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Adult-Use Cannabis Legalization Effort Begins in Ohio

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The explosive, unregulated growth of delta-8 tetrahydrocannabinol (THC) is coming with a dangerous consequence: Poison control centers across the country are reporting a rise in calls from those who have ingested the cannabinoid. 

At least four states have issued public warnings regarding the cannabinoid, according to local news reports: Michigan, West Virginia, Virginia and North Carolina.

So far this year, as of July, the North Carolina Poison Control Center reported 157 cases related to delta-8, according to the Winston-Salem Journal. Virginia is reporting “dozens” of calls this year.

The rise in calls can be attributed to a number of factors, from the market’s lack of standards to delta-8’s accessibility to minors.

But perhaps the most concerning cause for an increase in delta-8 poison center calls is due to mislabeling–in some cases, consumers hoping to buy these products may be purchasing unregulated, illegal cannabis without knowing.

“This is part and parcel for what happens when you have an unregulated market,” says Jonathan Miller, general counsel for U.S. Hemp Roundtable. 

Mislabeling Plays a Role

A recently published report shines a light on just how prominent mislabeling is in the industry.  Leafreport.com, a peer-reviewed watchdog website for the cannabidiol (CBD) industry, found that more than half of the 38 products it tested had illegal levels of delta-9 THC. In addition, only 32% had the advertised amount of delta-8. The rest were off by 10.7% to 102.7% from the label.

And Wayne State University, based in Michigan, reports that law enforcement agencies in Michigan have seized delta-8 products that were falsely labeled as CBD products.

Lev Spivak-Birndorf, Ph.D., chief science officer at PSI Labs, a Michigan-based cannabis testing lab, says the mislabeling of these products could be linked to the risks associated with producing delta-8, as byproducts can be left during the process of converting it from CBD or delta-9 THC.

For example, when labs extract cannabis to make other oils, it’s a more straightforward process, as there are already established and known solvents and methods, like butane or ethanol extraction, that labs can use to remove byproducts, Spivak-Birndorf says.

“But once you get into the process of converting CBD into delta-8, it’s called chemical synthesis,” he says. “You’re essentially taking one molecule and performing a chemical reaction that’s causing it to change into another molecule via that reaction.”

There are several standard operating procedures (SOPs) that can be used to extract delta-8; however, there are many “variables in terms of what can be left over in the product and how dangerous the substance is that labs use to catalyze that reaction and make it occur at a speed that’s acceptable for production,” he says.

PSI Labs has not yet conducted extensive research into what type of contaminants can be found in delta-8 products due to costs; however, the laboratory has brought in off-the-shelf delta-8 products from places like vape shops and gas stations for testing, and they’ve discovered discrepancies in the products.

“We often find that some of [the products] are very pure delta-8, but still contain traces of delta-9 that are technically above the legal 0.3% THC limit,” he says. “It’s just a mixed bag, and that’s what I think is so risky about it, is that it’s very uncontrolled in terms of these processes, where one product could be pretty genuine to its label, but another one might be very different.”

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

Allison Justice, Ph.D., CEO of The Hemp Mine, previously told Hemp Grower that in the delta-8 extraction process, the final distillate ends up being 60% to 70% delta-8 and roughly 2% to 6% delta-9. Suppose a company wants to make a compliant product with the U.S. Department of Agriculture’s (USDA’s) final rule on hemp. In that case, they will then run the distillate through extensive chromatography to remove the delta-9 or dilute it down to ensure it’s under the 0.3% THC limit, she said.

But Spivak-Birndorf says PSI Labs has found off-the-shelf delta-8 products that contain 20% delta-9, as well as a significant amount of CBD, meaning that whatever reaction pathway they chose, they didn’t finish it and left it “half-cooked,” he says.

“This raises lots of questions about what residual other byproducts might be in [the delta-8 products] that are sort of not familiar cannabinoids, but maybe harmful substances, like heavy metals, which can often be used in these processes,” he says.

Spivak-Birndorf says PSI Labs has come across many delta-8 vapes over the 0.3% THC limit; however, he thinks the real risk with mislabeling is with edibles. 

“Once you eat [the edible], that’s how much you eat, and you really can’t go back from there. So, that’s where testing is absolutely critical,” he says. “You really need to test things in a fashionable manner to make sure that there’s nothing wrong with your process. Other packaged and ready-made goods go through many good manufacturing practices (GMPs) and Food and Drug Administration (FDA) guidelines before they get to the shelf. In the cannabis industry, a lot of that stuff is non-existent or just catching up.”

Spivak-Birndorf says there is a need for third-party, end-product testing on a batch basis to ensure the products are correctly dosed before hitting shelves because there are not many regulated delta-8 testing and measurement practices in place.

“All of this is an important part of a good manufacturing practice of what goes into all the packaged goods we consume,” he says. “And so really, it should be implemented for delta-8 or delta-9, just like anything else.”

“There’s no reason to limit ourselves in terms of the cannabinoid toolbox,” he adds. “Whether it’s naturally occurring, semi-synthetic or even synthetic, it’s very important to know exactly what we’re dealing with and what quantities we’re dealing with if we want to avoid unknown adverse reactions and keep people as safe and healthy as possible.”

Minors the Main Victims

According to the Wayne State University report, in a nearby state, there were two reported cases of severe adverse reactions to delta-8 in children who ingested their father’s edibles purchased at a vape shop.

The report says that because delta-8 products are packaged in similar forms of CBD, teens and young children have a higher risk of using the compound accidentally. “THC use in children can cause low blood pressure, difficulty breathing, severe sedation, coma, and psychological effects. Long-term effects in children are not known,” the report says.

According to the National Capital Poison Center, because delta-8 products are largely unregulated, “the packaging may not be child-resistant and may contain cartoon-like images or other features that may be appealing to children.”

On its website, the National Capital Poison Center offers this anecdote: “A 3-year-old boy was brought to an Emergency Department after eating an unknown amount of delta-8 THC gummies belonging to his mother. The gummies were packaged in a container with a twist-off top, and the boy was able to open the container by himself. The child experienced vomiting but was eventually released from the hospital. His mother was cited for child abuse and neglect.”

Market Regulation Needed

Spivak-Birndorf says there is an increased need for regulation, as it is difficult to trace where these unsafe delta-8 products are coming from.

“While some of these companies have an online presence and show current testing and are actually responsible, for every one of those, there’s probably, and I would guess, numerous [companies] that are flying by night and just not checking their work,” he says. “Or they’re not concerned about quality control checks for their product, which they should have. So, definitely without that regulatory push to do all that stuff, it’s unrealistic to think that [everyone] is just going to take that upon themselves.”

As previously reported by Hemp Grower, Michigan has recently joined numerous other states in regulating delta-8, as Gov. Gretchen Whitmer signed legislation into law July 13, prohibiting businesses from selling delta-8 products without proper licensing from the Michigan Marijuana Regulatory Agency, and the products must be tracked and tested like any other cannabis product. 

Additionally, “the new law also bars businesses without state cannabis licenses from producing and selling any other potentially intoxicating cannabis compounds,” Hemp Grower previously reported.

And in late April, Hemp Grower reported that Washington’s Liquor and Cannabis Board (LCB) issued a policy statement, stating that “Delta-8 THC, as well as derivatives, extracts, cannabinoids, isomers, and CBD isolate from hemp or other sources that are genetically or chemically altered into compounds may not be produced or processed in LCB licensed facilities, and may not be sold in licensed marijuana retail stores.”

However, this does not necessarily mean delta-8 is outright banned in the state, as the LCB’s notice “was only an interpretation of the law as it relates to the legal cannabis market,” Hemp Grower reported.

Washington and Michigan are just two of nearly 20 states that have already regulated the cannabinoid. According to Hemp Grower, 15 states have issued bans on delta-8, while six additional states have pending legislation to regulate the cannabinoid and related THC isomers. 

Miller says the U.S. Hemp Roundtable has been working with states on developing laws that regulate delta-8 under the cannabis market because of its psychoactive properties. So far, Michigan, Oregon and New York have passed similar laws.

“I would very much hesitate buying a delta-8 product” in the current market, Miller says. “I would only buy things available in a dispensary that have been proven to undergo the same type of testing [as regulated cannabis].”

Not Just Delta-8

Delta-8 isn’t the only cannabinoid responsible for an uptick in poison center calls this year.

As of June 30, the American Association of Poison Control Centers (AAPCC) reported that poison control centers across the country had managed 2,158 cases in 2021 related to CBD. This is nearly on par with the 2,226 calls placed the entire year in 2020.

For perspective, in June 2020, poison control centers handled 181 cases related to CBD; in June 2021, that number jumped to 423.

The AAPCC offers this explanation on its website for the increase in calls: “…[S]ome products contain more CBD than what is on the label, more THC than labeled, or other chemical compounds/drug ingredients that are not listed at all. Consumers have no way of knowing whether the product is contaminated with other chemicals and drugs or labeled correctly.”

© Chart Courtesy of The American Association of Poison Control Centers

Miller points out that CBD is “a safe compound, and study after study have demonstrated its safety.” But without clear regulations or even guidance on how to produce CBD products, it’s possible the products contributing to poison control center cases don’t comply with GMP safety standards, Miller says.

“The challenge is that we’re in an unregulated marketplace,” he says. “These kinds of problems are hopefully going to spur Congressional action that will pass bills to develop a regulatory structure.”

Miller adds that the Hemp Access and Consumer Safety Act moving through the U.S. Senate would require the U.S. Food and Drug Administration to develop a regulatory pathway for CBD to be used in food, beverages and dietary supplements.

You can reach your local poison control center by calling the Poison Help hotline: 1-800-222-1222. To save the number in your mobile phone, text POISON to 797979.

 

Clever Leaves and Biopharmaceutical Research Company to Partner for Landmark Cannabis Research Study in Collaboration With University of California, Davis

by

The explosive, unregulated growth of delta-8 tetrahydrocannabinol (THC) is coming with a dangerous consequence: Poison control centers across the country are reporting a rise in calls from those who have ingested the cannabinoid. 

At least four states have issued public warnings regarding the cannabinoid, according to local news reports: Michigan, West Virginia, Virginia and North Carolina.

So far this year, as of July, the North Carolina Poison Control Center reported 157 cases related to delta-8, according to the Winston-Salem Journal. Virginia is reporting “dozens” of calls this year.

The rise in calls can be attributed to a number of factors, from the market’s lack of standards to delta-8’s accessibility to minors.

But perhaps the most concerning cause for an increase in delta-8 poison center calls is due to mislabeling–in some cases, consumers hoping to buy these products may be purchasing unregulated, illegal cannabis without knowing.

“This is part and parcel for what happens when you have an unregulated market,” says Jonathan Miller, general counsel for U.S. Hemp Roundtable. 

Mislabeling Plays a Role

A recently published report shines a light on just how prominent mislabeling is in the industry.  Leafreport.com, a peer-reviewed watchdog website for the cannabidiol (CBD) industry, found that more than half of the 38 products it tested had illegal levels of delta-9 THC. In addition, only 32% had the advertised amount of delta-8. The rest were off by 10.7% to 102.7% from the label.

And Wayne State University, based in Michigan, reports that law enforcement agencies in Michigan have seized delta-8 products that were falsely labeled as CBD products.

Lev Spivak-Birndorf, Ph.D., chief science officer at PSI Labs, a Michigan-based cannabis testing lab, says the mislabeling of these products could be linked to the risks associated with producing delta-8, as byproducts can be left during the process of converting it from CBD or delta-9 THC.

For example, when labs extract cannabis to make other oils, it’s a more straightforward process, as there are already established and known solvents and methods, like butane or ethanol extraction, that labs can use to remove byproducts, Spivak-Birndorf says.

“But once you get into the process of converting CBD into delta-8, it’s called chemical synthesis,” he says. “You’re essentially taking one molecule and performing a chemical reaction that’s causing it to change into another molecule via that reaction.”

There are several standard operating procedures (SOPs) that can be used to extract delta-8; however, there are many “variables in terms of what can be left over in the product and how dangerous the substance is that labs use to catalyze that reaction and make it occur at a speed that’s acceptable for production,” he says.

PSI Labs has not yet conducted extensive research into what type of contaminants can be found in delta-8 products due to costs; however, the laboratory has brought in off-the-shelf delta-8 products from places like vape shops and gas stations for testing, and they’ve discovered discrepancies in the products.

“We often find that some of [the products] are very pure delta-8, but still contain traces of delta-9 that are technically above the legal 0.3% THC limit,” he says. “It’s just a mixed bag, and that’s what I think is so risky about it, is that it’s very uncontrolled in terms of these processes, where one product could be pretty genuine to its label, but another one might be very different.”

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

Allison Justice, Ph.D., CEO of The Hemp Mine, previously told Hemp Grower that in the delta-8 extraction process, the final distillate ends up being 60% to 70% delta-8 and roughly 2% to 6% delta-9. Suppose a company wants to make a compliant product with the U.S. Department of Agriculture’s (USDA’s) final rule on hemp. In that case, they will then run the distillate through extensive chromatography to remove the delta-9 or dilute it down to ensure it’s under the 0.3% THC limit, she said.

But Spivak-Birndorf says PSI Labs has found off-the-shelf delta-8 products that contain 20% delta-9, as well as a significant amount of CBD, meaning that whatever reaction pathway they chose, they didn’t finish it and left it “half-cooked,” he says.

“This raises lots of questions about what residual other byproducts might be in [the delta-8 products] that are sort of not familiar cannabinoids, but maybe harmful substances, like heavy metals, which can often be used in these processes,” he says.

Spivak-Birndorf says PSI Labs has come across many delta-8 vapes over the 0.3% THC limit; however, he thinks the real risk with mislabeling is with edibles. 

“Once you eat [the edible], that’s how much you eat, and you really can’t go back from there. So, that’s where testing is absolutely critical,” he says. “You really need to test things in a fashionable manner to make sure that there’s nothing wrong with your process. Other packaged and ready-made goods go through many good manufacturing practices (GMPs) and Food and Drug Administration (FDA) guidelines before they get to the shelf. In the cannabis industry, a lot of that stuff is non-existent or just catching up.”

Spivak-Birndorf says there is a need for third-party, end-product testing on a batch basis to ensure the products are correctly dosed before hitting shelves because there are not many regulated delta-8 testing and measurement practices in place.

“All of this is an important part of a good manufacturing practice of what goes into all the packaged goods we consume,” he says. “And so really, it should be implemented for delta-8 or delta-9, just like anything else.”

“There’s no reason to limit ourselves in terms of the cannabinoid toolbox,” he adds. “Whether it’s naturally occurring, semi-synthetic or even synthetic, it’s very important to know exactly what we’re dealing with and what quantities we’re dealing with if we want to avoid unknown adverse reactions and keep people as safe and healthy as possible.”

Minors the Main Victims

According to the Wayne State University report, in a nearby state, there were two reported cases of severe adverse reactions to delta-8 in children who ingested their father’s edibles purchased at a vape shop.

The report says that because delta-8 products are packaged in similar forms of CBD, teens and young children have a higher risk of using the compound accidentally. “THC use in children can cause low blood pressure, difficulty breathing, severe sedation, coma, and psychological effects. Long-term effects in children are not known,” the report says.

According to the National Capital Poison Center, because delta-8 products are largely unregulated, “the packaging may not be child-resistant and may contain cartoon-like images or other features that may be appealing to children.”

On its website, the National Capital Poison Center offers this anecdote: “A 3-year-old boy was brought to an Emergency Department after eating an unknown amount of delta-8 THC gummies belonging to his mother. The gummies were packaged in a container with a twist-off top, and the boy was able to open the container by himself. The child experienced vomiting but was eventually released from the hospital. His mother was cited for child abuse and neglect.”

Market Regulation Needed

Spivak-Birndorf says there is an increased need for regulation, as it is difficult to trace where these unsafe delta-8 products are coming from.

“While some of these companies have an online presence and show current testing and are actually responsible, for every one of those, there’s probably, and I would guess, numerous [companies] that are flying by night and just not checking their work,” he says. “Or they’re not concerned about quality control checks for their product, which they should have. So, definitely without that regulatory push to do all that stuff, it’s unrealistic to think that [everyone] is just going to take that upon themselves.”

As previously reported by Hemp Grower, Michigan has recently joined numerous other states in regulating delta-8, as Gov. Gretchen Whitmer signed legislation into law July 13, prohibiting businesses from selling delta-8 products without proper licensing from the Michigan Marijuana Regulatory Agency, and the products must be tracked and tested like any other cannabis product. 

Additionally, “the new law also bars businesses without state cannabis licenses from producing and selling any other potentially intoxicating cannabis compounds,” Hemp Grower previously reported.

And in late April, Hemp Grower reported that Washington’s Liquor and Cannabis Board (LCB) issued a policy statement, stating that “Delta-8 THC, as well as derivatives, extracts, cannabinoids, isomers, and CBD isolate from hemp or other sources that are genetically or chemically altered into compounds may not be produced or processed in LCB licensed facilities, and may not be sold in licensed marijuana retail stores.”

However, this does not necessarily mean delta-8 is outright banned in the state, as the LCB’s notice “was only an interpretation of the law as it relates to the legal cannabis market,” Hemp Grower reported.

Washington and Michigan are just two of nearly 20 states that have already regulated the cannabinoid. According to Hemp Grower, 15 states have issued bans on delta-8, while six additional states have pending legislation to regulate the cannabinoid and related THC isomers. 

Miller says the U.S. Hemp Roundtable has been working with states on developing laws that regulate delta-8 under the cannabis market because of its psychoactive properties. So far, Michigan, Oregon and New York have passed similar laws.

“I would very much hesitate buying a delta-8 product” in the current market, Miller says. “I would only buy things available in a dispensary that have been proven to undergo the same type of testing [as regulated cannabis].”

Not Just Delta-8

Delta-8 isn’t the only cannabinoid responsible for an uptick in poison center calls this year.

As of June 30, the American Association of Poison Control Centers (AAPCC) reported that poison control centers across the country had managed 2,158 cases in 2021 related to CBD. This is nearly on par with the 2,226 calls placed the entire year in 2020.

For perspective, in June 2020, poison control centers handled 181 cases related to CBD; in June 2021, that number jumped to 423.

The AAPCC offers this explanation on its website for the increase in calls: “…[S]ome products contain more CBD than what is on the label, more THC than labeled, or other chemical compounds/drug ingredients that are not listed at all. Consumers have no way of knowing whether the product is contaminated with other chemicals and drugs or labeled correctly.”

© Chart Courtesy of The American Association of Poison Control Centers

Miller points out that CBD is “a safe compound, and study after study have demonstrated its safety.” But without clear regulations or even guidance on how to produce CBD products, it’s possible the products contributing to poison control center cases don’t comply with GMP safety standards, Miller says.

“The challenge is that we’re in an unregulated marketplace,” he says. “These kinds of problems are hopefully going to spur Congressional action that will pass bills to develop a regulatory structure.”

Miller adds that the Hemp Access and Consumer Safety Act moving through the U.S. Senate would require the U.S. Food and Drug Administration to develop a regulatory pathway for CBD to be used in food, beverages and dietary supplements.

You can reach your local poison control center by calling the Poison Help hotline: 1-800-222-1222. To save the number in your mobile phone, text POISON to 797979.

 

Flora Growth Applauds Update to Colombian Cannabis Regulations That Substantially Increases Revenue Potential; Executes International Cannabis Supply Agreement

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LAS VEGAS, NV JULY 22, 2021 – Cannabis Conference, produced by parent company GIE Media Inc. and industry-leading Cannabis Business Times, Cannabis Dispensary, and Hemp Grower magazines, announces today Sherbinskis’ Founder and Chief Creative Officer Mario Guzman as the keynote speaker on Day 1 of its annual event, to take place Aug. 24-26, 2021, at Paris Las Vegas Hotel & Casino.

In a Fireside Chat led by Cannabis Conference Digital Editor Eric Sandy, Guzman will share his dynamic cannabis story—from his humble beginnings as an entrepreneur working from his garage to becoming a world-famous tastemaker and curator of high-quality genetics. He will discuss lessons learned along the way, from scaling his business in California to finding multi-state and retail partners, as well as recognizing the importance of diversity and inclusion in his business model. Guzman will also share emerging trends in cannabis genetics, medical research, ‘seed-to-scale’ cultivation and much more.   

The keynote will take place on Tuesday, Aug. 24 from 2:10 p.m. – 3:10 p.m. PT.

Guzman has been a key player in the medical cannabis movement for more than 20 years, breeding and cultivating internationally renowned genetics like Pink Panties, Sunset Sherbert and the Gelato line. Guzman, who recently joined the Board of Directors for the Minority Cannabis Business Association, says his desire to serve stems from his motivation to ensure that the next generation of minority cannabis business professionals have the assistance and guidance from other minorities that he wasn’t fortunate enough to have.

“It’s exciting to participate in an event that’s curated for us—people in plant-touching operations. As cultivators and retailers of cannabis, we uniquely understand the labor of love it is to grow this plant, and how important it is to work through industry challenges with the utmost integrity and the consumer top of mind,” Guzman said. “I’m looking forward to sharing stories from my own journey these past two decades, as well as connecting with others pushing the industry forward and becoming vehicles for change for communities of color.” 

“Mario has the respect of his peers in the industry and has achieved such strong brand recognition—something every plant-touching cannabis business strives for. We are thrilled to have him as such a big part of the Cannabis Conference,” said Cannabis Conference Editorial Director Noelle Skodzinski. “He is a trailblazer who has not only persisted but thrived over two turbulent decades in the cannabis industry, and long-time cannabis businesses as well as newcomers to the industry have much to learn from his experiences and successes.”

More information about Cannabis Conference, including sessions, speakers, exhibitors and FAQs, can be found at www.CannabisConference.com. Rates will increase July 31, 2021. Click hereto review pricing and to register.

 

About Cannabis Conference

Cannabis Conference 2021, presented by the award-winning Cannabis Business Times, Cannabis Dispensary, and Hemp Grower media brands, is the leading educational provider for plant-touching businesses in the legal cannabis and hemp markets. The three-day event will take place at Paris Las Vegas Hotel & Casino in Las Vegas, Nev., on Aug. 24-26, 2021. The Cannabis Conference exhibition hall will feature 170+ industry-leading technologies, solutions and services for the professional cannabis cultivator and retail businesses. For more information, visit www.CannabisConference.com.

About GIE Media

GIE Media was founded in 1980 and has grown over 41 years into a leading marketing and communications business-to-business media company serving 17 industries—including the horticulture industry through its Horticulture Group (Greenhouse Management, Produce Grower, Nursery Management, Garden Center, Cannabis Business Times, Cannabis Dispensary and Hemp Grower). The company employs nearly 100 editors, publishers, sales representatives, marketers and other professionals. For more information, visit www.GIEMedia.com. 

 

Poison Control Centers Nationally Report Rise in Calls Amid Delta-8 Craze

by

The explosive, unregulated growth of delta-8 tetrahydrocannabinol (THC) is coming with a dangerous consequence: Poison control centers across the country are reporting a rise in calls from those who have ingested the cannabinoid. 

At least four states have issued public warnings regarding the cannabinoid, according to local news reports: Michigan, West Virginia, Virginia and North Carolina.

So far this year, as of July, the North Carolina Poison Control Center reported 157 cases related to delta-8, according to the Winston-Salem Journal. Virginia is reporting “dozens” of calls this year.

The rise in calls can be attributed to a number of factors, from the market’s lack of standards to delta-8’s accessibility to minors.

But perhaps the most concerning cause for an increase in delta-8 poison center calls is due to mislabeling–in some cases, consumers hoping to buy these products may be purchasing unregulated, illegal cannabis without knowing.

“This is part and parcel for what happens when you have an unregulated market,” says Jonathan Miller, general counsel for U.S. Hemp Roundtable. 

Mislabeling Plays a Role

A recently published report shines a light on just how prominent mislabeling is in the industry.  Leafreport.com, a peer-reviewed watchdog website for the cannabidiol (CBD) industry, found that more than half of the 38 products it tested had illegal levels of delta-9 THC. In addition, only 32% had the advertised amount of delta-8. The rest were off by 10.7% to 102.7% from the label.

And Wayne State University, based in Michigan, reports that law enforcement agencies in Michigan have seized delta-8 products that were falsely labeled as CBD products.

Lev Spivak-Birndorf, Ph.D., chief science officer at PSI Labs, a Michigan-based cannabis testing lab, says the mislabeling of these products could be linked to the risks associated with producing delta-8, as byproducts can be left during the process of converting it from CBD or delta-9 THC.

For example, when labs extract cannabis to make other oils, it’s a more straightforward process, as there are already established and known solvents and methods, like butane or ethanol extraction, that labs can use to remove byproducts, Spivak-Birndorf says.

“But once you get into the process of converting CBD into delta-8, it’s called chemical synthesis,” he says. “You’re essentially taking one molecule and performing a chemical reaction that’s causing it to change into another molecule via that reaction.”

There are several standard operating procedures (SOPs) that can be used to extract delta-8; however, there are many “variables in terms of what can be left over in the product and how dangerous the substance is that labs use to catalyze that reaction and make it occur at a speed that’s acceptable for production,” he says.

PSI Labs has not yet conducted extensive research into what type of contaminants can be found in delta-8 products due to costs; however, the laboratory has brought in off-the-shelf delta-8 products from places like vape shops and gas stations for testing, and they’ve discovered discrepancies in the products.

“We often find that some of [the products] are very pure delta-8, but still contain traces of delta-9 that are technically above the legal 0.3% THC limit,” he says. “It’s just a mixed bag, and that’s what I think is so risky about it, is that it’s very uncontrolled in terms of these processes, where one product could be pretty genuine to its label, but another one might be very different.”

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

Allison Justice, Ph.D., CEO of The Hemp Mine, previously told Hemp Grower that in the delta-8 extraction process, the final distillate ends up being 60% to 70% delta-8 and roughly 2% to 6% delta-9. Suppose a company wants to make a compliant product with the U.S. Department of Agriculture’s (USDA’s) final rule on hemp. In that case, they will then run the distillate through extensive chromatography to remove the delta-9 or dilute it down to ensure it’s under the 0.3% THC limit, she said.

But Spivak-Birndorf says PSI Labs has found off-the-shelf delta-8 products that contain 20% delta-9, as well as a significant amount of CBD, meaning that whatever reaction pathway they chose, they didn’t finish it and left it “half-cooked,” he says.

“This raises lots of questions about what residual other byproducts might be in [the delta-8 products] that are sort of not familiar cannabinoids, but maybe harmful substances, like heavy metals, which can often be used in these processes,” he says.

Spivak-Birndorf says PSI Labs has come across many delta-8 vapes over the 0.3% THC limit; however, he thinks the real risk with mislabeling is with edibles. 

“Once you eat [the edible], that’s how much you eat, and you really can’t go back from there. So, that’s where testing is absolutely critical,” he says. “You really need to test things in a fashionable manner to make sure that there’s nothing wrong with your process. Other packaged and ready-made goods go through many good manufacturing practices (GMPs) and Food and Drug Administration (FDA) guidelines before they get to the shelf. In the cannabis industry, a lot of that stuff is non-existent or just catching up.”

Spivak-Birndorf says there is a need for third-party, end-product testing on a batch basis to ensure the products are correctly dosed before hitting shelves because there are not many regulated delta-8 testing and measurement practices in place.

“All of this is an important part of a good manufacturing practice of what goes into all the packaged goods we consume,” he says. “And so really, it should be implemented for delta-8 or delta-9, just like anything else.”

“There’s no reason to limit ourselves in terms of the cannabinoid toolbox,” he adds. “Whether it’s naturally occurring, semi-synthetic or even synthetic, it’s very important to know exactly what we’re dealing with and what quantities we’re dealing with if we want to avoid unknown adverse reactions and keep people as safe and healthy as possible.”

Minors the Main Victims

According to the Wayne State University report, in a nearby state, there were two reported cases of severe adverse reactions to delta-8 in children who ingested their father’s edibles purchased at a vape shop.

The report says that because delta-8 products are packaged in similar forms of CBD, teens and young children have a higher risk of using the compound accidentally. “THC use in children can cause low blood pressure, difficulty breathing, severe sedation, coma, and psychological effects. Long-term effects in children are not known,” the report says.

According to the National Capital Poison Center, because delta-8 products are largely unregulated, “the packaging may not be child-resistant and may contain cartoon-like images or other features that may be appealing to children.”

On its website, the National Capital Poison Center offers this anecdote: “A 3-year-old boy was brought to an Emergency Department after eating an unknown amount of delta-8 THC gummies belonging to his mother. The gummies were packaged in a container with a twist-off top, and the boy was able to open the container by himself. The child experienced vomiting but was eventually released from the hospital. His mother was cited for child abuse and neglect.”

Market Regulation Needed

Spivak-Birndorf says there is an increased need for regulation, as it is difficult to trace where these unsafe delta-8 products are coming from.

“While some of these companies have an online presence and show current testing and are actually responsible, for every one of those, there’s probably, and I would guess, numerous [companies] that are flying by night and just not checking their work,” he says. “Or they’re not concerned about quality control checks for their product, which they should have. So, definitely without that regulatory push to do all that stuff, it’s unrealistic to think that [everyone] is just going to take that upon themselves.”

As previously reported by Hemp Grower, Michigan has recently joined numerous other states in regulating delta-8, as Gov. Gretchen Whitmer signed legislation into law July 13, prohibiting businesses from selling delta-8 products without proper licensing from the Michigan Marijuana Regulatory Agency, and the products must be tracked and tested like any other cannabis product. 

Additionally, “the new law also bars businesses without state cannabis licenses from producing and selling any other potentially intoxicating cannabis compounds,” Hemp Grower previously reported.

And in late April, Hemp Grower reported that Washington’s Liquor and Cannabis Board (LCB) issued a policy statement, stating that “Delta-8 THC, as well as derivatives, extracts, cannabinoids, isomers, and CBD isolate from hemp or other sources that are genetically or chemically altered into compounds may not be produced or processed in LCB licensed facilities, and may not be sold in licensed marijuana retail stores.”

However, this does not necessarily mean delta-8 is outright banned in the state, as the LCB’s notice “was only an interpretation of the law as it relates to the legal cannabis market,” Hemp Grower reported.

Washington and Michigan are just two of nearly 20 states that have already regulated the cannabinoid. According to Hemp Grower, 15 states have issued bans on delta-8, while six additional states have pending legislation to regulate the cannabinoid and related THC isomers. 

Miller says the U.S. Hemp Roundtable has been working with states on developing laws that regulate delta-8 under the cannabis market because of its psychoactive properties. So far, Michigan, Oregon and New York have passed similar laws.

“I would very much hesitate buying a delta-8 product” in the current market, Miller says. “I would only buy things available in a dispensary that have been proven to undergo the same type of testing [as regulated cannabis].”

Not Just Delta-8

Delta-8 isn’t the only cannabinoid responsible for an uptick in poison center calls this year.

As of June 30, the American Association of Poison Control Centers (AAPCC) reported that poison control centers across the country had managed 2,158 cases in 2021 related to CBD. This is nearly on par with the 2,226 calls placed the entire year in 2020.

For perspective, in June 2020, poison control centers handled 181 cases related to CBD; in June 2021, that number jumped to 423.

The AAPCC offers this explanation on its website for the increase in calls: “…[S]ome products contain more CBD than what is on the label, more THC than labeled, or other chemical compounds/drug ingredients that are not listed at all. Consumers have no way of knowing whether the product is contaminated with other chemicals and drugs or labeled correctly.”

© Chart Courtesy of The American Association of Poison Control Centers

Miller points out that CBD is “a safe compound, and study after study have demonstrated its safety.” But without clear regulations or even guidance on how to produce CBD products, it’s possible the products contributing to poison control center cases don’t comply with GMP safety standards, Miller says.

“The challenge is that we’re in an unregulated marketplace,” he says. “These kinds of problems are hopefully going to spur Congressional action that will pass bills to develop a regulatory structure.”

Miller adds that the Hemp Access and Consumer Safety Act moving through the U.S. Senate would require the U.S. Food and Drug Administration to develop a regulatory pathway for CBD to be used in food, beverages and dietary supplements.

You can reach your local poison control center by calling the Poison Help hotline: 1-800-222-1222. To save the number in your mobile phone, text POISON to 797979.

 

Georgia Awards Six Medical Cannabis Business Licenses

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LAS VEGAS, NV JULY 22, 2021 – Cannabis Conference, produced by parent company GIE Media Inc. and industry-leading Cannabis Business Times, Cannabis Dispensary, and Hemp Grower magazines, announces today Sherbinskis’ Founder and Chief Creative Officer Mario Guzman as the keynote speaker on Day 1 of its annual event, to take place Aug. 24-26, 2021, at Paris Las Vegas Hotel & Casino.

In a Fireside Chat led by Cannabis Conference Digital Editor Eric Sandy, Guzman will share his dynamic cannabis story—from his humble beginnings as an entrepreneur working from his garage to becoming a world-famous tastemaker and curator of high-quality genetics. He will discuss lessons learned along the way, from scaling his business in California to finding multi-state and retail partners, as well as recognizing the importance of diversity and inclusion in his business model. Guzman will also share emerging trends in cannabis genetics, medical research, ‘seed-to-scale’ cultivation and much more.   

The keynote will take place on Tuesday, Aug. 24 from 2:10 p.m. – 3:10 p.m. PT.

Guzman has been a key player in the medical cannabis movement for more than 20 years, breeding and cultivating internationally renowned genetics like Pink Panties, Sunset Sherbert and the Gelato line. Guzman, who recently joined the Board of Directors for the Minority Cannabis Business Association, says his desire to serve stems from his motivation to ensure that the next generation of minority cannabis business professionals have the assistance and guidance from other minorities that he wasn’t fortunate enough to have.

“It’s exciting to participate in an event that’s curated for us—people in plant-touching operations. As cultivators and retailers of cannabis, we uniquely understand the labor of love it is to grow this plant, and how important it is to work through industry challenges with the utmost integrity and the consumer top of mind,” Guzman said. “I’m looking forward to sharing stories from my own journey these past two decades, as well as connecting with others pushing the industry forward and becoming vehicles for change for communities of color.” 

“Mario has the respect of his peers in the industry and has achieved such strong brand recognition—something every plant-touching cannabis business strives for. We are thrilled to have him as such a big part of the Cannabis Conference,” said Cannabis Conference Editorial Director Noelle Skodzinski. “He is a trailblazer who has not only persisted but thrived over two turbulent decades in the cannabis industry, and long-time cannabis businesses as well as newcomers to the industry have much to learn from his experiences and successes.”

More information about Cannabis Conference, including sessions, speakers, exhibitors and FAQs, can be found at www.CannabisConference.com. Rates will increase July 31, 2021. Click hereto review pricing and to register.

 

About Cannabis Conference

Cannabis Conference 2021, presented by the award-winning Cannabis Business Times, Cannabis Dispensary, and Hemp Grower media brands, is the leading educational provider for plant-touching businesses in the legal cannabis and hemp markets. The three-day event will take place at Paris Las Vegas Hotel & Casino in Las Vegas, Nev., on Aug. 24-26, 2021. The Cannabis Conference exhibition hall will feature 170+ industry-leading technologies, solutions and services for the professional cannabis cultivator and retail businesses. For more information, visit www.CannabisConference.com.

About GIE Media

GIE Media was founded in 1980 and has grown over 41 years into a leading marketing and communications business-to-business media company serving 17 industries—including the horticulture industry through its Horticulture Group (Greenhouse Management, Produce Grower, Nursery Management, Garden Center, Cannabis Business Times, Cannabis Dispensary and Hemp Grower). The company employs nearly 100 editors, publishers, sales representatives, marketers and other professionals. For more information, visit www.GIEMedia.com. 

 

Allied Corp. Commends Colombian Authorities for Approving the Export of Dried Cannabis Flower From Colombia

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  • Colombian legislative update now allows for the sale and export of raw cannabis materials, namely dried flower, to international markets
  • New regulations position Colombia’s cultivators as leaders to supply the global cannabis market; dried cannabis flower continues to account for an estimated 50% of demand in major international markets, including U.S., Germany and Australia
  • New regulations allow for the manufacturing, sale and export of ingestible cannabinoid products in Colombia, increasing near-term revenue potential for Flora’s Kasa Wholefoods division
  • Flora capitalizes on law change, signing a supply agreement with an international distributor based in South Africa to provide raw and finished medical cannabis products
  • Update allows for the promotion and advertising of cannabis brands and products in Colombia, increasing access to the growing Colombian cannabis market

TORONTO, July 26, 2021 – PRESS RELEASE – Flora Growth Corp., a leading all-outdoor cultivator and manufacturer of global cannabis products and brands, is pleased to announce that following an extensive consultation process, Colombia President Ivan Duque Marquez has accepted and signed into effect the revisions related to the existing Colombian cannabis laws. The reformed legislation is aimed at improving access to cannabis products for Colombians and positions Colombia as the leader to supply the global cannabis market.

Colombian Cannabis Cultivation

Located near the equator, select regions of Colombia have the ideal climate for the cultivation of cannabis 365 days a year. The country also boasts one of the world’s largest cut-flower industries, resulting in a labor force with substantial agricultural experience that can produce a high-quality cannabis product at low-cost. This combination of geographic factors and legislative updates positions Colombia as a major player in the international cannabis market due to its low-cost structure.

Flora’s Colombian cultivation facility, Cosechemos, has maximized this cultivation potential by achieving a production cost below $0.06 per gram (or roughly $27 per pound) of dried flower. This represents a 60% lower production cost than its closest competitor. With more than 12.5 hours of natural sunlight, natural water springs onsite and 247-plus acres of licensed all-outdoor organic cultivation, Flora Growth is well-positioned to benefit from this legislative update across a number of verticals.

Legislative Update Signifies Increased Revenue Potential

The new regulations are expected to allow Flora to increase near-term and long-term revenue, optimize its global supply chain of premium brands and products, and maximize economics both domestically and abroad. The following points highlight the impact of this legislative change:

  1. Currently in the global cannabis market, dried flower accounts for more than 50% of the sales demand. Through this legislative update, Colombian cultivators like Flora, have gained access to this massive segment of the global market that was previously inaccessible. With a production cost that is substantially lower than its North American peers, Flora is able to market a high-quality product at below North American prices.
  2. By allowing the manufacturing, sale and export of cannabinoid ingestible products, near-term revenue opportunities are created. Flora’s food and beverage division, Kasa Wholefoods, anticipates amplified revenue growth and intends on leveraging existing relationships to distribute CBD versions of its portfolio, including the recently announced U.S.$10M distribution agreement with Tropi, Colombia’s largest food and beverage distributor with 130,000 points of distribution across the country.
  3. By removing marketing restrictions on cannabis products locally, Flora is expected to be able to drive increased awareness across its portfolio of products and additional sales through its 1,500-plus points of distribution within Colombia.
  4. By permitting the sale of cannabinoid medical products through drugstores as “custom formulas,” access to cannabis products is substantially increased within the domestic Colombian market. Custom formulas are pharmaceutical products prescribed and prepared by pharmacists to meet the unique needs of a patient and are intended to complement medical prescriptions. This change favors Flora Lab, which holds licenses to produce custom formulas and has existing relationships with drugstore chains throughout Colombia.

“We would like to thank the Colombian government and all of the parties involved with passing this legislation. As we quickly move to ramp up production at Cosechemos, we believe that Colombia will become a global player in the regulated cannabis market. We believe this will result in an increased positive economic impact to our community, while also benefiting Flora and its shareholders,” Flora President and CEO Luis Merchan said. “We’re also very pleased to now be able to bring new and existing wellness products to market. We have a loyal and passionate following and are very eager to meet the demand that we’ve been receiving but haven’t been able to deliver on previously because of the regulations.”

Flora Targets International Cannabis Markets

As an immediate impact of this law change, Flora has signed a letter of intent with an international distributor to supply its dried flower and derivatives. The company expects to ship its premium cannabis products upon completion of its first commercial harvest and obtaining necessary import licenses.

The cannabis products will be distributed by Kiricann, with operations in South Africa and distribution agreements in Germany and the European Union. Kiricann imports and distributes medical cannabidiol (CBD) while working with patients and wellness practitioners to educate about the authorization and use of medical cannabis and the benefits of CBD.

Flora anticipates signing additional supply agreements in the coming months as the global cannabis market begins to appreciate the low-cost, high-quality product that is cultivated within Colombia. This includes assessing the opportunity to ship its low-cost cannabis flower to pending acquisition Koch & Gsell, for use in its market-leading cannabis pre-roll brand (Heimat), which generated more than U.S.$7.6M in trailing 12-month revenue.

“This legislative update immediately accelerates Flora’s ability to generate revenue through the sale of our cannabis flower to international markets, as noted by our first international supply agreement. Having the ability to export our high-margin, high-quality cannabis flower—in addition to selling cannabinoid ingestible products—will meaningfully impact our growth and revenue generation,” Flora Chief Revenue Officer Jason Warnock said. “We are very excited to leverage our existing product portfolio and distribution channels to quickly deliver these new products to Colombians and our international partners.”

Arkansas Group Gathers Signatures to Place Adult-Use Cannabis Legalization on 2022 Ballot

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  • Colombian legislative update now allows for the sale and export of raw cannabis materials, namely dried flower, to international markets
  • New regulations position Colombia’s cultivators as leaders to supply the global cannabis market; dried cannabis flower continues to account for an estimated 50% of demand in major international markets, including U.S., Germany and Australia
  • New regulations allow for the manufacturing, sale and export of ingestible cannabinoid products in Colombia, increasing near-term revenue potential for Flora’s Kasa Wholefoods division
  • Flora capitalizes on law change, signing a supply agreement with an international distributor based in South Africa to provide raw and finished medical cannabis products
  • Update allows for the promotion and advertising of cannabis brands and products in Colombia, increasing access to the growing Colombian cannabis market

TORONTO, July 26, 2021 – PRESS RELEASE – Flora Growth Corp., a leading all-outdoor cultivator and manufacturer of global cannabis products and brands, is pleased to announce that following an extensive consultation process, Colombia President Ivan Duque Marquez has accepted and signed into effect the revisions related to the existing Colombian cannabis laws. The reformed legislation is aimed at improving access to cannabis products for Colombians and positions Colombia as the leader to supply the global cannabis market.

Colombian Cannabis Cultivation

Located near the equator, select regions of Colombia have the ideal climate for the cultivation of cannabis 365 days a year. The country also boasts one of the world’s largest cut-flower industries, resulting in a labor force with substantial agricultural experience that can produce a high-quality cannabis product at low-cost. This combination of geographic factors and legislative updates positions Colombia as a major player in the international cannabis market due to its low-cost structure.

Flora’s Colombian cultivation facility, Cosechemos, has maximized this cultivation potential by achieving a production cost below $0.06 per gram (or roughly $27 per pound) of dried flower. This represents a 60% lower production cost than its closest competitor. With more than 12.5 hours of natural sunlight, natural water springs onsite and 247-plus acres of licensed all-outdoor organic cultivation, Flora Growth is well-positioned to benefit from this legislative update across a number of verticals.

Legislative Update Signifies Increased Revenue Potential

The new regulations are expected to allow Flora to increase near-term and long-term revenue, optimize its global supply chain of premium brands and products, and maximize economics both domestically and abroad. The following points highlight the impact of this legislative change:

  1. Currently in the global cannabis market, dried flower accounts for more than 50% of the sales demand. Through this legislative update, Colombian cultivators like Flora, have gained access to this massive segment of the global market that was previously inaccessible. With a production cost that is substantially lower than its North American peers, Flora is able to market a high-quality product at below North American prices.
  2. By allowing the manufacturing, sale and export of cannabinoid ingestible products, near-term revenue opportunities are created. Flora’s food and beverage division, Kasa Wholefoods, anticipates amplified revenue growth and intends on leveraging existing relationships to distribute CBD versions of its portfolio, including the recently announced U.S.$10M distribution agreement with Tropi, Colombia’s largest food and beverage distributor with 130,000 points of distribution across the country.
  3. By removing marketing restrictions on cannabis products locally, Flora is expected to be able to drive increased awareness across its portfolio of products and additional sales through its 1,500-plus points of distribution within Colombia.
  4. By permitting the sale of cannabinoid medical products through drugstores as “custom formulas,” access to cannabis products is substantially increased within the domestic Colombian market. Custom formulas are pharmaceutical products prescribed and prepared by pharmacists to meet the unique needs of a patient and are intended to complement medical prescriptions. This change favors Flora Lab, which holds licenses to produce custom formulas and has existing relationships with drugstore chains throughout Colombia.

“We would like to thank the Colombian government and all of the parties involved with passing this legislation. As we quickly move to ramp up production at Cosechemos, we believe that Colombia will become a global player in the regulated cannabis market. We believe this will result in an increased positive economic impact to our community, while also benefiting Flora and its shareholders,” Flora President and CEO Luis Merchan said. “We’re also very pleased to now be able to bring new and existing wellness products to market. We have a loyal and passionate following and are very eager to meet the demand that we’ve been receiving but haven’t been able to deliver on previously because of the regulations.”

Flora Targets International Cannabis Markets

As an immediate impact of this law change, Flora has signed a letter of intent with an international distributor to supply its dried flower and derivatives. The company expects to ship its premium cannabis products upon completion of its first commercial harvest and obtaining necessary import licenses.

The cannabis products will be distributed by Kiricann, with operations in South Africa and distribution agreements in Germany and the European Union. Kiricann imports and distributes medical cannabidiol (CBD) while working with patients and wellness practitioners to educate about the authorization and use of medical cannabis and the benefits of CBD.

Flora anticipates signing additional supply agreements in the coming months as the global cannabis market begins to appreciate the low-cost, high-quality product that is cultivated within Colombia. This includes assessing the opportunity to ship its low-cost cannabis flower to pending acquisition Koch & Gsell, for use in its market-leading cannabis pre-roll brand (Heimat), which generated more than U.S.$7.6M in trailing 12-month revenue.

“This legislative update immediately accelerates Flora’s ability to generate revenue through the sale of our cannabis flower to international markets, as noted by our first international supply agreement. Having the ability to export our high-margin, high-quality cannabis flower—in addition to selling cannabinoid ingestible products—will meaningfully impact our growth and revenue generation,” Flora Chief Revenue Officer Jason Warnock said. “We are very excited to leverage our existing product portfolio and distribution channels to quickly deliver these new products to Colombians and our international partners.”

North Carolina Medical Cannabis Bill Clears Second Senate Committee

by

  • Colombian legislative update now allows for the sale and export of raw cannabis materials, namely dried flower, to international markets
  • New regulations position Colombia’s cultivators as leaders to supply the global cannabis market; dried cannabis flower continues to account for an estimated 50% of demand in major international markets, including U.S., Germany and Australia
  • New regulations allow for the manufacturing, sale and export of ingestible cannabinoid products in Colombia, increasing near-term revenue potential for Flora’s Kasa Wholefoods division
  • Flora capitalizes on law change, signing a supply agreement with an international distributor based in South Africa to provide raw and finished medical cannabis products
  • Update allows for the promotion and advertising of cannabis brands and products in Colombia, increasing access to the growing Colombian cannabis market

TORONTO, July 26, 2021 – PRESS RELEASE – Flora Growth Corp., a leading all-outdoor cultivator and manufacturer of global cannabis products and brands, is pleased to announce that following an extensive consultation process, Colombia President Ivan Duque Marquez has accepted and signed into effect the revisions related to the existing Colombian cannabis laws. The reformed legislation is aimed at improving access to cannabis products for Colombians and positions Colombia as the leader to supply the global cannabis market.

Colombian Cannabis Cultivation

Located near the equator, select regions of Colombia have the ideal climate for the cultivation of cannabis 365 days a year. The country also boasts one of the world’s largest cut-flower industries, resulting in a labor force with substantial agricultural experience that can produce a high-quality cannabis product at low-cost. This combination of geographic factors and legislative updates positions Colombia as a major player in the international cannabis market due to its low-cost structure.

Flora’s Colombian cultivation facility, Cosechemos, has maximized this cultivation potential by achieving a production cost below $0.06 per gram (or roughly $27 per pound) of dried flower. This represents a 60% lower production cost than its closest competitor. With more than 12.5 hours of natural sunlight, natural water springs onsite and 247-plus acres of licensed all-outdoor organic cultivation, Flora Growth is well-positioned to benefit from this legislative update across a number of verticals.

Legislative Update Signifies Increased Revenue Potential

The new regulations are expected to allow Flora to increase near-term and long-term revenue, optimize its global supply chain of premium brands and products, and maximize economics both domestically and abroad. The following points highlight the impact of this legislative change:

  1. Currently in the global cannabis market, dried flower accounts for more than 50% of the sales demand. Through this legislative update, Colombian cultivators like Flora, have gained access to this massive segment of the global market that was previously inaccessible. With a production cost that is substantially lower than its North American peers, Flora is able to market a high-quality product at below North American prices.
  2. By allowing the manufacturing, sale and export of cannabinoid ingestible products, near-term revenue opportunities are created. Flora’s food and beverage division, Kasa Wholefoods, anticipates amplified revenue growth and intends on leveraging existing relationships to distribute CBD versions of its portfolio, including the recently announced U.S.$10M distribution agreement with Tropi, Colombia’s largest food and beverage distributor with 130,000 points of distribution across the country.
  3. By removing marketing restrictions on cannabis products locally, Flora is expected to be able to drive increased awareness across its portfolio of products and additional sales through its 1,500-plus points of distribution within Colombia.
  4. By permitting the sale of cannabinoid medical products through drugstores as “custom formulas,” access to cannabis products is substantially increased within the domestic Colombian market. Custom formulas are pharmaceutical products prescribed and prepared by pharmacists to meet the unique needs of a patient and are intended to complement medical prescriptions. This change favors Flora Lab, which holds licenses to produce custom formulas and has existing relationships with drugstore chains throughout Colombia.

“We would like to thank the Colombian government and all of the parties involved with passing this legislation. As we quickly move to ramp up production at Cosechemos, we believe that Colombia will become a global player in the regulated cannabis market. We believe this will result in an increased positive economic impact to our community, while also benefiting Flora and its shareholders,” Flora President and CEO Luis Merchan said. “We’re also very pleased to now be able to bring new and existing wellness products to market. We have a loyal and passionate following and are very eager to meet the demand that we’ve been receiving but haven’t been able to deliver on previously because of the regulations.”

Flora Targets International Cannabis Markets

As an immediate impact of this law change, Flora has signed a letter of intent with an international distributor to supply its dried flower and derivatives. The company expects to ship its premium cannabis products upon completion of its first commercial harvest and obtaining necessary import licenses.

The cannabis products will be distributed by Kiricann, with operations in South Africa and distribution agreements in Germany and the European Union. Kiricann imports and distributes medical cannabidiol (CBD) while working with patients and wellness practitioners to educate about the authorization and use of medical cannabis and the benefits of CBD.

Flora anticipates signing additional supply agreements in the coming months as the global cannabis market begins to appreciate the low-cost, high-quality product that is cultivated within Colombia. This includes assessing the opportunity to ship its low-cost cannabis flower to pending acquisition Koch & Gsell, for use in its market-leading cannabis pre-roll brand (Heimat), which generated more than U.S.$7.6M in trailing 12-month revenue.

“This legislative update immediately accelerates Flora’s ability to generate revenue through the sale of our cannabis flower to international markets, as noted by our first international supply agreement. Having the ability to export our high-margin, high-quality cannabis flower—in addition to selling cannabinoid ingestible products—will meaningfully impact our growth and revenue generation,” Flora Chief Revenue Officer Jason Warnock said. “We are very excited to leverage our existing product portfolio and distribution channels to quickly deliver these new products to Colombians and our international partners.”

Aurora Cannabis Announces Appointment of New Independent Director

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July 1, 2021, marked four years since Nevada launched its first adult-use cannabis sales, and the market has certainly seen its fair share of rapid growth and regulatory changes during that time, not to mention the unprecedented COVID-19 pandemic.

From July 2017 to June 2018, the state saw $529,851,245 in taxable medical and adult-use cannabis sales, a figure that has steadily increased to $719,216,651 during the current fiscal year, which includes sales data from July 2020 to March 2021, according to the Nevada Department of Taxation.

Flexibility is the name of the game for cannabis operators looking to cash in on this rapidly growing market, according to Layke Martin, executive director of the Nevada Dispensary Association (NDA).

“I think this industry is ever-changing, and our owners know that and are prepared for that,” Martin told Cannabis Business Times and Cannabis Dispensary. “They’re flexible and ready to pivot.”

RELATED: A Snapshot of Nevada’s Cannabis Retail Market: Q&A with the Nevada Dispensary Association

The NDA launched roughly five years ago as an advocacy and trade association for the retail segment of the market but has recently expanded to include cannabis cultivators and distributors.

Nevada currently has 86 operational dispensaries, and the industry employs approximately 10,000 people, Martin said.

Reflecting on Lessons Learned

The Source pivoted to the adult-use market quickly, launching its first recreational sales at its Sahara location on July 1, 2017. The company’s Henderson store began serving the adult-use marketplace much later, in October 2017, due to delays in the rollout of local regulations, according to Brandon Wiegand, The Source’s chief commercial officer.

“We saw an immediate impact,” Wiegand said. “Going from medical to recreational, it was about a five-times increase in business. Then, it’s ebbed and flowed.”

When the first adult-use sales launched in 2017, The Source had roughly 50 employees, a number that has since grown to more than 260. The company also won three new retail licenses when the state opened up another licensing round in 2018, and has opened three new stores in Las Vegas, North Las Vegas and Reno.

In the past four years, The Source has adjusted its operations to accommodate the sharp increase in customers, and part of these adjustments include more robust consumer education.

“With recreational, there’s a much bigger knowledge gap,” Wiegand said. “Customers are coming in that either haven’t consumed cannabis in many, many years or may have never consumed cannabis, and so we focus on education, knowledge, [and] creating an environment that helps awareness and understanding of the product, the different methods of consumption [and] the effects of that consumption. … Our big focus as a team is, how do we dispel the myths and stereotypes around the product, and how do we help people find the experience they’re looking for?”

Wiegand said The Source has a “pretty liberal sample policy,” where dispensary employees are encouraged to try the products to help inform their discussions with customers.

“We encourage them to try and experience the product themselves so that they can talk about it from a first-person point of view,” he said.

The COVID-19 pandemic sparked a new set of challenges for the business, Wiegand said, and The Source had to quickly navigate the e-commerce space to offer curbside pickup and delivery services.

“E-commerce has probably been one of the most significant changes in the business over the last four years—getting our product online [and] developing a platform and experience and a way for our customers to shop,” he said. “That’s an area that we’ve continued to focus on and retool. I think we’re still working today on how to make that process cleaner, leaner [and] more efficient. We’ve seen a huge shift in customers going after e-commerce. Coming out of COVID, there are a lot of people who have changed the way they shop. They’re looking for convenience.”

Clearing Regulatory Hurdles

There are some onerous regulations that burden all cannabis operators, such as limited access to banking services and tax code 280E, and then there are state-specific regulatory hurdles that businesses face in each legal market. In Nevada, the most significant regulatory hurdle when adult-use sales launched in 2017 might have been language in the law that required businesses to have distribution licenses in order to deliver product.

“That had not been figured out when we launched recreational sales, and our biggest challenge going into rec sales was storing product,” Wiegand said. “We didn’t know when we were going to be able to get deliveries for recreational product. The state and the regulatory agency—at the time it was the Department of Taxation—had allowed us to one time turn our inventory. So, whatever we had July 1 at 12:01 a.m., we were allowed to use that as recreational inventory. So, all of us, all of the dispensaries in the state, stockpiled, not knowing when we were going to be able to get deliveries.”

Another significant regulatory change was creation of the Cannabis Compliance Board (CCB) to oversee the industry, which had previously been regulated by the Nevada Department of Taxation.

The CCB, modeled after the state’s Gaming Control Board, launched in July 2020, and Martin said she and many of the NDA’s members are happy with how the board has operated over the past year.

“They’ve been great to work with, and it’s excellent having a dedicated regulatory body for the industry,” she said. “It makes it easier to comply. … They’re transparent. … When they were working on regulations, for instance, they [sought] industry guidance so stakeholders were able to provide guidance on what the regulations should look like.”

The CCB recently created a Cannabis Advisory Commission, Martin added, which is made up of industry stakeholders, legislators and government agencies who will ultimately make recommendations to the full board.

“There’s a subcommittee on social equity, one on public health, one on public safety, and one on the cannabis industry and market stability,” Martin said. “Each of those subcommittees will research, analyze and make recommendations to the board. … They just met for the first time this week, so we’re really excited to see where that goes.”

Planning for the Future

During the 2021 legislative session, the Nevada Legislature passed a bill to create a new consumption lounge license, the first new license type since adult-use was legalized. The CCB is currently going through the rulemaking process to draft regulations for these new businesses, and Martin anticipates seeing the first operational lounges in the early part of 2022.

Existing dispensaries can each apply for a license to open one lounge, which must be attached or adjacent to their existing facilities.

“Some of our [dispensary members] … are located near the tourist corridor, [and they] are very excited about the opportunity to have lounges to give tourists, for example, a place to try cannabis products legally,” Martin said.

The Source will pursue a license to create a consumption lounge, Wiegand said, adding, “There’s a whole world of experiences that can be created with the product, and I’m really excited to see what comes out of that and very proud of the fact that Nevada took a stand and will be part of something that will be the next evolution of the industry.”

The NDA will continue to evolve with the industry, Martin said, and the organization is already planning its priorities for the next legislative session, which will take place in 2023.

One of these priorities will likely be reforming state regulations on packaging and labeling, Martin said.

“A lot of our regulations and statutes related to packaging and labeling have evolved, and it’s become … somewhat duplicative, a little bit onerous, and we are taking cues from a couple of other states that have gone back and reformed their packaging and labeling regulations,” she said. “How can we streamline … our packaging and labeling requirements to be more consumer-friendly [and] provide the information, but perhaps in a different way?”

The Source’s upcoming goals focus on running a more efficient dispensary, Wiegand said.

“One area we’ve focused on pretty heavily over the past few years is understanding the customer—understanding buying behavior, understanding product and proper merchandise planning and allocation,” he said. “How do we get the right products in the right volumes at the right times, so we’re not overstocked in some SKUs and understocked in others? How do we make sure that the product our customer is looking for is kept in stock?”

Customer preferences are starting to evolve, he added, and consumers are starting to purchase products based on terpenes rather than potency.

“We spent a lot of time and a lot of effort educating customers about the entourage effect and terpenes and really understanding that there’s a lot more to the experience of the product beyond just the THC percentage,” Wiegand said. “In conversations with customers, there’s definitely a different level of knowledge and customers are seeking out terpenes they know and like and that bring them the benefits and the effects that they’re looking for.”

The Source has continued to scale to meet consumer demand and has converted to vertical cultivation to double its square footage without expanding the size of the building. 

“Then, on top of that, we’ve bought a new distribution center, where we’re going to co-locate our production facility,” Wiegand said, adding that this will support The Source’s dispensaries as well as other retailers that buy The Source’s product wholesale.

“We scale up the business, we plateau and stabilize, and then we develop new products, … we see the demand go up, and we have to retool the business again,” Wiegand said. “I joke about the fact that it has been a sprint from day one, even going back to medical. I don’t know that we’ve had a year of stability. It’s always been something changing, something new, and that’s part of what I love about the business—it’s dynamic and exciting.”

Agrify Announces Launch of Innovative, Project-Based Learning Program, Agrify University

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BILLERICA, Mass., July 19, 2021 – PRESS RELEASE – Agrify Corporation, a developer of highly advanced and proprietary precision hardware and software cultivation solutions for the indoor agricultural marketplace, announced the opening of Agrify University, a brand new 3,500-square-foot, state-of-the-art indoor vertical farming facility featuring Agrify’s latest technology and advanced cultivation methods. We believe this new immersive, hands-on project-based learning experience will empower Agrify customers and next-generation growers with the knowledge and education to successfully cultivate cannabis with efficiency at scale by leveraging the power of Agrify’s vertical farming units (VFUs) and the Agrify Insights software solution.

Located in Billerica, Mass., Agrify University, led by David Kessler, Agrify’s Chief Science Officer, and a team of industry experts, horticulturists and scientists, will provide participants with in-classroom, on-site and on-demand learning options. The immersive, multisensory curriculum will enable customers and growers to expand their knowledge of how to apply novel scientific research, interpret cultivation data and leverage Agrify’s technology to improve their indoor cannabis cultivation practices.

“The cultivation methods used by many operators have not evolved as quickly as the industry itself, and we see an opportunity to use the power of data and cutting-edge techniques to dramatically improve the quality and yields from indoor cultivation,” Kessler said. “Agrify University utilizes our vast cannabis research data sets and technological innovation to provide a curriculum that we believe will support the long-term growth of our industry. We’re proud to add this valuable resource to our comprehensive Agrify ecosystem, and we look forward to welcoming our first cohorts.”

Agrify University classes are available now to all customers. For more information on how to apply and on available program resources, please contact Agrify at info@agrify.com.

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