CannabisNewsWire
Editorial Coverage: Restrictions in the United States on
cannabidiol (CBD), an active ingredient in cannabis, appear likely
to loosen over the next few months, creating opportunities for CBD
production and distribution companies.
- CBD is an active ingredient with medical benefits but no
“high”, or pyshcoactive effects.
- The Food and Drug Administration (FDA) has approved a CBD-based
medicine for the first time.
- Companies are cultivating hemp to develop high yielding CBD
plants.
Marijuana Company of America, Inc. (OTC: MCOA) (MCOA
Profile) is cultivating industrial hemp for CBD
propagation at sites in the United States and Canada while
continuting to develop and manfuacture CBD-based products for its
hempSMART™ brand. Cronos Group, Inc. (NASDAQ:
CRON) is expanding its global reach for cannabis products
through deals covering the United States, Canada, Australia and
Poland, as this sector of the economy goes global. CV
Sciences, Inc. (OTC: CVSI) is providing a clean bill of
health for its CBD wellness products. Terra Tech Corp.
(OTC: TRTC) is providing advanced hydroponic growing
systems that increase crop yields and reduce costs for CBD-oriented
companies. Manufacturer Liberty Health Sciences (OTC:
LHSIF) produces cannabis in facilities recently certified
as meeting high standards for manufacturing.
FDA Leads the Way to Reclassify Cannabidiol
The market for cannabis and hemp products has seen a low-key but
potentially huge step forward in recent weeks. For the first time,
the FDA has approved a medicine
that uses cannabidiol (CBD) as its active ingredient. CBD is a
compound that can be found in the hemp and cannabis plants, but
unlike tetrahydrocannabinol (THC) it does not get users high.
Repeated studies have demonstrated the beneficial effects of
cannabinoids. As a result, cannabis products have been approved for
medical use in many states, but this is the first time that a
cannabinoid-based CBD product has been approved at the federal
level. This approval represents a softening of the federal
government’s attitude. CBD was previously classified as a Schedule
I drug by the Drug Enforcement Agency, but this body is now
expected to change its stance within the next three
months, allowing the possibility to manufacture products that
would currently be banned on the national level. This possibility
represents a huge moment for the CBD industry.
Better Plants for Better Health
One of the companies likely to benefit from this change is the
Marijuana Company of America, Inc. (OTC:
MCOA). The company is focused on the cultivation of
industrial hemp and the manufacturing of hemp-derived CBD products,
and is expanding its operations to better serve its growing
market.
The most recent addition to the company’s operations is an
industrial hemp cultivation site in Scio,
Oregon. Created in collaboration with Global Hemp Group (GHG),
this is a 109-acre site in the Willamette Valley. With its rich
soil and pre-existing irrigation infrastructure, the valley
provides an ideal location for an agricultural project that has
already been home to cannabis cultivation in the past.
The Scio facility uses a mixture of cultivation practices. It
has 19,000 square feet of greenhouse growing space under
construction alongside fields for outdoor crops. This will allow
the company to produce a steady supply of hemp all year, with
high-yield plants ensuring a significant volume of output.
One of the main aims of the team working at Scio is to encourage
plant strains that have a particularly high yield of CBD. Careful
data collection and analysis are being used to
assess the quality of plants and the effectiveness of techniques
used to grow them. The expected change in the legal status of CBD
in the United States will make it easier for MCOA to conduct
research and cultivate CBD rich industrial hemp like at the Scio
site, and for patients to have access to the products that come
from it.
Working with Government to Improve
Agriculture
MCOA and GHG are also collaborating on a similar project in New
Brunswick, Canada, on a much larger scale. For this project, the
two companies are working with the New Brunswick Department of
Aquaculture, Agriculture and Fisheries (DAAF) to explore better
approaches to growing hemp.
With markets for hemp and CBD reaching greater maturity, the
DAAF has shown its faith in the future by awarding a grant of $10,750 to the joint MCOA and GHG
venture in the region. These funds will be used on test projects
for the current crop season, which will allow the companies to
improve their cultivation techniques.
These government-funded tests are focused on three areas, two of
which are looking at soil conditions to identify the best levels of
nitrogen fertilizer for crops and whether soil acidity can be
effectively adjusted using local supplies of slag lime. The third
area of study is the European corn borer, a moth that damages crops
and that has been a pest to farmers in the region. Damage from
borers was found on hemp stalks last year, so the companies will be
looking at the impact this damage could have on cultivation.
The latest technology is being used to ensure the success of
these tests. A drone company has been employed to provide overviews
of growth across hemp fields because the height of the stalks and
density of cultivation makes assessment by other means difficult.
With agricultural experiments underway in both Canada and the
United States, MCOA has multiple opportunities to cultivate better
CBD crops.
In New Brunswick, the two companies have created what they refer
to as the Hemp Agro-Industrial Zone (HAIZ), where they are carrying
out trials of hemp cultivation targeted at developing the industry
in the province. By exploring cultivation techniques, ensuring a
market for the product and providing consistent jobs for local farm
workers, they aim to create a green-industry cluster specializing
in hemp.
Creating Wellness
MCOA isn’t just a cultivation company. It is manufacturing its
hemp crops into a wide range of products formulated to improve the
well-being of customers.
Much of this work is carried out through hempSMART, the company’s most prominent consumer
brand. HempSMART creates CBD-based wellness products and provides
consumers with education about the potential benefits CBD may
provide. Many consumers don’t understand the difference between CBD
and THC products. Through hempSMART, MCOA is raising awareness
while reaching out to a growing market.
The most recent release from hempSMART is the relaunch of its hempSMART Brain product. This version
doubles the dose of CBD from the original, combining CBD oil with a
blend of natural plant-based ingredients. Designed to maintain
mental clarity, alertness, focus and concentration, as well as
promote relaxation, restorative sleep, and the repair and
regeneration of brain cells, hempSMART Brain is a flagship product
that demonstrates MCOA’s wellness agenda. With the prospect of a
change in the CBD compound’s legal status in the United States,
companies such as MCOA will have more opportunities to develop and
sell these types of products, spreading CBD-based wellness.
Growing Companies Profit from Changing
Regulations
A range of companies in the cannabinoid sector will be in a
position to profit from this change. Cronos Group, Inc.
(NASDAQ: CRON) is demonstrating the global potential of
cannabinoid products. The North American company already has a
cross-border deal that allows it to make use of
advances in both Canada and the United States. In addition, Cronos
was recently granted a manufacturing license to produce
cannabis-based products in Australia, and a new Polish distribution
agreement will give the company a foothold in the European
market.
CV Sciences, Inc. (OTC: CVSI) is firmly focused
on the CBD sector. The company has two parts: a drug development
division exploring novel CBD-based treatments and a consumer
product division that manufactures, markets and sells the resulting
products.
Some companies are focused on providing support and equipment
for CBD cultivation. Terra Tech Corporation (OTC:
TRTC) has created a hydroponic growing system that uses
moving tables to increase yields by up to 30 percent while reducing
costs by up to half. Its energy efficiency and recycling of waste
water means that the company’s systems live up to the expectations
of green-minded consumers.
Liberty Health Sciences (OTC: LHSIF) works in
the medical cannabis market. As it acquires and operates U.S.-based
cannabis companies, its aim is to produce safe, high-quality
cannabis for patients. It has recently received
Good Manufacturing Practice certification for its high
standards of safety, consistency and quality.
Given the growing number of players in the cannabis market, a
shift in the classification of CBD on a federal level could have a
tremendous impact. For companies already focusing on CBD products,
a huge opportunity for growth in the United States may be on the
horizon.
For more information on Marijuana Company of America, visit
Marijuana
Company of America, Inc. (OTC: MCOA)
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