Photographer: Michael Ciaglo / Bloomberg
Photographer: Michael Ciaglo / Bloomberg
Hemp, marijuana’s tough sister, is getting a lot more interesting.
With its low THC content and lack of psychoactive effects, hemp has long been used for mainly practical purposes, such as rope or fabric, or to produce CBD, a popular ointment to relieve a variety of ailments. But the marijuana industry is starting to take an interest in a hemp-derived compound called delta-8 THC, which can be used to get high, but doesn’t face the same legal hurdles as stronger cannabis strains.
And after regulations relaxed restrictions on hemp last week, the ability to compete with marijuana is likely to increase.
Delta-8 THC is found in very low concentrations in cannabis, while its richer molecular cousin, delta-9 THC, is the one most often targeted by regulation. The United States Department of Agriculture updated its rules on January 19 to increase the amount of THC in hemp that would cause a “negligent violation” from 0.5% to 1%. While hemp is defined as cannabis containing less than 0.3% THC content – and plants above that level should still be removed – the relaxed rules give manufacturers more leeway in growing and processing plants.
That means that hemp production in general has just gotten easier. And that’s a good thing for the CBD business, as well as for delta-8.
“Delta-8 is the new guy everyone wants to dance with,” Susanna Short, a cannabis industry consultant, recently told me.
Because delta-8 is made from CBD, it is not clearly regulated like delta-9 THC, which is traditionally cited as the source of cannabis’ psychoactive effects.
Since the 2018 Farm Bill, hemp and CBD can be freely transported and sold within the US, unlike marijuana with a high THC content, which can only be grown and sold in states where it is legal. The rules surrounding delta-8 are not yet fully understood, amid confusion as to whether the Drug Enforcement Agency’s rules for synthetic cannabinoids apply to the substance, which is synthetically produced.
“It is derived from hemp, so we take the position that it is legal,” said Dustin Robinson, Florida attorney and founder and partner of Mr. Cannabis Law. He sees Delta-8 as a cheaper and easier buzz for many people. “I can get high by getting delta-8 from a smoke shop or a gas station.”
That could pose a threat to multi-state operators who have built their businesses to comply with strict regulations around high-THC marijuana, especially after states like Illinois and Colorado last summer, the hemp industry started selling through marijuana dispensaries. But it could also be an opportunity, Robinson said.
“This could be a means for the marijuana supply chain to lower their growing costs, if they can use hemp biomass instead of marijuana biomass,” he said.
Delta-8 has more to offer than legal ambiguity. Trulieve Cannabis Corp., which sells products containing delta-8, praises it as less likely to induce anxiety at high doses compared to delta-9, and cites studies that have linked it to appetite stimulation, neuroprotective properties and anti-vomiting properties.
With such potential, some companies don’t wait for regulatory clarity. Take Deep Six CBD, a retailer that just announced the launch of delta-8 THC oil, vapes and edibles in a Pennsylvania store. “Why pay $ 250 for a medical marijuana card?” said the president of the company in his press release about the new product. “Try delta-8 THC first!”
NUMBER OF THE WEEK
- 18%: The rise in average prices for raw flowers in the US year over year, according to Leaflink’s guide to wholesale prices in 2020. While prices for them fell in some states, others, such as Arizona and Colorado, more than made up for the difference, with prices rising 32% and 22% respectively. Meanwhile, prices for edibles and edibles, a popular category, fell 11%.
QUOTE OF THE WEEK
“The closer you get to the patient, the more value you can create for the patient and for investors. We have our own doctors prescribe, and we collect the data on what works and what doesn’t, ”Alvaro Torres, CEO Khiron Life Sciences, said in a phone interview about the Toronto-based company’s business model. It currently operates four clinics in Colombia that sell its products directly to patients and plans to open more in that country in the next six months, along with Peru and Mexico.
WHAT YOU NEED TO KNOW
- Cannabis is one of the “Sinful” taxes that states are looking for to close the deficits that grew during the pandemic.
- New York disclosed details of his proposal to legalize recreational marijuana. According to a briefing booklet, cannabis products would be taxed by force, with raw flowers and pre-rolls taxed at 0.7 cents per milligram of THC content and concentrates and oils taxed at 1 cent per milligram. For products sold in pharmacies, a surcharge of 10.25% is charged.
- South African wine and spirits maker Distell bought in a cannabis wellness drink, Rethink, because the country’s cannabis industry is worth an estimated 14 billion rand ($ 930 million).
- Thailand is planning Promote the use of marijuana in meals and cosmetics to strengthen the agricultural and tourism industries after being hit hard by the pandemic.
- Schools that specialize in training mental and medical health professionals are delve deeper into the therapeutic potential of cannabis and psychedelic drugs.
EVENTS
Friday 1/29