By Jeff Greene

Let me start by saying, I watched the 2018 Farm Bill get passed in Congress and signed by the President. I lobbied the Florida legislature to pass their hemp bills. I expected the industry to grow like a hockey stick, but I didn’t account for a pandemic, glass shortage, drivers and inflation.

A crippling couple of bankruptcies early in the industry’s development, GenCanna Global and United Cannabis, caused many farmers to follow into bankruptcy. Farmers that were promised $20 -$30 per pound and even got that for a season or two ended up selling for $.50 to $1.00 per pound and many vowed to never grow hemp again.

No, the industry is not dying, but it is consolidating. Green Roads was bought by Valens and Just CBD was acquired by Flora Grown, both publicly traded companies. Both were necessary for the companies to grow and thrive.

Hundreds of hemp companies have gone out of business, but almost as many, have started. The reality is that the plant is amazing. Now that the FDA is allowing research; scientists will soon verify what the industry has been preaching.

That doesn’t stop the FDA from scolding companies for making those claims prematurely. Early in the game, getting a letter from the FDA was like a badge of honor, that you were fighting the big bad government and consumers tended to rally around them. Lately, the opposite is happening, industry long-timers have navigated the waters of compliance and seeing the new players making the same mistakes is now looked at as ignorant.

I work in Florida; our trade association has shrunk in the last year and is only recently starting to rebound. Nationally, the Hemp Roundtable, National Hemp Association, National Industrial Hemp Council and Hemp Industries Association are all fighting for power, and many are trying to separate the plant into flower and fiber. There will come a time when one or two remain and the industry will do just fine. The egos and power that are accumulated at each organization certainly have the staying power but at some point, the war will be over, and the industry will adapt.

As long as the Farm bill gets updated every five years or so, there will always be something of a fight. As long as state hemp programs are subject to change with different political parties in office, the uncertainty will return, and lobbyists and powerful consultants will push for more.

I wouldn’t call the current environment phoenix-like, the industry never burned to ashes. But I do see a bit of a rebirth in the industry. Education is still necessary, and we still have to explain the difference between marijuana and hemp way too often. Cannabis has not replaced those two words yet, but I hope it does someday. The fear of THC is the real obstacle to overcome. It takes a decent amount of THC to get psychotropically affected, products with less than 0.3% THC will become more widely accepted eventually. Drug tests are currently set to report any more than 50 nanograms of THC as a positive test. This is believed to be too low and caused many hemp users to be lumped into the current violation range. I have always stated that there are people who want to get high and there are people who want to get well. First responders, truck drivers, pilots and the military are all getting tobacco and opioids pushed on them because even the smallest sampling of THC and they will be fired.

Those pioneers who started this industry are getting tired and the new businesses that are coming in have to continue to educate. Whether for building products or consumption or clothing or cars, the industry will have to overcome systemic legacy barriers. Those barriers were built to keep out competition and they take time to overcome. Building products are getting their certifications, research is starting regarding the cannabinoids, entrepreneurs are trying out hemp as a battery, fiberglass, steel, fiber, paper and drug replacement. Other uses will come to market and slowly the industry will mature into the multi-billion-dollar industry everyone predicted.

Scaling a company is expensive and finding investors that you can trust with your vision is not always easy. There are plenty of products and plenty of opportunity left in the industry. The rush to get state licenses for medical marijuana has not proven to be the boon that everyone believed – verticality is not all it’s cracked up to be. Hemp has shown that horizontal development can work better if properly regulated. Now we just have to get past the pandemic and show the real promise that this plant offers.

Jeff Greene, Founder and Business Development Director, The Florida Hemp Council, can be reached at Jeff.Greene@TheFLHC.org or (954) 304-0791 or visit https://calendly.com/jeffgreene.



What benefits do you see for patients throughout Florida within this space?

Compared to other adult-use and medical states, I’m happy to see Florida provide comparatively strict yet clear guidelines for MMTCs from seed to sale to ensure consistency and quality for patients.

Before recent advancements in the medical marijuana space, we saw patients forced to wait weeks to months to receive medication when their conditions were affecting their quality of life in the now. Other states limit access to routes and potencies which will not only limit the potential benefits of cannabis, but continue to lead patients down a trail to pharmaceutical drugs that may very well have negative consequences when compared to cannabis.

I am also happy to see a shift in respect for this alternative medication within the medical community. I have been and continue to be concerned with the lack of knowledge or understanding medical professionals may possess or even have access to with respect to recommending cannabis rather than prescribing something far more addictive and potentially harmful in the long run.

What motivates you to be a part of the cannabis Industry?

Beyond the potential health benefits cannabis is said to have, the possibility of making an impact in this industry with respect to social equity is attractive in itself. We are an incredibly resilient group of people who have fought endlessly to see legalization beyond state levels. To be living in a time in history where change is happening at an exponential rate, it would be selfish to leave this as a task for anyone else simply because it’s difficult or requires creative strategies alongside self-motivation and discipline.

What field are you in within the cannabis space?

I am in the retail, hospitality, and distribution sectors within the industry. For more than 7 years I have been actively involved, using my extensive professional background to my advantage. I own medical cannabis clinics throughout South Florida, national cannabis infused edible brands such as Sunbaked Goods, and will be introducing our consumption lounge concept in Q4 of 2022. Beyond my passions in business, I extend my reach across the global network of women within the industry, as the Executive Director for the National Women’s Cannabis Chamber of Commerce.

How can people in Florida benefit from the company you represent?

There are plenty of ways patients and advocates alike can benefit from what I have started and assist with in this space. From medical marijuana certifications, affordable and consistently dosed edibles, as well as access to business development strategies or capital introductions – I am here for the community.

How did you get started in the cannabis industry?

After running multi-location operations for another group, I purchased my first location on South Beach; turning a clinic that grossed 15k monthly into an average of 45k monthly within 30 days. I then adjusted this model and expanded our service and retail offerings over the past 3 years.

Do you see Florida moving forward with recreational Marijuana/cannabis and how will that affect your business?

I see Florida moving forward with recreational cannabis within the next 2-3 years if federal legalization doesn’t arrive beforehand. As the professionalization and legalization of the cannabis industry has both positive and negative consequences across different sectors, the key for anyone is to continuously be well-versed and up to date with regulations and compliance. No one will be able to keep up without evolving. For smaller businesses such as mine that don’t quite measure up with larger MSOs, it’s imperative we support each other and promote growth from within. Alongside this, I see the benefits when utilizing all resources of a business to their furthest extent; essentially throwing 100 things at a wall to see one stick. I have first-hand experience seeing something I originally didn’t plan to see impressive results from, take off.

 



Planet 13 Holdings Inc. announced the third location of its planned Florida dispensary network located in the city of Ocala.

“We are thoughtfully and deliberately executing our Florida roadmap to bring the famous Planet 13 brand to Florida. This is the third dispensary location of our initial six neighborhood dispensaries targeted towards major Florida population centers with underserved local residents,” said Bob Groesbeck, Co-CEO of Planet 13. “We look forward to serving patients in Florida and showing them why our products are among the most popular in Nevada and why our in-store experiences at both the SuperStore and smaller neighborhood dispensaries are some of the highest rated.”



By Daniel Casciato

July 10th is a celebration of cannabis concentrates. Cannabis concentrates contain much more phytocannabinoids than cannabis flower, making them a great option for patients who have developed a high tolerance for the heady effects of cannabis.

According to Gina Collins, Vice President of Marketing at Trulieve, the largest cannabis company in Florida, legend has it that this cannabis holiday comes from turning the date 7/10 upside-down to spell “oil.” Some call it “Dab Day,” a reference to the act of “dabbing” concentrates. You’ll also see it referred to simply as “7/10.”

“No matter what you call it, July 10th is a day to raise awareness around these potent products and the difference between their many variants,” says Collins.

Trulieve patients can celebrate the 7/10 holiday with Muse, the company’s premium concentrate line. Extracted in its state-of-the-art lab with fresh frozen flower, Muse provides a full-spectrum concentrate that is exceptionally flavorful and typically contains higher levels of terpenes than other traditional concentrates.

“We will be highlighting Muse and other concentrate products with promotions and brand activations throughout the week,” says Collins. “We’re also launching a new Muse product, Terp Sauz, on July 9.”

Trulieve will also have drops of Live Diamonds by Muse™ happening on July 4 and July 10 at its Florida dispensaries. Live Diamonds are created using a proprietary blend of propane and butane in Trulieve’s hydrocarbon extraction lab via TruFlower that has been frozen immediately at the time of harvest. The result of the “diamond mining” and production process locks in volatile terpenes and produces a strain-specific, full-spectrum cannabis concentrate.

On Saturday, July 9 and Sunday, July 10, they will have doorbusters and great discounts at each of its Florida dispensaries. Patients who purchase over $175 will also receive a gift bundle with Trulieve branded swag and dab tools.

In addition, from July 4 through July 10, Trulieve is partnering with Puffco for a giveaway. For any purchase during this timeframe, patients will be entered for a chance to win a $710 dispensary credit.

The best way to celebrate that day?

“Stop by one of our dispensaries to celebrate with us!” exclaims Collins. “We will have giveaways, promotions, food trucks, DJs, games, and more at select stores.”

Patients who are interested in celebrating with Muse or other concentrate products have a few ways they can partake. Many concentrates are inhaled because heat is necessary to convert the acidic forms of the phytocannabinoids it contains into the active form that makes you feel euphoric. They are typically inhaled using an approved concentrate device like a Trulieve concentrate pen, the Puffco Peak Pro, or the Firefly 2+. Some concentrates do not require heat to activate and can be taken orally.

Patients can choose from the largest selection of concentrates in Florida. Learn more about some of their selection here (https://www.trulieve.com/discover/blog/trulieve-concentrates-710).

“Stay tuned to our social media channels to learn more about upcoming events,” says Collins. “Coming up in August, we’ll be celebrating the launch of Khalifa Kush in Florida.”

Collins stresses that Trulieve continues to be an advocate for cannabis reform, provide top products, and work to educate the communities in which it operates.

“This includes creating jobs at our dispensaries with great benefits, to contributing to and developing partnerships with local organizations in the community,” she says. “Trulieve also grows, harvests and produces cannabis plants in an eco-friendly environment to reduce carbon footprint and protect the planet.”

In addition:

  • Trulieve continues to focus on growing safe, quality cannabis and continually innovates to provide a wide variety of products for medical patients in Florida.
  • Trulieve patients across Florida can choose from the largest selection of THC and CBD products available in a variety of consumption methods, including smokable flower, concentrates, edibles, capsules, syringes, tinctures, topical creams, vaporizers and more.

“Our company’s mission to promote well-being through cannabis allows us to create profound economic and social advancement opportunities within the communities we serve,” she says. “Trulieve looks forward to cultivating additional local and national partnerships through our growing DEI (Diversity, Equity and Inclusion) team and showcasing how cannabis can create consequential, powerful change.”

For more information, visit www.trulieve.com.

 



By Daniel Casciato

South Florida-based Marc Egort, CPA, P.A., was among the first statewide accounting firms to develop a portion of its practice dedicated to serving the cannabis industry. Founded in 1999, by its namesake, Marc Egort, the dedicated professionals at the firm had already been working closely with clients to provide core accounting services, tax compliance, and business consulting in various industries nationwide.

The boutique CPA firm expanded its business four years ago to provide accounting services to cannabis businesses, not just across the state, but across the nation as well. It offers a broad spectrum of accounting, financial reporting, tax compliance, and consulting services that give cannabis businesses the insight they need to grow and succeed.

“I got involved with the cannabis industry for several reasons,” explains Egort. “My personal belief is that cannabis has a lot to offer for medicinal and health purposes. I also have a strong belief that there should be no incarceration for those who are users of cannabis. We’re missing out on a population of productive income-producing individuals who have not done anything other than use cannabis, which is available via nature.”

Egort also has a strong opinion about the medical value of cannabis.

“There are other progressive countries out in this world that are doing tremendous amounts of research and medical advancement and using cannabis for treatments for cancer or degenerative diseases such as Parkinson’s Disease, which my father was afflicted with,” he says. “There’s leading, cutting-edge research happening in the cannabis field right now, but I feel the United States is woefully behind in that arena.”

One of the reasons the nation is behind is due to the fact that cannabis remains illegal on the federal level. That makes cannabis accounting more challenging.

“Cannabis is unique because it’s considered to be—and is labeled—as a Schedule I narcotic in the United States,” Egort says. “Since it is a federally illegal activity, it makes that unique from an accounting or more importantly, from a tax standpoint. There are extreme limitations on what a business owner can use as deductions against the income earned from distributing or selling cannabis, whether it’s medicinal or recreational.”

The challenges that consultants or tax advisors such as Egort have is to help those members of the industry navigate the restrictions on what they can deduct against that. Even though, it’s federally illegal, it falls under a certain classification. While IRS Code Section 280E is clear that all the deductions and credits are not allowed for an illegal business, there is a caveat cannabis businesses are aware of: marijuana business owners can deduct their cost of goods sold, which is basically the cost of their inventory. This means they still must report the income. They don’t have the same flexibility or liberties that businesses who are not operating under the pretense have as far as what they can deduct against that income. Therefore, their taxes are significantly higher than other industries.

While other tax consultants and accounting practices are now offering services to cannabis businesses, Egort feels he has one great advantage over the others.

“We’re a smaller, boutique firm with seven total employees, so we don’t have the distractions of a larger firm where it’s multilayered and multilevel,” he says. “As a result, we’re able to provide a unique perspective with the same level of expertise but with greater attention and focus for our clients. Our clients will never feel like they’re getting bounced around from one professional to another. We all share the same level of expertise and resources. You’re getting high value no matter who you work with in our office.”

Whether you work with Egort’s practice or any other firm, Egort offers this accounting advice:

“Always ask good questions and surround yourself with really good professionals who are embedded in the industry,” he notes. “Those are the people who will have access to resources specific to the industry, no matter what industry it is, whether it’s cannabis or anything else in healthcare. Also, be sure to listen, be open minded, and have a positive attitude about compliance. Understand that your business advisors, whether they are lawyers, accountants or other business consultants, are all in your corner and are looking to help you become successful and to navigate a very highly regulated, challenging, and often misunderstood, industry.”

Finally, he stresses the importance of working with professionals who you are comfortable working with. For example, do the communication styles match? Is there easy access to the professional—are they readily available?

“You should really decide what’s important to you in the professionals you choose to work with,” he says. “The knowledge base about a subject area is similar for every professional. So, you should decide what’s important to you for a working relationship. The relationship is ultimately what matters. Cannabis is a relationship-driven business. That’s where the value is.”

For more information, visit www.egortcpa.com.