Tennessee is the latest state to grapple with delta-8 THC as lawmakers consider new legislation that would outlaw products containing the cannabis compound.

UPDATE: Tennessee Lawmakers Table Bill Aimed at Regulating Delta-8 THC Products

House Bill 1927, sponsored by Rep. William Lamberth, R-Portland, aims to regulate delta-8 by making it illegal except when present in trace-level concentrations, according to WBIR.

Delta-8 products are currently legal to sell and consume in Tennessee since the compound is produced from hemp, the news outlet reported, but lawmakers have expressed concern about the lack of regulations governing delta-8 THC in the state.

RELATED: Tennessee Lawmaker Files Legislation to Tax and Regulate Cannabis, Including Delta-8

H.B. 1927 has already been amended to include other hemp-derived THCs, including delta-9 and -10, as well as the derivative hexahydrocannabinol (HHC), WBIR reported.

RELATED: What Is HHC?

The legislation excludes non-THC hemp byproducts, such as CBD, according to the news outlet.

H.B. 1927 essentially calls for redefining “marijuana,” which remains illegal in Tennessee for both medical and adult-use purposes, to include hemp and hemp products that contain a cannabinoid other than delta-9 THC in concentrations of more than 0.1%, as well as products that contain more than 0.3% delta-9 THC on a dry-weight basis, WBIR reported.

Lawmakers have said that the state would lose an estimated $3 million in revenue when these products are banned from store shelves, according to the news outlet. They have also indicated that the legislation would likely lead to an increase in felony arrests and incarceration expenses, WBIR reported.

The House Government Operations Committee has scheduled an April 25 hearing to discuss H.B. 1927.

As the hemp farming landscape continues to shift, East Fork Cultivars CEO Mason Walker says growers are looking for more variety in their fields—and East Fork’s new Partner Trial program aims to meet their needs.

The Oregon-based hemp breeder and cultivator has launched a new Partner Trial program that offers up to 75 hemp seeds—25 seeds each of three of the company’s exclusive varieties—to state-licensed farmers in the U.S.

“It’s something that we’ve done on a very small scale in the past, and we decided to make it public this year,” Walker told Cannabis Business Times. “The response so far has been really good.”

The program aims to place new cultivars that are not yet commercially available in the hands of growers in exchange for insights and experiential data that will ultimately help East Fork fine-tune the varieties for commercial sale.

“Folks are looking for more variety in their fields, looking for different things … that are not widely available on the market,” Walker said. “As breeders, we do a lot of small-batch seed for folks. … We had a bunch of promising lines that weren’t quite ready for commercial sale this year, so we decided to massively expand our Partner Trial program, where we give free seed to folks of lines that are one step away from being commercially ready to sell.”

Photo by Lily Guthrie

Each participating partner farm will receive seed in May and must fill out a survey for each cultivar as well as provide basic feedback on field performance.

East Fork launched its first structured Partner Trial program in 2020, when the company offered seed to mostly Oregon-based farmers who had close working relationships with the farm.

“That year was our most formal trial year [when] we required participants to fill out surveys throughout the season, and we compiled a pretty comprehensive trial report that we shared with everyone and [we] published a version of it on our blog,” Walker said. “That was what kicked us off as being commercial plant breeders. We’ve been a farming-based company, we’ve grown flower in various formats, and we have a retail presence. We do a little bit of a lot of things. But 2020 really marked our entry into the feminized floral seed market in a real way.”

More farmers participated in 2021, but Walker said this year marks the launch of an official nationwide program.

“We expect to have a lot of participants, but we’ll have an even more limited scope,” he said. “The data we’re asking for is pretty minimal. … We’re just requiring they fill out one survey, but it’s a pretty simple Google form survey. The data we’re collecting is stuff that helps us improve these lines and make sure they’re ready for market.”

East Fork will collect mostly agronomic data, including information on plant stability, plant vigor, pest resistance, harvest times, and germination and feminization rates.

“I think the exciting thing this year is we’re going to have data points from lots of different geographies, so we’ll be able to see how pest resistance of our Sour Pineapple line, for instance, does in really humid environments in North Carolina, but also really arid environments in Nevada,” Walker said. “That will be really fun—more data with more participants this year.”

Participants must sign a material transfer agreement that states they will not conduct any commercial breeding with East Fork’s hemp varieties.

Photo by Lily Guthrie

“The intention is not to give people our intellectual property and breeding stock for their own breeding program,” Walker said. “Our goal is to give them unique seeds that are not available for sale in the market that have, in most cases, really interesting new aromatic and terpene profiles. That’s our focus as breeders, developing and stabilizing lines of compliant hemp that has truly unique aromatic profiles.”

The three cultivars that East Fork is distributing this year include Llama Tonic and two unnamed varieties—Ringo’s Gift crossed with Sour Pineapple and Takilma Kush crossed with ACDC.

“That Takilma Kush is unique because it has a lot of terpinolene,” Walker said. “It’s a predominant terpene that’s not very common in commercial floral hemp lines, so we expect that trait to come through and we’ll have a really gassy hemp line, which will be fun.”

East Fork almost made Llama Tonic commercially available this year, but the team ultimately decided that the cultivar needed a bit more refinement.

Although there are very few state-by-state rules on what hemp seed can be cultivated, and although the spectrum of plant quality is wide ranging, Walker said East Fork has tried to be as transparent as possible about the amount of testing and inbreeding that go into its parent lines.

Walker said there are five essential items that must be dialed in before East Fork deems a cultivar fit for commercial sale: THC compliance, germination rate, feminization rate, phenotypic variability and anomaly rate.

“It has to be fully compliant to USDA pre-harvest testing standards, and [must] have demonstrated that compliance in at least three tests,” Walker said. “That’s number one. We do not want to set anyone up with a hot crop.”

As far as phenotypic variability, East Fork must ensure that its hemp varieties look and smell very similar and mature around the same time.

“One big challenge for farmers is they have a seed line that has a lot of phenotypic variability, and then harvest dates may vary and it’s a logistic feat to harvest part of your field, plant by plant, because they’re maturing at a different time,” Walker said. “Or, if some plants are really dark green and some are really dark purple, that can be an issue for product consistency if they’re selling trimmed flower.”

Photo by Lily Guthrie

East Fork groups many factors into the anomaly rate, which includes any additional undesirable traits that could impact yield or quality.

Ultimately, the Partner Trial program will help East Fork accumulate more data as it completes R&D on these hemp varieties.

“We have third-party, unbiased input on lines that we’re developing that we have a keen commercial interest in going well,” Walker said. “It’s a bunch of data points that can help us improve those lines and get them closer to a product that we sell.”

The program also connects East Fork with farmers it might not already have relationships with—and who might be interested in buying seed from the farm in the future.

“As far as main benefits for the farmers, they get to participate in developing a line,” Walker said. “They can provide feedback and help shape our genetics in a way that would be desirable to them as farmers.”

As competition continues to heat up in the U.S. hemp market, the Partner Trial program also provides farmers with what Walker said is most desirable in the market right now—variety.

“Most hemp farmers, one of the main things they’re looking for in buying seed this year is they want something different,” he said. “They don’t want the varieties that are flooding the flower market. One thing that this trial program offers in a big way is it’s something unique that’s not widely commercially available for farmers to grow. It’s available before it’s commercially available to buy in larger amounts, so it’s unique.”

East Fork has roughly a dozen participants already enrolled in the Partner Trial program and has already started shipping seed.

Many of the participating farmers are experienced growers, Walker said, who have been growing hemp for two to five years and know what they are looking for in terms of plant traits, performance and quality.

Participating farms range in size, Walker added, from larger farms with 30-plus acres to smaller farms with less than an acre.

Farmers have until May 31 to enroll in East Fork’s Partner Trial program, and Walker expects between 50 and 80 farms to participate this year.

“We’re excited to open it up this year,” he said. “We would’ve opened it up last year, but we didn’t have the seed supply for it. We’ve increased the number of seeds we’re creating, and our breeding pipeline has come further along, so we were ready to open it up more this year. We’ll see how it goes this year being wide open, but I’m anticipating it being a pillar program for us. … Our plan as breeders is to keep developing new varieties that have unique aromatic profiles with all the other basic performance that farmers expect."

PORTLAND, Ore., April 21, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Chalice Brands Ltd., a premier consumer-driven cannabis company specializing in retail, production, processing, wholesale, and distribution, has announced the signing of definitive agreements and services agreements to acquire two retail stores located in Bend and Corvallis, Ore., from Miracle Greens, Inc and two outdoor cultivation assets in Grants Pass, Ore., from Totem Farms, LLC for total consideration of US$2.63 million. The closing of the transaction is subject to approval by the Oregon Liquor and Cannabis Commission (OLCC) and the satisfaction of other closing conditions.

“We are very excited to be able to serve the Bend and Corvallis communities as Chalice’s retail footprint expands to a total of 18 stores owned and managed in Oregon. This transaction is crucial to support our scale and strengthen our vertically integrated operations as we continue to elevate our brand presence on the west coast. Our team is energized to provide best-in-class product offerings and retail experiences as we execute on our collective vision of providing consumers with the next generation of plant-based medicines. We look forward to further capitalizing on significant expansion opportunities in the market as the pathway to full U.S. federal legalization gains momentum,” said Jeff Yapp, president and chief executive officer of Chalice Brands.

Transaction Highlights:

• Under the terms of the agreements, Chalice will acquire 100% of the assets of two retail dispensaries from Miracle Greens located in Bend and Corvallis, Ore., and two outdoor cultivation assets from Totem Farms located in Grants Pass, Ore., for total consideration of US$2.63 million. Totem Farms, LLC’s, assets are being purchased for US$563,587 and Miracle Greens Inc.’s assets are being purchased for US$2,063,999.
• The purchase price will be paid 50%  in cash due at closing, US$1,313,793, and the balance equally split between equity and a promissory note to be paid over 54 months at 8% interest (US$656,896.50 respectively) with each being prorated based on the purchase price of the entity’s assets.
• Upon signing, Chalice contracts to operate the Miracle Greens retail stores including staffing, pricing, and procurement, and the Totem Farms cultivation assets pending regulatory approval.
• Miracle Greens retail stores are expected to carry Chalice Brands products immediately upon commencement of services agreements, providing the opportunity to broaden the quantities and varieties of flower available to the existing footprint.
• Cultivation assets located in Grants Pass, Ore., will expand the quantities and varieties of flower available to the existing Chalice footprint and more than doubles our capacity by adding approximately 3,000 lbs. of additional capacity to current greenhouse grow, located at Bald Peak, which has approximately 2,500 lbs. annual capacity.

“I am thrilled to have Totem Farms become part of Chalice Brands. Totem gives us our first two premier outdoor grows in Southern Oregon, one of the best locations for growing in the country,” commented Meghan Miller, chief operating officer of Chalice Brands.

“We are pleased to have completed the accretive transaction of Totem Farms and Miracle Greens to expand Chalice’s retail presence and cultivation capacity to bolster our market share in the Oregon cannabis market. Our growth strategy through opportunistic consolidation will provide accelerated revenue contribution and improve margins to drive shareholder value. The company will remain disciplined with our capital allocation strategy to support our long-term vision as a premier multi-state operator,” noted John Varghese, executive chairman of Chalice Brands.

NEW YORK, April 21, 2022 -- PRESS RELEASE -- Acreage Holdings, Inc., a multi-state operator of cannabis ‎cultivation and retailing facilities in the U.S., today launched adult-use cannabis operations in two New Jersey locations. Acreage’s products, including its flagship brand, The Botanist, will be available for adult-use consumers at its Egg Harbor Township and Williamstown dispensaries in southern New Jersey.

Acreage is among the inaugural group of cannabis operators permitted to commence adult-use sales in New Jersey. As of April 21, the Egg Harbor Township and Williamstown locations will offer The Botanist flower, pre-rolls, vape cartridges and more to all adult-use customers who are 21+ years old. The Botanist dispensaries have served New Jersey patients for nearly five years and will continue to provide access to high-quality cannabis products for both medical and adult-use consumers amidst growing consumer demand. Additionally, with Acreage’s recent cultivation expansion, the company is uniquely positioned to become a significant wholesale supplier as the New Jersey market develops.

“After serving New Jersey medical patients for almost five years, we are thrilled to be among the first operators establishing New Jersey’s adult-use market. With New Jersey adult-use sales projected to reach $2.4 billion by 2026, The Botanist is well-positioned through our expanded cultivation capabilities to meet consumer demand and increase sales in the coming years,” said Peter Caldini, CEO of Acreage. “Our company has been committed to providing exceptional patient care since its inception, and we will continue to prioritize medical patients while providing the same level of care and expertise to our new adult-use consumers.”

To celebrate the first day of adult-use sales, The Botanist Williamstown will host an opening event attended by former NFL player and Last Prisoner Project ambassador Marvin Washington. The Botanist Williamstown is located at 2090 North Black Horse Pike and The Botanist Egg Harbor Township is at 100 Century Drive. The Botanist Atlantic City, located at 1301 Boardwalk, will continue to serve medical patients. The Botanist locations are open seven days a week from 10 a.m. to 7 p.m., with special hours for medical patients. Please visit shopbotanist.com for more details including hours specific to opening day.

To accommodate increased adult-use and medical operations, Acreage hired more than 25 employees and is actively seeking additional hires from economically disadvantaged areas. Acreage is committed to fielding a diverse team that reflects the communities the company serves.