Cenedella.de

Patient Advocate since 1977.


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Chris Driessen from ORGANA BRANDS — Celebrate commoditization and the birth of “Big Cannabis”

Celebrate commoditization and the birth of “Big Cannabis”

by Chris Driessen

I now buy legal cannabis by the ton. I negotiate the price of dried, ground marijuana as if it were just another commodity…because it is. Cannabis is simply an amazing agricultural commodity and precious raw material input– dropped into a not-so-complicated equation, designed to produce profit.

Just two years ago I was paying some $2,000 a pound for world class marijuana. Now that price has fallen by two thirds and I pay roughly $600 a pound. This is great news for our purchasing department, but not so much for our wholesale prices. Alas, this was inevitable, it’s simple economics. It makes market expansion all the more critical. If you are not growing, you’re dying, or soon will be. More money in the market invites more competition, which motivates us to innovate, scale and ultimately find efficiencies in our processes.. or be chewed up by the competition.

At Organa Brands, I oversee an entire house of brands that makes everything from cannabis vaporizers to THC tablets, edibles and dabs, and even energy drinks. I expect that before long, our CBD products — many of which have no THC — will be stocked on shelves at convenience stores, gas stations, Costco and Walmart.

Fortunately, that’s where my experience lies. Before entering the world of cannabis, I had spent years as a printer salesman, selling millions of dollars of commercial printers to clients throughout the Rocky Mountain region. The commercial printing business is cutthroat, as any office manager with a decent sized copy machine will attest. The hardware is sold for the narrowest of margins, or even below cost, while the emphasis is put on the consumable commodity, which is the ink.

Seem familiar? If not, what kind of cellphone do you have? You likely got the phone on the cheap or even free, as long as you signed up for the lengthy service contract. Guess where the money is made?

There are purists who shun the idea that if (when) marijuana goes mainstream, it is a disaster. They believe it’s a cave-in to big capital, big corporations, to profiteers and all things sacred of this undoubtedly magical plant. I couldn’t disagree more. If we are to unlock and share the medicinal and wellness properties of cannabis, why not champion the professional distribution of our favorite plant? Why not embrace enterprise resource planning software platforms, hi-tech manufacturing techniques, tighter inventory controls, agricultural efficiencies and crisp profit-and-loss statements?

The best homage we can make to this amazing plant is to produce the finest cannabis oil possible, to place it in attractive, finely-tuned packaging, that is both alluring to adult consumers and childproof, and offer it to consumers nationwide. The greatest contribution I can give to this industry and this amazing plant is to make sure it finds its way into as many lives as possible. We can scale our businesses larger, scrutinize costs and expenses, pour over financial reports and become the solid start-up that transforms into a legacy company that withstands the ups and down of the business world.

I believe we should celebrate national cannabis brands because we are able to incorporate up-and-coming products and place their innovative oils, edibles and medicines into our nationwide distribution network that reaches some 1,200 dispensaries in 10 states (and counting). We should support and encourage each other to become a tribe of companies, a community of cannabis enthusiasts that collectively have the market power of “Big Cannabis”. While that name scares many, it simply means that our industry has “made it.” It means we are here to stay, that we withstood the test of time and government prohibition. We have found a permanent home in the world economy.

When people criticize what they fear is the “homogenization” of marijuana, I can only laugh. Is there any better way to celebrate diversity of brands and up-and-coming entrepreneurial know-how than to offer a launch pad to those superior cannabis products? A launch pad that guarantees their product can be sold from Boston to Berlin, from San Francisco to Sydney?

It has been this same process of consolidation, which is a natural evolution in any maturing industry, that led the O.penVAPE team to look beyond vape pens and incorporate a whole new range of products, and a whole new range of possibilities. That’s why earlier this year we rebranded as Organa Brands — literally a house of brands.

For years, the company where I work was known for its O.penVAPE pens. We sold some 6 million of our cartridges and earned a strong customer following and loyalty with budtenders nationwide. Was that the result of some fortuitous “lucky break” or the natural result of dozens, then hundreds of employees working weekends, staying late and attempting to find a route to success in the highly competitive cannabis industry? I’ll let you answer that one, because I already know.

Our downtown Denver corporate office looks more like a tech startup in Silicon Valley than a mega cannabis conglomerate. We have trendy coffees that self-brew on demand, organic snacks and the requisite office pets and ping pong table. But don’t let the laid back atmosphere or tunes playing on the Sonos fool you. Our office is stocked with brilliant minds ready to go toe-to-toe with Big Tobacco, Big Alcohol and Big Pharma. We relish the opportunity to measure up against other, more mature industries. To do that we must first pass through the inevitable commoditization of our products, work with the compression of profit margins and weather the oncoming storm of consolidation.

I don’t make any medical or health claims about cannabis, but I know that a deep feeling of wellness and peace accompanies the cannabis products we produce. Every day, I receive letters of thanks. If this deep wellspring of consumer support leads to the nation’s first national chain of dispensaries, or million-acre cultivation facility, or a multinational consumer products cannabis company, I say we should all celebrate.


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Dr. Franjo Grotenhermen – HERO!

Solidarity for abandoned cannabis patients.

Dr. med. Franjo Grotenhermen Employee of the nova Institute, Chairman of the Cannabis Association as Medicine (ACM)
Dr. med. Franjo Grotenhermen, photo: Archive

 

The well-known physician and chairman of the Cannabis Association as a medicine (ACM) Dr. Franjo Grotenhermen has made a moving decision. Although certain positive aspects could be felt in parts through the enacted cannabis-as-medicine law, there would be enough problems in the entire treatment area, which now led to a drastic measure. During the ACM Annual General Meeting in Frankfurt on May 12, 2017, the medical doctor, who has been advocating medical medicine for many years, declares his decision not to eat any food for the next one to two weeks as a result of solidarity with the many cannabis patients left alone.
Doctor Franjo Grotenhermen joins the hunger strike.

 


Dr. Franjo Grotenhermen at the ACM Annual General Meeting 2017 explains hunger strike.

 

The drug policy speakers of the parties were informed before Dr. Franjo Grotenhermen of the warnings – an honorary man.


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Legal Approaches to Decriminalize Cannabis in 16 Different Countries

Legal Approaches to Decriminalize Cannabis in 16 Different Countries

This report, prepared by the foreign law specialists and analysts of the Law Library of Congress, provides a review of laws adopted in Argentina, Australia, Brazil, Canada, Costa Rica, the Czech Republic, Germany, Ireland, Israel, Mexico, the Netherlands, New Zealand, Norway, Portugal, South Africa, and Uruguay with regard to decriminalization of narcotics, and touches specifically on cannabis and legalization.

Individual country surveys included in the study demonstrate varied approaches to the problem of prosecuting drug use, possession, manufacturing, purchase, and sale. The country surveys demonstrate some diversity and common threads among these jurisdictions as to defining narcotics, distinguishing between “hard” and “soft” drugs, establishing special regulations concerning cannabis, refusing to prosecute personal use and/or possession of small quantities of drugs for personal use, giving law enforcement authorities the discretion not to prosecute minors and first-time offenders, applying alternative forms of punishment, and providing treatment opportunities.

Netherlands

Planning a trip to Amsterdam? Did you know that coffee shops are actually prohibited from selling drugs to you under Dutch law, and that nonresidents are not even supposed to enter the coffee shops? But wait, before you freak out and cancel your plans, know that Amsterdam tolerates the sale of certain “soft drugs” to foreigners looking to try what Amsterdam is best-known for. Local mayors have the authority to close such shops for not adhering to local rules, but they typically do not step in to assign punishments.

Dutch coffee shops rely on income from tourists, which in turn contributes to local economies, so officials do not typically enforce the residency requirement.

Germany

If you get caught by police in Germany, don’t even try to argue soft drug versus hard drug. Law enforcement doesn’t recognize the difference. The distinction between hard and soft drugs can only be considered at sentencing.

Australia

You should know that there is no national decriminalization policy, and cannabis use is technically considered illegal across the county. However, three jurisdictions (Australian Capital Territory, South Australia, and Northern Territory) have decriminalized minor cannabis offenses, especially possession of the plant.

Costa Rica

The use of narcotics in Costa Rica, including personal use, is prohibited by law; but no penalty for such violation is found on the books. Police, prosecutors, and the courts have discretion to drop charges if it is a minor, first-time offense, or the accused is willing to enter a treatment program.

Mexico

Although possession of illegal drugs is generally a crime under Mexican law, possession of less than 5 grams is not criminally punishable. However, if you are caught, a rule enacted in 2009 requires that you must be referred to an addiction treatment program.

“The ruling eliminates the prohibition and criminalization of acts related to the medicinal use of marijuana and its scientific research, and those relating to the production and distribution of the plant for these purposes,” the Lower House said in a statement on its website.

Mexico’s Lower House of Congress passed a bill on Friday, April 28, to legalize the use of cannabis for medical and scientific needs. The measure passed in a general floor vote 371-7-11, and now classifies delta-9-tetrahydrocannabinol (THC) as “therapeutic.”

The bill is now on President Enrique Pena Nieto’s desk, who is expected to sign it.

Uruguay

For now, it appears that the only country where it is completely legal to produce and use cannabis is Uruguay, although consuming cannabis in a public place is prohibited.

Adopted in 2013, Uruguay’s Law to Legalize and Regulate Cannabis brought radical change to the country’s approach to cannabis production and use. The law allows legal access to cannabis in four ways: medical marijuana through the Ministry of Health, home-grown marijuana, membership clubs, and sales to adults in drugstores. Although registration of consumers and cannabis clubs has been completed, implementation of sales in pharmacies is still underway.

Read the full report for free

These and many other interesting facts can be found in a recently published Law Library of Congress report on decriminalization of narcotics. Some diversity and common threads are demonstrated among the 16 countries included in the free report, such as defining narcotics, distinguishing between hard and soft drugs, establishing special regulations concerning cannabis, and discussion of the parameters of law enforcement and forms of punishment for personal use and/or possession.

You can access the full report here.


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The German government finally passed its legalization framework for medical cannabis consumption in March 2017. The country’s market is expected to record modest growth with its high 82 million population and a policy that allows prescriptions to be paid through health insurance plans, …MOTLEY FOOL article

Which Top Marijuana Company Will Capture Germany?

The German government finally passed its legalization framework for medical cannabis consumption in March 2017. The country’s market is expected to record modest growth with its high 82 million population and a policy that allows prescriptions to be paid through health insurance plans, thus potentially encouraging patients to explore medical cannabis health benefits.

Local marijuana producers with vast experience in mass growing of high quality product and hungry to capture the lucrative €12 – €15 a gram (roughly C$17 – C$21.75 per gram) German medical cannabis market, have been taking positions in growing their international business portfolios.

Some of the top local growers have already established footprints in Germany, but which among the local players is likely to gain significant traction in the new market?

Canopy Growth Corp

The local market leader, Canopy Growth Corp. (TSX:WEED) has already made a significant investment in Germany. The company acquired MedCann GmbH Pharma & Nutraceuticals (MedCann) back in November 2016. MedCann, a distributor, has successfully placed Canopy’s Tweed branded cannabis strains into German pharmacies.

The German distribution model strictly  confines cannabis sales to the pharmacy distribution model and no direct sales shall be allowed. Since all sales shall take the wholesale distribution channel, Canopy is already at a first mover advantage in this market.

Canopy has indicated that it is interested in producing cannabis locally in Germany with the expansion of the local program. With Germany expecting to launch a domestic cannabis cultivation initiative by 2019, Canopy is likely to try broadening its expansion program in the country.

Aphria Inc.

Aphria Inc. (TSX:APH) has recently announced an international expansion program that is currently focused on the United States market, and has committed $25 million to an investment in Florida. Its not yet clear whether it intends to make serious investments in the new German market, but it has been eyeing this market for some time.

Although it had not yet made any formal engagements in Germany by January 2017, the CEO Vic Neufeld, in an interview with the Midas Letter openly stated that Germany has been very much on Aphria’s radar, and the company once engaged in dialogue with two different organisations pertaining the German market.

However, Aphria has been very cautious in their Canada and U.S. expansion programs so far. It seems the company has a slow-but-sure approach to doing business as its Canadian operations have shown, so I do not expect an overly vigorous and aggressive German expansion program from them.

Aurora Cannabis Inc.

One of the fastest growing and most aggressive marijuana producers, Aurora Cannabis Inc.(TSXV:ACB), has recently announced a $75 million convertible debenture offering which is likely to close on April 26, 2017, with a clear intent of using the funds to “aggressively pursue international expansion opportunities,” says CEO Terry Booth.

The company believes the $185 million cash position gives them the strongest cash balance “in the global cannabis sector,” and Aurora wants to play a leading role “in multiple emerging global cannabis markets.” 

Its most likely Aurora may attempt a German expansion route. Given the company’s growth style, it goes big on ventures and seeks aggressive expansion. These traits have seen it emerging to become a serious top contender in the Canadian marijuana space in a very short time.

Most noteworthy, Aurora is already listed on the Frankfurt Stock Exchange in Germany and raising expansion funds locally may be relatively easier.

Investor takeaway.

Its not yet clear who among these top marijuana companies may become a serious investor in Germany, but Canopy already commands a serious lead.

There are other serious Canadian contenders to the German market, like the soon-to-be-listed Maricann Group Inc, which is already trying to acquire an 800,000 square foot facility and likely seeking a cultivation license in Germany, and  CanniMed Therapeutics and the Cronos Group who already have distribution relationships in the European country.

However, there will be competition from Netherlands entities too, but the market may not be that big enough to support massive investment as yet. Canadian growers who manage to capture the infant German market may be rewarded though, as they will gain first mover advantages into the opening European market.

According to Google, “Marijuana” has been a more popular search term in Canada lately than our very own Justin Trudeau. And, not surprisingly, marijuana stocks have been the most popular topic for Motley Fool Canada readers for some time…and for good reason! However, not all “pot stocks” are created equal. That’s why we’ve created our premium report “Motley Fool Canada: 3 Marijuana Stock Tips for Investors Today.” Discover how you can gain access to the 3 stocks we believe investors should focus on in this premium Stock Advisor Canada report by clicking here now!


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https://cenedella.de/ * Philip J. Cenedella IV * International Cannabis Consultant * Germany, Europe, USA and Canada markets * Medical Marijuana Patient Advocate since 1977 * Assist with Business Development, Licensing, Partnerships, and Strategic Direction.

Philip J. Cenedella IV

Bio

https://cenedella.de/
Philip J. Cenedella IV
International Cannabis Consultant
Medical Marijuana Patient Advocate since 1977.

First and foremost, Phil is a patient advocate for 4 decades having grown up in New York during the Rockefeller Drug Law years, then establishing himself in San Diego during the push for legalization there in the’ 90s.  Now he is situated in Germany during its historic transition into the leadership role of the European Cannabis industry.

Phil is uniquely qualified to help you establish your international business strategy having served as a Founding Board Member of the World Trade Center San Diego, a Lead Consultant for Deutsche Telekom, The California Trade and Investment Office, Deutsche Bank, IBM, San Diego Economic Development Board and many other entities.  He puts his years of business development, sales and distribution expertise to work for you in a highly professional, ethical and effective manner.

40 Years Experience:
Phil was born in Buffalo on the shores of the US/Canadian border, spent most of his life in San Diego overlooking the US/Mexico border, and now is living in Europe with its open borders and the opening of its legal Cannabis industry.

As a C-level business development executive in the technology and construction sectors, and a Founding Board of Director for the World Trade Center San Diego and San Diego Software Council, Phil has facilitated and closed sales and strategic partnerships worldwide.

Phil has also been Lead Consultant for the California Trade and Investment Office in Germany and catalyst for the CAL-IT Investment Forum in London.

He has served as a consultant for IBM, George Clinton, Deutsche Telekom, iSeeTV,  San Diego Convention Center, FINDLAW, Chaparral Computers and Networks, San Diego Economic Development Corporation, Deutsche Bank and many others in the Cannabis space (to remain confidential).

Phil is a USA citizen with an EU Work/Residence Permit.  He has exactly 40 years of firsthand knowledge of all aspects of our Industry and is a C-level International business development specialist who is highly professional yet very easy to work with.  He provides your firm with Strategic guidance and the ability to help you to increase your sales channels, distribution networks, and strategic partnerships.

Education:
1984, University of Dayton B.A. Psychology, Music minor-emphasis

Skill Level:
Sales 98%
Business Development 98%
International  trade 98%
Cannabis Industry 420%

Testimonials

 Who is Phil:
“Phil is an absolute professional. Flexible, hardworking and driven. His results were great and we highly recommend his services.” – BLF, NYC

“Phil has boundless enthusiasm and always applies 100% effort to all he does. Phil researched the US market for…. The USA became our best market by far, and I know that we would never have broken into that extremely tough market without Phil. His combination of broad based business knowledge, willingness to learn, team spirit and superb networking skills is very rare and extremely valuable. Always positive, he was a joy to work with. I thoroughly recommend him.” – GRB, UK

“Phil Cenedella has been my contact for several years and I have found him to be the consummate professional. He will always promptly return a call or provide me an answer to an inquiry. He is always “on-it” and truly treats a client as if they were part of his extended family. It’s very rare these days to find someone as dedicated to his business and his clients as Phil. Phil has all the characteristics of what I look for when I have occasion to be expanding my staff. He is honest to a fault, dedicated, sincere and is the paramount reason for my firm’s continuing…….” – DF ,USA

“Phil is the most personable, genuine, charismatic and effective business development manager I have had the pleasure to work with. He instills trust and confidence!”- JFL, EU

“Phil is family.” – George Clinton
Volunteer Positions:    Founder, Dayton and La Jolla Human Trafficking Accords, Founder, St. Vincent de Paul Christmas Caroling and Limo Party, Volunteer, Americans for Safe Access, Advisor, City of Hope – Dubai  Key accomplishments:  Assisted with the freeing from prison a child victim of human trafficking serving life without parole, initiated Goldman Sachs’ divestment of a human-trafficking related publication, assisted advocates on the frontlines in Dubai, Ohio, California and elsewhere.


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CANADA: ‘An awful lot of expertise’: Black market marijuana growers shouldn’t be shut out of legal market, says task force chair

‘An awful lot of expertise’: Black market marijuana growers shouldn’t be shut out of legal market, says task force chair

Adrian Wyld/ The Canadian Press”We didn’t want all those people excluded automatically from the possibility of participating in some way,” Anne McLellan, now a senior advisor at Bennett Jones LLP, said. Twitter Google+ LinkedIn Email Typo? MoreBlack market marijuana growers should be included in the legal market as they can provide valuable expertise as it evolves, Anne McLellan, chair of the federal government’s task force on legalization, said Monday.McLellan said the Task Force on Cannabis Legalization and Regulation, whose recommendations were broadly adopted in the government’s proposed Cannabis Act, concluded that previous criminal convictions during marijuana’s century of prohibition “shouldn’t be an automatic bar to them coming into the legal system.”“We didn’t want all those people excluded automatically from the possibility of participating in some way,” McLellan, now a senior advisor at Bennett Jones LLP, said in an interview with the Financial Post on the sidelines of a conference on cannabis regulation organized by the Ryerson University in Toronto.The task force’s November report called on the federal government to set up a system that allows various-sized producers to participate, including independent and craft growers.“There are lots of people who are producing now illegally — we talk about artisinal and craft producers — we want a diversity of producers,” McLellan said.“There’s an awful lot of expertise that’s outside the legal system right now and you wouldn’t want to lose all that.”RelatedMarketing restrictions to help small marijuana brands compete against deep-pocketed players: panel‘Turning green into green’: Payment startup aims to capitalize on banking void for marijuana companiesSome Canadian pot activists, including Marc and Jodie Emery, have expressed their disappointment that the draft legislation sets up a system that favours “big marijuana” because the federal government will strictly regulate and license who can produce the plant for sale. Under the current medical marijuana regime, Ottawa has handed out some 40 licences to produce, a small fraction of the number of applicants. However, McLellan points out that producing, manufacturing or selling pot are not the only economic opportunities in the coming multi-billion dollar legal marijuana market.“There are other ways for people to be involved in this industry. People focus on production or manufacturing, retail, and that’s all important, but that’s only the most visible part,” she said.“A lot is going to happen here and there are so many access points for people to be involved.”There are also a plethora of weed-related businesses —from fertilizers to security services to payment processors — carving niches in the space ahead of legalization expected in July 2018.Jodie and Marc Emery, owners of Cannabis Culture, at their store on Church Street in Toronto. They are quickly expanding their empire of dispensaries across Canada and are determined to do so regardless of whether the coming recreational market legalizes dispensaries like theirs. ” data-medium-file=”http://wpmedia.business.financialpost.com/2017/02/fp0204-gs-emergy-web.jpg?quality=60&strip=all&w=300″ data-large-file=”http://wpmedia.business.financialpost.com/2017/02/fp0204-gs-emergy-web.jpg?quality=60&strip=all&w=620″ class=”size-large wp-image-734308″ alt=”Tyler Anderson/National Post” src=”http://wpmedia.business.financialpost.com/2017/02/fp0204-gs-emergy-web.jpg?w=620&quality=60&strip=all&h=389″ width=”620″ height=”389″ srcset=”http://wpmedia.business.financialpost.com/2017/02/fp0204-gs-emergy-web.jpg?w=620&quality=60&strip=all&h=389 620w, http://wpmedia.business.financialpost.com/2017/02/fp0204-gs-emergy-web.jpg?w=1240&quality=60&strip=all&h=778 1240w, http://wpmedia.business.financialpost.com/2017/02/fp0204-gs-emergy-web.jpg?w=140&quality=60&strip=all&h=88 140w, http://wpmedia.business.financialpost.com/2017/02/fp0204-gs-emergy-web.jpg?w=300&quality=60&strip=all&h=188 300w, http://wpmedia.business.financialpost.com/2017/02/fp0204-gs-emergy-web.jpg” style=”max-width:100%;” />


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Germany Medical Marijuana / Cannabis Application to Grow – German partner wanted – for Medizinische Ausrüstungen, Arzneimittel und Körperpflegeprodukte 2017/S 070-131987

If you a German organization interested in partnering with one of the world’s leading producers of pharmaceutical grade cannabis, please send a confidential email to phil@cenedella.de  for immediate consideration as a strategic and financial partner in the German BfArM application titled:

Medizinische Ausrüstungen, Arzneimittel und Körperpflegeprodukte

2017/S 070-131987