Tag: HEXO

CBD Industry Soars in Wake of Farm Bill; Massive Growth Projected to Continue

CannabisNewsWire Editorial Coverage: Following the passing of the 2018 Farm Bill, CBD sales have continued their massive growth in the United States and beyond.

  • Cannabidiol (CBD), a chemical found in cannabis, has seen a huge growth in sales over the past few years.
  • CBD can be derived from hemp, and the passing of a new farm bill in the States makes this form of cultivation legal at a federal level.
  • This forms part of wider growth in the cannabis market, as companies expand their operations in North America and even beyond.

Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) (WLDFF Profile) is among the companies benefiting from this market, with an increase of more than 300 percent in online sales for its CBD products last year. Some companies are specializing in particular niches, such as The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD) with its focus on sustainable organic plants. Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) is making moves into Europe, with cannabis oil sales in Germany and investment in a Portuguese grower. Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB) is launching new products and opening its own shops across the United States. And HEXO Corp. (NYSE: HEXO) (TSX: HEXO), which recently expanded from medical cannabis into the recreational space, has seen gross revenue increase more than 1,000 percent as part of this rising tide.

To view an infographic of this editorial, click here.

CBD Drives Growth for Hemp

Hemp, a plant that has long been out of the public eye, is returning to the spotlight in a big way. A non-intoxicating form of cannabis, hemp was primarily used for centuries as a natural source of fibers, which were used in cloth, rope and even building materials. Many ships in the great age of sailing relied on hemp for their riggings.

But in the sweeping anti-drug crusades of the 20th century, hemp became caught up in attacks on cannabis. Campaigners who were determined to save consumers from their own pleasures had cannabis outlawed at a time when there was little effective way of distinguishing between hemp and other forms of cannabis. No longer needed for cloth and rigging, hemp was made illegal.

Now all that has changed — nowhere more dramatically than in the United States of America.

The Farm Bill

Hemp is making a comeback thanks to the growing popularity of cannabidiol (CBD), an active ingredient found in many forms of cannabis. It’s an ingredient that companies such as Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF), a creator of plant-based health and wellness products, have been making extensive use of in recent years. Combined with other naturally occurring plant compounds, full-spectrum CBD is used in a range of Wildflower products, including capsules, topicals, soaps, tinctures and vaporizers.

Until recently, the production of CBD in the United States faced serious restrictions and uncertainties. Many states had legalized the production of cannabis in some form, either for medical or for recreational use. In addition, there were licensed trials of the cultivation of hemp, which can be rich in CBD. But all of these plants were illegal at a federal level, meaning that even with state-level approval, cultivators faced financial limitations and the threat of government action.

All that changed in December with the passage of the 2018 Farm Bill. One of a regular series of bills governing the U.S. agricultural sector, this bill removes hemp from the list of controlled substances, making it unambiguously legal for farmers to grow hemp. This changes the landscape for CBD products in the States. Companies such as Wildflower, which has already got its products into many outlets in the health and wellness sector, will be able to expand their reach even further.

States have the right to set their own rules around restricted substances, and some states have taken an unsympathetic attitude to CBD. The Farm Bill doesn’t force states to change this attitude, but there are already signs that public opinion on all levels are changing. The regulations in many states assume adherence to the federal guidelines, and some states, such as Alabama, have already softened their stance since the Farm Bill became law.

Under the Farm Bill, hemp production will be tightly regulated. Most states already have existing regulations in place, and the U.S. Department of Agriculture will be developing its own regulations as well. But for an established company such as Wildflower, which already works in California, Washington and New York, this shouldn’t be a problem. Cannabis companies are accustomed to working in a tightly controlled environment and meeting the legal standards set by state legislators, as well as the product standards required by retail outlets. In that context, working within new federal regulations shouldn’t present a significant challenge, while the existence of consistent national standards will create opportunities for growth.

CBD Demand Grows

The Farm Bill has been driven in large part by the growing demand for CBD. An obscure and seldom discussed chemical a decade ago, CBD has emerged as an important consumer product. The gradual legalization of cannabis and research into its medical effects drew attention to the fact that those benefits were not all related to THC, the psychoactive chemical that gets cannabis users high. Identified as a chemical with great potential for health and wellness, CBD has started to be marketed in its own right and is used in products such as the Wildflower Wellness line.

Public interest in CBD has grown seemingly from nowhere. Tapping into interest in both cannabis and natural remedies, and offering treatments that may succeed where others have failed, CBD sales have soared. Hemp-derived CBD alone was a $390 million market in 2018 and is expected to reach $1.3 billion by 2022. And that doesn’t even include all the CBD products derived from other forms of cannabis.

The results for producers have been staggering. Wildflower saw its online sales grow by more than 300 percent in just nine months in 2018. In response, the company opened its first New York retail store, a sure sign of a product’s popularity in an age when so many companies are shedding their brick-and-mortar presence.

Looked at globally, CBD is in even better health. The Brightfield Group has estimated that CBD’s value will reach $5.7 billion this year and $22 billion by 2022. While research on the topic is still in its infancy, there is growing evidence that CBD could be used to treat a number of ailments, including certain extreme forms of childhood epilepsy. Even the United Kingdom, a country whose government remains staunchly opposed to the legalization of cannabis, has allowed the use of a CBD drug for this purpose.

Companies producing and selling CBD products are springing up across North America, Europe and beyond. Demand is growing, especially among millennials. That’s bolstering the impressive sales of companies such as Wildflower and putting pressure on politicians to further liberalize the laws around hemp.

Making the Most of a New Market

A lot of companies are now making the most of the growing popularity of cannabis, CBD and hemp.

Given the crossover between liberal attitudes on drugs and an interest in protecting the environment, it’s hardly surprising that specialist companies have arisen that grow organic cannabis. One of these is The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD), which announced last year that it had signed a definitive agreement to acquire 100 percent of the issued and outstanding shares of privately held HemPoland in an immediate accretive cash-and-share transaction. The move gives Green Organic Dutchman access to HemPoland’s vast distribution network, premium Cannabigold brand, and state-of-the-art hemp oil extraction technologies, as well as providing a strategic pathway into the European market for TGOD’s medical and recreational products and licensing deals.

Canada is at the forefront of cannabis legalization, as one of the early adopters of medical cannabis and the first G8 country to legalize its recreational use. As a result, the country has developed several large cannabis companies, including Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB). Aurora has an eye on the global market for cannabis and CBD, recently agreeing to acquire a 51 percent interest in a Portuguese cannabis company, as well starting sales of cannabis oil in German pharmacies.

Like Green Organic Dutchman, Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB) is leaning into the hippy image of cannabis through a brand that places an emphasis on health, wellness and happiness. The company is doing well with the continuing CBD craze and has recently announced the opening of CBD shops in malls in Indiana and Tennessee. The company has also formed an agreement with another company to work on CBD-infused personal care products, as CBD product ranges diversify.

A leading cannabis producer, HEXO Corp. (NYSE: HEXO) (TSX: HEXO) has expanded its interests to include the recreational as well as the medical market. Focusing on cannabis’s place in the wider market, HEXO was the first cannabis producer to join Food & Consumer Products of Canada, a group representing the Canadian food, beverage and consumer products industry. This comes as the company announced a 1,269 percent increase in gross revenue compared with the same quarter a year before, growth exceeding even the impressive performance of the wider cannabis market.

The changing legal status of CBD and the popularity of its products is just one part of a wider picture of cannabis growth, a picture that appears to be bright and promising for companies establishing a stronghold in the industry.

For more information on Wildflower Brands, visit Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF)

About CannabisNewsWire

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

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

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

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

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

Hemp Industry Sees Profitable Harvest as Farm Bill Approaches Finale

CannabisNewsWire Editorial Coverage: With the end in sight for the 2018 U.S. Farm Bill, which contains provisions likely to grant hemp full agricultural legalization, and revenues from existing hemp products rising, hemp farmers are seeing reasons for excitement this fall.

  • The Farm Bill is set to finally pass through Congress in the near future.
  • Predicted hemp revenues for the next few years are soaring.
  • Hemp is doing particularly well in states with supportive politicians, such as Kentucky.

Sugarmade, Inc. (OTC: SGMD) (SGMD Profile) has made the most of this opportunity through investment in Hempistry, a hemp cultivator with big plans for expansion. The popularity of cannabidiol (CBD) products means that hemp may soon surpass the value of other cannabis products, which is providing strong profits for companies such as Tilray, Inc. (NASDAQ: TLRY). This popularity will likely to lead to growth in the food and beverage industry, one reason why Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has received substantial investment from that sector. HEXO Corp. (OTC: HYYDF) (TSX: HEXO) plans to increase its 310,000 square feet of cannabis cultivation space to almost 1 million square feet by the end of the year. Meanwhile, Aphria (NYSE: APHA) (TSX: APHA) is developing new products to tap into Canada’s lucrative market.

To view an infographic of this editorial, click here.

Hemp Rides High on Wave of Change

Four years ago, it would have been virtually impossible to talk about a hemp industry in the United States. As a variety of the cannabis plant, hemp had been made illegal under legislation decades ago despite not containing significant quantities of the active drug compound that gets marijuana users high from other distinct forms of cannabis. State level reforms had done nothing to protect hemp on a federal level, and the plant was struggling to make its mark.

All that changed with the 2014 Farm Bill, which allowed for the cultivation of hemp at trial and research sites. Together with the emergence of laws in more cannabis-friendly states, this has allowed the industry to take off in a big way. Hemp is being put forward as a potential cash crop to be used in producing fibers, medicines and health foods. Farmers are starting to see big profits from hemp crops. And with fresh legislation on the verge of passing in Washington, the industry appears set for a surge in growth.

Fighting over the Farm Bill

For companies invested in hemp, such as Sugarmade, Inc. (OTC: SGMD), one piece of legislation has dominated the political landscape over the past year — the 2018 Farm Bill.

Farm bills are pieces of legislation passed by Congress every few years as the previous iterations expire. They set out government policies on issues of agriculture and food supply. As complicated pieces of law covering multiple topics, these bills are much haggled over by both houses, and the 2018 bill has been no exception. Divisions over food stamp rules and immigration policy has held up its passage for months.

This year’s farm bill has Sugarmade’s attention because of a section that will remove quality hemp production from drug enforcement restrictions nationwide. Backed by Senate Majority Leader Mitch McConnell, this has been one of the less controversial parts of the bill despite hemp’s illicit history. The possibility of offering struggling farmers a valuable cash crop is one that both parties can get behind.

Unfortunately, this important change for hemp was left in limbo thanks to the other battles over the bill. But now discussions in committee are finally moving towards a finished bill that unifies the House and Senate versions, as the lame duck Republican house majority tries to pass a law it can stomach before control of a dominant voting bloc passes to the Democrats.

Bottom line: the legalization of hemp cultivation could be just days away.

Hemp Heads into the Mainstream

This political change has been facilitated by shifting public attitudes towards hemp. The plant is increasingly popular in food and body care products and has been singled out as one of the top trends for next year by Whole Food Market. That’s good news for Sugarmade, which recently launched its own industrial hemp initiative, as it means there’s not just a consumer market for hemp-derived products but also the political will to make production easier.

These shifts in attitudes are reflected in the varying fortunes of states as well, with some receiving far stronger support for their hemp industry than others. For example, Kentucky’s hemp industry is bolstered by advocacy from the state’s politicians. Congressman James Comer has been outspoken in supporting the state’s industry and in pushing to get the Farm Bill approved.

Sugarmade is among the companies benefiting from Kentucky’s positive attitude towards hemp. The business has invested $1 million in Kentucky hemp company Hempistry to support its high-grade hemp operation for the U.S. market. Harvest of this year’s crop has recently started, following a test harvest of samples by the Kentucky Department of Agriculture (KDA), and the company is inviting interested parties to place bids on the crop. With demand for hemp rising, Hempistry’s legally grown, CBD-rich crop is likely to be in high demand.

Rising Hemp Revenues

One of the reasons behind Sugarmade’s investment in Hempistry is the dramatic rise in revenues from hemp crops. A few years ago, no one could have predicted the popularity hemp would achieve by 2018. The crop was mostly a side note, a reminder of the days when its fibers were used to make ropes and sales. When interest in CBD started to expand, producers realized that it could be extracted from industrial hemp. By turning this interest into a separate industry, businesses could sell CBD without becoming entangled in a mass of legal and social uncertainties.

Companies that have made strong investments in hemp cultivation, such as Sugarmade, will gain considerably from hemp’s ascendancy, to the benefit of managers and common share investors. Jimmy Chan, CEO of Sugarmade, commented, “Demand for industrial hemp and products derived from hemp is soaring with no let up in sight. We expect our direct investment into Hempistry to be accretive to common shareholders, and our supply agreement to be lucrative. All of us at Sugarmade see a tremendous opportunity to become a supplier to this fast-growing sector.”

Expanding the Hemp Harvest

With the hemp market growing so fast and the Farm Bill promising to make hemp farming easier, many companies are looking to expand their operations. Having just harvested 100 acres of CBD-rich hemp, Hempistry is focusing on achieving a 10-fold increase in its acreage next year, which would make it one of the largest hemp cultivators in North America.

This expansion is happening alongside that of companies in the related cannabis sector. In Canada, recreational legalization has been big news for companies such as Tilray, Inc. (NASDAQ: TLRY), one of the largest cultivation companies in the country. A leader in research, production and distribution, Tilray has seen staggering financial growth over the past year, with an 85 percent rise in revenue during the third quarter and a 78.9 percent rise for the year to date. Legal and social changes have created the space for a substantial new industry to flourish across North America and beyond, bringing in big bucks for the companies that pioneered the sector.

Growth into the beverage and whole food markets is a likely next step for many hemp and cannabis companies, and big players on the inside of those industries have started to take note. Constellation Brands, a leading American beverage manufacturer, has invested billions of dollars in Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), one of the largest cannabis growers in Canada. Canopy Growth is relatively small fry compared to the power of Constellation Brands, but the funds such a corporate giant can spare make a big difference in an emerging industry. The result is likely to be the development and marketing of CBD-infused foods and drinks, pushing the industry into places it hasn’t previously reached.

HEXO Corp. (OTC: HYYDF) (TSX: HEXO) produces cannabis through its Hydropothecary brand and recently announced plans to develop nonalcoholic, cannabis-infused beverages with Molson Coors Canada. This joint venture with one of the world’s biggest beer makers is a significant move to position HEXO in the burgeoning cannabis-infused drinks market. The company also announced that it has closed on the acquisition of its first major facility outside of Quebec.

Aphria (NYSE: APHA) (TSX: APHA) has also seen rising revenues and profits since 2016, thanks to the growth of this innovation-led market. It recently announced a collaboration with Perennial, Inc., to develop products for the Canadian market, a critical region for any company looking to expand beyond the United States.

With hemp revenues on the rise and politicians about to ease the way for hemp farmers, this is a sector that’s likely to keep growing in strength for years to come.

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

About CannabisNewsWire

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

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

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

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CannabisNewsWire (CNW)
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www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

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

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

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

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

Booming Cannabis Consumables Space Continues to see Product Innovations

CannabisNewsWire Editorial Coverage: The North American Marijuana Index of leading cannabis stocks continues to hold onto the 250 range that it meteorically climbed into at the start of the year.

  • Growing acceptance of cannabis is setting the stage for a consumable cannabis boom.
  • Major companies have begun to throw their hats into the ring.
  • North America is steadily headed towards broad legalization.

Canada is legalizing cannabis across the board, Mexico is fast-tracking legalization, and industrial hemp appears to be headed for legalization in the United States thanks to landslide approval in the Senate (86 to 11) of its version of the new hemp-friendly Farm Bill. Prospects of a shift in the reluctant attitude of the House as Democrats prepare to take majority there have also had a positive impact. The global cannabis market is on track to hit $146.4 billion by the end of 2025, and the industry hasn’t even seen the first real breakout commercial product in the fastest-growing CBD (cannabidiol) and beverages/edibles markets. Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) (LXRP Profile) is a contender for that recognition with bio-absorption-enhancing technology and a growing line of hemp oil CBD products. GW Pharmaceuticals Plc (NASDAQ: GWPH) continues to be the leading name in cannabinoid prescription medicines with its FDA-approved, oral CBD anti-seizure solution, Epidiolex. WeedMD Inc. (OTCQX: WDDMF) (TSX.V: WMD) ranks as one of the top licensed Canadian producers, with a multichanneled distribution strategy and 70,000 square feet of production space already online. HEXO Corp. (OTC: HYYDF) (TSX: HEXO) is another Canadian producer with a track record for low-cost production that currently has around 310,000 square feet of space with plans to tack on a whopping 1 million square feet by the end of the year. Los Angeles-based MedMen Enterprises, Inc. (OTCQX: MMNFF) (CSE: MMEN) is a rapidly expanding U.S. cannabis company with 19 licensed facilities in four key states representing both cultivation and dispensaries.

To view an infographic of this editorial, click here.

Cannabis-Infused Consumables Primed to Explode

Cannabis-infused beverages saw 88 percent growth in sales from 2016 to 2017, according to analyst Flowhub, and that benchmark is likely to be met or surpassed this year. CBD and the widely known psychoactive cannabinoid THC (tetrahydrocannabinol) are finding their way into alcoholic beverages as decades-old cannabis prohibition slowly retreats ahead of growing consumer confidence about the safety of medical cannabis and recreational marijuana use.

With huge new markets opening up across North America, the potential for cultivators appears to be almost unlimited. Even in places where recreational-use legalization may be a long shot, typically some form of medical access already exists. With baseline metrics such as these, it is little wonder that the North American cannabis market alone was recently projected to hit $41 billion this year, before climbing to $95 billion in 2026.

Bioavailability Tech Could Be Game-Changer

Because of the way the body metabolizes ingested cannabinoids, edibles traditionally are understood to act slowly, taking one to two hours to kick in. Comparatively poorer absorption by the gastrointestinal tract prompts many consumers to pursue more dangerous methods of consumption, such as smoking, in order to achieve the desired effectiveness more rapidly. Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) has developed a proprietary lipophilic enhancement technology to bypass this problem, achieving bio-absorption rate increases 10 times greater than other products while slashing the effect onset time from hours to under 20 minutes.

Lexaria’s proprietary technology is patent protected for CBD and other nonpsychoactive cannabinoids and has patents pending for THC, other psychoactive cannabinoids, NSAIDs (non-steroidal anti-inflammatory drugs), nicotine and other molecules. Essentially a B2B, Lexaria is in an enviable position amid the rise of cannabis edibles ranging from recreational drinks to CBD-based nutraceuticals, with a key piece of technology that the company can out-license to third-party partners. Moreover, the company’s proprietary technology may mask undesirable tastes, eliminating the need for sugar-filled edibles, and may actually allow cannabinoids to bypass being broken down by the liver if desired.

Established Presence, Superior Tech—A One-Two Knockout Punch

Lexaria also already has a considerable, established presence in the edibles space, with brands such as the company’s ViPova line of CBD-infused coffee, tea and hot chocolate. The company has seen success since 2014 with beverages such as its original Yunnan Black Tea, which contains 50 mg of Multi Scandinavian full-spectrum hemp oil per serving. These beverages lack the typical oily residue found in most CBD-infused drinks and have virtually no cannabis odor or flavor.

At the low cost of only 2 cents per milligram ($1.25 per serving), the company’s delicious ViPova teas, which come in a variety of flavors including Earl Grey and Herbal Masala Chai, are a testament to Lexaria’s ability to deliver high-value beverages to the cannabis market. The increased bioavailability of the CBD in these beverages, thanks to the company’s proprietary technology, combined with the low per-unit price, represents an incredible value that consumers are noticing. Also, Lexaria’s product mix currently includes the company’s branded Lexaria Energy Foods as well as TurboCBD supplements.

Bottles and Cans Giving Way to Packets of Powder

Capitalizing on its bioavailability-enhancing technology and established presence as a CBD-infused product developer, Lexaria has now moved to tackle the U.S. soft drinks market, which is expected to be worth $388 billion-plus by 2025, introducing a discreet, single-serving foil packet cannabinoid drink powder named ChrgD+. Lexaria is confident that a small two-gram foil packet that can be discreetly carried in a shirt pocket or purse for incorporation into a beverage will be a big hit. After all, consumers can’t show up at their kid’s soccer game with a can of soda whose branding announces “cannabis” to everyone in view.

The multi-spectrum cannabinoid portable drink powder ChrgD+ can turn any drink into a CBD-infused beverage, including wine or cocktails. While currently only available in a CBD-from-hemp version, Lexaria is in talks with cannabis companies to realize its objective of deploying a THC version of the powder.

Powdered single-serving packets of consumers’ favorite drinks have exploded in popularity during recent years as an increasing number of beverage makers are opting to give consumers the convenience of mixing their own drinks from flavor packets containing the rich, distinct flavor profiles of brands they have come to know and love. The same thing is now happening in CBD drinks, and Lexaria may possess some distinct advantages over the competition.

All Kinds of Consumables

CBD and THC appear to be rapidly making their way into all kinds of consumables. The industry’s reputation continues to be improved in the eyes of consumers due to advancing breakthroughs in cannabinoid medicines used to treat everything from epileptic seizures to inflammatory bowel disease.

GW Pharmaceuticals Plc (NASDAQ: GWPH) broke the blockade in cannabinoid medicines with the highly purified, plant-derived CBD indication Epidiolex, which is available in the United States as of November 2018 for the treatment of seizures associated with severe forms of epilepsy. This one company has arguably done more than any other to improve public perception of the cannabis sector, specifically medical cannabis. The company is not resting on its laurels either, following up the availability of Epidiolex via physician prescription with a patient support program designed to help Epidiolex users obtain access to therapy.

WeedMD Inc. (OTCQX: WDDMF) (TSX.V: WMD) moved recently to exploit its position as a leading federally licensed Canadian producer and distributor by executing a pivotal, exclusive development agreement with Montreal-based pharmaceuticals, natural health products and cosmetics developer Smart Medicines GMP. The partnership maps out a comprehensive five-year development plan, including ramping up the operational capabilities of Smart Medicines’ 10,000-square-foot, state-of-the-art Montreal laboratory. WeedMD also recently signed a multiyear retail sales distribution agreement with Lifford Cannabis Solutions, which specializes in helping cannabis companies advance their products through control boards to retail.

HEXO Corp. (OTC: HYYDF) (TSX: HEXO), which produces cannabis through its Hydropothecary brand, issued a major announcement in August that it will develop nonalcoholic, cannabis-infused beverages with Molson Coors Canada. This joint venture with one of the world’s biggest beer makers is a serious play by HEXO to establish itself in the burgeoning cannabis-infused drinks market. This announcement was followed up by word that HEXO has closed on the acquisition of its first major facility outside of Quebec, taking a big step toward realizing the company’s hub-and-spoke business expansion strategy.

MedMen Enterprises, Inc. (OTCQX: MMNFF) (CSE: MMEN) recently signed a definitive $33 million agreement to acquire control of Level Up (Kannaboost Technology and CSI Solutions), which has a 25,000-square-foot production facility as well as retail locations in Scottsdale and Tempe, Ariz. Furthermore, MedMen will obtain a 40 percent stake in the top-selling K.I.N.D. Concentrates brand via the acquisition. MedMen also recently acquired the retail operations and license for a key location in Santa Ana, California, from Captor Capital Corp. in an all-stock transaction, adding to the company’s growing strategic footprint in one of the most affluent areas of Southern California.

With several of the world’s largest beverage makers on the fence about entrance into the CBD-infused beverages market, the stage is set for smaller players, as well as majors from parallel sectors without a significant ground game in nonalcoholic drinks. But beverages are just one aspect of a rapidly evolving industry that spans the gamut from edibles and concentrates to grow-ops and biopharma development.

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

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