Miesiąc: Grudzień 2019

California considers calling THC in pot a risk to moms-to-be – The Associated Press

LOS ANGELES (AP) — More than three years after California voters broadly legalized marijuana, a state panel is considering if its potent, high-inducing chemical — THC — should be declared a risk to pregnant women and require warnings.

Studies have indicated that a rising number of mothers-to-be have turned to marijuana products for relief from morning sickness and headaches, though it’s effectiveness has not been backed by science.

Cannabis industry officials say too little sound research is available on THC to support such a move and warn that it could make marijuana companies a target for lawsuits with unverified claims of injuries from pot use during pregnancy.

“That seems like an open-ended checkbook. How do we defend ourselves?” said Los Angeles dispensary owner Jerred Kiloh, who heads the United Cannabis Business Association, an industry group.

Lawyers looking for a quick buck will say “give us $10,000 or we are going to take you into a long court case,” he added.

The California Cannabis Industry Association echoed that fear, noting that pot’s standing as an illegal drug at the federal level has choked off research by government agencies. Those studies are needed to determine if THC poses health risks for pregnant women.

“Good policy and consumer protections are based on facts and data,” spokesman Josh Drayton said.

The meeting Wednesday of the obscure state Developmental and Reproductive Toxicant Identification Committee in Sacramento will focus on whether THC causes “reproductive toxicity.” The panel is made up of scientists appointed by the governor.

An affirmative finding would make THC one of hundreds of chemicals judged to cause cancer or birth defects that the state requires to carry warning labels, such as arsenic and lead.

The review is being carried out under the umbrella of the Safe Drinking Water and Toxic Enforcement Act, better known as Proposition 65. It requires warning labels for chemicals judged as dangerous and allows residents, advocacy groups and attorneys to sue on behalf of the state and collect a portion of civil penalties for failure to provide warnings.

The 1986 law has been credited with weeding out cancer-causing chemicals from products but also faulted for setting the stage for legal shakedowns.

Since 2009, the state has listed marijuana smoke as being known to cause cancer, similar to tobacco smoke.

“The expansion of Proposition 65 as it relates to cannabis is premature and lacks both the facts and the data that would justify this move,” Drayton said.

The U.S. surgeon general warned in August that smoking marijuana is dangerous for pregnant women and their developing babies. Mainstream medicine advises against pot use in pregnancy because of studies suggesting it might cause premature birth, low birth weight or other health problems, but many of those studies were in animals or had findings that were open to dispute.

The National Institute on Drug Abuse is paying for several studies on marijuana use during pregnancy.

If the California panel declares pot a risk for pregnant women, it’s not clear what the immediate impact would be on the state’s legal pot industry.

Presumably, packaging would need to be changed over time to carry warning labels for pregnant women. But such requirements would likely take additional steps by agencies that oversee marijuana regulation and packaging.

Even products containing CBD, a trendy ingredient extracted from marijuana or hemp, can contain trace amounts of THC.

California considers calling THC in pot a risk to moms-to-be – WDIV ClickOnDetroit

LOS ANGELES, CA – More than three years after California voters broadly legalized marijuana, a state panel is considering if its potent, high-inducing chemical — THC — should be declared a risk to pregnant women and require warnings.

Studies have indicated that a rising number of mothers-to-be have turned to marijuana products for relief from morning sickness and headaches, though it’s effectiveness has not been backed by science.

Cannabis industry officials say too little sound research is available on THC to support such a move and warn that it could make marijuana companies a target for lawsuits with unverified claims of injuries from pot use during pregnancy.

“That seems like an open-ended checkbook. How do we defend ourselves?” said Los Angeles dispensary owner Jerred Kiloh, who heads the United Cannabis Business Association, an industry group.

Lawyers looking for a quick buck will say „give us $10,000 or we are going to take you into a long court case,” he added.

The California Cannabis Industry Association echoed that fear, noting that pot’s standing as an illegal drug at the federal level has choked off research by government agencies. Those studies are needed to determine if THC poses health risks for pregnant women.

“Good policy and consumer protections are based on facts and data,” spokesman Josh Drayton said.

The meeting Wednesday of the obscure state Developmental and Reproductive Toxicant Identification Committee in Sacramento will focus on whether THC causes “reproductive toxicity.” The panel is made up of scientists appointed by the governor.

An affirmative finding would make THC one of hundreds of chemicals judged to cause cancer or birth defects that the state requires to carry warning labels, such as arsenic and lead.

The review is being carried out under the umbrella of the Safe Drinking Water and Toxic Enforcement Act, better known as Proposition 65. It requires warning labels for chemicals judged as dangerous and allows residents, advocacy groups and attorneys to sue on behalf of the state and collect a portion of civil penalties for failure to provide warnings.

The 1986 law has been credited with weeding out cancer-causing chemicals from products but also faulted for setting the stage for legal shakedowns.

Since 2009, the state has listed marijuana smoke as being known to cause cancer, similar to tobacco smoke.

„The expansion of Proposition 65 as it relates to cannabis is premature and lacks both the facts and the data that would justify this move,” Drayton said.

The U.S. surgeon general warned in August that smoking marijuana is dangerous for pregnant women and their developing babies. Mainstream medicine advises against pot use in pregnancy because of studies suggesting it might cause premature birth, low birth weight or other health problems, but many of those studies were in animals or had findings that were open to dispute.

The National Institute on Drug Abuse is paying for several studies on marijuana use during pregnancy.

If the California panel declares pot a risk for pregnant women, it’s not clear what the immediate impact would be on the state’s legal pot industry.

Presumably, packaging would need to be changed over time to carry warning labels for pregnant women. But such requirements would likely take additional steps by agencies that oversee marijuana regulation and packaging.

Even products containing CBD, a trendy ingredient extracted from marijuana or hemp, can contain trace amounts of THC.


CBD ads go mainstream, propelling small business growth – Crain’s Detroit Business

A rising number of Detroiters may be trying something new this holiday thanks to growing acceptance of CBD among consumers and advertisers. And that’s a good thing for the local economy and many small businesses fueling CBD growth.

The market for CBD products has exploded in recent years and is expected to exceed $24 billion by 2023, according to the Brightfield Group, a Chicago-based analytics and market research firm for the legal CBD and cannabis industries.

Michigan is among the top 10 fastest-growing CBD markets in the United States, according to numerous reports.

With many Detroiters among the 40 percent of U.S. adults interested in trying CBD, some experts believe that CBD will soon become as common as aspirin in households across Metro Detroit. There’s also significant growth among CBD retailers, such as Mother Earth Natural Health, which Crain’s recently reported is expecting year-over-year sales growth of 300 percent to 400 percent this year.

Fueling growing acceptance and awareness of CBD brands is Larry Berg, a longtime Detroit-area executive, Crain’s 40 under 40 cohort, former senior VP of $2 billion marketing services company Valassis and founder of privately held CBD Marketing Hub, an Ann Arbor-based company specializing in the CBD market. Berg founded the company August 2018.

His company is among those helping new CBD businesses move from Main Street merchants to the larger economy via highly targeted marketing campaigns like the many that took place over Cyber Weekend, which includes Black Friday and Cyber Monday promotions.

Recently, Berg’s CBD Marketing Hub, along with its partners CBD.io and Target Insyght’s nonprofit arm Insyght Institute, released the first-ever CBD Confidence Survey, which found that 55 percent of the survey’s respondents planned on being involved in Black Friday and/or Cyber Monday specials.

That’s important, according to Berg, who notes that the stats signal growing acceptance of CBD’s place in the mainstream market, its positioning among consumer-packaged goods and, most importantly, advertisers’ willingness to accept CBD ads.

„As the CBD landscape continues to grow, companies are finding new avenues and media to participate in this growth,” Berg said. „Cyber Weekend was an opportunity to launch, educate and engage with consumers and bring CBD companies to the forefront so people see the industry as it matures.”

Digital sellers like CBD Marketing Hub clients saw a huge lift in activity as a result of Cyber campaigns, Berg said.

„In a three-day period alone, we helped our clients reach 21.2 million consumers,” Berg said.

Companies say their 2019 Cyber Weekend events started in the hours before or on Thanksgiving and continued through Monday and even into the next week. Cyber Weekend helped CBD companies gain exposure in what retail-industry analysts call the kickoff weekend to holiday spending. They also saw traction in starting relationships with curious consumers who dipped a proverbial toe in CBD products because of discounts or special offers.

„People get excited about our Cyber Weekend sales because we bring our prices down to half,” said Jared Ballard, brand director for Hemplucid, a Utah-based CBD company that is concentrating efforts in high-growth markets like Michigan. Ballard said Hemplucid has been doing Black Friday and Cyber Monday advertisements for four years.

„We find we get a huge return rate from customers, which has been fantastic,” Ballard said. „Customers come in with these sales, they get to know our product and they get a feel for who we are as a company. We retain between 75-80 percent of them (after the sales).”

More CBD in holiday packages and in homes throughout Metro Detroit is potentially a business opportunity and good news for Detroit-area small businesses and a clear signal that there’s growth ahead.

Editor’s note: In a news release, Gov Gretchen Whitmer stated that she sees hemp farms as not just an agricultural opportunity but a potential business creator. As of early November, the state issued 572 grower licenses and 433 processor-handler licenses.

Mark S. Lee President & CEO, The LEE Group, a Plymouth-based, strategic consulting firm.  You can hear him “In the Conference Room”, Sundays, 11 a.m.–1 p.m., on 910AM.  You can also hear “Small Talk” podcasts at leegroupinnovation.com.

Cannabis-infused hot chocolate won’t harsh your marsh-mellow – CNET

Sorry, folks, this cannabis-infused hot chocolate mix from Kiva Confections has limited availability.

Kiva Confections

First came the cannabis-infused turkey gravy for Thanksgiving. Now California cannabis-edibles company Kiva Confections is tackling the rest of your holiday-season stress with a hot chocolate mix made with THC.  

„Kiva’s Hot Chocolate contains one of the fastest-acting and most bioavailable cannabinoids available in edibles today, with an onset time of 15 minutes or less,” the company said in a press release on Monday. That means you can go from hot cocoa to totally chill in a blink of Rudolph’s nose.

This hot-chocolate mix comes in a $5 single-serving pouch. You just add hot water or milk and stir it up. 

The packets are only available from certain shops in California, so the rest of the world will just have to deal with holiday stress in the usual way: by collapsing into a fetal position in the corner of the room while the relatives argue. Just kidding; I’m sure your family is lovely and you’re going to have a great time together. But you might keep some THC cocoa handy just in case. 

Now playing: Watch this: The future of medicinal marijuana is personalized pot

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Underage decoy sting nabs Dinuba man for illegally selling pot vapes to minors – Fresno Bee

A Dinuba man has been arrested and faces charges of selling marijuana vape pods to children.

Fresno County sheriff’s detectives said Ruben Dominguez, 23, was arrested Monday after a sting operation in which an underage decoy customer allegedly purchased flavored THC pods from him.

The arrest concluded a three-month investigation in which detectives determined that Dominguez was using social media sites to market vaping products to minors. The THC products are marketed under the brand name STIIIZY.

Dominguez was booked into Fresno County Jail for two felony counts of selling cannabis to children under 18. The California Penal Code section indicates that the crime is punishable by a prison term of three to five years. Bail for Dominguez was $10,000 for each of the cannabis counts. He was also booked on a felony warrant for evading a police officer.

The investigation was advanced by a tobacco grant from the state Department of Justice. The Fresno County Sheriff’s Office won a three-year grant of $552,000 to combat sales of cigarettes, vaping material and other tobacco products to minors.

In California, a person must be 21 or older to legally buy tobacco products; only licensed cannabis businesses are allowed to sell products containing THC, the active ingredient in marijuana that produces a high for users.

THC Vape Pods_1.jpg Cannabis vape pods under the band name Stillzy were seized by Fresno County sheriff’s detectives. Fresno County Sheriff’s Office
Related stories from Fresno Bee

The cannabis biz is down but long term it’s smoking, analysts say – The Detroit News

Las Vegas – With the cannabis industry reeling from a series of setbacks over the last six months, the marijuana business conference began in Las Vegas on Monday with an investors’ meet-up marked by existential distress.

“We are undergoing a recalibration in a very painful way” said Scott Greiper, president of Viridian Capital Advisors. “Markets are really depressed right now and we looking for ways to come out of it.”

The market capitalization for the 33 biggest cannabis stocks has crashed 45% since March 31, 2019 – falling from $54 billion to $30 billion. Consensus estimates for projected revenue have dropped 17 percent, said Craig Behnke, an equity research analyst for MJBiz Intelligence.

“You know you’re at the bottom when Willie Nelson stops smoking weed,” quipped one equity analyst. Nelson, the 86-year-old country music legend and marijuana advocate, announced last week he was giving up his daily joints.

Still, most experts who attended the cannabis business intelligence conference at the Cosmopolitan remained guardedly optimistic for the future of the industry and held out some hope for a reversal of fortunes.

“The ‘macro theme’ is still intact,” said Behnke. “We anticipate a tremendous growth story for years or decades to come, even though stocks are going down now.”

Eleven states have legalized marijuana for adult use. Thirty-three allow patients to have access to medical marijuana.

Danny Moses, whose bet against the U.S. subprime housing market was commemorated in The Big Short, delivered a rapid-fire keynote presentation to the roughly 400 international investors gathered in the casino-hotel ballroom on Monday.

He’s remains bullish on cannabis. He acknowledges the potential volatility of the industry, but said he’s “begging” Michael Lewis to write about the weed industry as his next book. He has a ready-made title for it: “The Big Long.”

Moses said the investing environment could change over night. Polls show more than 60% of voters support legalization. “(President) Trump likes nothing more than to be popular,” Moses said. “He could issue an executive order (legalizing marijuana). It’s a possibility.”

Some of the pain caused by the flagging stocks has been triggered by fundamental business realities. Early investors in the sector often viewed themselves as advocates for legalization and were willing to take risks based on ideology,” said Behnke. But a new crop of investors wants fundamentals addressed.

“Every company is in the business of producing the same product – cash,” said Behnke. “And companies need to generate cash to ensure their survival. The laws of economics still apply.”

The industry is also short of people who know how to run a business, several experts said. Many companies lack a good business strategy. “But they’ve found really good spending models,” Behnke said.

The industry is also short of people who know how to run a business, several experts said.

During the past year, weed world celebrated a series of extraordinarily large mergers and acquisitions. Many were paid for with stock, not cash. Most of the biggest deals have collapsed with the value of the acquirer’s stock. They’re burning through cash.

The resulting hangover has cooled merger fervor. The number of acquisitions has declined 50% in the past six months, said Veridian’s Greiper. The vape crisis, which has been attributed to low quality black market goods, has also had a chilling effect on legal companies’ ability to sell high-profit THC oils and concentrates.

The cost of capital has soared as companies compete with “traditional” firms for capital, said Behnke.

Federal law has been slow to change. Many investors and cannabis executives expected the SAFE Act to have passed by now. The bill is expected to provide federal guidance to banks that would allow companies to obtain mortgages and financial services available to traditional businesses. As things stand, nearly all marijuana transactions must be handled in cash.

Again, counterintuitively, the stalled pending bill may make investment opportunities more attractive to those who are willing to assume risk.

“If you’re waiting for federal law to change, that’s going to be too late, said Michael Lavery, a senior research analyst covering packaged food, tobacco and cannabis at Piper Jaffray investment bank in New York.

Avery also pointed out there are more investment opportunities than most people recognize.

“There are 450 publicly traded companies” related to cannabis, Lavery said. “It’s incredibly fragmented.”

He expects the industry to consolidate.

“Once there were 250 e-cigarette companies,” Lavery said. “Now the top five in the industry have 97% of the market. Cannabis is likely to go in that same direction.”

Limited state medical marijuana markets, which allow a handful of companies to obtain “regulatory capture,” are creating special investment opportunities. “They have a market share that is more protectable,” he said, singling out Cresco Labs and Green Thumb Industries as examples. Both companies operate grows and dispensaries in Pennsylvania, among other states.

Greiper said a handful of changes could reverse the decline in stock valuations.

If banking becomes available, state-legal companies could get mortgages, credit lines and liquidity. The DEA has been weighing issuing research licenses that would allow companies to grow and sell marijuana for research and testing. Currently, The DEA gives only the University of Mississippi that privilege. “That’s going to change in the next year,” said Greiper.

Proposed social equity programs in states like New York and New Jersey could lead to those states legalizing marijuana for adult recreational use.

Moses, of the Big Short fame, likened the cannabis climate to other investing moments: the housing crisis, the dotcom bubble, and the telecom boom and bust. But Moses said cannabis affords some rare advantages: “I’ve never seen a sector with these kinds of tailwinds: economic wellness and political.”

He counseled jittery investors to take a long view: “Try the product and remember why you invested in it in the first place.”

Weed vapes may not be safe from vaping-linked health problems – Salon

The victim tally continues to rise for the vaping-linked now known as EVALI , an acronym that stands for „e-cigarette or vaping product use-associated lung injury,” and which appeared to appeared to be linked mainly to nicotine-delivering vape products that simulated cigarettes. Unfortunately, weed vapers who thought they were safe from vaping-related health issues may not be safe either, as a new study found that marijuana vapes may harbor different harmful chemicals.

As reported by the Centers for Disease Control and Prevention (CDC) last week, a total of 2,291 cases of EVALI from around the country were reported to the federal health agency as of December 3. Forty-eight deaths were confirmed in 25 states and the District of Columbia. In the beginning of September, numbers hovered around 450 people being hospitalized, and five deaths. As scientists continue to investigate the outbreak and illness, they are faced with a lot of unknowns, including a specific product and cause. The CDC states “it appears that vitamin E acetate is associated with EVALI,” however, “evidence is not yet sufficient to rule out contribution of other chemicals of concern.”

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A recent study published in the September issue of academic journal ACS Omega, titled “Aerosol Gas-Phase Components from Cannabis E-Cigarettes and Dabbing: Mechanistic Insight and Quantitative Risk Analysis,” is raising questions about what happens when additives are put into cannabis vaping products. The study seeks to bring a greater understanding about product safety when cannabis is inhaled using nontraditional methods like vaping.

“What’s inhaled is actually different than what’s listed in the ingredients,” Portland State University Chemistry Professor Rob Strongin, who led the research team for the study, said in a media statement.

The group of researchers studied the chemical reaction that takes place when cannabis is consumed using a vape pen or dab rig. Dabs are another term for concentrates of hash oil, which have extremely high concentrations of THC, the active psychoactive in cannabis, and which can be smoked or vaped to produce highs greater than traditional pipe or water pipe smoking. Dabs require higher temperatures to smoke, which requires a dab rig, a special high-temperature tool for vaporizing the concentrate.

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Researchers found that in these chemical reactions, more toxins emerged from terpenes than from THC. Specifically, they found a nearly fivefold increase in the chemical isoprene, which was released from THC with 10 percent more terpenes compared to THC alone. Inhaling isoprene caused tumors in mice and rats.

“Several identified components are International Agency for Research on Cancer-classified carcinogens, and exposure to these may place a burden on the health of people that use dabbing or vaping to consume cannabis,” the researchers stated.

Terpenes are the naturally occurring combination of carbon and hydrogen and can be found in various plants. However, the researchers’ findings suggest that terpenes are added into pure THC extractions to dilute the product, and give it a specific aroma and taste. Strongin said they found some vendors adding up to 30 percent additional terpenes to their products.

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“There are fewer toxins formed from THC as compared to terpenes,” Strongin said. “This is consistent with some of the vaping-related injuries we’re seeing. It’s not the active ingredients, like THC or nicotine, that appear to be causing the hospitalizations and deaths, but what they are combined with.”

Vape pens are made up of an atomizer, a cartridge or tank, a sensor and a mouthpiece. When a personal inhales and sucks on the mouthpiece, the battery of the atomizer sends a signal to the sensor which causes the temperature in the atomizer to rise. Researchers relied on a Quantitative risk assessment (QRA) to calculate the risk and approximate the probability of the incidence to figure out a defined outcome.

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Their findings suggest the less additives the better, but there are still a lot of unknowns.

“There’s a reason that no one studied the inhalation toxicity of a lot of the ingredients in e-cigarettes because nobody thought we’d be crazy enough to be inhaling them,” he said. “But the problem now is that there’s a huge gap in our knowledge.”

As Salon reported in 2018, some of the chemicals in flavors used to add flavor to e-cigs are billed by manufacturers as safe because the FDA has approved them for ingestion. Yet no one knows for sure if you can atomize and inhale the same chemicals safely, and many chemicals approved for ingestion become toxic after combustion.

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In September, Jake Plattenberger, an attorney who defends victims who have been exposed to diacetyl, said there were a lot of chemicals in e-cigarettes consumers and health officials don’t know about.

“These formulas are treated as trade secrets, and the vaping companies aren’t required to disclose what their formulas are or what their ingredients are, but we know quite a bit from the food flavoring industry because the same ones were migrated over to the vaping industry,” Plattenberger told Salon.

Many vape makers, both of nicotine and THC e-cigarettes, advertised their products as a safer, healthier alternative to old-fashioned smoking. As more research emerges in this under-regulated industry, it turns out those claims may be very untrue.

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Purely CBD opens in Eaton – Register-Herald

Purely CBD held its ribbon cutting ceremony in conjunction with the Preble County Chamber of Commerce on Tuesday, Dec. 3. The new store is located in Junction Village Mall at 538 N. Barron Street in Eaton.

Purely CBD held its ribbon cutting ceremony in conjunction with the Preble County Chamber of Commerce on Tuesday, Dec. 3. The new store is located in Junction Village Mall at 538 N. Barron Street in Eaton.

EATON — Purely CBD held its ribbon cutting ceremony with the help of the Preble County Chamber of Commerce on Tuesday, Dec. 3. The new store is located in Junction Village Mall at 538 N. Barron Street in Eaton.

According to affiliate Mike Howard, Purely CBD is a franchise based out of Arlington, Texas. The company was started in May of 2018. Purely CBD is its own manufacturing facility and distribution company.

Howard decided to own his own franchise after researching Purely CBD and talking with the company.

“I wanted to do this a year ago, but with all the stuff in Ohio, a little bit behind in getting everything approved. I kind of waited and then decided now is the time. Talking with them and reading how it is helping everybody – that is one of the biggest things,” he said.

Howard added, he loves to hear from customers and people who use other CBD products how it has helped them, however, he cannot make any officials claims as to benefits of taking CBD products.

“I really can’t say, because the FDA hasn’t approved it, so it is hard to say and we can’t put anything in writing as far as what it can help and and fix, that kind of stuff,” he said. “All I can say is, everybody I’ve talked to, it’s helping them. This is something that can really help a lot of people.”

Howard explained, CBD oil is part of the hemp plant. Marijuana plant is completely different. For CBD, everything is extracted from the hemp plant, not the hemp seeds, so everything is legal. Their product is also THC free. Howard stressed, CBD oil “will not get you high.”

When building his franchise, Howard did not want it to look like a “everyday smoke shop.”

“You see it everywhere now – gas stations, hole-in-the-wall smoke shops. We don’t want that. We want people to feel like this is a comfortable area, warm and welcoming. You have your older and younger group who will be coming in. I think that is what we were going for,” he said.

“They should have a good, welcoming experience when they come into Purely CBD. We are very experienced. We are going to talk to them about what they may have going on and what we can recommend, what dosage. If they have any questions, they can get back to us. They should have an overall good experience.”

Howard added, Purely CBD was voted number one quickest growing brand in 2019 at the Miami Valley Expo.

“This is really one of the top products that is out there,” he said. “All of our products are tested by a third party lab, so everything is tested and we know exactly what is in it. Any questions you have, we can help you out. We’re here for the community — overall, the people who have come in have been welcoming.”

More information on Purely CBD can be found at www.purelycbd.net. Reach the Eaton store at 937-683-8070 or eaton@thepurelycbd.com.

Purely CBD held its ribbon cutting ceremony in conjunction with the Preble County Chamber of Commerce on Tuesday, Dec. 3. The new store is located in Junction Village Mall at 538 N. Barron Street in Eaton.

Reach Kelsey Kimbler at 937-683-4061 or on Twitter @KKimbler_RH

Rare CBD hemp strain found – Finfeed

BPH Energy Limited (ASX:BPH) investee Patagonia Genetics has acquired the rights to a recently discovered and rare high CBD hemp strain.

Known as the Carmangola Italian Hemp strain, it is an industrial hemp strain derived from Italy and cultivated for more than 15 years.

The hemp seeds are dioecious meaning that both male and female plants can be grown. The strain is mainly grown for fibre production as well as for Cannabidiol (CBD) oil extraction and resin.

The Carmagnola cultivar has a historically low Tetrahydrocannabinol (THC) reading (below 0.5%). THC is the psychoactive element of cannabis that is generally still banned for use in cannabis products in most global markets.

Whilst low in THC, the strain contains a high CBD content of 7-9%, which makes it ideal for CBD resin and oil extraction. This hemp strain is also capable of producing high quality CBD flower.

Researchers spent considerable time cultivating, testing and phenotype searching (phenotypes are the observable physical properties of an organism and include appearance, development, and behaviour) thousands of Carmagnola plants.

Forthwith, the breeder was able to identify a particular phenotype that carries exceptionally high levels of CBD compared to traditional Carmagnola, whilst maintaining THC levels well below 0.3%.

This particular phenotype of Carmagnola carries a cannabinoid profile of 18.4% CBD and 0.11% THC.

This new phenotype discovery was tested by the ‚Centro Tecnológico Nacional Agroalimentario Extremadura (CTAEX), a research association inaugurated in January 2001 as a private centre for innovation and agricultural and food technology. CTAEX produced a Certificate of Analysis (COA).

This phenotype appeals to Patagonia due to its low THC.

The THC reading is substantially lower than the United States Department of Agriculture (USDA) THC limit of 0.3%, meaning it can sold worldwide as hemp, with little risk to the cultivator of exceeding THC limits.

Patagonia establishes relationship with Spanish cultivator

Patagonia recently completed due diligence on Gibraltar-based Calpernia Planters Limited, which holds various licenses which permit it to import and export hemp and cannabis related genetic material, but with a limit on THC content of 0.3% or less.

Patagonia has entered into exclusive distribution agreement with Calpernia.

Calpernia director Michael Trinidad has an agreement in place with Calpernia and is contracted to exclusively cultivate their genetics in Spain under his license and supply them. Under current capacity, the licensed Spanish farm can supply feminised seed in the vicinity of 20,000,000-30,000,000 by mid to late 2020, with the ability to scale into 2021 and beyond.

Commercialisation

Under the terms of the distribution deal, Patagonia can immediately begin selling this newly discovered genetic phenotype under Calpernia’s hemp license.

It is expected to supply the market with genetic cuttings or clones of this phenotype by Q1 2020 and feminised seeds by Q3 2020.

The Carmangola strain of hemp.The Carmangola strain of hemp.

Patagonia has already sent the COA results to major grow shops, distributors and licensed producers worldwide and has received significant interest to supply them with genetics for 2020 cultivations.

* Newly discovered phenotypes of the Carmagnola Hemp Cultivar

Exclusive rights

Patagonia has the exclusive global rights to the newly discovered high CBD phenotype of the Carmagnola Hemp variety, through execution of deal with Calpernia.

Under the terms of the deal, Patagonia has agreed to purchase from Calpernia the following minimum volumes of seeds in order to maintain exclusivity:

  • 2020. 3,000,000 seeds;
  • 2021. 10,000,000 seeds; &
  • 2022. 15,000,000 seeds (capped onwards).

Patagonia will update the market as and when it enters material distributions or sale agreements on this particular phenotype.