The Federal Legalization of CBD and Hemp Will Open Up Many New Markets

Why is the CBD market going to explode in the next few years?

The Cannabis industry in the U.S. may well very much explode after this year in 2018. One cannabis analytics firm by the name of Brightfield Group is forecasting about a 145% annual growth rate during the next 4 years due to the CBD market. The 2018 farm bill that was just approved by a landslide in the House of Representatives. It approves $867 billion dollars which will revitalize the industrial hemp industry in the United States. Hemp can be used for a variety of products which include textiles, paper products, bioplastics, oils, and food-related items. Hemp also contains a non-psychoactive compound called cannabidiol  otherwise known as CBD.

What kind of CBD products can you expect to see now that it’s legal?

CBD is creating quite a few opportunities for brand new markets and this article highlights a few interesting CBD stocks towards the end. There are a variety of CBD products already being sold online and in retail stores. Some of these products which include oils and tinctures. Be on the lookout for CBD-infused beverages which I will explain a little bit later and how howhow big of a market CBD could potentially be. I myself wouldn’t mind trying a cup of CBD-infused tea.

Is Cannabis one of the oldest agricultural crops?

Hiszorical evidence has shown that it is likely that cannabis sativa has been one of the first agricultural crops planted by our ancestors. This is because that the earliest evidence of agriculture it’s roughly from 10,000 years. Another reason why people feel this is the case is that a marijuana plant is very versatile in what has offered people in many societies around the world.  Every single part of this plant has been used for some reason or another. The earliest evidence cannabis being  use for anything was as food. This was shown by the seeds and oil cannabis oils that were found in China as early as 6000 BCE.

How have different societies around the world used the cannabis plant?

The history of people using cannabis or hemp is also pretty ancient and found all over the world. There is evidence of textiles being made from hemp or cannabis found also in China and in Turkestan as early as 4000 BCE.  Viking graves dating to the year 850 have shown that people were buried with hemp rope and cannabis seeds. The Arab world was significant in the history of paper as they were making paper out of hemp in the year 900.  Italians were using hemp rope by the year 1000 on their sailing ships a thousand years ago.

What is the earliest medical record of cannabis?

People have also been using cannabis for pain relief for a very long time. The earliest record of this comes from a Chinese encyclopedia on agriculture and medicine that dates back to the year 2900 BC. This ancient Chinese book of remedies is called The Shennong Ben Cao Jing. That would make it the oldest written record of cannabis as a medicine. It specifically recommends cannabis for treatment for a variety of issues that include Rheumatic pain, malaria, and constipation.

How did Hemp and cannabis production become illegal in the United States?

Starting in September of 1937, the prohibition on cannabis and hemp began due to the Marihuana Tax Act of 1937. Taxes apparently can kill an industry; well I guess, two medical marijuana and industrial hemp production. Hemp represented serious competition to the paper industry and that was one of the reasons why cannabis even became a  prohibited in the first place. William Hearst and Henry anslinger we’re both instrumental and drafting the Marihuana Tax Act of 1937. This basically eliminated  any kind of hemp production in the U.S. so William Heart’s paper industry would have no competition.

How is hemp and weed different?

Hemp and marijuana are both cannabis species but hemp will not get you high whereas weed will get you stoned. This is due to the psychoactive cannabinoid called THC that is found in marijuana. This compound was first identified by an Israeli researcher of medical cannabis. Both contain the cannabinoid called Cannabidiol which we know as CBD. Hemp is commonly referred to as cannabis ruderalis in scientific terms.  Medical and recreational marijuana comes in two major species. These are known as cannabis sativa and cannabis indica.

How does CBD work in the human body?

Here is a quick scientific summary of how CBD actually works. The effectiveness of CBD involves explaining how the endocannabinoid system works in the human body.  Endocannabinoids are neurotransmitters that will bind to cannabinoid receptors found in our nervous system. The endocannabinoid system is found in everyone  is instrumental in regulating a variety of human functions such as pain, appetite, sleep, and the immune system response. This is why it is believed of how CBD can help with a variety of issues such as reducing inflammation, pain relief, and variety of other medicinal benefits..

Who is GW Pharmaceuticals and how are they significant in medical marijuana drugs?

GW Pharmaceuticals (NASDAQ: GWPH)

There is absolutely no doubt that CBD can be used to treat many things and even pharmaceuticals are trying to cash in. It is about time that the DEA rescheduled CBD and has been a long time coming considering we now have our first FDA-approved cannabis-based drug. GW Pharmaceuticals came out with the CBD-based drug called Epidiolex and it was approved by the FDA earlier this year. Epidiolex is a CBD-based pharmaceutical that is used to treat people suffering from different forms of epilepsy. This company also came out with a pharmaceutical oral spray called Sativexthat contains both cannabinoids CBD and THC. It  is used around the world to treat various symptoms caused by multiple sclerosis. Sativex is also been shown to help with pain associated with rheumatoid arthritis.

GW Pharmaceuticals is pretty interesting because they have been in the cannabis industry for a pretty long time.  They were able to get a cultivation license from the UK government which allowed them as pharmaceutical company to cultivate cannabis from seeds and clones for medical research. This pharmaceutical company collaborated with another cannabis research company from Amsterdam that grew medicinal marijuana strains for the Dutch government.  They are rumored to be the guys that brought the cannabis cultivation world the original OG Kush strain.

What medical applications does CBD have besides pain relief?

CBD oil has a variety of useful applications other than pain relief as already mentioned. An additional application for CBD oil is it is also used to treat anxiety and depression effectively without nasty side effects. CBD can be used to treat insomnia.  CBD can help with symptoms such as nausea and vomiting which is why it is helpful for many people suffering from cancer related treatments. It has also been shown to help slow down the spread of breast cancer in mice. Due to the anti-inflammatory properties found in CBD oil, it can also be used to treat acne which helps reduce pimple-causing sebum production. Lastly, CBD has been shown to actually  shown to be a natural method to reduce high blood pressure.

How did the 2018 Farm Bill change the legality of CBD in the U.S.?

The 2018 Farm Bill is going to open up a lot of different new product markets containing CBD.  The CBD-infused beverage markets will be interesting how they emerge. The fact that the DEA is not going to go after CBD-related products is big news for many industries that want to get into CBD-infused products. No doubt I will see many of the CBD-infused beverages at medical or recreational marijuana dispensaries near me!

What are some of the biggest CBD-infused beverage deals?

Molson Coors Brewing Co (NYSE: TAP) & HEXA Corp.(LLC)

Constellation Brands (NYSE: STZ)  &  Canopy Growth Corporation (NYSE: CGC)

There is a lot of deal-making happening with the beverage industry right now having to do with CBD. One is a notable joint venture with Molson Coors Brewing Co and a Canadian company out of Quebec called HEXA Corp. They formed together for the purpose of making cannabis-infused beverages which contain CBD. Shortly after that deal, Constellation Brands ( the holding company that owns Corona and other brand names)  made a $4 billion investment in Canopy Growth Corporation that would become the largest deal in marijuana history! Constellation Brands now has 37% Equity ownership of canopy growth Corporation so they are in it for the long-term..

What are some deals happening with CBD-infused water?

Puration,Inc. (OTC: PURA) &Alkame Holdings, Inc. (OTC: ALKM)

Along with CBD-infused beverages, there are also deals happening for CBD-infused water.  Two companies, Puration and Alkame Holdings have formed a partnership to come out with the CBD-infused water called EVERx Bottled Water. A UFC women’s fighter by the name of Julianna Peña will be the first spokesperson for EVERx Bottled Water. This water is unique and contains patented technology from ALKM \which changes the structure of hydrogen bonds. This process creates water with a more efficient delivery method of CBD and really effective hydration.

Are there any CBD infused  coffees or teas?

New Age Beverages Corp. (NASDAQ: NBEV)

Another beverage company to look at is called New Age Beverages. This company makes a variety of drinks which include coffee, teas, Kombuchas, energy drinks and even relaxation drinks. One interesting thing about New Age is they are not just planning on focusing on the US market alone with their CBD products..

What about some CBD-infused cosmetics?

After all CBD (Cannabidiol) has been shown to be able to treat symptoms of acne so why not.

ChineseInvestors.com, Inc. (OTCQB: CIIX)

Another CBD companies I wanted to mention was a  small CBD company located out of Los Angeles, California. This company is pretty unique because they are pretty much going after the Chinese market in a specific way with CBD products.  Cannabis is illegal in China but hemp-based CBD can be added to cosmetics legally.  China represents a significant market demand for CBD products in this way considering their population.

What are some other interesting CBD stocks to watch out for?

OWC Pharmaceutical Research Corp. (OTCQB: OWCP),

OWC Pharmaceutical is an innovator of medical marijuana therapies based from from Israel.

This company is a research and development their R&D focus is on pharmaceuticals and medical treatments based off of cannabis. They are an interesting company exposed to the global medical marijuana market. It will be interesting to see what medical treatments they come up with their research from medical cannabis.

Cannabis Science, Inc. (OTC: CBIS)

Cannabis Science, Inc. is a U.S. company that provides natural-based healthcare services. They develop cannabis-based medicines. Some of these methods utilize cannabis-based medicines. One thing that is interesting about their approach with medical marijuana is that it mitigates hospital visits. The reason why is the patient is in charge of self-medication of their medicine. This company is also involved in drug development and clinical research to come up with novel therapeutic approaches with cannabis.

Right now, they have an inhalation product for Asthma and COPD. There is also a CBD-infused pain patch in their product lines.

 

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