Technology Archives - Green Market Report

Jack SmithJack SmithJune 6, 2018
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3min1500

The effects of legalized marijuana are being felt far and wide across different sectors of the economy, especially media, as cannabisMD.com has officially launched, aiming to be the destination for consumers to learn about medical marijuana and how to treat particular ailments.

Described as WebMD meeting cannabis and CBD, cannabisMD.com will provide potential patients a plethora of curated and original content, including peer-reviewed research, original video content and more, to give readers the opportunity to make better-informed decisions about medicinal marijuana.

“We created cannabisMD.com to meet the educational needs of the marketplace,” said Rory Millikin, co-founder of cannabisMD.com in a statement. “Though the majority of Americans (61 percent) favor the legalization of cannabis for medicinal use, many of those consumers lack awareness of the ways in which cannabis may address ailments and diseases, and don’t know where to go to find credible information on the plant and its derivatives.”

Up to this point, Millikin added that the cannabis media market has largely consisted of companies that provide reviews, dispensary mapping technology or e-commerce, but little about the scientific information about the plant itself.

“cannabisMD.com has been designed with the patient and caregiver in mind,” Millikin said.

In the U.S., 29 states have legalized some form of marijuana use, making reputable content (such as that from cannabisMD.com and Green Market Report, the publisher of this website), more important than ever. Nine states, including the District of Columbia, allow it to be used for recreational use, though it is still illegal at the federal level.

Canada is expected to legalize marijuana across the entire country sometime this summer. However, recent industry reports have noted that Prime Minister Justin Trudeau and his team could push that back to the fall, as opposed to July, as had been previously thought.

In addition to the aforementioned content that will run on cannabisMD, readers will also see patient testimonials, various patient and clinical forums and content from a “best-in-class medical staff with multiple Ph.D. degrees and experts in biomedicine, psychology and Western medicine.”


William SumnerWilliam SumnerMay 18, 2018
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7min3081

The cannabis technology company Eaze finds itself in legal jeopardy as a class action lawsuit has been filed alleging that the company violated the Telephone Consumer Protection Act (TCPA) of 1991 by sending out unsolicited marketing text messages en masse various individuals across the country.

Under the TCPA, companies are prohibited from sending unsolicited adverting messages and from making a call or text using automated telephone equipment to contact individuals through any service for which the recipient is charged.

The lawsuit was filed by Farrah Williams and reported in MJ Biz Daily, who alleges that between September 2017 through the present she received dozens of unsolicited texts messages from Eaze. Williams, who works nights at a nursing home, claims that the continuous messages sent by Eaze throughout the day would wake her up and prevent her from going back to sleep; causing her to become irritable and distracted.

Williams’ suit claims that Eaze contacted her through the use of an autodialer and that the same had happened to countless others. To bolster this claim, Williams provided text messages from Eaze as well as social media posts made by individuals making the same allegations.

“@Eaze_Team @Handstack received an unsolicited text message from you guys. how do you have my number???” reads one tweet posted on June 17, 2017.

“What company is idiotic enough to use unsolicited SMS as a marketing scheme? @Eaze_Team is going to get sued out of existence,” reads another.

Although it is possible to opt-out of receiving text messages from Eaze by replying with the word “Stop,” Williams claims that she was not made aware of this option in the message.

The case goes into great detail about the money that Eaze has raised and suggests that the money was raised off the tremendous growth that Eaze was experiencing, but that the success was achieved through “growth hacking.” The suit claims, “The reality is that Defendant “growth hacked” its way to the top of the pot delivery business – specifically, by relentlessly bombarding existing and prospective customers with text messages and other digital spam, day after day, en masse, without anyone’s permission, precisely as experienced by Plaintiff here.” The case claims the growth hacking was at the expense of people’s privacy.

It went on to state, “The inconvenient truth, however, is that Defendant’s exponential growth is not attributable to the quality of the product it delivers or the convenience of the service it provides – after all, the product is not even grown by Defendant, and Defendant is hardly the first drug dealer to deliver.”

Bitesize

The case also mentions the technology provided by (among other agents or affiliates) a company called Bitesize, which was founded
and is operated by an individual named Jessica Lee. Bitesize’s text messaging technology “helps companies,” including Defendant, “drive sales with interactive text message[s],” which Bitesize sends on the companies’ behalf in “bulk.”  The case goes on to say, “The
founder and CEO of Bitesize, Jessica Lee, personally responded to the complaint by assuring the individual that Defendant’s text message program is “completely CAN-SPAM compliant.”

The lawsuit says that the text messages at issue, in this case, were sent by Bitesize on behalf of Defendant with the wrong regulatory scheme in mind.

Restitution

As restitution Williams is seeking an injunction prohibiting Eaze from committing any further violation of the TCPA, $2000 for herself and each member of the lawsuit for each and every text message that violated the TCPA, and payment of attorneys’ fees and costs.

If found guilty of violating the TCPA, and if more join the class action lawsuit, the cost of paying Williams and the other plaintiffs could potential bankrupt Eaze.

As outlined by the lawsuit, the outcome of the case will hinge on five important questions:

  • Did Eaze or its agents transmit marketing/advertising messages to the plaintiffs?
  • Was Eaze using an automatic dialer to transmit the messages?
  • Can Eaze demonstrate that it had expressed written consent to send the messages?
  • Was Eaze’s conduct knowing or willful?
  • Should Eaze be prevented from performing such actions again?

So far Eaze has not made any public comment on the case and has proffered no rebuttal to any of the claims the suit makes. As the lawsuit is still in its infancy, it could be months or even years before the case reaches a definitive conclusion.

One cannabis industry expert that preferred to not be identified said the suit didn’t pass the smell test for them. “It’s either a class-action grab by the lawyer or someone out to get Eaze,” they said. “It just seemed odd. You can’t text stop, but you can file a lawsuit?”


William SumnerWilliam SumnerMay 7, 2018
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4min3464

It’s safe to say that the cannabis industry is growing up. Less than a decade ago, the majority of cannabis users were still purchasing from black market dealers. Fast forward to today, where recreational cannabis is legal in eight U.S. states and medical cannabis is legal in most of the country. People are no longer buying cannabis in parking lots, they’re buying it in dispensaries and they’re buying it online.

For cannabis companies hoping to make their mark in the industry, setting up their own e-commerce shop is a great way to gain visibility and get more customers. But as they say, the devil is in the details, and for those that lack the acumen for web design, there is a bevy of B2B cannabis companies that can help you set up your e-commerce shop.

Here are the Top 4 Cannabis Companies that offer e-commerce solutions:

  1. Baker
    Baker is an extremely popular e-commerce platform. Like many B2B e-commerce platforms, Baker can help dispensaries monetize their website through the addition of a digital menu, online checkout, and customer loyalty programs. But what makes Baker shiner brighter than most is its ability to integrate and communicate with other digital cannabis platforms, which is made possible through its recently launched API. Baker currently integrates with over 20 digital cannabis platforms, including FlowHub and Leafly.
  2. WeedHero
    WeedHero is a small company based in Portland, Oregon, that aims to smooth out interactions between medical cannabis dispensary owners and their consumers. Its full-featured marketing software is designed to make it easy for dispensaries to turn their websites into an e-commerce marketplace. With WeedHero, customers can browse search-engine friendly menus, choose between pickup or delivery, and even categorize their favorite product. WeedHero also offers free installation and a risk-free 15 day trial.
  3. Green Marimba
    Green Marimba offers a wide array of web-based services, including e-commerce services. Like Baker, Green Marimba offers multiple integrations with various web platforms. Unlike Baker, however, most are not directly related to the cannabis industry, with the exception of metrc. Green Marimba also offers services such as cannabis legal compliance, supported by a team of Colorado-based attorneys, and seed-to-sale inventory tracking.
  4. 365 Cannabis
    365 Cannabis offers a suite of digital tools for medical cannabis dispensary owners, from built-in POS software to e-commerce solutions. With 365 Cannabis, dispensary owners can set up their own e-commerce shop and customers can order cannabis online for pick up or delivery. From the dispensary side of the equation, employees can track which patients use their dispensary as well as the kinds of products they purchase. 365 Cannabis also features both B2B and B2C configurations, so that individuals can sell to both businesses and patients.

Did we miss something? Who is your go-to for e-commerce solutions? Sound off in the comments below!


William SumnerWilliam SumnerApril 12, 2018
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3min5010

Flowhub, a provider of compliance software for cannabis companies, announced today that it had entered into an agreement with technological giant Hewlett Packard (HP) to provide the company’s clients with HP’s ElitePOS Retail Point of Sale Terminal.

The ElitePOS Retail Point of Sale Terminal is currently on sale now and can be purchased online through Flowhub’s website. Integrated with the metrc compliance and business management platform, the terminals will help assist dispensary owners in keeping accurate records and staying compliant with state cannabis laws.

“HP is one of the largest and most innovative retail hardware manufacturers in the world,” said Kyle Sherman, CEO of Flowhub. “As we expand to new markets like California, we couldn’t think of a better partner. Retailers in this industry are bombarded with hobbyist software solutions with consumer hardware choices that cause compliance and operation headaches. Flowhub is excited to offer professional retail standard solutions that you’d find in other industries.”

As more states begin to legalize cannabis, the need for hardware and software to track cannabis sales and transportation records has become an ever-increasing concern. Flowhub’s partnership with HP is just the latest in a line of tech companies that have begun working with the cannabis industry.

Tech Giants Join Cannabis Industry

In 2016, Microsoft announced that it would welcome Kind Financial, which is also a cannabis compliance company, onto its Azure Government platform. A little more than a year later, news also broke that IBM had submitted a three-page proposal to the Canadian provincial government of British Columbia endorsing the idea of using blockchain as part of a seed-to-sale tracking system.

“HP is delighted to have our ElitePOS point-of-sale system selected by Flowhub for this comprehensive solution targeted to the growing Cannabis industry,” added Aaron Weiss, HP Vice President and General Manager for Retail Solutions. “Flowhub is one of the original metrc™ approved vendors with years of compliance experience, and HP is delighted to be a key part of the solution in this exciting new regulated industry.”


Debra BorchardtDebra BorchardtApril 11, 2018
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3min3630

Cannabis workforce software company Wurk announced that it has raised $3.2 million in a bridge funding round. The funding round included participation from both new and returning investors, including Poseidon Asset Management, which led the round, as well as Phyto Partners, Altitude Investment Partners, Arcview Investor Network and Arcadian Fund.

“The cannabis industry has made huge strides since Wurk was founded in 2015, making the jump from a fringe economy into a legitimate industry,” said Keegan Peterson, Founder, and CEO of Wurk. “As the industry continues to grow, companies in the space need legitimate HR infrastructures to protect what they’ve built and set themselves up for growth and enable future expansion. ”

Peterson said that the current workforce solutions in the market didn’t address the specific needs of the cannabis companies. Since each state has its own set of rules and regulations for the industry, WURK specifically addresses those conditions in its software for its clients. Other mainstream products are standardized and don’t write custom code for each state.

Another problem for cannabis companies that WURK addresses is the payroll issue and banking. “Being able to move money is an issue with cannabis,” said Peterson. “A big issue with the other companies is the banking issue that they don’t resolve. We’ve partnered with institutions that can move money legally for payroll.”

WURK’s investors seem happy with their initial investment into the company as many came back. The company is growing so quickly it has needed the additional capital to make new hires to keep up with the demand.

“After participating in Wurk’s previous two funding rounds, we are thrilled to have the opportunity to invest in the company yet again,” said Emily Paxhia, Managing Partner at Poseidon Asset Management. “As investors focused on the cannabis space, we regularly see the HR, accounting, and tax challenges that cannabis startups face on a frequent basis. Wurk’s solution helps ease that massive burden on the industry and creates a huge investment opportunity in doing so.”

Peterson said they’ve already begun putting the money to work with the hiring of a new Chief Technical Officer and Chief Operating Officer. In addition to that, they plan on hiring more sales reps and service reps.


William SumnerWilliam SumnerFebruary 28, 2018
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3min7140

Cannabis testing company EVIO, Inc. (EVIO), announced that it expects to double the number of its cannabis testing laboratories from 9 to 18 in the coming year.

As legalization spreads across the United States, laboratory testing has become more integral to the legal cannabis industry. In states like California, a shortage of testing facilities has led to a bottleneck of cannabis cultivators and a surge in cannabis testing prices. Recent reports by BDS Analytics have estimated that the California market may reach as high as $5.1 billion by 2019 and the company estimates that cannabis testing will account for as much as 5% of that figure, or approximately $250 million.

Bearing this mind, the company hopes to focus its expansion on the critically underserved California market.

Heading up the expansion are two new additions to EVIO’s management team; Albert Lustig and Ron Russak. Lustig recently departed from his position at Pfizer as State Director, where he was responsible for managing multiple districts, regional and national sales organizations. Lustig will serve as President of Operations and use his experience to help drive growth in new and existing markets.

Russak will serve as Vice President of Operations and draw upon his more than 17 years of experience working for Quest Diagnostics, one of the United State’s leading testing providers, to help the company with scaling existing and new laboratory operations. Both EVIO and Quest operate under a “hub and spoke,” business model in which over-arching decisions and resources are centralized and distributed from the “hub.” This business model is most popular with transportation companies, but have also caught in industries such as aviation and cannabis.

The company also announced that on Feb. 7, 2018, its licensee, Kaycha Holdings, became the first cannabis testing lab in Florida to gain ISO 71025 accreditation; which is the highest quality standard in the world for testing laboratories. Currently, all of EVIO’s laboratories are either accredited or in the process of accreditation.


Debra BorchardtDebra BorchardtFebruary 23, 2018
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6min8060

After selling his accounting software company Outright to website behemoth GoDaddy, entrepreneur Ben Curren thought he’d take a couple of years off. But three months into his break, he got bored. He decided to look back through his “idea book” where he would jot down various inspirations and saw the comment “look into cannabis.”

This was the genesis of the creation of Green Bits, that bills itself as the “Square” of cannabis. He did “look into cannabis” and his research showed him an emerging industry that had a huge number of complicated challenges on the retail side. His background in accounting, compliance and helping small businesses fit nicely with the skills required to tackle the industry problems.

Curren created a one-page flyer addressing the industry pain points and how to solve them. He sent it to license holders in Washington essentially saying, “Hey, we’re building this, are you interested?” To his surprise, people responded even though he didn’t have the product built. The process of asking potential customers what they needed as he was building it, helped Green Bits to deliver a strong end result. “This process helped us get our first 15 customers,” said Curren. This was 2014 before the dispensaries had actually opened. “These customers helped my funding to get this thing built,” he said.

Fast forward to today and Green Bits serves more than 800 legal cannabis retailers in seven states. The company processes more than $2 billion in annual sales through its point-of-sale system. In just a few short years, Green Bits is beginning to surpass its competitors in the number of dispensaries it works with.

The software is subscription-based and tracks inventory of marijuana for retail dispensaries and automatically provides information to the government in order to make sure the businesses are in compliance with state rules. The software also helps dispensary owners manage cash flow and inventory. The product can provide customer verification at check-in and automatically limits transactions from states where cannabis is illegal. Green Bits works with all the seed-to-sale tracking systems as well. Taking the information from these programs and then funneling that through to the proper authorities.

Curren wrote most of the original code himself with some help from his Outright coders that were working at GoDaddy.com at the time. These original founders worked during their off hours and took vacation time from GoDaddy as the dispensaries went live. They no longer work at GoDaddy.

The curse and the blessing for this serial entrepreneur was the limitation of licenses. The small number of licenses kept the company’s growth in check, but the blessing was that the slowness allowed Curren to bootstrap the company. “I didn’t have to dump in a half million dollars at once,” he said. “I could do small amounts as necessary to build the company. Now we’re around 45 people serving almost a thousand dispensaries.”

Beating The Competition

MJ Freeway and BioTrack are his biggest competitors. These companies were created earlier than Green Bits, but he wasn’t intimidated. “BioTrack and MJ Freeway pretty much ran all the dispensaries in the state of Washington. We went after the recreational market and they were in the medical. In less than four years, we took 80% of the market away from them” said Curren. “The same thing is happening in Oregon.”

The limitation of licenses is the biggest challenge for this growing company. “We need the market to be larger in order to be a large technology company,” said Curren. Ideally, he’d like to get to ten thousand dispensaries, but of course, there aren’t even that many in the country at this time.

While the Green Bits strives to protect its customers from the headaches of compliance, even this company concedes that the current situation in Washington state goes beyond what it can do. The transition from BioTrack to Leaf Data has been problematic. “It’s definitely challenging,” he said, “But Washington has the second most sales of any state. You’re moving from Biotrack that went from 5 dispensaries to 400. It grew slowly. Leaf Data has had to take it over right away when everything was already running.” Leaf Data has made the same argument when answering criticism over the problems of the transition.

Curren said it was 100% impacting businesses. He added, “It’s quite costly for us to work around these issues, but things have been improving over the past week.” In the meantime, Green Bits will continue to protect its customers from the pains of being in the cannabis industry.


William SumnerWilliam SumnerFebruary 9, 2018
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8min4500

The cannabis industry in Washington is in a crisis this week as technical issues concerning that state’s new seed-to-sale tracking system continue to cost business owners thousands of dollars in lost sales and diminishing inventories.

Dubbed Leaf Data Systems, the new software was developed by Denver-based MJ Freeway, which provides business management solutions and consulting services for the cannabis industry. Launched on the first of February, the system has been plagued by a slew of bugs from the very start.

According to the Seattle Times, some growers have complained that the system scrambled their shipping orders while some dispensary managers have been unable to receive order shipping manifests. In addition to slowing down or altogether halting daily business operations, some users haven’t even been able to log into the system at all.

Initially, the state was supposed to switch over to a new seed-to-sale tracking system in November 2017 but the technology company chosen as the vendor, Franwell, abruptly backed out of the contract. MJ Freeway was subsequently chosen to pick up the contract but was only given several months to put together a system.

In a letter to licensees, Washington Liquor and Cannabis Board deputy director Peter Antolin said that the source of the transfer/manifest issues was related to an unauthorized access of the traceability system.

The system intruder reportedly downloaded a copy of the traceability database and took undisclosed actions which caused the technical issue with inventory transfers. Although no personally identifying information was stolen, the WSLCB says that some information was accessed.

The intruder gained access to route information of manifests filed between Feb. 1 and Feb. 4 as well as transport information; such as the vehicle type, VIN and license plate number. Driver information was not accessed.

The WSLCB claims that the issue has been resolved and that it and MJ Freeway are working towards fixing the other technical glitches within the system, noting that there are several workarounds for the errors while the system is being fixed.

Despite the board’s reassurances, some cannabis business owners, like Cannasol Farms CEO Jeremy Moberg, are more than skeptical.

“I don’t believe it’s fixed,” said Moberg told MJ Biz Daily. “Not until I hear of retailers bringing in product.”

Moberg went on to say that he has approximately $18,000 in inventory sitting in a van because he cannot integrate his company with the Leaf Data Systems and that this week he’s had to lay off all but a handful of employees who are remaining to help him figure out the system.

“If you think about five days in this industry, it’s millions of dollars worth of transactions that are not happening,” Moberg added.

Some business owners have suggested that the state cancel its contract with MJ Freeway and go back to the contingency system left by the state’s previous vendor BioTrackTHC. But as the state continues to fix the technical glitches, cannabis businesses will continue to lose thousands of dollars; and while Washington’s cannabis industry will at some point return to normal, for many businesses, the damage has already been done.

The Back Story

 

 BioTrackTHC was contracted in 2013 to monitor the program with its seed-to-sale tracking, and by all accounts, it seemed to be working just fine. Then the state decided to open the program up to a public bid to see if there might be a better vendor for a better price.

In June the state selected Franwell’s METRC system to replace BioTrackTHC. However, when Franwell came to the table to begin the negotiations of planning the program takeover, talks quickly broke down. On June 9, Franwell walked away from the contract and never spoke publicly about it. One inside source said that basically, the state wanted more than what they were willing to pay for from Franwell. 

The state then chose MJ Freeway, which has had its own share of troubles last year. The company has suffered hack attacks, alleged security breaches (which the company denies) and systems failures. By winning the contract, it was also put in the position of trying to take over a multi-million dollar system with over 1,700 participants in a matter of months. No easy task for any software company. MJ Freeway issued a video response regarding the situation and trying to address market concerns.

BioTrackTHC was set to terminate its contract on October 31, but in early October the state began talking to BioTrackTHC to extend the contract. “Events occurred that brought up a potential security concern,” said Jeff Gonring, Director of Market and Communications for BioTrack. He was referring to security over data issues surrounding MJ Freeway. Regardless, BioTrack designed a work around for the state to use as it makes its transition. This band-aid approach has helped the customers and reduced BioTrack’s exposure to MJFreeway’s security problems that seem to plague the company.


Michelle JanikianMichelle JanikianJanuary 26, 2018
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4min38671

This week, an all-in-one platform for cannabis business owners, Cannabiz Connection, was launched.

The site serves as a social network for “canna-business” owners, as well as a directory of attorneys, consultants, contractors, start-ups, and existing businesses. It’s meant to be a business accelerator and resource, keeping its members up-to-date on things like local regulations.

“I created the all-in-one Cannabiz Connection platform to help people learn, grow and build successful cannabis careers,” says Founder and CEO, Jamie Cooper.

For now, the site is focused on the Michigan cannabis industry, where Cooper is based, but she plans to expand to other states by the end of 2018.

The Cannabiz Connection community will hold quarterly networking events where canna-business owners, along with consultants and other industry players, can meet and socialize in person. They’re also planning an annual Holiday Networking Gala.

In addition, Cannabiz Connection is starting a free weekly webinar series to educate its members on everything related to the cannabis industry. The webinars will be held on Tuesdays from 12-1PM EST, hosted by Founder Jamie Cooper. The first will be held next week, on January 30th, focused on understanding insurance choices and coverage in the cannabis industry. Cooper will be joined by Amanda Kugler and Stephanie Goodman of Bricks and Mortar Cannabis Insurance. Members can register for the webinar here.

Cooper will be joined by our own Editor-in-Chief, Debra Borchardt, on Wednesdays for another weekly broadcast, “Cannabiz & Company: Creating Buzz Around Cannabis Business News”. This one doesn’t require Cannabiz membership and is to broadcast on Facebook Live every Wednesday at 1 PM EST.

Membership is free to business professionals and gives access to the Cannabiz social network, directory, and business building resources. For those looking to advertise their products or services, like consultants or attorneys, a fee will be required.

Cooper is a cannabis industry expert who is also the Founder of Canna Media Works, a full-service marijuana consulting, advertising, and marketing agency. She was recently named one of the 50 Most Influential Women in West Michigan by Grand Rapids Business Journal, the only cannabis entrepreneur on the list.

Michigan Marijuana Laws

In November 2008, the Michigan Medical Marijuana Initiative was approved by 62.7% of voters, making Michigan the thirteenth state to legalize medical marijuana. The Michigan Medical Marijuana Initiative decriminalized the cultivation and use of medical marijuana by seriously ill individuals who have obtained a doctor’s approval. It allows patients to grow up to 12 marijuana plants and possess up to 2.5 ounces of usable marijuana. Qualified caregivers can grow up to 12 marijuana plants for each patient, with a maximum of five patients per caregiver.

The Coalition to Regulate Marijuana Like Alcohol had planned to file petitions with the state after saying it had collected enough signatures to qualify for the 2018 ballot. One problem remains, the group is struggling to pay off the professional firm it hired to gather them. Difficulty in raising money to support the group could signal a lack of support for the initiative.


Debra BorchardtDebra BorchardtJanuary 26, 2018
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3min5880

Kyle Sherman, the founder of cannabis software company Flowhub knew he wanted to be a part of the cannabis industry. His personal experience with anti-depressants and his desire to rid himself of those drugs led to experimentation with medical marijuana. His success with that withdrawal gave him an intense passion to work towards legalizing cannabis so others could benefit as he had.

In 2014, he headed to Denver, Colorado as the legal cannabis market was blossoming. He worked with Dixie Elixirs, WeedMaps and ultimately ended up as a compliance officer. Through this work, he realized that there was no way to report to the seed-to-sale tracking software Metrc through an API (application program interface).

“I started to investigate and look for something that would work. Instead, I built a prototype,” said Sherman. He closed on a seed round of funding in 2015 for Flowhub and was the first to integrate with Metrc’s API. For the business owner, it provides automatic compliance with state regulators by sending back information directly. Flowhub also has a handheld device that cultivators can use to scan barcodes and track plant movement. It can track employee productivity as well, saving employers money and headaches.

On the retail side, Flowhub has a point-of-sale technology and can manage inventory. The company partnered with CannaPay for cashless payments. “We track everything,” said Sherman, noting that all of this tracking protects the business owner.

The California Challenge

His latest challenge is the California market. The state just began legal sales of adult-use marijuana on January 1, but the Metrc system is not in place yet and many businesses are operating with a temporary license. Sherman said he believes that companies will receive permanent licenses when Metrc goes live. “I also think some of the companies with temporary licenses won’t get permanent ones,” he said.

While the Denver market has embraced the regulatory environment, some Californians have been reluctant. “You’ve got folks who are open-minded to this shift and then you have other groups that are operating in the grey market and are resistant to change,” he said. “They don’t want to report to Metrc.” Sherman found this was a tough conversation to have with a lot of long-time cannabis businesses. “A lot of folks are not willing to look at solutions,’ he said.

Of course, at some point, these business rebels will have to capitulate and join the regulatory landscape or face getting shut down. Sherman noted that the savvier business owners realize they have to do this and aren’t fighting it.

 



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