A Denton company that makes THC drinks says a federal ban taking effect next month could close its doors, while supporters of the law say it shuts a loophole that let intoxicating products reach gas station shelves.
Starting Dec. 11, federal law will bar hemp-derived products that carry above 0.4 milligrams of THC, counted across the whole container, according to CNN and The Associated Press. Products made with synthetic cannabinoids such as delta-8 lost their legal status earlier, on Nov. 12, CNN reported. The ban does not reach marijuana sold through state-licensed dispensaries.
What the Denton founders say
Michael Williams and Andrew Martin, who started the Denton drink company Wild Revival, spoke with KERA's NTX Now in an interview published Nov. 9. KERA noted that new Texas rules this year had already cut deeply into the smokable hemp market, and that drink makers had believed they were safe.
Williams told KERA that Square, a payment processor he said carries 45% or more of the company's sales, emailed to say it would stop doing business with them because of the coming ban. He said the company sells drinks at 10, 25 and 50 milligrams.
"These new rules and new law that would go into effect on December 11th will put us out of business," he said.
Martin said the company also manufactures its own products in plants the founders paid for, and that "95% of our revenue is cannabis-based."
The case for the ban
Kentucky Republican Sen. Mitch McConnell, who pushed hemp legalization in the 2018 farm bill, added the ban to the bill that ended last year's government shutdown, AP reported. AP described the target as a loophole that allowed untested THC snacks, vapes and drinks to spread to gas stations and convenience stores, where teens could buy them.
"I have sympathy for people losing their jobs, but I also have sympathy for the many, many more people whose lives are affected by this," Kevin Sabet, who leads the group Smart Approaches to Marijuana, told AP.
