This month, we’re highlighting long-time NCIA Member and cannabis advocate Genifer Murray, who recently launched her line of luxury cannabis-themed jewelry, GENIFER M, with the aim and intention to “elevate the conversation about cannabis through artisan jewelry.”
Cannabis Industry Sector: Accessories/Products
NCIA Member Since: 2012
Tell me a bit about your background and why you launched your company?
I launched GENIFER M to start the conversation about cannabis. With more than seven years of experience working in the cannabis industry, I have always been passionate about educating the public on the positive power and healing benefits of cannabis; GENIFER M is luxury cannabis inspired jewelry that aims to do just that through artisan jewelry.
My cannabis career started in 2010 when I co-founded one of the first cannabis testing labs in the U.S., CannLabs based in Colorado, where I was one of the first female CEOs in the cannabis industry. My passion and role as CEO became to be a champion for health and safety for patients. My mission with CannLabs was to provide safe and quality medicine to cannabis patients, which resulted in a bigger mission: to help others and the larger community that need this medicine through lobbying for its legalization. While lobbying, I wanted to better represent the cannabis industry and make a statement that illustrated cannabis in a non-threatening and elegant way. As a result, GENIFER M was born.
My dad, Glenn Murray, a technically trained and internationally recognized gemologist, made me a 2.5 carat diamond pave indica leaf lapel to wear with my suits while I was lobbying with NCIA and the Governor’s Task Force for Amendment 64 (ending marijuana prohibition). I wore the pin everywhere and could see it was not only changing minds, but starting conversations with people that traditionally wouldn’t openly discuss or inquire about cannabis. The pin created a movement, creating a non-threatening space for educating consumers about cannabis and its benefits. GENIFER M is an extension of that conversation and was launched to change the way people perceive, interact, and experience cannabis through luxe style and handcrafted quality jewelry.
What unique value does your company offer to the cannabis industry?
Our company is extremely unique in the fact that we are using a lifestyle to start the conversation about cannabis. GENIFER M creates luxury fashion that empowers, educates, and elevates the conversation about cannabis and what it means to each person who wears a leaf. Each GENIFER M cannabis inspired jewelry piece is designed to open discussions about topics of cannabis in a non-threatening way; we aim to create a space in which you can fully express your beliefs, hopes, and passion for the healing properties of cannabis with the mission to make a difference in people’s lives. It shatters traditional perceptions of cannabis to reverse 90 years of the propaganda in mainstream culture.
Cannabis companies have a unique responsibility to shape this growing industry to be socially responsible and advocate for it to be treated fairly. How does your company help work toward that goal for the greater good of the cannabis industry?
As business owners in the cannabis industry, we each have a responsibility to move this industry forward in the best manner possible, which is why GENIFER M is the alternative to mass production and traditional cannabis perceptions. We believe in the higher side of purchasing power and style — and making a difference in people’s lives through cannabis inspired jewelry. At GENIFER M, we want to give you the power to share your story and lead you to a lifestyle that embraces what cannabis means to you while honoring the progression from “pot culture” to “cannabis couture.”
What kind of challenges do you face in the industry and what solutions would you like to see?
There are several challenges like no traditional banking, the 280E tax problem, and of course the stigma, which still has a lot to do with why people are hesitating in the decriminalization of marijuana. However, we need more science to overcome the myths and stigma surrounding cannabis! We need the studies, clinical trials, and research. Thankfully the U.S. is finally allowing some of that to take place. I also see pharma as a huge challenge. As a cannabis community we need to work together to help end the pharma era and provide people with natural and holistic medicine — not synthetically made or chemically compounded products. Ultimately, creating platforms for cannabis education is the key to overcoming the challenges this industry faces
Why did you join NCIA? What’s the best part about being a member?
I joined NCIA because we needed a national voice to be heard in D.C. I wanted to help educate lawmakers and the public about the issues challenging the industry, to help prepare for the issues that nobody knew about back in 2012. I also joined because the NCIA community and its members provided me support through my cannabis entrepreneurial journey; they knew exactly what I was going through and became a great network founded on the mentality of helping each other grow and succeed. We are all working together to pave the way for the industry.
For more information about GENIFER M, or to purchase its products and help start the conversation about cannabis, please visit www.geniferm.com.
It’s fair to say that most businesses will have a higher rate of success when they utilize tools designed with their industry in mind. Running a retail operation in the cannabis industry is no different. In fact, the success rate is likely much higher due to the strict regulations put in place by states to address diversion, public safety and health concerns.
With that in mind, I think it’s safe to say that a cannabis point-of-sale system is one of the most important investments a retail operation will make when opening a dispensary. The right point-of-sale system will not only help operators maintain compliance, but it should also save time and money by providing inventory insight, maximizing sales per customer, and seamlessly integrating with other technology.
In addition to streamlining operations, dispensary owners should also feel confident that customer information is secure, and that fast transaction time is maintained even when traffic is heavier than usual. At the end of the day, your cannabis point-of-sale system should work for you.
Let’s be honest, today’s market is crowded. Dispensary owners now have more than 40 point-of-sale options that promote their ability to optimize operations, acquire new customers, and maintain that customer base. But there are only a few key players who do well in this space, and each of them has pros and cons.
As the industry grows, we want dispensary owners to know that not all cannabis point-of-sale systems are created equal. It’s critical that you take the time to examine each tool to determine what will work best for your operation, be it full vertical or one dispensary location.
That’s why my team and I created a guide as a primer on point-of-sale tech for both new and veteran dispensary owners. We’ve researched information from across the spectrum and organized it into categories to help you navigate this major piece of the dispensary ecosystem.
Gary Cohen, CEO of Cova, leads Cova’s charge into the legal cannabis space by guiding the vision, strategic development, ‘go to market’ plans and culture. A Denver native, he recently moved back to establish Cova’s HQ there. While he joined Cova only a year ago, he was a successful business partner to Cova’s parent company since 2011.
Before joining Cova, Gary was a principal in over a dozen tech start-ups in the mobile communications industry ranging from small VC funded companies to Fortune 100 firms, including Onavo, which was later acquired by Facebook. In those companies he lead Sales, Marketing, Business Analytics and Market Expansions. He has also held a multitude of leadership roles with Verizon and AT&T for the first 15 years of the wireless industry.
Gary holds a Degree in Finance with a Masters in Marketing from the University of Colorado. In his spare time Gary enjoys skiing, mountain biking, outdoor sports, travel and comfort food.
By The Numbers: NCIA Members Make It Happen In The Halls Of Congress
by Michelle Rutter, NCIA Government Relations Manager
While 2017 has had some political unknowns, one thing is for sure: cannabis legislation in Congress has more support than ever — and NCIA members have helped make that happen.
In mid-May, NCIA held its 7th Annual Cannabis Industry Lobby Days in Washington, D.C., where 250 industry professionals came together on Capitol Hill to attend more than 300 scheduled meetings. Since then, there has been a substantial increase in the number of cosponsors on cannabis-related bills compared to the last congressional session.
Last session, during the 114th Congress, Rep. Ed Perlmutter (D-CO) introduced the Marijuana Businesses Access to Banking Act, which would have created a safe harbor for financial institutions to serve marijuana-related businesses. At the end of the two-year session, the bill had 39 cosponsors.
Earlier this year, during the 115th Congress, Rep. Perlmutter introduced his new bill, the Secure and Fair Enforcement (SAFE) Banking Act (H.R. 2215). That bill currently has 47 cosponsors with nearly a year and a half left in the session to gain more support. Since NCIA’s Lobby Days in May, the SAFE Banking Act has added 18new cosponsors.
There has also been a substantial increase in the number of cosponsors on the House of Representatives bill that addresses the 280E tax problem. Last session, Rep. Earl Blumenauer (D-OR) introduced the Small Business Tax Equity Act, which ended the session with 18 cosponsors.
This year, NCIA was successful in helping secure Rep. Carlos Curbelo’s (R-FL) leadership on the Small Business Tax Equity Act of 2017 (H.R. 1810), which has been instrumental in gaining the 25 cosponsors the bill currently has. That legislation has gained 13new cosponsors since NCIA’s annual Lobby Days.
In addition to an increase in cosponsorship of cannabis-related bills, there’s also been an uptick in support for appropriations amendments at the committee level. At the end of July, the Senate Appropriations Committee adopted an amendment that would allow the Department of Veterans Affairs (V.A.) to recommend medical cannabis in states. That amendment passed by a vote of 24-7 — the most votes this measure has ever received in the Senate.
As the appropriations process continues through the summer, it’s likely that more cannabis-related amendments will be brought up and voted on, including votes dealing with protections for medical marijuana businesses and banking. NCIA is confident that if congressional leadership allows these measures to be voted upon, they will receive unprecedented levels of support.
The industry’s united voice makes a difference on Capitol Hill, and it can be seen in the numbers. To learn more about NCIA’s annual Cannabis Industry Lobby Days, you can click here.
Member Blog: “Don’t hate me because I’m beautiful!” (part 2 of 2)
Celebrating excellence in branding, packaging and marketing within the cannabis industry
In part 1, we explored the development of the Canndescent brand and the steps they took to launch that gorgeous canna-business. Today, we turn our eyes to hmbldt, one of the most stunning brands to recently burst upon our burgeoning industry.
Last November, while walking through the MJ Business Expo in Vegas, one exhibit caught my eye. hmbldt. Actually, I couldn’t take my eyes off their logo. It was stunning in its simplicity. The one thing I can say about these guys is they don’t like vowels. Just kidding. They fricken’ nailed it!
I loved the contemporary clean lines, the white space and the naming-by-effect convention. The packaging itself was a very well executed combination of color-coded rigid boxes with inserts, and folding carton sleeves.
When I see great work, I get excited! I know, I know… I’m just a branding and packaging geek, I can’t help myself!
Recently, I got a chance to talk to Derek McCarty, CMO of hmbldt, regarding their brand development. He credits their creative partners, Anomoly (2017 Agency of the year – Ad Age) with not only their brand and packaging development, but also the product development. “They are true strategic partners in every sense of the word,” he said. In fact, the agency has a stake in the company, as well as its founding member sitting on hmbldt’s board.
The first employee hired by hmbldt was Derek McCarty, a seasoned brand strategist. Hmmm… with priorities like that, no wonder hmbldt launched at the top of the heap. And it didn’t hurt that Time Magazine named their innovative vaping device one of the Top 25 Inventions of 2017.
“We launched in September and received the award in November. Of course, the award added credibility to the product and propelled sales throughout the state quickly. While we were extremely pleased with the award, we were elated that mainstream media led with the health benefits of cannabis in this instance,” Derek told me.
When asked how long it took to develop the brand, McCarty replied, “Our brand is a living, breathing, dynamic thing… the development will never stop. The hmbldt brand is the sum of all parts.”
And those are very nice parts, indeed.
Discussing his favorite cannabis brands, Derek cited Lord Jones and DeFonce as his favorites for product positioning, and Jetty and Bloom Farms as his choice for best benefit positioning. Adrian from Canndescent also touted Bloom Farms for strong messaging and PAX for overall brand and product positioning.
When I look at amazing brands like these, I like to believe there is something we can learn from them. I asked Derek what advice he would give to a fellow canna-prenuer on building a great brand. “Be creative in how you find strategic partners,” he said. “Look for a mutually beneficial, great value exchange. As with any great partnership, it must be a win-win for both sides.”
Adrian offered this advice. “Hold yourself to a simple standard that begins with compliance. Build a solid platform and write a good business plan. With that in place, the money and great people will follow, allowing you to create your own unique brand that solves a problem,” he said.
A world-class brand doesn’t just happen… let alone two. I’ve learned from these brands that they have succeeded by paying close attention to the details and focusing on quality in everything they do, in everything they touch. They chose their partners carefully and began with a compliant platform.
I am grateful to each of them for creating beauty in a rather barren landscape. For giving us greatness to aspire to and for helping to elevate the image of our industry just by entering it.
Thank you!
Kary Radestock, CEO, launched Hippo Premium Packaging in March 2016 offering an array of services to the cannabis market, including: Marketing Strategy, Brand Development, Social Media, Public Relations, Graphic and Web Design, and of course, Printing and Packaging. Radestock brings over 20 years of award-winning print and packaging expertise, and leads a team of the nation’s top brand builders, marketers and print production experts. Hippo works with businesses looking for a brand refresh or an entire brand development, and specializes in helping canna-business get their products to market in the most beautiful and affordable way possible. Radestock’s Creative Collective of talent and experts, allows her to offer world-class solutions to support the unique needs of the Cannabis Industry.
Member Blog: Financing Options for Cannabis Businesses – How to Plan, Prepare and Present
Most business owners in the cannabis space will experience the need for capital to start or expand their business. While there are a variety of options when it comes to financing, there are a few important keys to being a smart borrower.
I speak frequently about the need to start the financing process off on the right foot. As a veteran of the commercial finance industry, I have helped dozens of cannabis businesses secure capital. The most common types of financing requests we see are for equipment, working capital, or real estate loans. I believe there are three P’s critical to getting financing to launch or grow your marijuana business: Plan, Prepare and Present to the right people.
Plan
During the planning phase, consider whether you’ll be seeking debt or equity. To understand which funding sources may be the best fit, start by asking yourself several questions. What will the money be used for? How much is required? What is the timeline to be able to repay the loan?
After answering a few important questions about your business and researching the types of financing sources available, decide whether a debt- or equity-based funding source is the best option.
Keep in mind, lenders look at things very differently than investors do. By nature, lenders are focused on the return on their investment with regular payments over a period of time at a set rate. This is different than an equity investor, who has a longer time horizon to be repaid and is seeking a significantly higher return on capital.
Prepare
Next, gather your financial documents, including your credit report, tax returns, personal financial statements, and any current company financials.
Consider having a CPA review or audit your financials before your meet with prospective lending sources, especially if you are considering debt-based options. Lenders are specifically interested in your balance sheet, income statement, and liabilities to confirm that you have the ability to repay your loan.
Once you have prepared your documents, it’s time to start formulating your business plan and executive summary for your presentations. An effective executive summary is a concise one- to two-page pitch describing your business, the funding you are seeking, and how the funding will be used. A 10-point guide to creating an effective executive summary is available here.
Present
Before you can present, you must have a solid grasp on your audience, which is why it’s important to determine early on the type of financing that may be suitable for the stage and trajectory of your business.
After identifying the appropriate financing source(s), it’s time to prepare for meetings. With your executive summary, business plan, and financials documents in order, you will be in a better position to make a good impression and obtain the funding you are seeking.
In my experience, answering questions directly and providing information quickly when requested are two keys to a successful meeting with a potential financing source. Lastly, ask thoughtful questions, such as “what are your funding criteria?” to help you learn more about what those funding sources consider important and to decide if you should continue to invest time and energy pursuing those relationships.
Scott Jordan is Director of Business Development for Dynamic Alternative Finance. He has arranged over $27 million in loans and equipment leases for cannabis business owners in the past two years. Scott is a commercial finance expert known throughout the marijuana industry. He has been interviewed by local TV and radio stations, authored articles and been a featured speaker at national conferences. Reach him at 303.754.2050 or s.Jordan@dynaltfinance.com.
Video: 4th Annual #CannaBizSummit Re-cap
In this month’s video newsletter, NCIA Director of Events and Education Brooke Gilbert shares some of the highlights from last month’s 4th Annual Cannabis Business Summit & Expo, held in Oakland, California. With more than 5,000 attendees, 80,000 square feet of expo floor, in-depth workshops and tours, and exceptional keynotes and panel discussions, #CannaBizSummit attendees got connected and inspired with us over the course of three days in June. Thanks to everyone who attended and made the event NCIA’s best yet!
Member Blog: The Little-Known – and Critical – Exception to Federal Paraphernalia Laws
Last month, the Boulder Daily Camerareported on the case of Stashlogix, a manufacturer of lockable storage containers whose shipment of products was seized by U.S. Customs and Border Protection (CBP). That seizure followed an earlier warning letter from CBP, which advised the company that the containers could not be imported.
The Washington Postprovided excerpts from the correspondence between CBP and Stashlogix after the seizure:
“This is to officially notify you that Customs and Border Protection seized the property described below at Los Angeles International Airport on April 28, 2017,” the letter read. The agency had seized 1,000 of Stone’s storage bags, valued at $12,000. CBP said the bags were subject to forfeiture because “it is unlawful for any person to import drug paraphernalia.”
In a separate letter explaining the ruling, CBP acknowledged that “standing alone, the Stashlogix storage case can be viewed as a multi-purpose storage case with no association with or to controlled substances.” However, it noted that the storage cases come with an odor-absorbing carbon insert that could be used to conceal the smell of marijuana.
A representative of CBP provided further insight into the thinking within the agency:
Jaime Ruiz, a public affairs agent with the CBP, said that because it remains illegal under federal law, importing any drug or associated products into the country is prohibited, even if it comes through a port in a state where pot is allowed.
When it comes to drugs and related products, he said, “we’re enforcing (Drug Enforcement Administration) guidance. So if it looks like drug paraphernalia, they’ll stop and inspect it and make the best determination.”
In asserting that this activity is unlawful, the CBP is basing that assertion on the federal paraphernalia statute (21 U.S.C. 863), which provides:
“It is unlawful for any person
(1) to sell or offer for sale drug paraphernalia;
(2) to use the mails or any other facility of interstate commerce to transport drug paraphernalia; or
(3) to import or export drug paraphernalia.” (21 U.S.C. 863(a))
Drug paraphernalia is defined as
“any equipment, product, or material of any kind which is primarily intended or designed for use in manufacturing, compounding, converting, concealing, producing, processing, preparing, injecting, ingesting, inhaling, or otherwise introducing into the human body a controlled substance, possession of which is unlawful under this subchapter.” (21 U.S.C. 863(d))
So it seems that in this case, CBP seized these lockable storage containers because they believe they were intended to “conceal” cannabis. This is quite a position for CBP to take, since the containers – whether they were for cannabis, tobacco, or prescription drugs – seem to have a primary purpose of keeping substances out of the hands of kids. If these products were not “concealed,” they might be accidentally ingested by small children.
But there is a more significant issue here that both CBP and the media did not address. What they ignored is a significant exception to the federal paraphernalia laws. At the end of the paraphernalia statute is this provision:
(f) Exemptions. This section shall not apply to—
(1) any person authorized by local, State, or Federal law to manufacture, possess, or distribute such items
As with any aspect of the law, there can be differences of opinion over how a statute should be interpreted. And the federal government may have its own interpretation of the exemption to the paraphernalia statute. The plain language, however, is pretty straightforward. If you are authorized to manufacture, possess, or distribute certain items, then you are exempt from the prohibitions in that section.
Note that the exemption states, “This section shall not apply…” It does not say, “Prohibitions on manufacturing, possession, or distributions shall not apply…” It says, “This section…” And what is included in the section? The prohibition on importing paraphernalia. The plain language of the statute, therefore, suggests that the prohibition on importing paraphernalia does not apply to an individual who is authorized to manufacture, possess, or distribute paraphernalia under state law.
The federal paraphernalia exemption is so significant that it was used as a model for a bill introduced by Rep. Dana Rohrabacher, which has 22 co-sponsors (11 Republicans and 11 Democrats) as of this writing. The Respect State Marijuana Laws Act of 2017 adds one sentence at the end of the Controlled Substance Act:
Part G of the Controlled Substances Act (21 U.S.C. 801 et seq.) is amended by adding at the end the following:
“SEC. 710. RULE REGARDING APPLICATION TO MARIHUANA.
“Notwithstanding any other provision of law, the provisions of this subchapter related to marihuana shall not apply to any person acting in compliance with State laws relating to the production, possession, distribution, dispensation, administration, or delivery of marihuana.”
The drafters of cannabis-related ballot initiatives have been aware of the paraphernalia exemption for quite some time and have intentionally addressed paraphernalia – often called “marijuana accessories” – in the measures so that the federal exemption would apply.
In 2012, Colorado’s Amendment 64 provided that the following acts would no longer be an offense under Colorado law for persons twenty-one years of age or older: “manufacture, possession, or purchase of marijuana accessories or the sale of marijuana accessories to a person who is twenty-one years of age or older.”
California’s Proposition 64 in 2016 took the additional step of expressly connecting state law and the federal paraphernalia exemption, by providing:
11362.1.
(a) Subject to Sections 11362.2, 11362.3, 11362.4, and 11362.45, but notwithstanding any other provision of law, it shall be lawful under state and local law, and shall not be a violation of state or local law, for persons 21 years of age or older to:
[…]
(5) Possess, transport, purchase, obtain, use, manufacture, or give away marijuana accessories to persons 21 years of age or older without any compensation whatsoever.
(b) Paragraph (5) of subdivision (a) is intended to meet the requirements of subdivision (f) of Section 863 of Title 21 of the United States Code (21 U.S.C. § 863(f)) by authorizing, under state law, any person in compliance with this section to manufacture, possess, or distribute marijuana accessories.
The cannabis industry faces a host of difficulties stemming from the disparity between state and federal laws. The challenges and risks associated with these differences have become an accepted cost of doing business. But where federal law provides a clear exemption for certain state-legal activity, the federal government should ensure that its activities are consistent with law. In this case, it seems far from clear that they are.
This blog post does not provide legal advice. It is intended for general informational purposes only. If you need legal advice, please contact an attorney directly.
Steve Fox, Esq., Director of VS Strategies, has, since 2002, been one of the leading figures in the movement to create a legal, regulated marijuana market in the United States. He is a co-founder of the National Cannabis Industry Association and currently serves as the director of NCIA’s Policy Council. In seven years at the Marijuana Policy Project, he lobbied Congress and guided numerous ballot initiative campaigns, including the 2012 Amendment 64 campaign in Colorado.
Highlights From NCIA’s 4th Annual Cannabis Business Summit & Expo
by Brooke Gilbert, NCIA Director of Events and Education
NCIA’s biggest and most influential event, the Cannabis Business Summit & Expo, wrapped up a few of weeks ago in Oakland, CA. We hope you had as much fun as we did! Did you miss out on attending, or would you like to relive your experience? Check out these event highlights below to get a glimpse into this year’s edition of the Cannabis Business Summit & Expo:
• Our largest event to date with 5000+ attendees.
• Keynote address from President Vicente Fox, the former president of Mexico, who spoke about the social injustices created by the war on drugs and the positive effects of global cannabis legalization. Listen to his full keynote here.
• Eighty thousand square feet of sold-out exhibit space featuring 250+ exhibitors, and 33 media and industry partners.
• Twenty hours of educational content over three days, featuring six workshops and 30 breakout sessions spread across five educational tracks and led by 150+ industry experts.
• Two plenary sessions, one featuring a discussion of the strategies to reform Internal Revenue Code Section 280E, and the second featuring a discussion of the results of a 16-month stakeholder-driven process that resulted in a comprehensive white paper detailing regulatory recommendations for packaging and labeling of cannabis products.
• On-site bookstore and book signings from current cannabis industry authors including John Hudak, Ewe Blesching, Chris Conrad, Steve DeAngelo, Jorge Cervantes, and Donna Shields.
• One hundred seventy-three press personnel from 65 outlets joined us for the three days, generating 1.4 billion impressions worldwide.
View the entire official photo album from the 4th Annual Cannabis Business Summit & Expo online here: TheCannabisIndustry.org/CBS17Blog
A big THANK YOU to all our attendees, volunteers, speakers, sponsors, exhibitors, and partners for contributing to another successful year at our Cannabis Business Summit & Expo.
My dad, Glenn Murray, a technically trained and internationally recognized gemologist, made me a 2.5 carat diamond pave indica leaf lapel to wear with my suits while I was lobbying with NCIA and the Governor’s Task Force for Amendment 64 (ending marijuana prohibition). I wore the pin everywhere and could see it was not only changing minds, but starting conversations with people that traditionally wouldn’t openly discuss or inquire about cannabis. The pin created a movement, creating a non-threatening space for educating consumers about cannabis and its benefits. GENIFER M is an extension of that conversation and was launched to change the way people perceive, interact, and experience cannabis through luxe style and handcrafted quality jewelry. 
I joined NCIA because we needed a national voice to be heard in D.C. I wanted to help educate lawmakers and the public about the issues challenging the industry, to help prepare for the issues that nobody knew about back in 2012. I also joined because the NCIA community and its members provided me support through my cannabis entrepreneurial journey; they knew exactly what I was going through and became a great network founded on the mentality of helping each other grow and succeed. We are all working together to pave the way for the industry. 
