Tag Archives: solution

KIND Financial Launches Canadian Payment Solution

By Aaron G. Biros
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KIND Financial, a technology and compliance software solutions provider in the cannabis industry, is launching a new e-commerce and payment processing platform in Canada. According to the press release, they are partnering with a Canadian bank to launch the KIND Seed to Payment platform, which is essentially an e-commerce gateway integrated with their compliance software, KIND’s RegTech platform.

David Dinenberg, founder and CEO of KIND Financial

David Dinenberg, founder and CEO of KIND Financial, says this is an approach to help alleviate the cannabis industry’s banking woes. “We’ve been very focused on a global vision and taking a strategic approach towards solving the cannabis industry’s largest problem – banking,” says Dinenberg. “Not only have we built a broad portfolio of finance and compliance solutions with a high-level of technical sophistication, but we’ve made a strong commitment to security and compliance, which is evident through our partnership with Microsoft.” A little over a year ago, they entered a partnership with Microsoft to utilize their cloud-based solutions for government traceability software.

According to the press release, the software has regulatory and security features built in, such as age and identity verification, which can help companies comply with security and chain of custody regulations. “Our mission is to ensure business and technological growth for all constituencies within the cannabis industry while ensuring full compliance with evolving regulations, and that’s why we’re thrilled to make these services available to our great neighbors in the north,” says Dinenberg. “We understand compliance will be a critical issue for some time to come, but with our solution, all providers and their partners can focus on the job at hand while keeping in line with regulatory mandates.”

KIND Financial has not done much work in Canada previously, but this could be a sign of a greater push for international expansion. “We’re excited to be working in a new country to boost the Canadian cannabis industry in a safe and regulated manner, and we look forward to expanding into other markets overseas,” says Dinenberg. The press release says the new platform is designed to work with different languages and foreign currencies, including the euro and Australian dollar, which could help Canadian producers enter emerging markets.

In addition to their announcement of the KIND Seed to Payment platform, the company also announced they will be rolling out a mobile payment system called KIND Pay, a digital payment option for consumers that will accept Visa and MasterCard. They anticipate that KIND Pay will launch before the end of this year.

Harborside, CanPay Announce Partnership, Launching Debit Payment System

By Aaron G. Biros
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CanPay, a debit payment solution for the cannabis space, announced today their partnership with Harborside, the largest medical dispensary brand in the United States. The partnership will allow Harborside’s more than 200,000 patients to use a mobile debit app when purchasing cannabis through their delivery service, instead of bringing cash.

For deliveries, patients would use the CanPay app on their device “to generate a secure, single-use payment token that includes no personal identifiable information,” according to the press release. A Harborside delivery employee scans the token and the money is transferred from the patient’s checking account to Harborside. This allows for delivery employees to make less cash transactions and affords patients the luxury of not having to take out cash to get their medicine.

Harborside, founded in 2006, is recognized as the largest nonprofit cannabis dispensary in California, and the United States. They were reportedly the first dispensary to lab test their products. Being an advocate for patients and their safety, they offer a variety of free health and wellness services. “It’s important to us that we stay on the forefront of patient care and access to the products our community needs to improve their quality of life,” says dress wedding, co-founder of Harborside. “CanPay enables us to continue delivering on those goals by normalizing the payment process for our patients and staff.”

CanPay launched last year in November and has since expanded to over 50 dispensaries and six different states. The premise of their system is a secure and safe transaction for customers or patients of dispensaries. “To ensure privacy and security, all purchases are made using non-identifiable, single-use, and random payment tokens generated in the CanPay App,” reads the press release. CanPay is currently serving businesses in Washington, California, Colorado, Maine, Florida, and Oregon.

Dustin Eide, CEO of CanPay

“Patients who rely on cannabis for preexisting medical conditions should not have to be inconvenienced or have their safety put at risk by a cash-only model,” says Dustin Eide, chief executive officer of CanPay. “Delivery is a mainstream solution and payments should be able to keep up with the industry. By partnering with Harborside, we are providing their patients the benefits of more secure, transparent transactions.” According to Eide, their service is compliant with federal medical cannabis policy and guidance. “CanPay’s service operates under compliance programs built around the Cole Memo and FinCEN Guidance issued by the Department of Justice and the Treasury, respectively, and updated on Feb. 14, 2014 which provided guidance to financial institutions on the conditions with which they can provide banking services to the state regulated cannabis industry without incurring federal action,” says Eide. “Also, CanPay utilizes the Automated Clearing House (ACH) network to affect our services in full transparency. While Visa and MasterCard have established clear rules prohibiting cannabis transactions on their networks, the ACH network relies on the individual financial institutions to determine what type of transactions may occur.” Because of that, Eide says, there’s no need to hide transactions, unlike services that use Visa or MasterCard that require using an obscure legal entity name or a financial intermediary’s name.

According to Dustin Eide, CanPay is designed to be a long-term solution for the cannabis industry’s cash transaction woes. “At approximately 2% fees to the dispensary (and no cost to the consumer), CanPay will be a low cost payment service compared to Visa and MasterCard when they do enter the market, which we’ve been told by our contacts at the companies that this won’t be until federal law changes,” says Eide. He thinks that when MasterCard and Visa begin working with cannabis businesses, they will charge higher transaction fees in the 3-4% range, given the high-risk nature of the market. “CanPay’s challenge is to gain sufficient breadth of coverage with dispensaries and adoption among cannabis consumers to be able to offer that value on a wide scale prior to Visa and MasterCard’s entry into the market.”

Looking to the future, Eide hopes the partnership with Harborside will lead to more business. “CanPay couldn’t ask for a better partner to enter into the California cannabis market, which is expected to top $20 billion by 2020, than Harborside, one of the world’s most respected and well-known cannabis organizations,” says Eide. “It is an honor to be chosen by Harborside, who has their pick of services for the cannabis industry, to facilitate their cashless delivery payments and enhance the safety and convenience of purchasing medicine from Harborside for both their patients and their employees.”

BioTrackTHC Awarded Delaware’s Tracking Software Contract

By Aaron G. Biros
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According to a press release, the State of Delaware has chosen BioTrackTHC as their partner in seed-to-sale tracking software. Delaware’s Department of Health and Social Services (DHSS) signed a contract with BioTrackTHC for the tracking and patient registry software.

In 2016, Delaware issued a request for proposals for “the Delaware Enterprise Consolidated Cannabis Control System,” which encompasses the statewide patient registry and seed-to-sale traceability systems. “Our sincerest thanks to DHSS for choosing Team BioTrack,” says Patrick Vo, CEO of BioTrackTHC. “DHSS has been wonderful to work with throughout the contracting process, and we look forward to partnering with them to provide the tools and data they need to continue overseeing the industry and protecting their patients.” BioTrack’s software was selected as the winner of a number of government contracts in other states previously for the same role.

Their software is currently used in government traceability systems in Washington, New Mexico, Illinois, Hawaii, New York and the city of Arcata, California. The press release states regulators will have the ability to view the retail data “including plant counts and usable inventory, lab results, transportation, and point-of-sale data—to perform periodic audits and ensure compliance.” The patient registry will also provide better patient accessibility through the new software with a faster turn around time and automated application processing.

BioTrackTHC provides technology solutions for businesses and governments to tracking products throughout the supply chain to the point of sale. The software systems help businesses remain compliant with regulations and monitor data for things like inventory management.

The Nerd Perspective

Detecting the Undetectable

By Amanda Rigdon
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In my last column, I took a refreshing step out of the weeds of the specifics behind cannabis analyses and took a broader, less technical look at the cannabis industry. I had envisioned The Nerd Perspective being filled with profound insights that I have had in the cannabis industry, but I have realized that if I restricted this column to insights most would consider profound…well…there would not be many articles. So in this article, I want to share an insight with you, but not one that is earth shattering. Instead, I want to talk about a simple concept in a way that might help you think a little differently about the results your lab generates, the results you have to pay for or even the results printed on a cannabis product you might purchase.

This article is all about the simple concept of concentration – the expression of how much of something there is in relation to something else. We use expressions of concentration all the time – calories per serving, percent alcohol in beer, even poll results in the presidential election circus. Cannabis is not excluded from our flippant use of concentration terms – percent cannabinoid content, parts-per-million (ppm) residual solvents, and parts-per-billion (ppb) pesticides. Most of us know the definition of percent, ppm, and ppb, and we use these terms all the time when discussing cannabis analytical methods. During my career in analytical chemistry, it has occurred to me that parts per billion is a really infinitesimal amount…I know that intellectually, but I have never tried to actually visualize it. So being the nerd that I am, I went about comparing these often-used concentration terms visually in my kitchen.

I started by preparing a 1% solution of food coloring paste in water. This was accomplished by weighing out 5g of the food coloring and dissolving it into 500mL of water (about one teaspoon into a pint). The resulting solution was so dark it was almost black:

rsz_percent2

The picture above expresses the low end of what we care about in terms of cannabinoid concentration and a pretty normal value for a high-concentration terpene in cannabis.

I then took one teaspoon of that mixture and dissolved it into 1.32 gallons of water (5mL into 5000mL), resulting in a 10ppm solution of green food coloring in water:

rsz_ppm

I did not expect the resulting solution to be so light colored given the almost-black starting solution, but I did dilute the solution one thousand times. To put this into perspective, 10ppm is well above many state regulatory levels for benzene in a cannabis concentrate.

I then took one teaspoon of the almost-colorless 10ppm solution and dissolved that into another 1.32 gallons of water, resulting in a very boring-looking 10ppb solution of green food coloring in water:

rsz_1ppb

Obviously, since I diluted the almost-colorless 10ppm solution a thousand times, the green food coloring cannot be seen in the picture above. As a reference, 10ppb is on the low end of some regulations for pesticides in food matrices, including – possibly – cannabis. I know the above picture is not really very compelling, so let’s think in terms of mass. The picture above shows eleven pounds of water. That eleven pounds of water contains 50 micrograms of food coloring…the weight of a single grain of sand.

To expand on the mass idea, let’s take a look at the total mass of cannabis sold legally in Colorado in 2015 – all 251,469 pounds of it. To express just how staggeringly small the figure of 10ppb is, if we assume that all of that cannabis was contaminated with 10ppb of abamectin, the total mass of abamectin in that huge amount of cannabis would be just 1.143g – less than half the mass of a penny.

To me, that is an extremely compelling picture. The fact is there are instruments available that can measure such infinitesimal concentrations. What’s more, these tiny concentrations can be measured in the presence of relatively massive amounts of other compounds – cannabinoids, terpenes, sugars, fats – that are always present in any given cannabis sample. The point I’d like to make is that the accurate measurement of trace amounts of cannabis contaminants including pesticides and residual solvents is an astounding feat that borders on magical. This feat is not magic though. It requires extremely delicate instrumentation, ultra-pure reagents, expert analysts, and labor-intensive sample preparation. It is far from trivial, and unlike magic, requires a large investment on the part of the laboratories performing this feat of science. Other industries have embraced this reality, and the cannabis industry is well on its way toward that end…hopefully this article will help put the job of the cannabis analytical lab into perspective.