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, âWith todayâs signature, my provision to legalize industrial hemp is one step closer to reality.â
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, âIf
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, âOnce 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.â
Tilray, Inc. (NASDAQ: TLRY), talking about being ready to capitalize on the Farm
Bill, said on the companyâs
third-quarter earnings call, âTilrayâs $500 million in cash, its
Nasdaq-listing and its global reach âgives us advantages to very
quickly deploy capital in the U.S.â if Congress passes the farm
bill, which would legalize non-intoxicating cannabidiol derived
from hemp.â
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. âThis 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.â
CNN, reporting on the Cronos deal sees this partnership and others benefiting even more with the passing of the Farm Bill, âCongress 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.â
Benchmark Co. analyst Mike Hickey is betting on Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) to be a winner from the passing of the Farm Bill.
MarketWatch reported, âHickey 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 governmentâs list of controlled substances and is expected to open the market for rapid expansion.â
Continued: âWe 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,â 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 âifâ. American Premium is focused on harnessing the powers of its âhydro-nanoâ 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 Healthâs product Ouchie, (www.ouchie.com) a pain management app and platform targeting the over 120 million Americans who live with chronic pain. Ouchieâs 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 productâs 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 countryâs 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 âHemp legalization included in new farm bill could 'open the floodgates' on nascent industryâ 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
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