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10 Questions: Serge Chistov on the Future of Cannabis

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PHOTOS | The Honest Marijuana Company
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In the ever-changing cannabis market, one issue the industry needs to address is becoming paramount: the environmental impact of legal cannabis. At a time when we are concerned about plastic waste and reducing our consumption of the material, we should be using our purchase power to support eco-friendly companies.

The Honest Marijuana Company utilizes all-natural cultivation methods to produce organic and eco-conscious cannabis products. The Colorado-based company packages their products in Earth-friendly recyclable tin cans with pure nitrogen, ensuring the cannabinoids and terpenes remain of the highest quality. The company also recently launched their new Honest Blunts, the first organic hemp-wrapped, machine-rolled cannabis blunts.

Serge Chistov is the financial partner of HMC. He talks to us about what he sees as the future of our ever-changing industry.

Cannabis Aficionado: What is the future of cannabis?

Branded products and repeatable consumer experience will be major industry focuses. The industry is maturing and American consumers now demand quality, innovation, ease of use..anything that has to do with buying your product from Amazon. More and more Americans would vote today for the federal legalization. There will be new products and the same rules will apply to cannabis as they would for other products.

I also think that the hemp extract and some of the other cannabinoids will play an important role in dietary supplements and the overall consumption will be greatly extended with the new generation of products.

What trends are shaping cannabis in 2019?

I think bud smoking will stay with us but be reduced by the innovations and new technologies that deliver cannabis, like properly designed edibles and dissolving pills. Seniors and soccer moms will also become bigger consumer groups in the cannabis industry. Older people who were influenced by the stigma of cannabis are slowly but surely catching on. With soccer moms, right now there is a big conversation about more delivery services in the industry, which may take away the stigma of going into the pot shop and associating with the unknown element.

What technology will have the biggest impact on the cannabis industry?

There will be a new generation of edibles and topicals. I’m talking about a nanotechnological approach that turns non-water-soluble substances like cannabinoids into nano-size so they can be added into transdermal patches, topical lotions, and more for the cleanest, most efficient, healthiest, and most discreet cannabis consumption. This would allow for a smokeable-like effect without the smoking. Products made with nanotechnology are effective, as you don’t need to consume a lot to get the desired effect. It is also healthy because they allow you to obtain medical benefits from cannabis without smoking and sacrificing your health in exchange.

Have we reached peak CBD?

No, I don’t believe so. I think that the hemp extract and some of the other cannabinoids will play a pretty important role in dietary supplements and the overall consumption will be greatly extended with the new generation of products. So no, I don’t think we have reached peak CBD.

Are vape pens going to replace bud smoking? Why or why not?

No, I don’t think they will. They will be an additional method of use. Some people I know who use vape pens are new users or they like the convenience. It is way easier to use a vape pen conspicuously in the public and while traveling. However, I think bud smoking will stay with us, as it is a traditional and long known way of consuming cannabis. It will be reduced by the innovations and new technologies that deliver cannabis, such as properly designed edibles, dissolving pills, oral dissolvable strips — things that will ‘skip the first pass’ of the human body will eventually take a bigger chunk out of the consumers who smoke bud and use vape pens.

How savvy are cannabis consumers when it comes to knowing the different strains?

They are not as savvy as we would want them to be, but they are definitely way savvier than they were five years ago. Consumers are still talking about their perceived values of different strains, without truly realizing that a majority of them are hybrids. There are no specifically unique indicas or sativas — there are indica or sativa-dominant hybrids because a lot of the cannabis genetics in the country are all mix-matched and there was no uniform approach to market them. So, yes, there is a long way to go as far as us educating the consumer. There is still a lot of work to be done.

What demographic do you see having the most growth? Hipsters? Oldsters? Soccer moms?

Seniors and soccer moms will become bigger consumer groups in the cannabis industry. Hipsters have been puffing away and the legalization is just another opportunity for them to experience new ways of consuming and new, improved technological advances. Older people who had a stigma are slowly but surely catching on with cannabis, with the societal changes that are changing that stigma. Baby boomers are a massive demographic. We would love or them to start participating in using cannabis. They are the largest demographic in the country! Obviously, with soccer moms, right now there is a big conversation about more delivery services in the industry, which may take away the stigma of going into the pot shop and being associated with the unknown element. As more and more of the industry develops and allows people to buy cannabis discreetly to use in the safety of their homes, I believe more and more of these demographics will be big participants.

What product is most likely show the most growth: Smokables? Edibles? Topicals?

There will be a new generation of edibles and a new generation of topicals. I’m talking about a nanotechnological approach that would allow for a smokeable-like effect without the smoking. I do believe that that will be huge.

What new challenges will the industry face going forward?

The challenges are the continued regulations, the unknown of the federal legalization, and that we are not in a competitive state. Americans are competitive people and now our hands are tied. Canadians are doing what they’re doing and have all the funding in the world. Compare our industry to the stock deals done out of Canada. Just think about it. They are coming across the border and are able to accumulate resources and opportunities on our land. All of this is strictly funded by privateers, by people with their savings and their reinvested earnings. This is an unfair competitive landscape and I hate the sound of it! We are the ones who are pioneering the industry in Colorado and California and it turns out to be like an old joke — pioneers get shot and settlers are the ones who are making money! It’s not good.”

Is the market going to be more for dispensaries or delivery?

I believe it will be a healthy combination of the two. I believe that there will be an online presence, where the consumer will be able to be educated just like it is right now with any other goods or service industry. Then there will be the consumer who would like to go and actually chat with people who are in the know and in the action, just like you would go and select your wines. In this instance, you go into the store that has a great selection of brands and you will find two or three bottles that you really like, but this does not mean that you would not on occasion order them online just for the convenience of your day to day life. I believe it will be a healthy combination of the two, and it’s for the better.

What do you know now that you wish you knew when you started?

That is a good question! What I know now that I wish I knew when I was starting is that the changing regulations continue changing. I understand that the government is trying to find their footing, but because of this the manufacturers and logistical personnel need to continue changing the packaging and labeling and adjusting how we bring our product to the market. That would be helpful to know and I would have thought by now that the banking system would be more available to the cannabis industry as well, but that is still not happening. Other than that, our expectations were very limited, because starting in the industry was a freedom and an opportunity to finally do what we are passionate about and share that with the rest of the world.

Cannabis

Israel’s Cannabis Trade Probe Moves Toward a Four-Producer Review

Israel’s latest procedural step puts four Canadian producers in focus, while the distinction between an investigation and an imposed trade duty remains essential.

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Shipping containers and cranes at a commercial port

Israel’s investigation of Canadian medical cannabis imports has reached another procedural stage, with four producers identified for closer examination, according to reporting on an October 22 notice. The development concerns how investigators will assess exporters. It does not, by itself, establish that dumping occurred or impose a new import duty.

Israel’s Cannabis Magazine reported that the trade-levies commissioner selected Koots Canna, 2323414 Alberta and Cielo Verde Quebec as a sample, with GrowCo to be examined separately. The outlet said it obtained the commissioner’s document. Cannabis Aficionado has reviewed the published reporting, rather than independently obtained that notice.

Why four producers are in focus

According to Cannabis Magazine, the three sampled growers represent about 22 percent of exports among the 16 indoor and hybrid growers that supplied data. GrowCo was singled out because of its greenhouse production and export volume. The report says the four together cover approximately 70 percent of Canadian cannabis imports into Israel during the relevant investigation period.

Those are descriptions of the proposed examination, not market-share figures that should automatically be applied to current retail sales. The reporting also describes a five-business-day response period for parties to comment. A reader should not mistake that opportunity to respond for a final ruling.

StratCann’s October 23 report adds that 22 Canadian companies supplied initial responses and 17 had exported during the investigation period. Its account says the commissioner considered individual calculations for every cooperating exporter impractical within the available time. Sampling is therefore central to this stage of the dispute.

What “dumping” means in this context

The World Trade Organization’s explanation of anti-dumping rules describes dumping as exports sold below their normal value, generally assessed against the exporting market. It is a trade-law pricing question. It is not an allegation that cannabis was contaminated, illegally cultivated or unsuitable for patients.

The comparison is more involved than placing two advertised prices side by side. The WTO describes adjustments that can be needed for differences in sale conditions, quantities, taxation and product characteristics. Its framework also requires consideration of material injury to a domestic industry and a causal link between that injury and dumped imports.

That makes production methods and comparable pricing relevant without making either conclusive. A greenhouse producer can have different costs from an indoor grower, but a cost difference alone does not settle all the questions required for an anti-dumping measure. The investigation has to establish the relevant facts through its process.

A dispute with several procedural turns

The latest review follows an earlier investigation that was closed in July. In a July 28 notice, Israel’s Ministry of Economy and Industry said the closure was for procedural reasons: advance notification had not been provided to the exporting country’s competent authority because of human error.

The ministry explicitly said that closure was not a substantive determination on the complaint. It also preserved the possibility of a further complaint or a new investigation. The distinction matters in both directions: closure did not establish that the allegations were correct, and it did not establish that they were disproven.

Cronos Group’s securities filing records a new complaint dated July 30, notification to Canada on August 2 and notice to the company on August 5 that a new investigation had begun. The company says it cannot predict the outcome or whether provisional or final duties will ultimately be imposed.

The filing also traces the earlier case to January 2024 and describes the finance minister’s opposition to the proposed duty in April 2025. It records subsequent court challenges as well. That history helps explain why earlier proposed tariff percentages should not be presented as the rate established by the October 2026 sample-selection step.

What changes for readers and businesses now

For businesses, the immediate development is a more specific picture of which exporters may receive detailed scrutiny. It is not enough information to calculate a new landed cost, predict a supplier’s future prices or announce an interruption to patient supply. Those claims would require additional evidence.

For patients and other readers, an investigation headline should remain separate from a product-safety headline. Nothing in this procedural selection establishes a health finding about a named producer’s cannabis. Nor does it establish a new prescription rule.

The next substantive items to watch are the commissioner’s treatment of responses to the sample, any published preliminary determination and any resulting measure. Reports available for this article describe sample selection, with no preliminary duty decision reported at that stage. Until a later document changes that position, the appropriate description is an unresolved trade investigation.

Illustrative stock trade photograph; not a documented cannabis shipment or an Israeli port. Photo: Andrea Musto / Pexels.

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Rubicon’s $3 Million Raise Puts Greenhouse Lighting at the Center of Expansion

The Canadian producer plans to expand output from existing facilities, with a lighting project bringing its combined capacity target forward to June 2027.

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Potted plants beneath the glass roof of a greenhouse

Rubicon Organics is putting new capital into the lights above an existing crop rather than announcing another cultivation site. The Canadian producer’s October 19 financing announcement outlines a roughly $3 million private placement intended to support lighting and related greenhouse infrastructure at its Pacifica facility in Delta, British Columbia.

The company expects the project to help bring combined annual capacity at Pacifica and its Cascadia facility to 20,000 kilograms by June 2027, about a year earlier than previously anticipated. That is a production target. Whether additional capacity becomes profitable, saleable flower will depend on execution, operating costs and demand.

What the financing is intended to fund

According to Rubicon’s announcement, Siwash Rock Investments subscribed for 6,666,667 common shares at $0.45 each. Proceeds are intended for the lighting project, with the balance going to working capital.

Rubicon says Pacifica’s annual capacity could reach 15,500 kilograms after the upgrade, a 40 percent increase at that facility. The 20,000-kilogram figure refers to both sites together. Those two numbers describe different scopes and should not be added together. Final TSX Venture Exchange acceptance remained outstanding in the announcement.

The operating background behind the project

Rubicon’s second-quarter results, released in August, provide context for the expansion. The company reported net revenue of C$18.5 million, up 23 percent year over year, while adjusted EBITDA fell 18 percent to C$1.1 million. Adjusted EBITDA is the company’s nonstandard earnings measure, not net profit.

Management attributed pressure on profitability to the ramp-up of Cascadia even as revenue grew. It also reported that Pacifica’s per-crop yield metrics had increased approximately 20 percent in the first half of 2026 compared with a year earlier.

Those disclosures show why output and earnings need to be examined separately. A business can sell more while still absorbing the expense of bringing a facility to its intended performance. The lighting investment adds another operational milestone to watch alongside the company’s reported financial results.

The August report put combined capacity at 15,500 kilograms before the planned lighting expansion. That earlier baseline helps clarify the October target: the same figure later describes Pacifica alone, while the combined target rises to 20,000 kilograms.

Why growers pay attention to lighting

There is a research basis for studying how additional light affects cannabis production. A 2022 study in Frontiers in Plant Science tested the THC-dominant cultivar Meridian under different light intensities in an indoor environment. Dry flower weight was higher under the strongest tested photosynthetically active light treatment than under the lowest.

However, the study found no corresponding effect of those intensity treatments on cannabinoid concentrations in the flower. Its ultraviolet treatments also provided no commercially relevant benefit under the tested conditions. More flower and stronger flower were separate questions.

The researchers cautioned that responses vary with genotype and production environment. Their findings explain why light is a serious cultivation variable; they do not independently verify Rubicon’s projected 40 percent increase. A controlled indoor experiment is not a performance test of Pacifica’s greenhouse or its proposed equipment.

The experiment also illustrates why a lighting announcement should identify what success means. In this case, increased dry flower weight did not demonstrate increased flower cannabinoid concentration, even though both measures could matter commercially.

The energy bill belongs in the calculation

A 2021 PLOS ONE study by Utah State University researchers makes another useful distinction. In experiments with medical hemp, the team compared lighting spectra and fixture efficiency. A tested white-and-red LED treatment produced slightly less flower per unit of growing area than a high-pressure sodium treatment, but more flower per dollar of electricity.

The authors concluded that fixture efficacy and upfront cost could matter more to investment returns than spectral distribution at high light levels. Their study also found no effect of spectral quality on CBD or THC concentration under its conditions.

For readers following a greenhouse upgrade, the practical implication is that kilograms alone cannot describe the result. Equipment cost, electricity use and the amount of usable production obtained from that energy all belong in the evaluation. Those research findings are background, not a specification for Rubicon’s project.

For broader demand context, our coverage of Canada’s August retail sales explains why national spending and an individual producer’s performance answer different questions. A market record does not validate a particular expansion forecast.

What will show whether the expansion works

The most useful follow-up will connect construction progress with actual operating results: whether the equipment is installed on time, whether yields improve consistently and whether the additional flower supports sales without eroding margins. Those are checkpoints, rather than outcomes established by the financing.

For cultivators, Rubicon’s plan offers a concrete example of pursuing more output within existing infrastructure. For consumers, the announcement does not guarantee a change in potency, availability or shelf price. The capital has been raised; the production and commercial results still have to follow.

Illustrative stock greenhouse photograph; not Rubicon’s Pacifica facility or a cannabis crop. Photo: Albina White / Pexels.

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Calyx Launches packOS With Label Quotes First and More Tools to Follow

Calyx’s new packOS platform starts with label quoting. Its launch raises practical questions about artwork, production scope and the compliance work that remains with brands.

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An industrial printing machine processing sheets of paper

Calyx has introduced packOS, a packaging procurement platform that begins with a practical task: turning existing artwork into a quote. The October 20 launch brings the company’s cannabis packaging experience into software, with an initial Quick Quote offering and additional approval and order-management tools on its roadmap.

For cannabis brands, the useful question is what can be ordered now. The current product page identifies label quoting as live and flexible packaging as coming soon. That makes the first release more specific than the phrase “operating system” might suggest, particularly for buyers expecting a complete replacement for their existing packaging workflow.

What Calyx announced

In its company release distributed by Cannabis Business Times, Calyx describes a platform intended to move procurement beyond email chains, spreadsheets and manual quotes. It says buyers can upload packaging artwork and compare production options, prices and corresponding lead times.

The release presents Quick Quote as the first major component, with Artwork Approval and Order Management to follow. It also describes artificial intelligence and automation in estimating, artwork preparation and prepress. Those are Calyx’s descriptions of its technology, rather than results from independent testing by Cannabis Aficionado.

The distinction matters when comparing a launch announcement with a purchasing decision. A platform may describe an ambitious direction while delivering a narrower first service. Buyers need a clear understanding of which steps are available today, which require additional coordination and which remain future capabilities.

The current scope starts with labels

The product homepage says users can submit a PDF or Adobe Illustrator file. It describes extracting specifications from that artwork, producing a visual proof and pricing quantities. Labels are listed as available, while pouch quoting is marked as a future addition. Artwork Intelligence and Order Management appear in preview on the current roadmap.

For a buyer preparing a launch, those labels are more useful than assuming everything mentioned in an announcement is fully available. A proof, a quotation and an accepted production order are separate milestones. Establishing which one the platform has delivered helps prevent a team from treating preliminary information as a finished manufacturing commitment.

Printing does not replace compliance review

The cannabis-specific product page covers several label uses, including jars, lids, pre-rolls, boxes and batch information. It also answers an essential question directly: state compliance review stays with the customer’s team and counsel. The software is not presented there as a service that approves labels against state cannabis rules.

That boundary is significant for a brand operating across markets. An artwork file can be ready to print while still needing a jurisdiction-specific review. The company says customers provide approved versions for each state; it also says label orders do not require buying containers from Calyx.

Its described workflow separates preprinted brand and strain information from batch details added by customers using their own thermal printers. That is a production option, not proof that a particular finished label contains every required disclosure. The final artwork and data still need attention before a product reaches a shelf.

Questions to settle before uploading artwork

Packaging files may contain unreleased product names or designs, making information handling part of vendor selection. Calyx’s published security page says files travel over encrypted connections, are held in private storage and can be deleted on request. It describes using submitted files for quotes, proofs and production.

These are the provider’s stated practices, not an independent security assessment. A brand considering the service should compare those commitments with its own approval process and any obligations attached to an unreleased design. A convenient upload workflow does not itself decide who within a business is authorized to share artwork.

Similarly, any sourcing comparison should identify what is included in the quoted job. Quantity, material, finish, delivery expectations and the approved artwork version are practical points to settle before authorizing production. A lower displayed number is only meaningful when the underlying specification matches the buyer’s needs.

The security page also says access links expire and that an unverified internal access check is denied. Buyers can ask the provider how these stated controls apply to their particular project and who can request deletion.

A software launch with a manufacturing context

The consumer-facing side of packaging is visible in 710 Labs’ new Close Friends presentation. The packOS announcement addresses an earlier stage: how packaging teams organize artwork, evaluate options and move toward production.

For now, the clearest takeaway is a new quoting tool with a stated initial scope. Brands can assess the label service on that basis while tracking whether the planned approval and order-management features become available. Adoption, actual time savings and customer outcomes will require evidence beyond the launch announcement.

Illustrative stock printing equipment; not a Calyx facility or packOS demonstration. Photo: Criiv India / Pexels.

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