The cannabis industry has grown massively and seems unstoppably ascendant at the moment, thanks to the increasing number of states legalizing medical and recreational cannabis. This ‘green rush’ is creating different types of business opportunities available for entrepreneurs interested in this expanding niche. Opportunities created by legal cannabis include but are not limited to cannabis producers, processors, retailers, licensed distributors, edibles manufacturers, concentrate producer, delivery service, packaging, security service, lab analysis, app development, tech companies, marketing agencies, and industry-specific consulting.
Continue readingAmerican Cannabis Company, Inc. Receives Official Organic Materials Review Institute (OMRI) Certification for Its SoHum Living Soils® Product Line
American Cannabis Company, Inc. (OTCQB: AMMJ) (“ACC” or “Company”), a full-service business-to-business cannabis and hemp consulting solutions provider and licensed owner operator, is pleased to announce that its proprietary potting mix, SoHum Living Soils®, was recently awarded an official certification from the Organic Materials Review Institute (OMRI).
OMRI’s mission is to provide the agricultural industry with peace of mind in knowing that quality materials are consistent and organic as a standard. This organization provided an independent review of SoHum Living Soils®, looking at each individual input that is intended for use in certified organic cultivation and production.
“This is a major achievement for the SoHum Living Soils® product line, “said Terry Buffalo, Chief Executive Officer for American Cannabis Company, Inc. “OMRI certification solidifies our soil product as a top-tier medium for cannabis cultivation. Being OMRI Listed® gives organic farmers a means to verify the credibility of our products, providing assurance that the highest quality ingredients are consistently utilized in soil manufacturing,” continued Buffalo.
SoHum Living Soils® is a fully amended, pH-buffered growing medium that will continue to disrupt the agricultural markets as a ‘Just Add Water’ super soil, acting to eliminate the human error element from cannabis and non-cannabis crop cultivation. Awarded the High Times S.T.A.S.H Award for “Best Potting Mix”, SoHum Living Soils® was created to combat complex cannabis cultivation strategies as it is a complete living soil that optimizes a plant’s genetic potential. Designed to be ready to use, SoHum Living Soils® is a complete and diverse solution for both indoor and outdoor cultivation, combining the best of modern science and agriculture with traditional expertise and farming practices. With this recent approval from OMRI, SoHum Living Soils® is now officially OMRI Listed® and appears on the OMRI Products Lists©.
Ellis Smith, Co-founder and President of American Cannabis Company, Inc., commented: “We are very excited as a team to now have an OMRI certified product to offer cannabis cultivators across the country. It has taken years to develop the blend to where it is today, and this certification puts SoHum Living Soils® on the map as a solution to produce high quality, organic cannabis on both small and commercial scales.”
Those looking to purchase SoHum Living Soils® can do so by contacting an official distributor or visiting the SoHum Living Soils® website at www.sohumsoils.com (for store locator, see https://sohumsoils.com/shop-living-soil/#storelocator). The SoHum Living Soils® potting mix is also available for purchase on the Walmart, The Home Depot and Amazon online store platforms.
To see the OMRI Listed® certificate for SoHum Living Soils®, click here.
American Cannabis Company, Inc. Provides Overall Company Update on Year-To-Date Progress
DENVER, CO / NEWMEDIAWIRE / September 1, 2021 – American Cannabis Company, Inc. (OTCQB: AMMJ) (“ACC” or “Company”), a full-service business-to-business cannabis and hemp consulting solutions provider and licensed owner operator, is pleased to provide an overall update on the Company. The following information describes the Company’s challenges, current work efforts and future pursuits as it positions itself as a reputable and established brand within the regulated markets.
Summary of 2021 YTD Company Highlights
- Successfully acquired Naturaleaf, a long-standing vertically integrated licensed medical cannabis operation, in Colorado Springs, Colorado.
- Continued ongoing exploration of acquisition opportunities in all regulated markets.
- Developed working relationship with a client group in Michigan to deploy, manage, and monitor large-scale commercial cultivation operations.
- Developed a working relationship with a separate client group in Michigan to develop, deploy, and manage multiple licensed retail franchise operations throughout the state
- Contracted by client in Connecticut to finalize business plan and financial pro forma modeling for a recreational dispensary.
- Contracted with a client in New Mexico for pre-licensing, design, and state application technical writing services with the goal of building out a vertically integrated recreational cannabis business.
- Completed a business plan and financial pro forma model for a client in Oklahoma that has finalized a lease. ACC will be the management company behind this operation.
- Completed a business plan and financial pro forma model for a client in Oklahoma looking to build a medical cultivation operation. ACC will also be the management company behind this operation.
- Provided multiple a la carte consulting services for a client in Florida looking to launch an indoor boutique hemp production facility. The Company has been further retained to provide equipment sourcing, SoHum Living Soils®, operational deployment, and 6-month deployment and management services.
- Completed business a plan and pro forma for client cannabis business in New Jersey looking to open a social equity-driven recreational dispensary.
- Engaged in research and development of new products under the SoHum Living Soils® brand line.
- Officially launched new air circulation technology, Bottoms uP™ : The Science of Air Flow.
- Signed an exclusive agreement to manufacture and distribute Her Highness NYC products to Colorado medical and recreational markets.
Consulting Division & The Lasting Impacts of COVID-19
The Company has continued to experience various changes in the volume of new business due to the impact of the COVID-19 global pandemic. With spread of the delta variant of COVID-19 gaining becoming more prevalent, the economic climate continues to shift. In addition, there has been a slow rollout of states with new Medical or Adult-Use cannabis programs.
“It has been a challenging year for the consulting side of the business” said Terry Buffalo, CEO of American Cannabis Company, Inc. “Our primary revenue driver for consulting is typically based on new cannabis programs. However, with states not moving forward with application processes at this time it has slowed down the need for many client groups to pursue any pre-licensing services or deliverables. We anticipate new programs coming online soon. The Company increased our overall marketing efforts using platforms targeted for decision makers, and we are starting to see a response from these efforts. In the meantime, we will be working on current client projects.”
The Company continues to work with groups on long-term projects with long-term revenue potential. Currently, the Company is working with two separate groups in Michigan to provide end-to-end solutions in an effort to form a strategic alliance to support a cannabis business franchise model throughout the state. The Company is working with one group to develop, deploy and manage large commercial-scale operations for the cultivation of recreational wholesale cannabis. This operation will cultivate premiere cannabis cultivars utilizing the best-in-class technologies, software, and workflow. The Company is working with another group to develop and deploy retail franchise and microbusiness locations as well as manage and support franchisees with the model.
Update on Recent Acquisition of Naturaleaf
On April 30, 2021 Colorado’s Marijuana Enforcement Division (MED) and the City of Colorado Springs granted regulatory approvals for the Company’s acquisition and operation of Medihemp, LLC, and its wholly owned subsidiary SLAM Enterprises, LLC, and Medical Cannabis Caregivers, Inc., all doing business as Naturaleaf, a long-standing vertically integrated cannabis business.
As a result of the regulatory approvals and the closing of the asset purchase, the Company acquired Naturaleaf’s three medically licensed retail stores, and a 10,000 square foot cultivation and extraction facility located in the metropolitan area of Colorado Springs. “We are very happy to have successfully completed this first acquisition. Utilizing the expertise of Karen Thomas and her company, Canna Support Services, ACC was able to deliver organized documentation to all regulatory bodies in a format that not only clearly laid out our public company organizational structure, but also provided the necessary details to attain State and local approval quickly,” said Terry Buffalo, CEO of American Cannabis Company.
Naturaleaf has earned a strong reputation for its quality products and patient experience, having served its loyal and growing patient base since 2009. Since acquiring Naturaleaf many changes have been implemented within the cultivation operation. Ellis Smith, President of American Cannabis Company, Inc., commented: “In just the short amount of time that we have taken ownership of Naturaleaf, our team has implemented multiple new processes and facility changes to improve overall facility cleanliness, quality of work life for employees, and environmental conditions for enhanced flower production. From re-painting walls to switching old equipment for state-of-the art LED lighting and highly efficient HVAC solutions, the upgrading process is just getting started. We have also integrated task management software to improve employee and team workflow at each stage of cultivation and post-harvesting. Soon we will incorporate automated watering throughout the facility coupled with our geoponics grow methodology to further increase biomass and flower yields. Until then we are still harvesting plants from previous ownership, as it takes time to move through the plant cycles. Brand integration on the cultivation side will continue through this year as we maintain rollout of our preferred technologies, standard operating procedures, and methodologies for growing clean, cage-free cannabis.”
In addition to the various modifications taking place at the cultivation facility, many improvements are being made to the three (3) licensed retail locations. Tyler Schloesser, Chief Operating Officer of American Cannabis Company, Inc., commented: “When it comes to the brand integration, much of our focus on the retail side has been on product analysis and customer purchase behavior. This year many medically licensed retailers in the area experienced a dip in average daily sales, and Naturaleaf has also felt this effect. To increase awareness of new brand ownership and promote updated daily specials, pricing and other incentives, the team has targeted well known channels with digital and print advertising diversified throughout the city of Colorado Springs and surrounding areas. Recently, we updated the Naturaleaf logo to fall more aesthetically in line with the ACC brand platform. This logo change, along with other upcoming aesthetic changes to the retail stores, will further serve to tell the story of our brand and our mission, which is to bring quality products and service to our patients. Furthermore, we have made changes on the technology side of the retail experience, including the deployment of a new vertically integrated point-of-sale software this month to streamline transactions and a text-based marketing platform to better communicate with our members. We will continue to assess each retail location along with customer demographics and purchasing patterns to further refine and enhance the customer experience.”
Update on Acquisition Targets
In December of 2020, the Company executed a non-binding letter of intent (LOI) with Andina Gold Corporation/Rocky Mountain High to purchase assets of its Good Meds and BOSM Labs operating division, a fully licensed cultivation and extraction operation in Colorado. The Company decided to not complete this transaction.
The Economics of Agriculture & SoHum Living Soils®
SoHum Living Soils® was created to combat complex cannabis cultivation strategies, both on a home and commercial scale. Originating from Southern Humboldt, California, this potting mix is a complete blend that optimizes a plants genetic potential. Last year, the Company experienced significant growth in product sales, and many steps were taken internally to scale production in order to meet the demand.
This year, sales have leveled off from the surge seen in 2020, and operations. While the audience of SoHum Living Soils® has maintained during the pandemic, certain economic factors have hindered the advancement of overall brand growth and sales. Primarily, soil manufacturers across North America have been impacted negatively by increased costs of material inputs and heightened labor costs.
“The Company is pleased to report that despite these industry hurdles, it has maintained inventory of SoHum Living Soils®. The Operations team has worked closely with its soil manufacturing partners to produce and palletize soil on larger scales to ensure product availability across the country,” said Jon Workman, Vice President of American Cannabis Company. “With the price of individual inputs climbing, increased pressure is being put on soil manufacturers on a national scale. Notwithstanding such challenges, our Operations and Sales teams have worked closely reduce the impact on our retailers, distributors, and customer base. We strive to preserve and maintain product quality as well as brand integrity, and it is important to us to maintain product availability.”
Those looking to purchase SoHum Living Soils® can do so by contacting an official distributor or visiting the official website. The SoHum Living Soils® potting mix is also available for purchase on the Walmart, The Home Depot and Amazon online store platforms.
New & Upcoming
The Company has worked diligently to remain on the cutting edge of the fast-paced cannabis industry. In this pursuit, many additions have been made to the company portfolio in effort to advance the Company’s long-term goals and vision to expand brand assets and strengthen industry alliances.
Research and development functions have increased tremendously with the Company now having a 10,000 square foot cultivation facility to perform testing functions and grow trials. Trials on new soil blends and solutions are currently underway to expand the SoHum Living Soils® product line. Furthermore, the Company has been able to officially roll out a proprietary air circulation technology for cannabis cultivation. This solution, called Bottoms uP™ The Science of Air Flow, is essentially a means to move “conditioned” air that is coming from HVAC unit vertically from beneath the plant leaves. This vertical air flow forces the water leaves (which are interlocked late in the flower cycle) apart so that the trapped air beneath the canopy can rise.
This trapped air is the water vapor that is transpired through the plant’s stomata which is on the underside of the water leaves. This solution not only makes air flow more efficient, it also increases transpiration rates and allows for more effective plant growth.
Additionally, the Company recently finalized an exclusive manufacturing and distribution agreement with Her Highness NYC within the state of Colorado. Her Highness NYC features premiere designer cannabis products and accessories designed and engineered thoughtfully for women by women who are passionate and determined to expand the ever-growing market of female consumers. In a recent mid-year report, Akerna (NASDAQ: KERN) highlighted trends showing that since 2019, females have steadily increased their percentage of cannabis purchases, and are while men still purchase a majority of cannabis and related products, women are increasing purchases at a steady pace, and challenging the industry to up its game in order to compete for their business. (https://www.greenmarketreport.com/15-million-women-have-bought-cannabis-in-2021/)
“Securing this opportunity with Her Highness marks a significant accomplishment for American Cannabis Company,” said Terry Buffalo, Chief Executive Officer of American Cannabis Company. Buffalo continued, “Our team is very excited for the potential market demand and is enthusiastic to launch this brand locally starting this September. We will initially offer these products on the medical side via our Naturaleaf retail channels, and then look to bring Her Highness NYC to the rest of the Colorado market. For many years there has been a gap in this industry, as most products have been marketed to male-focused demographics. With female consumers making up an increasingly large portion of the market, brands like Her Highness have established themselves to provide premiere products that are made to deliver experiences that elevate and celebrate women.”
The Her Highness collection of products include bespoke long crutch pre-roll cones packed in gold boxes with refillable gold lighters, the brands famous Pleasure Oil, gluten free 2.5mg micro-dose THC mints, luxuriously engineered gold Giggle and High Priestess vape pens, deluxe ashtrays constructed with marble and brass, gold tone luxe herb grinders and elegant smoking accessories.
About American Cannabis Company, Inc.
American Cannabis Company, Inc. offers end-to-end solutions to existing and aspiring participants in the cannabis and hemp industries. We utilize our industry expertise to provide business planning and market assessment services, assist state licensing procurement, create business infrastructure and operational best practices. We are continuing to grow the company by promoting our operational management services and license the American Cannabis Company brand as well as continuing to analyze acquisition opportunities worldwide. The Company currently owns and operates Naturaleaf in Colorado Springs, Colorado. This medically licensed entity consists of three (3) retail dispensaries, one (1) commercial cultivation facility, and one (1) non-volatile extraction operation. American Cannabis Company has also developed and currently owns a portfolio of branded products including: SoHum Living Soils® – Winner of the High Times S.T.A.S.H. Award for “Best Potting Mix,” The Cultivation Cube™ and the High-Density Cultivation System™. American Cannabis Company also designs and provides other industry-specific custom product solutions.
For more information about American Cannabis Company, please visit:
www.theacclife.com
www.americancannabisconsulting.com
www.americancannabiscompanyinc.com
www.sohumsoils.com
www.americanhempservices.com
www.thenaturaleaf.com
Video Links:
https://americancannabisconsulting.com/resources/video/ (ACC Site)
https://www.youtube.com/watch?v=aENC4aeNZis (High Density Cultivation System)
https://www.youtube.com/watch?v=e9rNxFph_tQ&t (Cultivation Cube)
https://www.youtube.com/watch?v=XoIcopO2yE8&t (SoHum Living Soils®)
ACC Contact:
[email protected]
Phone: 303-974-4770
About Canna Support Services
At Canna Support Services, your business success is our priority. Our mission is to provide the highest level of integrity, confidentiality, professionalism and customer service to you while never compromising our reputation or yours. We provide a suite of support services to the cannabis industry, from license renewals to project management, implementing ultra-efficient work processes through personalized contracted services. Canna Support Services is ready to tackle any challenge and put you on the path to success, and we aim to partner with you to provide the foundation to achieve your business goals.
For more information about Canna Support Services, please visit:
www.cannasupportservices.com
Canna Support Services Contact:
720-237-2500
Forward-Looking Statements
This news release contains “forward-looking statements,” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”. These or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based drugs. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Cannabis Remains an Illegal Schedule 1 Drug Under Federal Law
Thirty-five states, including Colorado, the District of Columbia and four U.S. Territories currently have laws broadly legalizing cannabis in some form for either medicinal and/or recreational use governed by state specific laws and regulations. Although legalized in some states, cannabis is a “Schedule 1” drug under the Controlled Substances Act (21 U.S.C. § 811) (“CSA”) and is illegal under federal law. Cannabis and its derivatives are viewed as being highly addictive and having no medical value. The United States Drug Enforcement Agency enforces the Controlled Substances Act, and persons violating it are subject to federal criminal prosecution.
As a result of the November 2020 federal elections, and the election of Joseph R. Biden as president, it is expected that the federal government will move to amend parts of the CSA and de-schedule cannabis as a Schedule 1 drug.
In late January, 2021, Senate Majority Leader Chuck Schumer said lawmakers are in the process of merging various cannabis bills, including his own legalization legislation. He is working to enact reform in this Congressional session. This would include the Marijuana Freedom and Opportunity Act, that would federally de-schedule cannabis, reinvest tax revenue into communities most affected by the drug war, and fund efforts to expunge prior cannabis records. It is likely that the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act would be incorporated.
Other federal legislation under review for possible submission includes the SAFE Banking Act (or Secure and Fair Enforcement Act), a bill that would allow cannabis companies to access the federally-insured banking system and capital markets without the risk of federal enforcement action, and the Strengthening the Tenth Amendment Through Entrusting States Act (or STATES Act), a bill that seeks protections for businesses and individuals in states that have legalized and comply with state laws).
Notably with respect to our business, on November 1, 2019, Colorado Bill HB-19-1090, was passed and made effective. This law allows publicly traded corporations to apply for and qualify for the ownership of Colorado cannabis licenses. Other states that have legalized cannabis for recreational and/or medicinal use restrict public companies from owning interests in state cannabis licenses altogether, or have enacted regulations which make it difficult for corporations to comply with application requirements, including all shareholders submitting to and passing background checks.
On September 18, 2020, Colorado’s Marijuana Enforcement Division (MED), approved the Company’s application for suitability, establishing the Company as one of the few publicly traded companies authorized to acquire and operate various cannabis licenses throughout Colorado, in both the recreational and medical markets.
American Cannabis Company Acquires Naturaleaf™
American Cannabis Company is proud to announce the acquisition of Naturaleaf™, a vertically integrated cannabis business located in the Colorado Springs area. This is ACC’s first entry into the retail sector of the cannabis industry, making a milestone for our company. We are excited for the ways in which this new phase will allow us to expand what we do.
Naturaleaf has been serving the Colorado Springs area since 2009, establishing a reputation as one of the leading medical marijuana providers in the region. As part of the acquisition, all three medically licensed Naturaleaf retails stores and their 10,000 square foot cultivation and extraction facility will now join the ACC family.
Why Naturaleaf?
American Cannabis Company has been vetting over 100 different acquisition opportunities over the last 18 months, and there were very few opportunities that presented a viable option. ACC is a publicly traded company and has additional SEC rules and reporting requirements which placed additional hurdles on any potential acquisitions.
The specific need to find a company with its books and financials in order in the event of an audit (for compliance purposes), and the ability to demonstrate significant revenue generation created a challenge in finding the right business to acquire. However, Naturaleaf met these requirements, providing an ideal fit for our first entry into the retail sector of the cannabis industry.
What Changes Will You See at Naturaleaf?
Naturaleaf, a medical marijuana provider since 2009, is a vertically integrated business from cultivation to extraction to retail distribution, to which ACC is going to make significant changes and updates to each aspect of the cultivation and extraction operations in order to expand production capacities while maintaining top-shelf quality.
As part of these updates, we will begin using our industry leading, proprietary cultivation methodologies, including SoHum Living Soils®, to ensure a more consistent, high quality flower product. Shifting the Naturaleaf cultivation methodology to SoHum Living Soils and the True Living Organic (TLO) processes will allow us to move to clean, cage-free cannabis production and utilize the most sustainable organic growing practices possible.
Over time, we plan to add automation to the cultivation process, as well as vertical farming (high-density cultivation) for maximization of square footage in the cultivation space to improve production yields at the newly acquired cultivation facility.
There will also be updates to the retail experience to make it more modern and elevate the level of service customers receive.
This will include:
- Making all walls more aesthetic and eye pleasing
- Creating a more minimalist décor
- Installing new floors and cabinets
- Adding interactive screens and menus
- Adding best-in-market products
Naturaleaf Customers Will Benefit
Naturaleaf customers will be the primary beneficiaries of this acquisition while still enjoying the same great service that they have come to expect from the Naturaleaf brand. The current staff are some of the finest patient advocates in the area will continue build relationships and serve patients with the same care that have always enjoyed. In order to further elevate the customer experience, we are adding an updated member loyalty program that includes:
- Daily specials
- Daily happy hours
- Online happy hours
- A variety of giveaways that will be announced throughout the year
Additional Acquisitions May Be on the Horizon
While Naturaleaf represents our initial entrance into the cultivation and retail sectors of the cannabis industry, it is just the beginning for ACC and our expanding brand of cannabis businesses as we are currently working on two other potential acquisitions which we hope will come together shortly:
- Good Meds Cultivation Facility (Denver Colorado)
- BOSM Labs Extraction Company (Denver Colorado)
Both of these businesses are currently licensed for both medical and recreational cannabis operations. Additional announcements will follow once these acquisitions are complete.
After years of refining the standard operating procedures of other companies as part of our cannabis consulting services, it’s exciting for the American Cannabis Company to be able to implement and expand our knowledge into retail and cultivation businesses under our ACC Family of Brands.
We are always on the lookout for new acquisition opportunities. If you are interested in selling a portion or all of your licensed cannabis business, we would like to discuss the opportunity with you to see if it would be a good fit for American Cannabis Company. Please contact us today to get the process started.
How to Open a Cannabis Dispensary: A Step-by-Step Guide
Learn How to Start a Cannabis Dispensary
As the number of states offering some form of legalized cannabis continues to expand throughout the country, with 18 states as well as Washington DC having legalized recreational cannabis and an additional 37 states allowing medical cannabis, very few industries are experiencing the same level of staggering growth occurring in the cannabis industry. Last year alone, legal cannabis sales in the United States grew 46% in 2020, surpassing $17.5 billion for the previous year.
Clearly, while there is great potential for developing a very lucrative business in the cannabis industry, there are also a variety of challenging legal hurdles. Other challenges include a steep learning curve, associated with navigating and understanding the intricacies of such a new and rapidly maturing industry. These alone can make the process of opening a cannabis dispensary quite intimidating. By surrounding yourself with the proper support team of cannabis industry consultants, ancillary professionals and other industry experts, you will be much better equipped to easily navigate the challenges that lie ahead.
Steps to Opening a Cannabis Dispensary
The following step-by-step guide will walk you through the basics of the process. With nearly a decade of experience as nationwide cannabis consultants, American Cannabis Company can ensure you are primed for success when opening your new cannabis dispensary.
Step 1: Research Your State Licensure Requirements
Each town, city and state will have its own unique zoning and licensure requirements for properly opening a retail cannabis dispensary. Most states, if not all, will implement and operate a program-specific licensing structure per the type of dispensary (medical vs. recreational) you intend to open. If your plans are to grow and process your own product to be sold in your retail store, you will two need separate licenses – one that allows for cultivation as well as one that allows for retail distribution. It is imperative that you conduct a thorough due diligence on the various license types offered by your state so that you aptly apply for the proper license.
Remember, each town and each state will have specific deadlines in place for when applications will be due for review before being awarded licensing to start operations. Timing each piece of the puzzle will be vital for not only assembling and submitting the most competitive application possible, but also ensuring that you have met those deadlines to be considered for permitting. Research and understand each step of the application process, including submittal, and be fully prepared to follow those steps as directed.
Step 2: Know Your State’s Cannabis Laws
In addition to knowing your state’s licensure requirements, you will need to research both the local and state laws associated with legally selling cannabis and cannabis based products within each market. It is also important to understand that while each state has drafted their own set of rules and regulations, it is also common for local municipalities to assert additional regulations that must be followed as well. These laws can cover just about every aspect of owning and operating a cannabis dispensary, including:
- Purchase limits
- How much THC can be in a single serving of cannabis and/or cannabis products
- Tax laws associated with selling distribution of cannabis
- Acceptable forms of payment
- How product must be tracked from seed to sale
- Security requirements
Step 3: Build Your Team
There are many facets to running a cannabis distribution business for which you will need to have a strong team in place to ensure successful operations. This team should include:
- An attorney with experience in the cannabis industry
- An accountant with experience in the cannabis industry – There are cannabis-specific tax codes that must be adhered to in order to avoid being penalized during an audit
- A knowledgeable compliance officer to ensure every aspect of your cannabis business maintains full compliance with all local and state regulations
- An experienced retail professional with a strong understanding of POS systems and inventory tracking and reconciliation
- A security contractor to design and maintain each facility’s security system, ensuring on-going compliance with all local and state cannabis security requirements
- An experienced and qualified cannabis cultivator or horticulturalist who can properly manage each aspect of the cultivation operation (if you’re planning on cultivating your own product)
- A medical director (if you are opening a medical dispensary)
Patient Advocacy
In terms of customer and patient advocacy, one of the key aspects of your dispensary’s success will simply be the valued interaction of each visitor’s experience with members of your sales team. Both medical patients and recreational shoppers alike will want to work closely with dispensary staff to determine the safest and most ideal cannabis consumption methods, dosage, usage recommendations and the quality of cannabis products to focus on. Your top priority will be to cultivate close relationships between customers and your sales team dispensing their cannabis products.
A knowledgeable dispensary staff will be able to properly inform customers and patients about the cannabis products available and will ultimately be able to recommend specific cannabis products suitable for each visitor. It will be important that those visitors feel confident in the recommendations from the sales team as it relates to the administration, dosage and quantities of cannabis they are consuming.
Step 4: Create a Business Plan
Once you gain a strong understanding of the rules and regulations governing cannabis dispensaries in your state, it will be time to write a strong cannabis specific business plan that will be crucial for setting up your new dispensary for long-term success. Not only will a robust, comprehensive business plan be imperative during the licensure process, but also for potential investors who will likely need to review each aspect of your business plan before deciding whether or not to invest capital into your new venture. A strong business plan that clearly defines your goals will help you more effectively build your business model in a way that allows you to reach the benchmarks that you and your team have set.
Make sure the following aspects of your dispensary are addressed in your business plan:
- Clientele – Are you catering to the high-end cannabis consumer, the budget-oriented consumer, or a balanced mix of both demographics? It is crucial that you identify your target clientele from the outset so that you can build your business with their specific needs in mind.
- Product Selection – What types of products do you plan to offer? How will your product selection make you stand out from your competitors? What are your plans for expanding product offerings in the future? Having a firm plan of action for establishing key products and selected SKU’s may dictate the rate of speed to market that your business can achieve.
- Business Operations – You will need to identify the specific roles for each of your core team members, including a hierarchy of those making key decision and implementing effective strategies. This aspect of your plan should also outline company hiring practices for the rest of the team, including employee compensation and benefits.
- Cultivation Operations – You will need to detail how you will be sourcing your cannabis products. Will you also be establishing your own in-house commercial grow operation or will you be securing product from a licensed wholesaler within your market? Are you considering a vertically integrated production model for full control of each aspect of cultivation, manufacturing and retail? If so, you will need to implement comprehensive plans for staging such operations as well as implementing industry proven methodologies included for each stage of production and distribution.
- Environmental Considerations – Any business associated with growing a cultivated crop must adhere to environmental regulations. Cannabis specific Environmental Reduction Plans will be incredibly valuable for early stages of planning your business and meeting licensing requirements.
- Inventory Control – As legal cannabis distributors, your business will be legally required to track each product from seed to sale. This will require a comprehensive and state regulated cannabis POS system that will provide detailed tracking necessary to comply with all state laws.
Step 5: Secure Financing
Proper planning and sufficient capital are imperative for ensuring you have required financial resources necessary to get your dispensary up and running. It is crucial to thoroughly research all costs associated with licensing a dispensary in your state, as the fees will vary based on your state’s program requirements. Essentially, financing your new dispensary operations will involve much more than simply paying application licensure fees. You will need to guarantee prior to the start of the licensing process that you have the necessary capital to cover, at a minimum:
- Application Fees
- Licensing Fees
- Annual staffing
- Rent or mortgage at your retail location
- Any upfront renovations necessary at your dispensary
- Financial service costs
- Professional fees
- Security and surveillance costs
- Equipment (computers, POS systems, cash registers, etc.)
- Marketing costs
- Product costs
These various expenses will add up quickly, and you should expect dispensary startup costs to be at least $500,000. Depending on the look and aesthetics you are trying to achieve, it may cost significantly more than this.
Unfortunately, securing financing for a cannabis dispensary is often more challenging than in other industries. Cannabis is still illegal on a federal level, and that means banks are unable to offer you a loan in most cases.
Due to such restrictions, you will need to secure funding through other means. Some of the most common ways to finance your new cannabis business include:
- Business Loans – Credit Unions are a common a common option instead of banks. While major banks are not able to loan you money, it is possible to secure a loan from a credit union.
- Strategic Partnerships – Due to the rapid growth potential in the cannabis industry, many individuals are certainly searching for prime opportunities to get involved in a dispensary business. Developing key partnerships with individuals who possess the financial resources necessary to fund your operation can be an effective way to raise needed startup capital. In addition, you may often find that by choosing the right partner, you have someone whose skill sets complement yours, making your business team even stronger.
- Cannabis Specific Investment Groups – There are many private investors looking to get involved in a cannabis business including cannabis investment groups. However, while this may be a good option for financing, it is important to understand that many of these investors will charge high interest rates, so it is advisable that you explore other possible solutions before choosing to work with a cannabis investment group.
- Angel Investors – These individuals or firms provide funding for a business in exchange for partial ownership or equity. If you have a strong business plan, you may be able to find an angel investor interested in financing your dispensary. Just remember, that anyone who contributes any amount of capital, especially for equity in return, will likely have to be listed on the application and will be subject to extensive background checks.
Step 6: Choose Your Dispensary Location
Once funding has been secured, it will be imperative to locate and secure the right location for your dispensary. When selecting a location, it is important to make sure you adhere to local and state regulations and pay special attention to the established zoning restrictions. For example, some states and municipalities will not allow a dispensary within a certain proximity to schools, parks, churches, community centers, residential areas, libraries, or other areas where large numbers of children are present.
It will be important to do some degree of market research to determine which areas are most ideally suited to not only help your business thrive, but to be properly zoned as well. Some factors to consider include, but are not limited to:
- Which areas are located near your target customer base?
- What are the local ordinances, bans or allowances for each town?
- What is the total number of licenses permitted in each town?
- Is the community cannabis-friendly?
- Does the location have ample parking?
- What is the proximity of the location to major roads or highways?
- Does the location receive a significant amount of foot and vehicle traffic?
- What is the level of competition? Are there several competing dispensaries nearby?
Keep in mind that just because cannabis is legal in your state, it does not mean that all commercial real estate landlords will be willing to allow cannabis business operations. In order to avoid potential problems with a cannabis business-averse landlord, you should discuss your business plans upfront to make sure you rent from someone who is supportive of a retail cannabis business.
Step 7: Learn the Industry Inside and Out
Once you have secured funding and a location, it will be imperative that you learn and understand every aspect of your chosen industry. In order to be a successful cannabis retailer, you must have complete mastery of the technical knowledge associated with running a cannabis business.
It will be vital for you and your team to fully understand, at a minimum, seed-to-sale tracking, inventory control and the importance of industry compliance as well as the fundamentals of customer services and retail sales. Having this background knowledge will ensure ongoing compliance with all rules and regulations as well as make you a better salesman and spokesperson for your dispensary.
Furthermore, this knowledge is especially important if you plan to cultivate and/or process your own product. In this situation, you may need to enroll in a horticulture program, grow room design and electrical engineering courses to acquire the knowledge necessary to set up a functioning grow room and achieve the best possible yields per square foot within the facility.
For the purpose of staying up to date on the continued growth of the industry, you and those around you should also take the time to continue educating yourselves and learn what is trending in the world of cannabis. Different customers will like different products, and staying on top of new products in the cannabis space will keep you in tune with consumer demand.
Step 8: Designing Your Dispensary and Crafting Your Retail Experience
Now comes the fun…
It is time to set up your dispensary! This involves pulling together highly detailed conceptual designs for the layout of your dispensary location and developing a strong retail experience that will appeal to your target customers. This part of the process requires a considerable amount of thought and strategy in order to build a successful brand that will resonate with consumers, creating brand loyalty with long term patient/customer retention.
It is important to understand that dispensaries have certain unique layout features that are distinct from other retail businesses, and you will need to configure your retail space with these items in mind. Working with an architect and interior designer will help you design an efficient space that provides a warm and welcoming atmosphere for your patients/customers.
Make sure you keep the following considerations in mind when you design your dispensary:
- Limited Access Areas vs. Restricted Access Areas – Most states will require you to designate specific sections of your dispensary as “Limited Access Areas” and others as “Restricted Areas”. Limited Access Areas refer to the spaces where your customers can wait to be served, browse your products, and speak with sales associate to complete a purchase. Restricted Access Areas refer to the spaces where your employees perform much of the “behind the scenes” work, such as shipping/receiving, inventory/storage, and product processing. These areas must be off limits to your customers and designing a layout that keeps your public and private areas separate is an important component to the process.
- Medical vs. Recreational – Certain states will require that medical and recreational cannabis areas be kept separate. If you are planning on selling to both sectors, you must make sure your dispensary complies with local regulations. Even if your state or municipality doesn’t require that these areas be kept separate, it’s a good idea to craft a different experience for each section of your dispensary to give them a unique feel.
- Customer Flow – How will customers move through your store? In order to provide the best possible experience, you will want to minimize situations where customer areas become crowded and get bottled up. Make sure your waiting room contains plenty of seating to accommodate customers during a busy rush. You will also want to have enough countertop space and cash registers/POS systems to accommodate sales and keep customers moving through the store. While some customers may be knowledgeable and will know what they want right away resulting in quick transactions, other individuals may require more education from the sales associates. In order to avoid bottlenecks caused by customers who spend a great deal of time engaging sales associates, the sales floor should have enough counter space and staff to serve multiple customers at once.
- Dispensary Aesthetic – Designing a warm, welcoming, professional looking retail space is key. While there may be exceptions to the rule, most customers do not want to walk into a dispensary decorated with jam band posters, tie-dyed tapestries and other typical “stoner” decor. This is a professional business, and it should look the part. Creating an atmosphere that removes the old stigma associated with purchasing cannabis products is crucial. However, for this you have many options – you can choose a modern look, a more natural look, or even a rustic look. Your furnishings, color schemes and even your background music should align with your brand image and should always remain professional and inviting.
Step 9: Hiring Your Employees
While your management team has been put in place as part of step 3, these people may not necessarily be responsible for the day-to-day operations in your dispensary. Now that your store has been designed and you are approaching the time to open for business, it will be time to round out your team with quality, trustworthy employees.
You will need to hire the following staff:
- Sales Associates (Budtenders) – These are the customer-facing employees, and they are crucial to the overall success of your dispensary. Each Sales Associate must possess ample knowledge of the products you carry, be able to talk about them intelligently and make recommendations to each individual customer. A good Sales Associate must also maintain a customer service mindset, as they will serve front line for providing customers with a great retail experience that will keep them coming back. In addition, your sales staff must firmly understand and remain committed adhering to local and state rules and regulations in place for retail cannabis sales.
- General Manager – Perhaps one of the most important positions of your team, this person will oversee all aspects of the daily operations within your dispensary. In addition to hiring staff, training staff, scheduling and other important pieces of team management, your General Manager will be responsible for ensuring your dispensary remains in full compliance with all local and state rules and regulations.
- Greeter or Receptionist – As the first person customers interact with when they visit your dispensary, not only will the greeter be responsible for checking IDs and directing customers they will also set the tone for the entire customer experience though great first impressions.
- Security Staffing – Security staff is an integral part of your operation as well. Because dispensaries have a great deal of cash on-hand, as well as thousands of dollars in product, your security team will be tasked with protecting this cash and product while remaining friendly around customers.
- Inventory Manager – With the strict inventory regulations associated with the cannabis industry, this role is also very important. Your inventory manager will be responsible for inventory auditing and management as well maintaining up to date records of transactions and plant tracking through the system to ensure that all product is accounted for and not being diverted to the black market. Inventory Managers will serve as a key player in maintaining long term compliance within the regulated cannabis industry.
- Purchasing/Vendor Manager – Even if you have your own cultivation facility, you will need to offer a wide range of products from third party vendors, such as edibles, tinctures and other items that are not produced at your cultivation facility. Having a dedicated employee who is responsible for dealing with vendors and negotiating purchasing agreements will be critical, taking a very time-consuming task off the general manager’s plate.
- Software and IT Manager – Your dispensary will require a great deal of technology to run smoothly without interruption. You will need to fully utilize computers for processing intake and tracking inventory. Additionally, you will need a dedicated POS system to manage and track all daily sales. You may even want to provide customers with tablets to browse your products while they wait, to encourage seamless transactions and quick turnover. There are also items such as barcode scanners, receipt printers, and Wi-Fi which are necessary to run your business for which if any of this technology malfunctions, it can prove devastating for your business’s success. Make sure you have an accessible employee or contractor who can promptly fix any of these technical issues that may occur.
American Cannabis Company Can Help You Start Your New Dispensary
As you can see, opening a cannabis dispensary is a tremendous undertaking. With so many parts to the process, it is often helpful to recruit the assistance of a professional consultant. American Cannabis Company has been providing comprehensive cannabis consulting services nationwide for nearly a decade and are fully equipped to guide you through the process to ensure your new dispensary is set up for quick speed to market and long-term success.
ACC is the only cannabis pre-license specialists in the country with a License Right Approach™ designed to help you secure your license and start a successful cannabis dispensary. The professionals at ACC help you navigate your specific state guidelines and regulations to ensure you apply for the right license and fulfill all pre-licensure requirements.
In addition, you will benefit from our experience in all the regulated U.S. cannabis markets, providing insight from which you will realize the full potential of your business. Our consultative process will guide you through all elements of setting up your dispensary to ensure every phase is mapped out and done correctly. The ACC team can help you build your operations from the ground up, giving you the infrastructure necessary to expand and thrive with a forward thinking mentality.
At American Cannabis Company, we are passionately committed to helping you build a successful cannabis business. Contact us today to schedule a consultation.
6 Tips to Create a Successful Cannabis Business License Application
Preparing and submitting a license application for a new cannabis business can be an extremely long, daunting and complicated process. The process is also extremely competitive and as a result, it is crucial to have a compelling application that sets you apart from the other businesses vying for a limited number of licenses. The importance of being fully prepared cannot be stressed enough. If you wait to get organized until application deadlines are announced, it will be too late.
As legalization continues to move through the nation, many states are in the process of implementing regulated cannabis programs, including New Mexico, New York, New Jersey, Virginia, South Dakota and most recently Connecticut. If you are interested in opening a cannabis business in any of these newly regulated states, it is vital that you and your team are highly organized throughout the pre-licensing phase. The following tips will help ensure you are fully prepared for every step of the cannabis licensing process.
1. Clearly Establish the Details of Your Cannabis Business
The first thing you will need to do is clearly identify what your proposed business will do. This includes:
Who will be part of your team?
You will need to establish the specific roles and responsibilities for each included stakeholder.
What type of business you are opening?
Are you getting into the cultivation, processing, wholesale or retail distribution, transportation, social consumption or any combination of these license types?
Where your business will be located?
Real estate is among the most important aspects of the application process for cannabis licensing. The more specific you can be, the better. In some states, licensing bodies may give preference to applicants who have already secured their physical location and can demonstrate that it is properly zoned for your specific cannabis business.
How will you fund your business?
You will need to provide information about your investors and demonstrate that you have the funds, or proof of capital, to successfully launch and operate your new cannabis venture sustainably without interruption.
2. Build a Strong Team
Running a cannabis business will require a dynamic and experienced team as there is far too much for any one person to manage on their own. You will need to have a team of well-rounded professionals with complementary skill sets in place well before the start of the application process. Government officials reviewing license applications will want to see evidence that your team has the background necessary to successfully manage and operate every aspect of your business.
Make sure your team includes the following professionals:
- Lawyers with extensive experience working in the cannabis industry
- Accountants who have worked with clients in the cannabis industry
- Individuals with strong government relations background
- For cultivation operations – A cannabis cultivator or horticulturist who fully understands large scale cultivation and all other agricultural aspects of the business
- For recreational dispensary operations – Retail professionals who understand the key aspects of POS systems, inventory control, customer service etc.
- For medical dispensary operations – A Medical Director and/or Board of Advisors
- Individuals from other highly regulated industries – Liquor, Gaming, Manufacturing etc.
You will also need to be able to demonstrate a track record of business success, either as part of a cannabis operation in other markets or a business venture in other, possibly comparable industries. The state licensing board will want to see that you have a strong track record of compliance with governmental regulations and the ability to get a complex business up and running.
It is also highly encouraged that you perform comprehensive, internal background checks on all of your team members prior to the application process. In addition to the required criminal background checks, members of your state’s licensing board will likely review the moral character of every stakeholder in the business, for which even small red flags in a person’s background can potentially derail your application. It is much better to be aware of any potential issues before you apply for a license and if necessary, you may need to consider replacing any team members who will not hold up to the high levels of scrutiny associated with this process.
3. Become Familiar with Your State’s Licensing Requirements
The cannabis business licensing process varies from state to state and even town to town. It is important that you understand both the state and the municipal regulations associated with obtaining a cannabis license. New cannabis businesses often need local licensing prior to receiving state licensing for adult use markets. When you create your application, you will need to ensure that you are complying with all applicable rules and regulations.
In addition, you will need to become familiar with your state’s licensing structure. Some states issue vertically integrated licenses that grant you the ability to cultivate, process and sell cannabis under one license. Other states, however, may require you to obtain separate licenses for each of the aspects of the industry that you plan to operate in. Therefore, you will need to know specifically which license applications apply to your business. Determining this early on will allow you more time to properly prepare your application.
4. Establish Relationships with State and Local Government Officials
It is beneficial to attend meetings with local and state government officials that focus on details associated with the new cannabis regulations. This will help you better understand what your state is looking for when they review license applications and possibly allowing you to tailor your application to align with state and local requirements.
As you attend these meetings, you will start cultivating personal relationships and establishing a dialogue with the government officials who are running your state’s cannabis industry, providing you an opportunity to explain to them exactly what your business will bring to the community. These connections can play a big role in your ability to secure an application.
5. Get Involved with the Local Community
Community outreach is an absolute vital part of the application process. The officials reviewing your cannabis license application will want to see that you are truly committed to engaging with your community and not simply looking to benefit financially. Furthermore, your community involvement efforts should always be organic and sincere. And most importantly, you should maintain a strong focus on ways you can educate the people in your neighborhood about cannabis and the many ways that your business will benefit the entire community.
The best ways to understand the unique idiosyncrasies of the community is to simply get involved. This will help you establish plans that enrich the area beyond simply providing cannabis products. Giving back to the community in ways that are unrelated to your business will often help make the individuals in your area more welcoming as you begin to establish your operation.
6. Hire an Expert Cannabis Industry Consultant
As the cannabis licensing process has become extremely complex in recent years, it remains crucial that your team has a robust understanding of the technical elements associated with applying for a cannabis license. Experienced cannabis industry consultants have handled this process numerous times in different states and can provide the framework for how to best approach this very competitive process. Industry consultants are also going to be very familiar with the unique regulations associated with your city and state and can ensure that you properly address and include these as part of your application.
In addition to positioning your application for success, cannabis industry consultants can help you build out the specific details of each aspect of your operations. This will ensure you establish a strong foundation for a business that can sustain long term success.
American Cannabis Company Can Give You the Edge You Need When Creating Your Cannabis License Application
American Cannabis Company has nearly a decade of experience helping businesses navigate the competitive cannabis licensing process. Whether you are trying to open a business in a state that just legalized or a state with a previously established cannabis market, we will prepare you and your entire team for success.
We will work closely with you to understand your specific goals and identify the growth opportunities available for your chosen niche. All of our recommendations are customized based on your state’s specific guidelines and regulations, ensuring your license application aligns with all necessary requirements.
Working with our team of cannabis industry professionals will give you peace of mind that you are setting the proper foundation for long term success.
Contact us today to schedule a consultation.
Virginia Discussion on Legalization – Video
Our co-founder and chief consultant, Ellis Smith, recently discussed legalization, laws, and timeline for Virginia’s for adult-use cannabis. Sitting down with Cannabis Tech and Eric Postow, he shares his insights and expertise into this new market.
For full story – Virginia Opens the Door to Cannabis
Is Your Cannabis Business Ready for an IRS Audit?
At American Cannabis Company, we offer robust accounting and bookkeeping services that will get your books in order so that you are fully prepared when it is time to file.
Cannabis Industry Presents Unique Tax Challenges
It is crucial that your company’s books are fully compliant as it relates to Section 280E tax codes. Unfortunately, many accountants and bookkeepers that do not possess the extensive knowledge and experience in the cannabis industry and consequently, may not properly assess how these tax codes will impact your returns.
One of the primary ways Section 280E impacts your taxes involves the deductions you are allowed to claim. Unfortunately, most of your business expenses are not tax deductible based on the terms of Section 280E; however, certain exceptions to this rule do exist. The most notable is that you are allowed to claim deductions for costs of goods sold (COGS). Unless your bookkeeper is familiar with the specific ways Section 280E will ultimately impact your tax liabilities, you may end up severely overpaying, or even worse, underpaying which may open you up to penalties during an audit.
Benefits of Working with a Third-Party Bookkeeper
While it may be tempting to address this important task with an in-house bookkeeper, there are several downsides to this approach:
- You risk operating for extended periods of time without your books being properly managed if your bookkeeper quits, develops a serious illness, or requires a leave of absence for any reason
- There will be a period of “growing pains” while you get a new bookkeeper familiar with your processes after being hired
- Tax laws, particularly those related to the cannabis industry, are constantly evolving and your in-house bookkeeper will need to devote a significant amount of time to continuing education courses to ensure you remain current on the changes in tax regulations
By working with a third-party bookkeeper, you can sidestep these issues, which can all be potentially devastating to your business. You will have the continuity necessary to stay on top of your bookkeeping. In addition, when you choose a third-party bookkeeper with extensive experience in the cannabis industry, you will have peace of mind that all changes to tax regulations will be accounted for.
Accounting and Bookkeeping Services Focused on the Needs of Cannabis Businesses
At American Cannabis Company (ACC), we can help to ensure that your accounting and bookkeeping needs are handled properly. We provide comprehensive accounting and bookkeeping services tailored to the unique needs of a cannabis business. This industry-specific approach is crucial to your ability to grow your business and ensure ongoing success.
You will experience a variety of benefits when you work with ACC for your accounting and bookkeeping needs:
- Trained accounting and bookkeeping professionals who also have extensive knowledge of the cannabis industry
- Pristine bookkeeping that provides you greater control over your financial data
- Assistance with preparing and filing tax returns
- Knowledge of Section 280E and how it impacts your tax deductions
- Accurate monthly statements
- Highly developed systems to keep your business’ finances organized
- Tracking of critical financial KPIs
If you filed for an extension with the IRS, there’s still time for us to make sure your tax information is in order. Find out how American Cannabis Company can help with your accounting and bookkeeping needs.
Contact us to schedule a consultation.
Arizona Cannabis Legalization: What You Need to Know
Arizona passed Proposition 207, the Smart and Safe Act, during the November 2020 election to legalize the recreational use of cannabis alongside with the medical cannabis program established in 2010. On January 22, 2021, the Arizona Department of Health Services (ADHS) began approving applications for which dispensaries have already opened for business. The speed for which this process was completed makes Arizona the fastest state to successfully launch their cannabis program.
While the program is already underway, there are many rules and regulations which must be followed before you can open a dispensary. The following information will provide an overview of Proposition 207, including what you need to know if you are planning on entering and operating in Arizona’s new recreational cannabis industry.
Purchasing Cannabis
According to the new law, adults who are at least 21 years old can legally purchase cannabis products from a nonprofit state licensed dispensary. A wide range of products will be available for purchase, including flower, extracts, edibles, salves, topicals and capsules.
Proposition 207 allows individuals to:
- Purchase up to 1 ounce (28 grams) of cannabis with no more than 5 grams in the form of concentrates
- Cultivate up to six (6) cannabis plants at their primary residence
All recreational cannabis purchases are subject to a 16% sales tax. While delivery services are available for medical cannabis patients, these services will not be offered for recreational cannabis customers at this time.
As part of the state’s medical cannabis program, patients can purchase up to 2.5 ounces (70 grams) in a 14-day period. There is a state-provided tracking system used by all dispensaries to ensure these limits are adhered to. Medical cannabis purchases are subject to a 6.6% state tax and each city is entitled to levy an additional tax of 2-3% if they desire.
Cannabis Licensure in Arizona
The ADHS is responsible for issuing licenses to businesses interested in opening a new dispensary. The following rules have been established to govern the licensure process:
- Application submissions for a cannabis establishment license (recreational dispensary license) started being processed on January 19, 2020
- No more than two (2) recreational dispensary licenses will be issued in counties without medical cannabis dispensaries
- If a county already has a medical dispensary, only one recreational dispensary license will be issued
- Medical dispensaries that are issued a recreational license will be able to operate both aspects of their business from the same location
Upon receiving a license from the ADHS, a business will be permitted to operate:
- A single retail location that sells, cultivates and manufactures cannabis products
- A single off-site cultivation facility which can be used to cultivate and manufacture cannabis products, but not sell them to the public
- A single off-site location that manufactures, packages and stores cannabis products, but does not sell them to consumers
Social Equity Ownership Program
The ADHS is allowed to issue 26 licenses to applicants who qualify under the Social Equity Ownership Program. This program is being created to promote the ownership of cannabis businesses by people who have been disproportionately impacted by the enforcement of prior cannabis laws. Applications for these special licenses will start being accepted within six (6) months of finalizing the rules of the Social Equity Ownership Program. Currently, there is no timeline for establishing the rules associated with this program.
Cannabis Facility Agent Licenses
In order to work for a cannabis business or testing facility, individuals must obtain a Facility Agent License. Only one facility agent license is required per person and will permit those individuals to work at multiple cannabis businesses or testing facilities.
In order to obtain a Facility Agent License, you must:
- Be 21 or older
- Have not been convicted of an excluded felony offense
American Cannabis Company can Help Establish your New Business
Setting up a new cannabis business can be more complicated than you would expect. As there are many legal hurdles to navigate, it is important to have the help of an experienced cannabis consultant who can successfully guide you through the process and ensure your new business is set up for long term success and position itself as a leader in Arizona’s fledgling recreational cannabis industry.
At American Cannabis Company, we have been helping entrepreneurs just like you navigate the waters of establishing new cannabis businesses in each market across the country. Our unique License Right Approach™ is specifically designed to help you obtain a cannabis license and build a foundation for a successful business.
As part of our exclusive approach, you will receive:
- The proper guidance necessary to ensure you adhere to all Arizona regulations
- A detailed explanation of the opportunities available that align with your specific business goals
- Cohesive and comprehensive business planning
- Our exclusive Green Profits Operations Roadmap™ to help you realize the full potential of your business
- Our Aligned Success Guarantee™
When you work with ACC, you can count on receiving a flexible approach that puts your unique needs and goals at the forefront. We will help you build your business from the ground up and establish a framework that can help you grow in the burgeoning Arizona cannabis landscape.
Schedule a Consultation
Please contact us today to schedule a consultation. We provide cannabis consulting services nationwide.
American Cannabis Company, Inc. Announces Exclusive Contract to Manufacture and Distribute Her Highness Branded Products in Colorado
DENVER, CO / NEWMEDIAWIRE / May 13, 2021 – American Cannabis Company, Inc. (OTCQB: AMMJ) (“ACC” or “Company”) is pleased to announce that it has finalized an exclusive manufacturing and distribution agreement with Her Highness NYC (“Her Highness”) within the state of Colorado. Her Highness features premiere designer cannabis products and accessories designed and engineered thoughtfully for women by women who are passionate and determined to expand the ever-growing market of female consumers.
“Securing this opportunity with Her Highness marks a significant accomplishment for American Cannabis Company,” said Terry Buffalo, Chief Executive Officer of American Cannabis Company. Buffalo continued, “Our team is very excited and enthusiastic to launch Her Highness in Colorado. For many years there has been a gap in this industry, as most products have been marketed to male-focused demographics. With female consumers making up a large portion of the market, brands like Her Highness have established themselves to provide premiere products that are made to deliver experiences that elevate and celebrate women.”
The Her Highness collection of products include bespoke long crutch pre-roll cones packed in gold boxes with refillable gold lighters, the brands famous “highly orgasmic” Pleasure Oil, gluten free 2.5mg micro-dose THC mints, luxuriously engineered gold Giggle and High Priestess vape pens, deluxe ashtrays constructed with marble and brass, gold tone luxe herb grinders and elegant smoking accessories.
Allison Krongard, co-founder of Her Highness also commented: “As a New York-based brand, we could not be more excited and honored to bring our cannabis collection to Colorado, ground-zero for regulated cannabis. Through its retail channels as well as via the wholesale market, American Cannabis Company will be providing consumers with our catalog of female-forward cannabis couture.” Laura Eisman, co-founder of Her Highness also commented: “We’re thrilled to have ACC as a licensing partner as we look to expand into additional legal markets throughout the US and internationally. With a mission to introduce and educate women on the benefits of cannabis, we aim to offer products tailored to enhance the experience of life. The future of cannabis is feminine, and we are at the forefront.”
About American Cannabis Company, Inc.
American Cannabis Company, Inc. offers end-to-end solutions to existing and aspiring participants in the cannabis and hemp industries. We utilize our industry expertise to provide business planning and market assessment services, assist state licensing procurement, create business infrastructure and operational best practices. We are continuing to grow the company by promoting our operational management services and license the American Cannabis Company brand as well as continuing to analyze acquisition opportunities worldwide. American Cannabis Company also developed and owns a portfolio of branded products including: SoHum Living Soils® – Winner of the High Times S.T.A.S.H. Award for “Best Potting Mix,” The Cultivation Cube™ and the High-Density Cultivation System™. American Cannabis Company also designs and provides other industry-specific custom product solutions.
For more information about American Cannabis Company, please visit:
www.theacclife.com
www.americancannabisconsulting.com
www.americancannabiscompanyinc.com
www.sohumsoils.com
www.americanhempservices.com
Video Links:
https://americancannabisconsulting.com/resources/video/ (ACC Site)
https://www.youtube.com/watch?v=aENC4aeNZis (High Density Cultivation System)
https://www.youtube.com/watch?v=e9rNxFph_tQ&t (Cultivation Cube)
https://www.youtube.com/watch?v=XoIcopO2yE8&t (SoHum Living Soils®)
About Her Highness
Backed by Merida Capital, Her Highness is a female-first lifestyle cannabis brand based in New York, designed for the modern cannabis consumer. With an elevated brand aesthetic, a sophisticated collection of cannabis and CBD products and stylish consumption accessories, Her Highness is created for the feminine lifestyle. Her Highness’ accessories and CBD line retails online with their THC line available in California, Nevada, Massachusetts and soon, Colorado, Pennsylvania and Ohio. Curated with female-friendly effects like clear head, sans-munchies, anxiety-free and high-functioning, Her Highness products are developed to benefit women, addressing specific needs in their daily lives. Through a partnership with the Last Prisoner Project, Her Highness raises funds for women with non-violent cannabis convictions working towards or reentering after release.
For more information about Her Highness, please visit:
www.herhighness.com
@herhighnessnyc on all social platforms
ACC Contact:
[email protected]
303-974-4770
Her Highness Media Contact:
[email protected]
Forward-Looking Statements
This news release contains “forward-looking statements,” which are not purely historical and may include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities and words such as “anticipate”, “seek”, intend”, “believe”, “estimate”, “expect”, “project”, “plan”. These or similar phrases may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects, the future U.S. and global economies, the impact of competition, and the Company’s reliance on existing regulations regarding the use and development of cannabis-based drugs. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. For more information, please visit www.sec.gov.
Cannabis Remains an Illegal Schedule 1 Drug Under Federal Law
Thirty-five states, including Colorado, the District of Columbia and four U.S. Territories currently have laws broadly legalizing cannabis in some form for either medicinal and/or recreational use governed by state specific laws and regulations. Although legalized in some states, cannabis is a “Schedule 1” drug under the Controlled Substances Act (21 U.S.C. § 811) (“CSA”) and is illegal under federal law. Cannabis and its derivatives are viewed as being highly addictive and having no medical value. The United States Drug Enforcement Agency enforces the Controlled Substances Act, and persons violating it are subject to federal criminal prosecution.
As a result of the November, 2020 federal elections, and the election of Joseph R. Biden as president, it is expected that the federal government will move to amend parts of the CSA and de-schedule cannabis as a Schedule 1 drug.
In late January, 2021, Senate Majority Leader Chuck Schumer said lawmakers are in the process of merging various cannabis bills, including his own legalization legislation. He is working to enact reform in this Congressional session. This would include the Marijuana Freedom and Opportunity Act, that would federally de-schedule cannabis, reinvest tax revenue into communities most affected by the drug war, and fund efforts to expunge prior cannabis records. It is likely that the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act would be incorporated.
Other federal legislation under review for possible submission includes the SAFE Banking Act (or Secure and Fair Enforcement Act), a bill that would allow cannabis companies to access the federally-insured banking system and capital markets without the risk of federal enforcement action, and the Strengthening the Tenth Amendment Through Entrusting States Act (or STATES Act), a bill that seeks protections for businesses and individuals in states that have legalized and comply with state laws).
Notably with respect to our business, on November 1, 2019, Colorado Bill HB-19-1090, was passed and made effective. This law allows publicly traded corporations to apply for and qualify for the ownership of Colorado cannabis licenses. Other states that have legalized cannabis for recreational and/or medicinal use restrict public companies from owning interests in state cannabis licenses altogether, or have enacted regulations which make it difficult for corporations to comply with application requirements, including all shareholders submitting to and passing background checks.
On September 18, 2020, Colorado’s Marijuana Enforcement Division (MED), approved the Company’s application for suitability, establishing the Company as one of the few publicly traded companies authorized to acquire and operate various cannabis licenses throughout Colorado, in both the recreational and medical markets.