Texas has one of the strictest medical marijuana laws in the United States, and can only be sold by prescription in a few cases.
This has not stopped the arrival of Lukas Gilkey, CEO of the hometown Hero CBD based in Austin, Texas. His company sells joints, blunts, bears, e-cigarette devices and tinctures, which can provide leisure and entertainment. In fact, business is also booming online, where he sells to many people in other states under strict marijuana laws.
But Mr. Gilkey said that he has no criminals, nor does he sell marijuana, just an intimate relationship. The product he provided contains Delta-8-THC, a compound extracted from hemp. It is only slightly different in chemical composition from Delta 9 (the main psychoactive ingredient in cannabis).
He added: “The drugs you have can fundamentally improve yourself, but are completely legal. “The whole thing is ridiculous. “
The rise of Delta 8 is a case study illustrating how hard-working cannabis entrepreneurs separate cannabis and cannabis to create countless new product lines with different marketing perspectives. They are building brands from a variety of potencies, flavors and strains, including the intoxicating substance THC in cannabis and the non-intoxicating compound CBD that is usually sold as a health supplement.
With Delta 8, entrepreneurs also believe that they have found a way to take advantage of the country’s fragmented and complicated laws on recreational cannabis use. However, it is not that simple. Federal agencies, including the Drug Enforcement Administration, are still considering their law enforcement and control options.
“There is no significant legal risk in dealing with Delta-8 THC in any way,” said Alex Buscher, a Colorado lawyer who specializes in marijuana law.
However, experts in the cannabis industry said that Delta 8 sales did explode. Ian Laird, CFO of New Leaf Data Services, which tracks the cannabis and cannabis markets, said Delta 8 is the “fastest growing segment” of cannabis derivatives. He estimated that consumer sales were at least 10 million U.S. dollars, and added: “Delta 8 has really been unexpected in the past year.”
Marijuana and cannabis are essentially the same plant, but the concentration of Delta-9 THC in cannabis is higher-as a source of poisoning, cannabis has been the main focus of entrepreneurs and state and federal legislators. If fully discussed, Delta 8 is an esoteric and less potent by-product of these two plants.
But with the changes to the Farm Bill in 2018, this is a massive federal legislation that, among other things, legalizes widespread cannabis cultivation and sales. The law also specifically allows the sale of by-products of the plant-the only exception is Delta 9, which has a high THC content and defines it as cannabis.
Since the law did not mention Delta 8, entrepreneurs jumped into the blank and began to extract and package it as a legal substitute for edible and smoking.
To be precise, which type of Delta 8 high product depends on who you are asking. David Downs, senior content editor at Leafly.com, said that some people view it as “marijuana light”, while others call it “analgesic for mental discomfort.”
Downs said that either way, Delta 8 has become “extremely rising,” reflecting his so-called “prohibition of falling rule,” and consumer demand and entrepreneurial activities are taking advantage of loopholes in rapidly evolving and breaking laws.
Downs said: “The report we got is that you can enter truck stops in banned states such as Georgia, where you are looking for cannabis-like buds,” Downs said. The cannabis buds are sprayed with a high concentration of Delta 8 oil.
He said Joe Salome owns the Georgia Hemp Company, which started selling Delta 8 locally in October and shipped it nationwide-about 25 orders per day. “It took off.”
His website states that Delta 8 is “very similar to its mentally active brother THC”, providing users with relief from stress and inflammation, “but there is no such high level of anxiety that some people can experience with THC.”
Mr. Salome said he does not need to buy expensive state permits to sell medical marijuana because he feels he is protected by the Farm Bill.
He said: “It’s fine there.” He explained that “selling all parts of the factory” is now legal.
The legal environment is contradictory at best. Many states are more laissez-faire than the federal government. According to the Controlled Substances Act, the federal government treats cannabis as an illegal and highly dangerous drug. In 36 states, marijuana is legal for medicinal use. In 14 states, recreational use is legal.
However, in contrast, under the Farm Act, the federal government has opened the door for the sale of hemp products even in states that have not legalized the recreational use of hemp. Only a few states like Idaho completely ban marijuana, but in other states, Delta 8 entrepreneurs are looking for an acceptable market.
Gilkey’s lawyers believe that the Farm Bill is on their side. Andrea Steel, co-chair of the cannabis business group at the Houston law firm Coats Rose, said: “Delta 8 is derived from cannabis, or is derived from cannabis, and is considered cannabis. “She emphasized that legality also depends on whether Delta 9 exceeds legal limits.
Ms. Steel pointed out that when manufacturing Delta 8 products, it is difficult, if not impossible, to filter out all Delta 9 from cannabis.
She said: “Another wrinkle is added, and many laboratories do not have the ability to draw a line between Delta 8 and Delta 9.”
Lisa Pittman, another co-chair of Coats Rose’s hemp business group, said that when reading the question, the drafters of the farm bill may not have considered the consequences of the law.
Ms. Pittman said that the ultimate question of product legality may depend on other factors, including how Delta 8 was produced and sourced.The lawyers said that, specifically, DEA’s The rules on this issue seem to indicate that Delta 8 may be illegal if it is “synthesized” rather than organically derived.
Currently, the interpretation of the DEA rules has yet to be filed.
Gilkey said he has paid more than $50,000 in legal fees to ensure that he will not violate the law. Gilkey is a veteran of the U.S. Coast Guard. He worked in a drug control department and was responsible for ships outside of San Diego. He said, “He saw something very difficult and was not satisfied with the drug war.”
He ended the business of running a company in Austin that sold e-liquid used in e-cigarette devices. Then in 2019, he started his current business, focusing on selling CBD. He said that at the end of last spring, he started receiving calls from customers about Delta 8.
He recalled: “I said, please explain to me.” Mr. Gilkey’s company provided products to other retail stores across the country, and he saw a huge opportunity. After consulting with a lawyer, he started using Delta 8 for full-size packaging of chewing gum and vape pens and other products, which he said he obtained from a major cannabis supplier.
He said: “This will become mainstream.” This is just the beginning. “The Delta 10 aircraft is being produced.”