PALM BEACH, Florida, January 29, 2019
PALM BEACH, Florida, January 29, 2019 /PRNewswire/ --
Financialnewsmedia.com News Commentary
Despite the evolving regulatory landscape involving CBD products, today the products derived from hemp have a clearer, much less restricted path into consumer's hands. Some federal regulations that presently restrict uses of CBD ingredients, are defined differently depending on whether the CBD comes from hemp plants, or from marijuana plants. Marijuana sourced products have more barriers. An article from the National Center for Biotechnology Information (U.S. National Library of Medicine) confirms this: "Despite the confusion and the stance of the FDA and DEA, hemp-derived CBD products can currently be purchased as labeled dietary supplements, both online and OTC, throughout most of the country. In contrast, cannabis-derived CBD products can only be purchased by qualifying patients." And a report in the Harvard Health Publishing of Harvard Medical School sees this roadblock possibly vanishing in the future: "All 50 states have laws legalizing CBD with varying degrees of restriction, and while the federal government still considers CBD in the same class as marijuana, it doesn't habitually enforce against it… Currently, many people obtain CBD online without a medical cannabis license. The (U.S.) government's position on CBD is confusing and depends in part on whether the CBD comes from hemp or marijuana." Active Companies from around the market with current developments this week include: Marijuana Company of America, Inc. (OTC:MCOA), Cronos Group Inc. (NASDAQ: CRON) (TSX:CRON), Freedom Leaf, Inc. (OTC:FRLF), Kona Gold Solutions, Inc. (OTC: KGKG), The Supreme Cannabis Company, Inc. (TSX-V: FIRE) (OTC: SPRWF).
This is good news for consumers, because the Harvard article quoted from a report of the World Health Organization, stating: "In humans, CBD exhibits no effects indicative of any abuse or dependence potential. To date, there is no evidence of public health related problems associated with the use of pure CBD."
Marijuana Company of America, Inc. (OTCQB:MCOA) BREAKING NEWS: Marijuana Company of America, an innovative hemp and cannabis corporation, is pleased to announce that its wholly owned subsidiary hempSMART™, Ltd. has successfully completed the first month of signups for its UK prelaunch.
The Company's UK division has implemented a regional office, customer service team and a distribution center that has been established by personnel with several years of experience in the network marketing sector. On March 9th the Company will celebrate the opening of hempSMART UK with a launch event in London. This event is expected to be sold out, as a large number of Associates have already purchased tickets. We have several international speakers attending and associates travelling from all over the UK.
Full field marketing and training has already commenced for the launch that is expected in early March. The hempSMART team has already taken the appropriate measures to manufacture adequate inventory to meet the expected demand for products during the launch. MCOA anticipates that the launch event in the UK will be a starting point for the Company's plan to sell its products in additional countries on the European continent.
Ian Harvey, hempSMART's Global Sales Director, said, "We have invested in a support infrastructure that will give our associates a fantastic platform to build on, one that supports growth on both a personal and business level. We are delighted to report that we have over 900 people pre-registered and as we get nearer to the full launch in March, recruitment has exploded and it is expected that this number will more than double!" MCOA CEO, Donald Steinberg, stated, "As legislation continues to evolve and the demand for hemp derived CBD products grows internationally, we will continue to launch our hempSMART associate marketing model and products to additional countries across the world." Read this and more news for MCOA at: https://www.financialnewsmedia.com/news-mcoa/
In the industry developments and happenings in the market this week include:
Cronos Group Inc. (NASDAQ: CRON) (TSX:CRON) recently announced that it had entered into a credit agreement (the "Credit Agreement") with Canadian Imperial Bank of Commerce ("CIBC"), as administrative agent and lender, and the Bank of Montreal, as lender (together with CIBC, the "Lenders") in respect of a $65 million secured non-revolving term loan credit facility (the "Credit Facility"). The Company intends to use the funds available under the Credit Facility to repay the Company's existing loan facility with Romspen Investment Corporation and for general corporate purposes pending the closing of the Company's previously announced equity investment by Altria Group, Inc. (the "Investment"). The Company intends to repay the Credit Facility with a portion of the proceeds from the Investment. The Credit Facility will mature on July 23, 2019, unless extended to September 7, 2019 with the consent of the Lenders.
The Credit Facility includes an accordion feature whereby, subject to the terms and conditions of the Credit Agreement, the Credit Facility may be increased by up to an additional maximum aggregate principal amount of $15 million. The Credit Facility will bear interest at varying margins based on the Canadian prime rate or the bankers' acceptance rate, at the option of the Company. The Credit Facility is guaranteed by the Company's wholly-owned Canadian subsidiaries, and the obligations under and in connection with the Credit Facility are secured by substantially all present and after-acquired property of the Company and its wholly-owned Canadian subsidiaries.
Freedom Leaf, Inc. (OTCQB:FRLF) this month announced the appointment of David Vautrin to its Board of Directors. Mr. Vautrin brings invaluable beverage and cannabis expertise to the Board of Directors. He has a successful track record in privately held and publicly traded, multi-billion-dollar consumer packaged goods (CPG) companies, as well as ownership and leadership in mid-cap and emerging growth organizations.
Mr. Vautrin is currently the Vice President of Sales & Marketing at Origin House, (formerly known as CannaRoyalty), where he has worked since March 2017. Origin House provides investors unique access to diverse, high potential, growth-ready assets in North America's emerging cannabis market. Origin House's California distribution business has state-wide dispensary coverage, over 100 employees, 8 licenses, 5 facilities, 20+ delivery trucks and 25+ brand partners. Mr. Vautrin is leveraging his prior expertise in operations, branding, post-merger integration, marketing, product commercialization and sales development skills. He recently completed a two-year stint as an Independent Director of New Age Beverages Corp. New Age Beverage is a healthy functional beverage company with a large portfolio of beverage brands sold in approximately 60 countries and domestically across retail and convenience stores. While on the Board of Directors, he served on the audit committee and led the compensation committee for that company. During his tenure, the company successfully up-listed from the OTC to the NASDAQ exchange, raised over $100M, acquired 5 companies, 4 brands, 11 patents, established robust governance, and exponentially increased the liquidity of its stock while significantly expanding the company's market capitalization.
Kona Gold Solutions, Inc. (OTCPK: KGKG) recently announced that they have acquired the newly formed distribution company, Gold Leaf Distribution, LLC. Gold Leaf Distribution, a Florida based company, has purchased its first beverage truck, which will be fully wrapped to advertise Kona Gold Hemp Energy Drinks, HighDrate CBD Energy Waters, and Storm CBD Waters. The Company is presently conducting interviews to hire a full-time beverage sales person/driver that will establish new distribution routes in the Melbourne-Orlando Florida markets.
The Company plans to establish its new distribution model in its local markets and then replicate the model in markets it wants to enter quickly and does not currently have distribution. Kona Gold's strategic plan is to have 5-10 beverage trucks in various markets by the end of 2019. Each beverage route is estimated to bring additional revenue of $10,000 to $20,000 per month. The Company is currently developing Gold Leaf Distribution's website.
The Supreme Cannabis Company, Inc. (TSX-V: FIRE.V) (OTCQX: SPRWF) this week announced that its wholly-owned subsidiary, 7ACRES, has obtained Health Canada approval to begin cultivating approximately 30,000 sqft of additional flowering rooms at its facility in Kincardine, Ontario.
This raises the total flowering room space from 90,000 sqft to 120,000 sqft and 7ACRES' annual production capacity estimate increases from approximately 13,300kg to 17,500kg. With further production efficiencies and the completion and licensing of all 25 flowering rooms, the potential capacity of the 7ACRES facility is anticipated to reach approximately 50,000kg per year.
Concurrent with flowering room approvals, 7ACRES also received licensing approval for production space designated for plant micropropagation. Supreme Cannabis is commencing cannabis micropropagation services at the 7ACRES facility to bring additional agricultural sciences to 7ACRES' high-quality cannabis production.
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