SECTION V- GLOSSARY

Advertising Restrictions: The regulations that limit the types of advertising and marketing that cannabis businesses can use, often prohibiting ads that appeal to minors or make unsubstantiated health claims.

Advertising: The paid promotion of a business or product through various channels, such as billboards, print ads, social media, and online platforms.

Aeroponics: A method of growing cannabis plants where the roots are suspended in air and sprayed with a nutrient-rich mist.

Autoflowering: A type of cannabis plant that automatically flowers based on its age, rather than being triggered by changes in light cycles.

Branding: The process of creating a distinctive name, logo, and image for a business or product to differentiate it from competitors and attract customers.

Business Plan: A document that outlines the goals, strategies, and financial projections for a new business.

Butane Hash Oil (BHO): A cannabis concentrate made by extracting cannabinoids and other compounds using butane as a solvent.

Cannabidiol (CBD): A non-psychoactive compound found in marijuana and hemp that is believed to have therapeutic benefits.

Cannabinoids: Chemical compounds found in the cannabis plant, including THC and CBD, that interact with the human body’s endocannabinoid system.

Cannabis Control Board: A government agency responsible for regulating the cannabis industry and enforcing cannabis laws.

Cannabis Industry: The industry that encompasses the cultivation, processing, distribution, and sale of cannabis and cannabis-related products.

Cannabis Legalization: The process of removing legal prohibitions on cannabis possession, use, and cultivation.

Cannabis Regulation: The rules and regulations governing the cultivation, processing, distribution, and sale of cannabis and cannabis-related products.

Cannabis Taxation: The process of imposing taxes on cannabis sales, cultivation, and other activities.

Cannabis-derived CBD: CBD that is derived from marijuana plants, which contain higher levels of THC.

Cannabis: A plant species that includes several varieties, including marijuana and hemp.

CB1 and CB2 Receptors: Receptors in the endocannabinoid system that are activated by cannabinoids like THC and CBD.

Clones: A cutting from a cannabis plant that is grown to produce a genetically identical plant.

CO2 Extraction: A method of extracting cannabinoids and other compounds from the cannabis plant using carbon dioxide as a solvent.

CO2 Oil: A cannabis concentrate made by extracting cannabinoids and other compounds using pressurized carbon dioxide as a solvent.

Company Description: A detailed description of the company, including its history, management team, and legal structure.

Competitive Analysis: An analysis of a company’s competition, including their strengths and weaknesses, market share, and pricing strategies.

Compliance: The process of ensuring that a business follows all applicable laws, regulations, and industry standards, often requiring ongoing monitoring, record-keeping, and reporting.

Concentrates: A cannabis extract such as wax, shatter, and oil.

Content Marketing: The creation and sharing of valuable, relevant, and educational content to attract and engage a target audience, often through blog posts, videos, and social media.

Crossbreeding: The process of breeding two different strains to create a new hybrid strain.

Cultivar: The expressed genotype or the features and characteristics of a strain.

Cultivation: The process of growing plants.

Curing: The process of storing dried cannabis flowers in a controlled environment to maintain and improve product quality markers.

Customer Relationship/Resource Management (CRM): The practice of managing and analyzing interactions with customers to improve relationships, increase sales, and drive growth.

Dabbing: A method of consuming cannabis concentrates by vaporizing them with a hot surface and inhaling the vapor.

Decriminalization: The process of reducing or eliminating criminal penalties for offenses such as cannabis related drug possession.

Delivery Service: A cannabis business that delivers products directly to customers’ homes, often requiring a separate license.

Dispensary: A retail store licensed to sell cannabis products, often divided into medical and recreational sections.

Distribution: The process of transporting cannabis products from the manufacturer to the dispensary or customer, often requiring special licenses and compliance with strict regulations.

Drying: The process of removing moisture from harvested cannabis plants to prepare them for consumption or extraction.

E-Commerce: The buying and selling of cannabis products online, often requiring compliance with strict regulations and age verification systems.

Edibles: Food and beverage products that are infused with cannabis.

Endocannabinoid System: A system in the human body that regulates various functions, including mood, appetite, and pain, and interacts with cannabinoids found in cannabis.

Entity Formation: The process of establishing a legal entity for a business, often requiring registration with the state and choosing a business structure, such as a limited liability company (LLC) or corporation.

Entourage Effect: The theory that all of the compounds in cannabis work together to create a synergistic effect that is more powerful than any one compound alone.

Executive Summary: A brief overview of an entire business plan, including a company’s mission, goals, and financial projections.

Extraction: The process of removing cannabinoids, terpenes, and other compounds from the cannabis plant to create concentrates or other products.

Federal Law: The national laws and regulations that govern the production, possession, and distribution of cannabis in the United States.

Financial Projections: A detailed projection of a company’s financial performance, including revenue, expenses, and cash flow.

Financing: The process of obtaining funding to start or expand a business, often through loans, investors, or crowdfunding.

Full Spectrum: Refers to cannabis products that contain all of the cannabinoids, terpenes, and other compounds found in the plant, rather than just CBD or THC.

Funding Request: A request for funding to start or expand a company, including the amount of funding needed, how it will be used, and potential sources of funding.

Grow Room: An indoor space designed for growing cannabis plants, typically equipped with artificial lighting, ventilation, and other equipment.

Grow Tent: A smaller version of a grow room, typically made of fabric or plastic.

Grower: A person or company that cultivates cannabis plants.

Hemp-derived CBD: CBD that is derived from hemp plants, which contain less than 0.3% THC.

Hemp: A variety of the cannabis plant that is grown for industrial use, such as for fiber, oil, and seed.

Hybrid: A strain of cannabis that is a cross between Sativa and Indica strains.

Hydroponics: A method of growing cannabis plants without soil, using nutrient-rich water instead.

Indica: A strain of cannabis that is known for its relaxing and sedative effects.

Industry Analysis: An analysis of the industry a company is operating in, including trends, growth potential, and competition.

Influencer Marketing: The use of popular social media influencers to promote a business or product to their followers and increase brand awareness.

International Law: The laws and regulations that govern the production, possession, and distribution of cannabis in other countries around the world.

Isolate: Refers to pure CBD, THC or other chemicals that have been isolated from the other compounds in the cannabis plant.

Legalization: The process of removing legal restrictions on cannabis cultivation, distribution, and consumption.

Licenses and Permits: The regulatory approvals required to operate a cannabis business, including local and state licenses, permits for cultivation, manufacturing, and sales, and other certifications.

Licensing: The process of obtaining government approval to operate a cannabis business, usually requiring a background check, a business plan, and the payment of fees.

Light Cycle: The period of time during which cannabis plants are exposed to light and darkness, which affects their growth and development.

Live Resin: A type of cannabis concentrate made from freshly harvested cannabis plants that have been frozen before extraction.

Loyalty Programs: Incentive programs offered by a business to reward and retain customers, often involving points, discounts, or exclusive offers.

Marijuana: A species of the cannabis plant that is cultivated for its psychoactive properties, primarily THC.

Market Analysis: An analysis of a company’s target market, including demographics, market size, and customer needs.

Market Research: The collection and analysis of data on an industry, including consumer trends, competitor analysis, and regulatory changes, to inform business decisions.

Marketing: The process of promoting and advertising a business, including social media, email marketing, and search engine optimization.

Marketing Plan: A plan for how the company will market and promote its products or services to reach its target audience.

Medical Marijuana: Cannabis used for medical purposes, often prescribed by a doctor and purchased at a licensed dispensary.

Nutrients: Chemical compounds added to soil or a growing medium to provide essential elements for plant growth.

Operations Plan: A plan for how a company will operate and manage its daily activities, including production, inventory management, distribution and customer service.

Packaging and Labeling: The requirements for how cannabis products must be labeled and packaged, including information about THC and CBD content, warning labels, and more.

Packaging Design: The visual design of product packaging, often used to attract customers, provide information, and comply with regulatory requirements.

Partnerships: A legal agreement between two or more parties to start and operate a business together, often outlining each partner’s roles, responsibilities, and financial contributions.

pH: The measurement of the acidity or alkalinity of the soil or growing medium.

Point of Sale (POS) Systems: Software and hardware used to process sales transactions, manage inventory, and track sales data.

Product Development: The process of creating new cannabis products, including strains, edibles, concentrates, and topicals, often involving research and development, testing, and compliance with regulations.

Public Relations: The practice of managing communication between a business and the public, often through press releases, media interviews, and events.

Real Estate: The physical space needed to operate a cannabis business, including retail storefronts, warehouses, and growing facilities.

Recreational Marijuana: Cannabis that is used for non-medical purposes, primarily for its psychoactive effects.

Recreational Marijuana: Cannabis used for non-medical purposes, often purchased at a licensed dispensary.

Rosin: A solventless cannabis concentrate made by applying heat and pressure to cannabis flower or hash.

Sales Strategy: A plan for how a company will generate revenue, including pricing, sales tactics, and distribution channels.

Sativa: A family of cannabis strains that are known for their energizing and uplifting effects.

Seed-to-Sale: Refers to a system in which cannabis products are tracked from the point of cultivation to the point of sale, to ensure compliance with regulations and prevent diversion to the black market.

Social Equity: The principle of promoting diversity and fairness in the cannabis industry by providing opportunities for individuals from communities disproportionately affected by the war on drugs.

Soil: The natural growing medium for most plants, composed of a mixture of organic matter, minerals, and microorganisms.

Solvent-Based Extraction: A method of extracting cannabinoids and other compounds from the cannabis plant using solvents such as ethanol.

Staffing: The process of hiring and managing employees for a cannabis business, including managers, growers, budtenders, and security personnel.

State Law: The laws and regulations that govern the production, possession, and distribution of cannabis in individual states.

Strain Genetics: The lineage or ancestry of a particular cannabis strain.

Strain: A particular variety of cannabis that has distinct characteristics, such as flavor, aroma, and effects.

Terpenes: Aromatic compounds found in cannabis that contribute to its flavor and aroma and may also have therapeutic properties.

Testing: The process of analyzing cannabis products to determine their potency, purity, and safety.

THC (tetrahydrocannabinol): A psychoactive compound found in cannabis that is responsible for its intoxicating effects.

Tinctures: A liquid form of an botanical essential oil that is taken orally, typically under the tongue.

Topicals: Cannabis-infused products that are applied to the skin, such as creams, lotions, and balms.

Trade Shows: Events where businesses can showcase their products and services, network with other industry professionals, and gain exposure to potential customers.

Trichomes: Small, hair-like structures that grow on the surface of cannabis flowers and contain high concentrations of cannabinoids.

Trimming: The process of removing excess leaves and stems from harvested cannabis plants.

Vaporizer: A device used to heat cannabis flower or concentrates to produce a vapor that is inhaled.

Zoning: The process of regulating land use in a municipality, often used to control the location of cannabis businesses.