The great race to become the World’s weed supplier

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Submitted by Marijuana News on Fri, 10/11/2019

Companies vying to be the biggest cannabis producer in America or Canada are wasting their time and suffering from a crippling lack of vision. The real play is to make a bid to become the worldwide leader in global cannabis exports — like firms in Jamaica and Lesotho as well as Canada are attempting to do — and the window of time to get in is closing fast, according to one entrepreneur with clear-cut plans to curb that market.

Though recreational cannabis is now available in two countries, medical marijuana is legal in about 50 and not every country produces adequate supply to fulfill domestic demand. Over the long-term, the thinking goes, cannabis will become like any other agricultural commodity and production will shift to the locale where costs are lowest. But so far, the limited export game has been dominated by a few players, most of whom are either occupying a very limited lane or banking on the future.

An example of the former, Bedrocan in the Netherlands, produces cannabis solely for the government authority, which then exports most of it to Germany. Bophelo Bioscience and Wellness, a startup recently acquired by a Canadian-firm and based in tiny Lesotho, the first country in Africa to legalize cannabis, is an example of the latter. Somewhere else is a company like Fotmer Life Sciences in Uruguay, which is hoping to supplant both.

The world’s most popular illicit drug, cannabis boasts at least 263 million users worldwide, according to a New Frontier Data estimate, who in turn consume $340 billion worth annually, most of which is still on the underground market. At the moment, with so few legal companies producing cannabis and even fewer exporting, it’s a seller’s market. That state of play — flux, uncertainty, opportunity — will last only about another five years, said Jordan Lewis, an American entrepreneur who is Fotmer’s CEO.

Fotmer was in the news much last week as the company prepared its first shipment of export cannabis: 22 pounds, headed for medical cannabis patients in Australia. After that, Fotmer hopes to start competing with Bedrocan and begin shipping cannabis flower and oil to Germany, with up to 220 pounds or so per month headed out of the country to global customers, as he told Reuters.

Most of that will go to Europe, which “right now represents the single largest market in the next five years,” Lewis told Supplychainbrain.com.

The window for producers to charge high prices, before a reliable global supply floods the market, is now through 2024, he added, with high THC oils and plants to preserve their value longer than CBD products.

The modest first shipment is a tiny fraction of the company’s capacity. Fotmer currently has government approval to produce up to 10 tons of flower and 5 tons of oil, said Lewis — who added that he’s asking the Uruguayan government to allow him to grow 15 times that, in order to curb that global market. (He’s also shopping for a “large strategic partner” to provide the estimated $60 million of start-up capital needed to grow all that cannabis.)

If Lewis is right and producers in other companies join in, Fotmer may be well positioned to remain competitive, an outlook shared by other analysts. As New Frontier Data noted in a global market analysis released earlier this year, South America is considered a future hub for cannabis production thanks to an agreeable climate and low labor costs.

If countries decide that domestic suppliers are preferable and throw up tariffs, Lewis’s play could disappear. Or perhaps the best praxis is to play off of the incredible hype around the cannabis industry and get acquired. The point is that in a world obsessed with the next big thing, cannabis is very quickly approaching critical mass, and entrepreneurs are slowly catching on.

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Authored By: Cannabis Now

Article category: Marijuana Business News

Amid regulatory uncertainty and global demand, China’s hemp industry is booming

Submitted by Marijuana News on Tue, 10/08/2019 – 10:38

China has a zero tolerance approach to marijuana (along with numerous other drugs), yet surprisingly it is the world’s largest producer of hemp, and also the world’s largest exporter of this increasingly lucrative plant.

While chances of medical marijuana being legalized in China are seemingly next to none, calls for a clear policy when it comes to industrial hemp and CBD products are increasing — as is the plant’s production in the country.

While cannabidiol (CBD) has become as widely proliferated as over-the-counter painkillers in the West, products using this hemp-derived compound have yet to be seen stocking store shelves in China. The plant it originates from, however, has had a far lengthier history. Ma (麻), the Chinese word for hemp, has actually been in use for thousands of years, widely enough that the classic text Book of Odes, or Shi Jing (诗经), contains many references to hemp use in the daily lives of Chinese people from the 11th to 7th century BCE.

The cultivation of hemp was made illegal in 1985, despite China having a long history with the crop. It was only in 2010, after a push by locals, that authorities again allowed it to be grown on an industrial scale in Yunnan province in southwest China.

Marijuana plants containing the psychoactive agent tetrahydrocannabinol (THC) are to date resoundingly illegal within China — despite what Randy from South Park might think — but plants containing quantities of CBD fall into a grayer area.

As it stands, companies are allowed to farm industrial hemp in Heilongjiang and Yunnan provinces (in China’s northeast and southwest respectively). China Daily reported early this year that talk of farmers being allowed to grow industrial hemp in Jilin province (next door to Heilongjiang), which had begun in 2017, had proven fruitful. Additional sources attest that hemp is also legally being grown in regions such as Anhui, Gansu, and Xinjiang.

Figures provided on Hanma Industrial Group Co. Ltd.’s website — one of China’s leading hemp producers — show that half a million hectares of land were used to grow hemp in Anhui province, close to Shanghai in eastern China, in 2014. Other provinces, excluding Heilongjiang and Yunnan, accounted for 0.4 million hectares. Curiously, many media outlets fail to report these facts.

This confusion as to the location of hemp farms in the country is perhaps related to the distinctions of industrial hemp. Industrial hemp is a marijuana plant (cannabis sativa L. subsp. sativa var. sativa) specifically bred to contain the least amount of THC possible, and has a wide range of applications. Industrial hemp is the most commonly farmed hemp strain, although China is home to hemp plants from 33 families and more than 90 genera, including ramie, flax, jute, kenaf, sisal hemp, and abaca.

With that being said, police have historically targeted marijuana plants grown outside of the industry complex. This year, for instance, authorities eradicated 10,000 wild plants growing alongside the Yongding river in Beijing’s Fengtai district.

The mood at the Industrial Cannabis Forum of Listed Companies in mid-August was pragmatic in the face of such continued confusion over regulations in the industry. Participants called for more clearly defined policies on the issues, while Yuan Hua, general manager of Kunming Pharmaceutical Group, said that China’s cannabis industry will need an additional two to three years’ time to establish itself. Her suggestion for companies in the meantime was “research and development,” in order to create new pharmaceuticals and products and lay the groundwork for the future of the industry.

With the recent rise in products containing CBD around the globe, Chinese hemp farmers and companies have begun to turn their attention to cosmetics, pharmaceuticals, beverages, and other products that use CBD in some form.

Tan Xin, chairman and founder of Hanma Investment Group Co. Ltd., tells us: “We did a lot of research in the early days and saw that investors like Peter Thiel and George Soros had put money into this industry. We believe this business has huge potential.”

As an example of the potential lucrative nature of this industry, consider that July to late September/early October is usually harvesting season for hemp plants in China. As more companies seek to gain a foothold in this fledgling market — and news of developments like the legalization of industrial hemp farming in Jilin province has spread — stock prices for firms such as Dezhan Health and Meiyingsen have soared this year not only during harvest time, but since the beginning of 2019, prompting international media outlets like The New York Times to sit up and take notice.

Yet in a move that perhaps put a damper on the industry, the Chinese National Anti-Drug Committee published a release in mid-March earlier this year re-clarifying the country’s stance on industrial hemp farming. The release plainly stated that CBD is not included on the list of narcotic drugs in the country, and that it is not a controlled drug. It also stated that marijuana with a THC content of 0.3% or less can be grown in certain parts of China. While this release certainly clarified parts of China’s stance on CBD, it was also vague in many areas and had a negative effect on multiple stocks on Chinese exchanges, prompting investors to sell off.

Nonetheless, people like Tan are optimistic about the future of CBD in the country, particularly in the beauty industry. “Nowadays, CBD is considered an ‘all-purpose ingredient’ [for beauty] in the Western world,” says Tan. “It not only has a therapeutic effect on skin diseases, but is also effective in terms of oil control, acne, and skin whitening.

While research and development for all types of products using CBD is technically legal, only beauty products with CBD are legal to sell in China.

“Since 2015, ‘hemp leaf extraction’ can be legally used in cosmetics,” says Tan. “And because the cosmetics industry is so huge in China, we have a good shot in this business.”

He adds however that pharmaceuticals and health products remain the company’s biggest priority at the moment.

All of this points to the crux of China’s argument for the widespread legalization of industrial hemp farming and CBD use in medicine: health.

Many tout the benefits of CBD in treating conditions like epilepsy and Alzheimer’s, as well as providing pain relief, though research on some of these claims is as of yet inconclusive. According to a report by Global Times, China holds 309 of the world’s 606 hemp-related patents, but due to legal restrictions, Chinese-made food and medicine containing CBD can only find a market outside of the country, in places like the US and the EU.

As Tan puts it, “the hemp industry is a health industry. Nothing will keep us from the pursuit of health.”

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Authored By: Radii China


“…any Canadian working in the marijuana industry would not be permitted to enter the US. “

Canadian cannabis companies are whipping around after report says workers may face lifetime travel ban to US (TLRY, CGC, CRON)

Jonathan Garber   Sep. 14, 2018, 08:06 AM

Canopy Growth marijuana weed

  • A report out Thursday suggests workers in the Canadian cannabis industry could face a lifetime ban on travel to the US.
  • Shares of Canadian cannabis companies were down as much as 15% on the news before paring their losses.
  • Ballooning valuations have caused these companies to come under more scrutiny of late.
  • Watch Tilray, Canopy Growth, and Cronos trade in real time.

Canadian cannabis companies are whipping around Friday morning, tumbling as much as 15% before paring their losses, following a report suggesting workers may face a lifetime ban on travel to the US.

A Politico report published after markets closed on Thursday, citing a senior official overseeing US border operations, said any Canadian working in the marijuana industry would not be permitted to enter the US. “If you work for the industry, that is grounds for inadmissibility,” Todd Owen, the executive assistant commissioner for the US Customs and Border Protection’s Office of Field Operations, told Politico.

Here’s a look at the scoreboard as of 2:35 p.m. ET:

Canada’s marijuana industry has seen valuations balloon in recent months. Tilray, for example, has seen its share price skyrocket by more than 600% since it went public in July.

The huge growth in the industry has sparked the interest of institutional and retail investors alike and has led to investments from the competing alcoholic-beverage industry. Back in August, Constellation Brands, the company behind Corona beer and Svedka vodka, announced it was investing another $4 billion in Canopy Growth, which raised its stake to 38%.

The recent interest in the space has caught the attention of the US Securities and Exchange Commission. Just last week, the SEC warned investors to watch out for promises of guaranteed returns, unregistered sellers, or unsolicited offers in marijuana names.

“If you are thinking about investing in a marijuana-related company, you should beware of the risks of investment fraud and market manipulation,” the SEC said.

“Fraudsters may try to use media coverage about the legalization of marijuana to promote an investment scam.”

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NOVA SCOTIA CANADA: Once again it seems that you can’t grow Cannabis and treat licensed patients, even if Cannabis is “legal”…

NOVA SCOTIA CANADA:  Once again it seems that you can’t grow Cannabis and treat licensed  patients, even if Cannabis is “legal”.

At approximately 10:30am on September 5th, Rev. Daren McCormick and Rev. Kevin James were visited by the RCMP at which time they proceeded to search their property located in Loch Broom Nova Scotia Canada, where they were growing Cannabis for            Patients.  Rev. Kevin James explained to RCMP that they were licensed plants and who they belonged to.  The RCMP produced no warrant yet they proceeded to search both outside and inside their home.

They were  both incarcerated by the RCMP for growing, and trafficking Cannabis.  They both remained incarcerated for 24 hours before being released.  Rev. Kevin James was denied medication for seizures during the stay.

Over 1000 plants were taken by the RCMP as well as a small indoor  grow. Personal items of the two men were taken in the search such as legal documents, witness lists and an antique Bow that hung above the fireplace belonging to Daren’s Grandfather, a family     heirloom dating back to 1915 that yielded no threat to anyone.

The garden of Cannabis is estimated to be worth well over a million dollars plus and it has been destroyed.  You can’t give back a plant that was pulled from the ground in its natural growing state!

Image may contain: 1 person, smiling, hat   Image may contain: 1 person, standing, sky, plant, tree, grass, outdoor and nature

WE OPERATE UNDER CANNATHEISM and our congregational collective is via the Church of the Universe: the Universe is our Church

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Above:  The Global Incident Map publishes the bust.

Pictou RCMP dismantle grow-op, seize marijuana in Loch Broom

Image may contain: dog, plant, outdoor and nature

Above:  Rev. Kevin James Service Dog “Molly” was not charged in the raid!

He has also posted these status updates on Facebook concerning the events:

FROM ONE HONORABLE MAN TO ANOTHER

FOR POSTING US ON THIS MAP 🙂 DOES THIS MEAN WE MADE IT TO THE BIG BOY LIST LOL

FACEBOOK LAND OF CANNABIS ACTIVISTS AND OIL MAKERS AND HEALERS…

“Officers of the court have no immunity, when violating a constitutional right, for they are deemed to know the law”

I just read the search warrant they used to destroy the plants.

Daren Mccormick has 4 new cannabis charges, and i have 5 new charges… in last 10 days… heads up…

AFTER HAVING BEEN CONTACTED BY SEVERAL PATIENTS WE TENDED GARDENS FOR FROM ACROSS CANADA..

Q. If a patient revokes the DG status of a grower and they get caught growing anyway… say 850 plants x 4 crops a year and do it for 4 years or so…. and the patient receives zero from their garden… thats diversion…

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ARTICLES ON KENTUCKY MARIJUANA PARTY ABOUT DAREN

Canada just became the 2nd country in the world to legalize marijuana

Canada marijuana

Jeremy Berke  25 m

  • Canada just became the second country in the world to legalize marijuana nationwide. Legal sales are set to begin October 17.
  • The bill passed Canada’s Senate 52-29 on Tuesday evening.
  • Prime Minister Justin Trudeau promised during his 2015 campaign to legalize marijuana.
  • Marijuana stocks surged on the news on Wednesday morning.

Canada is the second country in the world to legalize marijuana, paving the way for recreational sales throughout the country.

Canada’s Upper House of Parliament on Tuesday evening approved the revised bill 52-29, making Canada the first G7 country to legalize marijuana. Uruguay did so in 2013.

Prime Minister Justin Trudeau said on Wednesday that legalization would officially take effect on October 17, citing provincial requests for more time to develop retail infrastructure.

“It’s been too easy for our kids to get marijuana — and for criminals to reap the profits,” Trudeau said in a tweet on Tuesday evening. “Today, we change that. Our plan to legalize & regulate marijuana just passed the Senate.”

What the bill does

Bill C-45, known as the Cannabis Act, legalizes marijuana but leaves it up to each province to decide how to sell it. Some provinces, like Ontario, are planning on provincially run outlets, while others, like Alberta, will open up marijuana retail to the private sector.

The federal government set a minimum age of 18 to purchase marijuana, though some provinces have indicated they will raise the age to 19, mirroring liquor-purchase laws. The bill makes the distribution and sale of marijuana to minors an offense.

marijuanaIt’s Canada’s moment. REUTERS/Andres Stapff

Recreational sales are expected to begin in eight to 12 weeks, according to Reuters.

The bill was part of a promise that Trudeau’s Liberal Party made during the 2015 campaign to keep marijuana out of young people’s hands and move the illicit market into a regulated framework.

“I’m feeling just great,” Sen. Tony Dean, who sponsored the bill in Canada’s Senate, told the Canadian Broadcasting Corporation. “We’ve just witnessed a historic vote for Canada. The end of 90 years of prohibition. Transformative social policy, I think. A brave move on the part of the government.”

Activists applauded the move

Cannabis activists cheered the move on Wednesday morning.

“Canada should be applauded for taking bold and decisive steps towards ending the failed prohibition of marijuana,” Hannah Hetzer, the senior international policy manager for the Drug Policy Alliance, said in a statement. “Canada’s progress will galvanize support for drug policy reforms in the US and all around the world.”

Erik Altieri, the executive director of the National Organization for the Reform of Marijuana Laws, echoed Hetzer’s sentiment.

“We applaud Canada for showing federal legislators in the United States what can be accomplished with true leadership and dedication to sound public policy,” Altieri said in a statement.

Marijuana stocks are surging

Marijuana stocks surged on the news on Wednesday morning.

The Canadian Marijuana Index, an aggregate measurement of all publicly listed marijuana stocks in Canada, was up 3.3% as of 10:45 a.m. The overall North American index, which includes US stocks, was up 2.3%.

Golden Leaf Holdings, a cannabis company listed on the Canadian Securities Exchange, was the biggest gainer, with the stock surging 6.8%.

Legalized marijuana is expected to be a boon for Canada’s economy. The Canadian Imperial Bank of Commerce, one of the country’s largest banks, predicts that Canada’s legal marijuana market will be a $6.5 billion industry by 2020.

Several Canadian marijuana firms, including Aurora Cannabis and Canopy Growth Corporation, are seeing a wave of investor excitement around marijuana legalization. Marijuana companies have been capitalizing on that liquidity to go on acquisition sprees.

Read more cannabis industry coverage:

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