On Dec. 20, President Trump signed the Agriculture Improvement Act of 2018 into law, legalizing hemp in the U.S. Among other things, this new law changes certain federal authorities relating to the production and marketing of hemp, defined as cannabis (Cannabis sativa L.), and derivatives of cannabis with extremely low (less than 0.3% on a dry weight basis) concentrations of the psychoactive compound delta-9-tetrahydrocannabinol (THC). These changes include removing hemp from the Controlled Substances Act, which means that it will no longer be an illegal substance under federal law.
New York City-based Acreage Holdings (OTCMKTS:ACRZF), which owns cannabis licenses and assets in different U.S. states, announced that its partner Greenleaf Gardens was awarded a Level 1 provisional cultivation license by the Ohio Department of Commerce. Acreage maintains a management services agreement with Greenleaf. The new cultivation and processing facility will open in Middlefield, Ohio and deliver product to Greenleaf and other Ohio dispensaries during 2019 and beyond.
Vote Hemp, the U.S.’s grassroots hemp advocacy organization working to change state and federal laws to allow commercial hemp farming, says that it welcomes the federal legalization of hemp farming in the U.S. The 2018 Farm Bill, passed by Congress on December 12, 2018, and signed into law by the President on December 20, 2018, includes Section 10113 titled “Hemp Production,” which removes hemp from the Controlled Substances Act, places full federal regulatory authority of hemp with USDA, and allows State departments of agriculture to file hemp programs plans and regulate hemp cultivation per their State specific programs.
1933 Industries (OTCQX: TGIFF), a licensed cultivator and producer of cannabis flower and concentrates and manufacturer of hemp/CBD products in Nevada, Colorado and California, reported record quarterly sales revenue during the three months ended October 31, 2018 – which the company calls its first quarter of 2019. Consolidated revenues for quarter was $4.62 million, up 46% compared to the same quarter last year. The company booked a loss of $3.05 million, versus a loss of $570,695 for the same last year’s quarter. We will cover the full report later today.
Manitoba Harvest, which focuses on hemp food, reported that the company’s complete line of hemp seeds, oil and protein powder have received Food and Drug Administration (FDA) clearance as generally recognized as safe (GRAS). In a press statement, the company said that “this is a historic first for the hemp industry, as Manitoba Harvest is the only company to proactively gather and provide the scientific evidence necessary to affirm this sought-after Food and Drug Administration designation, which recognizes a substance as safe among experts.”
Therapix Biosciences Ltd. (NASDAQ: TRPX), a specialty, clinical-stage pharmaceutical company focusing on the development of cannabinoid-based treatments, has delivered notice of termination to FSD Pharma under the previously-announced binding letter of intent (LOI) for the acquisition of the company by FSD. FSD proposed to modify material terms of the transaction established by the LOI. Therapix Biosciences says that its board of directors does not believe it will come to agreement on revised terms. Therefore, the board has determined that it is in the best interests of the company to terminate the LOI, which will terminate on December 26.