Fresh Acquisitions Help Companies Profit from Growth in the Cannabis Sector

CannabisNewsWire Editorial Coverage: A wave of acquisitions is sweeping the cannabis sector, as increasing legalization draws the attention of big business.

  • Large and mid-tier cannabis companies are absorbing their smaller competitors.
  • Tobacco and alcohol companies are moving in as a natural extension of their current ranges.
  • This is supported by growth not just among cannabis growers but also for businesses supporting them.

Cultivation supplies company Sugarmade, Inc. (OTC: SGMD) (SGMD Profile) has recently announced the acquisition of hydroponic product companies that could more than double its revenue. Tilray, Inc. (NASDAQ: TLRY) is fueling expansion through an initial public offering as it begins its first sales of CBD oil products in the United Kingdom. Drinks giant Constellation Brands now owns a large chunk of Canopy Growth Corp. (NYSE: CGC), one of Canada’s largest cannabis companies. GW Pharmaceuticals Plc (NASDAQ: GWPH) is releasing fresh shares to fund its R&D-driven growth. Meanwhile, Aurora Cannabis, Inc. (OTCQX: ACBFF) is making acquisitions across the Atlantic, buying out a pair of European hemp companies.

To view an infographic of this editorial, click here.

Acquisitions Grow in Cannabis Sector

Twenty years ago, it would have sounded like a science fiction fever dream, but today the cannabis industry is one of the fastest-growing sectors in the North American economy. The nine U.S. states where recreational cannabis is legal are about to be joined by the entire country of Canada, while another 20 states have legal markets for medical marijuana. Businesses catering to these markets are going from strength to strength, whether selling cannabis, manufacturing products derived from it or providing the tools and support that growers need.

This has led to a flurry of mergers and acquisitions in the cannabis sector. At the top end, large companies from other sectors have started buying into cannabis. Beverage manufacturer Constellation Brands owns more than a third of the shares in Canopy Growth, Molson is working with Hydropothecary, and Phillip Morris has been talking about moving into the sector. Seeing another legal drug coming into play, tobacco and alcohol companies want to buy their part of the future.

And there’s also been a lot of movement within the industry.

Cannabis Companies Buy Up Competitors

Among existing cannabis companies, consolidation is the name of the game. A wide scatter of small companies — startups created within a new and uncertain industry — are combining into larger operations.

One example is a recent series of acquisitions by Sugarmade, Inc. (OTC: SGMD). A Los Angeles company with warehouses in southern California, Sugarmade isn’t a purely cannabis-oriented business, but its work in restaurant supplies and packaging is increasingly taking a back seat. Its higher profile work is in the cannabis sector, where it provides cultivation supplies.

Sugarmade isn’t one of the big players in cannabis, but it has made bold moves for a mid-tier company. Following an SEC filing earlier this year, the company has recently made formal proposals for the acquisition of two hydroponic supply companies catering to the cannabis sector. These acquisitions would more than double Sugarmade’s expected revenue for next year, from $30 million to $75 million.

Even within the cannabis industry, this is an unusual move. Most of the mergers and acquisitions are being led by big companies, who can obtain external investment to drive their expansion. It’s a familiar case of success breeding success, as the largest companies are most able to grow. But Sugarmade is bucking that trend in a move that could see it join the big players, disrupting the status quo of the cannabis industry.

“These acquisitions will not only very significantly boost our top line revenue growth, but will also expand our distribution across the most important sectors of the fast-growing cannabis marketplace,” said Sugarmade CEO Jimmy Chan. “In addition to the revenue growth opportunities, we will also be afforded very meaningful cost savings across many operational functions. In particular, we believe there are strong cost synergies relative to manufacturing, purchasing, international transport, warehousing and shipment to customers. Perhaps most exciting, however, is that these acquisitions will place us among the largest public companies in the booming cannabis sector.”

It’s a strategy that brings a lot of obvious advantages. Greater integration smooths out supply chains and increases efficiency, reducing overheads to improve profits. It increases a company’s ability to bring specialist expertise in house. It increases a company’s influence in negotiating with suppliers and customers, as well as in lobbying authorities.

But in a sector where mergers are likely to continue, it also has another effect. As the big players in tobacco and alcohol look for cannabis businesses to buy, Sugarmade’s growing strength improves its bargaining position. Whether the company aims to be bought up or to hold onto its independence, it will be better able to negotiate from a place of strength.

Supporting Services

Talk about the cannabis industry usually focuses on the cultivators and distributors, those directly dealing with cannabis. But over the past decade, the industry has grown far more diverse. Support companies such as Sugarmade play an increasingly important role.

The most obvious support services are those supplying cultivation equipment. This is where Sugarmade’s main business lies, selling growers the tools they need to produce their crops.

Hydroponics, the growth of plants in water-based nutrients instead of soil, is an important part of this. Used to grow high-quality plants in indoor facilities, this method is central to the cultivation of controlled, high-quality cannabis crops in secure conditions. Hydroponic sales have allowed Sugarmade to expand beyond North America and into the European market, where cannabis is still largely illegal but its cultivation tools have other uses. The companies Sugarmade is buying also work in hydroponics and their acquisition could make the company a major player within that market.

Support services for cannabis are increasingly diverse. Equipment for waste disposal, lighting and growing beds are all important. Some of this is provided by hydroponics companies, while other components are created by specialist firms. Seeds are nurtured and sold, new plant strains grown, and growing and harvesting techniques developed. Research and financial services specifically geared toward cannabis add to a complex and multifaceted industry.

The Potential for Growth

Much as its opponents might disagree, the cannabis industry isn’t going away. In the United States, where Sugarmade is based, the industry shows every sign of continuing its rapid growth.

The biggest driver for growth is still legal change. The legalization of both medical and recreational cannabis has been spreading state by state, as increasingly liberal attitudes are reflected in the law. Though cannabis remains illegal at the federal level, the government has done nothing to clamp down on these efforts by states. If anything, the government’s attitude is softening, with this year’s Farm Bill set to legalize industrial hemp, a nonpsychoactive form of cannabis.

Industrial hemp is already being grown in test projects in the United States, creating impressive profits for the farmers involved. While its cultivation often operates differently from that of medical and recreational cannabis, it relies on much of the same knowledge and many of the same tools. For companies such as Sugarmade, which provide cultivation supplies, industrial hemp will mean significant opportunities for growth.

On top of this, there’s the long-term growth expected from cannabis companies within the states that have legalized their products. As the legal consumer market settles in, the habits of cannabis consumers will change. They’ll move away from buying from criminals, undermining illegal networks and giving more business to the legal companies. As these companies expand production facilities, the need for additional equipment and supplies will increase – supplies that can be provided by Sugarmade and the companies that it’s absorbing.

Many North American cannabis companies are seeing substantial growth. Tilray, Inc. (NASDAQ: TLRY) is looking to finance its ongoing expansion through initial public offerings in the United States and in Canadian provinces. A leading medical marijuana company, Tilray has sold its products to customers on five continents and is one of the first companies to sell CBD oil, a cannabis derivative, in the United Kingdom. Its expansion is driven not by acquisitions but by a strong research and development program.

Canopy Growth Corporation (NYSE: CGC) is one of the largest cannabis companies in Canada. Drinks manufacturer Constellation Brands has pumped over $4 billion into Canopy Growth, and the American giant now owns more than a third of Canopy Growth’s shares. It’s a move that will help the companies to collaborate in producing cannabis-infused drinks, which will become legal in Canada next year. More than this, it’s a move by a drinks manufacturer to get a foothold in cannabis and so expand from alcohol into another legal drug.

GW Pharmaceuticals Plc (NASDAQ: GWPH) has been growing through new products and research, with the creation of the first FDA-approved prescription medicine derived from cannabis plants. It has just announced the release of new shares, which are expected to raise $300 million in support of the company’s ongoing growth.

Aurora Cannabis, Inc. (OTCQX: ACBFF) is going international with its latest acquisition. In September, the company acquired Europe’s largest producer of organic hemp, Agropro UAB, and hemp processor and distributor Borela UAB. This will increase the company’s production of hemp-derived health and wellness products around the world.

With the cannabis industry expanding, mergers and acquisitions are helping to drive a round of growth, creating companies with the power to compete on the global stage.

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

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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.

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420 with CNW – American Cannabis Producers Fear Canadian Industry Dominance

Cannabis industry players in the U.S. are concerned that the stubborn insistence on prohibition by the federal government will give Canadian producers a chance to dominate the marijuana industry.

These sentiments were voiced by Derek Peterson, the CEO of marijuana firm Terra Tech based in California. He revealed that industry players in the U.S. are constrained by many factors which put a damper on their growth and activities.

First, cannabis cannot cross state lines since marijuana is still outlawed at the federal level. This restriction means that producers must operate at low capacity just for the market within the state where they are licensed to operate.

Secondly, the players in the marijuana industry cannot access funding from major banks since the banks fear federal repercussions resulting from doing business with an industry that is considered illegal. Marijuana companies therefore face funding challenges each time they want to expand or conduct expensive product research. In contrast, Canadian firms are trading publicly and amassing capital.

The third impediment is that Customs and Border Protection has vowed to deny entry to any marijuana industry investors. This has deterred some foreign nationals who may have wished to put their money in U.S. cannabis companies.

These shortcomings have given a chance to Canadian companies to spread their operations to the U.S. For example, Tilray was recently permitted to export marijuana extract capsules for use during a study on the impact of cannabis on essential tremor. This was after the researchers convinced the DEA that such products weren’t available locally.

Such inroads are likely to grow over time since Canada has had a head start due to the forward-looking regulatory framework that was passed in Canada upon the legalization of medical cannabis years back and the impending decriminalization of adult use of marijuana a few days from now.

Private firms were allowed to participate in the industry right from its legalization, and that private enterprise has permitted Canada to be a world leader in this young industry. In contrast, the U.S. has for long allowed only Mississippi University to hold the sole license for cannabis cultivation until states started decriminalizing marijuana and licensing their own producers.

The U.S. is therefore having to play catch up with Canada, but the federal prohibitionist stance still limits how quickly the domestic industry can grow since the players are fragmented and can only operate in small jurisdictions. The large U.S. market will only be exploited fully for rapid growth once cannabis is legalized at the federal level. That decriminalization will allow firms like Koios Beverage Corp. (CSE: KBEV) (OTC: KBEVF) and Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) to put all their energies in capturing the massive potential market across the nation.

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420 with CNW – 750 Kilograms of Marijuana Seized By CBP at Canadian Border

Customs and Border Protection officials have announced that they have seized more than 10 shipments of bulk mail from Canada that contained approximately 750 kilograms of marijuana.

The seizures started weeks ago when a tractor trailer carrying bulk mail was flagged for additional inspection at the Port Huron entry point in Michigan. A canine unit drew the attention of the border officials to specific packages in the trailer. Further inspection revealed concealed marijuana.

Other searches conducted during the subsequent weeks unearthed more cannabis destined for the U.S. and concealed in bulk mail packages. No arrests have so far been made over the seized cannabis. The affected trucks and their drivers (all of them Canadian) were released by the Customs and Border Protection agents.

The CBP statement on the matter revealed that this isn’t the first time that attempts are made to smuggle marijuana into the U.S. in bulk mail. They vowed to keep intercepting any marijuana consignments that people try to move across the border from Canada.

The seizures come when recreational marijuana is just days away from legalization in Canada. Investors in the Canadian cannabis industry are already under the threat of lifetime entry bans once the U.S. authorities discover their links to the cannabis industry.

It is still unclear how the legalization of adult use of marijuana up north will affect the volume of marijuana that people try to get into the U.S. where cannabis remains illegal federally. One can expect that as marijuana becomes more readily available in Canada, many more people who travel there may try to sneak it into the U.S. where it is still illegal in most states.

Non-citizens should be particularly careful about trying to carry marijuana into the U.S. because the Customs and Border Protection administration has confirmed that people could be handed lifetime entry bans once found to be consumers or investors in the cannabis industry.

Meanwhile, any illegal substances seized by the U.S. border authorities are kept until they are destroyed. The same fate awaits the 750 kg of cannabis intercepted at this Michigan entry point.

News of such seizures is welcome to companies like Marijuana Company of America (OTC: MCOA) and Medical Cannabis Payment Solutions (OTC: REFG) who jump through all sorts of hoops to meet the strict regulations where they operate while illegal operators distort the market with their unregulated products. Tighter border controls augur well for the legal cannabis industry.

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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.

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420 with CNW – Colorado Prosecutor Threatens Action Against Marijuana Businesses Violating the Law

U.S. Attorney Bob Troyer, the top federal prosecutor in Colorado, has vowed that his office will take firm action against any legal marijuana business that acts as a front for illegal activity, such as selling marijuana on the black market.

Some growers in various states who are faced with excess production are alleged to have resorted to selling that extra produce to the illegal marijuana market rather than see that cannabis go to waste when the legal market cannot buy it all. Such firms are the next target of enforcement efforts.

The attorney revealed that his office had mainly focused its resources on weeding out those who grow marijuana illegally in forests and in their homes. Legal businesses engaged in illegal activities were now on the radar of the federal prosecutor and the label “compliant with state laws” would not suffice to protect any firm found to be breaking the law.

Troyer added that the interest of the federal prosecutor was in the safety of the public. State laws often address those concerns, but federal laws may be invoked in some cases. Marijuana is still illegal at the federal level.

The spokeswoman for Governor John Hickenlooper responded to Troyer’s statement by saying the state authorities have always enjoyed a good relationship with the feds and they are equally concerned about the safety issues raised.

The spokeswoman added that the state will continue to enforce the law, including criminal enforcement, in case justification exists for such action.

Members of the legal marijuana industry have asked the authorities to identify and root out those breaking the law without putting unnecessary pressure on licensed firms who are following the strict letter of the law under which they operate. They also advised that the authorities discuss any concerns that they may have with the legal cannabis industry instead of taking unilateral action that may be detrimental to all concerned.

Troyer revealed that his office will soon take action against a dispensary chain in the Denver area in the coming days. The name of the targeted dispensary chain was not disclosed in his statement.

It appears that the blitz against cannabis businesses breaking the law will mark the final stages of Troyer’s stay in office since Jason Dunn was selected earlier in June to replace him. Dunn’s nomination is awaiting senate approval before he can take office. Troyer has been in office since 2016 when his predecessor resigned.

Companies like Green Hygienics Holdings Inc. (OTC: GRYN) and GreenBox POS, LLC (OTC: GRBX) must be happy that broader action is being taken to wipe out illegal cannabis activity since it affects the operations of the legitimate businesses in the industry.

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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.

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420 with CNW – Arkansas Selects Firm to Review Medical Cannabis License Applicants

Public Consulting Group, Inc. has been selected by the Arkansas Medical Marijuana Commission to score about 203 companies that have applied for licenses to operate medical marijuana dispensaries in the state.

The commission had reached out to 30 firms which they felt had the capacity to undertake the scoring exercise. However, only Public Consulting Group and ICF Inc. responded by submitting bids for the task.

Public Consulting Group was selected after it was found to have submitted the lowest bid of $99,472 compared to ICF’s bid of $361,514. Public Consulting Group’s figure surprised the commission since they didn’t expect it to be so low. However, the firm was selected since no red flags were found to suggest that it would be unable to do a good job.

The selection of Public Consulting Group comes with an added advantage of saving time since their bid would not be subject to legislative approval because that bid is just under the $100,000 threshold for which procurement approval must be obtained.

That bid therefore allows the commission to move fast in submitting the applications to the scoring firm. Public Consulting Group will have 30 days to submit its findings and will suffer a $5,000 penalty for each extra day that it takes without reporting back with its findings.

The Medical Marijuana Commission is under some pressure to complete the licensing process by the end of the year because two of its members are scheduled to retire at the end of 2018. Any delay in the preliminary steps can therefore leave the commission short of quorum and unable to make any decisions until replacements are screened and appointed.

It should be remembered that the decision to hire a third-party to score dispensary license applicants was made after the licensing process for marijuana cultivators earlier this year was dogged by numerous complaints.

The 5-member Arkansas Medical Marijuana Commission had reviewed the applicants for cultivation licenses and had selected five companies out of the 83 applicants. The unsuccessful applicants complained that the commissioners were biased and didn’t make any attempts to verify some of the claims that were made by the firms which had applied for licenses to grow marijuana for medical purposes.

It was therefore decided that external help be procured when applications for dispensary licenses are being reviewed so that similar controversies are avoided. All eyes, including those of Global Payout, Inc. (OTC: GOHE) and Golden Developing Solutions, Inc. (OTC: DVLP), are now on Public Consulting Inc. to see how quickly they can push the process which will see patients finally getting access to medical cannabis after a long wait that began in 2016 when voters amended the constitution to decriminalize medical marijuana.

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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.

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Public Acceptance Fuels Growth of CBD and Support Industries

CannabisNewsWire Editorial Coverage: Growing public acceptance of medical marijuana is having secondary effects on other industries.

  • Products using cannabidiol (CBD) are increasingly popular in areas such as wellness and cosmetics.
  • Hemp production is growing, with experimental projects improving cannabis cultivation techniques.
  • Services needed to support these markets, such as payment systems, are growing.

Marijuana Company of America, Inc. (OTC: MCOA) (MCOA Profile) is benefiting from this in many ways, having invested in hemp, CBD products, rentable cultivation space and payment systems. Tilray, Inc. (NASDAQ: TLRY) is producing CBD oils and has become one of the first companies to sell these for medical use in the United Kingdom. Canopy Growth Corporation (NYSE: CGC) has received a massive investment from a drinks company, with the aim of producing CBD-infused drinks. GW Pharmaceuticals Plc (NASDAQ: GWPH) created the first prescription medicine derived from cannabis plants to receive U.S. Food and Drug Administration approval and is now heavily involved in research into using CBD to tackle epilepsy. Such drugs may also become useful for fighting insomnia, the subject of a new study by Cronos Group, Inc. (NASDAQ: CRON).

To view an infographic of this editorial, click here.

Public Acceptance of Medical Marijuana Growing

Attitudes towards cannabis and industrial hemp have shifted significantly in the United States in recent years, reflected by legal changes at the state level. The majority of states have legalized these substances for medical use, and a significant proportion now allow their sale for recreational purposes. Increasing access and legitimacy have encouraged an already existing trend toward more liberal views. As a result, 74 percent of Americans now support legislation that would protect states from federal prosecution for legalizing the drug.

Most tellingly, major companies are looking to tap into the popularity of industrial hemp. Coca-Cola, not a company known for taking great risks, is in talks with a major grower about a potential collaboration. This would involve producing drinks infused with cannabidiol (CBD), a non-psychoactive chemical found in industrial hemp. A growing body of research into CBD’s potential to relieve pain means that it is an increasingly popular part of the industry. As recreational marijuana use is legalized in Canada this month, companies such as Coca-Cola will use that country to develop and market test products that may later be sold in the United States.

Turning Public Approval into Profits

Reports about this shift in attitudes provide inherently useful information for politicians and public health officials. But for businesses such as Marijuana Company of America (OTC: MCOA), this information only becomes useful if they can turn it into profit.

MCOA is doing this by diversifying its activities and expanding upon existing work to strengthen its position within the market. The industry is now about much more than just growing and selling cannabis. It covers industrial hemp, plant processing, support services, technology and a wide range of products, some a long way from the smokable plants many people picture when they hear the word hemp.

The part of MCOA’s work that most obviously benefits from changing attitudes is its hempSMART line of products. These timely products are infused with hemp-derived CBD, the same chemical Coca-Cola is considering putting into drinks. But while it isn’t yet producing beverages, MCOA has found a wide variety of other ways to use CBD.

Most of the hempSMART brand is targeted at the wellness market. Products such as the recently relaunched hempSMART Brain are formulated to improve the well-being of consumers, in hempSMART Brain’s case by helping maintain mental clarity, alertness, focus and concentration. HempSMART has also entered the cosmetic and skin care realm with its hempSMART Face, a CBD facial moisturizer, which aims to refresh, replenish, and restore skin providing long-lasting hydration and balance.

The production and marketing of these products is made easier by the shift in public perceptions of industrial hemp. As it becomes more accepted, even consumers who aren’t interested in the substance itself are sometimes willing to try ancillary products.

Harvesting Hemp

For centuries, hemp was grown as a source of fiber. A plant related to marijuana but without its psychoactive properties, hemp is now seeing a revival, thanks to legal changes in both Canada and the United States.

In a joint venture with Global Hemp Group, Inc., MCOA has set up two separate hemp production projects — one in Oregon and the other in New Brunswick.

The purposes of these projects include increasing understanding of hemp, developing better cultivation methods, and creating improved strains. Staff at both sites are carrying out research, with support from the local government at the Canadian site. This work covers a range of issues important to hemp cultivation, including pest control and improving soil quality. Drones are used to oversee progress in New Brunswick, giving the company a good overview of how crops are progressing.

By gathering data on plants and cultivation methods, MCOA and Global Hemp are giving themselves an important advantage in a growing industry. Hemp fibers can be used to produce cloth and rope, adapting a historically popular use to the modern world. Perhaps more valuable financially, CBD oil can be extracted from the plants, providing biomass for the market. Growing strains with rich CBD content is an important part of the work at the Oregon site, work that could give the companies an edge over their competitors in the strains they grow.

The work on these sites is providing plenty of practical insights and experience, sometimes in unexpected ways. A bean harvester was recently used to harvest crops in New Brunswick, maximizing profits despite higher than normal weed growth. Experts such as Anthony Rushford, who has brought 20 years of experience in hemp breeding and genetics to the Oregon project — have also been recruited to provide insight on relevant issues.

Support Services

The growth of the marijuana, hemp and CBD markets has led to a need for support services. By expanding into these services, MCOA is further strengthening its position.

The company’s significant investment in MoneyTrac Technology represents a similar step toward diversification. MoneyTrac is a pioneer in alternative banking and electronic finance systems, using blockchain technology to power an accessible payment service. This can be accessed anywhere in the world and used by sellers to track their business and ensure legal compliance, as well as to easily take electronic payments.

As the industry grows, it will need technological solutions for the challenges it faces, and MoneyTrac provides one of those solutions. This technology has potential use beyond the cannabis market as a payment system for other under-served businesses. Both business practices and technology are changing as companies adapt to the emerging commercial environment in the United States.

The Commercial Power of Marijuana Derivatives

The growing acceptance of medical marijuana is providing impetus for many businesses within the sector that are exploring the other products these plants can provide.

Tilray, Inc. (NASDAQ: TLRY), a leading medical marijuana company, sells cannabis flowers and extracts to patients and medical providers on five continents. With a strong investment in research and development, Tilray has been creating other products derived from these plants, including a range of CBD oils. As a result, it is one of the first companies to sell CBD oil into the United Kingdom following a high profile legal change that allowed British patients access to these oils for the first time.

Canopy Growth Corporation (NYSE: CGC) is already one of the leading marijuana companies working in Canada, one with extensive deals to make use of that country’s growing market. Canopy Growth has received a significant financial and publicity boost thanks to a recently approved $4 billion investment from American drinks giant Constellation Brands. This collaboration between the two companies is expected to lead to CBD-infused drinks, another innovation within the industry.

A company with 20 years’ experience developing cannabinoid treatments, GW Pharmaceuticals Plc (NASDAQ: GWPH) created the first prescription medicine derived from cannabis plants to be approved by the U.S. Food and Drug Administration. GW Pharma has been carrying out research on the use of CBD in tackling rare and dangerous forms of childhood epilepsy, and recently presented data on this work to the 13th Annual European Congress of Epileptology. This research is creating greater support for the safety and effectiveness of CBD in dealing with these diseases.

Research is widening the number of ways in which cannabis and cannabis-derived products can be used. Cronos Group Inc. (NASDAQ: CRON) recently announced a study to research the use of cannabis in tackling insomnia.

A diversity of products and uses is allowing marijuana companies to grow in strength, providing support services, medicines, research and rented cultivation facilities alongside their core products of cannabis and CBD oils. It’s a path that can only strengthen the industry.

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

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420 with CNW – Connecticut Federal Court Rules in Favor of Employees Taking Medical Marijuana

A federal district court has ruled that a nursing home violated the anti-discriminatory act when it rescinded a job offer to a job seeker who declared that she consumes medical cannabis off-duty and tested positive for THC in a pre-employment drugs test. Medical cannabis is legal in Connecticut where the plaintiff lives and sought to be employed by the nursing home.

The case was filed by the plaintiff last year and judgment was delivered last month, more than a year later. The defendant had tried to get the case dismissed arguing that federal laws allowed them to deny users of a controlled substance employment.

However, the federal district court ruled that the defendant couldn’t cite the Controlled Substances Act since the laws of Connecticut granted protections to patients who had a qualifying condition and were consuming marijuana in accordance with the state laws.

The plaintiff’s request for legal fees and punitive damages was denied by the federal court since the Connecticut law (Palliative Use of Medical Marijuana or PUMA) under which she sued did not prescribe such remedies in its protections for patients on medical cannabis.

The ruling against Bride Brook Nursing and Rehabilitation Center comes at a time when courts had initially ruled against employees on matters of medical marijuana. It is the first time that a federal court is making a decision in favor of an employee.

Other state courts had made similar favorable rulings for employees against employers who took action against them for consuming medical marijuana.

The decision by the federal court isn’t binding on all the other courts, but one can be certain that this case will be a point of reference in any future litigation on similar matters.

In fact, Bride Brook Nursing and Rehabilitation Center can appeal against this decision in order to have it reversed.

The case law on medical marijuana is still scanty since so few states have decriminalized it while it remains illegal at the federal law.

It may therefore be premature for anyone to think that the legal tide is shifting in favor of employees. All the same, it is wise for employers to review their policies regarding marijuana testing as a precondition for employment since they may expose themselves to costly suits that may leave the reputation of the companies in question in tatters.

What can help all concerned is some form of middle ground to be reached between the states where marijuana is legal and the federal level where decriminalization hasn’t occurred as yet. This is certainly the wish of industry players like Earth Science Tech, Inc. (OTCQB: ETST) and FinCanna Capital Corp. (CSE: CALI) (OTCQB: FNNZF) who want to see a more uniform regulatory framework.

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420 with CNW – White House Drug Office Promises Objective Marijuana Study

The news reports more than a month ago to the effect that the White House Drug Office had asked 14 federal agencies as well as the DEA to collect and submit data showing the negative effects of marijuana legalization in different states has attracted a backlash which has forced a senior official from the Drug Office to reassure those concerned that the marijuana policy panel will not be subjective as it looks into the impact of cannabis decriminalization in several states across the country.

This clarification was revealed by Senator Michael Bennet from Colorado, one of the first states to decriminalize pot. Senator Bennet disclosed that he had contacted James Carroll (deputy director White House Drug Office) about concerns regarding the attempts to spread negative propaganda against marijuana.

Media reports had suggested that a secret committee had been established to gather data which could be used to portray marijuana as a “national threat” as a way of pushing back against its growing popularity and the wave of decriminalization which is sweeping across the country.

James Carroll clarified that the committee set up would conduct a dispassionate review of cannabis without any preconceived conclusions.

Senator Bennet reaffirmed that the data-driven decisions that were made in Colorado would not be watered down by any propaganda by the feds.

It is only fitting that Colorado takes the lead in calling out any force that is trying to smear marijuana since the state was one of the first two to decriminalize marijuana.

This news comes at a time when contradictions are emerging about how different law enforcement agencies regard cannabis.

For example, LA International Airport issued a press release announcing that it would allow travelers to pass through the airport with marijuana.

However, such people would have to run the gauntlet of TSA since all checkpoints are the jurisdiction of the federal agency. TSA revealed it would refer any matters of cannabis to local law enforcement who are at liberty to decide what to do about the situation. Passengers could be delayed or even miss their flight while these institutions engage in this ping pong.

Another scenario has to do with how Customs and Border Protection regards participants in the legal pot industry. The feds see them as drug traffickers while the states or countries from which they originate treat them as a legitimate industry. This difference of opinion leaves individuals uncertain about what will come next.

It is therefore hoped that the U.S. federal government will review its position and make a decision that harmonizes how marijuana is regarded across the nation. ChineseInvestors.com (OTCQB: CIIX) and Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) must be waiting with bated breath for the day when marijuana will be regulated by a uniform set of laws across the U.S.

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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.

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420 with CNW – U.S. Feds Confirm Canadians Involved in Legal Marijuana Industry Not Welcome

It is just days before recreational cannabis becomes legal throughout Canada but difficulties are already shaping up regarding how this legalization will affect Canadians who wish to travel to the U.S. The Customs and Border Protection (CBP) service has confirmed that steps will be taken to bar people who are involved in the Canadian marijuana industry from entering the U.S.

CBP’s confirmation comes at a time when numerous media reports emerged about individuals who were handed lifetime bans from entering the U.S. as a result of their investment interests in the cannabis industry.

Customs and Border Protection is simply enforcing the U.S. federal government position that marijuana is a controlled substance that has no medical value and has a high potential for being abused. The feds therefore don’t recognize the marijuana industry as a legitimate business or industry. Anyone involved is regarded as a drug trafficker just like those found with heroin and other such drugs.

Some of the consequences of being found with cannabis or admitting to an involvement in the cannabis industry may include being fined and/or having your cannabis seized, arrests and bans on admission into the U.S.

CBP officials also warned that Canadians should not be tempted to lie about their involvement in the cannabis industry either as investors or consumers since such misrepresentations will carry serious consequences once discovered. The stored data on any affected persons will be kept and referred to in future when those people try to reenter the U.S.

It is still unclear how the Customs and Border Protection agents will screen Canadians entering the U.S. CBP itself admits that not everyone will be questioned about cannabis, but questions may arise when a person is found with cannabis or when the smell of cannabis is detected in the car of the person at an entry point.

Congressman Lou Correa has written to Homeland Security asking its head to clarify a number of issues regarding the implementation of CBP’s position on Canadians involved in the legal marijuana industry. For example, how will the agents determine that someone at the entry point is a participant in the cannabis industry?

People who are handed a lifetime ban can apply for that ban to be waived for a while. That waiver comes at a cost of $585 (not including the person’s legal fees). It isn’t yet clear how long it can take for that waiver to be processed.

Canadian citizens are beginning to get a taste of what companies like TransCanna and VIVO Cannabis Inc. (TSX.V: VIVO) (OTC: VVCIF) have to deal with as they expand from one jurisdiction to another.

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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.

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420 with CNW – Thousands of Marijuana Plants Seized in California Forest

The office of the San Bernardino County Sheriff recently announced that they had seized more than 10,000 cannabis plants that were growing in the San Bernardino National Forest. The plants were in three large plots that appear to have been cultivated by members of a drug trafficking gang.

There was evidence that people were living around the cannabis plots in order to tend to those plants. Camping gear and trash was found where the plants were found by a combined force from the U.S. Forestry Service, the County Sheriff’s Office and the Department of Fish and Wildlife. These law enforcement agencies were collaborating under a program called CAMP (Campaign Against Marijuana Planting).

The marijuana plants were in plots located in Marble Canyon, East Fork Canyon and Arctic Canyon.

Police said that the drug traffickers cleared the forest in order to plant the marijuana. Such actions cause irreparable damage to the forest cover. The toxic pesticides and the fertilizers which are used in such activities also seep into the ground and pollute the water as well as the wildlife there.

The press release didn’t reveal who the suspects in this seizure were, but the public was urged to report any other marijuana plots they see as they hike through the forest or any other secluded areas. Callers could provide tips anonymously or reveal their identities if they so wished. Different contact numbers were also provided in the press release for those willing to provide information regarding the illegal growing of cannabis in the forest or anywhere else.

The investigators asked hikers to be cautious since there is a risk of being harmed by criminal organizations that participate in such illegal growing of cannabis. It was therefore better to stick to the marked hiking trails or to take precautions, such as moving in groups, when branching off the marked trails during a hike.

People who grow marijuana illegally see the National Forest as an attractive location since it has several of the ideal conditions they desire. The first requirement is seclusion so that the illegal activity can remain undetected for long. Secondly, the forests have naturally fertile soils and springs which can make it easier to grow the cannabis.

Those conditions will keep attracting more drug trafficking organizations to the forest, so the latest seizures are unlikely to be the last. Perhaps the authorities need to find ways to make legitimate cannabis businesses like Cannabis Strategic Ventures, Inc. (OTC: NUGS) and Canopy Rivers Inc. (TSX.V: RIV) offer their products at such a low price that the risk of growing cannabis illegally will no longer be worth the possible gains from such an illegal activity.

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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.

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