Poison Ivy

Bad actors are polluting a great plant.

Daily Recap

Most commercially available hemp-derived intoxicating products are infused with synthetic cannabinoids, including novel cannabinoids like THCP and HHC, according to an analysis of 104 products, per NORML.

Researchers determined that 95% of the products sampled, including 97% of vapes, contained cannabinoids produced through a chemical synthesis rather than naturally extracted from the plant.

While delta-8-THC and delta-9-THC were the most frequent synthetically derived cannabinoids, investigators identified highly potent novel cannabinoids such as THCP and HHC in one-third to half of the products. Some products tested positive for kratom, hallucinogenic mushrooms, or similar psychoactive substances.

Last summer, in The Hemp Wars: the battle of botanical cousins, I offered:

The inside-out cannibalization of U.S. canna that was enabled by the loophole in the 2018 Farm Bill is one of the more profound storylines in the repeal of Prohibition 2.0.

Our view is simple: there should be one regulatory regime for cannabinoids, but that just hasn’t happened. Instead, the loophole has been weaponized to punish the state-legal cannabis operators that adhere to strict testing and safety protocols.

An even playing field would benefit existing state-legal operators, as they’re already being tested, as well as any and all hemp purveyers who hold themselves to similar standards. Our working assumption is that low-dose hemp beverages would survive a future (partial) closure of the loophole, or states will establish a similar regulatory construct.

But there has must be one set of rules for what is the same plant. Given A-students want to be graded and C-students do not, a standardized regime would solve for the current dangers and enable the best (tested and safe) products to win over consumers.

We’re talking big numbers, too. The hemp market will generate ~$25B in revenues this year—and that’s without any 280e or state border constraints—on top of $32B or so expected to be generated through state legal channels.

So, for those saying there’s no growth in cannabis, you are mistaken. There’s massive growth in cannabis—it’s just bifurcated across two very uneven channels.

Fast forward to today. Missouri, Florida, Ohio, and other states are in the process of implementing those very frameworks to regulate intoxicating hemp as we await the next iteration of the farm bill, which is slated to arrive by September.

To be clear, I’ve got no beef with hemp, but my fear is that sans stricter rules and regs, society will suffer from more VapeGate-type tragedies that will not only hurt people, but impede the inevitable evolution to plant-based medicine and wellness.

Bad actors have clearly bastardized the THC space, as evidenced by this must-watch report below, but as we move away from that chaos and confusion and toward much-needed common sense, the industry will be vibrant and consumers will be safer.

Also see: HIGH STAKES | How The U.S. Accidentally Legalized Weed 👀

Go Toto

Separate bills have been introduced in the Kansas legislature to legalize medical and adult-use cannabis in one of the nation’s most restrictive states.

Senate Bill 294 would authorize medical marijuana “processing, distribution, sale and use,” according to an NBC affiliate in Topeka, Kansas, and also includes provisions for patients, caregivers, regulators and enforcement.

Vive la Bud!

Two decrees from France that will govern cannabis-based products for medical use and production have been sent to the European Commission. This notification is an essential regulatory step before the integration of medical cannabis into common law.

In the absence of major objections, medical cannabis regulations in France could be validated by Europe and the decrees would be signed into law.

Leder-rosin

Meanwhile, Switzerland’s adult-use marijuana legalization pilot program is “running smoothly,” with “no indication of any disturbances to public order,” a government-commissioned report found as lawmakers consider legislation to end prohibition.

Sadly, when it comes to the global cannabis revolution, the U.S. is getting lapped.

Stocks & Stuff

The low volume bleed continued in canna as the radio silence from D.C., coupled with risk-off markets and redemptions in the ETF, combined to again pressure the space.

MSOS lost 7% today, is -31% YTD and is now down 61% since the election. C21 Chair Bruce Macdonald had this to say about the recent ETF sell pressure and as he knows as much about the mechanism as anyone that I’ve come across, it’s worth a sniff.

Below, we’ll top-line today, dig into recent reports—including some Canadian babies being tossed out in the cross-border bathwater—check on industry debt profiles and otherwise keep it real as we continue to work toward better days and easier ways.

note: there will likely be no Cannabis Confidential tomorrow.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $10M

Top Stories