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North Carolina Hemp Businesses Brace For Impact Of New Federal THC Product Ban

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6 months ago

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“We have a year to figure it out or we have a year to like it, crush it and fight for the plant and we hope to change that with the legislation.”

By Brandon Kingdollar, NC Newsline

For Hannah DeLange, the most rewarding aspect of running Redhead Hemp’s Durham location has been “creating a space where people feel comfortable and safe,” creating an inviting social atmosphere much like a coffee shop or bar.

Shelves are stocked with CBD gummies, Delta-9 sangrias and THC caramels, among other drinks and treats with promises like “sleep with benefits” and “lower calories, bigger vibes.”

The interior of the store looks cozy, with plants covering the brick walls with brightly colored artwork and plush sofas and chairs for relaxing. At the store’s “Canna Cafe,” customers can sit down with hemp-infused tea and coffee.

“It’s kind of a space for everybody,” DeLang said. “It has to be a plant for all people, and it has to be accessible, and to create a space that can really personify that.”

Now, the future of that space and many others like it are in jeopardy, with the majority of hemp-based cannabinoid products set to become illegal in November 2026.

Hemp business owners in North Carolina and their counterparts across the US are grappling with the impact of the ban, with some mounting advocacy efforts to reverse the ban and others working to narrow the range of CBD products that will remain legal.

“I think there is a lot of fear”

“We found out the morning of the Senate vote that this was happening,” said Emma MacAdam, owner of Redhead Hemp. “It was pretty clear when they put it in the bill that that bill was going to pass, so it just seemed like a vicious way for them to push their agenda into a bill that was so necessary and important to so many people.”

Hemp and marijuana are varieties of the cannabis plant, which differ mainly in levels of the psychoactive compound THC, with hemp containing much less. CBD, another chemical produced by the cannabis plant, does not have an intoxicating effect by itself, but it does produce a calming effect and has been shown to help treat pain and anxiety.

The ban, which significantly lowers the acceptable level of THC in hemp products, was passed earlier this week as part of a farm credit bill along with a stopgap funding deal to end the federal government shutdown.

It bans the sale of hemp products, including CBD products, that contain more than 0.4 milligrams of THC per container, DeLange and MacAdam said, about 99.5 percent of their stock. That would eliminate “full-spectrum” hemp products, which they said make up the most typical CBD products.

“They’re basically saying we can only use the non-intoxicating parts of the plant,” DeLange said. “For a lot of people, the compound THC, even that small amount that you see across the spectrum, that’s really important for pain relief, anxiety, sleep and things like that.”

DeLange said using CBD products has also helped some clients stop using opioids or stop drinking heavily. “Beverages have been a great resource for a lot of people who want a healthier alternative to that.”

The ban comes after lobbying by the marijuana industry and state law enforcement that the hemp industry exploited a loophole to sell products with many of marijuana’s effects but without regulatory oversight. The senators say they never intended to open up a recreational hemp market and only wanted to allow the cultivation of industrial hemp.

The reason, according to Sen. Mitch McConnell (R-Ky.) and other co-sponsors of the Farm Bill, is to “keep these dangerous products out of the hands of children, keeping the hemp industry to farmers,” and to do so, it closes a loophole that allows CBD products to be sold with less than 0.3 percent THC, a threshold that the Farm Bill originally helped overcome.

“Unfortunately, companies have exploited a loophole in the 2018 law by taking legal amounts of THC from hemp and turning it into an intoxicating substance, then marketing it to children in candy-like containers and selling it in easily accessible places like gas stations and convenience stores across our country,” McConnell said.

MacAdam and DeLange pushed back that the products are aimed at younger customers. They said their store has a strict 21+ policy.

“It’s very easy to use the iconic ‘save the children’ flag for a lot of things, I think there’s a lot of fear around cannabis – that’s the history of cannabis, period,” DeLange said.

“And there’s no talk of parental responsibility in that matter, or the fact that liquor isn’t safe for kids, and a lot of the new liquor companies are pretty and colorful,” MacAdam added. “I think it’s a complete escape.”

‘Wild West’

The rapid change to the ban represents a significant change for an industry that has seen little regulation in many states, including North Carolina, for the past seven years.

North Carolina has not enacted regulations on intoxicating hemp products, even with basic age restrictions, despite the support of the state Senate, Gov. Josh Stein (D) and Attorney General Jeff Jackson (D).

In February, the state’s child welfare task force reported a 600 percent increase in emergency room visits for minors related to cannabis use since 2019. Stein launched the Cannabis Products Advisory Council in June, saying “our state’s unregulated cannabis market is a wild west and is crying out for order.”

Last month, Jackson joined attorneys general in 38 states to ask Congress to regulate the sale of CBD products, asking lawmakers to “clarify the federal definition of hemp” during the appropriations process.

“Efforts by states to outlaw hemp-derived psychoactive products to protect their citizens cannot solve this problem,” the attorney general’s letter says. “Such efforts can only lead to unique and ineffective prohibitions and regulations that differ from state to state and will not stop the flood of THC mail order products from being transmitted through interstate commerce.”

Bills proposed in North Carolina that have not advanced this year include bans on sales to minors and sales permit requirements and child-friendly packaging and printed warnings. A bill passed by the Senate in June, which Jackson spoke for, would ban the sale of hemp-derived drinks, gummies and other products to anyone under 21 and prohibit their use on school grounds, among other rules, like a licensing process.

That bill and many others died in the powerful House Rules Committee, now chaired by Rep. John Bell (R-Wayne), who in 2024 became chairman of the hemp company Asterra Labs. Bell did not respond to multiple requests for comment for this story.

MacAdam said the lack of regulation has been a boon in some ways, such as making the industry more accessible to those with relatively few resources, creating greater opportunities for traditional business owners.

“It’s really nice when there’s no barrier to seeing what an industry can do. There’s no license that you have to pay $100,000 for. I started this business with a little money and a big goal, and I’m so grateful for all the people we’ve met along the way,” he said.

“It’s part of our way of life”

Also stopping are farm owners of flowering or smokeable hemp, a crop grown to make CBD products. Dana Rider, co-owner of Otherside Farm in rural Buncombe County, said the industry has been “disgusted” since hemp products were legalized in 2018 thanks to potential bans.

“We’d freak out and then everything would be fine, or they’d put it off for another year,” Rider said. “Obviously, (the ban) is going to strike a chord somewhere because, you know, it’s part of our livelihood.”

He said his family started growing hemp a year after starting their farm. Other farmers he knows have switched to hemp to revive their run-down tobacco farms and dairies. They now operate an online store, Otherside Hemp, and also sell their products in stores across the state. “It’s part of our income and helps keep the farm going,” he said.

He said that for many clients, the goal is not to undergo a chemical, but to manage pain and other conditions such as insomnia and anxiety.

“Your grandmother and your aunt and your parents don’t want to feel different, they don’t want to have that altered consciousness,” Rider said. “They just want to feel better.”

MacAdam and Rider both say they have been in conversation with other business owners who are working to push back against the ban before it goes into effect.

“We carry a lot of small businesses, a lot of family-run businesses, so we’re very concerned about our friends,” MacAdam said.

Otherside Farm plans to ask its supporters to contact state and local representatives about the ban, Rider said. “We have a year to figure it out or we have a year to like it, crush it and fight for the plant and we hope to change that with the legislation.”

“We will wait,” he added. “Until they tell us we can’t sell our stuff anymore, we’re going to keep selling our stuff and growing and producing our products.”

While some farms and shops will be able to continue to legally sell products processed to remove THC, also known as “CBD isolates,” Rider said his farm does not have the equipment to produce them. Since they only sell full-spectrum products, their entire product range would be wiped out by the ban.

“For us, we can’t really pivot, can we?” said Rider. “We wouldn’t be around anymore, basically, and that’s sad to think about.”

This story was first published by NC Newsline.

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Third cannabis business approved by Jefferson Town Council

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15 hours ago

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May 15, 2026

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The Jefferson City Council unanimously approved “Green Leevs” as the city’s first cannabis micro-farm at its May 6 meeting. This is the third cannabis business approved by the municipality in order to bring income to the municipality. Retail dispensaries “Greenlight Apothecary” and “Gas and Grass” were previously approved.

Green Leevs are owned by Bill Comeford, Elliot McClendon and Josh Moskowitz. All three are from the local area, Comeford grew up in Jefferson. In New Jersey, a micro-enterprise is a facility with 2,500 square feet of growing space. A micro-farm relies on the craftsmanship of cannabis rather than mass production.

“We have more control, we have more hands, the smaller grow rooms make it easier to inspect each plant,” Comeford said. “If you’re careful, it makes for a better product at the end of the day.”

Green Leeves understands that there are mixed feelings about the Council’s approval of the cannabis industry and hopes that this will ease over time.

Read more at Press Jefferson










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Virginia Governor Signs Marijuana Resentencing Bill After Lawmakers Rejected Her Amendments

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15 hours ago

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May 15, 2026

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Virginia’s governor has signed legislation to grant sentence relief to people with past marijuana convictions, even as lawmakers have refused to accept proposed amendments to the legislation that would significantly narrow the scope of reform.

Gov. Abigail Spanberger (D) gave final approval to the bills, Rozia Henson Jr.’s HB 26 (D) and Senate President Pro Tem Louise Lucas’ SB 62 (D), on Thursday.

Separately, lawmakers and advocates are waiting the governor’s action on separate legislation to legalize the sale of recreational marijuana after amendments to his proposal were similarly rejected by the House and Senate last month. The changes suggested in that legislation included delaying the start of sales by six months, increasing taxes and introducing new criminal penalties for cannabis users.

Retrial reform, on the other hand, creates a process by which people incarcerated or on community custody for certain crimes involving the possession, manufacture, sale or distribution of marijuana will consider changing their sentences to receive an automatic trial.

Spanberger sent proposed amendments to lawmakers last month They had to proactively submit requests for assistance to affected people instead of the courts proceeding automatically. The Senate and House of Representatives, however, rejected the proposal, effectively rejecting it and sending the original legislation to Spanberger’s desk.

Henson, the sponsor of the House version of the bill, said it was ready to accept the governor’s changes, even if he is concerned this would mean that some people with cannabis convictions would fall through the cracks because they “didn’t have a lawyer or didn’t know how to ask.”

The whole parliament did not agree with the change, however, and now HB 26 and SB 62 The laws that were originally approved have been implemented.

The relief will apply to people with convictions or convictions for conduct that occurred before July 1, 2021, when a state law that legalized personal possession and home cultivation of marijuana went into effect. State and local corrections officials should identify and notify eligible individuals of their rights to provide notice of relief and then work with courts to automatically schedule hearings.

Henson said last month that the resentencing legislation was “built for people who are still paying the price for something that Virginia has made legal.”

“If the commonwealth were to change the law, it still has the duty to review the consequences of the people punished according to the old one,” he said.

The governor’s office said in a press release when he proposed his amendments that they “clarify that there will be no tolerance for violent crimes in Virginia, from armed robbery to possession of firearms to distribute fentanyl, heroin and other dangerous drugs.”

But Henson said he shares the “governor’s commitment” to making sure violent offenders are not eligible for this relief; and that commitment is reflected in the bill itself, which excluded people convicted of violent acts under Virginia law.

Spanberger’s release last month made no mention of the actual major changes to the bill, which was the removal of automatic leniency provisions for people with cannabis convictions.

The governor’s amendment also proposed removing the deadline for court filings on the retrial.

In the previous session, members of parliament approved similar legislation, but the then government vetoed it. Glenn Young (R).

Separately, Spanberger signed several other reform bills last month, including measures protecting the parental rights of marijuana users and giving patients access to medical cannabis in hospitals.

Cannabis policy reform organizations, on the other hand, sent a letter earlier this month asking the governor to enact the adult-use marijuana sales bill.

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Cannabis operators report mixed results as rescheduling reshapes the financial outlook

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2 days ago

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May 14, 2026

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The rescheduling came mid-quarter and rewrote the tax math for each medical sales operator, but the underlying revenue picture remained uneven in early 2026, with acquisitions driven at one end of the scale and continued top-line compression at the other.

Vireo Growth: Back on $106 million deal
Vireo Growth Inc. reported Q1 GAAP revenue of $106.2 million, up 333.5% year-over-year, driven almost entirely by recent acquisitions rather than organic growth. The company completed the Schwazze acquisition in March, adding 45 dispensaries and two manufacturing facilities in Colorado and New Mexico. At the end of the quarter, it closed Eaze and Hawthorne Gardening, FLUENT Corp. announced an acquisition agreement and executed a California dispensary joint venture with Glass House Brands. Treating all acquisitions as closed on January 1, 2025 on a pro forma basis, revenue was $210.2 million and adjusted EBITDA was $42.2 million. The company ended the quarter with $137.8 million in cash.

John Mazarakis, CEO of Vireo, said: “Performance in the first quarter met our expectations and we are excited to welcome Schwazze, Eaze and Hawthorne to Vireo. We are focused on integration and optimization across the platform, while remaining opportunistic regarding growth opportunities associated with further acquisitions.”

Cresco Labs: $151 million, 280E relief and Texas license
Cresco Labs reported Q1 revenue of $151 million, down from $165.8 million in Q1 2025. Adjusted gross margin was 50.7% and adjusted EBITDA margin of $33 million was 21.7%. Cash at the end of the quarter was $67 million against a $310 million secured term loan. The company was conditionally granted a Texas Compassionate Use Program license after the quarter ended and opened two new dispensaries in Ohio.

Management said, “Moving the state’s legal medical cannabis from Schedule I to Schedule III is the most impactful reform this industry has seen, and it validates the work we’ve been executing for years. We’ve built the operational foundation and balance sheet discipline to reap the immediate benefits of rescheduling, and position Cresco to take advantage of the broader path to normalization.”

Jushi Holdings: 4% growth, 460 basis point margin expansion
Jushi Holdings reported first-quarter revenue of $66.4 million, up 4% year-over-year, with gross profit margin up 460 basis points to 45%. Adjusted EBITDA was $11.4 million, up 17.2%. The margin improvement was driven by higher production volumes in Ohio, Massachusetts and Pennsylvania and the performance of grower processors. Jushi brand products accounted for 58% of retail revenue in vertical markets. The company refinanced $132.3 million in debt during the quarter, providing $160 million in new debt through 2029.

Jim Cacioppo, president and CEO, said: “The recent scheduling of state-licensed medical marijuana for Schedule III is an important milestone for the industry, eliminating 280E tax limitations for medical operations and supporting a more favorable long-term operating environment.” Medical sales accounted for about 60% of Jushi’s 2025 revenue, making this material relief.

iAnthus Capital: Revenue falls to $33.5 million
iAnthus Capital reported first-quarter revenue of $33.5 million, down $4.6 million from 2025’s first quarter. Gross margin was 47.5%, up 477 basis points from the 2025 quarter. The company did not provide a management comment in the press release.

Country farms: international export record, fourth consecutive quarter of net income
Village Farms International reported first quarter consolidated net sales of $50.2 million, up 27% year-over-year, with net income of $2.9 million and adjusted EBITDA of $9.9 million, up 118% year-over-year. International export sales increased 171% to a record $14.6 million, driven by demand for EU-GMP compliant products in Germany. Pure Sunfarms had the top Canadian market share in dried flowers for the 15th consecutive month. The company started planting the first half of its Delta 2 greenhouse expansion and expects its Phase II facility in the Netherlands to reach full capacity by the end of 2026, which would quadruple Dutch production.

Michael DeGiglio, President and CEO, said: “Our first quarter results reflect a strong start to the year and continued momentum in our largest markets, with adjusted EBITDA growth of 118% year-over-year, significantly outpacing revenue growth of 27%, driven by our international business and continued leadership in Canada.

Cronos Group: Record revenue, $822 million in cash
Cronos Group reported Q1 net income of $45.2 million, up 40% year-over-year and a record quarter, with net income of $15.7 million and adjusted EBITDA of $5.1 million. Israel led growth PEACE NATURALS grew 53% for ninth consecutive record quarter. In Canada, the Spinach brand took first place in vapes with a 9.8% share of the national market, and maintained its top spot in edibles at 20.8%. The company ended the quarter with $821.9 million in cash and authorized a new $50 million stock repurchase program. The deadline to close the acquisition of CanAdelaar, one of the ten licensed growers in the Dutch Controlled Cannabis Supply Chain Experiment, has been extended to September 9, 2026 to allow time for regulatory approvals.

Mike Gorenstein, chairman, president and CEO, said, “Cronos achieved net earnings and gross profit in the first quarter as we continue to execute against our unlimited product strategy and the additional supply from Cronos GrowCo’s expansion fuels the next phase of our growth.”

Org chart: Revenue down 9%, Sanity Group acquisition closes after quarter
Organigram Global reported fiscal second quarter net income of $59.8 million, down 9% year-over-year, with adjusted EBITDA of $0.9 million, down 82%. Lower vape and pre-infusion sales drove the decline, along with a $5.8 billion dent in the U.S. hemp business. The company achieved a record quarterly harvest of over 32,000kg at its Moncton facility, up 56% year-on-year, and launched 10 SKUs in Australia targeting over 4,000 pharmacies. At the end of the quarter, Organigram acquired Sanity Group, one of Germany’s leading cannabis companies, and updated its 2026 guidance to net revenue of more than $350 million.

James Yamanaka, CEO, said: “Q2 reflected our poor performance in vaporizers and temporary challenges in pre-infusion production, compounded by slower industry growth. We have acted quickly to address these issues, and the operational changes and product improvements we have implemented are already beginning to stabilize performance.”

Greg Guyatt, Chief Financial Officer, said: “The financial impact of the competitive and operational challenges encountered earlier in fiscal 2026 is believed to have materialized in the first half of the year, and we are now beginning to stabilize performance. We expect to resume a trajectory of margin expansion and improved profitability during the second half of the year, supported by positive revenue and international sales growth. The Sanity Group.”

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