Pubdate: Sun, 09 Nov 2014
Source: News-Press (Fort Myers, FL)
Copyright: 2014 The News-Press
Contact:  http://www.news-press.com/
Details: http://www.mapinc.org/media/1133
Author: Mary Wozniak

DEATH OF AMENDMENT 2 HASN'T SNUFFED OUT POT ENTHUSIASM

The failure of Amendment 2 has failed to snuff out the enthusiasm of 
those who wanted to be part of Florida's fledgling medical marijuana business.

Entrepreneurs, investors, companies and others are looking at it as a 
temporary obstacle on a path toward the inevitable.

Industry leaders also are hopeful. "Prospects for medical marijuana 
in Florida are strong, given that so many voted for it," said Taylor 
West, deputy director of The National Cannabis Industry Association.

The 57 percent in favor "certainly sends a message to leadership in 
the state," she said. "It seems very likely that the next time it 
gets on the ballot, it will pass."

So those who planted the seeds for their dispensaries, delivery 
services, grow operations, equipment sales and service, medical pot 
edibles, security businesses and more will have to wait for better 
political weather.

If this had been an ordinary political race, Amendment 2 would have 
been a slam dunk. But constitutional amendments need 60 percent to 
pass. And the issue was particularly controversial and contentious. 
Proponents promoted it as a compassionate measure to provide relief 
for ill people, providing an option other than pharmaceuticals. 
Opponents insisted it was a veiled attempt to legalize marijuana in general.

West hesitates to give advice for those who were poised to barrel 
ahead in anticipation of a positive result Nov. 4. It depends on the 
individual business owner, how they structured their business and the 
funding involved, she said. What they do depends on how much they've invested.

"I think if they have the financial ability to sit tight, OK," West 
said. "It is a good reminder that this is still an industry that 
involves a lot of risk. Maybe it's not right to pour lots of money 
into it before it's a legal option."

Mike Ginocchi of Lehigh Acres, who started his own 
investing/consulting business, MjMoneyMan.com, said he was surprised 
Amendment 2 didn't pass, but he always had reservations. The millions 
poured into the Vote No on 2 campaign by billionaire casino magnate 
Sheldon Adelson, the negative TV advertising and the 60 percent vote 
threshold hurt, he said. "A lot of people had no clue what it was 
about and voted no."

Ginocchi isn't quitting. "I'm still going to be MjMoneyman.com," he 
said. "I'm going to concentrate on the stocks end of it until I get 
my next at bat."

or Robert Calkin, founder of the Cannabis Career Institute, it's all 
good. "There are silver linings there," he said. "I've been in the 
industry 35 years and it's always one step forward, two steps back. 
This was a good step forward."

Calkin, a medical marijuana expert from California, holds seminars 
across Florida and in other states on how to start a medical 
marijuana business.

Everybody realizes now how much people are in favor and the political 
climate is changing, he said. "I know of no reason why a 
(legislative) bill couldn't be introduced. That should be seen as a 
feather in whatever smart politician's cap comes up with a proposal. 
I would think they'd be stumbling all over one another to do this."

People continue to ask about classes, Calkin said. The institute will 
continue to hold them, but probably with fewer students. The seminars 
presented by instructors include a worst-case scenario, he said. 
"Let's assume it will not pass and what to do in the interim." That 
includes creating a brand that can be licensed, a business model for 
a dispensary, a design for a grow operation or any other ancillary 
business, he said. Then you're ready to get it started when medical 
marijuana becomes legal.

And it will become legal, Calkin said. The question is how quickly. 
"We see this evolution happen in every state."

Don Clifford, CEO of GrowHealthy Holdings, based in Atlanta, is in it 
for the long term. He bought an old Sealy mattress factory in Lake 
Wales for $2.2 million and is renovating it for $5 million more to 
turn it into a state-of-the art medical pot production facility. He 
was planning to buy a second facility if Amendment 2 passed. But the 
Lake Wales plant is intended to grow organic, pharmaceutical-grade 
medical marijuana permitted under State Bill 1030, also known as the 
Charlotte's Web bill.

The bill, passed in the 2014 legislative session, allows for the 
growth of Charlotte's Web and several other low-THC strains of 
marijuana to help patients who have severe seizures, cancer, and 
other ailments. GrowHealthy has partnered with nurseries in the hope 
of getting one of five licenses the state will distribute by lottery 
to nurseries that meet the bill's strict criteria.

"It's absolutely a risk," Clifford said, but their business plan 
calls for his state-of-the-art plant to serve as a model. "We think 
that the quality of our facility is one of the things that will help 
us be successful in other states as well as Florida." Meanwhile, if 
they don't get a license, the company will sit tight and the plant 
will be converted to grow "some sort of vegetable," he said.

Amendment 2's loss also means the loss of a golden financial 
opportunity for the state. If the measure had passed, state 
projection of sales ranged from $138 million to $5.6 billion. State 
projections of tax revenue ranged from $8.3 million to $338 million.

The numbers were based on the number of medical marijuana patients 
(up to 417,000), the amount of pot they may use and price per ounce.

The National Cannabis Industry Association also had projected the 
possibility the state could be the second-largest legal market in the country.

However, "When talking about medical marijuana, the real missed 
opportunity is providing access to a product to many seriously ill 
people who would benefit from it," West said.
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MAP posted-by: Jay Bergstrom