NEW YORK, December 13, 2018
NEW YORK, December 13, 2018 /PRNewswire/ --
FN Media Group Presents Potstocknews.com Market Commentary
US lawmakers finally struck a deal for the landmark 2018 Farm Bill on November 29, ending months of partisan debate and kicking off a new era of hemp-derived cannabinoid markets. The bill effectively legalizes hemp growing for the first time in nearly a century, and opens up the possibilities for the production of cannabidiol (CBD). Several companies are primed to benefit from the mainstreaming of CBD, including Green Growth Brands (formerly Xanthic Biopharma Inc)(CSE:GGB)(OTC:XTHCF), Medmen Enterprises Inc. (CSE: MMEN)(OTC: MMNFF), Acreage Holdings Inc. (CSE: ACRG)(OTC: ACRZF), Green Thumb Industries (CSE: GTII)(OTC: GTBIF), and Harvest Health & Recreation (CSE: HARV)(OTC: HTHHF).
Now with a green light to CBD, developers of cannabinoid-infused products are off to the races. Ahead of the Farm Bill's announcement, Green Growth Brands (CSE:GGB) (OTC:XTHCF) established its first-mover advantage in the CBD space with its brand, Seventh Sense.
Seventh Sense is a unique line of CBD-infused beauty products. Green Growth Brands (CSE:GGB) (OTC:XTHCF) aims to have the brand on shelves in all types of retail locations including drug stores, grocery stores, and the company's own chain of stores dubbed The Source.
Containing less than 0.3% tetrahydrocannabinol (THC), the psychoactive ingredient in marijuana, hemp is technically speaking a species of the cannabis plant. However, hemp's medicinal value comes from THC's non-psychoactive cannabinoid cousin CBD, which is already being infused into all types of consumer products, and more are soon to come. With this newly reached agreement, CBD will no longer be in a legal grey area.
CBD's market potential has already been projected to reach $22 billion by 2022 thanks to its non-intoxicating nature. The mainstream potential for CBD products is quite high, even for people uncomfortable with consuming cannabis products that contain the psychoactive cannabinoid, THC.
Back in September, the US Drug Enforcement Agency (DEA) downgraded CBD from a Schedule I drug to Schedule V, allowing for FDA-approved drugs to contain the cannabinoid. The DEA's announcement arrived shortly after rumours began to swirl over leading soft drink bottler Coca-Cola entering the cannabis-infused drink market - only for Coke to back away from the rumours later in October.
Pre-rolled CBD cigarettes are already starting to catch on in popularity, while new beauty products are cropping up with CBD in their list of ingredients-it's official that CBD is going mainstream. Now the market is anticipating a flood of new CBD-infused products to soon hit the market across all 50 states.
The Farm Bill is triggering a CBD wave. Companies with more CBD offerings are better positioned to profit from this growing product category than their competitors that are more invested in unrefined cannabis. The result may ultimately make the "CBD-heavy" pot stocks better long plays than their more THC-friendly peers.
Over the long term, the CBD market is projected to offer a compound annual growth rate of 147% through 2022. Versatility is CBD's strongest factor, given that it can be incorporated into oils, capsules, vapes, infused beverages, edibles, and pretty much any alternative form of consumption you can think of.
Marketing and Retailing the CBD Wave
CBD's popularity continues to grow, as new products hit the mainstream. Several articles and reviews of everything from CBD-infused foods, beverages, to beauty products have been written in the last 6 months from mainstream publications around the world.
Now the task of producers is to get these new products in front of the customer on shelves everywhere. So far there's been a disconnect between producers and mainstream retail outlets-at least until recently.
Led by CEO Peter Horvath whose CV includes C-level roles with Victoria's Secret, American Eagle Outfitters, and DSW, Green Growth Brands (CSE:GGB) (OTC:XTHCF) has a strong strategy in place to spread its products everywhere. With a team that has ties to several other retail giants including Bath & Body Works, getting Green Growth products (including the Seventh Sense brand) on mainstream shelves should be a smooth process.
The Seventh Sense line is comprised of beautiful, efficacious, CBD infused beauty products that will soon be available nationally. Seventh Sense is meant to awaken your body's natural healing system to promote calm, better sleep, happiness and health, through a variety of forms, including body wash, lotions and balms, hair care, lip balm and sun products.
Given CBD's rapidly growing popularity, several outlets will be seeking out products to sell with the newly-legalized ingredient. The mainstream appeal of CBD products isn't just restricted to the US, as Walmart Canada is pondering the possibility of selling cannabis products north of the border as well.
The potential for new CBD products is seemingly limitless, now that US farmers will likely be ramping up the growth of hemp, coupled with new developments always on the horizon.
Beyond Seventh Sense, Green Growth Brands (CSE:GGB) (OTC:XTHCF) is bringing the market several offerings, including its super chain of dispensaries called The Source (where all types of products are sold), an outdoorsy/active living brand called CAMP brand, a surf culture Meri + Jayne brand, and its feminine targeted Green Lily botanical products.
The company has the potential to develop several more brands and products thanks to its state-of-the-art, patent-pending developer brand Xanthic Biopharma. Xanthic has developed a proprietary process to make both THC and CBD water soluble.
Water solubility is perhaps the keystone of new product development for cannabinoids. Many more products from beauty products to edibles and drinks could spawn from this technology.
Armed with water-soluble CBD (and THC), along with ties to retail shelves all over the country, Green Growth Brands (CSE:GGB) (OTC:XTHCF) has all the tools to capitalize on the newly legalized CBD landscape.
Additional CBD Beneficiaries
Much like Green Growth Brands and its flagship The Source chain, MedMen Enterprises Inc. (CSE: MMEN) (OTC: MMNFF) is primarily focused on the cannabis retail sector. MedMen recently announced signing a definitive agreement to acquire the retail operations and license for a location in Santa Ana, California through an all-stock transaction. The acquisition was to position the company in the affluent Southern California district which currently has a limited number of licensed dispensaries. MedMen already carries an array of CBD products, including its Wellness line of high CBD (no THC) offerings including a vape pen, drops, and gels.
New products and offerings are also on the way from Acreage Holdings Inc. (CSE: ACRG) (OTC: ACRZF), which recently acquired Form Factory Inc., a multi-state manufacturer and distributor of cannabis-based edibles and beverages. Acreage acquired Form Factory in an all-stock transaction valued at $160 million. Form Factory's expertise is as a one-stop-shop for developing, manufacturing, and distributing cannabis products of any form, which now will be under the Acreage Holdings umbrella. Acreage's goal now is to become the first national cannabis Consumer Packaged Goods (CPG) company, capable of creating and distributing predictable and scalable proprietary brands, nationally, and potentially delivering those goods to traditional non-cannabis CPG companies such as Nestle, Mars or Procter & Gamble.
Another significant entry into the Nevada cannabis retail space is Green Thumb Industries (CSE: GTII) (OTC: GTBIF), which recently acquired Integral Associates. Through the Integral acquisition, GTI just picked up three nationally-recognized dispensaries operating under the Essence brand, including the first and only dispensary on the Las Vegas Strip. As well, the deal included two world-class cultivation and processing facilities in Desert Grown Farms and Cannabiotix NV, which has been recognized as a High Times Cannabis Cup award winner several times over.
Vertically-integrated Harvest Health & Recreation (CSE: HARV) (OTC: HTHHF) recently announced a joint venture with Aina We Would, LLC, to create a national real estate investment vehicle with up to $100 million in committed Capital for approved projects. The new entity plans to focus on serving clients in the cannabis marketplace with plans to buy, develop and finance new construction projects, engage in land purchases, capital improvements and sale-leasebacks to Harvest and other operators in the cannabis industry. Harvest's footprint includes owning more than 40 cannabis licenses with a domestic footprint that includes real estate, equipment and other assets in 11 states, including Arizona, Arkansas, California, Colorado, Florida, Maryland, Massachusetts, Nevada, North Dakota, Ohio and Pennsylvania.
Disclaimer: Potstocknews.com (PSN) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with PSN or any company mentioned herein. The commentary, views and opinions expressed in this release by PSN are solely those of PSN and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable PSN and FNM for any investment decisions by their readers or subscribers. PSN and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author (PSN), and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author (PSN) has not independently verified or otherwise investigated all such information. None of the Author, PSN, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment. FNM was not compensated by any public company mentioned herein to disseminate this press release but was compensated forty five hundred dollars by PSN, a non-affiliated third party to distribute this release on behalf of Green Growth Brands
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and PSN and FNM undertake no obligation to update such statements.
FN Media Group, LLC