Tag: AUGUST 2022

Welcome to August of 2022, where we still do not have clear guidance on the federal acceptance of most cannabinoids. Regardless, the industry continues to push forward subject to similar global economic forces as the other industries. The CBD industry continues its trend of looking for the bottom, with historically low prices being reported by Hemp Benchmarks for CBD biomass. Minor cannabinoids continue to be a buzzword and hot commodity, especially in states with limited to no adult use THC market. The conversion of CBD to Delta 8 and 10 THC has spread rapidly, more recently though it is the conversion of CBD to Delta 9 THC that will blend the two industries. Only time will tell how this cat-and-mouse game plays out between new minor cannabinoids and the regulations surrounding them.

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.

The lack of liquid capital is crushing the cannabis industry and it’s not just hurting plant-touching operators. Companies across the supply chain are affected. Vendors are having to wait past normal terms to receive payment leading to massive cash flow issues. Industry operations are being forced to prioritize spending internally vs. externally which leads to possible defaulting to outside vendors to prioritize internal payroll. Add in rising inflation, high tax rates, and decreasing wholesale prices, and you have a potentially disastrous domino scenario set up. As an optimist, recognizing these variables at risk makes it even more challenging to understand the macro implications.

Editors’ Note: This is an excerpt from our Monthly Playbook. If you would like to read the full monthly playbook and join the thousands of others you can sign up below.