Political Breakthrough Heralds the End of the Prohibition on Hemp

CannabisNewsWire Editorial Coverage: With federal legalization of hemp expected in the United States by Christmas, the farming and cannabidiol product industries are anticipating great changes in their future.

Hemp farming, which has been illegal in the United States since 1970, is about to be made legal under the newest Farm Bill legislation.
Pilot projects and work in Canada have allowed companies to prepare for U.S. hemp farming by developing their techniques, science and crop strains.
With legalization promising great growth, companies are seeking paths to investment opportunities.

Marijuana Company of America, Inc. (OTC: MCOA) (MCOA Profile) is among the innovating companies carrying out cultivation, research and development projects on sites in the United States and Canada. Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has been expanding its operations through partnerships with other companies, covering investment, supply and research. Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) has expanded its cultivation and markets while negotiating for fresh investment. Aphria, Inc. (NYSE: APHA) (TSX: APHA) has partnered with a company specializing in branding to develop new consumer-driven brands and products for the cannabis market. Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) is putting out new products in the United States and looking to export those products abroad, following the successful export of medical cannabis into Europe.

To view an infographic of this editorial, click here.

The End of an Era?

For decades, hemp has been locked out of agricultural development in the United States. Once a vital crop used to produce the rope and canvas on which the American naval and merchant shipping forces relied, it was made illegal in 1970 under legislation designed to reduce drug addiction. For nearly half a century, farmers have been unable to cultivate this crop despite growing evidence of its usefulness.

Now that is set to change. After months of haggling, politicians in Washington have finally brokered a deal to pass the legislation that will make hemp legal. For the past four years, a small band of farmers and university researchers have been involved in pilot projects, testing the potential of the hemp market. The profitable outlook, together with growing demand for health and wellness products derived from hemp, have led politicians to change their stance.

Could 2019 be the year that hemp’s cannabidiol (CBD) derivatives become household commodities?

Legalization Legislation

The past decade has produced considerable growth for companies working in the hemp sector, such as Marijuana Company of America, Inc. (OTC: MCOA). Hemp is a form of the cannabis plant with very low levels of tetrahydrocannabinol (THC), the psychoactive ingredient in the marijuana strains of cannabis. Despite hemp’s essentially innocuous nature, it was made illegal under sweeping federal regulations that classified all forms of cannabis as Schedule I substances, among the most dangerous and least medicinally helpful of drugs.

Since 1996, the legal landscape has been changing as states have introduced pro-cannabis legislation in defiance of federal drug policy. This allowed companies such as MCOA to emerge and start looking at the potential of industrial hemp. However, these companies were caught in a no-man’s-land industry sector between conflicting state and federal legislation. Under those circumstances, building a commercial hemp industry had limited practicality.

A change at the federal level began four years ago, when the 2014 Farm Bill made it legal for companies to carry out pilot projects to grow hemp. Companies moved quickly to make the most of the opportunity, setting up facilities such as the farm MCOA established in Oregon. From 9,650 acres in 15 states in 2015, hemp production grew to 77,000 acres under 3,500 licenses in 23 states in 2018.

During the course of that change, the hemp industry has gained widespread acceptance in Washington and throughout the country, leading to cross-party support for hemp’s inclusion in the new Farm Bill as an agricultural commodity. But conflict over other aspects of the bill held the legislation up until late November. Then, in the waning days of a lame-duck Republican House, an agreement in principle was finally reached.

Once the farm legislation is passed as expected, growing hemp could become fully legal in the United States as early as January. That would be huge news for farmers and a great start to the new year for the fast-growing industry.

Farming Hemp

The anticipated legislative changes may lead to a new agricultural phenomenon for United States farmers, but it will be far from the first hemp crop in North America. Aside from the pilot projects in the United States, more liberal legislation in Canada has allowed farmers to get a head start on hemp production. For MCOA, this has meant pursuing profitable crops and supporting farmers on both sides of the border.

In Canada, MCOA’s efforts have taken the form of an innovative joint venture in New Brunswick. There, MCOA teamed up with Global Hemp Group, Inc. and four local farmers to experiment with techniques for hemp farming. This has led to practical developments, such as the use of a bean harvester to strip leaves and inflorescence from plants, improving the efficiency of the harvest. It has also led to more academic results, including research on plant nutrition with Dr. Ron Smith at the University of New Brunswick.

The company’s U.S. project at Scio, Ore., is earlier in its development and proportionally smaller. The Oregon cultivation benefited from good weather in 2018, extending growing time and leading to an improved harvest. Here, MCOA is already growing hemp with a higher CBD content — 6 to 12 percent. Large greenhouses were used to dry out these plants, with staff continuing to learn and refine their drying techniques with each batch.

On both sides of the border, partnering with other companies is helping MCOA maintain a high pace of innovation and expansion. The company is currently looking for opportunities to work with a cannabinoid extraction player in the United States to make the most of its crops.

Preparing for a Boom Market

With legalization around the corner, hemp companies are moving to strengthen their positions for market expansion.

For MCOA, this has meant a move into mainstream advertising. The company’s hempSMART™ subsidiary has partnered with asseenontv.pro to launch a television advertising campaign for its Full Spectrum Pet Drops, a pet well-being product using CBD.

CEO Donald Steinberg said, “As our hempSMART brand continues to grow, MCOA will continue to search for and utilize new partnerships that will uniquely market our incredible collection of all-natural CBD product formulations. We feel that our strategic partnership with ASONTV is an important milestone for the Company that will help promote our hempSMART Pet Drops to consumers across the country.”

The company has also filed an application to uplist its shares from OTC Pink to the OTCQB tier on the OTC markets. This strategic move should provide better access to institutional investors to raise funds targeted to help the company grow along with the wider industry. A new CFO and independent director were appointed over the summer to ensure strong leadership during this period of huge potential.

Like MCOA, Canadian cannabis company Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has been partnering with other companies to support its growth. This includes an investment and supply deal with 48North Cannabis Corp., a strategic supply agreement with MediPharm Labs Corp. and a research and development collaboration with Battelle. One of the factors fueling Canopy Growth’s expansion has been an investment from Constellation Brands, which pumped billions into Canopy Growth earlier this year. This financial move should give the American drinks giant a way into the cannabis and hemp markets, including the production and sale of CBD-infused drinks.

Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) has also been pursuing growth, with expansion into Latin America, an increase in the scale of cultivation and a collaboration with Ginkgo Bioworks to develop innovative products for the cannabis market. This has drawn the attention of outside investors, and the company is now in talks with Altria Group, Inc. about potential investments that could provide additional funds at a strategic turning point for the market.

Aphria, Inc. (NYSE: APHA) (TSX: APHA) aims to carve out a distinct space in the market through innovative consumer products. Aphria recently announced the creation of a joint venture with Perennial, Inc. to develop original consumer-driven brands and products for the cannabis market. This will join Perennial’s experience in brand development with Aphria’s expertise in cannabis to explore edibles, beverages and other new lines of products.

Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) is already busy putting new products out. The company has recently announced the release of cannabis softgel capsules for the Canadian market and expects to export them to international markets next year. The company already works on an international scale, having announced its first shipment of medical cannabis to the Czech Republic in November.

Pending hemp legalization in the United States is only the latest in a series of shifts in the wider cannabis sector, shifts that appear to have opened the way for a wave of expansion and innovation.

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

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Cannabis Industry Stays in Spotlight with Ongoing Developments

CannabisNewsWire Editorial Coverage: Profitability and more widespread legality are drawing fresh investment to the cannabis sector.

Major investors and outside companies are putting big money into cannabis.
Undervalued companies provide good opportunities for new investors in the sector.
Following the legalization of recreational cannabis in Canada, companies in the United States are seeing even larger market caps.
As attitudes change, more cannabis companies are expected to soon be listed on major U.S. exchanges.

With a strong pick-and-shovel strategy alongside recent direct investment in cannabis, Generation Alpha, Inc. (OTCQB: GNAL) (GNAL Profile) is among the cannabis companies seeing good growth. Tilray, Inc. (NASDAQ: TLRY) is moving to benefit from fresh investor interest through public offerings in Canada and the United States. Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has benefited from a substantial investment from Constellation Brands, Inc. (NYSE: STZ), the result of a trend in which U.S. alcohol and tobacco companies eye up cannabis. The industry’s upward trend is also reflected in the soaring revenues of Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON).

To view an infographic of this editorial, click here.

The Mainstreaming of Cannabis

A state-legal cannabis industry has existed in North America for more than 20 years. Since the legalization of medical marijuana in California in 1996, the industry has spread at a growing rate. The majority of U.S. states now allow its sale for medical purposes. One-fifth of the states, plus all of Canada, have legal recreational cannabis markets. Yet the cannabis industry remains on the fringe of the American economy, largely separate from the work of mainstream businesses and investors.

That’s now changing. Growing numbers of investors are putting money into cannabis, cannabis companies are able to raise substantial capital for growth initiatives, and large enterprises have taken an interest in cannabis-focused ventures with a view to establish partnerships and make investments. With these changes, cannabis becoming fully integrated into financial markets appears to be a logical next step.

The Acceptable Face of Cannabis

Over the past few years, the cannabis industry has seen growing acceptance of its place in society and the economy. This is due in no small part to the professionalism of the companies working in the sector, including companies such as Generation Alpha, Inc. (OTCQB: GNAL).

Generation Alpha started out as a support provider for the cannabis industry, taking a basic supply approach to the business. A vertically integrated technology innovator, the company developed, manufactured and distributed products and solutions for cannabis growers, which were springing up across the United States. As a supplier of horticultural and lighting equipment, GNAL provided essential supplies that cannabis cultivators relied on to grow their businesses.

Generation Alpha has seen rising investment in its organization. As recently as April, it announced a $25 million in investment from an existing shareholder under its previous name of Solis Tek. Other cannabis companies have also seen substantial investments over the past year.

The most practically and symbolically significant is the investment of $4 billion in Canadian company Canopy Growth by American beverage giant Constellation Brands. Not only does this move represent a huge financial boost for the company, but it also signifies an important moment for the entire industry. This massive investment from a beverage manufacturer reflects the growing interest of tobacco and alcohol companies in cannabis and their willingness to risk money in a relatively new industry, possibly signifying a bigger wave of change coming down the line.

Undervalued Assets

There’s a marked disparity between Constellations Brands’ investment in the sector and that recently received by Generation Alpha and other cannabis brands. The reason is likely because Constellation has recognized what others have not — many cannabis companies may be undervalued.

It’s hard to judge the value of assets in an industry that’s going through such big changes. But looking at the fundamentals, it’s easy to spot places where value may not yet be recognized.

Generation Alpha’s move into cultivation and processing of cannabis is an example of this. The company recently acquired a cultivation and processing facility in Phoenix, Arizona. GNAL is using its experience in the support side of the industry to turn this 70,000-square-foot space into a technologically advanced growing facility. With the site scheduled to become operational in the first half of 2019, the profit from this is decision should soon be realized.

The recent legalization of recreational cannabis in Canada this October showed the stark imbalance between supply and demand in the cannabis market. Within weeks, the country was facing a cannabis shortage as consumers rushed to enjoy a legal high. Similar patterns are likely to play out in U.S. states as legalization — whether for medical or for recreational purposes — spreads across the country. If, as many expect, U.S. Attorney General Jeff Sessions’ departure leads the Trump administration to a more liberal stance, then rising demand is even more likely, ensuring both an eager market and a good price for the product coming out of Generation Alpha’s facility.

And then there’s the long view. Big businesses now have a vested interest in cannabis. This interest will naturally lead to heavier lobbying for reform of anti-cannabis laws; not just in the United States, but around the world. The next decade will likely be a time of huge global growth for the industry, thanks to social and political change. The value of companies such as Generation Alpha could grow significantly as these pioneering cannabis companies set their sights on becoming the backbone of a mature global industry.

The Canada Effect

Events in Canada provide the surest signs of the coming shift.

As the first G8 country to legalize recreational cannabis, Canada is setting an example for the world, converting cannabis consumption from a drain on law enforcement into an asset that provides tax income for the government. The change hasn’t just affected Canadian companies; it has also touched those in the United States, including Generation Alpha. Both north and south of the border, the market cap for cannabis has grown as investors strategically place their money into the burgeoning industry.

Canada is now leading the way in cannabis. While it might take time for the United States to catch up at a federal level, American companies are already feeling the benefits.

Onto the Exchanges

All this growth means more companies listing on major markets. Together with a broader social shift in attitudes towards cannabis, a change at the top of the economy is extremely likely. As the power of cannabis companies grows, it’s surely only a matter of time before major U.S. exchanges add more American cannabis companies. With that, these companies will be able to tap into even more resources through the finance of major investors. And once the inconsistency between federal and state law is addressed, major banking will add another route to funds.

Companies with strong, proven strategies will be best placed to benefit from this surge in funding. With its core pick-and-shovel strategy, Generation Alpha fits the bill. By supplying goods and services to cannabis growers, GNAL will be ideally positioned to profit from the growth while keeping a buffer between its core business and shifts in the price of cannabis. With innovations such as its high-efficiency LED lighting system, the company will be a strong competitor among other cannabis support companies.

One of the companies looking to turn cannabis’ credibility into financial resources is Tilray, Inc. (NASDAQ: TLRY). A prominent provider of medical marijuana, Tilray has used a well-developed research and design program to gain an edge in the fast-growing industry. It’s currently using public offerings in Canada and the United States to seek fresh funds from investors, but its ambitions aren’t limited to North America. The company has customers on five continents, thanks to the growing international acceptance of medical cannabis.

Through early moves in the sector, Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has established itself as one of the big names in Canadian cannabis. Working both alone and in partnership with others, Canopy Growth has evolved into a multifaceted company with a strong investment in brand and product differentiation.

Canopy Growth Corp. made news earlier this year when it received a second substantial round of investment from U.S. beverage company Constellation Brands, Inc. (NYSE: STZ). That $4 billion investment has made Constellation Brands a substantial shareholder in Canopy Growth, owning a third of the company. The investment was a major coup for the cannabis company, giving it the sort of resources that most of its competitors only dream of. But it may also prove to be an important moment for Constellation Brands, as it adds cannabis and cannabis-infused products to its repertoire of alcoholic drinks.

As tobacco and alcohol companies look for ways to deal with their own falling sales, it’s likely that a growing number will turn to cannabis, providing fresh investment for the market. When they do, there will be plenty of strong options. The growth of medical and recreational markets has led to impressive revenue growth for companies. For example, Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) saw revenues increase by 186 percent in the third quarter of 2018. By partnering with other businesses, increasing its cultivation space, and getting involved in the Latin American cannabis market, the company has been able to keep expanding its operations.

Big money is flowing into the cannabis industry. As its prestige rises, those funds are set to keep growing for a long while yet.

For more information on Generation Alpha, visit Generation Alpha, Inc. (OTCQB: GNAL)

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Cannabis Boom Fuels Mergers and Acquisitions in Hydroponics and Beyond

CannabisNewsWire Editorial Coverage: The rapid growth of the cannabis sector is pushing companies to innovate expansion strategies.

Among the companies affected are hydroponics suppliers, which sell vital equipment to cultivators.
Hydroponics companies, like others in cannabis, are using mergers and acquisitions to benefit from a bullish market.
A recent trade show in Las Vegas saw companies on the hunt for future acquisitions.
Other companies are seeking outside investment or partnerships to increase their presence.

Hydroponics supplier Sugarmade, Inc. (OTCQB: SGMD) (SGMD Profile) has leaned into the current trend for mergers, with a big acquisition and open plans for future growth. Tilray, Inc. (NASDAQ: TLRY) is focusing on research and design, using public offerings to finance this work. Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has gained $4 billion in investment from a beverage company, an investment some believe will lead to a takeover. Both Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) and Aphria (NYSE: APHA) (TSX: APHA) are relying on diverse strategies, including external partnerships, as they look to grow and succeed in the cannabis sector.

To view an infographic of this editorial, click here.

The Industry Behind the Industry

The cannabis industry is experiencing a period of staggering growth, with commentators predicting that it will reach a global value of over $146 billion by the end of 2025. With so much of the industry based on indoor cultivation, hydroponics companies that provide the equipment and nutrients needed to cultivate cannabis have also seen significant growth. As cannabis cultivation increases, so does demand for hydroponics products, so that the fates of the two industries are increasingly tied together.

Given their close relationship, it’s not surprising to see patterns in the broader cannabis sector reflected in the hydroponics industry. A recent surge of mergers and acquisitions among cannabis companies includes a number of moves involving hydroponics companies as players within the industry seek growth while outsiders look for a way in. With a big cannabis trade show coming up in Las Vegas, executives from hydroponics companies will be eyeing up the competition and contemplating who they might buy next.

Mergers, Acquisitions and Hydroponics

Hydroponics companies such as Sugarmade, Inc. (OTCQB: SGMD) are essential to the cannabis industry.

While cannabis can be grown outdoors, almost everything about the current industry drives producers away from this method. Indoor facilities are more secure, an important factor when producing a high-value, high-demand crop prized by criminals. Indoor cultivation also provides far greater control over the conditions in which the cannabis grows, as well as over the quality of the plants grown. Lighting, water, nutrients and temperature all affect the final outcome of the plants, including the quantity of active ingredients in them. High-quality hydroponic equipment, like that supplied by Sugarmade, gives growers control over the forces affecting their cannabis crop.

This control is becoming increasingly important as the cannabis market grows. Customers may be more forgiving of varying quality when companies are small or their product is hard to obtain. But as companies grow and supplies become more consistent, people expect consistency and quality — things that are harder to provide without hydroponics.

The growing number of companies in the sector also means that competition for customers is growing. Companies are racing to create crops with higher dosages of tetrahydrocannabinol (THC) and cannabidiol (CBD), the most significant active ingredients in cannabis. The more powerful the plant, the more customers will return, creating a strong brand loyalty. Again, hydroponics can be an essential piece of this success.

Demand for hydroponics has led to swift growth for Sugarmade, which expects 500 percent growth in revenue for the fiscal year ending in 2019. One of the ways in which Sugarmade is meeting growing demand and achieving these impressive results is through acquisitions.

Mergers and acquisitions are an obvious route to growth for companies in a maturing sector, and in the past year, that’s what many cannabis companies have chosen to do. The first half of 2018 saw 145 mergers and acquisitions in the sector, compared with 79 for the same period the previous year. Some of the pioneers who created cannabis startups in the early days of the industry are cashing out, making way for a field of larger, established companies.

Now caught up in the wider patterns of the cannabis market, hydroponics is heading down the same path. With its latest acquisition of Sky Unlimited LLC, Sugarmade has been one of the leaders in this trend. The cash and shares deal, worth $40 million, will give Sugarmade control of AthenaUnited.com, an online outlet providing a range of hydroponic equipment.

“This acquisition will further boost our already very rapid growth rate and is expected to be high accretive to common shareholder value,” said Sugarmade CEO Jimmy Chan. “Sky Unlimited and Athena are complementary to our existing business operations, allowing us to not only increase our emphasis on brands but also to diversify our revenue streams to now include the larger commercial cultivation operations.”

Cannabis Goes to Vegas

Sugarmade was on the hunt for more acquisitions as its team headed to Las Vegas for MJBizCon.

One of the cannabis industry’s largest trade shows, MJBizCon took place November 14–16 at the Las Vegas Convention Center. Investors, entrepreneurs and professionals from across the sector headed to Vegas for three days of talks, meetings and the sort of networking that dominates any trade show.

This year’s show had a record number of attendees and exhibitors, reflecting the huge growth that the industry has seen. Some 25,000 attendees met up and discussed topics such as the latest industry trends and how to navigate the difficult waters of regulatory compliance.

One prominent item on the agenda was the move by bigger players into the cannabis market. Beverage and tobacco companies are eyeing cannabis as an alternative revenue stream, with some striking early partnerships with cannabis businesses. To survive in the face of these big money competitors, businesses will have to grow — one of the motivations behind Sugarmade’s acquisition strategy. There’s still space for small fish in the cannabis pond right now, but that space is shrinking.

MJBizCon provides fertile territory to lay the groundwork for acquisitions. There, companies can make contacts, seek investments and demonstrate their value. It’s a perfect venue to attract acquisition targets and start negotiations.

So it was a full-press court for Sugarmade at the event, as the company set out to continue its successful growth strategy. Though this year’s moves have already given it a competitive edge, Sugarmade is always looking to strengthen its foothold and further establish its position as an industry presence.

“Over the past year, we have significantly enhanced our operational staff and our internal systems preparing for our rapid growth,” Chan said in a recent statement. “With these changes, we believe we are optimally sized, but we want to ensure we are able to manage our aggressively planned growth rate.”

Big Moves for Big Profits

Other companies are also making bold moves to profit from the growth of the cannabis sector.

While expansion is critical to surviving in this fast-changing environment, mergers and acquisitions aren’t the only answer. Tilray, Inc. (NASDAQ: TLRY) is instead focusing on its well-developed research and design program to place it ahead of competitors. A leading medical marijuana company, Tilray has established a prominent position in the North American healthcare market. But it’s also looking beyond the United States and Canada as the cannabis industry goes increasingly global. With customers on five continents, Tilray has become an international cannabis business, and one still set on expansion. The company is using its public offerings in the United States and Canada to gain additional finance that will fund ongoing growth.

Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), one of the biggest cannabis companies in Canada, is financing its expansion through a connection outside the industry. The company struck a deal with Constellation Brands, the major U.S. beverage company behind brands such as Corona. The deal has seen Constellation acquire more than a third of the shares in Canopy Growth in return for $4 billion in investment. It’s the biggest move so far by outside businesses into the cannabis sector and likely an omen of things to come. Many are predicting that this will lead to Canopy Growth’s eventual absorption under the Constellation umbrella, once cannabis becomes a big enough market to deserve more of the beverage giant’s attention.

Growth in the industry has been good for Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON), whose revenues were up 186 percent in its third-quarter reporting this year. Increased cultivation, a partnership with Ginkgo Bioworks on cultured cannabinoids and a move into Latin America are all part of the company’s announced plans to continue its expansion. By following a diverse range of growth tactics, Cronos is solidifying its position as a significant international player.

Collaboration with other companies is also part of the strategy for Aphria (NYSE: APHA) (TSX: APHA). The company has formed a joint venture with Perennial, Inc., to develop products for the Canadian cannabis market, currently one of the most significant cannabis markets in the world. Such collaborations are allowing companies to achieve more together than they could alone and perhaps survive in the face of larger competitors.

With the cannabis industry growing at a dramatic rate, both cultivators and the companies that supply them will have to find ways to increase their impact if they want to beat the competition.

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

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Hydroponics Increasingly Key as Booming Cannabis Sector Goes to Next Level

CannabisNewsWire Editorial Coverage: With Canada’s decision to decriminalize cannabis nationwide and the 2018 U.S. Farm Bill’s provision to potentially make industrial hemp and hemp-derived cannabidiol (CBD) legal nationwide, the cannabis CBD product sector is gaining a strong foundation.

Analysts expect runaway growth in the cannabis and CBD markets.
Industry is scaling up amid regulatory reform.
Underlying growth metrics are bullish for hydroponics suppliers and cultivators alike.
Branding and marketing are increasingly important and tied to quality control.

Numerous interests stand to benefit as the cannabis sector begins to hit its stride, ranging from cannabinoid biopharma developers to cultivators with rapidly expanding acreage footprints. Pick-and-shovel plays such as hydroponics supplier Sugarmade, Inc. (OTCQB: SGMD) (SGMD Profile) could be some of the biggest winners, quietly supplying tons of hardware to a variety of end users without having to jump through the all the legal hoops. Tilray, Inc. (NASDAQ: TLRY), one of the first companies licensed to produce medical cannabis as dried flower in Canada, has quickly become known for its full-spectrum cold-extracted cannabinoids with clearly indicated tetrahydrocannabinol (THC) and CBD potencies. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has parlayed its leadership in cannabis and hemp with dried, oil and softgel capsule products into a landmark $4 billion investment from beer, wine and spirits major Constellation Brands, Inc. Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON), which operates two wholly owned Canada-licensed producers, is making its presence felt across five continents. And Aphria Inc. (NYSE: APHA) (TSX: APHA) is also making serious waves as a globally minded cannabis producer, having just recently been approved for uplisting to the New York Stock Exchange.

To view an infographic of this editorial, click here.

Historic Market Forces Create a Perfect Storm

After more than eight decades of prohibition, cannabis has gone from a black market to a tax revenue-generating multibillion-dollar industry in a handful of years. It is an industry nipping at the market share heels of sectors like alcoholic beverages, food and drink, supplements and now even biopharmaceuticals. The market for just one of over 100 different cannabinoids, the non-psychoactive CBD, was recently projected to break $22 billion by 2022. CBD alone could have “profound impacts” across the consumer packaged goods (CPG) and pharma industries according to Brightfield Group, potentially outpacing the broader cannabis market combined. It would be a major boon to the U.S. market if industrial hemp and CBD become legal under the latest Farm Bill.

Recent analysis in a report from Amadee & Company cites baseline market metrics such as over 37 million people in the United States using cannabis (both legally and illicitly) as contributing to a North American market worth over $41 billion this year, which is on track to hit $95 billion by 2026. The more conservative figures from Arcview Market Research and its research partner BDS Analytics are the $9.2 billion in sales seen in 2017, and a projection of $47.3 billion within 10 years. Either way, investors are looking at some low-hanging CAGR fruit, and the sector as a whole has scaled up enough that it is now seemingly much easier to pick winners that can thrive, regardless of potential governmental policy drift.

Many End Markets – One Stop Shop for Hydro Hardware

Sugarmade, Inc. (OTCQB: SGMD), headquartered in northeastern Los Angeles County on the edge of the Angeles National Forest, has already established a formidable presence in the hydroponics supply market with brands such as ZenHydro.com, CarryOutSupplies.com and BudLife. The company also recently launched a massive new $1 million initiative to cement a foundational position in the emerging U.S. industrial hemp and CBD market through an investment in privately held Hempistry, Inc., a Kentucky-based farmer (23,000 acres) of an ultra-rich CBD strain of hemp.

Hydroponics has rapidly emerged as the dominant strain in the cannabis cultivation industry when it comes to medical cannabis, or products that want to emphasize stringent environmental cultivation controls and overall consistency. The KD Market Insights report projects a six-year CAGR of 20.7 percent, as a $5.22 billion 2017 hydroponics market grows to $13.84 billion in 2023. According to another report, cannabis cultivation will be a major driver of sector growth, with just the U.S. hydroponics market set to clock in at 20.3 percent CAGR from 2018 to 2025, hitting around $3.7 billion.

These are significant advantages for SGMD as the company pursues its binding definitive agreement to acquire Nevada-based Sky Unlimited, LLC, which has developed a solid reputation throughout the full spectrum of cultivation markets. Its robust AthenaUnited.com website lists everything from advanced lighting systems such as Hortilux lamps and ballasts to complete hydroponics kits such as the AeroFlo 60 aeroponic system from General Hydroponics, which super-oxygenates the nutrient solution. The AeroFlo line is a great example of a brand that growers, academics and researchers alike have praised for delivering consistently hearty growth rates and yields. Consumers from various cultivation industries have come to trust that they can find the best environmental control systems and cutting-edge nutrients, as well as plant care and more general gardening supplies on the site.

Ready to Launch

Sugarmade will retain all employees and completely assume all operations and liabilities via the acquisition. The company anticipates that the Sky Unlimited deal will be highly accretive for shareholders and has further increased the previous 500 percent annual revenue growth projection made back in July, of $30 million during 2019, to a whopping $70 million. This handsome increase owes a lot to how easily integrated the parallel business lines of Sky Unlimited and Athena are to SGMD’s existing model, as well as the extent to which the deal will allow Sugarmade to not only access the larger commercial cultivation market more directly but also enhance its emphasis on brands in a market where brand loyalty still means a great deal.

Scheduled for January 2019, the deal is subject to an extensive audit of the Sky Unlimited operations, but confidence is high that this latest acquisitive foray by Sugarmade will spell share price appreciation gold for the company’s shareholders. In fact, things are apparently looking so good overall for the company that management has begun positioning for a potential NASDAQ uplisting, tapping the requisite legal team to expedite the process.

Symbiosis amid Competition

The broader market is set up nicely for SGMD to take advantage of, but the reality is more symbiotic than predatory.

Tilray, Inc. (NASDAQ: TLRY) was the first company to legally export medical cannabis from North America to Europe, Australia and New Zealand. One of the top names in both cultivation and research, Tilray is on deck to report Q3 financials this Nov. 13 after a strong quarter in which the company successfully closed a $450 million private placement funding run with qualified institutional buyers. The company is one of the pioneers in clear labeling of THC and CBD concentrations and has a public-facing dedication to compliant and effective products that lead the industry by example.

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) prides itself on the highest quality cannabis, whether it is ultimately distributed as dried flower, oils and concentrates, or precisely formulated softgels. The company has a strong hand in industrial hemp for producing CBD, and now that alcoholic drinks giant Constellation Brands (which has over 100 brands to its name) recently closed its $4 billion investment in the company, Canopy is poised to strike hard and fast across the more than 30 countries worldwide that are in the process of advancing some form of permissible cannabis regulation for adult use or medicinal purposes.

Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) is increasingly a global player, with operations in Canada, Colombia, Germany, Poland, Israel and Australia. The company launched its second recreational cannabis brand this year and has two wholly owned Canada-licensed producers to its name, as well as a 21.5 percent stake in British Columbia-based Whistler Medical Marijuana Company, which is licensed to produce and sell medical marijuana and cannabis oil.

When Aphria Inc. (NYSE: APHA) (TSX: APHA) uplisted from the OTCQB to the NYSE, it was not just big news for the company but for the cannabis industry and smallcap markets as a whole. Aphria has seen an impressive rise from a relatively small player to a true global leader in cannabis. The company’s rigorous study of the end-user market and ingenious development of a variety of brands to suit every buyer segment has delivered bottom-line results across the company’s entire line of capsules, oral solutions, oil syringes and single-unit vaporizer cartridges.

Once-in-a-lifetime Early-adopter Opportunity

As attitudes and regulations open up the global market for the end products being developed in the cannabis market, from commercial drinks containing CBD to lab-grown cannabinoid biopharma indications, some of these smaller companies are starting to look to many analysts like potential all-stars. Differentiating factors such as brand presence, product execution and market access/penetration are important analytical vectors. However, key capabilities such as being a picks-and-shovels supplier are of particular note, whether one is talking about hydroponics hardware for production or producing the raw cannabis that other companies rely on.

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

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Payment Solutions Among Innovations in the Fast-Growing Cannabis Industry

CannabisNewsWire Editorial Coverage: The legal cannabis industry, which anticipates massive growth over the next few years, is seeing constant innovation as companies move to provide essential services needed for that growth.

The global cannabis industry, which was worth $7.7 billion in 2016, is expected to reach $65 billion by 2023.
The industry’s upward trajectory is happening despite legal restrictions that have forced cannabis businesses to seek alternative payment solutions.
These solutions are among many innovations in the sector, which has a strong strand of research and design.

Net Element (NASDAQ: NETE) (NETE Profile) recently launched a compliant, secure payment processing solution focused on serving the legal cannabis industry. Medical cannabis company Tilray, Inc. (NASDAQ: TLRY) is supplying materials for a range of research projects around the world that are studying cannabis’ potential in medicine. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has received massive investment from a beverage company and is likely to be one of the first companies selling cannabis-infused drinks. And the first U.S. Food and Drug Administration (FDA)-approved cannabis-based drug has just gone on sale from GW Pharmaceuticals Plc (NASDAQ: GWPH). Meanwhile, new uses for the plant are being found, as exemplified by Cronos Group, Inc.’s (NASDAQ: CRON) (TSX: CRON) research on the use of cannabis in skin cream.

To view an infographic of this editorial, click here.

Cannabis Payment Solutions

The cannabis industry is currently growing at an astonishing rate. Since 1996, its use for medical purposes has become legal in 31 U.S. states and Canada as well as a number of other countries around the world, most recently the United Kingdom. This remarkable pace of change has been accompanied by the emergence of related industries producing industrial hemp, cannabidiol (CBD) oil and support services for cannabis growers.

Despite this, legal cannabis sellers in the United States face serious problems in accessing basic business services. Because banks and payment providers are often wary of working with cannabis companies — even legal ones — these companies are forced to either accept the risks and inefficiencies of a cash-based business or seek alternative payment options. Fortunately, payment solutions are becoming increasingly viable.

The Challenge — And Opportunity

The challenge — and opportunity — with cannabis payment processing is significant enough to have drawn in businesses from outside the sector, such as global technology company Net Element (NASDAQ: NETE).

With the growth of the medical cannabis market has come more people are looking for one of the sectors most in-demand products — CBD oil, which is the concentrated liquid extract of the cannabis plant. Previously most CBD products were sold in head shops, but increasingly these products are found on the shelves of natural food stores, beauty aisles, cafes and doctors’ offices. This spread to other venues has created an even greater need for smooth transactions between merchants and consumers.

While the majority of states now allow the legal sale of some form of cannabis or its derivatives within their boundaries, cannabis providers may still find it challenging to find payment options that allow mobile payments, offer value-added transactions, and are easy for both the business and the end user. Fortunately, companies such as Net Element are positioning themselves to provide exactly what this underserved industry is looking for.

These alternative solutions, including Net Element’s Aptito and Unified Payments systems, solve the problem by offering a compliant, seamlessly integrated payment solution that is simple to use. The systems rely on the latest digital technology, which allows retailers to accept payments outside of conventional routes while remaining user friendly for customers.

More Sales, More Payments

It’s a good time for companies to expand their reach in the cannabis market, as Net Element is doing. The industry is experiencing a period of huge growth. According to recent research, the legal cannabis market was worth $7.7 billion in 2016 and is forecast to reach $65 billion by 2023, a staggering 37 percent rate of compound growth per year.

Various factors are playing into this. Cannabis is already a huge industry, but one historically run by criminal gangs. One of the reasons for wide legalization is to take that trade out of criminals’ hands. In the United States, 70 to 75 percent of the cannabis trade is still illegal, but only 30 percent of it is illicit in states with legal options on the books. As legal cannabis from regulated suppliers becomes more widely available, the expectation is customers will move away from illegal businesses. The customer base is already there, and it’s huge.

Ongoing changes in the legal landscape are also a factor. The White House has hinted that it is considering liberalizing federal cannabis laws. Shifts in medical-use cannabis are taking place in Germany and the United Kingdom. In the United States, the current Farm Bill has enough support that it is expected to legalize the widespread cultivation of industrial hemp for nonrecreational cannabis uses.

This last change ties into an unexpected and significant trend in the cannabis industry. Hemp, a nonpsychoactive form of cannabis, was used in manufacturing rope and cloth before being made illegal during the political campaign against marijuana. Now, it’s returning to legality as a source of a new material — CBD oil. This active ingredient of cannabis is used in a growing number of health and well-being products. The hemp and CBD parts of the industry alone are set to reach $22 billion by 2022. While CBD sales are still largest in the stores supported by companies such as Net Element, these products are moving towards the mainstream via health stores, beauty aisles and cafés.

Rising to the Problem

A growing sector with a need for innovative solutions is the perfect place for a company such as Net Element to act on its vision.

“We are excited to launch a legal cannabis payment acceptance solution to meet the needs of sales partners and merchants for this emerging market,” commented Vlad Sadovskiy, president of integrated payments for Net Element. “Addressing the needs of our merchants is our number one priority and we work closely with various vendors to bring our merchants state-of-the-art payment acceptance solutions.”

The cannabis sector is more than just cultivators and retailers. It also includes the companies that support those businesses, companies that are set to thrive if the industry maintains its spectacular growth. The industry’s circumstances have ensured that it has become a forward-looking one.

A Future-facing Industry

Cannabis companies constantly have an eye on the state of the legal landscape and the new opportunities it may create for the market. Because those companies are working in an industry that has been illegal, industry-building techniques and products are only beginning to be properly discussed now, with innovations in research and design being announced as a result. Constraints such as those established by the U.S. government are forcing them to find technological solutions to problems other companies don’t face.

Medical cannabis company Tilray, Inc. (NASDAQ: TLRY) prides itself on the part it plays in pushing the industry forward. With a strong emphasis on industry and innovation, Tilray is committed to research that will expand the possibilities of cannabis, carried out in partnership with hospitals and universities. It is currently supplying products for a range of clinical trials in Australia and Canada that promote the safety and effectiveness of cannabis use in tackling ailments such as childhood epilepsy and chemotherapy-induced nausea.

Research and design work at Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has been super-charged by a recent investment of billions of dollars from American drinks company Constellation Brands. One of the reasons for Constellation’s move into cannabis is the potential for drinks infused with cannabis and CBD. The partnership with Canopy Growth is likely to lead to novel products that will become part of Canada’s large licensed cannabis market next year.

GW Pharmaceuticals Plc (NASDAQ: GWPH), a company with a strong history of research in the cannabis sector, has created the first plant-derived cannabinoid medicine to be approved by the FDA, which has just become available by prescription in the United States. This introduction of a federally approved cannabis-derived medicine is an important moment for the industry and may lead to the softening of political and regulatory attitudes that have previously held business back.

Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) is investigating the use of cannabis in a relatively new area – skin care. The company has announced that it will be working with the Technion–Israel Institute of Technology to research the use of cannabinoids in skin care, research with potential to carry cannabis into more parts of the high street and the consciousness of more consumers.

From payment solutions to new products, the cannabis sector’s growth is fueling a rich wave of innovation.

For more information on Net Element, visit Net Element (NASDAQ: NETE)

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Bumper Hemp Crops Promise Profit for Farmers and Cannabis Companies

CannabisNewsWire Editorial Coverage: This year will see the largest U.S. hemp crop since changes to federal law created an avenue for production to start again, turning over decades of fallowed industry.

Thousands of acres of hemp will be harvested across 19 states.
Kentucky is seeing particularly good crops, due to near-perfect growing conditions over the summer.
The main product taken from these crops will be cannabidiol (CBD) oil, used in a growing range of health and wellness products.
Crop production is set to continue increasing in light of high demand and legal changes.

To view an infographic of this editorial, click here.

Sugarmade, Inc. (OTC: SGMD) (SGMD Profile) is profiting from this development by expanding from hydroponics into investment in hemp production, broadening its cannabis-related portfolio. Other companies are expanding internationally. Tilray, Inc. (NASDAQ: TLRY) is now working with affiliates and subsidiaries in Europe, South America and Australasia. Cannabis grower Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has drawn billions of dollars in investment from the beverages industry as big companies look to get into the market. And Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) has established an extensive network of supply agreements across Canada, which will help to raise sales and awareness of cannabis and related products. New uses are also set to increase demand, thanks to research by companies such as Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON).

Farmers Count the Green from Growing Hemp Harvest

As summer turns to fall, a small number of U.S. farmers are bringing in a new harvest — hemp. For some states, this is the first time that the crop has appeared in more than 50 years because hemp had been outlawed under sweeping anti-cannabis legislation. The last few years have seen significant changes, primarily because the nation’s 2014 Farm Bill funding provisions authorized limited hemp cultivation, and several states began supporting the crop. Now hemp is making a comeback.

This promises to be a good year for hemp. Early indications are that farmers will see a robust crop with a high market value. The growth of the market for CBD oil means that there are plenty of outlets not just for hemp fibers but also for the plant’s other derivatives. And these first successful harvests, accompanied by pending legal change on the federal level, are set to establish hemp as an important crop over the next decade.

The 2018 Hemp Harvest

The past year has seen big growth for hemp. In 2017, the acreage of hemp production expanded by 163 percent through agricultural sites in 19 states. Now the largest hemp harvest of the new era is expected. It’s good news for companies invested in hemp, such as Sugarmade, Inc. (OTC: SGMD).

Like several of the companies involved in the hemp industry, Sugarmade was drawn to the sector by an interest in the wider cannabis market. The company’s main business is the supply of hydroponic equipment used for indoor agriculture. The growth of the legal cannabis market has fueled profits for Sugarmade as growers have valued its supplies. Now the company is diversifying its presence in the thriving sector.

When it comes to driving business, hemp is a beast that is very different from recreational marijuana. While both are forms of cannabis, industrial hemp has very low quantities of tetrahydrocannabinol (THC), the ingredient in cannabis that gets users high. In Kentucky, for example, hemp plants must have no more than 0.3 percent THC. Hemp is also grown differently, using large-scale outdoor cultivation rather than the intensive indoor methods used for other forms of cannabis.

Moving into this part of the market involved a different approach by Sugarmade. Instead of simply relying on its presence as a supplier of tools and equipment for profits, the company has committed a million dollars to investment in Hempistry, Inc. Hempistry’s hemp cultivation is based in Kentucky, the state with the third largest acreage of hemp growth, just behind Oregon but far behind Colorado, which is home to nearly as much hemp as the next three states combined.

While the top states have thousands of acres of hemp under cultivation, others are just starting to get involved, thanks to smaller scale projects. Washington State saw its first 175 acres of hemp planted in 2017, while Minnesota went from 51 acres in 2016 to 1,205 acres in 2017.

Kentucky has seen a particularly good year for hemp. Almost perfect growing conditions over the summer and early fall are setting it up for a bumper harvest. Sugarmade executives, including CEO Jimmy Chan, have visited the Hempistry project to inspect it and found that it lived up to the hype. It is seen as ultra-premium-grade hemp, perfect for extracting one of the biggest products to come from hemp — CBD oil.

CBD — Key to the Hemp Market

Hemp isn’t a new crop, even if its appearance in current markets seems like a novelty. As long ago as the Mayflower pilgrimage, hemp fibers were used in North America to produce rope and canvas for sailing ships. Even in the early 20^th century, just before it became illegal, it was mostly grown for these fibers.

Now, that has changed.

Hemp fiber still has value in producing everything from cloth to construction materials. But the real wealth is in CBD oil. This is why Hempistry has built a crop labeled as ultra-premium and why Sugarmade determined to invest one million in the business.

While CBD doesn’t have the psychoactive effects of THC, it’s still an active ingredient in cannabis that produces a chemical response in users. Research into its effects is in its infancy, thanks to so many years without businesses backing. But studies over the past decade have led to its use in a wide range of health and wellness products. Some of the highest-profile research has focused on its potential use in tackling epilepsy, but CBD oil is turning up in a huge range of products that appear to impact everything from pain management to improving mental processes.

The CBD market is growing enormously in the United States and beyond. The large, healthy harvests coming out of Kentucky should find no shortage of demand for the oil extracted from its plants. Sugarmade’s first foray into CBD has all the signs of success.

Where Next for Hemp?

Based on these results, Sugarmade has already begun plans to significantly expand its hemp operations next year. Hempistry has optioned 23,000 acres for potential hemp cultivation, more than is currently growing in the top five states put together.

Statistics taken from the Hemp Business Journal show that the U.S. hemp industry saw at least $820 million in revenues in 2017. Some experts forecast that number to increase to more than a billion dollars in 2018 and continue to grow at a compound rate of 14 percent per year until 2022. This increase is driven in part by growth in demand and in part by changes to the status of the hemp industry.

Central to this is the new version of the Farm Bill currently being considered by the U.S. Senate. The bill includes clauses with cross-party support for hemp cultivation that would expand the potential for farming. Hemp is currently restricted to trial crops and scientific studies, but under the new bill, it could be grown as a regular crop by farmers across the country.

This legal change will let companies such as Sugarmade support the cultivation of large quantities of hemp to meet the huge demand for CBD oil. And if that demand keeps growing, the industry could take off at an exponential rate.

Reaping the Benefits

This growth isn’t just taking place in America. Demand for CBD oil and other cannabis-related products is expanding around the world, as is the industry meeting that demands. Tilray, Inc. (NASDAQ: TLRY) manufactures products used by thousands of patients, researchers and physicians across the globe, and is building that international reach. In addition to affiliates in Australia, Canada, Germany, New Zealand and Portugal, the company recently acquired Alef Biotechnology SpA in Chile.

One of Canada’s largest cannabis companies, Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has drawn jaw-dropping financial backing from beyond the cannabis industry. American beverage company Constellation Brands’ $4 billion investment will allow the two companies to develop CBD-infused drinks, building a leisure market for ingredients derived from hemp. With a corporate giant such as Constellation taking an interest, pressure is likely to grow for further reform in Washington, easing the way for growth in the hemp industry.

Canopy Growth isn’t the only big player in Canada, where the recent legalization of recreational cannabis is set to supercharge the industry. Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) is one of the big players and has already established supply agreements that will let it sell products in provinces across the country. Increasing public awareness of cannabis, driven in part by such supply channels, will also increase awareness of related CBD-based products, with a supplemental boost for hemp.

Meanwhile, researchers continue to find new uses for CBD and other cannabinoids. Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) has recently announced new work with the Technion–Israel Institute of Technology to explore the use of cannabinoids in skin care. Not only are existing markets expanding, but new ones are being created as additional promising uses for cannabis-based products are found.

This year’s bumper hemp crop looks to be just the beginning of a burgeoning industry with an exciting future.

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

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Changing Attitudes in Washington Offer Promise for Hemp and Cannabis Market

CannabisNewsWire Editorial Coverage: Legal changes could soon make transacting business easier for the cannabis industry.

Reports indicate that the president plans to reform cannabis laws, making commerce easier for businesses working in states with legal markets.
Reforming the law could improve the position of companies working with cannabidiol (CBD) as a food additive and industrial hemp.
Hemp and CBD are now large segments of the cannabis sector.
These anticipated legal changes are part of a wider international shift.

One of the companies that may benefit from changes in the United States is Marijuana Company of America, Inc. (OTC: MCOA) (MCOA Profile), which works primarily in cultivating industrial hemp and developing CBD products. Tilray, Inc. (NASDAQ: TLRY), which has affiliates around the world, may use its global experience to adjust to changes in the United States. Research into cannabis by companies such as Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) will become easier, eventually improving product ranges and patient well-being. The legislative shift is also being encouraged by companies such as PotNetwork Holding, Inc. (OTC: POTN) through efforts at public and industry events. And as industry leaders such as Aphria, Inc. (OTC: APHQF) (TSX: APH) swallow up smaller companies, a stronger, consolidated sector is likely to result.

To view an infographic of this editorial, click here.

White House Hints at Cannabis Reform

Spirits have been lifted in the American cannabis industry following a report that the White House is planning to support drug law reform. California Sen. Dana Rohrabacher told Fox Business that insiders around the president have said he intends to push for a reform of cannabis regulation. This would reportedly involve encouraging the federal government to make medical marijuana legal on a national level while leaving the status of recreational cannabis up to individual states.

The reasons behind Rohrabacher’s announcement are clear. As a Republican defending a closely fought seat in a pro-cannabis state, he stands to benefit from convincing his constituents that his party is pro-cannabis. But the stance is also part of a wider trend in politics.

A growing number of politicians from both main parties have shown support for legalization, driven by shifts in public attitudes. Polls this year have indicated that 64 percent of Americans support legalization and 74 percent support legislation that would protect states that legalize cannabis despite the federal government’s opposition. Always happy to ride a high-profile trend, President Donald Trump has previously indicated that he will support a states’ rights agenda on the issue, despite action in the opposite direction by his attorney general.

What will this mean for cannabis companies?

Making Life Easier for Cannabis Companies

Cannabis is already big business in the United States. Nearly two-thirds of states have legalized medical marijuana in some form, and one in five have legalized its recreational use. Clearly, there’s a large legal market to be served. This has led to growth not only for companies catering to those sectors but to those engaging in cannabis in other ways, such as Marijuana Company of America (OTC: MCOA).

MCOA illustrates the variety of ways in which companies are now engaging in the cannabis sector. Rather than producing medical or recreational cannabis, the company has focused on varied uses of industrial hemp, a form of cannabis without the psychoactive qualities. Derivatives of hemp can be used in food, textiles, construction and medicines, making it a versatile and valuable crop.

Within that part of the sector, MCOA has a variety of operations. The company is engaged in two partnerships to improve plant strains and cultivation techniques, and sells a range of products derived from hemp. This range of business opportunities is part of what makes the cannabis sector so profitable, with a value in the billions of dollars in Canada alone.

The potential profits of the sector mean that ambitious companies such as MCOA have been able to raise finance through investment rather than through hard-to-come-by bank loans, which have been in short supply in the United States because of the federal government’s stance toward the plant. Clearing up the contradictions between state and federal laws would make business much easier.

Industrial Hemp

One of the biggest growth areas within the current cannabis market may not necessarily feed into the medical or recreational cannabis markets. That sector is industrial hemp.

Hemp is a form of cannabis that contains only a minimal level of tetrahydrocannabinol (THC), the chemical that gets cannabis consumers high. Before the general prohibition on cannabis cultivation, hemp was largely used in producing rope and textiles. Now this space is seeing a resurgence thanks to changes in cannabis legislation. MCOA is involved in growing hemp through businesses such as its New Brunswick Hemp Project, one of many companies exploring hemp’s potential.

In the United States, hemp is currently grown legally on sites designated as research and test projects. This was made possible following the 2014 Farm Bill, which included provisions for such sites.The potential for that bill to be expanded this year to full agricultural legalization of hemp is expected to drive spectacular success for farmers who choose to cultivate it. Hemp can be grown outdoors in fields and will grow quickly in a wide range of conditions. Some farmers have predicted that they may see revenues of $90,000 per acre for the crop, compared with only $600 for alfalfa, one of the most popular crops in the United States.

The 2014 Farm Bill expired at the end of September this year, and the bill scheduled to replace it has not yet been passed, thanks to battles on a wide range of issues between Republicans and Democrats. Surprisingly, hemp is fairly noncontroversial. The plant has found cross-party support, with backing for legal reform driven by Republican leaders. As a result, provisions in the bill that would allow for more hemp farming will almost certainly be passed when work on the bill is completed after the November mid-terms.

The updated Farm Bill will make it easier for companies such as MCOA to expand their operations and sell their products. And following reports about cannabis law reforms coming out of the White House, the bill looks likely to become a herald of wider potential.

Hemp’s Big New-Profit Area — CBD

One of the most exciting areas for exploration is how hemp can best be turned into profit. CBD is hemp’s primary active ingredient. Recent research has found a range of uses for CBD in health and wellness products. It’s the extraction of CBD that makes hemp so potentially profitable for modern farmers.

CBD is already being used in a wide variety of products. MCOA’s hempSMART line alone includes pain capsules, a topical pain cream, face cream and pet wellness products. Legal changes will make it easier for companies to research and manufacture products such as these, broadening the scope of the CBD market.

Unregulated CBD grants companies more potential to go international, as its sale is less limited than that of medical and recreational cannabis. MCOA is currently preparing to launch hempSMART into Europe and has appointed a new global sales director to oversee this work.

Legal Changes Affect Many Companies

Whether it’s the Farm Bill or President Trump’s promise to accept a revision of federal laws, the possibility of legal changes has the potential to affect a lot of companies working within the cannabis sector. State-level legalization and changes in Canada’s laws this month have allowed companies to emerge working entirely within this sector.

Like MCOA, Tilray, Inc. (NASDAQ: TLRY) is working beyond the boundaries of the United States. The company has affiliates in Australia, Canada, Germany, New Zealand and Portugal, and is now adding Chile to that roster through the acquisition of Alef Biotechnology SpA. Tilray’s products are already used by tens of thousands of patients as well as physicians and researchers around the world. That gives the company existing experience and infrastructure to expand in a reformed American market.

Another company with international reach — Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) — is earning a name for itself not just as a supplier of cannabis products but also as a researcher in the arena. Cronos has recently announced a study into the effectiveness of medical cannabis in tackling sleep disorders. Such research will be both easier and more profitable as more countries legalize cannabis.

A sign of the power of the sector is the growing number of holding companies now built around cannabis. PotNetwork Holding, Inc. (OTC: POTN) is one of those, with subsidiary companies covering cannabis production and related parts of the industry. The company is reaching out to customers through large events such as the 2018 World Vapor Expo, designed to increase the profile of cannabis and remind those in power of the plant’s popularity. Such corporate PR work is increasing the momentum of the movement towards legalization.

The growth of the industry has also led to a series of mergers and acquisitions, as big players consolidate their hold. Aphria, Inc. (OTC: APHQF) (TSX: APH) recently completed acquisitions in Latin America, the Caribbean and Canada, bringing with them supply agreements reaching into Europe and Israel. Liberalization of cannabis laws is becoming a global trend, and as the businesses involved become bigger, so will the push for further reform.

Legal changes appear certain to come to the United States. When they do, there will be plenty of companies making the most of them.

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

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Canada Leads International Cannabis Boom — and It’s Not About Smoking

CannabisNewsWire Editorial Coverage: Legal changes in Canada are creating an ideal base for cannabis companies, which are shifting their focus away from smoking.

As the first G20 nation to make recreational cannabis legal, Canada is creating an opportunity for its cannabis companies to become global leaders.
Analysis shows that the global cannabis market is larger than expected — and set to keep growing.
Many new consumers prefer not to smoke their cannabis, leading to a shift towards cannabis-derived food and drinks.

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) (LXRP Profile) has developed patented technology that helps make cannabis available to nonsmokers; the company’s innovative development methods make cannabis’ active chemicals more palatable and more effective in food and drink. Companies such as Tilray, Inc. (NASDAQ: TLRY) are expanding their production to cater to this growing market, resulting in rising share values. GW Pharmaceuticals Plc (NASDAQ: GWPH) has leveraged its position in the market to raise extra financing through a $345 million public offering. Aurora Cannabis, Inc. (OTC: ACBFF) (TSX: ACB) has been focusing on ensuring access to a broad market, setting up supply agreements across Canada. Meanwhile, other companies are evaluating international growth opportunities, with Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) having established subsidiaries on five continents.

The Canada-led Revolution

This month marks one of the most dramatic changes ever in the cannabis market, a moment set to transform the industry and the way that it’s viewed. As of Oct. 17, consumers across Canada are able to buy cannabis for recreational consumption for the first time. Canada is the first G20 nation to make such a change, and the precedent could be critical. Other countries are watching what happens in Canada, as voters around the world push their governments toward similar legalization; there are already more than 30 countries around the world where cannabis is legal in some form for medical use.

The Canadian example comes just as analysis shows that the cannabis market is larger than previously realized and set for continued growth. This puts Canadian companies in a powerful position, able to make the most of being based in a country that’s friendly to the cannabis industry. By using the freedom and opportunities this presents, these companies could easily become global leaders in a fast-growing sector.

Canada Legalizes Cannabis

For Canadian companies working in the cannabis sector, such as Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP), huge changes are coming.

After much political maneuvering, recreational cannabis is now legal in Canada in keeping with a promise made by Justin Trudeau when he was elected prime minister in 2015. The wait has been frustrating for some, but it has given companies such as Lexaria time to establish their leadership position.

Canada already has a thriving medical cannabis industry, in which tight regulation provides control over the use of drugs. The new regulations extend this careful approach to the recreational market. Using a model similar to liquor licensing, retailers will have to be licensed to sell cannabis and follow clear rules. Those who try to sell outside the system will be quickly shut down.

In setting up its system, the Canadian government and provincial authorities have learned from the example of legalization in certain U.S. states. They worked with cannabis companies to ensure that the licensing system for both production and retail was ready for the Oct. 17 deadline While there will undoubtedly be hitches, including the likelihood that demand will initially outstrip supply, this appears likely to be a smooth launch.

Companies have also been making adjustments. For example, Lexaria recently announced a new subsidiary, Lexaria CanPharm Corp., which is focused purely on applying the company’s technology to the cannabis industry. Because Lexaria sells technology, if is already earning revenue in several locations both within and outside of Canada without touching the plant. Lexaria has a Canadian base but international reach.

Cannabis Market Larger Than Expected

Judging the potential size of the legal cannabis market is a tricky business. The drug’s widespread illegality around the world means that data is almost entirely drawn from surveys, in which respondents may be wary of admitting their consumption. Legalization will likely lead to changes in consumption patterns; easier access will almost certainly increase both medical and recreational demand.

Despite the limitations on judging the market, observers have been keen to estimate what the market could represent. A survey from before legalization indicated that 4.2 million Canadians consume cannabis on a regular or occasional basis. Based on this data, companies and commentators have predicted an industry worth billions of dollars, which could quickly surpass the whiskey industry.

But leading cannabis commentators are now suggesting that previous estimates may have undervalued cannabis’ potential. The only specialist cannabis analyst for a major Wall Street trading firm believes that the impact of legalizing a previously illegal market has been underestimated. Legalization could lead not just to large-scale sales of cannabis but also to its use as an ingredient in other products. Because Fortune 500-type companies are now interested in the space, the market could eventually be worth hundreds of billions of dollars.

If that analysis is accurate, then many cannabis companies are being massively undervalued. That’s good news for the future prospects of businesses such as Lexaria.

Consuming Cannabis without Smoking

This growth is likely to be coupled with changes in the way cannabis is consumed — changes of huge relevance for Lexaria.

A recent survey of U.S. consumers showed that many would like to try cannabis if it became legal. They also said that they would be more likely to do so if they could consume the plant through food. Putting cannabis into drinks and snack foods will make it easier for people to enjoy in a social setting with friends, in a similar way that they currently consume alcohol. That would make it a more popular and accepted part of everyday life.

Lexaria’s patented technology could be invaluable for companies catering to this desire. Its lipophilic enhancement technology is designed to improve the biological conductivity of active compounds, including those found in cannabis. It increases their potential for absorption by the body, meaning that consumers get better value for their cannabis. It also improves the taste, which will be important in making cannabis food and drinks popular. Recent tests have shown good results for applying this technique to active ingredients derived from cannabis.

Lexaria plans on licensing this technology to third-party partners and was recently awarded its 9th and 10th granted patents applicable for cannabis beverages. With cannabis-infused food and drink set to hit the Canadian market next year, and with large companies eyeing its potential, plenty of companies are sure to be interested in such technology that takes advantage of Lexaria’s leadership position.

Growing with the Market

The legalization of recreational cannabis is good for companies already working in the Canadian medical market such as Tilray, Inc. (NASDAQ: TLRY). A company with a strong pedigree in research and development, Tilray is expanding its sales potential in preparation for the recreational market. Its High Park Farms subsidiary recently received a license to sell cannabis in Canada and has already carried out several harvests to get stocks ready for sale. Such moves have led to positive views of the company’s future, with Wall Street commentators predicting a huge rise in the value of its shares over the next year.

The expectation of huge growth in the cannabis industry is helping companies raise extra finance to tap into that market. GW Pharmaceuticals Plc (NASDAQ: GWPH) has just raised over $345 million through a public offering. A medical cannabis company, GW isn’t currently involved in the recreational sector but is still profiting from the growth it brings.

One of the big players in Canada’s medical cannabis market, Aurora Cannabis, Inc. (OTCQX: ACBFF) (TSX: ACB), has been laying the groundwork to make the most of recreational sales. The company has supply agreements with provinces across Canada, giving it the opportunity to reach a broad customer base. As well as providing quick profits, this will help to establish brand recognition early on for greater influence as the market grows.

While attention is currently focused on Canada, that is just one part of the cannabis market. As with other industries, global reach will eventually decide the biggest players, and Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) is already working on such expansion. With subsidiaries in North and South America, Europe, Australia and Israel, the company is tapping into growing cannabis markets around the world. Lessons from Canada will help in developing these other markets and in positioning Cronos to make the most of them.

The legalization of cannabis in Canada is a critical part in an international puzzle, one whose pieces include unexpected growth, global connections and transformations in consumer habits. Put together, these pieces offer the hope of a profitable future for cannabis companies.

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

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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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CBD Supplements Primed to Explode Ahead of Biopharma as Farm Bill Legalizes Hemp

CannabisNewsWire Editorial Coverage: With Canada legalizing cannabis nationwide in October and the 2018 U.S. Farm Bill completely removing hemp from the DEA’s controlled substances list, the stage has been set for an explosion of products ranging from functional foods and supplements to CBD-based (cannabidiol) biopharma indications.

U.S. farm bill legalizing hemp could make CBD an open-pit gold mine.
List of demonstrable CBD health benefits growing daily.
CBD growth may outpace entire cannabis market combined.

Even before the landmark inclusion of the Hemp Farming Act of 2018 in this year’s Farm Bill, plant-based nutrition experts at leading omni-direct lifestyle company Youngevity International, Inc. (NASDAQ: YGYI) (YGYI Profile) had begun marching the team towards the development of a full line of proprietary hemp-derived CBD oil products. And while the identified health benefits of CBD ranging from reducing inflammation to managing pain and anxiety haven’t entirely been proven yet, one need look no further for foundational evidence of such benefits than the success of GW Pharmaceuticals Plc’s (NASDAQ: GWPH) FDA-approved oral solution EPIDIOLEX, which is used to treat severe seizures associated with extreme forms of epilepsy. Pharma-grade medical cannabis producer Aphria, Inc. (OTC: APHQF) (TSX: APH) already has a wide selection of carefully engineered medical cannabis and CBD oil products made from 100 percent greenhouse grown strains. Cara Therapeutics, Inc. (NASDAQ: CARA) is another company that stands to benefit from easing regulations in North America. And as a principal investment firm dedicated to cultivating medical marijuana companies, Cronos Group, Inc. (NASDAQ: CRON) surely understands the potential of the space.

To view an infographic of this editorial, click here.

Cannabis Market Booming Amid Deregulation

Canada moving to fully legalize recreational marijuana across the country is a watershed event for the cannabis industry. This event will help to normalize the presence of cannabis-based medicines in the broader market, paving the way for even more widespread research into the non-psychoactive cannabinoid CBD. With more than 37 million people in North America already consuming cannabis in one form or another, even the lofty projections by Amadee & Company of a market worth over $95 billion by 2026 may be entirely possible.

After more than eight decades of prohibition, cannabis is rapidly heading towards decriminalization across the global marketplace. The latest projections from established cannabis sector analysts at Arcview Market Research and BDS Analytics indicate that the North American cannabis market will go from just $9.2 billion last year to $47.3 billion within a decade (17.79 percent CAGR), even as the global market surpasses a whopping $57 billion.

The hemp-CBD segment is set to grow at an even faster pace according to Brightfield Group, hitting upwards of $22 billion by 2022, outpacing the rest of the cannabis market combined. Hemp Business Journal estimates for the underlying hemp market, which grew 16 percent last year in the United States alone to around $820 million, are similarly encouraging, projecting the market to grow around 700 percent by 2020.

And when it comes to regulating the human body’s complex endocannabinoid receptor systems, the upper limits of the pharmaceutical value of CBD — and other phytocannabinoids such as THC — may have not yet been fully validated by clinical studies. Such studies have been and are being done.

Consumers definitely seem to have got the message about CBD and are already enjoying access to this organic compound in an increasing variety of formats. According to Cannabis Trades Association UK official data, cannabis oil users across the UK doubled last year. Given stats like that, it is little wonder that the latest numbers out of Technavio on the global CBD space project a 39.19 percent CAGR through 2021.

Established Supplement Purveyor with Scale, Presence and Reach

To many investors, the burgeoning CBD market is a natural play for a company such as Youngevity International, Inc. (NASDAQ: YGYI), a multivertical lifestyle brand that provides a wide variety of consumer goods to people all over the world via direct selling, e-commerce and social selling. In many circles, the name Youngevity is synonymous with plant-based nutrition, and as Youngevity CEO Steve Wallach recently put it during the launch of YGYI’s new proprietary HempFX^™ line of hemp-derived CBD oil products, “CBD oil perfectly complements” Youngevity’s product development philosophy.

Already known to consumers around the globe for its broad array of nutritional and healthy lifestyle products formulated using ingredients of the highest quality in state-of-the-art laboratories, Youngevity has garnered increasing prominence with the success of its wholly owned subsidiary CLR Roasters’ various gourmet boutique coffee blends. CLR Roasters is produced by a vertically integrated “farm-to-cup” pipeline stretching from the company’s fully licensed fields in Nicaragua, through a state-of-the-art roasting facility in Miami and ending up in consumer’s coffee cups all over the world. YGYI completes the last mile via direct selling, as well as extensive distribution in the cruise line industry and through a variety of private labels that the company produces for major national chains.

As Goes Coffee, So Goes Cannabis

Just to showcase the kind of scale and sophistication of the company’s closed-loop approach to delivering premium organic coffees, it is worth noting how the company recently secured a five-year contract to sell and process more than 41 million pounds per year. This was a huge deal for the full-sized coffee roaster, executed with a purchaser that has more than seven decades in the business and is a major coffee importer and exporter for some of the biggest brands in the industry today.

It is this same kind of full-spectrum approach to cultivation, production and distribution (emphasizing tight quality control as the main objective) that the company is now bringing to the hemp-based CBD business with its “field-to-finish” strategy. The HempFX line of three initial products was described as “just the beginning” when it comes to Youngevity’s move into CBD, during a recent interview with Wallach and Youngevity president and CFO Dave Briskie.

HempFX products currently include a topical muscle restoration and relief product packed with antioxidant rich botanicals called Soothe^™, a mood and cognitive performance enhancement product with St. John’s Wort called Uplift™, and a sleep aid called Relax^™ that contains melatonin and other relaxing herbs including chamomile and valerian root. Youngevity anticipates emergent revenue opportunities across the vertical as it implements a model similar to what the company has done in coffee. Wallach was keen to point out during the HempFX launch that this process would offer “tremendous advantage” to the company’s many distributors around the world.

Youngevity’s management anticipates that hemp-based CBD will become one of the fastest growing and largest supplemental ingredients moving forward, and the company is not alone in recognizing just how far the CBD market has yet to go.

CBD Market Solid Move for Future Success

GW Pharmaceuticals Plc (NASDAQ: GWPH) has been posting solid price performance since the company’s announcement in late June that the FDA approved its CBD-based oral indication Epidiolex for two forms of severe childhood epilepsy. According to the latest quarterly report, GWPH and its U.S. subsidiary Greenwich Biosciences are primed for commercial success, with a fully recruited sales organization and active engagement via clinical presentations to plans which cover more than 80 percent of the U.S. market.

Aphria, Inc. (OTC: APHQF) (TSX: APH) is gearing up for Canadian legalization big time, signing supply agreements with official distributors throughout all ten provinces and one territory this month to provide high-quality, branded cannabis for the adult-use market. Aphria also recently announced a key MOU with Canadian biotech Rapid Dose Therapeutics, the developer of the oral, fast-dissolving drug delivery system QuickStrip.

Cara Therapeutics, Inc. (NASDAQ: CARA) is a clinical-stage biotechnology company focused on developing new chemical entities designed to fundamentally change the way acute pain, chronic pain and pruritus (severe itching) are managed. Cara does this by developing new products that selectively target the body’s peripheral kappa opioid receptors. In the cannabis space, Cara has a cannabinoid receptor agonist, CR701, in preclinical development.

Cronos Group (NASDAQ: CRON) recently announced commencement of a joint medical cannabis study alongside Aleafia Health Inc., which will utilize Aleafia’s Canabo Medical Clinic network to investigate insomnia and daytime sleepiness. The primary goal of the study is to help develop nonaddicting and natural sleep aids that many consumers have been longing for, especially given more recently identified risks associated with prescription sleeping aids, such as worsening mental health and an increased prevalence of dementia. CBD and THC may become powerful tools in the fight against insomnia.

The End of Prohibition, Unprecedented Market Dynamics

It seems that consumers may have put legs under the market as the historic prohibition of the humble cannabis plant nears an end. A plant that turns out to be packed with phytocannabinoids and that may help naturally regulate a vast cell receptor network throughout numerous tissue systems in the human body seems poised to fuel an industry with untold possibilities.

For more information on Marijuana Company of America, visit Youngevity International, Inc. (NASDAQ: YGYI)

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