Scythian Cannabis Real Estate Partner

Glossary of Cannabis Terms

The U.S. cannabis industry is booming, with billions of dollars being generated by cannabis companies and even more money being made by investors. As more and more states legalize cannabis for either recreational or medical use, the future looks incredibly bright for the cannabis industry as a whole. Scythian Real Estate provides individuals with a unique opportunity to invest in cannabis real estate at an early stage. Scythian also provides capital and resources to some of the largest cannabis operators in the country.
Some of the terminology used in the cannabis industry can be confusing. Below, you will find a detailed glossary of cannabis terms and definitions. For definitions of words and phrases commonly used in cannabis real estate investing, you can also view Scythian’s Glossary of Real Estate Investing Terms.

Cannabis Industry Terms

Adult Use:
Adult-use cannabis is a term used by states where cannabis use has been legalized for adults over the age of 21. Also known as recreational-use cannabis, adult-use cannabis is sold at dispensaries that have been granted operating licenses by the state. Adult use can be contrasted with medical use, which refers to cannabis sold and used for medical purposes. As of November 2020, a total of 15 states, as well as the District of Columbia, have legalized adult-use cannabis.

The cannabis aroma is caused by different terpenes and terpenoids present in the cannabis plant. Since certain cannabis strains have unique terpene compositions, some cannabis strains feature stronger and more pungent aromas than other strains. Cultivators can control marijuana aroma by manipulating fertilizer, soil, water, light, and other environmental factors during the cultivation, harvesting, and drying processes.

Also known as “BX,” backcross is a type of cannabis breeding in which the grower uses just one parent strain of marijuana and targets a single, favorable characteristic of the parent plant. Backcrossing has an advantage over traditional breeding because backcross breeding results in cannabis offspring that carries two sets of desirable genes.

Buds are the consumable nuggets taken from a mature cannabis plant in order to be ground up and then smoked. In the context of marijuana, “bud” is also a synonym for “flower” and may contain a heavy concentration of cannabinoids. The quality of a bud is often determined by its smell and appearance.

Budder is a cannabis concentrate or extract that is yellow in appearance and that has a consistency and texture similar to butter, which is where the cannabis concentrate gets its name from. Budder is one of the more potent and flavorful forms of cannabis because it has high tetrahydrocannabinol (THC) content.

Butane Hash Oil:
Butane hash oil, or BHO, is cannabis oil that is extracted from marijuana leaves and flowers through a process that uses butane as the primary solvent. Depending on the particular extraction process used, BHO comes in various consistencies: wax, shatter, crumble, budder, or sauce. After extraction, BHO can be smoked with a specially designed bong, inhaled through a hash pen or e-cigarette, or eaten as an edible.

Also known as CBD, cannabidiol is a chemical compound found in the sativa marijuana plant. Since the dominant active ingredient in marijuana is tetrahydrocannabinol (THC), CBD does not affect the user’s brain functions and does not typically cause the user to get high. Instead, cannabidiol is often consumed for its calming effects, as well as to treat chronic pain, anxiety, and other medical conditions. While recreational marijuana is not yet legal in many states, CBD can be purchased legally in most states, including Colorado, Michigan, and Nevada. Cannabidiol-infused products that are available at retail stores include hemp oils, CBD lotions, and CBD edibles such as gummies, brownies, sodas, and coffee drinks.

Cannabinoids are substances/acids found in the cannabis plant. The major cannabinoids are cannabidiol (CBD) and tetrahydrocannabinol (THC). A number of drugs containing cannabinoids have been approved by the Food and Drug Administration (FDA) for medical use, including drugs to treat cancer patients and people with HIV/AIDS. Additionally, some states have passed laws allowing for the legal sale of foods containing cannabinoids.

In the context of cannabis cultivation, a clone is a cannabis plant that is an exact genetic copy of its mother plant. Marijuana cultivators often clone cannabis plants rather than grow them from seeds because it is easier to control the results and ensure that the cloned plant is female (as opposed to male) and has a high yield.

A cannabis concentrate is an extract derived from cannabis and containing high amounts of terpenes and cannabinoids like tetrahydrocannabinol (THC). Marijuana concentrates are popular among consumers because they have higher potency that leads to more intense highs, result in fast relief for medical marijuana patients, and contain stronger and more well-defined flavors. Cannabis concentrates are sometimes called “dabs” because one of the most popular ways to consume concentrates is dabbing.

Controlled Substances Act:
The Controlled Substances Act (CSA) is a federal law that regulates the manufacture, distribution, possession, and use of drugs in the United States. The Drug Enforcement Administration (DEA) and the Food and Drug Administration (FDA) determine the classification of “schedule” narcotics. Marijuana is currently classified at the federal level as a Schedule I drug, along with GHB, LSD, heroin, and ecstasy. Schedule I narcotics are defined as substances that have a high potential for abuse, that do not have a currently accepted medical use in treatment, and that are not safe for use under medical supervision.

Crossbreeding occurs when two different cannabis plant strains are bred together. Cannabis strain breeders attempt to combine the best features from distinct “parent” strains to create a unique blend that captures all the positive qualities of the parents but none of the negative qualities. The process of crossbreeding two cannabis strains can take several years to achieve the desired effects.

Crumble is a type of cannabis concentrate or extract with a crumbly surface, yellow appearance, and high tetrahydrocannabinol (THC) levels. Cannabis crumble is also known as crumble wax or honeycomb wax because it looks like honeycomb. While budder wax, shatter wax, and crumble wax are all made through a similar extraction process that involves intense heating, only crumble has a malleable texture that falls apart. Cannabis crumble can be smoked or dabbed.

Also known as trichomes, crystals are found on the marijuana plant and consist almost entirely of tetrahydrocannabinol (THC). Cannabis plants with a large number of crystals may provide more potency and stronger highs for the user. As a result, crystals are extremely popular among medical cannabis consumers. Cultivators typically use crystals to make crystalline, a solid cannabis concentrate that can be consumed via dabbing or smoking.

Cannabis flowers are typically grown through a process known as cultivation. The cannabis plant begins as a seed that is then cultivated in several stages: germination, seedling, vegetation, pre-flowering, and flowering. Cannabis can be grown indoors or outdoors, with each type of cannabis cultivation presenting unique challenges. Factors that may affect cannabis cultivation include soil quality, watering frequency, temperature, humidity, light, and access to nutrients.

Dabbing is the act of inhaling concentrated cannabis oil in the form of a smoke-free vapor after the cannabis has been extracted through heating. Some patients are able to treat chronic pain by dabbing because the cannabis vapor quickly enters the lungs, magnifying its potency. Dabbing is potentially dangerous because it involves highly flammable gases that can cause an explosion.

Decarboxylation is a process that involves applying heat, alcohol, or fats to cannabis in order to activate tetrahydrocannabinol (THC) and create a maximum “high” for the user. During this process, carbon dioxide is released from the cannabis. Unless marijuana is decarboxylated, the user is unlikely to experience any effects. In the case of smoking or vaporizing marijuana, decarboxylation happens instantly. When making edibles or creating a cannabis product for topical use, incorrect decarboxylation can result in degraded THC and reduced potency.

Diesel cannabis is a hybrid strain of marijuana that includes cannabis sativa. The Diesel cannabis plant has large buds that are dark green and that contain noticeable trichome crystals. Diesel cannabis is a popular strain among both recreational users and medical users because it may reduce stress and produce a long-lasting high. When smoked, Diesel cannabis has an aroma similar to Diesel fuel.

A dispensary is a physical location, often a retail storefront, at which people can legally purchase cannabis for either recreational use or medical use. Cannabis dispensaries are regulated by state and local governments and can only operate with a state-issued license.

Marijuana edibles are food products and beverages infused with cannabinoids. Edibles are often sold at cannabis dispensaries as brownies, candy bars, cookies, gummies, energy drinks, cooking oil, and butter. An edible can lead to intense highs and have long-lasting effects for the user because it takes longer to metabolize marijuana when ingested into the stomach and the liver than marijuana which is inhaled and subsequently enters the bloodstream through the lungs.

A cannabis extract is a concentrate made with a solvent. Solvents that are often used in the cannabis extraction process include butane, carbon dioxide, ethanol, and propane. One of these solvents is combined with the cannabis plant to strip away the concentrated cannabinoid plant matter, which is collected for later use. Some of the most popular cannabis extracts are budder, butane hash oil (BHO), crumble, ISO hash, live resin, shatter, and wax. Many of these extracts have high potency and are typically consumed through dabbing, edibles, or drinkables.

Farm Bill:
The 2018 Farm Bill, also known as the Agriculture Improvement Act of 2018, was passed by the United States Congress largely to provide necessary subsidies and guidance to farmers. The law also legalized hemp at the federal level, making it legal to cultivate hemp in any state and to transport hemp across state lines for interstate commerce. The legislation drew a clear distinction between hemp and cannabis (marijuana) by stipulating that legal hemp cannot contain more than 0.3 percent of tetrahydrocannabinol (THC).

Feminization refers to the process of breeding two female cannabis plants to create a female, bud-bearing cannabis plant. Cultivators do this to ensure that the breeding does not result in a male cannabis plant, which tends to have a lower yield of cannabinoid-rich flowers and buds than a female plant. The specific process of feminization requires the grower to force one female cannabis plant to produce pollen sacs, which are then harvested for pollen and used to pollinate a second female plant and generate feminized seeds.

Feminization refers to the process of breeding two female cannabis plants to create a female, bud-bearing cannabis plant. Cultivators do this to ensure that the breeding does not result in a male cannabis plant, which tends to have a lower yield of cannabinoid-rich flowers and buds than a female plant. The specific process of feminization requires the grower to force one female cannabis plant to produce pollen sacs, which are then harvested for pollen and used to pollinate a second female plant and generate feminized seeds.

The cannabis flower is the smokable part of the cannabis plant. Trichomes cover the cannabis flower and provide protection against predators, wind, and UV rays. While the flower can be found on either the male or female cannabis plant, only the flower on the female cannabis plant contains tetrahydrocannabinol (THC) that creates a high for the cannabis user when smoked. In addition to being smoked with a bong or pipe, the cannabis flower can also be consumed with a vaporizer by rolling the flower in a marijuana cigarette (e.g., a blunt or joint).

Germination is the start of the cannabis plant’s growth cycle when a seed first cracks and sprouts a seedling. During cultivation, marijuana growers may trigger the germination process to accelerate the growth cycle. Without germination, a cannabis seed will not have access to the water, oxygen, and other nutrients needed for plant growth.

Also known as hashish, hash is concentrated cannabis resin that has been extracted from the cannabis plant. The two most common types of hash are dry sift hash and ice water hash, with each getting its name from the specific process used to separate and extract the hashish. Hash is often smoked or dabbed (inhaled after being extracted via extreme heat). Smoking or dabbing hash can have a greater effect on the user than smoking or dabbing unconcentrated cannabis because hash oil is significantly more potent than a typical cannabis flower.

Hemp is a particular variety of the cannabis sativa species. Hemp has a lower concentration of tetrahydrocannabinol (THC) than cannabis, which results in more limited psychoactive effects on the user’s mind. The minimal amount of THC in hemp is one reason that the U.S. federal government legalized hemp in the 2018 Farm Bill. Hemp typically has a high concentration of cannabidiol (CBD), making hemp a popular choice for therapeutic treatments in the form of CBD oils or tinctures. Industrial hemp has a variety of uses, including building materials, textiles, biofuels, and food products. Hemp fibers, cultivated from the plant’s stems, are often used to make clothing, paper, rope, and other materials.

Hybrid cannabis is a combination of indica and sativa, two species of cannabis plants. Cannabis cultivators breed indica and sativa plants together to create a hybrid strain that has been carefully calibrated for optimal quality. Hybrid strains of cannabis like the OG Kush strain and the Cookies strain are popular with consumers because the strains are often able to harness the best qualities of both indica and sativa, resulting in a “balanced” high for the user that can be mellow and energizing at the same time. Some hybrid cannabis strains are labeled as either “indica-dominant” or “sativa-dominant,” depending on which parent species is more dominant in the strain.

Also known as “hydro weed,” hydroponics is a cultivation method in which cannabis is grown without soil. Growers typically use their own nutrients and fertilizer mix, which means that the growers have more control over the hydroponic growing process. Hydroponic marijuana can grow faster than soil-based cannabis and yields a higher-quality flower because of the direct uptake of nutrients and cannabis during the growing process. Some of the different kinds of hydroponic grow systems include Deep Water Culture (DWC), the drip system, ebb and flow systems, Nutrient Film Technique (NFT), and the wick system.

Indica is a species of marijuana, as distinguished from ruderalis and sativa. Indica plants are short and compact, as well as indigenous to areas with colder climates. This makes indica plants ideal for indoor growing. When compared to sativa plants, indica plants are relatively higher yielding because they grow faster. As a result, cannabis indica strains may produce a relaxed, mellow high for the user.

Kief refers to the resin glands that accumulate after being sifted from cannabis flowers by grinding the flowers with a mesh screen or sieve. Kief is highly potent due to a high concentration of tetrahydrocannabinol (THC), which is why the resin glands may be pressed into hash for consumption through dabbing. Kief can also be sprinkled on top of a bowl, joint, or blunt to create a more intense high for the user.

Kind, or kind bud, is slang for high-quality cannabis flower featuring a high level of tetrahydrocannabinol (THC). Kind bud is extremely popular among cannabis consumers due to its potency and perceived ability to induce a euphoric high, even with a very small dosage.

Kush is a popular strain of cannabis that originates from the Hindu-Kush mountain range in India, Pakistan, and Afghanistan. Kush cannabis is known for having certain attributes, such as dense buds, smooth flavors, a pungent aroma, and sedative effects on the user. There are several Kush varieties and strains, including OG Kush, Purple Kush, Master Kush, and Bubba Kush. The term “Kush” is also used as slang to refer to any high-quality cannabis strain, regardless of its origins.

Limited License State:
Limited license states that have legalized cannabis for either recreational or medical use allow cannabis companies to operate dispensaries or marijuana cultivation and processing sites so long as those companies are granted licenses to do so. The total number of licenses available for cannabis operations is limited, however, and state regulators ultimately must decide whether to approve or reject a particular application and award a permit to the applicant. As a result, the application process for these limited cannabis operation licenses is often extremely competitive. Moreover, different states have different rules and regulations, which can make the cannabis licensing application process even more complicated and expensive. Many cannabis operators looking to apply for either a dispensary license or a marijuana cultivation license first raise money and acquire the real estate location on which they plan to operate.

Live Resin:
Live resin is a type of extracted cannabis concentrate that comes from fresh flower buds and sugar leaves on cannabis plants. The “freshness” of live resin refers to the fact that the cannabis plant has not been dried or cured prior to extraction of the marijuana concentrate. Instead, the cannabis plant is flash-freezed and then the concentrate is extracted, which preserves terpenes (essential oils) and helps to ensure that the full flavor and aroma of the cannabis remains intact.

Medical Use:
Cannabis can be used for either recreational purposes or medical purposes. The main cannabinoids in cannabis, tetrahydrocannabinol (THC) and cannabidiol (CBD), can have strong effects on the user’s body when cannabis is taken for medical purposes. Medical marijuana is commonly used to treat chronic pain, diseases, and health conditions, including cancer, Alzheimer’s disease, Crohn’s disease, HIV/AIDS, multiple sclerosis (MS), posttraumatic stress disorder (PTSD), epilepsy, glaucoma, anorexia and other eating disorders, appetite loss, nausea, and seizures. As of November 2020, a total of 35 states, as well as the District of Columbia, have legalized medical-use cannabis. Medical cannabis remains illegal at the federal level, and the U.S. Food and Drug Administration (FDA) has only approved medical marijuana for treatment of certain forms of epilepsy. In states where medical-use cannabis is legal, a patient must first obtain a written recommendation or prescription from a doctor indicating that the patient has a qualifying condition before legally obtaining medical cannabis from a licensed dispensary.

MIP Facility:
An MIP facility, or marijuana infused products facility, is a plant or factory that produces cannabis concentrates, oils, tinctures, topicals, edibles, and other products that contain cannabis. MIPs are prevalent in states where cannabis has been legalized for either adult use or medical use. Many MIP facilities have high-tech laboratories and state-of-the-art equipment for developing and improving cannabis strains. The marijuana-infused products that come from MIP facilities are often among the most popular sold at dispensaries.

Nabilone is a synthetic (man-made) cannabinoid that mimics tetrahydrocannabinol (THC) found in cannabis and that has a primary use as a therapeutic. Nabilone can be used by cancer patients to prevent nausea and vomiting caused by cancer treatment medications and chemotherapy. The leading brand name that nabilone is sold under in the United States is Cesamet. In Canada and other countries, nabilone is also used to treat chronic pain.

Generally speaking, a phenotype is the genetic term used to describe an organism’s observable characteristics or traits, such as the organism’s physical structure, properties, and behavior. The phenotype of a cannabis plant influences several important factors in the resulting cannabis strain after cultivation, including taste, smell, color, and potency. The growing techniques used by marijuana cultivators often focus on genotypes (the genetic code of an organism) and phenotypes because the genetic makeup of the cannabis plant, and how that genetic makeup is altered or influenced by its environment, can have a profound effect on the quality of a cannabis strain.

Recreational Use:
Recreational use of cannabis means that the drug is being used for personal enjoyment and not primarily for any medical reason. Recreational cannabis tends to have a higher concentration of tetrahydrocannabinol (THC) than medical-use cannabis because THC is what gives users their high when smoking marijuana. As of November 2020, recreational cannabis has been legalized in 15 states and the District of Columbia, with cannabis operators selling recreational cannabis to consumers at state-licensed dispensaries. Also known as “adult use,” legal recreational use of marijuana in these states is limited to adults over the age of 21.

Cannabis resin is a light brown, sticky substance found in the glandular hairs (trichomes) on the surface of the cannabis plant. Resin holds the trichomes together and protects the cannabis plant’s cannabinoids and terpenes against pests. Most of the tetrahydrocannabinol (THC) found in the cannabis plant is contained in resin. THC-rich resin is collected during the cultivation process and then manufactured as cannabis concentrates such as hash, butane hash oil (BHO), rosin, and live resin.

Cannabis ruderalis is believed by many to be a third species of cannabis, along with indica and sativa. Cannabis ruderalis was originally a wild strain of cannabis native to Asia and Europe, but U.S. marijuana growers now regularly cultivate ruderalis at indoor facilities. Some cannabis cultivators find it easier to grow and harvest ruderalis, as opposed to indica and sativa, because ruderalis has an “auto-flowering stage” that is based on the passage of time as opposed to the light cycle. Ruderalis plants are relatively short (when compared to sativa and indica plants) and tend to produce small buds with low concentrations of tetrahydrocannabinol (THC). As a result, cannabis ruderalis strains tend to have a more limited effect on users than indica and sativa strains.

Cannabis sativa is a species of marijuana that can be distinguished from indica and ruderalis by its more focused effect on the user’s “head high.” Sativa strains of cannabis are used for both recreational purposes and medical purposes, with sativa marijuana helping to reduce stress and anxiety. Sativa plants are larger than indica plants: some strains of sativa reach up to 10 feet in height. Additionally, sativa plants often have limited foliage, which means that they have lower yields than indica plants.

Cannabis sauce refers to any cannabis extract with a liquid consistency and a high percentage of terpenes. The consistency and texture of sauce is one obvious way to distinguish sauce from other extracts like badder, crumble, and shatter. Cannabis sauce is typically sticky because the cannabinoids (CBD and THC) have been separated from the terpenes during the extraction process. Sauce is a popular form of extract among cannabis users because it usually has significantly more natural terpenes to give a particular cannabis strain unique flavors and aromas. One specific type of sauce is known as “terp sauce,” which is made up of more than 50% terpenes and comes from the syrupy layer that surrounds the isolated THC-rich crystals in cannabis sauce.

Schedule I Drugs:
Schedule I drugs are outlawed by the U.S. federal government under the Controlled Substances Act (CSA). The law classifies certain narcotics according to a “schedule,” with Schedule I substances carrying the most severe restrictions on use and Schedule V substances carrying the least severe restrictions on use. Schedule I narcotics are specifically defined as drugs with a high potential for abuse, no currently accepted medical use, and a lack of safety for use even under medical supervision. Some Schedule I drugs include marijuana, heroin, LSD, ecstasy, GHB, magic mushrooms, bath salts, and peyote. In accordance with federal law, none of these drugs are approved for medical use and doctors are not permitted to write prescriptions for use by patients. However, some states have controlled substance laws with different schedules that allow for certain drugs (e.g., cannabis) to be purchased and used within state borders.

Shatter is a particularly potent concentrated cannabis extract. Shatter, as the name suggests, is typically hard and brittle in texture and breaks apart easily like glass. Shatter has a translucent appearance, with colors ranging from light yellow to dark amber. Shatter is also known as shatter wax, shatter weed, marijuana shatter, and cannabis shatter. Shatter wax is popular among cannabis concentrate users because it has a high concentration of tetrahydrocannabinol (THC) and is easy to use while dabbing with a dab rig or vape pen. Some cannabis manufacturers produce a version of CBD shatter with a high concentration of cannabidiol and a low concentration of THC for medical marijuana patients.

The Strengthening the Tenth Amendment Through Entrusting States Act, or STATES Act, was a law first proposed by the United States Congress in 2018. The bill would have officially recognized the cannabis legalization laws and initiatives that have been passed by individual states. The law also would have amended the Controlled Substances Act (CSA) so that states and territories where recreational or medical cannabis is legal would be exempted from federal enforcement of nationwide laws against marijuana. The STATES Act would not legalize cannabis at the federal level, but instead would prevent the federal government from interfering with states that have legalized cannabis. Despite having 33 cosponsors in the U.S. Senate and 206 cosponsors in the U.S. House of Representatives, the STATES Act has not yet received enough bipartisan support to become law.

Also known as terpenoids, terpenes are organic compounds (essential oils) in cannabis trichomes that provide cannabis strains with unique flavors and aromas. Some of the most common terpenes include bisabolol, caryophyllene, guaiol, humulene, limonene, linalool, myrcene, nerolidol, ocimene, pinene, and terpinolene. Certain terpenes in a cannabis strain can have different effects on the user. For instance, a terpene like myrcene may create a feeling of relaxation, while a terpene like terpinolene may have an energizing effect.

Also known as tetrahydrocannabinol, THC is one of the main cannabinoids in the cannabis plant and is the cannabinoid chiefly responsible for psychoactive effects in the cannabis user. When a cannabis user inhales or otherwise ingests cannabis into the bloodstream via smoking, oils, tinctures, capsules, or edibles, THC eventually travels to the brain and causes the user to get high. THC is currently illegal at the federal level in the United States, but a number of states allow for recreational use or medical use of cannabis that contains high levels of THC.

A tincture is a cannabis extract that has been infused with alcohol and packaged in a small glass bottle. Tinctures allow for a user-friendly way to consume cannabis. A cannabis user typically takes a tincture by using a dropper to place a few drops of the cannabis concentrate under the user’s tongue. A cannabis tincture can also be added to food as an edible, but it will then take longer for the user’s high to take effect. Tinctures are popular among cannabis consumers because they are fast-acting and help the user achieve a quick high, while the devices are easy to conceal and allow for precise measuring of cannabis extract dosages.

A transdermal is a cannabis patch that is applied directly to the skin to allow cannabinoids to enter the bloodstream without the user needing to smoke marijuana or consume a cannabis edible. Transdermal cannabis patches are popular among cannabis consumers due to ease of use and because they can be customized to isolate a particular ratio or percentage of tetrahydrocannabinol (THC) or cannabidiol (CBD). Transdermal patches also enable a slow-timed release of cannabis to the user, creating the conditions for the cannabis consumer to enjoy an all-day high with long-lasting effects.

Trichomes are tiny crystals found on the surface of cannabis flowers. These sticky, hair-like structures protect the cannabis plant against predators, weather conditions, and damaging sunlight. The three most common types of trichomes found on marijuana plants are bulbous trichomes, capitate-sessile trichomes, and capitate-stalked trichomes. Trichomes produce the cannabinoids (CBD and THC) and terpenes that give cannabis strains their unique flavors, aromas, and effects. Cannabis plants that contain a lot of trichomes may result in strains with a stronger potency.

Wax is an extremely potent cannabis concentrate with a thick, sticky consistency. Cannabis wax gets its name from the concentrate’s viscous consistency and yellowish appearance that resembles ear wax. Some forms of marijuana wax contain as much as 90 percent tetrahydrocannabinol (THC), which makes weed wax particularly popular among cannabis consumers who have built up a tolerance to THC or who need fast relief for chronic pain. Wax is smoked via dabbing, which allows the user to inhale the concentrated cannabis oil as a smoke-free vapor and get high very quickly.

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