Cannabis Fakes: Three Companies That Aren't Really Cannabis Companies

No one likes a fake, especially in the business world. Sometimes in order to drive sales or investor interest, companies will misrepresent who they are and what industry they’re in. A most recent example is when the company Long Island Iced Tea Corp. changed its name to “Long Blockchain Corp.” and saw its stock prices soar.

Closer to home there are countless companies hoping to capitalize on the crazy amount of buzz that the cannabis industry has generated; even if they’re not really in the cannabis industry. Today Green Market Report will separate fact from fiction and give you a look at some of the most notorious Cannabis Fakes.

Corbus Pharmaceuticals

Corbus Pharmaceuticals is (CRBP) late-stage stage clinical pharmaceutical company that specializes in the development and commercialization of novel therapeutics to treat rare, chronic, and serious inflammatory and fibrotic diseases. Lately, the company has enjoyed a bit of buzz as a “cannabis company” listed on the NASDAQ exchange, but the truth is less exciting. The drug that has led to this company being called a “cannabis company” is JBT-101, which is an oral endocannabinoid-mimetic drug. What that means is that JBT-101 interacts with endocannabinoid receptors by mimicking cannabinoids, no cannabis required. The company may enjoy a Outperform rating from Raymond James, but it is by no means a cannabis company.

Compass Diversified Holdings

Compass Diversified Holdings (CODI) is a company that acquires and manages mid-size businesses. Compass gets its cannabis credentials from its ownership of the hemp-based food company Manitoba Harvest as well as the appropriately named Hemp Oil Canada. Aside from the fact that these two companies are just a small piece of Compass’ greater portfolio, most hemp advocates would be keen to point out that hemp is not cannabis; despite the similarities that these two may share.

22nd Century Group

Perhaps the most egregious use of the term “cannabis company” has to come from 22nd Century Group (XXII). 22nd Century Group is first and foremost a tobacco company. They got the reputation as a cannabis company because of their work with the development of hemp-based cannabinoid related products and through its collaboration with the University of Virginia to cultivate industrial hemp. The company’s lead product, however, is a brand of “non-addictive” cigarettes that contact low doses of nicotine, which is in keeping with the US Food and Drug Administration’s overarching goal of reducing the amount of nicotine in cigarettes. An interesting business venture, perhaps, but 22nd Century Group is definitely not what you would consider a cannabis company.

William Sumner

William Sumner

William Sumner is a freelance writer specializing in the legal cannabis industry. You can follow William on Twitter @W_Sumner or on Medium.


2 comments

  • Avatar
    Eric Layland

    March 20, 2018 at 2:26 pm

    Good work calling attention to “fake” cannabis companies. Please continue to report and post on similar issues. It should be the priority of those who don’t push lies to call out those that do. The only way to gain a win over those against legalization is to hold ourselves in the cannabis industry to a higher level.

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  • Avatar
    Bruce Ryan

    March 20, 2018 at 8:21 pm

    I would agree on #1 & #3. #2, not so much.
    CODI purchased Manitoba Harvest which IS a long-term cannabis company in Canada producing hemp seed (food) products. As the industrial cannabis industry rolls out, it will be a radically different landscape.
    Cannabis=hemp=marijuana ~ genetically speaking

    Reply

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