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For the last few weeks, young and very sick people have been turning up at hospitals all over the country with troubling lung symptoms.

We recently reported that some state health officials have proposed that solvent known as Vitamin E acetate could be the cause of all this. Others have suggested certain brands and different ingredient combinations that could be responsible for the epidemic, but the CDC has yet to narrow it down to a specific product or additive for us.

As of October 1, 2019, there are 805 cases of acute onset vaping-related lung injury throughout 46 states and the U.S. Virgin Islands. The death toll is up to 16 now – two in California, Kansas, and Oregon, and one in each of the following states: Illinois, Indiana, Minnesota, Missouri, Florida, Georgia, Mississippi and Nebraska, and the most recent, New Jersey and Virginia.

To learn more about this developing story, and to understand why all CBD suppliers should be worried, subscribe to the CBD Business Weekly Newsletter.

“I am deeply saddened to announce the first death of a Virginia resident related to this outbreak,” Virginia’s state health commissioner, Dr. M. Norman Oliver, said in a statement on Tuesday.

Seeking answers, NBC News commissioned a study in which they recruited one of the most prominent cannabis testing labs in the nation, CannaSafe, to check 18 samples obtained from both legal dispensaries and black market dealers.

According to CannaSafe’s report, the three samples that came from legal dispensaries in California came up clean – no pesticides or fungicides, heavy metals, or residual solvents like Vitamin E acetate. Out of the remaining 15 samples, 13 contained vitamin E and 10 tested positive for something even scarier – hydrogen cyanide. Technically, they contained a fungicide called myclobutanil, but this can convert to hydrogen cyanide when burned or vaporized.

“You certainly don’t want to be smoking [inhaling] cyanide,” said Antonio Frazier, the vice president of operations at CannaSafe. “I don’t think anyone would buy a cart that was labeled hydrogen cyanide on it. It’s very disturbing and can cause a very toxic effect on the lungs.”

Mexico’s government shouldn’t only regulate pot, it should be the main bulk buyer and seller of the drug, lower house majority leader Mario Delgado proposed in a new bill.

A public company named Cannsalud would be authorized exclusively to acquire cannabis from growers with permits and then sell the drug to franchises authorized to sell small amounts to the public, according to the bill.

“This way the cannabis market wouldn’t be left to the autonomous regulation by individuals, but would involve the state as a permanent supervisor and controller of activity involving this substance within a legal framework that would guarantee benefits for all,” the bill states.

Delgado’s ruling Morena party holds majorities in both house of congress, and his intention to push for state involvement in the marijuana trade is in line with President Andres Manuel Lopez Obrador’s pledge to increase government presence in the private sector. Lopez Obrador has said regulation of some drugs like marijuana is possible under his administration, but it’s unclear if he’d support a government company running the trade.

Individuals would be able to grow as many as six plants for personal use without permits, but Cannsalud would be the exclusive seller of marijuana to the pharmaceutical industry, according to the bill.

Foreign Minister Marcelo Ebrard has said Mexico should promote other story lines beyond television shows that portray it as overrun by narcos.

In the 55 years since he first isolated D9-tetrahydrocannabinol (better known today as THC) with colleagues Dr. Yehiel Gaoni and Dr. Haviv Edery at Israel’s Weizmann Institute of Science, Dr. Raphael Mechoulam has been the absolute leader in the science of cannabis. He basically started that science from scratch with 5 kilos of Lebanese hash the police donated to his research after Mechoulam’s boss put in the request.

Even all these years later, when Mechoulam talks pot, the cannabis world stops with its ears wide open. This latest announcement from the legendary scientist was no different.

On Sept. 23 at the CannMed conference in Pasadena, California, Mechoulam was the main event. In his keynote, he went into deep detail on the science and chemistry of his latest work. That work was described by Health Europa as building a new family of synthetic, stable cannabinoid acids molecules. Mechoulam reported that the new cannabinoids have also shown a higher potency than their all-natural peers. With that extra kick, the new cannabinoids showed a lot of promise for increased therapeutic effects.

Some of the research Mechoulam discussed included a new cannabidolic acid called HU-580. Mechoulam believes the new compound could be more effective than CBD at treating conditions like depression.

“There are many things that are still not known in the field of cannabis. The plant produces a group of compounds called cannabinoid acids. The acids were not investigated until recently, not very thoroughly at least, because they are not stable; they break down,” Mechoulam said, according to Health Europa.

He went on to speak on the demands of the pharmaceutical space directing his work in recent years. So much of his career for the last century was about discovery, now it’s moving into a phase where he is attempting to maximize the benefits of those discoveries.

“Collaboration is absolutely a necessity. Cannabis and cannabinoids are not a tiny project — one compound for one disease — however, I show that it is really a very, very wide field of research,” Mechoulam said. “We need good new drugs in a large number of fields, and this is an open field for new drugs, new preparations. I believe there will be a lot of work in this field over the next decade or so, or maybe two decades.”

One of the companies in the U.S. working on synthetic cannabinoids is Demetrix, where the phrase “synthetic cannabinoid” is kind of a trigger word in their office, due to the fact that media reports have routinely mislabeled street drugs like Spice and K2 as “synthetic cannabis” or “synthetic marijuana.” Demetrix is licensed by the DEA to do research with pure cannabinoid compounds. The ultimate goal for them, company reps say, is to get to a scalable cannabinoid production method that will allow researchers not to rely on the inferior cannabis coming out of the National Institute on Drug Abuse’s farm at the University of Mississippi. Then, they’d obviously be well-positioned for wider applications for cannabinoids in the medical and cosmetic space in the future.  

“The way we look at it from an economics perspective, should we work on the cheaper stuff or the more expensive hard-to-have stuff? The answer is you start with the harder-to-access stuff,” Demetrix’s CEO Jeff Ubersax told Cannabis Now. “I’d say of the hundred-plus cannabinoids, there is probably only 10 right now we could get in bulk. There are lots of those other ones we really can’t get to, that’s where we start.”  

Like Mechoulam, Demetrix is synthesizing new cannabinoids, but they’re keeping their cards a bit closer to their chest than the pioneering scientist. Nevertheless, there is little doubt that the wider cannabis industry will have to reckon with the methods being developed by Mechoulam, Demetrix and a handful of other companies working on synthetic cannabinoids.

"Best" is a relative term. The best option between breaking your leg, your arm, or your nose still isn't a very good choice. It's not quite that bad when it comes to finding the best marijuana stocks of September, but the scenario isn't nearly as good as it's been in the past.

Of the three best marijuana stocks of last month, only one achieved a double-digit percentage gain -- 22nd Century Group (NYSEMKT:XXII). The other two best-performing pot stocks, Namaste Technologies (OTC:NXTTF) (TSXV:N) and Innovative Industrial Properties (NYSE:IIPR), delivered low single-digit percentage increases in September.

But most marijuana stocks declined quite a bit last month. How did 22nd Century Group, Namaste, and Innovative Industrial Properties buck the trend? And are these stocks good picks to buy now?

 

1. 22nd Century Group

22nd Century Group's shares jumped 16% in September. It was the stock's second consecutive month at the top of the pack for pot stocks after it soared 46% in August.

Why is 22nd Century Group enjoying such strong momentum? It's not because of any new developments. The company didn't make any announcements at all in September. However, it seems that investors continue to be enthusiastic about 22nd Century Group's pivot to focusing more on the cannabis and hemp markets.

In the past, the company has been known more for its genetic engineering of tobacco plants with very low levels of nicotine. Although 22nd Century Group is still betting that its tobacco-related technology will pay off, new CEO Cliff Fleet said in the company's Q2 conference call in August that hemp and cannabis present "another exciting and potentially even more valuable path for growth." The company has genetic technology to grow hemp with no THC, the primary psychoactive ingredient in cannabis.

2. Namaste Technologies

Namaste Technologies stock skyrocketed more than 50% early in September. But it quickly gave up most of that gain, ending the month up 6%. That still was enough, though, to rank Namaste as the second-best-performing marijuana stock in September.

The interesting thing with Namaste is that it had more good news after the spike early last month than it did before the big jump. On Sept. 12, the company announced a distribution deal with Cultivated Beauty to market hemp-based skin care products on the CannMart online marketplace. Only four days later, Namaste reported that the BC Liquor Distribution Branch, the wholesale channel for adult-use recreational cannabis in British Columbia, had submitted a purchase order to CannMart to sell pre-rolled cannabis products online as well as at private and government-run retail stores.

Namaste also signed a new customer in late September. The company announced on Sept. 26 that CannTx Life Sciences planned to launch and sell its medical cannabis brand, Bower, on CannMart. CannMart will also process and package Bower medical cannabis products in its processing facility.

3. Innovative Industrial Properties

Innovative Industrial Properties (IIP) came in third place among marijuana stocks in September with a gain of only 4%. This reflected an improvement, though, after the cannabis-focused real estate investment trust (REIT) began the month with its shares falling nearly 5%.

September was a month of expansion for IIP. The company revised its lease agreement with Ascend Wellness Holdings (AWH) to provide another $8 million in financing for AWH to expand a medical cannabis facility in Barry, Illinois. IIP acquired four properties in California and leased them to Vertical Wellness. It also modified its lease arrangement with PharmaCann to provide another $8 million for funding expansion of a property in Holliston, Massachusetts.

One of the most important developments during September for IIP investors was that the company boosted its dividend payout by 30% from the previous quarter. IIP's dividend yield now stands at nearly 3.3%.

Are they buys?

I tend to agree with the unofficial slogan of the state of Missouri with two of these stocks: Show me. While 22nd Century Group could be successful with its efforts to market zero-THC hemp, it's not there yet. As for Namaste Technologies, the company continues to take the right steps to recover from the scandal earlier this year that caused its former CEO to be fired. But Namaste is still losing money and has a ways to go before it's profitable.

Innovative Industrial Properties, on the other hand, has shown investors that it's on the right track. The company has been consistently profitable. It's generating impressive growth. IIP also has a business model in place that should ensure that it keeps growing. With a solid dividend thrown in for good measure, I think that IIP is one of the more attractive marijuana stocks to buy right now.

If you live in one of the legal states, like California for example, you’re likely aware that cannabis is starting to border on conventional medicine – especially as other options are becoming increasingly restricted.

As an early 90’s kid, this wholehearted acceptance of cannabis is still a bit new to me, but I recently discovered how mainstream it truly is while searching for some type of pain management solution for my grandmother, who suffered from an L3 & L4 spinal fracture.

Now, the operative word here is “searching”. Despite what you or I may have thought, getting pain medication – even for a senior citizen – is becoming rather difficult in this day and age. Due to the ongoing opioid crisis claiming tens of thousands of lives each year, we’ve been forced to take a long, hard look at the current healthcare situation, and inevitably, make some changes that impact everyone.

In an effort to remedy this situation, doctors have been forced to restrict access to opioid pain medication. This, however, is creating a new kind of crisis – where numerous patients battling pain are now left with no recourse. And many of these people are elderly, disabled, or otherwise truly in need of medication. My grandmother is part of this demographic.

Mind you, she’s 94-years-old with a broken back, and has been straight out denied pain medication by multiple different doctors including the ER physician, the neurosurgeon who saw her in the hospital, and her regular doctor who she had to follow up with.

I found that extremely odd. Don’t get me wrong, I will always advocate for safe, natural solutions over pharmaceuticals. But in this situation when a serious injury is involved, I’m all for responsibly-used, stronger pain management solutions.

The Opioid Crisis is Leaving Pain Patients Vulnerable

This problem my grandmother is facing isn’t an isolated issue. It’s becoming widespread, especially in smaller communities. For instance, take my rural town in the Southern California desert. The largest employer in this area is a military base, which, up until recently, was providing health care services to the local veterans and civilians. This is a low-income area with a poverty rate of nearly 35%.

Once the medical services ceased, this forced people to drive nearly an hour away to the nearest pain clinic. Of the people who could make it there, many saw their prescriptions cut in half or denied completely. Just like my grandmother, many of these people are senior citizens with limited means and severe pain.

According to local resident Taylor Garner, his parents retired in this area to be close to the base for medical treatment. At 92-years-old, his mother was cut off from her health care plan with the base and sent to find pain management solutions on her own.

“She’s 92 and it’s hard for her to go down the hill [to the Coachella Valley],” mentions Garner. “She’s crippled and can’t walk. She has been taking pain pills for 20 plus years. Now with the opioid epidemic, they cut her pills in half. My dad gave his life for this country, he died from the effects of agent orange. He would have a fit if he was here. I’m at my wits end trying to find a doctor that will let her have her pills.”

Now trust me when I say that I can see the many faces to this dilemma. I understand that people who are in pain, especially the elderly, just want to find relief and sometimes that comes in the form of a pill. I also understand that nearly every single person’s life in the U.S. has been touched by addiction in some way. That can include losing someone you love to addiction, feeling like your neighborhood is becoming unsafe because of the rising presence of addicts and homelessness, or even being addicted yourself.

Many addicts started with prescription medications in a monitored setting that eventually spiraled out of control – be it from over prescribing, misuse, or any other number of reasons. However, there are many outcomes to consider when trying to regulate someone’s pain medication in this type of volatile situation.

For starters, if they continue taking pain medications regularly with no end in sight, they can develop a tolerance which can lead to addiction and/or overdose. If a patient quits cold-turkey and isn’t properly detoxed, that can lead to health risks like heart attacks and stroke – especially for elderly patients. It can also drive people to the black market if they feel like they have no legitimate or affordable options to turn to.

Evidence for Cannabis

It makes sense that the only way to really curb this issue is not by completely taking away people’s pain therapy treatments, but by offering a safe and equally effective alternative. That said, it’s important to mention that, while my grandmother was being denied pain medication by multiple doctors, every single one of them suggested cannabis. And not in a very medical sort of way, but rather, “Why don’t you try some weed instead?” is what we kept hearing.

Medical cannabis is a proven remedy to manage pain

Now, someone like me would take that suggestion and roll with it, but for a person who is completely unfamiliar with cannabis, that statement leaves more questions than answers. My grandma would have no idea what to shop for, where to find it, what kind of delivery/consumption method to use, which family (indica or sativa), how much she needs to take, etc. When you get to the crux of it, medicating with cannabis can be pretty complicated if you don’t know what you’re doing.

Let’s start by taking a look at the research backing cannabinoids as a viable treatment option for pain. Although cannabis studies are overall lacking, pain is one particular area that has received quite a bit of attention.

In a 2017 study, researchers found that inhaled cannabis is consistently effective in reducing chronic pain “that is not related to cancer”. Additionally, the study discovered that oral delivery of cannabinoids (via softgels for example) was able to improve complications relating to chronic pain such as lack of sleep, appetite changes, and diminished quality of life.

In 2015, Harvard University conducted a comprehensive review of 28 different studies that analyzed the effectiveness of using cannabinoids to manage various types of pain. The researchers revealed that, “Use of marijuana for chronic pain, neuropathic pain, and spasticity due to multiple sclerosis is supported by high quality evidence.”

A slightly older study determined that people suffering from all different types of chronic pain could benefit from the use of cannabinoids, but especially those with neuropathic pain. The study’s conclusion states that cannabis “Is effective but research is needed to decide which subgroups of people benefit most.” This study was published in the British Medical Journal in 2008.

There are additional studies on this subject, as well as hoards of anecdotal evidence from cannabis users across the globe.

Final Words

In case you’re wondering, my grandma tried some combination gummies with a 1:1 ratio of THC:CBD, purchased from a local dispensary in the Coachella Valley. She found it very effective. Her pain was minimal within about 45 minutes of consumption, her appetite was improved, and she was in a much better and more relaxed mood than usual.

While views on cannabis continue to change and evolve, there’s certainly something that can be said about its use as medicinal plant, especially for pain. And this warrants more research, regulatory changes, and societal acceptance overall.

Since federal passage of the 2018 Farm Bill last December, interest in hemp farming has catalyzed a national industry reborn after decades of prohibition. Reports from state agriculture officials indicate that licensed hemp acreage for 2019 has more than tripled, with the number of hemp licenses issued having quadrupled since 2018. It is increasingly likely that the U.S. hemp industry will see more acreage planted this year than in 1943, the peak of cultivation during World War II.

Hemp has been making headlines for its impact on several mature markets – from food and textiles to building construction and nutraceuticals – and is emerging as a potential commodity ripe to not only influence but possibly revolutionize major economic sectors around the world.

Throughout a previous report, New Frontier Data has elaborated on the potential for retail and channel sales across CBD, supplements, consumer products, and industrial products, including wholesale and market pricing for biomass, flower and CBD wholesale products including historic and recent prices per kilogram for CBD isolate, full-spectrum oil (FSO), and THC-free distillate.

In a newly released report by the Hemp Business Journal (HBJ, a division of New Frontier Data) along with Vote Hemp, the U.S. Hemp Market: 2019 States Ranking provides in-depth, strategic insights about U.S. state hemp markets, including which are leading the domestic industry today, and those positioned to become dominant in years to come.

Several states entered the arena this year, often exceeding estimates for growth across the supply chain and from cultivation to retails sales. As cultivation booms across the U.S. in top hemp-producing states, an increase in processing licenses and facilities demonstrates a course to the inevitable commoditization of raw hemp products.

Across a majority of states having reported their licensed cultivation areas, the combined totals mark more than a threefold increase in total acreage from 2018. Colorado leads all states with 80,000 licensed acres, followed by Kentucky with 60,000 acres, and Oregon placing a close third at 54,940 acres.

Meantime, while the 2018 Farm Bill was expected to open the mass-market retail channel with access to better banking, credit card processing, and reduced retailer risk, what proved more unpredictable was the extent of CBD products' explosive "fad-like" phenomenon extending their availability to department stores, apparel retailers, and restaurants. Mass-market retailers like CVS and Walgreens will continue to grow sales of topical products, and look to offer ingestible products pending regulatory clarifications from the FDA.

Until then, some states will prosper under increased mass-market retailer distribution, while other states will fall behind with outdated hemp and CBD states laws in effect. The uncertainty surrounding the FDA's pending position regarding CBD products has introduced new risks for companies heavily invested in CBD-infused foods, drinks, and other ingestible products. While such risks have done relatively little to dissuade thousands of entrepreneurs and investors who have flocked into the space, those operating outside the final regulatory guidelines may face substantial retooling costs, or experience dramatic shifts in their strategic directions.

As such uncertainty looms, respective state attorneys general offices continue to set the legal state-by-state standards by which companies operate. The trend of asserted states' rights to define their markets reminds observers of how states responded to cannabis reform — with some states accepting legalized markets, and others retaining highly restrictive or prohibitive markets. Pending FDA clarity regarding hemp-derived CBD, states will be expected to function similarly (i.e., with sales continuing to boom in many of the top state markets identified), while other states seem inclined to remain hidebound about hemp CBD.

Get ready Canada, cannabis 2.0 is coming!

About one year after cannabis dried flower and oils were first legalized in October, a new wave of products will be hitting store shelves in December.

These products include 1) cannabis-infused foods and drinks, called edibles and drinkables, 2) concentrates that can be used with vaporizers, and 3) topicals, such as ones made from cannabidiol (CBD), a non-psychoactive component of cannabis.

Expectations for these new products are huge.

Deloitte predicts that the new products will add up to $2.7 billion a year of value to Canada’s cannabis industry on top of current cannabis sales, while accounting firm EY says the products will draw up to three million new consumers.

The new products offer great new opportunities for cannabis companies to reach new demographics and compete with new industries. They also bring their own challenges, such as introducing consumers to new ways to consume cannabis that have their own risks.

Read on for a look at how cannabis 2.0 products might change Canada’s pot industry as we know it.

Edibles could attract more women

Edibles and drinkables will be available in a wide variety of products that could attract new demographics to cannabis with their own unique selling points.

Edibles will likely come in many forms, such as baked goods like brownies and cookies, while drinkables could include products like CBD-infused water, teas or cannabis-infused non-alcoholic beer.

While the effects of edibles and drinkables will be similar to the current offerings of capsules and oils, the more consumer-friendly form could attract consumers who have not fully embraced cannabis yet, such as females.

Female cannabis consumption has been shown to be lagging behind male consumption in Canada.

In its National Cannabis Survey released in August, Statistics Canada said that males were twice as likely to use cannabis than females in the first half of 2019.

Edibles are predicted to be one way to attract more female consumers to cannabis.

A report from Deloitte released in June says edibles might appeal to females more than flower due to a preference for “familiar consumption formats,” such as baked goods.

The fact edibles and drinkables are smoke-free also may appeal to females who are wary of smoking.

Female-focussed cannabis brand Van der Pop partnered with Canadian Viewpoint Inc. (CVI) for a 2017 survey of over 1,500 women in Canada and the U.S. They found 70 percent of respondents think cannabis carries a stigma, and 39 percent say they don’t try cannabis because they don’t like the idea of smoking.

Cannabis LP Aleafia’s Chief Medical Officer, Dr. Michael Verbora, says that drinkables and edibles could help tackle this stigma.

“When you have something like a beverage or a tea, I think it reduces the stigma a lot more,” he said. “It doesn’t look like the stigma we’ve been convinced of, of someone smoking a joint and the negatives that come with that.”

Aleafia has paired up with California-based Flying High Brands to potentially bring a number of new products to Canada once they are legal.

Verbora can picture edibles as an option for a busy mother to relax at the end of the day, as opposed to a glass of wine.

Edibles could be a premium product

Deloitte also predicts that edibles may appeal to a more educated and affluent consumer group than dried flower’s current demographic.

Rishi Malkani, Deloitte’s cannabis practice leader, says that edibles may be used less frequently than flower and its likely user is in the 35-54 age range as opposed to the historical 18-34 year old demographic for recreational products.

Deloitte’s report says edibles have the potential to be a premium product and sell at a higher price point than flower, making them more profitable.

Some companies are preparing for this premium potential of edibles, such as Dank D’lights, which is preparing a line of cannabis-infused truffles that are meant for a group of friends after a nice dinner.

Overall, Deloitte predicts that edibles will earn the most out of the new product categories at $1.6 billion a year in Canada because of consumers’ familiarity with the product, since they have been widely available in the illicit market.

Drinkables — an alcohol-killer?

Not only may edibles and drinkables appeal to new demographics, they could also take market share from established industries.

Drinkables, in particular, are poised to give the alcohol industry a run for its money.

According to Deloitte, 37 percent of its survey respondents say they would use cannabis-infused beverages, and 35 percent would use them as an alternative to alcohol. The company predicts that cannabis-infused edibles will “clearly threaten the alcohol industry” since consumers would use the products on similar occasions.

Malkani notes that Canadians only have a finite amount to spend on such products, so they may either go to alcohol or cannabis.

EY’s report shows 40 percent of respondents say they are very likely to try cannabis-infused drinks once they become legal.

Verbora points out that consumers will likely be open to trying a consumption format they are used to.

“We’ve gotten used to the fact that a lot of our conscious-adjusting substances come in a drinkable format,” he said. “By copying that format, a lot of consumers could potentially be driven away from alcohol and onto more cannabis-based beverages.”

New technology also allows drinkables to compete with alcohol. Nanoemulsion allows drinkables’ effects to be felt in as little as 10 minutes, similar to alcohol, rather than hours as it is with edibles.

This could provide an attractive alternative to alcohol for those not crazy about its effects.

Greencamp writer Adam Chen notes that cannabis drinks strongly appeal to him as an alternative to alcohol due to an enzyme mutation that makes him more susceptible to alcohol’s effects — genes he shares with 36 percent of East Asians.

Adam notes that he is excited for cannabis drinks that come in a variety of doses to be able to find the effect that is best for him and avoid greening out.

While 10 mg of THC, the psychoactive component of cannabis, is the largest dose allowed per package, some companies will offer more entry level offerings. Cannabis foods company Olli Brands will offer a low dose tea with 2 mg of THC.

There could even one day be cannabis bars with full-service restaurants attached for the munchies, according to Lisa Campbell, co-founder of Lifford Cannabis solutions and part of the Lifford Wine and Spirits family legacy.

“Consuming on site, ordering munchies, and not just potato chips, but a full service restaurant – that’s where we really see the future of cannabis beverages,” she said. However, it will take many changes in the regulatory environment and industry practice for that to become a reality.

The alcohol industry is paying attention to the emerging threat of drinkables. Molson Coors pegs the cannabis-infused drink market to be worth $3 billion, and is partnering with Canopy Growth Corp. and Hexo Corp. to release a line of cannabis beverages once they are legal.

Constellation Brands, which makes the beer Corona, also invested $5 billion into Canopy Growth last November.

Regulations can be hazy

While opportunities seem aplenty, cannabis 2.0 does come with some challenges, though.

Health Canada has released the regulations on the new product offerings, but its rules for products that can appeal to children have become a point of contention, according to Verbora.

Health Canada says that the new edible products cannot appeal to youth, but Verbora says the regulation is a little hazy and it is not completely clear what may or may not appeal to children. There is no definitive list of what isn’t allowed.

Verbora says that the hazy language could create uncertainty and could prevent some investment if it is unclear some products may not make it past regulatory testing.

“The problem is, with time different people are going to test the market and see if it falls in the yes or no category,” he said. “My interpretation of the law would say gummies and candies are not going to be allowed because they are attractive to children and feature different flavours, but there may be another company that thinks that it is permitted.”

Rishi Malkani, Deloitte’s cannabis practice leader thinks, though, that companies will do their research and bet on products that show signs of strong demand, such as by looking to the U.S. to see what worked and didn’t work there.

That is one strategy Olli Brands COO Sarah Gillins says the company took to be confident in their product offerings, which include teas, fruit chews, cookies, toffees and chocolates.

Gillins adds that Health Canada evaluates the concept of being appealing to children on many different aspects of the brand, such as the actual product, packaging, language used and colours. This could allow companies to target edible candy to adults if all aspects of its presentation are geared for that demographic.

Danger of edibles

There is good reason Health Canada is concerned about edibles’ appeal to children.

A number of horror stories have come out of children eating candy unaware that it had very high levels of THC, resulting in a visit to the hospital.

In Brandon, Manitoba, a two-year-old and a five-year-old ate parts of a chocolate bar that contained a whopping 750 mg of THC in February, resulting in the two-year-old being hospitalized in Winnipeg due to alleged seizures and swelling in her brain.

However, an expert told CBC that seizures are not a common symptom of cannabis overdosing but more of synthetic cannabis.

Verbora says typically if one has taken too many edibles, the effect will wear off over time and it doesn’t pose too much danger.

Nevertheless, studies have shown edibles can produce a stronger high in consumers due to the THC being processed in the liver rather than lungs, and it can be more difficult to gage the proper dose since the effects might not be felt for a couple of hours.

This has some consumers on edge, according to a survey in March that shows that interest in edibles has actually lowered.

There is the hope that a 10 mg packaging limit and strict labeling requirements will help ease people into edibles, compared to the unregulated black market, where products have not been third-party tested and it is hard to know how much THC is in them.

Gillin says that increasing consumer confidence in edibles has been a challenge, and people are apprehensive and scared. To raise confidence, she says her company has focused on community outreach and providing as much information as possible, such as on their website.

“It is important for you to find your comfort zone. Start with products that are low in THC, do them in a safe place, don’t mix them with any alcohol, take the time with them and take one dose at a time,” she said. “There’s room to provide a trusted product that people are comfortable with and people can find something that appeals to them.”

How companies can succeed

So how can companies succeed with these new waves of products?

Both MacDonald and Malkani think that the key lies in gaining more data on consumers to better target their products and focus their offerings.

“I would expect that the companies that are focused on accumulating data and understand the consumer, those are the ones that are going to win,” Malkani said. “The consumer for edibles is not the same for other recreational cannabis products or the more conventional ones.”

MacDonald agrees.

“Companies have an opportunity to build a lot of customer knowledge through feedback and also build up the amount of data they have on how customers are really using these products, so then they can serve the customers more effectively,” he said. “They have to listen to what consumers are saying, especially the non-consumers.”

Don’t expect winners to emerge soon, though. Both say that it could be a few years until the market sorts itself out and trends emerge.

By the looks of it, Mike Tyson wants to become the Walt Disney of cannabis. The former boxer bought a 40-acre farm in California and transformed the land into Tyson Ranch, a fantasia that revolves around marijuana and features the world’s longest lazy river. As soon as possible, a.k.a. as soon as legalization laws change, plan exist to build another Tyson Ranch along the Florida-Georgia border.

But Tyson isn’t stopping there either. Tyson announced plans this week to deliver marijuana tourism to the Caribbean, with another marijuana theme park in the islands of Antigua and Barbados. The Tyson team intends to introduce a major marijuana conference as well, which will become the “Davos of cannabis” and launch in April 2020.

The tourism will drive relief efforts to the Caribbean islands still reeling from damages caused by Hurricane Maria in 2017. Through this collaboration, Tyson believes Antigua and Barbados will become a dominant player in tourism spaces once again.

“Absolutely, I think that with your association with Tyson Ranch that it would be a far good conclusion that we accomplish that and make this a powerhouse,” Tyson told reporters. “It will be good for the country and will bring in much-needed funds to help your economy.”

These plans and boasts aren’t just coming from Tyson’s team—the government of Antigua and Barbados are on board, too. Tyson met with Gaston Browne, prime minister of Antigua and Barbuda, earlier this September to discuss conceptualization of the project. According to Browne, the plans Tyson and his team are developing “goes beyond marijuana products or hemp products.”

“They are also looking at the whole area of entertainment and leisure and one of the most exciting projects that they will establish within the next nine months is the establishment of an annual marijuana conference here in Antigua,” Browne said at a press conference.

“It will be like the Davos of cannabis; it will take place on an annual basis and will bring stakeholders from throughout the globe for that matter right here on Antigua to discuss various opportunities within the industry.”