420 with CNW – Oregon Law Forbids the Sale of Marijuana Byproducts

As Oregon struggles with an oversupply of marijuana on its recreational market, it has emerged that the law under which adult-use marijuana was legalized bans the sale of cannabis byproducts out of state.

This information was revealed by Caleb Mata, the CEO of Oregon Genetics. Mata raised this issue when he was speaking at a listening event organized in July by the Oregon Liquor Control Commission (OLCC).

OLCC says that under the current law in the state, every product that is derived from marijuana is regarded as marijuana, and that is why it cannot be legally transported or sold out of state. This rule also applies to cannabis byproducts, such as the terpenes Mata talked about, which don’t contain any THC.

Mata believes that the state trapped itself when it passed such a provision in its law because the marijuana industry will struggle to survive if such clauses remain in the laws regulating the industry.

He is convinced that allowing the cannabis industry in Oregon to sell terpenes (cannabis flavors that can be obtained by distilling the plant) and other byproducts free from THC may provide a lifeline to fixing the glut on the Oregon marijuana market.

Terpenes attract high prices online because they can be added to CBD products in states where marijuana is still illegal. The current practice has been to use terpenes which have been extracted from other plants, but marijuana terpenes are distinct and offer a better experience to the users of the products in which these terpenes have been added.

The market for terpenes is unlikely to face the same oversupply challenges that the market for cannabis flower and related products is facing for two key reasons.

The first, as already mentioned, is that marijuana is still illegal in many states and those provide a regular market for terpenes to be added to CBD products.

Secondly, terpenes are volatile and are usually lost as marijuana concentrates, oils and other extracts are being processed. These flavors must then be added after the extraction process, and that means that there will always be a market for the terpenes.

Hugh Palcic, an OLCC commissioner, admitted that Caleb Mata and other members of the industry have a legitimate concern which can only be addressed by reviewing the existing law so that necessary amendments can be made. He added that OLCC is open to any ideas and recommendations that could be beneficial to the industry in Oregon.

It isn’t yet clear to industry analysts how marijuana industry players like Green Hygienics Holdings Inc. (OTCQB: GRYN) and Hemptown USA regard the long-term viability of the market for marijuana terpenes.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000 (U.S. Mobile Phones Only)

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

Leave a Reply