For many entrepreneurs, this seems like the perfect time to cash in on the green rush. As it stands more than half of the US have currently implemented laws that allow the state to have some form of Marijuana program, whether it be medical or recreational.Though, in the past few years beyond enjoying marijuana for its psychoactive property, THC, another compound of the marijuana plant, cannabinol also known as CBD, whose main attribute is to provide medical benefits for those in need of alternative treatments for various issues. So, with CBD being such a commodity to the industry and just like any hot product in demand, business is booming.
Cannabinol (CBD) has a long history of being put to good use to treat health issues. At one time, it was said that Queen Victoria would use CBD for menstrual cramps back in the 19th century. Later on, using animals for investigative research had long suggested that CBD had the ability to lessen anxiety and lower the severity and recurrence of seizures. Yet, up until a few years ago, CBD-rich strains were typically not available to cannabis users in California as well as other areas. It wasn’t until early 1940s and early 1960s, a 2-decade time gap, where the world would make its initial introduction to the compound we know as CBD.
Right now the use of CBD products is becoming a trend that is expanding at a fast pace in America. Everything from hemp-derived CBD vaporizers to high-CBD strains like AC/DC and Harlequin or Charlottes Webb are becoming more and more popular for medication. Back in 2014 CBDs sales across the US brought in $108 million and today those numbers have tripled as the sales for 2017 show over $358 million. In fact, industry analyst predict that by the year 2020 we could see this area of the marijuana sector gross over a $1 billion. With figures like these it’s no wonder why companies like GW Pharmaceuticals plc (GWPH), PotNetwork Holding, Inc. (POTN), and Medical Marijuana Inc. (MJNA) are heavily active and engaged with users and patients to provide the best quality product for those in need.
Industrial hemp advocates who favor domestic sources of CBD oil are on firmer ground because of the 2014 Farm Bill, which defined hemp's distinction from marijuana as any cannabis plant with a THC level of less than 0.3%. In effect, the Farm Bill was built to perpetuate marijuana prohibition while carving out an exception for U.S. farmers to grow industrial hemp for CBD oil extraction and other purposes.
The vast therapeutic and economic benefits of CBD-rich products have catalyzed a rebirth of industrial hemp farming in the United States. The Farm Bill requires farmers in states that legalize hemp to cultivate their crop as part of a state-sponsored or university-affiliated pilot research program. However, the scope of the Farm Bill is interpreted differently by different regulatory agencies. Hemp is an agricultural commodity, not a drug, and the DEA insists that the Farm Bill does not authorize commercial production of CBD oil.
Yet it’s happening anyway. And consumer demand for CBD is growing, despite the DEA’s stubborn refusal to acknowledge that CBD-rich cannabis – or any kind of cannabis – can confer medical benefits. Beyond the appeal of the opportunity for investors, this is becoming the golden age for celebrities to get on board the legal MJ train. In fact, many are cosigning specific companies for their own branded products through either JV's or white label deals for products that are based on CBD.
With this being said, if we can get more people to see and fully understand the upside of using CBD for its true use as a medicine and not a drug, many believe (including myself) that it will be only a matter of time before the Federal Government hops on board to become a part of this movement that's happening in the marijuana industry. For investors, it comes down to well-timed investments in stocks that are on the leading edge of this movement so look for positive earnings, cashflow, and especially growth.
