Berkeley Patients Group will celebrate its 20th anniversary in October, and as the dispensary continues to navigate California’s post-Prop. 64 regulatory landscape, it is keeping one eye toward the future while it continues fighting for policy reform and giving back to its community.

To commemorate its anniversary, BPG will launch its newest community outreach effort, the “$1MM for Good” campaign, which will donate $1 million to 10 different nonprofit organizations over the next 10 years. The organizations focus on health care, re-entry support, affordable housing/homelessness, the LGBTQ+ community, the environment and more. Each month, BPG will highlight a different community partner and drive funds to that particular organization through awareness campaigns, staff volunteers and donations from sales of partner brands.

Here, BPG Co-Founder and Vice President Etienne Fontan discusses how the dispensary supports its community and the causes it believes in, how it approaches lobbying in California, and which industry trends the company is watching going into 2020.

Editor’s Note: Read Part I of this series here and Part II here.

Cannabis Business Times: What mistakes are today’s retailers in California making, and what advice do you have for them that you can offer with the benefit of your own experience?

Etienne Fontan: We’re all in the same boat together—everyone’s just trying to get regulated and up to standard. The state dragged its feet, unfortunately, with its cannabis oversight organizations that they created, so it took a long time just for us to get our annual permit. For us, one of the original ones, it still took a year and a half. So, for those who are just starting out, it’s very challenging and very intimidating, what you have to go through, and it was still daunting and challenging for a retailer of nearly 20 years, ourselves.

It’s hard to look around and say who’s making mistakes. I think the mistakes are people thinking they’re going to exist outside of the lines of regulation and still do storefronts. Originally, they stated they expected about a third of the market to stay illegal. We came from the illegal market. We ran the underground market. We understand the realities that are taking place and that are going to continue to take place because so many people—definitely more than a third, I guarantee you—did not make that leap. They could not make that leap to legal, so people have gone to places around the world or stuck around here and are just going back to the underground market because the taxes were way too high.

The customer, especially early on, felt that they were not getting the quality of cannabis that they needed from the legal market, which was true. As the market scaled up [and started] dealing with distributors and manufacturers, the quality standards were not what we at Berkeley Patients Group had created over the past 18-plus years. It was very frustrating to now have to deal with product that was in price points that were two price points higher than what I would price it. Initially, people were buying an overly inflated product at an overly inflated tax rate, which why would you buy that? I understand the frustration.

CBT: How does BPG approach lobbying? How does it work to advance policy reform in the state?

EF: Berkeley Patients Group is one of less than a handful of dispensaries and organizations that has a government relations person, which is Sabrina Fendrick. She is in Sacramento, dealing with the state senators and legislators all the time, making them aware of the different aspects of the laws that have changed and the problems that are inherently there. Fortunately, the Bureau of Cannabis Control in California came to the public and wanted public input, and we have had a great working relationship with the BCC in helping them understand the laws. They’re brand new, so they went from literally no organization to hiring the former head of the ABC to run the organization. Lori Ajax is a very competent person and she has been open and her department receptive to all aspects of the cannabis community. [We are] educating them on the problems that were caused by some of the ideas or suggestions that had been put forth by the BCC, which we have since changed by imparting our wisdom as well as our knowledge directly to them.

Photo courtesy of Berkeley Patients Group

CBT: In what other ways does BPG work to educate the community?

EF: At BPG, we volunteer on our weekends to educate educators. We had health department teachers from the 7th through 12th grade in the Bay Area saying, “Hey, now that DARE has been taken out of the schools, we have no education on cannabis anymore—none. And we have kids who are hitting vaporizers in our class. We need to know.” So, we created our own syllabus and volunteered our time, and recently, we even met with pulmonary surgeons who also need education.

It’s showing us that the lack of education is still ongoing and there needs to be actual certification programs so that doctors and teachers have certain accreditations to show that they’re still learning and staying on point. If there are companies out there with the ability to create actual training seminars that they could actually get credit for, it would be a benefit to our educational as well as our medical community because they’re greatly lacking now. The laws have changed so fast that the education has been unable to keep up with the times. There’s an absence of actual certification information, again, due to federal prohibition. We, from the ground up, have to create these things.

CBT: How is the company working to help veterans and supporting other community outreach programs?

EF: As a combat veteran myself, it is and has always been a labor of love for me to work behind the scenes. We offer discounts for veterans, but we also support organizations like the Veterans Cannabis Coalition, which I help mentor. They are the ones working at the federal level. They’re the top lobbyists in D.C., who are from the Disabled American Veterans, the VFW and the American Legion, who have all combined forces to put pressure on senators and congresspeople so that cannabis can get into the hands of our veterans. We know there are over 22 suicides a day still from service members who have come back from combat situations, and we have found that cannabis helps exponentially with PTSD. We also support a local organization called Operation Evac, which is a veterans organization and support group that meets here at BPG a few times a month so that veterans can get support that they need directly and a supportive environment with other vets who are educated and in the same boat.

CBT: How is BPG helping to advance social equity and social justice reform in the industry?

EF: We’re continuing to work at the federal level until we actually change the laws. I was in D.C. in May, along with the National Cannabis Industry Association, of which I am a founding member and a board member, and we were talking [about] social equity regarding cannabis because, as we know, many aspects of our society have been detrimentally harmed by the drug war, so we want to make sure those who have been most harmed have access to be in the legal sphere. We want to remind our congresspeople and our senators that that needs to be in consideration, that we need people of color, as well as veterans, to be able to gain from finally lifting prohibition so that those who were most harmed can have a stake in the future. These are the people who were arrested for marijuana. These are the people who know how to grow marijuana. It would be a shame if they were [barred] from being able to participate in the market. We want to constantly educate and make people aware so we can arrive at a point where we can all feel proper about how this industry is and where it’s going.

CBT: Which market trends are you most closely watching going into 2020?

EF: For me, it’s the lack of environmental concern. We are pumping out [vape] pens at record levels in every state that [allows] these pens, but there’s no recycling for these pens. There’s no way for them to go but into landfill. There’s no one recycling. There’s nobody pulling these metals out. There’s nobody offering a recycled product. So, the biggest problem is waste.

RELATED: The Vexing Issue of Vape Recycling

We see a huge waste with the reality of what Prop. 64 has brought upon us. It has made an onerous packaging situation where you have to have child-proof products. The amount of plastic and waste and no forethought into the environmental challenges their products [present] is a huge point where retail customers and patients need to start asking the manufacturers to [address it]. If they don’t convince them to do so, they’re just going to continue to buy cheap, shoddy products from China. We don’t know what metals are in there, what chemicals are being put in the vapes, as you saw with the popcorn lung and various other lung problems that have popped up in the last couple of months.

Prohibition has driven people and products that fail into the underground market. Those products that fail have pesticides and herbicides that are concentrated because the outside of the plant is sticky. Any type of chemical near or sprayed onto the plant stays on the plant. It never goes away, and it comes out in testing later. If it fails for us, it’s supposed to be destroyed, but a lot of people realize they’re growing illegal stuff, and they don’t care. They just create a bathtub gin situation, [like] we saw in Prohibition—people poisoned people when dealing with alcohol prohibition. “What’s in your vaporizer?” is kind of becoming the bathtub gin of 2020. If it’s not tested and you don’t know what’s in it, you don’t know what you’re getting. Buyer beware.

When people are asking what they should do, I recommend buying from legally tested shops because that oil has been tested to be clear of pesticides, and it’s known exactly what’s in it, whereas illegal carts, you have no idea. The individual customer has to be aware. There’s a reason your cannabis costs a little bit more at a dispensary, because we started all this testing to find all those naughty things that we can’t see so that you are not buying them. I can never sit here and say to you, “Never go to the underground market,” when I came from the underground market. However, if you want to buy a safe product, we know that there are safe products that are tested at dispensaries currently, and that is, right now, the only safe point, unless you know the grower and actually tested it yourself. You need to question what it is you’re inhaling.

Editor’s Note: This interview has been edited for style, length and clarity.

VANCOUVER, Sept. 23, 2019 - PRESS RELEASE - Nextleaf Solutions Ltd. has announced it has entered into an agreement to acquire intellectual property pertaining to water-soluble cannabinoid formulations. Based around a Nano and Micro Emulsification process, the technology utilizes food-grade emulsifiers already approved by Health Canada. These water-soluble cannabinoids are shelf stable, resulting in no constituent separation and boast a rapid onset time.

"This nanotechnology increases onset time from over 90 minutes to less than 10 minutes when consuming cannabinoids in a beverage. We believe this represents a quantum leap for the industry, as fast onset is a pre-requisite for mass market acceptance of THC and CBD infused drinks." said Paul Pedersen, CEO of OILS.

Under the agreement, OILS will acquire the processing methodology and ingredient formulation from a private company led by a team with extensive experience in emulsifying hydrophobic molecules into various matrixes. The developers combine expert chemical engineering with tenured experience from one of the largest Canadian dairy product manufacturers. "This is a cannabis specific innovation built on proven and validated food and beverage technology," said Ryan Ko, chief technology officer of Nextleaf Solutions. "The technology and formulation allow for versatile application into hot or cold liquids, semi-solid, or solid mediums. Homogeneity is crucial for a reliable consumer experience so that every bite or sip delivers a consistent amount of cannabinoids."

The company's proprietary extraction, purification and refinement system paired with the newly acquired water-soluble formulation gives a superior advantage to Nextleaf's commercialization partners as products will represent cleaner ingredient profiles, minimizing the use of additives for flavor masking. OILS has granted an exclusive license to BevCanna Enterprises Inc., a BC-based emerging leader in cannabis-infused beverages, for the use of intellectual property related to water-soluble cannabinoids for the development, manufacturing and sale of BevCanna products. Nextleaf also has a supply agreement with BevCanna to provide cannabinoids for the production of their products.

As consumer packaged goods companies enter the cannabis infused product landscape, OILS believes the scalability of its patented technology and ability to standardize ingredients is what sets it apart. Paul Pedersen, CEO of Nextleaf Solutions, said, "As the industry evolves, there's going to be increased demand for more sophisticated processing solutions to formulate standardized products."

Under the agreement, Nextleaf will compensate the developer for the intellectual property upon each of two milestones being met. For the first milestone, which has now been met, Nextleaf will pay the developer $100,000 in cash and issue Nextleaf common shares having an aggregate value of $100,000 through the issuance of 196,078 shares at a price of $0.51 per share. Upon the developer meeting the second milestone, Nextleaf will pay the developer an additional $65,000 and issue additional shares having an aggregate value of $300,000, with the price per share and number of shares being determined once the second milestone has been met.

NEW YORK, Sept. 23, 2019 /PRNewswire/ -- PRESS RELEASE -- Altitude Investment Management, plc (AIM plc) has announced a $5.5 million investment in Switzerland-based KannaSwiss AG (KannaSwiss), the leading supplier of top-tier CBD isolate products in Europe. This marks AIM plc's first investment in the European cannabis market.

Earlier this year, Altitude Investment Management, a New York-based investment firm focused on the emerging global cannabis industry, opened its office in London and raised $7.4 million for its newly formed UK-based investment company, AIM plc. The goal of AIM plc is to take advantage of the emerging and fragmented European cannabis marketplace by investing in foundational companies in the industry's supply chain. With a population more than double that of the United States, a fast-growing CBD/wellness and emerging medical cannabis market, and deregulation steps that are beginning to mirror North America; Altitude believes that it will capitalize on this European early-mover advantage through AIM plc.

"My partners and I have been laser-focused on investing in the legal cannabis industry since 2016. We raised approximately $31 million in our first cannabis vehicle which has been invested in 19 companies across the industry," said Roderick Stephan, co-founder and partner of Altitude. "While the CBD/wellness market is thriving, the medical and legal cannabis markets in Europe are in their infancy. We believe that over the next couple of years, medical cannabis will be generally available across Europe and some countries will also allow recreational consumption. The market is poised for tremendous growth just as it has in the U.S."

The latest funding will allow KannaSwiss to materially scale its commercial ethanol extraction operations both in bulk sales of CBD isolate and distillate, as well as in the development, marketing and sales of branded products.  AIM plc's investment will allow KannaSwiss to fund additional production capabilities and biomass intake to meet its existing and rapidly growing customer demand.  The funds will also accelerate KannaSwiss' attainment of ISO 9000 and GMP certification further solidifying the company's leadership position in the market.  KannaSwiss has recently hired two additional chemists to focus on R&D for cannabinoid-enhanced formulations to address cognitive function, PMS/menopause, PTSD, mood enhancement, sleep and immune health.

"This significant investment from Altitude will help solidify us as the leading hemp extraction and product company in Europe," said Ivan Enderli, co-founder of KannaSwiss.

"We have already established ourselves as a trusted brand of bulk CBD isolate and distillate and we are focused on expanding our existing product offering to consumers," added KannaSwiss Chief Executive Officer Boris Blatnik.

"Swiss manufacturing holds itself to the highest standards, so I am confident that my team's dedication to quality and innovation will produce a leading line of products on the European market."

"Altitude believes the investment opportunity in the European legal cannabis industry is unique and presents compelling outsized risk adjusted returns. Experts project the CBD wellness market in Pan-European countries to be worth $416 million in 2019 and reach $1.7 billion by 2023, with medical cannabis coming in at $318 million in 2018 with rapid expansion to $8 billion by 2023," said Stephan. "The path forward has strong support, and we are looking to be one of the first to support and grow the European market."

Moving forward, AIM plc will invest in controlling and non-controlling interests in emerging private companies specifically across the legal European cannabis industry's supply chain. Founded by John Brecker, Michael Goldberg, Rod Stephan and Jon Trauben, Altitude has an established track record of successful investments in the cannabis industry while navigating its ever-changing dynamics. Its portfolio includes Grassroots, EMMAC, Canndescent, Flowhub, SpringBig, PathogenDx, BDS Analytics and more.

Portland, OR --  PRESS RELEASE -- At its monthly meeting on Sept. 19, 2019, the Commissioners of the Oregon Liquor Control Commission approved three marijuana violation stipulated settlement agreements.  In addition, the Oregon Health Authority (OHA) provided the Commission with an overview of the ongoing national respiratory illness outbreak and public health investigation that has been linked to nicotine and THC vaping products.

OHA is leading Oregon’s public health investigation into the outbreak, which has identified four cases, including one fatality. Dr. Richard Leman, chief medical officer in OHA’s Health Security, Preparedness and Response Program, told the Commission that doctors had been seeing cases of the respiratory illness linked to vaping since June 2019, with the first reports coming from physicians in the Midwest.

Leman said the symptoms associated with this outbreak are similar to other pulmonary illnesses, or lung diseases, such as pneumonia. Health investigators in Oregon are conducting case history interviews with medical experts who may have treated individuals with unexplained cases of lung disease, as well as interviewing the patients already identified as official cases.

Leman indicated that Oregon investigators are looking for common links in the Oregon cases and will continue to share their findings with Centers for Disease Control and Prevention, which is spearheading the analysis of data provided from affected states to identify a common cause.

The Commission also approved the following fines and/or marijuana license suspensions, license surrenders, or marijuana worker permit surrender based on stipulated settlements:

• Firehouse Trading Co. in Eugene will pay a fine of $4,950 or serve a 30-day recreational marijuana retail license suspension for one violation.

Licensees are: Firehouse Trading Co., LLC; David Coy, Member/Manager.

• Next Generation Nurseries will pay a fine of $4,950 or serve a 30-day recreational marijuana producer license suspension for two violations.

Licensee is: Next Generation Nurseries, LLC; Karen Osovsky, Member.

• Nuharvest will surrender its producer license for four violations, and each licensee will receive a letter of reprimand.

Licensees are: Boundless Technology, LLC; Casey Nugent, Manager; Randall Elkins, Member; Boundless Technology, LLC (CA LLC), Member; Randall Elkins, Member.