Cannabis News

Cannabis Investment and the NBA

Published

1 year ago

July 11, 2023

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In case you missed it, professional players on teams in the National Basketball Association are getting a free and clear opportunity to take advantage of the cannabis industry through cannabis investments. As a former D-1 college athlete, I’m glad to see the NBA not only remove cannabis from its list of banned substances but also allow its players to get some of the upside from this (still) burgeoning industry. At the beginning of this month, the long form collective bargaining agreement (the “Agreement”) between the National Basketball Players Association (“Players Association”) and the NBA went into effect, and it will last for seven years. Here’s a copy of that agreement. Among the 600 plus pages of the Agreement is the entree for players to finally be able to invest in the cannabis industry, which is a major boon for cannabis investments.

Cannabis investment and NBA players

Section 20 of the Agreement lays out the do’s and don’ts of cannabis investments for the players:

. . . a player may hold a direct or indirect ownership interest (whether controlling or non-controlling) in an entity that produces or sells CBD Products, provided that (A) such entity does not also produce or sell one or more products containing any Prohibited Substance or any other Schedule I or II substance under the Controlled Substances Act, and (B) such interest is held, and such entity operates, in compliance with all applicable laws and regulations.

The Agreement goes on to state that:

. . . a player may hold a direct or indirect ownership interest in a Marijuana Company, provided that: (A) Such interest is passive (i.e., includes no management, governance, voting, or executive role or other operational rights or roles); and (B) The player’s ownership interest is equal to less than a fifty percent (50%) beneficial interest in any class of securities (or other class of ownership interests) in such Marijuana Company (including via a partnership interest in a fund that owns an interest in such Marijuana Company); and (C) Such interest is held, and such entity operates, in compliance with all applicable laws and regulations . . . no player may hold any ownership interest (whether direct or indirect, including via a partnership interest in a fund) in an entity that produces or sells any products containing any Prohibited Substance or any other Schedule I or II substance under the Controlled Substances Act.

The fine print is mostly in the definitions

The Agreement defines key terms a follows:

“CBD” means “hemp-derived compounds that have a concentration of tetrahydrocannabinol (‘THC’) at or below 0.3% and contain no other form or amount of cannabis.”
“CBD Products” means “supplements and other products containing CBD as an ingredient (e.g., oils, creams, drinks, pills, powders, and roll-ons), but does not mean products that meet the definition of ‘Marijuana Products’ . . . or products containing any substance on the list of Prohibited Substances . . . or on Schedule I or II of the Controlled Substances Act.” Note that the list of “Prohibited Substances” is at Exhibit I-2 of the Agreement.
“Marijuana Products” means “supplements and other products (e.g., flower, oils, creams, drinks, pills, powders, and roll-ons) containing (A) a non-CBD form of cannabis as an ingredient, and/or (B) a concentration of THC above 0.3%. . . any products containing both CBD and a non-CBD form of cannabis, and any products containing kratom, shall be Marijuana Products.”
“Marijuana Company” means “an entity that (A) produces or sells one or more Marijuana Products, including an entity that produces or sells both CBD Products and one or more Marijuana Products, and/or (B) produces or sells CBD Products and has an affiliate that produces or sells one or more Marijuana Products under the same or a substantially similar brand as such entity or CBD Products.”

Translation for NBA players and cannabis investments

Players are free to directly or indirectly own or invest in companies that sell only CBD Products (and not, for example, cannabis, kratom, or psilocybin). Interestingly, via the list of example products in the Agreement — and since the NBA included drinks, pills, and powders — NBA players seemingly will be able to own and invest in CBD companies that violate the Food, Drug, and Cosmetic Act (given the FDA’s current position on CBD in food and beverage and regarding health claims). To be 100% safe from federal enforcement, NBA players would be wise to own and/or invest in CBD companies that make CBD topical products only (without making any health claims), but we all know that that likely won’t happen.

When it comes to state-licensed cannabis companies (i.e., companies that sell just “Marijuana Products” and/or “Marijuana Products” as well as “CBD Products”), players are more restricted in what they can and cannot do. Specifically, if a player directly or indirectly owns and/or invests in a state-licensed cannabis company, that interest cannot entitle the player to any “management, governance, voting, or executive role or other operational rights or roles”, and the player has to have a minority stake (i.e., less than 50%) in the venture or entity, whether it’s via direct ownership or through, for example, a fund. Of important note is the fact that if a CBD company also sells “Marijuana Products” (or, weirdly, kratom) or has an “affiliate” that sells Marijuana Products under the same or substantially similar brand as its CBD Products, that CBD company becomes a “Marijuana Company”, and the player’s ownership and investment options are limited.

Cannabis endorsement and promotions

Finally, the Agreement allows for the following:

. . . a player may participate in the promotion or endorsement of any brand, product, or service of an entity that produces or sells CBD Products, provided that such entity (A) is not a Marijuana Company, (B) does not also produce or sell one or more products containing any Prohibited Substance or any other Schedule I or II substance under the Controlled Substances Act, and (C) such participation and such entity’s operation comply with all applicable laws and regulations.

Without having to ask the Players Association and the NBA, players can promote and endorse any brand, product, service, or company that makes or sells CBD Products, but that’s it. They cannot do the same for any Marijuana Company (which is a massive bummer), and they’re still prohibited from any such promotion or endorsement even for a CBD company if that CBD company (or its affiliate) also sells Marijuana Products (or any product or substance that constitutes or contains a “Prohibited Substance” or a Schedule I or II controlled substance).

If a player wants to promote or endorse CBD Products sold by a Marijuana Company, they need a green light from both the NBA and the Players Association. This will be no small task. That player request to promote/endorse must be in writing; include a complete list of the products that the Marijuana Company produces or sells; include a complete list of all ingredients of such products; a description of the player’s proposed promotion or endorsement activity for the Marijuana Company’s CBD Products; and a detailed summary of the non-financial terms of any proposed promotion or endorsement agreement between the player and the Marijuana Company.

Unless a player’s request has been approved in writing by both the NBA and the Players Association, the player can’t promote any CBD Products sold by a Marijuana Company. And neither the NBA nor the Players Association will approve these if the subject CBD Products are “associated by the Marijuana Company with any Marijuana Product (e.g., the CBD Product is marketed or sold under a brand that also includes or refers to Marijuana Products) or if any proposed promotion creates a reasonable risk of public confusion with any Marijuana Product”. And, of course, these approvals can come with specific terms and conditions, too, from the NBA and/or the Players Association.

Bad cannabis investments

If players violate the Agreement when it comes to cannabis investments and/or promotions and endorsements, “without limiting other NBA rights or remedies, the player shall be required to promptly dispose of his ownership interest in the prohibited investment and/or immediately terminate his participation in the prohibited promotion or endorsement, as applicable.” The correction remedy here is swift and unforgiving, and penalties to the player could also apply (not to mention any collateral contract breach issues with the corresponding CBD and/or Marijuana companies).

What happens now?

We may see increased investment and ownership in the realm of CBD and cannabis when it comes to NBA players. It’s still not without risk of violating the Agreement, but it’s a pretty solid start to more participation in the cannabis industry by professional athletes. I’m hoping to see more IP licensing deals, direct investment, and joint ventures involving athletes, but that will obviously be after significant regulatory compliance exploration with both the Agreement and federal and state CBD and cannabis laws and rules.

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Is Kratom Addictive? Understanding Dependence, Risks, and Safe Usage

Published

10 hours ago

November 12, 2024

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is kratom addictive

Is kratom addictive? Discover the potential for dependence on Kratom, the risks involved with its use, and how to approach its consumption responsibly.

From 2011 to 2017, over 1,800 calls to poison centers involved kratom in the U.S. This significant number highlights the concern regarding kratom addiction.

However, without Food and Drug Administration (FDA) oversight, and due to various consumption methods like teas and capsules, there are significant health risks. Safe use of kratom is now in question due to these issues.

Research debates how dependence develops, outlining signs like loss of control and withdrawal symptoms. These signs are seen in regular kratom users. Ironically, some people switch from drugs like heroin to kratom, looking for a legal alternative.

Understanding Kratom: Origins and Prevalence

Kratom comes from the Mitragyna speciosa tree in Southeast Asia. It can act like a stimulant or like opioids, based on how much you take. People use it in different ways, for a small energy boost or stronger effects at higher doses.

The legal status of kratom in the U.S. is complicated and changing. It’s a hot topic because some worry about its misuse. It’s still legal in several states. This shows how different places handle drug rules. The National Institute on Drug Abuse is looking into its medical benefits. But, the FDA hasn’t approved it for medical use yet. The DEA calls it a “drug of concern,” which means policies might change.

From 2011 to 2017, poison control centers in the U.S. got over 1,800 reports about kratom. This shows it’s widely used and might pose health risks.

Kratom’s main ingredients bind to opioid receptors very strongly, stronger than morphine even. This fact is key to understanding its effects.

As more people use kratom, more are reporting serious health problems. These include liver and heart issues, and tough withdrawal symptoms, particularly in those already sick.

The statistics show mounting worries about kratom in the U.S. As its use grows, it’s becoming more important to health policies and laws. What happens next will depend on further research and legal decisions.

Is Kratom Addictive: Investigating the Substance’s Nature

The question of kratom’s addictiveness focuses on how it affects brain receptors and its long-term health implications. The ongoing debate highlights concerns about dependence and the risk of addiction. Scientists are closely looking at these issues.

How Kratom Works in the Brain

Kratom’s main alkaloids, mitragynine and 7-hydroxymitragynine, bind to the brain’s opioid receptors, similar to painkillers and narcotics. This connection suggests a potential risk of dependence. These alkaloids are key to kratom’s pain relief but also point to possible addiction concerns, especially with frequent, high-dose usage.

Patterns and Consequences of Long-term Use

Using kratom often, especially in large doses, can increase the risk of dependence and intense withdrawal symptoms, similar to opioid withdrawal.

Although some use it for pain or to improve mood, long-term kratom users might see serious health problems, like liver damage and mental health issues.

Withdrawal symptoms, including irritability, nausea, and sleep problems, show kratom’s impact on one’s physical and mental health.

Assessment of Addiction Risks

Studies indicate a significant risk of addiction to kratom, especially with high doses or frequent use. Dependence develops as the body gets used to kratom, leading to tolerance and a need for more to feel its effects. Withdrawal symptoms emphasize this risk, as highlighted by health experts.

Physiological Effects: Kratom’s Impact on the Body

There is a lot of debate about the safety and use of kratom. This herbal extract comes from the Mitragyna speciosa plant. It has drawn attention for its possible harmful effects on the body. The FDA has issued many warnings about kratom, raising safety concerns.

Kratom Adverse Effects: Kratom users have reported side effects like nausea, vomiting, and confusion. More serious issues include high blood pressure and liver damage. These problems highlight the risks of using kratom.

Herbal Extract Safety: Some kratom products contain heavy metals and pathogens. These can cause severe health issues, including death. This shows the importance of safety in herbal products.

FDA Warnings and Regulations: The FDA has linked kratom to over 35 deaths and warns against using it. They point out the lack of medical uses and the risk of addiction.

Physiological Impact: Kratom’s effects depend on the dose and the user’s body. Yet, it can lead to dangerous outcomes like liver damage and seizures.

Safety Concerns from Authorities: Federal agencies like the DEA are worried about kratom’s safety. Although not a controlled substance, monitoring suggests users should be careful.

Kratom might offer temporary relief for some ailments, but it comes with significant risks. The FDA’s warnings should make people think twice. If considering kratom, it’s crucial to talk to a doctor first. Experts stress the need for safety and caution with herbal extracts.

Conclusion

Kratom’s role in health and regulation is complex, with views and research findings widely varied. Some people use kratom for its claimed health benefits, but it’s a hot topic. Experts advise caution and suggest consulting a doctor before using kratom due to the unclear effects.

Clinical studies using scores like SOWS and COWS haven’t confirmed withdrawal symptoms from kratom. This adds to the debate, especially when some users report withdrawal. This makes kratom a controversial subject among different findings and user experiences.

When it comes to treating opioid addiction, kratom can be both helpful and harmful. Some have used it successfully to fight addiction. Yet, some states have banned it. This highlights the need for regulations and consistent product quality. It also raises questions about kratom’s legal status due to mixed actions by authorities.

The situation shows how complex kratom is in the realm of substance use and law. Without clear evidence supporting either its benefits or risks, it poses a challenge. More research is needed to guide regulations and health advice. For now, anyone thinking of using kratom should be careful, seek medical advice, and keep up with laws and health guidelines.

WHAT IS KRATOM ANYWAY? READ ON…

WHAT IS KRATOM AND WHY ARE YOU HEARING ABOUT IT NOW?

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New Rule, December 5: Oregon Cannabis Retailers, Processors and Labor Peace Agreements

Published

11 hours ago

November 12, 2024

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Oregon’s Measure 119 passed last week, as expected. This means that as of December 5^th, every OLCC licensed retailer, processor, researcher and testing lab must secure a labor peace agreement before OLCC will approve a new or renewal license application. The labor peace agreement must be with a “bona fide labor organization.”

I previewed M119 back in September, explaining:

Compulsory peace agreements aren’t anything new in cannabis, although it would be something different here in Oregon. California, for example, requires labor peace agreements for many of its cannabis licensees, and has for many years. We had clients struggle with the concept initially, and we saw some fumbled rollouts, but people eventually adjusted.

Measure 119 further provides that retailers and processors would be required to remain neutral, under the peace agreements, when labor organizations communicate with employees about collective bargaining rights “with any licensure or renewal application.”

M119 may be legally problematic

I’m not a First Amendment lawyer, but it’s not clear to me that an Oregon business can be constrained from speaking with employees– regardless of what M119 provides. Oregon’s speech protections are extremely broad, which is why we have a naked bike ride, tons of strip clubs and no campaign finance restrictions.

I’m also not a labor lawyer, but I’m told M119 could hit a snag on the National Labor Relations Act.

I’ve run these concepts by an Oregon First Amendment lawyer and a couple of labor lawyers, and all confirmed to me that M119 has real exposure. I found that feedback interesting, because M119 sponsors would have understood this when they set out signature gathering. Back in September, I wrote:

The United Food and Commercial Workers Local 555 spent a good deal of money to get Measure 119 on the ballot, rounding up some 163,000 signatures when only 117,173 were required. This follows on a stymied effort to get House Bill 3183 passed last year, which would have accomplished the same thing legislatively.

HB 3183 failed after a couple of advisory letters from the State of Oregon, Legislative Counsel Committee (see here and here). Those letters discussed preemption exposure for what is now M119 under the National Labor Relations Act, The Taft Hartley Act, and other federal laws. Oregon Business and Industry, the largest business group in the state, also submitted opposing testimony, highlighting legal exposure.

As to the First Amendment issues, anyone watching this is advised to follow litigation recently brought by Ctrl Alt Destroy, Inc., on a similar requirement in California.

So let’s see how that goes, and let’s see if anyone in the Oregon cannabis space wants to make a run at litigating M119. For now, credit to UFCW Local 555, I guess, for not giving up and for getting this thing on the ballot. And for having some fun by slipping a Rickroll into the voter pamphlet. I’m sure that won a few people over.

The OLCC process

I don’t have any information yet on what OLCC is going to do ahead of the December 5^th deadline. It’s worth noting that, in addition to California, other recreational cannabis states including New York, New Jersey, Rhode Island, Connecticut and Delaware all have similar requirements. Most likely, OLCC will put out an FAQ page very soon that looks something like this and licensees will need to upload something or other to CAMP with respect to any post-December 5^thapplication or renewal.

As far as OLCC licensees negotiating these agreements, the best approach would be to speak with experienced labor counsel. Labor law is highly specialized, and negotiating a labor peace agreement with any outfit claiming to be a “bona fide labor organization” is not a typical exercise.

For now, this is just one more thing for licensed cannabis businesses to comply with. Please reach out to us if you have any questions or need a referral.

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The CBD Dog Treat Guide

Published

12 hours ago

November 12, 2024

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CBD dog treats good or bad

As the popularity of CBD (cannabidiol) continues to rise, many pet owners are exploring its potential benefits for their furry companions. CBD is derived from the hemp plant and is known for its therapeutic properties, which may help alleviate anxiety, pain, inflammation, and other health issues in dogs. However, when considering CBD treats for your dog, it’s crucial to understand the ingredients that go into these products. This article will delve into the essential ingredients to look for in CBD treats, their benefits, potential risks, and how to choose the right product for your canine friend.

Understanding CBD and Its Benefits for Dogs

Before we dive into the ingredients, it’s important to understand what CBD is and how it can benefit dogs. CBD is a non-psychoactive compound found in cannabis plants. Unlike THC (tetrahydrocannabinol), which can produce a “high,” CBD does not have intoxicating effects. Instead, it interacts with the endocannabinoid system (ECS) in both humans and animals, which plays a crucial role in regulating various physiological processes.

Potential Benefits of CBD for Dogs

Anxiety Relief: Many dogs experience anxiety due to various factors such as loud noises, separation from their owners, or changes in their environment. CBD may help reduce anxiety levels by promoting a sense of calm.

Choosing the Right CBD Treats

When selecting CBD treats for your dog, it’s essential to look beyond just the CBD content. The overall quality of the treat is equally important. Here are some key ingredients you should be aware of:

1. High-Quality CBD Oil

The foundation of any good CBD treat is the quality of the CBD oil used. Look for treats that contain:

Full-Spectrum or Broad-Spectrum CBD: Full-spectrum products contain all cannabinoids found in the hemp plant, including trace amounts of THC (below 0.3% as per legal standards). Broad-spectrum products contain multiple cannabinoids but no THC. Both types can provide an “entourage effect,” enhancing the therapeutic benefits.

2. Natural Ingredients

Just like human food, the ingredients in your dog’s treats matter significantly. Look for treats made with natural ingredients rather than artificial additives or preservatives. Here are some beneficial components:

Whole grains like oat flour or brown rice flour provide essential nutrients and fiber that support digestive health. They are also a good source of energy for active dogs.

Healthy fats are vital for maintaining your dog’s coat and skin health. Ingredients like coconut oil or peanut butter not only enhance flavor but also provide beneficial fatty acids that support overall well-being.

Incorporating fruits and vegetables into your dog’s treats can boost their nutritional value:

To make treats more appealing without resorting to artificial flavors, look for natural flavorings like chicken broth or carob (a chocolate substitute safe for dogs). These ingredients can enhance taste while keeping the treat healthy.

3. Functional Ingredients

Some treats may include additional functional ingredients designed to address specific health concerns:

These compounds are often included in joint support treats to help maintain joint health and mobility, especially in older dogs or those with arthritis.

Probiotics can promote gut health by supporting a healthy balance of bacteria in your dog’s digestive system.

Certain herbs like chamomile or ginger may offer calming effects or aid digestion. Always ensure these herbs are safe for canine consumption before choosing treats containing them.

Ingredients to Avoid

While there are many beneficial ingredients to seek out, it’s equally important to know which ones to avoid:

1. Artificial Additives

Many commercial pet treats contain artificial colors, flavors, and preservatives that can be harmful to your dog’s health. These additives may lead to allergic reactions or other health issues over time.

2. High Sugar Content

Just like humans, dogs do not need excessive sugar in their diets. Treats high in sugar can lead to obesity and dental problems.

3. Low-Quality Fillers

Avoid treats with low-quality fillers such as corn syrup or by-products that do not provide any nutritional value.

4. THC (Tetrahydrocannabinol)

Always ensure that any CBD product you choose contains less than 0.3% THC to avoid any psychoactive effects on your dog.

How to Introduce CBD Treats Safely

When introducing any new treat into your dog’s diet—especially one containing CBD—it’s essential to do so gradually:

Start Small: Begin with a small amount of the treat to see how your dog reacts.

Monitor Your Dog: Observe your dog for any adverse reactions such as changes in behavior or gastrointestinal upset.

Adjust Dosage as Needed: Depending on your dog’s size and needs, you may need to adjust the dosage over time.

Consult Your Veterinarian: Before starting any new supplement regimen, including CBD treats, consult with your veterinarian—especially if your dog has existing health conditions or is taking other medications.

Conclusion

CBD treats can be a beneficial addition to your dog’s diet when chosen carefully with attention to ingredient quality and safety. By understanding what goes into these treats—such as high-quality CBD oil, natural ingredients, functional additives—and knowing what to avoid, you can make informed decisions that support your dog’s health and well-being.

Always prioritize transparency from manufacturers regarding ingredient sourcing and product testing; this will ensure you’re providing your furry friend with safe and effective options tailored to their needs. With proper research and guidance from a veterinarian, you can confidently explore the potential benefits of CBD treats for your beloved pet while ensuring they enjoy a tasty snack that’s good for them too!