High Times – Radioactive Waste

High Times – Radioactive Waste

High Times - Radioactive Waste
High Times – Radioactive Waste

High Times – Radioactive Waste …well I finally went and did it…we have spent the past three or four years watching everyone we know make a really bad decision and buy into a cannabis industry business…so we could resist the stigma any longer, so we bought fifty shares of High Times…and they tell us that I will receive a very fancy stock certificate.

We will share some excerpts from an article that war more than a bit critical of the offering, but what the hell…at least now I can say that I am as dumb as everyone else that bought a really crappy investment in the legal cannabis industry. If it is good enough for John Boehner, who am I to say no.  A writer from Seeking Alpha stated

“Who buys this crap – honestly mostly schmucks.”

High Times (HITM), founded in 1974 as a monthly print cannabis magazine, describe themselves as the “original voice in cannabis.” The company has about 40 employees working from offices in New York and Los Angeles. So while not a cutting-edge hi-tech firm out of the Midwest, buying into the High Times IPO very much carries substantial outsized risk. It would be prudent for potential investors to exercise more care.

The company’s Reg A+ IPO can really only be a success if it garners a huge volume of retail investors who lack the ability to analyze financial statements or at the very least complete due diligence beyond the heavily filtered and pre-packaged High Times crowdfunding pitch. Everything about this company from the method it is trying to go public, its financials and its competitive positioning are toxic.

A Suboptimal CEO, The Bebo Disaster, And Bankruptcy

High Times was acquired in March 2017 by a syndicate of investors led by Adam Levin’s Oreva Capital, described on Crunchbase as a boutique private equity firm. The syndicate paid over $42 million for a 60% controlling stake, valuing the magazine at $70 million. A few months later in July and High Times announces its intention to go public through a merger with Origo Acquisition Corporation, a special purpose acquisition company (SPAC) listed on the NASDAQ stock exchange. They try to do so at a value of $250 million, 3.6x the valuation from just a few months ago.

High Times – Radioactive Waste

The announcement made in a 27 July 2017 SEC filing, stated Origo will acquire 100% of the equity of High Times in exchange for 23,474,178 newly-issued shares of Origo. And that the transaction “is subject to approval by shareholders of High Times and Origo and other customary closing conditions.” This path to go public failed after months of delay, leading High Times to go with the Reg A+ route and Origo to get delisted from Nasdaq. In the 23 February 2018 notice of its delisting, Origo cites “failure to complete the proposed merger with High Times” ultimately leading to non-compliance with the Nasdaq listing rule for SPACs to close an acquisition within 36 months of its IPO.

On the 1st February 2012, now High Times CEO sent out a tweet, “Bebo isn’t going anywhere! Long Live Bebo!”. This was in his capacity as CEO of Bebo, a social networking site, which at the peak of its popularity, in 2007, was more popular than MySpace and Facebook in the UK and Ireland. This led to AOL to acquire the company for $850 million in 2008, ultimately offloading it to a group of investors led by Adam Levin’s Criterion Capital Partners in 2010 for $10 million.

High Times – Radioactive Waste

Adam Levin is accused of “fraudulent” behavior, failing to hold a single board meeting in 20 months of operations, and withholding Bebo’s financial statements from shareholders, despite claiming the company was cash flow positive. Cutler, writing for TechCrunch provides further detail on the lawsuit’s progression. Levin had allowed the company default on its San Francisco office lease, resulting in its eviction. He had also failed to pay Bebo’s review fees to operate as a registered company in Australia, moved the company to Los Angeles without consulting the board, and paid himself $14,000 a month as CEO even though he wasn’t working full-time at the company. Adam Levin, commenting on the lawsuit in 2012, states “We believe this to be a baseless claim and amounts to a fishing expedition.” We have attempted to contact both Mr Levin and Criterion Capital for further comments on the lawsuit and fraud allegations but have not received a response.

On May 10, 2013, TechCrunch reports that Bebo filed a voluntary petition for Chapter 11 Bankruptcy in the Central District of California.

High Times – Radioactive Waste

A Really Bad Deal On The Back Of Retail Investors

High Times is attempting to sell 4,545,454 shares of their class A common stock for up to $50 million, at an offering price of $11 per share. On their crowdfunding page, the company informs potential investors that they don’t need a brokerage account to buy shares and they just need to meet the $99 investment minimum. To an extent, both these factors underlie a virgin investor base without the financial knowledge to adequately analyze an offering circular.

High Times is attempting its Reg A+ IPO at a $225 million valuation. This gives the company a P/S of 15.54 from its financial year (FY) 2017 revenue. This is a stratospheric price to pay for a company that has been operating for over forty-four years and realized a year-over-year revenue decline.

The company also saw a net loss of $24.7 million in the 2017 FY and a cash burn of $7.7 million during the same year. High Times’ financial position has also faced a material deterioration since its acquisition by Oreva capital. The working capital deficit at the end of the 2017 FY was $29.5 million, up from a deficit of $3.86 million a year ago. The pace of this deterioration has also ramped up as the results for the first quarter of 2018 show a 65% collapse in total revenue.

High Times – Radioactive Waste

The offering circular risk factors flags “a significant portion of the gross proceeds of up to $12.5 million will be used to pay accrued and unpaid accrued interest on outstanding purchase notes”. This led the company’s auditors to flag a “going concern” risk following the audit of its 2015, 2016 and 2017 financial statements. The company owes $13 million to ExWorks Capital Fund I, L.P. (“ExWorks”), their senior lender, with interest payable monthly at 15% per annum. ExWorks is also entitled to an additional fee of $2.8 million when the loan matures on February 28, 2020.

High Times is also obligated through its debt covenants to maintain a 1:1 ratio of funded debt to average total cash and cash equivalents starting from February 28, 2019. The collapse in revenue and subsequent increase in losses in the first quarter of 2018 puts the ability of the company to meet these covenants in doubt. The company states that a failure to maintain their “financial covenants would represent an event of default which may also cause ExWorks to foreclose on our assets prior to the maturity date of the loan.

High Times is a relic from an era of cannabis most companies within the space want to move on from. The company itself presents a unique set of risks that should be worrisome to any potential investors.

Source: High Times Reg A+ IPO Is A Mess To Be Avoided

A Dying Print Publication And Subpar Events Company

As evidenced by its $57.2 million in contractual obligations and the consecutive year-over-year decline in revenue from both “Festivals, events, competition” and “Publishing and advertising”, High Times is a dying print publication and subpar events company, at best. Further, the company’s comparatively low rate of engagement with its followers on its Instagram platform dampens its claims as a “driving force” of the cannabis industry.

High Times – Radioactive Waste

Cannabis Prices Keep Declining

Cannabis Prices Keep Declining

Cannabis Prices Keep Declining – Marijuana prices are collapsing in Colorado and in other legalization states (e.g., Oregon, where the price can go as low as $100 per pound) because a legal business is dramatically cheaper to operate than an illegal one. Cannabis Prices Keep DecliningBecause states generally set their marijuana tax rates as a percentage of price, their revenue per sale sinks in direct proportion to the fall in marijuana prices. Ironically, in a bid for more tax revenue per marijuana sale, Colorado increased its marijuana tax rate from 10 percent to 15 percent last year, only to see the anticipated added tax revenue wiped out by falling prices in a year’s time.

States may have failed to anticipate this problem because of misleading predictions about the effects of legalization. Pro-legalization economist Jeffrey Miron projected in 2010 that marijuana prices would only fall 50 percent when prohibition was repealed, leaving the drug at a price that would yield high tax revenue. That was clearly a rosy scenario.

Cannabis Prices Keep Declining

A starker prediction made by drug policy analyst Jonathan Caulkins looks more prescient every day: He forecast that legalized marijuana will eventually fall in price to the level of other easily grown, legal plants like wheat and barley, such that a joint might sell for a nickel or even become a complimentary item akin to beer nuts at the bar. If that comes to pass, taxes based on a percentage of price might not even cover the costs of the government’s regulatory system for legal marijuana, meaning that rather than helping states’ bottom line the industry would be an outright drain on the public purse.

The simplest way for states to retain some revenue from marijuana sales is to tax the drug by weight, as California has always done and Maine has started to do. The main risk of this approach is that producers will sharply increase product potency to create more “bang per ounce.” However, this shortcoming of weight-based taxes can be surmounted by capping the allowed potency of marijuana products, a policy for which there is already a good case to be made on public health grounds.

Source: Marijuana is getting cheaper: Problem for some states?

Cannabis Prices Keep Declining

MJBizCon – Productive versus Madness

MJBizCon – Productive versus Madness

MJBizCon – Productive versus Madness – we need to begin by stating that we have a built-in bias against cannabis MJBizCon - Productive versus Madnessindustry conferences and trade shows. Pardon us for being cynical, but the combination of NCIA’s predilection for “pay to play” for speakers, the myriad of attorneys and “consultants” have embraced tradeshow appearances over serving the needs of real clients, and what seems to be a focus on “partying” over actually getting business done has left a taste in our mouths that we lovingly refer to as “smells bad, tastes worse”.

The focus [perceived or real] on offsite “parties” and events where both cannabis product and alcohol flow freely may have some value for “winks and nods” but, can’t possibly be conducive to the conduct of substantive business development and negotiation. We have heard from multiple individuals in the industry that they didn’t bother purchasing a ticket for the conferences presentation sessions but opted for an “exhibits only” pass and indicated that they were going to set up meetings outside of the conference, or just look for individuals that they were seeking to engage with at the parties.

Our view is that everyone attending a week-long party in Las Vegas is neither the most productive use of everyone’s time, and it certainly doesn’t do much to project a professional or even business-like image for the commercial cannabis industry.

MJBizCon – Productive versus Madness

We have written extensively about our thoughts [see Gumballs] on steps that the legal cannabis industry needs to undertake urgently to shore up its image and seek support at the Federal level to get cannabis off of DEA Schedule 1. The four pillars that we believe the industry needs to focus on are:

  • Regulated Markets

The creation and development of regulated, legal markets that are perceived as fair, having a reasonable cost without the complexity that so onerous that compliance is impossible [Our view is that California is well on its way to achieving that goal, though there are some significant corrections, notably with respect to compassionate medical use, compliance, and lab testing, and banking to be addressed.]

  • Licensed Professionals

The development of a significant pool of licensed professionals, particularly attorneys, certified public accountants, enrolled agents [yep, that group that I poke at all the time is critical here assuming that they have the requisite thirty hours or accounting], and scientists [my term for the chemists, healthcare, and others with graduate-level degrees and professional licenses that are critical to demonstrating the integrity of the industry to the regulators.

  • Competent Skilled Workforce

The workforce that performs substantially all of the labor and services [distinct from Licensed Professionals] that provides skilled, semi-skilled and manual labor for the cannabis industry [akin the enlisted ranks in the military] are critical. The workforce needs to be recognized as performing legal, legitimate services that feed families and contribute to communities, part of the legal immigration, taxation, and healthcare systems [free from the scourges of human trafficking and scourges of discrimination, sexual harassment and abuse]. Cannabis needs to lose its status as “a plant with an attitude” and be recognized for what has become, legal agricultural activity in California and other states. [The larger discussion includes, delisting from DEA Schedule I, acceptance by FinCEN and the banking system and a change in IRC Sec. 280E, possible replacement with an excise tax.].

  • Industry Self-Governance, Guidelines, and Process

The commercial cannabis industry needs to follow through on the creation of organizations, standards, and procedures to demonstrate its integrity. The process is going to have to include leadership from industry associations that take a long view with respect to lobbying activity, an objective process for the selection and sponsorship of content providers at trade shows and on websites. The abhorrent practices of “pay for play” for platform speakers, and tolerance of incompetence, outright criminal conduct, and the pontification of rubbish, blather, and gibberish as “expert knowledge” needs to cease. Pseudo-scientific claims and self-aggrandizement can NOT be tolerated if the industry is going to have credibility.

The coming months are going to be critical for the industry…we would certainly hope that everyone considers the need to step up and demonstrate the attributes that would support the respect and recognition that the industry is seeking.

MJBizCon – Productive versus Madness

Recent Blog Articles

Recent Blog Articles

Recent Blog Articles published on aBIZinaBOX Cannabis

Sessions Get Great Cornholio

Election Results – Cannabis Wins

Fontana Ordinance Struck Down

Cannabis Distributor Gets Federal Prison

aBIZinaBOX Midterm Election Contest

Grow – Neighboring Properties Unaffected

LA Cannabis Regulators Warn

Financial – Owner Interest Update

Management Companies – Cannabis Operations

CalCannabis Temporary License Cut-off

California Local Elections

Cannabis Investment Fraud – Illinois

BCC Regulates Technology Platforms

NCIA Nearly Doubles Funds

CCIA Selects Indiva Advisors – Official CPA Firm

Welcome Canadian Reefer Madness

Northern California Cannabis Harvest 2018

DEA Reiterates Cannabis Federally Illegal

ICE – What Canadians Should Expect

Mendocino Appellations Project Update

Chicago – Stop – Frisk – Trump – Says

Cannabis Busts – US Borders

MRR Ancillary Product Report

IRS Updates Biz Meal Guidelines

Structuring Transactions To Evade

Structuring Inbound Investments

California Legislative Update 10 2 2018

CloudHQ.net – Interworking Tool

Where Do You Put Your Cannabis?

Legal Mumbo-Jumbo – Advisors

Green-Flower.com Certifications ??

Employee Payroll – 1099 Contractors – IRC Sec. 199A Pass-Thru Deductions

California Seed-Sale Halloween

SF Cannabis Consumption Permit Regs

California Extends Privacy Rules – Adult Use

METRC Frequently Asked Questions

Cannabis Business Accounting Guidelines

Coke With Your Cannabis?

Sell Cannabis – Fail Paying Taxes – Jail

Check Out Wake – Bake Daily

Los Angeles – Transactions under Prop. M

Recent Blog Articles

Sessions Get Great Cornholio

Sessions Get Great Cornholio

Sessions Get Great Cornholio – Attorney General Jeff Sessions was pushed out Wednesday as the country’s chief law enforcement officer.

Cannabis stocks, already bolstered by wins in the midterm elections, got an added boost when anti-pot Sessions Get Great CornholioAttorney General Jeff Sessions announced his resignation Wednesday afternoon.

Exchange-traded funds that track marijuana stocks, including the Horizons Marijuana Life Sciences Index ETF in Toronto and the U.S.-listed ETFMG Alternative Harvest ETF, jumped to fresh highs on the news, gaining 7 percent and 6.2 percent respectively.

Tilray Inc. saw the biggest surge, climbing as much as 25 percent in its biggest gain since Sept. 19, when the stock almost doubled before giving back most of the gains in a wild ride for investors. Other cannabis-related stocks in both the U.S. and Canada also gained.

Sessions was a major foe of marijuana legalization, moving last January to rescind an Obama-era policy that allowed states to make their own decisions on cannabis without interference from the federal government. That announcement sent pot shares plunging three days after California became the largest jurisdiction to legalize recreational use.

Cannabis stocks were broadly higher Wednesday after Michigan voted to legalize recreational marijuana and Missouri approved medical pot. The Democrats’ House of Representatives win was also thought to be a positive catalyst for stocks, making legal reform more likely.

Sessions told the president in a one-page letter that he was submitting his resignation “at your request.”

Trump announced in a tweet that he was naming Sessions’ chief of staff Matthew Whitaker, a former United States attorney from Iowa, as acting attorney general.

The resignation was the culmination of a toxic relationship that frayed just weeks into the attorney general’s tumultuous tenure when he stepped aside from the investigation into potential coordination between the president’s Republican campaign and Russia.

Trump blamed the decision for opening the door to the appointment of special counsel Robert Mueller, who took over the Russia investigation and began examining whether Trump’s hectoring of Sessions was part of a broader effort to obstruct justice and stymie the probe.

The implications for Mueller’s investigation were not immediately clear. The Justice Department did not announce a departure for Deputy Attorney General Rod Rosenstein, who appointed Mueller more than a year and a half ago and has closely overseen his work since then.

Source: BREAKING: Anti-cannabis advocate Jeff Sessions forced out as attorney general by Trump

Sessions Get Great Cornholio

Election Results – Cannabis Wins

Election Results – Cannabis Wins Election Results – Cannabis Wins – The marijuana election results are in! Michigan legalized marijuana.  North Dakota rejected a marijuana legalization measure. The measure failed by a margin of 41 percent in favor to 59 percent againUnlike cannabis legalization laws approved in a number of other states to date, the North Dakota initiative would have set no … Continue reading “Election Results – Cannabis Wins”

Election Results – Cannabis Wins Election Results – Cannabis Wins – The marijuana election results are in! Michigan legalized marijuana.  North Dakota rejected a marijuana legalization measure. The measure failed by a margin of 41 percent in favor to 59 percent againUnlike cannabis legalization laws approved in a number of other states to date, the North Dakota initiative would have set no … Continue reading "Election Results – Cannabis Wins"

Fontana Ordinance Struck Down

Fontana Ordinance Struck Down

Fontana Ordinance Struck Down – San Bernardino County Superior Court Judge David Cohn has issued a ruling striking down parts of a City of Fontana ordinance placing restrictions on residential marijuana growers in the first court case limiting aFontana Ordinance Struck Down local jurisdiction’s ability to regulate personal cultivation rights in California under Proposition 64 (AUMA).

The ruling is the result of a lawsuit filed against the city by the Drug Policy Alliance and the ACLU (at the urging of Cal NORML) on behalf of plaintiff Mike Harris, a retired ironworker and registered nurse seeking to cultivate marijuana in his Fontana home to ease his arthritis and pain from past injuries.

“The issue, in this case, is how far a city can restrict the category of persons who are entitled to grow marijuana plants, and the circumstances under which they may grow the plants, without running afoul of the AUMA’s requirement that the regulations be ‘reasonable.’ The City of Fontana has gone too far,” wrote the judge.

The ruling leaves in place the requirement to obtain a permit for indoor cultivation but disallows the $411 initial permit fee and the $230 annual renewal fee, instead of requiring the city to re-evaluate the cost of permitting based on the required changes to its ordinance.

Fontana Ordinance Struck Down

The ruling eliminates virtually all of the permit requirements plaintiffs objected to. Specifically, it:

• Eliminates all qualifications for the applicant other than that they be at least 21 years old. Gone are the requirements that a person not have certain felony convictions, be live-scanned, and not have any outstanding code enforcement actions or payments owed to the City.

• Eliminates the requirement that there be only one “cultivation area” in a dwelling.

• Eliminates the requirement that a “cultivation area” be used exclusively for growing marijuana.

• Eliminates the prohibition on storing chemicals and explosive gases in the “cultivation area”.

• Eliminates the requirement that the cultivation area is accessible by only one locked door, and that all windows, skylights, etc. in the area be lockable.

• Eliminates the requirement that the cultivation area is accessible only by a permit holder.

• Eliminates the requirement that the residence where cultivation takes place have all plumbing, electrical and other utilities “properly permitted by the City”.

• Eliminates the requirement for a building inspection of the premises prior to issuing a permit.

Fontana Ordinance Struck Down

“The remainder of the Ordinance may remain, although Fontana may wish to draft a less onerous ordinance instead,” the ruling states.

“We hope that this lawsuit serves as an example for other cities that have passed or are considering similar ordinances,” said Joy Haviland, staff attorney at DPA.

Prop. 64 requires local jurisdictions to allow 6-plant marijuana gardens for personal use but permits them to “reasonably regulate” the gardens. Regulations can include forcing gardens indoors; however, locals lose the ability to apply for grants to pay for law enforcement and other services if they ban personal outdoor gardens.

Source: Local Restrictions on Personal Cannabis Cultivation Struck Down in Court

Fontana Ordinance Struck Down

Assholes Love Cannabis

Assholes Love Cannabis

Assholes Love Cannabis  – the Great Cornholio who is a very high profile asshole, and an expert on TP and the bunghole has endorsed hemp toilet paper for a litany of reasons. Now the is no excuse that anyone can make not to support the legalization of cannabis. Our sole remaining question is whether hemp toilet paper falls under medicinal or recreational use.

Assholes Love Cannabis
Assholes Love Cannabis

People say hemp produces more pulp than trees. Hemp is much higher in cellulose, the component used to make paper – and has less lignin (which is removed pre-pulping) than timber. So, is there a way to measure cellulose content in plants? Maybe we can rate the paper according to how much land was used to make it, the effects on the ecosystem and how it affects the atmosphere…for 6-month-old hemp plants with higher cellulose than trees, how much trees would be killed for the same amount of let’s say an acre of high fiber cultivar hemp seeded generously.

Assholes Love Cannabis

How are the air and soil quality affected, how many animals and have lost their home and food source, how much topsoil may now blow away, and will there be more flooding as a result? There must also be a rating for how toxic the water becomes and what chemicals are used in processing, as they inevitably end up in the water and surrounding land. How does this compare to recycled paper? Is it worth looking into making items such as toilet paper and paper towels from raw hemp, or is continuing to make more of those products with recycled paper a better idea? Eventually, when more hemp paper is available en masse, the recycled paper will be made with hemp. The great benefit of hemp is that it is such a strong fiber and can be recycled many more times than tree paper.

Assholes Love Cannabis

Cannabis Cooperative Associations Intro

Cannabis Cooperative Associations Intro

Cannabis Cooperative Associations Intro marks our effort to introduce our clients and friends in the cannabis industry in California to a newly created form of business entity. Cannabis Cooperative Associations IntroCCA’s are an excellent vehicle for small, craft-oriented California cannabis cultivators [CalCannabis Cultivation Type 1A, 1B, 2A or 2B] to increase their operating efficiency and lower the cost of doing business.

  • CCA’s are an organization that is owned and controlled by licensed cultivators to grow, harvest and move cannabis products into the marketplace. Cannabis cooperatives share in the common purpose of supporting growers to meet their objectives of having thriving and sustainable businesses that are resilient and can adapt to member’s changing needs. Self-reliance and self-help are the features of cooperatives.


  • Changes in California law in 2018 relating to cannabis allow small outdoor growers to organize Cannabis Cooperative Associations (CCAs”).


  • CCAs are a special form of California corporation that is similar to a farmers’ agricultural cooperative.


  • The new statute specifies that certain license types may pool their resources for cannabis farming of no more than four acres total and all Members of the Association must be disclosed to the licensing agencies.


  • Specifically, the cooperatives must include three or more Members (that have not been licensed to operate a cannabis business in another state or country) and form an Association for the purpose of:

i) The cultivation, marketing, or selling of the cannabis products of its Members.

ii) The growing, harvesting, curing, drying, trimming, packing, grading, storing, or handling of any product of its Members.

iii) The manufacturing, selling, or supplying to its Members of machinery, equipment, or supplies.

  • CCAs can engage in all of the functions that take place in the movement of cannabis from the cultivator to consumer – processing, extracting, packaging, transportation, etc.


  • A CCA that engages in other functions must have licenses for such businesses, but if such business is conducted through entities that are wholly owned by the CCA, all of the business is deemed conducted by the cooperative association.


  • The special treatment of CCAs impacts regulation of cannabis businesses at both the local level and at the California level.


  • Local jurisdictions can regulate cannabis businesses conducted through CCAs only with respect to land use and public health and safety issues.


  • California law specifically authorizes CCAs to engage in distributor and manufacturer functions through wholly-owned entities [both corporate and non-corporate].


  • At the California level, all of the business activities are considered to be conducted by the cooperative association under a single umbrella of cultivators and the cultivator owned and operated businesses.


  • For example, a CCA that engages in processing as a wholly owned incorporated distributor is treated as if the grower/owners of the CCA are directly engaged in the business activity collectively.


  • California specific authorization of a CCA ’s business activities preempts local regulatory requirements regarding the operation of cannabis businesses except for land use and public health and safety.

If you would like information about the mechanics of organizing a CCA, we recommend you check out Emerald Grown which is a run by the former Executive Director of the California Grower’s Association, Hezekiah Allen who played a significant role in the development of CCA’s.

CCA’s help

  • Consumers enjoy affordable access to premium-quality, farm-fresh cannabis products.
  • Retailers forge deep supplier connections and have consistent access to quality inventory.
  • Farmers benefit from supply chain efficiencies, bulk purchasing, and shared marketing services.
  • Communities build local living economies based on thriving small farms and ancillary businesses.
Cannabis Cooperative Associations Intro

LA Cannabis Regulators Warn

LA Cannabis Regulators Warn

LA Cannabis Regulators Warn “those who are looking for work at a cannabis store or dispensary should know that many of these stores are unlicensed and are operating illegally under state and local law,” said Joseph Nicchitta, Cannabis Management Officer at LA Cannabis Regulators WarnLA County’s Office of Cannabis Management. “If you work at an illegal store, you could be physically unsafe. Our inspectors and law enforcement have observed unpermitted electrical wiring, exits that are blocked in case of a fire, and other dangerous conditions at illegal stores.”

Since recreational cannabis became legal statewide in January 2018, regulators have also begun receiving complaints from workers about unfair labor practices and possible violations, including wage theft and unsafe working conditions.

“We have begun to receive complaints from workers at illegal cannabis stores involving wage theft, sexual harassment, and unacceptable working conditions,” added Los Angeles County’s Department of Consumer and Business Affairs Director Brian J. Stiger. “Prospective employees should ask questions and educate themselves about the realities of the cannabis industry before they decide to sign up for a job.”

LA Cannabis Regulators Warn

Can I see your state and local license?
Ask to see both the store’s state and local license and check with the state and local licensing agencies to make sure the store has the proper license. Cannabis must be purchased from a licensed retail source with dual licensure in good standing with both state and local regulators. As of today, cannabis businesses are still prohibited in the unincorporated areas of L.A. County.

When will I receive my pay stub?
You should always receive a pay stub— even if you are paid in cash. The pay stub must include deductions, pay rates, and hours. When you are first hired, the employer must give you an initial compensation disclosure that gives information about your pay rate. It is also against the law to ask a retail employee to work for free on a probationary period longer than two hours.

What should I do if the authorities show up?
It should be a warning sign if your employer instructs you never to open the door for law enforcement, firefighters, or other city or county inspectors. A licensed and legal business is routinely inspected by government employees.

What time does the business close?
All legal cannabis stores close at 10 p.m. in California. You should not be working in a retail sales position after 10 p.m. because the law makes it illegal to sell between 10 p.m. and 6 a.m.

LA Cannabis Regulators Warn

The Los Angeles County Department of Consumer and Business Affairs’ Wage Enforcement Program investigates violations of the County’s Minimum Wage Ordinances for those employees who work in the unincorporated areas of the County. If your employer does not pay you the mandated minimum wage, you can file a complaint online at the Department of Consumer and Business Affairs website, via phone at (800) 593-8222, or email at [email protected]. The Department can also help you understand your rights under the County’s minimum wage laws, investigate alleged violations of the law by your employer, and help you get the wages that are owed to you. These services are free of charge and the Department will not ask or report your immigration status.

The City of LA’s Office of Wage Standards is responsible for implementing the guidelines of the Los Angeles Minimum Wage and Minimum Wage Enforcement Ordinances in the City of LA. This office ensures that employers in the City comply with the appropriate minimum wage rates specified by law and can investigate potential wage theft violations. To learn more or submit a complaint please visit the LA City Office of Wage Standards website.

Since 2016, the Los Angeles County Office of Cannabis Management (OCM) has served LA County and its residents by leading the transition of cannabis to a regulated market with policies that seek to protect consumers, and promote the health and safety of our communities. With a focus on responsible regulation and education, OCM is a resource to County Departments, other agencies, and the community. For more information, visit http://cannabis.lacounty.gov/

Source: Aspiring Bud Tender Protect Yourself

LA Cannabis Regulators Warn