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ForwardGro has to pay fine for using banned pesticides on cannabis crops




ForwardGro has to pay fine for using banned pesticides on cannabis crops

The Maryland Medical Cannabis Commission ruled Tuesday that a connected marijuana grower violated state regulations by utilizing illegal crop-protection pesticides and ordered the company to pay a $125,000 fine, problem refunds on particular goods and function below a two-year predetermined period.

The commission also decided following a five-month analysis which ForwardGro LLC had failed to make sure workers utilized sufficient personal protective gear when using pesticides and failed to deploy video surveillance of its own harvest as required by regulations. Moreover, the commission levied staff changes in the business, which will be co-owned by Gary L. Mangum, a prominent supporter of both Larry Hogan who served on the sheriff’s inaugural poll and transition group.

Following a Nov. 8 settlement assembly between ForwardGro along with the cannabis commission, ForwardGro CEO Michael F. McCarthy resigned and Mangum took over as the organization’s acting upper officer, as stated by the consent order. The commission has also needed McCarthy to”divest all his ownership interest” from the business within 30 days.

Mangum, who hadn’t previously engaged in the business’s day-to-day actions, signed the commission order, formally acknowledging”the validity of the Consent Order” and also the organization’s alliance.

The organization had denied the allegations and called them”an assault on the enterprise.”

In a statement Tuesday, Mangum explained: “We all understand that we fell short of their expectations which we put on ourselves associated with compliance and which are set forth in regulations.”

“We must and will do better — for our clients, patients, business, and our workers,” he added. “We’re profoundly committed to instituting the modifications required to develop consistent, high quality medical cannabis at Maryland. We’ve heard from this experience and are utilizing the lessons learned to create a stronger business for the long run ”

The research into ForwardGro started in July when a complaint was registered with the commission which included sworn statements from three former workers in the organization’s Anne Arundel County rising centre. The complaint was filed by the Maryland Ethical Cannabis Association, a recently formed group of cannabis businesses which oppose pesticide usage in developing plants.

Ashley Colen, association president and also the ruler of a dispensary permit, stated she ceased selling goods out of ForwardGro’s plants after learning of the allegations. Colen, co-owner of this Ash+Ember dispensary at Centreville on the Eastern Shore, said a number of her clients reported side effects like burning eyes and throats.

Also Read: Large cannabis cultivation and delivery business to open in north Sacramento

In October, the commission issued an order to obstruct the selling of ForwardGro goods by telling all cannabis dispensaries to”please quarantine these goods.”

The commission’s grip on earnings of ForwardGro merchandise was raised.

“From the start, all ForwardGro merchandise available for sale in dispensaries and to chips has passed rigorous pesticide testing,” the firm said in its announcement. “Though no ForwardGro goods were found to pose any known danger to individual safety, ForwardGro is offering refunds for the return” of their organization’s”blossom and pre-roll products generated before July 1 which stay from the stocks of cannabis shops. Patients may also receive a refund when their goods are”still in their unopened, original packaging,” the firm said.

The analysis — that included interviews with 17 current and former ForwardGro workers — disclosed “powdery mildew and undesirable insects were issues” in ForwardGro’s centre and the firm employed”certain unauthorized harvest protection agents to take care of clinical cannabis plants,” in accordance with this consent order.

The commission’s researchers discovered that 15 pesticides might have been employed on ForwardGro solutions. Six of the chemical agents were then allowed by the country’s Department of Agriculture but were banned at the time that the business was using them.

The business must eliminate all its cannabis product generated before May 31 and declare it will take any returns and will make concessions within 10 days. The order also needs ForwardGro to attach a note on all its goods produced before July 1 which says they”might have been subjected to particular unauthorized crop protection agents, the health ramifications of that aren’t known.”

The commission also issued a public security statement regarding unauthorized pesticides.

“The potential health effect of consuming cannabis products containing unapproved pesticide residues is unknown,” according to the announcement. “Short- and – long-term health effects caused by inhalation exposure to these contaminants may exist based upon the length, frequency, amount of exposure, route of exposure, and health state of the consumer. Consumers should contact their doctor or registered supplier with related queries and concerns”

Also Read: MJardin Group declares Medical Cannabis Research Investment in Spain

The organization’s announcement said it is dedicated to its”integrated pest control program, which comprises beneficial insects to keep control of damaging insects” and also to”using just those crop protection agents approved for use in Maryland.” ForwardGro is posting online all its certifications of an investigation made by independent testing labs.

Investigators found that at August 2017 many cannabis plants in ForwardGro’s centre were shot out of its secured place. “At that time there were not any security steps to prevent unauthorized access to such crops” as required by regulations, according to the arrangement’s findings of fact. The organization”neglected” to track the relocated plants from movie as required.

ForwardGro will now be subject to stricter and regular reviews throughout its probationary period and isn’t permitted to acquire any new licenses in the state. It has to implement new safety, worker security and pesticide spraying processes.

Along with compelling McCarthy to divest from the business, the commission has demanded ForwardGro to employ a new head grower that has to be pre-approved from the commission and also to enlarge the part of the organization’s compliance officer.

The business said it would also run”regular internal audits headed by a compliance staff” and might improve staff training on country regulations and enhance tools to permit workers to report”extra-curricular actions,” based on ForwardGro’s announcement.


Is Charlotte’s Web in Trouble After Recent CBD Warning by FDA?




The cannabidiol industry is set towards an impressive expansion. According to a research firm forecast, CBD sales could reach $20B by 2024, almost tenfold from 2018’s sales of $1.8B. It could be attributed to upward trends in the industry, and as well as the great reception to CBD being a safe option compared to marijuana due to its low tetrahydrocannabinol (THC) content. THC is the substance responsible for the high in weed.

However, the Food and Drug Administration (FDA) has issued a warning recently that stated how some CBD-based products could cause serious health problems. This statement might affect one of the leading CBD companies in the US, Charlotte’s Web Holdings.

CBD may not always be healthy

In a consumer update published by the FDA regarding CBD product use, the agency stressed that cannabidiol might be the cause for various health issues such as liver injury, change in mood, and alertness. CBD used with other depressants and alcohol may also cause drowsiness. The FDA added that the said side effects could happen even without the user noticing.

The agency also reiterated that the alleged therapeutic benefits of cannabidiol are mostly unproven, despite several sellers highlighting their products as having several health benefits such as anti-cancer and pain-relieving properties.

The FDA also reminded the public that there is still a lack of data as CBD’s effects on the body in the long term. It is something consumers should ponder about according to the agency.

Is Charlotte’s Web Affected?

Charlotte’s Web is one of the most well-known US-based cannabidiol companies in the country and abroad. It sells a variety of CBD-containing products such as capsules and oil. It claims the biggest US market share in the CBD industry, with its products selling at nearly 10,000 stores nationwide. Its strong retail presence aids in the expansion of the company’s market share. Can the FDA warning affect their numbers?

Most likely not, and Charlotte’s Web can still maintain its top market position. The FDA has sent out warning letters to companies selling CBD products with false promotional claims, but Charlotte’s Web was not included. In a conference call of Charlotte’s Web CEO Deanie Elsner regarding their third-quarter earnings, he specified that the company fully supports the FDA’s stance on unfounded claims and are working with their business partners to maintain the effort.

Elsner also mentioned that while the FDA has little issuance on regulations, Charlotte’s Web is ready to adapt as soon as new directives from the agency are released. He said that the company is currently progressing on its expansion plan, getting its infrastructure and capacity to catch up with its growth.

The company is rooting for the FDA to set a clear regulatory framework, especially for dietary supplements. Charlotte’s Web is positive that its product portfolio and distribution channels will expand as soon as it happens.

The CBD industry looks to persist despite the warnings, and the supply of products will unlikely dwindle. Charlotte’s Web and its growth will remain unaffected. For investors, it might be wise to keep in mind that the CBD legal landscape is still an unfinished course, so evaluating whether a company is worth purchasing shares from is important.

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China Cashes in on Cannabis Boom Despite Being Illegal in the Country




China Cashes in on Cannabis Boom

Marijuana is a dangerous narcotic in China, and being caught possessing it incurs a grave offense. However, this does not hamper the booming production of cannabis products in the region.

China has been growing hemp for textile and alternative medicine for many centuries and remains to be one of the largest top producers in the world. The giant’s footing in the cannabis industry has given producers an edge in the booming CBD craze. CBD or cannabidiol is a derivative of the cannabis plant that is now infused in virtually anything, from pet products to skincare serums.

The heart of the production

Yunnan, a province in China’s southwestern region, is the first to make industrial cannabis legal. The farm plots in the area are filled with tall hemp fields that span miles. The plant’s flowers and leaves are harvested by hand during the fall, sun-dried, and then turned into export quality CBD oil and powder. Yang Liu, manager of some hemp fields in Qujing, Yunnan, said that the cannabis industry looks to bring great benefit to him and the farmers in the future.

China holds 11% of the $800M worldwide CBD market last year, trailing after the US and Europe.

The industry is still maturing, but manufacturers and other key players in the CBD market are investing in land to increase hemp production. It may have existed for thousands of years, but hemp growing wasn’t adequately regulated until recently, with the government now being intimately involved in the development of the CBD industry.

Henri Sant-Cassia, a CBD advocate representing Cannabis Fund who tours Asia to find new CBD enterprises, exclaimed that China is moving into the cannabidiol industry at the speed of light.

Unbending regulations

Farmers in the US are also upping their hemp cultivation to cope with the rising CBD demand. This cannabis derivative is said to relieve anxiety and pain without causing a high that marijuana gives. The Brightfield Group predicts the CBD market to grow to a $23.7B industry by 2023.

Despite the astounding numbers, China’s stance on marijuana is unlikely to bend. If anyone is found to be harboring tetrahydrocannabinol (THC)-based products, they can be charged with a life sentence or worse, the death penalty. National Narcotics Control Commission deputy director Liu Yuejin said last April that China would strictly supervise industrial cannabis production amid its legalization in many countries.

Ingestible CBD is also regulated in China, which means that almost all hemp harvested and processed in China is sent overseas. It competes with other major hemp producers like Canada and the US for CBD market share.

CBD industry in China

The second province to legalize industrial cannabis farming is Heilongjiang, which is located along the Siberian border in the country’s northeastern area. Neighboring province Jilin is also poised to follow in their footsteps. Government officials are starting to encourage growers to consider hemp production, citing additional income and crop diversification as the benefits.

An influx of new companies entered China’s CBD industry recently, which Hanma Investment Group Co. Co-Founder Tan Xin believes will make it harder for newcomers to gain profit.

Since HMI started their cannabis venture in 2013, a kilo of CBD was valued at $50,000 when sold in the US, as stated by Tan Xin. In 2018, it fell to $6,000 and would most likely drop to $1,000 per kilo in 2020, according to him.

Nevertheless, Tan is positive that they can still cash in, provided that the price does not fall below the $300 mark since processing and labor cost less in China.

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Untested CBD-infused Products Could Pose Health Risks as Market Grows Stronger




Untested CBD-infused Products Could Pose Health Risks

Cannabidiol products have recently spiked in sales and availability, granted by its popularity as an alternative cure to anxiety and pain. However, medical authorities warn about the potential health hazards of CBD and the many unproven therapeutic claims of the said substance.

Cronos, a Canadian company, recently bought a $300M CBD company, 7-Eleven stores now have CBD-dispensing robots, and HempAmericana Inc. started a live e-commerce portal to foster online CBD sales.

Expert’s opinion

Dr. Dipesh Navsaria, director of the University of Wisconsin’s Doctor of Medicine-Master of Public Health Program, stated that cannabidiol might have numerous benefits, but most of these claims have not been tested for accuracy.

He cited the clinical trials of CBD for intractable seizures as the only benefit proven to be true. Intractable epilepsy is a kind of seizure that does not respond to therapy or any treatment. The CBD-containing drug, Epidiolex, is the only FDA-approved cannabidiol medication given for such cases.

Navsaria reiterated that several claims lack strong evidence for them to count.

Earlier this year, the FDA gave out warning letters to companies that sell new yet unapproved drugs that allegedly have CBD. Three of these firms are located in Florida.

CBD is widely available in stores and online, including big retailers like Walgreens.

Navsaria pointed out the lack of guarantee in terms of a product’s purity, and its active ingredients are what make it hard for medical practitioners to say yes to patients asking whether they can try CBD. It’s is the same dilemma they face for homeopathic remedies and herbal supplements, Navsaria added.

Research on CBD

Forbes revealed cases of people testing positive in urine drug tests from using CBD. This situation poses a risk for people whose jobs stipulate routine drug testing.

Natalie Schmitz, associate professor at the University of Wisconsin School of Pharmacy, studied the labeling accuracy for CBD products in her research. She stated that the literature related to CBD is limited and cannot support the claims of effectiveness.

She added that further research should be done to support all claims, including the benefits of CBD for pain and anxiety so that a conclusive statement can be made.

Some studies show how CBD can cause liver problems. There is also evidence of the substance causing several side effects like irritability, fatigue, and nausea.

Schmitz further stated that there is a need for FDA-approved guidelines for standardization and state-proposed quality measurements to help ensure that CBD products do not pose health hazards for the public.

Navsaria said that people should question products that are claiming to have several benefits without proper evidence. He cited profit motive as a drive for the proliferating CBD market. He believes that sellers are taking advantage of the trend to maximize sales, making it questionable whether these products are actually made to help people.

He further added that claims could easily be made, but there is little to no support over its factual value.

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