Monday, September 11, 2017

Post #2: How we got here

Multiple factors are colliding to create a perfect storm with regard to technology and the coming legalization of cannabis in Canada. It is the end of prohibition for a product stigmatized by generations of big business leaders and law enforcement agencies (a subject for another blog). The shift to legalization has its roots in an attempt to take this revenue stream away from organized crime and at the same time, tax it and allow for medical research. Both of which are amiable goals. 

"the world is watching Canada – looking for advancements in research, products development and how legal restrictions will effect marketing and advertising"

Canada is second only to Uruguay to move to a legal status allowing for recreational and medical use and production of cannabis. (Here is the current state of legalization around the world by country). There are numerous States in the US that are “State” legal for recreational and medical use but it is still a Federal Offence to profit from cannabis as it is considered a Schedule One drug (like heroin). 

As such, the world is watching Canada – looking for advancements, research, products, and legal restrictions on things like marketing and advertising. This environment is pulling in global talent and big money for research and production.

"Police are playing whack-a-mole, raiding these illegal shops regularly."

Currently, cannabis is still illegal in Canada but the government has announced full legalization on July 1st, 2018. Many feel the announcement was premature. Illegal distribution points (dispensaries) – most with their origins from the more liberal west coast – have been popping up all over urban centers across Canada in a rush to stake a flag. Police are playing whack-a-mole, raiding these shops regularly. The pot for these enterprises is coming in from everywhere. 


A last Hoorah?? This year's Karma Cup may be 
the last one as the province takes over 
production and distribution

The technology that is out there to manage inventory, waste, customer purchases and prescriptions – basically run this emerging potentially billion dollar business are for the most part faulty and allow for huge data breaches. This is called seed-to-sale software and if one wants to produce cannabis legally, they need to use this software to manage their grow and inventory because the software is required to produce reports for the Ministry of Health and for regulators.

As well, it is the illegal market that have perfected auxiliary products and methods so that consumers don’t have to “smoke” pot to get to the active ingredients (FACT: over 60% of cannabis consumed in “legal” Colorado is not smoked!). This includes extracts like shatter, soap and distillate which are by-products of cannabis to concentrate THC in high doses and are consumed through heat not flame. 

Also edibles are a huge booming business though they take up to an hour to activate in the body. These include things like the common “hash” brownie but also “gummies” (gelatin), sugars, and candies. These products look to be highly regulated – and they should be - as they "may have an appeal to children” (duh). 

Due to the fact that edibles normally take an hour to act, many companies are looking for better, more efficient delivery methods. These methods will make up a future blog post where we delve into the new mechanisms being used to deliver active ingredients into the bloodstream. It is a fascinating area as science meets the challenge with interesting approaches such as Nanosphere Health.

So this is where we are. God only knows where we are heading. But one thing is for sure. The genie is out of the bottle and cannabis is here to stay. It will take many forms, have true and false medical benefit claims, will make a bunch of millionaires and a handful of billionaires and will eventually just be another “thing” in society. But man oh man, just getting there is going to be very interesting indeed!

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