Photographer: Michael Ciaglo / Bloomberg
Photographer: Michael Ciaglo / Bloomberg
Hemp, the serious sister of marijuana, is becoming much more interesting.
With its low THC content and absence of psychoactive effects, hemp has long been used for practical purposes, such as rope or fabric, or to produce CBD, a popular ointment for the relief of various diseases. But the marijuana industry is starting to take an interest in a hemp-derived substance called delta-8 THC, which can be used to stay high, but does not have the same legal obstacles as the strongest strains of cannabis.
And after regulatory changes last week eased restrictions on hemp, its ability to compete with marijuana is likely to grow.
Delta-8 THC exists at very low levels in cannabis, while its most abundant molecular cousin, delta-9 THC, is what is generally targeted in regulations. US Department of Agriculture updated its rules on January 19 to increase the amount of THC in hemp that would trigger a “negligent violation” conclusion from 0.5% to 1%. Although hemp is defined as cannabis that contains less than 0.3% THC content – and plants above that level must still be discarded – relaxed rules give manufacturers more freedom to grow and process the plants.
This means that hemp production in general has become easier. And this is good for the CBD business, as well as for delta-8.
“Delta-8 is the new kid everyone wants to dance with,” cannabis industry consultant Susanna Short recently told me.
Because delta-8 is made of CBD, it is not clearly regulated like delta-9 THC, which has traditionally been cited as the source of cannabis’s psychoactive effects.
Since the 2018 Farm Bill, hemp and CBD can be transported and sold freely in the U.S., unlike marijuana with a high THC content, which can only be grown and sold in states where it is legal. The rules around delta-8 are still not entirely clear, amid confusion over whether the Drug Enforcement Agency’s rules on synthetic cannabinoids apply to the substance, which is synthetically produced.
“It is derived from hemp, so we are taking the position that it is legal,” said Dustin Robinson, a Florida lawyer and founding partner in the Cannabis Act. He sees delta-8 as a cheaper and more convenient buzz for many people. “I can get high getting the delta-8 at a tobacconist or gas station.”
This could pose a threat to operators in several states that have built their businesses to comply with strict rules around high-THC marijuana, especially after states like Illinois and Colorado last summer, it began allowing the hemp industry to sell through marijuana dispensaries. But it can also represent an opportunity, said Robinson.
“This could be a way for the marijuana supply chain to reduce its cost of cultivation, if they could use hemp biomass instead of marijuana biomass,” he said.
Delta-8 has more advantages than legal ambiguity. Trulieve Cannabis Corp., which sells delta-8 products, it exalts it as less likely to induce high-dose anxiety compared to delta-9, and cites studies that have associated it with the simulation of appetite, neuroprotective properties and anti-vomiting properties.
With this potential, some companies are not waiting for regulatory clarity. Take the case of Deep Six CBD, a retailer that has just announced the launch of delta-8 THC oil, vapes and edibles at a store in Pennsylvania. “Why pay $ 250 for a medical marijuana card?” the company president said in his press release announcing the new product. “Try THC delta-8 first!”
NUMBER OF THE WEEK
- 18%: The increase in average raw flower prices in the USA year after year, according to Leaflink’s guide to wholesale prices in 2020. Although prices for it have actually dropped in some states, others like Arizona and Colorado more than which offset the difference, with prices rising 32% and 22%, respectively. Meanwhile, prices for edibles and foodstuffs, a hot category, fell 11%.
QUOTE OF THE WEEK
“The closer you get to the patient, the more value you can create for the patient and investors. We have our own doctors prescribing and we are collecting data on what works and what doesn’t, ”Alvaro Torres, executive director of Khiron Life Sciences said in a telephone interview about the business model of the Toronto-based company. It currently operates four clinics in Colombia that sell its products directly to patients and plans to open more in that country, along with Peru and Mexico, in the next six months.
WHAT DO YOU NEED TO KNOW
- Cannabis is among the “Sinful” taxes that states are seeking to close the deficits that grew during the pandemic.
- New York revealed details of his proposal to legalize recreational marijuana. According to an information booklet, cannabis products would be taxed by potency, 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. Products sold in dispensaries are subject to a 10.25% surcharge.
- Distell, South African manufacturer of wines and spirits purchased in a cannabis wellness drink, Rethink, since the country’s cannabis industry is estimated at 14 billion rand ($ 930 million).
- Thailand plans to promote the use of marijuana in meals and cosmetics to strengthen its agriculture and tourism industries after being hit hard by the pandemic.
- Schools specializing in training mental health and medical professionals are further investigating the therapeutic potential of cannabis and psychedelic drugs.
EVENTS
Friday, 01/29