THE BLOG

21
Dec

Banking & Money Transfer for Cannabis Industry

We just returned from the Las Vegas Cannabis Business Convention. WOW! The cannabis space is evolving at about the same pace as the bitcoin – crypto universe!

Cannabis banking was a topic of GREAT Interest!

New credit unions, banks and a multitude of platforms are launched weekly. It’s a serious challenge to Blog about all of them on a daily basis.

  • An estimated 500 banks will work with medical marijuana companies, but the majority still won’t.
  • The cannabis industry will be a front-runner in adopting bitcoin as a safer alternative to cash.
Shop for Home Delivery of Medical Marijuana: CannabisCareClub.org

Shop for Home Delivery of Medical Marijuana: CannabisCareClub.org

New platforms like SinglePoint and POSaBIT are creating payment systems for dispensaries and consumers using bitcoin. A few new cryptocurrencies have been developed that focus on cannabis transactions, like PotCoin and HempCoin.

In California, meetings occur weekly between California state, banks and federal regulators on plans to enable banks to service the cannabis niche. Starting Jan. 1, 2018 it will be legal to grow and sell marijuana for recreational and medical uses in California.

The California green banking proposal? Basically, it boils down to specify 1 bank as a “central correspondent bank” that maintains accounts from other banks that are doing business with marijuana firms.

A cannabis retailer remits payment to a cannabis distributor for flower, wax, oil… the transaction would go from the retailer’s bank through the central correspondent bank, which would instantly clear payment through the distributor’s bank.

This unique cannabis clearinghouse for cannabis money would allow California to provide a compliance oversight by “assigning examiners to make sure special restrictions set by the federal government are followed, suspicious activity reports are filed and the number and scope of transactions through the central bank are tracked.”

In today’s cannabis environment, it’s even possible to offer cash intensive cannabis businesses the ability to accept secure payments electronically. We allow payments with a smartphone app, tablet or desktop computer. AMAZING!!!

Contact Jer@MyPotGuru.com for details.

 

03
May

Cannabis Extraction Opportunity-Orange County California

Yeah! We’ve just begun the process of moving our grow up the food chain to begin extraction. Our city here in Southern California recently passed specific, enabling legislation to authorize cannabis manufacturing – that includes extraction. Cannabis the flower is ultimately going to be a commodity. Millions of square feet of “grow” is onboarding as I write this.

Cannabis Extraction Orange County California

Cannabis Extraction

Manufacturing – specifically extraction – offers tremendous opportunities in today’s cannabis environment. And not only do we have the trim but more importantly, the talent to profit handsomely AND be of service to our large patient list of cancer survivors.

As you know, oil is produced by extraction of marijuana; usually the trim. After filtering and evaporating , a sticky resinous liquid remains.

A wide variety of solvents can be used for extraction, such as chloroform, dichloromethane, petroleum ether, naphtha, benzene, butane, methanol, ethanol, isopropanol, and olive oil.

We’re on our way…

 

09
Mar

Medbox: Charged by SEC for Securities Fraud

SEC Charges Marijuana-Related Company and Executives With Touting Bogus Revenues

The Securities and Exchange Commission today charged a California-based company and its founder with falsely touting “record” revenue numbers to investors and claiming to be a leader in the marijuana industry while some of its earnings came from sham transactions with a secret affiliate.

According to the SEC’s complaint, Medbox provided marijuana consulting services and claimed to sell vending machines known as “Medbox” devices capable of dispensing marijuana on the basis of biometric identification.  The SEC alleges that Vincent Mehdizadeh created a shell company called New-Age Investment Consulting to carry out illegal stock sales and used the proceeds from those sales to boost Medbox’s revenue.  Medbox allegedly issued press releases headlining the phony revenues as record earnings to legitimize itself as a viable commercial operation when in fact nearly 90 percent of the company’s revenue in the first quarter of 2014 stemmed from sham transactions with New-Age.  Mehdizadeh allegedly acknowledged in a text message that “the only thing we are really good at is public company publicity and stock awareness.  We get an A+ for creating revenue off sheer will but that won’t continue.”

Meanwhile, according to the SEC’s complaint, Mehdizadeh funded the purchase of a luxury home in the Pacific Palisades with proceeds from New-Age’s illicit stock sales.

The SEC’s complaint additionally charges Medbox’s then-CEO Bruce Bedrick with being complicit in the scheme and personally profiting. The SEC also charged New-Age and Mehdizadeh’s then-fiancée Yocelin Legaspi with unlawfully selling unregistered securities.  Mehdizadeh installed Legaspi as the supposed CEO of New-Age when he created the company.

“As alleged in our complaint, investors were misled into believing that Medbox was a leader in the burgeoning marijuana industry when the company was just round-tripping money from illegal stock sales to boost revenue,” said Michele Wein Layne, Director of the SEC’s Los Angeles Regional Office.

Mehdizadeh and Medbox, which has since changed its name to Notis Global, have agreed to settle the SEC’s charges.  Mehdizadeh agreed to pay more than $12 million in disgorgement and penalties and agreed to be barred from serving as an officer or director of a public company or participating in any penny stock offerings.  The settlements are subject to court approval.  The SEC’s litigation continues against Bedrick, Legaspi, and New-Age.

The SEC’s investigation was conducted by Megan M. Bergstrom, Roger Boudreau, and Spencer Bendell of the Los Angeles office.  The litigation will be led by Gary Leung.  The SEC appreciates the assistance of the Financial Industry Regulatory Authority.

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