Pubdate: Fri, 09 Jan 2015
Source: Denver Post (CO)
Copyright: 2015 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: Steve Raabe

MARIJUANA EXPERTISE FOR SALE

United Cannabis Signs Consulting Deal to Grow Medical Pot on Tribal Lands.

Denver-based United Cannabis Corp. is proposing to team with Native 
American tribes in California to grow and manufacture medical 
marijuana products.

United Cannabis has signed a consulting and licensing deal with a 
company that will build up to three cultivation and processing 
facilities on tribal lands.

Fox Barry Cos. LLC, a firm that helps tribes with economic 
development projects such as farms and casinos, has pledged $ 30 
million to develop the facilities. Fox Barry, in turn, will have 
exclusive distribution rights for United Cannabis products in California.

"We will bring our proprietary products and consulting expertise out 
to the tribes in California," said Chad Ruby, chief operating officer 
of United Cannabis.

Among other products, United develops pot strains with varying ratios 
of THC - the psychoactive ingredient that makes users high- and non- 
psychoactive cannabidiol, or CBD, which has purported medical benefits.

Ruby said that "active" and "inactive" products would be developed at 
the tribal facilities. Products would be shipped to and sold at 
licensed medical marijuana dispensaries in California.

The first proposed grow and manufacturing facility under the United 
Fox Barry deal would be on Pinoleville Pomo tribal land in northern 
California's Mendocino County. Future facilities would be built in 
central and southern California.

The licensing agreement calls for United to receive $ 200,000 in 
prepaid royalties and 15 percent of net sales.

The U. S. Justice Department said last month that Indian tribes can 
grow and sell marijuana on their lands as long as they follow the 
same federal conditions laid out for states that have legalized the drug.

Ruby said the new venture was not a direct result of the DOJ ruling. 
However, he said that federal approval gives the project a measure of 
protection in a state where some dispensaries and grows have been 
raided and where regulations vary from community to community.

United last year announced the creation of the Jamaica-based 
Cannabinoid Research & Development Co. Ltd. with a mission to "help 
restore the purity of ( Jamaican marijuana) strains and standardize 
the breeding process."

Jamaica has drafted legislation to decriminalize marijuana, a 
cultural icon of the Caribbean island, even though its use and 
cultivation is illegal.

In a recent filing with the U. S. Securities and Exchange Commission, 
publicly traded United reported that in the first nine months of 2014 
it had revenue of $ 91,113 and expenses of $ 1.2 million, resulting 
in a loss from operations of $ 1.1 million.

United's stock closed Thursday at 70 cents. In the past year, it has 
traded in a range of 6 cents to $ 10.50.
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MAP posted-by: Jay Bergstrom