Today in cannabis news: The DEA is finally ending its cannabis research monopoly, Colorado cannabis regulators have banned hemp-derived and synthetic forms of THC, including Delta-8 and Delta-10 THC, from being sold in licensed dispensaries, and Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, signed definitive documents to acquire the largest outdoor grow in Colorado.
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** First up: The Drug Enforcement Administration (DEA) last week notified several companies that it is moving toward approving their applications to become federally authorized cannabis manufacturers for research purposes.
This is an important development—and one of the first cannabis-related moves to come out of the Biden administration. There is currently a monopoly on federal cannabis cultivation, with the University of Mississippi having operated the only approved facility for the past half-century.
It was almost five years ago that DEA under President Barack Obama first announced that it was accepting applications for additional manufacturers. However, no approvals were made during the Trump administration. And the delay in getting acceptances has led to frustration—and in some cases, lawsuits—among applicants.
But Last week, organizations including the Biopharmaceutical Research Company, Scottsdale Research Institute and Groff NA Hemplex LLC were notified by the agency that their requests were conditionally accepted. It’s not clear how many applicants the DEA has contacted thus far.
** Next up: The Colorado Marijuana Enforcement Division (MED) has banned hemp-derived and synthetic forms of THC – including Delta-8 and Delta-10 – from licensed dispensaries in the state. In a letter to industry operators, regulators cited safety concerns while also banning the compound from food, dietary supplements, and cosmetics.
The letter further clarified that the only solvents allowed in the cannabis extraction process are butane, propane, CO2, ethanol, isopropanol, acetone, heptane, ethyl acetate, and pentane; and using “acids, bases, catalysts, or other unapproved reagents to extract, isolate or convert CBD, THC, or other cannabinoids is not permitted.”
Neither Delta-8 THC nor Delta-10 THC is specifically outlawed by the federal Controlled Substances Act and the cannabinoids are essentially created by converting CBD into THC with acetic acid, according to Westword.
Several states, including those with legalized cannabis such as Alaska and Vermont, have banned Delta-8 and Delta-10. Washington state has implemented a temporary prohibition on the compound. Lawmakers in Illinois and Oregon are also considering their own bans.
** Last up: Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, signed definitive documents to acquire the Los Sueños Farms and its related entities, the largest outdoor grow in Colorado. This will significantly expand Curaleaf’s Colorado presence, vertically integrating in the state with large-scale outdoor cannabis cultivation. The proposed transaction includes three Pueblo, Colorado outdoor cannabis grow facilities covering 66 acres of cultivation capacity, including land, equipment and licensed operating entities, an 1,800-plant indoor grow and two retail cannabis dispensary locations serving adult-use customers.
The acquisition will complement Curaleaf’s existing Colorado presence through its Select brand. Select is known as America’s No. 1 cannabis oil brand, with a variety of best-in-class cannabis products distributed to nearly 2,000 locations across 18 states.
Curaleaf CEO Joseph Bayern said, “The acquisition of Los Sueños will add over 50,000 pounds per year of low-cost wholesale capacity to Curaleaf’s footprint in Colorado, which we intend to double to over 100,000 pounds, representing a significant market share. As the largest producer of biomass in the state, this facility will also fuel the further deployment of our Select product line, which can already be found in 230 independent dispensaries in the state.”
