In February 2013 Earl Blumenauer of Oregon and Jared Polis of Colorado introduced bills pointing the way to the

future. Polis' measure would regulate marijuana the way the federal government handles alcohol: In states that legalize pot, growers would have to obtain a federal permit. Oversight of marijuana would be removed from the Drug Enforcement Administration and given to the newly renamed Bureau of Alcohol, Tobacco, Marijuana and Firearms, and it would remain illegal to bring marijuana from a state where it's legal to one where it isn't. The bill is based on a legalization measure previously pushed by former Reps. Barney Frank of Massachusetts and Ron Paul of Texas. Blumenauer's bill would create a federal marijuana excise tax of 50 percent on the "first sale" of marijuanatypically, from a grower to a processor or retailer. It also would tax pot producers or importers $1,000 annually and other marijuana businesses $500. His office said Monday it doesn't yet have an estimate of how much the taxes might bring in. But a policy paper Blumenauer and Polis are releasing this week suggests, based on admittedly vague estimates, that a federal tax of $50 per ounce could raise $20 billion a year. They call for directing the money to law enforcement, substance abuse treatment and the national debt. Last fall's votes in Colorado and Washington state to legalize recreational marijuana should push Congress to end the 75-year federal pot prohibition, Blumenauer said. Washington state officials have estimated that its legal marijuana market could bring in about half a billion dollars a year in state taxes. "You folks in Washington and my friends in Colorado really upset the apple cart," Blumenauer said. "We're still arresting two-thirds of a million people for use of a substance that a majority feel should be legal. ... It's past time for us to step in and try to sort this stuff out." Advocates who are working with the lawmakers acknowledge it could take years for any changes to get through Congress, but they're encouraged by recent developments. Senate Minority Leader Mitch McConnell last week came out in support of efforts to legalize hemp in his home state of Kentucky, and U.S. Rep. Dana Rohrabacher, R-Calif., is expected to introduce legislation allowing states to set their own policy on marijuana. Senate Judiciary Chairman Patrick Leahy, D-Vt., has indicated he plans to hold a hearing on the conflict between state and federal marijuana laws and has urged an end to federal "mandatory minimum" sentences that lead to long prison stints for

drug crimes. "We're seeing enormous political momentum to undo the drug war failings of the past 40 years," said Bill Piper, director of national affairs for the Drug Policy Alliance, who has been working with lawmakers on marijuana-related bills. "For the first time, the wind is behind our back."

In February 2013 the California Supreme Court upheld two appellate court rulings, saying that patients don't have to physically grow pot to be members of collectives and can exchange cash for weed. In short, the high court rejected the "make-'em-grow-it" argument that had been used by state prosecutors, cops, and city attorneys. In addition, cases against at least two Vallejo dispensaries as well as one San Diego dispensary operator's conviction were dismissed as a result of the court rulings clarifying club operators' and members' rights.To fully understand the ramifications of the rulings requires a bit of historical background. California law essentially states that medical marijuana patients, their caregivers, and collectives are immune from being prosecuted under certain state drug laws. But many inland and Southern California communities have sought to block full implementation of these immunities, which were outlined in Proposition 215, approved by state voters in 1996, and SB 420, which passed the state legislature in 2003.Instead of honoring Prop 215 and SB 420, these communities and their cops have sought to prevent doctors from recommending pot, and they've thrown scores of patients and operators in jail using extremely narrow interpretations of the law. For example, the League of California Cities and many California DAs believe cities have the right to ban collectives and dispensaries. DAs, especially ones in Los Angeles, have also closed down numerous clubs, arguing in court that sales at dispensaries are illegal. And prosecutors have frequently declared a collective illegal if its cancer patients don't physically grow some pot for the collective.In October 2011, California's four US attorneys held a press conference declaring the state's growing number of medical marijuana businesses a target. Many local cops celebrated the federal crackdown, and were emboldened to shut down hundreds of medical marijuana collectives, especially in Southern and inland California, using state law. "Sales are illegal" and "not a true collective" became a common refrain from California law enforcement and prosecutors. And as a result, there were actually two crackdowns going on in California simultaneously one by the federal government and the other by local cops, DAs, and city attorneys.However, a number of appellate court verdicts over the past year rejected the narrow reading of state law that fueled the second crackdown. And now the California Supreme Court has upheld these appellate courts rulings. In particular, the high court on January 16 declined to review or "depublish" a Fourth District Court of Appeals ruling in the case of the People v. Jovan Jackson.Jackson was a San Diego club operator convicted in state court in 2012. The appellate court overturned Jackson's conviction on October 24, finding that "the collective or cooperative association required by [state law] need not include active participation by all members in the cultivation process but may be limited to financial support by way of marijuana purchases from the organization."The District Attorney's Offices of San Diego, Sonoma, Sacramento, and Los Angeles counties petitioned the state Supreme Court to review and overturn the appellate court's decision. And the League of California Cities asked the Supreme Court to not only review Jackson, but to "depublish" the appellate court's decision. When a decision is depublished, it's no longer precedent-setting and other courts don't have to abide by it.Joe Elford, an attorney with Americans for Safe Access who represented Jackson in his appeal, said the Supreme Court's decision not to review or depublish Jackson was historic. "Even though the appellate court decision garnered significant opposition, patients have prevailed in their struggle to protect safe access to medical marijuana," he said.The appellate court rulings had already started to rock California courthouses. On December 10, charges against two Vallejo club operators were dropped after a Solano County judge rejected prosecutors' assertions that Better Health Collective and Life Enhanced Services were unlawful because they engaged in sales and most members didn't grow weed. Better Health Collective lawyer Scott Candell of San Rafael said cops will have to invent a different excuse to harass collectives. "The law always was this," he said. "[Patients] don't have to be in the garden."All the [Jackson] case did was to spell it out and to confirm, 'Yes, this is the law,'" Candell continued. "For people who don't understand [the law] or are choosing to ignore it, it is much more in their face."The League of California Cities did not respond to requests for comment nor did the Sonoma County DA's office. Officials in the San Diego DA's office wrote that "illegal drug dealers" are hiding behind state law, and they "welcome" more legal clarity from the courts.Cancer patient and marijuana advocate Angel Raich of Albany said closing lawful pot clubs harms patients and increases black-market dealing on city streets. California communities should stop wasting taxpayer dollars. "Arguing that sales were illegal or patients had to grow pot was very popular

not only with cops, but with cities and counties writing policy," she said. "They need to be put on notice."I think every DA and police chief should get a copy," Raich continued, referring to the court's decision. "A law is a law."

Senator Mitch McConnell, the Senate Minority Leader, comes out in support of Sen. Rand Pauls efforts to legalize industrial hemp. The Marijuana Green Rush Is On As marijuana becomes more mainstream, I often wonder what the industry will look like in two years, five years, ten years, and beyond. One thing is for sure it isnt going to look like it does now. As more and more states legalize marijuana, and marijuana becomes more mainstream, things are no doubt going to evolve. But how? There are normal trends that industries usually follow, and the marijuana industry will exhibit some traits of those trends, but there will also be a lot of unorthodox things that will pop up.A lot of people that I talk to look to the end of alcohol prohibition as an example, and I think thats logical considering its the closest thing to marijuana prohibition that America has seen. However, I always point out that marijuana prohibition has been much longer, and that regulating a liquid based industry is different than one that revolves around a plant and the things people do with it (concentrates, edibles, etc). Regulating marijuana like alcohol is a good thing in a lot of ways, but there are going to need to be some details worked out.Everyone seems to agree that the marijuana industry will grow exponentially in size in the future. I remember not that long ago it seemed like marijuana was hard to find, and that the taboo stigma was much higher. Now marijuana is all over the West Coast and beyond. Its far easier to get than ever before, and theres no signs that trend is going to slow down. Once people all across America can get as much marijuana as they want for recreational purposes, even one ounce at a time, the industry is going to be massive. It will likely dwarf almost any industry in America.As a result of the massive size, corporations are going to start infiltrating more and more. Ive already seen a little bit of it myself in business dealings with this site, and the business side of things is often not pretty. For a long, long time the marijuana industry was a black market, cottage industry. There was a lot of etiquette involved and most good business partnerships were forged on trust and respect. More and more the industry will be decided by the bottom line. Can you imagine what will happen when national corporations start trying to take over the multi-billion dollar cannabis industry? Things are going to get nasty, and Im not talking about the quality of the weed.A lot of the little guys are going to get pushed out. One thing that I always think of is dispensary locating based businesses. Id imagine the larger ones that are diversifying their business model will be OK, but businesses that solely rely on listing dispensaries might be in trouble. For a long time it was a niche service that large companies like Yellow Pages didnt want to list, let alone allow reviews. After all, it was taboo. But now things are different.I just did a search on Yelp.Com for dispensaries in Portland, Oregon, and of course

there are lots of locations, with lots of reviews. A Google map is listed with icons for locations, etc. How long will dispensaries be willing to pay a premium for something that large companies are giving away for free? Thats just one example of many areas of the marijuana industry that are going to have to find new ways to stand out against the big boys.Ancillary businesses are going to be a much larger industry than outside experts are predicting. Anyone who is already involved in the ancillary part of the industry sees the potential. There are a lot of people that are fighting to be the largest grower, or to have the largest dispensary or collective. But what more people should be looking into is having the best grow equipment, or best smoking device, or something else that all of those people that are scrambling to become the ultimate green thumb or toker will want. Plus, there are no city ordinances against which grow buckets you can use, whereas there are lots of ordinances (and more popping up) limiting where gardens and outlets can be located.Im really curious to see what the economic overflow from the industry will look like. How much more snack food will be sold? With certain parts of the country having a head start on the industry, will we see a significant population shift to those areas to fill those jobs that come along with the boom? If people are making tons of money off of the cannabis industry in say, Denver, wont they be pumping a lot of that money into the local economy, which then also creates even more jobs and business opportunities? I have always felt that marijuana could save the economy in America and beyond, and Im really excited that the beginning of the process is in full swing.What do TWB readers think? What are you looking forward to? What do you fear? What areas do you think will improve for the little person and what areas do you think will succumb to the corporate wrath? What things do you think are going to exist that dont currently? Do you think that money and greed will eventually ruin a movement that has worked so hard to get to a point where an industry can even exist? I look forward to your thoughts.About Johnny
Green

By Morgan Fox, Marijuana Policy ProjectA national poll released this week by Reason Magazine found that a majority of adults want to see marijuana reform, and that they want the federal government to respect state laws concerning marijuana.Some highlights, courtesy of Katie Hooks: - 72 percent of Americans say the federal government should not arrest marijuana users in states like Colorado and Washington that have legalized the drug. - 68 percent of Americans say the federal government should not arrest marijuana growers in states that have legalized the drug. - 64 percent say the federal government should not arrest marijuana sellers in states that have legalized the drug.

- 53 percent say they agree with the statement that marijuana should be treated the same as alcohol. - 49 percent say they oppose legalizing marijuana for recreational use and 47 percent support legalizing it. That finding is within the polls margin of error, which is plus or minus 3.8 percent. It is important to note the discrepancy in these last two results. Often times, when people hear the word legalize, they assume that this means making marijuana legal with no regulations or systems in place to govern the distribution and use of the substance. This could easily explain why more respondents agree with treating marijuana like alcohol than with legalizing marijuana. Fortunately, every serious effort to make marijuana legal in states around the country has been careful to include provisions that would establish a well-regulated cultivation and distribution system.

Diego Pellicer* is the first retail brand in the United States focused exclusively on legal, premium marijuana for pleasure and creative pursuits. It is important for us to emphasize that everything we do, is and always will be, completely legal. While the federal government has not yet weighed in officially on how it will respond to Washington States Initiative 502, we are committed to building our business under the assumption that the federal government will permit us to operate in the states of Washington and Colorado, and eventually other states, as they adopt their own specific initiatives. We believe the writing is on the wall that marijuana will become legal in the entirety of the US in the next decade or so.Our exclusive focus on premium marijuana products is very intentional: we believe that marijuana should be consumed responsibly and in moderation. Simply put, it should be savored, analogous to how one enjoys a fine cigar, a premium chocolate or cognac. And we believe that while medical marijuana should be made available to those patients who need it at low-cost, premium marijuana for pleasure, creativity and relaxation should be considered more of an occasional luxury.Our products will be 100% safe, with guaranteed consistent quality, to be enjoyed legally, by responsible adults, in responsible quantities. We will offer a premium-quality, hand-crafted product. Think of us as the Davidoff of marijuana, with great attention given from genetics to the finished product.*Pronounced Payee-Sayr Contact UsWe are experiencing a high volume of inquiries. For fastest response, please reach out via email instead of phone. For more information about The ArcView Angel Investor Network, please click here.The ArcView Group 169 11th St. San Francisco, CA 94103TEL: 415-516-6680 EMAIL: info@arcviewgroup.comPlease Note: The ArcView Group is for ancillary

businesses in the legal cannabis industry that do not deal with cannabis directly. The ArcView Group does not directly help dispensary or cultivation businesses.

Marijuana Stocks

Stocks Related to the Medical Cannabis Industry Companies listed below in some fashion provide consulting, cannabinoid based pharmaceuticals, specialty equipment, financing, ancillary businesses, and/or other industry-specific services to the Medical Cannabis Industry. BG Medical Technologies, Inc. (Public, PINK:RIGH) BG Medical Technologies, Inc. develops socially relevant technology systems and media content for the medical cannabis and alternative health industry that are the result of extensive analysis of scientific data collected through a proprietary network of software solutions, patients, and medical professionals. The company's flagship product, BudGenius.com, is a social web platform designed to assist patients in selecting cannabis medicine paired to their specific needs. An advanced laboratory designed for cannabis study is utilized to determine potency and safety guidance for cannabis dispensaries. BudGenius is recognized as the most comprehensive online database for scientifically tested cannabis worldwide. BG Medical Technologies operates its laboratory, media studio, and executive center in Los Angeles, California; the highest concentration of medical cannabis dispensaries in the world. BG's technology development centers are located in Los Angeles, CA, Ukraine, and Philippines.
Read our latest company news from BG Medical Technologies, Inc.

Cannabis Science, Inc. (Public, OTC:CBIS) Cannabis Science, Inc. (Cannabis Science), formerly Gulf Onshore, Inc., is a development-stage company. The Company is engaged in the research and development of medical marijuana. On May 8, 2010, Cannabis Science acquired Rockbrook Inc., a company with facilities growing and providing organic medical cannabis to patients with a physicians recommendation. On May 24, 2010, the Company acquired a private company with two operations, an organic medical marijuana facility and a medical marijuana dispensary providing patients with medical marijuana in Colorado. Cannabis Science works on phytocannabinoid science,

targeting illnesses to develop, produce and commercialize phytocannabinoid-based pharmaceutical products. The Company focuses on creating cannabis-based medicines, both with and without psychoactive properties, to treat disease and the symptoms of disease, as well as for general health maintenance. Read our latest company news from Cannabis Science, Inc. Converted Organics, Inc. (Public, OTC:COIN) Converted Organics, Inc. (Converted Organics) operates processing facilities that use food waste and other raw materials to manufacture all-natural fertilizer and soil amendment products combining nutritional and disease suppression characteristics. In addition to its sales in the agribusiness market, it sells and distributes its products in the turf management and retail markets. Operations at the Woodbridge facility processes solid waste and are producing both liquid and dry fertilizer and soil improvement products. A facility in Gonzales is an operational and produces liquid fertilizer products (the Gonzales facility). The facility produces at approximately 60% of potential production capacity to accommodate sales demand. In November 2010, the Company acquired 95% interest in TerraSphere Systems, LLC.
Read our latest company news from Converted Organics, Inc.

Cynapsus Therapeutics, Inc. (Public, CVE:CTH) Cynapsus Therapeutics Inc. (Cynapsus), formerly Cannasat Therapeutics Inc., is a specialty clinical development pharmaceutical company targeting diseases of the brain. Cynapsus lead drug candidate, APL-130277, is an reformulation of an approved drug for the treatment of motor fluctuation in Parkinsons disease. APL130277 is designed to be a fast-acting rescue of patients experiencing motor fluctuations from off episodes during the day. The reformulation could address a large moderate to severe patient population, which represents approximately 25% to 50% of Parkinsons patients. Cynapsus focuses to grow its portfolio of drug candidates through in-licensing and acquisitions, and to advance projects to Phase II proof-ofconcept clinical studies. In 2007 Cannasat Therapeutics Inc. (CTH: TSXV) and IntelGenx Corp. (IGXT:OTCBB) today announced a long-term collaborative agreement to co-develop a novel cannabinoid-based product, CAT 320, through a combination of Cannasats and IntelGenxs proprietary drug delivery technologies.
Read our latest company news from Cynapsus Therapeutics, Inc.

Fusion Pharm, Inc. (Public, PINK:FSPM)

Each medical cannabis market in the United States is different. In some markets companies must be non-profit while others are for-profit. Despite the currently fragmented nature of the market, FusionPharm, Inc. looks at this as a nationwide business model and has positioned itself accordingly. No matter what challenges local conditions may present, FusionPharm, Inc. has developed a process that will allow us and our shareholders to capitalize on this growing national business. We provide a focused variety of support products and ancillary services primarily to the medical cannabis industry. We provide specialty equipment, financing, consulting and other industry-specific services to Medical Cannabis Centers, Infused Product Manufacturers and cultivation professionals and this service is available nationwide.
Read our latest company news from Fusion Pharm Inc.

GreenGro Technologies, Inc. (Public, PINK:GRNH) GreenGro Technologies is an environmentally friendly agricultural technology company dedicated to sustainab GreenGro Technologies, Inc. (Public, PINK:GRNH) GreenGro Technologies is an environmentally friendly agricultural technology company dedicated to sustainable, compact growing systems for both the small home grower and commercial farmer alike.The Main focus of GreenGro Technologies Inc., is to advance food and medicine science by providing highly efficient eco friendly vertical hydrogarden systems. Greengro Technologies Inc. is devoted to furthering the development of its patent pending vertical wall system, and the acquisition of other technologies for consumers and industrial cultivators through direct sales, strategic partners and distribution channels.
Read our latest company news from GreenGro Technologies Inc.

GW Pharmaceuticals, plc (Public, LON:GWP) GW Pharmaceuticals plc is a United Kingdom-based company. The Company is engaged in the research, development and commercialization of a range of cannabinoid prescription medicines to meet patient needs in a range of medical conditions. The Company is developing a portfolio of cannabinoid medicines, of which the main product is Sativex, an oromucosal spray for the treatment of Multiple Sclerosis (MS) symptoms, cancer pain and neuropathic pain. During the fiscal year ended September 30, 2010, the Company launched Sativex in the United Kingdom. The Sativex is marketed in the United Kingdom as a treatment for MS Spasticity. The Companys wholly owned subsidiaries include GW Pharma Limited, G-Pharm

Limited, Cannabinoid Research Institute Limited, Guernsey Pharmaceuticals Limited and GWP Trustee Company Limited. As of September 30, 2010, the subsidiaries GPharm Trustee Company Limited and Advanced Dispensing Systems Ltd were dormant.
Read our latest company news from GW Pharmaceuticals

Hemp, Inc. (Public, OTC:HEMP) Hemp, Inc. focuses on supplying services, products, and information related to the medical marijuana industry or to those who have an affinity for the medical marijuana industry. The company partnered with Hemp.com through a joint venture agreement early in 2012. Its products include nutraceutical products designed to improve concentration and joint flexibility, increase awareness and energy, and improve overall wellness, as well as to supply hemp and blue-green algae protein; and skin care products for men and women. The company was formerly known as Marijuana, Inc. and changed its name to Hemp, Inc. in June 2012. Hemp, Inc. was founded in 2008 and is based in Las Vegas, Nevada. Hemp, Inc. is not involved in the cultivation or marketing of medical marijuana. It is the company's belief that legalization of marijuana on a federal level will come to pass. With that in mind, the company is building infrastructure with the potential to gain substantial market share once marijuana prohibition ends.
Read our latest company news from Hemp Inc.

MediSwipe, Inc. (Public, OTC:MWIP) MediSwipe, Inc. formerly Cannabis Medical Solutions Inc., provides both online and wireless merchant payment solutions. The Company offers a range of secure transaction processing solutions using Internet point-of-sale (POS), e-commerce, social networks and mobile (wireless) terminals through its alliance partner network. The Companys electronic payment processing range of services will enable clients to accept credit cards in stores or online, debit and automated teller machines (ATM) cards and automated clearance house (ACH) check drafts for payment whether a retail, service, mail-order or Internet merchant. The Commerce Online suite of ecommerce services include private label gateway, credit card acceptance, debit/ATM card acceptance, phone/mail order, Internet processing, gift and loyalty cards, check services, wireless/mobile, Electronic Benefits Transfer (EBT), Web development and consulting, ACH, and equipment and supplies.
Read our latest company news from MediSwipe Inc.

Medical Marijuana, Inc. (Public, PINK:MJNA)

Medical Marijuana, Inc. provides various business management solutions to the hemp and medical marijuana industries in the United States. The company offers integrated tax oversight and collection solutions to local, state, and federal governments. Its solutions include revenue collection systems, turn-key management solutions, and marijuana testing and gradation. The companys Stored Value Platform System offers solutions to manage the task of revenue and taxation collection through issuing plastic debit card or medical revenue card. It also operates the Hemp Network, a network marketing platform that provides consumers with hemp products. Medical Marijuana, Inc. was founded in 2009 and is based in San Diego, California.
Read our latest company news from Medical Marijuana Inc.

Medbox Inc. (Public, PINK:MDBX) Prescription Vending Machines, Inc. is a subsidiary of Medbox, Inc. Vincent Mehdizadeh founded Prescription Vending Machines, Inc. (PVM), in 2008 on the principle that all great industries thrive when automated. The Company features a patented machine that dispenses medication to individuals based on biometric identification (fingerprint sample). The founder is responsible for establishing corporate direction and setting the Companys strategy as well as handling day-to-day CEO duties. PVM has grossed $6 million dollars since it began doing business in 2010 through the final quarter of 2011 and has successfully established a public company presence in Medbox, Inc. According to the company website, they occupy offices in: Los Angeles, New York, Tokyo, Toronto, and London.
Read our latest company news from Medbox Inc.

Growlife Inc. (Public, OTC:PHOT) (formerly Photoron Holdings, Inc.) Growlife, Inc. formerly Phototron Holdings, Inc., formerly Catalyst Lighting Group, Inc., incorporated on March 7, 2001, is engaged in designing and manufacturing of indoor mini-greenhouses capable of growing herb, vegetable, flower, fruit and terrestrial plant. The Companys product consists of 21x 39 units and 21x51 units and provides between 18,900 and 36,000 lumens of light. On February 14, 2011, the Company entered into an agreement and plan of merger (Merger Agreement) with PHI Merger Corporation and its wholly owned subsidiary (MergerCo), and Phototron, Inc., (Phototron). On March 9, 2011, MergerCo was merged with and into Phototron and Phototron became its wholly owned subsidiary. In May 2011, it announced the launch of its wholly owned direct selling hydroponic gardening subsidiary, GrowLife

Inc. Effective August 6, 2012 Phototron Holdings announced its plan to rebrand itself to GrowLife, Inc.
Read our latest company news from Growlife Inc.

Rapid Fire Marketing Inc. (Public, PINK:RFMK) Rapid Fire Marketing is a holding Company for several businesses. The core business in Rapid Fire Marketing is the Vapor Inhaler. The Vapor Inhaler is the base technology for the CANNAcig and follow on products. At this time, follow on products include the Pocket Puffer, and the Power Pocket Puffer. The Vapor Inhaler is brand new and disruptive technology for medical cannabis patients around the world. The device uses Cannabis Vapor Inhaler technology which is superior to any other device on the market. The Vapor Inhaler has a huge opportunity in the retail market where it is sold without the active ingredient. RFMK focuses on Vapor Inhaler development and sales that provides a solution for vaporizing nicotine, THC (tetrahydrocannabinol) for the medical marijuana industry and herbs for casual users. Rapid Fire Marketing, Inc. was incorporated in 1989 and is based in Carson, Nevada.
Read our latest company news from Rapid Fire Marketing Inc.

Search Core Inc. (Public, PINK:SRER) (formerly General Cannabis, Inc.) SearchCore, Inc., formerly General Cannabis, Inc., is a service provider to the medicinal cannabis industry through five different sectors, such as media, technology, medical clinic management, merchant credit card processing, and marketing. The Company assists the physicians, dispensaries, and end-users within the medicinal cannabis industry in finding each other and in managing their businesses. The Companys operations are conducted through its wholly owned subsidiaries, which include WeedMaps Media, Inc., General Health Solutions, Inc., General Marketing Solutions, Inc., General Merchant Solutions, Inc. and General Management Solutions, Inc. On January 11, 2011, the Company acquired Revyv, LLC. In November 2011, the Company announced that WeedMaps Media, Inc. acquired the domain name Marijuana.com. In December 2011, the Company announced that WeedMaps Media, Inc. has acquired the Android smartphone application WeedLaws. In January 2012, the Company acquired MMJMenu, LLC.
Read our latest company news from SearchCore Inc.

Tranzbyte Corp Inc. (Public, PINK:ERBB)

The Tranzbyte Corporation now becomes a driving force behind Altitude Organic Corporation. The company continues its plan to acquire, hold, or spin out successful divisions in what has been described in previous news releases as "dividend farming," Subsidiary companies that qualify and decide to become public on their own can expect Tranzbyte's continued support throughout the entire process. In early 2012, Tranzbyte acquired ProximaRF a leading-edge technology company that produces a line of products supporting innovative uses for RFID technology.
Read our latest company news from Tranzbyte Corp Inc.

Terra Tech Corp (Public, OTC:TRTC) Terra Tech Corp., formerly Private Secretary, Inc., through its subsidiary GrowOp Technology Ltd. (GrowOp Technology) specializes in controlled agricultural technologies. The company integrates breed hydroponic equipment with technology to create solutions for the cultivation of indoor agriculture. It works with horticulturists, engineers, and scientists, to develop and manufacture products for the urban agricultural industry. Its products are utilized by horticulture enthusiasts, local urban farmers, as well as green house growers. Its products can be found through specialty retailers throughout the United States. Read our latest company news from Terra Tech Corp Read more: http://www.thcbiz.com/marijuana-stocks.html#ixzz2JZzfzth6
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Its hard to deny the appeal of investing in legal cannabis. After all, how often do you get the chance to participate in a bona fide gold rush, with an ever-shifting market, few established players and consumer demand that is all but waiting to explode?
The recent, historical approval of marijuana for recreational use in Colorado and Washington state adds a brand-new element to the business. For investors, the smell of a once-in-a-lifetime opportunity is in the air. And who doesnt want to add drug kingpin to their resume? Cannabis is really already a structured and mature market, it just exists in the black market, says Derek Peterson, CEO of Terra Tech (TRTC), a startup that manufactures hydroponic growing systems. Its moving to the white market, or at least the gray market, but we still didnt have to make the market, it already exists.

Were just taking it out of the hands of the cartels and putting it in the hands of legitimate business. And the upside potential is huge.Its an industry that has a lot of problems, but thats part of the opportunity, explains Brendan Kennedy of Privateer Holdings, a Seattlebased private equity firm thats focused on legal cannabis. The companies are immature, the managers are unprofessional, its highly fragmented, there are no standards, the branding and marketing bar is very low and there are no established players. There are not even any Wall Street analysts that study this industry yet. Bigger than corn Still, despite these problems, the sector has annual revenues in the neighborhood of $40 billion, which Kennedy says makes the cannabis market even bigger than corn. How many people trade corn as a commodity?" he asks. "How many sub-industries are focused on corn? There will be a desk at Goldman where you have analysts studying cannabis. Its going to happen and its going to happen faster than anyone thinks. Of course, the reality is that marijuana remains very much an illegal product in the eyes of the federal government, despite the rulings in Colorado and Washington and the fact that it's legal for medicinal purposes in 18 other states. As an investment, it doesnt get much riskier than that. The first thing I would point out to a prospective investor is that these companies are still breaking federal law, says Irvin Rosenfeld, a South Florida-based stockbroker and author of the pro medical marijuana book, My Medicine. While Obama has said that the federal government has bigger fish to fry," Rosenfeld continues, "that hasnt stopped the feds from going into states like California and telling dispensary owners that their tax dedications are disallowed, or the DEA from shutting down dispensaries that are near schools or parks. [Slideshow: Marijuana-Related Stocks: Companies and Products] But thats not to say there isnt money being made in cannabis. The key, says Privateers Kennedy, is being very, very careful.

We avoid all public companies in this space, he says, as thats not something that interests us at all. And many of the reasons these companies are public is they couldnt raise private money. Were mostly interested in businesses that serve growers and dispensaries, and then consumer products -- entities that serve the legal consumer market. Privateer, which holds no investments in cannabis growing or distribution operations and is in the process of closing a $7 million round of funding, is focused on mainstream brands, such as the marijuana review site Leafly.com, which it bought last year when the site's revenues were effectively zero. Leafly.com finished 2012 with about $400,000 in revenues and is forecast to reach $1 million by the end of this year.It was the perfect company for us, Kennedy says. It has that mainstream look and feel. So you could be a 30-year-old professional or a 40year-old soccer mom or a baby boomer and could embrace that brand. Troy Dayton, CEO of The ArcView Group, a venture-funding network for legal cannabis companies, is likewise focused on ancillary marijuana businesses such as point-of-sale systems, inventory-tracking services and even insurance. The key for him is finding a business that has mainstream counterparts that are not yet involved in the cannabis sector. I think staffing is an area where were not seeing much action but I see huge opportunity, Dayton says. For example, trimming has notoriously been an ad hoc sort of thing thats time consuming and difficult. But as the industry professionalizes, it would be great to be able to outsource that kind of work to a team thats already together and knows what its doing. But a lot of the regular staffing companies arent into the idiosyncrasies of this industry yet, and may be staying out of it for reputational reasons, so thats an opening. The public option For retail investors, however, the pickings are still slim. THCBiz.com only has 16 publicly traded companies on its list of cannabis related companies, all of which trade OTC or on the pink sheets and represent a range of ancillary industries like growroom hardware, lighting, pharmaceuticals and general business services. Only a handful report any sort of financial information or give potential investors insights into their business prospects.That is slowly changing, however. Terra Tech, for example, has been fully reporting since day one and is shooting for an American Exchange or Nasdaq listing in the next 24 months. And the company's CEO, who also owns Blum, a marijuana dispensary in Oakland, Calif., says he has been able to recently secure funding for his venture via more traditional means: investment bank Midtown Partners in New York.

Cannabis investing may still be the Wild West, but at least some law and order is starting to come to the industry. The bill, House Bill 492, would legalize the possession of up to an ounce by adults 21 and over and allow the cultivation of a limited number of plants by adults. It would also allow for licensed and regulated marijuana commerce. The measure has majority support in the state, but just barely. A Public Policy Polling survey earlier this month found 53% supported changing state law to regulate marijuana alike alcohol, with 37% opposed. The Granite State is only one of at least six stateAn Oregon lawmaker has introduced a bill that would make cigarettes a Schedule III controlled substance. That means it would be illegal to possess or distribute cigarettes without a doctor's prescription. Rep. Mitch Greenlick (osea.org) Other Oregon Schedule III drugs include ketamine, LSD, and anabolic steroids.Sponsored by Rep. Mitch Greenlick (D-Portland), the bill, House Bill 2077, would make violations a Class A misdemeanor with a maximum penalty of up to one year in prison, a $6,250 fine, or both. The same penalty would apply to both possession and distribution.The bill directs the state Board of Pharmacy to "adopt rules to classify nicotine as a Schedule III controlled substance." It would also require people involved in tobacco transactions keep records and to "forward the records to the State Police if directed to do so by the department." Failure to do so would also be a Class A misdemeanor. The bill had a first reading last week and has now been referred to the Judiciary Committee.s where legislators have filed or will file marijuana legalization bills this year. The others are Hawaii, Massachusetts, Rhode Island, Pennsylvania, Rhode Island, and Vermont.

Hemp as a Superfood, Industry Transformer These cannabinoids have actually been promoted by many first hand sources as not only a health optimizing substance, but a serious solution to cancer. One popular documentary titled Run from the Cure by Rick Simpson, which is available for free on Youtube, focuses on the use of hemp oil to conquer cancer. Rich in essential oils,

fiber, and a close to complete amino acid profile, hemp contains beneficial ingredients such as:

Linoleic acid (44% of the weight of hempseed is actually full of edible oils) Omega 3 fatty acids (shown time and time again to fight against anxiety, depression, and even inflammation) Omega-6 A complete amino profile that surpasses the profile of eggs, milk, soy, and many meats. This includes the 9 essential aminos that the human body cannot produce on its own.

It is for these reasons that hemp is utilized today in many high quality products like protein shakes, energy bars, and many more food products. Two tablespoons of shelled hemp seeds contain about 11 grams of protein and 2 grams of unsaturated omega-3 fatty acids. Its versatility allows it to be a prime ingredient even in clothing and fabric-based industries. It could transform the entire industry, replacing unsustainable materials with environmentally friendly hemp. Feds: We Will Come for Your Hemp That is if the federal government doesnt seize it across the nation. The DEA has its sights set on confiscating all hemp planted and grown in the United States through citing the Controlled Substances Act, which doesnt differentiate between marijuana and hemp. The agents, which will ignore state law and enforce federal law throughout any state, say that they will be going after farmers who plant non-THC hemp as if they were planting marijuana. After all, they say it doesnt matter what it actually is. It really doesnt matter whether it looks different or it looks the same, DEA agent Paul Roach told NPR. If its the cannabis plant, its in the Controlled Substances Act and, therefore, enforceable under federal drug law. In the event that Colorado manages to generate acres of hemp without the federal government raiding the super efficient substance that is classified as a dangerous drug, it will provide a serious industry change that may spread to other states and potentially even federal law. In the more likely scenario of federal agents jailing hemp farmers and raiding their drug operations, an intellectual and legal resistance will be in order to attempt to alter the ridiculous laws surrounding the cultivation of hemp.

"Holder has kept quiet about legalization initiatives in Washington, Oregon and Colorado, which one former Justice official has said showed how quickly the politics were moving on marijuana legalization. "An adviser at the White House at the time said that drug policy officials worried about tipping the electoral balance against Obama in Colorado, a swing state in 2012, and so declined to intervene in either Washington or the Mountain States pot legalization initiatives, both of which passed by stronger margins than Obama won.
"In December, a state Superior Court judge delivered a sharp rebuke to the federal government: It could not enlist landlords in its drug war. In January, in a second victory, a judge ruled that a landlord could not order a dispenary, Harborside, to stop selling pot. The city of Oakland, on the happy end of more than $1 million in tax revenue from Harborside last year, filed suit against the federal government, demanding that it cease its prosecution of Harborside. PUT BELOW IN RISK SECTION The Justice Department may respond to the legalization of recreational marijuana in Washington and Colorado in several ways. One option would be to go after low-level marijuana users as scapegoats and seek a court ruling that would declare federal law trumps state law. One of the more extreme options, which officials acknowledge is currently being weighed by the departments Civil Division, would be to preempt the laws by suing the states in the same way the feds sued Arizona over its harsh immigration law. Federal authorities could sue Washington and Colorado on the basis that any effort to regulate marijuana would violate the federal Controlled Substances Act.The question is whether you want to pick that fight, a former Justice official said.Washington Gov. Jay Inslee. Attorney General Bob Ferguson met with Holder on Tuesday, but the U.S. attorney general declined to say whether the Justice Department would fight Washingtons new marijuana law. Governor Inslee said the state will move forward implementing the law. States have traditionally taken the lead when it comes to prosecuting low-level drug cases. Just 1,414 defendants across the country faced a lead charge of misdemeanor drug possession on the federal level in 2009, compared with 28,798 individuals who faced federal drug trafficking charges. ____________________

November and December 2012 legislation in Washington and Colorado signaled noticeable cracks in what will become seismic changes in the attitude of this country toward cannabis and hemp.
AAA Quality Vendors, Inc., a Washington State limited liability corporation, was formed in January 2013 to acquire, manage and exploit opportunities in the cannabis and hemp industries. The Company was founded by Dennis Rogers, a long term commercial scale marijuana grower and non-profit owner; Doug Slain, the founder of Prohibition Premium Holdings, LLC, is also the principal of Private Placement Advisors LLC, the Agent of this Offering. .

At the same time that recreational consumption of smoked or vaporized marijuana is becoming legal on a state-by-state basis, there has been recent unusually strong demand for more socially acceptable "delivery systems" such as vaporizers, edibles and concentrates.

As tax revenue projections in Washington and Colorado make clear, it is going to be hard for other states to refuse to participate in what will be a growing fund of tax dollars Colorado and Washington have recognized the drug for what it has always been, for most users anyway, a recreational drug. Hawaii, Connecticut and ----------------------are scheduled join a predicted stampede for tax revenue. The business plan of AAA Quality Vendors, Inc. is dependent on the good offices of Dennis Rogers and Jesse Rogers, authentic insiders to an industry where transparency is almost unknown.

risks CNBC
"Medical marijuana is legal in the state of Colorado. As a result, businesses have been created to grow, package and sell medicinal marijuana. This has created jobs, paid rent, and perhaps most important in 2012 America, they've paid millions in taxes. But one thing most haven't done and can't do is use the bank."[Banks are] afraid of losing their FDIC protection," said Kayvan Khalatbari, owner of Denver Relief, one of the oldest medical marijuana dispensaries in Denver. "Therefore, we can't open a bank [account]."The problem: even though medical marijuana is legal in Colorado, it's illegal under federal law. But Khalatbari has adapted, taking personal checks, cash and something called cashless ATM's. Some dispensaries have also started to use the add-on app "Square", which can process transactions. (Related: Gallery of Medical Marijuana.) However, some businesses have resorted to becoming cash-only businesses, which is fraught with frustrations and danger. It's dangerous to have so much cash in one place, but it also makes it next to impossible to pay employees, pay the bills ... even pay taxes.
It is impossible for entrepreneurs or business people to run an effective 'real' business without the ability to have a bank," James said. "It means we have no checking account. We have no debit cards. Wells Fargo said in a statement to CNBC:"In view of the complex, inconsistent legal environment relating to medical marijuana dispensaries, Wells Fargo has opted not to bank these businesses. While medical marijuana dispensaries are legal in some states, they are still illegal under federal law. But, some in Washington are trying to change that. (Related Link: Making a Case for Marijuana Legalization.)"I have a bill at the national level where it needs to get done and we've also tried to get action through the Department of Treasury and Comptroller of Currency," said Colorado Congressman Jared Polis. "The bill would basically provide legal assurance that banks need." It just makes no sense that a legal state industry wouldnt have access to normal banking services," Polis said.

CNBC
"If marijuana becomes legal for the average consumer, todays small growers may have more to learn from Starbucks' lifestyle branding than from the mass production of Krafts Maxwell House. In other words, producers may have to focus on artisanal handling and distribution to attract experienced consumers, instead of mass production for a huge new market. The coffee analogy is dead-on, or maybe the Napa Valley wine model, says Dale Clare, executive chancellor of Oaksterdam University, an institution that trains entrepreneurs in legal marijuana distribution. Others say the micro-brewery model comes to mind.Holding a male marijuana plant by one of its leaves.I think its partly just a ritual thing, just like with lots of other substances, like coffee, says Harvard economics professor
Jeffrey Miron, who has researched the marijuana industry extensively. You dont want to just pop a pill, you like the whole idea of walking across the streetand ordering an espresso and going through the whole ritual.

While Oaksterdams Clare calls it the largest cash crop in California, numbers are hard to nail down. But in agricultural Mendocino Countyone of three counties in Californias Emerald Triangle of marijuana cultivationlocal estimates put the crop at $1.5 billion of the countys total economic output of $2.3 billion in 2005. (See CNBC's market analysisand watchMarijuana Inc.to find out more about the marijuana business there.) Legal commercial production in the U.S. is currently handled by a patchwork of small farmers. While there have been rumors for years of big agricultural firms buying up land ahead of legalization, it would still take time to develop a mass production product, and even more time to build a Maxwell House-like brand that would come to dominate that market. But Miron adds eventually the market will grow. I think most of the market would be [artisanal], but you would certainly see these other things, as we do with existing legal products, he says. Unlike coffee, a fragmented regulatory environment will also drive the distribution model. As with alcohol today, a pastiche of local, state and federal laws and regulation could mean any new distributor would have to adapt a mass-market product to microjurisdictions. Californias Plainview Systems LLC is using technology to bridge that gap, providing an online platform for the existing medical marijuana market to connect consumers with the producers. We connect growers to the patients and allow them to conduct business legally, says Plainview CEO John Lee, who bristles at the comparisons of

his firm to being the eBay of pot. [Concern for] patient anonymity is very high and transparency of the transaction is, as well, he says. The reason these [dot-com] comparisons dont make sense is all of the regulation, he says, adding that he sees himself as a mixture of a social network and a B2B solution. He currently has more than 30 marijuana collectives that use the online platform to meet and form. Lees working on signing up existing dispensaries looking to expand beyond their brick-and-mortar operations. Dispensaries pay around $700 a year and $5 a patient on his platform; patients pay nothing for the service.He argues it makes for a good economic model for mom and pop growers and distributors, given the significant startup costs of a typically run dispensary. But if legalization down the road makes these dispensaries the equivalent of the local high-end coffee shop, theyll need to differentiate themselves. Some try to differentiate on price, says Lee. But they do a lot of things to differentiate now, like offering holistic services or wellness advice. Some test for molds and chemical composition to assure quality, a hallmark of the artisanal food movement. But as dispensaries face their own challengeslocal government crackdowns, ongoing security needs and intervention by federal authoritiesLee says theyre still marking up their product by 100 percent or more to compensate for their own risks. That means less for growers. He says farmers have seen prices drop from $5,000 per pound to $1,600 per pound in recent years. Its called compassionate care," Lee says of the medical marijuana dispensary model currently in effect in California. But I dont see much compassion in the prices. Like with other agricultural products, smaller marijuana farmers may have to band together and form cooperatives to get better deals for distributors and provide effective marketing, says Shermain Hardesty, director of the small farm program at University of California at Davis. Cooperatives are often mainly used as a risk management, stretching out sales over a whole year rather than relying on a single client, she says, providing them with safety afforded to larger producers with a bigger balance sheet. Plainviews Lee says he already heard talk of growers banding together in Californias Humboldt county, also in the so-called Emerald Triangle. You could see a growers union, he says. Most large agribusiness producers and distributors wouldnt comment on any marijuana cultivation plans while its still largely illegal. Agri-chemical maker Monsanto isnt focused on it, says spokesman Darren Wallis, adding that even if that changed tomorrow, development of a mass-scale crop takes time.We focus on major

crops for food, feed and biofuelscorn, soybeans, cotton, canola, wheat, sugarcane and vegetables, he says. It takes eight to ten years of investment to bring a biotech product to market. I think there is room for large and small entrepreneurs, says Harvards Miron. There is certainly plenty of room for product differentiation in the same way that you see for, say, beer, because it can have different scents, it can have different THC content. There is plenty of room for the entrepreneur to try to market oneself as being in some way superior and capture a good market share, he says. In the end, says Oaksterdams Clare, smaller can survive. The fast food giants didnt put full- service restaurants out of business, she says

CNBC
"What a difference 20 years has made for the head of the pot lobbying group, the National Organization for the Reform of Marijuana Laws, Norml. In the old days congressmen would ask Allan St. Pierre about males developing breasts as a result of smoking marijuana a la the government propaganda movie "Reefer Madness." Now St. Pierre has legislators calling him to help write bills. I wrote five last year, says St. Pierre. "Aaron Houston, five-year chief lobbyist for the Marijuana Policy Project, the other top D.C. pot advocacy group, agrees. It's really changed since last year, when [President George W.] Bush left office, he says. "My job has changed primarily because of the urgent need to regulate marijuana for all purposes, not just medical reasons. Prohibition is a luxury we can no longer afford, lawmakers tell me now, St. Pierre says. And just as the Great Depression sped up the repeal of the Prohibition on alcohol by decades, the current recession appears to be really speeding things up with respect to marijuana. Steve Allen | And that is keeping Norml and MPP, both headquartered in Washington, busy. MPP is probably the most traditional lobbying organization of the three major pot lobbies. We have a PAC (as does Norml). We've played in federal elections, and I am plugged in to groups inside the Beltway of all political persuasions. Norml tends to be more of a consumer organization for marijuana users," says Houston. In late March, even the National Republican Congressional Committee accepted a $5,000 check from MPP.

"The GOP leadership realizes that state-level regulation of marijuana is popular among their most active constituency right now, the tea party movement, whose members would like to see states decide the issue, like we do with alcohol, Houston told reporters. There is a huge amount of bipartisan agreement on this issue. The Opposition
"Many people who end up going through treatment are put there because, say, you were driving and got stopped for a traffic light and you happened to have a joint, and youre told well, you are going to get arrested for this marijuana unless you go to this three-week outpatient anti-marijuana treatment," says Professor Jeffrey Miron of Harvard University, one of the nation's foremost experts on drug policy and economics. "The vast majority of such people have no need for any anti-marijuana treatment; its just a handout to the treatment sector." NORML was founded in 1970 by Keith Stroup, funded by $5,000 from the Hugh Hefners Playboy Foundation. The organization and its foundation have an annual budget of about $990,000, six full-time employees and a large grassroots network of 135 chapters. Norml formed a PAC in 2001, and has contributed $37,100 to date.T The Marijuana Policy Project was founded by two ex-Norml employees, Rob Kampia and Chuck Thomas. It has 29,000 members, 36 staffers and an annual budget of about $6 million. The MPP board is headed by Peter Lewis, chairman of the Progressive Insurance Company, founded by his father. The third group, New York City-based Drug Policy Alliance was formed in 2000 by the merger of The Lindesmith Center, a think-tank, and the Drug Policy Foundation, a grant making organization. DPA is headed by Ethan Nadelmann, a professor of politics at Princeton University.

Marketing for Cannaking LLC is done primarily through the Internet and with exhibits at trade shows held throughout the state of California. Networking at these events has given the organization the ability to make invaluable personal connections in an non-transparent environment.
The financials for Cannaking LLCare solid. Having the ability to harvest 99 plants, 4 times a year, results in DENNIS, SEE ME RE THIS ISSUE Cannaking has developed a growing technique that achieves 5/8 to 3/4 a pound per plant average consistently, with best grows coming in at over 7/8 a pound per plant.

Price Cuts Looming

Recreational users of marijuana are seeing price cuts on the street thanks to the growing number of states that have approved the drug for medicinal use. The price of cannabis, of course, varies wildlydepending on the strain purchased, its potency and the parts of the plant. Top quality pot in New York, for example, costs nearly $442 per ounce, while low quality is just $161. Oregon comes in first with an

ounce running $259.13, according to PriceofWeed.com, a site that uses crowdsourcing methodology to track marijuana prices around the country. (Anonymous users who buy the drug on the street input what they paidand for how muchand the site averages out prices for the state or territory.) Montana comes in second at $273.87 per ounce. Georgia and Virginia are the states with the most expensive cannabis, both coming in at roughly $452 per ounce. Neither has legalized the drug in any form. Geographically, pot tends to be more expensive along the east coast. Users there generally pay $425 or more for high quality product. Mid-west tokers pay a bit less. And Western marijuana users from Colorado onward pay the least (typically less than $400 per ounce). PriceofWeed.com is one of four sources insiders look to as they track the street price of pot. Allen St. Pierre, executive director of Norml (the National Organization for the Reform of Marijuana Laws) cites it as one his organization regularly monitors. The others are the official DEA pricing index (which St. Pierre says is the least accurate), "High Times" magazine's monthly Trans-High Market Quotations, and Weedmaps.com, which has employees call medical dispensaries weekly for price, potency, strain name and more and then determining pricing trends from that information. But even with the cost declines of the past few years, prices remain steep, which surprises some people. Marijuana & Money: A CNBC Special Report The vexation for the customer has been that for years, the individuals who would pay [high costs for recreational pot] did so because suppliers had all these legal threats, says St. Pierre. As that has been removed, there has not been a commensurate reduction in prices.

How Big Is The Marijuana Market?

CBNC psss . . . about $40 billion "Put arguments for and against legalization aside for a moment. If people could use marijuanawithout fear of legal consequencejust how much would get used? "More to the point, how much money is at stake?A variety of businesses and taxdeprived governments would love to know the answer.

"Unfortunately, there isnt a simple one. By its taboo nature, marijuana consumption and demand is not well-measured. Economists, reformists, law enforcement authorities and the pro-marijuana lobby, however, have come up with a variety of estimates. Put them all together and you get a range of $10 billion to over $120 billion a year. Such a wide spread is hardly a solid answer.But some calculations may be better than others. All estimates begin with some key assumptions on the basic economic theory of supply and demand, thus laying the foundation for the size of the pot market. "Demand-Based Models: How Much Do People Consume? Demand-based models use consumption volumes and price to estimate the size of a total market. Here, the tricky part is coming up with exact figures on how much pot is consumed and how much it costs. Opinions differ.The US Department of Health & Human Services' Substance Abuse & Mental Health Administration conducts a National Survey on Drug Use and Health. This survey, among others like it, states that roughly 10 percent of the population above the age of 12 has used marijuana in the past year, while 6 percent has used it in any given month. Of all monthly users, 15 percent use marijuana on a daily basis. By comparison, 52 percent of Americans above the age of 12 have had an alcoholic beverage and 28 percent have used tobacco in any given month.While tobacco use has drifted downward from over 30 percent of the population per month, the marijuana percentages have been roughly consistent for at least the past ten years, according to H&HS data, and have varied by less than 1 percent over a two-decade period. Alcohol consumption has also been relatively constant, hovering around 51 percent.On price and volume, various reports and studies conclude a typical marijuana cigarette, or joint, contains between 0.5 - 1.0 grams of the drug. The price of a gram can vary from $5-$20, or even more depending on potency and origin. Among others, "High Times" magazine conducts a monthly survey of its readers to aggregate prices from around the country. See its current survey results here. Based on this data, most demand-based studies put the market at $10-$40 billion. If a sensitivity analysis is applied to consumption and price variables (that is, testing different combinations of price and use), the market can reach as high as $100 billion (see chart). It all depends on what you believe, given the number of variables involved. Are more consumers smoking more frequently and at higher prices or less frequently at lower prices? The answer is probably somewhere in the middle.

Proponents of this approach include Harvard economist Jeffrey Miron, perhaps the foremost independent authority on the economics of drug use, and the lobby group National Organization for the Reform of Marijuana Laws, NORML. (See the analysis of NORML's California branch.) Miron conservatively sizes the market at about $14 billion and in his February 2010 paper on "The Budgetary Implications of Drug Prohibition" states that legalization of marijuana could yield over $20 billion in tax revenues and enforcement cost savings.Critics of these estimates argue that these surveys, because they are administered by the government, underreport the number of users. The frequency of usage and price estimates vary as well. Supply-Side Models: How Much Pot is Farmed? The alternative approach is to look at the supply side of the equation. Proponents of this methodology look at seizures by the US Drug Enforcement Administrationand US Customs and Border Protection as a measure of how much cannabis is in the system and then extrapolate out based on assumptions for what percent of the market the captured material represents. Unlike the steady levels of consumption, the levels of supply, seizures and eradications keep growing. According to the DEAs National Drug Intelligence Center, over 7 million plants were eradicated in 2007, up 120 percent from 2004. The DEA seized 660,969 kg (1.5 million pounds) of marijuana in 2008, up 149 percent from 2005.In his 2006 study, "Marijuana Production in the United States", Dr. John Gettman, a marijuana reform activist and professor at George Mason University, used data from the DEA and other sources in estimating that the average, annual domestic marijuana crop totaled some 65 million plants at a weight of 22 million pounds (10,000 metric tons). In addition, he calculated that another 50 percent was harvested in neighboring Mexico and Canada.Based on average yields for these plants of ~7 oz per outdoor plant and ~3.5 oz per indoor plant, assumptions on the total crop size, and using the aforementioned price ranges per ounce or per joint as well as consumption rates, the market value swells to up to $120 billion. "Harvard's Miron tells CNBC, "some people have produced estimates of the size of the marijuana market that are literally 20 times my estimates... there are aspects of the methodology that have been used to produce these numbers that are substantially higher than mine that I find problematic. So, I think that the smaller number is much more likely, it could well be that Im wrong, and that it's $15-17 billion, but the $200 billion is hard to believe."

Comparisons: Alcohol or Tobacco A third way to look at the market is by comparing it to other vices that are already legal.According to a November 2009 Standard & Poor's industry report,the tobacco and alcohol industries generated $263 billion combined in 2008. Alcohol represented $188 billion of the total, with $99 billion in beer, $61 billion in spirits and $27 billion in wine. Tobacco generated $75 billion, including $71 billion in cigarette sales. This gut-check approach asks, can marijuana be bigger than cigarettes or beer (if it were legal)? Another way to think about this is to ask yourself, if a typical smoker consumes 1 pack of cigarettes per day and spends $7-8 per pack, what would a marijuana user need to smoke for the market to be as big? (Not to suggest that drinkers or smokers would necessarily become marijuana users). 'If you believe prices are higher and/or users will partake more then assumed in the data then you will likely fall on the right side of the scale. If, however, you believe consumption will remain low and legalization will actually bring prices down, then the marijuana market will be smaller. After looking at all three approaches above, the answer likely falls somewhere in the middle, between $35 and $45 billion."

CNBC
Budgeting for cannabis "Golf

lessons. A trip to the beach. Happy Hour at the pub. Like thumbprints and snowflakes, no two entertainment budgets look alike. "We all make choices with how we spend our fun money, and, for the most part, we all have to adjust our financial picture when new recreational outlets come along. "With that in mind, then, it seems prudent (if not premature) to explore how cannabis consumers might work marijuana into their budgets.
"Cost

Analysis

Lets talk numbers first, because last we checked, dime bags cost anything but. Cannabis sold on the street is derived from any number of agricultural strains. Some are higher quality than others, and thus more expensive. marijuana. Nationally, a gram of quality marijuana costs roughly $15 to $20, while an ounce can cost anywhere from $200 to $500, according to government estimates. (See CNBC's analysis of prices and demand)

Little empirical data exists on how much recreational pot users spend each year to get high, since it varies by person. Allen St. Pierre, executive director of National Organization for The Reform of Marijuana Laws, Norml, an advocacy group for the legalization of marijuana, confirms most regular users consume pot at least several times per week. With one or two joints per gramit adds up. Most marijuana users, he notes, could expect to spend anywhere from $2,300 to $3,500 a year, depending on how often they imbibe and the quality of their product. Thats roughly in line with how much consumers spend each year on alcohol. According to a 2009 Gallup survey, those who drink alcohol consume an average of 4.8 alcoholic beverages per weekor nearly 250 per year. Depending on their drink of choice and whether they consume them at home or a bar (more pricey), that could set them back anywhere from a few hundred dollars to $3,000 per year, or more. Those who smoke one pack of cigarettes a week, meanwhile, at $7 a pop \(its higher in some states\) drop roughly $364 per year to support their habit. For the pack-a-day smoker, however, that's about $2,550 a year. A 2008 survey from the Substance Abuse and Mental Health Services Administration, Samsha, estimated 15.2 million Americans used marijuana at least once in the 30 days prior to the survey, while 129 million drank alcohol, including beer, liquor, wine and mixed drinks23 percent of them (58 million) reported participating in binge drinking Another 71 million Americans age 12 and older were current users of a tobacco product, of which nearly 60 million smoked cigarettes. How much it might cost you to light up on a regular basis if weed becomes legal, however, is something of a moving target. Lower prices ahead? Most predict taxes and regulation of the product would force prices lower by up to 50 percent since drug dealers would no longer charge a premium for risking jail time much like the price of alcohol after the prohibition was lifted in 1933. Lawmakers in Tennessee, who are mulling a bill to legalize medicinal marijuana, seem to agree. Those who drafted the proposal estimate the cost would be roughly $60 an ounce, 20 percent of which would come back to the state to administer the program. Thats probably 75 percent below current black market prices, says Paul Kuhn, a partner with an investment management firm in Tennessee and board member of NORML. Like wine, there is a pretty good correlation between quality and price. You can have someone paying $500 an ounce for cannabis or $200 an ounce.

Regardless of price, however, those who choose to partake of pot in a post-prohibition society would have to consider its impact on their bottom lineespecially if they plan to hit the pipe consistently. Like any expense, says Phil Cook, a certified financial planner in Torrance, Calif., it should be included in your budget to help manage costs.

CNBC "To a large degree, its a simple matter of realizing that history has indeed repeated itself. Prohibition, as enshrined in the 18th Amendment to the U.S. Constitution, didnt work in the early 20th century and it doesnt work any better in the early 21st century. Indeed it is now widely accepted that prohibition of alcohol helped to create and sustain numerous organized crime syndicates.Similarly prohibition of marijuana has helped to create and sustain foreign cartels and lawless gangs which murder innocent citizens both within and outside of our country. Rather than eliminating alcohol, prohibition merely increased its costs and allowed the product to escape taxation. The same is true for marijuana. It is estimated that regulating and taxing marijuana would yield combined savings and taxes of between $10-14 billion a year. Illegal marijuana is still Californias biggest cash crop responsible for approximately $14 billion a year in sales. This is ahead of the states second largest agricultural commonality, milk products, which brings in $7.3 billion a year. California tax collectors estimate that a tax on marijuana would create approximately $1.3 billion per year of much needed revenue. And its anybodys guess as to how many fewer prisons would need to be built, staffed and maintained. Although the debate to legalize marijuana is clearly two-sided, on balance, however, the ayes seem to have it. Drug policy especially as it relates to marijuana is a total failure. We havent stopped or even curbed its use, and the cost to society as a result of increased incarcerations is incalculable. This truism was recognized by no less than two former U.S. attorney generals, a former Chief Judge of the Third Circuit Court, and a former president of the American Bar Association when they founded the Voluntary Committee of Lawyers, VCL.

The VCL is an association of lawyers and judges whose members share a strong misgiving about the direction and consequences of the United States drug policy. Several years ago this committee issued a comprehensive analysis of why we might want to rethink our drug policy which allows for the use of morphine, a constituent of opium, yet prohibits the use of marijuana. This prohibition helps sustain known terrorists organizations such as the Taliban, Al-Qaeda, Hezbollah and Hamas to tap into the prohibited drug trade to finance their operations. Thus ironically our drug policies are financing terrorism against the United States and its allies.Many have observed that it is easier for the average high schooler to obtain marijuana than to buy a six-pack. The fact that marijuana is completely underground drug clearly has something to do with this foolish anomaly. Isnt it time to fix a policy that is clearly broken?"

HIGH TIME's iPhone app is designed to help patients locate better medicine

What does state legalization in Washington & Colorado mean for hemp? By Russ Belville
In the 2012 general election, Washington State and Colorado legalized the possession of an ounce of usable marijuana and mandated state-regulated cultivation, processing, and retail distribution of cannabis products. But what does this mean for industrial hemp?

As you know, industrial (or non-drug) hemp is just the low-THC cousin to psychoactive marijuana. Were the only industrialized country in the world that still bans hemp production. But because of that ban, we are the worlds greatest importer of hemp. This is a $400 million market annually in the US with precisely 0% of that going to the American economy through US farmers and processors. Colorados Amendment 64 directs the general assembly to regulate the cultivation, processing, and sale of industrial hemp. Coloradoans now have the constitutional right to grow their own six plants. Those, in fact, could be hemp plants. But as far as full-scale hemp farming is concerned, more legislation will be required to allow it. Washingtons Initiative 502 modifies the definition of marijuana under Washington state law so hemp is no longer covered in the state drug laws. As

of December 6, 2012, farmers could actually be legally planting fields of industrial hemp under state law. But as of yet, no Washington farmers have announced plans to cultivate industrial hemp, presumably until they know the answer to one important question: Will the Drug Enforcement Agency place a high priority on raiding non-drug, state-legal hemp farms? Some states already have laws on the books allowing cultivation of industrial hemp. Yet without the required federal cultivation permit from the DEA a permit they never grant not a single hemp crop has yet to be harvested. Will it make any more difference to the DEA that Washington and Colorado legalized hemp by popular vote while Oregon legalized hemp through the legislature? The United States imports $10.5 million worth of raw hemp products annually, mostly from China. This may be a small figure in the global economy, but how much more hemp would we use if we could produce it domestically? How eager is the federal government to explain why armed agents are raiding a rural farmer trying to earn a living growing a legal non-drug crop? Besides the economic arguments for beginning the hemp crops in Washington and Colorado are the ecological arguments. Its an organic crop that scrubs five times more carbon dioxide from the atmosphere than trees do, helping us fight climate change. State governments, city transit, school buses, and the like could be mandated to be diesel vehicles burning hemp fuel. Hemp seeds yield an incredibly nutritious food source in addition to the oil used for fuel and biodegradable plastics. Perhaps most exciting is the use of hemp fiber. It creates superior paper with far less environmental damage and requires less acreage. It is used in fiberglass components to make stronger and lighter materials for cars. As a cloth, hemp regulates body temperature better than cotton and new processing techniques make hemp cloth just as soft and pliable. Reducing our production of cotton could be a huge benefit to the environment; up to one-sixth of all the pesticides used on earth are for cotton crops that use only one-fortieth of global farmland. One exciting use of hemp fiber comes in the form of substitutes for concrete blocks. In the south of France, where hemp cultivation is legal and the materials are cheap, a vintner recently built a brand-new 9,000 square foot winery using hemp mixed with lime into blocks. The owner, featured in a November post in Wine Spectator, decided he wanted an environmentally friendly building that matched his philosophy for organic wine production.

In hemp/lime blocks, he found the perfect material. In addition to the hemp itself having scrubbed the air of carbon dioxide, the process of the lime carbonating the hemp will continue to pull in carbon dioxide from the air for 20 to 25 years. The blocks themselves will last a hundred years or more and are completely biodegradable. Of particular interest to the winemakers was the breathability factor. The hemp blocks are natural insulators with great acoustic dampening properties. Along with building the winery into the natural earth hillside, the hemp blocks help to keep the temperature in the winery between 54 and 64 degrees Fahrenheit year round even without an air conditioning system. Even as the wine ferments and produces heat, the special construction of the winery and its hemp blocks will keep the temperature inside steady even as outside temperatures range from 21 to 93 degrees. Two of the biggest problems facing this country are the economy and the environment. Continuing to deny our farmers and entrepreneurs the opportunity to restart the American hemp industry is a mistake we cant afford to make.Patients can use CANNEX to find medical marijuana dispensaries, view their menus, rate and review the

strains the dispensaries carry.

cnbc
December 2012

Obama Won't Go After States Where Pot Is Legal Text Size President Barack Obama says he won't go after Washington state and Colorado for legalizing marijuana. In a Barbara Walters interview airing Friday on ABC, Obama is asked whether he supports making pot legal. "I wouldn't go that far," he replied. But the president said he won't pursue the issue in the states where voters legalized the use of marijuana in the November elections. Marijuana remains illegal under federal law."It does not make sense from a prioritization point of view" to focus on drug use in states where it is now legal, he said. Marijuana officially became legal in Washington state last week; it becomes legal in Colorado next month.

NBCN "Bring on the Pot Entrepreneurs" "Voters in Colorado and Washington states legalized marijuana possession for adult recreational use, without any prescription or medical use. The new laws ultimately will permit cannabis to be legally sold and taxed at state-licensed retail stores in a system to be modeled after those in many states for alcohol sales. "From marijuana clubs to small related accessories, expect a new crop of small companies around cannabis. "As people start using, there's going to be a lot of start ups around it," small-business consultant Moltz said. "And not just growing it, but all the accessories that go around marijuana u "Labs like Full Spectrum in Denver and Steep Hill in Oakland CA are springing up to serve the hundreds of thousands of card-carrying medical marijuana patients in Colorado and California, who can buy cannabis legally to alleviate a variety of ailments. Voters in 18 states and the District of Columbia have agreed to allow the legal sale and use of medical marijuana, but these two western states are considered to be in the forefront of the burgeoning industry. Individual patients can drop off samples for testing at the dispensaries. Results are available in 24 hours by typing the test number into a section of the companys Web site (Prices currently range from $60-$75 per test, with steep discounts for volume.) Testing is also offered to certified growers who supply the medical cannabis to dispensaries, and to manufacturers of edibles the cannabis-laced caramels, ice creams, chocolate-covered cherries and candies sold at dispensaries.
Full Spectrum employs 11 people, four of whom are full-time scientists. A battery of equipment allows the lab to offer a menu of tests, ranging from potency to bio-contamination. Spectrum uses an advanced form of chemical analysis called high-performance liquid chromatography to gauge the precise amount of THC (tetrahydracannabinol) and five other active ingredients. While THC is the most psychoactive component of the plant, producing the euphoria that people refer to as getting high, medical marijuana experts generally are far more enthusiastic about another active ingredient, cannabidiol (CBD). CBD produces the largest number of medical effects. It is non-intoxicating and has been shown to be antiinflammatory, anti-anxiety, anti-nausea and lowers blood pressure. Over the years, growers have bred plants that are higher in THC, lower in CBD. According to the Steep Hill labs web site, Patients who want the anti-spasm or anti-inflammatory effects of cannabis delivered without an accompanying high might prefer a CBD-rich strain. CBD-rich cannabis is potentially effective, according to European and Israeli researchers, in easing the symptoms of rhumatoid arthritis, diabetes, nausea, and inflammatory bowel disorders, among other difficult-to-control conditions.

At Oaklands Harborside Health Center, which has its products tested at Steep Hill, labels include percentages of active ingredients and are posted in display cases. If a dispensary has its products tested by Full Spectrum, or by Steep Hill, and wishes to make the results available to its customers, the labs create labels that list the percentages of various active ingredients. A customer can point a smart phone to a bar-coded label and get a fuller, one-page chemical analysis of the product. I work really hard to develop peoples trust in testing cannabis, says Winnicki. One growing area of testing at Full Spectrum is infused products, whose manufacturers are specially licensed in Colorado. The makers of candies, soft drinks, cookies - even frozen pizzas cater to those patients who dont care to smoke their medicine. But the manufacture of such edibles, can result in uneven amounts of cannabis being ingested.

CNCN "As support for medical marijuana grows and states consider proposals to legalize the drug for recreational use, advocates on both sides of the debate over whether to end the war on pot are pooling their collective resources to help push their agenda. Its no stretch to imagine, then, that the two industries best positioned to develop pot-based productstobacco and pharmaceuticalsare also drafting playbooks to determine how they might capitalize on what CNBC.com estimates to be a $40-billion-a-year market. \ If there's a battle to bring recreational cannabis to market, most believe tobacco companies would have the upper hand. 'The tobacco companies are clearly in the best position to take their existing business model and employ cannabis and they have already privately thought to do so,' says Allen St. Pierre, executive director of Norml, an advocacy group for marijuana legislation reform. These companies are well aware that they are sitting on a business model that needs only the acquiescence of the federal government. Indeed, companies like Philip Morris and British American Tobacco already have the agricultural infrastructure in place, (fields of tobacco which could easily be converted to cannabis), a successful delivery method via cigarettes and well-established distributions channels. In fact, tobacco retailers are already the default mechanism for the distribution of medical marijuana in some states.A bill introduced this year in Rhode Island, for example, that would legalize the use and possession of marijuana by adults over age 21, stipulates that should the state fail to provide a licensed system for distribution within 18 months after the enactment of the bill, tobacco retailers would be allowed to sell the product. A similar bill in New Hampshire that would legalize the sale of marijuana to adults for personal use also indicates that should the state fail to issue a retailer license to a

qualified applicant within 90 days and the applicant holds a valid retail tobacco license they shall be deemed to be a retailer. Some states are saying theyd simply use the system already in place to sell marijuana, says Darryl Jayson, a spokesman for the Princeton, NJ-based Tobacco Merchants Association, noting California is different in that it sells through licensed dispensaries, or pot shops. If it became legal to sell marijuana and a manufacturer made these products, they would most likely enter the market through existing distributors and then through tobacco retailers. While tobacco companies have much to gain, analysts say pharmaceutical firms would lose billions in market share for prescription painkillers, specifically the marijuana-based products already on the shelves. At present, two synthetic cannabinoids are approved for prescription use by the Food and Drug AdministrationMarinol capsules, developed by and available generically as dronabinol, and Cesamet oral capsules, developed by Valeant Pharmaceuticals International, and generically sold as nabilone. But many more exist in the R&D pipeline, including Sativex, a whole plant medical cannabis extract from GW Pharmaceuticalsthat is already approved as an oral spray in Canada. Such companies would cease to invest in the development of any additional products containing THC, the primary active ingredient in marijuana, if weed became legal, says Joel W. Hay, professor of pharmaceutical economics and policy at the University of Southern California. Already, he notes, the approval of medical marijuana in 18 states (and counting) has robbed them of incentive. It makes no sense to go through the expense of Phase I through Phase III testing and seek FDA approval of a product that goes out and competes with much cheaper over-the-counter medical marijuana, says Hay. Theres absolutely no reason why any pharmaceutical company should bother developing a cannabinoid product. Yet Big Pharma hasnt tempered its pharmacological research of marijuana. In fact, its picking up steam. The National Institute of Health reports the number of cannabinoid drugs under development in the U.S. climbed to 27 in 2004, from 2 in 1995the most recent data available. One reason, perhaps, is that the pharmaceutical industry is sitting on drug delivery models that have greater appeal than cigarettes especially among younger generations for whom smoking is increasingly taboo. Many would prefer using pills, skin patches, oral sprays and nebulizers, in which dosages are controlled, to taking a hit. Thats especially true for non-recreational users seeking the healing properties of THC for various health ailments. Another reason, though, that Big Pharma continues to invest in marijuana is that it is hoping to discover combinations of the THC molecule that are better than the whole plant product available today on the black market, says Dr. Lester Grinspoon, professor of

psychiatry emeritus at Harvard Medical School and author of the book, Marijuana Reconsidered. If pharmaceutical firms could develop a product that reduced the [socalled] munchie effect through biochemistry or one that could be injected to patients intravenously, which is not possible today because marijuana is not water soluble, they would make a fortune, he says. They know that marijuana is so versatile in treating everything from Crohns disease to nausea to premenstrual syndrome that once it can be produced in an economy of scale and free of prohibition tariffs it would sweep all these artificially expensive pharmaceutical products on the market aside," adds Grinspoon. Licensed pharmacies would no doubt distribute FDA-approved cannabis drugs under a doctors prescription, as they do today, but its also reasonable to assume that some firms might distribute their product via alternative medicine shops that specialize in natural and herbal medicine. Several major pharmaceutical companies already did so in the early 20th century. Before marijuana was made illlegal 70 years ago, for example, Eli Lilly sold cannabis as an herbal extract (not a prescription medicine) for use as a painkiller. Should lawmakers ever decide to legalize pot, tobacco and pharmaceutical companies would no doubt put research into overdrive to deliver a slew of THCderived products to consumers, using the full strength of their financial muscle to dominate market share. Which would ultimately prevail, of course, depends on consumers."
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Ethan Nadelmann, executive director of the Drug Policy Alliance, explains that recent marijuana legalization in Colorado and Washington is not simple and thatthe Federal response (or lack thereof) will determine how the policy is actualized. Transcript "With the victories for the marijuana legalization initiatives in Colorado and Washington on Election Day 2012, it really presents the White House and the Attorney General with a dilemma. Because on the one hand they and their law enforcement officials federal law enforcement officials, you know, can point out and have repeatedly said its all illegal under federal law. Regardless of what the states do, its still illegal under federal law to possess, buy, use, sell, grow all illegal. Thats it. But as we saw with medical marijuana, which began to be legalized back in the mid 90s and is now legal in 18 states and Washington DC, its not so simple. And what we see is that the federal government has allowed various states to set up their own systems to regulate medical marijuana. Some places are interfering; some places theyre letting it be. You know, what Obama said when he ran for president the first time and what he and the Justice Department made good on in the first year back in 2009 was to say that if medical marijuana producers, dispensaries are operating legally and transparently under state law, it will not be a federal law enforcement priority. ____________________________ 20 months ago Sam Dyer was diagnosed with a malignant inoperable Brain Tumor, Watch Sam speak on the use of Cannabis Oil on MAINSTREAM TV as unconventional treatment for Cancer and Tumor Growth. His father Martin Dyer on the the other hand is a leading Cancer Specialist in conventional treatment, although he admires his son for his single minded purpose he does not agree with Sams unconventional treatment. Johnny Green's clip

2013 bills suggest the U.S. is ready to end hemp prohibition

2013 has already seen a flood of cannabis-friendly legislation.. At least seventeen states have introduced pro-marijuana bills or have stated their intent to do so. Full legalization, medical marijuana, decriminalization of industrial hempall have all been introduced. Hawaii Speaker of the House Joseph Souki introduced HB 150 on January 17. The Bill allows for individual cultivation and licensing of dispensaries, commercial grows, cannabis manufacturing facilities and testing companies. . . . will generate significant revenue for Hawaii. A poll, released earlier this January, showed support for a tax and regulate legalization system at 57%. The poll also revealed incredible support for the current medical marijuana law, passed in 2000 (81% support); for dispensaries (78% support); and for decriminalization (58%). An economic impact study conducted by an economist at the University of Hawaii identified more than $20 million in potential new revenues and cost savings annually; the report noted that since 2004, marijuana possession arrests are up almost 50% and distribution arrests have nearly doubled. Texas legislators introduced two bills offering protections for marijuana users. Rep. Harold Dutton (D-Houston) introduced a bill to decriminalize possession of one ounce or less from a current $2,000/180 days misdemeanor to a $500/0 jail time misdemeanor. Rep. Elliot Naishtat (D-Austin) introduces an Affirmative Defense for medical users of marijuana, allowing a physicians recommendation to use cannabis to become the basis for a dismissal of charges in court. Some protections for those physicians are also included in the bill. A pair of bills has been filed in Oklahoma to legalize medical marijuana and decriminalize possession for all adults. Senate Bill 914 would change the penalty for possession of 1.5 ounces or less of marijuana from a current $1000/1 year in jail misdemeanor to a $200/10 days in jail misdemeanor. Senate Bill 902 would create a medical marijuana program that embraces licensing, production, distribution and consumption of cannabis for medical purposes, as directed by a physician. In Iowa, a bill was introduced to create a medical marijuana program that would allow possession, use and home cultivation of up to six marijuana plants for medical marijuana patients. Current law penalizes possession of cannabis with a $1000/6 months in jail misdemeanor. Currently, home cultivation of even a single plant could bring a 5 year jail sentence. In 2010, the Iowa Board of Pharmacy unanimously recognized marijuanas medicinal properties, and a poll from that year revealed 64% support for a medical marijuana bill.

Indiana may be willing to decriminalize cannabis with a bill introduced by Sen. Karen Tallian (D-Portage), replacing criminal sanctions with a civil citation and a small fine. Indianas proposed bill would also license the production of industrial hemp to bolster the states agriculture industry. In December 2012, a survey found 53% of Hoosiers were in favor of decriminalizing marijuana possession. Medical marijuana and dispensaries are being considered in Kansas, allowing authorized patients to possess up to 6 ounces of cannabis and cultivate 12 plants in their own homes. Dispensaries would be licensed by the Department of Public Health and limited in number by region.

Kentuckys Senate Bill 11 includes state-regulated dispensaries and authorizes medical cannabis use for conditions like HIV, cancer and multiple sclerosis. It would allow patients to grow 12 mature and 12 immature plants in their home and possess up to six ounces at a time. The Bill was introduced January 8.
Illinois nearly became the first state to adopt medical marijuana laws in 2013. A bill to enact a new cannabis use program failed to be voted on before the 2012 session expired. Advocates are optimistic about passing the bill in the current session. Illinois Democrats do tend to support medical marijuana more than their Republican counterparts, and in 2013, Democrats will hold supermajority status in both the state House and Senate.

In addition to 2013 legislation, a poll from the state of New Hampshire showed 68% support for a medical marijuana law and several pro-marijuana bills are predicted. The poll found 70% of voters find marijuana to be safer than Oxycontin, 62% support decriminalization of marijuana possession, with no jail time, and 53% support a tax and regulate scheme similar to alcohol. New York seems poised to adopt a medical marijuana program similar to the ones in their neighbors Massachusetts, New Jersey, Connecticut and Rhode Island. A medical bill was introduced that would allow for the possession of up to 8 ounces of marijuana and authorizes home cultivation and dispensaries. Gov. Cuomo previously stated he believes the research is not sufficient to advance cannabis to a medical substance, although he tried to reduce penalties for possession of marijuana during 2012. Alabama is considering a bill, House Bill 2, which would create the Alabama Medical Marijuana Patients Rights Act. Other states claiming interest in adopting more lenient cannabis laws include Minnesota, Florida, Maryland, Pennsylvania, West Virginia and Wisconsin.

The industry operates in a quasi-legal fashion. This alone has deterred experienced professionals from entering the field.
"I remember one of the clients I had on internship. Hed been drinking a fifth of bourbon a day for years. As youd guess, his liver was a mess, and his thinking was clearly impaired. I couldnt help but wonder how much better his health would have been (and how much money he could have saved) if hed used cannabis instead. Of course, if Id suggested that he switch to a safer drug, my supervisor would have berated me so loudly that everyone in the clinic would have had to cover his ears.

There was little evidence to support this practice, no matter how much I thought it might help.Although the idea remains controversial, substituting cannabis for drugs that cause more harm has a ton of advantages. It can certainly be cheaper, easier on the body, and less impairing. Harvard professor Lester Grinspoon mentioned this idea decades ago. I must get two e-mails a week from people who swear by the practice, but individual cases hardly count as compelling evidence. Fortunately, real people with real problems do everything that they can to tackle their troubles, no matter what the published research might say.Years after I left internship, Dr. Amanda Reiman showed that many patrons of the Berkeley Patients Group used the plant to decrease or stop their consumption of other substances. The obvious next step would be a randomized clinical trial. Folks with drug problems would be randomly assigned to receive treatment as usual or to use cannabis exclusively instead. Wed follow up with them later and see how they were doing. Then wed know if the treatment was helpful. It would take some money to give them the treatment they needed, but no matter how the experiment turned out, wed know something very valuable.If Id called the National Institute of Health to pitch this idea, theyd probably have laughed their heads off. Theyd have said that everybody knows that you cant treat alcoholism with cannabis. Id have mentioned Dr. Reimans study. They would have said that it was just one sample, and they were all from the same place, so no dice.For this reason, we wanted to know if more medical cannabis patients made comparable claims. My esteemed colleagues contacted over 400 medical cannabis patients who were patrons of four different dispensaries in British Columbia. (I was just the data monkey on this project. Once New York state becomes more enlightened about medical cannabis, Ill be more help.) Over 75% of these folks said that they used cannabis in place of some other drug. Replacing prescription drugs was the most common practice (68%), but many used the plant instead of alcohol (41%) and illicit drugs (36%). (Participants could report more than one drug for substitution, so the totals dont equal 100%.)We now have literally hundreds of people reporting that they can use cannabis instead of drugs that cause more harm. People who use alcohol or other drugs problematically often balk at treatments that demand complete abstinence. Who might show up for treatment if patients knew that they could use cannabis as part of the program? Maybe theyd run into trouble with the plant. But maybe theyd have healthy, productive, fun lives. Theyd certainly have fewer problems if they laid off stimulants, alcohol, or opiates. So, how about it? What will it take to get a harm reduction program going where folks can use cannabis instead of hard drugs? I hate to think that the world might never know." Source: Marijuana Policy Project

Cannabis Is A Potential Exit Drug To Problematic Substance Use

by Paul Armentano, NORML Deputy Director

Three quarters of medical cannabis consumers report using it as a substitute for prescription drugs, alcohol, or some other illicit substance, according to survey data published in the journalAddiction Research and Theory.An international team of investigators from Canada and the United States assessed the subjective impact of marijuana on the use of licit and illicit substances via self-report in a cohort of 404 medical cannabis patients recruited from four dispensaries in British Columbia, Canada.Researchers reported that subjects frequently substituted cannabis for other substances, including conventional pharmaceuticals. Authors reported: Over 41 percent state that they use cannabis as a substitute for alcohol (n=158), 36.1 percent use cannabis as a substitute for illicit substances (n=137), and 67.8 percent use cannabis as a substitute for prescription drugs (n=259). The three main reasons cited for cannabis-related substitution are less withdrawal (67.7 percent), fewer side-effects (60.4 percent), and better symptom management suggesting that many patients may have already identified cannabis as an effective and potentially safer adjunct or alternative to their prescription drug regimen. Overall, 75.5 percent (n=305) of respondents said that they substitute cannabis for at least one other substance. Men were more likely than women to report substituting cannabis for alcohol or illicit drugs.Authors concluded: While some studies have found that a small percentage of the general population that uses cannabis may develop a dependence on this substance, a growing body of research on cannabis-related substitution suggests that for many patients cannabis is not only an effective medicine, but also a potential exit drug to problematic substance use. Given the credible biological, social and psychological mechanisms behind these results, and the associated potential to decrease personal suffering and the personal and social costs associated with addiction, further research appears to be justified on both economic and ethical grounds. Clinical trials with those who have had poor outcomes with conventional psychological or pharmacological addiction therapies could be a good starting point to further our under- standing of cannabis-based substitution

effect.Previous studies have similarly demonstrated cannabis potential efficacy as an exit drug. A 2010 studypublished in the Harm Reduction Journal reported that cannabis-using adults enrolled in substance abuse treatment programs fared equally or better than nonusers in various outcome categories, including treatment completion. A 2009 study reported that 40 percent of subjects attending a California medical cannabis dispensary reported using marijuana as a substitute for alcohol, and 26 percent used it to replace their former use of more potent illegal drugs. A separate 2009 study published in theAmerican Journal on Addictions reported that moderate cannabis use and improved retention in naltrexone treatment among opiate-dependent subjects in a New York state inpatient detoxification program.Full text of the study, Cannabis as a substitute for alcohol and other drugs: A dispensary-based survey of substitution effect in Canadian medical cannabis patients, appears online in Addiction Research and Theory. NORML Advisory Board Member Mitch Earleywine is a co-author of this study.

Cannabis as a substitute for alcohol and other drugs: A dispensary-based survey of substitution effect in Canadian medical cannabis patients
Philippe Lucas, Amanda Reiman, Mitch Earleywine, Stephanie K. McGowan, Megan Oleson, Michael P. Coward, Brian Thomas

Centre for Addictions Research of BC, PO Box 1700 STN CSC, Victoria, BC V8W 2Y2, Canada School of Social Welfare University of California, 120 Haviland Hall, Berkeley 94720, CA, USA Department of Psychology, University at Albany, State University of New York, 1400 Washington Ave, Albany 12222, NY, USA Vancouver Island Compassion Society, 853 Cormorant St., Victoria, BC V8W 1R2, Canada British Columbia Compassion Club Society, 2995 Commercial Drive, Vancouver, BC V5N 4C8, Canada
The Vancouver Dispensary Society, 880 East Hastings, Vancouver, BC V6A 1R6, CanadaGreen Cross Society of BC, 2127 Kingsway, Vancouver, BC V5N 2T4, Canada

All contact for The Vancouver Dispensary Society should be directed to Dori Dempster, Executive Director.

Correspondence: Philippe Lucas Centre for Addictions Research of BC, PO Box 1700 STN CSC, Victoria, BC V8W 2Y2, Canada, 250-370-0981 plucasyyj@gmail.com

Background: This article examines the subjective impact of medical cannabis on the use of both licit and illicit substances via self-report from 404 medical cannabis patients recruited from four dispensaries in British Columbia, Canada. The aim of this study is to examine a phenomenon called substitution effect, in which the use of one product or substance is influenced by the use or availability of another.Methods: Researchers teamed with staff representatives from four medical cannabis dispensaries located in British Columbia, Canada to gather demographic data of patient-participants as well as information on past and present cannabis, alcohol and substance use. A 44-question survey was used to anonymously gather data on the self-reported impact of medical cannabis on the use of other substances.Results: Over 41% state that they use cannabis as a substitute for alcohol (n=158), 36.1% use cannabis as a substitute for illicit substances (n=137), and 67.8% use cannabis as a substitute for prescription drugs (n=259). The three main reasons cited for cannabisrelated substitution are less withdrawal (67.7%), fewer side-effects (60.4%), and better symptom management suggesting that many patients may have already identified cannabis as an effective and potentially safer adjunct or alternative to their prescription drug regimen.Discussion: With 75.5% (n=305) of respondents citing that they substitute cannabis for at least one other substance, and in consideration of the growing number of studies with similar findings and the credible biological mechanisms behind these results, randomized clinical trials on cannabis substitution for problematic substance use appear justified. Keywords Cannabis, marijuana, dispensary, substitution effect

Hawaii House Speaker Joseph Souki (D-8) has introduced a bill to legalize the possession of marijuana by adults and create a system of taxed and regulated legal marijuana commerce. The measure, House Bill 150, would allow people 21 and over to possess up to an ounce and grow an as yet unspecified number of plants in a secure location. The bill passed its first reading last Friday, but has yet to be sent to a committee. The 2013 legislative session began Tuesday. "Regulating and taxing marijuana similarly to alcohol takes marijuana sales out of the hands of criminals and puts them behind the counter in legitimate businesses that will

generate significant new revenue for Hawaii," said Mason Tvert, director of communications at the Marijuana Policy Project, which is working on passage of the bill. "Law enforcement resources should be focused on preventing and responding to serious crimes rather than enforcing antiquated marijuana prohibition laws." In addition to allowing adult possession and cultivation, the bill would also authorize the state to license marijuana retail stores, cultivation facilities, product manufacturing facilities, and testing facilities. Public pot smoking, driving under the influence, and use by individuals under the age of 21 would remain illegal. The bill introduction comes on the heels of the release earlier this month of a QMark Research Poll that showed support for legalization at 57%. That poll was sponsored by the Drug Policy Action Group, a sister group of the Drug Policy Forum of Hawaii, and the ACLU of Hawaii, suggesting that local as well as national reform groups are pushing the bill.
In the wake of the legalization victories in Colorado and Washington last November, at least a half dozen states are expected to entertain legalization bills, including Hawaii, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

Hemp and Marijuana Investors Want in the Game

"Marijuana investors are showing some interest These are heady times for supporters of legalized marijuana as well as everyone else looking to cash in on hemps growing national acceptance. Voters in Washington and Colorado agreed to legalize the recreational use of marijuana for adults. And medical marijuana is currently legal in 18 states and Washington D.C. Marijuana remains illegal by federal law. But people are still eager to look at business and investment opportunities in hemp. As with all markets, some people are willing to take the risk especially when the reward is great. According to Medical Marijuana Inc., the current U.S. medical marijuana industry is estimated at $17 billion, with expectations it could grow up to $29 billion by 2016. Now add to that the recreational users in two (and counting) states and you have some real numbers, and a lot of prospective tax revenue. "It was almost unthinkable 10 years ago that you would have legitimate, fully reporting to the SEC companies . . . with positions in the medical marijuana industry," says Sterling Scott, CEO of Los Angeles-based GrowLife Inc., a consortium of companies that sells products for indoor growing. Scott, a former federal regulatory attorney, estimates there are about 10 cannabis-related companies currently being traded as over-the-counter stocks. Scott claims these firms fall into three groups:

Established companies like GrowLife that sell products and services to the cannabis industry, and companies like Medical Marijuana, a self-styled "premier cannabis and hemp industry innovator. Firms like Hemp Inc., looking to develop a legal market for the industrial and commercial use of hemp in products such as paper, oils and cloth. Companies focused on the medical use of cannabis in areas such as cancer, inflammation and pain treatment and other clinical applications.

The new marijuana laws in Colorado and Washington are a sign of things to come, If you can get in early enough, a marijuana stock should go up in value," says Mac Clouse, professor of finance at the University of Denver's Daniels College of Business. [See www.privateplacementadvisors.com for more information.] The following companies were identified as of January 21, 2013. LA-based BG Medical Technologies, Inc. develops systems and media content for the cannabis and alternative health industries, with a proprietary network of software solutions and patients. The flagship product, BudGenius.com, is a web site designed to assist in pairing cannabis medicine with users specific needs. BudGenius is the Companys comprehensive online database for scientifically tested cannabis. Read our latest company news from BG Medical Technologies, Inc. Cannabis Science, Inc. (Public, OTC:CBIS) Cannabis Science, Inc. is engaged in the research and development of medical marijuana. On May 8, 2010, Cannabis Science acquired Rockbrook Inc., a company with a large indoor grow. The Company also acquired an organic medical marijuana facility and a medical marijuana dispensary. Cannabis Science focuses on creating cannabis-based medicines to treat disease and the symptoms of disease. Read our latest company news from Cannabis Science, Inc.

Fusion Pharm, Inc. (Public, PINK:FSPM) The Company claims to provide a variety of support products and ancillary services to the medical cannabis industry. We provide specialty equipment, financing, consulting and other industry-specific services to Medical Cannabis Centers, Read our latest company news from Fusion Pharm Inc. GreenGro Technologies, Inc. (Public, PINK:GRNH) GreenGro Technologies is an agricultural technology company dedicated to sustainable, compact growing systems for both the small home grower and commercial farmer. The Company is devoted to furthering the development of its patent pending vertical wall system.

Read our latest company news from GreenGro Technologies Inc. GW Pharmaceuticals, plc (Public, LON:GWP) This United Kingdom-based company is engaged in the research, development and commercialization of a range of cannabinoid prescription medicines. The Company is developing a portfolio of cannabinoid medicines of which the main product is Sativex, an oromucosal spray for the treatment of Multiple Sclerosis (MS) symptoms, cancer pain and neuropathic pain. During the fiscal year ended September 30, 2010, the Company launched Sativex in the United Kingdom. The Sativex is marketed in the United Kingdom as a treatment for MS Spasticity. Read our latest company news from GW Pharmaceuticals Read more: http://www.thcbiz.com/marijuana-stocks.html#ixzz2IfGUpvkb Inc. (Public, OTC:HEMP) Hemp,

Nevada-based Hemp, Inc. focuses on services, products, and information related to the medical marijuana industry. The company partnered with Hemp.com in 2012. Its products are designed to improve concentration and joint flexibility, increase awareness and energy, and improve overall wellness. Other products include hemp and blue-green algae protein skin care products. The company was formerly known as Marijuana, Inc. and changed its name to Hemp, Inc. in June 2012. Hemp, Inc. wants it known that, Hemp, Inc. is not involved in the cultivation or marketing of medical marijuana. It is the Company's belief that legalization of marijuana on a federal level will come to pass. With that in mind, the company is building infrastructure with the potential to gain substantial market share once marijuana prohibition ends. Read our latest company news from Hemp Inc. MediSwipe, Inc. (Public, OTC:MWIP) MediSwipe, Inc. formerly Cannabis Medical Solutions Inc., provides merchant payment solutions. The Company offers a range of secure transaction processing solutions using Internet point-of-sale (POS), e-commerce, social networks and mobile (wireless) terminals through its alliance partner network. The Commerce Online suite of e-commerce services include private label gateway, credit card acceptance, debit/ATM card acceptance, phone/mail order, Internet processing, gift and loyalty cards, check services, wireless/mobile, Electronic Benefits Transfer (EBT), Web development and consulting, ACH, and equipment and supplies.

Read our latest company news from MediSwipe Inc. Medical Marijuana, Inc. (Public, PINK:MJNA) Medical Marijuana, Inc. provides various business management solutions.. The Company offers integrated tax oversight and collection solutions for reporting to local, state, and federal governments. Products include revenue collection systems, turn-key management solutions, and marijuana testing and gradation. The companys Stored Value Platform System offers solutions to manage the task of revenue and taxation collection through issuing plastic debit card or medical revenue card. It also operates the Hemp Network, a network marketing platform that provides consumers with hemp products. Read our latest company news from Medical Marijuana Inc. Medbox Inc. (Public, PINK:MDBX) Prescription Vending Machines, Inc. was founded on the principle that all great industries thrive when automated. The Company features a patented machine that dispenses medication to individuals based on biometric identification (fingerprint sample). . PVM grossed $6 million dollars since it began doing business in 2010 through the final quarter of 2011. The Company is currently celebrated for a stock that recently skyrocketing overnight. Read our latest company news from Medbox Inc. Growlife Inc. (Public, OTC:PHOT) (formerly Photoron Holdings, Inc.) Growlife, Inc. is engaged in designs and manufactures indoor mini-greenhouses The Companys products consist of 21x 39 units and 21x51 units which provide 18,900 or 36,000 lumens of light. Read our latest company news from Growlife Inc. Rapid Fire Marketing Inc. (Public, PINK:RFMK) Rapid Fire Marketing is a NV-based holding Company. The Vapor Inhaler is the Companys key product with the Pocket Puffer and the Power Pocket Puffer on the way. The Vapor Inhaler uses Cannabis Vapor Inhaler technology which is superior to any other on the market.

Read our latest company news from Rapid Fire Marketing Inc. Search Core Inc. (Public, PINK:SRER) (formerly General Cannabis, Inc.) SearchCore, Inc. provides services in 5 areas: media, technology, medical clinic management, merchant credit card processing, and marketing. The Company assists physicians, dispensaries, and end-users to find each other. The Companys wholly owned subsidiaries include WeedMaps Media, Inc., General Health Solutions, Inc., General Marketing Solutions, Inc., General Merchant Solutions, Inc. and General Management Solutions, Inc. In November 2011, the Company announced that WeedMaps Media, Inc. acquired the domain name Marijuana.com. In December 2011, the Company announced that WeedMaps Media, Inc. has acquired the Android smartphone application WeedLaws. In January 2012, the Company acquired MMJMenu, LLC. Read our latest company news from SearchCore Inc. Tranzbyte Corp Inc. (Public, PINK:ERBB) The Tranzbyte Corporation continues its plan to acquire, hold, or spin out successful divisions in what has been described in its news releases as "dividend farming." Also, subsidiary companies that qualify and decide to become public on their own can expect Tranzbyte's support throughout the entire process. In early 2012, Tranzbyte acquired ProximaRF a leading-edge technology company that produces a line of products supporting innovative uses for RFID technology. Read our latest company news from Tranzbyte Corp Inc. Terra Tech Corp (Public, OTC:TRTC) Terra Tech Corp. integrates breed hydroponic equipment with technology to create solutions for the cultivation of indoor agriculture. It works with horticulturists and engineers to develop and manufacture products for the urban agricultural industry. Its products are utilized by horticulture enthusiasts, local urban farmers, as well as greenhouse g These are reportedly heady times for supporters of legalized marijuana as well as those looking to cash in on hemps growing national acceptance. Voters in Washington state and Colorado agreed to legalize the recreational use of marijuana for adults. And medical marijuana is currently legal in 18 states and Washington D.C. Of course, marijuana remains illegal by federal law. But people involved in

what some are calling the "green rush" are still looking at business and investment opportunities in cannabis and its production. And as with nearly all markets, some people are willing to take the risk. According to Medical Marijuana Inc., the current U.S. medical marijuana industry is estimated at $17 billion, with expectations it could grow up to $29 billion by 2016. "It was almost unthinkable 10 years ago that you would have legitimate, fully reporting to the SEC companies that were in the nature of pure plays, with positions in the medical marijuana industry," says Sterling Scott, CEO of Los Angeles-based GrowLife Inc., a consortium of companies that sells products for indoor growing. Scott, a former federal regulatory attorney, estimates there are about 10 cannabis-related companies currently being traded as over-thecounter stocks. Most OTCs are relatively small. Marijuana firms fall into three groups:

Established companies like GrowLife that sell products and services to the cannabis industry, including companies like Medical Marijuana, a "premier cannabis and hemp industry innovator. Firms like Hemp Inc., looking to develop a legal market for the industrial and commercial use of hemp in products such as paper, oils and cloth. Companies focused on the medical use of cannabis in areas such as cancer, inflammation and pain treatment and other clinical applications.

The new marijuana laws in Colorado and Washington are a sign of things to come, If you can get in early enough, then these marijuana stocks may go up in value," says Mac Clouse, professor of finance at the University of Denver's Daniels College. __________________________________

The prospect of legalized marijuana in small amounts for

for-profit sale and recreational use approved by voters in Washington State and Colorado -- creates questions for investors and advisors. A couple of months ago Medbox was best known as a little California company that sold secure drug dispensing systems to hospitals and prison pharmacies. With investors hungry for exposure to an all-new class of sin stocks, word got around that Medbox was a natural for dispensing compliant medicines in states like Massachusetts and recreational marijuana in states such as Washington and Colorado voters. Suddenly, Medbox shares turned into the hottest commodity on the market up 3,000% at $215 apiece as this start-up swelled to a market cap north of $23 billion, making it one of the 1,000 largest corporations in America. The true scope of the recreational market is unknown, but with Washington State alone looking to bring in $400 million a year taxing legitimate sales, it must be huge. Americans drink about $150 billion a year worth of alcohol, most of it beer. Big Tobacco rakes in $20 billion a year just from domestic users. Legal marijuana may ultimately have that kind of economic

potential. But thats going to take time. Right now, the options are limited. Everyone is still taking meetings and calling their Justice Department contact. On the agricultural end, hemp was tracking to become a $1 billion commodity before being banned entirely in 1937 in current dollars, maybe $16 billion. Hemp farmers need to be licensed to work with medicinal customers or as licensed suppliers to the dispensaries that will now open up in Washington and Colorado. The medicinal side is tightly controlled on a prescription-to-prescription basis and prices are capped to prevent gouging. If you want exposure to this side of the marijuana revival, you should head to the source, which means hydroponic growing facilities willing to accept private equity and open their books to your due diligence. Several dispensaries are publicly traded companies; see Altitude Organic and Medical Marijuana Inc. Altitude Organic. is on the ground in Denver and has the supplies and retail network in place, so it might be able to make the leap to mass-serving recreational pot or the next smokeable Starbucks. A portfolio company of AAA Quality Vending: Hemp & Health Specializing in health and wellness products derived from hemp extracts and compounds __________ AAA QUALITY VENDING oversees a portfolio of products, services, and technologies related to cannabis and hemp, focusing on on health and wellness products derived from hemp extracts. Hemp & Health, a Seattle-based cannaboid extraction firm, has products that range from proprietary based cannabinoids to premium extracts for the pharmaceutical market . Hemp & Health also sells patented cannabinoid delivery methods that are more socially and medically acceptable than smoking and it licenses proprietary testing, packaging, and tracking methods for marijuana distribution. Hemp & Healths proprietary technology will allow bio-technology companies to standardize production and extraction of cannabinoids. AAAs Quality Vending's pre-paid, stored-value loyalty cards will provide a cash alternative for marijuana dispensaries and members. AAA Quality Vending plans to publish a series of cook books featuring marijuana recipes.

The Company has announced that it wants to fund and develop existing cannabinoidbased health and wellness products.

Start Up Seed Capital Sought

Legal use of marijuana in small amounts following for-profit sales, to be used as a recreational drug (as approved by voters in Washington and Colorado and up for approval in H) creates opportunities and challenges for investors and advisors. Only a few months ago Medbox was a little California company selling secure drug dispensing systems to hospitals and prison pharmacies. Medboxs products are ideal as dispensaries of medical marijuana in states like Massachusetts and California and of recreational marijuana in states like Washington and Colorado. As a result, Medboxs stock was briefly up 3,000% and remains 10 to 20 times more highly valued than the founder says the company is worth. The true scope of the recreational market is unknown, but with Washington State alone looking to bring in $400 million a year taxing legitimate sales, it must be very large. Americans drink about $150 billion a year worth of alcohol and smoke about $20 billion a year of tobacco. Legal marijuana may ultimately have that kind of economic life. That is going to take time. Right now, the options are limited. Everyone is still taking meetings and looking elsewhere for guidance. On the agricultural end, hemp was tracking to become a $1 billion commodity before being banned entirely in 1937 in current dollars, $16 billion. The source for deals continues to be mostly hydroponic growing facilities willing to accept private equity and open their books to investor due diligence. Several dispensaries are publicly traded companies.

Hemp seeds are good for you!

Hemp seeds are a wonderful new addition to the health food aisles at your grocery store. Not to be confused with their cousin, the other hemp seeds used to grow marijuana for psychoactive use, legal hemp seeds have a nutty, smooth flavor and are used to make a variety of food productsfrom hemp flour and hemp protein powder to hemp oil and hemp milk. They are also used to grow industrial hemp, which is found in a wide range of products including clothing, textiles, papers, and biodegradable materials, and used as an alternative fuel source. Eating hemp seeds can benefit your health in a number of ways. They are rich in essential fatty acids fats that you need, but have to ingest because your body cant make themincluding

omega 3 fats. Omega 3 fats can promote the formation of anti-inflammatory hormonelike substances called prostaglandins, which can help people lose weight and assist in recovery from many types of disorders. Not readily found in the standard American diet, omega 3 fats are found in flax seeds, but high doses of flax seeds are required for sufficient intake. Fish contains omega 3 fats, but many types of fish are contaminated with heavy metals like mercury and arsenic. The amount of omega 3 fats found in hemp seeds is unusually higheven more than is found in flax seeds. Eating hemp seeds is an easy, enjoyable, and safe way to increase your omega 3 fat intake. Hemp seeds are also rich in another essential fatty acidthe omega 6 fat known as gamma linolenic acid (GLA). Numerous studies have shown that GLA has far-reaching health benefits: it helps to decrease inflammation and can help in the treatment of osteoporosis, premenstrual syndrome, menopausal hot flashes, arthritis, attention deficit disorder, and skin conditions like eczema. A study published in April 2008 in the Canadian Journal of Physiology & Pharmacology found that the high content of GLA in hemp seeds contributed to its ability to reduce heart disease. In addition to beneficial fats, hemp seeds contain all of the essential amino acids (proteins), are high in vitamins and minerals, and dont have the high levels of undesirable digestive enzyme inhibitors that soy does. And since hemp seed milk is often less sweet than rice milk, soy milk, or almond milk, it can be a better choice for stabilizing your blood sugar level.

Is Investing in Legalized Marijuana the New Alternative Asset Class

Not too long ago shares in small California-based cannabis sales company, Medbox, surged 3,000% to $215 a share, briefly giving the start-up a market value of $2.3 billion. The prospect of legalized marijuana in small amounts for for-profit sale and recreational use approved by voters in Washington State and Colorado on Election Day is putting local and state law enforcement agencies in a bind. Medbox was best known on Wall Street as a little California company that sold secure drug dispensing systems that prevent theft from hospitals and prison pharmacies. The marijuana factor was incidental and the stock traded on the pink sheets at well under

$3 a share. But with investors hungry for exposure to an all-new class of sin stocks, word got around that Medbox was a natural for setting up legally compliant medicinal in states like Massachusetts and maybe even the recreational marijuana dealers that Washington and Colorado voters have embraced. Suddenly, Medbox shares turned into the hottest commodity on the market up 3,000% at $215 apiece as this start-up swelled to a market cap north of $23 billion, making it one of the 1,000 largest corporations in America. Was there a little irrational euphoria at play here? Definitely. Medbox has yet to post sales above $1.3 million even in a record-breaking quarter so that kind of valuation was extreme at best. Currently, the only legal market for marijuana is in the 18 states and District of Columbia, which tightly regulate and restrict possession and sales to people suffering from chronic illnesses like cancer, HIV/AIDS, multiple sclerosis and epilepsy. The true scope of the recreational market is unknown, but with Washington State alone looking to bring in $400 million a year taxing legitimate sales, its evidently huge. Close to a century after the failed Prohibition experiment, Americans drink about $150 billion a year worth of alcohol, most of it beer. And Big Tobacco still rakes in $20 billion a year from domestic smokers. Legal marijuana may ultimately have that kind of economic potential, in which case the company that unlocks all that demand could easily become the Starbucks of the smokeable world of tomorrow. But thats going to take time; for investors the options are limited and relatively obscure. There arent any mutual funds or ETFs covering this theme because there just arent enough widely traded stocks to fill a reasonable institutional portfolio. Even the infamous Vice Fund, which invests counter to bleeding-heart socially responsible funds, has yet to add marijuana to its list of sin stocks. While private equity funds may be salivating, its only been a few months since recreational marijuana was legal anywhere in the country. On the agricultural end, hemp was tracking to become a $1 billion commodity before being banned entirely in 1937 in current dollars, maybe $16 billion, but thats barely a dent for a farm state like California, much less the nation. At a minimum, hemp farmers need to be licensed to work with medicinal customers or as suppliers to the recreational dispensaries that open up in Washington and Colorado. The medicinal side is tightly controlled on a prescription-to-prescription basis and prices are capped to prevent gouging. Because of this, nobody expects cannabis to become a true freely traded commodity with futures and derivatives contracts any time soon. Marijuana prices will not fluctuate with supply and demand and there wont be any commodity-linked marijuana ETFs. If your clients want exposure to this side of the marijuana revival, theyll need to go direct to the source, which means

once again that youll need to pound the pavement yourself to find hydroponic growing facilities willing to accept private equity and open their books to your due diligence. One outside-the-box play on this theme is Terra Tech, which sells the hydroponics and other indoor farming equipment to growers and would-be growers. Should demand for legally grown hemp surge, odds are good the suppliers will need to scale up fast. For another peripheral opportunity, Cannabis Science is working on prescription drugs that draw on the active ingredients in marijuana. It doesnt run dispensaries or grow the plants, but more lenient attitudes toward hemp may make it easier for the company to do its work and get its molecules in front of the FDA. Finally, several dispensaries are publicly traded companies like Altitude Organic and Medical Marijuana Inc. So far, their business remains closely tied to the medicinal trade. But Altitude Organic in particular is on the ground in Denver and has the supplies and retail network in place, so might be able to make the leap to recreational pot. Could they be the smokeable Starbucks your clients are looking for?