The Status Quo Of The Synthetic Cannabinoids Market

The term “synthetic” has always evoked sketchy connotations. Add cannabinoids to the mix, which are still a very novel and largely unexplored territory, and the waters are bound to only get muddier, especially from a legal standpoint. First, it’s important to note that synthetic cannabinoids fall in two very different categories.

“Natural” Synthetic Cannabinoids

The first one is comprised of compounds that are the synthetic versions of cannabinoids that still occur naturally in cannabis, but usually only in trace amounts, which makes extracting them for business purposes largely unfeasible.

So, as an alternative, manufacturers derive these cannabinoids synthetically from other natural cannabinoids that can be fond in larger quantities.

The most well-known example, is Delta-8-THC. Even though it is present naturally in cannabis, most Delta-8-THC products on the market are synthesized from CBD or another cannabinoids for the aforementioned business reasons.

Even though synthetic Delta-8THC is still hemp-derived and should be legal under the 2018 Farm Bill, DEA’s amendment deems synthetically derived Delta-8-THC as illegal.

Moreover, the Federal Analog Act (FAA) doubles down on this, which treats all synthetically derived THCs and/or compounds that are “substantially similar” to federally illegal drugs illegal as well.

Nonetheless, the Delta-8-THC and Delta-10-THC markets are going strong, which begs the question how trusted are to be manufacturers that aren’t fazed by the law.

Purely Synthetic Cannabinoids

Even though they may activate the same receptors as natural cannabinoids, this category is as synthetic and unnatural as it gets. Synthetic cannabinoids can interact with the endocannabinoid system and some have been developed in the attempt of enhancing the effects of natural cannabinoids.

If “natural” synthetic cannabinoids are the equivalent of a robot that develops feelings and consciousness and is virtually indistinguishable from humans, this category is Mr. Anderson from the Matrix.

Such synthetic cannabinoids include WH-018, JWH-073 and CP47, 497-C6 [1] which are the active ingredients of products like K2, Spice, Mr. Happy, Scooby Snax, and Kronic.

They came to prominence in the 2010s as “legal high”. Now, its legal status is murky and varies arounds different states and countries. The frantic rates at which such they sprout up and their different and seemingly infinite configurations make it hard for testing and regulatory bodies to keep up.
What is for sure is that this category poses serious health risks, even based on their strength alone that can be ridiculously high compared to regular THC and enough to turn them into a completely different drug. Toxicity and contaminants due to the lack of regulations is a whole different issue.

So in short, not all synthetic cannabinoids are made equal.

References:

[1] Atwood BK. et al. CP47,497-C8 and JWH073, commonly found in ‘Spice’ herbal blends, are potent and efficacious CB(1) cannabinoid receptor agonists. Eur J Pharmacol. (2011); 659(2-3):139-145. doi:10.1016/j.ejphar.2011.01.066 [Journal Impact Factor = 4.96] [Times cited = 139]

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The Rise of CBDA

What is CBDA?

Cannabidiolic Acid (CBDA) is a cannabinoid commonly found in cannabis. It is present in all types of cannabis. It converts to cannabidiol (CBD) through exposure to heat and/or sunlight in a process called decarboxylation. In fact, both tetrahydrocannabinol (THC) and CBD are found first as acids (THCA and CBDA respectively), both of which are not intoxicating.

While CBDA can be found in tinctures, capsules, and/or topicals, one easy way to get CBDA is by consuming raw cannabis. This can be done through smoothies, salads, or juice.

There are a variety of health benefits linked to cannabinoids consumption: many studies highlighted the positive effects of the synergistic action of cannabis constituents when consuming the whole cannabis inflorescence. However, scientists are continuing to study individual cannabinoids, including CBDA.

Benefits of CBDA

Similar to other cannabinoids, CBDA has antioxidant properties. According to one study by Dawidowicz, et al., “Cannabinoids exhibit antioxidant activity manifested in their ability to scavenge free radicals, to prevent the oxidation process and to reduce metal ions. Although the intensity of these activities is not the same for the individual cannabinoids it is comparable for all of them with that of E vitamin.” [1]

In a study by Rock, et al., CBDA in conjunction with tTHC effectively treated acute and anticipatory nausea in rats. The study showed the psychotropic effects of THC, but no mind altering effects were found for CBDA. Additionally, CBDA has the potential to reduce the intoxicating effects of THC when the two cannabinoids are combined at higher doses. [2]

When studies showed the impact of the endocannabinoid system on obesity,[3] it became apparent that certain cannabinoids would impact weight. THC is known to stimulate appetite, but research is still coming out on the impacts of other cannabinoids on weight gain versus loss.

CBDA is difficult to stabilize. However, “a new derivative, CBDA-O-methyl ester (HU-580, EPM301), was synthesized […]. EPM301 may have therapeutic potential for the treatment of both diet-induced obesity (DIO) and genetic-induced obesity (GIO),” according to a study by Ben-Cnaan, et al. [4]

Another benefit of CBDA is the potential ability to inhibit and/or treat COVID-19. [5].

Nevertheless more studies should be done in order to assess if the CBDA inhibitory activity can be potenziated by complex mixtures of plant extracts or if the enhanced effectivity is linked to cannabinoids taken individually.[5]

The pure amount of research already published in animal studies is promising enough to warrant the study of cannabinoids, specifically CBDA, in humans. Especially with the specific synthesized stabilized CBDA product (EMP301).

References:

[1]  Dawidowicz, A.L. et al. CBG, CBD, Δ9-THC, CBN, CBGA, CBDA and Δ9-THCA as antioxidant agents and their intervention abilities in antioxidant action. Fitoterapia (2021) ; 152. Doi: 10.1016/j.fitote.2021.104915. [Journal impact factor=2.882] [Times cited=10][2]  Rock, E.M.m et al. Effect of combined doses of Δ9-tetrahydrocannabinol (THC) and cannabidiolic acid (CBDA) on acute and anticipatory nausea using rat (Sprague- Dawley) models of conditioned gaping. Psychopharmacology (2015); 232 (4445-4454). Doi: 10.1007/s00213-015-4080-1. [Journal Impact Factor=3.424] [Times cited=29][3]  Rossi, F., et al. Role of Cannabinoids in Obesity. International Journal of Molecular Sciences. (2018); 19(9). Doi: 10.3390/ijms19092690. [Journal Impact Factor=5.923] [Times cited=62]

 

[4]  Ben-Cnaan, E. et al. The Metabolic Efficacy of a Cannabidiolic Acid (CBDA) Derivative in Treating Diet- and Genetic-Induced Obesity. International Journal of Molecular Sciences. (2022);  23(10), 5610; doi: 10.3390/ijms23105610. [Journal Impact Factor=5.923][5] Van Breemen, R.B., et al.Cannabinoids Block Cellular Entry of SARS-CoV-2 and the Emerging Variants. Journal of Natural Products. (2022); 85(1) 176–184. Doi: 10.1021/acs.jnatprod.1c00946. [Journal impact factor=4.05] [Times cited=13]

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In Virginia, CBD age restrictions resurface in the state’s budget

Hemp advocates in Virginia are pushing back against a proposed budget measure they say would restrict sales of CBD to ages 21 and up, reports Hemp Today.

The budget bill is before Virginia Gov. Glenn Youngkin now. And according to state and national hemp associations, if the governor doesn’t amend part of the bill before signing it, full-spectrum CBD and other non-intoxicating cannabinoids will be subject to the same age restrictions as alcohol and tobacco.

“[The budget] would limit any hemp extract, food with hemp extract, or ingestible or inhalable substances, with any amount of THC, to persons 21 or older,” the U.S. Hemp Roundtable wrote. “Age restrictions such as this send an inaccurate and inappropriate message to consumers: that these non-intoxicating health and wellness products are dangerous or should be associated with a vice of some sort.”

“Age restrictions such as this send an inaccurate and inappropriate message to consumers: that these non-intoxicating health and wellness products are dangerous or should be associated with a vice of some sort.”

— U.S. Hemp Roundtable

In addition to concerns about the policy impacts of the bill, the Virginia Hemp Coalition (VHC) expressed disapproval that proposals rejected by the state legislature were resurfacing unexpectedly as part of the budget.

“The budget bill is supposed to be used for the budget …,” the VHC said June 1 on Facebook. “The way in which this was done is unacceptable. Adding this type of language to the omnibus budget bill is not the way legislation with criminal penalties and regulations should get signed into law.”

The budget bill also proposes recriminalizing delta-9 cannabis by making public possession of 4 to 16 ounces a misdemeanor, according to The Center Square. Under current law, public possession between 1 and 16 ounces is only a civil penalty.

“The way in which this was done is unacceptable. Adding this type of language to the omnibus budget bill is not the way legislation with criminal penalties and regulations should get signed into law.”

— Virginia Hemp Coalition

The VHC said it supports age restrictions for intoxicating cannabis, including hemp-derived THC isomers like delta-8. However, the organization wrote in a June 2 Facebook post, “this bill goes way too far by including anything with even a trace amount of THC — which all natural hemp products will have.”

The bill includes safety measures for hemp extracts that are widely considered necessary and not controversial: product testing requirements, standards for labeling and ensuring packages don’t appeal to children, according to Hemp Today.

However, JM Pedini, executive director of the Virginia chapter of the National Organization for the Reform of Marijuana Laws (NORML) told Hemp Today the proposed THC regulations are restrictive without fully addressing consumer safety.

According to Pedini, the budget bill’s proposed safety measures require only basic testing and labeling standards for otherwise unregulated products, leaving loopholes that allow synthetic cannabis and high-THC products to remain outside the regulatory regime of legal cannabis products.

“Rather than creating additional ways to criminalize Virginians for personal possession of cannabis, the Virginia General Assembly would better serve constituents by establishing a legal adult-use marijuana market and ensuring that all cannabis products sold in the Commonwealth are accurately labeled and regulated for consumer safety,” Pedini said.

As for the age restrictions on CBD, the Virginia Hemp Coalition is hoping citizen input can change the governor’s mind. June 2 on social media the organization encouraged supporters to reach out to Gov. Youngkin as well as the secretary of agriculture and secretary of commerce, asking them to amend that section of the budget.

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It’s official: Minnesota governor signs hemp THC edibles law

U.S. Hemp Roundtable calls law ‘mostly good’ but vows to fight age restrictions on CBD.

Minnesota Governor Tim Walz signed legislation June 2 setting limits on THC in hemp edibles. The law will take effect August 1.

As previously reported by Nothing But Hemp, the law is cause for celebration within the state’s hemp industry because it formally legalizes products within the new limits. The legislation allows up to 5 milligrams hemp-derived THC per serving in food products and beverages — including delta-9 THC sourced from hemp.

“Right now we have clarity in the industry, which is exactly what we were looking for,” Nothing But Hemp co-founder Steven Brown told WCCO News.

For the last two to three years, gummies and extracts containing hemp-derived THC have been available to Minnesotans as part of an unregulated gray market, technically legal under the 2018 Farm Act. But the threat of bans and product seizures loomed. Supporters of the new law have pointed out that the regulations give retailers certainty while ensuring products on shelves are tested for contaminants and not marketed to children.

The new law also officially makes edibles and drinks containing non-intoxicating cannabinoids like CBD legal. These have become increasingly popular in Minnesota since the passage of the Farm Act, but have been subject to some scrutiny by the state’s Board of Pharmacy because they’re not yet approved or regulated by the federal Food and Drug Administration. A 2021 appeals court ruling also put into question the legality of extracts containing any THC, even the trace amounts found in CBD. This law clarifies the issue.

Lastly, the new law sets a 21-and-up age restriction for all hemp-derived cannabinoid products, intoxicating or not.

The U.S. Hemp Roundtable, a nonprofit advocacy organization, sees the legislation as a step in the right direction except for the age restrictions on non-intoxicating cannabinoids.

“While the law is mostly positive, we will mobilize next year to ensure the age restriction does not apply to non-intoxicating hemp products,” the Roundtable wrote in an update to its supporters.

“While the law is mostly positive, we will mobilize next year to ensure the age restriction does not apply to non-intoxicating hemp products.”

— U.S. Hemp Roundtable

The Roundtable said changes to the bill during the legislative process had improved it. The original version of the bill, HF 3595, stalled in the legislature until it was added to an unrelated bill about long-term care consultation services, according to the Roundtable. That bill, HF 4065, passed the Senate in a 66-0 vote and the House in a closer contest, 68 for and 65 against, on May 22.

“The good news is that HF 3595’s original language was significantly improved in HF 4065,” the Roundtable wrote in the days between the bill’s approval by legislators and its final signature into law. “Under the new language, edible cannabinoids products with 0.3% or less THC may be sold, subject to labeling, packaging, and testing restrictions. Arbitrary and onerous THC limits were increased to 5mg per serving/50mg per package. And, with the growing trend in states like Michigan and Oregon, intoxicating cannabinoids under these THC limits are restricted to adults only.

“Unfortunately,” the Roundtable continued, “the legislature used a bit too broad a brush and swept all hemp-derived cannabinoid products into the 21 or older restriction lane.”

Brown of Nothing But Hemp was more optimistic.

“Overall, this is going to create new businesses, new opportunities, new products,” he told WCCO. “And it’s going to be really good for consumers.”

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Former Mississippi Governor to Open Medical Cannabis Facility

Jackson, Miss — The former Democratic governor of Mississippi, Ronnie Musgrove, is entering the cannabis industry. Joining forces with a healthcare executive, Musgrove is applying for a state license to operate a medical cannabis testing facility. Musgrove and fellow attorney Quentin Whitwell are seeking to obtain a license to open Magnolia Tech Labs, looking to establish their business in Marshall County.

The Mississippi State Department of Health has begun accepting applications for a new medical cannabis program in the state that will serve growers, processors, medical practitioners, patients, testers, and transportation and disposal providers.

“To me, medical marijuana is … a natural progression of options for health care in Mississippi and America. I mean, to me, it’s obvious that it will eventually be offered in all 50 states,” said Musgrove, as reported by Associated Press.

Mississippi voters overwhelmingly approved a medical cannabis ballot initiative in November of 2020; however, the state Supreme Court invalidated the results in a decision that the initiative was improperly on the ballot.

Musgrove served as Governor of Mississippi from January 11, 2000, through January 13, 2004. This year Mississippi Governor Tate Reeves signed a bill establishing a medical cannabis program.

Whitewell is the owner of Mississippi businesses Panola Medical center and CEO of Quitman Community Hospital.

Musgrove’s actions are consistent with a trend of former politicians entering the cannabis industry when returning to the public sector.

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The Top 20 Cannabis Firms In Germany In 2022

This list of firms currently operating in the regulated cannabis ecosystem and space in Germany are the top companies in the vertical

Make no mistake – the German cannabis industry is going to morph dramatically over the next 24 months. Recreational legalization changes everything!

However, there is likely to be a direct connection between early movers in the medical and recreational space – just because of certification infrastructure and the need to track and trace product.

Here is an alphabetical list of the top 20 cannabis firms aus Deutschland that you almost certainly have heard about before if you follow events and the industry in Europe. You will definitely be hearing more about them in the near future. They range from cultivation, distribution, and manufacturing companies to those that provide vital equipment for the certified industry. And all of them have weathered the dramatic transition in the market here since 2017.

Alephsana

Based in Berlin, this GDP-certified distributor was founded in 2019 by Boris Moshkovits. The company has had many successes so far, including helping to bring the first Australian cultivated cannabis into the German market. Moshkovits is a dedicated cannapreneur and aspires to help normalize the cannabis pipeline into Germany by sourcing high-quality, certified cannabis globally.

Aphria/Tilray

Aphria was one of the three firms that won authorization to grow cannabis during the German cultivation bid. They subsequently merged with Tilray, but not before also purchasing the sixth-largest mainstream medical distributor in the country (CC Pharma).

Aurora Cannabis

This Canadian public company also won one of the three cultivation slots in the German cultivation bid. The firm has a footprint across Europe at this point. It was one of the earliest public Canadian companies before establishing itself across the EU over the last five years.

Canify Clinics

This new addition to the medical cannabis clinic and telehealth space in Germany (but an established company in the Danish cannabis space) is entering the market at an interesting time – and going up against several more established competitors. With clinics opening this year in Berlin, Munich, Dusseldorf, and just south of Frankfurt, the firm also just acquired a German GDP distributor.

Cannamedical

Based in Cologne, the company was one of the first independent, certified, GDP distributors in the country. Founded by David Henn, the company has consistently been at the forefront of industry trends.

Cannovum

Germany’s first publicly traded distributor, importer, and manufacturer, based in Berlin, also has the distinction of being helmed by one of the few women executives in the industry, Pia Marten. The company has also established a Portuguese subsidiary, which is a joint venture with local partners to initially distribute medical cannabis to Portuguese pharmacies.

Cansativa

Located in Frankfurt, Cansativa won the tender issued by BfArM to become the sole distributor for medical cannabis grown in Germany. The company has now successfully raised two rounds of financing, the last from American cannapreneur and rapper, Snoop Dogg.

Cantourage

The founders of the company have extensive experience in the German cannabis industry. They originally founded Pedianos (later acquired by Aurora) as Germany changed its medical law to include cannabis. Cantourage is their second cannabis company. They are also continually bringing in cannabis and cannabinoid medicines from various parts of the world.

Demecan

Demecan remains the only German-founded cannabis cultivation company. The three founders managed to acquire the license won by Canadian Wayland as the company merged with ICC: Currently they are growing cannabis for the German medical market.

Drapalin Pharmaceuticals

Founded in Munich in 2017 by four childhood friends, the wholesaler and GDP distributor is currently importing cannabis from Lesotho for distribution mainly in Bavaria. The firm also has a range of CBD extracts.

Harter GmbH

Harter does not cultivate or distribute cannabis products – but they do something almost as important. They build drying systems for certified cannabis, with an eye toward also creating a carbon-friendly footprint for the process. The firm has established a global customer base.

HERBLIZ Berlin/NGP Berlin

Berlin-based Herbliz is a CBD extractor. Inspired by his time in California, founder Alexandr Golubev dreamed of doing the same thing in Germany. Its mission is to reinvent the CBD and beauty industry sustainably. The products have national and international distribution.

Khiron

Khiron is an interesting hybrid. It is a Canadian public company with cultivation based in Columbia combined with a strong European presence (in Frankfurt). The company is a producer and distributor of medical-grade cannabis and commercial CBD products and is also opening specialty clinics in key markets, starting with Latin America and the UK.

LIO Pharmaceuticals GmbH

Based just outside of Düsseldorf in Solingen, Lio is currently a GDP distributor with plans to become Germany’s first GMP white label extraction factory. The company is currently building out its manufacturing facility and distributing medical-grade product.

Nimbus Health/Dr. Reddy’s

Nimbus, founded by two millennial friends in Frankfurt, established itself as a medical specialty distributor in the center of European banking and finance. The company was acquired at the beginning of 2022 by Dr. Reddy’s, a globally known Indian wellness and generic pharmaceutical company.

Sanity/Vayamed

Vayamed is the medical arm of Sanity, a well-funded cannabis enterprise founded by Finn Age Hansel, who came originally from Rocket Internet, a phenomenally successful internet company. The firm has not only raised millions of euros (including from American investors) but now has CBD products in distribution as it works to develop its own proprietary medicines.

Storz and Bickel

This eponymous firm is well known globally for its vape products – starting with the ever-amazing “Volcano.” The firm also has the most widely used medically certified vape in the German market. Canopy Growth bought the firm in 2018.

Synbiotic

This holding company is comprised of a current portfolio of four firms it has acquired on an aggressive purchasing spree over the last several years including Hempamed, Solidmind Group GmbH, BioCBD, and Cannexo GmbH. The company is establishing a broad footprint across the CBD and medical cannabis space with an eye to the opening recreational market.

WEECO

WEECO is a certified pharmaceutical distributor based in lower Saxony, with an international presence in Denmark, Switzerland, and Greece, selling cannabis-based products worldwide. The company’s mission is to “revive healing powers of Cannabis and help to establish a reliable supply structure for industry and patients.

Four20 Pharma

Located in Paderborn, the company holds a wholesale pharmaceutical license and currently specializes in the distribution of medical-grade dried flower cannabis as well as certified medical devices. They are currently partnered with both Dutch Bedrocan and Israeli firm Kanabo.

This article first appeared on Internationalcbc.com and is syndicated with special permission

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Felony possession charges dropped against Texas hemp grower

But the business is likely closed for good.

Texas prosecutors have dropped felony drug possession charges against a licensed hemp grower in the state, reports the Dallas Observer. However, the founders of Sky & Hobbs Organics say the raids and legal process have destroyed their business, likely permanently.

2021: Raids and a Felony Drug Charge

About an hour’s drive south of Dallas, lifelong friends Hunter “Hobbs” Robinson and Skyler “Sky” Purcell were growing and selling hemp flower rich in the non-intoxicating cannabinoids CBD and CBG.

Robinson, a military veteran, had started using CBD after Purcell suggested it might help with post-traumatic stress disorder and arthritis. A couple years later, in 2020, the pair obtained a hemp license from the Texas Department of Agriculture and ventured into the CBD business. By spring of 2021, sales were solid and they saw potential for Sky & Hobbs to grow into a multimillion dollar operation.

Then, in early June, the Navarro County Sheriff’s Office raided their indoor hemp farm. Robinson reportedly tried to show them paperwork from the Texas Department of Agriculture proving that the operation was licensed and legitimate.

Undeterred, law enforcement seized both plants and finished product.

“[T]heir plants were cut to the stem and their bags of bud were gone, along with their business,” Jacob Vaughn wrote for the Observer in April. Robinson and Purcell were not allowed to enter the property, cutting them off from doing business or recovering their supplies.

“Had they just called us, we would’ve let them in,” Purcell told the Observer. “We wanted to educate … everyone, including law enforcement.”

The sheriff’s office later claimed the samples tested above the 0.3 percent delta-9 THC limit that serves as the line between hemp and illegal forms of cannabis in the state.

After a second raid and seizure in August, Robinson was arrested and charged with felony possession of marijuana.

2022: Move to Dismiss

According to the Observer, prosecutors moved to dismiss the charge on May 20, 2022, saying that evidence supported the claim that Robinson’s hemp was hot — but they couldn’t prove he meant to grow or distribute cannabis high in THC.

“There is evidence to show that [Robinson] was in possession of marijuana that contained more than .3 percent concentration of tetrahydrocannabinol, however, there is insufficient evidence at this time to prove that [Robinson] intended to possess, produce, or distribute, marijuana that contained more than .3 percent concentration of tetrahydrocannabinol,” reads the motion.

Of three product samples seized, one had 0.378 percent delta-9 THC and another had 0.468 percent, the Observer reported based on findings from the sheriff’s office.

The 0.3 percent limit is a trace amount many growers and processors have pushed against. Evidence suggests THC produces no psychotropic effects in concentrations under 1 percent, and possibly higher, according to the Congressional Research Service.

The origins of the 0.3 percent limit go back to 1976, when Canadian horticulturalists Ernest Small and Arthur Cronquist sought to distinguish hemp from other cannabis. The pair of scientists made it clear the distinction was arbitrary, as documented by Hemp Grower.

To that end, “safe harbor” provisions allow for variations in THC levels up to 1 percent, although hemp crops testing above 0.3 percent are to be destroyed.

“The grower can only face criminal charges if their crop tests at more than 1% THC and the state can prove they did it deliberately …” Vaughn wrote for the Observer.

The Dallas Observer first reported the story of the raid and charges in April 2022. At that point the two had been attempting to deal with the issue on their own, quietly, for nearly a year.

“Law enforcement in Navarro County wouldn’t listen until Sky & Hobbs began speaking up about their case to the media and advocates in the hemp industry,” Vaughn wrote in a June 1 follow up, reporting on the dropped charges.

Purcell — the “Sky” in Sky & Hobbs — told the Observer they were “beyond thankful that the state of Texas and Navarro County decided to dismiss Hunter’s pending felony charges,” even though the business had no plans to reopen.

Robinson — “Hobbs” — told the Observer, “The financial and emotional devastation that this has caused will not allow Sky & Hobbs to continue operating. Until there is protections for those investing into this industry, I personally am staying as far away from it as possible. This could have happened to any of us.”

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