Pubdate: Mon, 07 Apr 2014
Source: Sun-Sentinel (Fort Lauderdale, FL)
Page: 1A
Copyright: 2014 Sun-Sentinel Company
Contact: http://drugsense.org/url/mVLAxQfA
Website: http://www.sun-sentinel.com/
Details: http://www.mapinc.org/media/159
Author: Scott Powers

BUSINESS RUSH NOW BEGINNING FOR LEGAL-MARIJUANA MONEY

If medical marijuana becomes legal in Florida, someone is going to
make money from it. Already, a crowd of would-be investors and
entrepreneurs is forming on the ground floor.

Since last summer, more than 60 businesses have incorporated in
Florida with names suggesting the founders intend to get into the
medical marijuana business, and the vast majority filed incorporation
papers just in the past two months.

The companies appear to be lining up to offer everything from plant
cultivation to equipment supply, medical treatment to legal advice,
research and development to retail dispensing, and financial
consulting to security.

"It's growing exponentially," said Ken Kavenaugh, of Apopka, a video
production entrepreneur who, with his wife, Cynthia, set up a business
called Marijuana Farmacy LLC. "Every Tom, Dick and Harry would love to
get into it, but it's certainly not nearly as simple as some may think."

South Florida has Florida Cannabis Consultants of Wilton Manors;
Florida Medical Marijuana Physicians LLC of Oakland Park; Medical
Marijuana Industries of Florida of Coral Springs; Marijuana RX Inc. of
Margate; Marijuana Account Corp. of Fort Lauderdale; and Medical
Marijuana Business Lawyers of Boca Raton.

Many of them are being founded by entrepreneurs who have little or no
background in marijuana, medicine or cultivation, but know a potential
cash crop when they see one.

"Logic would dictate that there should be sufficient demand," said
Craig Frank, of Hollywood, a biofuels entrepreneur who is president of
the new Florida Cannabis Industry Association Corp. "So naturally
people looking for opportunities may be looking to start a company."

Last year, California had about 412,000 registered medical marijuana
patients, Colorado had 85,000, and Michigan and Washington each had
more than 30,000, according to ArcView Market Research, a San
Francisco-based marijuana investment network.

"Our rough, back-of-the-envelope estimates project that a medical
[marijuana] industry in Florida regulated in a similar way to Colorado
could do about $780 million in sales in a year. That's based on what
we've seen in other states and adjusted for Florida's population,"
said Taylor West, deputy director of the National Cannabis Industry
Association in Washington. "That would likely make it the
second-largest legal market in the country, after California."

Florida's potential cash crop has seeds in two places.

There is a proposed Florida constitutional amendment on the November
general election ballot that would make medical marijuana broadly legal.

And there are two bills, HB 843 and SB 1030, making their way through
the Florida Legislature that, for now, would legalize one specific
marijuana extract, an oil called cannabidiol, or "Charlotte's Web,"
which has shown promise in helping children with untreatable seizure
disorders. Those bills, however, have the prospect of being expanded
to include other marijuana products to treat other illnesses. Three
new trade associations also have sprung up, giving Florida at least
four nonprofit organizations contending to represent marijuana businesses.

"I think there is room for good people, professional folks that could
really present a professional image," said James Urban, an investor
who is chairman of the Florida Medical Cannabis Association in Winter
Park. "That's what our association would like to see."

But if the Charlotte's Web bills die or get vetoed, and Amendment 2
fails to get 60 percent approval necessary to pass in November, then
their business plans may go up in smoke.

So to improve chances that something will become legal, that
association already has hired a lobbyist, Louis Rotundo, of
Casselberry. The association also hired an executive director, Cerise
Naylor, who has a background in organizing and fundraising.

Rotundo is pressing lawmakers to rewrite the bills to address key
questions businesses want answered: Where could the seeds come from?
Who could grow the plants? Who could process the products? Who could
package the products? How could investors get involved? How could the
product be transported for sale? Who could sell it?

"Business likes regulatory certainty," Rotundo said. "I don't want to
have to guess what the rules are. I don't want to guess whether the
sheriff and state attorney are going to come knock on my door." 
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