Hemp Thrives In Texas Shops Near Schools: Why This Company Bet On The Country’s Most Regulated Cannabis Market
In a state where cannabis regulations are among the strictest in the country, Texas Original, one of the few medical cannabis providers is navigating a highly controlled market while facing competition from a booming, unregulated hemp industry.
CEO Nico Richardson sat down with Benzinga Cannabis to discuss the company’s challenges, the state’s regulatory landscape and the untapped growth potential Texas represents.
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Texas: ‘The Most Highly Regulated Market In The Country’
Texas has one of the most regulated cannabis markets in the U.S., which presents significant hurdles for operators like Texas Original. “This is the most highly regulated market in the country,” said Richardson.
Nico Richardson – CEO Texas Original – Courtesy Photo.
Texas law caps THC content at 1% by weight, making it nearly impossible to offer inhalable products like flowers, which make up the bulk of medical cannabis sales in other states.
“We are confined to producing tinctures and edibles, but 80-90% of medical sales in other markets are inhalables, which are crucial for patients with conditions that require rapid relief,” said Richardson.
Adding to the challenge is Texas’ requirement that all operations—cultivation, manufacturing, testing, and distribution—must happen under one roof. “We operate one facility in Austin, and every day, we transport products to pickup locations in cities like Houston and Dallas. At the end of the day, anything unsold has to be driven back to Austin,” he explained, emphasizing the logistical hurdles of operating in such a large state under tight regulations.
Why? Massive Potential
Despite these hurdles, Richardson emphasized that Texas Original saw …