The Kentucky Office of Medical Cannabis (OMC) issued a new Technical Advisory (2026-012) providing guidance on the definition of “medicinal cannabis product” and clarifying when and how a licensed processor may transfer unfinished extracted medical cannabis material to another licensed processor. This advisory is particularly relevant for processors working with concentrated cannabis extracts and navigating the statutory potency limits under Kentucky law.
Definition of “Medicinal Cannabis Product”
Under KRS 218B.010(18)(a), “medicinal cannabis product” means “any compound, manufacture, salt, derivative, mixture, or preparation of any part of the plant Cannabis sp., its seeds or its resin; or any compound, mixture, or preparation which contains any quantity of these substances when cultivated, harvested, processed, produced, transported, dispensed, distributed, sold, possessed, or used in accordance with this chapter”. Notably, OMC interprets this definition to include any extracted medical cannabis material. This means that concentrates, distillates, and other extracted forms of cannabis are considered medical cannabis products for regulatory purposes.
Because extracted material falls within this definition, it is subject to the potency restrictions set forth in KRS 218B.095(2)(b)3 and 915 KAR 1:040, Section 4(1)(c). Specifically, a cannabis business licensed under KRS Chapter 218B shall not acquire, possess, process, manufacture, deliver, transfer, transport, supply, dispense, or sell any medical cannabis product—other than raw plant material or edibles—with a delta-9 tetrahydrocannabinol (THC) content of more than seventy percent (70%).
Possession of Unfinished Products over 70% THC Limit
The advisory recognizes a practical reality of cannabis processing: extracted medical cannabis material will often exceed the 70% THC potency limit upon initial extraction. To address this, 915 KAR 1:040, Section 4(2) permits a processor to possess unfinished medical cannabis products not ready for retail sale that exceed the delta-9 THC limits. However, all finished medical cannabis products intended for sale to cardholders must comply with those limits. Processors will need to perform safe and appropriate dilution of concentrated extracts before the resulting products are suitable for retail.
Transfer of Extracted Material Between Processors
Perhaps the most significant clarification in the advisory relates to processor-to-processor transfers of unfinished extracted material. While licensed processors may possess extracted medical cannabis material exceeding the 70% THC potency restriction—provided it is not a finished product intended for sale to cardholders—the rules for transferring that material are more restrictive. A processor licensee may only transfer unfinished extracted medical cannabis material to another licensed processor if the extracted material does not exceed the potency limits imposed by KRS 218B.095, Section 1(2)(b)(3).
In other words, the possession exception for unfinished products that exceed 70% THC does not extend to transfers between licensees. Processors planning to transfer extracted material to another licensed processor must ensure the material has been diluted to comply with the applicable potency limits before the transfer takes place.
Key Takeaways for Licensees
Processors should review their operations and SOPs in light of this distinction. While high-potency extract may be held in-house during manufacturing, it cannot be transferred unless compliant. Licensees engaging in processor-to-processor transfers should also document THC potency testing prior to transfer to demonstrate compliance.
If you have questions about how this advisory affects your operations, aligning your SOPs with applicable regulations, and/or preparing for inspections or audits, please reach out to the team for assistance.
