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Industry Innovators

10 Questions: Serge Chistov on the Future of Cannabis

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PHOTOS | The Honest Marijuana Company
Rocket Seeds

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.

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Brett Stevens: Lighting the Way for Indoor Cultivators

Brett Stevens of Fohse is on a mission to make his company’s name synonymous with hi-tech LED grow lights for the cannabis industry.

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Indoor Cannabis Cultivators
PHOTO | Brett Stevens, CEO of Fohse

At Fohse, meeting the challenges faced by indoor cannabis cultivators with superior lighting solutions is the prime directive. It’s a niche that co-founder and CEO Brett Stevens says is rife with opportunity for those with the talent to innovate. A serial entrepreneur with several successful exits in new and emerging markets under his belt, Stevens is now firmly focused on the cannabis industry.

“I originally got into the farming side of it, and I could definitely see where at that time, five or six years ago, there were so many holes that needed to be filled. It was kind of like, pick a side and go with it,” Stevens told Cannabis Aficionado.

The sector he believed had the most potential to impact the cannabis industry was engineering, and Stevens had kept his ear to the ground for tech opportunities, specifically for cannabis. So, when an engineer friend shared his design for advanced LED lighting, he saw a chance to bring value to a nascent industry.

Unapologetically Pro-Cannabis

For Las Vegas-based Fohse, the vision is to continually expand the tech in the cannabis industry, and Stevens is proud and unapologetic about the company’s focus.

“We’ve pigeonholed ourselves into the cannabis industry. We didn’t create the light for any other plant,” he explained. “We are sold on the plant. We’re sold on the medical purposes of the plant, and we really want to be there as the plant is more readily explored.” 

In order to be true innovators, Fohse doesn’t settle for the services of outside engineers. Instead, the company has its own in-house engineering team creating cannabis lighting solutions from the ground up. Stevens touched on SolidWorks, a 3D computer-aided design (CAD) program, that Fohse’s engineering team uses for their technical drawings. 

“We do all our material science, and we do all of our material engineering to make sure that the materials we’re using to dissipate heat or to project that photon where it needs to go [are sound]. We’re doing all that in-house.” he explained.

A Company Driven by the Question, “What If?”

Stevens noted that he’s not one to micromanage his executive team though. Instead, he said that his leadership style is to assemble a solid corps of professionals and let them go to work. And as inspiration, he encourages his engineers to continuously ask, “What if?”

“What if we could do ten pounds a light?” he wondered aloud. “What if we could do four micromoles per joule? How would we do that?” 

“We’re consistently thinking, ‘How can we be more efficient, and more powerful?’ And I think that’s what drives me,” he added.

According to Stevens, the combined talent and drive at Fohse are producing the most advanced LED lights available to cannabis cultivators. And that’s not just an assertion. It’s a claim that is backed by the company’s research.

“We are literally the most powerful and the most efficient light in the world right now,” Stevens said, adding that Fohse has done grow ops where they have bought and tested every single competitor’s light.

“There’s no question,” Stevens states confidently. “We will outgrow anything on the market.”

Creating an Industry Standard for Indoor Cannabis Cultivators

When his company entered the business, Stevens says the light manufacturing industry was racing to the bottom, with everyone trying to produce the cheapest lamps that would still grow cannabis. But Fohse took a different approach altogether.

“We looked at it more like, ‘What if we put massive power supplies and 5,000 diodes in a light?’ and ‘What if we could replicate indoor sunlight?’” he explained, adding that they focused closely on grams per square foot. 

“Because in the end, that’s what it comes down to, right?” he asked. “If you have a finite amount of space, the more you can grow in that area, the more productive and the more successful you’ll be.”

Constantly striving to increase productivity and efficiency for indoor cannabis cultivators is what the team at Fohse is all about. And that drive, Stevens says, will become increasingly evident when the company’s products are known as the industry standard.

“I think that we’re hungry, that we’re always advancing. We will not stop until we will reach the absolute pinnacle,” he pledged.

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Industry Innovators

Michael Trzecieski: The ‘World’s Coolest Bong’ Design Director

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Michael Trzecieski Stüdenglass

 Every now and then, a game-changing product comes along that tempts us to throw all other gadgets and glass out the window. The Stüdenglass gravity bong is one such product. Chances are you know of the bong through the viral video showing contemporary stoner icon Seth Rogen gripped by a coughing fit after one hit — cementing the bong’s place in counterculture legend.

The original product was conceived by ex-Apple alumni Tracey Huston, who filed the patent back in 2016. Recently, Stüdenglass was acquired by one of the most innovative — and coolest — cannabis companies, Grenco Science. Shortly after, Michael Trzecieski, founder of Vapium and tech-designer extraordinaire, took up the challenge of refining the state-of-the-art mounted gravity bong for top-shelf aficionados.

Cannabis Aficionado caught up with Trzecieski to talk about the synergies between weed and tech, how the Stüdenglass has improved, and, of course, that Seth Rogen video.

Cannabis Aficionado: Tell us about your journey through entrepreneurship and how you found your way to cannabis.

Michael Trzecieski: Growing up in Canada has afforded me many opportunities but there are two that have been the most formative — the first was becoming a Roboticist and the second was to witness and experience a country who showed true compassion toward cannabis as medicine. I was allowed to see the power of the plant without shame or indignity.

My journey as a Roboticist started in fibre optics, engineering micro-robotic toys. At the same time, Canada was making enormous strides towards full legalization. The timing, coupled with my desire to support the medical cannabis consumer, allowed me to shift my focus and passion — making a different kind of robot to support the people who needed it most. With this goal in mind, I took my years of experience in safety and controls (from toys being so heavily regulated) and applied this to making our first haptic vaporizer back in 2012.

Can you share your thoughts around the synergy between tech and cannabis?

Tech allows users to titrate their cannabis experience so they can choose to consume at various levels.​ ​Traditional methods of consumption are not always effective for all patients, and innovation is paramount for harm reduction and efficiencies. It is essential to have clean air intake, temperature stabilization. Temperature stabilization allows the vaporizing device to toast the leaf material instead of combusint it using a closed-loop temperature stabilization feedback system. At lower temperatures consumers can experience improved terpene profiles while at higher temperatures they may enjoy stronger effects.

What were the things you set out to achieve when designing the Stündenglass gravity bong?

The new Stündenglass glass gravity bong was designed for aesthetics, precision machining and cleaner vapor.​ ​We also wanted to provide a more comfortable user experience. Through the kinetic motion activation, vapours are sucked into an upper chamber and as water rushes from the upper chamber to lower chamber, the vapor percolates through the flowing water stream and offers vapour filtration as well as vapor cooling.

Tell us about the materials and why you chose them.

The materials chosen for the Stündenglass were predominantly glass and metal.

Glass offers a supreme taste, it is easy to clean, and it does not attract vapor and oil particles.

Stainless steel was also chosen as one of the core elements in the device because of its cleanliness as well as its ability to be precision-machined and for its high wearability in the valve portion of the device.

Anodized aluminium was also utilized for its durability and longevity.

What’s your favorite thing about the Stündenglass gravity bong?

It’s magical. The kinetic motion activation allows the device to both suck vapour as well as expel vapor at the same time, and provides percolation and water vapor filtration. There are also many magnetic components because magnets are also kind of magical.

Stündenglass was recently acquired by Grenco Science. Can you tell us details of how this exciting acquisition came about?

We first got to know Tracey Huston, and it was immediately apparent that there was a synergy between the brands, with a shared goal of innovation and improving upon the user experience. We recognized the ingenuity behind Stündenglass and understood how we could help by bringing this product into Grenco Science’s global expansion plan. From there it was a natural next step to bring Stündenglass into the Grenco Science umbrella.

How has the device evolved since its initial prototype?

The initial prototype was a very functional and utilitarian type unit. The design was since improved for its aesthetics, robustness, as well as the modularity. Furthermore, the percolation was an added feature and an improvement over the first model.

Subsequent models have allowed for modularity. The modules may be removed and taken apart, cleaned and accessorized, as well as replaced with other future potential attachments and improvements. A wall mount was also provided.

The viral video of Seth Rogen with his Stündenglass put the gravity bong on the wish-list of every aficionado, cementing its place in cannabis culture legend. How did it come about?

It was very organic. An early prototype was given to someone in Seth Rogen’s family, who then gave it to him. It was his own idea to create the video and share the experience online.

What tech trends do you predict for the cannabis industry over the next five years?

The bigger tech trends in the cannabis industry include dosing and data. Many customers want to be able to monitor their dosages as well as have data associated with their consumption, like what a Fitbit tracker does for fitness. This will allow producers to develop more meaningful formulations for their consumers as the data and dosing science evolves.

How do your products help shift the stigma about cannabis?

Our products help the ship the stigma on cannabis by bringing technology to the industry. This tech comes in the form of improved heating technologies, industrial design, safer material choices and temperature stabilized heating control loops.

In your opinion, what’s the most important thing that needs to be addressed when talking about cannabis?

That cannabis is a medicine. We are only beginning to uncover its real potential as legalization around the world grows.

How do you think the cannabis industry as a whole can be better?

Accountability. One of the major issues in the industry at the moment is a lack of accountability and a lack of safety and testing standards. There are still some operators that are looking to make a quick buck from unassuming consumers, and last year’s vape crisis was a direct result of that.

The cannabis industry is just in its beginning stages and needs to evolve. With this evolution there will be added accountability and more rules and regulations to ensure it’s safer for all.

What do you wish you knew when you started out in cannabis entrepreneurship?

I wish I knew that it was not going to be easy, and this holds true for any entrepreneurship. Finding the right people and putting together the right team is really important. It took us years to finally find the right partners and the right people to work with. This allowed us to evolve from a smaller operation to a larger entity.

Finally, what are three things it takes to be a cannabis entrepreneur?

I would say the first thing is creativity. You have to be full of ideas; you have to understand how to change the game; and how to make a difference, not just fit in. As the industry quickly evolves with ever changing rules and regulations, you need to keep your head in the game. It’s an industry for sharp minded entrepreneurs who know they can make a difference.

You’ve got to be tenacious, never take no for an answer, and keep on pushing for what you want to achieve going forward. No one’s going to do it for you. You need to drive your creativity home to others and have them believe in you.

You need to show up and be present in order to know what the industry is about. You need to be present at trade shows, events and gatherings where you can meet the right people in order to develop the right relationships.

Follow Michael Trzecieski on Linkedin.

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Industry Innovators

Bill Shevlin: Cultivating Carbon-Neutral Cannabis at 3 Bros Grow

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Bill Shevlin 3 Bros
Bill Shevlin | PHOTOS 3 Bros Grow

It’s no secret that indoor cannabis cultivation techniques leave a substantial carbon footprint. The immense amounts of water and energy required will make the model unsustainable if it continues unchallenged. Fortunately, by implementing cutting-edge technology and the best production practices, it is possible to grow top-shelf cannabis in a way that’s sustainable for both businesses and the environment. That’s the vision of 3 Bros Grow, a vertically integrated cannabis company in Santa Cruz, California, dedicated to growing the very best cannabis using environmentally friendly processes.

Cannabis Aficionado spoke to CEO Bill Shevlin about the 3 Bros Grow mission, their revolutionary cultivation practices and the importance of giving back to the community.

Cannabis Aficionado: Tell us about your journey through entrepreneurship and how you found your way to cannabis.

Bill Shevlin: I grew up in the Santa Cruz area, and if you grew up in this part of the country, cannabis was always around. When I was in high school, I took an outdoor ed program and learned how to read topography maps. My friends and I picked some locations that were back in the woods, in the canyons, planted there and grew. After school, I ended up getting into real estate development and management. For the last 15 years, I have advised technology and vertical ag companies while working in large-scale commercial construction and renewable energy.

In 2017, I started looking at energy usage in the cannabis and hemp space, as I knew cannabis was super energy-intensive. I worked with a few different companies in the industry — some were small, some were large — and I saw all sorts of issues from the infrastructure requirements but also on the corporate side. Due to my background in vertical ag, I knew you could cultivate and deliver food crops into local markets sustainably.  I knew there was value in being able to do the same thing in cannabis.

I met the founders of 3 Bros Grow — Tyler Smith, ‘CEBrO’; Mark Taylor, COO, and Russell Smith, CMO — at the end of 2019, and formally joined them as CEO in January of 2020. They have a really cool mission to be a sustainable company from day one and had some interesting things they were doing.

Grease Monkey

Tell me more about the 3 Bros Grow mission.

We believe it is our responsibility to offer only the highest quality cannabis products at an approachable price and in a sustainable manner. Cannabis is medicine, but we plan to use it to heal more than just people. From climate-positive business practices to community care initiatives, we strive to assist in the healing of our planet.  Unfortunately, the cannabis industry is far from green. There is a lot of waste and a lot of pollution. 3 Bros is committed to leaving this planet more beautiful than when we arrived and vow to put forward our greatest effort in sustainable and community-centred operations. That’s where my background in renewable energy comes into play.

Why is creating a zero-carbon footprint cultivation model so important to 3 Bros Grow?

From day one, 3 Bros Grow has been about sustainability — the founders were pushing the sustainability message in cannabis even before I was around. They grew up in the surf industry and were professional surfers, so they’re very conscious of the environment. When I joined, it was really because we were having conversations around using renewable energy and sustainable energy for indoor cannabis, which is really energy-intensive. Sustainability has always been part of the core culture of 3 Bros Grow. We’re doing some really cutting-edge stuff around sustainability.

What are the sustainable ‘green’ initiatives at your new facility?

We’re creating a climate-positive impact at our revolutionary new vertically integrated facility in Santa Cruz. It allows us to offer truly green practices across cultivation, manufacturing, processing, and distribution.

Our COO, Mark, figured out a way to not use any outside water in his cultivation operations. The 3 Bros proprietary systems and technologies don’t use any outside water for cultivation, which creates a lower cost of operation, and it also has a positive impact on the environment. If you look at what the industry standards are, for water there is, unfortunately, a lot of waste. It’s a problem that needs to be fixed, and we are fixing it.

We’re also implementing a carbon-negative microgrid that generates power onsite, allowing us to lower the cost of operation, and create a climate-positive impact. Again, cannabis is an energy-intensive industry. So even though a lot of people associate it with being “natural” and “clean,” the reality is that there are a lot of fossil fuels that are used to grow most commercially available cannabis.

Thirdly, using our proprietary Direct Air Capture technology allows us to sequester CO2 in our cultivation and manufacturing processes, which we’ll inject back into our grow environment. So, we’re actually pulling CO2 out of the air at a larger scale than we normally would, because we’re not supplementing with standard C02. We’re just supplementing with CO2 that we’ve captured from the air.

Mark Taylor in the 3 Bros grow room

The facility is being brought online in phases and will have a cultivation capacity of 10,000 pounds of top-shelf indoor cannabis. The interesting thing is that our environmental impact is positive, costs of operations are lower and our efficiencies are higher. Lowering the cost of operations is critical but doing them in an environmentally friendly way is even more critical. It really is the best of both worlds.

I believe sustainability should be taking place across all aspects of cannabis. In California, the Bureau of Cannabis Control requires certified hauliers to remove any cannabis waste — like stems and miscellaneous biomass — in a locked drum or container. It’s fairly expensive and very wasteful. We want to be able to take our waste and turn it back into something useful, not just bury it in the ground because the BCC considers it a hazard. So, we’re in the processes of obtaining authorization from the local county government to be able to take our waste and send it to our nursery site. This zero-waste program essentially creates a circular economy, not to mention a healthier soil program for our own growing.

We work with a company who has a soils program, the founder used to be with the Rodale Institute.  They are creating a compost program and implementing regenerative agriculture practices, which has multiple benefits: the crops produce more; the soils are healthier; the local climate is healthier, and those products are typically consumed in the local market and can fetch a higher price point.

Sustainable cannabis growing is all about reducing the negative impact on the environment. 3 Bros Grow demonstrates that sustainability in vertical agriculture can be achieved, that is profitable, and it is good for the planet and good for people.

How does the packaging that’s required for the sale of regulated products work into your sustainability model?

All 3 Bros Grow products are packaged using the most sustainable and environmentally conscious packaging available, like soy-based inks, recycled ocean-based plastics and bio-based plastic or hemp-based plastics. We’re talking to companies that are emerging that are using hemp fibers in this space.

I hate plastic. The amount of excess plastic and packaging used in the cannabis industry is a nightmare. The world’s starting to realize that plastic is going to kill us, and we’ve got to be able to find alternative packaging materials to be able to do it.

I think that as an industry, we need to insure everyone uses sustainable solutions. Right now, it is a little bit more expensive to use sustainable packaging. But in our opinion, it’s worth it to not pollute the planet and delay that cost into some future generation. Plus, I think we should be supporting our own industry to help it evolve — even if it costs a little bit more in the packaging up front for hemp fiber and plastic to come to market. From my perspective, it’s the right thing to do. 

What are the benefits of sustainable growing techniques?

You create a healthier, cleaner and consistent product. You also lower or remove your carbon footprint. And you lower your costs of operation. All three of these are important from a business perspective. You always have to have the lowest cost of business operations possible, so you can have a margin and continue to grow, expand and do what you need to in the marketplace. But from an environmental perspective, you have to do what’s right up front and every day.  

Can you tell me about your community programs, like the compassionate program 3 Bros Grow started during the pandemic?

We want to support the community that’s supported us. Any company can make money, but it is important to give to the community that supports us. We take a portion of our proceeds during a month and give that to a local nonprofit.

When COVID-19 came around, we decided to start a compassion program for people who were struggling. We reached out to a lot of the vendors we work with and we had an overwhelming response; they donated products to us, and we donated it to our less-fortunate customers. Not just cannabis products — we donated large amounts of food to the community, too. We did the same thing when the fires came; we reached out to a lot of our vendors and created a compassion program.

3 Bros grow is committed to supporting the community.

We also support minority-owned companies and local brands that are trying to get in the market. We’ll bring their product in, give them some shelf space, get them some attention through our social media platforms and, most importantly, try to give them additional margin on their products. We truly believe that it’s not just about growing our business – it’s about supporting the industry. It’s about making the industry better.

In your opinion, what’s the most important thing that needs to be addressed when talking about cannabis?

Educating people that cannabis is not a harmful thing – it’s really a helpful thing. I have friends who are veterans who treat themselves for PTSD with cannabis. I have friends who are senior citizens that treat themselves with cannabis for pain. I have friends who treat themselves for anxiety. I have friends that have weaned themselves off major opiates and other addictions by using cannabis and other cannabinoid products.

Cannabis is a crop you can grow in a really sustainable manner and deliver it into local markets where it creates local jobs. It helps people. It’s a healthy product. That Reefer Madness type of mentality has really been politically driven in the past and comes from corporations and the government — they want to keep this plant out of the people’s hands, unfortunately.

How do you think the cannabis industry as a whole can be better?

One thing the industry doesn’t do very effectively as a collective group is get together to push legislation that actually supports our industry. As a united industry, we should be reaching out to the political parties, to demand the legislation that we need that will allow us to continue to thrive and scale. There are still too many people who are focused on their own operations and aren’t spending time thinking about the big picture.

Cities, Counties and States want the sales tax revenues, but they don’t want to create the banking and infrastructure support that’s required for the industry to evolve. You can’t bleed tax money from the cannabis industry but also not have the legislation that supports it. It’s counterintuitive and counterproductive.

The cannabis industry pays a lot in tax, and at the same time think about the job creation that it brings to the community. It’s huge. Somewhere between 250-350,000 jobs have been created in the last few years. The only other industry that’s been on par with that has been the renewable energy industry. But unlike other verticals, we’re not supported, and we don’t have a united voice from the political perspective that will push the legislation that should be in place.

The amount of compliance we have to go through on the banking side means spending several thousand dollars a month in banking fees, cash pickup fees, and everything else. We’re fortunate that we actually have a bank account. Just recently, we’ve been able to start taking electronic payments. But in order to do that, we get charged a 3.5 percent transaction fee that we have to pass on to the consumer. In any other industry, you’d have a normal credit card system that would be half a percent, or one percent — maybe 50 cents. But there’s hardly anyone in electronic payments that wants to deal with you. We’re in the middle of expansion, so we’re talking to multiple different finance groups and capital groups. If this were any other industry, we could go out and get a regular credit line, pay a couple of percent and get a credit line of a couple of million dollars, no problem. In this industry, that doesn’t exist.

What’s next for 3 Bros Grow?

We’re continuing to expand. We’re doing some collaborations with some large brands. We just signed an agreement with Sherbinski to cultivate and manufacture some product for them using our environmental approach.  We are working with a couple of their genetics and bringing them to the products to the market that shows the climate-positive impact. We’re also working with some other brands to make create new products that come into the market in a sustainable manner.

Finally, what are three things it takes to be a cannabis entrepreneur?

You have to be able to tolerate pain; you have to be able to jump through hoops, and you have to be compassionate and, in our opinion, serve the community.

If you’re in Santa Cruz, be sure to swing by the 3 Bros Grow dispensary.

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