Alleh Lindquist of FloraWorks: Five Things I Wish Someone Told Me Before I Became A CEO

An Interview With Doug Noll

Patience and Adaptability. It was also important for all of us at FloraWorks and for those in this sector to recognize that the progression of the cannabis industry may not always follow a swift or straightforward trajectory. Patience, adaptability and proactive measures in response to unexpected hurdles and evolving industry landscapes are crucial for survival and success in this dynamic sector.

As a part of my series about Five Things I Wish Someone Told Me Before I Became A CEO, I had the pleasure of interviewing Alleh Lindquist, Chief Executive Officer of FloraWorks, a leading cannabinoid therapeutics company. In his role as CEO, he is responsible for managing and directing the company toward its primary goals and objectives, strategy and market expansions, bringing years of expertise in entrepreneurial startups, raising capital, business development, product innovation, strategy, marketing and cannabinoid R&D. Under Alleh’s leadership, FloraWorks recently closed a $2.25M Series-A financing round, with this milestone marking the Company’s commitment to exploring and developing new cannabinoids with the potential to address various unmet medical needs. Floraworks also recently announced the results of the first-ever double-blind, randomized, placebo-controlled trial that analyzed the effects of its flagship product, TruCBN™ — a pure form of Cannabinol (“CBN”).

Thank you so much for joining us in this interview series! Before we dig in, our readers would like to get to know you a bit more. Can you tell us a bit about your “backstory”? What led you to this particular career path?

It’s a pleasure to be a part of this conversation! To begin with, I’d like to share a brief background about my current role. In 2012, I was in Oregon where there was growing interest in the legalization of cannabis. Recognizing this trend, I teamed up with a few friends and took a shot at the license application. We navigated the complex process and eventually obtained the first cannabis extraction license in Oregon. This led to the founding of Swell Companies, which at the time offered some well-recognized cannabis brands in the state.

We made Swell a dominant force in the intensely competitive cannabis market by focusing on quality, innovation and execution at scale. Our multifaceted approach resulted in creating brands like Dab Society Extracts, Hood Oil and LoudLab Cannabis Refinement. The company grew to house a 10,000-square foot high-tech processing facility in Portland, employing a team of 41 full-time members who were instrumental in cannabis processing and the manufacturing of vape pens and other consumer products. After four years of running the company, we had the fortunate opportunity to be acquired by a larger publicly traded cannabis company. Selling Swell allowed me to view the industry through a new lens, free from the daily operational demands of managing an extraction business.

After 11 years in the cannabis field, I’m now at the helm of FloraWorks. We’re diving deep into life sciences, focusing on rare and novel cannabinoids for therapeutic use. Our research hints at transformative treatments for sleep issues and dementia-related diseases. The future looks promising!

We recently completed our Series A; following that we announced the results of the first-ever double-blind, randomized, placebo-controlled trial, which analyzed the effects of our flagship product, TruCBN™ — a pure form of Cannabinol (“CBN”) and one of more than 120 known cannabinoids found in the cannabis plant — on sleep.

We worked with Radicle Science to independently conduct the trial and compared the effects of CBN against melatonin and a placebo, among more than 1,000 participants across the U.S. Each participant received one of three different doses of TruCBN, melatonin or a placebo.

The historical firsts encompassed in this study have tremendous implications for formulating effective, natural sleep products. The findings especially highlight the importance of using the right amount. For CBN, both too much (100 mg) and too little (25 mg) may have decreased effectiveness. This is some of the first human data to suggest different amounts of CBN may have different effects on sleep and can be used to inform future studies on CBN. It highlights the importance of exploring product formulations in a methodical, clinical manner through randomized, blinded clinical trials.

The study is currently being peer reviewed. It is an incredibly exciting time for all of us at the company and for those of us in the health and wellness sector.

Can you share the most interesting story that happened to you since you began leading your company?

Honestly, pinpointing one singular story is difficult. Every moment at FloraWorks has its unique allure, especially as we’re forging a path in a distinctive business domain. The team’s passion for cannabinoid science and their continuous discoveries make each day memorable. However, considering FloraWorks’ nascent stage, I’d highlight our recent unveiling of a potential sleep aid through our ultrapure TruCBN ingredient as the most compelling story I can share at the moment. TruCBN holds the promise to significantly disrupt the sleep aid industry.

Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?

Throughout my journey, I’ve made a plethora of mistakes, both big and small. So, singling out just one defining mistake is tough. These missteps have shaped my understanding, honed my approach, and reminded me that no one, regardless of their position or experience, is immune to errors. However, each mistake has also been a lesson, pushing me to grow, adapt, and become a better leader. It’s through these trials and errors that I’ve truly learned the nuances of leadership and the importance of resilience.

None of us are able to achieve success without some help along the way. Is there a particular person who you are grateful towards who helped get you to where you are? Can you share a story about that?

It takes an army of people to help build something big and throughout every phase of my journey in entrepreneurship, I’ve had several different mentors along the way. It’s absolutely necessary that you’re constantly building and maintaining those relationships. For me, I wouldn’t say there’s one particular person — it’s more the collective of all of the different voices and people that I’ve been able to lean on and get support from as well as to help understand some of the hard questions I have. And this is not always some big, grand person. You never know where a valuable piece of insight will come from. So to me, you have to be listening to your people, and asking and engaging in questions all the time because mentors are fundamental to your success.

I will give a shoutout to two people though, Michael Thale, the cofounder of FloraWorks, and Karyn Barsa who has led vibrant premium-brand corporations as a CEO, COO, CFO and as a member of the Board of Directors for publicly traded companies, private companies and non-profit organizations like Patagonia, Smith & Hawken and Deckers. Both have always been incredibly supportive and have encouraged me to ask hard questions and challenge ideas.

This industry is young, dynamic and creative. Does your company use any clever and innovative marketing strategies that you think large legacy companies should consider adopting?

I think that marketing is one of the most important departments at any business. It doesn’t matter what it is. Your marketing is directly related to the success of your business in most cases. It’s not only just about marketing systems and how you think about your customer’s journey, it’s also about your brand messaging, the type of identity that you’re building and how those things intertwine. You need to be able to tell a compelling story.

Can you share three things that most excite you about the cannabis industry? Can you share three things that most concern you?

What I’m most excited about right now is the science side of the cannabis industry and the research that’s happening. I see this wide open landscape for exciting research and questions that need answers, as well as a massive transition in how cannabis and cannabinoids are perceived from a medical perspective. I also see the therapeutic cannabis sector separating from the recreational “adult-use” market and could imagine a future where people are getting cannabinoid medicines through traditional channels, which is something that has not been done yet. Our goal is to see our TruCBN in a product on the end cap at Target.

Aside from the progression of the science, I have always been passionate about brand building and storytelling. I think the crossroads of cannabis culture and product is a very exciting place to build brands.

I’ve got to say, the whole political scene has me scratching my head with some slight concern. We were hoping for some federal legalization movement by now, especially things like banking reform. But nope, politicians can’t even get a simple bipartisan banking bill across the finish line. Just last week, one of my business accounts got shut down — and we’re not even in the thick of the cannabis game at FloraWorks. Our company is exclusively engaged in therapeutic development without any dealings in THC or recreational cannabis licenses. Yet, here we are, pushed to a small out-of-state bank with steeper fees. And don’t get me started on driving cash around for six hours just to make a deposit. It’s a wild ride!

Can you share your “5 Things I Wish Someone Told Me Before I Started Leading a Cannabis Business”?

1. Federal Legalization Expectations. The overarching thing I wish I had known early on was to temper my expectations when it came to federal legalization. My initial expectations were that this path would be relatively straightforward, especially after witnessing successful legalization in Colorado and Oregon. I presumed a domino effect leading to nationwide legalization within a few short years. However, reality proved to be far more complex. Nearly a decade later, we’ve achieved significant strides but there remains a substantial amount of political work left to accomplish.
2. Patience and Adaptability. It was also important for all of us at FloraWorks and for those in this sector to recognize that the progression of the cannabis industry may not always follow a swift or straightforward trajectory. Patience, adaptability and proactive measures in response to unexpected hurdles and evolving industry landscapes are crucial for survival and success in this dynamic sector.
3. Lack of Specialized Distribution Services. One of the key logistical challenges in the cannabis sector I’d like to highlight is the absence of specialized services such as distribution, which are readily available in other industries. Businesses in this sector, especially small ones, find themselves in a position where they have to create virtually every component of their operations from scratch. Consider this — to transport our product from our production facility to retail stores, we were compelled to develop our own distribution network, which necessitated the acquisition of vans and other capital-intensive infrastructure. This is a unique impediment that companies in other sectors rarely confront, as we are in essence constructing an entire industry from the ground up.
4. Managing Vital Internal Administrative Services. Further issues and complications arise in managing vital services like bookkeeping, human resources and payroll. Some businesses in the cannabis sector have even experienced the harsh reality of being denied banking services, leading them to manually handle their payroll. Managing lots of physical cash is cumbersome and also dangerous in many situations. Though we’ve seen advancements and a growing number of service providers willing to cater to cannabis businesses, it’s worth noting that we’re still in the early stages of this transition. The entire experience was a daunting one, yet provided us with a wealth of learning opportunities. Frankly it’s long past due for our government to pass the SAFE banking bill as it is at least incremental reform toward federal legalization which I think is the obvious future outcome. It’s not if, but when.
5. The Importance of Educating the Public. In my personal experience, one of the most striking observations has been how even as cannabis becomes more accepted, there’s still a vast amount of misunderstanding out there. I’ve encountered countless individuals who are either misinformed or simply unaware of the basic distinctions and benefits of cannabis products. For instance, many still don’t know the difference between THC and CBD, or they might be unaware of the therapeutic potential of cannabis. This underscores the ongoing necessity for us in the industry to not just sell products but also to serve as educators. We need to consistently engage with our consumers and stakeholders, ensuring they’re informed and can make educated decisions. It’s a responsibility I take very seriously in my role at FloraWorks.

What advice would you give to other CEOs or founders to help their employees to thrive?

I’m a strong advocate for fostering an environment where employees can truly excel. I encourage promoting from within the company and providing opportunities for the team to undertake tasks beyond their usual scope. It’s crazy to see how invigorating it is for employees to be given the chance to acquire new knowledge. This can be achieved through sponsoring their training for new skills or nurturing their growth, particularly during rapid expansion phases. In my opinion, maintaining a vibrant company culture is paramount, as well as nurturing a team that operates at its peak capacity.

You are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.

You know, personally, I’m deeply intrigued by the concept of individual health and well-being. I strive to operate at peak capacity, ensuring I get adequate sleep, consume a balanced diet and establish equilibrium in my life that promotes overall wellness. When personal health is compromised, it often negatively affects other aspects of life, gradually diminishing your ability to optimally perform. I’m a big believer in the importance of carving out personal time for self-improvement, to build resilience and prepare ourselves to bounce back and consistently perform at our best. I hope to inspire more people to prioritize their personal well-being, creating a healthy space for self-improvement.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

A crucial life lesson that was ingrained in me over the years comes from an important mentor and teacher of mine: “Don’t be afraid of the unknown.” While it may sound simple, this wisdom penetrates deeply into the fabric of our experience. The unknown exists all around us; we just delete it from our experience to create the illusion of knowing.

As an entrepreneur, I’ve found this lesson to be absolutely critical. The world of entrepreneurship is fraught with uncertainty, as one never truly knows whether a new idea or venture will succeed or fail. Yet it’s precisely this element of uncertainty that contains the seeds of potential.

We are very blessed that some very prominent names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch with, and why? He or she might just see this if we tag them.

I’d be thrilled to grab a bite with Andrew Huberman. PhD, the renowned neuroscientist at Stanford University. Dr. Huberman also heads the Huberman Lab, which delves into the intricacies of how our brain functions, how it transforms through our experiences, and how it can be repaired following injury or disease. His work is next level.

Some of our more recent developments around neuroprotectivity of cannabinoids I believe he would find extremely exciting, and like him pushing the boundaries in neuroscience, we too are breaking new grounds in our understanding of cannabinoids.

I admire Huberman for his unconventional methodologies and his commitment to making neuroscience accessible and understandable to the masses. His style of communication bridges the gap between the scientific community and the public, a trait I deeply respect.

His dedication, innovative mindset and ability to bring science to the public are traits that align with the core values we hold at FloraWorks.

I’d be happy to pick up the tab for that meal!

Thank you for these fantastic insights. We greatly appreciate the time you spent on this.

About the Interviewer: Douglas E. Noll, JD, MA was born nearly blind, crippled with club feet, partially deaf, and left-handed. He overcame all of these obstacles to become a successful civil trial lawyer. In 2000, he abandoned his law practice to become a peacemaker. His calling is to serve humanity, and he executes his calling at many levels. He is an award-winning author, teacher, and trainer. He is a highly experienced mediator. Doug’s work carries him from international work to helping people resolve deep interpersonal and ideological conflicts. Doug teaches his innovative de-escalation skill that calms any angry person in 90 seconds or less. With Laurel Kaufer, Doug founded Prison of Peace in 2009. The Prison of Peace project trains life and long terms incarcerated people to be powerful peacemakers and mediators. He has been deeply moved by inmates who have learned and applied deep, empathic listening skills, leadership skills, and problem-solving skills to reduce violence in their prison communities. Their dedication to learning, improving, and serving their communities motivates him to expand the principles of Prison of Peace so that every human wanting to learn the skills of peace may do so. Doug’s awards include California Lawyer Magazine Lawyer of the Year, Best Lawyers in America Lawyer of the Year, Purpose Prize Fellow, International Academy of Mediators Syd Leezak Award of Excellence, National Academy of Distinguished Neutrals Neutral of the Year. His four books have won a number of awards and commendations. Doug’s podcast, Listen With Leaders, is now accepting guests. Click on this link to learn more and apply.