Global Ganja Report

We noted last year that a Seattle-based equity firm is planning to market "Marley Natural" brand cannabis in states where it is legal. Now it seems guitar god Jimi Hendrix is to be thusly immortalized. The San Diego Union-Tribune reports that Toronto-based Nutritional High International Inc announced this week that it has "entered into an exclusive licensing agreement...under which the Company may manufacture and distribute various marijuana and hemp-based edible products using the song titles and bearing the likeness of iconic guitarist Jimi Hendrix." The products in question, to be marketed under the "Edible Experiences" banner, include "Purple Haze" and "Stone Free" lines. (There's already a Purple Haze cannabis strain developed by Dutch growers, although the song was more likely about the LSD experience.) In a cute twist, the "Stone Free" line is to be a preparation infused with CBD—the cannabinoid that is thought to have medicinal value but doesn't actually get you stoned.

The town of Raymondville, Tex., got a shock over the weekend as the local Willacy County Correctional Center exploded into an uprising by prisoners upset over conditions and poor medical services at the facility. The inmates set fire to several kevlar domes or tents that serve as housing for the 2,800 prisoners at the facility, rendering the prison "uninhabitable." The federal Bureau of Prisons and FBI as well as Texas Rangers and highway patrol were called in to evacuate the inmates to other facilities and negotiate with those who refused to move. Raymondville's residents were advised to stay indoors during the stand-off, and a local school was put on "soft lockdown." The Correctional Center, which mostly holds undocumented immigrants, is run by the private Management & Training Corp.  

The Pinoleville Pomo Nation of Northern California's Mendocino County is set to be the first Native American tribe to grow cannabis, pursuant to the new Justice Department policy taking a hands-off approach to cultivation on Indian reservations. The 250-member tribe signed a contract last month with Kansas-based FoxBarry Farms and Colorado-based United Cannabis to develop a large-scale grow operation on its 99-acre rancheria just north of Ukiah. "We anticipate construction to begin in early February, and operations to commence by the end of the month," Barry Brautman, president of FoxBarry Development Company, told Indian Country Today Media Network. "Our first phase will include 90,000 feet of greenhouse space, and another 20,000 feet of indoor space." FoxBarry will also oversee distribution for California's medical market. Cannabis grown on the rancheria will be distributed only to card-holding medical users and dispensaries. “Our business model involves doing everything legally and by the book,” Brautman emphaszied to the Santa Rosa Press-Democrat.

In the most serious challenge yet to Colorado's cannabis legalization policy, the states of Nebraska and Oklahoma took the unusual move of filing a case against it directly with the US Supreme Court. The two states argue that "the State of Colorado has created a dangerous gap in the federal drug control system...  Marijuana flows from this gap into neighboring states, undermining Plaintiff States' own marijuana bans, draining their treasuries, and placing stress on their criminal justice systems." Lawyers for the Cornhusker State and the Sooner State assert that local authorities have registered a big uptick in cannabis entering their towns since Colorado legalized with voter-approved Amendment 64 in 2012. The suit also claims Colorado's legalization policy violates the Supremacy Clause of the US Constitution.

In an historic move to respect Native American sovereignty earlier this month, the US Department of Justice (DoJ) issued a memo instructing US attorneys to not interfere with tribes cultivating or selling cannabis on reservation lands. The caveat is that the tribes have to be in conformity with state law, limiting the new policy to states that have legalized (Colorado, Washington) or have strong medical marijuana programs (California, Montana). Tribes must also maintain "robust and effective regulatory systems," as John Walsh, US attorney for Colorado, told the Los Angeles Times. But US attorney for North Dakota Timothy Purdon, the Attorney General's pointman on Native American Issues, added: "The tribes have the sovereign right to set the code on their reservations." US News & World Report even speculated: "Marijuana may displace casinos as reservation cash cows."

Reaction continues to mount to news that Bob Marley's name is to be further immortalized as a cannabis brand—not just a strain, but an actual brand name. Privateer Holdings, a Seattle-based private equity firm that invests in the cannabis industry, has struck a deal with the estate of the late reggae superstar to launch a global marijuana brand, Financial Times reports. The firm's Marley Natural subsidiary will start marketing its line next year, including "heirloom Jamaican cannabis strains," cannabis-infused skin creams and lip balms, and accessories such as vaporizers and pipes "based on those that Bob preferred."

Uruguay started registering cannabis growers' clubs at the end of October. Under the plan, licensed clubs of up to 45 members will be allowed to grow a maximum of 99 plants annually, with  each club member permitted to produce up to 480 grams per year. This is an advance on the regulation approved in August, allowing personal cultivation of up to six plants. (BBC News, Oct. 31) And the private sector may get on board next. The government's Institute for Control and Regulation of Cannabis (IRCCA) reports that 22 private companies—10 of them foreign-based—have expressed interest in producing or distributing cannabis in the small South American nation. (TeleSUR, Aug. 28)

On New Year’s Day, as retail sales of cannabis went legal in Colorado, the state's dispensaries registered well over $1 million in sales. Despite cold and wet weather, most of the 36 shops that opened that day reported long lines, with some customers waiting outdoors for hours. By the end of the first week, by which time another dozen retail outlets had opened, the figure was a whopping $5 million. More than 100 dispensaries in the Centennial State have now received licenses for retail cannabis sales and over 500 are eligible to apply. More are applying every day.

"A new industry is developing in a nascent state in Colorado," says Rachel Gillette, director of the Colorado chapter of the National Organization for the Reform of Marijuana Laws (NORML). "We're not just talking about retail sales, but a lot of other types of business associated with it—construction companies, HVAC contractors, nutrient companies, lighting and equipment sales, packaging, printers, labeling, marketing materials, websites, marijuana tourism, attorneys, payroll companies… This could represent a lot of jobs."