Dangers Lurking in Synthetic CBD Underscore Value of Quality Product

CannabisNewsWire Editorial Coverage: Dating back thousands of years, people have found ways to treat pain and other ailments with cannabidiol (CBD) oil which is harvested from the hemp plant. However, the natural healing properties of CBD are being jeopardized by the advent of man-made synthetic CBDs. These chemical analogs are dangerous imitations of plant-derived product, binding to human endocannabinoid receptors at astronomically larger quantities than natural cannabinoids. These designer drugs prompted the U.S. Centers for Disease Control and Prevention to issue a national health alert warning about synthetic cannabinoids. Shunning synthetics, Marijuana Company of America, Inc. (OTC: MCOA) (MCOA Profile) provides consumers complete transparency and delivering only pure, plant-based 100% hemp-derived products through its hempSMART™ brand. While Medical Marijuana, Inc. (OTC: MJNA) and PotNetwork Holding, Inc. (OTC: POTN) market hemp-derived CBD products, some companies such as Isodiol International, Inc. (CSE: ISOL) (OTC: ISOLF) (FSE: LB6A.F) and CV Sciences, Inc. (OTC: CVSI) utilize extraction techniques to produce isolated cannabinoid compounds for both commercial and/or research uses.

Surging Demand Creates Copy Cats

Hemp-derived CBD grew from a market category that didn’t exist five years ago to generating $190 million in sales in 2017. The U.S. industry is poised to reach $1 billion dollars in 2018, led by hemp-derived CBD, food, personal care and industrial products. Hemp Business Journal estimates the U.S. hemp industry will grow to a $2.6 billion market by 2022 with an estimated five-year CAGR of 25%.

In a recent article, “Fighting fakes: Hemp leaders on the dangers of synthetic CBD,” public health investigators issued warnings when 50 people were sickened after consuming synthetic CBD. What the epidemiologists found was that the products, while labeled CBD, did not contain CBD compounds. Instead, the products contained a synthetically produced cannabinoid.

CBD products are often mislabeled, both in how much CBD the products contain and where the CBD comes from. A study published in JAMA revealed that nearly 70% of online CBD marijuana extracts are mislabeled, some had extra CBD, some less, and some contained hidden CBDs. Blind testing found that only about 31% of the extracts tested contained the amount of CBD listed on the label.

Differentiated from Others

The company’s commitment to quality may differentiate Marijuana Company of America, Inc. (OTC:MCOA) from all others in the sector. MCOA uses the highest-quality sourced raw materials to produce the finest quality botanical supplements and topicals on the market. To ensure quality and transparency, the company’s hempSMART™ product line has been rigorously tested to validate its purity. Products developed by hempSMART are derived and formulated from industrial hemp containing naturally occurring CBD compounds that help support the body’s natural endocannabinoid system. All hempSMART™ products contain tested levels and clinically researched ingredients designed to meet and exceed consumers expectations.

The company is led by cannabis industry pioneer Donald Steinberg, MCOA’s CEO and an experienced veteran of the cannabis and industrial hemp industries. Steinberg founded the first marijuana company ever to trade on a U.S. stock market, and his extensive background and knowledge of the industry may give the company unparalleled insights into the global industrial hemp and cannabis markets.

Celebrated Family of Products

Derived from industrial hemp containing CBD compounds, MCOA’s hempSMART™ product line is among the finest quality of botanical supplements on the market. Scientifically driven, each of MCOA’s hempSMART™ products are created to ensure only the highest quality products reach discerning consumers. MCOA’s hempSMART™ CBD consumer products are researched, developed and sold at www.hempsmart.com.

The company recently re-launched its patent-pending wellness nootropic product hempSMART™ Brain, a “first of its kind” researched formulation for optimal brain function support, with 300mg of full spectrum CBD per bottle. HempSMART products also include full spectrum bioavailable CBD drops in form of a tincture containing a high concentration and potency of CBD, hempSMART ™ Pain capsules with a blend of premium CBD and botanical supplements, and hempSMART ™ Pain Cream with a synergistic combination of natural botanicals and full spectrum hemp extract to treat aching muscles and joints. In addition, the company now provides hempSMART™ Full Spectrum Pet Drops, exclusively designed for fur-bearing family members.

To virally expand sales, MCOA created its own unique hempSMART affiliate network marketing program. The affiliate marketing program provides a generous compensation plan to promote and sell hempSMART’s CBD consumer products in the United States. Advocates of hempSMART’s CBD products make the best ambassadors and the sales model lends itself to rapid global expansion.

Diversified Opportunity

In addition to the research and development of hemp-based consumer products, MCOA is strategically expanding its footprint across multiple facets of the hemp industry, building a portfolio of diversified investments and joint ventures to grow the company and potentially drive shareholder value.

The company recently provided updates on its 125-acre industrial hemp cultivation project in northeast New Brunswick with joint-venture partner Global Hemp Group Inc. (OTC: GBHPF). Planting on the first 77 acres is complete and the remaining 48 acres will be seeded soon. Drying equipment is being evaluated to process the biomass after harvest and management is in discussions with several potential processing partners for the material.

To target impulse buys in high traffic convenience stores, MCOA secured a 25% equity stake in Convenient Hemp Mart, LLC’s BeniHemp branded products. BeniHemp products will include topicals, tinctures, and edibles packaged in one-day, two-day, and 30-day supplies distributed to convenience stores, smoke shops, gas stations and similar small retail businesses.

Each owning 42.5%, MCOA and Global Hemp Group formed a joint venture, Covered Bridge Acres LTD., to develop a high yielding CBD hemp cultivation project in Oregon and committed to jointly invest a total of US$1.2 million into the project. A cornerstone of the project is the acquisition of a 109-acre agricultural property in Scio, Oregon. The property, located 70 miles south of Portland, is situated in the fertile Willamette Valley and has a history of hemp cultivation over the past two years. The farm is ideal for cultivating hemp as it contains a high level of organic matter in the soil and has an established irrigation infrastructure with sufficient water rights.

MCOA successfully raised $1 million in funding for Bougainville Ventures to construct and manage a turnkey state of the art cannabis cultivation and processing facility. The joint venture has completed the setup of 10,000 sq. ft. of greenhouse space and waiting for completion of inspection, the final step before commencing cultivation.

Active Companies Vying for Market Position

CV Sciences (OTCQB: CVSI) operates two business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing naturally occurring CBD; and, a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors. The company recently announced the June 7, 2018, publication of the toxicology and safety results of an extract from the base raw materials used in its PlusCBD Oil™ consumer products. The study, designed to investigate the safety of oral consumption of the company’s hemp CBD oil and to support a Generally Recognized as Safe (GRAS) Independent Conclusion, concluded that the test article was non-mutagenic, non-clastogenic and non-genotoxic.

Isodiol International (CSE: ISOL) (OTC: ISOLF) (FSE: LB6A.F) is focused on pharmaceutical grade phytochemical compounds and is among industry leaders in the manufacture and development of consumer products. The company pioneered the commercialization of 99%+ pure, pharmaceutical grade cannabinoids, micro-encapsulations, and nanotechnology for consumable and topical skin care products. Isodiol earlier this month entered into a binding agreement to acquire 51% of Round Mountain Technologies, LLC (“RMT”), a cultivator of organic hemp with operations in Nevada.

Medical Marijuana (OTC: MJNA), the first publicly traded cannabis company in the United States (founded by current CEO of Marijuana Company of America Don Steinberg), develops, distribute and sells hemp oil that contains naturally occurring cannabinoids, including CBD and other products containing CBD oil. In recent news, MJNA announced its favor on the Drug Enforcement Administration’s (DEA) recent statement on the legality of CBD — which further clarifies that some CBD products, such as hemp-derived CBD products, are legal to distribute throughout the United States and do not fall under the regulations of the Controlled Substances Act (CSA). Additionally, the company’s HempMeds® subsidiary reported the historic authorization of its Real Scientific Hemp Oil-X™ (RSHO-X™) CBD hemp oil product for import into Argentina.

PotNetwork Holding (OTC: POTN) is a holding company for its subsidiaries, First Capital Venture Co. that owns Diamond CBD, Inc., the maker of Diamond CBD oils. Diamond CBD researches, develops and markets hemp extracts that contain a broad range of cannabinoids and hemp derivatives. The company recently announced that Diamond CBD’s online sales increased 639% higher than the year prior. PotNetwork is in currently preparing to file with the SEC to become a fully reporting company.

With an estimated 25% compound annual growth rate, there’s little doubt the about the trajectory of the CBD market. As the market continues its rapid expansion and more people become aware of the dangers lurking in synthetic CBD, it seems reasonable that evermore consumers will gravitate toward high-quality natural CBD product. Companies like MCOA aim to answer that call.

For more information on Marijuana Company of America, visit Marijuana Company of America, Inc. (OTC: MCOA)

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