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Delta Extraction’s synthetic THC at center of Missouri marijuana recall

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At the center of Missouri’s massive marijuana recall is a THC concentrate, or distillate, made partially from hemp.

Robertsville-based marijuana manufacturer Delta Extraction has denied accusations that it illegally imported marijuana into the state by arguing it actually imported a non-psychoactive hemp product that was converted into THC once in Missouri.

The commissioner overseeing Delta’s appeal of the recall and license suspension said the company will likely lose that argument, because it’s illegal to add “hemp-derived chemically modified ‘converted’ cannabinoids” to marijuana products.

But a lab in Florida — where Delta bought a good amount of product — says the commissioner’s description of “chemically modified” isn’t quite right.

JJ Coombs, owner and CEO of Arvida Labs in Fort Lauderdale, walked The Independent through the extraction process to make the concentrated THC-A, a cannabinoid that must be heated to produce a high — insisting it didn’t involve a chemical conversion.

It’s a fairly new process, Coombs said, that involves breeding hemp plants to have higher concentrations of the potentially intoxicating property THC-A. And it’s a process neither the state nor Delta leaders could explain during the company’s appeal proceedings.

Unlike marijuana, hemp has very little psychoactive properties naturally — which is why it was taken off the federal controlled substance list in the 2018 farm bill. But since then, businesses like Coombs’ have been in a race to create ways to produce the most predominant psychoactive active element in marijuana, delta-9 THC, using the hemp plant.

“THC-A is becoming popular because it’s able to convert into delta-9,” he said. “It’s like the new hot thing… That’s what everybody wants right now.”


For Missouri’s marijuana industry, businesses like Coombs’ pose a threat to their livelihoods, especially because Missouri cannabis licensees must go through a rigorous and costly regulatory process — one that hemp companies don’t.

However, for the Missouri hemp industry, the Delta Extraction case makes their argument for them: That hemp-derived THC is legal under federal law and it’s a safe, viable business for Missouri farmers.

Sean Hackmann, president of the Missouri Hemp Trade Association, said Delta sold more than $20 million of distillate that was a mixture of marijuana grown in Missouri and hemp from other states.

“Twenty million dollars in the Missouri hemp industry would be huge, if that was produced, extracted and processed inside our state,” Hackmann said. “But it was all some other state that benefited from that. Not our Missouri industry.”

As the Delta recall winds its way though state legal proceedings, the future of the hemp industry has also been in legal flux on a federal level.

On Sept. 8, a federal judge in Arkansas granted a preliminary injunction in a lawsuit against the state, saying that hemp-derived cannabinoids, like THC-A, are protected under the 2018 farm bill.

But a few months before that, the U.S. Drug Enforcement Administration reaffirmed its position that all these cannabinoids are illegal under federal law and not protected by the farm bill, said attorney Clark Wu, an Arizona-based who specializes in hemp and cannabis law.

“Ultimately, it’s hard to say whether this judge or the DEA is more ‘right,’ as different limitations of authority constrain them,” Wu said.

The federal judge indicated that Congress should be the one to decide how to regulate hemp-derived THC products, Wu said.

“The DEA, on the other hand, is viewing everything from a criminal lens,” Wu said, “and the agency is also bound by precedent in agency decisions and international treatises concerning cannabis scheduling. These cases will likely continue to arise until Congress resolves the gap in federal hemp legislation.”

An attorney for Delta Extractions did not respond to a request for comment.

Eva Tesfaye

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Harvest Public MediaThe Hemp Haus does its own set of tests on its CBD products in the absence of formal regulation from the FDA.


Arvida’s process

Coombs, who is an advocate within the hemp industry in Florida, says staying in line with the changing legal opinions is taxing on hemp businesses.

“You’re literally sometimes a couple of degrees away from something not being compliant and losing a lot of money,” he said.

As far as his company’s process and products, he says he’s an open book.

“I just want to be transparent about this,” he said, “and make sure that people understand what this is — because it is complex, right?”

The confusion about Arvida Labs’ product being made using a chemical conversion process is understandable, he said, because most people don’t know labs can extract large amounts of THC-A from the hemp plant.

The most common way to get delta-9 THC from hemp is usually a chemical conversion process from CBD, which is the more common cannabinoid in hemp.

And that’s exactly the process Delta’s leadership testified was being used, at one point, with its products — a revelation that shocked businesses who purchased Delta’s distillate and thought it was made with 100% marijuana.

But it also outraged labs that test cannabis products in Missouri and need to know what chemicals were used in the process in order to ensure safety tests are accurate.

Although Delta’s leaders were asked during appeal proceedings to explain the difference between the CBD conversion process and the THC-A product, they failed to do so.

The distinction is important, Coombs said.

Coombs says Arvida purchased the hemp from farmers in Texas, Tennessee and Kentucky who’ve learned to breed the plants to have higher concentrations of THC-A, he said, using federally-approved strains.

THC-A is not intoxicating unless you heat it up, and then it turns into delta-9 THC. For example, eating raw marijuana flower won’t produce a high because there’s only a small amount of delta-9 THC but a lot of THC-A.

Hemp has very little THC-A, so it takes about 90 pounds of hemp to make 1 kilo of THC-A isolate, or powder, Coombs said.

“It’s not that much in the grand scheme of things,” he said. “Most labs that are still in business are doing on average 16,000 pounds of extraction per day, if not more.”

The isolate is then put into oil for transport, which is why the shipping labels the state authorities presented as exhibits in the Delta Extraction case said “THC-A oil,” Coombs said. It didn’t mean that it was concentrated THC-A oil, he said, because that would make it more likely to convert into delta-9 THC before it got to Missouri — and the company went through what’s called a “decarboxylation” process, or heating it.

He said Arvida’s THC-A didn’t go through an “isomeric conversion” — or the process of converting CBD to THC which often involves a variety of chemicals. Because of that, he said it would have passed all the Missouri mandated tests, which look for residue from chemicals used in the typical extraction process.

And because the hemp was grown in Texas, he said, so there were no foreign pesticides used that the lab wouldn’t have picked up on if the hemp was grown in another country.

However, Kevin Halderman, board member for the hemp association and a hemp business owner in Osage Beach, said he questions whether or not the hemp came from Texas.

“They don’t have to disclose that,” Halderman said. “If they’re in Florida, a lot of Florida products come from out of the country. They’re coming from Colombia, Costa Rica or Panama.”

Coombs insists that it isn’t foreign hemp.

Green Precision Analytics is one of the labs that Delta Extraction used to test the distillate at the heart of the recall. Anthony David, the lab’s owner and chief operating officer, told The Independent previously that he had no idea Delta was incorporating imported hemp in the products.

However, David also said there was no trace of the THC coming from an isomeric conversion process. Usually he can see a difference in curves of the chromatography, David said, but he didn’t in this case.

Coombs said that’s because it was done through a normal extraction process.

Brian Grimmett

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Kansas News Service More than Kansas 200 farmers rushed to grow hemp when it was legalized in 2018. But each year the state see fewer farmers signing up to grow it and a drop in CBD oil demand may be the cause.



Delta’s appeal

The question about the hemp product was discussed during a Aug. 14 hearing regarding Delta Extraction’s license suspension and the recall.

Delta Extraction is a licensed marijuana manufacturer that specializes in making distillate, a highly potent and pure form of THC oil used for things like vape pens and edibles.

On Aug. 2, the state regulating agency suspended Delta Extraction’s license after accusing the company of sourcing untested “marijuana or converted hemp from outside of a Missouri licensed cultivation facility.”

The state argues it banned importing hemp from other states and adding it to marijuana products in its emergency rules filed on Jan. 20.

In its appeal, Delta argues that the Missouri didn’t specifically ban this process until the state’s final rules went into effect on July 30 of this year.

But Carole Iles of the Administrative Hearing Commission said in an Aug. 29 order that the company will likely lose on that point. The only thing the cannabis regulating agency, the Missouri Department of Health and Senior Services, added to this line in the final rules was the clause “such as THC-A …”

“We agree with the department that language added to the permanent rule … did not change the requirement of the emergency rule that THC in marijuana products could only be derived from marijuana cultivated by a Missouri-licensed cultivation facility,” the order states.

The hemp association does not have an official position on the Delta case. However, Halderman said he’s personally “sad” that customers were misled.

At some point, Delta Extraction was taking CBD and chemically converting it into THC. They were then adding it to THC concentrate from Missouri-grown marijuana concentrate and not disclosing that to marijuana customers.

“They were straight up lied to,” Halderman said.

Probably the most frustrating piece for Halderman, he said, is that Missouri industry leaders have consistently been using “rhetoric” that hemp-derived THC products are unsafe. This spring, marijuana industry leaders also pushed for legislation to regulate hemp-derived THC products, and Halderman said it would’ve killed their industry.

This spring was also the time when Delta Extraction was selling large amounts of the distillate that led to the recall.

“At the same time that they’re trying to make us illegal, they were using our whole process,” he said. “Not a portion of it, our whole process.”


‘Unclear’ testimony

During the hearing, Iles was trying to understand more about what Delta Extraction was doing. She said the company leaders and state officials were using the CBD and THC-A oils “interchangeably.”

“I think the testimony was kind of unclear,” Iles said at the hearing. “It looks like we’re all kind of confused here.”

Coombs said that marijuana companies who purchased Delta’s distillate should not feel “duped” because the same extraction process used to get delta-9 THC from marijuana was used to get THC-A from hemp.

“It’s the same exact thing,” he said. “There’s no difference. Hemp is cannabis, just with no delta-9 THC.”

Both hemp and marijuana belong to the same species, Cannabis sativa, and the two plants look somewhat similar. The defining difference between hemp and marijuana is how much delta-9 THC they each have.

By federal law, marijuana refers to all parts of the plant cannabis sativa with more than 0.3% delta-9 THC by dry weight. Hemp is any part of the plant containing less than that.

Wu, along with leaders of Missouri’s hemp industry, call these definitions “legal fiction” because it’s all the same plant.

“Seeds have no THC,” Wu said. “So even though certain seeds can be cultivated into ‘cannabis plants,’ some operators – hemp and marijuana – have taken advantage of the current state of law and lack of federal enforcement to sell seeds across the United States. That is likely how the Florida operator acquired hemp and high THC strains of plants for THCa production.”

This story was originally published by the Missouri Independent.

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Laclede’s Landing is moving from nightlife hub to neighborhood

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Laclede’s Landing has cycled through many identities throughout the history of St. Louis. Now, some people involved with its redevelopment in recent years hope the landing’s next one will be as a residential neighborhood.The small district tucked directly north of the Gateway Arch National Park has quietly undergone a massive redevelopment with more than $75 million pouring into the rehabilitation of many of the historic buildings at the landing.“We are starting to feel that momentum, especially in the last really 60 days. Things have drastically changed around here,” said Ryan Koppy, broker and owner of Trading Post Properties and the director of commercial property for Advantes Group.Advantes alone shouldered the rehabilitation of six of the historic buildings, which now sport a mix of apartments and retail or office space, he said. Four of those buildings are completed, and of the 119 apartments available, about 90% are filled, Koppy said.“It just shows you what kind of demand we do have for the area,” he said. “We’re separated from downtown a little bit, and for the tenants, their local park where they’re walking their dogs, it’s a national park.”

Sophie Proe

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St. Louis Public RadioInterior of the Peper Lofts at Laclede’s Landing on Aug. 16

Another 40 apartments are set to come online next year along with some retail space, Koppy said. He added he’s noticed a wide range of people who are considering and moving into the newly refinished apartments.“It’s very mixed, surprisingly,” Koppy said. “We have a lot of young professionals, maybe on their second job out of [university], we have some empty nesters too.”Part of the newfound momentum comes from a new market, the Cobblestone, and coffee shop, Brew Tulum, opening recently and bringing more foot traffic to the area, said Brandyn Jones, executive director of the Laclede Landing Neighborhood Association. She added that more apartments are set to come online within the next few months.“We have a great riverfront area here and so there are plans in the works to activate those spaces, bring people in,” she said.That could be more daytime events, like a farmers market, music festivals (one of which is happening this weekend) or just bringing in food trucks to Katherine Ward Burg Garden, Jones said. It’s a departure from the identity the district held a few decades ago as a hub for nightlife and entertainment.“That’s part of what connects so many people to Laclede’s Landing,” Jones said. “It’s important to tell the story of where we’re evolving. It won’t be what it was in the same exact way, but it will still be fun, and it can be fun early morning, midday or late night.”It’s a view shared by Koppy.“It’s grown up, it’s a bit mature,” he said. “We’re not going to have 3 a.m. bars here anymore because we have residents here.”Koppy added that Advantes is joined by other developers working to rehabilitate buildings in the district.“We all work in unison,” he said. “If I get a call and [a client is] asking for something and maybe the square foot doesn’t really match up with what I have available, but I know it matches up over there, they’re getting a very warm welcome and introduction.”

Sophie Proe

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St. Louis Public RadioRyan Koppy looks out the window of Brew Tulum Specialty Coffee Experience on Aug. 16 at the Cobblestone on Laclede’s Landing in downtown St. Louis.

This push toward making Laclede’s Landing a residential neighborhood also comes alongside broader conversations about the future of downtown St. Louis more generally as it looks to move away from a dependence on office space. While the city as a whole continues to lose population, downtown added about 1,700 people between 2010 and 2020, according to U.S. Census data.“It’s been wonderful timing to have all that going on, that stress that you’re not just in downtown to work has been critical to part of this rejuvenation and energy down here,” Jones said. “Sometimes people forget Laclede’s Landing is part of downtown, really the original downtown.”And success in the small district could spread beyond its small confines and potentially serve as a model for success, Koppy added.“My idea is, if we could get all the great things of St. Louis coming in through here, we can eventually spread that,” he said. “We understand we can’t change the whole world, but we’ll just make the effort to try and change the world around us.”

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St. Louis barbecue festival Q in the Lou canceled

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The largest barbecue competition and tasting festival in St. Louis, Q in the Lou, has been canceled. The event was planned for Sept. 6-8, but organizers decided to cancel it due to poor ticket sales and insufficient corporate sponsorship.The traveling festival had low attendance in Denver last week, said Sean Hadley, a festival organizer.“We made the tough decision to cancel Q in the Lou,” said Hadley. “We’re seeing a lack of support … it’s just not there.”The traveling event first came to St. Louis in 2015 and drew hundreds of people to downtown St. Louis for barbecue, live music and a “major party.”“It shut down out of the blue … I’ve gone every year,” said Scott Thomas, local chef and food blogger. “It’s brilliant. You could take a tour of some really amazing barbecue restaurants and competition barbecue guys all in one place.”In a late July news conference, city officials touted Q in the Lou as a significant tourism draw and a boost for downtown revitalization.“Bringing a signature national festival back to downtown St. Louis … is making us stronger,” Greater St. Louis Inc. CEO Jason Hall said then.Less than a month later, ticket holders from every festival stop learned they’d be refunded. On Monday, organizers privatized the Q in the Lou website and deleted its social media accounts.Conner Kerrigan, a spokesperson for Mayor Tishaura Jones’ office, said city officials are disappointed the festival won’t be back this year.“St. Louis knows how to throw a festival … bringing people together to celebrate our culture is one of the things we do best as a city,” Kerrigan said in a statement. “Should Q in the Lou try to come back next year or any year after that, they’ll have the support of the Mayor Jones administration.”

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Alton’s Jacoby Arts Center likely to relocate permanently

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The Jacoby Arts Center, a staple of Alton for many in the Metro East community, will likely permanently move out of its downtown building at the end of September.Its departure and relocation from the historic building that the arts center has called home for the past 20 years has created a tense situation for not only the arts center’s supporters but also the local development company working to revitalize Alton’s downtown that owns the building.“It’s an unfortunate situation,” said Chad Brigham, the chief legal and administrative officer with AltonWorks, the real estate company owned by another prominent local attorney working to develop the town. “I wish there wasn’t misunderstanding and disappointment in the community. It’s difficult sometimes to clarify that.”When news of the likely departure spread in June via a letter from the Jacoby Arts Center to its supporters, an outcry on social media quickly followed. Some assumed it would be the end of the arts center.“There’s a lot of feelings right now that I think are more about the building itself than there are about the Jacoby Arts Center,” said Valerie Hoven, vice president and treasurer of the nonprofit arts center’s board.For supporters of the Jacoby, moving from the building and likely never returning will be a sad affair. Exactly what’s next for the arts center remains unclear. However, Jacoby board members believe this will not be the end of the organization. It will likely look different though.

Sophie Proe

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St. Louis Public RadioThe Jacoby Arts Center earlier this month in downtown Alton

Sophie Proe

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St. Louis Public RadioThe Alton-based Jacoby Arts Center features more than 75 St. Louis-area artists and their work.

The history of the buildingFirst dubbed the Madison County Arts Council, the nonprofit arts center renamed itself after the Jacoby family gave it the current building in 2004. AltonWorks founder John Simmons purchased the Jacoby Building in September 2018, according to property records from the county.Managing the large building, at 627 E. Broadway, became too expensive for the Jacoby Arts Center. In 2018, the organization approached Simmons to purchase it, said Dennis Scarborough, a past president of the board and a downtown business owner.“Of course, it sounded really, really good,” Scarborough said of Simmons’ purchase. “He took over the insurance, property taxes, all those kinds of things that were really, really getting into our budget, and he rented it to us at a fair price.”The two parties entered into a lease agreement initially for five years. Since then, Simmons has spent more than $1 million in upkeep, taxes, insurance and more on the building. The lease has been extended twice until the end of September this year.Over the six years, Jacoby paid $1,500 per month, which covered a portion of the utilities.“It’s been wonderfully generous of AltonWorks,” Hoven said.Because the building is aging and needs repairs, Brigham with AltonWorks and those connected to the arts center have long known the Jacoby Arts Center would need to relocate — at least temporarily.

Renovations on the Jacoby building will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.

News of the likely departure and controversyRenovations will begin this fall. They’ll include modernizing the aging building, repairing the old elevator and putting in apartments on the second and third floors.In May, it became clear that a preliminary proposal for the arts center to return to the building after renovations finished in 2026 would not work for them, Hoven said.She estimates the first floor and basement of the Jacoby Arts Building span roughly 20,000 square feet.

Chad Brigham is a business and legal adviser for AltonWorks.

AltonWorks’ initial idea floated to the arts center would only provide 2,553 square feet, according to both Hoven and Brigham. While the board calculated the price for the new space to be at least triple the current payment, Brigham said there was never a specific price discussed.“No discussion in terms of actual rent price,” he said.AltonWorks didn’t make a specific rent offer because the organization doesn’t even know itself, Brigham said.In addition to cash from John Simmons, there will be loans, tax increment financing and state tax credits to cover the $20 million in building renovations. The entities financing the cost of renovations will also help determine the rent when the construction is complete, Brigham said.Regardless, the price required to return will be too much for the arts center to pay, Hoven said. Also, the organization would like to maintain the many programs it offers to the community — a rentable event space, a dark room and a clay studio, for example — in the future.“For us to really meet the needs of the community and be sustainable, we need a space where we can offer some of those programs — the artists’ shop, and other spaces that offer some kind of income as well — so that we can continue to give money back to the community,” she said.AltonWorks offered at least two other locations as possible alternatives from their vast stock of buildings along Broadway to house the arts center during the roughly 18 months of construction. Those alternatives came with similar deals requiring the Jacoby to cover only utilities, Brigham said.“We did put in a great deal of work behind the scenes in trying to find an interim solution,” Brigham said. “We wanted to find a place for them to go, where it was easy for them to continue programming, whether it’s 100% of it or some portion of it, that would work for them.”Initially, the arts center hoped to keep the basement during the renovations, Hoven said. When it became clear the preliminary offer to return was for much less space than the arts center anticipated, the letter to the community was sent.“The letter that came out was merely showing our surprise,” Hoven said. “Don’t misinterpret it as panic. Don’t misinterpret it as desperation.”

Sophie Proe

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St. Louis Public RadioA smorgasbord of radios are displayed at the Jacoby Arts Center in Alton.

The commentary on social media was passionate. Some critics of AltonWorks said the organization has good intentions but hasn’t executed those plans. Others said Jacoby hasn’t planned well enough for the future.For Brigham and the AltonWorks team, some of the criticism has been disappointing.“I thought that there were some decent solutions. Were they perfect? No, but they were very, I thought, very good solutions,” he said. “And the fact that it has come to the point that it is right now is a bit hurtful.”AltonWorks remains committed to the arts, Brigham said. John Simmons remains one the largest donors of the Jacoby Arts Center, Hoven and Brigham said.“I don’t think there’s ever been a question of our support of that organization — of our affinity for that organization,” Brigham said. “While some of the events were unfortunate, some of them were encouraging. The entire community rallied around the Jacoby Arts Center. That’s a good thing. It’s a good thing to have a love for the arts like that in a downtown community.”Sara McGibany, the executive director of Alton Main Street, an organization aimed at preserving the town, said AltonWorks should be commended for its vision. In many ways, her organization and AltonWorks share a vision for a thriving downtown.Even though AltonWorks hosts public meetings, McGibany believes the current situation lacks true community engagement.“We really think that if AltonWorks can get past some of the communication hurdles — and harness the community’s passion and shift to more of a bottom-up decision-making process that centers on community input — then we can turn around the growing sentiment of distrust that’s happening now,” McGibany said.Scarborough, the past board president and downtown business owner, echoed the praise for Simmons and his support of the Jacoby Arts Center. With the Jacoby likely moving, the future looks bleak, though.“It’s a community arts center that does a lot of good work,” Scarborough said. “The community is going to suffer, and they’re going to be missed by the community if they’re not there.”

Eric Lee

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St. Louis Public RadioShalanda Young, director of the federal Office of Management and Budget, talks to Illinois U.S. Rep. Nikki Budzinski, D-Springfield, during a tour of a construction project by AltonWorks last April in Alton. AltonWorks, who is building the LoveJoy Apartment Complex is receiving over $1 million in federal funding.

What does the future hold?AltonWorks will continue forging ahead with its ambitious plans to revitalize Alton. The organization hopes to conclude construction on the Wedge Innovation Center, which will have a restaurant, retail and co-working space, this fall. Lucas Row, a mix of apartments and retail space, is scheduled to be completed next spring.The remainder of the arts and innovation district, currently named after the Jacoby, will also move forward.“I believe in two years it’s going to be a much different place,” Brigham said of Alton. “It’s going to be thriving. It’s going to be new businesses, new tenants — and it’s going to be a nice proof of concept for what you can do in a small community like that.”The Jacoby board recently formed a strategic planning committee. Its task: figuring out what’s next for the arts center. The committee will reevaluate what space the Jacoby needs, what programs it wants to offer to the community and how they want to make that a reality.Keeping the arts center is essential for board members like Hoven. In her experience, it’s been a place where local aspiring artists get their start.“Art is one of the only ways to show your true authentic self,” Hoven said. “And there’s more people than I realized who do not get that opportunity every day.”The Jacoby will shut its doors to pack over the next month. Hoven said she’s optimistic the board will have concrete plans by the end of September when their lease officially ends.“Alton is such a fabulous and supportive community,” she said. “We still have lots of great options, so that the Jacoby Arts Center will continue to thrive in Alton and beyond.”

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