Cultivation Archives - Green Market Report

StaffStaffJune 11, 2018
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3min1490

Aurora Cannabis Inc. (ACBFF)  announced that it signed a cannabis flower and trim supply agreement with Agrima Botanicals Corp. a wholly-owned subsidiary of Ascent Industries Corp. Agrima is a licensed producer of medical cannabis pursuant to Health Canada’s Access to Cannabis for Medical Purposes Regulations (“ACMPR”).

According to a company statement, Agrima will supply Aurora with up to 20,000 kg of dried cannabis flower and up to 6,000 kg of cannabis trim per year from its Canadian cultivation facilities. The deal can last up to five years and is subject to a 12,000 kg per year minimum. Currently, Cannabis Benchmarks lists the spot price of wholesale cannabis at $1,237 per pound. At 2.2 pounds per kilogram, this gives the deal an approximate potential value of $54 million.

“The agreement with Ascent brings further differentiation to Aurora’s growing portfolio of products,” said Terry Booth, CEO. “Expanding product choice to our various audiences through quality operators such as Agrima positions us well to accelerate growth. Furthermore, the relationship provides an opportunity to potentially source additional, higher-margin derivative products down the line.”

Philip Campbell, CEO, and Director of Ascent added, “We are delighted to be selected as a supplier to Aurora, a leader in the global cannabis sector. Agrima is committed to providing high-quality cannabis to both consumers and strategic partners, which this new agreement is a testament to. We believe this represents the beginning of a strong strategic relationship with Aurora, one which will benefit both companies for years to come.”

Agrima’s dried cannabis flower and trim will come from its facilities in Pitt Meadows, British Columbia. Once operational, the 600,000 square foot, automated cultivation facility will have a total cultivation capacity of approximately 60,000 kg of cut flower per year. Agrima anticipates receiving Health Canada approval towards the end of calendar 2018 and anticipates shipping its first products in Q1 2019. Agrima’s parent company Ascent offers a product suite of more than 40 unique products under eight consumer-focused brands, including gel capsules, oils, vaporizer pens, pre-rolled joints, various edibles and raw flower.


William SumnerWilliam SumnerJune 6, 2018
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5min2372

Will the nationwide legalization of cannabis in the United States lead to falling cannabis prices? According to a recent report published by the financial services company Stifel Financial Corp., the answer is yes. Published on May 30, 2018, the report details various market pressures and predictions regarding how the legal cannabis market will over the next several years.

According to the report, there is a strong possibility for price compression in the cannabis market, particularly dried cannabis, for several reasons. The first reason is that the highly attractive economics of cannabis will lead to an influx of actors hoping to cash in on the industry, which will lead to oversupply; citing Canada as an example.

Set to legalize adult sales of cannabis this summer, Canada is set to face an oversupply in the coming years. Another report, issued by BMO Capital Markets, found that although the Canadian cannabis market only needs about 11 million square feet of grow space to support demand, the top three growers are already on their way to having approximately 8 million square feet themselves.

When you figure in all of the other cannabis cultivators in Canada, it is easy to see how the market could become saturated. Likewise, permissive licensing structures in the United States has led to an abundance of cannabis cultivators. The most significant barrier to entry as a cultivator is capital; and with deep-pocketed investors flooding the market, capital is readily available to those that seek it.

Additionally, lower prices will emerge as a necessity to encourage users to abandon the black market in favor of the legal cannabis market. Daily cannabis users, which are predicted to account for the majority of national cannabis sales, are sensitive to price. According to an analysis by the Canadian Parliamentary Budget Office, only 61% of daily users would be willing to pay a 20% premium for legal cannabis products compared to the illicit market.

For cannabis operators, this means having to make a choice between maximizing profitability or volume. Profit maximization would most likely occur through the creation of value-added cannabis products; such as extracts and edibles. Using Colorado, Washington, and Oregon as a model; the Stifel report predicts that the national market would initially favor volume over profitability.

Once again drawing from Colorado, the report predicts that a national cannabis industry would most likely see cannabis sell for a wholesale price of $2.00 per gram and a retail price for $3.50 per gram for medicinal and $5.50 for recreational. Dried cannabis would be hit the hardest, while value-added cannabis products would retain a slightly higher price. Currently, the Cannabis Wholesale Benchmarks has cannabis priced at $1,247 per pound for the spot index in June. Cannabis calculates 448 grams per pound putting the current price at $2.78 and so its forecasted drop would be roughly 28% from today’s prices.

In the BMO report the wholesale price of cannabis, at least in Canada, is predicted to be much higher. Wholesale prices for dried cannabis are predicted to hover around C$4.00, while oil/gel capsules would go for C$6.00 per gram, and value-added formats would sell for approximately C$15.00 per gram.

With regards to cannabis taxation, the Stifel report favors the Canadian tax model, which includes a 10% ad valorem tax with a C$1.00 minimum and the ability for provinces and localities to impose their own taxes. Using a similar 10% ad valorem tax, along with a 10% tax imposed by the states, and a 5% local tax; it is estimated that the United States could generate up to approximately $12 billion in cannabis taxes annually.


StaffStaffApril 9, 2018
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3min6660

Cannabis Wheaton Income Corp. (CWBTF) acquired Canadian private cannabis company Robinson’s Cannabis Incorporated in an all-stock deal. Cannabis Wheaton will acquire all of Robinson’s issued and outstanding shares.

Robinson’s is currently building a 27,700 square foot purpose-built facility for cannabis cultivation in Kentville, Nova Scotia. Robinson’s doesn’t have a license at this time but has completed the review process on paper and is confirming its readiness stage.

According to the company statement, Robinson shareholders will receive 5,369,126 common shares upon closing of the acquisition, 2,013,421 common shares issued and held in escrow to be released to Robinson’s shareholders upon Robinson’s receiving a cultivation license under the ACMPR and 2,013,421 common shares issued and held in escrow to be released to the Robinson’s shareholders when the company receives a sales authorization under the ACMPR.

Cannabis Wheaton seems to be focused on expanding its cultivation portfolio. The company also recently said it had entered into a joint venture with Peter Quiring, one of the largest greenhouse builders and operators in Canada, to build a brand new cannabis greenhouse facility in Leamington, Ontario. The joint venture will operate through a newly formed subsidiary dubbed GreenhouseCo. Quiring will act as Chief Executive Officer of GreenhouseCo.

Cannabis Wheaton Acquisitions

Cannabis Wheaton recently acquired DoseCann in an all-stock deal as well. Dosecann is a late-stage “Licensed Dealer” applicant pursuant to the Narcotic Control Regulations with a purpose-built 42,000 square foot facility located in Charlottetown, Prince Edward Island.

Last week, the company announced it had acquired all of the outstanding securities of Dosecann by way of a “three-cornered amalgamation.” Cannabis Wheaton will pay the holders of the Dosecann Securities an aggregate of up to $38,000,000, payable in common shares of Cannabis Wheaton subject to the satisfaction of certain post-closing time and performance-based milestones. As part of the acquisition, all outstanding convertible securities of Dosecann will either be converted into Dosecann common shares and exchanged for consideration shares on the closing of the acquisition.

Stock Performance

Cannabis Wheaton stock was lately trading at $1.22 on the OTC Markets, down from its 52-week high of $2.70. The Toronto Exchange stock was last trading at C$1.55, a drop for its 52-week of C$2.97.


Davide FortinDavide FortinApril 6, 2018
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3min27340

The “hemp flower-rush” has reached Italian soil, and is not driven by patient demand. Of course, strains of Canadian cannabis are exported to Italy through Germany, but this is secondary news. A more prevalent phenomenon is happening within the hemp market, and it is not merely driven by those who want to get high. A reform implemented last year has boosted Italy’s fledgling hemp industry, with an expected 80% increase in acres of cultivated land.

The new legislation has resulted in a de facto removal of substantial red tape from hemp production. Any farmer can now grow legal cannabis with a level of Tetrahydrocannabinol (THC) superior to most European countries (except Switzerland).

Although most Italian hemp is grown to produce seeds or fiber these outputs are not the engine of market growth. The trigger of change is the de facto liberalization of the market for hemp flowers. In 2017, the supply could not keep up with the demand, making it the most profitable crop sold within the Italian market. Often called “cannabis light”, consumer interest is driven by its large percentage of Cannabidiol (CBD), which induces a more sober feeling of relaxation.

The pioneers in this industry are EasyJoint, a company responsible for both opening the market and acting as a major supporter of the entire supply chain. They supply farmers with seeds and cuttings to re-buy the flowers, which are then packed and sold to the final customer. This business model appears to be functioning extremely well, and its founder, Luca Marola has declared revenues of over two million dollars within the first nine months of activity. Besides enriching shareholders, this has significant repercussions on the primary sector, providing jobs for over 700 Italian farmers.

The future looks bright for cannabis light, with large exports of flowers and derivatives expected to other EU countries in the coming months. This phenomenon comes in a very hot period for Italian politics, just after the election where comedian Beppe Grillo’s pro-legalization party won the largest share of Italian votes. It may be difficult to predict the future, but soon hemp may not be the only type of cannabis exported out of Italy.


StaffStaffApril 2, 2018
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4min3950

Emerald Health Therapeutics, Inc. (EMHTF) reported its annual 2017 earnings and fourth quarter results. Revenue for the full year increased 270% from C$253,321 in 2016 to C$937,654 in 2017. Net losses for the year also increased from (C$2.9 million) in 2016 to (C$8.7 million) in 2017. The net loss per share went from five cents in 2016 to a net loss per share of ten cents in 2017.

“Following the Canadian federal government’s introduction in April 2017 of legislation to broadly legalize adult-use cannabis, Emerald put in motion multiple strategic steps focused on placing the company in the top tier of Canadian licensed producers and pursuing international opportunities,” said Chris Wagner, CEO of Emerald Health Therapeutics. “The company made important leadership hires; took steps to assure significant, secure supply of cannabis via large-capacity production facilities; struck multiple strategic collaborations and investments; leveraged its extensive life science industry expertise to initiate product innovation and intellectual property formation; and added substantially to its treasury.”

Revenue for the fourth quarter of 2017 was C$279,362 versus C$124,251 in 2016 for the same time period. The net loss for the fourth quarter was (C$4 million) versus a net loss of (C$880,424) for the same time period in 2016.

The company is in the throes of a building phase. According to a statement, Emerald said that conversion of the first 250,000 ft2 section of the Delta 3 greenhouse to cannabis production was substantially complete, with the conversion of the remainder of the 1.1 million ft2 greenhouses ongoing and on schedule. The company also said that senior growing, financial, human resources and operational personnel, including the established team transferred from Village Farms, were in place for production ramp-up.

In addition to the Delta 3 greenhouse conversion project, Emerald has completed a significant amount of construction at its Metro Vancouver site and in October 2017 applied to Health Canada to produce cannabis at this facility.

Emerald has also signed deals with DMG Blockchain to form a joint venture, to be named CannaChain Technologies, to develop a blockchain-based supply chain management system and e-commerce marketplace for the legal cannabis industry. Plus, it signed a Letter Of Intent with Namaste Technologies to collaborate on strategic business opportunities worldwide and develop a fully integrated e-commerce platform to serve as a retail channel for the Company’s patient

Wagner added, “We look forward to a transformational year in 2018 with the expected initiation of broad legalized adult-use and our vaulting into the top tier of production capacity, enhanced branding, sophisticated sales and marketing, and progression of our medical product development and patenting plans. We are executing well on the projects we have announced and are assessing an array of potentially impactful new business opportunities.”


Debra BorchardtDebra BorchardtMarch 19, 2018
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8min4740

Applied DNA Sciences (APDN) wants to use DNA tagging to track and verify cannabis strains. It wants to do for the cannabis industry what it did for the cotton industry – assure consumers that they are getting what they pay for. This Stony Brook, NY company has the ability to use DNA tagging to keep supply chains from being corrupted and make sure products are honest.

The Pima cotton story is the best way to explain this technology and why the company wants to apply the same process to the cannabis industry. Applied DNA Sciences began testing cotton products and realized consumers were spending extra money to purchase what they thought were premium cotton products called Pima. The makers of these Pima cotton sheets, towels and apparel believed that they were selling Pima products until it was proven that they weren’t. But whether it was the farmer or the factories in China that began blending non-Pima fibers into the finished product, the end result was that customers weren’t getting the Pima cotton they were paying for.

Applied DNA Sciences now tags most cotton following the harvest and then tests fibers, yarns, fabrics and even the finished product. Manufactures and consumers can now trust that whatever Pima cotton product they are buying, it is, in fact, a Pima cotton product.

That strain pride exists in the cannabis industry as well. Cannabis cultivators create and develop specific branded strains. Likewise, customers are very fond of popular strains like Blue Dream, Girl Scott Cookies or GG#4. The question is whether the cultivators are actually growing what they think they are growing and are the customers really getting the strain they think they are buying?

Canadian researchers from the University of British Columbia along with Sean Myles, a population geneticist at Dalhousie University conducted a strain study. They found only a moderate correlation between the marijuana reported by cultivators and the ancestry claimed. For example, a sample of Jamaican Lambs Bread, which is classified as cannabis sativa, was almost identical at a genetic level to a cannabis indica strain from Afghanistan. “Cannabis breeders and growers often indicate the percentage of Sativa or Indica in a cannabis strain, but they are not very accurate,” Page explained.

This could be avoided says Applied DNA Sciences. The company can apply a molecular tag to the plant which is unique to each cultivator. This is becoming increasingly important as farms invest thousands into their brands and they want to try to protect their strains as master growers move amongst different companies. This tag can be detected in plant material before and after drying. Their product is called CertainT.

“We knew we could spray the plant. We had done it with cotton, but we didn’t know what would happen after the processing of the plant,” said Gordon Hope, Director of Security Solutions. The company is now testing edible products to make sure the DNA tag can withstand the heating process during cooking.

A DNA tagging process could do that.With the CertainT tag, a manufacturer can be assured that the plant it buys from a cultivator is in fact what they believe they are buying. A customer can be certain that the strain they are purchasing is, in fact, that strain. The process can also be used to assist in regulatory compliance so that authorities can determine the origin of the product. Right now, the product on a shelf in a New York dispensary can be tracked by a seed-to-sale program but there is no way for the state to verify that the product was in fact grown in New York. A DNA tagging process could do that.

The tag can’t be compromised or copied. Even the U.S. Department of Defense relies on these tags to ensure the integrity of critical components such as lubricating oil or specific engine parts.

“They’ve got millions invested. They’re trying to protect their intellectual property, their trade secrets, their knowledge and their know-how,” said Hope. “Remember, most people can’t see the grow operations.” Hope also said that the medical marijuana companies he spoke to told him that their biggest problem is consistency. “Medical marijuana producers are very much concerned with consistency for their patients,” he said. “Large pharmaceutical companies don’t have this issue, but its critical for patients taking medical marijuana to know they are getting the exact same medicine for every dose.”

The company said it is sensitive to not adding a burden to the system. John Shearman Director of Marketing said, “We can be a nice overlay to provide that comfortable feeling and brand recognition.” They want to make it easy to run a test to verify a product’s origin. “A processor could be mixing in products that a brand isn’t able to verify and check,” he said.

In addition to helping processors and manufacturers, DNA Tagging can also help with regulatory authorities. The state should be able to check the product to make sure it is what it says it is. “If you want transparency in your system, you have no real way to assure that,” said Hope. “Everywhere along the supply chain, there is a chance for diversion. It could take 20 minutes to do the test. Even a dispensary could do the test on the product.”

Applied DNA Sciences currently has over 60 employees with 53 issued patents and 75 patent applications pending. The company has been testing its CertainT on cannabis in the state of Michigan where medical marijuana has been legal since 2008.

“The good news is you need very little DNA,” said Hope. “It’s a critical element missing from seed to sale chain.”


Peggi CloughPeggi CloughFebruary 28, 2018
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4min7031

The U.S. Cannabis Spot Index averaged $1,562 per pound in 2017, a 13 percent decrease from $1,789 per pound in 2016, according to Cannabis Benchmarks Annual Review & Outlook: 2017-2018 Edition.

The Index declined only 6 percent throughout 2017, opening at $1,532 and closing at $1,436, in contrast to the 20% decline seen in 2016.

Wholesale market for the cannabis flower was $5.7 billion in 2017. For reference, the wholesale wheat market was $7.8 billion. Volume grew by 22%, from 3 million pounds in 2016 to 3.7 million pounds in 2017.

Lowest prices for the year were again seen in November, with the national composite price down 11.6% in Q4 from Q3. Favorable weather conditions led to fall bumper crops, and the combination of outdoor and greenhouse flower hitting the market at the same time helped fuel this in 2017.

The lower level of spot price uncertainty led Cannabis Benchmarks to investigate the volatility of other agricultural commodities. They found that cannabis was in line with the others and that only one, wheat, increased. They believe cannabis volatility decreased in part because of fewer “regulatory and economic surprises.” This may also hold true for Colorado, Washington, and Oregon, although foreseen regulatory actions can greatly affect regional prices.

While it doesn’t have a huge impact on the market, greenhouse flower accounted for just under one-third of all volume traded in 2017, staying at the same volume as the second half of 2016. This is significant because it accounted for less than one-fourth of all volume in the first two quarters of 2016.

Warehouse flower contract prices appear to be trending downward. In 2017, 40% of individual transactions involving warehouse flower were greater than $2,000 per pound, down from 45% in 2016. When looking at flower selling for greater than $1,500 per pound, the numbers were even lower, 69% in 2017 as opposed to 80 percent in 2016.

The market also saw more agreements that were not involving product exchange, only financial exchange, such as futures, swaps, and options.

In the first half of the year, wholesale prices increased in California, but the bounteous fall crop proved to be too overwhelming to maintain the increase, and wholesale prices fell. Wildfires in the fall ravaged dozens of grow sites; however, they didn’t have an effect on supply statewide.

Colorado’s average Spot Index for 2017 was almost 30% below 2016’s Spot Index, continuing the downward trend that started in early 2016. The state has such an oversupply of cannabis that quality and other differentiating criteria have ceased to have much significance.

Wholesale prices in Oregon fell dramatically in 2017, less than 18 months after the state legalized sales to adults. A good growing season, lack of production limits and an increase in commercial growing knowledge were all factors in the decrease.

In the last weeks of 2017 and early into 2018, Washington’s wholesale prices were the lowest seen in any state, historically. This trend is being closely watched in 2018.

Cannabis Benchmarks is a division of New Leaf Data Services and provides wholesale price assessments in weekly, mid-year and annual reports. Their Annual Review & Outlook: 2017-2018 Edition offers wholesale market data, overview and analysis, and is available for purchase.


Debra BorchardtDebra BorchardtFebruary 27, 2018
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3min3260

NewBridge Global Ventures, Inc. (NBGV) announced that it has acquired cannabis education company Elevated Portfolio Holdings, LLC in an all-stock transaction.

Elevated Education, Inc. will acquire the assets of Elevated in exchange for 2,000,000 shares of company common stock. Elevated Portfolio is a company that offers medically focused education modules for physicians and clinicians as well as significant training regarding the body’s endocannabinoid systems and the use of cannabis for health and wellness.

Once closed, Elevated Education will be managed by the current NewBridge management team as well as key members from Elevated. This acquisition will be the first of what the company plans to be a series of acquisitions as part of its strategy to acquire industry leading companies in the regulated cannabis education, cultivation, manufacturing and distribution verticals.

“Our acquisition of Elevated initiates our strategy of investing in and acquiring industry technologies and companies in our targeted verticals. We’re excited to help expand the Elevated brand and offerings,” commented Mark Mersman, Chief Executive Officer of NewBridge Global Ventures. “We believe there is a significant need for medical professionals to become more informed on the endocannabinoid system and that bridging that gap between patient demand and healthcare provider knowledge is key to the growth of the emerging medical cannabis industry.”

SinglePoint Aquires Stake

SinglePoint Inc. (SING)  announced that it has signed a Letter Of Intent to acquire a stake in California cannabis cultivation MTH Development Group.  MTH currently operates 4.7 acres of land zoned for cannabis cultivation. SinglePoint has invested in the company in return for an equity stake. Currently the company leases its properties to licensed cultivators and operates one of the largest cultivations in Adelanto, California. This deal will further establish SinglePoint’s California footprint.

“We are excited for this opportunity. Having been to the operation and seeing their proprietary cultivation procedures we feel this is a great investment for SinglePoint. Part of this investment is to also test our new technologies with their tenants to improve as well as validate our systems. Their feedback will help us build the right solution and navigate the California market regulations”, states Wil Ralston President SinglePoint.

 

 


Robert LakinRobert LakinFebruary 27, 2018
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5min14100

The future of Israel’s $1 billion-plus medical cannabis export industry has been tossed back to Prime Minister Benjamin Netanyahu for a decision after consideration by the parliamentary committee overseeing marijuana policy.

Cannabis is classified as a drug according to Israeli law and any export plan requires the prime minister’s approval.

Earlier this month, in what was seen as deference to the Trump administration’s opposition to legalized marijuana, Netanyahu sent the plan back to advisers for reassessment, bringing export planning to a halt. The prime minister is currently embroiled in multiple investigations, including an influence-peddling scandal that threatens to bring down his ruling coalition that has been otherwise supportive of medical cannabis reform.

The Agriculture, Finance, and Justice ministries are strong supporters of reform legislation as marijuana is considered to be one of the country’s “crops of the future,” according to the Agriculture minister. He denied media reports that the Trump administration was influencing Israeli marijuana export policy. A decision by Netanyahu is expected within a month.

“There are tens of millions of people in the world for whom this is the last resort,” said Israel’s Minister of Agriculture and Rural Development Uri Ariel during the Knesset (parliament) committee meeting on Monday. “We’re not talking about any kind of narcotic, but about medicine. Israel shouldn’t export any raw material, rather medicine created following studies, like any other kind of pharmaceutical,” he said, according to Israeli business daily Calcalist.

Europe Seeks Israel Exports

Several countries have expressed interest in purchasing medical cannabis from Israel, including European countries where medical cannabis usage is growing, according to Israeli marijuana industry accelerator iCann. “Some nations, like Germany, currently rely solely on foreign producers,” vice president Sari Klaff wrote on the company’s blog earlier this month. After Netanyahu initially sent the policy back for review, iCann said the delay in a decision on Israel’s export of medical cannabis set the stage for a “staggering” potential financial loss.

However, if your horizon is “long-term growth and sustainability, then it doesn’t matter if the export is approved today, in a month, or in three months time,” Saul Kaye, the company’s CEO, said. “Export will happen from Israel.” The firm’s annual CannaTech event, spotlighting Israeli and global cannabis innovation, is scheduled over a three-day period mid-March in Tel Aviv.

Challenges to Nascent Industry

The policy would go a long way to addressing concerns about the quality of crops grown for export. In December, the director of the Health Ministry’s medical cannabis unit told the parliamentary committee that “most of what’s currently grown in Israel either does not meet the standards or is based on strains that have been smuggled into the country illegally.” Until that is remedied, according to director Yuval Landschaft, “we cannot establish an export industry based on strains that were smuggled in because we cannot export stolen goods.”

The Israeli government sees a significant economic opportunity in medical cannabis. Various published forecasts peg the sector to be worth from $260 million to as much as $1.1 billion by 2022. Earlier this year the government allocated the equivalent of $2.8 million for more than a dozen studies on boosting medical cannabis growing.

Eight growers have previously been licensed by the government to grow crops for export; Almost 400 Israeli farmers have applied for cannabis growing permits. The eight approved producers combined are permitted to grow as much as 25 tons of marijuana a year. Current demand is estimated at 10 tons, implying that an additional 15 tons could be grown without additional permits.

 

 


William SumnerWilliam SumnerFebruary 27, 2018
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4min5610

Part Four of a Four-part Series

The California Growers Association (CGA) believes that the California cannabis market is on the verge of a crisis. In a recently released report, the organization, which represents more than 1,100 small and independent cannabis businesses, details a litany of issues facing the California market; including the sobering statistic that less than 1% of the state’s cannabis cultivators are licensed.

So where do we go from here? How does California help stem the tide of this emerging crisis? In the fourth and final part of our four-part series, Green Marker Report will take you through the 36-page CGA report and break down some of the solutions it puts forward to fix California’s cannabis market.

If you missed the previous part, you can click here to view Part One, Part Two, and Part Three.

Of the many suggestions put forward in the report, the first and foremost is to eliminate emergency regulations passed by the state Department of Food and Agriculture which allows the unlimited stacking of 1-acre cannabis cultivation licenses. Opponents of the emergency regulation say that the rule violates the spirit and the letter of Proposition 64, which places a five year moratorium on large-scale cultivation, by allowing well-funded cannabis operations to essentially create mega-grows using a combination of small-scale cultivation licenses.

In addition to eliminating loopholes that favor large cannabis businesses, the CGA also suggests a total of 51 policy changes on the state and local; including the following

  • Allow smaller cannabis businesses to adjust to new regulation by creating tiered timelines for compliance.
  • Establish a temporary sales license enabling cannabis cultivators to sell directly to consumer through special event like Farmers’ Markets.
  • Remove premise requirements for cannabis transportation businesses.
  • Allow transportation businesses to reside at the same premises of another cannabis business
  • Reduce testing costs by allowing the compositing of multiple cannabis strains into a single testing batch and by reducing the number of batches required for testing.
  • Allow microbusiness license holders to operate at multiple premises for various purposes
  • Create a revolving loan fund for small cannabis businesses
  • Lower the excise tax rate
  • Streamline the cannabis tax collection process
  • Make compassionate use donations tax exempt.
  • Replace the cottage outdoor cultivation grow limit of 25 plants with a cultivation space limitation of 2,500 square feet.

Overall, the policy suggestions are aimed at reducing barriers for small, cottage, and specialty cannabis businesses; which the CGA characterizes as a “practical, economic, and moral imperative.” Noting that list of suggested policy changes was nowhere near comprehensive, the CGA hopes that it will serve as starting point for a wider discussion of cannabis regulation and encourages all concerned parties wishing to provide feedback to contact policy@cagrowers.org.



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