U.S. Senate Majority Leader Mitch McConnell Gets Twitter Buzzing with Tweet on Farm Bill
POINT ROBERTS Wash., Dec. 11, 2018 (GLOBE NEWSWIRE) -- Investorideas.com, a leading investor news resource covering hemp and cannabis stocks releases a snapshot looking at the growing opportunity in the sector with the expected imminent passing of the US 2018 Farm Bill.
Senate Majority Leader Mitch McConnell got the Twitter space buzzing today when he said, “With today’s signature, my provision to legalize industrial hemp is one step closer to reality.”
For investors, the big question is what does this mean for the sector when it passes?
Cabot Wealth said last week in an article, What the Farm Bill Means for Cannabis Stocks, “If the Farm Bill passes with hemp legalization intact, it could herald boom times for the CBD industry, with giant retail players like Walgreens and CVS and Walmart becoming the biggest retailers. In fact, Bethany Gomez, the director of research for the cannabis research firm Brightfield Group, said, “Once CBD is fully legalized, we expect that market to absolutely explode, with sales hitting $22 billion by 2022, which is higher than the U.S. cannabis industry.”
Tilray, Inc. (NASDAQ: TLRY), talking about being ready to capitalize on the Farm Bill, said on the company’s third-quarter earnings call, “Tilray’s $500 million in cash, its Nasdaq-listing and its global reach “gives us advantages to very quickly deploy capital in the U.S.” if Congress passes the farm bill, which would legalize non-intoxicating cannabidiol derived from hemp.”
Making headlines in the sector recently, with news on December 7th that Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) entered into a subscription agreement with tobacco company Altria Group, Inc., Altria agreed to make an approximately C$2.4 billion equity investment in Cronos Group. “This strategic partnership provides Cronos Group with additional financial resources, product development and commercialization capabilities, and deep regulatory expertise to better position the Company to compete, scale and lead the rapidly growing global cannabis industry.”
CNN, reporting on the Cronos deal sees this partnership and others benefiting even more with the passing of the Farm Bill, “Congress may finally pass the Farm Bill which would make it legal to produce hemp and potentially open the door for more products containing cannabidiol or CBD.”
MarketWatch reported, “Hickey is expecting the Farm Bill to be approved by year-end, effectively legalizing CBD or cannabidiol, the non-psychoactive ingredient in cannabis, which is used in a variety of medical products. The bill would remove industrial hemp from the government’s list of controlled substances and is expected to open the market for rapid expansion.”
Continued: “We believe WEED will invest meaningful capital into the U.S. after CBD legalization and leverage the Constellation Brands manufacturing profile to create CBD beverages; we expect a deployment strategy already firmly in place and will provide for near term growth,” Hickey wrote.
American Premium Water Corporation (OTC: HIPH) CEO and Interim Chairman Ryan Fishoff said, "The passage of the 2018 Farm Bill will remove any lingering roadblocks to the mainstream acceptance of CBD infused products. Once Hemp is legalized, CBD will not be considered the scarlet letter that it is now in some retail circles. The Company won't have to dance around it with our products by calling it hemp or hemp oil; we can go to market 100% full force with CBD branded products and not have to worry about it inhibiting our sales. This will open the door to big box retailers as well; Amazon, Wal-Mart, Krogers and many other large grocery and convenience store chains will not have hesitation carrying these types of products." Fishoff has been betting on the passage of the Farm Bill, thinking it was a matter of when, not ‘if’. American Premium is focused on harnessing the powers of its “hydro-nano” technology paired with cannabidiol (CBD).
His company just announced that it has entered into a letter of intent with the California-based subsidiary of Growpacker, Inc. (https://www.growpacker.com/) which offers local and international brands key services such as manufacturing, co-packing and distribution for THC & CBD infused products. Another building block was put in place on December 6th with American Premium Water Corporation (OTC: HIPH) reporting it entered into a partnership with Upside Health’s product Ouchie, (www.ouchie.com) a pain management app and platform targeting the over 120 million Americans who live with chronic pain. Ouchie’s goal is to empower patients to address pain management through various methods, including new treatments like cannabidiol (CBD) and tetrahydrocannabinol (THC). LALPINA CBD will be offered for sale on the platform, as part of the regimens utilizing CBD. Additionally, the product’s efficacy and impact will be tracked on the platform to further enhance innovation efforts.
Also looking to grab market share in the CBD space and capitalize on the Farm Bill, Cannabis Sativa, Inc. (OTC: CBDS), the US-based marketer and manufacturer of cannabis & hemp products recently announced that it had secured a patent for a CBD lozenge that helps treat hypertension. This opens up a potentially huge medical opportunity for the Company, as hypertension is the one of the country’s biggest ailments, where 7 out of 10 Americans are afflicted with some form of the condition. The global anti-hypertensive drugs market is expected to reach $23.1 billion in size by 2023, according to iHealthcare Analyst Report.
Investors looking to participate in the sector seeing headlines like ‘Hemp legalization included in new farm bill could 'open the floodgates' on nascent industry’ are reminded that just like all sectors, there will be winners and losers and due diligence into the products, marketing and strategic partnering is key.
For investors following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX Marijuana/Hemp Stocks
About Investorideas.com - News that Inspires Big Investing Ideas
This news is published on the Investorideas.com Newswire – News that Inspires big ideas Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp. Disclosure: this news article featuring HIPH is a paid for news release on Investorideas.com – third party , Learn more about costs and our services https://www.investorideas.com/News-Upload/
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: https://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.