A SPONSORED FEATURE BY CANNASPHERE.

CA Saturday, August 25, 2018 1

3 HEXO VP Pierre Killeen explores the

complexities of a social transformation 4 Kevin O’Leary offers valuable insights
to investors 6 CFAMM president James O’Hara on
legislation for medical cannabis patients

Cannabis Report
Like the hexagonal structure of cannabinol itself, our nation’s
emerging cannabis industry is multifaceted. In this special
feature, we hear from industry experts on topics ranging
from economics and social dynamics to growing investment
opportunities related to Canada’s emerging cash crop.

INNOVA

WORKFORCE
SOCIAL
TION

LEADERSHIP

PATIENT TING
ACCESS

Opening Legislation
adult-use Product change paving Understanding Canada’s older
The march market raising innovation the way for risks and population
from questions responding harm reduction, timing key for looking for
legalization for medical to emerging innovation Staff shortages, investing in alternative pain
towards cannabis market and wealth competition for innovative and management
normalization patients opportunities generation talent ahead exciting sector solutions
Pg. 3 Pg. 6 Pg. 4 Pg. 1 Pg. 6 Pg. 4 Pg. 8

OPINION

Canada leading an industry with enormous

potential for creating wealth and knowledge
While we made dominant centre of a new industry;
one that will create wealth while also
this choice together expanding knowledge around how
cannabis can improve human health.
through a beautiful While we made this choice togeth-
er through a beautiful expression of
expression of democracy, we must acknowledge the
By Allan Rewak, innovators, pioneers and policy-mak-
democracy, we must ers who gave us the ability to make it.
Executive Director,
acknowledge the Firstly, we must recognize and
needed to be found.
Thirdly, we must recognize the
innovators who had the foresight and
courage to listen to the government’s
call and take the risks necessary to
secure the capital and investment
to build up the emergent Canadian
cannabis sector.
Together, these three forces have
begun the process of harm reduction,
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Cannabis Council of Canada applaud the patients, who experi- innovation and wealth generation that
innovators, pioneers enced the real and tangible benefits will profoundly change Canada for the

O
n October 17, 2018, a
failed prohibition will end,
and Canada will become
the first G7 country to
choose to regulate cannabis in a
better way.
By making this choice, we will
serve to keep product away from kids,
profits away from organized crime and
will create an entirely new industry
that will generate sustainable jobs and
opportunity for countless Canadians.
Moreover, this choice will firmly
establish our country as the globally
of medicinal cannabis and fought
and policy-makers through the courts to rightfully and
legally access it.
who gave us the Secondly, we must recognize and
ability to make it. applaud our Prime Minister, Justin
Trudeau, for being brave enough to
recognize that with 20 per cent of our
population consuming cannabis in
some way, shape or form, a better way
This sponsored feature
produced by CANNASPHERE ca
better; and make no mistake, this pro-
cess of improvement has just begun.
In about a year, the Canadian canna-
bis economy will exponentially speed
up with the introduction of edibles
and concentrates. When this occurs,
licensed producers will directly and
through partnerships bring to market
Canada leading ... Page 2
2 Saturday, August 25, 2018 A SPONSORED FEATURE BY CANNASPHERE.CA Cannabis Report

By the numbers
THE MARKET THE LAW
ABOUT

4.9M
*
$81M
IN FEDERAL FUNDING CAN BE ACCESSED BY PROVINCES AND TERRITORIES
CANADIANS USED CANNABIS AND CONSUMED OVER THE NEXT FIVE YEARS FOR LAW ENFORCEMENT TRAINING TO HELP
MORE THAN 20 GRAMS OF MARIJUANA PER PERSON WITH THE TRANSITION TO CANNABIS LEGALIZATION
IN 2017, SPENDING A TOTAL (Public Safety Canada announcement, September 2017)

$5.6B
*

ON THE PRODUCT ACCORDING TO THE NEW CANNABIS ACT,

THERE WILL BE AN EXCISE TAX OF:

LEGAL CANNABIS SALES COULD REACH

$1 PER GRAM
OR 10% OF THE RETAIL PRICE, WHICHEVER IS GREATER

$6.5B
†

BY 2020, ACCORDING TO AN ESTIMATE FROM CIBC PROVINCES WILL TAKE

ANALYSTS, WHO PREDICTED CANNABIS SALES COULD
TOP SALES OF SPIRITS, WITH THE POTENTIAL TO YIELD
75%
$1B
†
OF THE REVENUE, AND THE FEDERAL GOVERNMENT WILL REAP

IN EBITDA EARNINGS BEFORE INTEREST, TAXES,

DEPRECIATION, AND AMORTIZATION 25%
OF THE PROFIT FROM THIS TAX. OTTAWA’S PIECE OF THE PIE WILL NOT
EXCEED $100 MILLION FOR THE FIRST TWO YEARS OF LEGALIZATION

63%
††

CANADIAN ADULTS WILL BE ALLOWED TO CARRY UP TO

OF CURRENT CANNABIS USERS IN CANADA PLAN TO
MAKE PURCHASES AT LEGAL RETAILERS, ACCORDING TO
A SURVEY THAT POLLED 1,500 CANADIANS.
BY THE SURVEY’S ESTIMATES, THE LEGAL CANNABIS MARKET
30 GRAMS
OF DRIED CANNABIS IN PUBLIC AND HAVE A MAXIMUM OF FOUR
COULD GENERATE HOMEGROWN MARIJUANA PLANTS PER HOUSEHOLD

$4.3B
††

IN SALES NEXT YEAR

(Legalized Cannabis: Fiscal Considerations)
NUMBER OF LICENSED FACILITIES IN CANADA**
June 2018

CANADIANS AGED 15 AND OVER WILL CONSUME

0
734 METRIC Y.T.
0
N.W.T. 0 0
TONNES
OF CANNABIS BY 2021, WHICH COULD GENERATE UPWARD OF
24 7
Nvt.
N.L.

4 2 60 8
B.C.

$618M
IN TAX REVENUE, ACCORDING TO A 2016 REPORT FROM
Alta.

Sask.
Man.
Ont. Que.
1
P.E.I.
THE PARLIAMENTARY BUDGET OFFICER
CANNABIS USERS WOULD
BE WILLING TO PAY
3 3
N.B.
USE BY PROVINCE * N.S.

$8.98
††
Percentage of Canadians 15 years and older who have
consumed cannabis in the past three months. Provincial rates
PER GRAM THROUGH LEGAL CHANNELS.
are not statistically different than the national rate.
THE CURRENT AVERAGE PRICE PER GRAM IN THE ILLEGAL MARKET IS

$8.24
††

14% PER GRAM

17%17%
National
16%
N.L.

15% 17% 14% 10%

B.C. WILL CANADIANS CHANGE THEIR BEHAVIOUR ONCE CANNABIS IS LEGALIZED?*
Alta.

Sask.
Man.
Ont.
Que.
14% 21% 24% 50%
P.E.I.

14% 20%
N.B.
MIGHT TRY OR
INCREASE
MIGHT TRY USERS MAY PURCHASE
N.S. NEW FROM ANOTHER
CONSUMPTION PRODUCTS SOURCE

*Statistics Canada, 2018 National Cannabis Survey; **Health Canada, Access to Cannabis for Medical Purposes Regulations (ACMPR); †CIBC 2018 analysis, Cannabis: Almost Showtime;
††Deloitte 2018 cannabis report, A society in transition, an industry ready to bloom

FROM PAGE 1

Canada leading cannabis industry: Consumers

migrating to a legal marketplace
an entirely new legal product category Once we have allowed
for adult recreational consumers:
one that I believe will be immensely for the legal industry to
successful.
This is partially due to the fact that take root and those roots
while these products (and cannabis
in general) are not entirely risk free, have become strong, we
they carry far less harm than alcohol will ensure that in this
or tobacco, which, unlike cannabis, are
listed as group 1 carcinogens accord- country, it will be difficult
ing to the International Agency for
Research on Cancer (IARC). for kids to get their hands
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However, as we harness the poten-

tial of a legal adult-use marketplace,
which is estimated to be worth up to
$9 billion annually in Canada; or the
global medical market, which is esti-
mated to be worth up to $75 billion
per year by 2025, we must retain a
laser-like focus on our primary goal –
keeping cannabis away from kids and
profits away from organized crime.
Key to this will be the migration of
illicit consumers to the legal market-
place, because, simply put, it’s crimi-
nals who are putting cannabis in the
hands of kids today. Replacing these
elements in the supply chain will take
on cannabis, we will
have dealt a crushing
Behind legalization of marijuana were the patients, who fought through the
blow to organized crime, courts to rightfully access it; the Trudeau government, which pressed for
change; and innovators and investors, who took the necessary risks to build
and we will have created up the emergent Canadian cannabis sector. ISTOCK.COM
sustainable wealth for time, but the Canadian cannabis sector organized crime, and we will have
is up to the challenge. created sustainable wealth for our
our citizens. Once we have allowed for the legal citizens.
industry to take root and those roots We still have a long way to go, but
have become strong, we will ensure we will get there in the best traditions
that in this country, it will be difficult of Canada; by working together as
for kids to get their hands on cannabis, partners in the spirit of compassion
we will have dealt a crushing blow to and collaboration. n
Cannabis Report A SPONSORED FEATURE BY CANNASPHERE.CA Saturday, August 25, 2018 3

NORMALIZATION

Transforming a culture: SOCIAL

TION

from prohibition to acceptance

A
s of October, legal cannabis Société des alcools du Québec, must
will become part of the Ca- meet stringent safety and quality
nadian landscape. The way assurance standards.
you feel about the shift, of Similarly, dosage is currently a
course, depends on your perspective wild card that can range from “Is this
– consumers, investors, law enforce- oregano?” to off the charts. New stan-
ment and health professionals are all dards mean this will change, allowing
engaging in animated conversations ...we’re consumers to manage intake respon-

“
about the new normal. sibly, in the same way that alcohol
Yet, according to Pierre Killeen, making it comparison charts alert consumers
the vice-president of government to the difference between a glass of
relations at HEXO (formerly The Hy- possible for light beer and a glass of tequila.
dropothecary Corporation), there are Just as importantly, he says,
important issues that are still largely the 15 per cent or so of legalization will change the culture
overlooked in the public discussion. Canadian adults who of prohibition and consumption.
For example, he says, the health “Most people think that cannabis
and safety benefits of a legalized can- say they use cannabis to is smoked. That is yesterday’s illicit
nabis regulatory framework cannot market. We have a whole industry HEXO’s facilities in Gatineau,
be overstated. Today, the majority of move away from the risks focused on a future where it is con- Quebec. SUPPLIED
people using cannabis are in the dark sumed through other non-smoking
about the nature of the products associated with smoking.” means, such as sprays, edibles and Canada that need new industry the
they’re putting in their bodies. But beverages. From a public health most: small, rural communities such
products to be sold through outlets, Pierre Killeen, perspective, we’re making it possible as Masson-Angers in rural Gatineau,
such as those of the British Colum- Vice president of government relations for the 15 per cent or so of Canadian Quebec, where HEXO, a licensed pro-
bia Liquor Distribution Branch and at HEXO adults who say they use cannabis to ducer listed under Canada’s MMPR
move away from the risks associated framework, is located. “Our growth
with smoking.” rate is so steep that whenever I tour
On a societal level, tax revenue will someone from the media around one
LEADERSHIP have a profound impact on public of our facilities in Masson-Angers,
service budgets. While the cost of they comment on the fact that we
preparing police forces to identify have so many young people work-
Women entrepreneurs a force in a cannabis-impaired drivers has been ing – chemists, accountants, lawyers,
the focus of much media attention, project managers and engineers,”
growing industry overlooked is the $300 million in reports Killeen.
tax revenue generated by cannabis Meeting the challenges inherent in
Master Grower Agnes Kwasniewska oversees all aspects of plant production and sales in Washington state last year a successful transition from prohibi-
greenhouse operations at HEXO including strain selection, seed germination, alone. “At a time when provincial tion to legalization at this magnitude
nourishment, lighting, ventilation and cultivation. She’s in charge of the governments across the country requires extensive public education,
company’s number one aim: producing the highest-quality cannabis, with are challenged to provide health he says. “Legalization is not the same
uncompromising standards. care and other services to an aging as social acceptance. We wouldn’t
As a woman leading the cannabis industry forward, she is far from alone. In population, this is an important new be having these conversations if
April, HEXO hosted the keynote event at Women Grow Toronto, which attracted source of revenue,” says Killeen. it weren’t for courageous medical
more than 200 female entrepreneurs. Keynote speaker Arlene Dickinson shared Further, while more recent figures patients who went to the courts for
lessons from her entrepreneurial journey as well as her insights into the future of are unavailable, the 2002 Report of their right to consume cannabis free
the cannabis industry in Canada. the Senate Special Committee on of criminal sanction, and a prime
HEXO was also a key partner of the 2018 Businesswomen of the Year Awards, Illegal Drugs stated that the annual minister and political party that
as well as the annual Riverkeepers Gala in support of sustainable environmental cost of drug enforcement in Canada fulfilled a campaign promise.
initiatives around our waterways. was estimated to be between $700 “For the Canadian cannabis indus-
Noting the leadership roles that women play at HEXO – including on the million and $1 billion. (In 1999, 43 per try and for Canadians, October 2018
board – vice-president of sales Sonia Isabel says, “We believe in paying it forward. cent of drug-related charges were for is not the end of our journey. Rather,
It’s always inspiring to see so many women come together to develop this new possession of cannabis.) it marks the next stage in the transi-
industry.” Economically, the legalization of tion to the cannabis economy – that
cannabis will benefit many parts of of normalization,” Killeen says. n

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4 Saturday, August 25, 2018
INTERVIEW
Emerging technology putting Canadian
cannabis industry at the forefront
Canadian entrepreneur, financier,
author and television personality
Kevin O’Leary is well known to
Canadians through his appearances
on Dragons’ Den, Redemption Inc.
and four-time Emmy winner Shark
Tank. In his keynote presentation
at this year’s GrowUp conference,
he’ll draw on his experiences to
offer insights to Canadian cannabis
investors and entrepreneurs.
Can you please share some tips for
people who are already investing in
the cannabis industry, or who plan
to invest? Are there any red flags to
watch for?
Don’t bet on one company. You need
diversification.
Number one, are you investing in
a low-cost provider? Number two,
does the company have any brand
protection? Number three, and this
really matters: there is a tremendous
number of people coming into the
industry who have no experience on
the logistics of growing or distributing
marijuana. They will likely all fail. There
is lots of weak management involved
in this space. I would say that only
about 20 per cent of the management
in this sector has the skillsets to sur-
vive long-term.
The risk with larger, more liquid
companies is that valuations are
extremely high. With startups, you
have the survival issue. But I would
add that I’ve often looked with envy
at this space because I would love to
invest. I’ve been told multiple times
by the lawyers who issue my securities
in jurisdictions around the world to
stay away from this sector because of
the U.S. regulatory issues. But if I were
able to, I would have at least 10 posi-
tions, three in startups and seven in
investment-grade public companies.
That would be my portfolio position,
and it is one that makes a lot of sense
for others to think about.
Ready for ‘Cannabis 2.0’ with proven approach,
partnerships and innovation
I
n this dynamic time, with
frequent announcements of
new players coming online and
established companies pursuing
expansion plans, how do Canada’s
licensed cannabis producers stay
ahead of the curve? For Brad Rogers,
president of CannTrust, the motto is:
“Go where the puck is headed, not
where it’s been.”
This approach – enhanced by
CannTrust’s capacity for research and
innovation – has served the company
well. “Like any industry, innovation
is the key to success in the cannabis
business,” Rogers says. “Those who
really understand the opportunities in
this space are the ones who are well
down the path to developing the next
generation of products.”
CannTrust grows its standardized
cannabis at its Ontario facilities. The
unique perpetual harvest technolo-
gy used in the 450,000-square-feet
advanced greenhouse in Niagara
allows CannTrust to produce grade A
dried flower more efficiently than it
did in the indoor hydroponic facility in
Vaughan (60,000 square feet), which
is now a manufacturing centre of
excellence.
“We started as Canada’s only
pharmacist-founded medical cannabis
producer. For us, quality, consistency
and low cost have been the hallmarks
of participation in this market,” says
Rogers.
Having been licensed by Health
Canada to produce medical cannabis
since 2014, CannTrust established a
reputation for rigidly standardized
products, which inspired trust from
the medical community, believes
Rogers. “We have a label claim on
every single product that we provide
to our customer base. Doctors know
and trust that, because they can dose,
titrate and gauge efficacy,” he says.
Having a standardized label claim
changed the conversation with doc-
tors considerably, Rogers says, adding
that the number of customers on the
medical side is currently 46,000 and
is expected to grow to 100,000 by the
end of 2018.
This position has allowed CannTrust
to focus on research and innovation,
including the development of a broad
range of products, from extracts to
A SPONSORED FEATURE BY CANNASPHERE.CA
Investors need to balance the extremely high valuation of larger, more liquid companies against the survival issues
of startups, says Kevin O’Leary. SUPPLIED
From an investment perspective,
what do you see as the current
outlook for the Canadian cannabis
industry?
I think the industry is going to go
through a consolidation soon. There
are still a lot of entrants coming in,
but over the next two years, we will
begin to see the bigger players start
to acquire the smaller ones that
look like they will survive. There is a
tremendous amount of excitement as
we move through the legalization pro-
cess, but in the end, low-cost provid-
ers survive. Companies that are able
to build brand survive. Everybody else
goes out of business or gets acquired.
We’ll see this playing out over the next
three years.
In your view, what are the main
challenges for investors in the
sector today?
Institutional money is not yet in
the cannabis industry for one main
reason: cannabis is a “Schedule 1
Controlled Substance” according to
U.S. federal law, so in Canada, we have
only a couple of institutions that have
VATION
The unique perpetual harvest technology used in the 450,000-square-feet
advanced greenhouse in Niagara allows CannTrust to efficiently produce
grade A dried flower. SUPPLIED
dried flower. One innovation of note
is the market’s only vegan hard shell
capsule. Rogers says this product
resonates with practitioners and con-
sumers who prefer it to gelatin-based
capsules, which are made from animal
byproducts.
Other developments are coming
out of CannTrust’s partnership with
Apotex, Canada’s largest generic
drug manufacturer. Examples are
enteric-coated time-release tablets,
fast-acting sublingual variations and
sprays.
CannTrust is also looking forward to
2019 and beyond, having perfected
nanotechnology that reduces particle
size, enabling easy mixing of CBD/THC
in liquids. Once legalized, CannTrust
will be able to leverage this technol-
ogy in everything from beverages
and edibles to health and beauty
products.
made the plunge.
The Canadian cannabis industry is
in a marvellous place – all of the tech-
nology they’re developing, and all the
skillsets they’re creating, puts them at
the forefront of the sector.
However, in terms of U.S. and global
institutional investment, it may one
day be compliant, but it isn’t now. For
Canadian investors, it’s important to
understand the risks and timing.
What needs to change in order to
unleash the sector’s potential for
investors?
I’ve talked to multiple sovereign
funds about what they want in terms
of investing in cannabis and they all
said the same thing. They would like
to see U.S. regulators make medic-
inal cannabis and derivatives legal.
There are a lot of reasons to think that
will happen first, so that medicinal
cannabis would become a controlled
but legal substance in the U.S. If that
were to happen, hundreds of billions
of institutional investment dollars
would be freed up. That’s where the
big opportunity is.
Forging strong international
ventures, CannTrust recently
completed a partnership agreement
with Danish LP Stenocare with the plan
to develop and build a full cultivation
and production facility. In addition,
CannTrust is shipping to Australia and
establishing distribution partnerships
in several other countries.
Since the cannabis market
worldwide is estimated to be up to
$180 billion, Rogers believes that
this is a market opportunity with
lots of room to grow for companies
with the right people, processes and
technologies.
Building on its well-entrenched
medical approach to product
development, a rapidly growing
customer base and a creative eye for
soon-to-be important markets in the
cannabis space, CannTrust is ready for
October 17. n
Cannabis Report
My message to the industry is to start
thinking about a way to bifurcate into
two parts: recreational for those states
and provinces where cannabis is legal,
and medicinal for those regions where it
isn’t and for global investors.
Do you believe that companies with a
strong focus on organics, for example
The Green Organic Dutchmen, and
CSR have an edge in this competitive
market?
As in the food industry, to a certain
extent, “organic” is marketing. The
regulatory environment for growing
marijuana legally already addresses the
quality concerns, so organic and CSR
become part of a company’s branding.
We certainly see it with alcohol – with
any commodity.
Niche things that people associate
with a brand because it has a cool mod-
el or mandate will work on a regional
basis. There may be brands in one
province or one state with which people
become comfortable, but those compa-
nies will eventually be consolidated into
a larger company. It’s very much like the
craft beer space in that respect. n
LEADERSHIP
Exploring solutions
for Canada’s
companion animals
An important area of cannabis
product development is veterinary
medicine. While veterinary cannabis
use is currently not approved by
Health Canada, there is wide interest
from pet owners and veterinarians
to accelerate the research and
development of cannabis-based
treatments.
Canadian pet owners spend
around $7 billion annually on their
companions. In recognition of this
significant opportunity, CannTrust
has partnered with Grey Wolf Animal
Health, a private Canadian-based
animal health care company, to
develop products for the therapeutic
cannabis market.
“It’s a really exciting opportunity
because it allows us to work
with CannTrust’s technical and
development teams to continue to
grow our product line for Canadian
veterinarians,” says Dr. Ian Sandler,
CEO of GreyWolf Animal Health.
“Cannabis-based products will allow
veterinarians to access another
therapeutic tool to address health
issues that we face every day in
clinical practice.
“People love their pets,” he
says. “With 16 million companion
animals in Canada, this represents
a significant opportunity for us to
collaborate with CannTrust to lead
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the way in education, research and
product development.”
ISTOCK.COM
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6 Saturday, August 25, 2018
OPINION
Opening of adult-use market raising
questions for medical cannabis patients
By James O’Hara, President and
CEO of Canadians for Fair Access to
Medical Marijuana (CFAMM)
C
annabis has increasingly
come into the national
spotlight over the past few
years, and the opening of
the Canadian adult-use market on
October 17, 2018, raises questions for
patients using medical cannabis. How
will the changes affect them? Will the
new Cannabis Act impact their access
to and use of cannabis?
Canadians for Fair Access to Medical
Marijuana (CFAMM), Canada’s pa-
tient-run medical cannabis advocacy
organization founded by Jonathan
Zaid in 2014, has been working hard
on behalf of Canadian medical canna-
bis patients to ensure they have safe,
affordable and reliable access to their
medicine.
Each province is responsible for
adult-use distribution in its respective
jurisdiction, yet medical cannabis ac-
cess remains a federal program that is
administered by Health Canada. What
will be different is that the existing
legislation will be integrated into the
new Cannabis Act.
While this won’t have a major effect
on how patients access their medi-
cine, it does mean that medical canna-
bis patients are required to adhere to
all of the same rules as recreational us-
ers, unless otherwise exempted by the
Act. Patients will still need to check
with their province to find out where
they are permitted to use cannabis in
public. In the Province of Ontario, for
instance, medical cannabis patients
are permitted to consume cannabis
in public, except where smoking is
prohibited and subject to the rights of
private property owners. In Manitoba,
however, all cannabis use in public –
whether for medical purposes or not
– is currently prohibited.
While the new drug-impaired
driving laws did not receive as much
public scrutiny as the Cannabis Act
OPINION
Cannabis industry facing shortage of staff,
competition for talent
By Brian Wagner,
CEO and Founder of Cannabis
Compliance Inc.
C
annabis has gained signifi-
cant attention in the media
since Trudeau announced a
path to legalization. Neigh-
bours trade stock tips. Businesses are
being bought and sold. And it seems
every month, a new country announc-
es plans for legalizing cannabis. But
there’s a serious challenge emerging
in the industry that isn’t being talked
about.
The cannabis challenge is about
supply and demand, but not about
the actual product. It’s about people
– the talented and trained individuals
who are in short supply, but who are
desperately needed by emerging
cannabis companies.
It’s a challenge with parallels in
many booming sectors; for example,
the artificial intelligence industry,
which, similar to cannabis, is growing
extremely fast. The challenge for start-
up AI businesses isn’t about sourcing
office space or hardware – it’s about
people. How many people have
experience in AI? Naturally, new hires
can be trained if they have a founda-
tion of relevant skills, but the staffing
pressure is very real.
Imagine an AI tech company that
suddenly wins a large contract and
needs to hire an additional 50 techni-
cal staff – and imagine they need to
fill these roles quickly (say, within 60
days). Also imagine there are a thou-
sand other AI firms experiencing the
same problem. There is a very finite
number of qualified people to choose
from. This what is happening in the
cannabis industry right now.
The cannabis challenge is a “com-
petition for talent” that is silently
paralyzing the emerging industry.
Our company is focused on compli-
ance, education and recruitment, and
we’ve seen it all. A cannabis compa-
A SPONSORED FEATURE BY CANNASPHERE.CA
Where does the Cannabis Act leave medical cannabis patients, who depend
on affordable access? CFAMM president and CEO James O’Hara, a patient
himself, aims to ensure the rights of patients are heard at all government
levels. SUPPLIED
From October 17, 2018,
patients will be able to
connect with the newly
created Office of Medical
Access to easily transfer
their documents between
providers. This is a
welcome change for many
patients with complex
needs, allowing for greater
product choice and better
customer service.
ny’s success hinges on the people it
can attract. We have audited many
licensed producers and seen long lists
of production issues. In our experi-
ence, it ultimately comes down to the
training and qualifications of staff.
Right now, there are some 115
authorized licensed producers in Can-
ada, with another 400+ awaiting ap-
proval from Health Canada. But if we
extrapolate the number of producers
in established markets like Colorado
and Washington, Canada could have
as many as 7,000 licensed producers
within five to 10 years. If this happens
over 10 years, this is an average of two
producers getting licensed every day
of the year. There is nowhere near a
supply of talent to meet this demand.
Add to that new opportunities in
edibles and also international export
potential – and 7,000 might be a con-
servative number.
I often hear the sentiment, “How
hard can it be to grow weed?” In a
way, it isn’t hard at all. But to cultivate
high-quality cannabis, on a commer-
cial scale, with minimal pesticide use,
in the wonderful country of Canada
– that is very hard indeed. Growers
with a commercial horticulture back-
ground are certainly well prepared to
transition into the cannabis industry,
but there is still a strong learning
curve specific to cannabis. And when
every licensed producer is in a race to
the finish line, every top grower has
already been spoken for. It is virtually
impossible now to find a talented
head grower with licensed producer
experience.
The cannabis challenge will not be
resolved in the short term. A Canadi-
an cannabis industry with mistakes
and high staff turnover seems likely.
The best talent will be poached (and
poached again). Education and train-
ing programs are also slow to arrive,
and most are very theoretical rather
than practical. At Cannabis Compli-
ance Inc. (CCI), we offer courses that
are virtual and competency-based,
but we can only train so many
students at a time. With traditional
academic institutions being slow to
build capacity, the industry will have
few options to choose from.
From a recruitment standpoint,
this poses a serious challenge for new
itself, they carry potentially serious
implications for CFAMM members.
They impose severe penalties for
cannabis-impaired driving, including
the possibility of five-year jail terms
for repeat severe violations. Creating
new categories for cannabis-impaired
drivers, these laws set per se limits
on the amount of THC allowed in the
blood at any given time.
The problem for medical cannabis
patients is that the range of enforced
limits doesn’t correlate to actual
impairment. Available science tells us
that many of Canada’s 300,000 medi-
cal cannabis patients may frequently
be over the upper limit of 5ng/THC/
ml, even though they may not have
consumed cannabis within the last
12 hours, much less over the lower
limit of 2ng/THC/ml (according to
the Canadian Association of Forensic
Scientists, 2017). This is primarily be-
cause THC is processed differently in
the body than alcohol and can remain
in residual amounts long after any
impairment has passed.
CFAMM invites comments from pa-
tients across the country on how this
W
The emerging cannabis industry is facing a challenge with parallels in many
booming sectors: to find the talented and trained individuals it needs for
its projected growth. ISTOCK.COM
...when every licensed
producer is in a race to
the finish line, every top
grower has already been
spoken for. It is virtually
impossible now to find
a talented head grower
with licensed producer
experience.
Cannabis Report
regulatory change has affected them.
One advantage coming out of the
new Cannabis Act is that patients
will be able to take their medical
document to any licensed producer
of their choice, rather than having to
provide a separate medical document
from a physician to each producer.
From October 17, 2018, patients will
be able to connect with the newly
created Office of Medical Access
to easily transfer their documents
between providers. This is a wel-
come change for many patients with
complex needs, allowing for greater
product choice and better customer
service.
In 2017 and 2018, CFAMM has been
especially vocal about the sin tax
levied by the federal government. The
introduction of excise taxes on med-
ical cannabis by Finance Minister Bill
Morneau makes cannabis currently
the only medicine facing provincial
and federal sales taxes. The stated
purpose of the 10 per cent levy on
oils and $1-per-gram tax on dry flow-
er – which apply equally to medical
and recreational cannabis – was to
discourage people from applying to
and making use of Canada’s exist-
ing medical cannabis system. Not
only does this perspective dismiss
the legitimate medical concerns of
thousands of Canadians, it further
penalizes existing patients, many of
whom are chronically disabled and
unable to afford the already high cost
of cannabis.
While we are excited about the
opening of the Canadian adult-use
market in October, CFAMM will contin-
ue to advocate on behalf of patients
with both public and private insur-
ance companies and fulfill its respon-
sibility to educate Canadians on the
concerns of medical cannabis patients
as distinct from recreational users.
It will be important, now more than
ever, that the concerns of patients
remain a priority for both government
and industry. For many patients, their
quality of life depends on it. n
cannabis companies. Even if they are
well funded, many new producers are
geographically remote and have a lim-
ited local talent to choose from. The
land may be cheaper, but the labour
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pool simply isn’t there. If a labour pool
is filtered by qualifications, availabili-
ty, personality and a criminal record,
the list is even smaller. For our own
recruiting services, we now have to
search for international candidates for
Canadian producers.
In a way, this challenge is a good
one to have, because it can mean jobs
and economic stimulation. But it’s still
a challenge, and a serious one with
indications that it will get worse in the
years ahead. Canada is charged with
narrowing the gap so that cannabis
companies don’t sit in empty facilities
with no one to run them. n
 The Green Organic Dutchman is building
the world’s largest premium organic cannabis brand.
The company has successfully raised over $350 million to date and
has a fully funded annual capacity of 170,000 kgs of cannabis.
With operations across Canada, Central America and Europe,
TGOD is quickly becoming a leader in the global cannabis market.
TSX: TGOD
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8 Saturday, August 25, 2018 A SPONSORED FEATURE BY CANNASPHERE.CA Cannabis Report

OPINION

All the buzz about medical cannabis

education and seniors’ health
By Catherine Flaman, Clinical
Education team lead at WeedMD

W
hen 90-year-old Wendy
Thorburn got the news
that her 60-year-old
daughter needed hip
surgery, she knew it was going to be a
tough and painful recovery. Together,
they started researching alternative
solutions for easing some of the
known side effects and symptoms
associated with the surgery and con-
ventional treatments protocols.
To their surprise, one of the doctors
consulted suggested they look at med-
ical cannabis as an alternative solution.
“I’d never used recreational drugs
growing up, and never in my wildest
dreams did I think I’d be advocating
for the use of cannabis for my loved
ones, friends or myself,” said Thorburn,
the vice president of the Residents’
Council at Arbour Heights Long-Term
Care Residence, who up to then
viewed cannabis as a recreational
drug. “But the more I learned about it,
I came to realize that Canada is at the
forefront of innovating cannabis use –
and it’s not about smoking – many of
us are interested in cannabis oils.”
While Thorburn is not a medical
cannabis patient, she is a staunch
advocate for her peers. She says it
comes down to education, open dia- Wendy Thorburn, vice-president of the Residents’ Council at Arbour Heights Long-Term Care Residence, previously
logue and an open mind to exploring viewed cannabis as a recreational drug but says she is keeping an open mind about its medical use. SUPPLIED
alternative therapy options that may
be available for seniors dealing with specifics of the medical success stories interest in the seniors’ demographic, patients and their families to ensure
health challenges. is the speed at which society’s attitude having formed partnerships with over that cannabis is being incorporated
According to Statistics Canada, towards medical cannabis is changing 30 long-term care and retirement safely and responsibly into the care
seniors are the largest growing de- from caution and reluctance, to curi- homes, including Thorburn’s com- plan of interested patients.” n
mographic group in Canada, and it’s osity and acceptance,” said Dr. Vander- munity residence. The company also
precisely this peer group that is the zwan. “One of the more surprising partnered recently with Shoppers Catherine Flaman leads the Clinical
most curious. changes I’ve observed recently in this Drug Mart, a leading provider of phar- Education team at WeedMD alongside
Dr. Jonas Vanderzwan, a prima- regard is the level of enthusiasm for macy products and services, to supply Dr. Jonas Vanderzwan, who is WeedMD’s
ry care physician for more than 15 medical cannabis that is coming from cannabis strains directed at seniors’ Medical Director and Chair of its
years and now the medical director the seniors’ community – much more and women’s health. Medical Advisory Committee. To learn
at WeedMD, has been practising accepting when they learn about the Dr. Vanderzwan agrees that educa- more about medicinal cannabis oils
cannabis medicine since 2014, having alternative consumption methods tion is an important and a vital part of and WeedMD’s diverse product lines
assessed and treated some 1,200 pa- such as vapourizing or the availability the company’s platform: “Our clinical including AXIS™ and ENTOURAGE™, visit
tients with medical cannabis. “What’s of an edible oil form.” team works within the seniors’ net- www.weedmd.com or contact our client
perhaps more fascinating than the WeedMD has taken a special work to educate health care providers, services team at 1-844-WEEDMD-6.

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