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Innovations in Dosing Technologies: Getting an Accurate Hit, Every Time

By Michael Sassano
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Cannabis products and medicines are progressing rapidly, eating away at the market share of smokable flower. Currently, the general adult use cannabis market is split in three, in order of popularity: cannabis flower, vaporizers and ingestible products like edibles or capsules. In the medical market, flower is increasingly being replaced by alternative methods of delivery – and the same trend is now starting to be seen in the adult use market.

This is to be expected to some extent. Initially, only flower was available to medical cannabis users. On top of not everyone feeling comfortable with smoking, inhaling a combustible substance into the lungs is not the healthiest consumption method for those already suffering from a serious illness.

In the present day, there are new alternatives to smoking that come without the risk and actually have additional benefits. For example, there are now much more precise ways to measure your cannabinoid intake than weighing out the flower you’re about to burn. As technology develops, there is an expectation that – despite flower sales being fairly stable last year – we will see continued incremental growth in the non-flower category, especially on the medical side.

Oral Cannabinoid Delivery

Thankfully for those who want to use non-smokable products, there are a growing number of alternative oral products that are currently available in the market or are under development.

Some of the many infused products on the market today.

Cannabis edibles might be the first products to come to mind when you think about non-smokable products – but for many medicinal users, these are actually a fairly unpopular option. While having a cannabis-infused brownie or gummy might be quite discreet compared to smoking a joint, the need for patients to take in extra sugar or extra calories every time they need to take their medicine can be off-putting. Additionally, tradionally infused edibles can take between one to three hours to feel as the body needs time to digest.

Cannabinoid capsules or pills have recently emerged as an equally discreet alternative to edibles. These pills come in many forms, including hard capsules containing ground cannabis flower, softgel capsules containing measured doses of cannabis extract, and gelatin-free alternatives. Though these pills, like edibles themselves, do come with a relatively long onset time.

Cannabinoid capsules

Pills and edibles are also both affected by first-pass metabolism. This means that the active cannabinoids will be processed through the digestive system and the liver before passing onto the brain or the other organs. During this process, some amount of CBD or THC will likely be broken down by the body before it can make its effect felt, leading to inaccuracies between the labelled dose of a product and the active dose that reaches the brain or target area in the body.

To avoid these problems with first-pass metabolism, some have turned to use sublingual cannabis oils and tinctures. By placing a measured dose of oil under the tongue using a dropper, this theoretically allows for the fast absorption of THC or CBD into the bloodstream without the product being processed by the digestive system. However, in practice, these sublingual tinctures need to be held under the tongue for around ten minutes before they are fully absorbed. This is fairly difficult to do without accidentally swallowing some amount of the tincture, and so this still introduces some amount of uncertainty with dosing.

Fast-Acting Absorption

Fast-acting absorption techniques and nano emulsions are also gaining in popularity. Nanotechnologies and techniques have been developed by many firms, and boast claims of increasing absorption through the digestive system in order to effectively double the volume of cannabinoids absorbed into the body. Nano emulsions are also promising, which come with claims of up to four to five times more improved absorption. Such technologies rely on cannabis oils being immiscible with water-based substances, and process these cannabis oils in such a way that they become nanoscale droplets suspended in a larger mixture. Because of their size, these small pockets of cannabis oil are able to be absorbed rapidly through the gastrointestinal tract and into the bloodstream.

A drink additive, made by Splash Nano, that uses nano emulsion technology

Older liposomal and newer nano-liposomal combinations have also boasted similar claims. Liposomes are commonly used as a novel drug delivery system for pharmaceutical products to facilitate the absorption of drugs into the body, and the adaption of such techniques for the cannabis sector is also intended to dramatically improve the absorption of cannabinoids into the bloodstream. Given the marketing of these products, it can become confusing to know which is the best. The only way to know for sure is to have either a breath or blood analysis to see which style works and is best for the individual consumer.

As manufacturers progress from flower and basic products, the largest brands and more advanced medical companies are all producing ingestible products with fast absorption methods and additives. The difference is pronounced and significant enough that consumers and patients are starting to demand fast absorption products. As the market becomes more educated, you can expect that the market for fast absorption ingestible products will greatly outpace the older, more basic formulations. Of course, some emulsion additives will increase the operating costs for businesses, but over time, this difference will likely be fairly minimal.

Microencapsulation to boost cannabinoid absorption

Microencapsulation is another new method for producing drugs with high bioavailabilities, and the technique has recently made headlines in the cannabis industry.

Using a technique known as ionic gelation, or ionotropic gelation, scientists are able to trap drugs inside nano- or microscale capsules. These tiny capsules are robust enough to be able to protect the active drug ingredient–which in this case would be CBD or another cannabinoid–against the harsh environment of the gastrointestinal tract without necessarily limiting bioavailability.

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

Unlike the other oral dosing methods, cannabinoid microcapsules are not yet a commercially available product. However, there is early research indicating that this drug delivery technology could be a significant step forward in terms of improving cannabinoid bioavailability and absorption.

Published in the journal PLOS One, a new study from a team of Australian scientists reports that CBD microcapsules used in combination with a permeation-modifying bile acid can boost the peak concentration of CBD reaching the brain by 300 percent. These peak concentrations of CBD in the body also happened much earlier with the CBD microcapsules than with regular CBD oil, reflecting a faster absorption by the body.

This improved absorption and bioavailability addresses many of the limitations seen with traditional oral cannabinoid delivery. However, there is still potentially a very long road before these microcapsules are approved for general use in humans, making them an unrealistic option at present.

Metered Dose Inhalers

So far as innovative cannabis dosing technology that is currently available on the market goes, metered dose inhalers lead the way. Making up one-third of the market share, these devices are easy to use, discreet and are far less invasive than burning cannabis flower.

A metered dose inhaler by MÜV

Heating and vaporizing a purified cannabinoid also exposes the user to fewer potentially harmful combustion products than smoking flower. Using vapes, manufacturers are also able to adjust the formulation of vape oils in order to deliver a truly consistent product. This can help the consumer to truly measure their intake of beneficial cannabinoids.

Vaporizers for general adult use are very common now and come in many forms and flavors. Until recently though, there were very few vaporizers that met the specific needs of the medical market, like being able to deliver very controlled doses of cannabinoids. Now, innovation in the sector has led to a number of companies developing special metered dose inhalers for this purpose. These devices use smart technology to only heat and vaporize a pre-set controlled dose of cannabis oil from their compatible cartridges, allowing for intake to be tracked more precisely. This is different from regular vapes, where the amount inhaled can vary depending on how deeply a person inhales, or other environmental factors.

Recently, Syqe Medical received approval from Health Canada for their metered dose cannabis vaporizer. There is already a similar registration for approval in the US and Europe that looks promising for similar devices.

Recreational acceptance of products, like these high-tech vaporizers, drives up spending on innovations that would otherwise just be novel ideas. The cannabis industry has a wealth of creative talent, and with the market beginning to tear away from flower and towards novel and innovative products, like vaporizers and fast acting ingestible products, now is the time for the medical market to invest in this talent and follow the demand and the money.

New York Expands Medical Access, Prepares for Adult Use

By Cannabis Industry Journal Staff
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Now entering its sixth year of medical cannabis legalization, the Empire State is well on its way to expanding the market considerably. When New York first legalized medical cannabis, it had some of the strictest rules in the country. Dispensaries needed to have pharmacists and doctors with special training on staff, they couldn’t sell flower and there was a very small list of qualifying conditions for getting a cannabis prescription.

While New York legalized adult use cannabis back in March of 2021, the actual market is still probably about a year away from launching. The bill immediately decriminalized possession up to certain amounts and set up the Office of Cannabis Management (OCM), New York’s regulatory body now overseeing the medical, adult use and hemp markets.

Over the past six years since the state legalized medical cannabis, the rules have eased incrementally, with more licenses awarded, more doctors participating, more qualifying conditions approved and a larger variety of products on dispensary shelves. Back in 2017, they added chronic pain to the list of qualifying conditions, which was seen as a big effort at the time for expanding patient access.

Just a few weeks ago on January 24, 2022, the Office of Cannabis Management, dropped all qualifying conditions. That means patients with more common ailments and really any type of condition, like anxiety or sleep disorders, can get a prescription for cannabis.

“Launching the new patient certification and registration system and expanding eligibility for the Medical Cannabis Program are significant steps forward for our program,” says Chris Alexander, executive director of the OCM. “We will continue to implement the MRTA and ensure that all New Yorkers who can benefit from medical cannabis have the access they need to do so. It’s important for New Yorkers to know that even as we shift the medical program to the OCM, your access will not be disrupted and the program will continue to expand.”

New York City
Image: Rodrigo Paredes, Flickr

In addition to dropping qualifying conditions, the state took a number of other measures to increase access and allow the market to expand further. For example, dispensaries can now sell flower, more physicians like dentists, podiatrists and midwives can participate, the OCM removed the patient registration fee and they increased the amount of cannabis patients can purchase at a time.

Beyond the medical market, New York is making strides in launching their hemp program as well as preparing for the eventual launch of the adult use market. Back in November, the state’s Cannabis Control Board approved new regulations for the hemp program, establishing standards for manufacturing, lab testing, packaging and labeling.

On the adult use front, delays are the name of the game. According to a publication called The City, delays to launch the new market have been made worse by former Governor Andrew Cuomo’s resignation following sexual harassment allegations. They say the state might not see the launch of the adult use market until early 2023 at best. Decisions on licensing, standards and rules are to be made by the Cannabis Control Board, a five-member commission tasked with overseeing the OCM. So far, the Board has not addressed a timeframe for when they will begin adult use sales.

Cannabis Dispensary Displays: What’s Trending in 2022

By Ray Ko
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As additional states around the country legalize cannabis – New Jersey, Arizona, South Dakota and Montana, to name a few– more and more medical and adult use dispensaries are popping up. Business owners are looking for ways to stand out from their competition. Enter dispensary displays, cost-effective hot commodities and a trending topic in 2022. Cannabis displays have become the vehicle to not only house merchandise but can also be a customized branding tool unique to the company’s aesthetic and marketing messaging.

Before we delve into the dispensary display trends disrupting the cannabis industry, let’s start at the very beginning: the basics. The basics include retail space, dispensary layout, cannabis inventory, complementary accessories and of course, budget. Decorating a unique space with a signature aesthetic can be as easy as mixing-and-matching the displays and ideas discussed in this article.

A Well-Lighted, Clean and Simple Space is In

Whether your dispensary is for medical or adult use, a clean design aesthetic is always a good choice. This never-fail approach to decorating conveys a crisp, modern, hygienic feel and a neutral palette like clear, white and black cannabis display cases support this look.

Store lighting plays heavily in dispensary décor, too. According to the lighting experts at Stanpro Lighting Systems, there are three basic types of lighting: ambient, task, and accent and all play a unique role. In short, ambient lighting lights up an entire room or space – outdoor too – to safely facilitate traffic. Task lighting, as the name suggests, is used for a given task such as reading and the like. Directional recessed fixtures, pendant and desk lamps all fall into this category. Light is directed to a focal point and shouldn’t be too bright or harsh. Accent lighting directs attention to a point of interest. Think track lighting, undercabinet or recessed lighting – perfect for dispensaries. When mapping your lighting layout, consider pod holder placement. Place a multi-shelf locking cannabis cabinet under bright lights so customers can see and smell, if appropriate, the merchandise. Alternatively, if lighting is an issue, use a lighted display riser to showcase your pod assortment. A pop of color via custom color pod picks like these from shopPOPdisplays, placed inside a clear cannabis display pod holder on the lighted display riser grabs attention and can be easily switched out depending on the product promotion. It’s versatile, cost-efficient and eye catching.

Make It Marketable

Cannabis displays come in all shapes, sizes, styles and colors. Organize your cannabis, CBD, vape and other merchandise like nitro tins to keep clutter at bay, but make it work for your brand as well. Double-duty dispensary displays like tube holders provide the functionality of neatly presenting products with the bonus of brand recognition through a customization option. If decorating your dispensary business and building your brand on a budget – and who isn’t – customizing key pieces like locking displays and cabinets, may be the solution. Placing products in and on customized cannabis dispensary displays with your logo, brand and/or company color scheme brings instant recognition as well as consumer confidence that your dispensary is not a fly-by-night company. Strategic customization might be the savvy investment option in the long run.

Protecting Your Employees: Health and Otherwise

Security means different things to different people. Physical, financial – you name it – people want to feel safe and protection of others, oneself and properties is at the forefront. Like all business owners, dispensary entrepreneurs invest time, money and sweat equity to get their business up and running. According to cannabis software specialist TRYM, by the year 2025, the cannabis industry is estimated to reach $30 billion dollars. Ensuring the safety and security of staff and inventory investment is a top priority. Cameras, security personnel and alarm systems are all factors, plus practically shatter-resistant plexiglass counters and displays are the new must-have trend. Acrylic sheets don’t end at the counter either. The health of staff members, especially during these times mean plexiglass sheets, clear acrylic barriers and sneezeguards are being implemented in dispensaries across the country. In compact or limited retail space these protective panels ensure social distancing and help ease customer anxiety.

The cost of dispensary inventory is significant, protecting it doesn’t have to be. Many states require cannabis, CBD and vape merchandise be stored in locking display cases and locking cabinets, behind counters, and more depending on the state. Sidestep specific regulations and instead opt for securing all cannabis and high-ticket items in both countertop and locking wall mount displays as well as wall pedestals, lighted pedestals (with acrylic cover or without) with the lock option. These display cases promote waist- and eye-level optimization without taking up valuable retail space.

Color Me Green This Year and Next

As mentioned, in 2022 clean is in, but so is green. In The Psychology of Design: The Color Green, Christi Wharton says, “Green evokes a feeling of abundance and is associated with refreshment and peace, rest and security.” Therefore, it only makes sense to include green when decorating your dispensary. Add planters with greenery to odd corners, break up a white space with a verdant splash of color to bring attention to products. Consider custom green acrylic display risers with company name, brand or logo to literally elevate merchandise or use a LED cannabis display and a showcase is born!

With these current and classic display trends; a well-designed dispensary doesn’t need tricks and a large budget to succeed. Quality merchandise, great customer service as well as classic in-stock and custom dispensary displays never go out of style.

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.

The Cannabis Industry and the Science of Seasonality

By Blaise Lucey
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Let me be honest: I’ve only been part of the cannabis industry for six months. Before that, I worked at B2B tech start-ups and ad tech companies like Roku and Criteo. The most valuable thing I learned is that most good ad campaigns are linked to seasonality.

When I worked at Criteo, the vast majority of our clients were retail and ecommerce. Seasonality initiatives were critical. The more relevant your ads to an upcoming seasonal event, the more relevant they were to the audience. Think about any window display you’ve seen recently – the CVS near me has had Valentine’s Day products in the window since at least mid-January.

When I worked at Roku, we got to take a look at TV streaming behavior. For example, when Ben Affleck started dating Jennifer Lopez again, searches for their movies and music videos skyrocketed. During the space race, general space-related (think Star Trek) TV content went up.

That’s not seasonality – that’s psychology.

As the cannabis industry matures, businesses should start thinking about what seasonal, psychological and cultural factors impact their consumers. Cannabis consumption could be said to be the art of the business, but understanding what cannabis consumers want is the science. Here are three ways to think about that science:

1. The Science of Stash

One analyst recalls that cannabis sales reached “unimaginable” highs in 2020. He called this “pantry-loading” behavior. Let’s call it “stash” behavior.

The buying behavior of a cannabis buyer who buys an eighth is fundamentally different from someone who buys a six pack. The six pack is gone in a weekend. Which flower buyers are buying an eighth just for a weekend? A week? A month?

During the height of the pandemic, with nowhere to go and a lot of anxiety, dispensaries provided at-home entertainment for cannabis consumers. That’s why sales grew by 46%. Cycles of consumption naturally went up. In this case, I think of streaming TV, too – Netflix added 36 million subscribers in 2020 and Roku saw 58.7 billion hours streamed in 2020.

Is there a correlation? Well, stashing behavior obviously correlates with couch behavior. When people spend more time inside, they’re more tempted to go through their stash and cannabis sales increase.

Cannabis isn’t affected by just regular old seasons – it’s affected by what we could call personal, seasonal patterns. Just like streaming TV, when consumers spend more time inside, they buy more cannabis because they consume it faster.

What is the stash turnover rate for your different audiences? What factors make that turnover rate go faster or slower?

Analyzing stash behaviors can reveal your most loyal and high value customers, and offer new perspectives on how to market to different groups.

2. The Science of Celebration.

One estimate shows that Illinois cannabis sales jumped up by 10% in July due to Lollapalooza. Makes sense – more than 385,000 people attended.

women grow event
“When people are coming into cities for events, they’re picking up cannabis then and there, and likely consuming it in true real-time.”

Looking at our own data, there’s a clear spike around St. Patrick’s Day – cannabis sales are 70% higher than average daily sales in February and 54% higher than average compared to March daily sales. This goes against stashing behavior, because the sales happen on the same day.

This is a different science. When people are coming into cities for events, they’re picking up cannabis then and there, and likely consuming it in true real-time.

Event trends can have a huge impact on cannabis sales and psychology. Where there’s a celebration, there’s going to be cannabis buyers. Event trends often translate to tourism trends. And these cannabis buyers aren’t just tourists to cities, a lot of them are likely tourists to cannabis itself as well – novelty consumers who go into a dispensary for the specific event and pick up a little bit of everything.

That’s an opportunity for new brands and more niche categories (beverages, pills, edibles) to connect with a new group of customers. That said, after that initial purchase, how can the brands stay in touch? That’s where dispensaries and cannabis brands need to come up with new strategies for managing cannabis customer data.

3. The Science of States.

Events like Lollapalooza are regional – and so are cannabis markets. In Massachusetts, BDSA data shows continued growth. In the West Coast, analysts call it a “rollercoaster.”

Note the specific pandemic trend lines. Any state that suddenly saw more than 50% sales one year and a sudden slump the next year at the same is bound to see a market crash. It also made it easy to ignore a lot of structural problems – which states like California are now trying to correct.

Legal cannabis sales are radically different depending on the maturity of the market. Let’s not forget that this goes deeper than just states. Only 32% of the California market even has legal dispensaries open right now.

What are regional trends? What are event trends? What are cultural trends?

The more dispensaries and cannabis brands can proactively market to anticipate these needs – and get the message out there to the right audience segments – the better.

Making Cannabis Personal

What keeps becoming apparent is that above all, cannabis is personal. Everyone is looking for something a little different. A consumer’s tastes can change based on all sorts of factors – or not change at all. Different products might suit different occasions. Different messages will talk to different use cases – some people want cannabis that can make a concert better. Others want it to sleep. Dispensaries need to figure out who’s who.

At the end of the day, that’s what makes the cannabis industry so unique. It is an end-to-end experience like no other. From researching products and dispensaries to analyzing brands and products to consuming it, every interaction a consumer has with a cannabis business is very personal. And if they don’t like their personal experience, they won’t come back.

As the industry looks ahead into a competitive 2022, the mission should be simple: make every touchpoint for every customer a great experience, from start to finish.

New Jersey Adult Use Program Likely Delayed

Back in November of 2020, voters in New Jersey overwhelmingly approved Question 1, the ballot measure to legalize cannabis. On February 22, 2021, New Jersey Governor Phil Murphy signed three bills into law, laying out the framework for how the state would move forward with legalized adult use cannabis.

New Jersey Governor Phil Murphy
New Jersey Governor Phil Murphy

The legislation became law once the Governor signed the bills, tasking a five-member Cannabis Regulatory Commission (CRC) with developing regulations for the market by June of 2021. The CRC set a deadline of February 22, 2022, six months after the regulations have been established, for when they wanted to officially launch the adult use cannabis program and commence sales.

It looks as though the Garden State is not quite ready to meet that deadline. According to NJ.com, the setback is due to a couple issues, namely municipalities dragging their feet and worries about a weak supply chain. Before a CRC meeting kicks off today, Jeff Brown, executive director of the CRC, told NJ Cannabis Insider that they still have work to do before they can give the green light. “Feb. 22 is not a concrete date to open,” says Brown. “There is no firm commitment on timing of when recreational sales will begin.”

Among the issues that are causing these delays is local approval. Municipalities need to first approve and adopt the cannabis rules before allowing businesses to open. “One of the biggest deficiencies we’re seeing is a lack of municipal approval,” Brown told NJ Cannabis Insider. “That’s an issue, and supply continues to be issue. It’s the priority of the CRC to get recreational sales started as soon as we can, but we have to do it in a way that’s compliant with the law. We need the industry to get there.”

As Brown noted, the CRC also thinks they need to make sure there is adequate supply before the state opens the market. However, businesses appear to be ready and chomping at the bit to get started with the adult use program. Patrik Jonsson, regional president of the northeast for Curaleaf says they have been ready. “Give us 48 hours, and we can pretty much do whatever the state wants, and we’ll open,” says Jonsson. “We have product, the people and the facilities. There are a few minor things we need clarified around the product. But we are very much ready for turning it on as soon as the state lets us.” Curaleaf is the biggest cannabis company in New Jersey and has two cultivation facilities and three retail locations across the state.

While the February 22 deadline is still in place, questions still linger about when exactly the state will be ready to launch its adult use cannabis program and commence sales.

Thinking of Starting a Cannabis Delivery or Transport Business? Here’s What You Need to Know

Ask any cannabis connoisseur, and theyll likely tell you that cannabis delivery services have been around for a long, long time. Given the distancing requirements of the COVID years, the increasing number of medical cannabis patients who need or would like cannabis delivered to their door and the surge in recreational adult use sales, cannabis delivery is coming out of the shadows and into the legal cannabis industry.

Proponents of cannabis delivery say that creating a legal structure and guidelines that allow cannabis home delivery encourages people to buy from legal sources rather than the legacy market. In some cases, its a way to entice legacy cannabis delivery operators to transition to the licensed and regulated market. While many states remain hesitant to allow adult use cannabis delivery, some do, and others have taken the first step, allowing delivery to registered medical cannabis patients and caregivers.

Where is Cannabis Delivery Legal?

According to Cannabis Business Times, states that permit medical cannabis delivery as part of another license type, retail, for example, or with a specific delivery license include: Arizona, Arkansas, California, Colorado, Maine, Maryland, Massachusetts, Michigan, Nevada, New Mexico, New York, Oregon, Rhode Island and Vermont. Complex reports that delivery service is legally available without any restrictions to anyone 21 years or older in California, Nevada and Oregon.

Medical or adult use, there are restrictions on where cannabis can be delivered, even within states that allow it. For instance, you cant legally deliver cannabis to college or university campuses. Although many people still discreetly deliver and receive cannabis products on campuses, its illegal to do so since cannabis is a federally controlled substance and higher education institutions that receive federal funding must prohibit its use and distribution.

It’s noteworthy that some states without legal cannabis delivery regulations have a loophole” through which some delivery businesses operate. Gifting, for example, is an established, though not entirely legal, delivery practice. According to NJ.com, New Jersey falls into the gifting loophole category:

Licenses to sell legal weed are still months away, but theres a handful of entrepreneurs coming into the scene through a possible legal loophole — “gifting” cannabis. Its a scheme popular in other states and particularly in Washington, D.C. A company lets you buy cookies, snacks or brownies that come with sticker shock of $50 or more. But when they make the delivery, it comes with a suggested gift: maybe a cannabis edible or an ounce of flower.

 Although many underground businesses thrive in the Garden States in-between” market, NJ.com also reports that gray market operators have faced legal penalties and even jail time.

Why Are Cannabis Delivery Services Popular? 

Cannabis delivery services have a rich cultural history in the underground market. Rather than making a transaction in public, home delivery provides a more intimate and secure way of selling cannabis to consumers. 

Cannabis delivery has skyrocketed in popularity due to the COVID-19 crisis. MJBizDaily reports that online cannabis orders boomed during the pandemic, increasing the need for cannabis delivery services. 

Historically, cannabis delivery services also help registered medical cannabis patients receive access to their medicine since their disability or chronic condition might prevent them from leaving the house and visiting a dispensary. This can be especially true for seniors, even if they arent a registered patient, but live in a state with adult use cannabis.

Whats the Difference Between Cannabis Delivery and Transport Licenses?

There is real confusion surrounding the differences between delivery and transport licenses.  Basically, delivery licenses are B2C (business to consumer), and transport licenses are B2B (business to business).

Cannabis delivery and courier licenses allow licensees to deliver cannabis products directly to patients, caregivers, and in some states, consumers. While the name of the license differs depending on the state in which you seek to operate, delivery licenses tend to allow operators to act as a retailer without a traditional bricks and mortar location. Delivery licensees purchase and store wholesale cannabis products and sell them via the delivery model. Couriers, however, are traditionally hired by retailers as their delivery arm. In this model, the retailer takes the order, and the courier delivers, like Door Dash or Uber Eats. One key difference between a delivery and courier license is the significantly lower cost of entry for couriers as they dont have facility, inventory, or storage costs, and generally have lower operational expenses.

But what about transport licensees? Rather than delivering to individuals, transport licensees typically deliver cannabis products between licensed cannabis facilities, such as a cultivator or manufacturer to a retail dispensary or testing facility.

In Massachusetts, there are three delivery and transport licenses (courier, delivery operator, and transporter) as well as a delivery endorsement that allows certain licensees to deliver directly from a licensed establishment to consumers.

The first step to operate a cannabis delivery or transport business is determining whether you want to deliver for retail establishments, buy product and deliver directly or transport cannabis between licensed cannabis businesses. Each model has its plusses and minuses, just depends on what you want. Its important to note that Massachusetts delivery operator licenses are currently reserved for social equity participants, as reported in the Milford Daily News:

The new “marijuana delivery operator” licenses…will be available exclusively to participants in the CCC’s social equity program and economic empowerment applicants for the first three years.”

Once you decide which type of license you want, the next steps are first to familiarize yourself with your states cannabis rules and regulations, and then to complete and submit a license application.

How to Apply for a Cannabis Delivery or Transport License

While the delivery and transport license application process looks different in each state that allows them, all states require applicants to be 21 years of age or older and most require operators to be current residents of the state where they intend to operate. There are also required, non-refundable application and licensing fees. While these fees are not insignificant, the good news is that they tend to be lower than the fees required for other cannabis business license applications.

Since compliance with state rules and regulations is a condition of licensure, licenses are awarded to some or all applicants that meet the application and regulatory requirements. Once awarded, cannabis delivery and transport licensees must maintain compliance or risk hefty fines and/or face a temporary or permanent shut down. One regulatory example is that delivery operators must digitally verify any and every customers photo ID before and when a cannabis product is delivered to a recipient; missing this critical step can put your businesses at serious risk of legal and financial consequences.

How to Maintain Compliance Once Youre Licensed

Maintaining compliance for any cannabis business can be challenging. There are strict guidelines on marketing and advertising, security, employee training, inventory management and more. Additionally, there are restrictions specific to cannabis delivery services, particularly limits on how much product can be delivered per order/transaction.

What does cannabis compliance specifically look like for cannabis delivery licensees? For one, all merchants must verify ID before an order is fulfilled. In states with medical cannabis, this would require medical card ID verification. Otherwise, for adult use markets, a drivers license or other state-issued photo ID with a valid birthdate is acceptable. Some states require recipients to sign a manifest or receipt acknowledging that they accepted the cannabis order and for the licensee to maintain a record of that acknowledgement for a specified number of years.

There are many other regulations that delivery operators must adhere to and many ways to stay up to date and compliant. Tasking a staff member to handle all things compliance is one option. Another is hiring a compliance professional to set up and oversee a compliance operating system and/or partnering with a compliance software solution provider.

Cannabis delivery services can be very profitable. In comparison to other cannabis licenses, they dont require as much finance capital to get started. Once a license is obtained, your priority will turn to maintaining compliance. Too many delivery services exist in a precariously legal gray area; dont let yours be one of them.

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.”