On October 17, 2018, Alternate Health announced that the Company had obtained permits for cannabis manufacturing, distribution, cultivation, and processing, and leased a 14,800 square foot facility in Humboldt County, California. With stricter state regulation coming into effect in January 2019, Alternate Health sees a unique opportunity to acquire assets, inventory and significant market share from “grey market” businesses that do not hold valid California licenses.
With the initial $20 million, Alternate Health plans to ramp up operations at the Humboldt County facility and begin developing its signature Humboldt Ave. Cannabis artisan brand. In addition, the Company will produce manufactured products, including cannabis concentrates and infused edibles for wholesale and retail delivery. Distribution will target Greater Los Angeles and rapidly expand across the state. Alternate Health is currently in the process of retaining highly experienced industry professionals to lead distribution and manufacturing operations with state-of-the-art supply chain and inventory management solutions.
Alternate Health already has established relationships with a significant number of top cannabis cultivators in the Humboldt County region and expects to secure exclusive deals for up to 50,000 pounds of cannabis flower with an estimated retail value of approximately $160 million.* The Company will also leverage its relationships with dispensary locations in Los Angeles County to establish strong retail distribution channels in the most dynamic cannabis market in the world.
*Based on estimates from the California Growers Association’s report, Cumulative Tax Analysis, published in March 2018.
“The California adult-use cannabis industry is at a turning point as the state seeks to legitimize the industry and limit black market and grey market sales,” says Dr. Murphy. “With $20 million in initial funding and the opportunity to access additional capital, this agreement strategically positions Alternate Health to capture market share in the cannabis distribution and manufacturing sectors while continuing to develop additional business verticals.”
Terms of the Agreement
Under the agreement, Agincourt Ventures, LLC will loan Alternate Health $19,600,000USD in two tranches of $9,600,000 on or prior to November 30, 2018 and $10,000,000 on or prior to December 20, 2018. Interest on the loan will accrue at a rate of 5.102% per annum and a maturity date of 12-months from the date of the closing.
Agincourt Ventures, LLC will also purchase one million (1,000,000) shares of Alternate Health Corp common stock at a purchase price of $0.40 per share, for an aggregate purchase price of $400,000USD as part of the agreement.
CALIFORNIA: The Ganjier has announced the call for entry for the fourth annual Golden Tarp Awards. The competition will take place Saturday, November 18th, at The Mateel Community Center in Humboldt County, and will feature, for the first time ever, a multi-camera feed live-streaming broadcast of cannabis competition judging. Flower entries, due by October 26th, are being accepted at drop-off locations throughout Northern and Central California.
The Golden Tarp Awards is California’s premiere light deprivation cannabis competition respected for its exceptional testing standards. Light deprivation, aka ‘light dep’, is the process of forcing plants to flower with sunlight in a time of year that is not normally the flowering period of the sun’s natural lighting cycle. The result is exceptional quality cannabis with high cannabinoid and terpene levels within a shorter time frame outdoors. Consumers benefit from the nutrient-richness of using natural sun and soil, and producers benefit from more yields a year. It’s also less expensive than indoor cultivation.
Humboldt County lies within the depths of the Emerald Triangle, behind the redwood curtain of Northern California’srainforest. Known to most as the epicenter of outdoor cannabis production, this incredibly lush world of misty groves, offbeat towns and protected wildlife, is the heartbeat of the cannabis industry. The livestreaming will enable cannabis enthusiasts and cultivators from around the world to learn directly from experts from the comfort of their phones.
“We created the Golden Tarp to recognize producers who grow phenomenal light dep cannabis flowers and have developed best practices for healthy, quality cannabis for generations,” said Kevin Jodrey, Cultivation Director of Wonderland Nursery, and co-founder of The Ganjier. “Our goal is to recognize these farmers while introducing consumers to the importance and benefits of light dep cannabis grown outdoors with sunlight and healthy nutrient-dense soil that is free of chemicals, pesticides and pollutants.”
CALIFORNIA: A collective of Humboldt County, California cannabis farms have announced an alliance to create America’s craft cannabis brand: Humboldt’s Finest.
CALIFORNIA: Yesterday, the Board of Supervisors approved offering a Commercial Cannabis Activity Registry for medical marijuana growers interested in getting permits to grow under new laws which just passed in California. These laws offer what some call a “grandfathering clause”—if a cannabis grow or business is in “good standing” with the county it is in by January 1, 2016, then it is in a more favored status for getting a state license under the new rules.
The law is unclear and there has been a scramble to understand what this means particularly to growers. Some believed it meant that growers had to legally sell a medical marijuana pound before January 1st of this year. However, the Humboldt County Supervisors believe their new registry will satisfy this requirement under the new laws. Or, at least, put the grower in a position to argue that their farm is compliant with regulations and meets County standards.
The registry is not a license to grow but more like a place holder in line to allow a grower to prove they meet standards. This is an attempt to make sure local farmers are not left behind big Southern Californian dispensaries, say activists.
CALIFORNIA: Last Tuesday, the Humboldt County Courthouse in Eureka, California was swarming with potheads. A pro-cannabis rally had been organized by State Assemblymember Jim Wood, who knows how to grab headlines: In July, Wood walked onto the State Capitol floor carrying a live marijuana plant and asked his colleagues to regulate the heck out of it.
The very public pleas from Wood and others were finally heard: Three marijuana industry regulation bills were signed by Governor Jerry Brown on Friday. For the first time in California, there will be comprehensive rules governing the entire cannabis industry, with enough money to fund a large-scale effort at assessing and lessening the environmental impact of growing marijuana—including the way growers use water.
“Cultivators are going to have to comply with the same kinds of regulations that typical farmers do. So they’ll have to comply with all the environmental laws. They’re going to have to manage and procure their water in the same way and they’ll have to deal with pesticides the same way,” Wood said. “It’s going to be treated like an agriculture product.”
CALIFORNIA: The California Board of Equalization says the medical marijuana industry isn’t paying the taxes it owes.
The Board of Equalization staff and board members -including George Runner recently met with marijuana dispensaries, nurseries, and growers in Humboldt County.
Runner says the County has begun to add marijuana growers to the tax rolls by establishing a permitting and licensing process.
“They’ve got concerns with water permits, with business licenses with seller’s permits and Humboldt County is doing good work trying to figure out how to bring those people into the normal business stream.”
CALIFORNIA: The Board of Supervisors voted on Tuesday to continue a ban on new medical marijuana dispensaries in unincorporated areas of Humboldt County until an ordinance to regulate the businesses is developed and approved.
”I want to make it clear that my intent is to only have it there until we have the rules in place,” 4th District Supervisor Virginia Bass said.
In a 3-1 vote, with 3rd District Supervisor Mark Lovelace dissenting and 2nd District Supervisor Estelle Fennell absent, the board directed county counsel to work with the board’s medical marijuana subcommittee on a way to limit the number of dispensaries and where they would be allowed to set up shop. [Read more…]
BY EMILY BRADY Excerpted from “Humboldt: Life on America’s Marijuana Frontier”
CALIFORNIA: Late one morning in the winter of 1970, when Mare Abidon was a young woman of thirty, with blond hair that streamed down her back, she stood outside her San Francisco apartment holding a cardboard box and prepared to say good-bye. The box in her arms brimmed with the remnants of the life she was leaving behind, and all the lives that came before that: art supplies from school, horn jewelry purchased on the street in India, and batik granny dresses from her years in the Haight. Len was waiting in his truck nearby. Brooding Len with the dark beard and strong arms, who had made Mare’s heart skip a beat the first time she laid eyes on him years ago at the post office. [Read more…]