420 with CNW – New Data Reveals Cannabis Legalization Increases Rates of Snacking

New data released by Nielsen shows that people who live in states where marijuana is legal snack more than their counterparts in states with prohibitionist laws. The uptick in the sales of snacks was noticed for sweet and well as salty snacks.

This study suggests that legalizing recreational marijuana can create a boom for the confectionary and snack segments of the food and beverage industry in the U.S.

While snacks sales saw a modest 6 percent increase in states where marijuana is still prohibited for recreational use, states that tolerate adult-use marijuana registered an increase of 7.2 percent in the sale of snacks.

In total, candy sales generated approximately $6.5 billion during the period under review. For this item alone, an increase of 2 percent was observed in states with legal recreational marijuana while those without these laws saw a modest 1.3 increase in the sale of candy.

It appears that salty snacks are the preferred option for cannabis users who get the munchies because the states where adult-use marijuana is legal generated $30 billion from the sale of salty snacks alone.

Nielson used this data to assert that no other single factor was responsible for the difference in the sales of snacks in the states where recreational cannabis is legal.

This claim may be credible because there is ample anecdotal and scientific evidence proving that consuming marijuana boosts one’s appetite and enjoyment of food. The data collected by the census divisions of the U.S. federal government also points to the fact that people get the munchies in states where recreational-use marijuana has been legalized.

Currently, 11 states and Washington, D.C. have legalized recreational cannabis while more than half of the union has given the nod to medical marijuana. Each round of elections now appears to bring more states on board either for recreational or medical marijuana, so the entire country could soon have legal marijuana in some form.

However, the federal government still maintains cannabis as a Schedule I drug although recent events, such as the congressional subcommittee hearing on how to end prohibition may suggest that the federal government could soon revise its position on marijuana.

Analysts posit that players in the cannabis industry, such as Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) and Organigram Holdings Inc. (TSX.V: OGI) (NASDAQ: OGI), will not regard the findings of this study as anything new since the industry has known for long that cannabis has a positive effect on those with poor appetite.

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

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

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

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

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

To view an infographic of this editorial, click here.

Partnerships Key to CBD Growth

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

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

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

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

Welcoming the CBD Retail Revolution

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

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

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

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

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

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

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

Developments in the CBD Upswing

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

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

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

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

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

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

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

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

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420 with CNW – Ontario Scientists Uncover Why Cannabis Seems to Affect Different Consumers Differently

Marijuana triggers a rewarding high in some people while the substance brings serious psychiatric effects when other people consume it. This contradiction in the way cannabis affects its consumers has baffled the scientific community and researchers from the University of Western Ontario in Canada appear to have uncovered the reason for this difference.

The scientists suggest that how one is affected by marijuana may depend on which part of the brain is acted upon by the substance. For some people, the highly rewarding “high” they experience after consuming marijuana can increase their likelihood of becoming addicted to cannabis. For others, the consumption of cannabis can result in paranoia, schizophrenia and other cognitive problems.

The study done on rodents reveals the different regions of the brain which account for these different effects of taking marijuana.

The scientists discovered that the THC in marijuana triggers highly rewarding effects when it reaches the front part of the nucleus accumbens, a region found at the front of the brain. Furthermore, the research showed that once THC reaches this part of the brain, it magnifies the reward-related activity of the brain neurons in the area thereby amplifying the addictive attributes of opioids like morphine.

In contrast, if THC gets to the posterior of the region of the brain referred to earlier (the nucleus accumbens), highly adverse effects result. These effects are typically similar to what is observed in people who have schizophrenia-like behavioral, cognitive and neural activity.

Christopher Norris, PhD, one of the lead authors of the study, explains that the findings above are very important because they provide valuable insights to explain why the experience of some people is positive when they use marijuana while others have a negative experience after using the same strain or amount of marijuana in the same consumption method.

The scientists go on to suggest that since the reward or aversion comes from different parts of the brain, the individuals who experience one of these two distinct effects seem to be genetically predisposed to have different regions of their nucleus accumbens affected by the THC in marijuana. If the sensitivity of the different parts of the nucleus accumbens is determined by genetics, then marijuana users can forestall future issues by refraining or reducing their use of the substance if they notice that they experience adverse effects each time they use cannabis.

These findings have analysts wondering whether industry players like Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) and Organigram Holdings Inc. (TSX.V: OGI) (NASDAQ: OGI) may consider developing methods to help people know whether they are likely to experience positive or adverse effects after using cannabis.

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420 with CNW – National Sheriffs’ Association Wants Marijuana Rescheduled

The National Sheriffs’ Association (NSA) has passed a resolution calling on the federal government to reschedule marijuana. The same resolution also reiterates the group’s opposition to the legalization of recreational marijuana.

In the resolution, the NSA states that they regard the legalization of cannabis as a threat to public safety and health, but they also have empathy for people who are suffering as a result of debilitating conditions which prompt them to seek medical cannabis.

The sheriffs reaffirmed that they remain opposed to not just state-level legalization but decriminalization as well since these policies haven’t done much to eradicate illicit cannabis sales in the states with decriminalization or legalization policies.

However, the group urged the federal government to move marijuana from Schedule I to Schedule II of the Controlled Substances Act in order to make it possible for research to be done into the potential therapeutic applications of marijuana.

The resolution goes on to state that because of statutory and regulatory barriers imposed by the federal government, it hasn’t been possible to obtain any definitive scientific data regarding the therapeutic claims attributed to marijuana. The same barriers have also made it hard to perform research to quantify the cannabis levels which result in impairment.

The sheriffs consequently resolved that marijuana be reclassified to Schedule II so that all the impediments to research are removed.

While the resolution shows that the sheriffs are still opposed to marijuana legalization, their position shows that the organization has undergone a transformation from the last time they voiced their opinion on marijuana in 2015.

Their resolution at that time contained a flat rejection of any form of marijuana legalization, be it medical or recreational. In fact, they urged Congress to do everything possible for the federal government to enforce the Controlled Substances Act.

The recent resolution therefore indicates that the association recognizes, however grudgingly, that marijuana could have some medicinal benefits and they want research to be done to confirm those benefits. This explains why their resolution makes reference to the scheduling of marijuana and yet their 2015 resolution was silent in this regard.

The resolution of the NSA comes at a time when numerous groups and associations, such as attorneys general, banking associations, state governors, and city and local authorities have all passed resolutions or written to Congress urging the federal government to implement marijuana law reforms. Analysts are wondering how industry players like Organigram Holdings Inc. (TSX.V: OGI) (NASDAQ: OGI) and Net Element Inc. (NASDAQ: NETE) will react to the resolution of the NSA.

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420 with CNW – Poll Shows Americans want CBD as an OTC Drug

A survey conducted by Gallup has found that the majority of Americans who are familiar with CBD (cannabidiol) want it available as an over-the-counter drug. The results of the survey were released on Friday last week (June 14).

The CBD craze traces its roots to the cannabis reform movement, and it gained momentum when the Farm Bill 2018 became law last year. This bill legalized industrial hemp and all its derivatives, including CBD.

The survey involving 1,017 participants was conducted over the phone in a bid to get insights into the widespread appeal of CBD. The interviews were conducted from May 15-30.

In all, 39 percent of the people polled revealed that they want to see CBD available as an OTC drug while 21 percent said CBD should be accessed using a doctor’s prescription. 36 percent of the people polled revealed that they weren’t familiar with this particular compound of hemp and marijuana plants.

When Gallup focused on those who were familiar with CBD and asked them whether CBD should be purchased as an OTC drug or as a prescription drug, 61 percent favored the OTC option while 33 percent preferred to see it as a prescription drug.

The participants in the poll were also asked to rate how familiar they were with CBD. 14 percent looked at themselves as “very familiar” with it, 33 percent felt they were “somewhat familiar”, 17 percent felt they were “not too familiar” while 36 percent confessed that they “weren’t familiar at all” with cannabidiol.

Gallup again narrowed its attention to only those who categorized themselves as very familiar with cannabidiol and asked them for their opinion about the medicinal value of CBD. 90 percent of this group believed that CBD had therapeutic benefits.

Of those who thought CBD had medicinal benefits, 33 percent said it had “a lot of benefits”, 45 percent felt CBD had “some benefits” and 14 percent thought cannabidiol had “a few benefits.” 3 percent were neutral on the matter while 4 percent said cannabidiol didn’t have any medical benefits.

Commenting about their findings, Gallup wrote that most Americans already believe that CBD has medicinal value even if research has been slow in proving or disproving many of the therapeutic benefits attributed to CBD. Gallup is convinced that the fraction of people who think CBD is medicinal is most likely to grow as more people get exposed to this non-psychoactive compound.

This possibility takes on a greater degree of certainty given that the FDA has already been convinced enough of CBD’s therapeutic benefits to the extent of approving a drug targeting rare forms of epilepsy.

The pressure on federal agencies like the FDA and Congress to pass laws legalizing CBD as a food supplement and other uses is therefore going to increase as the months go by.

Cannabis industry analysts are of the opinion that the Gallup findings didn’t catch industry players like Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) and Organigram Holdings Inc. (TSX.V: OGI) (NASDAQ: OGI) by surprise.

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420 with CNW – Rhode Island Invites Blockchain Tech to Help Track Medical Marijuana

According to a notice published on Monday (June 3), Rhode Island hopes that blockchain technology can be harnessed to help the state to track medical marijuana and identify illegal actors.

The state has called on blockchain technology developers to submit concepts from which the state will select a provider to develop a system that is customized for the medical marijuana program in Rhode Island.

In a press release, the department of Business Regulation revealed that the call for concepts is a challenge to the blockchain companies to showcase their value to government institutions by testing blockchain technology applications within government entities.

The notice published was categorical in stating that Rhode Island was seeking technology which would increase the visibility of the medical marijuana industry from seed to sale so that opportunities for fraud and abuse could be reduced.

Additionally, blockchain technology could also assist different government agencies in designing an authoritative record of the chain-of-custody during the gathering of evidence while criminal investigations are conducted. This is particularly needed for the enforcement of marijuana laws.

Rhode Island looks at this as the first step towards understanding how blockchain technology can facilitate the improvement of government processes now and in the future.

Bijay Kumar, Rhode Island’s CIO added that he was “excited to see the possibilities regarding the ways in which this technology is helping public and private entities become more innovative in security, business and other areas.”

Developing new technologies to track cannabis sales has taken on an increasing level of urgency given that financial institutions are reluctant to work with marijuana businesses for fear that the federal government will take enforcement action against them. A reliable tracking system can provide assurance that only state-legal marijuana is passing through the system, and this can provide a basis for banks and other institutions to defend themselves.

Jared Moffat, Marijuana Policy Project’s political director in Rhode Island, welcomed the move by the state government to explore new ways to make the medical cannabis program more efficient.

While the notice doesn’t make any reference to medical marijuana banking, Rhode Island seems interested in using the encryption of the blockchain technology system to track the transactions which take place within the industry. This will provide a trail for regulators to confirm that the companies are paying the requisite taxes and no marijuana from licensed growers is leaking out to the black market.

Organigram Holdings Inc. (TSX.V: OGI) (NASDAQ: OGI) and Net Element Inc. (NASDAQ: NETE) commend Rhode Island for being forward-looking and seeking to deploy blockchain technology in the nascent medical marijuana industry.

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New Laws Set Up US Cannabis Industry for Explosive Growth

CannabisNewsWire Editorial Coverage: The 2018 U.S. Farm Bill changes the way that CBD-based products are legally classified. If the federal government permits the sale of cannabis-sourced products online, established companies in the space could reap huge rewards.

The legalization of cannabis in Canada and some U.S. States has demonstrated the latent demand for cannabis-based products.
CBD is used to make numerous products and its potential uses are growing.
Research suggests that the market for CBD products could grow to an estimated $22 billion over the next four years.

SinglePoint Inc. (OTCQB: SING) (SING Profile) is in a good position to take full advantage of the changes in how CBD products are regulated. Major producers such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Aphria Inc. (NYSE: APHA) (TSX: APHA), Medical Marijuana Inc. (OTC: MJNA) and OrganiGram Holdings Inc. (OTCQX: OGRMF) (TSX.V: OGI) are also well-placed to expand into the CBD space, but they may have to compete with a new class of growers.

There are more than 80 kinds of psychoactive compounds found in the cannabis plant. While most people are familiar with THC, which is used recreationally, CBD has shown promise in treating everything from insomnia to serious neurological disorders. The 2018 Farm Bill leaves THC-based products under the jurisdiction of the Drug Enforcement Agency (DEA) but gives jurisdiction of CBD-based products to the individual states. Most industry experts predict that the popularity of these products will explode as they become easily available due to the new regulations.

To view an infographic of this editorial, click here.

A Waiting Market

Until now, CBD-based products were subject to federal regulations, which made them impossible to distribute nationally. They have been sold on a statewide basis in areas that allowed their use, but anyone who dealt with these products was shut out of the federal banking system because the crop — and its subsequent products — were categorized as illegal at a federal level.

With the signing of the new legislation, that appears likely to change. SinglePoint (OTCQB: SING) is an established distributor of CBD products and owns a decade-old web domain. Not only does the company have experience with marketing and distributing CBD-based products, it also has a background in payments processing.

CBD-based products are a new, largely unfamiliar area that may pose challenges for new companies entering the space. Universal standards for many CBD products have yet to be established or identified, so having a positive market image will likely be a significant benefit. Established companies with an existing client base and a positive reputation may be in a better position to leverage growth in the CBD sector. SinglePoint seems to fit this criteria well.

Wide-Open Potential

There is a big difference between cannabis grown for medicinal use and hemp that can now be used as a feedstock for CBD in the United States. Major cannabis producers have a much higher cost of production than hemp growers. With new changes that the 2018 Farm Bill creates for hemp farmers, the price of CBD may fall substantially.

Instead of being cultivated in near-laboratory conditions, industrial hemp is grown like any other commercial crop. Now that CBD can be refined out of commercially produced hemp, it will be difficult for anyone but U.S. hemp farmers to compete on price when it comes to CBD.

Additionally, the 2018 Farm Bill normalizes the CBD economy at a federal level. For the first time, hemp growers can use the banking system, insure their crops, and even sell their future hemp production via futures. Like any new market, it will take time for the infrastructure to be developed, but early movers in the space may have a significant advantage.

Big Changes for CBD

SinglePoint is in a unique position in the emerging CBD space. As both an online marketer and payments processor, the company looks to be in a strong position to help deliver CBD products to their target markets. The company has a strong strategy to grow its presence in the CBD space. Unlike many of the other publicly traded, cannabis-focused companies, SinglePoint has no connection with cannabis plants and cultivation, so the company should be able to take full advantage of the recently passed 2018 Farm Bill.

It appears that there is no shortage of potential CBD-based products. Currently, CBD is integrated into everything from lotions and edibles to beer and oil. With the legalization of CBD widely anticipated, research will almost certainly lead to additional discoveries into CBD properties and benefits, as well as the creation of new products targeting specific market segments.

The emerging CBD economy is also supported by the ability for hemp producers to raise funds publicly. Much like the Canadian cannabis producers that were able to expand quickly because of their publicly traded equities, U.S. hemp producers can now go public and leverage public interest in CBD to expand their operations.

Changing Production Profiles

The 2018 Farm Bill is a huge positive for U.S.-based hemp producers and CBD consumers.

One of the largest publicly traded cannabis producers available to U.S. investors, Cronos Group (NASDAQ: CRON) (TSX: CRON) owns two fully licensed cannabis producers in Canada and has other interests spread around the world. The company has maintained a multibillion-dollar valuation, despite some weakness in the publicly traded cannabis sector. In addition to producing cannabis in Canada, the company is involved in the distribution of cannabis products in many of the markets in which it operates. In the third quarter last year, the company reported increased revenues by 186 percent and sold 213 percent more kilos of cannabis than in the same time a year earlier.

Aphria (NYSE: APHA) (TSX: APHA) has grown its presence in the Canadian cannabis space via acquisitions and strategic investments and is one of the largest publicly traded cannabis producers. The company made two high-profile acquisitions last year, taking over Broken Coast Cannabis and buying Nuuvera, a Canadian cannabis company with already-existing strategic exposure to German and Italian markets. The vast majority of the company’s production capacity for cannabis is concentrated in a single facility, called Aphria One, which is located in Leamington, Ontario.

Medical Marijuana (OTC: MJNA) has been operating in the legal cannabis space for longer than most. The company owns numerous subsidiaries, including HempMeds, Kannalife and Kannaway. It also operates an international division, which has developed a substantial presence in Brazil, where it was the first company to introduce legal cannabis-based medicines to the Brazilian market. The company also has a direct marketing structure for cannabis products and appears to be well-placed to grow in the emerging CBD market.

OrganiGram Holdings (OTCQX: OGRMF) (TSX.V: OGI) is the parent company of Organigram Inc., one of the largest licensed producers of cannabis in Canada. The company delivers industry-leading yields from its growing facilities and is focused on expanding in the Canadian market for recreational and medicinal cannabis. Organigram developed a portfolio of brands for a variety of uses, including The Edison Cannabis Company, Ankr Organics, Trailer Blazer and Trailer Park Buds. In addition to growing cannabis, OrganiGram also distributes it.

With the passage of the 2018 Farm Bill changing the legal status of CBD, it is estimated that the CBD market will grow to be a $22 billion industry by 2022. SinglePoint has created a solid platform to be a part of that industry.

For more information on SinglePoint, visit SinglePoint Inc. (OTCQB: SING)

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Change in Attorney General Could Mean a Cannabis Revolution in the US

CannabisNewsWire Editorial Coverage: A new attorney general is still to be named to replace unabashedly anti-cannabis former AG Jeff Sessions. As the market awaits a new AG, there’s a steady push from cannabis companies keeping an eye on the massive potential of the U.S. market, companies that include Chemistree Technology, Inc. (CSE: CHM) (OTCQB: CHMJF) (CHMJF Profile), Aurora Cannabis (TSX: ACB) (NYSE: ACB), CannTrust Holdings, Inc. (TSX: TRST), Organigram Holdings, Inc. (TSX.V: OGI) (OTCQX: OGRMF), and Supreme Cannabis Co. (TSX.V: FIRE) (OTCQX: SPRWF) (SPRWF Profile).

To view an infographic of this editorial, click here.

By the end of 2025, the legal cannabis industry is expected to reach $146.4 billion worldwide. Meanwhile, a good number of U.S. companies and investors are being mostly locked out of this booming market because the federal government still classifies cannabis as a Schedule I drug.

However, a sea change of public opinion pointing towards a demand for federal legalization is underway with several states already having voted in favor of cannabis in some form. Even the notoriously conservative, teetotalling state of Utah has joined this revolution.

As Sessions’ replacement has yet to be announced, there is ongoing speculation on the positive benefits of a new face for the cannabis sector. As Forbes magazine puts it, “The new AG will likely be less of an opponent for cannabis simply because it is hard to find someone who has stronger opposition than Mr. Sessions.”

What’s on the table is a massive multibillion-dollar sector that could be unleashed quite quickly should the next AG have a softer and more populist approach to the plant. During the lead-up to a potential legalization, companies large and small are staking their ground in lucrative U.S. regions already brimming with a willing clientele eager to buy legal cannabis.

California alone could bring about a green wave, boasting an existing cannabis market larger than all of Canada combined. Chemistree Technology, Inc. (CSE: CHM) (OTCQB: CHMJF) has already begun setting up shop in the Golden State, having recently solidified a land purchase of 9.55 acres in California’s prominent Desert Hot Springs’ cannabis cultivation zone.

Chemistree’s strategic move into California is representative of an early-mover advantage, despite the state’s already booming cannabis sales. California’s cannabis spending hovered near $3 billion in 2017 — even before recreational marijuana became legal on January 1. By 2022, the market in the state is expected to soar to $7.7 billion.

In spite of the legal limbo of cannabis in the United States, the sector’s advantage may already be moving south from Canada into its neighbor to the south. Ahead of the new AG announcement, it appears the U.S. opportunity may have already arrived.

Waking the American Sleeping Giant

Combined, the top U.S. cannabis firms trading on Canadian exchanges represent $8 billion of market value—or roughly 20 percent of the billion-dollar market capitalization of the 144 cannabis companies listed in Canada. This just scratches the surface.

At the moment, the United States lags behind its fellow North American peers in fully capitalizing on the legalization of medical and recreational cannabis. Mexico is moving closer to legalization, with its congress at the beginning of deliberation of a bill to legalize cannabis across the country. During his election campaign, Mexican president-elect Andrés Manuel López Obrador signaled his willingness to consider legalization. Then last week, the country’s Supreme Court ruled that anti-cannabis laws are unconstitutional, forcing lawmakers to decide how to regulate its use.

To the north, Canada — along with Uruguay in South America — has already made recreational use legal. An additional 30 countries and 33 U.S. states, including Australia, Germany and Israel, have legalized some type of cannabis use. Those numbers are growing. More than a dozen countries have already started on the path to full legalization of the plant.

Following the resignation of AG Jeff Sessions, Sessions’ chief of staff, Matthew Whitaker, is presently serving as acting attorney general. Media outlets are speculating who the next AG could be, with New Jersey Governor Chris Christie and Florida AG Pam Bondi leading the way as potential candidates.

While Christie has been adamantly anti-pot in the past, Bondi oversaw the approval of medical marijuana in her state of Florida. A Bondi nomination, coupled with strong public support could ultimately be a major boost for the cannabis sector.

Gearing Up for a New Era

Cannabis companies are already getting their ducks in a row for a new era of legalization. With operations in Washington State and now California, Chemistree is gearing up for a big move.

Upon the announcement of its California land acquisition, Chemistree president Karl Kottmeier stated, “This is a great purchase for Chemistree. I am pleased to report that our highly experienced team in California has begun working on this exciting project. Not only did we arrive at what we believe is a very attractive price, we are buying a site that already has much of the Conditional Use Permit application process well underway. We expect to have the application submitted within the next few weeks and anticipate approval to take 2–3 months thereafter.”

The property is capable of supporting development plans and a Conditional Use Permit application for three 68,000-square-foot cultivation and processing buildings on the site, totaling approximately 205,000 square feet.

Earlier in the year, Chemistree purchased the high-quality, Washington-based Sugarleaf brand with the expressed intent to more than quadruple the reach of its product line through 2019. By taking Sugarleaf’s brand reach across state lines into California, Chemistree is pairing the new brand with its already acquired assets.

Beyond cultivation and branding, Chemistree is also expanding into Northern California. The company has entered into a joint venture on a cannabis processing facility in the north, while also seeking capital to expand locations in the state and broaden its service offerings.

More Red, White, Blue and Green Opportunities

Having recently spun off its American assets into Australis Capital, multinational cannabis producer Aurora Cannabis (TSX: ACB) (NYSE: ACB) plans to enter the world’s largest economy when relevant laws allow it to do so. While Aurora currently has no direct ownership interest in Australis, the company holds two warrants that would allow it to acquire an ownership interest in Australis if holding investments in U.S. cannabis assets becomes permissible within a decade. In the meantime, Aurora has successfully listed itself on the NYSE.

Soon to be following in Aurora’s NYSE footsteps is CannTrust Holdings, Inc. (TSX: TRST). CannTrust managed to double its sales in Q3, as it prepared to move to the NYSE. While still early in the game, CannTrust delivered sizeable sales growth, and nominal profits. It entered into supply agreements with nine Canadian provinces to supply recreational cannabis across Canada. The company recently launched its fourth recreational brand named “Peak Leaf,” started shipping cannabis oil to Denmark and entered into an exclusive partnership agreement with Kindred Partners, Inc.

Possibly joining the caravan to the NYSE is OrganiGram Holdings, Inc. (TSX.V: OGI) (OTCQX: OGRMF). With a market cap around $600 million, OrganiGram is likely a suitable choice for listing on the NASDAQ exchange, but it could also potentially fit on the NYSE. When it’s finally to scale, OrganiGram will likely be one of the 10 largest cannabis producers in Canada. However, an opening up of the U.S. market would only serve to boost OrganiGram’s already impressive growth curve.

While not actively operating in the United States, Supreme Cannabis Co. (TSX.V: FIRE) (OTCQX: SPRWF) is preparing for entry into the international oils (for medical use) market. Through a partnership with Medigrow located in Lesotho, Supreme is looking to secure international opportunities including Medigrow’s 40,000 litres of cannabis oil potential per year. A loosening of U.S. drug policy could allow groups such as Supreme to import their wares from abroad into the United States and get involved in what could be the largest cannabis market in the world.

For more information on Chemistree, visit Chemistree Technology, Inc. (CSE: CHM) (OTCQB: CHMJF)

Please also read and review the article ‘With Cannabis Now Legal in Canada, Investors Are Turning South to the Largest Emerging Cannabis Market in the World’

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Industrial Hemp Floodgates Open as CBD Demand Grows

CannabisNewsWire Editorial Coverage: The growing popularity of cannabidiol (CBD), a powerful but nonpsychoactive cannabinoid found in plants of the cannabis family such as industrial hemp, has a lot to do with consumer experience roundly validating the increasingly body of scientific evidence for CBD’s therapeutic value.

CBD demand is increasing rapidly as consumers run ahead of the studies.
Branding is key to capturing market share while formulation quality drives consumer loyalty.
The global potential for the CBD market is immense and largely untapped.

Marijuana Company of America Inc. (OTC: MCOA) (MCOA Profile) has taken several key steps to set itself up as a power player in the burgeoning CBD space, acting as a cultivation site landlord while also developing revolutionary products containing proprietary CBD compounds via its wholly owned subsidiary, hempSMART. CV Sciences Inc. (OTCQB: CVSI) just introduced PlusCBD Oil™ Gummies at the Natural Product Expo East 2018. Los Angeles-based MedMen (CSE: MMEN) (OTCQX: MMNFF) just signed a $33 million deal to acquire Kannaboost Technology Inc. and CSI Solutions LLC, collectively known as Level Up, an Arizona-based vertically integrated marijuana firm. OrganiGram (TSX.V: OGI) (OTCQX: OGRMF) has just has signed a supply agreement with BC Liquor Distribution Branch, the sole, wholesale distributor of nonmedical cannabis for British Canada. And symbolic of its presence in the cannabis market, Aphria (NYSE: APHA) (TSX: APH) debuted on the New York Stock Exchange last week.

To view an infographic of this editorial, click here.

CBD Already Hot and Getting Hotter

No doubt about it, the CBD market is hot right now. With analyst projections ranging from $2.1 billion to $3 billion within the next three to four years, historic change in the form of a 2018 U.S. Farm Bill that could make CBD and industrial hemp legal nationwide might send the market into hyperdrive.

Diverse Approach Focused on Legal Market

Marijuana Company of America Inc. (OTC: MCOA) has constructed a business model around the immense potential of the industrial hemp-based CBD market and just recently applied for an uplisting to the OTCQB in conjunction with an S-1 filing and anticipated access to a $10 million line of equity financing. The company also tapped former Price Waterhouse and Deloitte & Touche man Jesus Quintero for its CFO job, where his extensive public company reporting and SEC/SOX compliance experience should help expedite matters handily.

The success of the company’s hempSMART line comes from its innovative products, such as HempSMART Brain, a unique formulation of Ayurvedic herbs and botanical compounds with premium CBD designed to enhance brain function. The company’s success also stems from its affiliate marketing program, which allows people to earn income via commissions and bonuses, assisted by a sophisticated networking architecture that was engineered to maximize customer loyalty and market penetration.

Global Potential, Next Level Moves

MCOA has even tapped 35-year direct sales industry veteran Ian Harvey to spearhead hempSMART’s upcoming international product launch starting in Europe at the outset of 2019. As the company’s global sales director, Harvey will seek to deliver the same kind of success with the hempSMART network marketing program as was demonstrated throughout his career in the direct sales industry.

Recently the first of many regional events to be held across the country took place, and the hempSMART South West Regional Event showcases how quickly MCOA has built up its CBD product brand and leveraged its advanced affiliate marketing platform to harness the might of the $189.6 billion direct sales industry. While the company is busy breaking new ground at the forefront of direct sales and CBD, MCOA continues to advance its property interests as well and is focused on leasing turnkey facilities to sector operators in appropriate states and jurisdictions. The latest news from the company’s CBD hemp farming joint venture in New Brunswick, Canada, with Global Hemp Group Inc. demonstrated the ingenuity of MCOA’s farming group. An OXBO bean harvester was used at the New Brunswick project to maximize target yields of the parts of the plant with the highest CBD concentrations, despite unusually difficult crop conditions created by this year’s drought.

Just the Beginning of the Property Leasing Ladder

At the partnership’s Covered Bridge Acres joint venture in Scio, Oregon, work is proceeding apace of expectations. The facility will comprise when completed, some 19,000 square feet of greenhouses for year-round production, paired up with traditional outdoor orchard-style cultivation on the remaining square footage of the 109-acre site. MCOA plans to continue to expand its property footprint in both the United States and Canada as the overall cannabis industry heats up. The company may hold an ace up its sleeve in the form of a close working relationship with British Columbia-based Global Hemp Group. Both companies share a common vision about the disruptive potential of industrial hemp, particularly as evinced by the growing popularity of CBD.

And while many in the mainstream media may still be skeptical about what consumers seem to be discovering firsthand about CBD’s health benefits, a growing body of scientific data appears to back up popular sentiment. Research regarding the ability of cannabinoids such as CBD to regulate homeostasis by impacting the body’s endocannabinoid receptors found throughout nearly every tissue system suggests that consumers are not just experiencing some kind of placebo effect.

Two-Pronged Solution to Soaring Demand

MCOA has put together a noteworthy approach to the overall space, emphasizing immediate access to legal areas of the market. On one hand, Marijuana Company of America has a dynamic affiliate marketing program to promote and sell its legal hemp-based consumer products. In addition, the company has put together a growing property-based presence that looks to increasingly benefit its hempSMART brand’s performance metrics. CBD continues to be costly to produce, and the demand for cultivation sites will likely continue to increase proportionally.

A preeminent supplier and manufacturer of hemp-derived phytocannabinoids, CV Sciences Inc. (OTCQB: CVSI) added to its leading brand, PlusCBD Oil™, with the release of its gummy product. CV Sciences operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD, and a consumer product division focused on manufacturing, marketing and selling plant-based CBD products.

By acquiring control of Level Up, MedMen (CSE: MMEN) (OTCQX: MMNFF) gains access to two vertically integrated operations in Arizona, which include retail locations in Scottsdale and Tempe, as well as 25,000 square feet of cultivation and production capacity in Tempe and Phoenix, and a stake in the top-selling K.I.N.D. Concentrates (“K.I.N.D.”) brand, which is currently distributed in more than 90 percent of Arizona dispensaries. The acquisition strengthens MedMen’s presence in one of the top cannabis markets in the United States.

A leading licensed producer of cannabis for the medical and adult-use recreational markets, OrganiGram (TSX.V: OGI) (OTCQX: OGRMF) has now secured cannabis distribution agreements in eight of ten provinces in Canada. Organigram also recently signed an agreement with to acquire 8,333 common shares of Alpha-Cannabis Germany, representing a 25% stake in ACG’s capital. ACG has been preparing the development and production of further cannabis-based products for the swiftly growing German and European markets.

In addition to uplisting on the NYSE, Aphria (NYSE: APHA) (TSX: APH) recently closed acquisitions of assets in Latin America and the Caribbean from Scythian Bioscences. As a result of the transaction, Aphria has solidified an important foothold in Latin America and the Caribbean by acquiring industry-leading cannabis-related companies in Colombia, Argentina and Jamaica as well as a right of first offer and refusal to a majority interest in a Brazilian entity seeking a cannabis cultivation and sales license.

CBD is quickly establishing itself as the darling of the booming cannabis industry. Investors will want to keep a close eye on companies such as MCOA that are able to operate within the sizeable, already-legal portions of the overall cannabis market and that have a specific emphasis on products containing CBD derived from industrial hemp. However, the entire cannabinoid market is worth examining in greater detail, while those companies with unique advantages deserve special attention, as they could be tomorrow’s brightest stars and richest buyouts.

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

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

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

Senate Signals Support for Cannabis Seedbank

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

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

Building Better Strains

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

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

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

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

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

More Facilities for a Growing Market

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

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

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

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

A Growing Global Industry

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

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

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

More Companies Signal Strong Future

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

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

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

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

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

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

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

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