hemp Archives - Green Market Report

Kaitlin DomangueKaitlin DomangueJanuary 29, 2020
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2min220

US-based company, EcoGen Labs, is continuing to expand and grow as it successfully closes on a $40 financing arrangement through private placement. 

EcoGen Labs is a vertically-integrated, seed-to-sale manufacturer and supplier of specialty hemp-derived ingredients and proprietary formulas in the United States. The company also produces private-label finished product, as well as providing unique genetics.

Since its launch in 2016, the company has expanded rapidly, producing over $80 million in revenue last year. EcoGen supplies nearly 70% of the ingredients used in various retailers across the US, including Whole Foods, Sephora, and CVS Health Corp.

Alexis Korybut, the Co-Founder of EcoGen says “We are very encouraged by the strong support we’ve received from the institutional marketplace. This investment is an important step forward that will allow us to further grow and expand our business.”

EcoGen has a solid strategy for the utilization of this transaction, the plans include supporting the further development of its facilities, focusing on its research and development, and the expansion of marketing and sales divisions. Advancing the company’s seed and genetics, the expansion of private-label finished goods, and new technologies are also on the agenda for EcoGen.

“With engineering as a passion and also my background, the prospect of new innovation is what led me to this industry,” says Joseph Nunez, Co-Founder of EcoGen. “When we first started, we were on a mission to create a state-of-the-art process to produce exceptionally pure CBD that set the standard for the industry. We’re proud to say that goal was quickly achieved and this capital raise will allow us to expand that success into other verticals of the business.”

EcoGen also has plans to develop their new national headquarters on a nearly-20 acre property located in Grand Junction, Colorado. When development is complete it will include everything from seed production to the making of CBD products.


Julie AitchesonJulie AitchesonJanuary 29, 2020
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4min770

Just over a year from the date when the 2018 Farm Bill removed hemp from the list of controlled substances and legalized it for industrial growth, issues plaguing hemp producers in 2019 are coming to light. The most dominant pitfalls include a glutted market, unpredictable climate, problems with mold and pests, and a chronic shortage of adequate drying facilities.

Seasoned farmers are no strangers to these types of problems, but industrial hemp poses a new challenge: how to bring a crop in under the .3% THC limit mandated by the federal government.

In an October article by Chuck Abbot at www.agriculture.com, analysts at agricultural lender CoBank forecasted that changing federal regulations would make it difficult for growers to keep up with guidelines for testing plants for excess THC. The National Law Review published a piece on Jan. 19, 2020 entitled “Key Takeaways From USDA Final Interim Rules for Domestic Hemp Production”. (These interim rules are set to expire in 2021 and will be replaced by finalized regulations.)

The scope of the rules includes conditions for growing, processing and/or selling hemp, and requires an approved testing and sampling procedure to ensure that no plant exceeds .3% THC content. Unfortunately, the currently approved method focuses solely on identifying the THC content of the plant rather than its genetic profile (which can definitively identify the plant as hemp). Testing only for THC content leaves this undetermined.

A hemp plant can “go hot” (aka experience a spike in THC levels) due to using a new seed variety, environmental factors, or a plant left to flower for too long. This can lead to what the National Law Review article describes as “excessive non-compliance and crop destruction”, not to mention devastating financial losses for growers. Writing for local Denver publication Westword, Mathew Van Deventer reports that fourth-generation farmer Randy Taylor was forced to destroy eighty acres under hemp production when that hemp tested at .47% THC by the Colorado Department of Agriculture. The CDA is attempting to address this conundrum by approving and overseeing the development of industrial hemp seeds specifically engineered for low THC/high CBD content.

Theresa Bennett’s Q&A with Vote Hemp President Eric Steenstra at www.hempgrower.com  provides further insight into the issue. Steenstra shares that there has been almost a 500% increase in the number of people growing hemp nationwide over last year. These new growers are largely unfamiliar with the complexities of the genetic seed make-up required to keep THC in crops from spiking. As a result, buyers are favoring larger-scale operations with tested seed stock and reliable facilities, which edges new growers out of the market before they gain a foothold.

Despite the obstacle that regulations regarding THC content pose for unseasoned producers, industrial hemp still shows a profit margin generous enough to lure those willing to educate themselves and keep abreast of the changing guidelines into the industry. Hopefully, the lessons of 2019 will make for a less perilous and more profitable learning curve for aspiring hemp entrepreneurs in 2020.


Kaitlin DomangueKaitlin DomangueJanuary 27, 2020
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4min1240

Its time for your Daily Hit of cannabis financial news for January 27th, 2020. 

On the Site

Troubles Continue For Sunniva, Company Announces Ceasing Operations Of Full-Scale Distributors, LLC

Sunniva (OTCMKTS: SNNVF), a Canadian cannabis company announced the closing of wholly-owned subsidiary Full Scale Distributors, LLC set to take place in February 2020. “The closing of FSD is a necessary step that will eliminate the cash outlay required to operate that business,” said Dr. Anthony Holler, Chairman & CEO of Sunniva Inc. “We continue to focus on the preservation of our available funds to allow us to actively defend Sunniva’s rights under the previously disclosed dispute related to the Build to Suit Lease of the Cathedral City Glasshouse.” The company cannot file for bankruptcy because of cannabis’s federally illegal status. 

The Year Ahead for CBD

Farmers experiencing demand and profit surges since converting their land for hemp cultivation were profiled in a CNN report in April that projected sales of hemp products to be over 2.2 billion dollars by 2022. Despite these positive projections, the hemp industry has experienced its share of problems, as outlined in an October article by Iris Dorbian for Forbes.com. These issues include a lack of widespread, scientifically sound information about the legality and benefits of CBD products, which often deters retailers from carrying hemp products. 

Though projections may vary, there do appear to be strong commonalities that provide a clarified, if not completely clear, view of what 2020 holds for the CBD/hemp industry.

Airvape X Review: A Modern Multi-function Device

The few minor flaws (battery life and chamber size) with the Airvape X are greatly outweighed by the many positive aspects of the vaporizer. The change from smoking to purely vaporizing has a noticeable impact on the health of your lungs. Strong rips, easy to clean, does not take long to charge, and we are happy campers over here.

When our own Airvape X unit dies out from our daily use then we plan to replace it with another considering how great it has been to have.

In Other News

Indiana’s Smokeable Hemp Ban Moves to Federal Appeals Court

Indiana initially passed the ban on smokeable hemp in July, but it was put on hold by a federal judge. The state is attempting to revive it and The Midwest Hemp Council and seven Indiana hemp wholesalers are challenging the state’s action. 


StaffStaffDecember 10, 2019
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3min3440

Mobile Hemp Extraction Unit With Capacity of 400,000 Lbs Per Month

Sacramento, California December 10, 2019 /AxisWire/ American Hemp Processing(AHP) is excited to announce the design completion of their mobile hemp extraction unit. “This is a key step in our production expansion plans that will be completed 1st quarter 2020.  At that time, we will be increasing our capacity to over 400,000lbs per month. And the exciting part is we will be able to do this remotely on the farms.”  According to Shick Park, Co-Founder and Chief Operating Officer.

These units bring significant benefits to the farmer, including cost efficiencies, reducing transportation risks, contamination, and degradation. They also increase transparency between AHP and the farmer, something that is critical to the success of their partnerships.

“This is phase 2 of our strategy”, says Andrew Alvarez Co-Founder and Chief Technology Officer, “Phase 1 was mastering the extraction and remediation process enabling us to create some of the best CBD oil in the industry, and Phase 3 is the roll-out of the mobile extraction units fall of 2020.”

“This caps off a 12 month design process by our engineers and now we go to the assembly phase.  These units will take approximately 40 days each to build, and we plan to initially build 3.” Says Co-Founder and CEO Tom Richardson.  “This has been a very rewarding journey for us, from meeting farmers all over the country, to government legislators, to fine tuning the extraction process, to meeting other processors and sharing ideas, we feel very confident about the Cannabinoid Sector business.”

About American Hemp Processing – AHP Is an Industrial Hemp Processor Focused on Cannabinoid Extraction, Purification, and Chromatography Isolation. Services and products include : Tolling, Splits, Crude, Distillate, T-Free, Remediation and White Label. They pride themselves on quality, and being able to build win-win relationships with farmers, distributors and end users. 

 

Contact: TOM RICHARDSON

Phone: (855) HEMPPRO

Email:TOM@AMERICANHEMPPROCESSING.US

 

 


Debra BorchardtDebra BorchardtDecember 4, 2019
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3min7960

On Tuesday, The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation (FDIC), the Financial Crimes Enforcement Network (FinCEN), and the Office of the Comptroller of the Currency issued a statement clarifying banking rules around hemp customers.

Key Takeaway

The key takeaway from the statement is that banks no longer need to file the onerous Suspicious Activity Report, known as SARS for hemp farmers.

The statement said, “Because hemp is no longer a Schedule I controlled substance under the Controlled Substances
Act, banks are not required to file a Suspicious Activity Report (SAR) on customers solely because they are engaged in the growth or cultivation of hemp in accordance with applicable laws and regulations. For hemp-related customers, banks are expected to follow standard SAR procedures, and file a SAR if indicia of suspicious activity warrants.”

Michael Weiner is a partner at the international law firm Dorsey & Whitney and the chair of its Cannabis Practice Group said, “This statement is limited to hemp growers and not to other businesses related to hemp or CBD from hemp.  For banks that are already providing banking services to hemp growers, the word “solely” may cause banks to hesitate to cease filing suspicious activity reports for these customers.  For banks that are reluctant to provide banking services to hemp growers, this statement is unlikely to provide sufficient comfort to enter the market.”

“Further, FinCEN stated that it would issue additional guidance following further review of the USDA interim final rule, perhaps following issuance of final rules from the USDA following the current public comment letter.  Banks may delay making any changes to their banking services until issuance of such additional guidance,” Weiner added.

The statement went on to add “When deciding to serve hemp-related businesses, banks must comply with
applicable regulatory requirements for customer identification, suspicious activity reporting, currency transaction reporting, and risk-based customer due diligence, including the collection of beneficial ownership information for legal entity customers.”

Many in the industry are not interpreting the language as starkly as Weiner. Most believe the statement gets all hemp customers off the hook with banks. However, banks tend to be very conservative and may opt to only apply the SARS guidelines to the growers and not the extended hemp family of CBD producers.


StaffStaffDecember 2, 2019
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7min8990

Currently, there is a bit of confusion regarding the legalization of hemp as an industry in the States. This confusion leads the local government to ban new farmers from attending to their hemp gardens for fear of being penalized under the new law.

The next few paragraphs will hopefully clear all the confusion away and allow new farmers to work on their land without much hesitation and limitation. 

Where the Confusion Lies

The confusion lies mainly with the different individual laws that are passed with regard to hemp production and planting in different American states. Most of these areas act as though they are their country ways exclusive set of laws that only applies to their jurisdiction.

At present, a few news outlets have already expressed their dismay regarding the food and drug administration’s lack of clear cut guidelines regarding the implementation of the new ordinance regarding hemp production.

Some of these experts also tend to confuse CBD (hemp) with marijuana, which is still illegal in some American states. Because of the confusion, most of the so-called independent states that support the legalization of hemp have made some changes in their policies, which prevent new farmers from producing this helpful product and therefore damaging the industry as a whole.

The Effects

In addition to this, some establishments already prohibit the offering of hand based products in fear of the new laws. These bans in some New York establishments have taken effect since July of 2019. 

Law enforcement has arrested many under the assumption that the perpetrators allegedly carry marijuana and have delivered products laced with THC, which is known as the basic component of the plant-based drug in various states in the country.

The Official Statement

In a statement, the FDA said that the regulations and implementing rules regarding the ordinance would vary depending on the accused intent and purpose of use. This stipulation means that the alleged owner of the CBD would be released if they have carried and use the products as medication as opposed to eating it outright.

The agency also has said that they are aware of increased public interest in the use of CBD and are committed to finding ways to allow lawful marketing of CBD in public. This way, people will still be able to reap the health benefits of utilizing CBD or hemp as part of the farming industry.

Individual Policies

For now, the people must be content with each state’s individual ordinance against or for the legal use of hemp in each of these areas. Here are some additional details regarding the allowed amount of hemp in each state.

  • Alabama, Colorado, and Maine allow production and delivery of hemp as long as it has less than 3% of THC in it.
  • On the other hand, Indiana, Texas, and Utah require QR codes to allow this a delivery and distribution of CBD-based products.
  • In New York, some CBD-based products are allowed. However, there are a few that will remain uncertain about using this particular product as an additive in recipes.
  • California allows CBD-based food products as long as there are proper certification and labeling within the packaging itself.
  • New bills and ordinances could be passed for or against CBD Products and its producers in North Carolina.
  • In Alaska, officials will only place and enact new guidelines regarding hemp, its production, and use upon successful testing.

The U.S. is one of the proponents of the legalization of CBD-based Products in the world. However, it seems that the lack of clear regulation regarding the production of this product is most likely to affect the popularity of the product within the country itself.

The FDA certainly will make sure that they can provide the necessary evidence and tools that could help producers and vendors of these products to benefit from the ever-growing CBD industry, not only the U.S. but all over the world.

Conclusion

It is certainly just a matter of time, so if you are interested in becoming a CBD producer, it would be best to know the product itself and the regulations involved in making it. This way, you will be safe in running the business. You should look at some of the best weed strains available in the market before making your final decision. This way, you will get the best out of the product in the future.

Guest Post by Alan Wood.


StaffStaffNovember 16, 2019
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7min6611

The USA has a new boom for hemp farmers. Though it is forbidden to consume cannabis at the federal level, 33 states legalized its usage for medical purposes and 11 states don’t mind about you smoking hemp for your personal advantage. 

Let’s distinguish the difference between hemp and marijuana. There are over 50 thousands of goods that have hemp as one of the ingredients. They include clothes, cosmetics, beverages, food, construction supplies, etc. These two types of crops are cultivated from one sort of plant, Cannabis sativa L. However, hemp has only 0.3% of THC (Tetrahydrocannabinol), the addictive component of marijuana. This means, that hemp can’t make you high and doesn’t have a similar effect as smoking a joint of marijuana. 

According to Barclays Bank and EssayShark, the size of the legal cannabis market reached $28 billion in the past year. If the USA legalizes the full cannabis market, it will enhance to $41 billion by 2028.  In case the medical usage is legalized in Europe and at the federal level, the market will grow to $55 billion. It’s logical that such perspectives attract lots of investors. This fact led to the appearance of many hemp-related startups in 2018. At the beginning of 2019, their total value was worth $1.2 billion.

It’s not surprising that these tendencies and potential increased the number of new hemp farmers. There are limits to growing cannabis, but they are quite ridiculous. For example, you can’t grow more than three sorts of the plant. A person can freely grow up to 6 bushes of hemp. People who managed to “catch the wave” of planting cannabis have now grown to the earning millions of dollars. The average price for their final product is seven thousand dollars per one kilo. Farmers are sure that it’s better to work legally and the prohibitions only support the drug dealers and the development of the black market.

The product that had been illegally brought to the USA turned into legal goods. Authorities imposed taxes and customs on them. Workers involved in the hemp industry obtained official employment, government establishments started checking the quality of the product. As a result, the price for legal cannabis increased by 5-6 times in comparison to the illegal options. Many people with low budgets prefer purchasing under-the-table weed instead of paying more. Thus, the new hemp farmers who want to have a stable income must sell their product almost without any retail margin to compete with the existing offers until they have a stable audience of customers. 

Due to the high demand and the global madness over an opportunity to earn money in this industry, many people attempt starting their own production of hemp. Those people who have never had experience with anything related to agriculture (it is agriculture by any measure) have a strong belief that it’s a piece of cake. New hemp farmers usually make the same mistakes. They don’t compile a harvest plan and take into account the weather conditions. As a result, they might lose their yield or have a smaller amount of crop than expected.

Another reason that influences the new businessmen is their confidence in finding the customers or contractors for selling their products. Experienced and considered farmers search for the contractors prior to planting the crop. Therefore, they can estimate the approximate number and the workforce required to cultivate and process the product. The majority of new farmers rely on independent contractors who have to cultivate, harvest, and dry their crops. Unfortunately, many such contractors make only verbal promises and don’t satisfy their customers’ needs. As a result, farmers fail to yield and process hemp to have a final product for sale. 

It’s difficult for amateur farmers to enter the market and beat the competition. The huge processing and harvesting companies in the industry leave almost no chances for small businesses. Thus, even if you consider all the negative factors like unfortunate weather, low prices, lack of labor, and create a perfect harvesting plan, there is still a high possibility that you might push your income into the red. The industry is facing the oversupply of hemp which leads to the decreased rates. Many farmers hurry to fire-sale their crops to anyone not to lose all the money and efforts put into the cultivation, harvesting, and processing. 

The hemp market is definitely flourishing in the USA. Unfortunately, the equipment, workforce, knowledge, skills, and time required to grow cannabis might be too much for the newbie farmers. They tend to underestimate the efforts and financial risks for entering this sphere. 

Guest post by Kelly Pethick


Kaitlin DomangueKaitlin DomangueOctober 30, 2019
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5min6780

The United States Department of Agriculture has released a draft for the regulation of hemp in the US. The official rules will not be released yet. Geoff Whaling, chair of the National Hemp Association, says once the rules are released they will be temporary for the first year. This allows the states to participate in hemp cultivation and processing for the 2020 growing season. It also allows all stakeholders the opportunity to begin to implement the regulations and determine areas that need to be improved. 

“At USDA, we are always excited when there are new economic opportunities for our farmers, and we hope the ability to grow hemp will pave the way for new products and markets,” said Secretary Perdue. “We have had teams operating with all hands-on-deck to develop a regulatory framework that meets Congressional intent while seeking to provide a fair, consistent, and science-based process for states, tribes, and individual producers who want to participate in this program.”

From the draft, “under this new authority, a State or Indian Tribe that wants to have primary regulatory authority over the production of hemp in that State or territory of that Indian Tribe may submit, for the approval of the Secretary, a plan concerning the monitoring and regulation of such hemp production. For States or Indian Tribes that do not have approved plans, the Secretary is directed to establish a Departmental plan to monitor and regulate hemp production in those areas.”

The rules also cover other important things like where hemp can be grown, THC testing standards, biomass transportation, licensing regulations, and more. 

“The laboratories conducting hemp testing must be registered by the DEA to conduct chemical analysis of controlled substances (in accordance with 21 CFR 1301.13). Registration is 15 necessary because laboratories could potentially handle cannabis that tests above the 0.3% concentration of THC on a dry weight basis, which is, by definition, marijuana and a Schedule 1 controlled substance.” It also has been stated that there has been a consideration to establish a fee associated with hemp testing for THC. 

If a plant exceeds the legal level of THC, it must be disposed of properly. The draft states “if a producer has produced cannabis exceeding the acceptable hemp THC level, the material must be disposed of in accordance with the CSA and DEA regulations because such material constitutes marijuana, a schedule I controlled substance under the CSA. Consequently, the material must be collected for destruction by a person authorized under the CSA to handle marijuana, such as a DEA-registered reverse distributor, or a duly authorized Federal, State, or local law enforcement officer.”

There also many details within the drafted rules regarding licensing. “To produce hemp under the USDA plan, producers must apply for and be issued a license from USDA. USDA will begin accepting applications 30 days after the effective date of this interim rule. USDA is delaying acceptance of applications for 30 days to allow States and Tribal Governments to submit their plans first. This is to prevent USDA from reviewing and issuing USDA licenses to producers when there is a likelihood that there will soon be a State or Tribal plan in place and producers will obtain their licenses from the State or Tribe.”

It is exciting to see these rules finally being put into place so hemp can be well regulated in the United States. These guidelines should clear a lot of the gray areas that have been causing confusion about US hemp production, allowing for a better-regulated industry that will benefit the economy and community.

 


StaffStaffOctober 22, 2019
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8min5280

With the world in dire need of sustainable solutions to secure the future, hemp has understandably become one of the most valuable options for the job. As hemp is set to be a global commodity with economic prospects that even Wall Street is drooling over, innovation in this market is key. One start up has tackled an area for hemp that is arguably one of the smartest to focus on at the moment: Hospitality. The total retail value of the global hotel industry was projected to cross $500 Billion in 2018. The Total revenue of the hotel industry in the USA alone was projected at $200 Billion for 2018. So, introducing hemp to this industry could be a game changer. This is what the San Francisco based company MoonCloth Designs has decided to do.

Today MoonCloth Designs announced the launch of ‘MOMENT’, a Hemp Wellness Collection focused on bringing more eco-friendly hemp-based bath + body products to market. 

“We are driven to bring hemp into the sustainability spot light as an eco material solution. We started off working with hotels and spas to provide more sustainable solutions to their environments. We are now launching our own hemp wellness collection which showcases are beautiful hemp robes and hemp seed oil body products, which is now available on our online store and select retail partners,” explained Founder & CEO Sarah Harf.

Working with boutique and luxury hotels and hospitality brands like Soho House, Design Hotels, and Sensei Resorts, MoonCloth Designs is redefining the meaning of the word “wellness” by crafting elegant and sustainable solutions to hospitality environments, including custom hemp textiles design services and hotel room/spa amenities.

“By designing sustainable solutions using hemp, we can find beautiful and luxurious alternatives to synthetic body products, plastics, textiles, and positively change the future of our environment,” says MoonCloth Designs CEO & Founder, Sarah Harf. “Hemp seed oil and hemp fabric are great eco materials that allow us to create natural experiences without sacrificing design aesthetic.”

The critical component to MOMENT is the robustly regenerative plant hemp. Hemp purifies the soil of toxins like nitrogen and selenium, restores nutrients into the ground, and can sequester 1.62 tons of carbon dioxide for every ton harvest. Fibers made from hemp are anti-microbial, hypoallergenic, and free of synthetic materials and microplastics. Hemp seed oil is rich in omega-3 and omega-6 fatty acids, which help reduce inflammation and cell growth. It is also naturally hydrating and regulating the skin’s oil production.

“Our hemp-based products have tons of natural benefits for our bodies and our environment,” adds MoonCloth Designs Co-Founder Kelsi Lavicka.

Rooted in the daily practice of self-care and a love of natural beauty, MOMENT invites people to weave grounding moments into their daily lives by taking home the spa experience and aims to show the world that sustainability and high-end luxury are not mutually exclusive. 

The MOMENT wellness collection includes a multitude of luxurious hemp-inspired products, such as:

Moon Glow Oil – This potent and luxurious oil delivers long-lasting moisture for smooth and supple skin. Offering an abundant dose of antioxidants and high levels of omega’s; this synergistic blend of Hemp Seed Oil, Calendula and Rose is calming and regenerative, leaving you luminous.

Sacred Space Mist – A spritz for higher spirits, this transformative facial mist is equal parts skin tonic and mood regulator. Brimming with the potent yet calming benefits Hemp, Lavender, Patchouli and Clary Sage, this plant remedy will tone and brighten the skin and refresh your aura.

Tradition Hemp Silk Blend Kimono – Devoted to the long-time use of hemp and Japanese bathing culture, this hemp silk robe is luxury at its best. Uniquely blended with hemp and pure silk, free of harmful synthetic and polyester materials. Soft to the touch, this robe has a lightly weighted feel creating a beautiful shape as it falls against any body type. Other hemp robes in the MOMENT collection include natural hemp terry robe and a hemp fleece robe for men and women. 

In the MOMENT Kit + Hemp Cosmetic Bag – A complete hemp wellness package. The In the Moment Kit – Hemp Cosmetic Bag contains: 1 Meditation Oil in 10ml, 1 Moon Glow Oil in 30ml, 1 Sacred Space Mist in 30ml, 1 Restful Warrior Hemp Silk Eye Mask. All you need to take a pause and begin again. This kit features each item from the MOMENT collection, offering you a fully holistic experience. Designed to feed your skin, soothe your senses and keep you grounded on the go. Perfect for travel and whenever you need to focus and reconnect. 

With every MOMENT kit purchased, they are given 25% as a donation to ANIWA, a non profit event, produced by the BOA Foundation. ANIWA is focused on indigenous-lead projects including strategic land buy back, restoration of native ecosystems, reforestation, cultural exchange and sustainable living solutions. Hemp as regenerative plant that is a great solution for deforestation. Hemp produces more paper per acre than any other commercial forest . 

 


StaffStaffJuly 29, 2019
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14min62582

Guest submission from Ivan Green.

Hundreds of people have been benefited from using Cannabidiol (CBD) – a substance scientifically proven to be safe for human consumption – even for children! 

It not only has a wide range of therapeutic benefits but also has been useful for treating numerous serious ailments and disorders. 

However, not all products touted as “natural CBD oil” are actually as natural they claim to be. 

Natural CBD is admittedly safe. But they don’t include products that are made from synthetic lab-produced cannabinoids or contain contaminants, high levels of hallucinatory cannabinoids like Tetrahydrocannabinol (THC) or other harmful substances. 

Using such products will do more damage to you than simply making you fail a drug test. You can end up falling horribly sick or even dead! 

With the growing popularity of CBD products, some unscrupulous cannabis growers and CBD oil manufacturers are taking advantage of loopholes in the existing regulations and the vulnerabilities of the common man in this country to push their business forward with cheap, artificial and untested products in the name of CBD oil. 

Cheap Synthetic CBD 

From a once non-existent market category to a $1 billion industry, the hemp-derived CBD has become a booming industry today. 

But, it was disheartening to hear of 50 people falling severely ill after using CBD oil in Utah last year. It is worse when we find out that the oil that those people unwittingly smoked up thinking it was genuine CBD vape oil did not even contain any natural cannabinoid, but contained some lab-produced synthetic cannabinoids

The reason why people fall for these products are usually because of three reasons: 

  1. Their low price, 
  2. Tall promises of curing all health conditions, and 
  3. Claims of not being detected on a drug test. 

The unfortunate thing is these people were plain and simple duped! The company lied to its customers, and as a result, harmed them in ways that their unwary consumers were not prepared for. 

These dangerous designer drugs had prompted the US Centers for Disease Control and Prevention (CDC) to issue a nationwide health warning about these man-made synthetic cannabinoids. 

This is precisely why most reputed brands who sell genuine products are obligated to present their proof of their genuineness to their customers. They post the results of their products tested by third-party laboratories, also known as a Certificate of Analysis, which tests not only for synthetic components, but also other contaminants like heavy metals and pesticides and heavy metals as well as natural cannabinoids that possess hallucinatory effects, like THC (tetrahydrocannabinol, a natural cannabinoid found in cannabis plants).

Spice 

Known by different names – K2, Spice, Mr. Happy, Scooby Snax, and Kronic – is nothing but a group of lab-made synthetic cannabinoids that have been associated with a lot of people falling sick.

Originally designed by scientists for research, this drug is made from dried plant materials, sprayed with hallucinogenic chemicals. 

However, with the production method of this drug being published in scientific journals as part of their research, this knowledge also fell into the hands of some unscrupulous, over-ambitious drug makers, who used it to produce illicit drugs.

Once it hit the market, it came out as a new form of marijuana and people started rolling up the plant material into “joints” and smoking them like marijuana. 

This synthetic marijuana or fake weed is also sold in a liquid form that can be inhaled through a vape pen or mixed in tea to consume. 

Although these are man-made cannabinoids, it has the same effect on the human brain (especially the endocannabinoid system) as THC, but with far more intensity (even up to 100 times more intense). 

With no way to regulate them, there is no saying which hallucinogens are being used by the manufacturers to make their products.

The “Free” Scam 

Nothing in the CBD world is free. It simply can’t be. Manufacturing a bottle of genuine, natural CBD oil is expensive. If anybody tells you otherwise, be sure you are being tricked. 

While searching for CBD oil online, if you come across phrases like: 

  • Best Price, Limited Offer
  • Limited-Time Special Offer 
  • Special Discount For Only Today

Then be alert. Look up the brand and find out if their products are genuine. 

And if you see:

  • CBD oil free trial 
  • Or, they tell you to submit your credit card to free stuff 

DON’T BUY, REPORT. 

Some “free sample” offers are nothing more than hidden subscription ploy to force you to give away your credit/debit card details, which they will use to forcefully sell you low-quality products. You may even find it difficult to cancel the alleged subscription. You may have to call up your bank or credit card company to cancel their card to stop payments. 

Some other scammers will charge you more for what they are selling by simply calling it shipping and processing fee (while they send you a low-quality product). 

Quite a few reputed CBD brands offer quality products at a fair price. Do due diligence while looking for a CBD product and research on their makers. Find out everything you can about a company and the brand before you blindly fall for such “Free, Free, Free” lure. 

Pushing Hemp Seed Oil Instead of Hemp CBD 

Another reason for the confusion among users and abuse of the market is ignorance. Not only do you need to be wary about “fake CBD” and “free samples”, but you should also learn everything there is to know about how CBD is sourced and manufactured. 

If you have, you would know that hemp seed oil is not CBD oil derived from hemp. 

So, when you research on any brand, look for its ingredients on the label or their website. 

If it is Hempseed Oil, it will be listed as Cannabis Sativa Seed Oil.

If it is genuine CBD oil, you may see Cannabidiol, full-spectrum hemp, hemp oil, PCR (phytocannabinoid-rich) or PCR hemp extracts written on the label.

Also, look at their CoA for their products on their product webpages. 

Yes, they are lab tests, but not difficult for a layman to read and understand. It is meant for you, so it’s really quite simple. 

Hemp seed oil: Although a good carrier oil for CBD, it is not the same as CBD oil. So what is it? 

For that, you need to know where CBD oil is sourced. The best quality and most potent CBD oils are produced from hemp flowers. While the rest of the plant – like its leaves and shoots – may be used too. But, they have far less CBD content. 

The smaller seeds, in particular, have the least amount of it – traces at the best. Hemp seeds can be used to make hempseed milk or granola. They can also be cold-pressed to produce oil. But this oil is only good for cooking, making beauty products, or making paint. 

While hemp seed oil does have some benefits, like mild anti-inflammatory effects and skin moisturizer, it does not have sufficient levels of CBD to be called “CBD oil”. 

This means you would end up paying much for the product that it deserves. Intentionally or unintentionally, some companies try to push a cheaper product like hemp seed oil. 

Tricking Consumers with Products with low CBD content

Apart from hemp seed oil, there are other CBD products that don’t contain enough CBD to have any perceivable health benefits. 

Always look for the CBD content in mg on the label. This is the concentration of the CBD contained in the product. The total volume of the liquid does not guarantee CBD content. 

For instance, a 3 oz. bottle of tincture, priced at $50 and containing only 100 mg of CBD, may seem like a good deal. But, it is actually not. It is costing you $0.50/mg. A 1 oz. bottle, priced at $132 and containing 3000mg of CBD, is, in fact, a better deal ($0.04/mg). 

Making Sure You Get Quality Product 

By now, you must have understood that buying CBD oil isn’t as easy as you may have thought – click-click-click. 

You need to do a lot of research…

  • Research on how CBD oil is sourced, extracted, processed, purified, and the end product manufactured. 
  • Research on the companies and brands selling the products
  • Studying the CoAs, if they are provided by the companies. If they are not provided, they are obligated to provide one on request. 
  • Understanding the current market situation and the presence of synthetic cannabinoids, scammers, and cheap variants with tall claims.
  • The actual health benefits of CBD, so you don’t get lured by brands that make outrageous claims like curing cancer! 

Always make sure you get a high-quality CBD product when you place your order. Never let promotions, discounts or unrealistic claims fool you. 

When it comes to buying CBD, there is no bliss in ignorance, only suffering!



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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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