Tag Archives: Federal

USDA’s Hemp Testing Rules: Fast Track Your Lab’s Preparedness with Digitization

By Martha Hernández
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The United States Department of Agriculture (USDA) issued a Final Rule (FR) on hemp testing that went into effect on 22nd March 2021. Consequently, all hemp testing laboratories must familiarize themselves with what is stipulated in the FR and do all that is required to comply.

The 2014 Farm Bill put to an end to years of hemp prohibition, at least to some extent. It also paved the way for the 2018 Farm Bill that brought hemp at par with other agricultural crops. States, through their departments of agriculture and institutions of higher learning, were allowed to cultivate industrial hemp for research purposes, under what was called the hemp pilot programs. Some states also allowed individuals to cultivate hemp to investigate the economic and agronomic viability of the crop. This increased the acreage of industrial hemp from zero to about 90,000 by 2018 when the Agricultural Act that legalized hemp was passed. Some of the states that participated in this program included Colorado, Kentucky, Montana, and Oregon.

As expected of a new project, some challenges cropped up, including:

  • Inconsistency in the quality of hemp produced for research
  • Varying hemp laws between states
  • Maintaining regular supplies of inputs such as seeds and pest control
  • Lack of appropriate knowledge and technology

The 2018 Farm Bill addressed some of these challenges through the Hemp Farming Act that proposed to remove hemp from Schedule 1 of the Controlled Substances Act. Hemp, in this case, refers to cannabis sativa that contains less than 0.3% THC by “dry weight.” Proposals in the hemp act were incorporated into the 2018 U.S. Farm Bill and it became law in December 2018, thus making hemp legal at the federal level.

Unlike other agricultural commodities, hemp is a highly regulated crop because of its close association with cannabis which is still under Schedule 1 controlled substances. Once hemp exceeds the 0.3% THC threshold, it becomes classified as cannabis and is, therefore, governed under a different set of regulations.

The next step after the legalization of hemp was to roll out a nationwide hemp cultivation and distribution program. Consequently, the U.S. Food and Drug Administration (FDA) was instructed to develop a national framework to regulate the production of hemp in the U.S. An Interim Final Rule (IFR) was published in October 2019 to set the ball rolling. A final rule was published as an improvement of the IFR in January 2021. The Final Rule was created based on public comments received during the period as well as direct lessons learned in the 2020 growing season. The Final Rule took effect on 22nd March, 2021.

A schematic representation of the key federal rules for hemp testing laboratories (Figure courtesy of CloudLIMS)

The USDA requires that all hemp be tested by a third-party laboratory to ensure that quality is maintained and that the THC threshold is not exceeded. The Final Rule made significant changes to the USDA’s hemp testing rules that will affect how laboratories carry out their operations. While the guidelines were issued on January 15, 2021, they went into effect on March 22 of the same year. If you are a hemp-testing laboratory, here are the most important changes that you should brace for.

Nine Changes Hemp Testing Labs Must Comply With

  1. Changes in sampling 

Previously, samples to be tested were restricted to the top third portion of the hemp plant. With the Final Rule, samples can be taken anywhere from 5-8 inches from the main stem (including the leaves and flowers). This provision offers greater flexibility and reduces the chances of “hot” hemp.

  1. Laboratories shall use specific testing methods

According to the Final Rule, hemp-testing laboratories must use reliable methods to test for THC concentration. This includes methods such as post-decarboxylation; they take into consideration the conversion of THCA to THC after decarboxylation. Currently, methods that meet these requirements include gas chromatography and liquid chromatography.

The USDA also expects that laboratories demonstrate consistent testing reliability and validity. The test methods used must have high specificity for THC and other tested compounds.

  1. Negligence limit raised to 1% THC

Negligence limit refers to the extra wiggle room that is advanced to hemp farmers in regards to THC testing. In the IFR, hemp that tested above 0.3% THC but lower than 0.5% was considered negligence and not a violation of federal laws. This limit for negligence has now been pushed from 0.5% to 1%. As much as the Final Rule has maintained the THC limit for hemp at 0.3%, growers now have a wider margin of error to work with.

For hemp-testing laboratories, all samples that test above 0.3% THC are still considered hot hemp and must be destroyed or remediated. However, samples testing below 1% THC are considered a negligent violation and not a criminal offense.

  1. All hemp testing laboratories need to be DEA registered

The Final Rule made it mandatory for all hemp-testing laboratories to be registered with the Drug Enforcement Agency (DEA). Getting this registration is time intensive and the number of registered laboratories is few. With this in mind, the USDA had extended the registration deadline to the last day of 2022. After the expiry of this period, laboratories that are not registered with the DEA will be barred from conducting hemp testing.

  1. Laboratories to calculate Measure of Uncertainty (MU)

With the Final Rule, laboratories are expected to calculate and include the MU when reporting test results. The Guide to the Expression of Uncertainty in Measurement (GUM) defines MU as “a parameter, associated with the result of a measurement, which characterizes the dispersion of the values that could reasonably be attributed to the measurand.”

While there is no upper or lower limit for the MU, it is controlled using performance standards such as AOAC Standard Method Performance Requirements. Organizations such as ISO and Eurachem also provide guidelines for calculating MU. Hemp testing laboratories can refer to those guidelines as well.

  1. Adherence to the ISO 17025 standards

While this is not an enforceable rule, the USDA strongly recommends all hemp testing laboratories be ISO 17025 compliant.

  1. Laboratory SOPs

Testing laboratories must have an internal SOP for testing and retesting hemp. This SOP should be available upon request by state sampling agents or other responsible agents. Laboratory managers should ensure that all staff members follow the SOPs.

  1. Reporting of THC

Once a laboratory has completed the test, whether failed or passed, they should share the results with all stakeholders:

  • The licensed producer
  • The appropriate State Department of Agriculture or Tribe
  • The USDA using AMS Form 22.
  • The THC should be reported on a “dry weight” basis.
  1. Remediating and retestingof hot hemp

Once a laboratory finds a sample that has tested above 0.3% THC, it has to flag it as “hot” hemp. Previously, all hot hemp had to be destroyed but with the FR, parts of the hemp (excluding the flowers) can be salvaged.

A Laboratory Information Management System (LIMS) to manage multi-analyte test results and flag hot hemp (Figure courtesy of CloudLIMS)

The licensed producers (LP) are required to shred the hemp into biomass and send a sample back to the laboratory for retesting. The laboratory shall use the same procedure to retest the biomass and report the results back to the LP and the USDA.

The hemp final rule took full effect on the last day of 2021. The only extended deadline is the one requiring that all hemp-testing laboratories be registered with the DEA that still has a few more months to go.

Fast Track Your Laboratory’s Preparedness with a LIMS

Becoming compliant with USDA’s hemp testing rules can be quite challenging for a laboratory simply because there’s too much to keep up with. A laboratory must monitor samples, analyze and report test results, and at the same time maintain internal quality protocols.

Fortunately, digitization can help streamline processes and accelerate the preparedness of laboratories for the new federal rules. A cloud-based Laboratory Management Information System (LIMS) takes the hard work out of compliance by keeping track of compliance processes seamlessly and in real-time.

A LIMS enables laboratories to:

  • Track samples through their lifecycle
  • Automatically share results with stakeholders
  • Flag hot hemp samples
  • Generate certificates of analysis (COAs) in prescribed formats
  • Meet regulatory compliances
  • Manage SOPs, staff training, and QA/QC protocols

Hemp that tests above the 0.3% THC mark is considered cannabis and is therefore illegal under federal law. Consequently, hemp testing is a highly sensitive process that is strictly regulated. Hemp-testing laboratories must optimize their processes to ensure efficiency at all times and assure the validity of their test results. This can be made possible with a LIMS.

2022 Infused Products Virtual Conference: February Program

By Cannabis Industry Journal Staff
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2022 Infused Products Virtual Conference: February Program

Sponsored by Columbia Laboratories

Click here to watch the recording

Agenda

cGMP Certification: What it is, Can you get it, and What does it take

  • Kim Stuck, Founder & CEO, Allay Consulting

Kim Stuck, a former cannabis regulator for Denver Department of Public Health and Environment now turned compliance consultant for the cannabis industry will be sharing her experiences and discussing quality assurance in cannabis when it comes to cGMP Certification. She will be explaining what cGMP is and:

  • How it fits in the cannabis industry
  • What the steps are to gaining cGMP Certification
  • Tips on how to be successful in the certification process.

TechTalk: Columbia Laboratories

  • Jessa Youngblood, Food & Beverage Market Coordinator II, Hardy Diagnostics

From Idea to Product: How to Launch an Edible 

  • Katherine Knowlton, Founder, Happy Chance
  • Kalon Baird, Founder & COO, Splash Nano

Learn everything you need to know about launching an edible product from two experts currently doing just that. Attendees learn about finding a niche, quality, the supply chain and the retail ecosystem.

Food Safety for Infused Edibles

  • Steven Gendel, Ph.D., Gendel Food Safety

This presentation takes a deep dive into current regulatory programs, why standardization is crucial, the importance of food safety in edibles, the importance of the ingredient supply chain and some shortcomings in current regulations.

Why Are Infuser Licenses Tricky?

  • Sumer Thomas, Director of Regulatory Operations, Canna Advisors
  • Brian Harris, Project Manager, Canna Advisors

Attendees of this session will learn:

  • Learn how being in the middle of the supply chain complicates everything
  • What is different about capital requirements
  • How team member requirements are make-or-break for your success

Click here to watch the recording

Pennsylvania Recalls Vape Products

By Cannabis Industry Journal Staff
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The Pennsylvania Department of Health sent emails back in December to registered medical cannabis patients, notifying them of a safety review being conducted on ingredients found in cannabis vape products. According to the Pittsburgh City Paper, the emails the state agency sent out were kind of cryptic; They did not include any information on why they were conducting this review or what exactly patients should be worried about in their vape products.

Then on February 4, the state’s health agency sent a third email. This one notified patients they were recalling more than 650 products and ingredients. “As you know, the Department recently conducted a statewide review of all vaporized medical marijuana products containing added ingredients,” reads the email to patients. “After finishing this review, the Department has determined that certain vaporized medical marijuana products containing some added ingredients have not been approved for inhalation by the United States Food and Drug Administration (FDA).”

While the FDA does approve added ingredients in other products, they don’t really deal with vaping, let alone cannabis. In October of 2021, the FDA did start regulating the space, making their first-ever approval for vaping products with nicotine e-cigarettes. Still though, the FDA has not conducted broad studies on specific vaping ingredients and their effects, so it’s not exactly an authority on what makes a safe cannabis vape product.

Pittsburgh City Paper says they have not received a response from the Pennsylvania Department of Health for requests to comment. The recalls and the state agency’s seemingly impulsive decision and subsequent radio silence leave more questions than answers.

Mississippi Legalizes Medical Cannabis

By Cannabis Industry Journal Staff
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Update: Gov. Reeves signed the bill into law today. Mississippi is the 37th state to legalize medical cannabis in the country. 

On January 26, 2022, both the Mississippi House of Representatives and the state’s Senate voted overwhelmingly to approve SB 2095, the bill that will legalize medical cannabis in the state. The House voted 104-13 and the Senate voted 46-4 to approve the bill, sending it to Governor Tate Reeves’ desk.

Back in 2020, voters in Mississippi approved Initiative 65, a ballot measure to legalize medical cannabis. Last year, the state’s supreme court overturned it and invalidated the ballot initiative method.

Mississippi Governor Tate Reeves

Gov. Reeves has been historically against cannabis legalization, but has changed his tune recently. On February 1, 2022, Gov. Reeves told reporters that he has not decided if he’ll sign the bill or not. The Governor’s office is still reviewing the bill.

Once both chambers of the state’s legislature approved the final language in the bill on January 26, it gave the Governor five business days to act on it. That deadline is today and he was left with three options: sign it, veto it or let it become law without his signature. If he did decide to veto it, the legislature had more than enough votes to override that.

The legislation adds a 5% tax on top of the state’s 7% sales tax on all cannabis sales. New amendments to the bill tasks the Mississippi State Department of Health with regulating the market. Patients can buy up to 3.5 grams per day, six days a week, with a limit of three ounces per month.

Louisiana Senate Candidate Smokes Blunt in Campaign Ad

By Cannabis Industry Journal Staff
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Last week, Gary Chambers Jr., a Baton Rouge native, launched his political campaign to run for a U.S. Senate seat in Louisiana. He took the internet by storm with his first political advertisement, a 37-second-long video where he advocates for cannabis legalization, discussing the disproportionate effects that cannabis prohibition has on communities of color.

But that’s not why he made such a splash on social media; the campaign ad made headlines as possibly the first major party candidate to smoke a cannabis blunt in an advertisement.

The timing of the video is also very intentional, lasting 37 seconds. “Every 37 seconds, someone is arrested for possession of marijuana,” Chambers says in the video. “Since 2010, state and local police have arrested an estimated 7.3 million Americans for violating marijuana laws, over half of all drug arrests. Black people are 4 times more likely to be arrested for marijuana laws than white people.”

Chambers is running against Sen. John Kennedy, the Republican incumbent with support from Trump and very deep pockets.

“Most of the people police are arresting aren’t dealers, but rather people with small amounts of pot just like me,” says Chambers. “I’m Gary Chambers, and I’m running for the U.S. Senate.” Click here to see his campaign website and make a donation.

Research Suggests Cannabis Could Help Treat Covid-19

By Cannabis Industry Journal Staff
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One study published in the Journal of Natural Products two weeks ago proposes using the cannabinoid CBDA in conjunction with vaccines to prevent SARS-CoV-2 (Covid-19) infection. The study was conducted in a lab and says that cannabinoid acids (CBGA, THCA-A, CBDA, etc.) can bind to the SARS-CoV-2 spike protein, blocking cell entry and effectively prevent infection.

Another study published in Science Advances claims cannabidiol (CBD) inhibits SARS-CoV-2 replication and helps prevent infection by inducing endoplasmic reticulum stress response and innate immune responses. The study was conducted in cells and mice, but also had groups of human patients that tested positive for Covid-19 less after taking CBD. “In matched groups of human patients from the National COVID Cohort Collaborative, CBD (100 mg/ml oral solution per medical records) had a significant negative association with positive SARS-CoV-2 tests,” reads the abstract.

Two studies in Israel, one proof-of-concept study and one early-stage clinical trial, have just launched examining the effects of CBD on patients already infected with Covid-19.

The structure of cannabidiol (CBD), one of 400 active compounds found in cannabis.

All of this research already underway does not mean that cannabis prevents Covid-19. In fact, one clinical trial in Brazil that has finished, found no evidence that CBD helped patients with mild Covid-19. Published in the Cannabis and Cannabinoid Research Journal, patients with mild Covid-19 received 300 mg of CBD for 14 days or a placebo. The study suggests that clinical trials should be conducted for the effects of CBD on patients with severe Covid-19, not just mild symptoms.

The clinical trial in Israel that is trying to study the effects of CBD on patients with severe Covid-19 is having trouble finding participants because the newer Omicron variant mainly produces only mild to moderate symptoms.

It is far too early to tell if any of these studies will show evidence of cannabis treating Covid-19, let alone if they mean cannabis products can be used as a treatment or preventative for Covid-19. However, the research is significant and we should keep an eye on any developments that come from those studies.

Statnews.com said it best:

“The latest hubbub is an example of both the promise of cannabinoids — components of cannabis — as potential therapies, but also the hype around them, which can far outpace the evidence that they work. It’s left researchers and consumer advocates scrambling to warn people that patients shouldn’t be turning to over-the-counter products or recreational marijuana in hopes that it might protect them from Covid-19.”

2022 Cannabis Labs Virtual Conference: January Program

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2022 Cannabis Labs Virtual Conference: January Program

Sponsored by Hardy Diagnostics and Bio-Rad.

Click here to watch the recording

Agenda

What does Lean Mean to the World of Cannabis Testing?

  • Rob Radke, President, Method Testing Labs

In this session, Rob Radke delves into the world of Lean management, how Lean process implementation can enhance quality in a lab setting, what it means for customers and why it is unique and effective in the cannabis industry.

TechTalk: Hardy Diagnostics

  • Jessa Youngblood, Food & Beverage Market Coordinator II, Hardy Diagnostics

How Cannabis Labs Can Prepare for Accreditation?

  • Renee Delauter, Cannabis Program Manager, A2LA

Learn when to apply for your lab’s accreditation, what to expect during your ISO/IEC 17025 audit and find guidance on how to approach deficiency findings.

TechTalk: Bio-Rad

  • Helen Fong, Product Manager, Food Science Division, Bio-Rad

The Challenges and Benefits of National Standardization for Hemp Testing

  • Dillon Burns, Lab Manager, Infinite Chemical Analysis Labs

This presentation takes a deep dive into current hemp regulatory programs, why standardization is crucial and some shortcomings in current regulations.

R&D Lab Testing: Ensuring Success with Results

  • Christian Sweeney, President, Sonoma Labs

Attendees of this session will learn:

  • How R&D lab testing can help you
  • Prepare for compliance batches
  • Successfully launch new products
  • Amp up your quality control

Click here to watch the recording

Cannin Commentary

Is Tilray Stock a Buy Post Fiscal Q2 Results?

By Cannabis Industry Journal Staff
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Canadian cannabis giant Tilray (NASDAQ:TLRY) announced its fiscal second quarter of 2022 results last week. The company reported net revenue of $155 million in Q2 which was an increase of 20% year over year. Tilray attributed these gains to its expansion in verticals that include alcohol as well as hemp-based wellness.

Despite an uptick in sales, Tilray’s gross margin reduced by 7% to $32.8 million as the Canadian cannabis market continues to wrestle with oversupply issues resulting in lower-priced products. Alternatively, Tilray claimed its cost-reduction program is running ahead of schedule and it expects to save $100 million by 2023, up from its earlier forecast of savings of $80 million.

Tilray reported a net income of $6 million in Q2, compared to a year-ago loss of $89 million. The fiscal second quarter was also the 11th consecutive quarter where Tilray reported an adjusted EBITDA. This figure stood at $13.8 million in Q2.

Tilray stock rose by 15% in the two trading days following its Q2 results.

What impacted Tilray in Q2 of fiscal 2022?

Tilray explained its Q2 results were solid as it has successfully built a cannabis and lifestyle brand. Further, the company continues to benefit from its scale, global distribution capabilities as well as operational excellence allowing it to increase sales and maintain profitability despite macro-economic headwinds.

Last year, Tilray completed its merger with Aphria making the combined entity the largest cannabis producer in Canada in terms of market share and sales. Tilray maintained its leadership position in the country despite market saturation and rising competitive challenges.

The company enjoys strong brand recognition and is focused on ensuring an adept pricing environment. It also believes marketing adjustments will allow Tilray to aggressively capture market share going forward.

Germany is the largest medical cannabis market in Europe where Tilray has a 20% share. It’s well-positioned to capture the adult use cannabis market as well in Europe, if and when cannabis is legalized in this region.

Tilray, similar to most other producers aggressively acquired companies in the past. Its acquisition of the U.S.-based SweetWater Brewing and Manitoba Harvest provides it a foothold in the world’s largest cannabis market. These two companies have invested in product innovation to enhance awareness and distribution.

Further, SweetWater and Manitoba Harvest are profitable and provide Tilray an opportunity to launch THC-based products in the U.S. when pot is legalized at the federal level.

What next for TLRY stock?

During its earnings call, Tilray disclosed its new parent name called Tilray Brands. It reflects the company’s evolutions from a Canadian licensed producer to a global consumer packaged goods company with a leading portfolio of cannabis and lifestyle CPG brands.

german flag

Tilray aims to post annual sales of $4 billion by 2024 which is quite optimistic given analysts expect revenue to grow to $980 million in fiscal 2022 and $1.2 billion in fiscal 2023. In order for Tilray to reach its lofty goals, it will have to acquire other licensed producers resulting in shareholder dilution.

Germany is expected to legalize marijuana at the federal level, making it the largest country to do so in terms of population. Tilray already has an EU GMP-certified facility operating in Germany which can increase production capacity to accommodate demand from the adult use segment.

Bottom Line: Is Tilray Stock a Buy Post Fiscal Q2 Results?

While Tilray’s stock gained pace, following its Q2 results, investors should understand that it was estimated to report revenue of $171 million in the quarter. Despite the cost synergies enjoyed by Tilray, the adult-use market in Canada is crowded as well as highly fragmented and should consolidate in the upcoming years which will allow companies to improve the bottom line.

Tilray stock is valued at a market cap of $3.2 billion which suggests its forward price to sales multiple is over 3x. Unlike most cannabis producers in the U.S. Tilray continues to post an adjusted loss making it a high-risk bet at current multiples.

Cannabis in 2022 – Hurry Up and Wait

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Here we are entering a new year. Finally, many states in the United States have agreed to legalize adult-use cannabis either through medical or adult-use programs. In 2021, we saw Connecticut, New Mexico, New Jersey, New York and Virginia all legalize adult-use, bringing the total to 18 states that now allow adult-use and 36 for medical use.

State-led initiatives have been the backbone for this emerging industry. Yet, it’s the advocates who are moving the ball forwards through education, research and real-world case studies showing the benefits cannabis can have across many medical ailments. These grassroots efforts must stay vigilant and persist considering the slow progress on the Federal government level.

The Capitol Building, Washington D.C.

It isn’t so much a matter of “if” Washington will legalize cannabis, but a matter of “when.” There has been some progress with the Marijuana Opportunity Reinvestment and Expungement (MORE) Act to end the federal criminalization of cannabis. Also, the Secure and Fair Enforcement (SAFE) Banking Act, allowing cannabis businesses to work with traditional financial institutions was established and introduced. In 2021, the number of cannabis-focused advocacy groups on the Hill multiplied and large public companies like Amazon even turned their attention, and lobbying dollars, towards cannabis issues too.

Unfortunately, these two significant bills mentioned above are moving slowly through the political process and will take a concerted effort to get them across the finish line any time soon. It’s a delicate balancing act that will continue for the foreseeable future as we navigate our way through regulation and compliance issues.

I live in New York, and over the last several months watching counties and municipalities opt-in or opt-out for dispensaries and consumption sites has been fascinating. The Rockefeller Institute of Government has created a Marijuana Opt-Out Tracker. The data shows – 730 out of 1,521 municipalities opt-out of dispensaries and 830 out of 1,521 opt-out for consumption sites. You can see the opt-out number is relatively high. The insights show local municipalities are taking a wait-and-see approach, seeing how the initial rollout goes, and then opt-in later.

New York City
Image: Rodrigo Paredes, Flickr

The data doesn’t correlate for me because if you look at a recent Gallup poll, 68% of adults in the United States approve of cannabis and 18% of Americans admit to using it, up from 10% in 2005.

There is still a disconnect that will require ongoing advocacy and education/research to present fact-based data that cannabis is safe to consume in moderation. Cannabis consumers should have the ability to purchase cannabis products from legal and regulated industry infrastructure in their town and not have to travel over an hour to get products from another location.

I have been in the cannabis industry since late 2017. Over the last four years, the industry has matured across many fronts, including new consumer products, processing technologies, dispensary formats and buying channels. However, I believe ongoing advancements from advocates, new manufacturing processes and technology platforms will lead the cannabis industry into a fully functional marketplace that is regulated and taxed relatively like any other industry.

As the adage goes, all good things are worth waiting for, and a high percentage of global adult individuals want to move forward with cannabis in their lives. Once we start categorizing cannabis as a wellness product and not a gateway drug, we will see both government and industry move quicker together.

Soapbox

Where the Cannabis Industry is Headed in 2022

By Serge Chistov
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Federal legalization of adult use cannabis is still out there as a potential, but ultimately, there are no guarantees that come with such a move. Further, even with legalization, the state-to-state variations in regulations for everything from cultivation standards to packaging and transportation will make marketing country-wide a difficult proposition for most cannabis businesses. The businesses that will grow and thrive will be ones that embrace trends and opportunities that are on the horizon for 2022 and beyond.

Economic resilience even in challenging times
Large scale companies are dealing with the issue of state-to-state differences in regulations by building branded verticals in each state: from growing to packaging, as well as building stores, in order to avoid the issue altogether. It’s an expensive proposition that is out of reach for the smaller entrepreneur, but it creates an almost regulation-proof setup for these organizations.

One interesting trend that would never have been as clear if the pandemic had not occurred is that cannabis is being generally viewed as a recession-proof industry. The pandemic has put the same types of constraints on consumer activity as a recession does and the results are clear: people are still interested, perhaps more so, in cannabis-related products and will choose to continue using them, even in times of restraint.

This economic resilience has also encouraged the growth of investment opportunities in the cannabis industry. ETFs (exchange-traded funds) that cover the industry are growing in number, as more cannabis related businesses grow in size and go public.

While banking through traditional institutions will continue to be difficult for cannabis businesses, pending federal legalization, there is a lot of money being funneled into the industry, through venture capital and angel investments. There is no question that it is still a growth industry now, and into the next decade.

Technological advancements 
Now more than ever, cannabis has gone mainstream. The medical uses for it in terms of stress reduction, mental health and so on, have built up markets that might have otherwise looked to more traditional pharmaceutical options. There is an interesting portion of this new mainstream market that is interested in the therapeutic effects of cannabis but not in the traditional consumption method of smoking. In addition to wanting to avoid inhaling smoke, this same section of the market is acutely aware of what they put into their bodies and what impacts their choices have on the environment at large. The result? Organic, ethically sourced and developed cannabis products are becoming more and more the norm.

Some of the many infused products on the market today.

Products that include oils, tinctures, topicals and edibles are all within the scope of what the discerning cannabis consumer is looking for. The only downfall for many of these types of products, versus a smokable, is the effectiveness of the THC. For example, edibles can take upwards of an hour to produce any psychoactive effects. That limits the function of these types of products, so the next generation of these requires technological innovation to find a solution to that limitation, such as nano emulsions.

For example, we have innovated by leveraging technology that reduces THC particles to a nano size and creates a barrier around the particle so that they can be absorbed into the bloodstream, bypassing the neutralizing effects of the digestive system. This effectively creates edibles that produce a high that is comparable to what can be obtained by smoking a joint, therefore solving the issue that edibles have had in the past.

Multinational growth opportunities
With the inability to export from the US to other growing markets, there is the opportunity for cannabis companies to expand as multinationals. Growing and marketing cannabis products elsewhere and exporting to other countries that will accept the imports, is a big opportunity. To use an existing example, Uganda has established a government sponsored program to produce and export medical cannabis to Germany. This is an important change that has other countries in particular watching to see how this evolves. Certainly, from the point of view of local economic development, it’s too good an option to ignore.

We are partnering with a chain of medical clinics in Tanzania—“Your Local Clinic”—to provide local medical practitioners with the ability to prescribe medical cannabis, once legalization is realized. This is the first step in a longer term plan that will allow us to build up legal exports to Europe.

Export to the European Union (EU) is expected to grow dramatically by 2025, leaving plenty of expansion opportunities for US companies to take their growing practices, as well as available technology for irrigation, to the next level, via Africa and potentially even Latin America.