# MJ News for 04/28/2014



## 7greeneyes (Apr 28, 2014)

h*MP*p://www.nydailynews.com/news/politics/medical-pot-approved-n-y-spring-advocates-article-1.1770928




*Medical marijuana could be legalized in New York this spring: advocates*​

ALBANY - Medical marijuana may finally be growing on New York State lawmakers.

Bolstered by growing public acceptance and hints of support from Gov. Cuomo, proponents of pot as medicine believe newly re-drafted legislation will be approved in Albany this spring - making New York the 22nd state to legalize medical marijuana.

"We're closer to this than we have ever been before," said Gabriel Sayegh of the Drug Policy Alliance.

Hoping to overcome the remaining opposition in the state Senate, advocates have revised the legislation to place tighter restrictions on how the drug can be used and who gets to use it.

The new version, introduced Friday, removed language that gave doctors freedom to prescribe pot for a wide array of symptoms. Instead, the new version limits its use to about 20 serious conditions, including cancer, traumatic brain injury, AIDS, Parkinson's Disease, multiple sclerosis and post- traumatic stress disorder.

The new version also prevents anyone under 21 from being able to smoke marijuana for medicinal purposes - though they could be prescribed other forms of the drug - and forbids anyone with a felony narcotics conviction from working in a marijuana dispensary.

Bill sponsor Sen. Diane Savino (D-Staten Island) said the changes grew out of conversations with lawmakers who feared legalization of marijuana for medical purposes would lead to widespread abuse.

Savino believes the new revisions would give New York the most tightly regulated medical marijuana system in the country. It would employ a "seed to sale" model, similar to the system used in Colorado, in which state-sanctioned firms grow, distribute and sell herb to patients.

Advocates also argue it would generate hundreds of millions dollars in new tax revenue for the state and local governments.

While Savino estimates that at least 39 senators support the measure - seven more than is needed for approval - it is unclear whether the new revisions will be enough to persuade key Senate leaders, including GOP leader Dean Skelos and Health Committee Chairman Kemp Hannon, both Republicans from Long Island, to allow a vote.

Medical marijuana legislation has repeatedly passed the Democrat-controlled Assembly only to stall in the more conservative Senate.

"We have not seen the revisions and will review them," said Senate GOP spokesman Scott Reif. "Like the governor, we are taking a cautious approach."
Hannon did not respond to a request for comment, but other senators still expressed reservations.

"To me its just the camel's nose underneath the tent for the legalization of marijuana," said state Sen. Martin Golden (R-Brooklyn).

Cuomo has said he would review whatever legislation is finally approved before deciding whether to sign it.

Advocates credit him with pushing the issue forward by announcing in his State of the State Address a plan for limited medical marijuana distribution through participating hospitals.

"When governor talked about it in January, it absolutely elevated the issue and gave it a heightened level of credibility," said lobbyist Patrick McCarthy, who represents a Colorado-based marijuana grower.

Public opinion polls also show solid support for medical marijuana.

A Siena College poll released Tuesday found 51% of voters supported the widespread legalization of medical marijuana and another 26% favored going with Cuomo's limited plan. Only 21% said pot for medical purposes should remain illegal.

"I think a lot of people are watching this because New York is uniquely positioned right now to be the next state," Savino said. "And not just the next state, but the most important state."


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## 7greeneyes (Apr 28, 2014)

h*MP*p://www.firstcoastnews.com/story/news/health/2014/04/28/florida-sheriff-campaigning-medical-marijuana/8377329/




*Fla. sheriffs campaigning against medical marijuana*​

TAMPA  The Florida Sheriff's Association is set to make a large push against the legalization of marijuana. Voters will decide on the legalization of medical marijuana in November.

The association sent an email to sheriffs across the state during the winter asking for their support. The Tampa Tribune reported that 63 of 67 sheriffs were in favor of opposing any measures to legalize the drug.

Lindsey Deaton, community relations coordinator for Brevard County Sheriff Wayne Ivey, says Ivey is one of the 63 who oppose it.

The association is also looking for the support of substance-abuse awareness and anti-drug groups to be part of the "Don't Let Florida Go To Pot" campaign. It also says there has been a spike in crime and traffic accidents in states that have passed similar legislation.

"Of the 20 states with the highest driver acknowledgement of drugged driving, 15 were states that have passed legislation legalizing marijuana," the association said in a statement. "The Los Angeles and Denver police departments have reported significant increases in crime since marijuana was legalized in their respective states."

The association said marijuana has a high potential for abuse and presents significant dangers to youths in the state.

"The legalization of marijuana will make this drug more readily available and easier to obtain by teens, as they would not need parental consent to get a 'physician's certification' for marijuana," the association said. "With no quality or dosage control, there is nothing in place to prevent these storefront marijuana dispensaries from selling to minors."

Pasco County Sheriff Chris Nocco said he doesn't have an issue with legitimate uses of medical marijuana, but believes, "the real purpose of this amendment is for recreational marijuana to be legalized."


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## 7greeneyes (Apr 28, 2014)

h*MP*p://kdvr.com/2014/04/28/federal-indictment-on-federal-marijuana-raid-expected-to-be-unsealed/



*Federal indictment on federal marijuana raid expected to be unsealed*​

DENVER  A federal indictment is expected to be unsealed Monday, revealing more details about last falls federal marijuana raid and why a Denver attorney was arrested Friday.

A few weeks ago, state regulators denied VIP Cannabis (2949 W. Alameda Ave.) a license application and ordered it to stop selling marijuana.
In November, VIP was part of the largest raid on Colorados medical marijuana industry. Sources say the feds are looking into possible connections to Colombian drug cartels.

On Friday, federal agents made multiple arrests in connection with the raids, including attorney David Furtado.

It appears as though he might of been arrested not as an attorney but as a shareholder or an owner of a marijuana distribution dispencery, criminal defense attorney Dan Recht said.

In November, federal agents executed search warrants on 14 businesses and two homes. One of those homes is located in Cherry Hills Village and its where federal investigators traced a photo of Colombian national Hector Diaz, who has been charged for illegally possessing guns while in the country on a visa.

Details about Fridays arrests wont be revealed until the indictment is unsealed in federal court Monday. The people arrested remain in federal custody, including Furtado.

The attorney Furtado is indicted and arrested and will face federal charges and could in fact, end up in federal prison as a result of this investigation, Recht said.

Recht says its too early to tell if theres a strong case against him or not. In a state where marijuana is legal and illegal at the federal level, details of the indictment are something the public will look at closely.

This is battle is being waged in Colorado when the rest of the country is watching, Recht said. It creates this turf battle and a whole lot of tension that hasnt been played out yet.

How many people were arrested on Friday will also be revealed Monday. As for VIP Cannabil, it has less than two months to request a hearing to challenge the license denial.


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## 7greeneyes (Apr 28, 2014)

h*MP*p://www.wgrz.com/story/news/2014/04/27/medical-marijuana-bill/8343407/




*(NewYork) Amendments to a Senate bill could help sway opponents of medical marijuana.*​

ALBANY  New amendments to the Compassionate Care Act in the State Senate could help sway opponents of medical marijuana legalization to finally bring the matter to a vote for the first time in history, according to a New York City-based non-profit.

Gabriel Sayegh, the state director for the Drug Policy Alliance, said the Senate is "closer than it's ever been" to passing a legalization bill. Although the Assembly has passed the bill four times, the Senate has never discussed it in a committee hearing. In 17 years, Senate leadership has never allowed the bill to the reach the floor for a vote, even though Sayegh said he believes there's more than enough bi-partisan support to pass it along to the governor's desk.

But several new amendments in the Senate may change that. Specifically, the bill has been changed to the number of medical conditions eligible for medical marijuana treatment.

"For additional conditions to be added, patients would have to go to a committee that would be put together by the Department of Health," Sayegh said. "That's one of the biggest changes here."

Sayegh, whose organization supports legalization of medical marijuana, also said the new bill would restrict people 21 years and younger from smoking the marijuana, instead forcing them to use alternative forms. Another amendment would change the way the medical marijuana dispensary system would work.

"The hope is that these changes expedite this process, that the senate leadership finally agrees to bring this bill to the floor for a vote," Sayegh said. "We know there's enough votes to pass it. It has strong bi-partisan support."

Gov. Andrew Cuomo still has not expressed support for the bill, though he has softened his stance recently and said last week he'd keep an "open mind."

"It's long past time," Sayegh said, "that we provided relief for people living with debilitating conditions in our state."


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## 7greeneyes (Apr 28, 2014)

h*MP*p://www.chicagoreader.com/Bleader/archives/2014/04/27/elected-officials-say-its-time-for-illinois-to-move-toward-legalizing-marijuana




*Elected officials say it's time for Illinois to move toward legalizing marijuana*​

Legalize it.
At the very least, start taking steps toward legalizing it.

That's the message that a group of county and state elected officials plan to deliver at a press conference downtown Monday afternoon. They'll point to both the costs of enforcing current marijuana laws and the potential financial benefits of legalizing pot for recreational use.

It's the latest sign that the politics of pot are shifting at a pace that was unimaginable even a couple of years ago.

"It is well past time to recognize that the so-called 'war on drugs' has been a misguided failure with respect to marijuana laws and policies," Cook County commissioner John Fritchey, who's leading the effort, said in a written statement. "The Illinois Legislature should follow the successful lead of other states and start taking meaningful steps toward a workable framework to allow the responsible sale and use of cannabis."

The elected officials plan to call for the creation of a state task force to research potential regulations, project revenues, and propose legislation for the sale and taxation of legal pot. Experts in law enforcement, health care, and business would be involved.

The announcement is clearly meant to prod leaders in Springfield. In February state reps Robyn Gabel of Evanston and Sara Feigenholtz of Chicago introduced a bill calling for a study of marijuana legalization. It's been sitting in the house rules committee ever since.

Illinois politicians tend to move at a glacial pace on changing drug and criminal justice policies, even when they're clearly broken. But the national debate on marijuana regulation has moved dramatically.

Colorado state officials caught the attention of cash-strapped states around the country when they announced total tax revenues of more than $6 million from the first two months of state-regulated marijuana sales there.

In an interview with the New Yorker published in January, President Obama said he believed marijuana was less harmful than alcohol and indicated his support for legalization in Colorado and Washington as test cases. "It's important for it to go forward because it's important for society not to have a situation in which a large portion of people have at one time or another broken the law and only a select few get punished," he said.

But that's exactly what's happened. A report released last year by the ACLU found that a racial gap in low-level pot arrests exists nationwide, "in all regions of the country, in counties large and small, urban and rural, wealthy and poor, and with large and small Black populations."

Chicago has one of the largest grass gaps in the country, even after efforts to address it.

Two-and-a-half years ago Fritchey and a group of aldermen held a press conference to call for easing marijuana penalties in Chicago and Cook County. That led to a new city ordinance allowing police to issue tickets for low-level pot possession instead of making arrests for it.

In the time since, though, pot has essentially been decriminalized in some parts of town while in others it's still punishable by arrest and lockup. While the overall rate of marijuana busts has dropped, police still make 44 arrests for low-level possession a day, and almost eight of every ten involve African-Americans. Misdemeanor marijuana possession is the leading arrest category in Chicago by a long shot, costing at least 46,000 police hours and $23 million in the city alone last year.

The ACLU study found that Illinois was spending more than $200 million annually on low-level pot busts.

Some state legislators have taken notice. At least three bills have been introduced in the house this year that would ease penalties for marijuana possession across Illinois, though none has gained traction.

Meanwhile, state regulators are moving slowly and cautiously toward setting up a medical marijuana program that was authorized to start at the beginning of this year. Advocates stress that the medical program is meant to help seriously ill patients, but it's also widely viewed as a pilot program for legalizing recreational marijuana.

Several Chicago aldermen have also vowed to get the City Council to look into legalization. "I think there's broad public support for it," says 1st Ward alderman Proco Joe Moreno.

What's clear is that it's now considered a smart, progressive political move to call for marijuana reforms, even if they don't advance. Fifty-eight percent of Americans back legalizing marijuana, the largest share ever recorded, according to an October Gallup poll.

Officials believe the figure is much higher in the Chicago area.


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## 7greeneyes (Apr 28, 2014)

h*MP*p://www.columbiatribune.com/news/local/talk-of-legalization-pervades-missouri-cannabis-conference/article_67064c5e-cdc1-11e3-bfe5-10604b9f6eda.html




*Talk of legalization pervades Missouri Cannabis Conference*​

Attendees at the Missouri Cannabis Conference, held Saturday at the University of Missouri campus, agreed that simply by talking about marijuana they are benefitting the legalization movement.

The daylong conference  sponsored by several groups, including Show-Me Cannabis, NORML and the MU student chapter of NORML  included speakers ranging from a state legislator to national marijuana legalization advocates.

Mason Tvert, communications director for the Marijuana Policy Project, offered the keynote address. He said multiple times during his address that his experience is that the more people talk about an issue, the easier it is for them to understand and come to accept change.

Tvert has been part of the marijuana legalization effort in Colorado and continues to advocate for legalization in other states through talks such as the one he gave yesterday at MU. Tvert also has appeared on multiple cable news networks, including MSNBC, HLN and Fox News, advocating for the cause.

During his talk, Tvert explained that he and the Marijuana Policy Project channel the discussion "solely on pot being safer than alcohol." He said the majority of people who agree with that idea also agree with legalization.

So, the discussion starts with what Tvert calls "education" on viewing marijuana as a "safer alternative."

One of the most important places those types of discussions should take place is in college, he said.

"It's the perfect setting because binge drinking is a huge thing," he said.

Tvert also noted marijuana legalization would generate tax revenue and do away with the black market, but he said although "those are great arguments, those can't be the first argument you make."

"The places that are having these discussions are where the support is growing," he said.

Rep. Paul Curtman, R-Pacific, spoke before Tvert. Curtman chairs the House Downsizing State Government committee, which has heard from Show-Me Cannabis and other pro-marijuana groups multiple times during a statewide tour last year gauging issues that matter to the public.

Curtman spoke about his involvement as a co-sponsor of a bill about the production of industrial hemp, which received a stamp of approval from the House Economic Development Committee this week.

John Payne, executive director of Show-Me Cannabis, said he considered the conference to be successful, and he hopes everyone who attended shares what they learned with others.

"Obviously, we don't need to communicate to the people in this room the importance of what we're doing," Payne said. "They know it. But they need to tell others."


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## 7greeneyes (Apr 28, 2014)

h*MP*p://guardianlv.com/2014/04/nevada-next-to-legalize-cannabis/




*Nevada Next to Legalize Cannabis*​

Washington state and Colorado recently legalized the use of Cannabis for recreational use, and now Nevada might be doing the same. If the pro-marijuana group who filed the petition have anything to do with it Nevada will be next to legalize cannabis. They must acquire 101,667 signatures by November 11. If acquired, voters will most likely vote on this issue in 2016. The legislators will decide in 2015 whether to reject or accept the petition. If rejected it will then become up to the voters in 2016.

Joe Brezny, executive director of the Nevada Cannabis Industry Association (NCIA), is the one who filed the petition with the Secretary of the State in the Las Vegas office. According to Brezny the law of medical marijuana will not change. What will, however, change is the right to use it for recreational purposes. It would be similar to Colorados law. The user of course would have to be 21 or older to purchase the legalized cannabis. Also, there will be a one ounce limit.

People seem to more open when they realize it will not be legal for just anyone to buy. Currently, in the state of Nevada if a person is caught with less than an ounce of marijuana the legal ramifications are six-hundred dollars for a first time offense if the person is over 21 years old. If they are under 21 years old, the legal ramifications are higher as, it is considered a class-E felony with one to four years in jail, and a five-thousand dollar fine. Most are put on probation for first and second time offense.

A poll in 2013 showed that there was a good support for legalizing it next in Nevada with 54 percent for legalizing cannabis. If passed it would require a 15 percent sales tax. Of course, it is too early to predict an exact number in sale taxes, but Brezny thinks it could easily rival Colorados one million weekly sales tax. This will bring a lot of needed revenue for the state if the law is passed. The NCIA is confident it will pass as the support for legalization has grown substantially since 2002. In 2002 they only had the support of 39 percent of voters.

Last year medical Cannabis dispensaries were put into place thanks in part to Senator Tick Segerblom (D) and Senator Mark Hutchison (R). It only seems logical for the next step to be legalizing Cannabis in the silver state. The true goal is to get it legalized to show the public it is nothing to be afraid of according Brezny. If you compare it to gambling it is no less scary. It may have been hard to get used to, but now it is a normal pastime in the silver state.

Other states to be next in line will probably be Alaska, Arizona, California, Oregon, Maine, Massachusetts, Montana, Rhode Island and Vermont. All of these states have made great strides towards legalizing cannabis. It makes sense that a state like Nevada will be the next in line to legalize cannabis. By the time they get ready to vote on this issue people should not be afraid as the medical marijuana will be up and running smoothly by then. It is really no longer a right or left side issue, both sides seem to be coming together to support each other in this issue.

Opinion by Heather Tillman


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## 7greeneyes (Apr 28, 2014)

h*MP*p://www.marketwatch.com/story/cannabisfn-weekly-420-brings-cannabis-further-into-the-mainstream-2014-04-28?reflink=MW_news_stmp




*CannabisFN Weekly: 4/20 Brings Cannabis Further into the Mainstream*​

Apr 28, 2014 (ACCESSWIRE via COMTEX) -- Whitefish, MT / April 28, 2014 / The Marijuana Index(tm) moved higher last week thanks in large part to GW Pharmaceuticals plc's GWPH +1.66%  ~40% move higher. With a $937 million market capitalization, the company accounts for nearly 21% of the index. The move higher helped offset CannaVEST Corp.'s CANV -5.80%  ~68% and came a time when marijuana advocates celebrated the 4/20 holiday across the nation.

GW Pharmacueticals plc was perhaps the most important story of the week for cannabis investors after Morgan Stanley initiated coverage on the stock with an Overweight rating and $103.00 per share price target. Analyst David Friedman indicated that the firm's cannabis platform "has strong potential with the epilepsy program driving valuation" accounting for 90% of estimated peak revenue.

Cannabis regulatory initiatives also continued to gain ground last week. Iowa became the 21st U.S. state to legalize cannabidiol ("CBD") for the treatment of epilepsy, which is significant given the state's conservative stance on drug policy. With the first FDA supported CBD clinical trials already underway, these moves could force the federal government to reevaluate its hardline stance on the drug.

Cannabis investors may also want to take note of the upcoming GreenRush Financial Conference on May 7, 2014 at the Vancouver Convention and Exhibition Centre East, Ballrooms A/B/C in the Pan Pacific Hotel. The conference will feature insightful speakers, government, health and industry specialists, public and private companies, fund managers, bankers, brokers, analyst and media.

What's New?

- Abattis Aims to Raise $2M after 420Investor Dinner - Abattis Bioceuticals Inc. ATTBF +4.05%  announced plans to raise $2 million in a private placement following its successful showing at the 420Investor dinner.

- Iowa Senate Approves Medical Cannabis Bill - The traditionally conservative state of Iowa voted 36-12 approving a bill that would decriminalize medical cannabis oil for epilepsy treatment.

- DC Brands Targets Lab Testing in Colorado - DC Brands International Inc. HRDN +20.00%  announced that it's pursuing acquisition opportunities targeting the laboratory testing segment of Colorado's cannabis industry.

- Swedish Study Finds Cannabis Reduces At-Risk Drinking - Those who consume cannabis 2-3 times per week were found less likely to engage in at-risk drinking behavior, according to Swedish researchers.

- NexGen Aims to Open Hollywood Dispensary in June - Next Generation Energy Inc. NGMC +23.08%  announced that its cannabis subsidiary executed a lease agreement and expects to sell medical cannabis by June 1, 2014.

What to Watch This Week

Morgan Stanley's initiation of GW Pharmaceuticals plc GWPH +1.66%  represents a step forward in legitimizing the industry following a string of trading halts. Traders and investors should watch for ongoing stabilization in the market, particularly as larger names with established medical cannabis programs gain traction. The ongoing support for CBD legalization in particular bodes well for that segment's future.


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## 7greeneyes (Apr 28, 2014)

h*MP*p://seekingalpha.com/article/2169183-recent-pot-suspensions-the-fate-of-advanced-cannabis-solutions-and-full-circle-capital




*Recent Pot Suspensions: The Fate Of Advanced Cannabis Solutions And Full Circle Capital
*​

Summary

What solutions does Advanced Cannabis Solutions provide?

The SEC has suspended five marijuana stocks in the last two months, including Advanced Cannabis, all for different reasons.

Recent filings suggest that the company will purchase a significant amount property in the next month.

Advanced Cannabis could do this by either forcing $10 million of warrants to exercise, or borrowing money from Full Circle Capital. Either way, there are options for expansion.

Sometimes those easy investments turn out to be much more complicated than they had originally appeared. In my first article on Seeking Alpha, I pointed out a disparity between the share price of Full Circle Capital (FULL) and what I thought would be the intrinsic value of the company after accounting for its investment in Advanced Cannabis Solutions (OTC:CANN). My conclusion was that I needed only to wait for the shares of FULL to rise to my newly calculated NAV. Even if the shares of CANN were to fall, the math was simple enough that one could figure out how much the investment was worth to Full Circle's bottom line at any given time, and trade in and out of the position accordingly. At the time, shares of FULL were giving a 90% discount to the BDC's investment in CANN. By keeping a watchful eye on both of the stock prices, anyone could be sure that the shares of FULL were continuing to trade at this discount.

That was until the SEC temporarily suspended the stock, it's the 4th halt of the marijuana sector.

Full Circle's stock plummeted as investors tried to figure out the complete extent of the damage.

Meanwhile, CANN just stopped trading.

So much for simple math.

Since the suspension has ended, shares of Advanced Cannabis Solutions have traded in the grey market in the teens and the twenties. With FULL trading at $8, the thesis of the first article is still intact. However, all of this turmoil has caused me to become a "green" investor. I can no longer be content with an investment in Full Circle without knowing the ins and outs of possibly its most lucrative investment.

This article will look at three separate issues. The first segment will give a brief overview of what Advanced Cannabis Solutions does. The second will examine the trading suspension CANN shares were placed under by comparing the language of all the SEC suspensions in the marijuana industry over the last two months. The final section will look at the recent developments in the company, its future growth plans, relationship with Full Circle, and examine Advanced Cannabis Solutions' 10-K filed on April 16.

Introduction to ACS

For those new to Advanced Cannabis Solutions, they have a three pronged business plan working with licensed and regulated clients in the marijuana industry, primarily in Colorado. The core aspect of business model is to own the property that marijuana is grown and sold on. By signing triple net leases with growers and dispensaries, the company can keep its hands more clean in an ever-changing regulatory environment. Secondly, the company is looking to supply ancillary products such as baggies and plant nutrients. The third line of business sends its management to consult other marijuana businesses in the industry for a fee. It is important to note that the company does not sell marijuana, and does not have any plans to do so in the future.

The company has made progress on all three major business lines.

For $450,000, the company purchased and rented out a commercial grow facility in Pueblo County.

They have signed a distribution agreement with the Alison Group to provide Child Resistant Reclosable Easy Open Bags for dispensaries in Colorado.

An investor group in Canada has retained the consulting services of the company for $120,000.
These are initial examples of contracts the company intends to sign in the upcoming year. The long-term success of the business is dependent on the company continuing to find suitable projects and partners with which to conduct business. Funding acquisitions via future cash flows, debt, and equity raises can help the company grow into its lofty fully diluted valuation of around $350mm.

Management has experience in both the commercial real estate and medical marijuana industries. On paper, this team is particularly suited to thrive with this business model. The pot sector has a plethora of players, but CANN investors are counting on the execution of the management team to efficiently use capital to partake in the explosive growth in the legal use of marijuana.

Both the business plan and management were given a vote of confidence in January when Full Circle Capital, a business development company, extended them a conditional $30 million secured line of credit. The first $7.5 million is in 12% notes convertible into common shares at $5 apiece. This deal granted both the management team and its business plan a certain amount of credibility, as investors assumed that Full Circle Capital had done a large amount of due diligence before stepping into this sector.

SEC Brings Down the Hammer

On March 26th, the SEC suspended trading of shares of Advanced Cannabis Solutions. By market cap, this was the largest suspension of any stock in the pot sector. The stocks that have been suspended by the SEC recently besides CANN include Growlife Inc. (OTCHOT), Citadel EFT, Inc. (OTC:CDFT), Aventura Equities, Inc. (OTC:AVNE), and Petrotech Oil & Gas, Inc. (OTCTOG). The SEC gives different reasons for the suspension of each company. These are the relevant statements from the SEC's press releases for the reason each marijuana stock was suspended, in reverse chronological order.

PHOT: The Commission temporarily suspended trading in the securities of PHOT because of questions that have been raised about the accuracy and adequacy of information in the marketplace and potentially manipulative transactions in PHOT's common stock. The Commission acknowledges FINRA's assistance in this matter.

(There is a great discussion of PHOT's suspension in this SA article.)

CANN: The Commission temporarily suspended trading in the securities of Advanced Cannabis due to a lack of current and accurate information concerning the securities of Advanced Cannabis. There are questions regarding whether certain undisclosed affiliates and shareholders of Advanced Cannabis common stock engaged in an unlawful public distribution of securities.

(Undisclosed affiliates, and not questioning operations)

CDFT: The Commission The Commission temporarily suspended trading in the securities of Citadel because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the company's business operations and assets. In particular, there are questions regarding the accuracy, completeness, and validity of Citadel's several recent press releases, Form 8-Ks, and other public statements since January 2014 relating to transactions involving standby letters of credit ("SBLC's"), see Prime Bank Instrument Fraud, TreasuryDirect.gov (U.S. Department of the Treasury), www . treasurydirect.gov/instit/statreg/fr[/url]... (last visited Mar. 20,2014) and Brazilian Letras Tesouro Nacional ("LTN's"), see Frauds Related to Public Bonds,Tesouro Nacional (Brazil), www . tesouro.fazenda.gov.br/en/about-the-... (last visited Mar. 20, 2014).

(Information concerning operations and assets)

PTOG: The Commission temporarily suspended trading in the securities of PTOG because of questions that have been raised about the accuracy and adequacy of publicly disseminated information concerning, among other things, the company's operations. The Commission acknowledges FINRA's assistance in this matter.

(Notice the difference between "operations" and CANN's "securities")

AVNE: The Commission temporarily suspended trading in the securities of Aventura because of questions concerning the adequacy and accuracy of publicly available information about Aventura, including, among other things, its financial condition, the control of the company, its business operations, and trading in its securities.

(Notice operations again, as well as financial condition and control)

Take what you will from each statement, but the SEC has not seemed to question the operations of either CANN or PHOT. This is not to condemn any of the above companies, but there is a stark difference and specificity to each SEC press release.

The SEC definition of an affiliate "is a person, such as an executive officer, a director or large shareholder, in a relationship of control with the issuer." Therefore, any large shareholder, and not just management, could be the person who triggered the SEC investigation.

In response to the suspension, Advanced Cannabis stated this in their press release.

All of the shares owned by the Company's officers and directors are restricted and have not traded in the public market.

There are many shares held by others who were involved in the process of transitioning the former company, ProMap, into the company as it currently exists today. There were also many accredited investors who bought shares in a private placement last year. I will not speculate on who sold shares legally or illegally, but an SEC investigation could have been initiated without even the appearance of malfeasance by current management. Alan Brochstein of 420 Investor, one of the most public faces of MJ investing, was paraphrased by a reporter "that this is most likely a third-party problem with an individual investor breaking the rules."

The SEC does not comment any further on trading suspensions, even when they have concluded their investigation. Just because the suspension has been lifted does not mean that CANN is in the clear. So far, management has been proactive, and come out and flatly said that they have not sold, which is a positive. I will not pretend to have any insider information or perspective in this matter. However, contemplating the SEC suspension, management statements, and company filings, I am inclined to agree with Mr. Brochstein.

Life After Suspension

Advanced Cannabis Solutions released its 10-K on April 16th. There were several revelatory statements in its audited yearly filing. Of particular importance to investors of Full Circle, the details of the requirements to obtain the funding are more fully spelled out.

Full Circle will provide us with the $7.5 million when:

Full Circle agrees on the location of property to be purchased;

The property's appraised value is satisfactory to Full Circle;

A Phase I environmental inspection is completed to the satisfaction of Full Circle; and

We are able to provide a first priority lien on the property to Full Circle.

Further, Advanced Cannabis Solutions revealed that they are expecting to purchase property sooner rather than later.

We have identified four properties that are currently under review for purchase and leaseback to licensed marijuana growers in Colorado. These projects include the purchase and leaseback of existing, currently operating facilities, as well as proposed new construction projects. These opportunities are in Denver and Pueblo counties, Colorado and can be purchased/constructed in the range of $750,000 to $5 million for each project."

It is anticipated that purchase contracts will be signed in the next 30 days with closing expected 45 to 60 days following contract execution.

As people familiar with the situation know, Full Circle Capital has exclusive rights to all debt financing for the first $30 million, and right of first refusal for any additional debt financing past that initial investment.

Also revealed in the 10-K is that Advanced Cannabis Solutions has 973,000 warrants out for investors to purchase shares at $10 each. Management has the ability to force them to exercise at any time, and this could be their first option to fund up to $9.73 million in real estate purchases. If they achieve the 25% ROI the CEO has talked about, Advanced Cannabis Solutions could be one of the first cash flow positive public marijuana companies by the end of the year. While this would add a million shares to the count, I think it would be a great outcome for the startup company. Now is as good a time as any to use that cash.

After the warrants are exercised, I assume that Full Circle will be lending the first payment of $7.5 million for any future real estate deals, as I don't think an equity raise would be in the cards at this time considering the recent suspension of the stock.

There is Always a But...

Following the suspension of the stock, Full Circle released a statement that lead many to wonder if they would fund any portion of the loan at all.

Full Circle Capital Corp. entered into a purchase agreement with Advanced Cannabis Solutions, Inc. to fund $30.0 million of senior secured convertible notes in January 2014. In conjunction with the closing of this agreement, Full Circle Capital purchased for $500,000 warrants to purchase 1.0 million shares of currently unregistered common stock of American Cannabis stock at a $5.50 per share exercise price. To date, these warrants have not been exercised, transferred or sold. Further, none of the senior secured convertible notes have been funded and Full Circle Capital retains the contractual right to fund these notes at its sole and absolute discretion.

This strong language, while clarifying its financial obligations to Advanced Cannabis, made investors question if Full Circle would just wash its hands of the situation completely. Full Circle makes perfectly clear it has no obligation to provide another penny to Advanced Cannabis Solutions past the $500,000 it paid for the warrants when the deal was signed in January. One cannot be sure what will happen until Full Circle either funds a deal, or management informs investors about the business relationship in a press release or on the earnings call in May.

For the foreseeable future, these two companies are intertwined in what could be a very profitable partnership, if they can get this business on its feet.

For its part, during the suspension, Advanced Cannabis Solutions seemed to go about their business. They moved into a new office and signed the aforementioned supply agreement with a provider of special "baggies" for the dispensation of marijuana. This all bodes well for the future of the company, but big questions have yet to be answered.

What We Don't Know

Is management shooting straight with investors and the SEC?

Can management prove and scale its business model in the coming months? Will they responsibly fund their growth?

Is Full Circle Capital going to fund the purchase of properties for Advanced Cannabis Solutions?
We should know all of these answers within the next few months.

*Editor's Note: This article covers a stock trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Additional disclosure: This is not investment advice or an offer to invest. This article is for general information purposes only.*


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## 7greeneyes (Apr 28, 2014)

h*MP*p://guardianlv.com/2014/04/medical-cannabis-for-alzheimers-treatment-in-new-mexico/




*Medical Cannabis for Alzheimers Treatment in New Mexico*​

New Mexicos Medical Advisory Board for the states Medical Cannabis Program has unanimously voted to add degenerative neurological disorders, like Alzheimers Disease (AD) to their list of eligible medical conditions for treatment. For the 30,000 residents who suffer from AD, this is good news. The final decision will be made by the states Secretary of Health. Thirteen other states have already included the disorder.

It is already known that the use of medical cannabis aids in appetite stimulation and improved sleep patterns. Since loss of appetite, even Anorexia Nervosa, and agitated sleep issues are common symptoms of AD, studies have been done to see if medical cannabis can alleviate these problems for AD patients. The results have been positive.

Another problematic medical condition that comes with AD is chronic brain inflammation. Ohio State University professor, Gary Wenk, has researched the effects of various pharmaceuticals and found a consistent failure in the reduction of inflammation. Then he began looking at medical cannabis and the results were positive. In fact, his studies showed cannabis to be the most effective brain anti-inflammatory.

The research continues to support the claims that medical cannabis is beneficial to AD patients. By administering medicinal quality cannabis, a significant reduction in the progress of AD is present. These results are directly linked to marijuanas prime ingredient, Tetrahydrocannabinol (THC). Medical researchers have found that THC decreases and prohibits protein deposits from forming in the brain. The protein deposits have been identified as largely causative of degenerating nerves. The formation of sticky amyloid plaques, a more specific name for the protein deposits, is what is responsible for the mood swings, loss of memory, disorientation and neuronal impairment evident in AD sufferers.

The time is right for medical cannabis to be offered as treatment for Alzheimers in New Mexico. The Medical Advisory Board is carefully looking toward the future of the states AD population. Not only is there a large Hispanic community in the state, but New Mexico is also home to many military veterans. Studies have shown that elderly Hispanic people are more likely to develop dementia than are Anglo citizens. As well, veterans who suffer from Post Traumatic Stress Disorder (PTSD) are more susceptible to AD than are veterans who do not experience PTSD.

For elderly people who have little to no experience with marijuana consumption, the idea of smoking a joint is not feasible. However, many users of medical cannabis agree that smoking it does not optimize the positive effects. Either taking the medicine orally in edibles or inhaling vapors through the use of a vaporizer result in more improved and longer lasting results. The use of edibles is most helpful to chronic pain sufferers and those who are experiencing sleep disruptions. Vaporizing medical cannabis results in a longer and deeper effect than smoking. It is also recommended for anyone who already has respiratory or lung conditions.

It would seem that medical cannabis for the treatment of Alzheimers Disease is imminent in New Mexico. Many people will be given the opportunity to see their symptoms relieved and some may even be able to evade developing the condition. Educated compassion and progressive research are continuing to pave the way for further advances in the use of medical cannabis.


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