HOLY SMOKE ADMITS TO SELLING POT

Holy Smoke Culture Shop owners admitted in Nelson provincial court
Monday to selling organic cannabis from their premises in the
downtown, arguing that they did more good than harm as part of their
defense of necessity.

According to testimony, the store began a "designated dealer" program
in 2004/05 to get rid of the "unscrupulous" dealers selling drugs in a
nearby garden. They say they tried everything including erecting a
large sign, to get rid of those dealers and prevent them from selling
to youth, but nothing worked. Once Holy Smoke started dealing and
allowed people to smoke inside the store, the accused claim the garden
dealers virtually disappeared.

Alan Middlemiss, "spiritual" owner and one of four accused of
trafficking cannabis from the store, testified customers had to be 19
or older, sober, and polite before they could buy drugs from Holy Smoke.

"We asked that they say please," said Middlemiss, who added that he
enjoyed asking people for the ID before they passed through three
doorways and two rooms to the veranda to purchase the pot.

Holy Smoke co-owner Paul DeFelice and associates Kelsey Stratas and
Akka Annis are also each facing two counts of trafficking cannabis
stemming from a 2006 drug bust led by the Nelson City Police.

The Crown's case wrapped up early Monday after hearing evidence that
undercover police officers from the Lower Mainland purchased various
drugs including cannabis and psilocybins on June 2 and 3 and July 12
and 13, 2006. According to Crown prosecutor Rob Brown, the purchases
ranged in price from as low as $10 to as high as $240-, the latter for
about 30 grams of cannabis.

Judge Don Sperry also heard testimony from co-owner Dustin Cantwell,
who has not been charged, that the designated dealers - about three to
five of them in all - had to be trained by Holy Smoke, trusted,
activist-minded, they had to possess a digital scale to weigh the
drugs, and they were not permitted to resell the substances. Those
allowed to deal within the store were given about eight to 12 weeks to
establish their business before paying a weekly $500 fee to Holy Smoke.

Cantwell admitted the shop sold mushrooms but "only during the full
moon or pagan festivals."

According to testimony, $2,000 was in the box at the end of an average
day and most sales were worth about $10. That means that as many as
200 sales could have been made by the store on an average day. While
the average age of a customer was about 35, Middlemiss said many
customers were older than that . The oldest customer was between 85
and 90 years of age.

Cantwell explained that the quality of the product was tested and
customers were not solicited. He said the dealers and staff members
smoked the same marijuana they sold and knew if there was something
else cut into it.

The court also heard from the Nelson Cannabis Compassion Society's
Philip McMillan who testified that he had a personal relationship with
the growers he used to supply medicinal marijuana to those terminally
or exceptionally ill to ensure quality. Although Holy Smoke and the
Society were separate entities, the Society appears to have been the
brainchild of the owners of the Holy Smoke who also sit on the
volunteer board of directors for the non-profit group. McMillan also
testified that his customers purchased drugs from Holy Smoke on
weekends when the Society was not operating.

One by one, the witnesses testified to the quality of the
product.

"Everyone told us it was the best cannabis they ever had," a
piercing-clad Annis told the court.

The accused also indicated they did not earn very much from the
business. Cantwell suggested he earned about $5,000 a year, Annis had
only volunteered there for two months before the bust, and Middlemiss
said he gave away as much cannabis as he sold. Late in the day,
Middlemiss also admitted under cross-examination that he had not filed
income taxes for at least three years.

"I think I profited through friends and spiritually," he said adding
that he wanted to deal drugs to protect people from unscrupulous dealers.

The trial has been recessed until Thursday morning when an American
expert is expected to testify on the reverse gateway theory. Defence
lawyer Don Skogstad is also trying to line up locals who formerly used
hard drugs, but now use cannabis to help them stay off the hard drugs.