To Understand the BC Bud Bu$ine$$, go to New York

Bob’s Boys December 8, 2014 Issue of The New Yorker

All Natural

By Andrew Marantz

 Photo is Brendan Kennedy, CEO, Privateer Holdings, your major Canadian (medical) marijuana supplier

“My father was the first entrepreneur in the family,” Rohan Marley, the sixth of Bob Marley’s eleven children, said the other day. “He started his own record label, his own restaurant. He knew that, in order to give something back to the people, he had to create. You can’t be no philanthropist, no Warren Buffett, unless you make something first.”

Rohan, who is forty-two, is also an entrepreneur. He has a leadership role in several of his family’s businesses, including House of Marley (headphones, speakers), Zion Rootswear (T-shirts, onesies), and Marley Coffee. The family’s newest venture, which will launch next year, is called Marley Natural. “It’s a particular plant,” Rohan said, of the company’s inventory. “One that grows naturally next to the mango tree, the mint, the paprika. The Hindu sages speak of it. The rabbis speak of it.” It is marijuana.

Marley Natural is a partnership between the Marley estate and Privateer Holdings, “a private equity firm shaping the future of the legal cannabis industry.” (Privateer owns one of the largest providers of medical marijuana in Canada.) In a video on MarleyNatural.com, a camera rushes toward verdant mountains. “He advocates for the positive power of the herb,” a voice-over says. Bob Marley, in archival footage, flips his dreadlocks. The logo is a Lion of Judah between two green leaves. 

Rohan, who recently shaved his dreadlocks, wore a ruffled white shirt and a porkpie hat. He sat in the company’s new office, on the Bowery. Around the table were Brendan Kennedy, the C.E.O. of Privateer, and James Estime, Marley’s valet. “Three Little Birds” played on a House of Marley stereo. “James, turn the music down,” Rohan said. Estime, a burly man wearing a winter vest, picked up Marley’s iPhone and lowered the volume.

Marley grew up in Jamaica, and moved to the U.S. at the age of twelve. He was a star linebacker at the University of Miami, even though he was shorter than most of his teammates, who included Ray Lewis and Dwayne (the Rock) Johnson. (“Bob’s boys, we’re not scared of tall mountains,” Marley said.) Later, he toured with the Melody Makers, his siblings’ reggae band. “I was practicing to become a drummer,” Marley said. “Unfortunately, at that time I was with a woman who thought my drumming was shit. She killed my spirit to be a musician.” Her name is Lauryn Hill. They are no longer together. In 1999, he bought a coffee plantation in Jamaica.

Meanwhile, Kennedy got an M.B.A. from Yale and worked for an affiliate of Silicon Valley Bank. “My job was to study niche industries,” Kennedy said. “One day, I heard a pitch from a company in the medical-cannabis space, and I went, ‘This is a forty-billion-dollar market, and no one’s taking it seriously.’ ” He left the bank and started Privateer.

“We’d been approached by one million people about selling Bob Marley pipes, lighters, you name it,” Marley said. The Marleys turned them all down, until Creative Artists Agency, which represents the family, set up a meeting with Privateer. “When I met this guy”—he gestured toward Kennedy—“I knew: This is the man.” Kennedy shrugged appreciatively.

“We’re looking at four to six botanical strains, at first,” Kennedy said.

“The quality of the herb is very important to us,” Marley said. Marley Natural plans to sell smokable cannabis in countries where it is legal—the Netherlands, Uruguay—and, perhaps, in Colorado, Washington State, Oregon, and Alaska. “We’ll also offer a line of topical creams,” Kennedy said.

A Privateer employee interrupted with a bit of news: the Oxford English Dictionary had just named “vape” the word of the year. A plan was formed: a trip to a nearby vaping lounge, where e-cigarettes are sold and sampled. Marley Natural plans to carry smoking accessories, and Kennedy believes in market research.

“You guys go,” Marley said. “It’s too cold for that shit.” Eventually, he was persuaded. Estime helped him with his coat.

At the Henley Vaporium, in Nolita, Marley sat at the “e-cig bar” and browsed a menu of flavors—Psychotherapy, Stop and Frisk, Cereal Killa. Justin Haber, the “vapologist” on duty, took apart an e-cigarette to show how it worked.

“Can you smoke anything you want out of that?” Kennedy asked.

Haber stiffened. “Hypothetically, if you had the proper—why are you asking?”

“Don’t worry, brother,” Marley said. “We’re starting a company, selling the herb aboveboard. Called Marley Natural. I’m one of Bob’s boys, you understand?”

Haber arched his brows. “All legal?”

“Hundred per cent,” Marley said.

“In that case, fuck yeah,” Haber said. “A couple drops of hash oil in the tank, you’re good to go. Just be careful—that shit hits you like a Mack truck to the face.”

Marley laughed. “Let me try that American Pie flavor, brother,” he said.

4 PHARMACIES (let's call them DRUG STORES) almost $3Million from PHARMACARE for METHADONE

The B.C. government is taking steps to crack down on problem pharmacies, including those that rack up PharmaCare payments by catering almost exclusively to methadone patients.

That practice has helped make methadone and its associated fees the second-biggest drug expense for B.C.’s drug plan and resulted in clusters of methadone-dispensing pharmacies in parts of Surrey and Vancouver’s Downtown Eastside.

Under a new rule that takes effect June 1, pharmacies will have to re-enroll with PharmaCare, B.C.’s provincial drug program, to charge the plan for medications and dispensing fees. As part of that process, pharmacy owners will have to disclose previous regulatory problems and ownership details.

Pharmacies can make almost $6,500 a year in fees per patient dispensing methadone and up to an additional $13,800 a year dispensing other drugs to the same patient. The hefty amounts were noted in a review that was prepared for the Ministry of Health in January – a copy of which was obtained by The Globe and Mail.

“Until this regulation, it could be hard for the ministry to deny or cancel the enrolment of a pharmacy that was taking advantage of vulnerable patients, or breaking PharmaCare’s billing rules,” Ministry of Health spokeswoman Cindy MacDougall said in an e-mail. “It was also hard to make sure pharmacies weren’t employing or owned by people who had previously broken PharmaCare billing rules or lost their licence to practise pharmacy.”

The new enrolment regulation falls under the Pharmaceutical Services Act of 2012 and was enacted last November and so has been on the horizon for some time. The January review stated that most people on methadone – which is prescribed to treat addiction to heroin or other narcotic drugs – are on other medications, creating a powerful financial incentive for pharmacists to dole out methadone and other medicines on a daily basis.

B.C. features one of the highest fees in Canada for dispensing the drug, at $10 a day, and is only one of three jurisdictions in Canada that provides a fee – $7.70 a day – for witnessing ingestion. By comparison, Saskatchewan pays $3.50 a day and the federal Non-insured Health Benefits Program pays $4.60 a day for a witnessed ingestion.

The review said methadone-related PharmaCare costs have grown by an average 7.6 per cent a year since the methadone payment program was introduced in 2001 and now make up the second-highest drug expense for PharmaCare, accounting for $44-million in costs last year.

Professional fees – for dispensing and witnessing ingestion – account for about 88 per cent of that amount.

B.C.’s methadone maintenance program was set up in 2001 to improve access to methadone treatment for people around the province. The Ministry of Health, the College of Physicians and Surgeons of B.C, and the College of Pharmacists of B.C. each oversee different aspects of the program.

In 2010, the Ministry of Health and the College of Pharmacists ran a joint investigation of Lower Mainland pharmacies that looked into issues such as improper billing and inducements to customers. In an update, the province says six pharmacies lost their PharmaCare access and subsequently closed, one pharmacy was sold and one case is still in process.

Clusters of methadone pharmacies have popped up in several areas, including parts of Surrey and Vancouver’s Downtown Eastside. That neighbourhood contains four of the 20 highest-billing methadone pharmacies in the province; together, those four pharmacies received $2.9-million in PharmaCare payments, most in professional fees, last year, the review states.

One methadone client, who gave her name as Ariana, said she is now dealing with a well-run pharmacy that does not offer inducements, which can include things such as bus passes and coupons for fast-food restaurants.

That has not always been the case. Saying she has been on methadone for 10 years, she named one pharmacy that paid her $20 a week to fill her methadone prescription and $5 a week for each of her three other medications.

“They are preying on us, who are in poverty – and they get rich,” Ariana said.

The January review cautioned against any quick changes, saying methadone maintenance treatment is complex and “any hasty changes to its service delivery, [Methadone Maintenance Payment Program] or otherwise, could have immediate and detrimental impact on methadone patients – an already extremely vulnerable population.”

The review said consultation with stakeholders would begin in early 2015.

YES, MARTHA...THERE ARE YOUNG PEOPLE WHO ACTUALLY DON'T SMOKE POT

THE REAL FUTURE OF MARIJUANA - IT'S ALL BIG BUSINESS, ALL THE TIME

This article, written by Jack Kaskey for Bloomberg, was re-printed in the business section of today's Vancouver Sun.

Mr. Hagedorn, the CEO of Miracle-Gro, has children and is supportive of hospitals and other good deeds in this hood. But when it comes to the billions he might take home on pot, he says he must be "agnostic," as if a non-belief isn't itself a belief. I guess his morals stop at the ATM.

Growing up on New York’s Long Island, Jim Hagedorn would watch TV and see reports of marijuana busts. In the background, he’d sometimes spot bags of Miracle-Gro, the garden fertilizer invented by his father, Horace.

That recollection is particularly apt as the younger Hagedorn, now 59, considers plans for the company his father helped found, Scotts Miracle-Gro Co., the world’s largest maker of lawn-care products. This month, Scotts bought a leading supplier of hydroponics, a technology that allows indoor cultivation of everything from tomatoes to pot without soil.

In the future, Hagedorn said, he plans more acquisitions in the hydroponics field, potentially building a business that can generate revenue of $1 billion-plus a year as more U.S. states legalize recreational and medicinal use of marijuana.

“We want to take these high-growth businesses, consolidate the space and kind of legitimize it, without changing it,” said Hagedorn, a former F-16 fighter pilot who has been chief executive officer at Scotts since 2001. “These could be important businesses in America.”

Revenue growth in hydroponics is twice the average in the lawn and garden industry, he said in a telephone interview, with wider margins and year-round demand.

The timing may also be right for getting into pot.

Four states have legalized recreational use so far and 13 others may vote next year on whether to join them, according to Viridian Capital & Research, a marijuana-focused investment firm. Republican Senator Rand Paul of Kentucky last month introduced a bill to end the federal ban on medicinal use, four weeks before announcing his presidential candidacy.

Psychological Dangers

If the momentum behind legalization keeps up, the prize for Scotts and other legit companies could be immense. While the U.S. has $2.5 billion of legal pot sales a year, illegal sales are as much as $60 billion, according to Viridian. That implies a potential market worth more than 20 times Scotts’ total revenues last year.

“Scotts can find themselves having the biggest growth they’ve experienced in decades coming from the nascent home-grow industry,” said Leslie Bocskor, a legalization advocate and the managing partner at Electrum Partners, a Las Vegas-based advisory firm focused on the legal cannabis industry. “It’s a very smart play.”

Cannabis is classified by the federal government as a Schedule 1 drug, meaning it’s considered among the most dangerous psychologically and physically, along with LSD and ecstasy. Hagedorn says the hydroponics business is strongest where state pot laws are the most favorable -- California, Washington, Colorado and Oregon.

Tread Lightly

Hagedorn knows he needs to tread lightly. The pot industry is still comprised largely of small, independent players. They’re the kind of people naturally distrustful of large corporations such as Scotts.
“Do we need to be the big giant making a lot of noise in the space when we are just becoming part of the family?” Hagedorn said. “I think the answer is, quiet is good.”

Scotts said April 2 it bought closely held General Hydroponics Inc., which sells nutrients used in hydroponics, and a separate soil company for a combined $130 million.

The deal is probably the largest takeover the pot industry has seen so far, according to Electrum’s Bocskor. It was the biggest acquisition in 16 years for Scotts, whose stock has gained 10 percent over the past year. The Standard and Poor’s Midcap Materials Index is up 1.2 percent in the period.

Hydroponic Gardens

Scotts made its first foray into hydroponics in 2013 via a partnership with AeroGrow International Inc., which sells compact growing systems for home gardeners. Scotts later bought a stake in the small company.

General Hydroponics, which has about $40 million of sales, was founded almost four decades ago by Laurence Brooke. A hydroponics pioneer, he still sees the technology primarily as a tool to feed the world rather than a way to grow pot away from the gaze of law enforcement.

“The people who wanted to grow cannabis went to our technology because it is second to none,” Brooke said in an interview.

Hagedorn is also keen to point out that hydroponics is about more than marijuana. Much of the demand is from young, city dwellers who are setting up small hydroponic gardens to grow fresh, pesticide-free vegetables and herbs for their families, he said.

“To some extent you have to be agnostic about how people use the product,” Hagedorn said.
If the legalization movement stalls, Scotts can always fall back on the kind of customer satisfied with using hydroponics to cultivate lettuce, herbs and other produce, said Michael Swartz, an analyst at Viridian Capital.

“The downside is mitigated in the way this product is used for growing other things,” he said. “But the potential is high as the cannabis market loosens.”

PERSONAL STUDIES REVEAL SOME HOME TRUTHS

We have a new DPNC Member who lives in Toronto and, as a young man interested in addictions issues, is putting himself on a steep learning curve by investigating people and places involved in addictions. 

His name is Amir Parekh.

Please read this excellent brief report. and, if you feel so inclined, congratulate him for his observations.

Business, Not an Addiction treatment Center

On a Sunday afternoon, on March 29, 2015, I took the liberty to explore a methadone clinic. A quick Google search pulled up ACT methadone clinic. I headed east on Bloor street to 1288 Danforth Ave. The street was not busy when I arrived at the clinic. It was not hard to miss. “Now Accepting patients”, “No waiting list” caught my attention almost immediately as I drove past it.  

I walked in to explore the atmosphere of a methadone clinic. To my surprise, it was a barren and blank 100 sq. ft space with 9 chairs. From the moment I walked in I had a feeling of being in a business, not an addiction treatment facility. There were no brochures, posters, reading materials, or counselors readily available. The addict/customers were lined up at the window and business was booming. I waited in the waiting area for 15 minutes listening to what people were saying and doing. Most were impatiently waiting for their fix. After not being greeted and seeing no clear instructions I walked up to the pharmacy counter and explained to the pharmacist  “I am a student, doing some research and wanted to take 5 minutes of your time to discuss what you are doing here”. “Go to the other window” the man expressed, as he was not interested in speaking with me. 

The second window had a receptionist who was not very helpful, and was bitter in attitude.  I explained to her the purpose of my visit and she requested that I receive ‘written consent’ from everyone in the clinic, before we could discuss the clinic. As this was clearly not required, I kept digging by asking very general questions, until she got frustrated and called over a manager. The regional manager, who has had no addiction counseling experience or training, explained the 2.5 year cycle that is prescribed to addicts. They start with supervised dosage in the clinics, and as time lapses the addict is able to take their medicine home. The concentration of the dosage is lowered with time and regular urinal tests are performed to monitor the progress of the treatment. What’s unique about ACT methadone clinic? Well, it cycles its patients of methadone clinic in comparison to other methadone clinic which keep their patients on methadone for life which can be a costly endeavor. “Most of the information is available on the website” ended the brief interview.

Most addiction treatment services such as Alpha House or Narcotics Anonymous rave about their success and foster a very busy, open, loving and caring environment. Everyone is welcome and every one could and should share. This is meant for the addicts to not only replace their addiction with meaningful activities but to face their demons that lead them to the dark path of addiction in the first place.  This translates into an addict developing core strengths, a strong foundation and a very deep and meaningful support structure. In the few interviews I have conducted with addicts, one theme is a constant. “Okay. I stopped doing drugs, Now What?” The “Now what” can be the answer between relapse leading to irrational behavior, criminal in bulk, or a clean, sober and productive life. 

A study conducted to analyze costs for patient clinic visits, laboratory test for urine toxicology screening and methadone scripts for 9479 patients in Ontario yielded the following results. The data set represented information from January 1, 2003 to December 31, 2009."There were 6,425,937 patient-days of treatment and the total cost of all treatment-related services was approximately $99,491,000. The total cost was comprised of physician billing (9.8%), pharmacy costs (39.8%), methadone (3.8%), and performing urine toxicology screens (46.7%). The average cost per day in treatment was $15.48, corresponding to $5651 per year if patients were to remain in treatment continuously.”^[1] As of 2009 it cost $5651 per year for an addict to be on methadone, but it is estimated to be at $8476 per year, a 50% increase, as of 2015. In essence a good (Non-Lifer) methadone clinic that plans to “rehabilitate” an addict in Ontario provides a treatment plan that costs $21,190 to the tax payers and takes 2.5 years. 

In conclusion, though the government believes methadone clinics to be an effective route to heal addiction, there simply is no foundation or support that these programs provide thus making the results of these programs temporary at the very best. Mostly, if addicts don’t relapse they will likely be addicted to methadone just like any other drug they were previously addicted to.  These clinics lack oversight, control and regulation. The negative impact of methadone clinics is well documented and this is a going concern for the addicts and society in general. Our precious tax dollars ought to be allocated to programs and initiatives that are proven to work, instead of experimenting with programs such as Methadone clinics that are designed to make addicts comfortable and are based on ideologies instead of an evidence based approach which requires hard work, Love and Discipline.

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^[1] S. Zaric, G., W. Brennan, A., Varenbut, M., & M. Daiter, J. (2012, July 11). The cost of providing methadone maintenance treatment in Ontario, Canada. Retrieved April 14, 2015, from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC3626407/

HERE'S A FUN LITTLE VIDEO ABOUT MONEY AND MARY JANE

CONGRATS TO VISIONQUEST AND THEIR NEW LOGAN LAKE FACILITY

Help, not handcuffs: Former B.C. jail converted to rehab centre

Jon Woodward, CTV News, Reporter

@CTV_Jon

Published Saturday, April 11, 2015 5:02PM PDT
Last Updated Saturday, April 11, 2015 7:25PM PDT 

 

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A former jail in B.C.’s interior has been converted into a drug rehab centre to treat criminals from the Lower Mainland.

The provincial and federal governments spent $620,000 to convert cells to bunkhouses and classrooms, in the name of curing the region’s most prolific offenders of the addiction that often drives their crimes.

“It’s an unbelievable feeling to see some of these individuals who have been in and out of jail their whole life and turn their life around, it’s a great thing,” said former RCMP Deputy Commissioner Gary Bass.

Bass is on the board of the VisionQuest Recovery Society, which will operate the facility in Logan Lake, B.C., about 350 km northeast of Vancouver.

The camp used to house prisoners, and now will have space for 50 men with mental health problems and addictions with the idea of keeping them out of jail.

VisionQuest operates several facilities in the Lower Mainland. Operators said prolific offenders in Vancouver are often stealing cars or committing other crimes in order to feed their drug habits, and if the addiction can be treated, the motivation to commit crime disappears.

“We’re giving them the tools to get out of the system,” said VisionQuest Executive Director Jim O’Rourke.

That’s what happened to Rick Edwards.

“About 6 years ago I got myself messed up with drugs, a couple B&Es and I got court-ordered to VisionQuest,” said Edwards.

“I finished the program, and slowly climbed my way up,” he said, adding he’s now the assistant director of VisionQuest.

The facility will be called “VQ - The Lake” and will be part of the plan to reduce crime in Metro Vancouver, said Burnaby RCMP Staff Sergeant Major John Buis.

“Our job is not to put people in jail, our job is to keep people safe,”Buis said. “If we can do that through a program of recovery, everybody wins.”

Housing Minister Rich Coleman said he hopes the facility will make a difference.

“This is about having a heart and caring about humanity and not putting them in a box. It’s about putting them somewhere where they can succeed,” Coleman said.