The #CBD Wave is
Coming: How Companies are Prepared to Meet Market Demand: (NASDAQ: $VFF) (OTC:
$HIPH) (OTCQB: $SOLCF) (CSE: $LOVE.C)
Point Roberts WA,
Delta BC – March 28, 2019 - Investorideas.com, a leading investor news resource covering
hemp and cannabis stocks releases a snapshot focusing on the rise of CBD within
the overall cannabis market in the US and internationally, and how companies
are preparing to deal with this explosive market.
With the passing of
the 2018 Farm Bill in the US, CBD represents a developing sector with many
vendors now seeking national reach to US customers. The rise in popularity for
CBD products is driven by consumers seeking natural-based health & wellness
solutions to treat various ailments; from inflammation, to anxiety and insomnia
amongst many others. As a result, the hemp-derived CBD market has been
estimated to reach US $22 billion by 2022.
One of the larger
companies in the CBD space, Village
Farms International, Inc. (TSX: VFF) (NASDAQ: VFF) recently applauded the actions of the
Texas Department of Health and Human Services in de-scheduling hemp, including
its cannabinoids (except for delta-9 tetrahydrocannabinol (THC) in compliance
with the 2018 Farm Act and Texas law.
Under Texas law, the removal of hemp from the controlled substances
schedule will be effective on April 5, 2019, 21 days after the schedule's publication.
Texas still must pass a hemp bill to enable the creation of a State Hemp Plan
under the 2018 Farm Act and develop a thoughtful regulatory regime to support
the hemp industry and protect consumers.
With more CBD markets
opening up, American Premium Water
Corporation (OTC: HIPH), a diversified
luxury consumer products company focused on businesses in the health and beauty
and biotech sectors, recently announced that it has engaged A&R Opportunity
to manage and fund a national sales team based out of Northeast Ohio that will
help market and sell the Company’s products nationwide. The arrangement was
necessitated by overwhelming demand for the Company’s products, including its
LALPINA CBD beverage and CBD topical products from its most recent acquisition
of plant + body essentials.
CEO of American
Premium Water Corporation, Ryan Fishoff commented, “I am pleased to announce we
have engaged with A&R to help oversee the Company’s national sales
strategy. The inbound demand has been overwhelmingly strong and it became
apparent over the past few weeks that the Company needed more assistance in
managing and servicing sales accounts. Their location in Northeast Ohio also
provides us with a presence in the Midwest, an area that we have not been
focusing on, but over the past few months became clear to the Company was an
area that needed to be addressed with burgeoning demand for CBD products. The
terms of the agreement were also very favorable to the Company, as it is performance
based, so all party’s incentives are aligned. This will be beneficial for the
Company going forward as we look to continue to expand our distribution
footprint nationwide and rollout new products in the coming months.”
The non-alcoholic beverage marketplace is estimated to
generate revenue of approximately USD$1.2 trillion by 2023, according to Markets and Research analysis.
Companies employing innovative marketing strategies, more flavor choices, and
the use of natural, high-quality ingredients will continue to drive market
growth in the category.
This may explain why SOL Global Investments Corp. (CSE: SOL) (OTCQB: SOLCF) just announced its investment in
leading premium soda-maker Jones Soda Co.
SOL Global's total
investment represents approximately 8.19% of the total issued and outstanding
common shares of Jones Soda which, based on publicly available information,
makes it the company's largest stockholder. SOL Global has filed a Schedule 13D
with the United States Securities and Exchange Commission describing its
investment in Jones Soda.
Cannara Biotech Inc. (CSE: LOVE) is also looking
into marketing and distribution for CBD, having recently announced that its subsidiary,
Global shopCBD.com Inc. has closed private rounds of financing for aggregate
proceeds of $8,865,849.15.
From the news: "As the hemp CBD consumer
markets continue to evolve, what is increasingly clear is the health and
wellness segment is becoming more prominent," said Zohar Krivorot,
President and CEO of Global shopCBD.com. "The high level of investor interest
in participating in shopCBD.com underscores the potential of both CBD products
overall and moreover, a best-in-class online platform to serve this
market."
There can be no doubt
that the CBD sector is about to take off as consumers wait impatiently for
products to become available, but is the industry properly prepared? As we saw
with recreational cannabis in Canada, many companies are likely to be
unprepared to keep up with supply, but there are numerous companies like the
ones above heeding the warning signs and taking the proper preemptive actions
to ensure they are ready when the CBD flood gates open.
For investors
following cannabis stocks, Investor Ideas has created a stock directory of publicly traded CSE, TSX, TSXV, OTC, NASDAQ, NYSE, ASX
Marijuana/Hemp Stocks
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