Legal – MJ Shareholders https://mjshareholders.com The Ultimate Marijuana Business Directory Wed, 11 Aug 2021 12:44:54 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.5 High profile: Cannabis chemical delta-8 gains fans, scrutiny https://mjshareholders.com/high-profile-cannabis-chemical-delta-8-gains-fans-scrutiny/ Wed, 11 Aug 2021 12:44:54 +0000 https://www.thecannifornian.com/?p=21255 A chemical cousin of pot's main intoxicating ingredient has rocketed to popularity over the last year, and the cannabis industry and state governments are scrambling to reckon with it amid debate over whether it's legal.

The post High profile: Cannabis chemical delta-8 gains fans, scrutiny appeared first on The Cannifornian.

]]>
By JENNIFER PELTZ Associated Press
Associated Press writer Scott Bauer also contributed

A chemical cousin of pot’s main intoxicating ingredient has rocketed to popularity over the last year, and the cannabis industry and state governments are scrambling to reckon with it amid debate over whether it’s legal.

The chemical, called delta-8 THC, is billed as producing a milder high than the better known delta-9 THC, and delta-8 is often marketed as being legal even where marijuana is not. That argument stems from the fact that most delta-8 is synthesized from CBD, a popular non-intoxicating chemical that’s prevalent in hemp, a form of cannabis that Congress legalized in 2018.

Delta-8’s rise is “a phenomenon that has taken the industry quite by storm,” says John Kagia of cannabis industry analysis firm New Frontier Data, and it offers “fascinating insight into some of the growth and growing pains.”

There are no hard-and-fast statistics on sales of delta-8, which is available in vapes, gummies and other forms. It has been the fastest-growing segment of the market for hemp chemicals for roughly the last year, after wholesale CBD prices plummeted amid oversupply and other issues, says Ian Laird of data analytics company Hemp Benchmarks.

After a few years in the CBD business, William Goodall and partner Katiana Kay began selling delta-8 products through their online shop Bay Smokes in December. It quickly became a main source of revenue.

Cannabis Delta 8
A small selection of products offered by William Goodall, and Katiana Kay, his partner in their CBD online shop Bay Smokes, are shown, Thursday, July 22, 2021, in Sunny Isles Beach, Fla. The two began selling delta-8 products in December with delta-8 quickly becoming a main source of revenue. The chemical, called delta-8 THC, is billed as producing a milder high than the better known delta-9 THC, and delta-8 is often marketed as being legal even where marijuana is not. (AP Photo/Wilfredo Lee)

Goodall said that after talking to lawyers and suppliers’ chemists, he’s confident Bay Smokes products are safe and federally legal (other attorneys divide on how risky it is to sell delta-8). But the Miami-based company has had to filter out customers from a growing list of states that are prohibiting delta-8.

Still, he’s sticking with it, figuring that legal markets for it will endure at least in states where marijuana is permitted.

“Ultimately, I think delta-8 is a great product,” he says.

But some other hemp businesses are steering clear.

“The easy money is tempting, but that’s not an avenue we wanted to go down,” says Gair Laucius, the chief scientific officer of Southbridge, Massachusetts-based CBD producer High Purity Natural Products. “There were too many unknowns.”

The 2018 federal law that OK’d hemp products said they couldn’t be more than 0.3% delta-9, but it said nothing about delta-8.

Enthusiasts interpret that silence as a green light for delta-8, and some officials also see an opening for it. Wisconsin’s Legislative Council, a research service for lawmakers, concluded last year that delta-8 products may qualify as hemp if they’re below the delta-9 threshold, though the council cautioned it wasn’t giving legal advice.

But within the last year, the federal Drug Enforcement Administration has said that “synthetically derived” THC and delta-8 specifically are top-level controlled substances — effectively illegal, except for strictly limited research.

There’s not much research on delta-8, especially in people, though a small 1995 study said it showed promise as an anti-nausea treatment in child cancer patients. But officials in states such as Colorado and Washington worry that converting CBD to delta-8 could produce harmful byproducts, at least in some cases.

This spring, regulators in Washington said producing or selling synthetically derived delta-8 is against state law, while Colorado said manufactured delta-8 isn’t allowed in food, dietary supplements or cosmetics and doesn’t qualify as hemp. Kentucky and Vermont told hemp growers that selling delta-8 risks criminal prosecution.

Over 10 other states’ controlled substance lists include delta-8, sometimes under a different name. Lawmakers in more than a dozen other states, from Alabama to Hawaii, have made or considered some move on delta-8 this year.

Some sought effectively to ban it. Others aimed to allow but regulate it much like their legal marijuana markets, concerned that intoxicating delta-8 items were being sold at gas stations, convenience stores and elsewhere without the same standards and limits that apply to pot dispensaries.

“It is still a form of cannabis that can get you high, and it is unregulated and untested,” says Jacqueline McGowan, a California cannabis licensing consultant and candidate for governor. Proposed legislation in California would require testing and taxation of consumable “noncannabis cannabinoids,” including delta-8.

In Oregon, newly passed legislation gives the state Liquor Control Commission authority to limit THC — of any kind — in products sold to minors, among other provisions. Commission research director TJ Sheehy says it will ensure consumer safety without outlawing delta-8 for adults.

Texas lawmakers hit an impasse this spring over a measure that producers said would have barred delta-8 from consumable hemp products.

House sponsor Rep. Tracy King, a Democrat from a rural district, says he “just wanted to do something to help the growers and the processors” by stripping that measure out of proposed hemp legislation that was heading toward passage. It ultimately stalled as the legislative session ended.

The U.S. Hemp Roundtable, an industry group, fears that portraying delta-8 products as hemp with a high could jeopardize the plant’s hard-won federal legal status. But another group, the Hemp Industries Association, worries that lawmakers are rushing to crack down.

Delta-8 is getting onto law enforcement’s radar, too, prompting raids of shops in multiple states.

In Wisconsin, Waukesha County authorities alleged in April that a CBD shop was offering products labeled as delta-8 THC that actually contained illegal amounts of delta-9. Authorities say they started investigating after two children accidentally ingested products their parents got at the Superstar Buds store in Menomonee Falls, near Milwaukee.

Shop owner Chris Syrrakos denies the allegations and says authorities haven’t given him detailed testing results. No criminal charges have been filed to date, though prosecutors have brought a civil forfeiture case involving about $14,000 seized in the probe.

“Delta-8 came to the rescue and saved our life” as a business, enabling six new hires, Syrrakos said. “Then, all of a sudden, everything came crashing down with the police raid.”

He has since closed the shop but opened a new one in Milwaukee.

]]>
Legalization bids boost outlook for US cannabis industry https://mjshareholders.com/legalization-bids-boost-outlook-for-us-cannabis-industry/ Wed, 28 Apr 2021 12:44:37 +0000 https://www.thecannifornian.com/?p=20827 Uncle Sam gave marijuana lovers more reason to celebrate this past week This will make it easier for cannabis companies to do business in states where sales are legal.

The post Legalization bids boost outlook for US cannabis industry appeared first on The Cannifornian.

]]>

By ALEX VEIGA AP Business Writer
Photo: Bridgette King poses for a portrait at a “Joints for Jabs” event in New York. (AP Photo/Mark Lennihan)

Uncle Sam gave marijuana lovers more reason to celebrate this week as a bipartisan group of lawmakers in the House of Representatives passed a bill that would make it easier for cannabis companies to do business in states where sales are legal.

The vote on the Secure and Fair Enforcement (SAFE) Banking Act took place a day before April 20 — or 4/20 — the unofficial holiday that commemorates all things marijuana.

The cannabis industry is making strides in other ways as well. Since the November elections, several states, most recently New Mexico and Virginia, have taken steps to legalize marijuana sales for adult recreational use. Others, including New York, New Jersey and Arizona, have also gone that route. And more states are expected to follow suit.

“From a policy perspective, state by state, municipality by municipality, there’s more political will to legalize, which is going to help bring on more markets and add to the sales we have,” said Jason Wilson, banking and cannabis expert at exchange-traded funds provider ETFMG.

The flurry of states legalizing cannabis prompted analysts at Cowen to update their forecast for the U.S. recreational cannabis market to $41 billion by 2025, an increase of $1 billion from Cowen’s previous forecast.

Including illicit and medical marijuana sales, analysts expect the total market for cannabis in the U.S. will climb to $80 billion by 2025 from a projected $65 billion this year.

Another bright spot for the industry: robust demand. Adult recreational marijuana sales climbed sharply in the first three months of this year in California, Massachusetts, Illinois and a few other states that have been allowing such sales for at least a year.

Sales in California, the nation’s biggest legal cannabis market, jumped 36.4% to $1.2 billion in the first quarter versus a year earlier, according to industry tracker Headset. In Michigan, sales skyrocketed almost fivefold to $232.07 million, while Colorado’s sales more than doubled to $439.7 million.

All told, 16 states allow marijuana sales to adults now. Some of the recent converts, including New Mexico and New York, are not expected to begin allowing sales until next year. All but a few states already allow some form of access for medical use.

Cowen’s analysts expect that Connecticut and Rhode Island will be next to legalize adult-use cannabis.

The industry is eager for changes to federal laws that limit cannabis companies’ access to banking and other services. Progress at the federal level would also help drive cannabis stocks higher, said Greg Bassuk, CEO of AXS Investments.

“The environment has been ripe ever since the last election, but the catalyzing move for bigger jumps in stock prices is going to be total federal approval,” Bassuk said.

Cannabis stocks surged last fall after voters in New Jersey, Arizona and three other states cleared the way for expanding legal sales of marijuana. Medical and adult-use cannabis sales combined jumped 58% in the U.S. last year to about $19.2 billion, according to Cowen.

Recently, cannabis stocks have lost ground amid uncertainty over whether President Joe Biden will budge on his opposition to legalizing marijuana at the federal level. Biden has said he would decriminalize — but not legalize — the use of marijuana. In addition, a rally in cannabis stocks fueled by the same social media chat rooms that sent GameStop shares skyrocketing in January faded after peaking in mid-February.

The ETFMG Alternative Harvest ETF, which has more than $1 billion in assets under management, has fallen 56.4% since Feb. 10. The ETF, which focuses on cannabis stocks, is still up about 80% from 12 months ago. Shares in some of the biggest marijuana companies, including Tilray, MedMen Enterprises and Aphria, have doubled this year.

Meanwhile, the benchmark S&P 500 index is up about 11% this year and 52.5% above where it stood a year ago. “If you look at just the last two months, you’ll see a lot of stocks have sold off pretty sharply,” said Garrett Nelson, senior equity analyst at CFRA. “We view this as a buying opportunity.”

]]>
What is Delta-8, and is it Legal? https://mjshareholders.com/what-is-delta-8-and-is-it-legal/ Sun, 14 Mar 2021 02:44:55 +0000 https://www.thecannifornian.com/?p=20625 Delta-8 THC is a compound that exists naturally in the cannabis plant, but it's available in small amounts. Most of the delta-8 THC available is derived from the hemp plant. Like other cannabinoids, this THC helps your body relax, reduces stress, and boosts your moods...

The post What is Delta-8, and is it Legal? appeared first on The Cannifornian.

]]>
Tetrahydrocannabinol (THC) is a psychoactive element in the cannabis plant. Apart from THC, CBD is the other dominant cannabinoid, but there are many other cannabinoids in the hemp and marijuana plants.

Most people only know THC or delta-9 THC, but recently scientists discovered its relative, delta-8 THC, which has become more popular over the past few years. What is  Delta-8 THC, and is it legal? That’s what this article is about. We’ll look at more information on Delta-8 THC that you need to know.

What is Delta-8 THC?

Delta-8 THC is a compound that exists naturally in the cannabis plant, but it’s available in small amounts. Most of the delta-8 THC available is derived from the hemp plant. Like other cannabinoids, this THC helps your body relax, reduces stress, and boosts your moods.

The Legal Status of Delta-8 THC Federally

There are various discussion forums and sites with misleading information. Therefore, it is crucial to clarify this component’s legal details so that everyone can start benefiting from it. Most individuals presume that since THC is related to marijuana, it’s illegal. Well, that’s not true, and that’s because delta-8 THC is different from delta-9 THC or simply THC.

Unlike its more popular relative delta-9-THC, delta-8-THC is a minor cannabinoid with a potent high of its own. It differs from delta-9-THC by the location of the double bonds in their molecular chains. Delta-8-THC occurs naturally in minute quantities in the cannabis plant and can also be synthesized from CBD to isolate it for its unique and powerful effects.

Now back to its legality, in 2018, the Farm Bill was passed. According to this legislation, hemp-derived products with less than 0.3% THC were excepted from the list of controlled substances. That means it is legal to use and distribute such products provided it has THC within the allowed limits. Since delta-8 THC is derived from hemp, which has negligible THC traces, it’s technically legal on a federal level.

Is Delta-8 THC Legal in My State?

Despite the signed federal rule, states have the power to control the use of delta-8 THC in their jurisdictions. That means they decide whether to allow or ban its use. However, it’s not just about delta-8 THC; it also happens in gambling, tobacco, alcohol, amongst other industries.

While delta-8 THC may not be legal in all 50 states, it is legal in most of them. Only 11 states have banned it. They include Utah, Rhode Island, Montana, Mississippi, Iowa, Idaho, Delaware, Colorado, Arkansas, Arizona, and Alaska.

It’s also worth noting that the legal status of D8 has nothing to do with the legality of cannabis. So, if recreational cannabis is legal in your states, it doesn’t mean delta-8 THC is, as seen in Colorado and Arizona.

The laws also vary from state to state. For instance, Oregon authorizes the Delta-8 THC obtained from hemp in intrastate transfers, provided it adheres with Oregon Department of Agriculture Laws and Rules, including having less than 0.3% THC. However, to become a seller in that state, you need authorization from the Oregon Liquor Control Commission.

Is Delta-8 THC Legal?

Now you understand why the legality of Delta-8 THC is in a grey area. It’s also easy to see why many people find this topic to be confusing. When it comes to delta 8’s legal status, there’s no direct yes or no answer. It is different from delta-9 THC, which is illegal under federal law.

Whether or not cannabis is legal depends on which laws you are looking at. Is it the federal or the state law? It also depends on which states you’re in since some of the states have banned the substance.

Before the Farm Bill 2018 ascended into law, all cannabis products were illegal. It did not matter whether they are derived from marijuana or hemp. But since the Farm Bill, there’s a heated debate since no law directly bans hemp-derived products like delta-9 THC.

Remember that state laws can change from time to time. Additionally, the state and federal laws override each other. So, the only way out is to familiarize yourself with your local laws before buying any hemp product.

It’s advisable to buy your products from reputable sellers who offer products from legal sources to avoid getting on the wrong side of the law. Most of the products available in the market contain high amounts of THC and can put you in trouble. Buying from trustworthy sources guarantees your delta-8 THC is legal and safe.

Conclusion

Although the hemp industry has legal issues to work out, it’s clear that it is booming. One of its products, delta-8 THC, is getting popular day by day. However, most users tend to shy away from it because of the unclear legal status. This guide should help clarify that and allow you to enjoy the benefits of delta-8 THC if it’s legal in your state. If you are unsure, make sure to consult an expert first.

]]>