Nevada Pot Emergency Shows The Real Size Of America’s Demand For Cannabis

Photo by Javier Hasse. 

This article was originally published on Benzinga, and adapted exclusively for HIGH TIMES.

Nevada started selling cannabis for adult use just a few of weeks ago. Just a few days into legalization, dispensaries were already running low on (or even out of) product. Almost every major media outlet in the U.S. has reported on this event, explaining the shortage was caused by distribution problems and inefficiencies, rather than by a scarcity of weed in the state.

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Pot Industry Insiders On Why The IRS Is Targeting Them—And How To Avoid Business Disruption

Photo by Javier Hasse. 

This article was originally published on Benzinga, and adapted exclusively for HIGH TIMES.

According to several sources in the Colorado cannabis industry, the Internal Revenue Service (IRS) has been trying to prove that marijuana businesses have been illegally trafficking in weed. This would mean they aren’t entitled to the tax deductions they have been claiming (see Author’s Note at the end of this article).

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Are Municipal Banks the Answer to the Cannabis Industry’s Cash Problems?

There is less than five months until California’s January 1 deadline to regulate adult use cannabis. Not only is the state scrambling to write regulations for the industry, but some cities are looking into creating municipal banks that would allow cannabusinesses to have accounts and take out loans.

On July 25, City Council president of Los Angeles, Herb Wesson, instructed the council to begin investigating the “feasibility” of creating a city-owned bank to help fund small businesses, development of affordable housing and cannabis entrepreneurs.

“We cannot bury out heads in the sand on the issue of recreational and medical cannabis legalization, instead we must strive to reasonably regulate the emerging industry while creating opportunities for Angelenos,” Wesson said to the City Council.

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Cannabis Company Plans to Turn Desert Town into Pot Paradise

BY JOHN LOCHER AND JOHN RODGERS

ASSOCIATED PRESS

NIPTON, Calif. (AP) — Now that one of the nation’s largest cannabis companies has bought the entire California desert town of Nipton, a question remains: Will the new owners rename the place Potsylvania?

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Good Old American Ganjanuity: Pre-Roll Company Twists Up Success

As the legal marijuana market expands, companies are springing up to satisfy an increasing demand for cannabis. Just like any other industry, a business that can be innovative and create new products, or improve on existing ones, can give itself a competitive edge.

Four years ago, Scott Bryant and Victor Berrio, the founders of Pineworx, saw opportunity in the pre-rolled joint business.

Victor Berrio and Scott Bryant (Photo by A.J. Herrington)

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California Grows Too Much Weed for Its Own Use

In California, the good news is that legal weed is on the way—big time. The bad news is that Cali has too much!

Observers of California’s potential billion-dollar industry warn that growers are churning out too much. But how much is too much?

California’s cannabis production is said to be eight times more than what the state collectively consumes.

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HIGH TIMES Merger Aims to Take Company Public

On Thursday, High Times Holding Corp., publisher of HIGH TIMES and a leading voice of the cannabis community since 1974, announced its merger with Origo Acquisition Corporation, a special purpose acquisition company, in a move to take the company public.

Since the brand’s recent acquisition by Oreva Capital, HIGH TIMES has begun to position itself to better capitalize on its robust future growth, taking steps to broaden the company’s three primary segments: events, licensing and media.

Given the rapidly expanding acceptance and legalization of cannabis, HIGH TIMES believes access to capital and an elevated profile, via its anticipated public company listing, will enable it to expand the brand, while funding new business opportunities that leverage and support nationwide medical and recreational usage initiatives.

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The Bloom Is Off the Rose for Flower’s Popularity

Despite the burgeoning demand for legal cannabis, whether for medical or adult use, trying to make money from it remains a tricky proposition. Its unique semi-legal status (tax code 280E), plus the challenges of branding and differentiating when advertising opportunities are limited, all conspire against entrepreneurs, and dispensary owners in particular. Enter Baker, a Denver-based software company that helps more than 300 dispensaries in 10 states through its smart applications for online ordering, customer retention and personalized messaging.

Through a research partnership, New Frontier Data has been able to gauge online ordering habits and loyalty data collected by Baker in key US markets, including California, Oregon, Colorado, New Mexico and Washington, as well as the Canadian provinces of Ontario and British Columbia. Notably, these data include the demographics of those consumers who account for 80 percent of the dispensaries’ overall revenue and represent the “power users”—i.e., the most influential group in driving demand and shaping consumer trends.

Among the trends noted in New Frontier Data’s recent “Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook” is the declining relative popularity of flower against other product types. Certainly, cannabis flower remains the single largest source of revenue for dispensaries. In medical markets, for example, flower makes up 47 percent of total sales volume, but it accounts for 71 percent of total revenue generated. In contrast, pre-rolled joints account for 13 percent of total sales volume but only 2 percent of total revenue.

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