CannabisNewsWire
Editorial Coverage: Recent growth in the market for cannabidiol
(CBD) products has been strong and appears poised to continue.
- CBD is an active ingredient derived from industrial hemp that
does not contain the psychoactive or “high” effect of
marijuana.
- CBD is used in a wide range of products, from cosmetics to pet
supplements.
- The recent acceptance of a CBD-based medicine by U.S.
authorities creates potential for legal change that could make the
sale of CBD easier.
- Attention in the mainstream press has created a measure of
gravitas for CBD.
Marijuana Company of America Inc. (OTC: MCOA) (MCOA
Profile) has produced a diverse range of CBD products
to promote well-being. Cannabis company Canopy Growth Corp.
(NYSE: CGC) has created a range of CBD oils for its
customers while expanding its global reach. Aurora
Cannabis, Inc. (OTCQX: ACBFF) provides pain relief through
a range of cannabis strains and is set to expand its R&D
potential through a takeover. Terra Tech Corp. (OTC:
TRTC) provides equipment to cultivate cannabis and would
benefit from a change in the legal landscape alongside its
customers. PotNetwork Holding, Inc. (OTC: POTN)
holds several subsidiary companies benefiting from cannabis and CBD
products, thanks to the diversity of the sector.
U.S. Authorities Consider Legal Changes
For decades, federal rules have held back cannabinoid-derived
medicines in the United States. Though the majority of states now
allow medical marijuana and associated cannabinoid-derived
products, national legislation is still grounded in the war on
drugs. The cannabis and hemp plants are classified as a Schedule I
drug, meaning that it is legally seen as both dangerous and without
medical benefits. Even treatments using cannabidiol (CBD), an
active ingredient found in hemp and cannabis that is
nonpsychoactive, currently fall under this classification.
That may be about to change. Following the Food and Drug
Administration’s (FDA) ground-breaking acceptance of prescription
drug Epidiolex, the future of CBD products for medicinal use
appears to be up in the air. Meanwhile, legislation from both sides
of America’s political divide offers the possibility of bigger
changes.
Tackling the Law
Progress on the legal status of CBD is being eagerly watched by
companies such as Marijuana
Company of America, Inc. (OTC: MCOA). With a focus on
industrial hemp and hemp-derived cannabidiol products, MCOA doesn’t
produce and sell medical or recreational marijuana. But because
hemp products are derived from the same family of plants, they fall
under the same stigmas associated with the plant.
Increasingly liberal legislation at the state level has allowed
companies such as MCOA to thrive in the United States. But that
evidence-based liberalization is in conflict with the federal
government’s decades-long prohibition, which some within the
current conservative government are looking to reinforce rather
than relax.
Despite this, the FDA approved CBD-based
Epidiolex in June. Epidiolex has been developed to counter the
seizures brought on by two rare ailments. Its approval for sale as
a prescription medicine doesn’t mean that similar medications will
automatically be approved, but it does open the possibility. In
light of the approval, repeated calls have been made for the FDA to
look again at the scheduling of certain cannabinoids and the
broader picture of cannabis-derived medicines.
At the same time, several pieces of legislation that could
change CBD’s status are being considered
by Congress. Some of those are actually being proposed by
Republicans, making it appear less likely that they will be blocked
by America’s more conservative party. It looks increasingly likely
that rescheduling or other legislative changes may soon make it
easier for companies to cultivate industrial hemp as well as
produce and market CBD products.
When such change comes, companies with a wide array of products
are likely to be the ones that will benefit most. With a range that
already runs from pain treatment to therapies for pet care and
memory enhancement, MCOA’s line of products is representative of
how versatile the use of CBD can be. A loosening of restrictions
would make it easier to both broaden this selection and make it
available to a wider market.
CBD Goes Mainstream
The growth of companies such as MCOA is helped by increasing
mainstream attention on CBD. Forbes has reported
on research into the product by the World Health Organization.
Esquire has profiled the rise and diverse uses
of this ingredient. The Washington Post
has explored the growing popularity of CBD among celebrities,
consumers and wellness professionals.
Because CBD doesn’t get a user high, it might seem strange that
the marijuana derivative is becoming one of the most popular
hemp-derived products. But the wellness market is big business in
America as consumers clamor for ways to improve their energy levels
and reduce the low-key aches and pains of everyday life. CBD’s
reputation for improving health is making it popular among people
who want the reported medical benefits without having to deal with
the high.
The result is a fast-growing market. Consumer sales of CBD
amounted to $262.2 million in
the United States in 2016, more than double what they had been
only two years before. Based on the market’s ongoing growth,
analysts have predicted that the market will hit the billion-dollar mark by 2021.
More than half of
CBD consumers take the products every day with anxiety,
anti-inflammation and joint pain being the top symptoms the
products are designed to impact. Successful treatment of these
conditions would likely create a large base of long-term
consumers.
The Varied Uses of CBD
This large and growing consumer base is looking to CBD for
potential impact on a wide range of wellness concerns. The ability
of companies such as MCOA to provide a range of products aimed at
these symptoms would allow those companies to tap into a broad
share of the market. MCOA’s hempSMART™ products are a great example
of how many uses a single company can find for CBD.
HempSMART Brain is a patent-pending nootropic product designed
to support natural brain function, which fits with what many
consumers expect from CBD because the product is focused on the
mind. These innovative capsules can be taken to support alertness
and concentration.
HempSMART Pain is designed to provide relief from pain
associated with physical activity by combining CBD with botanical
supplements. Their hempSMART Pain Cream is designed to provide
temporary relief from and soothe sore, aching muscles and
joints.
The company most recently launched a new cosmetic product,
hempSMART Face, a CBD facial moisturizer that has been designed to
refresh, replenish and restore skin cells on the face. And perhaps
most surprising is the company’s offering of sublingual CBD
tinctures, including hempSMART Full-Spectrum Drops and hempSMART
Pet Drops, a bacon-flavored supplement formulated to provide cats
and dogs with renewed energy as well as a tasty treat.
Such a diverse range of products could help a company such as
MCOA attract the attention of CBD consumers. It
might also allow consumers to use CBD in more areas of their lives,
expanding the CBD market.
Companies Set to Benefit
It’s not just the variety of CBD products that bodes well for
the industry — it’s also the range of companies. If the legal
status of cannabis and cannabis-derived products changes, an entire
sector is set to benefit.
Canopy Growth Corp. (NYSE: CGC), a leading
player in retail cannabis, is using its research in the area to
create CBD oils. By balancing the ratio of CBD and THC within its
oils, Canopy Growth caters to differing wellness needs. Already a
trusted player within the Canadian market, the company has acquired a subsidiary in the Kingdom of Lesotho and
established another in Latin America. By
looking to the wider world, the company is further expanding the
global market for cannabis and CBD products.
One of the leading areas of interest for CBD is in pain relief.
Aurora Cannabis, Inc. (OTCQX: ACBFF), one of the
largest cannabis companies in the world, has established a strong
position in this sector. The company has developed a large range of different strains of medical cannabis
that can be used in developing new products as well as in retail.
The Canadian Competition Bureau recently approved a takeover of MedReleaf Corp. (TSX: LEAF), a
research-oriented company, by Aurora, leaving the company in a
stronger position to make the most of the coming changes.
Rescheduling cannabis would benefit not just the companies
selling cannabis and CBD products but also those supporting them.
Terra Tech Corp. (OTC: TRTC) is a producer of
environmentally friendly growing systems for cannabis growers. Its
hydroponic systems use moving tables and recycled waste water to
increase yields and reduce costs. As it becomes easier to grow and
market cannabis, more growers may turn to Terra Tech for the
equipment they need.
The maturity of the CBD and cannabis sector has also led to the
emergence of several holding companies, including
PotNetwork Holding, Inc. (OTC: POTN). This
company’s subsidiaries include Diamond CBD, First Capital Venture
and PotNetwork. Through these entities, PotNetwork benefits from
growth across different parts of the industry, as well as
supporting other companies in their expansion.
The market for CBD and other cannabis-derived products is
already strong. With the prospect of legal rescheduling
increasingly likely, these companies seem poised to benefit from
changing attitudes in the United States and beyond.
For more information on Marijuana Company of America, visit
Marijuana
Company of America, Inc. (OTC: MCOA)
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