Cannabis Legalization News – Thomas Howard Podcast Featuring Andy Poticha
Tom Howard: It’s clearly 2:00 p.m. on a Wednesday, and so it’s cannabis legalization news time. We’ve had a huge week in cannabis legalization news. Illinois became … hey Miggy … what number is it?
Tom Howard: 11. The big number 11, and we also have a guest joining us. It’s Andy Poticha. Say hi, Andy.
Andy Poticha: Hello.
Tom Howard: Awesome. Well, we’re going to round up the news, and then Andy is going to discuss with us his unique knowledge about something that’s so hot right now. The cost of getting into a cannabis cultivation facility in Illinois. They’re called, The Craft Grows or a dispensary, but first, I think the biggest news of the week was of course that JB Pritzker signed it into law. Now, it’s number 11, but there’s been a lot of other really cool federal news, and Miggy have you heard anything on the west coast? Is there anything that you’re working on for weednews.co.
Miggy: No. Not me, per se. I mean state-by-state has been great also with New York and Texas and Ohio, but those are all more medical and one is decriminalization. The Banking Act.
Tom Howard: The Banking Act. I’m actually going to present to everybody, that’s another thing. So FinCEN did just release, and says that FinCEN publishes these on a quarterly basis, but of course it takes them a little bit of time to get the actual date. This came out this past week, and it’s current as of April 1. When the quarter ends here in about a week for June, these numbers will be updated and then FinCEN will publish that in another couple of months.
Tom Howard: But you can see the sharp uptick right there. Q3 2018. Basically JB Pritzker won, and then maybe this was also some New York thing. They don’t really publish those, but this is the number of banking institutions that are lending to marijuana. Interestingly enough, the thing that you see when you are lending to marijuana a lot, and hopefully my screen was on there, is –
Miggy: Hey, Tom.
Tom Howard: They file nondisclosure agreements and all that other stuff to kind of keep it secret, but this uptick, and a fairly large uptick according to the number of banks that are actually banking cannabis, somewhat corresponds to the stuff that’s been coming out of Congress. This is a really fresh news. This is from the Marijuana Moment, just from like a half hour ago.
Miggy: Oh nice.
Tom Howard: Right. And if you’re not familiar with what’s going on in the federal level, especially when it comes to banking and cannabis, it has to do with two things. One is the defunding of the war against marijuana for everything, not just medical, but state law marijuana. Second is the continuing pushing of the Safe Banking Act, placing it into the funding bills itself. As we get up the fiscal cliff, the fiscal cliff happens every year September 30 because that’s when the federal budget actually ends. The budget that will be passed that will continue to fund, that’s how hemp was legalized. That’s how the first war on marijuana was defunded back in 2014, through Rohrabacher-Farr Amendment just for the medical. It looks like the budget for 2020, plus Illinois going open for business, will really signal it’s time to go. It’s time to lend to cannabis businesses, and I would not be surprised if New York next year legalizes it. I think 2020’s going to be the biggest year for cannabis legalization ever. What about you, Miggy?
Miggy: No, I totally agree, especially since the House agrees to protect the legal states. That’s a huge step towards legalization, like you said. Just like jury nullification but in a financial way of how to attack prohibition.
Tom Howard: There’s jury nullification. That’s great, but you’re already being prosecuted. You’re on trial. Imagine if you could just stand up during a trial and be like, “Excuse me, Your Honor. There’s no money for this trial.”
Miggy: Yeah, yeah. That’s for sure. Defunding the war on drugs. I think that’s the best way to put it. FYI, when you had the chart on the screen, on YouTube, I was a predominant screen.
Tom Howard: That gets back to, I really need, and if anybody’s out there that is majoring in YouTube, and also social media SEO and has a paralegal degree, I will hire you because I am doing this all myself. And it’s sad. Somebody could be managing this, and then I could get back to work for the clients, which are just blowing up my phones. It’s going great, but that’s one of the reasons why we brought our guest on. He has actually designed and built cannabis facilities in Illinois. Andy.
Andy Poticha: Yes?
Tom Howard: How many of these facilities have you built?
Andy Poticha: In Illinois, we have completed four dispensaries and one cultivation, and are working on one cultivation and another dispensary at this point. That’s just in Illinois. We’ve been doing work in other states outside of Illinois as well. We’re working on our 8th state, actually.
Medical cannabis has been legal for only ten years in Israel, but the country is widely considered the global leader in cannabis innovation. It started back in 1964 when Israeli chemist and “Godfather of Cannabis Research”, Dr. Raphael Mechoulam discovered Tetrahydrocannabinol (THC) and the body’s endocannabinoid system, the largest receptor system in the human body. Mechoulam’s breakthrough is credited with legitimizing the scientific study of cannabis, but Israel’s contribution to cannabis innovation has not stopped there.
Global Leader in Cannabis Research
Currently, there are more clinical trials in Israel than any other country. Not only does Israel have a government-sponsored cannabis program, it also boasts the world’s highest percentage of financial resources devoted to research, with much of the funding coming from the U.S., Canada, Australia, and Germany, where federal laws obstruct research and trials. Since cannabis remains a Schedule 1 narcotic in the U.S., American companies and organizations have been outsourcing their research to Israel. For example, the National Institutes of Health has funded Mechoulam’s research for the past 50 years, providing an average of $100,000 a year to study the medicinal benefits of cannabis.
Ground-Breaking Autism Study
Israel further highlighted the efficacy of medical cannabis for the treatment of autism. A recent study conducted by Ben-Gurion University of the Negev and Soroka University Medical Center showed promising results. 188 patients treated with cannabis oil reported significant improvements in quality of life and mood. According to the Jerusalem Post, “A good quality of life, which was reported by 31.3 percent of patients prior to treatment initiation more than doubled to 66.8 percent at six months. Positive mood moved up to 63.5 percent from 42 percent after six months. Good sleep, reported by only 3.3 percent of patients, shot up to 24.7 percent, and concentration went up from zero percent to 14 percent during active treatment.”
Israel boasts the world’s highest percentage of financial resources devoted to cannabis research.
Penetrating the U.S. Market
Seizing on the expansion of medical cannabis programs here, Israel is investing in U.S. markets. Tikun Olam, the first licensed medical cannabis provider in Israel, currently offers its proprietary oils, tinctures, topicals and other delivery forms in Delaware and Washington state, and will be entering California and Florida next. The company has been testing 32 genetically unique strains of cannabis for help with cancer side effects, autism, Crohn’s disease, active Parkinson’s, Tourette’s, Fibromyalgia, and complex motor disorders. Since the importing of cannabis into the U.S. and transport across state lines is illegal, Tikun Olam is investing in infrastructure in these states where its products can be grown, processed, and sold.
In January, the Israeli Cabinet approved a law permitting the export of medical cannabis, following a parliamentary approval in December of last year. Along with the Netherlands and Canada, Israel is now the third country in the world to allow the medical cannabis product-exportation.