Alaska cannabis operators say synthetic hemp THC is collapsing legal market

Licensed Alaska cannabis operators are warning that synthetic hemp-derived THC products are undercutting legal cultivators on price and pushing compliant businesses toward failure. The Alaska Marijuana Control Board's June 24-25 meeting in Fairbanks is the next public venue where cultivators may raise the issue. The agenda includes a time-permitting open discussion with cultivators tied to Laboratory Testing Working Group conversations, but no scheduled vote on the matter.

Industry Alarm Over Synthetic THC

Trevor Haynes, president of the Alaska Marijuana Industry Association and general manager of GOOD Cannabis in Fairbanks, described an "unchecked conversion of hemp into intoxicating THC products" flooding both licensed and unlicensed markets at the board's September 2025 meeting. Multiple licensees testified at that meeting that operators converting CBD into Delta-9 THC avoid state excise taxes, which industry members characterized as the highest cannabis excise tax in the nation. Tasha Grossl, licensee of Lady Gray, testified that Alaskan cannabis wholesale oil costs ten to fifteen times more than Delta-9 juice that can be ordered through the mail without paying taxes. Luke Stolz of Salmonberry Farms and Cloudberry Cannabis said the unregulated CBD product is "potentially harmful to Alaskans and not what the voters voted for."

Several speakers also raised consumer safety concerns. Noel Lowe of Country Cannabis testified that CBD oils manufactured in China are entering the Alaska market and that protecting consumers is more important than protecting the economic viability of businesses. Cade Inscho of Cold Creek Extracts said hemp-derived products create isomers and compounds not found in nature that labs are not testing for.

Board Response and Open Questions

Board Chair Bailey Stuart reaffirmed on the record at the September 2025 meeting that converting CBD to THC is not a permissible process. The board upheld an administrative hold on Next Level Labs at that meeting, but several licensees testified that broader enforcement had not followed. Board member Lacy Wilcox stated on the record that illegal THC conversion is not allowed and is very clear, while also calling for an informational meeting on the science behind the conversion.

The June 24-25 Fairbanks agenda also includes a letter to the attorney general item, which is relevant to the enforcement and legal-interpretation questions the industry has raised. The Shoreline Cannabis matter, tabled from the April meeting at the licensee's request to allow time to finalize a pending transfer, returns to the agenda following the Mat-Su Borough Planning Commission's denial of its conditional use permit. The agenda also lists a conversation with cultivators near the end, described as time permitting. Public comment is set for 1:00 p.m. with a three-minute limit per speaker. Remote attendance is available via Zoom. The board's next regularly scheduled meeting after Fairbanks is set for September 2-3, 2026, in Anchorage.