CannaSafe Archives - Green Market Report

Debra BorchardtDebra BorchardtOctober 2, 2019
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8min4520

Vape products, once considered the rising stars of the legal cannabis marketplace have struggled under the weight of the vaping crisis. Massachusetts banned all vape products for four months in order to err on the side of caution while the issue is investigated. Around the middle of August, vape product sales began dropping according to data from Headset, however, it seems the group may be slowly recovering. The following table was provided by Headset.

Sales in Nevada and Washington both began to pick back up, while California seems to have stabilized. Most consumers are learning that the issues with vapes stemmed from products purchased outside the regulated channels. 

A report from the CDC (Center for Disease Control) stated, “In addition, the report from Illinois and Wisconsin showed that nearly all THC-containing products reported were packaged, prefilled cartridges that were primarily acquired from informal sources such as friends, family members, illicit dealers, or off the street.”

It seems illicit market and unregulated vape producers were using thickening agents like Vitamin E with disastrous results. The industry, in general, has suggested that regulation will solve this issue and many are trying to convince the consumer that they can trust a regulated brand.

“The widely publicized public health issue relating to the use of liquid vapes is something that SLANG takes extremely seriously,” said SLANG Worldwide (OTC: SLGWF) CEO Peter Miller. “We encourage investigation and research into the causes of this issue and hope that our collective understanding of the results leads to more thorough and effective regulation of the industry.”

SLANG said it is not aware of any of its products being identified as a contributor to any of the recent illnesses associated with vaping technology. SLANG is not currently operating in Massachusetts and had postponed plans to enter that state. It doesn’t expect to be adversely impacted by Massachusetts’ temporary ban on vaping products.

1933 Industries (CSE: TGIF) (OTCQX: TGIFF) said, “All our branded THC and CBD vape products do not contain vitamin E acetate, vegetable glycerin, or propylene glycol. All our products are made with ingredients that are known to be safe for consumers. All packaging contains our product ingredients, which are also listed on our website. Each and every product is third-party lab tested, and the results can be tracked via a QR code.”

Testing Boom

Of course, in order to be sure testing is the best way to go and this crisis could present an opportunity for the lab group to capitalize. CannaSafe, California’s leading accredited cannabis testing laboratory said it will expand contaminant testing to Vitamin E additives, in response to ongoing concerns around consumer vaping safety. CannaSafe is the first laboratory to offer this service and will also provide testing for additional additives including medium-chain triglycerides, vegetable glycerin, and propylene glycol in the coming weeks.

“Trusted cannabis companies are taking it upon themselves to impose high-quality standards on consumer products, and we are ready to work with any business that wants to show customers that their products are free of toxic additives,” said Aaron Riley, CEO of CannaSafe. “We also urge brands and retailers to share test results with their customers as a gesture of good faith.”

Modern wellness company, dosist, is the first brand to voluntarily undergo Vitamin E testing with CannaSafe. Other brands that will utilize Cannasafe’s testing technology include Orchid Essentials, Select, Heavy Hitters, Stiiizy, King Pen, Lowell Herb Co., Pure Vape, Tikun, and Raw Garden. The Vitamin E test is available to brands and manufacturers across the state for an additional $225.

 


William SumnerWilliam SumnerJuly 11, 2019
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5min4620

It’s time for your Daily Hit of cannabis financial news for July 11, 2019.

On the Site

Bhang Corporation

Cannabis edible company known for its chocolates Bhang Corporation (CSE: BHNG) began trading on the Canadian Securities Exchange as Bhang Inc. under the stock symbol “BHNG” on July 11, 2019. “We’re proud to announce this major milestone for Bhang and the industry, as we see a national cannabis brand begin trading on the CSE. This public listing fuels our strategy to meet the growing demand for today’s most innovative cannabis products,” Scott Van Rixel, CEO of Bhang, said.

California Cannabis Contract Conundrums For Lawyers

We were prompted to write this article by the juxtaposition of two articles republished by Cannabis Business Executive in its July 4th Edition. The title of the first article, The Top 5 Most Dangerous Cannabis Contracts in California, caught our eye. We were intrigued by the title. What is a “dangerous” contract?

Executive Spotlight: Antonio Frazier, Director of Operations for CannaSafe

Antonio Frazier is the Director of Operations at CannaSafe, the first ISO licensed cannabis lab in the world and the leading marketshare holder in California. He met CannaSafe President, Aaron Riley, while playing football together at Furman University, where he earned a Bachelor of Science degree; he also holds a B.S. in Materials Engineering from Clemson.

In Other News

Demetrix

The biotechnology company Demetrix Inc. announced that it had raised $50 million in Series A funding. The company specializes in the production of CBD through fermentation, using bakers’ yeast to help accelerate cannabinoid production. Tuatara Capital led the fundraise and included investors from Horizons Ventures, who led Demetrix’s previous $11 million Series Seed round. Demetrix plans on using the funds to scale its operations.

Trulieve

Trulieve Cannabis Corp. (CSE: TRUL) (OTC: TCNNF) announced that its company founders have voluntarily entered into a lock-up agreement. Representing 65,253,093 subordinate voting shares of the company (59.25%), shareholders have agreed that they will not sell or offer to sell their shares on or before July 25, 2020. On January 25, 2020, an additional 15%, or 11,205,960, of the subordinate voting shares will be released from the lockup. According to Trulieve CEO Kim Rivers, the lock-up will help increase shareholder value. “This extension of the lock-up period demonstrates the continued confidence the company founders have in the execution of our long-term strategy,” Rivers said.

Green Growth Brands

Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) announced that it had reached a deal with American Eagle Outfitters to sell hemp-based CBD infused products in nearly 500 of the retail clothing brand’s stores, as well as its online store. The products will be specifically designed for the American Eagle brand, and sales are expected to begin sometime in October 2019.

Supreme

The Supreme Cannabis Company, Inc. announced today that the Supreme Court of British Columbia had approved its acquisition of Blissco Cannabis Corp. The arrangement will close on July 12, 2019, upon which Supreme will acquire all of Blissco’s issued and outstanding common shares. “With the closing of this acquisition, Supreme Cannabis will expand its portfolio to include a consumer focused brand that specializes in products for the premium global wellness category,” said Navdeep Dhaliwal, CEO of Supreme Cannabis. “In addition to gaining an established wellness brand, Supreme Cannabis will acquire Blissco’s facility built to EU GMP standards that has been extracting oils for the Canadian market since August 2018.”


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7min12060

The cannabis space is full of opportunities for bright young minds to bring innovation and a new way of thinking to an industry that is rather new and open to different perspectives. As such, Millennials have begun to make their mark within the cannabis industry, and their efforts are being recognized.

Here are three emerging and successful entrepreneurs who are making waves in the cannabis industry and modeling the way for both their successors and predecessors on how to make a serious impact in an emerging industry:

Karson Humiston, Founder & CEO, Vangst

Recruitment has become front and center with numerous platforms that aim to connect eager applicants with vacant opportunities within a growing and established companies. 

Karson Humiston, with a background in student travel after founding On Track Adventures, Karson has gone on to become the Founder & CEO of Vangst, the cannabis industry’s leading recruitment and hiring platform.

Since launching in 2016, through Direct Hire & Vangst GIGS, Vangst has connected more than 10,000 people with jobs at over 650 leading cannabis businesses around the US and Canada. 

Her accomplishments include raising $12.5M from leading tech and cannabis investors, including Lerer Hippeau and Casa Verde Capital. She was featured on the 2018 Forbes 30 under 30 lists.

Ryan Smith, Co-Founder & CEO, LeafLink

Companies that have aimed to streamline communications and operations processes within the cannabis industry have found great success. POS systems, inventory management systems, and internal/external communication systems are helping cannabis companies find efficiencies that in turn increase profit.

Ryan Smith is the co-founder & CEO of LeafLink, the cannabis industry’s wholesale marketplace. LeafLink connects thousands of cannabis brands and retailers and empowers them to streamline the ordering process, simplify communication, and spend less time on administrative work, so they can focus on growing their businesses.

Launched in Colorado in March 2016, LeafLink is now live in 20 territories across the United States and Canada. Under Smith’s leadership, LeafLink has raised $14 million in investor capital with the software helping cannabis retailers and brands to manage over $1B+ per year in orders.

Smith specializes in managing B2B firms and online marketplaces, successfully founding and exiting two companies, one of which he sold to an NYSE public firm. In 2016, he was the first CEO of a cannabis-facing company to be listed on Forbes’ 30 Under 30 list. In February 2018, LeafLink was the first company in the cannabis space to make Fast Company’s 2018 list of Top 10 Most Innovative Companies in Enterprise.

Aaron Riley, President & CEO @ CannaSafe

An important component of cannabis legalization has been product testing to ensure all that is sold to consumers are free of contaminants and pesticides while providing information on cannabinoid content for consumers.

With experience in the luxury car industry, Aaron Riley brings his business acumen to the cannabis industry in his role as President of CannaSafe, the first ISO accredited cannabis lab in the world. CannaSafe is a full-service testing lab offering a one-stop solution where cannabis cultivators and distributors can ensure they are in full compliance with all regulatory requirements and that their products are safe and effective for use.

Their 12,500 square foot lab facility, based in Los Angeles, CA, currently tests approx. 25% of all compliant batches in the state. The company has a second facility opening later this year. Riley obtained a Bachelor &  M.B.A. from Jacksonville University, earning his way through college on a football scholarship. Under Aaron’s leadership, CannaSafe recently won Testing Facility of the year award for California by Dope magazine.

Follow in their Footsteps

Opportunities abound for emerging professionals within the cannabis industry. Green Market Report featured cannabis companies that are accepting summer internships for young professionals to get their foot in the door and follow in the footsteps of these three professionals under 3 who are getting noticed within cannabis.

 



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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


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