New Federal Ban on Hemp-Derived THC Products
New state restrictions on THC this year significantly impacted the smokable hemp market, but makers of THC drinks thought they were safe. That has since changed. Beginning Dec. 11, a new federal ban on hemp-derived THC products will also render that part of the industry illegal.
To understand the implications, we spoke with Michael Williams and Andrew Martin, founders of Wild Revival, a THC beverage company in Denton.
Interview Highlights
These interview excerpts 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 our revenue. 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, will have to find alternatives.
Scope of the Ban:
Williams: These new rules would essentially make any product that has an amount of THC more than 0.4 milligrams per container illegal. We sell 50 mg, 10 mg, and 25 mg products. Honestly, I couldn't even imagine a 0.4 mg Tic-Tac. These new rules, effective Dec. 11, will put us out of business.
Martin: And 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've invested heavily in our plants, and with the current federal legislation, we won't have a viable path forward.
Chances of Reversal:
Williams: I'm hopeful because many elected officials who won on Tuesday ran on a platform of supporting the industry. It's made up mostly of small businesses that have invested years of hard work.
Martin: Put it this way: 95% of our revenue is cannabis-based. If we lose that revenue stream, we'll be in a very difficult position.
This story was produced by KERA News and hosted on NTX Now.