to a week. After drying, you can put the sacs in a resealable freezer bag. Give the bag a little shake and the pollen should tumble out of its shell with the slightest of ease. 

If you are collecting pollen from flowers, snag a cluster of flowers and let them dry for a couple days in a storage container. Remove the pollen carefully, shaking it off the leaves over parchment paper or tin foil, or into a cup. Be sure there is no remaining plant matter mixed in with the pollen. This can contaminate it. A sifter is a helpful accessory for this part of the process. 

Tools Of Your Trade

You can use some tools to collect your pollen, such as a dry herb scraping tool or a kief pollen sifter box and tumbler and a pollen press. 

It can be a good idea to let the pollen dry out before storing it. Spread it out with a brush on parchment paper and let it sit at around 65-75 degrees in low lighting with moderate humidity for up to 48 hours. 

For storage purposes, it is best to collect the pollen just when the sacs are popping open. This is when the pollen is at its most fruitful. 

Now you are ready to store your pollen. 

Part 2: Storing Your Pollen

You will store your pollen in an airtight container. This is the most important detail: airtight, airtight, airtight! An oxygen-deprived environment is essential. 

Don’t forget to label your containers with dates and strain names. Especially if you are in the market for some phenotype testing!

If stored in a freezer, pollen can have a shelf life of up to a year! But keep in mind pollen is generally much less stable than seeds. 

How To Store It

Whether refrigerator, room temperature or freezer, maintain your pollen at a steady temperature. 

Do not defrost your pollen until it’s ready to use! If you are not using all of it, consider just transferring the amount you will use to another container and then returning the rest to the fridge or freezer before it defrosts.

The worst assault on your pollen comes from moisture, which can greatly reduce it’s viability. 

There are a few methods to reduce moisture content. Coat the pollen with a dash of cooking flour. Another option is to add some uncooked rice to the container, which absorbs the moisture. Basically, carbs. Another trick is to use those little silica gel sachets, the kind you see in common packaging.

Using The Pollen

When you are ready to germinate a female or experiment with a new cross breed, let your pollen defrost and dry out before applying it to the plant. It is important to be focused and undisturbed during the process. 

  • Make sure you are in a wind free environment, so the pollen does not get blown around. It can get sticky!
  • Use a light brush to apply the pollen to female plants.
  • Pollinated plants should be segregated from non-pollinated plants during this process to guard against cross-pollination, which can produce hermaphroditic plants that produce seeds but no buds! This is the result of the female plants instinct to preserve the species when under stress from fear of death. Intense, right?

Safety First

Maintain a properly safe environment to minimize risks to both yourself and the plant. 

Tight clothing and latex gloves are recommended to avoid contact with the pollen. Other precautions include a face mask for respiratory protection and goggles for your eyes, especially if allergies are a risk. Store tools separately when you finish to further avoid cross-pollination. 

Now get to it, the pollen is a-callin’!

 


StaffStaffMarch 1, 2021
Daily-Hit-Header.png

6min460

It’s time for your Daily Hit of cannabis financial news for March 1, 2020.

On the Site

Virginia

The cannabis community is certainly pleased to see that the state of Virginia has legalized adult-use cannabis, but it will be some time before sales can begin. Still, despite support for the legislation it looked to be a nail-biter to the end. The Virginia House and Senate lawmakers were in agreement on passing the law, but they differed on just exactly what it would look like. The two sides have been working over the past few weeks to reach a compromise, which was beginning to look less possible. Then on Saturday, it seemed the law just managed to squeak through. 

Novamind

Psychedelic medicine company Novamind Inc. (OTC:NVMDF) reported its fiscal second-quarter results for the three months ended December 31, 2020. Novamind reported revenue of $1,288,828 primarily composed of patient services revenue from its network of four Cedar Psychiatry outpatient mental health clinics in Utah. The company said it was a 47% increase over the first fiscal quarter ending September 30th, 2020.

Novamind reported a net loss of $3,567,883 for the second quarter versus a net loss of $493,614 for the first quarter. The company said the net loss was primarily due to expenses related to the company’s listing on the CSE, and funding of capacity expansion at its Cedar Psychiatry clinics.

MedMen

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) didn’t completely sell its New York operations to privately held Ascend Wellness, but it’s pretty close. Last week, beleaguered California-based cannabis operator MedMen signed an agreement with Ascend Wellness Holdings, where Ascend would make an investment of approximately $73 million in MedMen NY Inc. or MMNY. MedMen’s shares jumped over 14% in trading on Friday to lately sell at 48 cents.

Optimi

Optimi Health Corp. (CSE: OPTI) announced the closing of its oversubscribed initial public offering on February 24, 2021. Pursuant to the Offering, the Company issued 27,600,000 units of the Company at a price of $0.75 per Unit for aggregate gross proceeds to the Company of $20,700,000, which includes the full exercise of the over-allotment option.   The common shares of the Company and the common share purchase warrants issued began trading on February 25, 2021 on the Canadian Securities Exchange. 

In Other News

IM Cannabis

IM Cannabis Corp. (CSE:IMCC), a multi-country operator in the medical cannabis sector with operations in Israel and Germany, is pleased to announce that the Company’s common shares will commence trading today on the NASDAQ Capital Market under the ticker symbol “IMCC”. IMC will be the first Israeli medical cannabis operator to list its shares on NASDAQ. The Company’s NASDAQ listing is expected to increase access to investment in IMC for retail and institutional investors around the world. Furthermore, with access to a much larger capital market, the Company expects to improve liquidity for its Common Shares and, in turn, optimize its cost of capital.

Mydecine

Mydecine Innovations Group (CSE: MYCO) (OTC: MYCOF), an emerging biopharma company in the life sciences category committed to the research and development, production, and acceptance of alternative nature-sourced medicine for mainstream use, has completed the world’s first international legal export of dried psilocybin mushrooms.

In December 2020, the Company announced the completion of its first commercial harvest of 20 kilograms (44 lbs) of psilocybin mushrooms at a private mycology-focused research and cultivation facility in Jamaica. The first shipment of the harvest has now been received at Mydecine’s Canadian Current Good Manufacturing Practice (CGMP) facility, which has a Health Canada Schedule 1 Dealer’s License attached to it, allowing for legal import/export, research and development, cultivation, product development, and commercial sale of active psychedelic medicinal compounds.


StaffStaffMarch 1, 2021
Khadijah-Adams-Professional-Headshot.jpg

5min410

Cassondra “Khadijah” Adams is originally from Sugar Land, Texas. She started her first  business while raising four sons as a single mother. Khadijah Adams has been a full-time  entrepreneur since 1997. Khadijah entered the cannabis industry in 2014 by way of the  Colorado market. She began investing in cannabis-related companies shortly thereafter  and formed MIPR Holdings where she served as the founder and senior managing  partner for 3-1/2 years and was responsible for consulting and connecting accredited  investors to viable investment opportunities in the space. 

In June 2017, MIPR, LLC, and MIPR Holdings, LLC was later acquired by C. E. Hutton,  LLC, a business development and management firm in Denver, Colorado where Ms.  Adams currently sits on the Board of Managers as the Vice President. She is also the  Founder of The GreenStreet Academy, an online educational platform that teaches the  basics of investing in the marijuana industry, and the co-author of The Minority Report,  annual marketing analysis of Minority-owned companies in the cannabis and hemp  industries. On May 1, 2020, Ms. Adams launched Khadijah Adams, LLC dba Girl Get  That Money, a business empowerment coaching, and consultancy movement focused on  women in business and women aspiring to be in business. 

Ms. Adams is a motivational and public speaker. She sits on the Advisory Board of The  Color of Cannabis (TCC) 2020-2021, and is the Chair of the Diversity, Equity, and  Inclusion Committee (DEIC) of the National Cannabis Industry Association (NCIA) 2020- 2021, Board Member of Gratitude Blossom (San Diego), Advisory Board Member of  Calyxeum (MI) and Board Member of CannaCan (Ohio). 

Khadijah is the founder of Khadijah Adams, LLC dba “Girl, Get That Money” a business  empowerment and coaching movement. Her goal is to empower women in business by  providing them with the resources and tools needed to help them become successful.  

Ms. Adams is the author of “Rewriting Your Mental Script – 8 Mindsets That Defeat Self  Sabotage” published by Sisterhood Publishing, released on February 1, 2021, and can be  found on Amazon with an autographed copy found on her Girl Get That Money website.

GMR executive Spotlight Interview:

Full birth name: Cassondra Adams aka Khadijah Adams

Title: President & CEO

Company: Khadijah Adams, LLC dba Girl Get That Money

Years at current company: 1

Education profile: Colorado Christian University

Most successful professional accomplishment before cannabis: 

Certified Signing Services, Inc. assisted in the development of the notary signing agent industry from 1997 to 2007. The successful launch of The Computer Café in 2008, and successfully sold in 2014 to enter the cannabis industry.

Company Mission: Our mission is to help women design and execute a plan of action that helps them gain clarity, set new goals, get focused on their vision and define their mission.

Company’s most successful achievement:

Recently helped client launch Gratitude Blossom and

also helped Green Harvest Health with product

distribution.

Has the company raised any capital (yes or no): Yes

if so, how much? $150,000

Any plans on raising capital in the future? Still in progress

Most important company 5-year goal: To deploy $1,000,000 in women owned cannabis companies.

 


StaffStaffMarch 1, 2021
mushroom5.jpg

4min890

Optimi Health Corp. (CSE: OPTI) announced the closing of its oversubscribed initial public offering on February 24, 2021. Pursuant to the Offering, the Company issued 27,600,000 units of the Company at a price of $0.75 per Unit for aggregate gross proceeds to the Company of $20,700,000, which includes the full exercise of the over-allotment option.

The common shares of the Company and the common share purchase warrants issued began trading on February 25, 2021 on the Canadian Securities Exchange. The Offering was led by Mackie Research Capital Corporation, as the lead agent and sole bookrunner, on behalf of a syndicate of agents, including Canaccord Genuity Corp. and Stifel Nicolaus Canada Inc.

The Units offered under the Offering each consist of one Common Share and one‐half of one common share purchase warrant of Optimi. Each Warrant is exercisable to acquire one common share of the Company at an exercise price of $1.25 per Warrant Share at any time until February 24, 2023.

The net proceeds of the Offering will be used for capital expenditures related to the Company’s facilities in Princeton, BC, the development of the company’s functional mushroom business, the execution of the Company’s Psilocybin and Psilocin research and development initiatives, and for working capital requirements and other general corporate purposes.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The Units, the Unit Shares and the Warrants comprising the Units, and the Warrant Shares issuable upon exercise of the Warrants, have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws. Accordingly, the Units may not be offered or sold within the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Optimi in any jurisdiction in which such offer, solicitation or sale would be unlawful.

With a vertically integrated approach, Optimi intends to cultivate, extract, process and distribute high quality functional mushroom products at its two facilities comprising a total of 20,000 square feet nearing completion in Princeton, British Columbia. To fully investigate the science of mushrooms, the Company has received a research exemption under Health Canada Food and Drug Regulations (FDR) for the use of Psilocybin and Psilocin for scientific purposes at its wholly owned Optimi Labs Inc subsidiary.


StaffStaffMarch 1, 2021
shutterstock_1758241817.jpg

3min580

Psychedelic medicine company Novamind Inc. (OTC:NVMDF) reported its fiscal second-quarter results for the three months ended December 31, 2020. Novamind reported revenue of $1,288,828 primarily composed of patient services revenue from its network of four Cedar Psychiatry outpatient mental health clinics in Utah. The company said it was a 47% increase over the first fiscal quarter ending September 30th, 2020.

Novamind reported a net loss of $3,567,883 for the second quarter versus a net loss of $493,614 for the first quarter. The company said the net loss was primarily due to expenses related to the company’s listing on the CSE, and funding of capacity expansion at its Cedar Psychiatry clinics. This included consulting expenses  of $416,268, professional fees of $450,419, salaries and wages of $791,078, office and general expenses of $87,368, advertising and promotion expenses of $236,650, and stock-based compensation of $664,814. Additionally, there were $1,379,144 in RTO transaction costs in the quarter.

Novamind began trading on the CSE under the stock symbol “NM” on January 5. The company has been included in the underlying index of the Horizons Psychedelic Stock Index ETF (NEO: PSYK) through a “Fast Entry” category, increasing its profile with retail and institutional investors in the psychedelic medicine sector.

Following the end of the quarter, Novamind announced that it had reached two significant milestones at its Cedar Psychiatry mental health clinics: administering over 5,000 ketamine treatments since its opening in 2016, and administering over 2,000 Spravato treatments since the product became available in 2019. The company said that these milestones position Novamind as one of North America’s top providers of ketamine-assisted psychotherapy and Spravato.

On February 11th, 2021, Novamind said that it had made a strategic investment of AU$827,486 (approximately CAN$810,000), in Bionomics Limited (OTCQB: BNOEF), a biopharmaceutical company dedicated to developing better treatments for central nervous system disorders. In addition, Cedar Clinical Research, a wholly-owned subsidiary of Novamind, will be evaluated by Bionomics as a clinical research site to conduct Bionomics’ phase IIb clinical trial examining BNC210, a drug that has received Fast Track Designation from the U.S. Food and Drug Administration for the treatment of post-traumatic stress disorder (PTSD).

 

 


StaffStaffMarch 1, 2021
9570_rotachrome-1280x853.jpg

4min580

Full birth name: Gyula Kangiszer 

 

Title: Chief Regional Leader North America, President of RotaChrom North America

 

Company: RotaChrom Technologies

 

Years at current company: 1 year, 7 months

 

Education profile: University of Humberside, BA in European Business Administration

 

Most successful professional accomplishment before cannabis: I founded and successfully grew a startup software development company. I love challenging traditional practices and creating innovative new business models by bringing together the perspective of the converging industries. I’m excited about the potential impact of cannabinoids on our lives.

 

Company Mission: RotaChrom is a technology company on the front lines of purification solutions for a myriad of industries. We manufacture world-class chromatography platforms widely used for botanical extract purification within the pharmaceutical, nutraceutical, and botanical industries. 

 

Company’s most successful achievement:  RotaChrom Technologies invented the first Centrifugal Partition Chromatography (CPC) machine, which is made for industrial-scale purification. The platform is scalable, versatile, and cost efficient compared to older versions of chromatography. 

RotaChrom offers a more efficient solution to chromatography with the world’s first commercially available, industrial-scale CPC technology platform. The technology has revolutionized the purification industry by providing cost-effective, commercial-scale chromatography solutions to clients worldwide. The platform allows companies to expand high purity production capacity with flexibility and scalability, while decreasing environmental impact.

As the cannabis and hemp industries grow, the technology for mass production must evolve to meet the increased demand. Advanced technology solutions are adapting to meet the needs of increasingly complex, highly regulated markets. Chromatography, a technological system for purification of botanical extracts, is making strides to keep up with the booming business of legal hemp and cannabis.

RotaChrom’s unique industrial-scale CPC offers unmatched purification of botanical extracts, rendering a highly pure form of compounds of interest, from APIs to macromolecules, at large scale. Since the RotaChrom platform is scalable, producers can easily increase production to meet growing demand for a product, such as minor cannabinoids or pure CBD. 

Has the company raised any capital (yes or no): No. 

Most important company 5 year goal: 

As additional states in the U.S. legalize cannabis and hemp, we have the opportunity to expand our reach to new companies in those markets. Our systems purify minors at the highest level and many companies will need to turn to solutions like ours in order to meet a more regulated market. Regulation of the CBD industry is good. While some people consider it a problem, we see it as a positive, so that high-quality, regulated products make it to consumers. 

We at RotaChrom aim to keep advancing our purification technology and solutions, which will help our customers meet their purification goals.

 


StaffStaffMarch 1, 2021
law.jpg

15min2030

Editors Note: This article was submitted by Ashley Elsner Co-Founder and COO of Artery Pay.

On Friday, February 19, 2021, Jim Patterson, the former CEO of Eaze, was charged with and pled guilty to conspiracy to commit bank fraud in connection with credit card processing for cannabis products on the Eaze platform as part of an ongoing criminal trial against Hamid Akhavan and Ruben Weigand. In this article, I explain what is alleged, why it’s illegal, why you should care, and how to protect yourself and your business.

What did Mr. Patterson and his co-conspirators allegedly do?

On March 31, 2020, Hamid Akhavan and Ruben Weigand were charged with conspiracy to commit bank fraud in violation of 18 U.S.C. § 1349. The indictment alleges that, from 2016 through 2019, Akhavan, Weigand, and other, unnamed co-conspirators engaged in a conspiracy, the “Transaction Laundering Scheme,” to deceive banks into processing over $100 million of credit and debit card payments to marijuana retailers by disguising the transactions so as to create the false appearance that they were unrelated to the purchase of marijuana.

-United States v. Akhavan, S3 20-cr-188(JSR), (S.D.N.Y. May. 20, 2020)

Jim Patterson has pleaded guilty to his part in the above criminal indictment. For your reference, below are the definitions of the crimes alleged in the indictment.

18 U.S.C. § 1349 states:

Any person who attempts or conspires to commit any offense under this chapter shall be subject to the same penalties as those prescribed for the offense, the commission of which was the object of the attempt or conspiracy.

The underlying offense here is bank fraud defined in 18 U.S.C. § 1344, which states:

Whoever knowingly executes, or attempts to execute, a scheme or artifice—

(1) to defraud a financial institution; or

(2) to obtain any of the money, funds, credits, assets, securities, or other property owned by, or under the custody or control of, a financial institution, by means of false or fraudulent pretenses, representations, or promises;

shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

In essence, Akhavan, Weigand, and Patterson are charged with lying to financial institutions about what the transactions on the Eaze platform were for to trick them into processing transactions for cannabis products in the US. 

Why is this illegal?

First, a little background in how card processing works. There are a number of financial institutions that are involved in the processing and clearing of card-based transactions. Each one has to consent to process and clear the transactions. To do this, card networks like Visa, Mastercard, American Express, and Discover, that provide transaction systems, have created specific network rules and category codes that apply to card processing. Card issuing banks, such as Bank of America, Chase, Wells Fargo, Citigroup, and Capital One, underwrite the consumer transactions that the card networks feed them according to those same rules and category codes that they developed in collaboration with one another. Both the card networks and the card-issuing banks have to agree to support transactions for specific products and services so that those specific products and services get a category code. The category code is transmitted at the time of transaction and lets the underwriting bank determine if that transaction can be accepted for the specific consumer for the specific products and services. 

Why is this important? Because neither card networks, that provide the systems, nor card-issuing banks, that provide consumers with the cards that are presently in their wallets, have agreed to process cannabis transactions until federal legalization of cannabis products at the earliest. Large national financial institutions, the card networks, and card-issuing banks included, have taken the position that as defined in their network and institutional rules, the US federal prohibition makes cannabis products illegal, and therefore, they will not process and clear those transactions via their systems and institutions. 

To that end, the card networks have not provided a category code for US cannabis products. In order to trick card networks and card-issuing banks into processing and clearing cannabis product transactions, someone would have to miscode those transactions as an accepted category code. Miscoding financial transactions to a bank in any way is bank fraud. In this case, it is also money laundering because it deliberately hides the true source of the transaction.  

But why should I, a cannabis business owner, care what happened to Jim Patterson from Eaze?

The simple answer is that bank fraud and money laundering cases get prosecuted. To that point, Judge Rakoff, the federal judge hearing the case, refused to grant dismissal against Weigand and Akhavan for 2 arguments that I hear from industry professionals all the time. 

First, and I admit this argument (and it’s inverse that everything is federally illegal so who cares) always makes me laugh, Weigand and Akhavan’s attorneys argued that the Rohrbacher-Farr Amendment to the 2014 congressional spending bill prevents federal prosecutors from going after marijuana operations that comply with state law. Judge Rakoff’s response was that they are accused of bank fraud, not engaging in state-licensed cannabis business. “The Rohrbacher-Farr Amendment does not condone bank fraud by a medical marijuana dispensary any more than it condones murder, robbery, or assault.” I don’t think I can say that any more clearly but I’ll try. Cannabis protections from federal prosecution do not extend to other crimes.

Second, “no harm, no foul”. That is just not true. Financial crime laws are instrumental in protecting the US and its citizens from all kinds of criminal and terrorist organizations. It was money crimes that took down the mafia and made it possible to prove criminal organization. It is money crimes that allow law enforcement to track, monitor, and dismantle terrorist organizations, gangs, and cartels now. Money laws are paramount to public safety so money crimes are not “no harm crimes”. 

I will add that the stability of the US economy and our financial markets is due in large part to the expectation of legal enforcement against fraudulent behavior. Fraud is a crime that does hurt people and businesses. I don’t like to make slippery slope arguments, but this is one of the rare cases where it actually applies. If you let some people get away with fraud, others see that fraud laws are not enforced and start committing fraud too. Then no one can trust anyone anymore and it becomes impossible to engage in free enterprise. Fraud breaks capitalism which relies on legitimate information and intention.

Finally, I’m going to add one more argument that wasn’t put forward but I hear all the time: “I didn’t set up the bank fraud so I’m not responsible for it.” Unfortunately, that’s not true; RICO is why. “RICO” stands for Racketeer Influenced and Corrupt Organizations Act (18 U.S.C. §1961 – §1968.) It is an extremely important tool for law enforcement for dismantling criminal organizations. RICO allows criminal liability for predicate offenses, like bank fraud and money laundering, to be extended to executives that control and order predicate offenses in furtherance of an enterprise. That means that criminal liability for these types of scams can extend to you, the business owner, just for using the scam, and sadly, it doesn’t matter if you know it’s a scam or not. You can still face prosecution. And, RICO requires forfeiture of “ill-gotten gains.” That means that by using the scam, you made legitimate transactions into illegal ones that can be subject to being frozen and seized. 

How can I protect myself and my business from getting into similar trouble?

  1. Never lie to a financial institution about what you do. When you fib, financial institutions always eventually catch you and account shutdowns are substantial disruptions to your business and annoy your customers. If you are a licensed cannabis business that follows your applicable regulations and you don’t take products or money across state or international lines, you are not doing anything wrong. If the bank or processor chooses not to work with you because you are a cannabis business, that is their right. There are other banks and payment systems that will work with you as long as you haven’t fibbed to other banks in the past. It’s not necessarily easy or cheap but getting legitimate, open cannabis banking and cannabis payment platforms is the best thing for you and your business. It’s legal, reliable, and sustainable. 
  2. Due diligence your financial providers and their offerings. You should be able to find out who they are, if they actually have appropriate experience, be able to contact and confirm with their backing banks that they have approved working with cannabis and that they know that your payment platforms are working with cannabis. If you find this to be too difficult, ask your lawyers and accountants to help you. They are your fiduciaries and have legal and moral obligations to make sure that you and your business are protected. 
  3. Don’t use “workarounds”. There are no “workarounds” in finance. Attempts to “workaround” getting direct, verifiable consent from banks, card networks, other financial institutions are a bad idea. Not only can you be held personally criminally liable for misrepresenting your business and your transactions, like what happened to Mr. Patterson, your assets under these scams are freezable and seizable. Using “workarounds” can expose you to other threats to your business as well. For example, when your bank catches you, they can shut down your bank account and will submit your information to the terminated merchant file (TMF). The TMF is used by banks, payment processors, other financial institutions to determine if you are a “bad actor. This status can kill your ability to obtain any financial support in the US, think insurance, lending, banking, payments, listing on stock exchanges, etc. Also, this reputation will follow you and the rest of your executive team to future businesses. It’s not limited to your present company. 

Don’t play games with your money.

Ashley Elsner is a financial lawyer and the Co-Founder and COO of Artery Pay, a payments company making payments and banking easy for cannabis businesses. Artery Pay unifies payments and banking compliance into a single system so that merchants and the banks and credit unions that support them are able to work with each other easily, effectively, and transparently. Whether you want non-cash payments or need help with your cash, Artery Pay can manage all of your transaction needs. Artery Pay is easy, fun, cheap, and legal – the way cannabis should be. For more information, visit www.arterypay.com or contact Ashley directly at ashley@arterypay.com.


StaffStaffFebruary 25, 2021
Lowell.jpg

3min3840

California-based Indus Holdings, Inc. (OTCQX: INDXF) is buying Lowell Herb Co. and Lowell Smokes in a deal valued at $39 million. The acquisition includes trademark brands, product portfolio, and production assets of Lowell from The Hacienda Group effective immediately. The company will change its name to Lowell Farms Inc.

“The combination of Indus and Lowell will create a leading producer of California cannabis and the next step for the first great American cannabis brand,” said Gregory Heyman, founder of Beehouse, Lowell’s largest investor. “The Indus team’s commitment to growing excellent cannabis and the communities they serve also realizes Lowell’s mission to normalize cannabis in America.”

The deal consists of a cash payment of $4.1 million and the issuance of 22,643,678 Subordinate Voting Shares of the Company (of which 5,000,000 will be held in escrow to secure certain indemnification obligations undertaken by the sellers in the transaction). The share consideration was issued in a private placement transaction and the company has agreed to register such shares for resale in the United States. Hacienda said it has agreed to continue to produce Lowell products for an interim period pending the completion of the transfer of certain regulatory assets.

It is expected that Lowell Farms Subordinate Voting Shares and Warrants will begin trading on the Canadian Securities Exchange (CSE) on March 5, 2021, under the ticker symbols LOWL and LOWL.WT, and that the Subordinate Voting Shares will begin trading on the OTCQX effective on March 5, 2021, under the ticker symbol LOWLF.

“The cannabis industry is awash in brands competing for our attention, but Lowell has risen to the top of the fray as a brand that simultaneously empowers a movement, welcomes the curious, and greets the reacquainted all with a grace and elegance that other brands can only aspire to,” said George Allen, Chairman of the Board for Indus Holdings, Inc. “Every resource under our control will be employed in unlocking Lowell’s full potential.”


StaffStaffFebruary 25, 2021
shutterstock_1758241817.jpg

3min1180

PharmaDrug Inc. (CSE: BUZZ) (OTC Pink: LMLLF) has filed for an application with the U.S. Food and Drug Administration to receive Orphan Drug Designation (“ODD”) for N,N-Dimethyltryptamine or DMT in the prevention of ischemia-reperfusion injury in patients undergoing kidney transplantation.

The company explained that Ischemia/reperfusion injury (IRI) is caused by a sudden temporary impairment of the blood flow to a particular organ. PharmaDrug noted that research studies have shown that DMT activates the sigma-1 receptor (“Sig-1R”), an intracellular chaperone fulfilling an interface role between the endoplasmic reticulum and mitochondria in cells. Sig-IR ensures the correct transmission of ER stress into the nucleus resulting in the enhanced production of anti-stress and antioxidant proteins. “DMT has also been shown to have anti-inflammatory properties. Consistent with these functions, DMT was found to mitigate ischemia-reperfusion injury (IRI) caused by hypoxia, oxidative stress and inflammation in preclinical models of renal transplantation.[2] The anti-inflammatory protective effects of DMT may provide a novel, more beneficial strategy to attenuate the damage induced by ischemia and reperfusion during kidney transplantation.”

“We have been focused on laying the foundation in becoming an industry leader in the research and development of novel uses for DMT in the treatment of neuropsychiatric, neurological and inflammatory disorders,” said Daniel Cohen, CEO of PharmaDrug. “Although DMT is commonly associated with offering an intense psychedelic experience, the therapeutic potential of DMT is fascinating and remains underexplored. We aim to unlock the potential of DMT in treating unmet medical needs beyond its potential utility in mental health disorders. Our orphan drug designation application for DMT in the prevention of kidney injury during transplant surgery fits with our psychedelic pharmaceutical strategy of creating a unique portfolio of DMT therapies targeting rare disorders while also focusing on foundational research with DMT to explore and evaluate its therapeutic potential both in the brain and other human organs.”

Earlier this month, PharmaDrug filed an application with the FDA to receive Orphan Drug Designation for DMT in the treatment of acute ischemic stroke patients presenting for emergency medical assistance within 3-hours of symptom onset.


StaffStaffFebruary 23, 2021
Daily-Hit-Header.png

4min940

It’s time for your Daily Hit of cannabis financial news for February 23, 2021.

On the Site

GrowGen

GrowGeneration Corp . (NASDAQ: GRWG) is buying San Diego Hydroponics & Organics, a four-store chain of organic, hydroponic and aquaponics garden centers in San Diego, California. The company said that San Diego Hydroponics & Organics is San Diego County’s premier hydroponic equipment supplier, with annual revenues approaching $10 million. GrowGen did not say what it paid for the company. This latest acquisition brings the total number of GrowGen hydroponic garden centers to 50 stores.  In California, the country’s largest legal cannabis market, GrowGen now has 17 stores,  with eight of those stores located in Southern California.

GTI

Green Thumb Industries Inc. (OTCQX: GTBIF) announced it has raised approximately $56 million by selling 10 million of its subordinate voting shares, that was declared effective by the U.S. Securities and Exchange Commission (SEC) as of February 8, 2021.  Green Thumb said it had received and accepted offers from investors to purchase 1.6 million registered subordinate voting shares at $35.50 per share for a total of approximately $56 million.  The stock closed at $35.35 on Monday.

Psychedelics

Massachusetts lawmakers are moving forward to decriminalize psychedelic drugs. The effort began at the city level when Somerville and Cambridge adopted measures that would make possession of psychedelics a low law enforcement priority. Now it has moved to a state-wide initiative.

In Other News

Subversive Acquisition LP (NEO: SVX.U) (OTCQX: SBVRF) announced today that InterCure Ltd. (dba Canndoc) (TASE: INCR), Israel’s leading cannabis company and SVX’s intended target for its “Qualifying Transaction” has released its estimated unaudited fourth-quarter results for the year ended December 31, 2020. Highlights include:

  • NIS ₪27 million in fourth-quarter revenue, establishing a new quarterly revenue record for InterCure
  • Revenue growth of more than 13 times compared to Q4 2019 and more than 3 times compared to InterCure’s annual revenue in 2019
  • Continued increase in profitability, operating profit and net profit

 



About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE



Recent Tweets

@GreenMarketRpt – 23 hours

Here’s why everyone in the industry should be careful about after former CEO J…

@GreenMarketRpt – 23 hours

The cannabis community is certainly pleased to see that the state of has legalized adult-use cannabis, bu…

Back to Top

You have Successfully Subscribed!