Five Things Every Arizona Employer Should Know About Medical Marijuana

If your company employs people in Arizona the people running the company need to read this article by Arizona attorneys Michael D. Moberly & Charitie L. Hartsig of the Ryley Carlock & Applewhite law firm.

By |2014-05-26T07:17:54-07:00May 26th, 2014|Legal Issues, Stories & Articles|Comments Off on Five Things Every Arizona Employer Should Know About Medical Marijuana

California Moves One Step Closer To Ending Medical Marijuana ‘Chaos’

Huffington Post:  “A bill that would provide order to California’s muddled medical marijuana program cleared a major hurdle Friday, when the state Assembly’s Appropriations Committee moved it forward for a full Assembly vote next week.  Authored by Assemblyman Tom Ammiano (D-San Francisco), the measure, AB 1894, would create uniform rules to govern the state’s multibillion-dollar medical marijuana industry. Although California became the first state to legalize cannabis for medicinal use in 1996, the state has yet to establish a set of standards guiding the cultivation, production and sale of the plant, which has led to what Ammiano described to The Huffington Post as “chaos.”

By |2017-02-04T07:38:59-07:00May 25th, 2014|California News, Stories & Articles|Comments Off on California Moves One Step Closer To Ending Medical Marijuana ‘Chaos’

Ultra Health, LLC Sued Again: Now in 4 Lawsuits

On March 5, 2014, Ultra Health, LLC, filed its first lawsuit in Maricopa County, Arizona.  On May 19, 2014, JDT Construction, LLC., sued Duke Rodriguez’ Ultra Health, LLC, in Yavapai County Superior Court for Ultra Health’s alleged failure to pay $826,493 .68 under a contract for construction at 2144 North Road l East, Chino Valley, Yavapai County, Arizona 86323.  The JDT Construction Complaint states that Ultra Health, LLC, did pay $1,778,383.91 under the contract and that:

“On May 5, 2014, pursuant to an order from the United States Bankruptcy Court of the District of Nevada on April 11, 2013 (Case No. BK-S-13-11930-btb) allowing Ultra Health to purchase the Property, Ultra Health designee, CVUH LLC recorded in Yavapai County, Arizona a Trustee’s Deed granting CVUH LLC all legal and beneficial interest in the Property subject to other liens, liabilities and encumbrances.”

JDT Construction, LLC, is asking the court to find that JDT has a valid mechanics’ lien, that the lien be foreclosed and the Sheriff of Yavapai County sell the Chino property to the highest bidder.

With the filing of the JDT Construction lawsuit, Ultra Heatlth, LLC, is now a party in four lawsuits filed in the last two and one half months.  To learn about Ultra Health’s other three lawsuits read “Zoned Properties, Inc. & Duke Rodriguez Lawsuits.”  See also “AZ Dept. of Health Services Confirms Ultra Health, LLC Lacks a License for a Medical Marijuana Dispensary.”

Disclosure:  Holistic Patient Wellness Group, LLC, East Valley Patient Wellness Group, LLC, and Natural Remedy Patient Center, LLC (all clients of mine) are parties to some of the Ultra Health, LLC, lawsuits.

By |2019-06-14T08:28:37-07:00May 20th, 2014|AZ Marijuana Law Lawsuits, Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Ultra Health, LLC Sued Again: Now in 4 Lawsuits

SEC Warns Investors About Marijuana-Related Investments Amid Recent Trading Suspensions

The following is the text of a May 16, 2014, Securities & Exchange Commission press release:

The Securities and Exchange Commission today cautioned investors about the potential for fraud in microcap companies that claim their operations relate to the marijuana industry after the agency suspended trading in the fifth such company within the past two months.

The SEC issued an investor alert warning about possible scams involving marijuana-related investments, noting that fraudsters often exploit the latest growth industry to lure investors with the promise of high returns.  “For marijuana-related companies that are not required to report with the SEC, investors may have limited information about the company’s management, products, services, and finances,” the SEC’s alert says.  “When publicly available information is scarce, fraudsters can more easily spread false information about a company, making profits for themselves while creating losses for unsuspecting investors.”

Spearheaded by its Microcap Fraud Task Force, the SEC Enforcement Division scours the microcap market and proactively identifies companies with publicly disseminated information that appears inadequate or potentially inaccurate.  The SEC has the authority to issue trading suspensions against such companies while the questionable activity is further investigated.

As the markets opened today, the SEC suspended trading in Denver-based FusionPharm Inc., which claims to make a professional cultivation system for use by cannabis cultivators among others.  According to the SEC’s order, the trading suspension was issued “because of questions that have been raised about the accuracy of assertions by FusionPharm” concerning the company’s assets, revenues, financial statements, business transactions, and financial condition.

“Recent changes in state laws concerning medical and recreational marijuana have created new opportunities for penny stock fraud,” said Elisha Frank, co-chair of the SEC Enforcement Division’s Microcap Fraud Task Force.  “Wherever we see incomplete or misleading disclosures, we act quickly to protect investors.”

Other marijuana-related companies in which the SEC recently suspended trading are Irvine, Calif.-based Cannabusiness Group Inc., Woodland Hills, Calif.-based GrowLife Inc., Colorado Springs-based Advanced Cannabis Solutions Inc., and Bedford, Texas-based Petrotech Oil and Gas Inc.

Under the federal securities laws, the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.  More information about the trading suspension process is available in an SEC investor bulletin on the topic.

“We know from experience that fraudsters follow the headlines,” said Lori J. Schock, director of the SEC’s Office of Investor Education and Advocacy, which prepared the investor alert.  “Given the attention that marijuana-related companies have attracted recently, we urge investors to exercise caution when looking at investments in this space.  Always thoroughly research the company – and the person selling the investment – before making a decision.”

By |2017-02-04T07:38:59-07:00May 20th, 2014|Medbox, Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on SEC Warns Investors About Marijuana-Related Investments Amid Recent Trading Suspensions

Feds won’t Allow Water for Pot Growers

McClatchy DC:  “Delivering a major blow to state-licensed pot growers in Washington state and Colorado, the U.S. Bureau of Reclamation said today it will not allow any federally-controlled water to be used on marijuana crops.  ‘As a federal agency, Reclamation is obligated to adhere to federal law in the conduct of its responsibilities to the American people,’ said Dan DuBray, the agency’s chief of public affairs.  The decision could hit particularly hard in Washington state, with the federal agency controlling the water supply for two-thirds of Washington state’s irrigated land.”

Read more here: http://www.mcclatchydc.com/2014/05/20/227933/feds-wont-allow-water-for-pot.html?sp=/99/100/&ihp=1#storylink=cpy
By |2019-06-14T08:28:36-07:00May 20th, 2014|Federal Dispensary Attacks, Stories & Articles|Comments Off on Feds won’t Allow Water for Pot Growers

Tax Planning for Marijuana Dealers

Benjamin Moses Leff, Associate Professor of Law, American University Washington College of Law, published an excellent law review article about Internal Revenue Code Section 280E, a troublesome tax statute for state-legal medical marijuana dispensaries.

“In recent years, many states have legalized marijuana while the federal government has not. But marijuana industry insiders consider not federal criminal law but federal tax law to be the biggest impediment to the development of a legitimate marijuana industry. State-sanctioned marijuana sellers are required to pay federal income taxes pursuant to I.R.C. § 280E, a formerly largely symbolic provision that Congress enacted to punish drug dealers, but which now could potentially drive legitimate marijuana sellers underground.

This Article proposes a tax strategy that enables state-sanctioned marijuana sellers to avoid the impact of § 280E by qualifying as a tax-exempt organization. The IRS has already stated that a marijuana seller cannot be exempt under I.R.C. § 501(c)(3) because the so-called ‘public policy doctrine’ does not permit a charity to have purposes that are contrary to law. This Article proposes for the first time that the public policy doctrine does not apply to § 501(c)(4) organizations, which opens the door for marijuana sellers to qualify as tax-exempt. The organization would have to be operated to improve the social and economic conditions of a neighborhood blighted by crime or poverty by providing job training, employment opportunities, and improved business conditions for commercial development in the neighborhood, just like many existing community economic development corporations that run businesses.

This novel argument is more than just a ‘tax loophole’ to avoid the impact of § 280E. Rather, IRS recognition of tax-exempt status for marijuana sellers could actually provide a mechanism to resolve the federalism issues raised by the conflict between state and federal marijuana laws. A federal policy that incentivizes marijuana sellers to be nonprofit, neighborhood-based organizations in effect ties federal approval to local support.”

By |2015-04-06T18:57:50-07:00May 20th, 2014|Stories & Articles, Tax Issues|Comments Off on Tax Planning for Marijuana Dealers

Investor Alert: Marijuana-Related Investments

On May 16, 2014, the Securities and Exchange Commission published a detailed warning that is a must read for anybody who owns stock of or is considering purchasing stock of a company that provides  products products or services to state legal marijuana businesses.

The SEC’s Office of Investor Education and Advocacy is issuing this Investor Alert to warn investors about potential risks involving investments in marijuana-related companies. 

The SEC has seen an increase in the number of investor complaints regarding marijuana-related investments.  The SEC recently issued temporary trading suspensions for the common stock of five different companies that claim their operations relate to the marijuana industry:

The SEC suspended trading in these companies because of questions regarding the accuracy of publicly-available information about these companies’ operations.  For two of the companies, the trading suspensions were also based on potential illegal activity (unlawful sales of securities and market manipulation).

Fraudsters often exploit the latest innovation, technology, product, or growth industry – in this case, marijuana – to lure investors with the promise of high returns.  Also, for marijuana-related companies that are not required to report with the SEC, investors may have limited information about the company’s management, products, services, and finances.  When publicly-available information is scarce, fraudsters can more easily spread false information about a company, making profits for themselves while creating losses for unsuspecting investors.

Risk of Prosecution for Marijuana-Related Companies.  If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution.  The Department of Treasury recently issued guidance noting: “

[T]he Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana.  Many states impose and enforce similar prohibitions.  Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”

Marijuana-related investments may be sold in unregistered offerings and may take many forms, including microcap stocks (low-priced stocks issued by the smallest of companies) such as penny stocks (the very lowest priced stocks).

Microcap Stocks

When you buy low-priced shares of a small company (e.g., you buy a stock that trades in the “over-the-counter” (also called OTC) market), you likely are investing in penny stocks or microcap stocks.  Microcap stocks are particularly vulnerable to fraudulent investment schemes because there is often limited publicly-available information about microcap companies.  Be cautious if you see red flags of potential microcap fraud such as:

  • SEC trading suspensions (the SEC has suspended public trading of the security)
  • E-mail and fax spam recommending a stock
  • Insiders own large amounts of stock
  • False or exaggerated press releases

Even in the absence of fraud, microcap stocks are among the most risky:

  • Information about microcap companies can be extremely difficult to find, making it less likely that quoted prices in the market reflect full and complete information about the company.
  • Many microcap companies are new and have no proven track record.  Some microcap companies have no assets, operations, or revenues.  Others have products and services that are still in development or have yet to be tested in the market.
  • The stock prices of microcap companies historically have been more volatile than the stock prices of larger companies.  Since low-priced stocks trade in low volumes, any size trade can have a large percentage impact.
  • The stock of microcap companies are often quoted on the OTC Bulletin Board (also called OTCBB) or OTC Link LLC (also called OTC Link).  OTCBB and OTC Link do not require companies to apply for listing or to meet any minimum financial standards.  Most of these companies do not meet the minimum listing requirements for trading on a national securities exchange, such as the New York Stock Exchange or the Nasdaq Stock Market.

Unregistered Offerings

Check the SEC’s EDGAR database and contact your state securities regulator to find out whether the marijuana-related company has registered its securities offering with the SEC or a state securities regulator.  If the offering is not registered, exercise extreme caution if you spot any of these red flags of potential investment fraud:

  • “Guaranteed” high investment returns.  If someone promises you a high rate of return on your investment, it likely is a fraudulent investment scheme.
  • Unsolicited offers, including through social media.  A new post on your wall, a tweet mentioning you, a direct message, an e-mail, a text, a phone call, or any other unsolicited – meaning you didn’t ask for it and don’t know the sender – communication regarding an investment “opportunity” may be part of a scam.
  • Pressure to buy RIGHT NOW.  Fraudsters may try to create a false sense of urgency or pitch the investment as a “limited time only” opportunity.
  • No net worth or income requirements.  To comply with federal securities laws, many unregistered offerings are limited to accredited investors and the seller should ask you about your net worth or income.

When investing in unregistered offerings, also consider these risks:

  • You may lose your entire investment.
  • You may not be able to sell the stock easily, and you may have to hold your investment indefinitely.
  • The company may not make information about its business or financial condition publicly available.

Research the Company

As with any investment, make sure you understand the marijuana-related company’s business and its products or services.  Carefully review all materials you are given and verify the truth of every statement you are told about the investment.

Pay attention to the company’s financial statements, particularly if they are not audited by a certified public accountant (also called a CPA).

If the company files reports with the SEC, review the most recent reports.

If the marijuana-related company is a microcap company that does not file reports with the SEC, ask your broker for the “Rule 15c2-11” file (the federal securities laws may require your broker to have certain information about the company).

If the marijuana-related company is offering securities in an unregistered offering, read the offering memorandum or private placement memorandum (also called PPM), and pay particular attention to any risk factors noted.  Review the terms of any subscription agreement or other agreements for the investment.

Search SEC.gov to see whether the SEC has taken any action against the company or anyone associated with the company.

For more information about how to research an investment, read our publication Ask Questions.

Research your Broker or Investment Adviser

Research the background of the individuals and firms offering and selling you these investments, including their registration/license status and disciplinary history:

  1. Search the SEC’s Investment Adviser Public Disclosure (IAPD) database.
  2. Search the Financial Industry Regulatory Authority (FINRA)’s BrokerCheck database.
  3. Contact your state securities regulator.

Additional Resources

FINRA Investor Alert: Marijuana Stock Scams
Investor Alert: Advertising for Unregistered Securities Offerings
Investor Alert: Don’t Trade on Pump-And-Dump Stock Emails
Investor Alert: Social Media and Investing – Avoiding Fraud
Microcap Fraud Spotlight 
Microcap Stock: A Guide for Investors
Department of the Treasury Financial Crimes Enforcement Network Guidance regarding BSA Expectations Regarding Marijuana-Related Businesses

Contact the SEC on SEC.gov:

Report possible securities fraud.
Report a problem.
Ask a question.

Stay informed

Receive Investor Alerts and Bulletins from the SEC’s Office of Investor Education and Advocacy (“OIEA”) by email or RSS feed.

Visit Investor.gov, the SEC’s website for individual investors.

By |2019-06-18T19:57:11-07:00May 16th, 2014|Medbox, Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Investor Alert: Marijuana-Related Investments

Students Wonder About Marijuana-Themed University

CBS Denver:“Cannabis in the classroom — a new marijuana-themed university is hosting classes on the Auraria Campus in Denver, and not everyone is happy about it. Students might not find “Marijuana 101″ on the catalogs of the three universities that occupy Auraria Campus, but CBS4′s Rick Sallinger found it’s certainly being taught there”

By |2014-05-15T07:59:53-07:00May 15th, 2014|Colorado News, Stories & Articles|Comments Off on Students Wonder About Marijuana-Themed University

Zoned Properties, Inc. & Duke Rodriguez Lawsuits

Holistic Patient Wellness Group, LLC, East Valley Patient Wellness Group, LLC, and Natural Remedy Patient Center, LLC (all clients of mine) hold Dispensary Registration Certificates issued by the Arizona Department of Health Services.  These companies are involved in lawsuits with Duke Rodriguez, Zoned Properties, Inc. (aka ZDPYD), Ultra Health, LLC, and Cumbre Investment, LLC. ZDPYD focuses “on properties in the medical marijuana industry.” See page 8 of ZPI’s April 15, 2014, Company Information & Disclosure Statement.  To learn more about Zoned Properties, Inc., read “Zoned Properties, Inc. Public Disclosures.”

According to page 16 of Zoned Properties, Inc.’s April 15, 2014, Disclosure Statement its major stockholders as of that date were Duke Rodriguez (2,200,000 shares – 9.29%), Marc Brannigan (1,500,000 shares – 6.34%), Alan Abrams (3,200,000 shares – 13.51%), Christopher Carra (2,200,000 shares – 9.29%), Greg Johnson (1,500,000 shares – 6.34%), MJ Trust (1,200,000 shares – 5.07%) and MAC CAM, LLC (700,000 preferred shares).  MAC CAM, LLC is owned by Marc Brannigan, Alan Abrams and Christopher Carra.  On May 13, 2014, ZDPYD did a 1:120 reverse stock split.  Duke Rodriguez is the member and manager of Ultra Health, LLC, and Cumbre Investment, LLC.  Zoned Properties, Inc., Cumbre Investment, LLC, and Ultra Health, LLC, have domestic addresses at 16624 N. 90th Street, Scottsdale, Arizona.

Zoned Properties, Inc., is now a party to three lawsuits involving the eviction (see lawsuit #5 below about the Clifton, Arizona premises) and attempted eviction (see lawsuits #2 and #3 below about the 410 S. Madison, Tempe, Arizona premises) of a medical marijuana dispensary tenant, Holistic Patient Wellness Group, LLC.

Check back from time to time because we will be adding pleadings as these cases progress.

Summary of Lawsuits

1. Ultra Health, LLC vs. Healing Healthcare 3, Inc., Scan4Health, LLC. and Holistic Patient Wellness Group, LLC

This lawsuit is Maricopa County Superior Court case number CV2014-005642.  On March 5, 2014, Ultra Health, LLC, filed a lawsuit against Healing Healthcare 3, Inc. and Scan4Health, LLC. Ultra Health, LLC’s Complaint contains the following statements:

“On September 15, 2013, Ultra Health and Healing Healthcare 3 entered into a Joint Venture Agreement for purposes of operating a marijuana cultivation facility with its principal place of business at the Tempe Lease facility. 

[The JV Agreement attached as Exhibit 3 to the Complaint ends abruptly at page 5 and does not have a signature page.]

The Tempe Joint Venture Agreement provided that legal title to the Joint Venture property and all assets, including the Joint Venture itself, shall remain in the name of Ultra Health.

Brannigan at Ultra Health threatening Duke Rodriguez [This incomplete sentence apparently refers to Marc Brannigan, the then CEO of Zoned Properties, Inc.]

Healing Healthcare has converted the marijuana product owned by Ultra Health [emphasis added]

Pleadings & Documents

  • Amended Complaint.  Ultra Health, LLC, added Holistic Patient Wellness Group, LLC, as a defendant.

“AZDHS can confirm that it does not recognize Ultra Health, LLC as a holder of this or any other dispensary registration certificate.”

2.  Holistic Patient Wellness Group, LLC vs. Zoned Properties, Inc., Duke Rodriguez, Marc Brannigan & Tempe Industrial Properties, LLC

On March 14, 2014, the plaintiff sued the defendants in Maricopa County Superior Court case number CV2014-003047.

Pleadings

3.  Tempe Industrial Properties, LLC, vs. Holistic Patient Wellness Group, LLC, & Healing Healthcare 3, Inc.

On March 19, 2014, twelve days after ZDPYD purchased the real property located at 410 S. Madison, Tempe, Arizona, ZDPY’s wholly owned subsidiary Tempe Industrial Property, LLC, filed a lawsuit to evict its first and only medical marijuana dispensary tenant.  This is Maricopa County Superior Court case number CV2014-005961.  ZDPYD focuses “on properties in the medical marijuana industry.”  On April 24, 2014, Tempe Industrial Properties, LLC, conveyed the real property back to Zoned Properties, Inc.

Pleadings

4. Holistic Patient Wellness Group, LLC, East Valley Patient Wellness Group, LLC, and Natural Remedy Patient Center, LLC vs. State of Arizona, Janice Brewer, Arizona Department of Health Services, Will Humble, Christopher Miller, Meagan Miller and Alexander De Soler.

On April 22, 2014, Plaintiffs sued Christopher Miller, Meagan Miller and Alexander De Soler to get a court order that they are not members, officers, board members or affiliated with Plaintiffs.  This is Maricopa County Superior Court case number CV2014-007233.

Pleadings

5.  Holistic Patient Wellness Group, LLC, East Valley Patient Wellness Group, LLC, and Natural Remedy Patient Center, LLC vs. Duke Rodriguez, Zoned Properties, Inc., Cumbre Investment, LLC, and Ultra Health, LLC.

This lawsuit was filed on April 25, 2014.  It is Maricopa County Superior Court case number CV2014-007302.  The lawsuit involves real property in Clifton, Arizona, in which Holistic Patient Wellness Group, LLC,, operated a medical marijuana dispensary until the dispensary was locked out of the premises by Duke Rodriguez’ company called Cumbre Investments, LLC.  Attorney Jeffrey Kaufman appeared at a hearing before Maricopa County Superior Court Judge Brain and told to the court that he represents Zoned Properties, Inc., and that Cumbre Investment, LLC, assigned the Clifton lease to Zoned Properties.  Zoned Properties, Inc., which focuses “on properties in the medical marijuana industry” now owns two parcels of Arizona real estate, is a tenant on a third parcel and is involved in three eviction lawsuits with a licensed medical marijuana dispensary.

Update:  Plaintiffs voluntarily dismissed this lawsuit on May 20, 2014, because in an April hearing in Maricopa County Superior Court Judge Brain stated he believed contracts involving Arizona medical marijuana dispensaries are not enforceable because they violate public policy.

Pleadings

6.  Ultra Health, LLC, vs. Healing Healthcare 3 Inc , Rakesh Pahwa, Geeta Pahwa, Scott Armstrong, David Sanchez & Kathy Sanchez

The complaint in this lawsuit was filed on April 29, 2014.  It is Maricopa County Superior Court case number CV2014-053115.

Pleadings

7.  JDT Construction, LLC., vs. Ultra Health, LLC

The complaint in this lawsuit was filed on May 19, 2014, in Yavapai County.  JDT Construction claims Ultra Health, LLC, owes JDT $826,493 .68 under a contract for construction at 2144 North Road l East, Chino Valley, Arizona.  It is Yavapai Superior Court case number P-1300-CV-201400555.

Pleadings

8.  Scott Armstrong vs. Duke Rodriguez & Sold By Group, LLC

The lawsuit was filed on December 13, 2013.  It is Maricopa County Superior Court case number CV2013-055265.  Sold By Group, LLC, is owned and managed by Duke Rodriguez.

Pleadings

9.  Sweetwater Ranch Association vs. Duke Rodriguez

The lawsuit was filed on May 20, 2011.  It is Maricopa County Superior Court case number CV2011-095146.

10.  Cavalry Spv I L L C  vs. Duke Rodriguez

The lawsuit was filed on October 25, 2002.  It is Maricopa County Superior Court case number TJ2002-004927.

11.  Bank of America vs. Duke Rodriguez

The lawsuit was filed on October 26, 2000.  It is Maricopa County Superior Court case number CV2000-019427.

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By |2019-06-14T08:28:25-07:00May 15th, 2014|AZ Marijuana Law Lawsuits, Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Zoned Properties, Inc. & Duke Rodriguez Lawsuits
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Zoned Properties, Inc. Public Disclosures

Zoned Properties, Inc., is a publicly traded corporation (symbol ZDPYD) that claims to “focus on properties in the medical marijuana industry.” See page 8 of ZPI’s April 15, 2014, Company Information & Disclosure Statement.  ZDPYD stock price per share in the last six months went from $.0754 on November 8, 2013, to a high of $21.98 on March 5, 2014, and down to $.68 on May 12, 2014.  On May 13, 2014, ZDPYD did a 1:120 reverse stock split.

The purpose of this article is to help people in the Arizona medical marijuana industry learn about Zoned Properties, Inc., a company that purchased its first of two Arizona real estate properties on January 20, 2014, and is now involved in three lawsuits in Arizona Superior Court with three medical marijuana dispensary clients of mine: Holistic Patient Wellness Group, LLC, East Valley Patient Wellness Group, LLC, and Natural Remedy Patient Center, LLC. To learn more about the Zoned Properties, Inc., lawsuits read “Zoned Properties, Inc. & Duke Rodriguez Lawsuits.”

The text inside quotes below was taken from ZDPYD’s public disclosures and press releases.  Text inside brackets

[ ] and outside of quotation marks was written by the author of this article.

1.  November 8, 2013, Company Information & Disclosure Statement

  • “The Company is a strategic real estate investment firm whose primary focus is acquiring commercial properties that face unique zoning challenges in the medical marijuana industry. The Company acquires commercial properties zoned within a variety of usage types such as industrial, agricultural, as well as mixed use. . . . The Company also manages a portfolio of properties that it owns and leases. The Company provides oversight on each and every property it manages”  Page 3.  [Emphasis added.  ZDPYD’s total assets as of 12/31/13 was $11,965. Page F-3 of the December 31, 2013, Financial Statement.]
  • “In September of 2013, Marc Brannigan, an individual resident of the State of Arizona, acquired 15,000,000 shares of common stock of the Company, representing approximately 91.54% of the issued and outstanding voting power of the Company.”  Page 4.
  • “On September 16, 2013, the Board of Directors of the Company appointed Marc Brannigan as President and Chief Executive Officer of the Company and Chairman of Board of Directors (sole director).”  Page 5.
  • “The Company also manages a portfolio of properties that it owns and leases.”  Page 6.
  • “The company’s initial holdings and acquisition targets are in the state of Arizona.”  Page 7.
  • “Additionally, the company has acquired a note for a medical marijuana dispensary located in Safford, Arizona. ZPI will soon foreclose on the building and own the property outright.”  Page 8.  [See the March 12, 2014, Press Release.]
  • “Once a property is acquired and re-zoned for a medical marijuana cultivation or dispensary location, ZPI can charge in some cases three to five times more than market value for rent”  Page 8.
  • “The Company currently has 5 full time employees.”  Page 9.
  • We are a leader in our industry.”  Page 10.  [Emphasis added.  See the December 31, 2013, Financial Statement, which says ZDPYD’s only assets as of 12/31/13 was $11,965 cash & cash equivalent and it had no income in 2012 and 2013.]
  • “The Company devotes substantially all of its efforts to establishing a new business, and there has been no significant revenue therefrom since incorporation [2003].”  Page 10.  Emphasis added.
  • “Item X: The nature and extent of the issuer’s facilities.”  [This is question on Page 10, but ZDPYD did not answer it.]
  • “President, Chief Executive Officer and Director” is Marc Brannigan, owner of 15,000,000 shares of Common Stock.  Page 11.
  • “Conviction in a criminal proceeding or named as a defendant in a criminal proceeding: None”  Page 11.
  • “the Company borrowed funds to cover its daily operation, including but not limited to, consulting and advising fees, accounting fees, legal fees, compliance fees and others, from MAC CAM LLC, a related party owned by the Company’s President. As of September 30, 2013, the balance of notes payable to MAC CAM LLC was $25,000, which was evidenced by a convertible promissory note, dated on September 30, 2013, bearing interest at an interest rate of 8% per annum and due on demand (the “Note”). The holder of the Note has an option to convert all or any portion of the accrued interest and unpaid principal balance of the Note into the common stock of the Company or his successors, at a price of $0.05 per share.”  Page 11.
  • “Provide a list of the name, address and shareholdings of all persons beneficially owning more than five percent (5%) of any class of the issuer’s equity securities.  As of November 5, 2013: . . . Marc Brannigan . . . 15,000,000 Common Shares 91.54%.”  Page 12.
  • “The Company also manages a portfolio of properties that it owns and leases.”  Page 13.  [See the December 31, 2013, Financial Statement, which says ZDPYD’s only assets as of 12/31/13 was $11,965 cash & cash equivalent and it had no income in 2012 and 2013.]
  • “The Company devotes substantially all of its efforts to establishing a new business, and there has been no significant revenue therefrom since incorporation [in 2003].”  Page 13.  Emphasis added.
  • “There can be no assurance that revenues will be sufficient to cover future operating costs, and it may be necessary to continuously raise additional capital to sustain operations.”  Page 13.
  • “Material Contracts:  None.”  Page 15.

2.  December 31, 2013, Financial Statement

  • Total assets = $11,965 cash & cash equivalents. page F-3.  Emphasis added.
  • Revenue years 2012 + 2013 = $0.  page F-4.  Emphasis added.
  • Expenses 2013 = $336,547 & 2012 = $248,432. page F-4.  Emphasis added.

3.  February 5, 2014, Press Release

  • “Zoned Properties[SM], Inc. closes on site for 8th largest medical marijuana dispensary in the state of Arizona.[Emphasis added.  As of May 4, 2014, no dispensary has ever operated on the Gilbert property.]
  • “ZDPY . . . announces that it has closed on all of the real estate associated with the approved site for a medical marijuana dispensary located in Gilbert, Arizona for $1.115 million.”  [“the Company acquired the land located in Gilbert, Arizona, for a total payment of $300,000.  April 15, 2014, Company Information & Disclosure Statement, Page 6.]
  • “Zoned Properties[SM], Inc. is in advanced discussions with the dispensary license holder who intends to occupy the facility”

4.  February 19, 2014, Press Release

  • “Zoned Properties, Inc. . . . has entered into a definitive agreement and opened escrow on a multi-tenant industrial complex in Tempe, Arizona.”
  • “The facility has several tenants including a state licensed Arizona medical marijuana cultivator.”

5.  March 7, 2014 Deed from Maryland, LLC, to Zoned Properties, Inc.

  • Special Warranty Deed
  • This is the first property acquired by ZDPYD that has a tenant (Holistic Patient Wellness Group, LLC, a client of my law firm) that is a licensed Arizona medical marijuana dispensary.  A co-tenant on the lease is Healing Healthcare 3, Inc.  The property is located at 410 S. Madison, Tempe, Arizona (the “Madison Property”).

6.  March 12, 2014, Press Release

  • “Monetizing Note for $210,500 Books First Profit of 2014”
  • “Zoned Properties, Inc. . . . announced that it has monetized the note on the Safford, Arizona dispensary location.”

7.  March 17, 2014, Deed from Zoned Properties, Inc., to Tempe Industrial Properties, LLC

  • Special Warranty Deed
  • ZDPYD transferred title of the Madison Property to its wholly owned subsidiary.

8.  March 17, 2014, Deed from Zoned Properties, Inc., to Gilbert Property Management, LLC

  • Special Warranty Deed
  • ZDPYD transferred title of the Gilbert real property to its wholly owned subsidiary.

9.  March 19, 2014, Tempe Industrial Properties, Inc. sues to Evict Holistic Patient Wellness Group, LLC, & Healing Healthcare 3, Inc.

  • The new landlord, a subsidiary of ZDPYD, which claims to “focus on properties in the medical marijuana industry.” started an eviction proceeding to evict its first and only medical marijuana dispensary tenant 12 days after ZDPY purchased the Madison Property.

10.  March 31, 2014 Press Release

  • ZDPYD “announced that after careful consideration, the board has recommended that Marc Brannigan should step down as acting CEO and board member of the company. As such, effective immediately, Marc Brannigan has resigned as the company’s CEO.”

11.  April 11, 2014, Arizona Corporation Commission Authorizes ZDPYD to Do Business in Arizona

12.  April 15, 2014, Press Release

  • ZDPYD ” is pleased to announce that Irvin Rosenfeld has joined their board of directors.”

13.  April 15, 2014, Company Information & Disclosure Statement

  • “The Company manages a portfolio of properties that it owns and leases and provides direct development on each and every property it acquires.”  Page 5.
  • On January 24, 2014, Zoned Properties, Inc., issued 100,000 shares to Cumbre Investment, LLC.  Page 6.
  • “During the first quarter of 2014, the Company issued 5,857,000 shares of restricted common stock at a price of $1.00 per share to approximately 28 accredited investors pursuant to a private placement, exempt from registration pursuant to Rule 506(c) under the Securities Act of 1933, as amended. The total proceeds the Company received from this private placement were approximately $5,857,000.”  Page 7.
  • “The Company manages a portfolio of properties that it owns and leases and provides direct development on each and every property it acquires. This can include complete architectural design and subsequent build-outs, general support, landscaping, general up-keep, and state of the art security systems.”  Page 8.
  • “Arizona offers opportunities in addition to acquiring . . . water rights and assured water supply credits (“Water”). Water is a strong focus of ZPI.”  Page 10.
  • The Company devotes substantially all of its efforts to establishing a new business, and there has been no significant revenue therefrom since incorporation [in 2003]”  Page 10.  Emphasis added.
  • “Zoned Properties is the sole member of two established Limited Liabilities Companies: Tempe Industrial Properties LLC, which is the owner of one real estate asset managed by the Company, and Gilbert Property Management LLC, which has no operating activities as of the date of this Report.”  Page 11.  Emphasis added.
  • “The Company currently has 3 full-time employees.”  Page 12.
  • We are a leader in our industry.”  Page 12.  Emphasis added.
  • “Item X: The nature and extent of the issuer’s facilities.”  [This is question on Page 13, but ZDPY did not answer it.]
  • “President, Treasurer and Secretary . . . Bryan McLaren . . . Number and class of issuer’s securities beneficially owned: Bryan McLaren 700,000 shares of Common Stock.”  Page 13.
  • “Former President, Chief Executive Officer, Secretary and Director* . . .  Marc Brannigan . . . Number and class of issuer’s securities beneficially owned: 1,500,000 shares of Common Stock.  * Mr. Brannigan resigned from all his positions and directorship of the Company on March 31, 2014.
  • “The Company borrowed funds to cover its daily operations, including but not limited to, consulting and advisory fees, accounting fees, legal fees, compliance fees and others, from MAC CAM LLC, a related party partially owned by the Company’s President.”  Page 14.
  • “Provide a list of the name, address and shareholdings of all persons beneficially owning more than five percent (5%) of any class of the issuer’s equity securities as of April 15, 2014.”  [The shareholders listed are:  Duke Rodriguez (2,200,000 shares – 9.29%), Marc Brannigan (1,500,000 shares – 6.34%), Alan Abrams (3,200,000 shares – 13.51%), Christopher Carra (2,200,000 shares – 9.29%), Greg Johnson (1,500,000 shares – 6.34%), MJ Trust (1,200,000 shares – 5.07%).  MAC CAM, LLC is listed as owning 700,000 shares of preferred stock.]  Page 16.
  • The Company manages a portfolio of properties that it owns and leases and provides direct development on each and every property it acquires.”  Page 17. [Emphasis added.  According to its Press Releases and documents recorded with the Maricopa County Recorder ZDPY owns two parcels of land in Maricopa County, Arizona: the Madison Property leased to Holistic Patient Wellness Group, LLC, and Healing Healthcare 3, Inc., and the Gilbert property.]
  • “There was no cash flow from investing activities during the years ended December 31, 2013 and 2012, respectively.”  Page 18.
  • The Company devotes substantially all of its efforts to establishing a new business, and there has been no significant revenue therefrom since incorporation [in 2003]”  Page 18. Emphasis added.  [See the March 12, 2014, Press Release that states: “Monetizing Note for $210,500 Books First Profit of 2014”]
  • “We had operating expenses of $336,547 and $248,432 for the years ended December 31, 2013 and 2012, respectively.”  Page 18.
  • “Net loss for the year ended December 31, 2013 was $387,316, increased by $180,030 compared to net loss of $207,286 for the year ended December 31, 2012.”  Page 18.
  • There was no cash flow from investing activities during the years ended December 31, 2013 and 2012, respectively.”  Page 18.  Emphasis added.
  • We had cash of $11,965 on hand as of December 31, 2013. On the short-term basis, we will be required to raise a significant amount of additional funds over the next 12 months to sustain operations. On the long-term basis, we will potentially need to raise capital to grow and develop our business.”  Page 19.  Emphasis added.

14.  April 24, 2014, Deed from Tempe Industrial Properties, LLC, to Zoned Properties, LLC

  • Quit Claim Deed
  • The subsidiary conveyed the Madison Property back to ZDPYD after holding title for 36 days.

15.  April 25, 2014, Officer/Director Change Form Filed with the Arizona Corporation Commission

  • ZDPYD notifies the Arizona Corporation Commission that Irvin Rosenfeld and Bryan McLaren became members of its Board of Directors.

16.  April 28, 2014, Officer/Director Change Form Filed with the Arizona Corporation Commission

  • ZDPYD notifies the Arizona Corporation Commission that Irvin Rosenfeld and Bryan McLaren ceased to be members of its Board of Directors.

17.  May 1, 2014 Court Hearing in Holistic Patient Wellness Group, LLC, East Valley Patient Wellness Group, LLC, and Natural Remedy Patient Center, LLC vs. Duke Rodriguez, Zoned Properties, Inc., Cumbre Investment, LLC, and Ultra Health, LLC.

This lawsuit was filed on April 25, 2014.  It is Maricopa County Superior Court case number CV2014-007302.  The lawsuit involves real property in Clifton, Arizona, in which Holistic Patient Wellness Group, LLC,, operated a medical marijuana dispensary until the dispensary was locked out of the premises by Duke Rodriguez’ company called Cumbre Investments, LLC.  Attorney Jeffrey Kaufman appeared at a hearing before Maricopa County Superior Court Judge Brain and told to the court that he represents Zoned Properties, Inc., and that Cumbre Investment, LLC, assigned the Clifton lease to Zoned Properties.  Zoned Properties, Inc., which focuses “on properties in the medical marijuana industry” now owns two parcels of Arizona real estate, is a tenant on a third parcel and is involved in three eviction related lawsuits.

Pleadings

By |2019-06-14T08:29:24-07:00May 15th, 2014|Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Zoned Properties, Inc. Public Disclosures

Mesa Nixes Zoning for Medical Marijuana Dispensary

arizona.newszap.com:  “A majority of the Mesa City Council voted to approve rezoning property to light industrial for a planned medical-marijuana dispensary at 6350 E. Main St., but legal property-owner protests in the area required at least a 6-1 vote, the council was told May 5.  The proposed business would have been in the Mesa Central CHAA – or Community Health Analysis Areas for Arizona’s medical marijuana program – with boundaries of Power Road, Country Club Drive, University Drive and Broadway Road, Gordon Sheffield, city of Mesa zoning/civil hearing administrator, told the planning board Feb. 18.  The city requires that medical-marijuana dispensaries be in industrial-zoned areas.  There is no industrial-zoned land in the CHAA,”

By |2017-02-12T07:40:47-07:00May 14th, 2014|Stories & Articles, Zoning|Comments Off on Mesa Nixes Zoning for Medical Marijuana Dispensary

The Ongoing Saga of Medbox

Southern Investigative Reporting Foundation:  Roddy Boyd, the author of “Tinkerer, Lawyer, Hustler, Lies: One Man’s Path to a Dope Fortune” wrote an April 17, 2014, Medbox article for the Southern Investigative Reporting Foundation.  All Medbox shareholders and people involved with Arizona medical marijuana dispensaries that used Medbox’ services should read the article.  Here are some quotes from the article:

Rishi Patel is on a mission: He is taking a hard look at business opportunities in the wake of Arizona’s decision to permit the sale of medical marijuana in dispensaries across the state. . . .

Patel had come across an ad from Prescription Vending Machines, a company helping folks like him get into the medical marijuana business, and in short order he was in a running dialogue with the company’s founder, an agreeable and talkative fellow named Vincent Mehdizadeh. From there, it wasn’t long before Patel and a pair of friends had struck a plan to help Prescription Vending Machines land a dispensary permit in Arizona.

Just before he wrote a very large check—his father was staking him the capital—Patel did a background search on Mehdizadeh.

After getting the report, Patel was astonished to see a laundry list of crimes and lawsuits; one more serious than the other, all of which Mehdizadeh was at the center. . . .

[Mehdizadeh] tells Patel that there has been a mistake, and that something somewhere is terribly wrong since he hasn’t been repeatedly sued or arrested. . . .

To correct the record, Mehdizadeh e-mails Patel a scan of his driver’s license and another background report. 

Shortly after the call ended, Patel opened up the files. As promised, the documents belonged to Pegah Vincent Mehdizadeh, a man from California whose spotless criminal record was the polar opposite of Pejman Vincent Mehdizadeh. . . .

And then in July 2011 Patel got his dispensary and within minutes knew that everything was wrong. The furniture was used, the location wasn’t what they’d bargained for, and even the vaunted dispensary system they’d been promised didn’t do what was advertised.

The quotes above are a small part of a very lengthy and troubling story.

By |2017-02-12T07:40:47-07:00May 13th, 2014|Medbox, Stories & Articles|Comments Off on The Ongoing Saga of Medbox

The Bud Light-ification of Bud

New York Times: “A joint might never be as easy to access as a can of beer or a cigarette. But thousands of people and millions of dollars are hard at work to make it as predictable and dependable as one. Call it the Bud Light-ification of bud.  There’s a pressing economic reason for the pot industry to get better if it is to survive, aside from its formidable legal challenges. The plant is relatively cheap and easy to grow, and not complicated to process either. Left to the whims of the open market — meaning ignoring taxes and regulations — the price of a joint could plummet to the price of a tea bag or a packet of sugar. So how will investors help the market mature while still making money?”

By |2017-02-04T07:39:00-07:00May 13th, 2014|Stories & Articles|Comments Off on The Bud Light-ification of Bud

A Convicted Thief & a Chiropractor Claim Their Pot Company Isn’t a One-Hit Wonder

Phoenix New TimesMedbox is a company that “features patented systems that dispense medication based on biometric identification . . . . [and] turn-key consulting services to the pharmaceutical industry”  Medbox (MDBX) is a publicly traded company whose stock value was $19.91 as of May 9, 2014, which gave it a market value of $587,857,682.  Medbox is a major player in the Arizona medial marijuana dispensary industry.

On May 8, 2014, the Phoenix New Times published a devastating story about Medbox written by investigative reporter Ray Stern.  Here are some interesting quotes from the story.

“Judging by its stock, this company truly is big time.  Its products and services, however, aren’t as impressive.  Medbox machines are by no means in widespread use in Arizona’s 80 medical-marijuana dispensaries.  One drawback of the devices, as the unit at BC Wellness Center demonstrates, is that customers can’t use them legally. . . .

We spent all this money for the machine, and the customer can’t use it. . . . But the machine isn’t crucial to the dispensary’s operation . . . . ‘We could do without it.’ . . .

It’s not a glowing review of the Medbox product from one of the two Arizona dispensaries in which New Times was able to verify the existence of working Medbox machines. . . .

Vincent Mehdizadeh — founder, inventor of the dispensing machine, senior strategist, and (until his recent resignation) chief operating officer — is a convicted felon. He pleaded guilty last year to stealing from immigrants by offering them bogus legal services, avoiding a prison sentence when he paid $450,000 in restitution to victims.  Medbox owns no factories, no buildings. It rents a West Hollywood office. Last year, it had revenues of $5.2 million but didn’t turn a profit. It ended the year with about $300,000 in the bank.  What Medbox does have, though, is impressive stock. . . .

The founder of Medbox generally goes by the name Vincent Mehdizadeh.  In U.S. Securities and Exchange Commission filings, however, he calls himself P. Vincent Mehdizadeh.  The P is for Pejman, listed as his true first name in a 2013 plea agreement with the Los Angeles County District Attorney’s Office — a deal that allowed him to escape serving four years in prison. A civil complaint filed in a California court by theft victim Abdul Ahmed states another a.k.a. for Mehdizadeh: Vince Zadeh. [See the Statement of Issues and Supporting Facts, Declaration of Abdul Ahmedts with Evidentiary Exhibits . . . Memorandum of Points of Authorities in Support of Prejudgement Attachment filed in this lawsuit.] . . .

Over recent months, Medbox has been the target of another writer, Roddy Boyd of the Southern Investigative Reporting Foundation, who wrote lengthy articles about it published on September 30, 2013, and on April 17 [See “What’s in a Name: The Ongoing Saga of Medbox“].  A week before Boyd’s most recent article appeared, Mehdizadeh resigned as director and COO of Medbox, saying in a news release he’d done so to make the company ‘less prone to attack.’  [Roddy Boyd is the author of another scathing story about Medbox and Mehdizadeh called “Tinkerer, Lawyer, Hustler, Lies: One Man’s Path to a Dope Fortune.”] . . .

The June 21, 2013, plea agreement and subsequent news releases by the California agencies involved in the case are available online and show that Mehdizadeh pleaded guilty to two counts of grand theft and admitted to a “special allegation of engaging in a pattern of related felony conduct involving takings in excess of $100,000.”  In addition to the hefty restitution order, he was sentenced to five years’ probation.

Read the article because it contains much more information about Medbox and its machines.

By |2017-02-12T07:40:01-07:00May 12th, 2014|Medbox, Stories & Articles|Comments Off on A Convicted Thief & a Chiropractor Claim Their Pot Company Isn’t a One-Hit Wonder

Feds Seek Prison for Rural Washington Pot Growers

Yahoo News:  “The green-cross storefronts of medical marijuana dispensaries are common in much of Washington, and the state is plowing ahead with licensing people to grow and sell recreational pot to adults.  But a federal trial scheduled to begin in the coming weeks for five people in Spokane suggests not all is OK with weed in the state.  Larry Harvey, a 70-year-old medical marijuana patient with no criminal history, three of his relatives and a family friend each face mandatory minimum sentences of at least 10 years in prison after they were caught growing about 70 pot plants on their rural, mountainous property.”

By |2014-05-12T08:08:33-07:00May 12th, 2014|Federal Dispensary Attacks, Stories & Articles|Comments Off on Feds Seek Prison for Rural Washington Pot Growers

Washington Dispensary Owner’s Lawsuit Claims Washington Cannot Tax Marijuana Sales

Bellingham Herald:  “A federal lawsuit is challenging Washington state’s authority to tax marijuana as long as marijuana remains illegal under federal law.  The case arises from the state’s attempt to collect sales taxes from a medical marijuana dispensary. But lawyer Douglas Hiatt, who filed it late Thursday, said it could throw a wrench in Washington’s plans for collecting taxes on recreational marijuana, too. . . . the dispensary’s operator, Martin Nickerson, who is simultaneously being prosecuted criminally for marijuana distribution and targeted by the state Department of Revenue for not collecting and remitting taxes on the pot he was allegedly distributing.”

By |2017-02-12T07:40:46-07:00May 10th, 2014|Stories & Articles|Comments Off on Washington Dispensary Owner’s Lawsuit Claims Washington Cannot Tax Marijuana Sales

Oklahoma Initiative Would Make Pot a Legal, Exportable Cash Crop

US News & World Report:  “Marijuana reform advocates hope Oklahoma will live up to its nickname – the Sooner State – by becoming the first U.S. jurisdiction to both legalize cannabis for personal use and allow it to be exported as a cash crop.  In the best-case scenario for pro-pot campaigners, there will be two initiatives on the November ballot: One that would allow medical marijuana and another more far-reaching initiative that would comprehensively dismantle status quo pot policies.

By |2017-02-12T07:40:46-07:00May 9th, 2014|Stories & Articles|Comments Off on Oklahoma Initiative Would Make Pot a Legal, Exportable Cash Crop

Colorado Lawmakers OK Special Bank for Marijuana Trade

Washington Post:  “the banking industry, which is federally regulated, is steering clear of anything to do with Colorado’s burgeoning marijuana industry. And that means the whole pot value chain – from grower to retailer to customer – is cash only.  In addition to making it harder for pot retailers to grow and manage a legitimate business, a cash-only enterprise is harder for the government to track for tax purposes and an easy target for criminals.  Wednesday, Colorado lawmakers . . . . approved a plan to setup a network of uninsured cooperatives that would offer basic banking services to pot businesses.

By |2014-05-08T18:44:57-07:00May 8th, 2014|Colorado News, Stories & Articles|Comments Off on Colorado Lawmakers OK Special Bank for Marijuana Trade

Donation Dilemmas

Tucson Weekly:  “someone told these caregivers—and a lot of folks in the medical marijuana community along with them—that all you have to do is call it a donation, and you’re legal. I would venture an educated guess that more than half of the medical marijuana community thinks it’s legal for patients and caregivers to just go around trading donations for meds. But the Arizona Medical Marijuana Act forbids patients or caregivers from selling marijuana, period. There aren’t any qualifiers in the law, such as ‘You can sell it if you don’t say you’re selling it, if you just call it a donation’.”

By |2014-05-08T06:49:01-07:00May 8th, 2014|Stories & Articles|Comments Off on Donation Dilemmas

World’s Largest Pot Farm

New York Post:  “Pot production is about to go industrial. Of course, you’ll have to head to Canada to take advantage of it.  CEN Biotech — a nutrition company best known for an amino acid supplement — is working on opening the “largest and most advanced” legal marijuana production facility in the world. The Ontario site will be able to grow 1.3 million pounds of pot from 50,000 plants — an operation that could produce $5 billion in sales per year when it starts producing in a few weeks after it passes government inspections.”

By |2014-05-08T06:37:14-07:00May 6th, 2014|Stories & Articles|Comments Off on World’s Largest Pot Farm

Science Behind the Munchies

havasunews.com:  “The munchies. That is, the well-known side effect of marijuana smoking that makes some users ravenously hungry.  We’ve all heard the jokes. But what about the science?  That, it turns out, is also of renewed interest.”

By |2014-05-03T08:11:26-07:00May 3rd, 2014|Stories & Articles|Comments Off on Science Behind the Munchies

Patients Exploit Arizona’s Medical Pot Law

Arizona Republic:  “He advertises himself as a medical-marijuana patient offering extra high-grade pot ‘with huge buds’ for a ‘reasonable donation.’  The seller’s Craigslist ad says those with medical-marijuana cards can purchase an ounce of high-quality pot — and get it delivered — for $250, about $150 less than what some medical marijuana dispensaries charge, he told The Arizona Republic.  . . . While Arizona’s medical-marijuana program is intended to be “purely medicinal,” some participants are exploiting the law by reselling marijuana they’ve legally purchased or grown, fueling the illegal drug market.

By |2014-05-03T08:06:43-07:00May 3rd, 2014|Stories & Articles|Comments Off on Patients Exploit Arizona’s Medical Pot Law
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