hemp Archives - Green Market Report

Kaitlin DomangueMay 18, 2021
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6min4820

Brightfield Releases New CBD Report

Cannabis and CBD consumer data analytics company, The Brightfield Group, is announcing the release of their newest report analyzing the CBD market in 2020 and laying out their predictions for 2021. Some key information from the report includes: 

  • U.S. hemp-derived CBD sales are expected to reach $5.3 in 2021, up 15% from 2020’s $4.6 billion
  • By 2026, American CBD sales will reach $16 billion, driven by accelerated growth of ingestible products
  • Drinks and gummies are expected to be the fastest growing product types in 2021, with 71% and 44% value growth, respectively
  • Tinctures will retain the highest share of the market in 2021, holding 18% of retail sales
  • Online sales will surpass $2 billion in 2021, accounting for 38% of the total American CBD market

The report also highlights the coronavirus pandemic’s impact on the American CBD market, the FDA’s stance on regulating CBD in 2021, and various other pieces of information about the rapidly expanding market. The Brightfield Group predicts the hemp-derived CBD market will grow at a compound annual growth rate (CAGR) of 25% from 2021 to 2026, with growth driven by: 

  • New consumers 
  • Expanding retail into new channels
  • A regulatory framework from the FDA, accelerating the growth rate of ingestibles
  • New players to bring innovation to the market

Price and Potency Changes

According to aggregate data from Hemp Benchmarks, the Brightfield Group’s report says the aggregate assessed price for hemp CBD biomass declined by a whopping 82% from April 2019 to May 2020, taking the price from $38 a pound to just $7 per pound. 

While the coronavirus pandemic surely played a part in this, you have to wonder if the newly-established American CBD industry in 2019 played a role in the price per pound during that time. It was a hot market, performing beautifully and faster than anticipated, thanks to the federal government removing hemp from the Schedule I Substances list in 2018. The hemp space in 2019 is a tough year to compete with, and throw a global pandemic on top just one year later: you might see some lower hemp prices than average. 

  • 30 ML tinctures saw, on average, a 33% potency increase, going from 450 to 600 milligrams of CBD. The price dropped from $25 to $20. 
  • 120 ML tinctures saw, on average, a 33% potency increase, going from 1800 to 2400 milligrams of CBD. The price dropped from $70 to $60. 

Innovation 

In typical cannabis industry fashion, the CBD market is ahead of innovation and constantly thinking of new ways to keep customers satisfied. However, CBD brands are going beyond wacky flavors and new designs: the companies are focusing on functional ingredients that will make a difference for the consumer. 

Immunity is a huge focus for the CBD space in 2021, and 2020 saw the same thing. Ingredients like elderberry, echinacea, Vitamin C, and zinc are popular choices for consumers. Minor cannabinoids like CBG and CBN are still hot for 2021, tapping into the entourage effect full-spectrum cannabis products provide us. 

Top CBD Companies in Q4 

In terms of market share, here were the leading CBD companies during the last quarter of 2020: 

  1. Charlotte’s Web (3.6%)
  2. Medterra (1.7%)
  3. cbdMD (1.6%)
  4. CBDfx (1.5%)
  5. CBDistillery (1.2%)

The report listed 20 CBD companies, others include: CBD American Shaman, Bluebird Botanicals, Garden of Life, Ananda Hemp, and Martha Stewart CBD. 

Distribution Channels

Online CBD sales are expected to reach $2.02 billion in 2021, accounting for 38% of the total market. This is down slightly from 42% in 2020, but it’s a good sign that things might be returning to the beginning of normalcy as people return to in-person retail shopping. Curbside and contactless options are still available in many places, which might contribute to this number. E-commerce will dominate the distribution market in 2021, with pharmacy following behind it, then CBD speciality retailers, natural food stores, pet stores, and more.


Noemi GonzalesApril 2, 2021
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4min6950

Marijuana Hater’s Guide to Making a Billion Dollars from Hemp: The Next Disruptive Industry

By Matthew Harmon

 Seeing as how are living in the midst of a historical green rush due to the rapid acceptance of cannabis since legalization it should come as no surprise to see so many people out there carving out their own fortunes and paths by taking advantage of these new exciting opportunities.

It should also come as no surprise to find books coming out that can help you to navigate the murky waters of cannabis and hemp entrepreneurship to guide you in growing your own endeavors in these rapidly growing industries while minimizing the potential pitfalls you experience.

Got your interest yet? Let’s get into it then!

-Topic Focus-

Today’s book topic does a wonderful job of laying out possible opportunity paths in the hemp and cannabis industries put together by a seasoned entrepreneur with skin in the game and a genuine desire to see others do the same.

Here you will find interesting looks into topics such as potential cannabis skincare products, the hemp industry, breaking down common misconceptions of these industries, and so much more.

 Many paths and doors seem to open up by growing your own understanding of the entrepreneurial landscape of the legal cannabis realm.

-About the Author-

The author of “Marijuana Hater’s Guide to Making a Billion Dollars from Hemp: The Next Disruptive Industry” is veteran entrepreneur Matthew Harmon.

His background experiences include but are not limited to endeavors such as operating as an investor guide in the hemp industry, a documentary filmmaker, a growing businessman, and an author of several other books.

Harmon’s passion for combining the exciting worlds of business and cannabis becomes quite evident as you move through this book and start taking on the wealth of knowledge he shares here.

-Reading Experience-

You cannot help but feel a degree of the excitement that bleeds through from the author regarding the plethora of opportunities that have arisen these recent years since cannabis was legalized in many states.

There are so many more ways to make your way in the legal cannabis industry that is not always as obvious so it can be exciting and inspiring to learn about all the niches that reside within the industry and just how many possible paths are available to each of us.

The level of expertise that the author possesses quickly becomes abundantly clear so be ready to take some notes and leap into action after reading.

-Summary-

If you’re looking to make your way into the wonderful world of the cannabis business then this book will do a fantastic job of serving as a resource that will help you to make better decisions and produce superior results.

The author clearly knows his stuff, has the background to back it up, and eager to share what he knows with us readers.

 

You can acquire your own copy of “Marijuana Hater’s Guide to Making a Billion Dollars from Hemp: The Next Disruptive Industry” here.

 


StaffMarch 12, 2021
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10min8050

Editors Note: This is a guest post. 

Did you know that hemp is considered one of the most nutritionally balanced superfoods in the world? To a skeptic mind, it might sound like a marketing gimmick for hemp products, but this doesn’t change the fact. Hemp seed has rich nutritional content with iron, amino acids, the right balance of omega 3, 6 fatty acids, and vitamins that provide holistic health benefits.

Now, you might be wondering if hemp is so rich in nutrients and good for health, why is there so much controversy about its use?  Besides, why is it associated with marijuana? If its use is legal, why does it still gets a raised eyebrow even from medical professionals every time they come across hemp products? Let’s read on to find the answers.

The Anatomy of Hemp

Hemp is a plant that belongs to the cannabis species. This fast-growing deciduous plant has various uses, from the leaves, stalks, seeds, and fibers everything has its benefits. While the plant has various uses, it is mostly used for a medicinal reason; flowers, seeds, oil, leaves all are used as medicine.

The fats, protein, and other nutrients promote various health benefits. For instance, omega fatty acids found in the plant help to reduce pain and inflammation. Hemp is also antioxidant-rich, making it useful in various neurological conditions.

Why Does It Always Come Into Context With Marijuana?

Hemp has always been confused with weed or marijuana. While hemp, marijuana, and cannabis all have the same origin, they are still different.

Cannabis has two different variations, one gets us high, and the other doesn’t. The key difference between marijuana and hemp is the ratio of tetrahydrocannabinol (THC), if you know about CBD Facts you should be familiar with the chemical and its effect. It is a substance that can have psychedelic effects on our minds and consciousness.

The cannabis containing zero to less than 0.3% of THC in their structure is considered hemp.  While Hemp is mostly produced for various medicinal and industrial use, marijuana is produced for recreational purposes.

In the USA, the use of recreational marijuana was banned,  hemp was also banned, because of their shared similarity and origin. For years, hemp has received the same notoriety as marijuana regarding its use.

What Are the Health Benefits of Hemp?

The nutritional profile of hemp contributes to its various health benefits. While studies related to health benefits are still in progress there are some known health benefits of hemp plants, these benefits are

Hemp Can Boost Heart Health

The healthy fatty acid omega 3 and 6 in hemp, helps lower cholesterol, blood pressure and boosts heart health. The amino acids in hemp can help in dilating arteries and other blood vessels connected to the heart. This ultimately lowers the risk of heart attack and many other heart conditions.

It Can Improve Your Brain Health

The CBD compound in hemp helps in neuroprotective and anti-inflammatory effects in our brain. These properties are known to help with the symptoms of different neurological disorders such as Alzheimer’s, Parkinson’s disease, seizure, multiple sclerosis, and neuropathic pain.

It Can Help With Inflammation

The hemp plant is rich in omega fatty acids and antioxidants that contribute to its anti-inflammatory properties. Reduced inflammation may help with type 2 diabetes, arthritis, heart disease, metabolic disorder, and liver disease.

What Is It Used For?

Each part of the hemp plant has multifaceted use. From textile to food industry every sector can reap from its versatile uses.

Fiber

Hemp is considered the strongest organic fiber in the world. Besides, hemp fiber has been the oldest known fiber in human civilization. This fiber is traditionally used in both the textile and paper industry. Sturdy ropes, denim, shoes, carpeting, canvas, diaper, and even fine clothing can be produced by using hemp fiber.

Food

As you know hemp seeds are highly nutritious and the food industry ensured their optimum use. The nutty hemp seeds can be used as ground-up powder and can be eaten raw. The oil produced from hemp seeds also has nutritional value. Even the leaves can be used in the salad to provide some much-needed protein, vitamins, and nutrients.

Medicinal use of CBD

CBD or cannabidiol is probably the most widely used variation of hemp products. It can be used by vaping, as oil, or even as honey sticks. It has many medicinal properties like pain reliever or anxiety suppressant.  

Construction Material

Hemp fiber is one of the strongest fibers in the world and that makes it a suitable building material. Hemp-made composite hempcrete is such a construction material that is quickly gaining recognition. 

While hempcrete can not be used as a load-bearing material as its load-bearing capacity is only 1/20th  of the concrete, it still has a special use in construction. The elasticity of hemp makes it perfect for lateral load-bearing, a hempcrete-made wall won’t crack even after an earthquake.

Does Hemp Get You High?

While you can get some calming effect from hemp, it can’t get you high as the THC content in hemp is less than .3% which is not enough to create a buzzing effect.  Even if you smoke tons of hemp and try to create some euphoric high, you won’t get it; chances are, you will only end up with a migraine.

Are There Any Side Effects?

Hemp taken as food has little to no side effects. However, you might still be allergic to hemp seeds just like any other seeds and that can give you some unpleasant reaction. Besides, hemp proteins are known for lowering blood pressure and in some cases, it might reduce the blood pressure to a point causing health complications.

How Should You Use It?

To make the best of hemp, use it as food or oil. It can also be used as a topical massaging element. But smoking hemp is not recommended as it might alter its potential.

The Bottom Line

As the 2018 farm bill made it legal for hemp production, the use of hemp in medicine, food, and other sectors will only continue to grow in the future.  While the myriad health potentials might make you interested in hemp, the scientific studies regarding those potentials are still at their early stage. However, if you are intrigued to try any type of hemp product, make sure you get them from a trusted source and use it as per the recommended dose.


StaffFebruary 8, 2021
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4min5361

Global Hemp Group Inc.  ( OTC:GBHPF ) signed a Definitive Agreement with Prescient Strategies Group LLC to acquire all of its Western Sierra Resource Corporation (OTC: WSRC) Preferred A Class Share holdings in a private, third party transaction. The deal is expected to close on or about February 9, 2021 upon fulfillment of certain conditions including:

  • – WSRC restructuring certain unsecured debt prior to the issuance of the GHG Prefs;

    – GHG providing the necessary initial payments to complete the transaction and other Debt Restructuring (completed).

The company said in a statement that the resulting acquisition of these WSRC Prefs will give GHG control over WSRC, and specifically its strategic water infrastructure assets that will be an integral part of the Company’s Colorado Hemp-Agro Industrial Zone project. Documented historical valuations of the 4,000-acre feet of water rights and associated infrastructure are based on 2013 and 2015 MAI appraisals and engineering reports, which collectively support a value ofS$40,000,000 or higher. GHG has contracted a third party valuation of this initial assessment value to support such appraisal.

The Colorado HAIZ will be developed under the banner of Innovative Hemp Technologies. IHT’s core objective; to develop “green” and “affordable” homes in a Planned Unit Development utilizing hemp-based construction materials to meet historical pent-up demand in the area, which will include the development of large scale irrigation and cultivation of industrial hemp, and the manufacture of hemp-based construction products and textiles. This will significantly expand the existing water rights and infrastructure assets while generating multiple revenue streams for the Company.

By utilizing a campus setting like that of the HAIZ, the company said it will efficiently implement these vertically integrated functions (water, agriculture, processing, housing). Proven industry professionals have been engaged to work alongside IHT’s management in the areas of agriculture, R&D, manufacturing, and construction to achieve the Company’s objectives.

Execution of the HAIZ project will create substantial shareholder value through the incremental introduction of additional (multiple) revenue streams to meet IHT’s objectives and set GHG on a path to become a leader in sustainable hemp-based “green” construction in the United States. The Colorado “HAIZ” will become a “showcase” project to demonstrate “green” hemp construction products and technologies for third-party offtake and for replication in other suitable U.S. markets.

The project will leverage the existing water rights and infrastructure to turn “dry land” farming acreage into irrigated land with valuable water rights that can subsequently be used to develop “affordable housing” and high-value agricultural crops such as industrial hemp. GHG’s vision is to take the hemp grown onsite and replace as much of the conventional building materials used at the project with sustainable, hemp-based building materials used in the housing development. This project contemplates a 25-year build-out. The luxuries of a long-term project with demonstrably high demand are:

  1. a) economies of scale;
  2. b) opportunity to implement learned efficiencies;
  3. c) opportunity to continually fine-tune product offerings though intimate familiarity with a specific market;
  4. d) access to new markets stemming from other by-products of the hemp processing, such as fibre and microfibre.

StaffFebruary 8, 2021
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7min9420

Editors Note: This is a guest post.

 

Even if you tried, you couldn’t have missed out on hearing at least something about the benefits that CBD has to offer. With a rapid industry expansion, there have been many CBD products showing up on the market – from vape juices and edibles to oils and tinctures used to treat different symptoms in patients.

There’s even an FDA approved medication based on CBD, which is a considerable step towards destigmatizing hemp and CBD as a whole. But, what you might have missed is that alongside everything already listed, you can also get hemp flowers that contain high CBD levels even in their raw form.

What Are High-CBD Hemp Flowers?

So, what are these hemp flowers, and why would you consider getting them? The number one reason is that it tastes, looks like, and smokes like marijuana does, without any psychoactive effects. It provides all the positive sides of CBD, and no negative sides of THC, so it is sort of the best of both worlds.

As for what they are, it’s relatively simple; they are flowers harvested from hemp strains that have high levels of cannabidiol (CBD) and only contain THC in trace amounts. If you were so inclined, you could even get seeds or flowers from these strains from a wholesale distributor and maybe even start a farm of your own. If you’re concerned about the legal process, read on, we’ll get into that as well.

Is CBD Hemp Flower Legal?

Hemp has a long history of being thrown into the same pot as marijuana, and its public image has suffered greatly because of that. However, in recent years, hemp has been getting the recognition it deserved all along, especially since the 2018 Farm Bill, which has been one of the greatest steps for hemp products in US history.

Why was this act so important? Because it finally pronounced that the cultivation and sale of hemp products are legal in all 50 states. The only condition is that the product must contain less than 0.3% of THC, and if it meets the requirement, it’s perfectly legal to sell it and even ship it to anywhere in the country.

Why They Are Becoming So Popular

CBD has been speculated to have many properties that have been discussed often and at length, but they are certainly present. So, why have people been choosing to get flowers over any other available form of CBD? 

Aside from the mentioned reasons of the process being reminiscent of consuming marijuana, it’s also said that the calming effects of CBD simply hit faster when it is consumed this way. This is because the cannabidiol that’s taken this way doesn’t have to go through your entire digestive tract to enter your bloodstream and your endocannabinoid system.

With the CBD products not yet being FDA regulated, you can’t be sure that what you’re getting is 100% what it says on the label. Because of that, a lot of people have been getting hemp flowers from trusted farmers and distributors and making their own CBD oil at home, which is a relatively simple process.

Who Can Benefit From High-CBD Hemp Flowers

As we’ve mentioned above, CBD consumed by smoking ground up hemp flowers hits faster than any other method of consumption would. That’s particularly important when you consider that CBD is regarded as an analgesic or pain reliever. Although it can be used to treat chronic pain, with a method of consumption that produces effects within minutes, it is also suited for alleviating acute pains, like cramps.

Besides all that, the cannabis industry is growing faster than ever, and it is expected that it will continue to do so in the coming years. There are already many small businesses opening up and a lot of farmers getting into hemp growing, simply because it’s expected that it will become even more profitable as new laws and regulations are being brought to the table. Scientific research keeps on making breakthroughs that prove CBD can indeed help with a lot of conditions.

In Conclusion

Hemp products are here to stay, there’s no doubt about that, but in which form they will be sticking around is also very important. Will small businesses and farms be able to keep their heads above water when huge pharmaceutical companies start getting into the industry? Most likely, yes, because no matter how much money you invest into a business, it will never be able to match the love that small businesses and farms offer to their crop and product. 

What is most important is always paying attention and only going for CBD products from trusted vendors who have a solid reputation and several positive reviews. Stay safe!

 


StaffJanuary 18, 2021
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14min8542

Editors Note: This is a guest post

How Hemp Helps You During the Winter

Discover the benefits of taking hemp during the winter and how it benefits our body. 

Hemp- A Helping Hand for the Cold Winters

Winter is here and during the winter season we barely get any long sunny days, it is rather filled with long cold nights. All we want to do is lay in bed under our comfy blankets and just be lazy, wishing someone would bring us a cup of hot cocoa with marshmallow toppings.

Moreover, the gloominess outside from the pale white skies makes us depressed and we feel a lack of motivation to go by our daily routine. It is that time of the year where due to dry weather, the sale of moisturizers, lip balms, and other such products increase and become our basic need. If you think winter completely brings your spirits down then we have the perfect solution for you – Hemp.

Weed or Hemp can help you in many ways by giving the oomph you need to get yourself going. Our body constantly keeps reminding us that the season has changed by developing dry skin, increased body pains, fatigue, and many more such issues. Don’t worry, Hemp is your knight in shining armor.

Let’s Talk About the Skin During Winter

Do you ever look at your skin during winter and feel terrified of how ashy and scaly it becomes? You can almost feel like a desert lizard if you touch it. You probably have to apply lotion a million times to keep it moisturized but even that’s a problem because lotion works differently on every individual.

So while you are struggling to battle this dryness, if you want to save some skin cells, you better get yourself some CBD oil or any CBO-infused topical creams. Your skin remains hydrated and this is because hemp molecules are extremely tiny and can easily penetrate through the skin, unlike other creams.

If you are worried about how to purchase these products, well this pandemic has made everything virtual and you can easily buy weed for sale online. The solution to all your winter problems will now be at your doorstep with just a few clicks and you wouldn’t even have to get up from your seat.

Regulate Your Mood

Sometimes all we need to feel good is a beacon of light which is pretty much what’s missing during the winter. The dark and doomed days may lead you into seasonal depression. It is nothing to be ashamed of, we all have our darker days when we need some sunshine.

Yet what happens in the winter when there is no sunshine? Rest easy as hemp comes to you as a symbol of hope. Hemp helps relieve stress and makes you feel relaxed. It also acts as an antidepressant and has worked for many people. So you can go ahead and give it a shot.

The light may be gone for many days during the winter but that does not necessarily mean it should be the same in your personal lives. Take some CBD/Hemp and observe the difference. It is time to make winter a wonderland.

Are Your Muscles a Little Sore?

Just like us, our muscles too can become lazy during the winter. You may be a crazy sport junky and only during the winter can you go skiing on the snow and ice skating (even though nowadays you can do that in summers also) these things altogether make the winter chic.

However, after a day of fun, your muscles may give up on you as soon as you hit the bed. You can even feel fatigued the next day and may have some leg cramps and increased pain and this is all due to winter. The season adds to these problems.

A quick way of recovering would be using hemp oil. It will help you reduce the soreness in your muscles and is a very handy tool to keep. If you are sitting in front of a bonfire, enjoying some music and wine yet your muscles hurt, just apply some CBD oil and let it work its magic.

Need a little Hike up of Energy?

As the sun goes down during the winter, so does our energy. Have you ever noticed how hard it is to wake up on a winter morning compared to a morning in the summer? We suddenly feel like an empty canister and have this craving for energy. Hence we start losing motivation too.

A good cup of coffee should help that situation; yet if you drink too much coffee you can end up being immune to its effects, plus coffee has additional backlashes like anxiety and restlessness. We don’t want that added to our list of winter problems. One might think of taking prolonged naps and yet not feel sufficiently energized.

So how do we overcome this? You can use some hemp. They are said to give a rush of energy by consolidating the cells in your body. Not only that, it keeps you awake which means that you can carry on the regular activities you do during the day without feeling tired or losing motivation. Now that by itself is a plus point.

Want to Quit Smoking?

If you are a smoker then winter is a very difficult time for you. due to seasonal depression, you may be smoking several packs of cigarettes every day. This is not good for health and especially if you end up catching a cold. You may end up having an asthma attack.

If you are looking to quit smoking, you can just start using hemp. Smoking is a health hazard as it can cause various diseases like lung cancer, heart disease, liver cancer, and many more. Hemp will fulfill your nicotine cravings and even though it may not give you the same feeling as smoking a hot cigarette during winter, it will help you get rid of that habit.

This is an advantage for your health and everyone around you is being affected by passive smoking.

 Facing Anxiety Problems?

Winter is a perfect excuse for people to stay at home and completely stop interacting with people. As the darkness of winter hits, for some odd reasons, it amplifies every feeling that we have and among them is anxiety.

Anxiety is like sweet poison. You will not be able to do anything if you have anxiety. You won’t be able to work,  sleep, or eat, all you will be able to do is feel agitated and twitchy.

Using CBD oil will help ease these anxieties. You will feel way better and able to cope up with the world around you regardless of what season it is. That’s the kind of incentive we all need.

Having Chronic Pain?

An annoying truth about winter is that all your chronic pains return like the dead walkers of The game of thrones, to torment you. The cold breeze of winter may find shelter in your joints and yes it is very hard to sleep or even function when you are experiencing continuous pain in your body.

Even though you are using many remedies to try and fix this problem, none of them seem to work. Start using CBD oil regularly, this will reduce the pain in your joints and muscles and help make you feel 100 percent better again.

You can get right up and do your daily chores and make things a little less painful for yourself. Feel the joy of winter and holidays more.

 The Big Question – What is Hemp?

Even after reading all these amazing benefits of hemp, there might still be a big question in your mind. What exactly is hemp? Hemp is typically a variety of the cannabis plant which is dioecious in nature. This simply means it can have both male and female plants.

Hemp has been used for many different purposes for a very long time such as fiber for making clothes, ropes, furnishing, and other building materials. Apart from that hemp can be taken as oils and topical creams for health benefits.

You may wonder if hemp has any tetrahydrocannabinol more commonly known as THC which is very strong and intoxicating. The amount of THC present in hemp is very little which makes it a good therapeutic agent and a popular one these days.

So Now That You Are Aware of the Benefits, Don’t Delay the Purchase

Make winter your favorite season again by having some hemp by your side. Winter is a blessing, and the holidays bring everyone back together. You do not want to be spending such times sulking and in pain. Grab your favorite hemp product and make this winter memorable.

Don’t just get it for yourself, get some extra ones for your family too but make sure to keep the kids away.

Have a wonderful winter!

 


StaffJanuary 15, 2021
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3min7090

The U.S. Department of Agriculture (USDA) today announced the final rule regulating the production of hemp in the United States. The final rule incorporates modifications to regulations established under the interim final rule (IFR) published in October 2019. The modifications are based on public comments following the publication of the IFR and lessons learned during the 2020 growing season. The final rule is available for viewing in the Federal Register and will be effective on March 22, 2021.

“With the publication of this final rule, USDA brings to a close a full and transparent rule-making process that started with a hemp listening session in March 2019,” said USDA Marketing and Regulatory Programs Under Secretary Greg Ibach. “USDA staff have taken the information you have provided through three comment periods and from your experiences over a growing season to develop regulations that meet Congressional intent while providing a fair, consistent, science-based process for states, tribes, and individual producers. USDA staff will continue to conduct education and outreach to help industry achieve compliance with the requirements.”

Shawn Hauser, partner and chair of the Hemp and Cannabinoids Department at Vicente Sederberg LLP said, “The transition from prohibition to a legal and regulated system takes time, and USDA’s final rule is a historic step forward for hemp in the U.S.  Many are justifiably disappointed by the DEA’s continued (and in some ways expanded) role in the agricultural hemp program, but there were also a number of positive improvements. The expanded harvest window, alternative disposal/remediation authorizations, and increase of the standard of negligence to 1% will be critical to building a successful hemp industry, and they indicate the USDA gave meaningful consideration to stakeholder’s comments. We are undoubtedly making progress, and we will continue to work with regulators and through Congress to perfect the regulatory structure for hemp.”

Key provisions of the final rule include licensing requirements; recordkeeping requirements for maintaining information about the land where hemp is produced; procedures for testing the THC concentration levels for hemp; procedures for disposing of non-compliant plants; compliance provisions; and procedures for handling violations.


StaffDecember 3, 2020
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The United Nations has voted to remove cannabis from its classification as a dangerous drug. This week the U.N. Commission on Narcotic Drugs voted to remove cannabis and cannabis resin from a category of the world’s most dangerous drugs. This decision could potentially jumpstart the global medical marijuana industry. Many cannabis companies have eyed global expansion, but the markets have proven to be challenging as laws have remained strict.

The Vienna-based U.N. agency said in a statement that it had voted 27-25, with one abstention, to follow the World Health Organization’s recommendation to remove cannabis and cannabis resin from Schedule IV of the 1961 Convention on Narcotic Drugs, where it was listed with heroin and several other opioids. The drugs that are on Schedule IV are a subset of those on Schedule I of the convention, which already requires the highest levels of international control. The agency voted to leave cannabis and cannabis resin on the list of Schedule I drugs, which also includes cocaine, Fentanyl, morphine, Methadone, opium and oxycodone, the opiate painkiller sold as OxyContin.


Debra BorchardtDecember 3, 2020
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Ackrell SPAC Partners I said it plans to raise $100 million for a SPAC (special purpose acquisition corp.) primarily focusing on the alcoholic and non-alcoholic beverage and wellness sectors, as well as hemp-based branded consumer goods. It plans to list on the Nasdaq under the symbol ACKIU.

The company said in its filing, “Our strategy is to identify and complete our initial business combination with a target operating in the branded FMCG industry. Our focus will be on the alcoholic and non-alcoholic beverage and wellness sectors of the FMCG market. In addition, we believe that there is an emerging opportunity within these sectors to target businesses that are focused on hemp-based branded consumer goods. While we intend to initially focus on potential opportunities in the United States, the branded FMCG industry is global and we may pursue opportunities internationally.”

The Claymont, DE-based company plans to raise $100 million by offering 10 million units at $10. Each unit contains one subunit and one-half of a warrant, exercisable at $11.50. Each subunit contains one share of common stock and one-half of a warrant. At the proposed deal size, Ackrell SPAC Partners I would command a market value of $133 million. It has 12 months in which to establish a business combination.

The company is led by Chairman Michael Ackrell, founder and CEO of Ackrell Capital; Vice Chairman Shannon Soqui, co-founder and CEO of Next Frontier Brands; CEO nominee Jason Roth, co-founder and Chief Strategy Officer of Next Frontier Brands; and COO nominee Stephen Cannon, who serves as President of Everest Partners and has experience from several other SPACs.

At this time, it looks as if all the members of the board of this SPAC are male. NASDAQ recently filed a proposal with the Securities and Exchange Commission that would require listed companies to have at least one woman on their boards, in addition to a director who is a racial minority or one who self-identifies as lesbian, gay, bisexual, transgender or queer.

Roth will serve as the Chief Executive Officer. Since April 2020, Roth has served as Chief Strategy Officer and a member of the board of directors of Next Frontier Brands. From 2018 to 2019, Mr. Roth was the Chief Executive Officer and Chairman of the board of directors of Mile High Labs International, which the company said it believes was one of the world’s largest processors of hemp-derived CBD concentrates in 2019. 

Ackrell has been a director of a number of private companies, including Stable Technologies, Inc., a manufacturer of water-soluble CBD products, CMLM Holdings, Inc., doing business as QIND, a branded retailer of CBD products, American Giant, Inc., a U.S.-based manufacturer of apparel and activewear, Vator, Inc., a professional network for entrepreneurs, and Scrubbed.net, LLC, an online accounting and bookkeeping services company. CMLM Holdings, Inc. was acquired by Next Frontier Holdings, Inc. in August 2020.

From 2018 to 2020, Mr. Soqui was the Chief Executive Officer of CMLM Holdings, Inc., prior to its acquisition by Next Frontier Brands. From 2017 to 2018, Mr. Soqui was the head of U.S. cannabis investment banking at Canaccord Genuity, a leading global cannabis investment bank. From 2015 to 2017, Mr. Soqui was the Head of Cannabis Investment Banking at Ackrell Capital.

Ackrell SPAC Partners I was founded in 2018 and. The company filed confidentially on October 17, 2019. EarlyBirdCapital is the sole bookrunner on the deal.


StaffNovember 16, 2020
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7min14181

Editors Note: This is a guest post.

CBD products have become incredibly popular thanks to new legislation legalizing hemp-derived products with minimal THC content. The popularity of CBD is also attributable to the number of people experiencing benefits from it; CBD is being used to alleviate anxiety, help people sleep, and give people a deeper sense of wellness and relaxation.

But what does the future hold for this industry? Is CBD just a fad, or will it continue growing in popularity? And how will innovators direct the development of this market?

Product Innovation

First, let’s take a look at the area of product innovation. Already, there is a wide range of different CBD products available for consumers to try. You can buy and smoke CBD flower, just as you can buy and smoke weed, but most people prefer a different delivery system due to concerns about smoke and lung health. 

Instead, many people are turning to full spectrum CBD oil, an extract designed to provide you with a full spectrum of different cannabinoids (except THC, of course), in a much cleaner, more efficient delivery system. We’re also seeing the development and circulation of topical forms of CBD, including creams, and CBD cartridges for vaporizers.

In the future, we’ll likely see an even wider range of products that contain CBD. Already, we’re seeing hints of what’s to come. For example, there are gummies and other edibles that contain CBD being sold by food manufacturers. There are also some restaurants offering signature dishes cooked with CBD oil. Over time, as extracts become more concentrated and new forms of CBD delivery become discovered, we’ll see an even more diverse range of options for consumers.  

Consumer Demand

Consumer demand for CBD is unlikely to let up anytime soon. After becoming legalized, there was an understandable surge in demand due to the novelty of the substance. Some experts suggested that this would be short-lived; once people got over the newness of the substance, they would move onto something else.

But the numbers suggest something different. The market for CBD in 2020 is $967.2 million, but it’s projected to grow to $5.3 billion by 2025. There are many reasons why this growth trend will likely continue.

For starters, people who try CBD and like it tend to keep buying it. They discover the benefits, and don’t want to lose them. It’s not a fad for them; it’s a source of relief. Additionally, the benefits of CBD are still being discovered; new studies are constantly emerging to suggest new benefits from the substance, or to reinforce already existing ideas about how it works.

Consumer acceptance is also likely to grow. While some people were excited to try something new when it became legalized, CBD still carries a stigma among some circles, due to its association with marijuana, which is still illegal at the federal level. In time, negative perceptions will likely decline, and more people will be willing to try this substance for their own personal benefit.

Regulation

While the 2018 Farm Bill allowed hemp-derived products to be sold legally, this isn’t the end of the line in terms of regulation. In the future, the FDA and other governmental bodies may step in to more heavily regulate the manufacture, advertisement, and sale of CBD products. This is an area of much uncertainty since it’s unclear how or when the government may intervene.

Right now, there are minimal regulations for how hemp is grown and tracked. Companies are making bold claims about the health benefits of CBD, despite much of the research being new and limited in capacity. And some products, such as extracts, are hard to control in terms of potency and consistency. Increased regulation could make it more difficult for new companies to enter the space, and could cause headaches for companies that are trying to innovate and serve more consumers.

Increased Competition

No matter what, we’re likely going to see more competition in the CBD space. The CBD market has already proven itself to be a lucrative one, and it’s only going to grow in the future. Thousands of businesses are competing to become a top name in the CBD world, and entrepreneurs are coming up with new ways to help themselves stand out from the crowd.

This will have a cascade of different effects on the market. It will introduce more novel products. It will lower prices for consumers. It will bring more attention to the industry. And it will make it harder to be a business owner in the space.

The future of CBD products is somewhat uncertain, given the potential for further regulation. However, the CBD market is consistently growing, and will likely continue to grow for the foreseeable future. New CBD products will inevitably follow that demand. 

 


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