world.” He runs a dispensary, Healing Harvest Farms, and teams up locally with a company that makes the CO2 cartridges that power vape pens. “Tim Blake is a real innovator who has shaped this industry,” says Leslie Bocskor, an investment banker and industry watcher referred to as the Warren Buffett of cannabis. Blake’s bet on extracts, Bocskor says, may set him up to shape it again. “There are many people who believe the future of the entire industry is concentrates,” he says.
Blake is using the Emerald Cup as a platform to elevate extracts from a recreational product for dabbers to a subject worthy of serious attention. His rosin business has been up and running for about a half-year. He takes an all-natural approach, mixing leaves or buds with ice and water, filtering the slush, and drying the result. Other producers use compressed CO2 or solvents such as alcohol and butane to strip the plants of their oils and chemical compounds, industrial methods that are used to remove oil from peanuts, soybeans, and corn. Blake’s way of doing things is also particularly good at retaining “terpenes,” organic compounds that give marijuana strains their distinctive scents and affect the nature of the high. “We’ve developed what we believe is the finest concentrate-making operation in the world,” Blake says.
Currently he’s producing about 15 pounds of rosin a month, which retails for more than $60 a gram. (Concentrates fetch higher prices than dried herb, from $30 to $90 per gram, compared with about $ 10 for flowers.) He says legalization will spur an expansion in the market that could spike output to 100 pounds a month. That would bring in about $2.7 million every 30 days— or as someone using his product might put it, a ton of money, dude.
More broadly, U.S. sales of legal cannabis hit $5.4 billion last year, up from $4.6 billion the year before, according to Arcview Market Research. The actual market is much larger. Colorado, where weed’s been legal for recreational use since 2012, estimates that only 60 percent of the pot consumed there is purchased from licensed outlets.
Money and innovation in the marijuana market, as well as changing politics, have attracted Silicon Valley’s attention. Investor Peter Thiel’s Founders Fund participated in a $75 million funding round with Privateer last year; in addition to Leafly, Privateer owns Tilray, a $26 million processing facility on Canada’s Vancouver Island. And in California, Sean Parker of Facebook and Napster fame is backing an initiative that’s likely to appear on November’s state ballot. It’s gained traction with procannabis groups and even Lieutenant Governor Gavin Newsom.
Should it pass, the Adult Use of Marijuana Act would legalize the purchase of weed by anyone 21 and older—23 million Californians—and further boost the state’s legal cannabis market, which Arcview recently valued at $1.3 billion. (Currently, only medicinal marijuana is legal.) At the Emerald Cup in December, Blake publicly endorsed the idea, which some in the community are wary of for fear it might corporatize the industry. There doesn’t appear to be polling on Parker’s measure; however, a 2015 survey conducted by the Public Policy Institute of California found that 53 percent of Californians supported legalizing recreational weed, the most since polling began.
Blake might just be in the right place at the right time. Through the years, he’s tried his hand in industries such as music (he started a record label that signed funk musician Bootsy Collins), real estate, and virtual reality. His gas station—which he bought after having a vision during transcendental meditation— is also a spiritual retreat and psychedelic-trance music venue.
Technically, what he’s doing now is against federal law, though in California it’s a legal gray area. Blake believes his method is legal because he doesn’t use solvents. Raids happen, though the Obama administration hasn’t prioritized criminalizing these enterprises. Whether a President Trump would consider what he’s doing part of making America “great again” is unclear, but Blake appears safe for now and sees nothing but growth ahead. “The kids coming up, this is how they’re being introduced to cannabis,” he says. “When you’ve tried extracts, you go and smoke a joint and it tastes dirty.” <BW>