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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Intangible Assets Power Growth, Acquisitions in the Pharmaceuticals Sector

CannabisNewsWire Editorial Coverage: Intangible assets such as patents increasingly dominate the global business landscape, especially in the pharmaceutical sector.

Intangible assets are estimated to be worth trillions of dollars in the United States alone.
These assets drive deals as companies acquire smaller patent holders.
In growing sectors such as cannabis, smaller companies are rushing to establish intangible assets ready for expected market growth.

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) (LXRP Profile) is one of the leaders in the world of cannabis, with applications made for more than 50 different patents and more to come. Tilray Inc. (NASDAQ: TLRY) is also focusing on building its intellectual property (IP) portfolio, including exclusive rights to at least 22 issued or pending patents. In wake of receiving FDA approval of its Epidiolex® (cannabidiol) oral solution for the treatment of seizures associated with two rare and severe forms of epilepsy, GW Pharmaceuticals Plc (NASDAQ: GWPH) has applied for five new Epidiolex patents. Recently Canopy Growth Corporation (NYSE: CGC) announced that it has, alone or with its subsidiary or joint-venture partners, filed eight provisional U.S. patents pertaining to the delivery and application of cannabis and cannabinoid-based therapeutics. And through its ownership of CanniMed, Aurora Cannabis, Inc. (OTCQX: ACBFF) has obtained six patents related to cannabinoid delivery for pain management.

To view an infographic of this editorial, click here.

The Power of Intellectual Property

Intellectual property is now one of the most important parts of the global economy. Copyrights, trademarks and patents are a vital weapon in the arsenal of many businesses. For some companies, this is a secondary consideration, a way to strengthen and protect their positions within their fields. For others, it’s their entire focus — a way to dominate a sector or provide valuable returns.

The power of IP means that no part of the economy goes untouched. New industries often arise off the back of new IP. Even when that’s not the case, the development of new techniques and technologies frequently lead to the creation of patents, as companies work to innovate and control techniques that give them an edge over their competitors. For relatively new sectors, such as the cannabis market, this means the sudden flourishing of IP and a race by companies to stake their claim on these valuable assets. As a sector matures, so will its IP market.

The Value of Intangible Assets

Patents are a big part of business for companies such as Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP), for whom developing and protecting new technology is fundamental to success. Whether it’s underlying technology such as DehydraTECH, the company’s system for increasing the body’s absorption of chemical compounds, or specific products derived from DehydraTECH, such as TurboCBD, Lexaria’s success is founded on its distinctive IP.

IP is part of a wider sector of the economy — intangible assets. This is the wealth provided not by physical assets and the processes that directly transform them but by less visible, more abstract resources. It includes IP, whose value is often examined and measured, as well as harder-to-pin-down elements such as business processes and reputation.

These factors have always played a part in business, but their growing recognition and analysis has led to the growth of companies whose main focus is on intangible assets, from investment research firms and reinsurers to patent licensing and enforcement companies.

Representing around a third of the U.S. economy, intangible assets are now consciously analyzed and developed by virtually every business, even if they don’t recognize the “intangible asset” label. Companies with a solid focus on these areas can place themselves in positions of great strength.

Patents in a New Sector

The speed at which intangible assets can develop is well illustrated by movements in the cannabis sector, where many of Lexaria’s patents apply.

The legal global cannabis market started to emerge only recently, thanks to a handful of countries allowing medical marijuana. The market has started to mature through a small but growing number of territories with legal markets for recreational cannabis, as well as the separate management and licensing of industrial hemp. Legal cannabis is now a multibillion-dollar business. Although Lexaria’s technology has other profound drug delivery applications, cannabis is where it looks set to have the most immediate impact.

This has led to a rush to control intangible assets around cannabis. It’s noteworthy that Chinese companies own more than half of the cannabis-related patents registered with the World Intellectual Property Organization, even though the cannabis trade remains illegal in China. China has a good eye for long-term developments and is setting itself up to control a growing global trade.

Outside of China, Lexaria is one of the world’s biggest holders of cannabis patents with eight patents already granted. The company currently holds four patents in the United States and four in Australia, covering aspects of its work to make beneficial drugs more palatable and effective. In addition, the company has further patent applications in process in more than 40 countries as part of a concerted strategy to expand its patent portfolio. This is made possible by the focused, tangible research and development being carried out by the company and is ultimately driven by the need to develop and control intangible assets.

Lexaria has disclosed it expects four more patents to be granted in 2018, bringing its total to twelve. Of note, all twelve of these are within a single patent family — and Lexaria expects patent success across all nine families of its current applications. Indeed the company recently revealed that it has seven more patent families in the works. Lexaria’s goal is to have some 200 patents pending or granted which, if achieved, could turn the organization into an IP behemoth in the global cannabis industry.

The Value of Patents

The commercial value of patents, even those still pending approval, can be extraordinary, reaching billions of dollars. In 2011, Nortel sold 6,000 patents and patent applications for $4.5 billion. The following year, AOL sold 925 patents to Microsoft for more than a billion dollars. While some companies develop patents purely to protect their work, others develop them specifically to be sold.

This focus on intangible assets drives many mergers and acquisitions. The Craftsy digital network developed online shows such as “Man about Cake” with a focus on audience rather than immediate profit, leading to the company’s acquisition by NBC Universal. The intangible assets of the company’s identity, reputation and audience had become highly valuable in themselves.

Similar priorities can be seen on a far larger scale in SoftBank’s $31.4 billion acquisition of chip designer ARM Holdings, or roughly $7 million per patent or patent application. ARM’s revenues were only $1.5 billion per year, but its 4,500 patents cover technology of potentially incredible value. In just three years, the desire to control patented drugs and processes in the healthcare sector overall resulted in 58 mergers and acquisitions with values of a billion dollars or more.

In Lexaria’s field of pharmaceuticals, patents are crucial, representing both the outcome of years of R&D and also potential market share and control in the emerging global cannabis business. Lexaria is attempting to own enough IP in the global cannabis industry that patent royalty revenues begin to flow worldwide.

Because patents are among the most valuable assets a company can own, a small investment in research now may pay off in a huge way in years to come. In a sector with such huge growth potential as cannabis, Lexaria’s IP portfolio may generate cash flows regardless of whether other companies intend to license the technology or not; by owning core IP, other companies may be forced to pay royalties. If Lexaria’s goal of owning hundreds of issued patents becomes a reality, the company’s patent portfolio could have huge ramifications on its valuation.

Powered by Intellectual Property

Lexaria isn’t alone in its commitment to strengthen its IP collateral. Tilray Inc. (NASDAQ: TLRY) is also focusing on building its IP portfolio including exclusive rights to at least 22 issued or pending patents. Tilray CEO Brendan Kennedy has observed that if cannabis companies are going to move forward, they’ll need to develop IP in both the medicinal and recreation aspects of the cannabis spectrum.

GW Pharmaceuticals Plc (NASDAQ: GWPH) has established a leading position in the development of plant-derived cannabinoid therapeutics through its intellectual property portfolio, proven drug discovery and development processes, and regulatory and manufacturing expertise. The company successfully developed the world’s first prescription medicine derived from the cannabis plant.

In addition to the eight provisional patents it has filed, Canopy Growth Corporation (NYSE: CGC) has updated applications relating to earlier insomnia patent applications, bringing its total number of U.S. provisional patent filings to 39. The filings are part of a concerted plan by Canopy Growth to deliver to patients and healthcare providers innovative medicines and health products targeting disease areas with substantial medical needs.

Aurora Cannabis, Inc.’s (OTCQX: ACBFF) pain-management patents are only part of the company’s commitment to creating a stronghold in the cannabis market. Aurora has become one of the fastest-growing cannabis companies, as evidenced by Aurora Sky, the company’s 800,000-square-foot flagship facility; by launching the world’s only mobile app for ordering medically prescribed cannabis; and by being the only LP to service two metropolitan areas with same-day delivery.

With so much value placed on intangible assets, patents are fueling growth and acquisitions worth billions of dollars. In the pharmaceutical sector and beyond, patents definitely appear to be where the big money is.

For more information on Lexaria Bioscience Corp., visit Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP)

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Hydroponic Hardware Key to Tapping Long-Term Profits of Burgeoning Cannabis Market

CannabisNewsWire Editorial Coverage: The North American cannabis market continues to accelerate as Canada rockets towards the October 17 deadline for the nationwide legalization of recreational marijuana.

Hydroponic market trying to keep up with booming cannabis market set to exceed $25 billion by 2021.
Continued expansion of cannabis cultivation and demand for controllable production parameters are a boon to hydroponics industry.
Healthcare sector increasing demand for CBD from sources such as industrial hemp.
Regulatory reform throughout North America and Europe driving change in overall space.

The milestone legislation appears set to open the door wider for companies pursuing a position in the promising sector, including those consolidating vectors within the still highly fragmented hydroponics supply sector. The global hydroponic market alone was worth nearly $3.5 billion last year and is set to break $10 billion by 2023, maintaining a healthy 18.2 percent CAGR. Recently projected revenue growth to more than $30 million next year illustrates the lofty aspirations of hydroponics supplier Sugarmade, Inc. (OTC: SGMD) (SGMD Profile), a company that recently reported a sequential revenue increase of some 215 percent and a year-over-year revenue increase of approximately 228 percent for revenues of just under $3 million in the most recent quarter. Scotts Miracle-Gro Company (NYSE: SMG) is another one to watch in this space, with an already well-established presence and the recent announcement that the company will acquire general hydroponics equipment supplier Sunlight Supply, Inc., for $450 million. An acquisition may also benefit Aurora Cannabis, Inc. (OTC: ACBFF), which recently announced its procurement of MedReleaf. The huge announcement of an additional $4 billion investment in researcher, cultivator and seller of extracts/flowers Tilray, Inc. (NASDAQ: TLRY), by beer giant Constellation Brands, Inc., has been unmistakable “handwriting on the wall” to many investors that the cannabis industry is here to stay. And Canopy Growth Corporation (NYSE: CGC) has also been bitten by the sector consolidation bug, as evidenced by the company’s recent snapping up of premium cannabis lifestyle brand Hiku Brands Company Ltd.

To view an infographic of this editorial, click here.

Hydroponic Picks and Shovels

With the North American Marijuana Index up 33 percent over the last month and up nearly 550 percent over the last three years, it appears that this could be the front end of an ongoing boom that may have yet to even see its true heyday — something that could be triggered by the adoption of more widespread legislative reforms across several U.S. states, occurring in ways similar to California’s cannabis reforms.

It is a well-known investing adage that those who developed long-term success during California’s gold rush made their money not from mining claims but from selling the necessary accoutrements miners needed, such as picks and shovels. The same phenomenology holds true today during the ongoing green rush, with hardware manufacturers and suppliers of grow systems poised to reap the rich, long-term rewards of an industry that is still just getting off the ground in many respects. Leading cannabis sector analysts at ArcView recently detailed how the North American market saw sales growth of 33 percent last year and projected that the market will reach $25 billion a year by 2021, maintaining a CAGR of 28 percent.

Cannabis prohibition will most likely come to an end in the United States, just as it has in Canada, echoing what previously occurred with the end of alcohol prohibition. To many analysts in the sector today, the legalization question is not if but when. Savvy investors seem to understand the naked reality that humans have been consuming cannabis for likely well over ten thousand years, stretching back to the apparently widespread consumption of seeds and oils in China, where the first recorded medical uses of the plant occurred almost five thousand years ago. Little wonder that the cannabidiol (CBD) market is growing by leaps and bounds, as the infusion of CBD into healthcare products becomes more prevalent. The Brightfield Group recently projected faster-than-anticipated growth for the CBD market, with sales projected to reach $22 billion or more by 2022.

A Rollup Strategy in Hydro Hardware

Product and brand marketing outfit Sugarmade, Inc. (OTC: SGMD), whose brands include ZenHydro.com, CarryOutSupplies.com and BudLife Cannabis Storage Solutions, is currently focused on increasing revenues by repeating the success of the company’s past strategic moves, such as last year’s master market agreement with BizRight Hydroponics, a highly successful and rapidly growing manufacturer and distributor of intelligently designed hardware geared specifically for the needs of the cannabis cultivation sector. The company recently revealed that, as part of a growing emphasis on exploiting a “picks and shovels” rollup approach to the burgeoning cannabis sector, Sugarmade is in acquisition talks with multiple hydroponic supply companies having parallel competencies.

Sugarmade CEO Jimmy Chan explained in a recent shareholder Q&A that targeting home growers as well as smaller, profitable companies in the sector — companies that already have exceptional hardware offerings for professional cannabis processors and cultivators — is something that looks to be highly accretive. The strategy is quite simple, because while there is an explosion of new cannabis ventures in the market, few of these pioneering entrepreneurs of profitable operations possess access to public markets or equity-financed capital.

Branching Out into CBD and Industrial Hemp

Sugarmade’s revenue generation plan isn’t limited to relying on expanding North American markets either. The company was obviously happy to announce expansion into the European hydroponics supply market recently, through a sizeable order via Amazon UK. This announcement comes amid an ongoing shift for the company from a majority of hydroponic-related revenue growth occurring in California and other West Coast markets to more geographically dispersed growth throughout other U.S. states that are also seeing regulatory easing.

In addition, Sugarmade announced in late August that the company has committed to investing $1 million over the next 12 months in Hempistry, Inc., the privately held cultivator of an ultra-high CBD strain of industrial hemp (less than 0.3 percent THC), which has reserved 23,000 acres of prime Kentucky farmland for the task. Moreover, Chan has been made an advisor of Hempistry, and the company’s investment will be in the form of common shares, positioning SGMD shareholders quite well should a Hempistry IPO ever come to the fore. A cultivation supply agreement signed between the two companies is the icing on the cake and demonstrates to investors how such a rollup strategy also represents additive revenue growth that will magnify Sugarmade’s already robust top-line growth rate.

Sugarmade is already in formal acquisition negotiations with at least two companies in online and retail hydroponics, as well as other agricultural cultivation supplies, and the company has made a special filing with the SEC to formally address these acquisitive ambitions. Together with the industrial hemp and CBD initiative engaged in via the Hempistry investment, SGMD’s management team feels that shareholders are now well-positioned for considerable upside, as the company skillfully manages its aggressively planned growth rate and hones its focus more toward cultivation-related revenue sources.

Cannabis-Related Hydroponics — A Tricky Market

The retail market for hydroponics, generated by cannabis growers who are often highly knowledgeable about different types of grow equipment, is expected to become an increasingly contested arena in the coming years. For a disruption-minded brand marketing company such as Sugarmade, which is now one of the biggest publicly traded companies in cannabis-related hydroponics, the need to speak directly to consumers in a language they understand is readily apparent. The BizRight deal speaks volumes, given that BizRight has developed an impressive rapport with customers and partners over the last seven years, becoming one of the most trusted names today in world-class hydroponics.

Scotts Miracle-Gro Company (NYSE: SMG) had a strong quarter recently, with consumer purchases up 5.4 percent amid continued strength of the company’s core consumer lawn and garden products. The aforementioned acquisition of Sunlight Supply will reportedly bring the company’s Hawthorne Gardening segment up to an estimated $600 million a year in total sales, giving the company an impressive footprint across the general hydroponics supply market.

Aurora Cannabis, Inc. (OTC: ACBFF) is one of the biggest and fastest growing cannabis companies in the game today, with a currently funded capacity of nearly 950,000 pounds of product per year and an annual production target over 1.256 million pounds post-acquisition of Ontario-based MedReleaf. With a production footprint spanning nine Canadian and two European production facilities, Aurora is one of the most enviably positioned cultivators in the industry and has the scale necessary to ensure low production costs as well as consistently high yields. The MedReleaf acquisition brings even more high-yield cultivation technology firepower to the table.

Tilray, Inc. (NASDAQ: TLRY), which is focused on research, cultivation, production and distribution of medical cannabis and cannabinoids, has seen some impressive share price appreciation since the company’s IPO in July. The announcement in September that the company was granted DEA approval to import a cannabinoid study drug to the United States from Canada for use in a neurological movement disorder (essential tremor) study has really attracted a lot of investors to the company’s unique offerings and global reach. Tilray’s sophisticated array of full-spectrum and highly purified extracts deserves a second look from investors who may just be caught up in the hype and do not fully appreciate the company’s portfolio and value proposition.

Canopy Growth Corporation (NYSE: CGC) is riding high on a huge capital injection from Constellation Brands, which controls approximately 38 percent of the company post-expansion of this important strategic partnership, which has also served as something of a watershed moment for the cannabis industry. Canopy is wasting no time when it comes to exploiting this new muscle, recently announcing a multiyear supply and service agreement with Centric Health Corp. Canopy also recently announced that its Tweed Farms subsidiary received license amendments approving all remaining greenhouse space at its primary site, expanding Canopy’s total licensed grow footprint to an impressive 3.2 million square feet.

Lean, Mean, Green Machine

Sugarmade has put together a straightforward revenue growth strategy that has been tried and tested in other markets. Successfully executing a rollup strategy in the highly fragmented hydroponics space will come down to the company’s ability to continue picking superb targets that will be genuinely accretive to shareholder value over the longer term and directly additive to the company’s already impressive top-line growth. The Hempistry investment, as well as further expansion into hydroponics supply, is a win-win for both target companies and investors alike.

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

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420 with CNW – UCLA Team to Investigate the Painkilling Effects of Cannabis

The U.S. Centers for Disease Control and Prevention (CDC) reported that 42,000 Americans died from an overdose of opioids in 2016 alone. Meanwhile, the consumption of cannabis by members of the American public has been growing rapidly over the years. How are these two issues related to the planned research on cannabis?

Plenty of anecdotal evidence exists to support the claim that cannabis has painkilling abilities. Several scientific studies also point to the possibility of cannabis having painkilling effects. However, little reliable scientific information is available to support or disprove those claims.

That may no longer be the case if the proposed study by a team of researchers from the University of California Los Angeles (UCLA) is completed successfully.

The researchers would like to ascertain what combination of CBD and THC provides the highest degree of painkilling effects for opioid patients.

Dr. Jeffrey Chen is the Executive Director of the Cannabis Research Initiative, which came up with the idea of conducting this study.

The actual study was designed by a professor of psychiatry and pharmacology, Edythe London. She explained that the research isn’t intended to provide evidence for or against the cannabis industry. The study is a scientific undertaking to understand a substance that is reputed to have so many medicinal effects.

The double-blind, placebo-controlled clinical study seeks to shed some light on one particular claim, the claim that cannabis can help to ease the pain suffered by patients.

The success of the study in proving that cannabis can combat pain would provide a glimmer of hope that a solution may be at hand for the opioid crisis facing the nation. Such a solution is desperately wanted, given the fact that about 40 percent of the opioid overdose fatalities reported by the CDC in 2016 were connected to prescription opioids.

Dr. Chen points out that the scientific community needs to play catch up quickly so that more information can be available to the public about cannabis. This information could save people from falling for yet-to-be-substantiated claims by cannabis product manufacturers.

However, the researchers have a huge task to overcome two major obstacles before the study can commence.

First, cannabis is federally regarded as a schedule 1 controlled substance, “a substance without any medical value and has a high potential for addictiveness.” The researchers must convince the Food and Drug Administration (FDA), as well as the Drug Enforcement Agency (DEA), to grant them permission to proceed with the study. It isn’t clear how easy, or how quickly, such regulatory approval can be secured.

Secondly, the researchers must look for funding for their study. Some money has been secured from UCLA’s Semel Institute for Neuroscience and Human Behavior and from some private donors. Additional funding requests have been made to local and federal sources. Entities like Canopy Rivers Corporation (TSX: WEED) (NYSE: CGC) and FinCanna Capital Corp. (CSE: CALI) (OTC: FNNZF) must be keeping their fingers crossed, hoping that the necessary funding and approval is obtained so that the debate on the painkilling effects of marijuana can be put to rest once and for all.

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Latest Farm Bill Developments Hold Out Hope for Hemp Farmers

CannabisNewsWire Editorial Coverage: After years of wrangling, the U.S. Congress stands on the verge of legalizing the cultivation of industrial hemp.

Hemp is a variety of the cannabis sativa plant that doesn’t generate a psychoactive effect.
Traditionally used to produce cloth and rope, hemp can also now be used in wellness products and food.
Competing legislations by the House and Senate are being aligned with an anticipated September 30 deadline.
The legalization of hemp has cross-party support and appears likely to pass.

The expected change in U.S. law will be beneficial for companies such as Marijuana Company of America, Inc. (OTC: MCOA) (MCOA Profile), which is already invested in industrial hemp and support for hemp growers. Across the border, Canopy Growth Corp. (NYSE: CGC) has established acres of Canadian hemp cultivation and gained financial backing that would support huge growth. Aurora Cannabis, Inc. (OTCQX: ACBFF) has also received substantial funding in the past few months, which will help its ongoing expansion effort. Hemp cultivation will provide plentiful CBD to be used by companies such as CV Sciences, Inc. (OTC: CVSI) as an ingredient in a wide and growing range of health and wellness products. All this growth is aided by support companies such as Terra Tech Corp. (OTC: TRTC), which provides equipment for cannabis cultivators.

To view an infographic of this editorial, click here.

Hemp: Caught Between Politics and Business

Industrial hemp is a crop with a strange history in the United States. For centuries, it was used to produce products such as ropes and sails, playing an integral part in the economy. This ended in the twentieth century when hemp was caught up in a broad ban on the cannabis family of plants, despite the fact that hemp itself is not usable as a recreational drug. Now its tentative return depends upon the outcome of a far broader agricultural bill.

Because it doesn’t share the psychoactive properties of marijuana, hemp has potential to be regulated and grown separately. Early tests in restoring this industry have produced significant profits for farmers. If the political will can be found to change its status, it could create great opportunities for businesses and their suppliers.

Hemp Cultivation Project in the United States

Several companies, including Marijuana Company of America (OTC: MCOA), are already growing hemp in the United States with their Scio, Oregon Cultivation Project, in conjunction with their joint venture partner Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (FRANKFURT: GHG).

Under their high-yielding CBD hemp cultivation projects, the two joint venture partners have formed Covered Bridge Acres, LTD. The key to the project was the acquisition of a 109-acre agricultural property in Scio, Oregon, with a history of hemp cultivation over the past few years. In July 2018, 40,000 hemp clones were planted on the property for Cannabidiol (CBD) propagation on approximately 33 acres of the property.

MCOA and GHG are now in the process of evaluating different harvesting, drying, storage and processing strategies in preparation of an early October harvest. The joint venture partners are also in negotiations with guaranteed offtake agreement offers and are considering strategies involved with selling the attained biomass from harvest in bulk.

When Is a Drug Not a Drug?

Hemp is one of a range of different cannabis plants. Unlike the versions smoked by recreational users, it doesn’t contain significant quantities of tetrahydrocannabinol (THC), the chemical that gets smokers high. It does contain the active ingredient cannabidiol (CBD), which has been widely reported to have medicinal value — reports that now have been substantiated by the U.S. Food and Drug Administration. Importantly, hemp also contains fibers that can be used for a wide range of purposes.

In the twentieth century, cannabis plants were banned as the U.S. government and others worldwide cracked down on drug use. Though hemp doesn’t get drug users high, the governments apparently banned the cannabis plant because of the difficulty of distinguishing between the plant varieties. The decision to include hemp in a list of banned drugs was based on political expediency rather than science.

Fast forward to the twenty-first century and the rules surrounding hemp have started to change, allowing the creation of companies such as MCOA. Hemp has a huge number of potential uses, including the manufacture of cloth and paper and the processing of food. Under licenses designed to cater to research and the medical market, farmers have begun growing industrial hemp with expectations of earning up to 150 times as much money per acre of land as they would growing alfalfa.

The Great Agricultural Debate

Farm bills are an important part of how the U.S. government establishes policy around food and agricultural production and how that policy is enshrined in law. Roughly every five years, Congress creates a bill covering a wide range of agricultural topics. With its huge financial implications and many different political angles, passing the bill can be a messy business.

Following a pilot research program for hemp growers created in the 2014 Farm Bill, the current Farm Bill includes the legalization of industrial hemp. There’s a lot at stake for hemp growers as well as those hoping to enter and establish a foothold in the industry. The U.S. Hemp Roundtable has gone so far as to hire attorney Daniel Cameron, an experienced Washington legal counsel, to lead its advocacy on the bill.

The House and Senate have both passed versions of the 2018 Farm Bill that support the legalization of the hemp industry without drug enforcement oversight. On Sept. 5, the first bicameral conference committee on this Farm Bill began meeting in an attempt to resolve competing elements between the two bills, with a deadline to present the president with an agreed-on final version of the bill by the end of the month.

The good news for companies such as MCOA is that the hemp element of the Farm Bill has cross-party support. Hemp’s potential to revive the fortunes of American farmers makes it a potential vote-winner for rural politicians nervously eyeing up the polls. The bad news is that in a bill affecting everything from agricultural subsidies to environmental conservation to food stamps, there’s plenty for politicians to disagree over.

Hemp Products

Sail cloth and rigging were enough to make hemp profitable in the eighteenth century, but the world has changed since then. So what sort of products can the world expect to see from a resurgent hemp market?

Many products will undoubtedly be targeted towards the health and wellness market, using CBD as an active ingredient. A leading example of these types of products is MCOA’s hempSMART line, including hempSMART Brain, which is developed to help with alertness and concentration; hempSMART Pain Capsules and Pain Cream, formulated to be an effective product combination for the temporary relief of minor pain associated with physical activity; hempSMART Full Spectrum Drops; and hempSMART Face, a nourishing facial moisturizer infused with Ayurvedic herbs and botancials.

A Growing Industry

Many companies already engaged in the cannabis market are exploring ways they may be able to benefit from the growing popularity of hemp. Canopy Growth Corp. (NYSE: CGC), one of Canada’s foremost cannabis companies, has a hemp division with expertise in this area and acres of hemp production already under way. The company also recently received a $4 billion investment from Constellation Brands, a leading beverage company, to help it expand within the fast-growing cannabis market. With such levels of investment, Canopy Growth will be in a strong position to increase production as the market for hemp products grows.

The medical use of CBD is a major area of interest for Aurora Cannabis, Inc. (OTCQX: ACBFF), which is developing different strains of cannabis to benefit from their different medical properties. Like Canopy Growth, Aurora has an eye to expansion while the market is still young. Its recent takeover of MedReleaf appears to be just one step in a far bigger plan. The company has just taken out a $150 million loan with the Bank of Montreal, betting on the power of a short-term financial boost to make it a market leader, more than capable of repaying the debt when the time comes.

Another company exploring the medical potential of CBD is CV Sciences, Inc. (OTC: CVSI). CV Sciences has a strong focus on research, with a division devoted to developing new drugs that use CBD as an active ingredient. Its consumer products division works through health care providers, health food shops and online sales to market CBD-based wellness products.

The increasing number of growers is good news for supporting companies such as Terra Tech Corp. (OTC: TRTC). Terra Tech produces growing systems — including moving tables and hydroponics — for cannabis farmers. These products are designed to increase the productivity of indoor cannabis cultivation, which is where a lot of CBD and marijuana plants are grown. The company’s environmentally friendly systems can reduce waste and thereby cut costs while also increasing productivity.

The anticipated changes in the U.S. laws governing hemp cultivation signal implications for a large number of companies in the wider cannabis sector as well. If the Farm Bill gets through Congress as expected this month, it could open up a sea change in agricultural production and U.S. wellness industry products.

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

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Proposed Legal Changes Offer a Boost for Cannabidiol Companies in the United States

CannabisNewsWire Editorial Coverage: Recent growth in the market for cannabidiol (CBD) products has been strong and appears poised to continue.

CBD is an active ingredient derived from industrial hemp that does not contain the psychoactive or “high” effect of marijuana.
CBD is used in a wide range of products, from cosmetics to pet supplements.
The recent acceptance of a CBD-based medicine by U.S. authorities creates potential for legal change that could make the sale of CBD easier.
Attention in the mainstream press has created a measure of gravitas for CBD.

Marijuana Company of America Inc. (OTC: MCOA) (MCOA Profile) has produced a diverse range of CBD products to promote well-being. Cannabis company Canopy Growth Corp. (NYSE: CGC) has created a range of CBD oils for its customers while expanding its global reach. Aurora Cannabis, Inc. (OTCQX: ACBFF) provides pain relief through a range of cannabis strains and is set to expand its R&D potential through a takeover. Terra Tech Corp. (OTC: TRTC) provides equipment to cultivate cannabis and would benefit from a change in the legal landscape alongside its customers. PotNetwork Holding, Inc. (OTC: POTN) holds several subsidiary companies benefiting from cannabis and CBD products, thanks to the diversity of the sector.

U.S. Authorities Consider Legal Changes

For decades, federal rules have held back cannabinoid-derived medicines in the United States. Though the majority of states now allow medical marijuana and associated cannabinoid-derived products, national legislation is still grounded in the war on drugs. The cannabis and hemp plants are classified as a Schedule I drug, meaning that it is legally seen as both dangerous and without medical benefits. Even treatments using cannabidiol (CBD), an active ingredient found in hemp and cannabis that is nonpsychoactive, currently fall under this classification.

That may be about to change. Following the Food and Drug Administration’s (FDA) ground-breaking acceptance of prescription drug Epidiolex, the future of CBD products for medicinal use appears to be up in the air. Meanwhile, legislation from both sides of America’s political divide offers the possibility of bigger changes.

Tackling the Law

Progress on the legal status of CBD is being eagerly watched by companies such as Marijuana Company of America, Inc. (OTC: MCOA). With a focus on industrial hemp and hemp-derived cannabidiol products, MCOA doesn’t produce and sell medical or recreational marijuana. But because hemp products are derived from the same family of plants, they fall under the same stigmas associated with the plant.

Increasingly liberal legislation at the state level has allowed companies such as MCOA to thrive in the United States. But that evidence-based liberalization is in conflict with the federal government’s decades-long prohibition, which some within the current conservative government are looking to reinforce rather than relax.

Despite this, the FDA approved CBD-based Epidiolex in June. Epidiolex has been developed to counter the seizures brought on by two rare ailments. Its approval for sale as a prescription medicine doesn’t mean that similar medications will automatically be approved, but it does open the possibility. In light of the approval, repeated calls have been made for the FDA to look again at the scheduling of certain cannabinoids and the broader picture of cannabis-derived medicines.

At the same time, several pieces of legislation that could change CBD’s status are being considered by Congress. Some of those are actually being proposed by Republicans, making it appear less likely that they will be blocked by America’s more conservative party. It looks increasingly likely that rescheduling or other legislative changes may soon make it easier for companies to cultivate industrial hemp as well as produce and market CBD products.

When such change comes, companies with a wide array of products are likely to be the ones that will benefit most. With a range that already runs from pain treatment to therapies for pet care and memory enhancement, MCOA’s line of products is representative of how versatile the use of CBD can be. A loosening of restrictions would make it easier to both broaden this selection and make it available to a wider market.

CBD Goes Mainstream

The growth of companies such as MCOA is helped by increasing mainstream attention on CBD. Forbes has reported on research into the product by the World Health Organization. Esquire has profiled the rise and diverse uses of this ingredient. The Washington Post has explored the growing popularity of CBD among celebrities, consumers and wellness professionals.

Because CBD doesn’t get a user high, it might seem strange that the marijuana derivative is becoming one of the most popular hemp-derived products. But the wellness market is big business in America as consumers clamor for ways to improve their energy levels and reduce the low-key aches and pains of everyday life. CBD’s reputation for improving health is making it popular among people who want the reported medical benefits without having to deal with the high.

The result is a fast-growing market. Consumer sales of CBD amounted to $262.2 million in the United States in 2016, more than double what they had been only two years before. Based on the market’s ongoing growth, analysts have predicted that the market will hit the billion-dollar mark by 2021.

More than half of CBD consumers take the products every day with anxiety, anti-inflammation and joint pain being the top symptoms the products are designed to impact. Successful treatment of these conditions would likely create a large base of long-term consumers.

The Varied Uses of CBD

This large and growing consumer base is looking to CBD for potential impact on a wide range of wellness concerns. The ability of companies such as MCOA to provide a range of products aimed at these symptoms would allow those companies to tap into a broad share of the market. MCOA’s hempSMART™ products are a great example of how many uses a single company can find for CBD.

HempSMART Brain is a patent-pending nootropic product designed to support natural brain function, which fits with what many consumers expect from CBD because the product is focused on the mind. These innovative capsules can be taken to support alertness and concentration.

HempSMART Pain is designed to provide relief from pain associated with physical activity by combining CBD with botanical supplements. Their hempSMART Pain Cream is designed to provide temporary relief from and soothe sore, aching muscles and joints.

The company most recently launched a new cosmetic product, hempSMART Face, a CBD facial moisturizer that has been designed to refresh, replenish and restore skin cells on the face. And perhaps most surprising is the company’s offering of sublingual CBD tinctures, including hempSMART Full-Spectrum Drops and hempSMART Pet Drops, a bacon-flavored supplement formulated to provide cats and dogs with renewed energy as well as a tasty treat.

Such a diverse range of products could help a company such as MCOA attract the attention of CBD consumers. It might also allow consumers to use CBD in more areas of their lives, expanding the CBD market.

Companies Set to Benefit

It’s not just the variety of CBD products that bodes well for the industry — it’s also the range of companies. If the legal status of cannabis and cannabis-derived products changes, an entire sector is set to benefit.

Canopy Growth Corp. (NYSE: CGC), a leading player in retail cannabis, is using its research in the area to create CBD oils. By balancing the ratio of CBD and THC within its oils, Canopy Growth caters to differing wellness needs. Already a trusted player within the Canadian market, the company has acquired a subsidiary in the Kingdom of Lesotho and established another in Latin America. By looking to the wider world, the company is further expanding the global market for cannabis and CBD products.

One of the leading areas of interest for CBD is in pain relief. Aurora Cannabis, Inc. (OTCQX: ACBFF), one of the largest cannabis companies in the world, has established a strong position in this sector. The company has developed a large range of different strains of medical cannabis that can be used in developing new products as well as in retail. The Canadian Competition Bureau recently approved a takeover of MedReleaf Corp. (TSX: LEAF), a research-oriented company, by Aurora, leaving the company in a stronger position to make the most of the coming changes.

Rescheduling cannabis would benefit not just the companies selling cannabis and CBD products but also those supporting them. Terra Tech Corp. (OTC: TRTC) is a producer of environmentally friendly growing systems for cannabis growers. Its hydroponic systems use moving tables and recycled waste water to increase yields and reduce costs. As it becomes easier to grow and market cannabis, more growers may turn to Terra Tech for the equipment they need.

The maturity of the CBD and cannabis sector has also led to the emergence of several holding companies, including PotNetwork Holding, Inc. (OTC: POTN). This company’s subsidiaries include Diamond CBD, First Capital Venture and PotNetwork. Through these entities, PotNetwork benefits from growth across different parts of the industry, as well as supporting other companies in their expansion.

The market for CBD and other cannabis-derived products is already strong. With the prospect of legal rescheduling increasingly likely, these companies seem poised to benefit from changing attitudes in the United States and beyond.

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

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Hemp CBD Products Offer a Natural Alternative to Synthetic-Derived Medicines

CannabisNewsWire Editorial Coverage: The opioid crisis in North America has drawn attention to the urgent need for alternative medicines, and hemp CBD products offer a viable plant-based option.

An active ingredient in industrial hemp, Cannabidiol (CBD) can be extracted to be used in a number of different products such as topicals, tinctures, and capsules.
The World Health Organization (WHO) has found CBD to be nonpsychoactive, nonaddictive, and to have a positive effect on patients’ health.
Scientific studies have shown CBD to be effective in pain relief and, therefore, it may be a healthier alternative to addictive opioids.

Marijuana Company of America Inc. (OTC: MCOA) (MCOA Profile) is actively engaged in producing all-natural products containing CBD, including a recently released pain cream that can be applied topically to relieve discomfort. Cronos Group, Inc. (NASDAQ: CRON) has recently received a boost in funds and a license to produce cannabis products in Australia, allowing the company to grow its operations. Canopy Growth Corporation (NYSE: CGC), which produces oils containing CBD, is expanding into Lesotho and Colombia, exploring a global pain-relief market. Aurora Cannabis, Inc. (OTCQX: ACBFF), which already produces a wide range of medical marijuana strains, is in the process of acquiring an R&D company to strengthen its offerings. And Organigram Holdings, Inc. (OTCQB: OGRMF) produces medical strains that include a CBD option for patients and care providers eager to benefit from this ingredient.

The Opioid Epidemic

The United States is facing one of its greatest medical crises in decades — the opioid epidemic. During 2016 alone, 42,249 people died of opioid overdoses, 115 deaths every day. Despite the attention being turned onto this problem, most states are seeing further increases rather than declines in opioid abuse and its consequences. As the problem grows, physicians, emergency rooms and other healthcare providers are feeling pressure to find effective treatments for pain management, one of the largest causes of the growing problem.

Though illegal drugs such as heroin play their part, this crisis is fuelled by prescription drugs. The prescription painkiller problem began in the 1990s, when pharmaceutical companies persuaded healthcare providers that they could prescribe opioid painkillers without risk of addiction. This proved to be untrue, as large numbers of patients began misusing the drugs. Today, an estimated 21–29 percent of patients prescribed opioids misuse them, with 8–12 percent developing a disorder. And while misuse of legal drugs is a huge problem in its own right, it is also the gateway to illegal opioids. However, by the time the problem was recognized, the medical sector had become reliant on opioids. Pain relief is a critical part of modern medicine, which helps patients manage chronic conditions as well as cope with recovery from shorter-term illnesses, accidents and operations. Simply abandoning opioids was not an option.

An Alternative to Opioids

One option gaining increased attention may be the use of all-natural cannabidiol (CBD) products, as a plant-derived option to the use of synthetic prescription painkillers. These products do not contain THC, the ingredient that gets cannabis users high, and so can be used to provide relief without impairing a user’s normal mental activities. Products containing CBD, which have recently been developed by companies such as Marijuana Company of America (MCOA Profile), may offer a viable alternative to synthetic medicines.

CBD applications and uses have benefitted from changes surrounding that industry. Licenses to grow industrial hemp have allowed companies to combine agriculture, R&D and product development with those seeking medical uses for hemp. MCOA’s recently established cultivation in Oregon is a prime example of this work, with researchers developing better growing techniques and improved plant strains that will allow them to extract higher yields of CBD oil.

A Healthier Option?

Scientific research into the effectiveness of CBD supports its potential in pain relief. A review of recent studies found that it was generally effective in helping patients manage their pain. Not only can it provide a viable alternative to opioid painkillers.

The advantage of CBD over opioids appear to be that it may provide a safer, healthier treatment option. CBD appears to be far less physically and mentally addictive than many prescribed pain medications. Patients can use it without experiencing the high risks of addiction that accompany many prescription painkillers.

The World Health Organization released a scientific research report conducted on CBD, which found the compound to be nonpsychoactive and nonaddictive; the report also noted that it has multiple health benefits. CBD oils provide patients with access to the relief that medical marijuana would bring but without many of the side effects.

Applied Medicine

By providing alternatives for relief, companies working with CBD are providing a pathway out of the opioid epidemic. One example of a CBD pain-management product is MCOA’s recently released hempSMART Pain Cream.

HempSMART Pain Cream is a topical treatment developed to reduce discomfort, support joint mobility, and relax muscles. Each bottle contains 300mg of full-spectrum CBD derived from industrial hemp, combined with other natural plant-based extracts. The cream contains the company’s own formulation of Ayurvedic herbs along with menthol, cayenne pepper extract, rosemary oil, aloe gel, white willow bark, arnica, wintergreen extract and tea tree oil. Together, these ingredients appear to provide an immediate cooling and soothing sensation, while the CBD helps to ease discomfort.

“We will continue to expand our health and wellness lines in 2018 to include more products,” said MCOA CEO Donald Steinberg. “Pain Cream has been enthusiastically received by our affiliates and customers.”

Pain Cream is just one of many hempSMART products already developed by MCOA. As more is learned about the potential uses of CBD in wellness products, the company will likely develop new products and treatments. From hempSMART Brain, a brain-enhancing formulation, to hempSMART Face, a CBD-infused cosmetic, the company is finding new ways to deliver the benefits of this chemical compound.

Cannabis Companies Explore Potential of CBD

Meanwhile, patients looking for pain relief have the chance to move away from prescription drugs and into treatments without the same risks of addiction. A number of other companies are also exploring the potential of CBD treatments.

One of the most prominent is Cronos Group, Inc. (NASDAQ: CRON), the first Nasdaq-traded company purely focused on cannabis. Though based in North America, the company has recently started branching out, obtaining a manufacturing license to produce products based on medical cannabis in Australia. Boosted by funds raised through a recent public offering, the company is set to become a global player in the field of cannabis-derived treatments, including pain medication.

Canopy Growth Corporation (NYSE: CGC) is also looking to bring cannabis and CBD treatments to a wider market. Having previously acquired a cannabis company in Lesotho, giving it access to the African market, the company is now expanding into Latin America through the acquisition of a Colombian company. Canopy Growth produces oils with varying levels of CBD to meet the varying needs of customers.

One of the world’s largest cannabis companies, Aurora Cannabis, Inc. (OTCQX: ACBFF) is heavily involved in pain relief through its wide selection of medical cannabis strains. The company recently took a step toward improving its research into cannabis-derived medicine, thanks to the Canadian Competition Bureau’s approval of a proposed takeover of MedReleaf. By acquiring another R&D-driven cannabis company, Aurora hopes to expand its own research into CBD-based medicines.

Medical cannabis company Organigram Holdings, Inc. (OTCQB: OGRMF) has produced a range of different strains, including CBD-rich options. It has recently been licensed to expand its production facilities, allowing the company to better meet the needs of a growing market.

With companies developing hemp-derived, CBD-based wellness products, a new alternative to synthetic opioid-based medications is emerging. CBD-based options may also provide access to the benefits of medical cannabis without that product’s mind-altering properties and other worrisome side effects.

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

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Government Interest in Hemp Diversity Signals Strong Future for American Cannabis Industry

CannabisNewsWire Editorial Coverage: Recent U.S. government interest in ensuring industrial hemp supply signals a period of growth for the cannabinoid industry. Marijuana Company of America Inc. (OTC: MCOA) (MCOA Profile) is contributing to this growth through new hemp cultivation projects in both Canada and the U.S., to support its hempSMART subsidiary. Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is benefiting from a cross-border venture that gives it access to new scientific advances and has seen its shares reach top exchanges. Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) has secured government licensing needed to become one of Canada’s leading retailers, while acquiring a subsidiary company in Lesotho to cater to an international market. Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF) has announced a new range of products that provide medical cannabis with a high concentration of active ingredients. OrganiGram Holdings Inc. (TSX-V: OGI) (OTCQB: OGRMF) has struck a deal for access to advanced extraction technology, while also gaining a license to export its products to Australia.

Senate Signals Support for Cannabis Seedbank

The United States government has a complicated relationship with cannabis. Since the mid-20^th Century, it has clamped down on the use of the plant for any purpose, particularly during the “war on drugs” from the 1980s onward. Over the past decade, some states have legalized the farming and sale of the cannabis sativa plant either as medicine, as a recreational drug, or in the form of industrial hemp. But the federal government has remained reticent about shifting its stance.

It seems that perceptions are now changing. The Senate Appropriations Committee, one of the most powerful bodies in government, has acknowledged the growing importance of industrial hemp for American farmers and called for the creation of a hemp seed back. Half a million dollars will be spent ensuring that America has a genetically strong stock of high quality hemp seeds, to support both farmers and researchers.

Building Better Strains

While the committee’s plan to build up seed stocks is intended to support the national interest, some companies are already working on improving industrial hemp growth for reasons of self-interest. Developing a diverse range of strains, each tailored to different purposes, is important for these companies. Industrial hemp is often valued for the quality of its fibres and the medicinal cannabinoids that can be extracted from the plant and implementing better growing techniques can lead to improved crops yields.

Among the companies looking to create more efficient hemp yields is the Marijuana Company of America (MCOA Profile). A company with a diverse portfolio of investments and joint ventures in the cannabis and industrial hemp sectors, MCOA is involved in several projects intended to improve the plants available to producers and consumers.

Together with the Global Hemp Group, MCOA has launched a project to encourage industrial hemp cultivation in New Brunswick. Previous attempts to develop the industry in the region failed twenty years ago, but now the market for the product has grown. The aim is to develop an industrial cluster around the hemp crop, ensuring a market for farmers, consistent job opportunities, and to implement the proper structure to develop Hemp Agro-Industrial Zones, or HAIZ, projects in other areas.

Scientific testing to improve the growing process is an important part of HAIZ. This has been made possible through cooperation with the Canadian government’s Department of Aquaculture Agriculture and Fisheries (DAAF). The department will be contributing fertilizers to the project and carrying out fertility trials on reserved plots of land. Together with soil testing and crop rotation, this will help to develop more fertile organic growing conditions for the hemp.

With legalization of the extraction of cannabinoids from industrial hemp on the horizon, Canada is an important market for cannabinoid-based companies. Recreational use alone is expected to contribute $900 million to the industry, which already serves medical users in Canada. The work in New Brunswick gives MCOA an important foothold in this market.

More Facilities for a Growing Market

The collaboration with GHG is now taking place on both sides of the border, thanks to the establishment of a new industrial hemp project in Scio, Oregon. Once again, the companies are collaborating to create a facility that will push forward techniques in hemp cultivation while providing a steady profit.

The heart of this operation is a 109-acre property in the Willamette Valley, a fertile area with a recent history of successful cannabis cultivation. The site has soil rich in organic matter and established irrigation infrastructure, meaning that it is well set to support a new agricultural project. The use of high yield hemp clones will help to maximise the output of the project.

Multiple approaches to cultivation will feed into the Scio facility’s output. Traditional outdoor cultivation will take place alongside five greenhouses, which will provide over 19,000 square feet of indoor growing space. This will ensure a year-round supply of hemp.

As in New Brunswick, data collection and analysis will play an important part at the farm in Oregon. By checking on the performance of the growing techniques and the quality of the plants, the companies aim to support strains which are rich in cannabidiol (CBD), an active ingredient important in derivative products designed to support well-being.

A Growing Global Industry

The new project comes at a perfect time for MCOA. Demand for CBD is high thanks to the growing global market for cannabinoid-based products. A facility that can provide the companies with a steady supply of high-quality CBD plants will make it easier to take a substantial place in this expanding sector.

One of MCOA’s most important subsidiaries is hempSMART. This company develops and markets hemp-based wellness products that make use of cannabinoids, the active compounds that can be extracted from the hemp plant. HempSMART also aims to educate consumers on the possibilities offered by hemp, possibilities that the U.S. senate has started to acknowledge through its establishment of the new seed bank. Educators and health professionals are among the experts hempSMART has brought into its team, to make it more than just a source of wellness products.

With investments in everything from payment systems to cultivation facility rentals, Marijuana Company of America has built a broad base of innovative cannabis-related products.

More Companies Signal Strong Future

It’s a sign of the health of cannabis industry that MCOA faces competition from a number of companies, both in hemp production and in the wider cannabis market.

Cronos Group, Inc. (TSX: CRON) (NASDAQ: CRON) is one of the highest profile companies in this sector. In February 2018, it became the first pure play cannabis company traded on the Nasdaq, a sign of the interest in cannabis by mainstream investors. A recent upgrade of its shares on the Toronto Stock Exchange reflects the way that cannabis companies are solidifying their position, proving that they are here to stay. A recently announced cross-border venture with MedMen means that Cronos will benefit from scientific advances being made by the Los Angeles company, which prides itself on its research work.

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) is becoming a leader in the cannabis retail field. Within Canada, it has established itself as a trusted company, being granted one of the first retail licenses in the province of Manitoba. This gives Canopy a strong starting point to sell to customers when recreational cannabis becomes legal in Canada later this year. Further afield, it recently acquired a cannabis company in the Kingdom of Lesotho. This will provide access to an African market largely ignored by western cannabis companies. It will also let the company grow medical cannabis in ideal conditions, with 300 days of sunshine a year, excellent humidity, and great growing conditions for greenhouse grown cannabis.

One of the largest cannabis companies, Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF) has recently expanded its activities to cover both the recreational and medical sectors. The company leans heavily on research to improve its sales, with the announcement in late May of a new range of high-THC content cannabis products. It has also made moves to expand its market reach over recent months, with the largest corporate acquisition in the history of the cannabis industry in the form of the purchase of CanniMed, as well as a supplier agreement with Shoppers Drug Mart.

OrganiGram Holdings Inc. (TSX-V: OGI) (OTCQB: OGRMF) is looking beyond the American market. The company has recently been granted a license to export cannabis to Australia. This will introduce OrganiGram’s product to a new territory through a deal with a licensed Australian medical cannabis dealer. Organigram’s success will be further bolstered by a recent deal with TGS Colorado, a company with expertise in extract technology. This will provide Organigram with access to best-in-class technologies, products, and designs with which to make the most of its expanding cultivation base.

Increasing government backing, combined with advances in cultivation and technology, ensures that there’s a healthy future for all varieties of cannabis, from medical marijuana to industrial hemp.

For more information about Marijuana Company of America, please visit Marijuana Company of America (MCOA).

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