420 with CNW – California Senate Passes Bill to Create Cannabis Banks

The senate in California passed a bill on Tuesday (April 21) paving the way for the creation of state-chartered banks for the cannabis industry. These banks will help the cannabis industry to get around the banking restrictions resulting from the federal status of marijuana.

Under the bill, credit unions and private banks can apply to the state for a limited purpose charter to provide depository services to legitimate marijuana businesses within the state. This bill was passed with a 35-1 vote and now awaits approval by the Assembly and Gov. Gavin Newsom.

Currently, all marijuana businesses, such as cultivators and retailers, are forced to accept only cash because federally-chartered banks are afraid to accept them as clients. California will therefore exert pressure on the federal government to consider easing its marijuana banking regulations since California is the most populous state in the nation.

Robert Hertzberg, California’s Senate Majority Leader, remarked when introducing the bill last month that while the proposed law wasn’t an ideal remedy to the dilemma facing cannabis banking, it was a good step to take along the journey of treating cannabis businesses as legitimate businesses like all others. The bill would allow money from the cannabis industry to be taken from the streets to bank accounts.

The financial institutions which get the special-purpose charters would print special checks that marijuana businesses can use to pay rent, local and state taxes as well as any other fees. The financial institutions created to work with cannabis businesses will not offer any loans to their clients, so marijuana businesses will still have to get funding using other methods.

The lack of banking services has made it very difficult for regulators and law enforcement to stamp out illegal marijuana businesses since both legitimate and black market activity is cash-based.

It isn’t clear whether financial institutions will warm up to cannabis businesses once this bill becomes law. Banking institutions are wary of working with cannabis businesses because they are exposed to enforcement action by the federal government, so it is not yet clear whether this proposed law will allay their fears.

Currently, more than 30 states have legalized medical marijuana while 10 states, plus the District of Columbia, have legalized recreational cannabis. More are considering bills or petitions to pass their own marijuana laws. The step taken by California will therefore be watched closely since other jurisdictions may follow its lead if the measure produces tangible results.

Organigram Holdings Inc. (TSX.V: OGI) (OTCQX: OGRMF) and Net Element Inc. (NASDAQ: NETE) look forward to the enactment of SB 51 so that cannabis businesses in California can access the limited banking services envisaged in that draft law.

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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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Sector ETFs Provide Diversified Entry Point for Fast-Moving Industries

CannabisNewsWire Editorial Coverage: Individuals hoping to gain exposure to the movement of the markets have two primary options: spend a lot of time and effort researching public companies, or put faith into a fund. A solid investment strategy is key to keeping pace with inflation and reaching your financial goals, but the significant risk and volatility that can come with investing in a small group of companies is a real turn-off for most part-time investors.

Increasingly, novices and seasoned traders alike are turning to mutual funds for their stability and ease of use. According to data from the Investment Company Institute, mutual funds were the most common type of investment company owned in 2018, with 44.8 percent of U.S. households owning shares of mutual funds or similar U.S.-registered investment companies – including exchange-traded funds (ETFs), closed-end funds and unit investment trusts. As Matthew P. Fink notes in The Rise of Mutual Funds: An Insider’s View, “Today U.S. mutual funds are the largest financial industry in the world, with over 88 million shareholders and over $11 trillion in assets.”

Index vs Actively Managed Funds

Deciding on a mutual fund can be tricky. Data from Morningstar, published in 2018, indicates that the number of mutual funds and ETFs now stands at more than 10,000. You can begin to narrow this total down by exploring the differences between index funds and actively managed funds.

Index funds aim to track the performance of a specific market benchmark as closely as possible. The Vanguard 500 Index Fund is a prime example, with its holdings consisting of weighted positions in S&P 500 companies. Although investment firm Vanguard suggest that “only about 16 percent” of investments in domestic mutual funds are in index-based options, these funds have some noteworthy proponents.

In 2007, American business magnate Warren Buffett made a $1 million bet with Protégé Partners claiming that hedge funds wouldn’t outperform an S&P index fund, and he won. As reported by CNBC, Buffett’s choice investment, the Vanguard 500 Index Fund, “returned 7.1 percent compounded annually, while the basket of hedge funds his competitor chose returned an average of only 2.2 percent.”

Unlike index funds, actively managed funds rely on the skill and insight of their managers to not just match the performance of the larger markets, but beat them. History shows these funds to be considerably less consistent than their index-focused counterparts. According to Standard & Poor’s, roughly three-quarters of actively managed domestic stock funds underperformed the S&P 1500 Total Market Index in the decade ended June 30, 2015. Additionally, 40 percent of actively managed equity funds available to investors on June 30, 2005, were no longer in existence just 10 years later.

While exceptions do exist (Fidelity Blue Chip Growth has outperformed the S&P 500 by 2.8 percent over the past decade, for example), the upside and relative stability of index funds make them worthy of consideration for risk-averse investors.

Alternative Indexes

The upside of major indexes like the S&P 500 are apparent, but investing solely in the performance of the larger market can limit your exposure to faster-moving investment opportunities. Consider, for example, the cannabis industry. According to Marijuana Business Daily, legal cannabis sales in the U.S. alone were on pace to grow by nearly 50 percent in 2018 to $9.7 billion, with legal sales expected to rocket past $22 billion by 2022.

The Prime Alternative Harvest Index (“Prime”) gives fund-focused investors an opportunity to cash-in on the expanding repeal of cannabis prohibition without digging through the mountain of fly-by-night entries to the space. The Prime aims to take advantage of both event-driven news and long-term trends in the cannabis industry, as well as the industries likely to be influenced by the medicinal and recreational cannabis legalization initiatives that are taking shape in many forms around the globe. Utilizing a modified market cap weighting scheme, the index features some of the fledgling cannabis industry’s most recognizable names, including GW Pharmaceuticals (NASDAQ: GWPH), Cronos Group (NASDAQ: CRON) (TSX: CRON) and The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF), alongside a roster of established upstarts and ancillary companies defined by a set prospectus.

The Benefit of Exchange-Traded Funds

When investing in a fund based on a more fluid index like the Prime, the benefits of exchange-traded funds over more traditional mutual funds are particularly noteworthy. While traditional open-end mutual fund shares are only traded once per day, limiting your ability to capitalize on sudden market moves, ETFs are bought and sold during the day just like stocks, opening the door for short selling, futures and options.

ETFMG Alternative Harvest (ARCA: MJ) is an ETF that tracks the Prime in an effort to “measure the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational legalization initiatives.” To date, it is the first and only U.S. ETF to target the cannabis industry, providing direct exposure to the ongoing “green rush” taking place across North America and around the world.

The Alternative Harvest ETF turned its focus to the cannabis space in late 2017, shifting away from a prior basis of Latin American real estate to invest in both cannabis cultivation firms and a few outside operators that you may not expect to see in a cannabis-centric fund, such as Philip Morris International (NYSE: PM) and Scotts Miracle-Gro (NYSE: SMG).

Importantly, the ETF requires that all holdings have a minimum market cap of $200 million, giving investors a degree of insulation from the marijuana penny stocks and upstart companies that continue to flood the sector.

A Closer Look at the Alternative Harvest ETF

Since rebalancing its holdings to focus on the cannabis space, the Alternative Harvest ETF has established a strong position on the radars of investors eying the industry. In early January 2018, The Motley Fool issued a report stating that MJ was bought and sold more than the $145 billion iShares Core S&P 500 ETF, which the publication touted as a testament to “just how big [MJ] has become in marijuana stock circles.” In the year-plus since that report was issued, interest in the cannabis-focused ETF has remained strong, with current average trading volume exceeding 900,000.

Throughout the first two months of 2019, the sustained interest in MJ has been supported by its upward trajectory. Entering the year with a market price of $26.42, the fund’s YTD return clocks in north of 40 percent, with a market price of $37.43 during mid-day trading on March 5 that marked a new high for 2019.

This strong performance lines up nicely with the broader cannabis sector, which is supported by MJ’s current asset holdings. Canadian shares of The Green Organic Dutchman, for example, which currently represent 4.34 percent of MJ’s portfolio, are up more than 60 percent YTD. Similarly, U.S.-listed shares of Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), which make up 7.16 percent of MJ’s current holdings, are up roughly 63 percent YTD. Canadian shares of OrganiGram Holdings Inc. (TSX.V: OGI) (OTCQX: OGRMF) make up 3.35 percent of MJ’s current holdings, and they’re up more than 60 percent YTD, as well.

The impressive YTD performance of MJ’s smaller holdings, including The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF), Canopy Rivers Inc. (TSX.V: RIV) (OTC: CNPOF) and VIVO Cannabis Inc. (TSX.V: VIVO) (OTC: VVCIF), each of which makes up less than 1 percent of MJ’s current portfolio, continues to highlight the current opportunity presented by the North American cannabis industry. The Canadian shares of each of these companies are up more than 40 percent YTD.

After a turbulent 2018 for the cannabis industry, the first quarter of 2019 has shown incredible promise for established operators throughout the space. In early January, The Motley Fool forecast huge growth for a number of companies currently included on the Prime Alternative Harvest Index and held by MJ, including 407 percent sales growth for Aphria (NYSE: APHA) (TSX: APHA), 440 percent sales growth for The Supreme Cannabis Company, 891 percent sales growth for OrganiGram Holdings and 930 percent sales growth for cannabinoid drug maker GW Pharmaceuticals, whose shares currently represent 9.1 percent of MJ’s total holdings.

A Diversified Entry Point

It’s easy to be drawn to the cannabis sector for its promise of significant growth in the coming years, particularly as legalization measures continue to gain steam in the United States. However, choosing a winner in this nascent market has already proven to be both difficult and risky for investors of all skill levels. A proven way to avoid backing the wrong horse in this great green race is to diversify your investment, focusing more on the overall success of the industry than on that of any individual company or management team.

With more than 86 percent of its current holdings providing exposure to U.S. and Canadian markets and broad industry focuses spanning pharmaceuticals, tobacco and biotechnology, the Alternative Harvest ETF provides an intriguing and diversified entry point for investors seeking a foothold in the continued emergence of the legal cannabis 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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Something for Everyone: Baby Boomers Signify Shift in the Cannabis Market

CannabisNewsWire Editorial Coverage: Since they came onto the scene after World War II, baby boomers have heavily impacted the world around them, and their influence is being felt now in the emerging cannabis market.

A recent survey has shown a significant increase in cannabinoid-derived product consumption in the United States, most notably among baby boomers.
With a combination of disposable income, health issues and liberal attitudes towards drugs, baby boomers represent a natural market for cannabis companies.
This trend also signifies wider growth and diversification of products and customers in the industry.

Marijuana Company of America, Inc. (OTC: MCOA) (MCOA Profile) is tapping into this growing market through the production of industrial hemp and the marketing of a wide range of CBD wellness products. Having started out as a medical cannabis company, Organigram Holdings, Inc. (OTC: OGRMF) is adjusting to shifting markets by appealing to recreational consumers while showing loyalty to its existing customer base. A focus on research provides CV Sciences, Inc. (OTC: CVSI) with a growing range of products and the credibility to appeal to health-conscious cannabis consumers. Global innovator and market leader Isodiol International, Inc. (OTC: ISOLF) recently received approval for its cannabidiol (CBD) to be designated as an active pharmaceutical ingredient. And Cannabis Strategic Ventures (OTC: NUGS) just launched a new line of CBD-based luxury skin, hair and body products.

To view an infographic of this editorial, click here.

The Changing Face of Cannabis

It’s hardly surprising to see that baby boomers are an important part of the cannabis and hemp markets. The generation that saw marijuana gain counter-culture popularity in the ‘60s and ‘70s is also a generation with considerable disposable income. As they head into retirement and old age, many baby boomers are looking for ways to enjoy their wealth, as well as ways to manage physical ailments. The growth of both the medical and the recreational cannabis sectors in North America means that this product can cater to both desires.

The growth in cannabinoid consumption by baby boomers is just part of the expansion of the cannabis market. Given the chance to openly research plant and products, manufacturers are vastly increasing the potential of cannabis. Improved strains improve the performance and profitability of the drug, while derivative products and support services turn what was essentially a single product into a whole sector.

Baby Boomers and Cannabis Consumption

For companies such as Marijuana Company of America (OTC: MCOA), baby boomers are an increasingly important market sector. A recent survey of nearly 18,000 adult Americans found that cannabis is becoming increasingly popular among the older generation. The number of cannabis users in the United States has nearly doubled over the past decade, despite it still being illegal in several states and only available for medical use in most. Around 9 percent of those aged 50 to 64 had used cannabis at some point in the year preceding the survey. Among those aged 65 and above, the figure was 3 percent. And while those numbers may not seem impressive, they are steadily growing and represent an increasingly large market for MCOA and its competitors to tap into.

What’s causing this growth in older cannabis users?

Shifting attitudes are clearly a factor. Many baby boomers came of age in the ‘60s and ‘70s, when the hippy movement raised the public profile and popularity of cannabis. They were therefore raised with marijuana as a feature of popular culture, even if they personally didn’t indulge in it. More recently, a shift away from the criminalizing policies of the 1980s towards a more liberal view has started to change attitudes across the generations.

Growing availability is a factor as well. The legalization of medical cannabis in many states has made the drug accessible in ways that it wasn’t before. Given the prevalence of chronic pains and ongoing ailments among those aged 60 and over, it’s relatively easy for seniors in medical cannabis states to get a prescription. And in the states where it’s legal for recreational purposes, the only bar to use is the social attitude of the consumer.

Having grown up during an economic boom and an era with greater government support, baby boomers have emerged with the wealth to enjoy their hobbies in retirement. And for many, cannabis is now one of those hobbies.

Something for Everyone

Baby boomers are just one part of recent growth in the cannabinoid product market. It’s a pattern of growth driven in part by the increasing diversity of cannabis products, sold through separate but interconnected markets.

The first to emerge was the medical cannabis sector. This has grown from a small niche to an important part of the North America market, with cannabis and hemp now legal in parts of the United States and Canada. Millions of people use cannabinoid-based products regularly to help manage chronic pain and treat other ailments, leading to growing recognition that the legal definition of cannabis as having no medical use was both absurd and unscientific.

Medical cannabis has been followed in recent years by the legalization of recreational cannabis. Nine U.S. states and the District of Columbia have taken this step. Canada is following suit on a national level, with legalization coming this October. Strains of cannabis and brands of products aimed at recreational consumers are emerging to cater to a different market from the medical one.

Alongside these products are others related to or derived from other cannabinoids, such as CBD. Industrial hemp, which produces CBD in large quantities, is grown by companies including MCOA, who has the potential to capture a piece of what is projected by The Brightfield Group to be a $22 billion market by 2022. Following trials over the past few years, the cultivation of industrial hemp looks set to become legal across the United States with the upcoming passage of the 2018 Farm Bill.

A wide range of products have been produced using active compounds from hemp. Oils and pills derived from cannabidiol oil (CBD) are increasingly popular in the health and wellness markets, finding their place on the shelves of wholefood shops.

Catering to Varied Needs

One of the reasons for the success of cannabis companies is their ability to manufacture and distribute CBD-related products for vastly different purposes. MCOA’s hempSMART™ product line shows how these companies build up a range of distinct but related products. hempSMART makes use of cannabidiol (CBD), a non-psychoactive chemical found in cannabis and widely used in health and wellness products.

HempSMART Pain and hempSMART Pain Cream use CBD for one of cannabis’s most widely recognized uses — pain management in relation to minor physical activity. It’s why cannabis had grown so popular and part of why its derivatives are also proving so popular with a variety of different age groups.

HempSMART Brain, on the other hand, is designed to improve clarity, concentration and alertness. HempSMART Face has found a way to use CBD in a moisturizer that moisturizes and replenishes the skin cells on your face. And hempSMART Pet Drops let people share the benefits of CBD with their animal companions. It’s a level of variety that may allow MCOA to get its products into many niches, increasing brand awareness as well as sales.

By creating a wide range of products, cannabis companies are catering to a growing number of markets. By helping with issues such as alertness and pain management, they’re ensuring their relevance to that crucial baby boomer market.

Expanding the Range of Cannabis Products

That sort of varied approach to cannabis is leading to growth for Organigram Holdings, Inc. (OTC: OGRMF). Once a medical cannabis company, Organigram still has a strong focus on that market and is showing its commitment to patients by covering the cost of excise tax on their cannabis. But it’s also expanding into the recreational market, contributing one of its award-winning flowers to the world’s first recreational cannabis variety kit. Creating products such as variety kits and gift sets turns cannabis into more of a luxury consumer product, one to be purchased for special occasions.

CV Sciences, Inc. (OTC: CVSI) is strongly focused on the research side of cannabis, using this as both a source of new products and a way of validating its work to consumers. It’s the sort of work that adds credibility to arguments that cannabis is safe and useful for consumers.

Isodiol International, Inc. (OTC: ISOLF) is a market leader in pharmaceutical-grade pure, natural CBD and an industry leader in the manufacturing and development of CBD consumer products. The company’s line of consumable and topical skin care products features 99 percent-plus pure, natural isolated CBD, micro-encapsulations, and nano-technology for the highest quality products.

Cannabis Strategic Ventures (OTC: NUGS) is marrying cannabis science with an increasing global demand for luxury personal care products in LYXR, its newest product line. LYXR products are developed from a line of hemp-derived phytocannabinoids combined with other natural ingredients that provide high-performing skin, hair and body topical solutions. LYXR’s inaugural product will be a face mask designed to provide hydrating and anti-aging/age prevention benefits. The LYXR product line will eventually include skin, hair and body products.

The cannabis market is seeing huge growth in the variety of both products and customers. With baby boomers increasingly enjoying cannabis into retirement, marijuana appears to be well on its way to entering the mainstream.

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

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Canadian Cannabis Legalization Set to Transform the Industrial Hemp Industry

CannabisNewsWire Editorial Coverage: The legalization of cannabis in Canada is about to bring big changes not just for medical cannabis companies but for hemp growers as well.

The law legalizing recreational cannabis in Canada will come into force on October 17.
This will create new opportunities for hemp growers to produce the plant for CBD extraction.
Hemp growers will now be able to profit from all parts of the plant.
Cannabis companies are experimenting with growing techniques, expanding their businesses, and seeking supply agreements in preparation for the change.

Marijuana Company of America Inc. (OTC: MCOA) (MCOA Profile), which grows industrial hemp in Canada, will now be able to sell leaves and flowers as well as other parts of its plants, and is preserving this year’s crop in preparation for the change. In the United States, Isodiol International, Inc. (OTC: ISOLF) is raising the profile of the industry through a celebrity partnership and the expansion of its retail chain. Aurora Cannabis, Inc. (OTC: ACBFF) has been acquiring financing to fund a program of expansions and takeovers, preparing the way to dominate the American market. Organigram Holdings, Inc. (OTC: OGRMF) and Emerald Health Therapeutics (OTC: EMHTF) have both set up a string of supply agreements, giving them quick access to the Canadian recreational market come October.

To view an infographic of this editorial, click here.

Transforming Canada’s Cannabis Industry

On October 17, cannabis will become legal in Canada. Under the provisions of the Cannabis Act, Canadians will be able to buy and consume cannabis for recreational as well as medical purposes. Careful licensing, together with clear rules around cultivation and processing, will ensure that a previously illegal industry becomes a well-regulated part of the legal economy. As Prime Minister Trudeau said when the law was passed, “It’s been too easy for our kids to get marijuana — and for criminals to reap the profits. Today, we change that.”

The Cannabis Act promises to be a great boon to the Canadian economy. Since 2014, the Canadian medical cannabis industry has grown to include over 100 licensed companies, many of which will be able to expand their sales and research under the new rules. In a year’s time, further rules will come into force that allow the sale of concentrates and edible cannabis products, creating a cannabis food and drink industry. But one of the biggest changes will take place within the industrial hemp industry.

Cannabis without the High

While the term “cannabis” is most often used to refer to plants with psychoactive effects, it actually covers a broader range of crops. One of the most historically prevalent varieties of cannabis is industrial hemp, a form of cannabis grown by companies such as the Marijuana Company of America (OTC: MCOA).

Industrial hemp is distinct from more controversial forms of cannabis — marijuana — in that it does not contain tetrahydrocannabinol (THC), the active ingredient that gets users high, but rather it contains cannabidiol (CBD), which has recently grown in popularity due to its variety of medicinal benefits. Hemp was used for hundreds of years to produce fibers for cloth and rope and was widely grown in North America. But for most of the past century, it has been out of production thanks to broad-ranging anti-cannabis legislation.

The past few years have seen a resurgence for industrial hemp. Legislation created for the cultivation of medical marijuana has created the opportunity for companies such as MCOA to grow hemp in Canada. In the United States, the 2014 Farm Bill created legal space for trial crops of hemp. That bill’s 2018 successor appears set to make it entirely legal in the United States, allowing farmers to grow a highly profitable new crop.

The passing of the Cannabis Act will further improve the potential of hemp in Canada, as it will allow producers to extract cannabidiol (CBD). Cannabidiol is an active ingredient that’s commonly found in high concentrations in certain varieties of industrial hemp. It doesn’t have the psychoactive properties of THC but has been shown to have beneficial effects on health. As a result, it’s used in a growing variety of health and wellness products, including MCOA’s brand hempSMART.

Using the Whole Plant

Up until now, Canadian hemp producers have been limited in what they can do with the plant. The seeds could be extracted and used; fibers could be turned into textiles; and leftover elements known as hurds could be turned into either animal feed or construction materials. The use of leaves and flowers was specifically prohibited.

The Cannabis Act allows for a broader range of uses. Health Canada has proposed the introduction of new industrial hemp licenses to make this a reality. Under the proposed system, industrial hemp producers will be able to sell the whole plant or any of its parts to other licensed operators within the hemp industry. They could even process it themselves, extracting CBD oil as well as seeds, fibers and hurds.

It’s a change that will create a more efficient and profitable industry, as parts of the plant will no longer go to waste. And growing interest in CBD as a wellness ingredient could lead to a significant rise in income for hemp farmers. Companies such as MCOA, whose operations cover the whole industrial chain from hemp production to the sale of CBD products, will be able to build solid, sustainable supply chains that maximize profits at every step.

This is all before taking into account the possibility of agricultural subsidies. There is currently disagreement within Canada over whether cannabis growers will be eligible for subsidies under existing rules, but with the arrival of cannabis-based foods and beverages next year, lines will become increasingly blurry. MCOA and its joint venture partner, Global Hemp Group Inc., have received financial support from Canadian government agencies to research hemp cultivation. As the commercial landscape changes, hemp producers may soon find themselves eligible for even more government help.

Sowing the Seeds for a Growing Industry

MCOA’s growth in the Canadian hemp sector comes through its establishment of a high-yielding CBD hemp cultivation project in New Brunswick (NB). This collaboration with Global Hemp Group has revived hemp cultivation in the region 20 years after a previous effort failed.

The joint venture partners are in process of completion of the first phase of what is known as the Hemp Agro-Industrial Zone, or HAIZ. The aim of the HAIZ is to provide a steady supply of hemp by building a local industrial cluster, guaranteeing a market for farmers and leading to year-round jobs for others in the region. Through trial crops and careful measurement of the results, the project is providing valuable data on important issues such as pests, fertilizers and growth rates.

Recent developments at the site include the installation of drying equipment in preparation for processing. In the short term, this will allow the company to effectively store its current harvest until it can be sold and processed under the rules coming in October. In the longer term, it will increase its options for growing, processing and selling hemp. The joint venture partners are currently in the process of negotiating off-take agreements with extraction companies to sell the biomass produced during the October harvest in New Brunswick.

MCOA and its partners in New Brunswick have been finding ingenious ways to improve techniques impeded by decades outside the law. This year, the team in NB experimented with a modified bean harvester to strip leaves and flowers from the plants without picking up much straw. Based on the results, this technique is being extended to the entire 125-acre project.

Cannabis Cultivation Creates New Industry

In less than two decades, a whole new industry has grown up around the cultivation of hemp and other forms of cannabis. Even with restrictions still tight in much of the world, companies are finding ways to legally profit from these crops.

Isodiol International, Inc. (OTC: ISOLF) has become an important and active voice for the industry, employing former NFL player Marvin Washington as a director and spokesperson. The company has developed a variety of cannabis and CBD-derived products, tapping into the medical and vaping markets. Its KURE Corp subsidiary provides a strong retail front and has recently set its sights on further expansion through new and acquired shops.

A prominent player within the industry, Aurora Cannabis, Inc. (OTC: ACBFF) is making the most of a young market to rapidly expand its business. A $150 million loan from the Bank of Montreal is giving it a short-term financial boost to get ahead of the long-term game. It’s this sort of long-term thinking that has led the company to acquisitions such as the takeover of MedReleaf, increasing Aurora’s market share. Some commentators have compared this strategy with that of Amazon, focusing on market dominance as the route to profit.

Organigram Holdings, Inc. (OTC: OGRMF), a medical cannabis company, is preparing to expand into Canada’s recreational market in October. The company has established a number of agreements with other companies, most recently the Nova Scotia Liquor Corporation, to supply its products to stores. These agreements will ensure that the legal recreational market quickly grows from a principle to a reality.

Emerald Health Therapeutics (OTC: EMHTF) is also setting up supplier agreements to give it a place in the recreational starting lineup. Its partners include the Newfoundland Labrador Liquor Corporation and Ontario Cannabis Retail Corporation.

The Canadian cannabis industry is set to experience a transformation on October 17, one that will prepare companies to expand as laws change elsewhere in the world. From medical cannabis companies to hemp growers, many business enterprises are likely to profit from this change.

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

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

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

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

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

The Opioid Epidemic

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

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

An Alternative to Opioids

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

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

A Healthier Option?

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

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

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

Applied Medicine

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

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

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

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

Cannabis Companies Explore Potential of CBD

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

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

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

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

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

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

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

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

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

Senate Signals Support for Cannabis Seedbank

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

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

Building Better Strains

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

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

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

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

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

More Facilities for a Growing Market

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

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

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

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

A Growing Global Industry

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

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

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

More Companies Signal Strong Future

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

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

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

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

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

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

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

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Acquisitions and Growth Expand in Canadian Cannabis Market

CannabisNewsWire Editorial Coverage: The first wave of companies to enter the Canadian cannabis industry were grounded in medical marijuana, which was legalized in 2001. As the country prepares for legalized adult recreational-use this summer, new recreational brands are joining the scene, and many companies rooted in medicinal cannabis are taking action to participate in this second wave of the Canadian market. With its strong branding and modern store design, Choom Holdings, Inc. (CSE: CHOO) (OTCQB: CHOOF) (CHOOF Profile) is branded to appeal to the Canadian adult consumer ready to experience the cannabis lifestyle. Aurora Cannabis, Inc. (TSX: ACB) (OTCQB: ACBFF) is making strategic investments to establish footing in the recreational sector, while OrganiGram Holdings, Inc. (TSXV: OGI) (OTCQB: OGRMF) is taking measures to increase its production capacity ahead of a surge in product demand. Supreme Cannabis Company, Inc. (TSXV: FIRE) (OTC: SPRWF) has entered into multimillion-dollar agreements to supply cannabis to retail-oriented companies, and in Quebec, Hydropothecary Corp. (TSXV: THCX) is expanding its greenhouse capacity to potentially increase its cannabis production to 30x its current volume.

Highs Coming for Canadian Cannabis

As established companies get serious about brand expansion, supply agreements, and potential retail revenues, investments within Canada’s cannabis sector are soaring. The industry saw $1.2 billion investments in January alone – a 600 percent increase over the previous year – setting an incredible pace for continued growth. Currently, the State of California is the largest legal cannabis market in the world. With a population nearly as large as California’s and an influx of cannabis capital, Canada is on track to potentially become one of the world’s largest recreational-use markets. The country’s combined medicinal and recreational market size is expected to reach $6 billion by the year 2021, surpassing the value of its whiskey and spirits industry.

While the Canadian cannabis industry has found impressive success with medicinal marijuana in recent years, a different approach will be needed to target recreational consumers. Cannabis producers that recognize this tremendous potential are pursuing investments in recreational brands that appeal to the retail market. One of Canada’s most recognizable cannabis producers, Aphria, Inc. (TSXV: APH) (OTC: APHQF), recently shelled out $230 million to acquire recreational brand Broken Coast – one of many M&A deals within the burgeoning industry.

A Relaxed Brand for a Relaxing Product

One of the new companies looking to stake a claim in the recreational market is Choom Holdings, Inc. (CSE: CHOO) (OTCQB: CHOOF). Choom is based in British Columbia, though its hip, modern brand has been designed around the tropical, relaxed ambiance of Hawaii. The company’s name, “Choom”, and style invoke Hawaiian culture, in particular easy days on the beach and in the countryside enjoying a casual atmosphere that connects with relaxation, which fittingly is one of the main appeals of cannabis. The company’s name, Choom, which means “to smoke marijuana” – comes from a slang word used by a fun-loving group of friends (including former U.S. President Barack Obama) who grew up together in Hawaii during the 1970s.

This relaxed, friendly and informal approach to selling cannabis is designed to tap into a younger market with socially liberal values and disposal income to spare, and differs radically from the marketing focus of medical marijuana companies. The look and feel more closely resembles a food or alcoholic beverage brand, evoking warm feelings instead of healing/medicinal properties, which are the focus of established brands. In short, it’s exactly the sort of approach the recreational cannabis industry will need.

Moving forward, the advantage in the legal cannabis sector seems likely to go to companies such as Choom, which are able to innovate with their branding, creating appealing lifestyle choices. Strict limitations on advertising cannabis will prevent the big medical marijuana players from using their financial clout to dominate the market through saturation advertising, which will create a space for young brands such Choom to grow via agile, modern techniques where traditional approaches aren’t an option.

From Seed to Sale

Choom appears to have another market advantage with its vertical integration. The business has a seed-to-sale model that covers the whole cannabis pipeline, from growing and processing the plants to selling the final product in its own stores. This control over the entire business process allows the company to maximize efficiencies and ensure integration along the supply chain.

This advantage starts in the growing facilities, where Choom will fully oversee the growth of carefully crafted strains of cannabis. Existing facilities are planned for Vernon and Chemainus, Canada, to ensure that the company is prepared for the market as soon as possible. Choom is refitting both facilities, a process scheduled to be complete by July, with more than 13,000 square feet of growing space in planning.

Choom has announced a clear plan for its move into this market. With the Canadian cannabis market expected to see dramatic growth in early stages, the company has capacity to expand as needed. A second phase of expansion is in place for both facilities, which will significantly increase the growing space and allow for doubling crop yields by early 2019.

At the sale end of this supply chain are Choom’s dispensaries, which are designed with a clean, stylish, and modern feel, much like a more relaxed version of an Apple store, a favorite of millennials and those with disposable income. These stores have been envisioned to appeal to two different but important market sectors. One is existing cannabis users, who will be looking for more convenient ways to buy their product once the law changes. The other is the group of “curious customers,” who weren’t willing to use cannabis while it was illegal but are interested in trying it now. Choom’s relaxing retail space is designed to draw in customers from both sides, quickly building up a strong high street brand.

Preparing for Change

To power further growth, the company also recently completed a financing initiative, exceeding expectations and raising CAD $2.7 million (http://cnw.fm/AkT9x). The funds are being invested in advancing the company’s development strategy, as well as for growth and acquisitions.

Having recently released the retail design for its dispensaries (http://cnw.fm/DIl3r), Choom is readying those facilities ready for legalization as well. And with the official launch of its retail program, the company has created the opportunity to develop a chain of branded cannabis dispensaries across Canada (http://cnw.fm/jqn8I).

“Choom is using design and retail strategies that have worked successfully at some of the most profitable storefronts in the country. We are telling our Choom story with our stores and will elevate the concept of a high-quality product though our new retail environments, and we’re inviting others to join us,” Choom president and CEO Chris Bogart stated in the press release.

As the legal cannabis market prepares to open in Canada, Choom appears to have all the pieces in place to create a national premium recreation brand.

A Sector in Waiting

As the creation of Canada’s legal recreational cannabis sector approaches, other companies are also preparing for the change.

One of Canada’s biggest cannabis producers, Aurora Cannabis (TSX: APH) (OTCQB: APHQF), is investing in a range of related companies to set itself up for expansion into the recreational sector. The Vancouver-based organization has invested in The Green Organic Dutchman, a company that produces farm grown, organic, pesticide-free medical cannabis in small batches using all natural, organic craft growing principles. It has also teamed up with Liquor Stores NA Ltd. (TSX: LIQ) to convert existing retail outlets into cannabis retail stores.

Another licensed producer of medical marijuana, OrganiGram Holdings (TSXV: OGI) (OTCQB: OGRMF), recently received an expanded cultivation license from Health Canada, enabling the company to move forward with its expansion strategy that would increase current capacity from approximately 5,200 kg/year to an estimated 16,000 kg/year. Its longer-term plan is to increase production to 65,000 kg/year over the next two years.

Supreme Cannabis Company (TSXV: FIRE) (OTC: SPRWF) has made its mission to grow sustainable cannabis companies to cater to the growing recreational market. To this end, it has invested in late-stage ACMPR applicant company BlissCo, and has agreed to provide cannabis to that company through its 7ACRES subsidiary. 7ACRES will also supply cannabis to Namaste (CSE: N) (FRA: M5BQ) (OTC: NXTTF) subsidiary, Cannmart.

Quebec-based Hydropothecary (TSXV: THCX) has signed a letter of intent with Société des alcools du Québec (SAQ) to supply 20,000 kg of cannabis to Quebec’s recreational cannabis market in its first year of operation. This recent announcement follows news in December that the company added 78 acres of land adjacent to its existing 65-acre facility, and that it is working on a 1 million-square-foot greenhouse designed to increase its production to 108,000 kg per year, 30 times the current capacity.

Based on all forecasts, Canada’s cannabis market is set for significant expansion in 2018. New actors and existing medical companies alike are preparing to seize this opportunity through production, distribution, and retail growth. With a clearly defined growth strategy, Choom Holdings is demonstrating its intention to rapidly become a recognizable national brand.

For more information on Choom Holdings, please visit Choom Holdings, Inc. (CSE: CHOO) (OTCQB: CHOOF)

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