Mj news for 06/17/2015

[7greeneyes]

http://www.npr.org/2015/06/17/41342...gulated-pesticide-use-among-marijuana-growers

Concern Grows Over Unregulated Pesticide Use Among Marijuana Growers​

The marijuana industry has a pesticide problem. Many commercial cannabis growers use chemicals to control bugs and mold. But the plant's legal status is unresolved.

The grow room at Medical MJ Supply in Fort Collins, Colo., has all the trappings of a modern marijuana cultivation facility: glowing yellow lights, plastic irrigation tubes, and rows of knee-high cannabis plants.

"We're seeing a crop that's probably in it third or fourth week," says Nick Dice, the owner.

The plants are vibrantly green, happy and healthy. And Dice says that's because the company's taken a hard line on cleanliness.

"We have people who that's their only job is to look for any infections or anything that could cause potential damage to the crop," he says.

As any farmer will likely say, damage to the crop equals damage to the bottom line. Dice's employees used to spray the crop with mild chemicals. They would switch between multiple pesticides and mildew treatments, treating anywhere from every three to four days.

Dice says he's seen other operations crumble as their cannabis succumbs to mildew or bugs. Pest controls ensure a good yield. And when it comes to cannabis, yields really matter.

Dice estimates the grow room is worth as much as $180,000. Protecting that yield is hard work. That's why many growers in states that have legalized recreational or medical marijuana use chemicals. But it's the federal government that tells farmers which pesticides are safe to use. And so far, the feds wants nothing to do with legalized marijuana. Colorado State University entomologist Whitney Cranshaw says that's left growers to experiment with little oversight.

"In the absence of any direction the subject of pesticide use on the crop has just devolved to just whatever people think is working or they think is appropriate," he says.

Tobacco farmers, for example, have a stable of pesticides the government says are safe to use. But Cranshaw says marijuana growers have none.

"Sometimes they've used some things that are inappropriate, sometimes unsafe," he says.

Brett Eaton is a plant expert with American Cannabis Company, a Denver-based consulting group. He's concerned about what the pesticides are doing to the product as well as the consumer.

"Anybody can get their hands on harmful chemicals, and they can just spray away all the way up until the last day of harvest," he says.

Safety concerns led Denver officials to place a hold on tens of thousands of marijuana plants earlier this year, pending an investigation. Colorado doesn't require growers to test the crop for traces of pesticides before being sold. But state agriculture officials did recently release a list of pesticides deemed appropriate for use on cannabis. Washington state, Nevada and Illinois have similar lists. Eaton says regulators are only playing catch up.

"Other agricultural industries already have policy in place for the safe use of spraying certain pesticides and fungicides," he says. "This being a new industry, it hasn't been addressed yet."

And with more states turning marijuana into a legal commodity crop, it'll take a mix of policy, science and industry self-regulation to figure out what's appropriate, and what's not.

 

[7greeneyes]

http://www.pennlive.com/midstate/index.ssf/2015/06/sb_3_folmer_baker_regulations.html

Here are the facts on medical marijuana in Pa.​

Q: What's the status of medical marijuana in Pennsylvania?

A: A bill to allow it, SB 3, was approved 40-7 in the state Senate. The bill moved to the state House, where it was sent to the health committee. The health committee chair, state Rep. Matt Baker, R-Tioga, opposes the bill, and says he won't allow a vote. Meanwhile, some House members say the bill would easily pass if given the chance. Supporters in the House are exploring ways to "unlock" the bill. Gov. Tom Wolf says he'll sign it if it reaches his desk. Medical marijuana has strong public support. A Quinnipiac University poll in March concluded 85 percent of residents favor allowing medical marijuana. It found overwhelming support in every age, gender and partisan group.

Medical marijuana in Pa.: Entrepreneurs position, prepare for new industry

Q: If there's such strong support, why is there a delay in even holding a vote?

A: Opponents including Baker argue there is a lack of research showing benefits of marijuana. Baker also believes it will be a gateway to more drug addiction.

Q: It it true there's a lack of research?

A: It depends who you ask. It's fair to say there is a lack of studies that meet the standards commonly used in the approval of drugs in the United States. There's good reason for that — the U.S. government lists marijuana as a Schedule I drug, meaning it has no medical benefit, high potential for abuse, and can't be used safely even under a doctor's supervision. That makes it hard to conduct marijuana research in the United States. Still, there's widespread agreement marijuana doesn't belong on Schedule I. And about 20 years ago researchers discovered a system of receptors in the brain which respond to various chemicals in marijuana. (This is the endocannabinoid system.) That prompted a burst of research around the world.

Q: What does the research say?

A: According to WebMD, the more recent research includes 13 studies done at the University of California in San Diego between 2000 and 2010. The conclusion was that chemicals contained in marijuana may be useful medicines for some conditions, and deserve further research. Since the 1960s, a great deal of research has taken place in Israel, where medical marijuana is legal, and where doctors, and the government, believe marijuana has assorted proven medical benefits. Many organizations have taken a stance on medical marijuana, and their positions vary. For example, the Pennsylvania Medical Society, which represents doctors, opposes legalizing medical marijuana at this point, citing lack of research. However, the medical society favors removing marijuana from Schedule I, to open the door to more research. The Pennsylvania State Nurses Association supports the legalization bill. At a recent local forum on the subject, Dr. Robert Campbell, the president of the Pennsylvania Society of Anesthesiologists, said doctors presently have no way of knowing exactly what marijuana does inside the body, or even what dose would be appropriate. Dr. William Trescher, the director of pediatric neurology at Penn State Milton S. Hershey Medical Center, acknowledged a shortage of conventionally-accepted studies, but argued there are sufficient studies, along with the experiences of many people, to warrant making marijuana available as a medicine. Trescher treats children with severe seizures which can't be controlled with approved medications, and who suffer dangerous side effects from those powerful drugs. He believes parents of those children need the option of trying medical marijuana-derived treatments, which seem to be helping some children in Colorado.

Q: What exactly would SB 3 allow?

A: It would allow doctors to prescribe marijuana-derived substances to treat a dozen conditions, including cancer, epilepsy and seizures, ALS, multiple sclerosis, post traumatic stress disorder, HIV/AIDS and glaucoma. In addition, the Pennsylvania Department of Health could authorize additional conditions.

Q: Would children being treated for seizures be given marijuana to smoke?

A: No. Smokable forms of marijuana aren't allowed by SB 3. Marijuana-derived medications would largely take the form of oils and liquid extracts, which could be taken in the form of droplets, or vaporized, or consumed in several other approved methods.

Q: What would prevent medical marijuana from being used by people who aren't sick and just want to get high?

A: People under the treatment of a doctor who believes medical marijuana is appropriate for them would obtain a medical cannabis card. Growers, processors and dispensers would be licensed, and their employees would be certified. Presumably, this would allow people who possess marijuana for non-approved purposes to be prosecuted.

Q: Where would the medical marijuana come from?

A: Pennsylvania. SB 3 calls for licensing 65 growers, 65 processors and 130 dispensaries.

Q: Would medical marijuana be taxed?

A: Yes. The Pennsylvania bill calls for a six percent "surcharge" which would be paid before the medical marijuana is purchased by the patient.

Q: How many other states allow medical marijuana?

A: 23 states and Washington, D.C.

 

[7greeneyes]

http://www.webmd.com/mental-health/...arijuana-may-not-raise-pot-use-by-teens-study

Legalizing Medical Pot May Not Raise Teen Use​

TUESDAY, June 16, 2015 (HealthDay News) -- When states legalize medical marijuana, this does not lead to greater use of the drug by teens, a new study suggests.

The findings are published June 15 in The Lancet Psychiatry.

"Our findings provide the strongest evidence to date that marijuana use by teenagers does not increase after a state legalizes medical marijuana," study author Deborah Hasin, professor of epidemiology at Columbia University Medical Center in New York City, said in a journal news release.

Since 1996, 23 states and the District of Columbia have legalized medical marijuana, raising concerns among some that this may increase teens' acceptance of the drug and their access to it.

In their study, Hasin's team looked at data collected from more than a million teens, aged 13 to 18, across 48 states between 1991 and 2014. The researchers found no significant difference in teen marijuana use in the 21 states that had passed medical marijuana laws by 2014, before and after states made such moves.

Hasin noted, however, that in "the states that passed medical marijuana laws, adolescent marijuana use was already higher than in other states."

While marijuana use among teens was higher in states that went on to allow medical marijuana, rates of teen use in those states did not rise further after the states legalized medical marijuana, the study found.

The study was funded by the U.S. National Institute on Drug Abuse, Columbia University Mailman School of Public Health, and the New York State Psychiatric Institute. It was also presented Tuesday in Phoenix at the annual meeting of the College on Problems of Drug Dependence.

One expert in addiction services stressed, however, that marijuana should not be viewed as a "harmless" substance, especially for teens.

"In our experience working with adolescents, marijuana is usually the first drug of experimentation," said Loretta Hartley-Bangs, program director of the Mineola Community Treatment Center at the North Shore-LIJ Health System in Mineola, N.Y.

Teens often "express the belief that [marijuana] is not harmful compared to other drugs and it is non-addictive," she said. "Unfortunately, parents often believe the same -- while they do not want their children smoking anything, they are relieved that they are not using 'dangerous' drugs such as heroin."

But Hartley-Bangs said there's a "hierarchy of drugs," with each drug rising in level of danger, "which allows those involved to feel some sense of safety."

She stressed that "we need to be careful not to give a mixed message regarding the safety of medical marijuana. Like other prescription medication, there are valid medical uses for it, but it can still be abused."

Dr. Kevin Hill works in the division of alcohol and drug abuse at McLean Hospital in Belmont, Mass. In an accompanying journal editorial, he wrote that "the growing body of research that includes this study suggests that medical marijuana laws do not increase adolescent use."

Hill believes that "future decisions that states make about whether or not to enact medical marijuana laws should be at least partly guided by this evidence."

 

[7greeneyes]

http://www.thecannabist.co/2015/06/...na-indian-tribe-flandreau-santee-sioux/36247/

In South Dakota, Indian tribe plans to grow, sell marijuana by Jan. 1​

FLANDREAU, S.D. — An Indian tribe in eastern South Dakota plans to start selling marijuana for recreational and medicinal purposes by Jan. 1, becoming the first tribe in the state to legalize the sale of cannabis across its whole territory.

Leaders of the Flandreau Santee Sioux Tribe said Tuesday that marijuana will be cultivated and sold at a single, indoor site on the reservation, after the tribe’s council last week approved it to be grown and sold on tribal land. That follows a federal decision last year that gave tribes the power to grow and sell pot under some conditions.

“It looks like it’s getting a lot of momentum,” tribal president Anthony Reider said. “The more we dug into it we realized that for us to be able to get ahead of it and get into it early would be a good thing.”

While some tribes view marijuana as an economic opportunity, others fear it could lead to negative public safety and health consequences. A district within the Pine Ridge Indian Reservation in western South Dakota legalized the use and cultivation of marijuana this year, but has made no further plans. The tribal council on Pine Ridge — which is in dire need of economic opportunities but also has high rates of violence and alcohol addiction — rejected a proposal to legalize pot on the full reservation last year.

The Flandreau Santee Sioux Tribe, which already operates a casino on its land, is looking at this business operation as a source of revenue that would allow the community to develop housing, build an addiction treatment center and improve the local clinic, among other projects. Tribal leaders estimate a monthly profit of up to $2 million a month.

But for all the hype that the decision may create among pot enthusiasts or individuals who have a prescription for the drug, South Dakota Attorney General Marty Jackley has warned that non-Indians would still be breaking the law if they consume pot on the reservation.

Jackley said there are some reservations growing and selling pot in states where either recreational or medical marijuana is legal. But he said he is not aware of any other state attorney general dealing directly with the legalization of pot in a state where marijuana is against the law other than Oklahoma and Nebraska, which have jointly filed a lawsuit on the matter.

Reider said the tribe is working with a company that has growing facilities in Colorado and California that will develop the cultivation site on the reservation and advise the tribe on the operation. Reider declined to name the company.

This all comes after the U.S. Justice Department outlined a new policy in December allowing Indian tribes, which are considered sovereign nations, to grow and sell marijuana on tribal lands as long as they follow the same federal conditions laid out for states that have legalized the drug. The Justice Department had no comment on Tuesday on the decision by the Flandreau Santee Sioux Tribe.

But for non-Native Americans, “it’s against law everywhere in South Dakota on tribal land or otherwise” to smoke marijuana, Jackley said, and “any changes in tribal laws wouldn’t affect any non-Indians or any non-tribal lands.”

For example, if someone smokes marijuana on the reservation and is later is pulled over on an interstate highway for driving erratically and marijuana is found in that person’s system, the fact that pot is allowed in tribal land won’t be a justification for its consumption.

The legalization of pot on the reservation came by a 5-1 vote. The no vote came from trustee Roxee Johnson, who said she is concerned about how the decision could affect children on the reservation and is generally wary about the federal decision allowing tribes to grow and sell marijuana.

“You know the money talk can draw you in,” Johnson said. “But why can’t we start with hemp? I want to go another route.”

 

[7greeneyes]

http://takingnote.blogs.nytimes.com/2015/06/16/colorados-unjust-marijuana-ruling/

Colorado’s Unjust Marijuana Ruling​

It took the Colorado Supreme Court a year to come up with the ruling, issued on Monday, that upheld the firing of a man who used medical marijuana legally under state law to help ease the pain he has suffered since a car accident left him paralyzed. A lot of that time had to be devoted to twisting the logic behind the decision.

There has been a lot of speculation about what the ruling means for Colorado’s legal marijuana industry, and other states that have permitted the use of marijuana for medical, and in a few cases, recreational, purposes.

But really it only makes one thing clear: the only solution to the pointless and profoundly damaging marijuana prohibition in this country is a federal solution. As long as the federal government continues not only to outlaw marijuana, but to classify it as one of the most dangerous narcotics, anti-prohibition efforts in states are subject to the sort of capricious ruling issued in Colorado.

In this case, Dish Network fired a worker, Brandon Coats, in 2010 after he underwent a random drug test that showed he was using marijuana. Mr. Coats said he used the drug away from his place of employment and during his own time, and claimed protection from a state law that prohibits firing workers for conducting “any lawful activity” outside the workplace.

Marijuana was legal for medical purposes in 2010 with the proper authorization, which Mr. Coats had. But the court said the law only applied to activities that were legal under both state and federal law.

There are signs that the ice is starting to crack a bit in Washington. In June, the conservative-dominated House of Representatives voted 242-186 to prevent the federal government from blocking states that want to permit medical use of marijuana.

But the country needs a real solution on this issue and that will only come when Congress repeals the federal marijuana laws, which have no real grounding in medicine or logic, and are racist in their application – destroying the lives of millions of African-Americans while having almost no impact on white Americans, who smoke pot with the same frequency.

States could then regulate, or ban, marijuana use as they chose, and localities could refuse to permit marijuana growing or sale within their borders, as some in Colorado now do.

This should not be a partisan issue. In fact, right-wing Republicans who claim to be modern-day Federalists should lead the demand for an end to marijuana prohibition.

 

[7greeneyes]

http://fusion.net/story/143559/how-a-west-african-tribe-uses-weed-to-get-healthy-and-high/

How a West African tribe uses weed to get healthy (and high)​

The medical benefits of cannabis have been touted for thousands of years. Even in the U.S.— before the days of Reefer Madness—cannabis was an active ingredient in many medications.

Today, inspired by regional legalization, researchers are finding new ways cannabis can restore health, from mitigating seizures in children with epilepsy to helping to fight cancer. But on the other side of the world, away from civilization and legalization debates, researchers have discovered that a West African pygmy tribe has been inadvertently relying on the sticky-icky to combat parasitic infections.

The study
Anthropologists from Washington State University studied the Aka population in the Congo basin to gain a better understanding of how a group of people cut off from society might use certain plant toxins, specifically marijuana, as medicine.

In order to do this, researchers collected self-reported data of cannabis use from all 379 members of the Aka population residing in the basin at the time. They found that 70.9 percent of males and 6.1 percent of females used cannabis. (Women said they don’t use the drug as much because they believe it will harm a fetus.)

Since female use was so low, they decided to focus on the men. Researchers then studied 62 Aka males, collecting stool samples every other day for about six days, over the course of three years. Urine and saliva were also collected.

Biomarkers for THC (known as THCA) were found in the 68 percent of the men, suggesting they had recently smoked. According to researchers, the THCA levels in the Aka were comparable to if not higher than chronic users in the West.

Researchers didn’t just measure for marijuana, though; they also analyzed stool samples for the presence of helminths—parasitic infections like hookworms and roundworms. Ninety-five percent of the men were, in fact, infected.

However, they found that the men who smoked cannabis had fewer parasites than men who did not. “Worm burden was significantly negatively correlated with THCA,” write the researchers, “which is consistent with the chemotherapeutic hypothesis of drug use.” Referring to the fact that cannabis is toxic to parasites.

Not only that, the men who smoked more cannabis were less prone to reinfection after being treated with an antihelmintic one year later.

Why it matters
As the researchers point out, the Aka men do not associate cannabis use with anti-parasitic properties—they are unconsciously self-medicating. Extrapolating on that idea, the researchers believe that humans’ cravings for certain substances may not just be about pleasure but biology.

“In the same way we have a taste for salt, we might have a taste for psychoactive plant toxins, because these things kill parasites,” said Ed Hagen, co-author on the study, in a press release.

In other words, as humans, it’s possible we’re drawn to certain plants for health reasons—which might explain why humans have had a relationship with cannabis for thousands of years.

“Although the conventional view is that drug abuse impairs immunity, thus increasing susceptibility to infection , if recreational drug use is explained (at least in part) by the drugs’ antiparasitic properties, this would suggest that the immune system plays a key role in regulating drug use,” the authors write in the study.

Indeed, the Aka’s rate of marijuana use (38.6 percent when averaging men and women) is much higher than the rest of world’s (3.9 percent of the global population aged 15 to 64 used cannabis in 2011), despite the expense for users. According to the study, Aka men make roughly $0.50 a day and a cannabis cigarette costs $0.10. The men end up spending roughly half their wages to feed the habit.

 

[7greeneyes]

http://seekingalpha.com/article/3265075-overbearing-cannabis-regulations-find-their-way-into-oregon

Overbearing Cannabis Regulations Find Their Way Into Oregon​

Summary

Senate Bill 964 Passed through the Oregon State Senate last month overwhelmingly.
The Bill piles very onerous and costly regulations on the cannabis sector that new firms may not be able to afford. Cannabis becomes legal in Oregon in July.
This offers an investment opportunity in regulatory compliance companies serving the cannabis space.
On May 27, 2015, the Oregon Senate voted on Senate bill 964. It passed by a vote of 29-1. The bill relates to the Oregon medical marijuana program, and looks to impose some severely limiting provisions on both producers and retailers in the space. At a time when the legalization of recreational marijuana has presented both trial and opportunity in and across the US, the Oregon bill seems to have added yet more complexity to an industry currently struggling to find its feet - not in terms of revenues and expansion, but in terms of compliance. With this said, what does the bill impose, what does it mean for the marijuana industry, and as investors, are there any opportunities from which we can draw benefit as a result of its implications?

So, first, let's take a quick look at the bill itself. In an article published on The Weed Blog subsequent to the passing of the bill, we were introduced to three of the provisions of the bill that contribute to the complications surrounding its passing.

The first, section 6, suggests that all medical marijuana growers must submit a report to the Oregon Health Authority every month and "include in this report the number of mature and immature marijuana plants, the amount of marijuana leaves and flowers being dried, and the amount of usable marijuana, in the person's possession." The second details the grow limits for sites within city limits, with a cap of 12 mature plants imposed regardless of how many patients are registered at that location. Finally, section 70 states, "the governing body of a city or county may adopt ordinances that prohibit the establishment of medical marijuana dispensaries or marijuana processing sites in the area subject to the jurisdiction of the city or county."

Marijuana will become legal recreationally in Oregon in July, having been voted in for legalization back in November. As has happened across a number of states in the US in which marijuana is already illegal, medical marijuana retail outlets and distribution channels will fall under the overarching regulatory umbrella of the marijuana industry as a whole - meaning both medical and recreational marijuana are subject to the same regulation.

The primary difficulties revolve around compliance and banking. It seems that before legalization takes hold and during it, legislatures are trying to make it nearly impossible to practically work. We have seen instances whereby established chains of marijuana retail stores have run into deep trouble with licensing and expansion compliance, based purely on technicalities. We have also heard stories of marijuana companies being unable to deal with banking organizations, and as such, having to hold and transport large amounts of cash.

The real issue is that many start-up businesses are trying to adhere to regulation, while remaining compliant with the intricacies of newly introduced rules, but are struggling to keep up with the mountain of restrictions, which many cannot afford. What happens in the future is irrelevant if businesses have to close down as a result of compliance issues in the present.

Where as investors can we draw opportunity from these issues? The answer lies in the handful of companies that are offering regulatory and compliance assistance based services to the marijuana industry.

First up, and a more conservative play is Robert Half International Inc. (NYSE:RHI). Traditionally, Robert Half is known for providing staffing and risk consulting services globally, with operations across three primary sectors - permanent placement, temporary and consultant staffing, and risk consulting and international audit services. More recently, however, the company has moved into the marijuana space. Robert Half is the parent company of global consulting firm Protiviti, the latter of which is reaching out to help financial institutions that wish to work with companies in the marijuana space. In its 2015 report titled "Servicing Legalized Marijuana Businesses: Weighing the Risks in Light of the FinCen Guidance," the company details the difficulties that so-called cannabusinesses face when it comes to remaining compliant, and outlines its insights into how the space may be improved.

Protiviti also details the services it offers firms looking to deal with cannabusinesses, which include helping and improving understanding of the area, developing red flags and enhancing monitoring procedures, developing and conducting training alongside education regarding the risks of the industry, compliance and internal audits. At just short of 70 years old and with a staff of 14,000, this company might offer the more risk averse investor looking to gain some small-scale exposure to the marijuana space an opportunity to do so, without subjecting the allocation to the volatility we have seen in the sector over the last year and a half.

Another exposure to the regulatory and compliance side of the cannabis industry - and more of a risky pure play - is Blue Line Protection Group, Inc. (OTCPK:BLPG). Initially, it started out as a service company that provided security guards and armored vehicles for protecting the high value cash stores and marijuana products that retail outlets hold on site. More recently, however, the company has moved into the compliance side of marijuana retailing.

Through its Blue Line Advisory Services arm, Blue Line provides regulatory compliance, bank activity reconciliation, sales tax and state franchise tax advice, and accounts reconciliation among a whole host of other services. The company recently hired Robin Swinney, founder of Park Pointe Financial Services in 2004 and financial services veteran, to its Blue Line Advisory Services team. Interestingly, alongside the announcement, the company reported that all of Park Pointe Financial Services clients will now be serviced by Blue Line Advisory Services bookkeeping professionals, so not only is this a human resources addition but the new hire brings with him a host of clients.

Now, it has to be pointed out, that Blue Line is a speculative allocation, and there are no guarantees that the company will succeed. It is a nascent service offering in a young and rapidly expanding industry, and if it can position itself correctly then we could see some upside potential, but the stock has had a very tough time of late and its current shareholders have suffered as a result.

The silver lining is that its revenues are growing quarter by quarter along with gross profit, though SG&A expenses have outstripped that growth. Revenue is likely to continue to increase as legalization spreads and Blue Line establishes itself in different markets, and if loss can be narrowed by higher revenues and more efficient business operations over the next two quarters, BLPG may finally find a bottom here after a detracted decline.

Back in March, Seeking Alpha contributor Debra Borchardt who also covers marijuana at Forbes, said the following of Blue Line, which I agree with:

This company appeals to the marijuana business owner who becomes overwhelmed with the daily problems associated with their line of business. Blue Line basically offers to take over all these aspects for a monthly charge.

Back in October, Blue Line said it was located in four states, had 70 employees and a market cap of $57 million. It isn't a profitable company and has lost money as it has grown. The company has also said it expects to continue losing money as it builds its business. I don't like this, but this isn't unusual for an early stage company.

Market cap has continued to fall since March while revenues continue to climb, as do losses. The question is, will small marijuana businesses being choked by regulatory stress call on Blue Line to take on the increasing burden? And if so, what will their market cap look like by the end of next year?

Conclusion

It is already extremely difficult for retail and production facilities to remain compliant across both the medical and recreational marijuana space in the US. On top of this, with the introduction of bills passed such as that recently passed in Oregon, it doesn't look like this area is going to streamline anytime soon. This offers us an opportunity to take a position in companies that facilitate regulation and compliance, and there are a couple of potential exposures currently on offer. Out of those discussed, Robert Half and its subsidiary Protiviti offers a far less risky exposure to the space, but with less upside if cannabusiness takes off. On the other side of the coin, we've got a risky opportunity in Blue Line, but one that offers a pure play exposure to marijuana regulation and compliance, at a very cheap price.

 

[7greeneyes]

http://www.thestreet.com/story/1318...rtfolio-viridian-capital-has-some-advice.html

Considering Cannabis for Your Portfolio? Viridian Capital Has Some Advice​

NEW YORK (TheStreet) -- For investors who want to put the cannabis industry into their portfolios, one investment firm is holding the first ever cannabis investment seminar. Scott Greiper, president of Viridian Capital, which is hosting the seminar Thursday at New York City's Javits Center, said there's tremendous upside in the space, but retail investors still need to be careful.

"Do a little bit more diligence than you might on other sectors," he said. "There are risks that are very specific to this industry." Medical marijuana is legal in just 23 states. Recreational usage is legal in four states, plus Washington, D.C.

For investors who are wary about investing in the cannabis space, there are opportunities in companies that are indirectly related to cannabis.

For example, Greiper recommends the lighting sector as a good way to capitalize on the cannabis business -- companies whose products are used to help the marijuana plant grow.

"A company we like in the sector is called Heliospectra (HLSPY)," Greiper said, noting that the company is a client of his firm. "They've developed a patented technology that can read how the plant absorbs different spectra of the light so they can actually control the rate of growth."

He also sees opportunities in the biotech arena.

"'In the marijuana space, biotech is very significant," he said, suggesting biotech today is where pharmaceuticals were 30 years ago. "CannapharmaRx (CPMD), another one of our clients, is a company we think is developing a very interesting positioning in the industry."

Finally, he points to security companies, which even legal cannabis sellers are in need of, "since this is an all cash business." Greiper points to Canna Security America, which he said will be public in the next 30 days. "They have the largest market share of protecting several hundred dispensaries across the United States."

So far, he noted, there's not an exchange-traded fund focused on cannabis. His own Viridian Cannabis Index, which tracks 75 stocks in the space, returned over 38% in 2014 and was up over 23% through the first-quarter of 2015. "We hope to turn that into an ETF at some point," he said. "Ultimately, the liquidity of the underlying stocks in the index have to support a publicly traded exchange, but we think we'll be there by the end of the year."