BEYOND THINK MARCH 2021 - Issue #2 - ACS Lab Cannabis
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THINK BEYOND MARCH 2021 Issue #2 WHAT’S INSIDE Extracted Series: Hydrocarbon Extraction coming to Florida soon COVID & Cannabis Research: March Update! A guide to THCv (Diet Weed): Extraction, Storage, Price, Consumption and More
MARCH 2021 ISSUE #2 TABLE OF CONTENTS DEA Update, Plus Everything 3 FOREWORD 18 You Need to Know About THC Delta 8 Extracted Series: Hydrocarbon 4 Extraction coming to Florida soon 22 MEDIA MENTIONS 8 COVID & Cannabis Research: March Update! 26 About The Lab A guide to THCv (Diet Weed): 10 Extraction, Storage, Price, Consumption and More 27 Tested Verified Product Seals Banking Options For US-Based 14 Cannabis and Hemp Companies 28 42 Emerald Badges 2
MARCH 2021 ISSUE #2 FOREWORD On March 1st, the USDA’s Final Rule was supposed to take effect, providing long-awaited clarity for hemp cultivators in states without federally approved programs. The USDA’s Rule says farmers can have up to 30 days prior to harvest to send clippings for compliance tests by a State approved, ISO-accredited Laboratory. The Rule also expands the margin of error in THC test results before crops get deemed hot. Unfortunately, the Rule is currently on hold per the presidential administration–a major blow to farmers in states like New York and California. Additionally, states that created USDA-approved hemp programs prior to the Final Rule’s updates will likely continue enforcing regulations based on the original interim guidance. Florida for example is continuing to enforce a 15-day rule for hemp clippings. While the federal government continues to drag its feet on hemp, Florida is, fortunately, moving forward with expanding medical marijuana access in the state. Did you know there are nearly half a million medical marijuana patients in Florida today? And every month, tens of thousands more people qualify for medical cards to treat ailments ranging from PTSD to terminal cancer. These patients need access to high-quality, affordable medication. But until recently, Florida’s Office of Medical Marijuana Use (OMMU) limited access by restricting processers to solventless, ethanol, and CO2 extraction methods only. Their intentions were pure–regulators wanted to be sure patients only received clean products, free from harmful residual compounds. The problem was they inadvertently eliminated one of the most popular, cost-effective, and high-quality methods around–hydrocarbon extraction. Fortunately, the OMMU recently issued an interim rule adding hydrocarbons to the list of allowable solvent-based extractions. We think that’s a major win for Florida patients who may soon have expanded access to safe and affordable medication. On a global scale, we’re also thrilled about the growing clinical research showing cannabis could help treat or prevent COVID-19’s worse symptoms. Nearly a year ago, we began reporting on scientific theories surrounding CBD’s potential to prevent cytokine storms–the hyper-inflammatory response that can lead to death in certain COVID cases. Since that time, scientists from the U.S. and Canada, to Israel and India have conducted multiple in vitro and human-based studies using CBD extracts, high CBD strains, THC, and terpenes to determine how these cannabinoids can support natural recovery. Today, scientists in partnership with cannabis companies have published multiple reports and developed potential medications that may enter the market in the near future. While the FDA hasn’t approved anything yet, the proof of concept is mounting, and we are thrilled to be on the forefront of reporting the cutting-edge developments. Roger Brown President & CEO 3
MARCH 2021 ISSUE #2 EDUCATION Extracted Series: Hydrocarbon Extraction coming to Florida soon Elena Schmidt | March 1, 2021 has been extracting cannabis with hydrocarbons since the early days of glass tubes and butane cans. Let’s hear it, Dan. FIRST OF ALL, WHAT IS HYDROCARBON EXTRACTION? In a nutshell, hydrocarbon extraction is a method to extract cannabinoids and terpenes from cannabis plants using hydrocarbons such as N-butane, isobutane, Image Credit: leafly.com (not a product endorsement) propane, pentane, and heptane. For the Propane and butane sound like volatile most part, we use butane and propane only. compounds you never want to ingest. In WHAT’S THE PROCESS OF fact, if you knew a cannabis extract HYDROCARBON EXTRACTION? contained these hydrocarbons, you might opt for a “cleaner” product instead. But the We like to start with frozen cannabis truth about hydrocarbon extraction lies material, cured (dried) or fresh, which we somewhere between understandable pack in columns and connect to our skepticism and the reality that propane and extraction machine–specifically a collection butane are quite safe at low levels. Florida’s tank. Throughout the process, we utilize lawmakers agree, which is why the Office of heavy-duty chillers to keep the solvent Medical Marijuana Use (OMMU) recently between -80 degrees Celsius and -100 added Hydrocarbons to its list of allowable degrees Celsius when needed. solvents for low-THC and Medical Marijuana After setup, we flood the plant-material extraction in a draft rule. column with the hydrocarbon solvents until You might still be suspicious or think other it’s full. Then we turn the upper valve off extraction methods are superior. We had and open the bottom valve to move all the our share of questions too. So we reached cannabinoid-rich solvents into the collection out to Dan Lavarini, the Chief Scientific vessel. Once we move the solvent and oils, Officer at Coachella Manufacturing in we heat the mixture to a boil, converting the California. A former aircraft engineer, Dan solvent from a liquid to a gas. 4
MARCH 2021 ISSUE #2 Hydrocarbon extraction preserves the plant’s broad spectrum of compounds, ensuring consumers and patients get the People say “solventless,” but the most therapeutic value while also removing process is not genuinely undesirables like chlorophyll, cellulose, solvent-free. non-oily fats, and waxy lipids. HOW IS HYDROCARBON EXTRACTION DIFFERENT FROM SOLVENTLESS EXTRACTION? We then force the resultant gas back into the solvent tank and get it cold enough to People say “solventless,” but the process is recondense it back into a liquid. As that not genuinely solvent-free. The highest happens, the oil solvent mixture becomes quality “Solventless” extraction utilizes thicker and thicker until we only have a water, instead of hydrocarbons, to initially trace amount of residual solvent left. From make bubble hash, and that extract is there, we pour the solution out of the pressed and heated to produce oil. The machine and begin producing the end water is essentially the solvent, which is product– shatter, butter, sugar, diamonds, very safe. But when you wash the water or vape oil, for example. from the cannabis material, you also wash a bit of the flavor and fragrance. Solventless IS HYDROCARBON EXTRACTION THE extraction is a detailed, artisanal process BEST METHOD FOR ALL CANNABIS that produces quality products, no doubt. PRODUCTS? But solventless extracts are extremely Today we consider two types of extraction expensive–nearly twice the cost of to be the most effective at producing the hydrocarbon extracts. For a gram of absolute highest-quality product. One solventless extract, consumers will pay extraction type is solventless, and the other $100 to $175. The juice just isn’t worth the is hydrocarbon extraction. We prefer squeeze. hydrocarbon solvents because we can To be clear, many people will disagree with extract more terpenes and preserve the us and tout solventless extraction as the flavor better at a more affordable cost than highest-grade process around. But when solventless. With hydrocarbon extraction, you compare the same product propane and butane can quickly liquify back-to-back, one produced through cannabis compounds into themselves and solventless and the other through carry them away in a very gentle and cold hydrocarbon extraction, you can manner. We extract at near absolutely tell the difference in the aroma’s cryo-temperatures, close to -100 degrees potency. Celsius, which helps preserve the plant’s integrity. HOW IS HYDROCARBON EXTRACTION DIFFERENT FROM CO2 EXTRACTION? I would go so far as to say hydrocarbon is our preferred extraction method for Hydrocarbon extraction is starkly different producing cannabis products. Why? from CO2 extraction. In the past decade, CO2 has become immensely popular, but it 5
MARCH 2021 ISSUE #2 Image Credit: weedmaps.com (not a product endorsement) | Gina Coleman/Weedmaps is a harsh method that uses very high the broader spectrum of cannabinoids and pressure–over 10,000 PSI. As a result of that terpenes in the process. pressure, you have a lot of added heat, IS IT SAFE TO INGEST CANNABIS WITH which can degrade the compounds’ integrity. Additionally, after you extract with HYDROCARBON SOLVENTS? CO2, technicians must conduct Butane and propane are natural organic post-processing steps to remove the water substances. They existed on this planet content, excessive fats, and lipids to make before we figured out how to isolate and the extract smokable. These extra steps push them into a tank. They are very similar result in higher processing costs and to cannabis’s organic terpenes and increase the risk of cross-contamination. cannabinoids, which are also types of hydrocarbons. That doesn’t mean you The last few years have shown a shifting should ingest butane or propane in excess, trend in the extract market that has caused but our products contain between 0 and many issues for people who have invested 100 parts per million (ppm). significant time and financial resources into systems that are becoming obsolete. We To provide more context, California’s safe, have seen the California market shift heavily legal limit on propane and butane is 5,000 to hydrocarbon and solventless extraction parts per million. Some of the most and away from CO2. Some still use CO2 dangerous and closely regulated pesticides extraction, but they ultimately follow up with like Fipronil have a tolerance of zero ppm. a distillation process afterward, which However, due to a testing lab’s detection means they risk over-purifying and losing limit, the actual limit becomes less than 6
MARCH 2021 ISSUE #2 .0007 parts per million. In short, California considers residual solvent hydrocarbons to be over 7 million times safer than the most dangerous pesticides. Additionally, if you have ever taken a breath while lighting a Hydrocarbon extraction holds propane grill and noticed the smell of gas, you have inhaled thousands of times more the potential to create hydrocarbons than you could ever get from high-quality cannabis products the products we make. that Florida patients can afford. HOW DOES YOUR HYDROCARBON EXTRACTION PROCESS DIFFER FROM THE INDUSTRY STANDARD? We use the industry-standard process. laboratory test for residual solvents, it will However, we take extra care to purge the not make it to shelves or into a consumer’s residual solvents slowly and gently avoid hands due to regulations. To be sure, stripping the cannabinoids and terpenes consumers can check products’ test results away with them. We utilize a multi-day by looking up their Certificate of Analysis method to preserve cannabis’s incredibly (COA). pungent aroma and therapeutic compounds while ensuring we leave no Aside from residual solvents, people are more than 100 ppm of residual solvents mainly concerned with hydrocarbon fire behind. risks. Due to propane and butane volatility, hydrocarbon extraction can present a When companies rush the process, two serious fire hazard if managed improperly. outcomes can occur: Either they preserve But most of the headline-making horror the plant’s flavor, aroma, and profile, stories come from DIY-ers working out of leaving thousands of ppm of solvent their garages. In reality, modern hash labs behind, or they strip the plant of its that use proper equipment and protocols naturally odorous compounds to ensure rarely have an issue. their products contain zero residual solvents. Both outcomes leave you with THE BOTTOM LINE safe, legally compliant products. But they Hydrocarbon extraction holds the potential force you to sacrifice quality. to create high-quality cannabis products that Florida patients can afford. At ACS, we WHAT ARE THE POTENTIAL DANGERS are thrilled that Florida’s Office of Medical OF HYDROCARBON EXTRACTION? Marijuana Use expanded its definition of Residual solvents are a potential danger in safe and legal extraction methods to any solvent-based extraction. That’s why include hydrocarbon extraction, and we we have safe manufacturing standards, look forward to testing all products to legal safety limits, and stringent lab testing ensure they are 100% safe. requirements in place. If a product fails a 7
MARCH 2021 ISSUE #2 EDUCATION CANNABIS & COVID-19 RESEARCH: March Update! Elena Schmidt | March 2021 [NEW STUDY] PATHWAY RESEARCH UNCOVERS MORE EVIDENCE THAT CANNABIS CAN CALM CYTOKINE STORMS A new Canadian study conducted by Pathway Research Inc., the University of Calgary, and the University of Lethbridge shows further evidence that components in the cannabis plant can help calm the cytokine storm that plays a key role in Image Credit: oracle.com/ph inflammatory disease. in calming the most destructive Since the coronavirus pandemic, the term cytokines relating to inflammation. “cytokine storm” has become a While these strains are not yet on the mainstream way of describing some of market, the researchers provided the the most severe COVID-19 respiratory cannabinoid profiles in their report symptoms caused by this devastating published in the journal Aging. The strains inflammatory event. According to the contained different combinations of CBD research findings, cannabis extracts can and THC along with lesser-known curb the chemicals involved in the cannabinoids and terpenes that the process. authors believe are crucial to their The study used artificial human skin anti-inflammatory power. exposed to UV rays to induce inflammation. The team then used several [NEW STUDY] CANNABIS PLANT strains of cannabis to check how efficient EXTRACT SIGNIFICANTLY REDUCE they are at reducing inflammation. The COVID-19 INFLAMMATION researchers already knew the types of Canadian researchers recently conducted cultivars that had the most a study to see whether cannabis extracts anti-inflammatory efficacy when the can help reduce the host cell receptor study began. So they were able to levels that SARS-CoV-2 clings on to while choose strains they thought likely to work entering the body. Researchers at the the best. The results point to three University of Lethbridge developed specific strains that have a high efficacy hundreds of new Cannabis Sativa 8
MARCH 2021 ISSUE #2 cultivars and tested 23 extracts on [EPIDEMIOLOGICAL STUDY] artificial human models of intestinal, oral, PATTERNS AND TRENDS OF and airway tissues. The study found that CANNABIS PATIENTS DURING THE 13 high-CBD extracts were able to COVID-19 PANDEMIC downregulate the expression of the SARS-CoV-2 host cell receptor Professor Denise C. Vidot’s team angiotensin-converting enzyme 2 (ACE2). completed the study and published the results in the Journal of Addictive While the most effective extracts require Diseases. As part of the study, 1,200 more large-scale testing, the study is adults reported their medical cannabis crucial for future research on the effect of use in the past year with an cannabis for COVID-19. Researchers internet-based questionnaire between believe that downregulating the ACE2 March and April 2020. The levels in the gateway tissues might be a most-reported conditions were mental feasible way to decrease susceptibility to health (76.7%), pain (43.7%), the disease. cardiometabolic (32.9%), respiratory (16.8%), and autoimmune (12.2%) [CLINICAL TRIAL] CARDIOL conditions. THERAPEUTICS BEGINS PHASE II/III STUDY OF A CBD PHARMACEUTICAL Participants with mental health Cardiol Therapeutics announced in late conditions reported an increase in their January the formation of a Data Safe medical cannabis use by 91% since the Monitoring Committee (DSMC) and a beginning of the pandemic, compared Clinical Endpoint Committee (CEP) for the with those who did not report mental phase II/III outcomes trial in high-risk health conditions. 16% of participants patients hospitalized with COVID-19. changed their method of cannabis administration from smoking to The DSMC includes independent experts nonsmoking forms. who will assess patient safety data and critical efficacy endpoints of the trial. To The researchers concluded that the do this, they may review unblinded study majority of medical cannabis users information during the trial. After reported at least one preexisting health reviewing the data, the DSMC will advise condition. And over 50% of them on recommendations for protocol reported fear of getting a COVID-19 modifications if there are safety concerns. diagnosis and giving it to someone else, The DSMC will also conduct an interim but only some changed from smoking to analysis to determine if there are enough non-smoking methods of use as a result patients in the study to achieve statistical of transmission fears. significance or if they need to enroll more The study’s researchers suggest people in the trial. clinicians consider asking their patients In short, this study is moving along with about cannabis use, especially those with patient safety at top of mind! chronic health conditions. 9
MARCH 2021 ISSUE #2 EDUCATION A guide to THCv (Diet Weed): Extraction, Storage, Price, Consumption and More Elena Schmidt | May 6, 2020 A GUIDE TO THCV: SHOULD YOU SELL HIGH-THCV HEMP AND CANNABIS? If you checked out our recent blogs on CBN, THCA, CBDA, and CBG, you know that cannabis contains a wealth of therapeutic compounds that rival the likes of its A-list counterparts. While CBD and THC are undoubtedly popular and therapeutically beneficial, they represent merely two cannabinoids in a roster of over 100—each containing its own healing properties. Over Image Credit: cannabisaficionado.com | Gracie Malley time, as legalization expands and research proliferates the scientific community, this generally stimulating and promote mental knowledge has trickled down to industry clarity. They are also fast-acting and experts and consumers at large. fast-dissipating (hence the sports-car Today we focus on one of the most reference). well-known minor cannabinoids, sometimes WHAT ARE THE BENEFITS OF THCV? referred to as the “sports car” of cannabinoids. Not to be confused with THC, One key benefit mentioned above is that THCV is gaining the spotlight due to its THCV acts fast to produce its energizing energizing qualities and potential to target psychoactive effects. It also dissipates fast, obesity. Let’s explore further. which can be a huge benefit for those who don’t want to experience the effects for long WHAT IS THCV? periods of time. In addition to its cognitive THCV is a cannabinoid that was first effects, THCV also exhibits profound discovered in the early 1970s and is relatively medicinal value in studies to date. common in cannabis plants. Though it isn’t as OBESITY AND WEIGHT LOSS popular as CBD and THC (yet), we have years of research to support its upcoming claim to THCV is a well-studied appetite suppressant, fame. which may offer relief for people experiencing obesity. Some research CAN THCV GET YOU HIGH? indicates that low doses (5 to 7.5 milligrams) The answer is yes it could, but with an can reduce appetite by inhibiting the action important caveat: THCV is only psychoactive of CB1 receptors. Other research, such as this in extremely high doses, similar to CBN. At study by the Journal of high doses in potent strains, THCV will Neuropsychopharmacology, suggests that produce psychoactive effects that are THCV may be an effective weight-loss compound because it improves connectivity 10
MARCH 2021 ISSUE #2 in the areas of the brain that are generally back is THCV’s ability to suppress tremors altered in people with obesity. This study associated with illnesses such as ALS, supported THCV for weight loss but did not multiple sclerosis, and Parkinson’s disease. support the appetite-suppression theory. Scientific research also supports the fact **It’s important to note that research that THCV can reduce seizures associated supports THCV’s weight-loss qualities only with epilepsy. Moreover, research indicates when it is ingested at low doses. At doses that THVC could reduce not only the high enough to get the person stoned, THCV frequency but also the severity of seizures does not act the same way. In fact, at high when they occur. A study in the Epilepsia doses, THCV may actually increase appetite. journal found that THCV worked when taken during a seizure as well as prior to seizures DIABETES as a preventive measure. There is also evidence that THCV may help A Testimonial shared with David Lamach, those who suffer from diabetes. In 2013, the the maker of Doug’s Varin THC/THCV Nutrition and Diabetes Journal studied products, we discuss later in the post. THCV’s potential effects on Type 2 diabetes in mice. The study found that THCV David, produced an increase in energy expenditure I have MS and it is the only product that is and reduced glucose intolerance in obese a real rescue medicine for me. I take 1 hit mice. THCV also increased insulin sensitivity and if I am having problems walking or in the mice with diabetes. The study with MS fatigue it helps me get a boost concluded that THVC may be a “treatment for about 3 hours. With my MS I lose the against obesity-associated glucose nerve signal from my brain to my limbs intolerance.” Another study in 2016 found and the DV seems to improve the signal. that THCV improved pancreatic cell function It accomplishes this immediately so if I in patients with Type 2 diabetes. am out walking I can get to wherever I ANTI-INFLAMMATORY was going so I carry a disposable with me everywhere. Research indicates that THVC may be a powerful anti-inflammatory agent, which can I also really like it as a mood enhancer. In help stave off a variety of age- and our political climate I can really struggle stress-related illnesses. In a study by the to find some joy. As I am a therapist I find Journal of Pharmacology, researchers found it absolutely vital sometimes to function that THCV helps reduce swelling in mice. without feeling stoned but also not in Moreover, the study found that the mice did despair. DV does that for me. I can’t say not exhibit a tolerance to the cannabinoid, enough good things about it. I have despite ingesting it for four consecutive never recommended it to anyone who days. didn’t love it. Thank you for improving my quality of life. -Bonnie Another animal study in the British Journal of Pharmacology found that THCV, through its HOW DOES THCV WORK? interaction with chemical receptors in the THCV VS. THC body, can decrease signs of inflammation as well as the pain associated with it. At high enough doses, THCV is psychoactive like THC, but most of the TREMORS AND SEIZURES similarities end there. One of the most Another benefit that we have research to interesting differences between the two is 11
MARCH 2021 ISSUE #2 that THCV actually suppresses the appetite IS THCV WATER-SOLUBLE? at low doses, meaning no munchies like you Naturally, THCV is only soluble in oil-based would get from THC. In fact, studies have liquids and does not dissolve in water. That shown that THCV can actually counteract said, science has a solution, and it’s called some of THC’s effects, which is great news nano emulsions (more on that in our for patients who don’t want to get high. water-soluble cannabinoids blog). Through HOW DOES THCV OCCUR? advanced mechanical processes, THCV can break down into nano particles that The chemical structure of THCV is similar to effectively dissolve in water. THC, but it’s actually derived from an entirely different precursor. While most WHAT IS THE BOILING POINT? cannabinoids, including THC and CBD, are THCV’s boiling point is a whopping 428 the byproducts of CBGA (cannabigerolic degrees Fahrenheit—a full 114 degrees acid) synthesis, THCV is the final byproduct higher than THC. As a result, you can prepare of CBGVA (cannabigerovarin acid). CBGV edibles at a higher temperature, but there is converts to THCVA, which eventually a problem with this technique because a becomes THCV when exposed to heat or variety of cannabinoids and terpenes begin light. THCV is most commonly found in pure to vaporize above 245 degrees Fahrenheit sativas originating in Africa, China, Nepal, (meaning you lose out on flavor and effects). Pakistan, India, Thailand, and Afghanistan. On the plus side, it makes things easier if you want nothing but THCV in your edible. HOW DOES THCV WORK IN THE BODY? THCV PRODUCTS Like THC, CBD, and other cannabinoids, WHAT TYPE OF THCV PRODUCTS ARE THCV exerts therapeutic effects through AVAILABLE? interaction with chemical receptors in nearly every system of the body. The two primary THCV can be found in full-spectrum hemp chemical receptors are called CB1 and CB2, and cannabis products, including oils, waxes, which make up what is known as the and edibles. THCV can also be found in Endocannabinoid System (ECS). This system extracts and isolates, and distillates. is involved in regulating a wide range of our DOUG’S VARIN HIGH-THCV VAPES body’s functions required for optimal health. One example is the Doug’s Varin vape line, CB1 receptors are found throughout the launched earlier this year by California body but are concentrated in the brain and Cannabinoids. One of Doug’s Varin vapes is nervous system, while CB2 receptors are THCV-only, and the other combines THCV more prevalent in the immune system. At low with CBD on a 1-to-1 ratio. Both products doses, THCV acts as an antagonist to CB1 contain between 25% and 35% THCV and last receptors, which means it can block some of about half as long as a THC high. David the actions caused by THC such as the Lampach, CEO of California Cannabinoids, indicated that he acted on “strong munchies and intense mental highs. consumer” demand for THCV when he At higher doses, however, THCV activates helped formulate these products. both the CB1 and CB2 receptors, and exhibits Doug’s Varin THCV vape was created to be effects that more closely resemble THC. This energizing and uplifting, with less-intense results in the enhanced euphoric and psychoactive effects than THC alone. The cognitive effects along with therapeutic 1-to-1 vape was created to produce a more value. relaxing, soothing experience. 12
MARCH 2021 ISSUE #2 WHAT ARE SOME OTHER HIGH-THCV and is not a scheduled controlled substance PRODUCTS? in the United States. THCV is federally legal as long as it’s extracted from hemp plants Ace of Spades (A shatter): 2.4% that contain less than 0.3% THC. At a state Agent Orange Nug Run (A shatter): 1.9% level, THCV is also permitted in all cannabis Slim Hash: 38.44% strains where medical and/or adult use is legal. ARE THERE OTHER HIGH-THCV STRAINS? WHAT DOES THCV COST PER KILO? Yes! Although, “high” is a relevant term. Significant levels of THCV are certainly less Currently, THCV is an expensive cannabinoid common than CBD and THC, but in some due to the fact that it is still much rarer to find cases, THCV content may even be higher and has lower yields on average. According than THC. Overall, the most common strains to David Lampach 35% THCV crude sells for with the highest THCV levels are of African about $30,000 per kilogram while distillate and Asian descent, according to the hovers at over $40,000 per kilogram. American Journal of Botany. THCV POTENCY AND TESTING OTHER THCV STRAINS INCLUDE: HOW IS THCV’S POTENCY MEASURED? Doug’s Varin Harmony Pre-Rolls: 3% THCV is measured through potency tests in Flow Kana Pink Boost Goddess: 4.24% the same way potency is tested in CBD, THC, and other cannabinoids are detected. ACS Pineapple Purps: 4% Laboratory uses LCUV, High Performance Durban Poison: 0.5% to 1% Liquid Chromatography with UV detection to ensure that all testing is accurate and Malawi: 0.5% to 1% (estimated) consistent. More high-THCV strains here. WHY DOES THCV MATTER? HOW DO I EXTRACT THCV? The word is getting out about this While THCV is much more expensive to energy-boosting, weight-loss-stimulating, extract due to lower levels of it found in plant anti-inflammatory powerhouse, and THCV biomass, the process is largely the same. Like promises to be one of the cannabis industry’s other cannabinoids, THCV is extracted next big ingredients. Currently, there are few through a chromatography process that uses strains in the market that produce significant superfluid liquid solvents such as CO2 or levels of THCV, so there’s a market gap and ethanol to separate the compounds from the an opportunity, according to plant. The solution is then evaporated with market-research firm Benzinga, to be one of heat under a vacuum to remove all the gas the first companies to market high-THCV and leave a high-purity THCV concentrate strains or extracts. behind. Once extracted, THCV products THCV is a product that invites people of all should be stored at room temperature and kinds to give it a try, especially those who away from direct sunlight to preserve have never tried cannabis because they fear potency. the high and the munchies characterized by THE THCV MARKET THC. Unlike its intoxicating cousin, low levels of THCV provide high energy, mental clarity, IS THCV LEGAL? and appetite-suppressant qualities that may Although THCV looks molecularly identical to even entice the Type A’s among us. Its ability THC, it acts completely differently in the body to draw in a wider crowd of customers is a huge benefit. 13
MARCH 2021 ISSUE #2 EDUCATION Banking Options For US-Based Cannabis and Hemp Companies Elena Schmidt | August 28, 2020 Earlier this year, Colorado became one of they reside in a state that supports the the first places to issue guidance to cause. Here we review the regulatory state-run banks on how to work with legal landscape for hemp and marijuana hemp and cannabis companies. The banking as well as the industry’s most nation’s economic leader in the cannabis canna-friendly institutions. industry later published House Bill 1217, which says “A state chartered bank or a WHAT ARE TODAY’S MARIJUANA credit union may loan money to any BANKING REGULATIONS? person licensed … for the operation of a Federal prohibition makes banking a licensed medical or retail marijuana challenge, if not impossible for marijuana business.” The law takes effect on businesses (MBs) and marijuana related September 1, 2020 and is critical to “get businesses (MRBs). Technically, any cash off [the] streets and improve public money that banks collect from MBs can safety…” according to Colorado’s be considered laundered and therefore at Representative, Ed Perlmutter. risk of seizure by the feds. Banks also risk losing their master account with the This is a huge milestone for Colorado’s Federal Reserve, in addition to facing hemp and cannabis industry that may social scrutiny. All of this adds up to a big trickle into other states as well. But for no thank you from major players like now Colorado’s progressive action is not Chase, Bank of America, and Ocean Bank the norm. It’s an exception in a country who cite the risks are greater than the where hemp is federally legal, medical rewards. marijuana is codified in 33 states, and recreational cannabis is allowed in 13 Despite federal law, the DOJ has said states. Many banks today are hesitant, if they do not plan to prosecute individuals not downright unwilling to work with who operate in compliance with state cannabis due to the lack of regulatory medical (but not recreational) marijuana clarity and financial risks they claim to laws. Moreover the US Dept of Treasury face. Financial Crimes Enforcement (FinCen) has issued guidance for banks on 4 due While this presents a huge challenge for a diligence requirements to legally operate multi-billion dollar industry that’s largely in compliance with the Bank Secrecy Act, cash only, hemp and cannabis companies thereby significantly reducing their risk. do have options. This is especially true if 14
MARCH 2021 ISSUE #2 Image Credit: law.com (not a product endorsement) The most important aspect of this banks to work and operate with MBs guidance are Suspicious Activity Reports without risks of repercussions. (SARS), which banks must complete for Overall, the number of agreeable banks all marijuana related transactions. As of are still the exception to the rule. But today, there have been no documented they do exist and that means legal prosecutions for banks who have medical marijuana businesses have complied with this guidance. options. It’s a matter finding these HOW MANY BANKS WORK WITH canna-friendly institutions. MARIJUANA BUSINESSES? SO WHAT ARE THE BANKING Of approximately 12,000 banks across OPTIONS FOR LEGAL MARIJUANA the country, 710 banks and 150 credit BUSINESSES? unions reported serving marijuana Some marijuana companies have created businesses, according to the latest March accounts with one of the 700+ willing update from FinCEN. This number is banks, and can accept debit and credit card slightly down from the previous quarter, payments as a result. These businesses but up by nearly 200 from the same time generally have highly established internal last year. Credit unions also seem to be financial and compliance measures and can on a continuous–albeit gradual rise in provide thorough records to banks to prove cannabis clients. it. Marijuana companies can find at least This slow slog to progress is largely due one willing bank in every state, but it’s to the failure of the U.S. Senate to pass certainly not an even playing field across the SAFE Banking Act, which would allow the country. 15
MARCH 2021 ISSUE #2 want to establish bank accounts should seek small state-run banks and credit unions first. Fortunately firms, such as Safe Harbor Private Banking, Dama Marijuana companies who want Financial, and Nature Pay exist to offer to establish bank accounts merchants services and help companies locate a compliant bank. Regardless of should seek small state-run how legal marijuana companies find a banks and credit unions first. potential partner, they MUST have internal SOPs, meticulous financial records, and thorough external reporting to increase their chances. For example, small banks in canna-friendly WHAT ABOUT HEMP COMPANIES? states like Colorado, Washington, Nevada Unfortunately, the situation for hemp is and Oregon have been known to seek out not entirely different from marijuana. marijuana clients. Other states with robust Despite the fact that hemp is federally regulations that support safe banking are legal and banks are cleared to take on Florida, Illinois, Massachusetts, Minnesota clients, hemp-CBD companies find and New York, according to a recent themselves in an undefined legal bucket. article in MJ Biz Magazine. This is the ideal scenario because it allows the bank to That’s because CBD is still under broaden its customer base while investigation by the FDA for safety supporting the growth of an industry that concerns and is technically not allowed in also boosts the state economy ingestible products until guidance has (win-win-win). However, many other states been issued. Additionally, the 2018 Farm like Arizona, California and New Mexico Bill only explicitly lays out rules for hemp have far fewer options. cultivators/producers and does not discuss ancillary businesses such as Most banks will not risk federal retailers and laboratories. For these punishment. And the institutions that do reasons, along with a dash of often hit dispensaries with extra fees that unsubstantiated fear, many financial other industries don’t have to pay. Banks institutions are reluctant to work with say these fees offset the punitive risks as hemp and hemp-CBD companies. well as the cumbersome paperwork they must submit to follow FinCEN’s guidelines. Such broad reluctance may be why While this may be true, the cost of such FinCEN, The Federal Reserve Board, fees may not be worth it for emerging Federal Deposit Insurance Corporation marijuana companies. (FDIC) and Office of the Comptroller of the Currency (OCC), along with the Bottom line? Marijuana companies who Conference of State Bank Supervisors 16
MARCH 2021 ISSUE #2 issued guidance on Dec. 3, 2019, Trust in California. Even large federal confirming that banking hemp is now banks like Goldman Sachs Group, legal. This guidance also stated that JPMorgan Chase and Credit Suisse have banks are not required to file SARS unless reportedly opened limited accounts for “suspicious activity” warrants it. hemp/cannabis related companies. However most institutions are not More recently, FinCEN issued updated transparent about their dealings. guidance in June following a thorough analysis of the USDA interim final hemp That’s why hemp companies must do rule. This provides banks with much their due diligence or outsource the hunt needed clarity, but only covers the rules to organizations like Abaca, who helps for doing business with hemp growers companies in Missouri, Montana, North and processors who purchase hemp Dakota, Oklahoma, and Ohio with directly from growers. It does not address opening compliant bank accounts. how to work secondary businesses. Other hemp/cannabis banking and SO WHAT ARE THE BANKING payment processing companies include: OPTIONS FOR HEMP BUSINESSES? Hypur Ultimately hemp growers and related Evergreen Gateway businesses have a much easier time securing bank accounts than companies Alpha Merchant Bank who produce or sell hemp derived CBD. PayQwick, Inc. Moreover, as with marijuana, the state they operate in matters. THE BOTTOM LINE For example, states with established The landscape of hemp and cannabis hemp programs and hemp-CBD guidance banking is improving at a snail’s pace. for banks have far more institutions who While options exist, the general lack of are willing to take on clients in the banking and abundance of cash-focused industry. Hemp companies who truly transactions continue to impede the understand their state’s regulations and industry’s efforts to grow. Federal reform have the proper financial records to via the SAFE Banking Act is needed for prove they are operating lawfully have major change to occur. Until that time, the greatest chance of finding a hemp and cannabis companies must bank–regardless of the state they are in. prepare their books and weigh the costs and benefits of transacting with banks Some banks publicly admit to working that will more than likely charge high with hemp companies, such as FLC who fees. The fight for industry acceptance call itself “Florida’s Hemp Bank.” Others continues… include Customers Bank, North Bay Credit Union, and WestTown Bank & 17
MARCH 2021 ISSUE #2 EDUCATION DEA Update, Plus Everything You Need to Know About THC Delta 8 Elena Schmidt | July 20, 2020 WHAT IS DELTA-8-THC AND WHY DO I produce psychotropic effects. Despite NEED TO KNOW ABOUT IT? some chemical differences between the Cannabis contains hundreds of therapeutic two, Delta-8 interacts with the body in compounds, but none quite as unique and almost the same way as Delta-9 when popular as Delta-9-THC, also known as just concentrated. THC. Renowned for its ability to relieve HOW IS DELTA-8-THC CHEMICALLY nausea, pain and sleeplessness, THC is also DIFFERENT FROM THC? the only compound we know that delivers Let’s get nerdy for a moment: In chemistry, an intense euphoric feeling. But Delta-9 “Delta” refers to the double bond in the isn’t the only THC on the chemical chain compound’s molecular structure. Delta block. compounds have more electrons and will Coming up just one acid chain ahead, interact with the body differently than Delta-8-THC is also a psychoactive single bond cannabinoids. The only compound that delivers healing difference between Delta-8 and Delta-9 qualities–but with a few key distinctions THC is where that double bond is located that could make Delta-8 even more on the chain of carbon atoms. popular in the future. The only problem is Delta-8 has a double bond on the 8th it’s quite elusive. carbon chain, and Delta-9 has a double So why should you care. Let’s explore. bond on the 9th carbon chain. This seems like a small distinction, but it’s significant WHAT IS DELTA-8-THC? enough to produce slightly different Delta-8 THC is one of the hundreds of cognitive and physical effects. cannabinoids naturally produced in cannabis. It appears in very small doses, WHAT ARE THE REPORTED BENEFITS which is why processors must extract and OF DELTA-8-THC? concentrate it into oils, edibles, tinctures, Famed cannabis researcher, Dr. Raphael and other concentrates. Mechoulam discovered Delta-8 in 1965. Scientists have been experimenting with Similar to other cannabinoids, Delta-8 THC the compound ever since. In 1975, interacts with the body’s endocannabinoid researchers found that Delta-8 could shrink system. Like Delta-9 THC, Delta-8 has an cancerous tumors in rats. In 1995, Israeli affinity towards CB1 receptors in the brain scientists discovered Delta-8 could and nervous system, which it binds with to 18
MARCH 2021 ISSUE #2 Image Credit: HQuality/Shutterstock (not a product endorsement) profoundly affect pediatric cancer about Delta-8 is exciting for processors, treatment. After administering over 480 manufacturers, patients and recreational treatments of high-dose Delta-8 THC, 100% users. As more people report a positive of patients reported feeling relief from experience with Delta-8, we may see more chemotherapy-induced nausea. products flood the market along with a marked shift in consumer behavior. On a cognitive level, consumers have reported feeling a high similar to Delta-9 CAN DELTA-8-THC GET YOU HIGH LIKE THC but with a few key differences: Unlike DELTA-9 THC? Delta-9, which can produce a sedative Delta-8 will certainly get you high, but not effect, Delta-8 is more associated with necessarily like Delta-9 THC. According to clear-headed and energized feelings. This the National Cancer Institute, Delta-8 THC has huge implications for patients and exhibits “lower psychotropic potency” consumers who like the psychoactive and than Delta-9 and might bind with brain’s healing benefits of THC, but also want to receptors differently than Delta-9, thereby function with more energy and clarity explaining the variation of effects. during the day. As such, consumers have reported feeling Studies also suggest that Delta-8 could less intense psychoactive effects with help the body produce a neurotransmitter Delta-8 THC. But still noticeable. Delta-8 that’s responsible for cognition, memory, users experience appetite stimulation, and arousal, and neuroplasticity. euphoria–just not as intensely as they do Although research has been limited due to from THC. the prohibition of cannabis, what we know 19
MARCH 2021 ISSUE #2 IS DELTA-8-THC LEGAL? (DEA UPDATE) As of this article, the legal status of delta-8 THC has officially entered the gray zone. Here’s what we know: Extracting Delta-8 from Δ8THC derived from marijuana is federally cannabis to create a product illegal due to the fact that marijuana is still potent enough to produce a banned controlled substance. Hemp-derived Δ8THC, is technically legal if noticeable effects isn’t easy. it’s naturally extracted. The problem is But it’s certainly possible. hemp contains only trace amounts of the compound. So most delta-8 products are synthetically created by converting CBD into delta-8. functions including pain, appetite, mood, According the DEA, this puts delta-8 in the hormones, inflammation, and blood illicit category. In its interim final rule pressure. This process is what marks published on August 21, 2020, the DEA Delta-8-THC’s therapeutic and said “All synthetically derived psychotropic abilities. tetrahydrocannabinols remain schedule I controlled substances.” ARE THERE HIGH DELTA-8-THC STRAINS? Luckily, this rule is not final yet. You can No. You won’t find Delta-8 THC flower on submit comments until October 20th for the market today. Delta-8 grows in consideration. negligible amounts in cannabis. In fact, DOES DELTA-8-THC ACT THE SAME WAY most dried cannabis contains less than 1% IN THE BODY AS THC? of the substance. So, in order to consume Similar to CBD and other cannabis this elusive cannabinoid, processors must compounds, Delta-8-THC communicates carefully extract it from the plant through with receptors in the body, which make up a variety of scientific methods. the Endocannabinoid System (ECS). The IS IT EASY TO EXTRACT DELTA-8-THC ECS is the homeostatic regulator that FROM CANNABIS? affects nearly every system of the body. Extracting Delta-8 from cannabis to create The ECS’ main receptors are CB1 and CB2. a product potent enough to produce CB1 receptors primarily reside in the brain noticeable effects isn’t easy. But it’s and nervous system while CB2 receptors certainly possible. Commercial processors are more common in the immune system. are using methods such as selective breeding, distillation, and molecular Delta-8-THC communicates with CB1 and isolation to create concentrates that are CB2 receptors to help balance several rich in Delta-8. 20
MARCH 2021 ISSUE #2 In 2004 Dr. Mechoulam filed a patent for a different forms and skews the potency recipe to convert the common cannabinoid information. HPLC accurately tests both CBD into Delta-8 and Delta-9 THC. (Mind Delta-8-THCA and Delta-8-THC for precise blown). This method is called results. isomerization. WHAT TYPE OF DELTA-8-THC Other companies are employing “thin film PRODUCTS ARE AVAILABLE? distillation” of cultivated flower and trim. Delta-8 THC products are available in Through this process, manufacturers utilize nearly every form except for smokable vacuums, temperature manipulation and flower. That means consumers can scientific equipment to convert Delta-9 vaporize, eat, or ingest Delta-8 through THC to Delta-8. the following types of products: Isn’t science fascinating? • Distillate cartridges HOW IS DELTA-8-THC MEASURED AND • Distillate syringes TESTED? • Oil vapes Delta-8-THC is measured through potency • Vape cartridge tests in the same way that CBD, THC and other cannabinoids are measured. ACS • Oil Laboratory’s protocol uses Ultra High • Tincture • Concentrates • Edibles • Beverages WHY SHOULD I CARE ABOUT DELTA-8-THC? Isn’t science At ACS Laboratory, we are so excited about Delta-8-THC because of its fascinating? remarkable healing and recreational qualities. Additionally, the similarities and more importantly, the key differences between Delta-8 and Delta-9 THC have the potential to cause a huge shift in Performance Liquid Chromatography consumer cannabis preferences. (HPLC) machinery to measure Delta-8-THC potency in flower, edibles and extracts. We’re excited that the market is starting HPLC is the preferred instrument for these to recognize Delta-8 in a big way and that products due to its ability to test samples companies are creating more high at room temperature without requiring Delta-8-THC extracts. heat. Heat breaks down cannabinoids into 21
MARCH 2021 ISSUE #2 MEDIA MENTIONS “The Largest Cannabis Lab Testing Company in the Eastern U.S. Has Big Expansion Plans” New Cannabis Ventures 22
MARCH 2021 ISSUE #2 MEDIA MENTIONS “Sponsor Spotlight” CLAB, Newsletter 23
MARCH 2021 ISSUE #2 MEDIA MENTIONS “After Two Years, American Hemp Experts Applaud USDA Rules While Waiting On Further Clarity” High Times 24
MARCH 2021 ISSUE #2 MEDIA MENTIONS “Giving Kids CBD: Your Questions Answered” CannaCurious GIVING KIDS CBD: ! " # $ % ! # & ' ( ) " * '% +*',&$&- BY MASHA BELINSON ȸ«ÎlÁЫÄlÍÁ«|«Á«Ú¦|x«¥«¸Á«¸ !"#$%&'()*%+',-%.)%/#01%234%.)%51-!%6--(% «¸l¼«¦l¼ÁЦ|ȡcl¦Á¥«× 71-6%51'68)%9-0"/-%)5.9:-;
MARCH 2021 ISSUE #2 Facility Three to five-day turnaround and consistent, reliable and accurate nationwide courier service for CBD and hemp samples in an ISO 17025 accredited laboratory. About the Lab Utilizes vast experience in high complexity laboratory tests to develop proprietary testing methodologies with enhanced detection ability and improved accuracy. ACS Laboratory currently services 47 states and four Company Profile countries worldwide. ACS Laboratory is The Most Trusted Cannabis and Hemp Laboratory in Testing Features the USA™, earning more Emerald Test Badges for accuracy in testing than any other laboratory in the southeast. ACS Laboratory is ISO Tests for potency in biomass, flower, trim, extracts, crude 17025 accredited, DEA licensed and CLIA licensed with the largest oil, isolates, distillates, edibles, manufactured and state-of-the-art facility in the region. Compliant with the USDA’s rules complex products like patches, aerosols and nano water. for hemp testing, ACS is also approved by the Florida Department of Tests for 20 different cannabinoids, terpenes, residual Agriculture as a “Designated Compliance Laboratory,” and deemed a solvents, pesticides, moisture, water activity microbiology "Certified Marijuana Testing Laboratory" by the Florida Department of including mold, mildew, e.coli, pathogens, mycotoxins, Health. Due to its success, ACS Laboratory has undergone a 20,000 plant regulators, heavy metals, flavonoids, micronutrients, sq. ft. expansion and increased its reach to 47 states & four countries PAH and even bioanalysis for pharmacokinetics (PK) worldwide. Beyond compliance, ACS is committed to innovation, which study of THC (human trials). is why it tests for more cannabinoids than any lab in the region and continuously develops new protocols to analyze lesser-known toxins. Awards & Accolades Its facility utilizes industry-leading ultra-high-performance liquid Awarded 42 Emerald Badges in 2019 and 2020 chromatography-tandem mass spectrometry technology and combined, more than any other lab in the eastern U.S. for proprietary protocols to ensure accurate detection. its accuracy, consistency and proficiency in testing. The Watch this video about ACS Laboratory, and read the blog for Emerald Test™ is an Inter-Laboratory Comparison and up-to-date information on cannabis science and lab testing for both Proficiency Test (ILC/PT) program for cannabis testing the hemp and cannabis industries. For more information, visit facilities. acslabcannabis.com, or call (813) 670-9157. Education Inception Date Continued commitment to educating farmers, 2008 manufacturers, makers and consumers through its content-rich blog series. Compliance President and CEO Compliant with the USDA’s rules for hemp testing, contracted by the Florida Department of Agriculture (FDACS) as an “Official Designated Roger Brown, a serial entrepreneur and board member of Laboratory” for testing Florida Hemp, deemed a "Certified Marijuana the Hemp Industries Association of Florida, co-founded Testing Laboratory" by the Florida Department of Health (DOH). ISO ACS Laboratory in 2008. Prior to founding ACS, Brown 17025 Accredited, DEA Licensed. was president of CMB Additives, an animal feed additive manufacturer. In 1996, he founded MD to You, a premier Compliance mobile physicians group targeting the elderly population Tests for more cannabinoids than any lab in the eastern U.S. and throughout Florida. Prior to that time, he owned or was continuously develops new protocols to analyze lesser-known toxins. involved in several medical businesses and taught The in-house dedicated scientific team is continuously developing new surgical procedures domestically and internationally, technology, refining current methods, procedures and protocols. using specialty instrumentation such as laparoscopy and surgical staples. Brown holds a bachelor’s degree from The scientific team was able to react quickly to the crisis surrounding the University of Florida. “vape-related illnesses” and developed the first of its kind Vitamin E Acetate panel to ensure products are “VAPE SAFE.” Number of Employees Social Media 128 facebook.com/AmericanClinicalSolutions Innovation twitter.com/ACSLabCannabis Location 20,000-square-foot, state-of-the-art facility located outside of instagram.com/acslaboratory 721 Cortaro Dr., Sun City Tampa, Florida, utilizing industry-leading ultra-high-performance Public Relations Contact Center, Florida 33573 liquid chromatography-tandem mass spectrometry (UPLC/MSMS, (813) 670-9016 Durée & Company, Inc. GC/MS and ICP/MS) technology and proprietary testing (954) 723-9350 / methodologies which created enhanced detection ability and Website acslab@dureeandcompany.com improved accuracy. acslabcannabis.com 26
MARCH 2021 ISSUE #2 Tested Verified Product Seals The laboratory has tested the Hemp The laboratory has tested the Hemp The laboratory has tested the Hemp Flower for Potency, Pesticides, Heavy Extract for Potency, Pesticides, Heavy Edible for Potency, Homogeneity, Metals, Mycotoxins and Microbiology. Metals, Mycotoxins, Microbiology, Pesticides, Heavy Metals, Mycotoxins, The Hemp Flower was tested by a Residual Solvents and Vitamin E Microbiology and Residual Solvents. State Designated Laboratory with a Acetate,. The Hemp extract has tested The Hemp edible has tested for less DEA License and has tested for less for less than .3% THC, by a State than .3% THC, by a State Designated than .3% THC. This meets the strictist Designated Laboratory with a DEA Laboratory with a DEA License This testing guidelines in the United States. License.This meets the strictist testing meets the strictist testing guidelines in guidelines in the United States. the United States.. The laboratory has tested the The laboratory has tested the The laboratory has tested the Cannabis Flower for Potency, Cannabis Extract for Potency, Cannabis Edible for Potency, Pesticides, Heavy Metals, Mycotoxins, Pesticides, Heavy Metals, Mycotoxins, Homogeneity, Pesticides, Heavy Microbiology, Water Activity, Moisture Microbiology, Residual Solvents, Metals, Mycotoxins, Microbiology and and Filth and Foreign Materials. The Water Activity, Moisture and Filth and Residual Solvents, Water Activity, Cannabis Flower was tested by a Foreign Materials. The Cannabis Moisture and Filth and Foreign Department of Health Certified Extract was tested by a Department Materials. The Cannabis Extract was Testing Laboratory. The laboratory is of Health Certified Testing Laboratory. tested by a Department of Health ISO accredited, CLIA licensed and DEA The laboratory is ISO accredited, CLIA Certified Testing Laboratory. The Registered. licensed and DEA Registered. laboratory is ISO accredited, CLIA licensed and DEA Registered. 27
MARCH 2021 ISSUE #2 42 Emerald Badges in 2019 and 2020 More than any other lab in the United States An Emerald Badge™ will be awarded to labs that perform within a specific tolerance in each proficiency test category, with criteria established by the ISO accredited PT manufacturer with input from the Emerald Test™ Advisory Panel. Labs that receive a Badge are not only recognized for their capabilities in comparison to their peers within a given series, the Emerald Badge™ affirms the labs’ ability to meet regulatory requirements for licensure. In addition, Emerald Test™ ILC/PT participation satisfies ISO/IEC 17025 accreditation requirements for external proficiency testing. 28
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