New Federal Ban on Hemp-Derived THC Products
New state restrictions on THC this year wiped out a significant portion of the smokable hemp market, but makers of THC drinks thought they were safe. That has since changed. Beginning December 11, a new federal ban on hemp-derived THC products will make that segment of the industry illegal as well.
To understand the implications, we spoke with Michael Williams and Andrew Martin, founders of Wild Revival, a THC beverage company in Denton.
These interview highlights have been edited for length and clarity. To hear the full conversation, click the play button above.
Impact on Business
WILLIAMS: This is a very timely interview because literally yesterday afternoon, I got an email from our payment processor that handles at least 45% of the revenue that comes into our business. Square, one of the largest payment processors in the country, says they don’t want to do business with us because of the looming ban in December. And all of those businesses, small businesses, they’ll have to find something else.
Scope of the New Ban
WILLIAMS: These new rules would essentially make any product that has an amount of THC more than 0.4 milligrams per container illegal. Our products range from 50 mg, 10 mg, and 25 mg. I couldn’t even imagine a 0.4 mg Tic-Tac. These new rules and the law that would go into effect on December 11th will put us out of business.
MARTIN: We have a unique position because not only are we a brand owner with Wild Revival and Hi-Res, but we’re also our own manufacturer. We have plants that we’ve invested our own personal money into. With federal legislation as it stands now, we won’t have a path forward.
Chances of Reversal
WILLIAMS: I’m hopeful because so many of the elected officials that won on Tuesday and are coming into office next year ran on a platform of, "no," this is an industry that has grown and people have entered in good faith. It’s mostly small businesses like us who have built this over years of hard work. That’s why they got elected.
MARTIN: Put it this way: 95% of our revenue is cannabis-based. If we lose that revenue stream, we’ll be in a very, very difficult position.
Miranda Suarez and Ron Corning are the hosts of KERA’s NTX Now. Got a tip? Email Miranda at [EMAIL_REDACTED] or Ron at [EMAIL_REDACTED].
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