Marijuana tech company MJ Freeway nets $3M in financing

A day after winning Pennsylvania’s medical marijuana seed-to-sale tracking contract, MJ Freeway said Friday it has received $3 million in Series B extension financing.

The financing – which comes from existing investors Tao Capital Partners, based in San Francisco, and venture capitalist Roger McNamee – brings to $11 million the amount of money Denver-based MJ Freeway has raised in its Series B round, according to a news release.


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The money will fund market expansion, the company…

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3 cannabis biz events named among top growing trade shows

Three marijuana business events have been named among the 50 fastest-growing trade shows in the United States, reflecting the cannabis industry’s rapid expansion and future potential.

The Fall Marijuana Business Conference & Expo ranked second nationally for growth in attendance and net square feet of paid exhibit space from 2015 to 2016, according to Trade Show Executive’s newly released “Fastest 50” list.


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The event – hosted by Marijuana Business Daily each November in Las Vegas…

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MJ Freeway wins $10M PA medical cannabis tracking deal

(Note: This story has been updated from an earlier version.)

Embattled MJ Freeway received a key vote of confidence Thursday after Pennsylvania awarded the Denver company a $10 million contract to provide a seed-to-sale tracking system to keep tabs on the state’s new medical marijuana program.


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The five-year contract is a shot in the arm for MJ Freeway, given that Pennsylvania’s MMJ market is forecast to generate more than $100 million in annual sales a few years after it’s up and…

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Franwell wins Michigan cannabis tracking deal worth nearly $450K

Florida-based Franwell, which built Colorado’s cannabis tracking system, has been awarded a state contract from Michigan worth nearly $450,000 to implement a similar inventory tracking program for the state’s medical marijuana program.

The Michigan deal is in keeping with new regulations that will oversee a web of state-licensed MMJ businesses.

The contract, according to Crain’s Detroit Business, is worth $447,625.

Franwell beat out 10 competitors to win the contract, including BioTrackTHC, MJ Freeway, Kind…

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Washington state’s cannabis tracking contract up for bid

By Bart Schaneman

Washington state regulators have begun accepting bids for a new seed-to-sale tracking system to keep tabs on marijuana commerce, a deal with an initial value of about $3 million.

The competition likely will be fierce, given that the contract involves one of the nation’s largest cannabis markets.

But businesses won’t be squaring off against the provider of the state’s current seed-to-sale system, BioTrackTHC. The company said it has no plans to bid for the new contract,…

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California marijuana laws spark rift between industry, unions

The upcoming implementation of California’s state medical marijuana laws as well as the new recreational cannabis system have led to policy disagreements between those in the longstanding industry and organized labor, which is eager to get involved.

According to the San Francisco Chronicle, the rift threatens to disrupt what many were hoping would be a smooth rollout next year of California’s dual medical-recreational marijuana governance system. The concern is that unions are jockeying…

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BuzzFeed investor leads $3M funding for marijuana tech firm

A cannabis-focused e-commerce platform has netted $3 million in funding from a venture capital firm that has made early investments in several non-marijuana companies, including the popular news website Buzzfeed.


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LeafLink, a New York-based wholesale management platform for cannabis businesses, will use the money to expand its B2B platform into newly legal markets, including California, Nevada, and Oregon, the company said in a press release.

Leaflink launched in March 2016 and is live in…

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Cannabis grow-equipment company completes $1M-plus raise

Another Denver-based company connected to the marijuana trade revealed this week it has completed a $1.65 million round of fundraising.

GrowGeneration Corp., an ancillary business that specializes in gardening supplies for commercial and home grows, told the Denver Business Journal it secured the funds in equity financing from Merida Capital Partners, “a cannabis infrastructure fund.”


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GrowGeneration is the second Denver-based firm this week to announce a capital raise of over $1 million. Baker, a cannabis software business, raised $1.6…

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High Times Cannabis Cup can go ahead as planned

The High Times Cannabis Cup near Las Vegas is still on for this weekend, despite an earlier letter from Nevada U.S. Attorney Daniel Bogden to the Moapa Paiute Tribe warning the event would violate federal law.

The tribe is scheduled to host the large marijuana consumer-oriented event – which also attracts a large number of cannabis businesses trying to get in front of that crowd – Saturday and Sunday on Native American lands north of Las Vegas.

In a press release, High Times said Wednesday it had been told the event can go ahead as…

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New Market: Once Maryland fixes problems, ample MMJ opportunities await

This is the 12th article in a series looking at the potential cannabis market in states that are rolling out new marijuana programs. The first eight articles examined states that approved recreational or medical marijuana initiatives in the 2016 election. This new round of installments focuses on states that have approved new markets through legislation. Click here for previous articles.

By Bart Schaneman

Maryland’s medical marijuana program rollout has been rife with stumbles, delaying what could become one of the largest markets on the…

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New Market: Ohio medical cannabis program set to be big, but license rules could curb growth

This is the 11th article in a series looking at the potential cannabis market in states that are rolling out new marijuana programs. The first eight articles examined states that approved recreational or medical marijuana initiatives in the 2016 election. This new round of installments focuses on states that have approved new markets through legislation. Click here for previous articles.

By Bart Schaneman

Ohio’s medical cannabis program is expected to be large, generating up to $400 million in annual dispensary sales several years down the…

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MJ social media firm examines cross-listing on Canadian exchange

MassRoots CEO Isaac Dietrich revealed Monday during a shareholder conference call that the Denver-based social media company is exploring a public listing on a Canadian stock exchange.

MassRoots currently trades on the over-the-counter market. Monday’s announcement follows the Denver company’s failed attempt to be listed on the Nasdaq Stock Market last year.

“We’re evaluating exchanges right now,” Dietrich told shareholders. “The (Toronto Stock Exchange) did have to approve Aphria’s investment in MassRoots last fall, so…

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Ohio seeks seed-to-sale system for medical cannabis program

Ohio is seeking a company to develop and implement a seed-to-sale tracking system for the state’s new medical marijuana industry.

The software platform would track the medical cannabis supply chain, everything from cultivation and transportation to dispensary inventories and sales, according to the Cincinnati Business Courier.

Ohio’s MMJ program is expected to be large, generating between $200 million and $400 million in annual retail sales via dispensaries once the market matures, according to preliminary estimates by Marijuana…

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New Market: Hawaii’s MMJ industry to benefit from readily available patient pool

This is the ninth article in a series looking at the potential cannabis market in states that are rolling out new marijuana programs. The first eight articles examined states that approved recreational or medical marijuana initiatives in the 2016 election. This new round of installments focuses on states that have approved new markets through legislation. Click here for previous articles.

By Bart Schaneman

A well-established patient pool should allow Hawaii’s eight licensed medical marijuana companies to hit the ground running – once…

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Marijuana extraction firm faces $9 million suit for role in blast

An $8.9 million lawsuit filed by an Oregon construction worker who was badly burned in a butane hash oil processing explosion highlights the personal and financial risks faced by marijuana extraction companies – especially those that perform solvent-based extraction – and the need for industry safety standards.

Jacob Magley is suing Higher Level Concentrates, a cannabis processing company in Astoria, Oregon, as well as 10 other businesses and three individuals for violating workplace safety laws that led to the October blast that put…

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Cannabis oil maker files trademark suit against WA grow

Headspace, a multimillion-dollar marijuana oil company in Southern California that sells a product called The Clear, filed a trademark infringement suit against a Washington state MJ cultivator, Podworks, for using a the name Top Shelf Clear for one of its products.

The trademark suit is believed to be the first in Washington involving cannabis, according to KING5.com. It comes amid a growing number of trademark disputes in the marijuana industry.

Cannabis is illegal under federal law, which complicates efforts by MJ companies to secure a…

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Week in Review: Marijuana industry trademarks, cannabis banking & Oregon rec sales

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By Omar Sacirbey, John Schroyer and Bart Schaneman 

A prominent marijuana pipe maker sues to defend its trademark, another state seeks Trump’s guidance on MJ banking, and adult-use cannabis sales continue to drop in Oregon.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

Trademark rights

Roor might be the Gucci of marijuana paraphernalia.

Both the German glass pipe maker and the iconic Italian handbag label purvey high-end products, are counterfeited ruthlessly and have sought aggressively to…

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High-end cannabis pipe maker sues to defend trademark

Roor, one of the best-known names in cannabis smoking utensils, has filed almost 200 lawsuits since 2013 to protect its trademark against smoke shop and convenience store owners in California, Florida and New York for allegedly selling counterfeit products bearing the company’s name.

The German company and its American licensee, Sream of Corona, California, hold U.S. Trademark No. 3675839 to protect its fashionable pipes and bongs sold with the Roor mark – the company’s name with the second “r” capitalized and facing backward,…

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Marijuana data firm announces $2.5 million capital raise

One of the cannabis industry’s leading sales data firms announced Wednesday it has secured $2.5 million in private funding to expand its product line.


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Seattle-based Headset, which specializes in business intelligence for marijuana-related companies, revealed that it has partnered with Arizona-based Hypur Ventures, a venture capital fund, and Salveo Capital, an Illinois-based private equity fund, to bolster its services for clients in the cannabis trade.

Headset did not specify what exactly it intends to use the $2.5 million for, but…

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CA wine, cannabis industry officials to meet in joint symposium

California wine industry leaders plan to meet with counterparts in the marijuana business in a bid to examine their similarities and opportunities for collaboration as the state rolls out its new adult-use cannabis market.


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According to the North Bay Business Journal and a news release, the Wine Industry Network will host a one-day symposium on Aug. 3 in Santa Rosa featuring wine and cannabis industry experts who will discuss regulations, licensing requirements, hospitality, tourism, farming and other topics. 

The gathering comes amid…

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Top four U.S. banks have had cannabis accounts, study shows

Whether they know it or not, America’s four largest banks have held accounts for marijuana businesses, in contrast to public pronouncements that they steer clear of the cannabis industry.

An analysis by RB Monitor, a Chicago-based firm that pinpoints the risks financial institutions might face working with the cannabis industry, found that 29 of 84 applicants for marijuana business licenses in Massachusetts had an account with one of the nation’s big four banks: Bank of America, Citigroup, JP Morgan or Wells Fargo.

Marijuana remains…

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High Times leaving longtime NYC base for Los Angeles

High Times magazine announced plans to leave New York City – where it has been headquartered for 43 years – for Los Angeles by the end of April.

The reason for the move?

“The center of the cannabis universe has moved to California,” said Matt Stang, High Times’ chief revenue officer, according to Crain’s New York Business.


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High Times employs about 30 people at its Manhattan office, but it’s unclear how many of them will move to Los Angeles, where the magazine also plans to hire local staff.

The magazine has been buoyed by the…

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Vireo gets nod to operate NY’s first medical cannabis delivery service

Regulators have given Vireo Health of New York the go-ahead to deliver medical marijuana to its patients, making it the first cannabis business in the state to get such approval.

Verio’s delivery service comes in response to a new state regulation intended to boost New York’s struggling MMJ program by making the medicine more accessible to patients.

The company said in a press release it would be able to start deliveries within 90 days, though delivery pricing and other details will be announced later.


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Vireo, one of five companies…

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New Market: Massachusetts’ cannabis industry looks promising, but possible hurdles loom

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This is the fifth article in a series looking at the potential cannabis market in each of the eight states that approved recreational or medical marijuana initiatives in the 2016 election. Check back each week through mid-January for new entries. Click here for previous installments.

By Bart Schaneman

Massachusetts’ new recreational marijuana industry is expected to offer many opportunities for entrepreneurs – provided municipalities permit retail MJ stores and state lawmakers don’t slow or extensively revamp the program.

Last month, 54%…

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Portland, Oregon, approves marijuana delivery services

Hoping to attract smaller, new businesses to the local cannabis market, the City Council in Portland, Oregon, has approved an ordinance that creates a new class of license for delivery-only marijuana businesses.


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These new marijuana delivery services would be prohibited from selling marijuana from storefront locations. They also could accept and deliver orders only during certain hours and would be prohibited from delivering beyond city limits, KATU News reported.

Many small businesses and aspiring entrepreneurs have not been able to break…

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Which is best for cannabis – a Dutch or North American greenhouse?

GreenHouse

By Omar Sacirbey

High energy costs and declining cannabis prices have many cultivators thinking about moving their indoor grows into greenhouses.

But once that decision is made, those cultivators must determine whether to buy a North American-made greenhouse or import one from the Netherlands, which has dominated the industry since the 1800s.

Though many believe greenhouses can produce a high-quality cannabis crop, cultivators still must weigh abundant questions about which type is best.

Are you driven by design features? Or do you seek…

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Senators ask Treasury to help ease MJ industry’s banking issues

A group of 10 U.S. senators is urging the Treasury Department to take steps to prevent the shutdown of plant-touching and ancillary businesses’ bank accounts.

The senators – seven Democrats, one Republican and two independents – placed special emphasis on ancillary businesses that have lost bank accounts because they worked with marijuana businesses. The senators cited lawyers, chemists and security personnel as examples.

Their appeal comes as many marijuana industry officials fret over whether the incoming Trump administration will…

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Cannabis research gets almost $20 million in funding

Proponents of scientific research in the cannabis industry got encouraging news with recent announcements that two major universities received nearly $20 million in donations for marijuana-related studies.


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The University of Miami’s Project to Cure Paralysis and Miller School of Medicine received a $16 million grant from Scythian Bioscience in October to research whether a CBD-based pill can help reduce brain cell inflammation that occurs after injuries such as concussions, the Miami Herald reported.

Scythian BioSciences is a private…

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MassRoots, MJ Freeway team on menu pricing for dispensaries

MassRoots and MJ Freeway announced a partnership under which MJ Freeway’s technology will enable live online menu pricing for its dispensary clients via the MassRoots platform.

The deal is similar to a recent one struck between MJ Freeway, a Denver-based seed-to-sale tracking company, and the online retail guide Weedmaps.


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“This partnership will enable seamless communications between MJ Freeway’s thousands of dispensary clients and MassRoots’ community of hundreds of thousands of cannabis consumers,” MassRoots CEO Isaac…

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Scotts Miracle-Gro establishes 80% ownership of home-grow firm

In its latest marijuana-related deal, Scotts Miracle-Gro Co. said it has secured an 80% stake in AeroGrow International, which sells home-growing kits for indoor gardeners.

Scotts Miracle-Gro acquired some 21.6 million shares of Colorado-based AeroGrow for $47.8 million, and the deal has further extended the Ohio company’s reach into the marijuana trade.

Scotts has purchased a range of marijuana-related companies, from hydroponic and nutrient firms to lighting, hardware and fertilizer companies.


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Scotts first developed the partnership with…

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Helix TCS becomes largest single shareholder in MJ software firm

Colorado-based Helix TCS, which has been expanding its holdings in the marijuana trade, announced Monday it has become the largest shareholder in Florida-based BioTrackTHC, a longtime manufacturer and supplier of seed-to-sale cannabis tracking software.

Specific terms of the deal were not disclosed.

Helix and its capital partner, Rose Capital Advisors of Miami Beach, agreed to purchase the shares from BioTrackTHC founders Steven Siegel and Brian McClintock for a combination of cash and stock, making Helix and Rose the largest BioTrackTHC…

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Zacks Investment: 4 best stocks to cash in on MJ ‘green rush’

The decades-old Zacks Investment Research is recommending four “cannabist-related” companies – including some household names – for stock investors wanting to cash in on the so-called marijuana “green rush.”

The stock research firm, founded in 1977, projects that Tuesday’s election will yield yes votes in several states where marijuana legalization initiatives are on the ballot.


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“This is reminiscent of 1933, when drinking cold beer after work was made legal,” according to an “analyst blog” on the Zacks website….

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Privateer raises $40M, exceeds $100M in total funding

Privateer Holdings, a cannabis-focused private equity firm in Seattle, announced Friday it has closed on $40 million in convertible bridge financing, bringing its fundraising total to $122 million.

The news marks the first time a cannabis-related investment company has raised more than $100 million, Privateer said in a press release. The funding increase reflects growing investor interest in cannabis-related businesses.

Privateer said it will use the money to launch new ventures, make strategic acquisitions and expand its three existing…

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Report: Canada rec cannabis industry could top $26 billion

Canada’s widely anticipated recreational marijuana market could become a more than $22.6 billion industry once it’s legalized, according to a new report by Deloitte.

The accounting and consulting firm’s report, scheduled for release soon, concludes that adult-use marijuana will be a huge jump-start for the Canadian economy, the Toronto Star reported. Prime Minister Justin Trudeau is expected to introduce legislation to legalize rec marijuana next spring.


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The report estimates the base retail market could be worth $4.9 billion-$8.7…

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MassRoots receives $1.1 million in new funding

Cannabis-centric social media site MassRoots received $1.1 million in funding on Friday, mostly from new investors, and disclosed it slashed the salaries of its top executives to cut costs.

MassRoots’ founder and CEO, Isaac Dietrich, led the latest funding round, with former MyPoints.com CEO Steve Markowitz also among the contributors. The announcement came as the company closed on $3.2 million in equity financing under an offering that was launched in August.

Dietrich said in a news release he expects the funds to make the Denver company…

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MJ Freeway and Weedmaps Partner On New Service

Two big names in the cannabis industry, software company MJ Freeway and online retail guide Weedmaps, are partnering to offer a service for marijuana vendors to automatically update their online menus.

According to a press release, the two companies will offer retailers who use MJ Freeway’s seed-to-sale tracking platform an opportunity to use Weedmaps to update their online menus, reducing the need to manually update their menus. Price changes or when a product is out of stock will be updated automatically on Weedmaps via MJ…

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Denver MJ Social Use Initiative Makes Ballot

A campaign to allow businesses such as bars to permit public cannabis use on their property has officially made the November ballot in Colorado’s capital city.

The initiative, dubbed the Neighborhood-Supported Cannabis Consumption Pilot Program, has the support so far of at least 50 businesses in the city, the Denver Post reported.

If approved by voters, it would allow businesses to establish marijuana consumption areas on their premises, as long as the companies meet certain criteria, such as obtaining support from a “neighborhood…

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Lawyers Warned in Select States About Working With Medical Cannabis Firms

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By Omar Sacirbey

Professional ethics boards in a few states – most recently New Mexico and Ohio – have warned local attorneys that helping medical marijuana businesses can be a violation of professional rules of conduct.

The non-binding opinions could make it tougher for MMJ businesses in those states to get legal representation.

The recent opinions caution lawyers that assisting a cannabis business can be tantamount to helping a client break federal law, given marijuana’s status as a Schedule 1 controlled substance.

While differing…

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CO Online Wholesaler Partnering With Cannabis Software Firms

Colorado-based online wholesale platform Cannabase has entered into an exclusive partnerships with seed-to-sale tracking software companies MJ Freeway and BioTrackTHC.

The partnership, announced by the companies, will bring new weight to Cannabase’s pricing and inventory information, given that it will now be backed by MJ Freeway’s and BioTrackTHC’s data. In a news release, Cannabase said the arrangement would provide:

  • Streamlined buying and selling transactions to deliver real-time instantaneous execution and real settlement
  • Improved…

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Aussie Hemp Food Maker Expecting 400% Growth This Year

Hemp Foods Australia is doing so well the company is projecting 400% growth over the coming 12 months.

CEO Paul Benhaim chalked the firm’s success up to overseas demand for the hemp products’ health benefits, which are particularly big in Japan, he said, according to Australian broadcaster ABC. Benhaim recently met with the First Lady of Japan, Akie Abe, at the first-ever Kyoto Hemp Forum.

To meet demand for the company’s products, the company is upgrading a factory in New South Wales to manufacture hemp-based snack bars, drinks,…

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Week in Review: MMJ Stare Down, Miracle Wager in Cannabis & Colorado’s Industry Unites

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By John Schroyer and Omar Sacirbey

Two medical marijuana campaigns slug it out in Arkansas, Scotts Miracle-Gro wagers big on a different kind of grass, and Colorado cannabis business leaders unite to fight a potency cap.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

MAD in Arkansas?

Come November, Arkansas voters may confront two competing – and vastly different – ballot measures to legalize medical cannabis. Both could fail as a result, thanks to a Cold War doctrine: mutually assured…

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Scotts Miracle-Gro CEO Bets On the Marijuana Business

The CEO of Scotts Miracle-Gro – a provider of lawn and garden products dating to the 19th century – wants to invest half a billion dollars in the marijuana industry,

“It’s the biggest thing I’ve seen in lawn and garden,” CEO Jim Hagedorn told Forbes. His plan: “Invest, like, half a billion dollars.”

Scotts Miracle-Gro sells grass seed, fertilizers, pesticides and dirt.

Hagedorn already has started wagering on the cannabis industry. Last year, he invested $135 million in two California businesses that sell fertilizer, soil and…

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Dueling Denver MJ Ballot Measures Possible for November

Two competing initiatives may be on the November ballot in Denver, one to legalize private cannabis clubs and another to permit practically any business to set up a public marijuana “consumption area.”

The initiatives would have different impacts on the cannabis industry. The first would cede the business opportunities to potential club owners, while the second would be aimed at making cannabis use more widespread and socially acceptable.

The Denver NORML chapter supports the club initiative. The Marijuana Policy Project and the cannabis…

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Google Preparing to Work With the Cannabis Industry?

Google logo

By Omar Sacirbey

Is global technology giant Google the latest major U.S. corporation to kick the tires of the marijuana industry?

It could be. Signs suggest the Mountain View, California-based company is exploring the opportunity to work with cannabis businesses.

An executive with Colorado-based LivWell –  one of the largest marijuana retail chains in the country – recently disclosed Google’s interest in the industry at an event for Congressman Jared Polis, a longtime supporter of the cannabis sector.

LivWell CEO John Lord told the…

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Helix TCS Acquires Colorado Marijuana Wholesale Site

Helix TCS, a Colorado cannabis company that offers a wide range of services for industry firms, announced Tuesday it has acquired Cannabase, a leading online wholesale platform where many of the state’s growers and retailers buy and sell marijuana.

The move broadens Helix TCS’s reach into the marijuana industry. It already offers armed security, consulting services on banking and compliance, logistical support, and more. Terms weren’t disclosed.

“Cannabase’s critical mass in the marketplace, coupled with the deep pipeline of…

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Firm’s Findings Show Promising Results Among Testing Labs

Emerald Scientific, a California supplier of equipment and testing products to the cannabis testing sector, has released the results of its latest Emerald Test – which measures the accuracy of dozens of testing labs – and the results are promising.

Nearly 50 labs entered the company’s semi-annual Inter-lab Comparison and Proficiency Test, which measures a lab’s ability to determine the amounts of cannabinoids and residual solvents in an unknown sample. The test also compares results among labs to offer insights into how labs can…

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Fortune 150 Company Partners With Ancillary Cannabis Firm

MyDx, a maker of handheld chemical analyzers that allow consumers to check the potency of marijuana strains, has struck a deal with Arrow Electronics, a Fortune 150 company, under which Arrow will help manufacture the analyzers and provide other services and credit for San Diego-based MyDx.

The agreement is the latest to emerge involving a marijuana-related company and a major corporation. Software giant Microsoft Corp. last week disclosed it’s teaming up with an established ancillary cannabis firm, Kind Financial, to land government…

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Week in Review: Microsoft’s Big Cannabis Splash, Crowdfunding Fail & Potential Legal Precedent

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By Omar Sacirbey and John Schroyer

Microsoft makes a landmark foray into the marijuana business, an Arizona bank pulls the plug on a cannabis company’s crowdfunding effort, and a Denver MJ company scores a legal win.

Here’s a closer look at some notable developments in the marijuana industry over the past week.

Microsoft Isn’t Very Micro in Cannabis

Microsoft’s blockbuster disclosure about partnering with Kind Financial to go after government cannabis inventory tracking contracts shouldn’t alarm software companies already in that…

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Bank Nixes Marijuana Firm’s Crowdfunding Hopes

Crowdfunding may not be the simple solution that cash-starved marijuana start-ups can turn to for funding.

In May, the Securities and Exchange Commission implemented new rules permitting small businesses to raise up to $1 million annually through crowdfunding.

The move was hailed in the cannabis sector as a major breakthrough that would help entrepreneurs raise capital from individuals at a time when many banks are leery of conducting business with marijuana companies.

But it may not be that…

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Proposed Measure Threatens CO Cannabis Industry, Firm Says

A cannabis industry data firm is sounding the alarm over a proposed Colorado ballot initiative it says would prohibit marijuana products that generate more than 80% of industry revenue in the state.

The proposed initiative, by state House Representative Kathleen Conti, would limit the amount THC content in cannabis products to 16%. The current average is 17.1% in buds and flowers and 62.1% in concentrates, according to a 2015 study.

“When we first encountered the proposed language we…

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