Author: ari

Ask the Cannabis Expert -Todd Sherer: What challenges do you see in banking and financing for the cannabis industry?

Bridge West Consulting had an opportunity to speak with Todd Sherer, First Vice President with Valley National Bank. Valley National Bank has been serving the cannabis industry for over a year and is one of the largest national banks serving the cannabis market.

What is your background in the Cannabis industry?

Todd Sherer, First Vice President with Valley National Bank, joined Valley National in 2021 to help grow their cannabis practice. As an integral member of the bank’s cannabis banking team, Todd and his colleagues serve a wide range of cannabis clients nationwide. Prior to joining Valley National Bank, Todd ran business development for 13 years with a non-bank lender in New York City.

About eight years ago, Todd started a second line of financing for the cannabis industry, and he provided debt facilities to a wide variety of customers in the cannabis space. Todd provided financing to many companies in the industry including vertically integrated operators, extraction companies, and ancillary businesses.

As a panelist for many major cannabis events over the past few years, Todd regularly shares his expertise and knowledge about financial issues impacting the cannabis industry.

Valley National Bank has been serving the cannabis banking industry for a little over a year and a half and the bank is quickly positioning itself as the leading bank serving the cannabis market. Todd’s goal is to grow the bank’s presence in the cannabis industry. Valley is now offering deposit relationships to cannabis companies nationally and is currently banking some of the largest companies in the U.S. The bank is offering these services to license “hopefuls” in the NY Tri-state area as well as some the most prominent companies in the industry. Additionally, Valley offers a service called ‘Concierge Banking’ to their cannabis customers. This offering comprises a dedicated team of cannabis-focused bankers who have deep industry experience, providing customers with higher-level services. Since Valley National Bank is one of the largest national banks working in the cannabis industry, they support cannabis operations in multiple states. Customers receive one login portal and one site to visit, which simplifies the process of operating nationally and moving money from one account to another, or one state to another. Most large commercial enterprises are accustomed to all the commercial banking services available at Valley National Bank, which has been a “game-changer” in the industry. In addition to banking, Valley National Bank also provides some lending, but mainly financing as it relates to real estate for their customers. They are looking to offer more for their customers as time goes on.

Recently, Valley launched Valley Pay, a digital payment solution for the cannabis industry. Valley is constantly looking for new ways to service the cannabis industry.

What challenges do you see in banking and financing for the cannabis industry, and how can you and Valley National Bank address them?

Overall, the challenges in the cannabis industry have changed over the years. Todd mentioned that he consistently sees a challenge of open a simple checking account. Some states are easier than others; however, the vast majority of accounts are opened by smaller state-chartered banks or credit unions. This leaves the industry shorthanded when it comes to not having access to traditional financing and banking tools that everyone else has access to outside of cannabis. This is where Valley National Bank steps in and assists cannabis companies struggling with basic financing and banking issues. Valley provides the help they need to operate efficiently throughout multiple states.

Outside of obtaining banking, it is equally challenging to obtain financing for a cannabis operator. Todd stresses that the industry is heavily reliant on equity investors. Non-bank lenders in the space offer high-interest loans, which helped fill a void left in the market. Todd said, “Fortunately, today there are banks like Valley and other financial institutions that are willing to lend to cannabis companies.”

Cannabis Entrepreneur Spotlight: Big Island Grown Jaclyn Moore, CEO, Pharm.D, and Dylan Shropshire, COO, Founder

Bridge West Consulting had a great opportunity to speak with Jaclyn Moore, CEO, Pharm D., and Dylan Shropshire, the COO, and Founder of Big Island Grown, the foremost provider of premium medical cannabis in Hawaii.

Where did Big Island Grown get its start?

Dylan Shropshire was born and raised many miles from the beautiful island of Hawaii in Alaska. He worked closely with his father in the family business called, “The Green Connection,” an interior plant business. Dylan and his father regularly traveled to Hawaii to bring foliage to Alaska to grow and sell on their farm. The plants they bought from Hawaii would last the longest and looked the best. There was a three-year waitlist for plants from Hawaii, and since that was too long, they decided to start their own farm in Hawaii. After years of going back and forth from Alaska to Hawaii, they realized that it would make more sense to sell The Green Connection in Alaska and move the business to Hawaii full-time. Once Dylan graduated college, he returned home to help his father restart the farm after the recession. After the move, they began to farm more than office plants, and their crops included potatoes and ginger.

Throughout the years, Dylan closely followed the legislation for cannabis dispensaries in Hawaii. In 2015, legislation finally passed through an emergency session on the floor. Dylan knew right away that he needed to do everything he could to focus entirely on the cannabis industry. Hawaii Island had the highest number of medical cannabis patients, and was a very cannabis-oriented community. Dylan saw a huge opportunity to make a difference.

Since a young age, cannabis has been an integral part of Dylan’s life. Dylan always has been extremely passionate about the medicinal qualities of the plant. A huge inspiration for Dylan’s eagerness to focus on the cannabis industry was his best friend’s traumatic experience when he was 13. His best friend was hit by a tractor and very badly injured, and instead of using pills to help with the pain and suffering, he turned to cannabis. Dylan saw first-hand how well cannabis helped his best friend, and how beneficial it was for patients as an alternative to over-the-counter medication. Dylan had been highly passionate about cannabis from the start and always knew that he wanted to focus his career on the industry.

Dylan was only 27 when he started in the cannabis industry and there was a lot to learn. Along the way, he learned through trial and error about the best practices to grow and cultivate cannabis. He powered through the tough times while submitting his application and developed a team to help raise the funds needed to make his dream a reality.

Can you tell us about the importance of your location?

Dylan needed to determine the location for his business, and he selected Pepe`ekeo, an old sugarcane town on the Hamakua coast. Dylan chose Pepe`ekeo for a variety of reasons and especially because the town didn’t have many businesses after the sugar cane industry folded and because it boasted a rich agricultural history. Since there were not a lot of job opportunities for local people, this was an opportunity to revive an amazing agricultural community with great soil. The farm sits on land that was formerly part of a sugar plantation that had its origins dating all the way back to 1857.

Dylan met his partner Jaclyn Moore, CEO & Pharm. D., during this process too. Jaclyn and Dylan were ideal business partners from the very beginning since Jaclyn is just as passionate about cannabis, the location, and the brand. Dr. Jaclyn brings to the table a plethora of knowledge as a Dr. of Pharmacy and having an intimate knowledge of the local culture she now identifies with. Dr. Moore has been immersed over 15 years with serving the community, and patients in a well-known local Pharmacy. She stressed how vital the location of the business is to the brand and the culture they were creating for Big Island Grown. They are equally passionate about the unique story that shaped “this genuine connection with the local community” and their location. Dr. Jaclyn and Dylan wanted to bring light into these communities that were struggling to survive after the sugar cane was outsourced and thousands of jobs were lost. Dr. Jaclyn knew they would be a great fit as partners — they were both passionate about reinvigorating their local community, especially since they each live and are raising their own families in the same community.

Dr. Jaclyn expressed pride in how they have added to the local economy in a way that has made Big Island Grown the largest private employer on the Hamakua Coast with over 65 dedicated, passionate employees, who give 100% every day. “The location of our production center was once home to sugarcane, evolved into the largest banana farm in North America at one time, and is now home to a state of the art cannabis facility. There has been a rejuvenation of the local area as we’ve expanded, and it is just the beginning.” Their production facility uses natural infrastructure that was left behind from the sugarcane plantation era. Their hydroelectric system, takes advantage of the natural resources available on this historical and esteemed parcel of land, which enables Big Island Grown to leave a small carbon footprint. Big island Grown has the ideal natural foundation to be successful growing cannabis while respecting the cultural importance of the location, honoring the past through sustainability. Their facility rivals any other indoor grow operation, organically separating this “craft” Hawaii cannabis from any other worldwide.

Dylan discussed that due to State of Hawaii laws, they had to grow indoors, even though the environment in Hawaii is optimal for an outdoor grow. This was another factor for this location. They committed to being sustainable in different facets of the business, primarily in hydroelectric and solar electricity. So many obstacles stood in the way when first starting the business. That meant that Dr. Jaclyn and Dylan had to be able to “do every single job within their company.” This concept supports the socially sustainable aspect of the business because only three staff members of their 65 employees relocated from off the island. Everyone they hire is brought into the business because of the skillsets, passion and specialized knowledge they have.

How did you recruit your staff?

Throughout this process, Dylan and Dr. Jaclyn tried to be incredibly thoughtful in the hiring process by infusing people from the island to perpetuate culture, and establish local resources. They have had some instances where people have moved off of the island because of the lack of opportunities, and actually came back home and now work for Big Island Grown. Now they can sustain a living there with their families. Dylan shared how amazing it has been to watch people he has known come back to the island and work for their company, “All my friends had been leaving the Big Island because there’s no jobs here. That’s the best feeling, when you can actually see someone come back and be able to support a family.” Their main priority is to help this decaying town by bringing back friends to build up the community and make it sustainable again.

Do you see the number of medical patients you serve increasing in Hawaii?

As the years go on, the number of medical patients in Hawaii continues to rise. Dylan commented about how if it were easier for residents to get medical cards, the numbers would be a lot higher than they currently are. One challenge for Hawaiian residents is that you cannot have a medical card if you own a gun. Many residents hunt and fish for their food, and if you need medical cannabis, you cannot have both licenses. They are at a time now where the growth curve is starting to flatten as Hawaii becomes closer to legalizing cannabis for recreational use. Big Island Grown began with a very mature and growing number of home-patient customers, such as caregivers and home growers. Until legislation makes more moves in the recreational direction, there will be a flattening of growth in medical patients.

What are your goals for Big Island Grown?

For this dynamic duo, it is imperative to provide high-quality medicine and affordable products for their patients during the growth of the market on the island and the increase the number of medical patients. The island has some of the lowest income rates in the entire state. People are on fixed incomes and many people who grow for themselves or people who have purchased from the black-market are impressed by the quality of Big Island Grown products. Customers are always welcomed with Aloha in each of Big Island Grown’s dispensary locations, Hilo, Waimea, and Kona.

In our retail locations, patient attendants aim to educate and elevate the patient experience. The biggest challenge is getting the new patients in the door for the first time, after that, Dr. Jaclyn and Dylan let the quality speak for itself.

What is the vision for Big Island Grown?

Producing quality cannabis was so important to Dylan and Dr. Jaclyn from the start. “When someone thinks about Hawaii cannabis, we want them to think Big Island Grown. “People have been growing cannabis on Big Island for generations, and through our breeding program we are taking Hawaiian genetics to the next level.” Their main focus and mission is pioneering an agricultural renaissance that perpetuates the proud legacy of Hawaii farmers through growing and crafting the highest-grade cannabis medicine in the world.

Can you tell us about your mission for Big Island Grown and your values?

Dylan and Jaclyn explained that the Mission of Big Island Grown is to pioneer an agricultural renaissance that perpetuates the proud legacy of Hawaii farmers through growing and crafting the highest-grade cannabis medicine in the world.

When asked about their values Dylan and Dr. Jaclyn said:

Values are what shape you. They determine your priorities and guide your decisions. Values keep individuals motivated and teams united. Your values declare what you stand for and define who you are. At Big Island Grown, this is what we value most.

Integrity – means we are authentic, transparent, and honest in all that we do.

Malama – means we care for nature, our community, and for ourselves.

Innovation – means we are constantly thinking outside the box to improve our craft and our service.

Ho‘omau – means we persist and persevere no matter the obstacle.

Quality – our top priority in everything we do.

What advice do you have for entrepreneurs looking to get into the cannabis industry?

Dylan says, “The number one thing for me is to pick something you are passionate about because you’re just going to give up if you don’t. It is difficult to start a business and run a business as an entrepreneur. If you don’t wake up in the morning and get excited about what you do, you have no chance. Just because you are going to get ‘punched in the face’ many times, and you need to be able to get back up and love what you do.”

Dr. Jaclyn said, “You need to have the passion and the love, but you also have to surround yourself with really solid people. The industry is a marriage and delicate balance of cannabis culture meets compliance. These two worlds collide and it can be quite intense. Surround yourself with the people who you know are committed and in it with you.”

Is the cannabis license structure in Hawaii similar to any other states?

The license structure is set up like New York or Florida – it’s eight licensees that are vertical. Big Island Grown cannot buy from anyone else, they cannot sell to each other, and it is one of the most conservative programs in the country considering how mature it is. Since the program is formulated this way, they can’t include some members they have as employees.

Can you tell us about the Artists Series?

The intention of the Cultivating Art series is to highlight and elevate other people in the community with a variety of interpretations, and they dedicated this section of their website to them: Artists Series: Big Island Grown The idea around this is that they have a print with a cultivar strain, which they will have an artist make an interpretation of this specific strain and give them full reign to do whatever they want for the art. This allows them to promote the artist, and in turn enables Big Island Grown to promote themselves and sell their prints to others in the community.

In addition to the artist spotlight, marketing has a monthly Spotify playlist that they create with local musicians or DJs to enhance the vibe in each dispensary.

What do you like to do in your free time and for fun?

The Big Island has 11 of the 13 climate zones of the world – high heat like the jungle to snow like the arctic. Dylan loves to find many incredible spots to explore, and he enjoys hiking, and searching for waterfalls with his drone. These are Dylan’s huge passions, and anything involving music.

Dr. Jaclyn has two children, an 8 and 6-year-old, who are both home-schooled and extremely active. She lives off grid with her family on a ranch along with a herd of sheep, chickens, and a donkey.

Ask the Cannabis Expert – Sahar Ayinehsazian: What Types of Corporate Services Should a Cannabis Company Consider at Various Lifecycles and Stages?

Social Equity in New York and New Jersey

New York and New Jersey are becoming industry leaders among states that are embracing social equity. New York sees its program as the gold standard for social equity; on paper, so far, this looks promising. The proof, however, is in the implementation. As more states cannabis markets come online and take advantage of the market potential of legalizing cannabis for adult use, each state is working towards a better understanding of how to address the social equity dilemma that has plagued the cannabis industry. New York and New Jersey are both creating unique opportunities for social equity business owners and opportunities to reinvest in their communities that have been most affected by the War on Drugs. So let’s dive into their social equity programs.

Social Equity Programs: Why Are They Necessary?

The cannabis industry has a diversity problem. This problem traces its roots to early legalization initiative attempts to assuage fears about the risks involved in legalizing cannabis. Many of the ownership requirements to pursue a merit-based cannabis license in these early adoption states severely limited opportunities for participation in the industry from the very communities most acutely impacted by the War on Drugs. A few years ago, social equity programs in cannabis in states like Illinois began in earnest once it became clear that maturing markets lacked diversity and primarily attracted ownership that already had capital readily available to risk in the emerging industry.

Critics have argued that early attempts at social equity did not go far enough and could be abused by having token diversity ownership or hires. These criticisms have led states like New Jersey and New York to address the social equity problem within the cannabis industry and within the states themselves. The states of New York and New Jersey hope their programs address the following:

The barriers to entry that exist, such as:
- Drug-related convictions,
- Lack of availability of financing,
- The cost prohibitiveness of cannabis business banking,
- Lack of business resources to navigate the licensing process,
The damage that has been done to communities because of unequal enforcement of cannabis drug laws, and
Access to the process of expungement of criminal records that have recently prevented many from joining the state-legal cannabis industry.

How New York and New Jersey Compare:

Expungement

New York and New Jersey have both implemented automatic expungement. Unlike previous states that required persons with a drug-related criminal record to apply to have their records expunged, both of these states have chosen to make this automatic. This eliminates both a financial and procedural hurdle that has made similar expungement programs challenging to navigate.

Community Reinvestment

Both New York and New Jersey will direct a percentage of adult-use cannabis tax revenue toward community programs. New Jersey has opted to have 70% of tax revenues from retail sales to be used for grants, loans, reimbursement of expenses, and other financial assistance in municipalities defined as impact zones. New York, however, is proposing to set aside approximately $100 million for social equity purposes over four years, roughly 28.5% of anticipated revenue generated.

Licensing Priorities

New York and New Jersey have set goals for the number of licenses issued to qualifying social and economic equity applicants. New York’s goal is to award 50% of adult-use cannabis licenses to social and economic equity applicants ensuring the inclusion of women-owned businesses, individuals from communities disproportionately impacted by the enforcement of cannabis prohibition, minority-owned businesses, combination minority and women-owned businesses, distressed farmers, and service-disabled veterans. New Jersey has established the microbusiness license as an opportunity for small businesses with fewer than ten employees, and 51% of the owners, directors, officers or employees reside in the town or neighboring town where the business will operate. In addition, 30% of recreational licenses are to be women-owned businesses awarded to minority-owned businesses and disabled veteran-owned businesses.

Where New York and New Jersey Differ

New Jersey will be quicker to implement regulations and start awarding business licenses, while New York has not fully defined their regulations at this time and will not have a merit-based cannabis license period at the moment. New Jersey also has a conditional permit application that will allow for businesses to begin building and preparing for conversion to a full cannabis business license within 120 days. The licensing fees in New Jersey are also significantly lower than other states, and New York has established an office specifically for ensuring social and economic equity goals are met in the state.

Opportunities

New York’s anticipated rollout affords potential businesses with an opportunity to pull all of their application resources together refine them to submit a successful application. New Jersey presents a more immediate opportunity where the licensing fees are significantly lower for applications and for the business license. New Jersey’s rules and regulations were released at the end of August 2021. Those looking to take advantage of the opportunities presented in either of these two states are highly encouraged to seek consultants the services of experienced and accounting firms who know how to navigate the application, start-up, and ultimately opening and running phases of successful cannabis businesses.

We Can Help.

If you own a cannabis business or are thinking about starting a cannabis business, we’d like to help. As a partnership of highly skilled and seasoned cannabis industry consultants and advisors, Bridge West Consulting is ready to guide you through this exciting and challenging landscape. Feel free to reach out to us anytime to schedule a consultation.

Cannabis Entrepreneur Spotlight: Josh Hindi, Owner of Dabble Extracts

Bridge West Consulting had an opportunity to speak with Josh Hindi, Owner of Dabble Extracts, an award winning cannabis concentrate company working with a wide variety of clients all over Colorado. They offer a selection of high quality pure concentrates for both medical and recreational marijuana. Dabble Extracts is always working to provide consumers with the most flavorful, most beautiful, and best tasting products on the market. We are proud to spotlight this cannabis entrepreneur!

How did you get the idea or concept for your business?

It was a long time ago! When I was in college in 2008 at the University of Colorado at Colorado Springs, I had a professor, Dr. Robert Melamede, Ph.D., who opened a publicly traded research firm based around cannabis. I attended a lot of his seminars, and I became really interested in the subject of cannabis.

In 2009, I started Caregiver Grow that eventually merged with a dispensary. This was in the early days of the cannabis industry. It didn’t end up working out, so I backed off the industry for a while. I actually ended up working for a large insurance company as a Claims Adjuster, but after a few years, I realized it wasn’t for me and decided to give cannabis another go. Around 2012 – 2013, I applied for my first medical cannabis license, and we got approved to open a marijuana infused products (MIP) facility.

What risks were involved with launching your business?

It was a risk to start a cannabis concentrate company during a time when extraction technologies barely existed. When I opened my facility, the initial goal for the team was to make edibles, but when we entered the scene with the edible lineup, patients responded, “Oh, you’re a Marijuana-Infused Product (MIP) facility and you’re making edibles, but are you guys making concentrates at all?” Wax and oil had just hit the scene, and dab rigs had just started to come out. Although heavy cannabis users were increasingly asking for concentrates, dabbing was pretty revolutionary at this time, even in Colorado and California. I started looking into how concentrates were made commercially, and it seemed incredibly dangerous. People were shoving cannabis into turkey basters, then flooding the basters full of butane, and pouring out what was essentially a giant ‘butane hash slurry.’ I knew there had to be a better way.

There were two closed loop extraction systems on the market at the time. However, since the concept of dabbing was so new, they weren’t being used to create cannabis concentrates. Regulators hadn’t even caught on to this aspect of the industry yet. I studied these systems and pushed to use them for cannabis, and they were the only viable technology I found that could really work to produce clean concentrates. I ended up working with my team to create and define our extraction processes on that equipment, even before it was mandated. Eventually, when closed loop extraction was mandated, we had a bit of a leg-up on the competition.

What different skillsets came into play to launch your business?

I was a business major in college, but once I got the business rolling, I knew the integral role that chemistry played. I was applying the principles of chemistry every single day. I ended up going back to school to retake college chemistry classes. I’m not a certified chemist, but understanding the science and applying it to the cannabis industry has helped immensely.

We leaned on our diverse business and chemical skills to narrow down and hone our extraction process. As an example, we evaluated different processes, such as the hydrocarbon process, from a deeper level. We understood that even though it makes a good product, it’s easy to leave hydrocarbons inside the product, and inhaling hydrocarbons is potentially dangerous for lung tissue, even at microscopic levels. Without our understanding of chemical processes and properties, we wouldn’t have ultimately landed on creating concentrates through a closed loop extraction system. Our quality level has driven us to success. Not only can a user taste the difference in our products due to our extraction methods, but our products have better effects on users in the long term.

What is unique about your business?

We got into the cannabis industry in the very early days, which gave us a unique perspective and propelled our strong drive to create top-of-the-line products for cannabis patients and recreational users. For example, when we first developed edibles, manufacturers and sellers weren’t dosing their products consistently, and there was no homogeneity testing. This meant that patients couldn’t count on getting the same effect every time. We were motivated to have products that people could consistently count on to treat their symptoms. Similarly, when we first started making concentrates, there was a lack of quality concentrates available and very little best practices or standard operating procedures. We were driven to produce the highest quality oil, wax, and shatter and therefore, we developed our own processes.

Years ago we applied for patents and this year we finally received the first process patent. At that time, the consumer base had limited access to cannabis education, and as a result many patients and customers were largely uneducated on quality cannabis. When I started the business, we were not only entering an untapped market, but also trying to educate our customers. We focused on the values of terpenes and cannabinoids, the risk of contaminated products (pesticides and heavy metals), and the effects of different methods of cannabis use on a person’s lymphatic system.

Dabble Extracts is also unique in that most of our team members have worked together for several years. Our leaders and staff members are all extremely motivated, and we share similar values, which likely contributes to their longevity with the business.

What advice would you give to a cannabis entrepreneur just starting out?

Make sure you have a solid business plan and that you’ve developed your niche.

Know where you want to go and be versatile. If you have your heart set on something, it might not always play out, so it’s vital to be able to pivot when necessary.

You always have to be prepared to overcome obstacles, as change is the only consistent aspect in the cannabis industry, and regulatory updates frequently roll out.

Above all else, listen to your clientele and their feedback.

How does Dabble Extracts get involved in the community?

We donate Thanksgiving meals each year to those in need in our local communities. We also run a Christmas fundraiser each year to provide toys to families. Dabble Extracts also participates in 420 clean-up days to help maintain our beautiful local community. One of our most memorable charitable events was following Hurricane Harvey in Texas. Our team brought supplies to those who had lost their homes. We really enjoy getting involved in philanthropic events, whether it’s locally based or far-reaching.

What’s something that most people don’t know about you?

I’m a big reader. I just started re-reading. “The 7 Habits of Highly Effective People,” and I love reading The Wall Street Journal and The Economist. I’m also an avid comic book fan.

We Can Help.

If you own a cannabis business or are thinking about starting a cannabis business, we’d like to help. As a partnership of highly skilled and seasoned cannabis industry consultants and advisors, Bridge West Consulting is ready to guide you through this exciting and challenging landscape. Feel free to reach out to us anytime to schedule a consultation.

Cannabis Entrepreneur Spotlight: Pam Hemachandra, CMO, and Diprarag Dutta, CFO Herbiculture

Bridge West Consulting had an opportunity to speak with Pam Hemachandra, CMO and Diprarag Dutta, CFO of Herbiculture. We are proud to spotlight this cannabis entrepreneur!

How did you get started in the cannabis industry?

In 2013, Pam Hemachandra was finishing her final year as an exchange student in Japan in a business program. At the same time, Canada was in the process of legalizing medical cannabis. Pam’s dad was the serial entrepreneur in the family and the news about Canada and the cannabis industry caught his attention.

He wrote a letter saying that he was an entrepreneur and was interested in learning more. After receiving an invitation to Ottawa while the legislation was being drafted, he quickly realized that he needed assistance to pursue a cannabis license. Pam’s father approached her and her sister Venus to ask for help with the application process.

At that time, Pam and Venus were both business professionals and they knew nothing about growing cannabis; however, they approached the new venture as a learning experience. They ‘hit the books’ and learned everything they could about cannabis operations, including the basic principles and best practices of growing cannabis. With so much to learn, they continued to research the industry and educate themselves on ‘all things cannabis’ while applying for their license. With a lot of hard work and perseverance, Pam and her family were among the first in Canada to receive a pre-approved medical cannabis license.

What risks and sacrifices were involved with launching your business?

Pam explained that when she and her family first entered the cannabis industry, it was challenging to be both entrepreneurs and of Southeast Asian descent.

When Pam, Venus, and their Dad were thinking of a name for their first cannabis company in Canada, they didn’t want the name to sound like a cannabis company. Since cannabis wasn’t fully accepted at that time, they didn’t want the name to convey anything negative. But a few years later when they created Herbiculture, it was a different perspective. Pam explained, “Being in the industry for a little while, we really got to appreciate how medical cannabis benefits patients and we saw many cases where it significantly helped people. When we were thinking of a name for our business, we wanted to incorporate that concept and convey how much culture is really behind cannabis. Unfortunately, this is easily neglected.” Pam continued, “When some people think of cannabis, they think of a stereotypical “stoner” culture. For Herbiculture, from the very beginning, we wanted to change that stigma and create a brand that highlights the amazing things cannabis can do to help people.”

Other family members and friends viewed cannabis as taboo, and there was a big cultural barrier to cross by pursuing a business in the industry. However, they focused on educating themselves to ensure they understood the business and the various growing, extraction, and retail processes, every step of the way. Pam wanted to deeply understand the true benefits of medical cannabis and she also wanted to help change the stigma behind it.

A few years later, Venus got married and moved to Maryland, where medical cannabis was being legalized. They saw Venus moving to Maryland as an opportunity and a short time later, Pam, Venus, and their dad decided to pursue a Maryland cannabis license. Pam said, “If we’ve done this once and were successful, we can do it again!” They continued to learn more about the industry and received their cannabis dispensary license in Maryland. When their Maryland business was becoming operational, they decided to exit their project in Canada to focus on managing the dispensary in Maryland, which they decided to name Herbiculture.

At the same time, Pam’s husband Dip Dutta was in the process of earning his CPA license and working with hedge funds. Herbiculture was growing steadily, and they needed accounting and financial management assistance. Helping to manage the books was a huge leap of faith for Dip, and it was a big decision to leave his secure job in Toronto to work with Pam and her family. Since it was a family business, Dip was reassured that everyone was in the process of determining their roles and how everyone could benefit from the business. Dip saw this as an opportunity to apply what he learned in school, so he hopped on board.

In 2019, Herbiculture took advantage of an opportunity to apply for the new round of Grower and Processor licenses in Maryland which was focused on giving licenses to minorities.. They ranked #1 for processor and #2 for grower, out of many MSOs that applied. Pam explained, “At that time, it was just me, Venus, Dip, and the rest of our small team that we built from the ground up.” Pam expressed how happy she is to have grown their business to where it is today, and currently they are in the process of wrapping up fundraising and hope to become operational next year. Learning in Maryland has helped them change and shape the market on the East Coast and Canada.

They started from scratch with this entire company, from raising the funds to figuring out the process, making a brand for themselves, and growing. They have worked so hard to become what they are today. Pam says, “We’re still so young even though we’ve been in the industry since 2013, but there’s still so much to learn. It’s exciting to be a part of something new every day and we aren’t really in it for the money at this point. This process has been really rewarding.” Dip comments, “There are not a lot of people who have been in the “legal” cannabis industry for as long as we have. By starting our own business, we learned as we grew and taught ourselves the best way to run our business. The motivation is there definitely, and that’s what really helped to fuel our success.”

How did you select Herbiculture as the name of your company and how is your brand unique?

In the beginning when designing their dispensaries, the Herbiculture team were adamant to invest in making their spaces comfortable for people. They focused on making their dispensaries open, bright, airy, and environments where everyone would feel very comfortable and welcome.

Dip said, “we wanted a very approachable vibe. We wanted this to be a place where people can learn, and our budtenders educate our patients and customers about cannabis. This is an opportunity for us to educate more people about cannabis.”. By building their company from the ground up and taking on every single role, from owner to receptionist, Pam, Dip and the Herbiculture team was able to see their company from every angle and know what’s important to their customers. Pam said, “It has been really exciting and rewarding for us to build a brand for our customers and for people that need it. Hearing their needs and concerns, while being able to address them, has been really important to us.”

What challenges have you faced while your company has grown and what are your future goals?

Over the years, Pam and Dip have accelerated their business operations and growth. From the beginning, they established big future goals to grow and cultivate cannabis, in addition to operating their retail stores in Canada and Maryland. Growing and cultivating has been a huge jump up from having a single dispensary. Being entrepreneurs, they have always been responsible for every aspect of the business. Growing Herbiculture has made them realize they had to grow their team and share some of the responsibility to grow their company. Pam discussed the importance of finding the right people to fill the roles in their company to keep the Herbiculture culture intact throughout their business. They are currently addressing this challenge due to additional growth and quick changes happening at Herbiculture. Their experiences have taught them to be knowledgeable in the industry and they have a strong desire to change how people view cannabis. To Pam and Dip, it is essential to have the right people with a shared vision on their team.

The future for Herbiculture is to expand throughout the East coast and apply for licenses in the new states that have legalized recreational cannabis, such as New York, New Jersey, and Connecticut. Their goal is to grow their small family business, make it much more substantial and make a mark in the industry on the East coast. Their hope is that as they build the right team, they will only grow bigger and stronger, and be even more successful in achieving their entrepreneurial dreams.

The Herbiculture Dispensary in Maryland is focusing on expansion as well, which allows for an increase in inventory and product storage, and therefore, to accommodate more patients and customers. When asked about Herbiculture’s future goals, Dip explained, “We want to have an impact. Our goal is to focus on growing and expanding.”

If you had one piece of advice for an entrepreneur just starting in the cannabis industry, what would it be?

When asked this question, Pam’s biggest advice is, “Don’t be scared of change. Having a structure for decision-making, I think is really important. You may have thought that certain layers of facts were true, but then something comes out of left field, and you have to make big decisions. You really need to understand what your priorities are, what are you trying to accomplish, and how you can get the information you need to make these decisions.”

Throughout the years, there were many times when Pam and Dip didn’t have all the information they needed. Pam explained the importance of having key information at their disposal and consulting with industry experts for advice to get the necessary information as soon as possible. Pam emphasized, “It’s important to admit that you don’t know everything and there are people out there that do know more than you and just ask for help when you need it!” Pam and Dip had to figure things out by making mistakes and they learned about issues to avoid.

Pam also acknowledged that another key to success at the start of a business is the importance of establishing a structure within a company. She said that it will help any entrepreneur avoid making mistakes that can cause damage to growth. In addition, Pam said, “Be confident that you can adapt when things change. In an industry as rapidly changing as cannabis, it’s important for any entrepreneur to understand that just because you don’t know everything, it doesn’t mean you can’t learn.”

How has COVID impacted your business or the cannabis industry, that you’ve seen?

When the pandemic first started, Pam and Dip were in Canada and had no idea what to expect. At that time, they decided to switch to curb-side pick-up to make sure that they could still serve their patients. As the pandemic proceeded, staffing became a huge issue and they needed to function while being understaffed and make sure that everyone stayed healthy. Dip explained that there was a point during the pandemic where their family in Maryland was running the dispensaries –Venus, Venus’ husband Shreemal, and two others, 10+ hours a day and 7 days a week. They did everything they could to keep up with business without having to limit their patients or shut down the dispensary. It was very important to them to do whatever it took to keep Herbiculture open for the patients that needed this medicine.

Since the start of the pandemic, Pam and Dip have been in Canada and Venus and Shreemal have been operating the Maryland dispensary. This was a challenge as Pam,Dip, and the Herbiculture team had to learn new strategies, implement them quickly, and make decisions very quickly.

There was also a huge demand for cannabis at the beginning of the pandemic because people thought that dispensaries were going to close. It was a challenge for Herbiculture to make sure that they had ample supply to keep up with the demand. At one point, they had wait times that were over an hour, and people were lined-up to stock-up on cannabis. In response, they implemented curbside pick-up for patients and customers so there was less contact, but this meant more regulations that Herbiculture needed to follow.

What do you like to do for fun?

Over the summer, Pam and Dip began paddle boarding, and they love spending time with their dog on the water. Paddleboarding has been a great way to recover from their workdays and reenergize themselves. It is very important to Pam and Dip to give themselves time to recover from work and they enjoy outdoor activities. “We’ve even seen that when we take care of ourselves a little bit more, we are significantly more productive at work. We make much better decisions, and we have a lot more clarity. Sometimes all of that is lost when you’re in it 24/7,” says Dip.

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Ask the Cannabis Expert – Max Meade: What Are Key Insurance and Risk Management Strategies for License Applicants and New Operators?

As an Insurance Advisor with Brown & Brown Insurance, Max Meade specializes in cannabis insurance policies and risk management, and he serves cannabis customers all across the country. With a wide range of experience in the industry, Max develops insurance and risk management strategies and establishes policies for growers, cultivators, dispensaries, and cannabis brands. We asked Max, “What are the most important insurance and risk management strategies for license applicants and new operators?”

Max Meade’s background and how he started in the cannabis industry.

Max graduated from Temple University in Philadelphia, Pennsylvania, around the time Colorado legalized cannabis for recreational adult use. When Max’s cousin and grandmother became ill, they turned to cannabis to treat their illnesses, and this is when he realized the medicinal and healing effects of cannabis.

This experience ‘sparked a light’ and changed how he looked at cannabis, which fueled his desire to learn more about the industry and help others.

When Max joined Brown & Brown Insurance, he wanted to focus on the cannabis industry to help customers with loss, claims, employee concerns, and more. He performed research to learn everything he could about the industry. In 2016, Max was able to apply all of his knowledge when he began working with his first cannabis insurance customer. At this time, insurance policies for cannabis operations were very new. As an industry trailblazer, Max helped his customers strategize, and he provided invaluable guidance in areas that they hadn’t even considered as part of their risk mitigation approach.

After his first few cannabis customers, Max noticed a disconnect in the cannabis insurance niche. Many cannabis operators mistakenly thought that their current insurance coverage appropriately addressed the risk associated with their cannabis business. However, more often than not, that is not the case. Other industries have not seen the fast-paced growth like the cannabis industry. To Max, it is essential that he takes the time to educate his customers about the potential pitfalls and risks that can potentially impact those in the cannabis industry, and how you can mitigate those risks with tailored coverage to help address their unique needs. Max works closely with his customers, providing guidance and insight through every stage and lifecycle of their business— from manufacturing and growing to marketing.

What are the key insurance and risk management strategies for license applicants and new operators?

Max emphasized that proactiveness is essential for license applicants and new operators. Business owners should be fully transparent with the industry professionals that they are working with throughout the process to maximize the benefit of having a team to share their experience and best practices. Max said, “It is so important to develop your team and involve cannabis industry professionals — CPAs, lawyers, insurance agents, and others — from the very beginning, throughout the entire process, and in every aspect of your operation. The more your entire team is aware of ongoing updates, opportunities, challenges, risks, and we know what’s going on, the more we can help to make recommendations to help protect your business. It’s truly a team effort. Overall, the best advice I can give is to get knowledgeable industry specialists involved at the early stages of your cannabis business, especially when it comes to insurance and risk management.”

Cannabis professionals may not have risk management top-of-mind when insuring their cannabis business. Max said, “It is essential to have a clear picture of what you currently have and what is excluded, missing, or what might not provide the most comprehensive coverage. Then be proactive to avoid discrimination or harassment and help protect yourself against potential risks. Cannabis business owners need to have a clear understanding of what they have and how to put risk management strategies and coverages in place to help protect their business.”

When starting a cannabis business, cybersecurity is fundamental, and it is critical to ensure that data and information are protected in case your business is hacked. It is highly costly to resolve an issue involving hackers and a cybersecurity breach. The information stored in a cannabis business’s IT systems includes their customer’s private information and business records. It can be challenging to remain secure, and cyber insurance could help provide protection in situations of a cyber claim. “You shouldn’t think of insurance as an expense; think of it as protection. Don’t let risk mitigation be an afterthought – it should be part of your initial planning right at the beginning because you never know what is going to happen throughout the process.” Max stresses.

Overall, when starting a new cannabis business, insurance and risk management should never be overlooked or under-emphasized. Working with insurance professionals to develop a comprehensive program to help protect your business from early on can save you time, money, and headaches as your grow your cannabis business.

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Ask the Cannabis Expert – Anthony Winston III, P.E.: 7 Things to Look for When Selecting a Building for Indoor Cultivation and Extraction

Indoor cannabis cultivation and extraction facility design are critical when determining the building you want to occupy. Mechanical, Electrical, Plumbing (MEP) & Structural Engineering play a considerable role in the success of your facility. Now that cannabis is becoming legal in more states, counties, and cities, cultivation and extraction facilities are scrutinized.

Not conducting proper due diligence can be very costly. There are some instances where I’ve seen clients miss important deadlines, which caused them to lose their licenses. Putting together a solid, experienced team before selecting a facility is vital. When budgeting, make sure you have a professional Architect and MEP Engineer(s) on board to help guide you along the road to finding an adequate facility. When searching for a facility, keep the following seven items in mind:

1. Zoning

Before doing ANYTHING, make sure you find a building that is appropriately zoned for cannabis cultivation. If you are building from the ground up, make sure your Architect understands the minimum property setbacks from schools, residential buildings, etc. Most cities or counties will have zoning maps available that show the “Green Zones.” The last thing you want to do is invest in a new venture to find out you can’t operate because you didn’t do your homework ahead of time.

2. Parking

Recently my firm, Winston Engineering LLC, provided the MEP design for an extraction facility in Long Beach, CA. The client brought in their own Architect, who provided my firm with the floor plans. The plans were submitted to the city but were denied because there wasn’t enough parking! The building was built decades ago when parking regulations were much different than they are now. Due to this finding, additional parking had to be added to the property. This caused a significant issue because the client wanted to expand the building slightly.

This change affected the architectural plans, which also affected the MEP drawings. We were forced to redesign the facility, which cost the client more money and time.

3. Building Insulation

If you’re looking to purchase or lease an existing warehouse, make sure you understand your insulation requirements to maintain your grow temperature. For example, in California operators are required to adhere to Title 24, which governs energy efficiency. Unless you build insulated cannabis grow rooms within the warehouse, you will have to insulate your entire warehouse, which can be very costly.

4. Electrical

Once you narrow down a building, make sure the location has the electrical capabilities you need. Engage an Electrical Engineer with the loads you want to use so they can determine how many total amps you need. The other side of the equation is the voltage. Ideally, you want 480V, 3 phase as this gives you a lot more options for HVAC (Heating, ventilation, and air conditioning) and grow lights. If you can’t find 480V systems, 208V 3 phase would be the next best thing. PLEASE AVOID 240V, 3 PHASE DELTA SYSTEMS! Delta systems are usually found in very old buildings and have three different voltages (120V, 208V, and 240V). As shown in the diagram below, 3 phase 240V delta systems have a “wild leg” (sometimes called a “stinger leg”). On a typical 3 phase 208V wye system, if you placed a voltage probe on any leg and placed the other probe on neutral, the voltmeter would read 120V. On a 3 phase 240V delta system, if you read between the “wild leg” and neutral, the voltmeter would read 208V.

These systems can be a nightmare to design around and costly due to the additional electrical panels you may need. For example, if you have a lot of electrical components that use 120V (i.e., circulating fans, general receptacles, etc.), you will have to avoid the “wild leg,” leaving a large percentage of your circuit breaker slots empty (unless you have other 208V loads). With so many unused open slots, you may have to install additional subpanels.

My firm has made the delta system work before, but it adds another layer of complexity.

If you can only get a building with a 240V single phase, make sure you plan your grow room ahead of time. We recently had a client with a 240V single phase, 200A service, and we had to cycle rooms at different times. We had another client with 240V single phase, 400A service but had to purchase expensive phase converters to turn single phase into 3 phase to power heavy-duty extraction machines. Again, these scenarios cost the client more time and money.

If you’re building from scratch, be sure to engage the local utility to find out if there is enough available power you can tap into that will meet your needs.

5. HVAC

When leasing a building, make sure your landlord understands the potential facility modifications for indoor cultivation. As you probably know, indoor cultivation requires a lot of HVACS, so make sure your landlord knows about the impacts on their roof.

We recently provided the MEP design for a large indoor cannabis facility where the client specified that the condensing units be placed on the roof. After the design had been completed, we later found that the client didn’t consult the unhappy landlord, and we had to redesign the MEP drawings.

In another instance, the client insisted on rooftop units. We later found that the landlord had not provided a reinforced roof as previously agreed upon. Therefore, the roof could not withstand the additional weight.

If you plan to put the condensing units on the ground, ensure you have enough space to place them. Quite often, there is not enough space due to clearance requirements or required parking.

6. Sewage Capability

If you’re going to lease a building, make sure you understand the sewage requirements. If you have a public sewage system, ensure that the main sewage line is large enough for your indoor cultivation facility.

If you have a septic tank system, confirm the tank size and leech field are adequate for your needs. A septic tank holds all the solids while the excess fluid flows to a leech field and drains in the soil. If the septic tank is not sized adequately, you have to account for the additional cost to replace it. If the leech field is not adequate, a percolation test (a test to determine the water absorption rate of soil) will need to be conducted. Typically, your city or county should have the results of the initial examination. There have been instances where the records were lost or thrown out due to the age of the building. Also, make sure the septic tank has been inspected.

7. Demolition

When selecting an existing building, consider the demolition cost. If you come across a building that was previously used for product manufacturing, you’ll find that demolition could potentially be very costly. Sometimes old equipment and abandoned electrical panels can be left behind, leaving you a mess to deal with.

Very large, heavy equipment can be expensive to remove, especially components that are hung from the ceiling, such as FAUs (Forced air units). Removing large condensing units off the roof can also be very costly. Depending on the condition of the equipment, scrap metal companies may come to remove the equipment free of charge.

Another item to consider is understanding the previous tenants intended use for the facility. One of my first projects was to repurpose a large warehouse. After the client had signed the lease, completed the architectural plans, and signed my firm to do the MEP design, we later found that the previous tenant used the facility for microchip manufacturing. Very toxic chemicals are used in the manufacturing of microchips. The health department was concerned that chemicals may have leaked into the soil. Luckily test results came back negative, but if they were positive, the client would’ve had to pay enormous fees to make the building safe again.

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Cannabis Entrepreneur Spotlight: Amy Peckham, Chief Executive Officer of Etain Health

Bridge West Consulting had an opportunity to speak with Amy Peckham, Chief Executive Officer of Etain Health, in New York. We are proud to spotlight this cannabis entrepreneur!

Amy Peckham is the Chief Executive Officer of Etain, a women-owned and family-owned cannabis company in New York. Amy founded Etain in 2015 with her two daughters, Hillary Peckham, Chief Operations Officer, and Keeley Peckham, Chief Horticultural Officer. Since Etain secured one of the original five medical marijuana licensees in New York six years ago, the company has experienced significant growth and success. Bridge West Consulting met with Amy to learn more about Etain’s unique journey.

How did you get the idea or concept for your business?

The catalyst that propelled Amy, Hillary, and Keeley toward cannabis entrepreneurship was their grandmother’s battle with ALS. Amy’s mother and Hillary and Keeley’s grandmother, Frances “Granny Franny” Keefe, was the matriarch of their family. During Granny Franny’s fight with the disease, Amy and her daughters researched medical marijuana as an alternative treatment. Though it seemed promising on paper, Granny Franny never had the chance to try cannabis.

Tragically, Frances lost her battle with ALS in 2012, before medical marijuana was legal in New York. Amy and her daughters experienced extreme frustration due to the inaccessibility of cannabis that could have helped Franny.

Amy also explained that as the mother of four children, she spent years taking them to various doctor’s appointments. About ten years after her children were born, her mother-in-law lost her battle with pancreatic cancer. Between taking care of her parents and her children, witnessing the over-prescribing of pharmaceuticals, and failed clinical trials, Amy’s compulsion grew. She knew there had to be other solutions to help patients in need. This series of life experiences and events motivated Amy to start a medical cannabis company where patients could easily access cannabis of the highest quality.

How did the concept of opening a medical cannabis company come to fruition?

In 2015, obtaining a license in New York was incredibly challenging. The state was offering a total of five licenses, so the competition was fierce. Amy began her research and started preparing in advance of the application process, which largely contributed to her success.

In 2013, Amy closely followed the medical marijuana regulations in California and Colorado. Together with her daughters Hillary and Keeley, Amy spent many nights in front of their computers, researching as much as possible. When the Compassionate Care Act was finally passed in 2014, Amy would not let anything hold them back. Keeley and Hillary graduated from college with business minors — Keeley was a certified Horticultural Therapist, and Hillary had a business certification from The Tuck School of Business at Dartmouth College. “Hillary was the one who pushed me to put my money where my mouth was,” Amy said.

The team brought in the support of Jazmin Hupp, the Founder of Women Grow, who was a tremendous advisor to Amy, Hillary, and Keeley, as they built their license application. Jazmin, along with fellow Women Grow members, assisted in the development of various aspects of their business plan, including selecting the name, “Etain.” Amy shared that Etain is the name of a Gaelic goddess who represents women in a transitional capacity. It’s an homage to their Irish upbringing and a tribute to Granny Franny. Amy explained, “It is also a double entendre of cannabis and our family story that brought us to this name. For instance, we only make products from a female plant, the whole mother plant, which comes from mother earth. Our business grew from our mothers and daughters.” Amy expressed sincere gratitude for their team’s brilliant support, which was instrumental in helping to establish Etain. Today, Amy, Hillary, Keeley, and Etain are proud to support and remained involved with Women Grow.

“Winning a license was wild. Wild and exciting, I don’t think anyone had any nails left,” said Amy. “By the time the final day came, everyone was just sitting in front of their computers refreshing their screens. I couldn’t stand it any longer. To distract myself, I ended up cleaning my dining room vigorously, until the news came through. When it finally did, News 12 was at my front doorstep. I believe Hillary conducted 21 interviews that day.”

What are some of the challenges you’ve faced?

Medical marijuana in New York was not as accessible to patients as Amy expected, and this was a significant challenge. “New York medical professionals haven’t embraced cannabis at the same level as they have in many other states that began medical programs. For example, there are 80,000 doctors in New York, and about 3,500 in the medical marijuana program,” Amy said. It’s a domino effect. Since there are limited doctors, patients have limited support and education about the medicinal benefits of cannabis.

It took Amy, Hillary, and Keeley a lot of effort to forge relationships with doctors. “There’s a lot of resistance from medical practices, and it didn’t happen in an isolated manner,” Amy shared. A great example of this is New York medical school. If there are 80,000 doctors in New York, and only 5,000 of those doctors graduated in the last five years, that means 75,000 doctors did not have the opportunity to learn about medical marijuana in school. “Over the last 20 years, what’s really driven the acceptance of having legalized marijuana is the development of knowledge,” Amy said. She believes that to really make an impact, patients need more education and more knowledge.

When it comes to legalization at the Federal level, Amy thinks it will be a long road. “I think there will be a split from what’s considered consumable adult recreational versus the traditional pharmaceuticals, which is kind of a pity. I got into this industry to get away from pharmaceuticals,” Amy said.

What’s unique about your business?

From writing their cannabis license application with the support of Women Grow, to naming their company, ‘Etain,’ and having a management team that is 70% female, Etain’s commitment to empowering women makes them truly unique. Furthermore, Etain is the only women- and family-owned vertically integrated cannabis company. Amy said, “We’re women-owned, family operated, and 100% New York.” She also added that while their majority-female leadership team is partially by design, the fact that Etain is mostly female is mostly because the company is a comfortable place for women to work. Amy added, “Starting a female owned and operated cannabis business from scratch in an industry dominated by men is no easy feat. In fact, it’s remarkable.”

What marketing tactics have been most successful?

Etain showcases the integration of cannabis in day-to-day life. Amy is happy with being able to discuss cannabis more as a wellness product than anything else. “When you look at a lot of the surveys out there, so many people use cannabis just for sleep relief, not just pain. A lot of people are self-medicating with cannabis, not just socializing with it. Research has also shown that those who use it for social purposes, also use it for sleep, or for back pain. Other’s use is for more serious conditions, like to minimize seizures. It’s a brilliant plant.” Etain’s goal is to provide a form of cannabis for everyone, whatever their need may be.

From day one, Etain rolled out four main product lines: Dolce, Mezzo, Balance and Forte. The concept was to provide patients with the ‘full spectrum.’ Etain is thinking of new products every day, and people frequently share their ‘wish lists.’ In fact, they’re about to expand their facilities to make room for more products. “We started out as the smallest group with the smallest resources. We had a small lab and a hardy crew that cycled through developing one product each day for a long time. We’re very excited to soon have dedicated rooms to make different products, like water-soluble powders and lozenges that require their own environmental controls.”

Do you believe that this is the perfect time for New York to have recreational cannabis?

“It’s time for cannabis to come out from behind the closet doors. Literally. And the basement doors, and all of the places where people trying to cultivate cannabis plants,” Amy said. She said that New York is ready to turn the page.

Amy also expressed concern that consumer safety may be an issue for the New York recreational cannabis market and consumer safety awareness needs to be raised. “You can see it with the CBD market now. Everyone’s trying to put a cap back on it and regulate it now, but it’s already out there, and that’s a difficulty,” Amy said. Consumer safety is paramount at Etain, and the company has implemented best practices in manufacturing and testing for every single batch.

If you had one piece of advice for an entrepreneur just starting out in the cannabis industry, what would it be?

Amy said, “As soon as you get into the plant-touching side of the business, expect the unexpected.” Amy shared that entrepreneurs and cannabis business owners must be prepared and expect the worst to happen, like getting their bank accounts shut down. Owning a plant-touching operation can significantly impact your personal life, too. “It can interrupt life’s benchmarks, like going to buy a home and having your mortgage rejected because your full-time salary comes from a cannabis operation,” Amy explained.

Amy also expressed that the cannabis industry may not be for everyone. For those who are truly passionate and committed, Amy recommends having a team of people who can navigate the industry’s complex challenges, from the penalty tax laws, to cash management intricacies, etc. Amy also added, “research, research, research, know your personal strengths, get a solid team together, and don’t just think it’s a party.”

The cannabis industry is evolving and changing rapidly. Considering the many recent updates, are there any that you would like to mention?

Amy discussed a recent update announced by the Cannabis Control Board on October 5, 2021. The work that the Office of Cannabis Management (OCM) is undertaking alongside the Department of Health (DOH) will expand the NY Medical Marijuana Program as it remains within DOH. Effective immediately, these enhancements to the program include:

Patients supply per visit increased from 30 to 60 days;
$50 patient and caregiver registration fee removed;
Types of practitioners who can certify patients for the medical use of marijuana has been expanded and;
Whole flower has been approved as a form of medical cannabis.

What do you like to do for fun?

Outside of operating a successful female-owned vertically integrated cannabis business, Amy enjoys spending time with her grandchildren, and watching ‘The Walking Dead’ on Sunday evenings.

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Cannabis Entrepreneur Spotlight: Matt Muñoz, Finance Director of Texas Original Compassionate Cultivation

Matt Muñoz, Finance Director of Texas Original Compassionate Cultivation, shares the unique story of how this cannabis business rose to success.