John SchroyerJuly 24, 2023
Historically, marijuana companies avoided the hemp market.
Delta 8 Archives - Green Market Report
John SchroyerJuly 24, 2023
Adam JacksonJuly 5, 2023
This is not the first time the FTC and FDA have addressed the hemp-derivatives market.
Adam JacksonMay 26, 2023
Prosecutors contend that Anderson used much of investors' money for personal expenditures.
StaffJanuary 18, 2023
35% – Percentage of CBD consumers that have purchased psychoactive hemp-derived products
Delta-8 and other hemp-synthesized cannabinoids have become a market too big to ignore. There is significant overlap across cannabinoid use, though it is difficult to discern to what degree delta-8 and emerging cannabinoids are complementary to or competing with the cannabis and CBD markets.
Source: Brightfield Group, Delta-8 & Emerging Cannabinoids Consumers, Q3 2022
John SchroyerJanuary 10, 2023
The governor requested funding to target largely unregulated products, such as delta-8 edibles.
StaffSeptember 26, 2022
At least a dozen states have banned the drug, but manufacturers say the worries are unfounded.
Adam JacksonJuly 29, 2022
A team of Missouri researchers have figured out a way to distinguish Delta-8 from Delta-9 using common drug testing methods.
The new discovery comes as testing companies have faced challenges isolating the semi-legal Delta-8 from its chemical cousin Delta-9 – the primary psychoactive ingredient in cannabis – in both presumptive and definitive urine drug tests. The findings were presented by its author Dr. Uttam Garg of Children’s Mercy, Kansas City and researchers at the Missouri-Kansas City School of Medicine during the 2022 AACC Annual Scientific Meeting & Clinical Lab Expo in Chicago this past weekend.
“With our methods, we can detect both Delta-8 and Delta-9 isomers and distinguish Delta-9 from Delta-8,” said the paper’s author, Dr. Uttam Garg of Children’s Mercy, Kansas City. “If someone is using Delta-8-THC, the immunoassay we are using and likely other immunoassays which are out on the market will detect it. Once an immunoassay positive sample has been identified, then you need a chromatographic method to separate Delta-8 and Delta-9 because they are very similar structurally. That’s what we did in our lab—we used immunoassay for initial screening and GC-MS to separate and distinguish the two compounds.”
Gas chromatography-mass spectrometry (GC-MS) is an instrumental technique typically used for fast molecular analysis in forensics, environmental monitoring, drug testing of athletes and other applications.
Delta-8 gained more popularity in the U.S. over the past few years after the 2018 federal Farm Bill made it legal to grow hemp. The Farm Bill specifically defined THC as Delta-9, which left Delta-8 out, sparking a grey market of Delta-8 products. Hemp contains large amounts of cannabidiol (CBD), and CBD can be chemically converted into Delta-8, Quest Diagnostics Medical Science (NYSE: DGX) Liaison Jack Kain said in a company blog post last year, “and in recent years, it has grown in production and selling as medicinal or recreational cannabis products.”
Delta-8 is known for giving consumers a milder high than regular pot, but because Delta-8 products are unregulated, researchers have found that many contain toxic manufacturing by-products that make it more dangerous than Delta-9-THC.
“In light of this, testing for Delta-8 is needed to discourage people from taking these contaminated products as a way to circumvent drug tests,” the release said. “Testing is also needed to monitor the spread of Delta-8 and to inform public health efforts to craft better regulations for it.”
Hemp Market
The market seems to be cratering for Delta-8.
Hemp Benchmarks said rates are beginning to slide, with Delta-8 prices falling each month for the past year — down 6% since May to an average tag of $542 a kilogram in June. This represents a 55% drop since the same time last year. Reported deals ranged from $370 to $725 per kilogram, according to the latest benchmark.
Delta-8 THC is illegal in 14 states. Oregon this month banned the sale of synthetic cannabinoids at general retailers – the first state to do so.
Regulators at the Oregon Liquor and Cannabis Commission (OLCC) said that any store without a special license cannot sell Delta-8 products on the open market effective July 1 over concerns about the chemicals used to make artificially derived cannabinoids.
“The supply of CBD was outstripping the demand for CBD,” Steven Crowley, the OLCC’s hemp and processing compliance specialist told the Oregonian. “And so, the people who had CBD on hand were looking for other ways that they could market it. People started working on different products that they could convert the CBD into. This is where you get the Delta-8 THC products.”
CBN – a hemp-derived cannabinoid – will have a one-year “grace period” before it is banned as well, the newspaper reported. The new rules will allow the sale of artificial cannabinoids only in OLC- licensed adult-use cannabis shops and after those products have undergone testing and approval from the FDA. Those who violate the law face fines up to $10,000.
In Colorado, Governor Jared Polis signed into law a measure that authorizes the state to ban the production of “intoxicating tetrahydrocannabinol isomers that originate from industrial hemp or may be synthetically derived.” The measure also establishes a 20-member task force to study those intoxicating hemp products – such as Delta-8 THC and other THC isomers manufactured from hemp-derived CBD – in order to make legislative and regulatory recommendations by early next year.
StaffJuly 8, 2022
Editors Note: This is a republished story.
Hemp and marijuana plants contain many active ingredients. However, a lot of focus is on two specific natural compounds found in these plants – tetrahydrocannabinol (THC) and cannabidiol (CBD).
Most consumers have recently found out that there are two types of THC molecules in hemp and marijuana – Delta 8 and Delta 9 THC. Here is everything you need to know about these two compounds, including the key differences between delta-8 and delta-9.
THC: Short Recap
If you were wondering what ingredient is responsible for the “high” effect, it’s THC. It is a psychoactive compound found in cannabis plants. Marijuana contains higher concentrations than industrial hemp.
It works pretty straightforwardly. We have the endocannabinoid system with CB1 and CB2 receptors, and THC binds to these receptors and exhibits its effects. When it binds to CB1 receptors, it induces the “high” effect, while CB2 binding induces relaxation.
What is Delta 8
Delta 8 THC is naturally occurring in cannabis plants, both hemp and marijuana. Although it occurs in very small concentrations, it can still be derived thanks to distillation. It has a unique molecular structure and exhibits unique effects when consumed.
Delta 8 can exhibit very high neuroprotective potential and help relieve chronic pain. There are various Delta 8-based products on the market ranging from oils to edibles. With this in mind, let’s quickly see what Delta 9 is.
What is Delta 9
Delta 9 is also naturally occurring in cannabis plants. The more popularly used term for it is simply THC. Whenever you see an article referring to THC or outlining its effects and benefits, it’s, in fact, Delta-9-tetrahydrocannabinol. This is the molecule that can induce elation and a classic “high” feeling.
Due to its profound effects, it caught the eye of researchers in the field of medicine. Delta 9 THC exhibits many properties; it can act as an appetite stimulant and prevent nausea, among other things.
Do you remember the Farm Bill from 2018? If one wants to grow hemp or make cannabis-based products legally, the THC levels have to be at 0.3% or less. The bill refers to Delta 9 THC.
Delta 8 and Delta 9 – Key Differences
From what you’ve seen so far, it is easy to assume that Delta 8 and Delta 9 are two compounds with really similar properties and effects. In terms of molecular structure, Delta 8 and 9 are almost identical apart from a couple of electrons.
However, there are some key differences that you should know about.
Anxious and Paranoid Effects
There is a reason the Farm Bill dictates keeping the levels of Delta 9 THC levels below 0.3%. In some people, Delta 9 THC can induce feelings of anxiety. It can also make them feel paranoid for no apparent reason. It can also impact the performance of mental work. The “too much high” effect is only tied to Delta 9 THC.
Delta 8 THC is less psychoactive than Delta 9. People who experience these unpleasant feelings should instead try Delta 8. It is far less potent than Delta 9 and can enable people to enjoy cannabis or cannabis-based products carefree.
Relaxation Effects
Due to its potency, Delta 9 THC is more likely to induce elation rather than relaxation. After taking Delta 9 THC, people report the “high” feeling that can even build up to euphoria. It can elevate your mood. If this is how you imagine the relaxed state, Delta 9 THC may have some answers for you.
On the other hand, if you genuinely want to get rid of the tension without experiencing the “high” effect, Delta 8 THC might be a better option. It has a significantly milder effect when compared to Delta 9.
The Effects Build Up
There is one more thing that makes Delta 8 and 9 different. They don’t only induce different effects, but they also do it at a different pace. Delta 9 THC is absorbed quickly, and it can induce the feelings mentioned above quite fast after consumption. This is an important thing to note as it can alter your plans for the afternoon or evening.
Unlike Delta9, Delta 8 THC is a slow kicker. It delivers a significantly smoother experience than Delta 9. After the consumption, the feelings of relaxation gradually come on, and there is considerably less risk that it can induce anxiety.
To sum up, both Delta 8 and 9 THC are naturally occurring in cannabis plants. Delta 9 THC is the famous THC everyone talks about, while Delta 8 is its less potent counterpart. The critical difference is the pace at which these compounds build up effects. Delta 9 delivers more powerful effects than Delta 8, and it does it faster.
Debra BorchardtDecember 2, 2021
Despite the controversy over Delta-8, sales are beating some popular CBD companies. Hemp Benchmarks has been following the price of Delta-8 within the hemp industry and recently highlighted the company LFTD Partners (OTC: LSFP), whose sales rival many established CBD companies.
CBD Fever Dreams
When the Farm Bill was passed in 2018, there were high hopes for the CBD industry and in particular for the hemp farmers. Hundreds of acres were grown, but the huge demand for CBD never materialized. There was demand, to be sure, but not at the levels the market had anticipated. This resulted in a glut of CBD biomass in the market and prices plunged. Farmers plowed over crops instead of harvesting due to the cost and many dramatically reduced the acres of hemp they were growing.
Delta-8 Growth
Then Delta-8 came along and the farmers began to find a new market for their crops. It was discovered that within the language of the Farm Bill, only Delta-9 cannabis was carved out as an adult-use THC product, leaving Delta-8 in a grey area. Delta-8 is often referred to as cannabis light in that the psychoactive response is milder than Delta 9 cannabis. It is also extracted from hemp as opposed to the regular cannabis that produces the typical THC product. This loophole caught many off guard and with little regulation or oversight, the product began to take off.
Several states have banned the product from being sold due to the lack of oversight. The cannabis industry seems mixed on whether it supports the product or not. Some are happy that it has helped out hemp farmers, while others see it as competition that isn’t subject to the same onerous regulations. In addition to that, the FDA noted that it has received several troubling reports on Delta-8. Seeing a Delta-8 company beat a highly regulated CBD company in revenue has got to hurt.
Lifted Made
LFTD Partners also known as Lifted Made, manufactures and sells branded products containing hemp-derived cannabinoids (e.g. delta-8-THC, delta-9-THC, delta-10-THC, THCV, THCO, CBDA, CBC, CBG, CBN, CBD), e-liquid, disposable nicotine vapes, kratom and kava products. In February 2020, LSFP acquired 100% of Warrender Enterprise Inc. d/b/a Lifted Made (formerly d/b/a Lifted Liquids). It recently announced that it was expanding its operations for the fourth time during the last 18 months, leasing an additional 8,000 square feet in a third building in Kenosha, WI. LSFP has also signed a letter of intent to acquire Savage Enterprises, owner of award-winning hemp-derived products brand Delta Extrax, sub-brand Chronix, Savage CBD, male enhancement products brand Vix, kratom and kava-based products brand Kanna, and plans to enter the California marijuana industry by purchasing Premier Greens LLC and MKRC Holdings, LLC.
Two weeks ago, the company reported its third-quarter revenue had risen 32% to $8.8 million and net income grew by 40% to $2.2 million. Savage reported that it had revenues of $20 million in the third quarter, but doesn’t look to have Delta-8 products in its portfolio. Still, the pro-forma of the combined companies puts it near a $30 million quarter.
CBD Companies Struggle
CBD brands have struggled under the massive amount of money it took to get established only to see competition muddy the landscape. CBD was being sold at grocery stores and gas stations. Consumers had no idea whether the cheap CBD at the gas station was the same, better, or worse than more reputable brands. With major restrictions on what CBD companies could say about themselves, consumers couldn’t even do their own research. Websites remain vague and companies that attempt to give consumers as much information as possible often get slapped by the FDA for making claims they can’t support with medical research.
This year, a well-respected brand Plus Products essentially went bankrupt. Aligning itself with a major celebrity like John Legend didn’t help as the company became overwhelmed with debt. The stock has quit trading as the company restructures. In its last earnings report, Plus only delivered revenues of $4 million for the second quarter.
While Charlotte’s Web (OTC: CWBHF) reported revenues of $23 million in the most recent third-quarter earnings report, this was down from 2020’s third-quarter revenue of $25 million. Another CBD with a large market share, CV Sciences (OTC: CVSI) reported that sales for the third quarter of 2021 were $5.1 million, which dropped 8% from $5.6 million in the third quarter of 2020.
FDA Warns About Delta-8
In September, the Food & Drug Administration (FDA) issued a warning about Delta-8 THC noting that the product hasn’t been evaluated or approved by the agency. Granted the FDA’s opinion on anything cannabis-related is received with a healthy dose of skepticism. The FDA still hasn’t made any determination on CBD after years of discussion and research. In the warning notice, the FDA said that from December 2020 through July 2021, it had received adverse event reports from both consumers and law enforcement describing 22 patients who consumed delta-8 THC products and 14 went to a hospital or emergency room for treatment. 19 of these patients said they had eaten delta-8 THC food products. The adverse events included vomiting, hallucinations, trouble standing, and loss of consciousness. In addition to that, the FDA said that the national poison control centers received 661 exposure cases of delta-8 THC products between January 2018 and July 31, 2021, 660 of which occurred between January 1, 2021, and July 31, 2021. Of the 661 exposure cases:
- 41% involved unintentional exposure to delta-8 THC and 77% of these unintentional exposures affected pediatric patients less than 18 years of age.
- 39% involved pediatric patients less than 18 years of age
- 18% required hospitalizations, including children who required intensive care unit (ICU) admission following exposure to these products.
In Closing
CBD companies were already facing a tsunami of challenges and the onslaught of the Delta-8 products has only added to those troubles. Until the cannabis industry decides to take a position on Delta-8, one way or the other, it is likely the CBD-only companies will have to find new ways to succeed. The patchwork approach by some states banning the product, while others allow it only creates more chaos for consumers. In the meantime, it looks as if the lack of regulations and customer demand will keep Delta-8 companies in business and possibly more successful than the CBD companies who are trying to play by the rules.
Julie AitchesonNovember 1, 2021
Hemp Benchmarks has released its October report, with notable points including a 4% decline in observed prices for delta-8 THC distillate for the fourth consecutive month while sales numbers for this controversial cannabinoid made from hemp remain robust. This mirrors an overall dip in rates for CBD distillate, which is at an all-time low despite larger-volume deals. Newcomer delta-10 THC makes an appearance in the Hemp Benchmarks’ report for the month of October, though it is still unfamiliar to many consumers.
Delta-10, closely related to delta-9, is one of the THC compounds found in hemp and cannabis that is responsible for making consumers feel high or euphoric. While delta-9 is more likely to have an effect on pleasure and memory and delta-8 is often used as a relaxant and sleep aid, some claim that delta-10 enhances energy, creativity, and productivity. (Little is factually known about how this cannabinoid functions in the body or what its effects are.) Unlike delta-9, delta-10 is only found in trace amounts in plant material and requires large amounts of plant matter and significant processing to extract a potent quantity. It exists in the same legal grey zone as delta-8 when derived from hemp and therefore is typically available in states where recreational use is illegal, though this is starting to change. According to Hemp Benchmarks, delta-10 THC Distillate averaged $3,580 per kilogram in October, which is more than four times the average price for delta-8 THC distillate.
The FDA issued warnings about Delta-8 THC in September, which remains especially popular in states where recreational marijuana use is illegal. Since then, restrictions or all-out bans on delta-8 are being initiated that will likely affect sales of delta-10 as well. Both South Carolina and Texas have taken steps to articulate state-specific policies, with South Carolina Attorney General Alan Wilson issuing an opinion that the state’s Hemp Farming Act “does not provide an exception for, and does not legalize, delta-8 THC or any other isomer of THC in itself.”
The Texas Department of State Health Services released an October update which specified that “all other forms of THC, including Delta-8 in any concentration and Delta-9 exceeding .3% are considered Schedule 1 controlled substances.” This is not settling well with some Texas retailers, who pushed back and petitioned for a temporary restraining order against the ruling. The restraining order was denied by a state district judge, rendering delta-8 illegal in Texas, at least for the time being. Meanwhile, the Michigan Department of Agriculture and Rural Development issued its own statement that beginning on October 11 “it is illegal for businesses to manufacture, possess, transfer, inventory, sell or give away delta-8 THC or THC-O acetate (a synthetic cannabinoid said to be more potent and have longer-lasting effects than regular THC) without proper licensing from the Marijuana Regulatory Agency.”
Despite this ongoing controversy, growers are dedicating larger portions of their operations to hemp cultivation for extraction and conversion to synthetic cannabinoids as the demand for them continues to rise. The swift rate at which new cannabinoids are being synthesized and new restrictions being issued around their sale and use bodes ill for stability in this corner of the market, though there is no arguing that demand is high, prompting producers to race ahead in search of the next big thing in synthetics.
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