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Eteros Launches Mobius M9 Sorter, Boasting Industry-Leading Technology to Speed Sorting and Precise Sizing

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LAS VEGAS, June 10, 2021 – PRESS RELEASE – Canadian-based Eteros Technologies, owner of Mobius Trimmer, a brand of high-end cannabis and hemp processing equipment, revealed its latest technological achievement, the M9 Sorter, featuring an industry-leading combination of features to ensure high-speed sorting and precise product sizing. The launch was announced at the company’s “Demo in the Desert” event held at the recently opened Eteros Las Vegas facility, which will serve as the final assembly plant for the new product in the U.S. cannabis market.

“Cannabis cultivators and processors are always engaged in a constant battle to increase yields, reduce loss and ensure high quality is maintained during the trimming process,” Mobius Trimmer CEO Aaron McKellar said. “When sorting can handle more product in less time while increasing accuracy in sizing, a large part of the battle is won. The M9 Sorter is designed with this goal in mind and incorporates a long list of features to get there.”

Features of the M9 include:

  • An industry-leading nine sorting belts
  • An industry-leading 78-inch sorting zone for high-speed and precise sizing of product
  • A longer sorting table that leads to more accurate results
  • Every grading slot is longer, creating more opportunity for an accurate sort, and each grading partition is fully adjustable
  • All stainless-steel construction
  • Sanitary construction for GMP workflows
  • Adjustable infeed hopper: tool-free adjustment and removal for feeding or conveyor infeed
  • Reversible table for operation in either left or right outfeed configuration
  • Easy access for cleaning with safety interlocked end panels and rear door
  • 7-inch HMI color controller
  • Accurately grades up to 200 kilograms per hour

As with all Mobius products, the Mobius M9 features quick and tool-free removal of all belts and rollers for easy and safe cleaning. The new product announcement comes during a period of strong growth for Eteros, following the acquisition of California-based Triminator, a pioneer in harvesting equipment for professional growers of cannabis and hemp, and the opening of the company’s Las Vegas location earlier this year.

“We are so encouraged by the reception we have received in Las Vegas since opening our facility earlier this year,” McKellar said. “The ability to serve U.S. customers from our new home base in the desert is a dream come true. We look forward to the opportunity to serve more of the U.S. community.”

The Mobius and Triminator product lines combine to form the world’s largest manufacturer of cannabis and hemp harvesting and processing equipment. Eteros Technologies, parent company of the Mobius line, plans to retain Triminator employees and leadership, and company officials said both brands will continue to operate independently. Working in synergy, each will marshal greater engineering, sales, training and support resources to offer customers the most comprehensive suite of processing solutions on the market. The acquisition also means that the full Canadian designed-and-built Mobius line and full U.S.-built Triminator product line will be stocked and available across North America.

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Virginia Tech Maintains Cannabis Prohibition on Campus

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It’s been a busy year for federal cannabis legislation. Will all the activity lead to legalization – or even incremental progress on changing federal law? 

Federal cannabis reform hasn’t passed into law, but it’s not for lack of trying. In 2021 alone, several high-profile cannabis bills have been proposed in both chambers of Congress, while others have been promised later this year.

Moving into the second half of 2021, let’s examine the most prominent federal cannabis bills, assess their current status, and with the help of industry experts, make some predictions about the future.

The Marijuana Opportunity Reinvestment and Expungement (MORE) Act

Introduced in the House by Rep. Jerry Nadler (D-NY) & other Democratic representatives

May 2021

The current flagship legislation for comprehensive cannabis legalization, the MORE Act was first introduced in the summer of 2019. It passed a full floor vote in December 2020, making history as the first bill to explicitly legalize cannabis to pass in Congress.

Since the bill’s inception, however, momentum has been slowed by a lack of bipartisan support – particularly related to the bill’s strong social equity provisions, which would devote federal grants to help communities hurt most by the War on Drugs. 

“In order to pass the Senate, you’re going to need to get 10 Republicans on board with a descheduling bill without alienating Democrats, and I think that can be pretty tricky,” said Morgan Fox, Director of Media Relations for the National Cannabis Industry Association in a phone interview. “Particularly since in the GOP, the main sticking point tends to be social equity.”

Last month, Rep. Nadler reintroduced the MORE Act, highlighting advancements in state-level cannabis reform in an accompanying statement: “Since I introduced the MORE Act last Congress, numerous states across the nation, including my home state of New York, have moved to legalize marijuana. Our federal laws must keep up with this pace,” said Nadler, who chairs the House Judiciary Committee.

The Common Sense Cannabis Reform for Veterans, Small Businesses, and Medical Professionals Act

Introduced in the House by Reps. David Joyce (R-OH) and Don Young (R-AK)

May 2021

Perhaps recognizing the desire among their Republican party for simple legalization without any social justice provisions, two GOP representatives introduced a bill that would remove cannabis from the DEA’s Controlled Substances schedule, provide protection for cannabis-related financial services companies, and offer blanket protection for veterans to use medical cannabis in accordance with state laws. 

Reps. Joyce and Young, who are members of the bipartisan Congressional Cannabis Caucus, may have introduced the bill as an opening for House Republicans to support plain legalization without attaching their vote to the kind of progressive reform measures included in other legislation.

“One of the reasons the Joyce bill was introduced in the House was to see which Republicans are completely against legalization and which ones are okay with a simple, straightforward bill that only deschedules and doesn’t include any social justice or restorative issues,” said Fox.

Untitled Comprehensive Cannabis Reform

Upcoming in Senate by Senators Cory Booker (D-NY), Ron Wyden (D-OR) and Chuck Schumer (D-NY)

(Announced) February 2021

This piece of federal cannabis legislation is distinct from others in one important way: No one has seen it. From what the Senators have been saying about it for several months, the legislative package will focus on legalizing cannabis reform, while also striving to “right the wrongs of this failed war [on drugs] and end decades of harm inflicted on communities of color,” and “enact measures that will lift up people who were unfairly targeted in the War on Drugs.” Its promised social justice and equity measures have made it highly anticipated by the industry, but details are scant.

“Nobody to my knowledge outside of their offices has gotten a look at the actual language yet,” said Fox. “So far we’ve been hearing it’s going to be pretty heavy on restorative justice and social equity provisions…but again, we don’t know exactly what that looks like. So I think it’s going to be pretty important, once we see the details, to do a line-by-line with the MORE Act and see how they compare and contrast.”

Dasheeda Dawson, Cannabis Program Manager for the City of Portland and Chair of Cannabis Regulators of Color Coalition (CRCC), said it’s fair to expect the Senate legalization package to go even further than the MORE Act when it comes to restorative justice, given the history of the Senators involved.

“We expect MORE will be the baseline for the Schumer, Booker & Wyden efforts in the Senate,” said Dawson in an email to Cannabis Business Times and Cannabis Dispensary. “Much of the foundation of the MORE Act was built on Booker’s Marijuana Justice Act of 2017. If anything, because of the additional time and New York’s landmark legalization bill, I believe the Senate bill will be a slight step above the MORE Act as it pertains to restorative justice and equity.”  

The Secure and Fair Enforcement in (SAFE) Banking Act

Introduced in the House by Rep. Ed Perlmutter (D-CO)

March 2021 – passed April 2021 

The SAFE Banking Act is a more incremental reform step that would allow cannabis businesses access to the same kind of banking products available for other businesses, including credit and insurance. It also provides legal protection for ancillary businesses that provide service to the cannabis industry, such as contractors and packaging companies.

The bill has now passed a full floor vote in the House twice: once in September 2019, and once this past April, after its most recent introduction by Rep. Perlmutter. Now that even more Americans support full cannabis legalization, some in the industry hope the time is finally right to at least allow cannabis companies access to relatively basic business tools.

“SAFE Banking enjoys the support of the banking industry and many Republicans, so it could be seen as a fallback option should comprehensive legalization ultimately fail,” said Kris Krane, Founder of 4Front Ventures and President of Mission Dispensaries. 

But others believe that incremental progress could actually represent a step backwards for cannabis equity.

“On surface the SAFE Banking Act is a helpful band-aid for those already privileged to be participants in this developing industry,” said Dawson. “Passage of SAFE would be an incremental step that actually would further the gap in equity for this industry, even if it temporarily relieves small cannabis business[es] from the oppression of cash-only business management. There’s also risk that it will encourage much bigger industry players, like Amazon, to begin their money moves to position themselves for future domination.” 

In an early June blog post, Amazon announced it would no longer screen prospective hires for cannabis and its policy team would be “actively supporting” the MORE Act.

For now, the SAFE Banking Act awaits a hearing in the Senate after passing a floor vote in the House – just like the MORE Act.

The Hemp Access and Consumer Safety Act

Introduced in the Senate by Senators Rand Paul (R-KY), Ron Wyden (D-OR), and Jeff Merkley (D-OR)

May 2021

Like the SAFE Banking Act, the Hemp Access and Consumer Safety Act is a more incremental cannabis bill that would confirm the legal status of cannabidiol (CBD) and other hemp-derived supplements in foods and beverages. The bill is a companion to the Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2021, which was introduced in the House in February.

The Hemp Access act is designed to help bring clarity to a lucrative yet confusing industry: hemp and CBD. Right now, these products are sold in a gray area, since they’re not technically approved under federal law. Under the Farm Bill of 2018, The Food and Drug Administration (FDA) was supposed to create guidelines to regulate this prominent sector of the cannabis industry. To date, however, not much progress has been made outside of a few statements and official updates.

“The Hemp Access and Consumer Safety Act is a bill that only exists because the FDA has not done its job of regulating hemp-derived cannabinoids as an ingredient,” said Dawson. “I suspect this bill will be supported because it essentially compels the FDA to treat hemp-derived CBD specifically like a dietary supplement.”

“Theoretically it could move pretty easily, since it’s pretty narrowly-focused and is mandating something the FDA promised to do anyway and just hasn’t gotten around to yet,” added Fox when asked about the prospects of the bill in the Senate.

Despite all this activity, industry insiders are still pessimistic about federal cannabis legislation – particularly on a comprehensive scale.

“I think there’s definitely a chance of something passing this year but I don’t necessarily think that it’s going to be a comprehensive descheduling bill,” predicted Fox. 

“At this point, we don’t expect federal legalization to happen this year,” said Dawson. “There is still too large of a gap in cannabis competency at the federal level, across legislators and would-be regulators.”

 

Federal Cannabis Legislation Roundup: Summer 2021

by

It’s been a busy year for federal cannabis legislation. Will all the activity lead to legalization – or even incremental progress on changing federal law? 

Federal cannabis reform hasn’t passed into law, but it’s not for lack of trying. In 2021 alone, several high-profile cannabis bills have been proposed in both chambers of Congress, while others have been promised later this year.

Moving into the second half of 2021, let’s examine the most prominent federal cannabis bills, assess their current status, and with the help of industry experts, make some predictions about the future.

The Marijuana Opportunity Reinvestment and Expungement (MORE) Act

Introduced in the House by Rep. Jerry Nadler (D-NY) & other Democratic representatives

May 2021

The current flagship legislation for comprehensive cannabis legalization, the MORE Act was first introduced in the summer of 2019. It passed a full floor vote in December 2020, making history as the first bill to explicitly legalize cannabis to pass in Congress.

Since the bill’s inception, however, momentum has been slowed by a lack of bipartisan support – particularly related to the bill’s strong social equity provisions, which would devote federal grants to help communities hurt most by the War on Drugs. 

“In order to pass the Senate, you’re going to need to get 10 Republicans on board with a descheduling bill without alienating Democrats, and I think that can be pretty tricky,” said Morgan Fox, Director of Media Relations for the National Cannabis Industry Association in a phone interview. “Particularly since in the GOP, the main sticking point tends to be social equity.”

Last month, Rep. Nadler reintroduced the MORE Act, highlighting advancements in state-level cannabis reform in an accompanying statement: “Since I introduced the MORE Act last Congress, numerous states across the nation, including my home state of New York, have moved to legalize marijuana. Our federal laws must keep up with this pace,” said Nadler, who chairs the House Judiciary Committee.

The Common Sense Cannabis Reform for Veterans, Small Businesses, and Medical Professionals Act

Introduced in the House by Reps. David Joyce (R-OH) and Don Young (R-AK)

May 2021

Perhaps recognizing the desire among their Republican party for simple legalization without any social justice provisions, two GOP representatives introduced a bill that would remove cannabis from the DEA’s Controlled Substances schedule, provide protection for cannabis-related financial services companies, and offer blanket protection for veterans to use medical cannabis in accordance with state laws. 

Reps. Joyce and Young, who are members of the bipartisan Congressional Cannabis Caucus, may have introduced the bill as an opening for House Republicans to support plain legalization without attaching their vote to the kind of progressive reform measures included in other legislation.

“One of the reasons the Joyce bill was introduced in the House was to see which Republicans are completely against legalization and which ones are okay with a simple, straightforward bill that only deschedules and doesn’t include any social justice or restorative issues,” said Fox.

Untitled Comprehensive Cannabis Reform

Upcoming in Senate by Senators Cory Booker (D-NY), Ron Wyden (D-OR) and Chuck Schumer (D-NY)

(Announced) February 2021

This piece of federal cannabis legislation is distinct from others in one important way: No one has seen it. From what the Senators have been saying about it for several months, the legislative package will focus on legalizing cannabis reform, while also striving to “right the wrongs of this failed war [on drugs] and end decades of harm inflicted on communities of color,” and “enact measures that will lift up people who were unfairly targeted in the War on Drugs.” Its promised social justice and equity measures have made it highly anticipated by the industry, but details are scant.

“Nobody to my knowledge outside of their offices has gotten a look at the actual language yet,” said Fox. “So far we’ve been hearing it’s going to be pretty heavy on restorative justice and social equity provisions…but again, we don’t know exactly what that looks like. So I think it’s going to be pretty important, once we see the details, to do a line-by-line with the MORE Act and see how they compare and contrast.”

Dasheeda Dawson, Cannabis Program Manager for the City of Portland and Chair of Cannabis Regulators of Color Coalition (CRCC), said it’s fair to expect the Senate legalization package to go even further than the MORE Act when it comes to restorative justice, given the history of the Senators involved.

“We expect MORE will be the baseline for the Schumer, Booker & Wyden efforts in the Senate,” said Dawson in an email to Cannabis Business Times and Cannabis Dispensary. “Much of the foundation of the MORE Act was built on Booker’s Marijuana Justice Act of 2017. If anything, because of the additional time and New York’s landmark legalization bill, I believe the Senate bill will be a slight step above the MORE Act as it pertains to restorative justice and equity.”  

The Secure and Fair Enforcement in (SAFE) Banking Act

Introduced in the House by Rep. Ed Perlmutter (D-CO)

March 2021 – passed April 2021 

The SAFE Banking Act is a more incremental reform step that would allow cannabis businesses access to the same kind of banking products available for other businesses, including credit and insurance. It also provides legal protection for ancillary businesses that provide service to the cannabis industry, such as contractors and packaging companies.

The bill has now passed a full floor vote in the House twice: once in September 2019, and once this past April, after its most recent introduction by Rep. Perlmutter. Now that even more Americans support full cannabis legalization, some in the industry hope the time is finally right to at least allow cannabis companies access to relatively basic business tools.

“SAFE Banking enjoys the support of the banking industry and many Republicans, so it could be seen as a fallback option should comprehensive legalization ultimately fail,” said Kris Krane, Founder of 4Front Ventures and President of Mission Dispensaries. 

But others believe that incremental progress could actually represent a step backwards for cannabis equity.

“On surface the SAFE Banking Act is a helpful band-aid for those already privileged to be participants in this developing industry,” said Dawson. “Passage of SAFE would be an incremental step that actually would further the gap in equity for this industry, even if it temporarily relieves small cannabis business[es] from the oppression of cash-only business management. There’s also risk that it will encourage much bigger industry players, like Amazon, to begin their money moves to position themselves for future domination.” 

In an early June blog post, Amazon announced it would no longer screen prospective hires for cannabis and its policy team would be “actively supporting” the MORE Act.

For now, the SAFE Banking Act awaits a hearing in the Senate after passing a floor vote in the House – just like the MORE Act.

The Hemp Access and Consumer Safety Act

Introduced in the Senate by Senators Rand Paul (R-KY), Ron Wyden (D-OR), and Jeff Merkley (D-OR)

May 2021

Like the SAFE Banking Act, the Hemp Access and Consumer Safety Act is a more incremental cannabis bill that would confirm the legal status of cannabidiol (CBD) and other hemp-derived supplements in foods and beverages. The bill is a companion to the Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2021, which was introduced in the House in February.

The Hemp Access act is designed to help bring clarity to a lucrative yet confusing industry: hemp and CBD. Right now, these products are sold in a gray area, since they’re not technically approved under federal law. Under the Farm Bill of 2018, The Food and Drug Administration (FDA) was supposed to create guidelines to regulate this prominent sector of the cannabis industry. To date, however, not much progress has been made outside of a few statements and official updates.

“The Hemp Access and Consumer Safety Act is a bill that only exists because the FDA has not done its job of regulating hemp-derived cannabinoids as an ingredient,” said Dawson. “I suspect this bill will be supported because it essentially compels the FDA to treat hemp-derived CBD specifically like a dietary supplement.”

“Theoretically it could move pretty easily, since it’s pretty narrowly-focused and is mandating something the FDA promised to do anyway and just hasn’t gotten around to yet,” added Fox when asked about the prospects of the bill in the Senate.

Despite all this activity, industry insiders are still pessimistic about federal cannabis legislation – particularly on a comprehensive scale.

“I think there’s definitely a chance of something passing this year but I don’t necessarily think that it’s going to be a comprehensive descheduling bill,” predicted Fox. 

“At this point, we don’t expect federal legalization to happen this year,” said Dawson. “There is still too large of a gap in cannabis competency at the federal level, across legislators and would-be regulators.”

 

Connecticut Makes Headway on Cannabis Legalization (Sort Of): Week in Review

by

By now, many in the industry are aware of the recent craze surrounding delta-8 tetrahydrocannabinol (THC), a natural component of cannabis that has burst into popularity over the past several months.

And it seems as soon as the industry has gained a solid understanding of delta-8, another THC compound has come into the spotlight: delta-10 THC. 

Similar to delta-8, delta-10 is a minor cannabinoid that exists in trace amounts in hemp and cannabis, according to ACS Laboratory, a cannabis, hemp and cannabidiol (CBD) testing laboratory in Florida.

As previously reported by Hemp Grower, delta-8 is said to have a relaxing effect and produces some psychotropic effects that are believed to be less potent than delta-9.

Roger Brown, the president and founder of ACS Laboratory, describes the effects of delta-10 to be the opposite of delta-8, based on his personal experience.

“For myself, I don’t utilize or smoke marijuana, but I tried delta-8 and delta-10 products that we tested as an experiment, and for me, delta-10 had no psychoactive effects; it was more like a mood enhancer,” he says.

Erik Paulson, senior analyst at Infinite Chemical Analysis Labs, an analytical cannabis and CBD testing lab with locations in California and Michigan, says he’s heard consumers compare delta-10’s effects to sativa cannabis varieties, which are traditionally known for being energizing and uplifting, and delta-8 effects to indica varieties, which are associated with relaxation.

However, Paulson says he’s unsure if there’s any scientific evidence behind that, adding,  “It could just be that the higher psychoactivity of delta-8 is causing more of a pronounced sedative effect compared to delta-10.”

At this point, Paulson and Brown both say there is some published research on delta-10, though it is minimal.

A pigeon study conducted in the 1980s by Raphael Mechoulam, a cannabis research pioneer, studied the effects of delta-10 compared to delta-9 on pigeons. The study found that delta-10 may have some psychoactive effects, but the effects are much less potent than delta-9.

However, “there’s not as much known about delta-10 in terms of the psychoactivity and its effects on the human body,” Paulson says.

Where it Comes From

Like delta-8, delta-10 can be converted in a laboratory from delta-9 or CBD, Paulson says.

Delta-10 is typically produced more predominantly through extraction or converted from delta-9 through isomerization, he says. Transforming delta-9 to delta-10 (or delta-8) is possible because they have the same chemical compounds, just different structures.

According to Extraction Magazine, extractors would waste a significant amount of time and plant material trying to extract delta-10 from natural varieties, so it is more likely produced via isomerization. Delta-10 appears in such small amounts that laboratories often misidentify the compound for [cannabichromene] CBC or [cannabicyclol] CBL using standard high-performance liquid chromatography (HPLC) methods.

“You can create any delta you want—delta-8, delta-9, or delta-10—by chemically altering CBD isolate or CBD crude,” David Reckles, president of Private Label Hemp Lab, a hemp testing and manufacturing lab in Florida, told ACS Laboratory. “If you’re using crude CBD, you’ll generally create the reaction through carbon and vitamin C derivatives. If you’re using an isolate, you’ll incorporate solvents and acids.”

RELATED: Understanding Delta-8-THC: Where Does It Come From?

Delta-10 vs. Delta-8 and Delta-9: Chemical Differences

Delta-10 is an isomer of delta-9, Brown says.

Paulson says when one begins to isolate delta-9 or, more commonly, convert THC to CBD, they’ll start to discover the additional isomers (or different classifications of THC).

“Really, all THC isomers chemically have the same basic structure,” he says. “It’s just the placement of one bond that differs between the different isomers.”

For example, as previously reported by Hemp Grower, “delta-8 has a double bond on the 8th carbon chain, and delta-9 has a double bond on the 9th carbon chain.”

Delta-10 follows the same pattern and has a double bond on the 10th carbon chain. And while this seems like a “small distinction, it’s enough to produce slightly different cognitive and physical effects,” Hemp Grower previously reported.

Brown says that a significant difference is delta-8 can essentially only produce one compound, whereas delta-10 can produce up to six different isomers (variations of the same compound).

“What we call delta-10 is really a mixture of two different types of compounds, and then within that, they might have different configurations,” Paulson says. “So, there’s just a lot of different compounds, and that’s one of the reasons why it’s so challenging to quantify accurately. So, in terms of psychoactivity, instead of having to test one compound, you have to test six.” 

Legal Status

According to ACS Laboratory, “Delta-10 THC derived from cannabis is [federally] illegal because marijuana is a schedule 1 controlled substance. However, delta-10 derived from hemp extract exists in a legal gray zone.”

And Brown agrees, arguing that the Agriculture Improvement Act of 2018 (the 2018 Farm Bill) is very “specific to delta-9,” and if a delta-8 or delta-10 product derived from hemp contains less than 0.3% total THC (defined as delta-9 THC plus tetrahydrocannabinolic acid (THCA), its acidic version), then it’s considered “legal.”

The Drug Enforcement Administration’s (DEA) response to the 2018 Farm Bill is: “All synthetically derived tetrahydrocannabinols remain schedule 1 controlled substances.”

“So, in our mind, all tetrahydrocannabinols cannabinoids are considered federally illegal,” Paulson says. “We’re not placing a judgment on that, whether it’s right to do that or not. I just think there hasn’t been a lot of legal challenges to these laws and to that point, people keep on producing delta-8 and delta-10 products….”

More than 12 states have already begun to implement delta-8 bans, while very few states, including New York, Colorado and Alabama, have started to crack down on delta-10.

And Paulson says while delta-10 may currently be “flying under the radar,” he thinks it’s only a “matter of time” before there’s increased regulation.

Surna Cultivation Technologies Introduces High Efficiency EcoChill Heat Recovery Chiller

by

By now, many in the industry are aware of the recent craze surrounding delta-8 tetrahydrocannabinol (THC), a natural component of cannabis that has burst into popularity over the past several months.

And it seems as soon as the industry has gained a solid understanding of delta-8, another THC compound has come into the spotlight: delta-10 THC. 

Similar to delta-8, delta-10 is a minor cannabinoid that exists in trace amounts in hemp and cannabis, according to ACS Laboratory, a cannabis, hemp and cannabidiol (CBD) testing laboratory in Florida.

As previously reported by Hemp Grower, delta-8 is said to have a relaxing effect and produces some psychotropic effects that are believed to be less potent than delta-9.

Roger Brown, the president and founder of ACS Laboratory, describes the effects of delta-10 to be the opposite of delta-8, based on his personal experience.

“For myself, I don’t utilize or smoke marijuana, but I tried delta-8 and delta-10 products that we tested as an experiment, and for me, delta-10 had no psychoactive effects; it was more like a mood enhancer,” he says.

Erik Paulson, senior analyst at Infinite Chemical Analysis Labs, an analytical cannabis and CBD testing lab with locations in California and Michigan, says he’s heard consumers compare delta-10’s effects to sativa cannabis varieties, which are traditionally known for being energizing and uplifting, and delta-8 effects to indica varieties, which are associated with relaxation.

However, Paulson says he’s unsure if there’s any scientific evidence behind that, adding,  “It could just be that the higher psychoactivity of delta-8 is causing more of a pronounced sedative effect compared to delta-10.”

At this point, Paulson and Brown both say there is some published research on delta-10, though it is minimal.

A pigeon study conducted in the 1980s by Ralph Micheolam, a cannabis research pioneer, studied the effects of delta-10 compared to delta-9 on pigeons. The study found that delta-10 may have some psychoactive effects, but the effects are much less potent than delta-9.

However, “there’s not as much known about delta-10 in terms of the psychoactivity and its effects on the human body,” Paulson says.

Where it Comes From

Like delta-8, delta-10 can be converted in a laboratory from delta-9 or CBD, Paulson says.

Delta-10 is typically produced more predominantly through extraction or converted from delta-9 through isomerization, he says. Transforming delta-9 to delta-10 (or delta-8) is possible because they have the same chemical compounds, just different structures.

According to Extraction Magazine, extractors would waste a significant amount of time and plant material trying to extract delta-10 from natural strains, so it is more likely produced via isomerization. Delta-10 appears in such small amounts that laboratories often misidentify the compound for [cannabichromene] CBC or [cannabicyclol] CBL using standard high-performance liquid chromatography (HPLC) methods.

“You can create any delta you want—delta-8, delta-9, or delta-10—by chemically altering CBD isolate or CBD crude,” David Reckles, president of Private Label Hemp Lab, a hemp testing and manufacturing lab in Florida, told ACS Laboratory. “If you’re using crude CBD, you’ll generally create the reaction through carbon and vitamin C derivatives. If you’re using an isolate, you’ll incorporate solvents and acids.”

RELATED: Understanding Delta-8-THC: Where Does It Come From?

Delta-10 vs. Delta-8 and Delta-9: Chemical Differences

Delta-10 is an isomer of delta-9, Brown says.

Paulson says when one begins to isolate delta-9 or, more commonly, convert THC to CBD, they’ll start to discover the additional isomers (or different classifications of THC).

“Really, all THC isomers chemically have the same basic structure,” he says. “It’s just the placement of one bond that differs between the different isomers.”

For example, as previously reported by Hemp Grower, “delta-8 has a double bond on the 8th carbon chain, and delta-9 has a double bond on the 9th carbon chain.”

Delta-10 follows the same pattern and has a double bond on the 10th carbon chain. And while this seems like a “small distinction, it’s enough to produce slightly different cognitive and physical effects,” Hemp Grower previously reported.

Brown says that a significant difference is delta-8 can essentially only produce one compound, whereas delta-10 can produce up to six different isomers (variations of the same compound).

“What we call delta-10 is really a mixture of two different types of compounds, and then within that, they might have different configurations,” Paulson says. “So, there’s just a lot of different compounds, and that’s one of the reasons why it’s so challenging to quantify accurately. So, in terms of psychoactivity, instead of having to test one compound, you have to test six.” 

Legal Status

According to ACS Laboratory, “Delta-10 THC derived from cannabis is [federally] illegal because marijuana is a schedule 1 controlled substance. However, delta-10 derived from hemp extract exists in a legal gray zone.”

And Brown agrees, arguing that the Agriculture Improvement Act of 2018 (the 2018 Farm Bill) is very “specific to delta-9,” and if a delta-8 or delta-10 product derived from hemp contains less than 0.3% total THC (defined as delta-9 THC plus tetrahydrocannabinolic acid (THCA), its acidic version), then it’s considered “legal.”

The Drug Enforcement Administration’s (DEA) response to the 2018 Farm Bill is: “All synthetically derived tetrahydrocannabinols remain schedule 1 controlled substances.”

“So, in our mind, all tetrahydrocannabinols cannabinoids are considered federally illegal,” Paulson says. “We’re not placing a judgment on that, whether it’s right to do that or not. I just think there hasn’t been a lot of legal challenges to these laws and to that point, people keep on producing delta-8 and delta-10 products….”

More than 12 states have already begun to implement delta-8 bans, while very few states, including New York, Colorado and Alabama, have started to crack down on delta-10.

And Paulson says while delta-10 may currently be “flying under the radar,” he thinks it’s only a “matter of time” before there’s increased regulation.

Law Enforcement Action Partnership Joins Cannabis Freedom Alliance Steering Committee

by

By now, many in the industry are aware of the recent craze surrounding delta-8 tetrahydrocannabinol (THC), a natural component of cannabis that has burst into popularity over the past several months.

And it seems as soon as the industry has gained a solid understanding of delta-8, another THC compound has come into the spotlight: delta-10 THC. 

Similar to delta-8, delta-10 is a minor cannabinoid that exists in trace amounts in hemp and cannabis, according to ACS Laboratory, a cannabis, hemp and cannabidiol (CBD) testing laboratory in Florida.

As previously reported by Hemp Grower, delta-8 is said to have a relaxing effect and produces some psychotropic effects that are believed to be less potent than delta-9.

Roger Brown, the president and founder of ACS Laboratory, describes the effects of delta-10 to be the opposite of delta-8, based on his personal experience.

“For myself, I don’t utilize or smoke marijuana, but I tried delta-8 and delta-10 products that we tested as an experiment, and for me, delta-10 had no psychoactive effects; it was more like a mood enhancer,” he says.

Erik Paulson, senior analyst at Infinite Chemical Analysis Labs, an analytical cannabis and CBD testing lab with locations in California and Michigan, says he’s heard consumers compare delta-10’s effects to sativa cannabis varieties, which are traditionally known for being energizing and uplifting, and delta-8 effects to indica varieties, which are associated with relaxation.

However, Paulson says he’s unsure if there’s any scientific evidence behind that, adding,  “It could just be that the higher psychoactivity of delta-8 is causing more of a pronounced sedative effect compared to delta-10.”

At this point, Paulson and Brown both say there is some published research on delta-10, though it is minimal.

A pigeon study conducted in the 1980s by Ralph Micheolam, a cannabis research pioneer, studied the effects of delta-10 compared to delta-9 on pigeons. The study found that delta-10 may have some psychoactive effects, but the effects are much less potent than delta-9.

However, “there’s not as much known about delta-10 in terms of the psychoactivity and its effects on the human body,” Paulson says.

Where it Comes From

Like delta-8, delta-10 can be converted in a laboratory from delta-9 or CBD, Paulson says.

Delta-10 is typically produced more predominantly through extraction or converted from delta-9 through isomerization, he says. Transforming delta-9 to delta-10 (or delta-8) is possible because they have the same chemical compounds, just different structures.

According to Extraction Magazine, extractors would waste a significant amount of time and plant material trying to extract delta-10 from natural strains, so it is more likely produced via isomerization. Delta-10 appears in such small amounts that laboratories often misidentify the compound for [cannabichromene] CBC or [cannabicyclol] CBL using standard high-performance liquid chromatography (HPLC) methods.

“You can create any delta you want—delta-8, delta-9, or delta-10—by chemically altering CBD isolate or CBD crude,” David Reckles, president of Private Label Hemp Lab, a hemp testing and manufacturing lab in Florida, told ACS Laboratory. “If you’re using crude CBD, you’ll generally create the reaction through carbon and vitamin C derivatives. If you’re using an isolate, you’ll incorporate solvents and acids.”

RELATED: Understanding Delta-8-THC: Where Does It Come From?

Delta-10 vs. Delta-8 and Delta-9: Chemical Differences

Delta-10 is an isomer of delta-9, Brown says.

Paulson says when one begins to isolate delta-9 or, more commonly, convert THC to CBD, they’ll start to discover the additional isomers (or different classifications of THC).

“Really, all THC isomers chemically have the same basic structure,” he says. “It’s just the placement of one bond that differs between the different isomers.”

For example, as previously reported by Hemp Grower, “delta-8 has a double bond on the 8th carbon chain, and delta-9 has a double bond on the 9th carbon chain.”

Delta-10 follows the same pattern and has a double bond on the 10th carbon chain. And while this seems like a “small distinction, it’s enough to produce slightly different cognitive and physical effects,” Hemp Grower previously reported.

Brown says that a significant difference is delta-8 can essentially only produce one compound, whereas delta-10 can produce up to six different isomers (variations of the same compound).

“What we call delta-10 is really a mixture of two different types of compounds, and then within that, they might have different configurations,” Paulson says. “So, there’s just a lot of different compounds, and that’s one of the reasons why it’s so challenging to quantify accurately. So, in terms of psychoactivity, instead of having to test one compound, you have to test six.” 

Legal Status

According to ACS Laboratory, “Delta-10 THC derived from cannabis is [federally] illegal because marijuana is a schedule 1 controlled substance. However, delta-10 derived from hemp extract exists in a legal gray zone.”

And Brown agrees, arguing that the Agriculture Improvement Act of 2018 (the 2018 Farm Bill) is very “specific to delta-9,” and if a delta-8 or delta-10 product derived from hemp contains less than 0.3% total THC (defined as delta-9 THC plus tetrahydrocannabinolic acid (THCA), its acidic version), then it’s considered “legal.”

The Drug Enforcement Administration’s (DEA) response to the 2018 Farm Bill is: “All synthetically derived tetrahydrocannabinols remain schedule 1 controlled substances.”

“So, in our mind, all tetrahydrocannabinols cannabinoids are considered federally illegal,” Paulson says. “We’re not placing a judgment on that, whether it’s right to do that or not. I just think there hasn’t been a lot of legal challenges to these laws and to that point, people keep on producing delta-8 and delta-10 products….”

More than 12 states have already begun to implement delta-8 bans, while very few states, including New York, Colorado and Alabama, have started to crack down on delta-10.

And Paulson says while delta-10 may currently be “flying under the radar,” he thinks it’s only a “matter of time” before there’s increased regulation.

Latest Cannabinoid in the Spotlight: Delta-10 THC

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By now, many in the industry are aware of the recent craze surrounding delta-8 tetrahydrocannabinol (THC), a natural component of cannabis that has burst into popularity over the past several months.

And it seems as soon as the industry has gained a solid understanding of delta-8, another THC compound has come into the spotlight: delta-10 THC. 

Similar to delta-8, delta-10 is a minor cannabinoid that exists in trace amounts in hemp and cannabis, according to ACS Laboratory, a cannabis, hemp and cannabidiol (CBD) testing laboratory in Florida.

As previously reported by Hemp Grower, delta-8 is said to have a relaxing effect and produces some psychotropic effects that are believed to be less potent than delta-9.

Roger Brown, the president and founder of ACS Laboratory, describes the effects of delta-10 to be the opposite of delta-8, based on his personal experience.

“For myself, I don’t utilize or smoke marijuana, but I tried delta-8 and delta-10 products that we tested as an experiment, and for me, delta-10 had no psychoactive effects; it was more like a mood enhancer,” he says.

Erik Paulson, senior analyst at Infinite Chemical Analysis Labs, an analytical cannabis and CBD testing lab with locations in California and Michigan, says he’s heard consumers compare delta-10’s effects to sativa cannabis varieties, which are traditionally known for being energizing and uplifting, and delta-8 effects to indica varieties, which are associated with relaxation.

However, Paulson says he’s unsure if there’s any scientific evidence behind that, adding,  “It could just be that the higher psychoactivity of delta-8 is causing more of a pronounced sedative effect compared to delta-10.”

At this point, Paulson and Brown both say there is some published research on delta-10, though it is minimal.

A pigeon study conducted in the 1980s by Ralph Micheolam, a cannabis research pioneer, studied the effects of delta-10 compared to delta-9 on pigeons. The study found that delta-10 may have some psychoactive effects, but the effects are much less potent than delta-9.

However, “there’s not as much known about delta-10 in terms of the psychoactivity and its effects on the human body,” Paulson says.

Where it Comes From

Like delta-8, delta-10 can be converted in a laboratory from delta-9 or CBD, Paulson says.

Delta-10 is typically produced more predominantly through extraction or converted from delta-9 through isomerization, he says. Transforming delta-9 to delta-10 (or delta-8) is possible because they have the same chemical compounds, just different structures.

According to Extraction Magazine, extractors would waste a significant amount of time and plant material trying to extract delta-10 from natural strains, so it is more likely produced via isomerization. Delta-10 appears in such small amounts that laboratories often misidentify the compound for [cannabichromene] CBC or [cannabicyclol] CBL using standard high-performance liquid chromatography (HPLC) methods.

“You can create any delta you want—delta-8, delta-9, or delta-10—by chemically altering CBD isolate or CBD crude,” David Reckles, president of Private Label Hemp Lab, a hemp testing and manufacturing lab in Florida, told ACS Laboratory. “If you’re using crude CBD, you’ll generally create the reaction through carbon and vitamin C derivatives. If you’re using an isolate, you’ll incorporate solvents and acids.”

RELATED: Understanding Delta-8-THC: Where Does It Come From?

Delta-10 vs. Delta-8 and Delta-9: Chemical Differences

Delta-10 is an isomer of delta-9, Brown says.

Paulson says when one begins to isolate delta-9 or, more commonly, convert THC to CBD, they’ll start to discover the additional isomers (or different classifications of THC).

“Really, all THC isomers chemically have the same basic structure,” he says. “It’s just the placement of one bond that differs between the different isomers.”

For example, as previously reported by Hemp Grower, “delta-8 has a double bond on the 8th carbon chain, and delta-9 has a double bond on the 9th carbon chain.”

Delta-10 follows the same pattern and has a double bond on the 10th carbon chain. And while this seems like a “small distinction, it’s enough to produce slightly different cognitive and physical effects,” Hemp Grower previously reported.

Brown says that a significant difference is delta-8 can essentially only produce one compound, whereas delta-10 can produce up to six different isomers (variations of the same compound).

“What we call delta-10 is really a mixture of two different types of compounds, and then within that, they might have different configurations,” Paulson says. “So, there’s just a lot of different compounds, and that’s one of the reasons why it’s so challenging to quantify accurately. So, in terms of psychoactivity, instead of having to test one compound, you have to test six.” 

Legal Status

According to ACS Laboratory, “Delta-10 THC derived from cannabis is [federally] illegal because marijuana is a schedule 1 controlled substance. However, delta-10 derived from hemp extract exists in a legal gray zone.”

And Brown agrees, arguing that the Agriculture Improvement Act of 2018 (the 2018 Farm Bill) is very “specific to delta-9,” and if a delta-8 or delta-10 product derived from hemp contains less than 0.3% total THC (defined as delta-9 THC plus tetrahydrocannabinolic acid (THCA), its acidic version), then it’s considered “legal.”

The Drug Enforcement Administration’s (DEA) response to the 2018 Farm Bill is: “All synthetically derived tetrahydrocannabinols remain schedule 1 controlled substances.”

“So, in our mind, all tetrahydrocannabinols cannabinoids are considered federally illegal,” Paulson says. “We’re not placing a judgment on that, whether it’s right to do that or not. I just think there hasn’t been a lot of legal challenges to these laws and to that point, people keep on producing delta-8 and delta-10 products….”

More than 12 states have already begun to implement delta-8 bans, while very few states, including New York, Colorado and Alabama, have started to crack down on delta-10.

And Paulson says while delta-10 may currently be “flying under the radar,” he thinks it’s only a “matter of time” before there’s increased regulation.

Clock is Ticking for Adult-Use Cannabis Bill in Connecticut 

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Less than a month after debuting on the Nasdaq Stock Market, Colombia-based cultivator Flora Growth is connecting its cannabis pipeline to Europe through a manufacturing and distribution partnership with Hoshi International.

Headquartered in Toronto, but with 95% of its operations in Colombia, globally motivated Flora Growth made a 2-million-euro ($2.4 million) strategic investment to become a preferred supplier to Hoshicap Portugal—a subsidy of Toronto-based Hoshi International—the company announced June 7.

Courtesy of Flora Growth | floragrowth.ca

Luis Merchan became the CEO of Flora Growth in December as the company worked toward a public listing. 

The investment will provide Flora access to extraction facilities in Malta and Portugal to process its cannabis derivatives from Colombia and distribute them through Hoshi’s channels throughout Europe. The transaction is the first of many steps intended by Flora to launch its seven brands and 300-plus products across the world, President and CEO Luis Merchan told Cannabis Business Times. Flora’s cultivation practices to supply cannabis derivatives also include business divisions in cosmetics, hemp textiles, and food and beverage.

The Portugal license will allow for the cultivation and import of cannabis produced through good agricultural and collection practices (GACP)—guidelines outlined by the World Health Organization for medicinal plants—and also enable the Good Manufacturing Practice (GMP)-certified processing facility to export indoor and outdoor medical cannabis throughout Europe.

In Malta, Hoshi is completing its GMP facility to produce, process and package cannabis products, including oil derivatives, to be distributed throughout the European Union (EU). Hoshi’s Maltese entity received a provisional medical cannabis license covering cultivation, processing and importation/exportation under Malta’s Production of Cannabis for Medicinal and Research Purposes Act. 

“Those assets, the cultivation in Portugal as well as the facility in Malta, opened the door to us for completing the supply chain into the European Union,” Merchan said. “That’s very important to us because the market in the European Union is significant. Obviously, the No. 1 economy (in Europe), Germany, is very attractive and clearly is open for the import of cannabis derivatives. And having a partner as Hoshi as a critical partner and preferred distributor for the European Union became a no-brainer.”

Merchan said Portugal and Malta offer favorable regulatory environments, and low labor and energy costs. In addition, Hoshi’s analytical testing labs in Malta will allow Flora to establish a consistent import and distribution hub, which opens the doors for sought-after markets such as Germany, he said.

With a population of roughly 750 million and a health care spend exceeding 2.1 trillion euros, Europe has the potential to become the largest global market for medical cannabis products, according to Hoshi. That’s including non-EU members such as the United Kingdom (U.K.), which rivals Germany and France among the largest economies on the continent.

But that potential high-growth market has yet to be fully tapped because of a lack of legal infrastructure to supply GMP and GACP-grade medical product, according to Hoshi, which is on course to have EU cultivation licenses under both practices by first quarter 2022. 

Included in the Flora-Hoshi partnership, Flora will provide access to its library of tested and proven outdoor genetics to Hoshi for eventual cultivation at its Portugal facility. Hoshi also has import distribution agreements in the Czech Republic, Germany, Poland and the U.K.

“With the partnership with Flora Growth, Hoshi can now fast track a number of established initiatives to sell high-quality GACP flower to the EU market,” Hoshi CEO John Aird said in a Flora press release announcing the partnership. “We look forward to working with the Flora team and accessing not only their high-end genetics and outdoor grown cannabis but also assisting Flora move more finished products to its customers across the EU and globally.”

Courtesy of Flora Growth | floragrowth.ca

Flora Growth cultivates 100 hectares of cannabis year-round near the equator in Bucaramanga, Columbia. 

Founded in 2019, Flora leverages natural, low-cost cultivation practices with an all-outdoor cultivation operation that includes roughly 100 hectares (247 acres) of cannabis in Bucaramanga, Colombia. Approximately 500 miles north of the equator, Flora’s farm produces year-round yields with 12-plus hours of natural sunlight per day and a constant breeze of 3 mph at 1,500 meters above sea level, Merchan said. In addition, the Flora farm has six natural spring-water deposits to further reduce operational costs. 

Those natural conditions allow Flora to cultivate dried cannabis flower at 6 cents per gram (roughly $25 to $30 per pound), he said.

“We are cultivating under one of the best geographies in the world in terms of flower cultivation,” said Merchan, a dual citizen who was born and raised in Colombia but has spent his entire executive career specializing in retail and consumer packaged goods in the U.S., including his role as Macy’s Inc.’s vice president of workforce strategy and operations.

“The problem with cultivating and growing cannabis in [the U.S. and Canada] is the severe weather, right?” he said. “If you are doing it outdoors, you can only cultivate for a portion of the year. If you want to do it year-round, you have to build massive infrastructures to cultivate indoors, and that immediately increases your cultivation costs over the long term.”

When Flora debuted on the Nasdaq on May 11, the company publicized the U.S.-based initial public offering (IPO) as the first known cannabis cultivator to list without using a special purpose acquisition company (SPAC), reverse merger or dual listing. Flora completed a $30 million pre-IPO equity raise in 2020, and then raised another $16.6 million once it completed the IPO.

Merchan said Flora already had enough funds to complete the transaction with Hoshi before the listing, but completing the IPO allowed the company to increase its cash position, which opened the door to freely finalize the Hoshi partnership as well as many other deals that are in the works and will be shared with investors and publicly as they become realities.

“[Expanding to Europe has] been part, all along, of our overall long-term strategy,” Merchan said. “We founded Flora Growth under the vision of becoming a global player in the cannabis industry. Europe, it’s a very attractive economy because of acquisition power, but also because of the favorable regulatory environment of some of the countries within the European Union. So, we knew all along that this was going to be an important step towards our expansion and distribution.”

How Effective is Your Internal Auditing Program?

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The word “audit” evokes various emotions depending on your role in an organization and the context of the audit. While most are familiar with and loathe the IRS’s potential for a tax audit, the audits we are going to discuss today are (or should be) welcomed – proactive internal quality audits. A softer term that is also acceptable is “self-assessment.” These are independent assessments conducted to determine how effective an organization’s risk management, processes and general governance is. 

“How do you know where you’re going if you don’t know where you’ve been” – Maya Angelou

Internal quality audits are critical to ensuring the safety of products, workers, consumers and the environment. When planned and performed periodically, these audits provide credible, consistent and objective evidence to inform the organization of its risks, weaknesses and opportunities for improvement. Ask yourself the question: do your clients/vendors rely on you to produce reliable, consistent and safe products? Assuming the answer is yes, what confidence do you have, and where is the documented evidence to support it?

Compliance units within cannabis businesses are typically responsible for ensuring a business stays legally compliant with state and federal regulations. This level of minimum compliance is critical to prevent fines and ensure licenses are not revoked. However, compliance audits rarely include fundamental components that leave cannabis operators exposed to many unnecessary risks.

Internal quality audits are critical to ensuring the safety of products, workers, consumers and the environment.

As a producer of medical and adult-use products that are ingested, inhaled or consumed in other forms by our friends, family and neighbors, how can you be sure that these products are produced safely and consistently? Are you confident that the legal requirements mandated by your state cannabis control board are sufficient? Judging by the number of recalls and frustrations voiced by the industry regarding the myriad of regulations, I would bet the answer is no.

What questions do internal audits address? Some examples include:

  • Are you operating as management intends?
  • How effective is your system in meeting specified objectives? These objectives could include quality metrics of your products, on-time delivery rates and other client/customer satisfaction metrics.
  • Are there opportunities to improve?
  • Are you doing what you say you do (in your SOPs), and do you have the recorded evidence (records) to prove it?
  • Are you meeting the requirements of all applicable government regulations?

There are potential drawbacks to internal audits. For one, as impartiality is essential in internal audits, it may be challenging to identify an impartial internal auditor in a small operation. If your team always feels like it is in firefighting mode, it may feel like a luxury to take the time to pull members out of their day-to-day duties and disrupt ongoing operations for an audit. Some fear that as internal assessments are meant to be more thorough than external assessments, a laundry list of to-do items may be uncovered due to the audit. But, these self-assessments often uncover issues that have resulted in operational efficiencies in the first place. This resulting “laundry list” then affords a proactive tool to implement corrective actions in an organized manner that can prevent the recurrence of major issues, as well as prevent new issues. The benefits of internal audits outweigh the drawbacks; not to mention, conducting internal audits is required by nearly every globally-recognized program, both voluntary (e.g. ISO 9001 or ASTM Internationals’s Cannabis Certification Program) and government required programs such as 21 CFR 211 for Pharmaceuticals.

Internal Auditing is a catalyst for improving an organization’s effectiveness and efficiency by providing insight and recommendations based on analyses and assessments of data and business processes. Additional benefits of internal audits include giving your organization the means to:

  • Ensure compliance to the requirements of internal, international and industry standards as well as regulations and customer requirements
  • Determine the effectiveness of the implemented system in meeting specified objectives (quality, environmental, financial)
  • Explore opportunities for improvement
  • Meet statutory and regulatory requirements
  • Provide feedback to Top Management
  • Lower the cost of poor quality

Findings from all audits must be addressed. This is typically done in accordance with a CAPA (Corrective Action Preventive Action) program. To many unfamiliar with Quality Management Systems, this may be a new term. As of Jan 1, 2021, this is now a requirement for all cannabis licensed operators in Colorado. Many other states require a CAPA program or similar. Continuing education units (CEUs) are available through ASTM International’s CAPA training program, which was developed specifically for the cannabis industry.

Examples of common audit findings that require CAPAs include:

  • Calibration – Production and test equipment must be calibrated to ensure they provide accurate and repeatable results.
  • Document and record control – Documents and records need to be readily accessible but protected from unintended use.
  • Supplier management – Most standards have various requirements for supplier management that may include auditing suppliers, monitoring supplier performance, only using suppliers certified to specific standards, etc.
  • Internal audits – Believe it or not, since internal audits are required by many programs, it’s not uncommon to have a finding related to internal audits! Findings from an internal audit can include not conducting audits on schedule, not addressing audit findings or not having a properly qualified internal auditor. Are you looking for more guidance? Last year, members of ASTM International’s D37 Committee on Cannabis approved a Standard Guide for Cannabis and Hemp Operation Compliance Audits, ASTM D8308-21.

If you are still on the fence about the value of an internal audit, given the option of an inspector uncovering a non-conformance or your own team discovering and then correcting it, which would you prefer? With fines easily exceeding $100,000 by many cannabis enforcement units, the answer should be clear. Internal audits are a valuable tool that should not be feared.

NFL, Players Association Provide $1 million for Cannabinoid Research on Pain Management

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Less than a month after debuting on the Nasdaq Stock Market, Colombia-based cultivator Flora Growth is connecting its cannabis pipeline to Europe through a manufacturing and distribution partnership with Hoshi International.

Headquartered in Toronto, but with 95% of its operations in Colombia, globally motivated Flora Growth made a 2-million-euro ($2.4 million) strategic investment to become a preferred supplier to Hoshicap Portugal—a subsidy of Toronto-based Hoshi International—the company announced June 7.

Courtesy of Flora Growth | floragrowth.ca

Luis Merchan became the CEO of Flora Growth in December as the company worked toward a public listing. 

The investment will provide Flora access to extraction facilities in Malta and Portugal to process its cannabis derivatives from Colombia and distribute them through Hoshi’s channels throughout Europe. The transaction is the first of many steps intended by Flora to launch its seven brands and 300-plus products across the world, President and CEO Luis Merchan told Cannabis Business Times. Flora’s cultivation practices to supply cannabis derivatives also include business divisions in cosmetics, hemp textiles, and food and beverage.

The Portugal license will allow for the cultivation and import of cannabis produced through good agricultural and collection practices (GACP)—guidelines outlined by the World Health Organization for medicinal plants—and also enable the Good Manufacturing Practice (GMP)-certified processing facility to export indoor and outdoor medical cannabis throughout Europe.

In Malta, Hoshi is completing its GMP facility to produce, process and package cannabis products, including oil derivatives, to be distributed throughout the European Union (EU). Hoshi’s Maltese entity received a provisional medical cannabis license covering cultivation, processing and importation/exportation under Malta’s Production of Cannabis for Medicinal and Research Purposes Act. 

“Those assets, the cultivation in Portugal as well as the facility in Malta, opened the door to us for completing the supply chain into the European Union,” Merchan said. “That’s very important to us because the market in the European Union is significant. Obviously, the No. 1 economy (in Europe), Germany, is very attractive and clearly is open for the import of cannabis derivatives. And having a partner as Hoshi as a critical partner and preferred distributor for the European Union became a no-brainer.”

Merchan said Portugal and Malta offer favorable regulatory environments, and low labor and energy costs. In addition, Hoshi’s analytical testing labs in Malta will allow Flora to establish a consistent import and distribution hub, which opens the doors for sought-after markets such as Germany, he said.

With a population of roughly 750 million and a health care spend exceeding 2.1 trillion euros, Europe has the potential to become the largest global market for medical cannabis products, according to Hoshi. That’s including non-EU members such as the United Kingdom (U.K.), which rivals Germany and France among the largest economies on the continent.

But that potential high-growth market has yet to be fully tapped because of a lack of legal infrastructure to supply GMP and GACP-grade medical product, according to Hoshi, which is on course to have EU cultivation licenses under both practices by first quarter 2022. 

Included in the Flora-Hoshi partnership, Flora will provide access to its library of tested and proven outdoor genetics to Hoshi for eventual cultivation at its Portugal facility. Hoshi also has import distribution agreements in the Czech Republic, Germany, Poland and the U.K.

“With the partnership with Flora Growth, Hoshi can now fast track a number of established initiatives to sell high-quality GACP flower to the EU market,” Hoshi CEO John Aird said in a Flora press release announcing the partnership. “We look forward to working with the Flora team and accessing not only their high-end genetics and outdoor grown cannabis but also assisting Flora move more finished products to its customers across the EU and globally.”

Courtesy of Flora Growth | floragrowth.ca

Flora Growth cultivates 100 hectares of cannabis year-round near the equator in Bucaramanga, Columbia. 

Founded in 2019, Flora leverages natural, low-cost cultivation practices with an all-outdoor cultivation operation that includes roughly 100 hectares (247 acres) of cannabis in Bucaramanga, Colombia. Approximately 500 miles north of the equator, Flora’s farm produces year-round yields with 12-plus hours of natural sunlight per day and a constant breeze of 3 mph at 1,500 meters above sea level, Merchan said. In addition, the Flora farm has six natural spring-water deposits to further reduce operational costs. 

Those natural conditions allow Flora to cultivate dried cannabis flower at 6 cents per gram (roughly $25 to $30 per pound), he said.

“We are cultivating under one of the best geographies in the world in terms of flower cultivation,” said Merchan, a dual citizen who was born and raised in Colombia but has spent his entire executive career specializing in retail and consumer packaged goods in the U.S., including his role as Macy’s Inc.’s vice president of workforce strategy and operations.

“The problem with cultivating and growing cannabis in [the U.S. and Canada] is the severe weather, right?” he said. “If you are doing it outdoors, you can only cultivate for a portion of the year. If you want to do it year-round, you have to build massive infrastructures to cultivate indoors, and that immediately increases your cultivation costs over the long term.”

When Flora debuted on the Nasdaq on May 11, the company publicized the U.S.-based initial public offering (IPO) as the first known cannabis cultivator to list without using a special purpose acquisition company (SPAC), reverse merger or dual listing. Flora completed a $30 million pre-IPO equity raise in 2020, and then raised another $16.6 million once it completed the IPO.

Merchan said Flora already had enough funds to complete the transaction with Hoshi before the listing, but completing the IPO allowed the company to increase its cash position, which opened the door to freely finalize the Hoshi partnership as well as many other deals that are in the works and will be shared with investors and publicly as they become realities.

“[Expanding to Europe has] been part, all along, of our overall long-term strategy,” Merchan said. “We founded Flora Growth under the vision of becoming a global player in the cannabis industry. Europe, it’s a very attractive economy because of acquisition power, but also because of the favorable regulatory environment of some of the countries within the European Union. So, we knew all along that this was going to be an important step towards our expansion and distribution.”