Smart Companies Finding Sweet Spot in Cannabis Processing, Manufacturing Opportunities

CannabisNewsWire Editorial Coverage: In between growers and sellers lie several potential places for companies with expertise to firmly establish themselves in the burgeoning cannabis space.

Savvy companies such as Youngevity International Inc. (NASDAQ: YGYI) (YGYI Profile) recognize the potential payoff of being involved in the back end of the cannabis industry. The company’s wholly owned subsidiary Khrysos Industries Inc. just signed a five-year contract to purchase hemp plant biomass for extraction, end-to-end processing and production of hemp-derived products. Indiva Limited (TSX.V: NDVA) (OTCQX: NDVAF) has successfully received an amended license from Health Canada for three additional grow rooms and three additional processing rooms. Neptune Wellness Solutions Inc. (TSX: NEPT) (NASDAQ: NEPT) recently announced that its wholly owned subsidiary received a notification letter from Health Canada indicating that all requested license amendments have been approved. Other cannabis companies are making strategic moves in the industry as well. CannaRoyalty Corporation (CSE: OH) (OTCQX: ORHOF) has obtained final approval to move forward with its plan of arrangement with Cresco Labs, which will result in the largest-ever public company acquisition in the U.S. cannabis sector. And KushCo Holdings Inc. (OTCQX: KSHB) has partnered with C.A. Fortune, a leading full-service national consumer products sales and marketing agency, with the intent to grant viable CBD companies access to large-scale, conventional retail channels.

  • Youngevity is extending its reach beyond offering products to the potentially lucrative areas of processing and manufacturing.
  • YGYI subsidiary just signed a five-year contract to purchase hemp plant biomass for extraction, processing and production.
  • Company moving forward to implement plan to increase processing capabilities by ten-fold.

To view an infographic of this editorial, click here.

Big Business May Be in the Back

The growth of the cannabis industry has been well touted. Consumer spending in the United States topped $10 billion for the first time last year, and that number is only expected to increase, with numbers projected to reach $23 billion by 2022. Some estimates reach even higher — ranging from $31 billion to an almost incomprehensible $130 billion.

With all those big numbers, smart companies are eager to find their place in the industry. An obvious play might be in retail, focusing on getting the highly sought-after products into the hands of eager consumers, whether it be in the medical field or adult-use recreational sector. However, in the world of cannabis, opportunities for a lucrative payday reach beyond simply selling products. In fact, the space between growers and sellers house a number of potential places for companies with expertise to firmly establish themselves in this burgeoning area of commerce.

Picks-and-Shovel Approach

This picks-and-shovel approach is the strategy employed by Youngevity International Inc. (NASDAQ: YGYI), a leading omni-direct lifestyle company that produces a range of consumer-focused CBD products. Recently, however, YGYI is extending its reach beyond offering products to the potentially lucrative areas of end-to-end processing and manufacturing.

With that in mind, the company completed its acquisition of Khrysos Global, a leading manufacturer of commercial hemp-based CBD extraction and post-processing equipment, and an end-to-end processor of CBD isolate, distillate, water-soluble isolate and water-soluble distillate. The company made headlines recently when it opened a turn-key manufacturing facility for various hemp-related finished products.

“We are excited to offer turn-key product solutions to our suite of services,” said Khrysos president Dwayne Dundore. “We believe this expands our competitive advantage within our hemp enterprise by covering all facets of product development to our growing list of clients. The relatively low minimum-order quantity capabilities of this operation combined with our comprehensive testing services should offer a unique value proposition for our customers and those seeking to enter this growing market opportunity.”

“The Khrysos Industries multi-dimensional business model is capable of providing turn-key solutions in this dynamic marketplace,” said YGYI president and CFO Dave Briskie. “The vertical integration of our hemp enterprise provides the potential of higher profit contribution as it leverages the other selling segments within our company. We anticipate expanding the capabilities within the coming months in order to more fully take advantage of these competencies throughout all facets of our business.”

Multidimensional Business Model Gaining Momentum

In addition to its turnkey product solutions, Khrysos just signed a five-year contract to purchase hemp plant biomass for extraction, processing and production of hemp-derived products. The supply contract with Magu Maiden Farms LLC notes that Khrysos will provide extraction services and end-to-end processing to produce isolate, water-soluble isolate, distillate, and water-soluble distillate hemp-derived products.

“We are excited to add this new long-term contract to our portfolio,” said Dundore. “We have strategically targeted multiple long-term relationships that we believe places Khrysos in a stronger position to leverage the expansion taking place within the post-processing area of our business.”

Based on this contract alone, YGYI anticipates extraction and post-processing fulfillment and revenues to begin in the fourth quarter of 2019, with revenues forecasted at $60 million through 2024 based on current market conditions and assuming, among other things, ability to secure buyers for the produced product and the supplier’s ability to supply the biomass for extraction and processing.

“The Khrysos Industries multidimensional distribution business model is gaining momentum,” said Briskie. “The team at Khrysos has executed multiple projects including the buildout and move to our post-processing facilities and the completion of our assembly operations. We continue to see that our pre- and post-processing expertise, combined with the capabilities of our analytical testing lab INX, provides a distinct competitive advantage within the hemp space.”

Gearing Up for Ten-Fold Increase in Capabilities

The momentum doesn’t end there. YGYI’s Khrysos Industries also inked an $11-million supply contract for the sale and processing of 99% pure CBD isolate powder earlier this year. Shipping under the contract began earlier this year and is expected to continue through March 2020.

“We are excited to reach the revenue stage for the end-to-end processing component of our business model,” said Dundore. “This contract encompasses 50% of our production capacity, and we anticipate executing contracts for the balance of our current capacity within the next few months. Based on customer demand, the company is moving forward to implement its plan to increase end-to-end processing capabilities ten-fold by 3Q 2019.”

“The Khrysos Industries business model is multi-dimensional, and we are just now starting to fully leverage the capabilities of our extraction systems, end-to-end processing platform, and the capabilities of INX Labs,” said Briskie. “We anticipate gearing up our production capabilities across the platform as we move through 2019.”

Making Headway in Cannabis

Other companies are making headway in the cannabis industry as well.

Through its newly announced partnership with C.A. Fortune, KushCo Holdings Inc. (OTCQX: KSHB) plans to offer the first large-scale, go-to-market operation focused on helping compliant CBD brands achieve mass distribution across legal markets in the United States. The combination of KushCo’s extensive network of brands and specific hemp-industry knowledge paired together with C.A. Fortune’s industry-leading reach into all retail channels may offer KushCo clients an additional avenue to activate their CBD products.

Indiva Limited (TSX.V: NDVA) (OTCQX: NDVAF) has successfully received an amended license from Health Canada for three additional grow rooms and three additional processing rooms, bringing the company’s annual cultivation capacity to approximately 1,000 kg. The three additional rooms will be immediately populated with plants, using advanced aeroponic grow technology, with the first harvest expected in less than 10 weeks. Indiva has completed the video-evidence package for an additional five rooms, including additional processing space, with the expectation for those rooms to come online in third quarter 2019, subject to Health Canada approval. Once all eight rooms are online, Indiva’s annual flower capacity will be approximately 3,000 kg.

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) announced that its wholly owned subsidiary, 9354-7537 Quebec Inc., has received a notification letter from Health Canada indicating that all requested license amendments have been approved. The approved amendments permit expansion of Neptune’s cannabis operation areas to include an additional extraction room for cold-ethanol extraction, which is faster and more cost-effective than the CO2 extraction currently used. The amendment will up Neptune’s input capacity from 30,000 kg to 200,000 kg., a seven-fold increase that allows the company to accelerate production and enable fulfilment of commercial commitments. The amendment also includes expansion for an encapsulation room where Neptune will produce cannabis-oil capsules.

In what has been called the largest public-company acquisition in the history of the U.S-cannabis industry, CannaRoyalty Corp. (CSE: OH) (OTCQX: ORHOF) has entered into a definitive agreement with Cresco Labs to form one of the largest vertically integrated, multistate cannabis operators in the United States. CannaRoyalty, dba Origin House, has become a leading distributor and providing of brand support services in the state of California, delivering more than 50 cannabis brands to more than 500 dispensaries in California, representing approximately 60% market penetration. The new agreement will result in the two companies forming the premier distribution company serving California, which is the largest cannabis market in the world.

For more information on Youngevity, visit Youngevity International Inc. (NASDAQ: YGYI)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

420 with CNW – Can the Pechoti Method Apply to Weed as Well?

Pecho…what? If you are hearing about the Pechoti method for the first time, you aren’t alone, although this mode of administration of alternative remedies isn’t new. It entails putting drops of essential oils on the belly button as a way of treating different conditions, including PMS, nausea and pain. Now some people have been suggesting that one can ingest cannabis oil in this way. But is this even possible?

What the Pechoti Method Is

As mentioned earlier, the Pechoti method refers to an old Ayurveda treatment method in which essential oils are dropped onto the belly button to combat different conditions.

The Pechoti method derives its name from the Pechoti gland which is said to exist right behind the belly button. This gland remains in existence even if an infant’s umbilical cord is cut, and the gland remains throughout one’s life, according to the believers in this method of treatment.

The advocates of this method reason that once a human is formed in the womb, all the nutrition goes through the umbilical cord until the baby is born. They argue that if a baby could entirely depend on what is coming through the umbilical cord, why shouldn’t an adult continue using this vital part?

How It Works

Doctors who believe in this treatment method, like Dr. Lakisha Jenkins, say that approximately 72,000 veins pass through the umbilical cord and continue to all parts of the body. This means that any oil that is placed on the belly button is eventually absorbed and circulated throughout the body.

Dr. Jenkins adds that the gastrointestinal tract contains multiple cannabinoid receptors. The gut also plays a critical role in our immune system as well as the central nervous system. When cannabis oil is applied to the belly button, it navigates its way to the whole body through the veins that pass through the belly button.

Who Should Use this Method?

Proponents of the Pechoti method say that it works in the same way as suppositories since both are systemic (work on the whole body rather than the small part where they are applied). Since the cannabis oil administered in this way isn’t metabolized in the liver, a user cannot get high.

Consequently, kids and people who are so ill that they cannot smoke marijuana or ingest it orally can benefit from the Pechoti method.

People with endocrine system disorders, nervous system problems, gastrointestinal issues and those with neurological complaints are some of the people who can try using the Pechoti method to administer their cannabis oil treatment.

However, the effectiveness of the Pechoti method for using cannabis oil is subject to one condition; one must use organic oil from a trusted source so that the risk of impurities entering your bloodstream is avoided.

Analysts believe that the cannabis industry players like Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) and Golden Developing Solutions Inc. (OTC: DVLP), must be amazed at how creative people have become in coming up with different ways to ingest cannabis.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Senate Committee Confirms Marijuana Banking Hearing Date

On Monday, we reported that a key senate committee would soon schedule a hearing on marijuana banking. Now the Republican-controlled committee on Banking, Housing and Urban Affairs has revealed that it will hold this hearing on Tuesday next week (July 23).

This announcement comes as yet another indicator that marijuana reform is gaining momentum at the highest levels of decision making in the country. The legislation to be discussed is geared at finding a solution to the challenges that marijuana businesses have been having regarding access to banking services.

A similar law, which was passed by a Congressional committee, now has almost half of the members of Congress as co-sponsors after 206 representatives signed on. The Senate companion bill so far has 32 senators signed on from a total of 100 senators in that chamber.

The senate hearing slated for Tuesday is titled “Challenges for Cannabis and Banking: Outside Perspectives.” Representatives of CUNA (Credit Unions National Association), Smart Approaches to Marijuana (a prohibitionist advocacy group) and Citywide Banks will testify during this hearing.

Jim Nussle, the CEO and president of CUNA remarked that his organization was willing and happy to work with senate leaders to find a solution to marijuana banking which is a public safety issue.

John Lord, the CEO of LivWell Enlightened Health (a marijuana retail chain) is also lined up to testify before the senate committee, as will Cannabis Trade Federation’s Neal Levine (who also testified before a sub-committee of Congress on how prohibition can be ended).

Sen. Cory Gardner (R-CO), the main GOP cosponsor of the Senate cannabis banking bill has also been booked to appear before the committee during this hearing.

Support for marijuana banking has been growing steadily with pressure being mounted for action on this matter by the highest financial sector regulators in 25 states, a huge majority of state attorneys general, 20 state governors from both sides of the political divide, banking associations from 50 states across the country and the National Association of State Treasurers. All these groups want the STATES Banking Act to be passed by Congress.

While Chairman Crapo is personally opposed to marijuana, his scheduling of the senate committee’s hearing on this matter shows that he recognizes that matters of cannabis banking present serious public safety concerns that have to be addressed soon rather than later.

Consensus is also growing on the need to make broader reforms to marijuana policy beyond access to banking services. The clearest example of this was the Congressional subcommittee hearing last week at which all parties agreed on the need for reform although there were some disagreements on how that reform can be realized.

Industry watchers believe that the entire marijuana industry, including Geyser Brands Inc. (TSX.V: GYSR) and Earth Science Tech Inc. (OTCQB: ETST), is now encouraged to believe that federal marijuana reform may happen soon.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – New Jersey Starts Accepting Applications from Additional Marijuana Businesses

On Monday, the Department of Health in New Jersey announced that interested parties could start submitting their applications to grow and sell marijuana. Both nonprofit and for-profit entities are eligible to apply during this round of licensing.

Those planning to be growers or sellers of medical marijuana have until August 21 to submit their applications. New Jersey plans to license five additional cultivation facilities as well as 15 medical marijuana dispensaries. 4 licenses will also be granted to “verticals.” These are entities which are vertically integrated (they can cultivate, process and sell marijuana).

Entities that apply for the licenses will pay an application fee of $20,000 and those whose applications aren’t successful will get back $18,000 of that application fee.

All the people involved in the companies that apply have been notified that they will be subjected to a criminal background check. These people include directors, owners, board members and employees.

The interested companies are also expected to provide proof that the local authorities in the area where they wish to operate have given them approval to operate a marijuana business in that area.

Another requirement is that the companies must submit their security plans as well as an environment impact statement as they send in their applications.

All the companies that apply are expected to show that they have sufficient experience in the particular aspect of the industry for which they would like to be licensed. For example, aspiring growers must show they have experience cultivating medical marijuana. Quality assurance and quality control are important, so applicants are also required to submit their plans for these aspects of their operations.

While the state hasn’t imposed any minimum level of capitalization that aspiring industry participants should have, the applicants are nonetheless expected to provide proof that they have sufficient funding for the operations they wish to undertake. Funds should be available for the activities shown in their plans.

The state has also organized a pre-application webinar for all those interested on August 2. The Department of Health has revealed that people can submit the questions that they would like the department to address during that webinar. While it may not be practically possible to respond to each of the questions submitted, the state will address the issues that cut across the queries sent in.

This medical marijuana program expansion comes at a time when plans to legalize adult-use pot failed after advocates failed to secure ample support in the state senate and a vote on the matter was called off at the last minute. Analysts expect that the cannabis industry, including entities like Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) and ChineseInvestors.com Inc. (OTCQB: CIIX), will take comfort in the fact that with the expansion of the medical cannabis program, patients will get solutions to many of the issues that they have been facing, such as lack of variety in the products available.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Marijuana Legalization Results in Fewer Illegal Grows in National Forests, Study Finds

New research shows that as marijuana started being legalized for recreational purposes in different states across the U.S., the reported cases of illicit grow sites within protected lands started falling.

The research findings, released in Ecological Economics, specifically point out that illegal grows on national forests saw a major decline in the Pacific Northwest after cannabis legalization started.

USDA’s Forest Service analyzed the available data on the illegal marijuana grow sites discovered and reported between 2004 and 2016. This data was in regard to 111 national forests. The researchers considered several factors, such as the retail price of pot, state laws, risks of being discovered running an illegal grow site, and many others.

The researchers then used that data to create six different simulations of what would happen to the number of illegal grows if marijuana policies changed.

For example, one simulation seeks to see how the number of these illegal grows would change if all the state laws legalizing both medical and recreational cannabis were revoked. Another simulation explores what would happen assuming that all the taxes on the legal marijuana on the market were waived/eliminated.

The researchers found that policies legalizing some form of marijuana are linked to a reduction in the number of reported cases of illegal grow sites within national forests.

The predictive models of the research also show that if the existing medical and recreational marijuana laws in different states were to be revoked, then the rate at which illegal grow sites would be discovered is likely to grow by double digit percentages while expanding the number of states with laws legalizing marijuana would reduce such grows by at least a fifth, as per the available 2017 data.

For example, if all the 23 states that had enacted medical cannabis laws by 2016 enacted recreational marijuana legalization laws as well, then the illegal grows within those areas would reduce by at least 35 percent and as high as 51 percent.

While the researchers found that marijuana decriminalization didn’t have any effect on illegal grows, they discovered that imposing harsher penalties on those convicted on charges related to illegal marijuana cultivation activities had an effect of reducing the number of illegal grows. Increasing law enforcement personnel in the national forests only had a negligible effect on the stats, according to the research.

The study concludes that of the two ways (legalization and increased enforcement) to reduce illegal grows in forests, legalization offers a more cost-effective way to preserve the forests from the attendant problems, such as the use of strong rodenticides, which come with the illegal grow sites.

Analysts think industry players like Chemistree Technology Inc. (CSE: CHM) (OTCQB: CHMJF) and Canopy Rivers Inc. (TSX.V: RIV) (OTC: CNPOF) aren’t surprised by the findings of this research since the cannabis industry has always asserted that legalization can stamp out the black market and its risks.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

With 10,000 Licenses Issued, California Reflects the Growing Power of Hemp

CannabisNewsWire Editorial Coverage: As hemp production increases, Californian legislators have extended the duration of thousands of cannabis cultivation licenses to support the state’s thriving industry.

Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile) is supporting many of these companies that have cultivation licenses by providing cultivation and extraction equipment. Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), one of the biggest companies in the sector, is increasing its growing capacity while helping educate about medicines. Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is leaning into new technology, with new facilities for R&D and processing. The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) (TGODF Profile) has tapped into the demand for organic produce and is now expanding into global CBD market. GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF) is developing powerful new medicines, in which hemp could help tackle previously uncurable illnesses.

  • California is one of the largest regions for cannabis and hemp cultivation.
  • Recent legislative moves show that the state’s politicians are hemp friendly.
  • Demand for hemp and cannabidiol (CBD) continues to soar.
  • Companies are responding with increased production, acquisitions and new technology.

To view an infographic of this editorial, click here.

The Land of Mass Licensing

The past year has seen substantial growth in the Californian hemp industry, and with that growth came challenges for the state’s governing bodies. The state is home to one of the largest legalized recreational cannabis markets in the world, and Californian authorities have reportedly issued over 10,000 licenses to producers, processors and retailers involved in the cannabis industry. This includes those working with hemp, a non-psychotropic form of cannabis, and CBD, a chemical derived from hemp.

The swift growth of the state’s industry almost triggered a crisis this spring, as thousands of temporary licenses were set to expire before authorities had time to process permanent licenses. The state senate stepped in to extend the duration of temporary licenses and protect law-abiding business owners from a bureaucracy struggling to keep up with demand.

The legal move to extend the licenses may indicate the state’s political attitude toward the industry and holds promise for companies working in California.

A Friendly Place to Work

For companies working with hemp and related products, California is possibly the most business-friendly place in the world to be based. The state is headquarters for a wide range of companies working in the sector, from producers and retailers to companies providing support services, such as Sugarmade Inc. (OTCQB: SGMD).

Based in Monrovia, California, Sugarmade develops brands and products with disruptive potential. Over the past few years, this strategy has led the company to develop a growing focus on hemp and the surrounding sector, a space filled with innovation, fast-developing new practices and promising potential.

Rather than being cultivator or retailer, however, Sugarmade is a supplier of vital materials to the hemp industry. The company sells hydroponic equipment and supplies needed for growing consistent, high-quality crops in secure, climate-controlled indoor facilities. SGMD is moving deeper into the market by extending its catalog to include extraction equipment, essential in the process of acquiring valuable CBD from hemp plants.

California is home to so many of these companies for a number of reasons. The state is one of the largest markets in the world by population for hemp and related products, with only Canada matching it in scale. In addition, California is one of the first areas to become friendly to the industry, passing groundbreaking legislation in the 1990s allowing the space to progress.

This attitude has been both supported and encouraged by a political establishment that appears to look favorably on the industry. The Californian senate, having seen thousands of new businesses such as Sugarmade spring up, is eager to nurture these entities for the jobs and wealth they bring to the state’s economy. This general support is reflected in the government’s decision to extend temporary licenses to prevent new businesses from faltering just as they had been established.

Staggering growth has caused challenges for the Californian authorities in providing licenses. The federal legalization of hemp in December added to interest in the industry and pressure on the licensing system. The state’s responsiveness to problems within the system has shown how serious it is about hemp and creating a friendly environment for the likes of Sugarmade and its customer base.

The Hemp Revolution

The situation in California appears to reflect a much wider pattern in the hemp industry, across the United States and beyond.

Ten years ago, hemp was barely even mentioned in conversations about business. As a source of useful materials, its use had fallen out of fashion with the end of the age of sail, during which it had provided fibers for ropes and canvas. But then a shift came, as companies in the cannabis space looked for other options they could market. As a nonpsychoactive ingredient, CBD could be sold in markets where cannabis itself couldn’t. And hemp offered a rich source of CBD without many of the complications surrounding the rest of cannabis.

Since then, demand for CBD has rocketed. The component is used in a wide range of products including cosmetics, health foods, and vaping liquids. Companies have emerged specifically to cater to the hemp market, and those companies have turned to the likes of Sugarmade for the equipment they need.

The popularity of CBD among consumers has also rocketed, leading to shortfalls in supply. The 2018 Farm Bill, which legalized the hemp trade at the federal level in the United States, will help with meeting this demand in the long term. But the bill is no magic bullet, and companies need time to gear up in the new commercial environment that has been created.

This gearing up has led to increased demand for cultivation equipment, creating shortages in that area. Cultivators have bought everything that Sugarmade can provide, as hydroponics companies see a boom in sales alongside the hemp companies they serve.

Dealing with Demand

Sugarmade has made a variety of moves — in California and beyond — to meet this growing demand.

Expansion is obviously critical to making the most of this opportunity, and the company has entered a period of serious growth in its sales, product lines and bottom line. As a critical link in the hemp supply chain, Sugarmade is not just in a position to grow, the company must grow in order to meet customer needs.

One of the key tactics in this expansion has been SGMD’s use of acquisitions and agreements. The company acquired Sky Unlimited LLC and, through it, the AthenaUnited.com online sales operation, increasing its sales capacity. Sugarmade has also struck deals with companies such as Hempistry, BizRight Hydroponics and Plantation Corp, ensuring smooth supply chains and greater capacity to meet surging demand.

Adding new technology to its catalog has allowed Sugarmade to make better use of this moment. The company is moving to supply next-generation extraction machinery and develop artificial intelligence systems to monitor hemp crops. By providing its customers with the latest technology, Sugarmade may be better able to distinguish itself from its competitors and ensure the profitability of its customers, for its own long-term good.

Space for Growth

With customer demand firmly outstripping supply, the hemp sector is creating a space in which a wide range of businesses can flourish.

One of the most important is Canadian company Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), which was the largest cannabis company in the world by market capitalization as of April this year. Like Sugarmade, Canopy Growth Corporation has taken big steps to continue expanding and claim a larger share of the hemp and related markets. The company has increased its production capacity through a mixture of acquisitions and ongoing work to increase its existing licensed production facilities. Acquisitions have also featured in its work further down the supply chain, such as acquiring hemp skin care company This Works.

Like Sugarmade, Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is looking to new technology to support its expansion. The company recently announced the creation of an R&D facility, which has the potential to provide new products for a curious and often experimental customer base. To support such innovations, the company is also acquiring a state-of-the-art fermentation and manufacturing facility, which will allow Cronos to produce cultured cannabinoids.

The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) has focused on a specific sector of the customer base, setting itself up as a source of organic and sustainably grown products. The creation of two new production facilities will allow the company to tap into rising demand, increasing its growing capacity from 156,000kg to 202,500kg. And with the growing popularity of hemp-CBD products, the company is setting up a global strategic hemp division to give it greater global reach in an important part of the sector.

GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF) is applying the power of cannabidiol to tackle otherwise untreatable diseases. The company’s 20 years of experience in the sector is currently being applied to seizures associated with tubular sclerosis complex, for which one of its drugs recently underwent successful clinical trials. GW has become a world leader in cannabinoid medicines, whose value is increasingly widely recognized.

With hemp and related sectors growing so fast, California’s senators appear to have made a wise decision to smooth the way for local cultivators. Both customers and businesses in the state and beyond may see the benefits.

For more information on Sugarmade, visit Sugarmade Inc. (OTCQB: SGMD)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Waves of CBD Beauty Products Filling Shelves of Major Retailers Across the US

CannabisNewsWire Editorial Coverage: Mainstream retailers across the United States are embracing the growing popularity of the nonpsychoactive cannabinoid, cannabidiol (CBD), making room for CBD products on their prominent shelves.

With the rise of these cannabis beauty products, major stores from luxury retailers Barney’s and Neiman Marcus down to Walgreens, Rite Aid and now Kroger are stocking products from a range of CBD SKU producers, including Green Growth Brands (CSE: GGB) (OTCQB: GGBXF) (GGBXF Profile), Charlotte’s Web Holdings (TSX: CWEB) (OTCQX: CWBHF), CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST), Organigram Holdings Inc. (TSX.V: OGI) (NASDAQ: OGI) (OGI Profile) and HEXO Corp. (TSX: HEXO) (NYSE American: HEXO).

  • Bridge-building companies strengthening bonds between retailers and CBD producers.
  • GGB has solidified several influential deals with top companies.
  • Cannabis beauty products could make multibillion-dollar impact in the CBD sector.

To view an infographic of this editorial, click here.

Partnerships Key to CBD Growth

The bond between retailers and CBD producers seems to be growing stronger by the month, ushered forward by bridge builders such as Green Growth Brands (CSE: GGB) (OTCQB: GGBXF), whose management team’s CVs read like that of a mall directory, including executive-level experience with major brands such as American Eagle Outfitters, Abercrombie & Fitch, Bath & Body Works, Victoria’s Secret, DSW, Luxottica and Virgin Entertainment.

These relationships have already resulted in GGB inking a series of deals with major retailers, most recently with American Eagle Outfitters. Starting in October 2019, the clothing retailer will be carrying GGB’s hemp-derived, CBD-infused personal care products in almost 500 physical stores as well as on the company website. These products — which include lotions, muscle balms and aromatherapy items — were developed exclusively for American Eagle.

Two weeks prior to the American Eagle announcement, GGB expanded its partnership with Abercrombie & Fitch to offer its Seventh Sense Botanical Therapy CBD products through the iconic fashion brand. The growing popularity of CBD products such as Seventh Sense has led analysts to increase their targets on the cannabis industry as a whole.

Back in March, New York-based investment bank Cowen & Co. put out a study on the CBD market, citing a $16 billion target by 2025. BDS Analytics and Arcview Market Research gave a more optimistic assessment, projecting that the collective market for CBD sales in the US will exceed $20 billion by 2024.

Welcoming the CBD Retail Revolution

Perhaps the most impactful addition to the CBD sector is the rise of “cannabis beauty.” Analysts at Piper Jaffray believe the cannabis beauty wave could potentially boost the overall CBD market to between $50 billion to $100 billion.

In July, American Eagle agreed to stock the shelves of nearly 500 stores with Green Growth Brands’ tailor-made, CBD-infused personal care products. The new line of products will be available as early as October and will be available for purchase online as well.

In late June, fashionable brand Abercrombie & Fitch expanded its partnership with Green Growth Brands to sell Seventh Sense Botanical Therapy products in more than 160 A&F stores. After a retail trial in 10 stores, the increase in exposure is expected to be mutually beneficial as A&F carries Seventh Sense’s CBD-infused body lotions, muscle balms, lip balms and sugar scrubs.

The American Eagle and A&F placements supplemented the string of partnerships Green Growth Brands has secured so far in 2019, which began with a partnership with DSW Inc. to sell Seventh Sense in 96 U.S.-based DSW stores. GGB also signed a licensing agreement with Authentic Brands Group and the Greg Norman brand to develop CBD personal care products for active adult men and women.

With its management team’s impressive retail experience, much of which is centered around prominent space in malls, GGB has aggressively launched its own Seventh Sense stores and kiosks across the country. In just the first four months after launch, over 50 Seventh Sense stores had been opened by June.

GGB’s goal is to have approximately 70 stores opened by the end of 2019. Given the company’s seemingly advantageous deals with major mall chain owners such as Brookfield Properties, Simon Property Group, and a series of independent malls, it appears likely the company will hit this target.

In a recent interview with Jim Cramer, CNBC host of Mad Money, GGB CEO Peter Horvath confidently reiterated his company’s strategy that plays off its retail expertise, and in particular the potential of CBD, specifically topical products. Harvath noted that the partnerships in place mean that GGB stores are opening in prime locations in some of the country’s best malls.

Developments in the CBD Upswing

This potential isn’t being missed by other CBD innovators in the market.

Early pioneers in the CBD space, Charlotte’s Web Holdings (TSX: CWEB) (OTCQX: CWBHF) now manufactures and markets CBD wellness products, including capsules, topicals and gels in more than 3,000 retail locations across the country. Named after a little girl named Charlotte who suffered from up to 300 grand mal seizures per week, the company is focused on what ended up being a cure for her malady — CBD. The brothers who manufactured the strain that helped Charlotte went on to found Charlotte’s Web in 2013. As recently as December 2018, CWEB products were available in 3,680 retail locations. That number has since exploded to 6,000.

CannTrust Holdings Inc. (TSX: TRST) (NYSE: CTST) increased its portfolio by expanding its CBD product lines with the addition of three new products: high-dose CBD oil capsules and a low-dose and high-dose version of CBD drops. In addition, the company recently announced plans to enter the U.S. CBD market, starting with a hemp-production joint venture in California. As part of the deal, CannTrust plans to cultivate upwards of 3,000 acres of hemp for CBD in California. CannTrust continues to develop its lines of innovative products, including CBD beverages, pet-care products and confectionaries.

North of the border, East Coast Canadian company Organigram Holdings Inc. (TSX.V: OGI) (NASDAQ: OGI) is developing a nano-emulsion technique to help cannabinoids such as CBD to dissolve in water, which isn’t done naturally. Organigram has recently developed an emulsification system to turn cannabinoids into a dissolvable powder, making CBD more shelf stable, thermally stable, water compatible and palatable. Focusing outside of the United States and its home jurisdiction of Canada, Organigram Holdings Inc. is making a play to jump the pond into what’s being touted as a lucrative EU CBD market. Teaming with Alpha-cannabis, Organigram has its sights set on the German medical cannabis market, while also partnering with Eviana to obtain hemp-derived CBD to supply into key EU markets.

HEXO Corp. (TSX: HEXO) (NYSE American: HEXO) is also in the development of beverages through its partnership deal with Molson Coors. Aligned with the Canadian brewing giant, HEXO is gearing up for cannabinoid-infused beverages that could one day be sold in the refrigerated aisle of the local grocer. HEXO also recently outlined plans to enter eight U.S. states with CBD products — but not until 2020. The company wouldn’t say which states it is targeting, but expectations are that it will make the move through its joint venture with Molson Coors, which includes plans to co-launch a portfolio of cannabis-infused beverages called Truss.

Key relationships and a promising cannabis beauty space bode well for continued strong growth in the CBD sector. Companies such as Green Growth Brands appear well positioned to take advantage of these opportunities.

For a free research report on Green Growth Brands, visit PotStockNews.com

For more information on Green Growth Brands, visit Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

420 with CNW – Senate Could Hold Hearings on Cannabis Banking Later this Month

The Senate Banking Committee could schedule hearings on bipartisan legislation on cannabis banking in as little as two weeks. This revelation was made by the chairman of that committee, Mike Crapo (R-ID) as he talked to American Banker.

Crapo said that he was looking into the prospect of scheduling a hearing on the matter and added that the hearings will be “relatively soon.”

This statement marks a huge change of heart for the senator from Idaho who is on record saying (in April) that he wouldn’t commit his committee to holding sessions on marijuana banking as long as marijuana is still illegal at the federal level.

Banking industry insiders believe that the committee is likely to have two hearings in the week starting July 22. One hearing will be centered on hearing from the regulators of the banking sector while the second hearing will listen to the other stakeholders on this matter.

A similar bill was passed by the Congressional Banking Services Committee in March and similar language to the contents of the STATES Act was included in the appropriations bill.

While pro-cannabis advocates have been hoping that the STATES Act is put on the schedule for a vote by the entire House before the legislative chamber goes for recess in August, this hasn’t happened as yet. It now seems that a vote on the bill may have to wait until the fall.

Concerns have also been voiced about how the STATES Act would be received once it gets to a Senate that is dominated by Republicans.

Rep. Ed Perlmutter (D-CO), the chief sponsor of the House version of the bill, revealed that lawmakers are currently exploring other ways to generate Republican support for the bill. One of the avenues being explored is including language to the effect that regulators will not prevent payday lenders and gun manufacturers from accessing banking services.

Another avenue that could be used is the inclusion of language that protects the hemp industry so that Republicans don’t look at that the bill as one on just marijuana.

A senate hearing on marijuana business banking would mark another milestone for those who want to see marijuana policy reform. While the STATES Act will not alter the status of marijuana federally, it is a step in the right direction since many advocates see the incremental approach to legalization as a more realistic option when compared to the chances of a standalone bill on legalization passing in both chambers.

Industry watchers believe that the entire cannabis industry, including Cannabis Strategic Ventures Inc. (OTCQB: NUGS) and Youngevity International Inc. (NASDAQ: YGYI), will be waiting with bated breath to hear what comes out from the Senate committee hearings.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Witnesses and Lawmakers Share Views on Federal Marijuana Policy Reform Strategy

Last week, the Crime, Terrorism and Homeland Security sub-committee of the powerful House Judiciary Committee held a landmark session in which they listened to testimony from a variety of experts on how marijuana prohibition could be brought to an end federally.

This hearing was largely focused on evidence, unlike previous Congressional discussions on the matter that largely seemed to be driven by scaremongering. However, there were some disagreements regarding the strategy that should be used to legislate marijuana policy reforms.

For example, Rep. Tom McClintock (R-CA) argued that the Democrats were wrongly framing the issue along racial lines and this would divide the country. The Chairperson of the House Judiciary Committee, Jerrod Nadler, responded by saying that marijuana laws had been designed and implemented in a racially disparate manner, so the solution should also emerge after considering the racial factors involved.

Nadler added that in his own opinion, it is ill-advised to use marijuana, but that doesn’t mean the drug should be criminalized. Instead, adults should be left to make informed decisions on the substance as is the case with other substances like alcohol and cigarettes.

While testifying before the subcommittee, Malik Burnett, a physician at the Johns Hopkins Bloomberg School of Public Health said that it was wrong to have two widely different situations on the subject of marijuana. He explained that the U.S. can be divided into two, with one half made up of whites who are minting billions from state-legal marijuana while the other half of the U.S. made up of poor people, especially blacks, are arrested in their thousands for the same marijuana that whites are getting rich from.

Marilyn Mosby, the State Attorney for Baltimore also told the subcommittee that the current lopsided enforcement of marijuana laws not only worsens the existing inequalities in the U.S. justice system but also alienates the community from law enforcement agencies. No public safety benefit accrues from the enforcement of marijuana prohibition, she added. She concluded by saying that full legalization is the way to go since decriminalization of marijuana isn’t enough. Mosby’s office is noted for announcing earlier this year that they would no longer prosecute marijuana possession cases.

Davis Nathan, the president of Doctors for Cannabis Regulation (a pro-marijuana legalization group of physicians) testified that the prohibition of marijuana has done more harm than any good that was anticipated. He also said that the drug should never have been criminalized since it is less harmful than tobacco and alcohol.

There was a heated discussion regarding the way in which cannabis reform should be made to happen after Neal Levine, the CEO of Cannabis Trade Federation) suggested that the process should be incremental, starting with the passing of the STATES Act currently before lawmakers.

For example, Rep. Steve Cohen (D-TN) wondered why full legalization shouldn’t be done in one fell swoop since prohibition had lingered for far too long. Other lawmakers disagreed and preferred the cautious approach of incremental policy adjustments in order to avoid passing bills that ultimately fail once they reach the Republican-controlled Senate.

Industry pundits strongly believe that the cannabis industry, including players like Willow Biosciences Inc. (CSE: WLLW) and Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF), is hoping that concrete action follows this hearing on the modalities of ending marijuana prohibition.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com

420 with CNW – Group Announces Intention to Initiate Ballot Measure to Legalize Recreational Marijuana in Arkansas

A marijuana education and advocacy group in Arkansas has announced that it plans to file two petitions with the state government so that recreational marijuana can be legalized through a ballot measure. The second petition covers the expungement of marijuana-related convictions.

Drug Policy Education Group (DPEG), the nonprofit planning the petitions, says that they had initially wanted to have both issues (legalization and expungement) in the same initiative. However, their legal advisors recommended that they submit separate petitions since it would be hard for the Attorney General to approve a petition which has a constitutional amendment within another proposed amendment.

Melissa Fults, the Executive Director of DPEG, revealed that they had been planning the petitions for more than a year but they decided to move quickly since the lawmakers seem to be moving towards making it harder for voters to effect changes to the state constitution.

Fults revealed that there was consensus among pro-medical marijuana advocates that the Medical Marijuana Commission (MMC) and the State General Assembly had deliberately delayed the launch of the medical cannabis program after voters approved a constitutional amendment in 2016. Sales started 2.5 years after the constitutional amendment, and sales totaling $2 million had so far been registered.

Fults and other advocates have been trying to see more reforms made to the existing cannabis laws. For example, they tried to expand the list of medical marijuana qualifying conditions to three times its current size but the bill failed to make it beyond committee level during the legislative session that has just ended.

The first petition, named Arkansas Adult Use Cannabis Amendment (AAUCA) seeks to give the state’s finance department, through its Alcohol and Beverage Control Division, permission to draft regulations for the recreational marijuana program (cultivation, manufacturing, testing and sales). Under the proposal, adults who are at least 21 years old will be allowed to purchase recreational marijuana in addition to having a maximum of six seedlings and six mature plants for their own use.

The second ballot petition, named the Arkansas Marijuana Expungement Amendment (AMEA), seeks to allow people who were convicted for possessing up to 16 ounces of cannabis to petition a court (which will be set up for this purpose) to be released from prison, have the conviction expunged or request for the restoration of their rights.

Under Arkansas law, any proposed petition for the passing of a new law requires signatures of at least 8 percent of the voters who participated in the most recent elections. A petition for a constitutional amendment requires 10 percent voter support to be approved for inclusion on the ballot.

The nonprofit and its supporters therefore have their work cut out if their petition is to see the light of day. Pundits think that the entire cannabis industry, including participants like VPR Brands LP (OTC: VPRB) and VIVO Cannabis, Inc. (TSX.V: VIVO) (OTCQX: VVCIF), will be rooting for the success of the initiatives since adult Arkansans will be able to enjoy the numerous benefits of the adult-use marijuana industry, such as employment.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

To receive instant SMS alerts, text CANNABIS to 21000

For more information please visit https://www.CNW420.com

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW420, wherever published or re-published: http://CNW.fm/Disclaimer

Do you have a questions or are you interested in working with CNW420? Ask our Editor

CannabisNewsWire420
Denver, Colorado
http://www.CNW420.com
303.498.7722 Office
Editor@CannabisNewsWire.com