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Emerging cannabis packaging companies are trying to address legal weed’s plastics problem

The idea behind Ron Basak-Smith's cannabis packaging company was simple.

"I love cannabis," says the co-founder of Denver's Sana Packaging, "and I hate what packaging waste is doing to the environment."

Sana Packaging is one of a few new companies, including Boulder's STO Responsible and Oakland's SunGrown Packaging, that are attempting to solve cannabis's plastic waste problem. Though there's no data yet on how much packaging waste is generated by the newly legal industry, anyone who has ever walked into a dispensary has probably noticed that every product is contained in its own, typically disposable, package. In Oregon, that's primarily due to Oregon Liquor Control Commission regulations—like most states with legal weed, Oregon requires anything that comes out of a dispensary to be encased in odor-proof and childproof packaging. Plastic is often the cheapest option.

So while at grad school at the University of Colorado Boulder, Basak-Smith and business partner James Eichner began what would become Sana Packaging, which manufactures tubes for pre-rolls and vape cartridge tubes, plus rectangular containers for flower and edibles, out of hemp-based and reclaimed plastic. The company officially launched last year.

Creating eco-friendly packaging for cannabis businesses seems like a no-brainer. "There's an ethos within the cannabis space that wants to do better for the environment," says Basak-Smith. "There's a lot of people in the cannabis space that care about the environment."

But even now that multistate, regulation-approved options are available, sustainable packaging is far from the norm. For now, companies like Sana serve a niche market. In a sense, they're trying to create a demand more than serve one. At 25 cents each, Sana's pre-roll tubes are more than three times as expensive as plastic tubes. That's a tough sell in a highly competitive industry that's still in its infancy. Especially in Oregon, where the market is inundated with surplus crop, it can be tough to convince financially desperate farmers and dispensaries that they need to invest in packing.

"The biggest thing is going to be willingness to pay," says Basak-Smith. That and taking the onus off the consumer: "The mindset that consumer education is what is going to solve this problem is a little shortsighted. Companies that are manufacturing these materials should be using some percentage of reclaimed or recycled material, or a plant-based plastic or something along those lines."

For small farms, sustainability often comes at a cost. One of Sana's Oregon clients is Rising Leaf Farms, a natural, sun-grown operation just south of Eugene in the foothills of the Cascades. In its three-year history, Rising Leaf has never used single-use plastic to package its products. That's required the farm's four owners to get creative. Before they could find a sustainable company that could custom-make pouches for half-gram pre-rolls, Rising Leaf bought from a bulk seller, and cut down and resealed each package themselves.

Even now, Rising Leaf hasn't been able to eliminate waste from its supply chain. Its compostable pre-roll bags aren't considered childproof, so the OLCC requires dispensaries to place the product in a plastic "exit bag" after it's sold.

In order to be deemed child-resistant, cannabis packaging has to be tested by a third party. "It's an uphill battle to be considered child-resistant," says Rising Leaf co-owner Stephanie Doan. "I think the question is, is the child-resistant packaging really necessary?" Nicotine and alcohol, both of which are poisonous in smaller doses than cannabis, do not require childproof packaging. But there's hardly a movement to change the regulations for those industries.

"I think there's too many other things to worry about," says Doan's partner in Rising Leaf, Jason Brainard. "By the time you rewrite the book, you're three, five years out."

"And then you're broke," adds Doan.

Basak-Smith agrees that reducing cannabis packaging waste on a large scale is a multifaceted issue. Still, he sees the fact that the industry is still finding its feet as an opportunity.

"Because it's a new industry, it has the ability to get off on the right foot," he says. "If we don't invest now and invest in unsustainable practices, it's going to be harder to change that further down the road."

New call for unified global CBD testing standards

New standardized purity tests would prevent unscrupulous CBD companies gaming the system to secure favorable results, says a U.K. industry body.

The London-based Centre for Medicinal Cannabis (CMC) is to gauge the appetitive for a new set of internationally-recognized CBD testing guidelines. In a press release the CMC says it has appointed leading chemist Dr Parveen Bhatarah, to investigate how to overcome the ‘barriers to analytical method standardization in the CBD-space’.

Recent research from the CMC highlighted the size of the problem currently facing the industry.

CBD Compliance Concerns

It found out of 29 of U.K. CBD products that underwent testing, 11 had less than 50% of the advertised CBD content. This was reinforced by the Cannabis industry Trade Association Chairman Mike Harlington who said in some recent tests just 11% of CBD products were able to verify their content claims.

And a third U.K industry trade body CannaPro never shirks its responsibility in policing its members having recently withdrawn the compliance certificate of a CBD retailer. In a press release the CMC says standardised methods have yet to be developed, and, as a result products can show different results depending on who does the testing. 

Shopping For Favorable Results

‘This can lead to companies shopping around for favorable testing results that do not truly reflect what the products contain,’ it says. It recommends a new standard method agreement would aim for equivalence when testing for things like; carcinogenicity, heavy metals, residual solvent, mycotoxins, pesticides and terpenes

Dr Bhatarah said her collaborative research initiative will be made up of CMC members and continued: “If there is no standardisation, there is no recourse for companies or customers to question test results. The lack of standardisation is hurting the industry’s ability to present cogent arguments on key matters such as defining zero-detectable THC.”

She went on to such harmonization is critical for this rapidly expanding new industry to adhere to national, European and International standards criteria, such as European Commissions Novel Food authorization.

Why regenerative farming is the future of cannabis cultivation

The sweet scent of Pineapple Punch — Elysian Fields’ signature strain — fills your nostrils the moment you set foot on the 50-acre off-grid cannabis farm in Mendocino County. It makes you want to take really deep breaths. The three farmers who run the place are all under 40 and at least one of them grew up in these hills learning to cultivate cannabis outdoors, writes Danielle Simone Brand.

As licensed growers working with Flow Kana, a syndicate of craft cannabis cultivators, Elysian’s farmers produce about 500 pounds of commercial cannabis each year alongside cut flowers and vegetables like peppers, tomatoes, and squash. Regenerative farming techniques are in use here: Cover crops protect the soil and companion planting enriches it; non-toxic pest management techniques safeguard the wellbeing of pollinators and wildlife; the abundance of open space ensures that farming has low impact on the land; and working animals like sheep and chickens control weeds, fertilize, and aerate the soil. A giant German shepherd/wolf mix helps keep the farm running smoothly, too. 

Elysian Fields and its neighboring farms have history here. In the 1970s, those following the back-to-the-land impulses of the hippie movement came to Mendocino’s hills to homestead. They found cannabis a natural cash crop because the region is well suited to growing outdoors and was, for a time, remote enough to dodge law enforcement. 

Because of its elevation and hilly terrain, agricultural mega-corporations (“Big Ag”) never made it to the region. But cannabis thrives; today, an estimated 80 percent of the cannabis consumed in the U.S., as well as a staggering amount of biodiversity within the plant’s genetics, comes from Mendocino, Humboldt, and Trinity Counties — a.k.a. the Emerald Triangle. Well before adult use took effect in California, it was one of the hubs of the cannabis industry. But while the estimated 53,000 small pot farms in the region may have good product, they often lack the means to efficiently test, process, package, and label that product. They also lack a statewide distribution system. 

That’s where Flow Kana comes in. Founded by a husband and wife team, Michael “Mikey” Steinmetz and Flavia Cassani, Flow Kana is a relatively new venture that’s partnering with small, licensed farmers all over the region by offering them a pipeline to market. At a recent Flow Kana event called Cannabis as a Catalyst for Change, situated on the sprawling campus of the former Fetzer winery estate in Redwood Valley, Steinmetz pointed out that small farmers alone don’t have much of a chance in the new market. But he and his team are seeking to prove that cannabis doesn’t have to go the way of Big Ag, and that decentralized models can work. “Craft and scale aren’t mutually exclusive,” Steinmetz told the crowd of cultivators, retailers, manufacturers, investors, journalists, and other industry folks. 

For now, it seems to be true. According to BDS Analytics, Flow Kana, offering numerous strains of sungrown cannabis produced by a network of about 200 small farmers, is the best-selling flower brand in the state. The vision is to do good for the earth and the farmers while purveying good quality weed. 

Environmental Critiques of the Cannabis Industry

Cannabis is a plant, of course, and according to Mendocino farmers and the folks at Flow Kana, that means it’s supposed to be grown outdoors. But prohibition drove the industry toward indoor cultivation, which involves massive inputs of fossil fuels for controlling light and temperature, the use of pesticides and artificial fertilizers, as well as large water needs. And while outdoor growers — particularly those still selling on the illicit market — can also mismanage water resources and use toxic chemicals, those partnering with Flow Kana are all licensed by the state and vetted for their earth-friendly chops.

Indoor cannabis cultivation focuses on one thing — cannabis as a monoculture. That stands in opposition to more traditional, outdoor farming techniques that seek to preserve diversity in plant and animal species. What’s more, indoor cultivation is hard on the growers themselves. Spending long hours in crowded rows under harsh lights is a far cry from days spent with sun, living soil, and fresh air. 

In other words, it’s hard to grow indoor cannabis in an environmentally sustainable way that also promotes the wellbeing of cultivators. However, indoor plants do have certain advantages that consumers like. For instance, THC percentages from indoor plants tend to be higher, and the flowers’ appearance and scent may seem more attractive. And while many consumers still seek out the highly prized indoor strains, Flow Kana is trying to change the narrative of what constitutes good quality weed. 

How Cannabis Can Do Good for the Environment

Farmers in Flow Kana’s network are using the regenerative farming techniques detailed above; they consider companion planting, the use of rainwater catchment systems, and diversified crop portfolios, among other practices, to be “beyond organic,” where improving the land is the bottom line — the primary purpose of cultivating cannabis. Big Ag, along with the fossil fuels industry, is hugely responsible for the current climate crisis, and small-scale farming has much less impact on the land. Further, outdoor growers tend to cite cannabis’ ability to sequester carbon and thereby help reduce the total CO2 percentage in the atmosphere.

Changing the Narrative of Quality Cannabis

Even beyond its more positive environmental impact, farmers at the event argued that their cannabis, grown in living soil, is actually tastier and more appealing — if you know what to look for. Though the market seems to chase higher concentrations of THC like those found in indoor grows, elevated THC content doesn’t necessarily translate to a better consumer experience. Craft cannabis — like certain craft beers — may have lower THC concentrations on average, but many consumers are finding that the rich taste and diverse profile of cannabinoids and terpenes yields an equally or even exceedingly pleasurable experience.

Another factor driving the market is terroir, a term often used in the wine industry to indicate the nuances of a wine’s flavor based on its geographical origins. In cannabis, too, the notion of terroir is starting to catch on. "It's made of the place," says Tina Gordon, owner and operator of Flow Kana partner Moon Made Farms, of the cannabis she cultivates. “Like the rain that’s sitting in the pond — that pond may have been there for hundreds of thousands of years. And the microbiome — the indigenous microorganisms — they’re all going to influence the tone, the scent, the frequency, and the vibration of the flower.”

Gordon’s 9,600 square foot outdoor canopy spanning 40 acres has achieved Sun + Earth certification, a third party vetting process that ensures growers are living up to regenerative farming standards and treating workers fairly. She’s now in the process of attaining a second designation, DEM Pure, a peer-to-peer certification with similar requirements.  

“I think people are starting to ask the question, ‘where did my cannabis come from?’” Gordon told Civilized. “Where and when was this flower cultivated? Who cultivated it? What was the intention behind this flower? Because there are options — and for different people, different things are going to matter.” For her part, she hopes that consumers will vote with their wallets and their pipes for sungrown cannabis from Northern California. 

Price may also help drive consumer’s choices, as sungrown cannabis is more affordable at the dispensary because it’s cheaper to produce. It’s a rare scenario where the less expensive product is also the more earth-friendly and farmer-friendly choice. 

Hemp Has a Role

For some in the industry, it’s about much more than what we smoke or consume. Winona LaDuke, the 1996 and 2000 Green Party vice presidential candidate on Ralph Nader’s ticket, is an indigenous rights activist and hemp farmer who wants to talk about the clothing industry. At the conference, LaDuke made the case for a renaissance of hemp farming and processing in her home state of Minnesota, where hemp mills once flourished. Cotton, she says, uses massive water and pesticide inputs while synthetic textile alternatives are often derived from petroleum. “We’re addicted to fossil fuels,” she told conference attendees. “We’re even wearing them.” 

On the White Earth Indian Reservation where LaDuke farms, environmental stewardship is integral. “Our land is our garden,” she said. “We need to ask ourselves, ‘what is our relationship to the land we live on?’” And replacing cotton and synthetic fabrics with regeneratively grown hemp is an actionable step toward a better relationship to our land and the earth as a whole.

For many small, outdoor cultivators in the hills of Mendocino, growing cannabis is a legacy and a livelihood — but also a passion. As Tina Gordon of Moon Made Farms put it, “I completely fell in love with this plant, and it changed my life.”

Growing use as old cannabis stereotypes are debunked

Cannabis has been used for medicinal purposes for centuries, but despite the therapeutic benefits of the plant, international regulators ultimately deemed it unsafe for the public due to its marijuana derivative for many years.

There are many unhelpful cannabis stereotypes pushed by politicians and media that prevent people from accessing this medicine. The marijuana plant, which is part of the cannabis family, is linked to containing the majority of THC cannabinoids, which cause the psychoactive effects that cannabis is generally associated with.

However, extensive research and studies have revealed that cannabis can be successfully used to treat a variety of medical conditions. For example, researchers suggested that cannabis can effectively be used as an alternative to traditional opioids to treat moderate to severe pain.

Cannabis stereotypes

A study published in the Journal of Psychoactive Drugs evaluated over 1,000 subjects taking legal marijuana. Among the participants, 65% of the people said they were taking cannabis for pain treatment and 80% of the group found it very or extremely helpful.

As a result, this led to 82% of the group reducing or eliminating their over the counter (OTC) medication intake. Notably, 88% of the group mentioned that they were able to completely stop taking opioid painkillers. Furthermore, 74% of the subjects said that marijuana helped them sleep better.

Chronic pain and insomnia are two of the most prevalent medical conditions that adults suffer from and Dr Gwen Wurm, Assistant Professor of Clinical Pediatrics at the University of Miami Miller School of Medicine, highlighted that 20% of American adults suffer from chronic pain and one in three do not get enough sleep in general.

Furthermore, as research and studies continue to better develop our collective understanding of the plant, scientists are debunking the cannabis stereotypes. This, in turn, is driving the large influx of first-time users to the cannabis industry.

Global legal market

As such, according to data compiled by Zion Market Research, the global legal marijuana market was valued at USD 16.71 Billion in 2017. By 2024, the market is projected to reach USD $62.96bn (~€57.15) while registering a CAGR of 21% during the forecast period between 2018 and 2024.

More than half the US has legalised cannabis for medical purposes and Canada had moved to legalise medical cannabis for specific medical purposes back in 2001.

Health Canada split medical patients into two different categories based on their medical diagnosis: Category 1 patients are eligible for a medical cannabis prescription if they suffer from severe pain, muscle spasms, anorexia, weight loss, nausea from cancer, HIV/AIDS, and epilepsy. Meanwhile, Category 2 patients are those who have debilitating symptoms of medical conditions, other than the ones listed in Category 1.

Since then, the Canadian government had fully legalised adult-use cannabis in 2018, but still imposes regulations and certain restrictions on cannabis-based products.

These emerging products are expected to deliver annual revenues of more than CAD $2.5bn (~€1.71) and generate higher profits for retailers than cannabis products that are already legal, according to Deloitte’s annual cannabis industry report, such as regular flower.

Notably, certain Canadian provinces, such as Ottawa, are already finalising their regulations in anticipation of the legalization of alternative cannabis products. However, although Health Canada did not release any further comments on the matter, the Canadian federal government noted that the legalisation of edibles, extracts, and topicals will come to pass “no later than October 17, 2019”.

Deloitte also expects more first-time users to end into the industry and try cannabis for the time following the legalisation as cultivators and producers are beginning to ramp up operations in efforts to create a large inventory for the future.

‘Green Light’ documentary throws the veil back on medicinal cannabis

The ACT may have just legalised the use of cannabis, but those seeking the drug for medicinal purposes are being left behind. ‘Green Light’ tells the story of two men risking their freedom to treat those in need.

Against the backdrop of the ACT legalising cannabis use and the pending three year anniversary of the government’s highly derided cannabis medicine licensing scheme, comes a documentary that deals with the reality of medicinal cannabis patients on the ground.

Green Light tracks Nicholas Morley and CBD Luke as they provide those in need with organic, whole-plant cannabis medicines, which is the norm in this country, as legal medicinal cannabis is wrapped in so much red tape, it’s nearly impossible to obtain, so those suffering must turn to the black market.

Both Luke and Nicholas have lived a life. Morley had a three-decade-long career in the fashion and music industries that saw him found cult fashion label Buddhist Punk.

However, these days, the pair are taking the compassionate route: risking their freedom to help others.

And not only does Green Light tell a compelling story, but it’s been beautifully shot in the NSW Northern Rivers region by director Ned Donohoe. And the patients that the documentary engages with, make the viewer realise just how valuable the work is that Nicholas and Luke are carrying out.

Legal, but inaccessible

As Green Light points out, cannabis was made illegal in Australia in 1928. And the two best-known molecules present in medicinal cannabis oils are CBD and THC. In the mid-1990s, a system was discovered in the human body, which responds with these molecules and promotes health.

Over the last decade, the awareness of the benefits that medicinal cannabis can bring to those suffering serious conditions grew to such an extent that the federal government passed laws in 2016, which established a medicinal cannabis licensing scheme.

Under the oversight of the TGA, this scheme came into effect on 30 October 2016. Although, three years on, the Office of Drug Control has only issued 20 medicinal cannabis licenses. And what’s legally available is a small trickle of local product and exorbitantly priced imported medicine.

As the Medicinal Cannabis Users Association of Australia related last month, there have only been 14,000 cannabis prescriptions issued since the scheme has been in operation, while a modest estimate of the number of people using cannabis medicine in this country is 100,000 patients.

The path with heart

So, right now, the medicinal cannabis gatekeepers in this country – whether that be the TGA, politicians, the pharmaceutical industry, or the prejudice some medical practitioners harbour about the plant – are withholding relief from the sick and dying.

And Nicholas and Luke have stepped forward to tell their story, which is similar to many other Australian cannabis oil producers, who’ve found themselves in the position of being able to help the sick, when no one else is prepared to.

Sydney Criminal Lawyers spoke with Nicholas Morley about how he came to take this compassionate path, his take on the local legal medicinal cannabis system, and why it shouldn’t be that good people have to break the law in order to benefit their fellow human beings.

Firstly, ‘Green Light’ is a new documentary that follows you and your partner as you provide sick people with cannabis medicine. Prior to this vocation, you actually had a successful career in fashion.

Nick, how did you find yourself helping patients in this way? And as there are risks involved, why would you say you do it?

I’d had quite a long career. I was a hairstylist, a makeup artist and a designer. Then I went back to hair and makeup. I did a whole bunch of different things.

I was living in Bali. Then I moved back to Australia. I spent a year in Sydney and then I moved to Byron. And when I moved there, I was really depressed. I’d had a bad breakup. And things just went horribly wrong.

I met Luke, and he helped me deal with that depression. One of the ways that we did that was by using CBD.

Once I got myself well, I had an epiphany. I thought I can’t go back to working in fashion: you’re either helping people sell clothes that will end up as landfill, or creating images that are there today, and gone tomorrow. And I needed to do something with more substance.

I’ve always had a compassionate side to me. And I decided I wasn’t going to do anything unless it was helping people. So, providing CBD was one way of doing that.

You’re providing high-quality organic oils to patients for a range of ailments. What are some of the conditions that you’ve been helping people with?

From extreme cases of cancer – like pancreatic cancer, I’ve got one guy who was given three months to live, and that was four years ago – all the way down to depression to motor neurons and to Parkinson’s. There are so many different conditions, it’s crazy.

You’ve just touched on this. But, I’d like to ask you, as cancer is a condition that comes up a number of times in Green Light. Nicholas, in your understanding, can medicinal cannabis turn cancer around?

Yes. It can halt it. And it can turn it around, absolutely. It doesn’t work in all cases. But, I’ve seen it work a lot of times. It’s been those times when nothing else has worked. They’ve tried that, and it’s worked.

It’s not a cure. I don’t call it a cure for cancer. But, it can definitely halt it, and it can prolong people’s lives.

And it’s a fantastic tool for helping people to get through all the side effects of having cancer, whether that’s the pain, or the effects of chemotherapy and radiation.

The Narcotic Drugs Amendment Bill was supposed to set up a legal cannabis medicine supply chain. How would you describe the system this legislation established?

A broken joke. We call it the scenic route. It’s doesn’t work. It wasn’t designed to create easy access for patients. In fact, it has made things more difficult. I don’t think the government had people’s best interests in mind when they were putting it together.

So, you’d say it wasn’t a serious attempt at making medicinal cannabis available for patients who need it? 

No, not at all. If they wanted to get serious about making it available, they’d just legalise it across the board and let people do what they want with it.

The documentary points out that what was actually legalised in this country were pharmaceutical isolates of cannabis for medicinal use. 

Now, what you’re providing is whole plant medicine. How do these two different forms of medicinal cannabis stack up against each other?

There’s no comparison. I’m a firm believer that the most important thing on this planet is soil and its quality. That’s where all our life force comes from.

So, if you’re eating good food that comes from good soil, you’re going to get well. It’s always going to taste better. It’s going to be better for you.

If you eat food that’s grown hydroponically, there’s not a lot of nutrients in it, or they’re nutrients that they’ve actually put in. It’s the same with cannabis medicine.

When cannabis is grown outdoors organically, it can be incredibly powerful, and a fantastic healing plant. But, if it’s not grown right, and if it’s not treated right, it’s nowhere near as good.

So, we won’t provide people with products that aren’t grown outdoors organically.

There are also a lot of concerns about isolates. I don’t think it’s necessary to isolate things. The only reason that they’re isolating it is so they can make more money out of it. And that’s not what this is about.

If the government had everybody’s best interest at heart, we’d be looking at this seriously. Australia actually has the perfect climate for growing cannabis. We could do two turnaround crops a year outdoors. There’s no need for any indoor farming.

So, how did it come about that you made Green Light? And as what you’re doing is illegal, why’d you go public like this?

We came to make it because I’d seen another documentary that Ned Donohoe, the director, had made. It was about another cannabis provider, Andrew Katelaris. And I thought it was a very good short piece. It’s called The Pot Doctor.

It just happened to be that my nephew knew Ned. He connected us, and I had a chat with him. I told him it was a really good piece and if he was interested in doing anything else, let me know. We ended up catching up about a year later, and we decided to make this documentary.

In regard to the legality of it all – and the risks involved – to be perfectly honest, the best place to hide is in plain sight. The other thing is, what I am doing is a human rights issue. I’m not some sort of drug dealer.

And lastly, I saw Green Light over the weekend and found it engaging. Nicholas, how did you feel about the documentary when you saw it? And why would you say people should get out and see it?

We’re happy with the results. If people are interested in this topic, it’s a good way of looking at it. It’s an interesting human story. Luke and I both have stories to tell. My past is such a contrast with what I do now.

It’s a nice story of human compassion. There are things that Luke and I have done in our lives that we’re not that proud of. There have been a few dark days. And that comes through in the film.

This is our chance to give back and help people. That feels good.

We both get high off helping people.

Aurora Cannabis rolls out cannabis strips

These days, when it comes to cannabis, you can smoke it, eat it, and drink it. But now there's a new way to consume cannabis: strips that dissolve in the mouth.

This is thanks to top Canadian marijuana stock Aurora Cannabis (NYSE:ACB), which announced Tuesday that it has launched cannabinoid-infused "sublingual wafers" -- i.e., thin strips meant to be held under the tongue until they dissolve to nothing. The strips are aimed at medical cannabis users and will be sold on the Canadian market.

Stethoscope with marijuana leaf next to it.

In the press release for the somewhat unimaginatively brand-named Dissolve Strips, Aurora said that it is the first of its kind. Dissolve Strips were developed by Aurora in conjunction with fellow Canadian company CTT Pharmaceutical Holdings.

Aurora, incidentally, holds an approximate 9% stake in CTT, one of various minor shareholdings it has in other companies. Aurora also owns warrants that would allow it to boost this figure significantly, to 42%.

According to Aurora, the new offering "adds yet another innovative offering to our growing portfolio of high quality, medical products that we offer our patient base, and is testament to our industry leading ability to work with technology partners and regulators to bring new form factors to market rapidly."

The company titles this particular form factor Orally Dissolvable Thin Film Wafers, which are made of polymer film.

Aurora Cannabis' Dissolve Strips in white packaging.

Aurora claims the strips have several advantages over other means of ingestion. Among these are quick consumption (five to 15 seconds, the company says) and the ability to be taken orally without having to drink water or to swallow. Such features make Dissolve Strips appropriate for patients who have difficulty taking medicine in traditional ways.

In the press release, Aurora gave no indication of the potential size of the market for Dissolve Strips. It also did not mention any possibility of rolling out or modifying the product for the recreational consumer market, which has been lively in Canada following the legalization of that type of consumption almost one year ago.

Regardless, Aurora stock closed marginally higher on the day the announcement was made, bucking the general downward trend of the stock market. The price has generally been on a decline since March, however, and so far in 2019, it's down by 16%. In fact, it has lately been bouncing around lows not seen in over a year.

Cannabis taking root in Colombia

Cannabis companies are rushing to set up operations in Colombia, looking to gain a foothold in one of Latin America's drug capitals as governments across the world embrace the burgeoning legal marijuana industry.

Growers, many with financial backing of firms from Canada and the U.S., estimate as much as $500 million has been invested to buy farmland, build greenhouses and set up labs to produce oils, creams and other products that contain cannabidiol, or CBD, an extract used to treat everything from chronic pain to insomnia. So far, none are growing marijuana rich in tetrahydrocannabinol, the substance that makes smokers high.

Embracing the industry may seem surprising for a country that has long been embarrassed about its status as the world's largest cocaine producer and has struggled to escape its reputation as a violent narcotics center that gave rise to the likes of Pablo Escobar. But with the global cannabis market estimated to be worth more than $50 billion by 2025, Colombia has sought to become a center of production for exports to countries around the world that are legalizing its use. Domestic laws permit small quantities of pot for personal consumption, but the country hasn't put in place final regulations for medical use.

"When you mention Colombia, unfortunately, some people relate that name with illegal drugs," said Julian Wilches, a former director of drug policy in the Justice Ministry who co-founded the medical cannabis company Clever Leaves, which began operating in 2016. "We have an opportunity here to take a controlled substance and change that reputation, to bring health to people and development to our country."

Clever Leaves is producing about 24 metric tons of dried cannabis a year, grown in greenhouses on a sprawling farm tucked in a valley about 8,000 feet above sea level in the Andes. With an expansion already underway, the farm should be able to produce about 324 metric tons next year, making it among the world's largest growers.

Colombia in 2016 joined a small group of countries that permit cannabis cultivation, leading hundreds of companies to apply for licenses. The country's natural advantage is its position near the equator, which provides around 12 hours of sunlight year-round, making it cheaper for growers than places where artificial light is required.

That attracted some of the industry's largest names, with investments from Canada's publicly traded Canopy Growth Corp., PharmaCielo, Khiron Life Sciences, Aurora Cannabis Inc., and Aphria Inc.

The expansion has continued even as investors have cooled to once high-flying pot stocks. The largest exchange-traded fund of marijuana companies tumbled more than 35% in the past three months to a record low this week, dragged down by concerns about vaping-related illnesses in the U.S. and a slow path to profitability for some of the industry's biggest players.

"The cannabis industry in the last three months has faced a reduction in investment, but the interest in Colombia is still very promising," said Juan Diego Alvarez, vice president of regulatory affairs at Khiron, which plans to produce about 80 tons a year of cannabis in Tolima, a mountainous area in the Central Andes. "Colombia in the near future will become a center for development and research for the industry."

EXPORT FOCUS

The sector has been held back by a complicated regulatory and permitting system. While hundreds of companies were granted licenses since 2016, only a handful have begun growing. None of the cannabis currently being produced is the kind that produces significant levels of tetrahydrocannabinol because of more onerous regulatory procedures for those varieties.

Because Colombia has yet to finalize regulations for the domestic market, producers are focusing on exports.

President Ivan Duque vowed last month to cut bureaucracy and support the industry. Revenue from the sector in Colombia is forecast to balloon to $791 million by 2025 from $99 million in 2020, according to a draft study by think tank Fedesarollo. Researchers estimate the market for cannabidiol in the U.S. alone could be worth almost $23 billion by 2023.

Clever Leaves became one of the first Colombian companies to book sales, exporting products to the United Kingdom and Poland. It is targeting Germany after it receives approval from the European Union.

As Colombia looks to ramp up exports, it's already facing competition from other Latin American countries, with governments from Mexico to Argentina establishing laws to develop industries in those countries. Colombia is more advanced in the process, according to Kyle Detwiler, the chief executive officer of Northern Swan Holdings, a New York company that has invested about $40 million in Clever Leaves.

"It's the perfect region for growing," he said.

University researchers to study effects of medical cannabis on chronic pain

Researchers at the University of Georgia will study the effects of legalized medical cannabis on those suffering from chronic pain thanks to a multi-million dollar grant.

The project, announced this week, will seek clarity on whether medical marijuana laws alter the health behaviors of people living with chronic pain and whether they substitute or reduce traditional pain treatments while using medical cannabis.

“We are thrilled to get started on this work,” said Grace Bagwell Adams, assistant professor in the College of Public Health at the University of Georgia. “Much of the policy change has happened quickly in a landscape that is not well understood at the patient level. This work is going to contribute to our understanding about the intersectionality of medical cannabis policy and the behavior of chronic pain patients.”

Researchers will have access to years of data on five million Medicare and five million Medicaid enrollees’ complete medical claims history, which will include all inpatient, outpatient and prescription drug use, as well as some information about socioeconomic status.

In addition, the research team will also examine comparable data on individuals with private insurance.

“For all three types of individuals—Medicare, Medicaid and HCCI/private insured—they will follow the same people over time and see how their pain management health care decisions change as they gain access to medical cannabis via changes in state laws,” the school said in its announcement.

The project could help illustrate the real world policy effects in more than 30 states across the country that have legalized medical cannabis. It is also the latest in a flowering of academic research on marijuana, as governments, institutions and companies reconsider prohibitions on pot as concerns over prescription painkillers continue to mount.

The National Football League said in May that it would participate in a study on the effects of cannabis on pain management, a response to the growing number of players who have become addicted to prescription drugs.

In April, the cannabis investor Charles R. Broderick made a $9 million donation that was split between Harvard and MIT to support research into how marijuana affects the brain and behavior.

Broderick said the gift was driven by a desire “to fill the research void that currently exists in the science of cannabis.”

David Bradford, the public policy chair at the University of Georgia’s School of Public and International Affairs, said that the research announced this week will also fill a gap.

“Researchers have been able to document reductions in aggregate prescription use, especially opioids, after states implement [medical cannabis laws],” Bradford said. “But there is almost no research on how a large representative sample of individual patients respond to medical cannabis access. Do we see lots of patients reducing opioid use, or just a few patients reducing by a lot? What happens to other kinds of health care use, like emergency room visits or physician office visits? We don’t know, and we’re excited to find out.”