Tag Archives: business

The stock markets will soon welcome a dispensary to the ranks of the publicly traded

January 13, 2016

Oakland Dispensary Shares To Be Publicly Traded

Following a brutal 2015 for marijuana stocks, the cannabis investment sector has something to smile about to start the new year. The stock markets will soon welcome a dispensary to the ranks of the publicly traded: Black Oak Gallery, better known as Blüm Oakland.

Blüm joins dispensary Kaya Shack in Portland, Oregon, a subsidiary division of a publicly-traded company, Kaya Holdings (KAYS). Kaya Shack opened in 2014.

But Blüm Oakland didn’t take the traditional route of selling shares to raise capital. Rather, the Oakland dispensary has announced it will merge with an already public company, Terra Tech Corp. (TRTC), an agricultural and cannabis cultivation company in Newport Beach, California, with a market cap of nearly $30 million.

“It’s very significant,” said Matt Karnes, president of GreenWave Advisors, a New York City-based cannabis consulting firm. “The fact that you have a dispensary that has to file financial disclosures and be transparent, that definitely helps the legitimacy of the industry.”

Karnes does not expect the SEC to oppose the deal, because Terra Tech has already stated in its filings that it plans to grow and sell marijuana. “They didn’t come back and ding it,” Karnes said. “I don’t expect them to block it.”

The emergence of publicly traded marijuana-touching businesses should also help reduce the leeriness that many institutional investors feel for the cannabis sector by providing them with companies that they can scrutinize.

“When a company has to file financial statements, it eliminates uncertainty,” said Karnes. “It could provide investors with a benchmark. They’ll have a company that they can compare to other marijuana companies that may go public.”

While Blüm’s soon-to-be publicly traded status is a major advance for the cannabis industry, the merger would also be a major milestone for Blüm’s owner Salwa Ibrahim, who hopes it will help the dispensary fulfill ambitions of expanding into other markets.

Ibrahim said Blüm and Terra Tech have already worked together to secure permits in Nevada for a venture known as MediFarm, which has several cultivation, processing, and dispensary sites in the state.

“It is our hope that we can continue to secure permits and to develop sustainable but successful operations in new markets opening up,” Ibrahim said in a statement. “We’re looking forward to bringing together the core teams of both companies and finding other capable operators in this growing industry to join with as we continue to further our business strategy.”

Under the agreement, Terra Tech will acquire 100% of Blüm’s outstanding shares plus its integrated supply chain, which consists of an onsite cultivation facility, proprietary strains, and retail storefront, the companies said in a statement. The deal is expected to close by March 31.

Blüm opened in November 2012 and had close to $15 million in revenue in 2015. The company sees almost 1,000 patients daily, and has about 42,000 registered patients in all.

Terra Tech bought Blüm for about 1.5-times forward-looking revenue – estimated to be about $14 million – for the 12 months after the merger closes, or about $21 million. To protect stockholders, 80% of the equity will be held in escrow subject to performance adjustments at the end of the 12-month term.

Terra Tech’s shares were up to 11 cents from nine cents on the news. The company had a 52-week high of 28 cents and a low of 8 cents.

Terra Tech CEO Derek Peterson said the merger gives his company more cash-flow and positions it to take advantage of the regulatory changes that will come with the implementation of California’s Marijuana Regulation and Safety Act in 2016 this March.

The states new regulations will for the first time allow for-profit marijuana businesses. Some of Terra Tech’s competitors are not likely to successfully navigate the licensing process, while they will increase the number of potential legal-market customers in the state. Also under the new regulations, vertically-integrated cannabis businesses which growing, extract, process and sell product will not be allowed – that is, unless that company was formed before July 1, 2015.

Terra Tech Corp also owns IVXX LLC, which produces medical cannabis-extracted products for regulated medical cannabis dispensaries throughout California, and Edible Garden, whose produce is sold in major grocery stores such as Shoprite, Walmart, and Krogers.

“As we continue to develop our long-term strategy in Nevada, it has always been our goal to also focus on near-term acquisitions that have immediate value to our stockholders,” explained Mike Nahass, Director of Terra Tech.

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Marc Emery Prison Blog: How I Began My Plan to Overgrow the Government

By Marc Emery – Thursday, February 27 2014

 

CANNABIS CULTURE – Since the 20th anniversary of my activism in British Columbia is approaching on April 11th, I thought I would write a series of blogs about my early years, when there was no movement, no legal medical marijuana anywhere, books and magazines about cannabis were banned in Canada – in essence, there was nothing. Over the next few months I’ll tell you about great moments in my life where I contributed to the marijuana movement and helped changed several laws.

My history is packed with well-documented campaigns and pivotal moments. It includes the day in August 1996 when Dennis Peron was was with me in Vancouver for a large rally in historic Gastown, occupying the intersection that, 25 years earlier, had been the scene of the "Grasstown Police Riot" (where cops attacked and injured dozens of peaceful pot advocates and innocent bystanders), and his pioneering medical cannabis building in San Francisco was raided. I encouraged him to make a phone speech rallying his supporters to not back down – the after-effect of which really pushed the California voters in favour of Proposition 215.

Other significant events include my times with Jack Herer in the very early days (1991); selling banned marijuana books and magazines door-to-door in early 1994 to establish myself in Vancouver (after doing the same in Ontario years earlier, to challenge the laws prohibiting marijuana literature); producing the first issue of The Marijuana & Hemp Newsletter in 1994, which became Cannabis Canada magazine a year later, then Cannabis Culture in 1998; how I was inspired in November 1994 to "Overgrow the Government" by funding activism through seed sales; publishing my 1995 article "How To Open Your Own Hemp Store" that kickstarted a revolution across Canada (and continues to this day); underwriting the early days of the Marijuana Policy Project (1998); contributing to the success of the medical marijuana initiative in Washington DC (1998), Colorado and Arizona (2000); my role in making medical marijuana legal in Canada (1999); creating Pot TV, the first online cannabis video website in the world, with its construction beginning on January 1, 2000; going to the Canadian Supreme Court to legalize pot in December 2003 (and the ten years of court battles leading to that); and stories of how my many adversaries who once persecuted and prosecuted me became activist anti-prohibitionists, including Vancouver Mayors Philip Owen and Larry Campbell, Vancouver ‘GrowBusters’ chief Kash Heed, and Washington State District Attorney (and my prosecutor) John McKay.

Some great history reviews lay ahead, in this, the 20th anniversary year of Cannabis Culture and the retail-activist revolution that is now growing everywhere. I should start with my early efforts in my hometown of London, Ontario.

 

In 1990 I had a radio show at the University of Western Ontario’s CHRW-FM called "Radio Free Speech: Revolution Thru Rock N’ Rap" and I loved playing the Dead Kennedy’s and the spoken-word albums of lead singer Jello Biafra. When his 1990 spoken word album "I Blow Minds for a Living" came out, I decided to have a Jello Biafra spoken-word performance at Centennial Hall (Dufferin Ave by Victoria Park). We sold 450 tickets to cover the cost of Centennial Hall and Jello’s $3,000 fee. As part of the contract, he was obligated to go on CHRW with me for a special 3-hour show the next day (Saturday), which was a highlight of my 18-month London radio career before I was fired in 1991 for criticizing the station’s lame newscast.

In this new album and at his Centennial Hall performance, Jello did as segment called "Grow More Pot", wherein, though not a pot smoker himself, he urged the audience to grow more pot based on his reading and recommending the (seminal) work of the then-ascendant hemp movement, "The Emperor Wears No Clothes". It was a book by Jack Herer – and it was banned in Canada!

Nowhere in Canada was this book offered for sale (and remember, this was before Amazon.com and the internet existed!) and I found out that the federal government of Canada had prohibited all books and magazines that spoke honestly of marijuana. Since I had a bookstore in London, the City Lights Bookshop on Richmond Street (now owned and operated since July 1992 by then-employees Jim & Teresa), I decided I would get this book and challenge the ban by selling it at City Lights.

After some cursory research, I found that everything to do with marijuana was illegal in Canada since an act of Parliament in 1987 had banned all books, magazines, pipes, bongs, video – all and anything to do with marijuana culture was prohibited under section 462.2 of the Canadian criminal code. Since 1987, over 500 shops selling bongs, pipes, High Times magazine, etc. had been shut down, and now in 1991 there were no longer any head shops (as they were called then), nor was High Times available on any newsstand in Canada! Penalties for a first-time conviction for selling books like "The Emperor" or magazines like High Times, or bongs and pipes, included a fine of up to $100,000 and/or up to six months in jail for a first offense, and up to $300,000 for a second offense!

 

So I bought an ad in the daily London Free Press newspaper and announced that I would be selling the banned Jack Herer book to get arrested and go to court to challenge this law.

I sold over 100 copies of "The Emperor", but got no charge by police, nor was I raided. As a historical note, I had already been arrested and charged in previous attempts to change laws regarding Ontario’s Sunday-shopping prohibition (1986), and the province’s ban on explicit rap music (1990), so this was a technique that I had had good success with, up until this time. So I decided to go a little further and smuggled in hundreds of copies of every available marijuana grow guide, dozens of copies of back-issues of High Times, every copy of The Freak Brothers comics, all in huge quantities.

When we bought an ad in the London Free Press announcing this massive sale of over fifty different books and magazines – more than one thousand individual copies – I had over 150 people lined up outside the doors of City Lights at the 10:00am opening. Still, no police raid or arrest.

So I brought Jack Herer to town, to autograph copies of the book, and bought more ads flouting the law. Still… no arrest or charge. Then I flew in Ed Rosenthal to autograph copies of his books; Steve Hager (editor of High Times) for a special celebration dinner at the City-owned London Art Gallery, where over 100 people paid to attend; Paul Mavrides, writer and artist of the Freak Brothers, to autograph his comics.

 

I even gave away 300 copies of High Times to 300 people in front of the London police headquarters in February 1992 (since they law said ‘distributing’ any book or magazine was illegal, not just the selling of them) to force the London police to charge me. But they didn’t! So while I may not have had my day in court then to make marijuana literature legal, by having the law overturned, I did succeed at bringing important cannabis and hemp information into Canada when we had nothing available at all.

In 1994 I moved to Vancouver, and continued selling banned books and magazines on what became a huge scale. It was the cornerstone to getting established in my new West Coast base of operations; by June 1995, I was distributing 2,000 copies of High Times every month.

In the autumn of 1994, my friend Umberto Iorfida of Canada NORML was charged by Toronto police for handing out pamphlets to students at a high school where undercover narcs had entrapped teens by asking for marijuana. I undertook to finance his defense, and in July 1995, with lawyer Alan Young, Umberto and I got the aspect of the 462.2 law regarding media (books, magazines, video) struck down by Judge Ellen McDonald, in the Ontario Superior Court. This law, by the way, is still in the criminal code, because it was not overturned in the Canadian Supreme Court, but since the Ontario Crown did not appeal the Superior Court decision, the decision stands as law in Ontario.

That having been said, over the years, I have traveled to places that tried to ban my Cannabis Culture Magazine or High Times, like in Timmins, Ontario in 1999. The police went to convenience stores and told them that selling those magazines was illegal, and they’d have to stop. So I bought a half-page ad in the Timmins newspaper and went there to hand out 300 copies of my publication, Cannabis Culture Magazine, for several hours in front of the Timmins police station, daring them to try to charge me under 462.2. We ended up having an hours-long smoke-fest and street party in front of the police station. Media from all over Ontario covered that event, and Timmins police never tried that again.

In my peaceful civil disobedience regarding marijuana laws, I have been arrested 28 times in Canada, and jailed 22 times, in British Columbia, Alberta, Saskatchewan, Manitoba, New Brunswick, Nova Scotia and Newfoundland, and this one very long stint in federal prison in these United States (where, as most people know, I did not travel to or spend any time as a seed seller).

I regard all of this as punishment for my political activities, as all of them were acts done under clearly-political auspices, and most – if not all – are unique in North America, Canada, or the USA. For example, I have been arrested and convicted in Vancouver of giving away one gram of hash (the witness was brought 2,000 miles from the United States to testify against me for one gram I gave him, for free, at my Cannabis Cafe in 1997); arrested and convicted for promoting vaporizers, a charge I can hardly believe exists; arrested and convicted for selling seeds (to my knowledge, no other Canadian has ever been convicted of selling just seeds); and arrested and convicted (and sentenced to three months in prison!) for passing one joint in Saskatoon, Saskatchewan, at a rally after my speech at University of Saskatchewan in 2004 (although no joint or pot was ever produced to prove their charge, merely a 22-year-old witness’ claim, upon police inquiry, that I passed him a joint).

 

I was arrested and jailed six times on my 2003 Summer of Legalization Tour across Canada, which was a campaign to demonstrate that the marijuana prohibition laws were of no force and effect due to a court ruling in Ontario (click here to see archive coverage on Pot TV and Cannabis Culture). To challenge the law nationwife, I promoted a tour where I smoked a bong or one-ounce joint in front of police station headquarters in every major city in Canada – eighteen stops in nine provinces – and on Parliament Hill in Ottawa in front of a huge RCMP phalanx. In those six arrests in Alberta (Calgary and Edmonton), Saskatchewan, Manitoba, Newfoundland, and New Brunswick, I was charged, but my charges – and charges against many Canadians – were later dropped when the Ontario Court of Appeal ruled in October 2003 that there was, in fact, no valid marijuana possession law in effect in Canada from 2001 to 2003 (it was reinstated by that court at the time, unfortunately).

I was not arrested during the other 12 stops that tour, in cities in British Columbia, Ontario, Prince Edward Island and Nova Scotia. I was also not arrested when I led a march in 2002 in Montreal at the Quebec Cannabis Cup after Montreal police arrested the organizer. I quickly responded with a bellicose protest immediately, took over the streets en route, and had a very confrontational conflict with riot-clad Montreal cops at the police station. I was also not arrested in my numerous attempts to get charged for selling banned marijuana literature in London, Ontario or Vancouver.

So whereas I have been arrested 28 times, jailed 22 times, and convicted on about ten of those arrests since 1990 to 2010, I have also attempted to get arrested – or risked getting arrested – well over 45 times, all related to fighting against marijuana prohibition or promoting cannabis culture.

And you ain’t heard nothin’ yet!

If you’re interested in seeing more about Marc’s earliest freedom activist causes and campaigns, watch the 1992 documentary "Messing Up The System" by the late Chris Doty (one hour), the 2006 CBC documentary "Prince of Pot: The US vs. Marc Emery" by Nick Wilson (one hour), and the thorough multi-part 2010 documentary "The Principle of Pot" by Paul McKeever (four hours).

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For ex-offenders, finding a job remains the biggest challenge to returning to society

By STEVE YODER, The Fiscal Times

March 27, 2012

For ex-offenders, finding a job remains the biggest challenge to returning to society. A 2003 study by Princeton University researcher Devah Pager in Milwaukee found that a criminal record cut someone’s chance of getting a call back from a prospective employer by nearly half.

RELATED: Meet America’s New Small-Business Owners: Ex-Cons

To avoid the prison record stigma, many offenders have chosen to branch out on their own. Here are seven who have launched successful businesses after spending time behind bars.

1. Adrienne Smalls served time from 1989 to 1991 in New York’s Westchester County Jail for hitting a policeman. From 1993 to 1998, she regularly took the bus from New York City to visit her son, who was jailed on a drug offense upstate. That provided the idea for her business – getting on the buses that took family members to visit their imprisoned loved ones to sell them what they needed: everything from Tylenol and pillows to toothpaste and soap. To start out, Smalls got $500 from her family and then, in 1998, she obtained a loan from a local development corporation that funded small businesses (she paid back the loan promptly, according to The New York Times). Today her business, Prisonhelp, is going strong, and when not outfitting upstate visitors for trips, she advises ex-cons on employment, legal and other reintegration issues. 

2. Vickie Stringer served a seven-year sentence in Texas for drug trafficking. While there, she wrote a fictionalized autobiography, Let That Be the Reason. After her manuscript was rejected by 26 publishers, she pulled together $2,500 from friends and family to self-publish the book, selling a thousand copies out of the trunk of her car in the first week. When a small publisher gave her a $50,000 advance to release the book, she launched Triple Crown Publications in 2002 to help other urban fiction writers get published. The company carries at least 96 titles and has revenues of between $2.5 and $5 million, according to manta.com.

3. Augustus Turner of Cleveland, Ohio, spent almost 10 years behind bars after being busted on drug trafficking charges. While in prison, he had a lot of time to think about his dream of creating art. After getting out, he started Masterpieces, an art studio, tattoo shop and silk-screening business on Cleveland’s west side – and it’s been going strong for more than 11 years. “What I learned from the streets is how to hustle,” Turner told The Plain-Dealer in 2010. “You can dream. You can pray. It all starts there. But you have to actively make it happen.”

4. Curtis Jackson, born in Queens New York, and orphaned at age 12, started dealing crack and spent seven months in a juvenile boot camp on gun and weapons charges. After renaming himself “50 Cent,” he began writing and performing rap songs, landing a deal with Columbia Records in 1999. Since then, he’s released five albums, appeared in multiple films, launched a line of clothing and landed a multimillion-dollar deal with Coca-Cola for his vitamin water, Formula 50.

5. Anthony DiVincenzo of Hinckley, Ohio, lost his home and his autobody business in 2005 when he was arrested after an all-night cocaine party. He served three years, but when he got out he couldn’t find a job – and not because he wasn’t qualified. “I have a lot of experience, so I was offered $50,000 a couple times from auto dealerships, but as soon as they found out I had a felony, they couldn’t walk me out the door fast enough,” he told The Plain-Dealer. So in 2008, he started another autobody shop called J.C. Auto Body LLC, before moving into a sales job at a high-end car dealership last year.

6. Dave Dahl, a former drug dealer, spent more than 15 years in prison. After his release in 2005, he experienced a turnaround, left drugs behind, and went to work in his father’s bakery. While there, he developed his own line of breads. Today, Dave’s Killer Bread, based outside Portland, Oregon, sells in health-food and grocery stores across the northwest and has revived the family business.

7. Cedric Hornbuckle served eight years in Texas for drug dealing when he was accepted into the Houston-based Prison Entrepreneurship Program. After going through PEP’s rigorous training program, in 2008 he founded a moving company, Moved by Love. “I always had the [entrepreneurial] mindset; it was just that I used it in bad ways,” he told Portfolio last year. “I knew all about profit margins and managing people; it’s just [that] what I did was illegal.”

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