Extract: Bud Voyage!

Cresting wave

Easy riders

s Travel pack

ns Warm gree

ur Show us yo grow While each month seemingly brings indication that the walls around federal prohibition are crumbling if not already falling in places, it still remains illegal for cannabis consumers, including licensed medical cannabis patients, from carrying their supplies with them when crossing state lines. Instead, many people are making cannabis tourism increasingly popular, whether in recreational states or in countries with loose prohibition or outright legal access to cannabis. Matt Patterson walks us through both sides of the equation. The accountants at GreengGrowth CPAs are back with more advice on how to prepare your company (and brand) for the upcoming upheavals in the industry while the tax deadline looms. Tony Freitas returns with a hot hemp oatmeal recipe for the cold months, and we take a took at a few select strains that are bred to be high in cannabidiol. In coming issues, we will look at some of the lesser-mentioned applications for treating illness with cannabis as well as offbeat methods of delivery, a doctor’s perspective on using cannabis to assist with weight loss and more expert perspective from the lawyers and consultants at Climb Collective. As always, please keep sending photos of your grows, both personal and commercial, for inclusion in our Show Us Your Grow section.

Matt Dinger Managing Editor Extract mdinger@okgazette.com

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By Lawrence Cagigal and Marko Glisic

The first full year of Oklahoma’s medical cannabis market is coming to an end and it is time to start thinking about ways to keep your business viable.

O

ver the past 12 months, Oklahoma has gone from zero to powerhouse in the medical cannabis industry. Boasting more than $250 million in medical marijuana sales in just the first 10 months of operation, Oklahoma has exceeded everyone’s expectations.

That $250 million takes into account only the 7 percent medical cannabis tax and does not include all applicable local or state taxes that range from 4.5 percent to 11.5 percent in Oklahoma.

As the excitement of the initial hyper-growth wears off, Oklahomans can expect to see two trends develop in the next phase of the local marijuana industry.

First, there will be an eventual collapse of many Oklahoma-based cannabis businesses and consolidation into the hands of a few operators who are executing well and have cash on hand.

A few trade associations and patient advocates did a fantastic job of giving nearly everyone a fair shot at opening their own cannabis business and the opportunity to capitalize on the “Green Rush.” As it stands now, if all licensed cannabis businesses began operating, there are simply too many dispensaries, pro-

cessors and cultivators to be sustained by the Oklahoma population alone. Yet we are not too far off from federal legalization, which we will address in a moment.

As the medical cannabis industry matures in Oklahoma, there will be clear winners and many obvious closures, but that is free-market dynamics for you. Many of the businesses that do shut down will have some residual value that the better operators will want to scoop up and acquire, such as client lists, equipment and real estate. If you think you might be closing, it is imperative to position yourself for a strategic merger or acquisition.

Building on this eventual consolidation of businesses, the second trend you will see is that massive multi-state operators will begin to make their moves into Oklahoma as they gear up for the legalization of cannabis. Full legalization is likely still a few years out, but it takes time for big companies to get their feet under them as well.

Land and resources are significantly cheaper in Oklahoma compared to nearly every other part of the country, and Oklahoma seems to be quite welcoming to the industry overall, so large cultivators and manufacturers will be making their

way into the Sooner State to get their facilities turn-key ready for the ultimate mad dash in cannabis.

Once interstate commerce opens up, each part of the country will begin to accept its place in the industry. As for Oklahoma, you will see a disproportionate amount of cannabis grown and processed here and then shipped out all over the country. This will eventually push prices down dramatically and really force operators to focus on having a solid brand name and excellent operations.

We do not have a crystal ball, but simply by observing how things have actually played out in the latter half of 2019, there will be two broad strokes in the cannabis industry that everyone can be on the lookout for over the next 12 to 24 months.

First, the focus of consumers will be less on the best product and more on the best branding and

deepest relationships. The general public does not buy only for the utility of the product, but also for what it says about them to other people.

An understandable example is the green Starbucks straw; it shows people that you enjoy “premium” coffee drinks and not just gas station drip coffee.

As better cultivation and manufacturing processes scale up, know that nearly every business will have access to the top-quality product.

Certainly there will be that ultra highgrade product for connoisseurs, but that is a very small subset of the addressable consumer market.

Knowing this, understand that branding is what will set the successful long-term competitors way ahead of the businesses that are just a simple flash in the pan. By creating a brand that people trust and ask for by name, you will be creating a pull-based strategy for your products compared to pushing them onto customers. Make people love the way they feel when they associate with your brand and you will be

from left Marko Glisic and Lawrence Cagigal | Photo Alexa Ace 4

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gaining lifelong customers who market your product for you.

As for relationships, do not forget that business is just a set of contracts and operations but what gives both of those aspects power is the people behind them. If you want to be around for a long time, then you need to focus on building a real human connection with strategic partners, clients and the end consumer.

To assist in the relationship process, from time to time, we are able to connect the truly select cultivators/processors with like-minded dispensaries that are worthy. This is another very tangible reason to find a cannabis-centric CPA, law firm or insurance agent. Leverage your relationship with your vendors who are able to introduce you to other strong operators. Together, through relationships, everyone can try to differentiate themselves from the competition with the sharing of ideas or unique or superior products to help survive

past spring 2020.

Winter is coming for the industry in 2020. Perils can range from licensing renewals to new regulations and lagging sales. It is happening now. We hear about someone exiting the industry every week. Leverage your relationships and start before the price of flower drops and taxes are due.

Financial compliance will determine if a business will actually be operating after its first two years. You might have heard that cash crimes are the new drug crimes, and it is true.

Local and state governments have legalized cannabis, so they are less focused on you possessing or distributing it and more focused on collecting the tax revenue from its sale.

More and more cannabis businesses are experiencing audits at multiple levels of government, but those audits aren’t a problem if you are operating in good faith and keep excellent records. Having solid record-keeping helps you and your fi-

DAILY SPECIALS

nance team be able to reconstruct your business dealings and prove the reasonable methodologies behind your tax filings.

You might brush this off as no big deal, but the reason financial compliance is so important is twofold.

First, when you make mistakes on your tax filings, you will be charged the tax debt, penalties, compounding interest and possibly fines, and those totals add up quickly. In most cases, a typical cannabis business does not have a pile of extra cash lying around for an unexpected tax bill, so working with a knowledgeable tax team who specializes in cannabis can keep you out of financial woes.

Second, and most critically, there is no access to bankruptcy protection for cannabis businesses since that is a federal protection and cannabis is still illegal at the federal level. Furthermore, those tax bills flow up to the officers of the company,

BEST BEST BEST BEST BEST

and you cannot get out of those liabilities; consider it like student debt for the cannabis industry.

Don’t get blindsided by the changes in the cannabis industry. As you operate your business with your head down in the thick of things, make sure you also peek up to see which new waves are coming and how you can prepare yourself for what is coming.

Lawrence M. Cagigal is the southwest territory sales manager for GreenGrowth CPAs, a boutique accounting firm based in Los Angeles that specializes in cannabis.

Marko Glisic is the lead certified public accountant for GreenGrowth CPAs. A graduate of the University of California - Los Angeles, he has eight years of experience working with businesses of various sizes, from startups to multi-billion dollar companies.

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Harlequin

Probably the most popular of the high-CBD cannabis strains, this is the one that will seem the most familiar to those who have not taken a toke in decades. A descendent of Colombian Gold and landrace strains, this sativa-dominant hybrid looks, smells and tastes like weed used to (but minus the seeds and leaves, hopefully). The high levels of CBD take the edge off of the sativa aspects of this strain, while keeping you alert and lifted.

For some new or returning cannabis users, high levels of THC can be too much, prompting an anxious paranoia. Since most cannabis is bred to express higher levels of THC, the plants drive down CBD production, which can prompt discomfort. Try these high-CBD strains if you’re looking for painkilling or mood-lifting highs that might minimize negative side effects.

CB Dutch Treat Another sativa-dominant hybrid that expresses higher levels of CBD, this one has a musky, peppery bouquet and flavor that usually carries more CBD than THC, while still providing enough for an ample high. Do not confuse it with the regular Dutch Treat strain, which boasts THC levels of between 15 and 25 percent. This one produces more of a body high than most sativa-dominant CBD-rich strains that people might find more enjoyable than something like Harlequin.

CBD Somango

A variant of the Somango strain that is bred for closer to a 1:1 ratio of THC and CBD, this gentle indica is an excellent ending to a long, stressful day. Sweeter smelling than most CBD-rich cannabis strains, the original cross is between Jack Herer and two Skunk varieties. While an indica-dominant strain, this one is calming and relaxing without dropping the smoker into a waking coma.

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Pure Love

For a strong indica feeling without a ton of couch-lock, Pure Love might be your best bet. The 2:1 ratio of CBD to THC allows users to be able to test their limits a little bit without making themselves miserable. Since half of this strain is LA Confidential, it does taste and feel more like high-THC cannabis, while the X18 Pure Pakistani side allows the smoker to relax into a good, gentle vibe.

Photos By Phillip Danner

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BY MATT PATTERSON

With cannabis still federally illegal and some states without medical or recreational programs, traveling with your medication can be legally dicey.

M

ost people who travel do not jump in a car and drive to some random destination. They do not go to the airport and look at the departures board and decide on a whim to go to London or Louisville.

There is at least some level of planning involved. Hotel reservations, plane reservations and the best route are just some of the factors that go into preparing to travel. And if you are a medical cannabis patient, there is another layer of complications.

Medical cannabis licenses grant a patient the ability to purchase, possess and use cannabis products in Oklahoma, but when they travel outside the state, that is when things begin to get a little cloudy.

About 2.7 million people board a flight at a U.S. airport each day, according to data from the Federal Aviation Administration. Odds are that at least some of them hold medical cannabis licenses in their state.

And more than likely, some of them transported some form of cannabis with them.

But they’re not supposed to. Some domestic airports ban the use and possession of cannabis products on their premises. And there is also a broad spectrum of municipal laws on

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cannabis possession.

And then there is Transportation Security Administration (TSA). That agency spawned from 9/11 is tasked with making sure American air travel is secure.

TSA’s primary job is to find weapons and explosives that might find their way onto an airliner either carried by a passenger or in their checked luggage. Drugs are a secondary concern.

That doesn’t mean the screener doesn’t see your edibles or plastic canister of flower in your rolling bag as it makes its way through the x-ray machine. It just means they are not specifically looking for it.

“TSA’s screening procedures are focused on security and are designed to detect potential threats to aviation and passengers,” TSA spokeswoman Carrie Harmon said.

“Accordingly, our security officers don’t search for marijuana or cannabis-infused products.”

If a patient is suspected of carrying cannabis products, TSA has a protocol.

“In the event a substance that appears illegal is discovered during security screening, our officers will refer the matter to a law enforcement officer, who then follow their own

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procedures,” Harmon said.

In some cities, that can mean a citation or arrest, depending on municipal code.

Those laws can vary widely. And CBD for your tendonitis? Yeah, that’s not allowed either — mostly.

“Marijuana and certain cannabis-infused products, including some cannabidiol (CBD) oil, remain illegal under federal law, except for products that contain no more than 0.3 percent THC on a dry weight basis or that are approved by the FDA,” Harmon said.

Finding reciprocity

Americans For Safe Access, a national organization that advocates for cannabis policy reform and education, publishes a travel guide for medical cannabis patients on its website. Interim director Debbie Churgai said the confusion for some patients begins when they leave their home state.

Reciprocity is something that would go a long way into helping to make things easier to understand for everyone.

DEBBIE CHURGAI

“If you’re flying anywhere outside of that state, even to another state that has recreational or medical marijuana, it is still technically illegal,” Churgai said. “But the reality is I don’t think most TSA agents or airport personnel are actively searching for this medication. Still, if they find it, there could be some legal consequences, depending on where the patient is. That’s all part of the confusing nature of travel with medical cannabis and why we’ve worked to educate patients on their rights and what they can and can’t do.”

In some cases, patients can go to another state with their own supply and use it. But if they’re driving, they still might wander into unfriendly territory en route to their destination

— in other words, states that don’t have medical or recreational cannabis at all. Only 14 states have reciprocity provisions in their medical cannabis laws, but they vary widely.

In Oklahoma, medical patients from other states can apply for a temporary patient license that allows them to purchase cannabis in state dispensaries. It comes with a $100 fee and is good for 30 days.

Other states like New Hampshire allow license holders from other states to possess cannabis in that state, but it cannot be purchased from a dispensary.

Churgai said more states adding reciprocity provisions into existing medical cannabis laws would make things easier for patients and law enforcement alike.

“There’s probably not much that can be done on the federal level right now, but the states have a role to play,” she said. “One big change would be making reciprocity where patients can travel from state to state. Reciprocity is something that would go a long way into helping to make things easier to understand for everyone.”

Oklahoma NORML state director Norma Sapp uses cannabis medicinally but doesn’t have reservations about traveling from one state to another with it if she is on the road. The skies are another matter.

“I’m not really hesitant to travel with it because I don’t ever carry much with me,” she said. “If I go to Missouri, they have medical marijuana. But I don’t think I would feel comfortable flying with it. Flying to one state where it is legal to one where it is not, there are just too many questions.”

Travel is one reason Sapp and other advocates for medical cannabis in Oklahoma don’t want patients’ names in a database that could be accessible by law enforcement agencies in Oklahoma or elsewhere. If you are in a state that doesn’t have medical cannabis and you get pulled over, it could theoretically lead to unwarranted scrutiny.

“Who wants to end up on the side of a highway in another state with a dog scratching your paint even though you have a license?” she said.

Those who have prescriptions for opioids are able to travel domestically and internationally with their medications. The inconsistency frustrates Sapp.

“You can take your prescription opioids anywhere, and these are things that can kill you,” she said.

“But that’s not the way it is with cannabis. It sucks.”

Churgai said patients having access to their medication when they travel shouldn’t be an issue. If you’re

is booming. With 11 states offering recreational marijuana and an increasing roster of cannabis-friendly destinations outside the United States, those who want to get high on vacation have more options than ever before.

Colorado pioneered cannabis tourism since legalization came to the state in 2012. About 80 million people travel there each year. Of that number, about 15 percent come for a cannabis-specific reason, ac-

trip for a 21-year-old, but has also planned a cannabis-themed vacation for seniors.

“It was a group of four ladies, and I sent them down to Jamaica,” April Black said. “They had all been through various things in life. All of them were widowed. They wanted a giggly girls’ trip, and it was easy for them. All they had to do was get to the airport and look for the sign with their name on it when they got to Jamaica.”

Image Bigstock.com

paying for an expensive vacation and use cannabis to treat your migraines, not having it could ruin your trip. Likewise, business travelers suffer the same fate.

“Many rely on a certain type of medication,” she said. “That’s one reason why patients should be allowed to take the medicine they know and they’re accustomed to using when they travel out of state.

Unfortunately, in a lot of situations, that’s not legal. People find that confusing. There are a lot of mixed messages as far as what’s allowed.”

Cannabis tourism

For those who would rather not research cannabis laws for states and foreign countries, cannabis tourism

cording to data from Colorado Department of Tourism.

In California, travelers can enjoy tasting tours, and in Las Vegas, cannabis-themed amusement park and recreational dispensary Planet 13 opened in 2018.

April Black runs Higher Way Travel with her husband, Bobby. The California-based firm specializes in cannabis-themed travel.

“My typical customer is anyone who wants to go on vacation and use cannabis,” April Black said.

“They want the whole experience.

They want to be wowed and dazzled and be able to smoke.”

The age of that customer can vary.

Black books tours for the younger set, including a recent birthday

Black said Jamaica is popular because it feels far away but is not so exotic that it is intimidating.

“It’s close to the States, so most everyone speaks English,” she said.

“And they take American money. Plus it has reggae music. Even though it’s a tiny island, it has worldwide popularity because people are drawn to the music.”

Black got her start booking trips to the annual High Times Cannabis Cup in Amsterdam.

“It’s changed a lot in a relatively short period of time,” Black said.

“If you’re not someone who wants to figure out a lot of details, having someone who knows the local cannabis scene wherever you go can be a big help when it comes to having

a fun trip.”

Amsterdam is a standby with its array of “coffee shops” that serve up a lot of flower and very little coffee.

Canada legalized cannabis for recreational use in 2018. Today, travelers can book cannabis-friendly trips from companies that have opened over the last year. Cannabis High Tours offers joint-rolling experiences along with cannabis-infused fivecourse meals in Canada.

Jamaica decriminalized cannabis in 2015. Medical patients can purchase it legally with an ID and proof of their medical condition at one of four dispensaries on the island or take their chances on the street. While cannabis is still technically illegal in Jamaica, it is widely available on the black market. Possession in public can result in a fine equal to roughly four U.S. dollars.

In Spain, it is a little more complicated. Tourists can get access to cannabis by joining a cannabis club, but they must have a sponsor. From there, they can enter and make what is considered a donation.

“Spain really has it going on,” Black said. “But the catch is you have to know someone who is already a member. It’s sort of like a pre-screen. We have a guy on the ground who takes people on our trips through that process, which is a lot easier than doing it on your own.”

The Pacific Northwest is also popular, Black said. From Washington to California, cannabis is legal all the way to the U.S.-Mexico border.

“You can do an entire trip driving the coast, hitting legal states all the way down,” she said. “I’ve done several trips that showcase all the cool spots and bud and breakfasts.”

Tours through Higher Way run $1,500-$3,500 and vary by destination. With more states legalizing cannabis and countries taking a fresh look at its status, cannabis tourism continues to be a sought-after experience.

“This business has grown by leaps and bounds in just a short amount of time,” Black said. “I can anticipate it only getting bigger with better and better experiences.”

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list of nutritional powerhouses.

You already know my favorite unknown superfood is cannabis, and I believe it is missing from most peoples’ kitchens. Hemp proteins contain essential omega-3s and in comparison are equivalent or greater than many other commonly agreedupon superfoods. Hemp proteins, hearts and the oils can now be purchased in most grocery stores. The struggle with many of these nutritious hemp ingredients is how to make them a savory part of a flavorful experience. These recipes bring this plant into your kitchen in a few different ways that you can easily incorporate into your regular dishes.

Hemp hearts and

Chef Tony Freitas returns with an infused oatmeal with nuts recipe.

T

here is nothing quite like the bipolar switch in Oklahoma weather this time of year. Wearing shorts for warm fall days can end quickly with these days of bonechilling wind blasts. The best warming fuels for my body are superfoods powered up with my favorite anti-inflammatory herbs sprinkled throughout. Once again, this month, you get three recipes in one with a base of hemp-heart oatmeal topped with spiced “phytonuts” and finished with a special honey I will tell you more about. For the infusion, I chose an unrefined coconut oil paired with a pinene-rich strain of cannabis. If you are not yet familiar with this terpene, it works best for allergies and congestion that can come with this Oklahoma autumn

wind. Cannabis terpenes like pinene work the same way as the aromatherapy benefits of a walk in a pine forest. Just like the benefits of essential oils, cannabis can provide relief for breathing with this amazing part of the plant.

When it comes to “warming superfoods,” there are two aspects we should all consider. The warmth of herbs is something that often gets unnoticed, but if you eat a big dose of the spiced mix with these “phytonuts,” pay attention to how the anti-inflammatory properties can give you a nice boost. To be a considered a superfood, the common consensus is that it must be nutrient-rich with multiple potential health benefits and should help promote overall well-being. Honey, berries, green tea and nuts are commonly considered to be on this

Hemp-heart oatmeal topped with spiced “phytonuts” and special honey. | Photo Alexa Ace

their protein are a big part of why I can honestly say I eat cannabis three to five times a day. The benefits of this protein combined with an anti-inflammatory nutritional plan have been revolutionary for my patient story and getting my body into healing mode. Sometimes the protein powders don’t taste good or mix well, but this recipe should give you a new way to sprinkle it in while packing this dish with amazing flavors. I think it is one of those breakfast meals that can be perfect for the right moment at any time, day or night.

One of my favorite things about

working as a chef in the cannabis industry is all the new treats I get to taste. Some brands represent the green and clean ingredients I prefer, and if foods taste good enough, they get a two-thumbs-up recommendation. Recently, I celebrated with my friends at OK Nice Cream, the original Chef Tony two-thumbs-up pick, as they won a High Times Cannabis Cup for their strawberry fruit bar. I am excited to share with Extract readers another green group that deserves this pick as well. Bee Delightful’s Canna Bees Rescue Blend honey is not only smooth and flavorful on the tongue but also a powerful superfood tag-team. Its campaign is Bee Delightful, and this chef’s secret is that it will make anything taste better and probably even brighten your day with either 250 or 500 mg of CBD in every jar. The flavor of the honey is the perfect sauce to finish this recipe, and it is also a great way to get more daily plant benefits working inside your body.

When I tell fellow Oklahomans what I do and how I eat cannabis multiple times a day, I usually get many interesting reactions and questions. I hear this often: “So, if you eat it three to five times a day, are you high all the time?” I usually explain that all depends on how you define “high.” The short answer is no.

I am definitely not high all the time, and that is not even why I eat it.

I eat green and clean foods as much as possible for energy and focus more than anything. Cannabis has improved my overall health and lifestyle by moving past illness and toward wellness. So, my friends, I challenge you to eat clean with cannabis to discover true wellness with me.

As an educator, consultant and the executive chef at Green & Clean Gourmet Chefs, which offers private chef services, nutritional coaching, catered cooking events and private parties in homes and businesses, Tony Frietas seeks to help people with proper information and forward-thinking solutions when it comes to clean nutritional planning. continued on page 12

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continued from page 10

Ingredients 1 2 1 1

SPICED “PHYTONUTS”

1/2-2 cups Mixed Nuts tablespoons Infused Oils tablespoon Coconut Sugar tablespoon Raw Pure Cane Sugar

1/2 teaspoons Ginger Powder 1 teaspoons Cinnamon 1/2 teaspoons Turmeric 2 tablespoons Honey

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1. Prehea t the oven to 270 degrees Fahrenheit. While decarbing, place the oil in a slow cooker on the warm setting. (I don’t recommend the low setting, as it tends to be too hot and slightly burns the oil and herbs.) Let it warm for 30 minutes before adding the ingredients.

2. In a large bowl, add the nuts and seeds and give them a toss with the infused oil.

3. Sprinkle the spice mixture on top of the nuts and mix until they’re well coa ted. T hen mix the honey in, evenly coa ting the mixture.

4. Transfer the nuts onto a baking sheet lined with parchment paper. Make sure they are on a single layer to ensure they all brown evenly.

5. Bake them for 25-30 minutes with a good stir about halfway through.

* While Supplies Last

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Bee Delightful’s Canna Bees Rescue Blend honey is used to top this hemp oatmeal.| Photo Alexa Ace

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PINENE COCONUT OIL INFUSION Ingredients

16 grams Ground Dried Cannabis with Pinene Terpene or Aroma — split and decarboxyla te only half the herb 32 fl oz Unrefined Coconut Oil small pinch of Cardamom (op tional)

Instructions

1: Decarboxyla te the cannabis flower by hea ting it in the oven, covered, for 30 minutes a t 240 degrees Fahrenheit. I recommend decarbing in a sealed container, and some suggest tha t placing the flower in the freezer after decarboxyla tion for 15-20 minutes might preserve some of the terpenes. T he non-decarbed herb should go directly into the warm oil (keeping it below 155 degrees Fahrenheit throughout) to preserve more of the pinene.

2: While decarbing, place the oil in a slow cooker on the warm setting. (I don’t recommend the low setting, as it tends to be too hot and slightly burns the oil and herbs.) Let it warm for 30 minutes before adding the ingredients.

3: Mix all of the ingredients into the oil and cook them on the warm setting for 2 hours.

4: Strain the herbs from the oil using a cheesecloth. Store the oil in a Mason jar in a cool, dark place. T he oil generally lasts six or more months.

Learn more about his mission on facebook (facebook.com/greenandcleanchefs) and instagram (@greencheftony) or contact him directly at tfreitasok@gmail.com #gogreengetglean

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W W A

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WHAT WE DO MAKES A DIFFERENCE.

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PREMIUM CANNABIS, EDIBLES, CONCENTRATES AND MORE

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Learn about cannabis edibles and how to safely consume them.

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751 Canadian Trails Dr. #120, NORMAN 73072 405.310.2433 COMING SOON!

2223 E. Okla. Ave., GUTHRIE 73044 1327 S. Broadway, EDMOND 73034 1428 W. Britton, OKC 73114

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