Best Cannabis Stocks To Invest In This Fall 2021

The cannabis industry is expected to double in total value over the next 3 years, with legal products sales estimated to top $43 billion. That said, right now is prime time to invest and venture capitalists are taking note. Naturally, being an incipient market, there are numerous investment risks to take into consideration so it is important to have a good understanding of industry operations and patterns beforehand.

It can take some time to get educated in all the innerworkings of the complicated and everchanging cannabis industry, so until then, you can check out some of the current top stocks from our list and see if any are a right fit for you.

The cannabis industry is still relatively new, but growing at exponential rates. That’s why now is the perfect time to consider investing. If you’d like to learn more about the industry, make sure to subscribe to The Medical Cannabis Weekly Newsletter, your top-source for all things cannabis-related including more articles like this one and exclusive deals on various legal products.


1. Innovative Industrial Properties

Innovative Industrial Properties (NYSE:IIPR) is probably a name you’re already familiar with, as it’s well known, well performing, and somewhat unique in the industry. This company doesn’t deal directly with cannabis products nor is it really an ancillary company. Rather, it’s a real estate investment trust that specializes in the management of cannabis cultivation facilities, which it leases to growers across the US.

As of now, they only offer property contracts to growers that are licensed to cultivate for medical purposes. The medical market is stable, more widely accepted, and according to recent data collected by Global Market Insights, expected to surpass $15 billion in valuation over the next few years. IIP has a large portfolio in this sector that includes properties in Arizona, California, Colorado, Florida, and Illinois.

Now let’s take a quick look at the numbers. In 2020, the company reported a 162% increase in revenue, as well as a net income boost of 191 percent. In the first half of 2021, they company continued to see growth by 101% in the first quarter and 119% in the second.

In 2020 alone, the company reported that its revenue increased 162% and net income rose by 191% from the prior year. In the first half of 2021, the company’s revenue and net income surged by 101% and 119%, respectively, from the same period in 2020. The company raises its payout on a regular basis and recently announced a 28% year-over-year increase. Additionally, IIR is yielding 2.6% percent, compared to the average of 1.3% noted by S&P 500.

2. Jushi Holdings

When it comes to the type of cannabis stocks most investors think of when considering the marijuana industry, Jushi Holdings (OTC:JUSHF) is one of the first that comes to mind. Jushi is a multi-state cannabis operator has a large portfolio of dispensaries across the US in states such as California, Illinois, Virginia, Massachusetts, and Pennsylvania, its largest market where it current has 15 stores.

Jushi Holdings (OTC:JUSHF) is the kind of stock that most investors think of when looking at the marijuana industry. The multi-state cannabis operator has a fast-growing portfolio of dispensaries and retail locations that run from coast to coast.

Jushi Holdings has locations in Pennsylvania, Illinois, California, Virginia, and Massachusetts. The company’s most substantial presence is in Pennsylvania, where it has 15 stores. Additionally, they recently acquired an 8,000-square-foot medical cannabis production facility in Ohio, where they already sell a large percentage of their products.

Jushi Holdings reported a 220% year-over-year revenue increase in the most recent quarter, as well as 194% raise in gross profits from 12 months prior. Shares are up 80% since last year but they are still affordable enough for even novice investors to consider.

3. Cresco Labs

Cresco Labs (CRLBF), is another multistate operator with business in 10 different states. Their portfolio includes 44 ancillary retail businesses, 18 production facilities, and 32 dispensaries. National brands they represent include Cresco, Reserve, Remedi, and Mindy’s Edibles.

In April of this year, Cresco Labs announced the launch of a new line of low-dose cannabis-based edibles: Wonder Wellness. For now, this brand is only available in Illinois, but they will so be on store shelves in the all the states in which Cresco currently operates.

Cresco reported a 123% increase in sales during Q2, as well as an adjusted EBITDA of $45.5 million, which was 98% higher than the same time last year. In total, they reported a net profit of $2.7 billion, a 106% increase from 12 months ago – making it one of the safest and most reliable stocks in the industry.

4. GrowGeneration

GrowGeneration (GRWG) is the largest operator of hydroponic garden centers in the United States. Although they have been on a bit of a roller coaster ride this year as far as stock prices rising and falling, overall, they have been on a steady rise with shares doubling annually over the last 3 years.

In July 2021, GrowGeneration announced the acquisition of Michigan-based company HGS Hydro. In total, HGS operates seven stores and they are the third largest retailer of hydroponic products in the US.

In total, GrowGeneration operates 65 stores in 12 different states, and they are currently looking to expand into many of the newer markets such as Missouri, Illinois, Arizona, Pennsylvania, New York, and New Jersey. By 2023, they plan to operate over 100 stores across the country.  

Current numbers for GrowGeneration boast a year-over-year revenue increase of 190%, and a net income rise of 161% compared to last year. They also experienced 60% same-store sales growth and raised their full-year sales guidance. Despite some minor setbacks and occasional drop in prices, GrowGeneration is moving up again and stock prices are quite reasonable heading into fall.

5. ETFMG Alternative Harvest ETF

As far as industry stocks go, ETFMG Alternative Harvest ETF (MJ) is a well-known name in the world of cannabis investing and the first ETF to target the industry. Since launching in December 2015, MJ has accumulated an estimated $1.4 billion in total assets, and the company is expected to grow to $66.3 billion in annual revenue within the next 3 years. MJ has an impressive portfolio of Canadian holdings including Canopy Growth and Cronos Group.

According to Kiplinger’s Investment Outlook, “The Prime Alternative Harvest Index looks to embrace a broad strategy that not only invests in companies that grow or manufacture cannabis-related products, as well as CBD stocks; it also invests in those businesses that are likely to benefit from increased cannabis use worldwide. For example, a company such as Scotts Miracle-Gro (SMG) will benefit from the sale of lawn care, gardening and hydroponics equipment to cannabis enthusiasts. It represents 2.9% of MJ’s total portfolio, putting it outside the top 10 holdings.”

That being said, one slight setback to buying MJ stock is that their expense ratio is a bit high at 0.75%. But despite that, it’s an affordable, solid stock with tremendous growth potential.

Final Thoughts on Fall Cannabis Stocks

Right now is the perfect time to invest in cannabis. The market has solidified it’s place in our culture, so we know it’s here to stay, but the industry is still in its infancy so stock prices are affordable and seeing a lot of forward momentum.

Thank you for stopping by CBD Testers, your hub for all things cannabis-related. Remember to subscribe to The Medical Cannabis Weekly Newsletter for more articles like this one and exclusive deals on various legal cannabis products.

For more articles like this one, and for exclusive deals on delta-8 THCdelta-9 THCTHCVTHCPdelta 10HHCTHC-O and other legal THC products, make sure to subscribe to The Delta 8 Weekly Newsletter, your top-source for all things cannabis-related.

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Magic Mushrooms Levitee Labs Entered Canadian Securities Exchange

If you haven’t gotten the memo yet, medical psychedelics are the next big thing, and there are great reasons why, that mare made clear through medical testing every day. To give an idea of just how quickly this is now happening, the magic mushrooms company Levitee Labs has just entered the Canadian Securities Exchange. What does this mean?

It’s not hard to tell medical psychedelics are on their way, with the inclusion of a magic mushrooms company in the Canadian Securities Exchange. It’s a story we know well from the current situation of fighting for legalization of cannabis, and all included products like delta-8 THC, THCV, and THCA. More legalizations means more products, and this is great for you. We can’t wait until we can offer you psychedelics, but for now, take a look at our delta 10, THC-O, THCV & delta-8 THC deals, and the rest of the compounds we have on offer, to find something that works well for you.

Medical psychedelics have been on the rise for several years, with esketamine legalized in 2019 in the US for use with treatment resistant depression and suicidal thoughts (updated 2020), and research on the way to legalize MDMA and psilocybin from magic mushrooms, complete with ‘breakthrough therapy’ status from the US’s FDA. This makes it not that shocking that a country that already legalized recreational cannabis, would be one of the first to allow a psychedelics company into a securities exchange, and that’s exactly what happened.

What magic mushrooms company just entered the Canadian Securities Exchange?

On July 19th, 2021, it was announced that integrative medicine company Levitee Labs, Inc., a producer of magic mushrooms and associated products, would enter the Canadian Securities Exchange on July 21st 2021, which it did, with a starting share price of $.50. This makes it the very first company geared toward the growth and sale of magic mushrooms to enter any global exchange. Which is obviously big news if you follow the expanding world of medical psychedelics, as this now makes it an acceptable route.

Levitee is now traded under ‘LVT’, after it announced that it received final approval from the CSE (Canadian Securities Exchange). Levitee operates under two names: Sporeo Supply, which offers premium cultivation feedstock for mushrooms, based out of a facility in British Columbia, and Monk-E Nutraceuticals, which focuses on a line of nutraceutical supplements based on mushrooms, as well as supplies for cultivating mushrooms. It currently works with non-psychedelic mushrooms, but is looking to include the psychedelic counterpart. The company has a main focus on mushroom extracts, and has already raised over $12 million CAD through private offerings.

mushrooms Canadian Securities Exchange

In order to get this clearance, Levitee needed to accomplish a few things, which were all done. First, it agreed on the acquisition of all of the operational assets of ACT Medical Centres, Inc. This is made up of five clinics for addiction and pain management across the state of Alberta – which came to a total of $350,000, all paid. These clinics have serviced over 35,000 patients in the last year.

Second, it also made a share purchase agreement (when a seller agrees with a buyer for a specific amount of shares at a specific price) to acquire three pharmacies in Alberta by taking over issued and outstanding shares. These pharmacies focus on medications for substance abuse, mental health issues, and chronic pain. The cost of acquisition was $3,685,262.

Lastly, the company made a share purchase agreement for BlockMD LTD, a telemedicine platform geared toward patients with addiction issues who are seeking to get prescriptions and find doctors in Alberta, Canada. This cost Levitee $1,475,000. This was paid with Levitee’s common shares upon closing. In the last year, this platform has hosted over 20,000 doctor visits remotely.

When Levitee completed these steps, it fulfilled the transaction, which made the previous owner, Alex Wylie the principal business operator and a consultant, and Carrie Wylie the General Manager of operations in Alberta. Company CEO, Pouya Farmand, made this statement about the agreement:

“The Agreements we have entered today are integral to our growth strategy and goal of building a platform that will set a new standard for substance abuse and mental health treatment in Canada. Through these acquisitions, we expect Levitee will become the largest non-government provider of addiction treatment services in Alberta.”

What is Levitee Labs?

‘Integrative medicine’ has become a popular term of late, which is almost funny, in that its essentially the same as ‘holistic medicine’ which was badly demonized by pharmaceutical companies not looking to have patients focus on their entire selves when establishing and treating problems. Both holistic and integrative medicine use alternate approaches, or combined approaches, that take into account the full spectrum of a patient, including other health issues, lifestyle, diet, and habits.

integrative medicine

Levitee Labs operates in this space as an integrative wellness company that specializes in providing a central point to complementary wellness services for patients. The company provides products for addiction, pain, and mental health treatments using psychedelic medicine and associated therapies. This includes alternative medicines through evidence-based research, and newly emerging psychedelic therapies like esketamine.

Levitee’s recent acquisition agreement, which allowed it’s shares to become publicly traded assets, is basically a starting platform from which the company intends to administer esketamine therapy, along with other psychedelic treatments, for mental health-related issues, pain issues, and addiction problems. The company is pushing to implement treatments using both psilocybin and ibogaine, once these treatments become legal, or exemptions are made. As the company is based around mushroom treatments, this is one of the major avenues it intends to go down.

How did Levitee make it happen?

The company is using 2021 to increase revenue and grow further, starting with its acquisitions as a base to do so. It plans to continue strategic acquisitions to further integrate into the Canadian market, and further develop itself and its platforms and brands. The company was able to make the moves it made thus far, partially based off of a non-brokered private deal which grossed the company $10,570,000 CAD, the majority of the $12+ million raised privately so far.

Levitee was able to bring in this money because of incredible interest in the company and its efforts, so incredible that the demand exceeded the company’s initial offering by 3.5X. The initial offering was $8 million CAD, with the increase made by issuing 21,140,000 subscription receipts at $.50 CAD/receipt, which came to $10,570,000 CAD. A subscription receipt is a receipt issued by a company before an offering, which is worth one common share of the company to whomever holds it.

This massive interest led Levitee to hire investors to finance special warrants (dividends where the holder has the ability to sell or buy a security before it expires, at a specific price), with each special warrant going for $.50 CAD. This brought in an additional working capital of $1,230,000. All of this, and being the first psychedelics company to enter an exchange, makes Levitee one of the premiere companies in the psychedelics space. In April, the company stated that it expected its 2021 revenue to top $26 million CAD.

Legalization issues and looking ahead

It’s a pretty big deal that a company in the psychedelics space, and which specifically pushes magic mushrooms and associated products, was just added to the Canadian Securities Exchange. In order to do it, Levitee has leveraged some pretty good deals for itself by acquiring already existent companies that have lines into different sectors, like BlockMD LTD which gives a base for a telemedicine network. Levitee has some interesting possible future moves up its sleeve already.

magic mushrooms

The company is also eying direct-to-consumer online supplements and health food wholesale company Earth Circle Organics Inc, which operates mainly in the US. This could help it expand into the US market. It’s also looking at a mushroom based tea company, called BODIE Phytoceuticals Ltd. Lastly, the company is looking toward receiving a license from Health Canada to be a Controlled Drugs and Substances Dealer. It was a late-stage applicant for this license, which is necessary for suppliers of controlled substance treatments in accordance with the Controlled Drugs and Substances Act (CDSA).

As far as magic mushrooms in Canada, though the mushrooms themselves are still illegal, spores, grow kits, and mycelium are all legal, and sold outright. Psilocybin and psilocin, the two main active psychedelic components in mushrooms, are Schedule III under Canada’s Controlled Drugs and Substances Act. Possession, sale, and transport of these substances is therefore illegal, as well as obtaining and producing them without licensing, or a specific exemption for them.

This does not stop online retailers from already selling psilocybin in micro doses, which could be a reason the country began to allow medical use for end-of-life patients in 2020. That same year, 19 health officials obtained the right to administer psilocybin to themselves in order to help in the creation of medicine in the future. Last month, legal actions were threatened by advocates because Health Canada stymied its approvals for psilocybin therapy, with a growing resistance and disapproval to such lagging behavior. Exemptions to use psilocybin therapy are obtained through section 56 of the Controlled Drugs and Substances Act. This legal article better defines the current status of mushrooms, how an industry is likely to get started in the same way as cannabis, and what can be realistically expected in the near future.

Conclusion

In the same way that it becomes clear through the FDA’s designation of a ‘breakthrough therapy’, that MDMA and psilocybin are on their way toward legalization in the States, it says the same thing that Health Canada is already making allowances for psilocybin therapy in Canada. Added to this that Levitee, a company in the magic mushrooms space, was just added to the Canadian Securities Exchange, and the idea that magic mushrooms will be illegal forever goes out the window.

The question with Canada, much like the US, is not ‘will magic mushrooms be legalized for medical use’, but ‘when will magic mushrooms be legalized for medical use.’

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DisclaimerHi, I’m a researcher and writer. I’m not a doctor, lawyer, or businessperson. All information in my articles is sourced and referenced, and all opinions stated are mine. I am not giving anyone advise, and though I am more than happy to discuss topics, should someone have a further question or concern, they should seek guidance from a relevant professional.

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Canadian Hemp Acreage and Export Value Up More Than 20%

According to the Canadian Hemp Trade Alliance, Canada’s hemp acreage and export value are both up more than 20% this year.

“The Canadian hemp industry continues to grow in 2020 despite the challenges posed by COVID-19,” CHTA board chairman Keith Jones said in a statement after the group’s annual meeting, held online this year. “Canada seeded some 92,000 hemp acres in 2019, with exports exceeding $110 million Canadian dollars ($85 million).”

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Although the final figures for 2020 aren’t in yet, experts anticipate that the numbers will be up roughly 20%, as cannabis is the largest exporter of hemp products to the United States. The bulk of the merchandise is oilseed products from Alberta, Manitoba, and Saskatchewan, stated a representative from the U.S. Foreign Agricultural Service.

Canada has limited commercial hemp production to only fiber and grain products until 2018, at which point hemp rules were overturned in that country’s larger Cannabis Act regulating recreational marijuana. Canada now allows commercial cannabinoid production from hemp, too.

“Hemp is here to stay from a regulatory point of view,” Jones said. The CHTA also appointed Ted Haney as president of the group during the organization’s annual conference this year. Haney, who previously held the role of executive director, will also serve as chief executive officer.

In addition to ingestible products, like oil, hemp can be used to manufacture a variety of items. Industrial hemp has long been used in the production of textiles and fabrics, it can be used to make paper, rope, plastic, a concrete-substitute, and even bio-degradable fuel.

Thank you for visiting CBDtesters.co, your prime location for all cannabis-related news. Join us frequently to stay in-the-know, and make sure to sign up to our newsletter so you never miss a thing!

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Heading Into 2021 – Best Cannabis Stocks to Buy, and One Major Mistake to Avoid

The real winner on election day was cannabis. We now have legal, adult use cannabis in 15 states, and roughly 75% of the country has legalized medical marijuana – how does that play out when it comes to stocks?

In total, we have four new states (Arizona, New Jersey, South Dakota, and Montana) with recreational marijuana and another state (Mississippi) that passed legislation to launch a comprehensive medical program. Next year, Florida, New York, and Ohio are expected to pass adult-use legalization measures as well. When that happens, nearly half of Americans will live in a state where they can legally use marijuana.

With so much attention on legalization and future markets, cannabis stocks are expectedly hot. Even despite the pandemic, many cannabis stocks remained stable and have been skyrocketing in recent weeks. Check out the top few companies we’ve been keeping my eye on, and make sure to read to the end to learn about the biggest mistake to avoid when investing in today’s cannabis industry.

To learn more about cannabis, subscribe to the CBD Testers Weekly Newsletter. For deals on flowers and other products, subscribe to the CBD Flowers Weekly Newsletter


Planet 13 (OTC:PLNH.F)

Referred to as the “Disneyland of Cannabis”, Planet 13 is the largest dispensary in the world. At 115,000 square feet, it’s larger than an average Walmart, comparable to a small shopping mall. And it’s much more than just a run-of-the-mill dispensary, it’s an experience. Inside there is a restaurant, a museum, regular entertainment, and a viewing area where customers can watch the manufacturing process of various different cannabis derivatives.

With a place like Planet 13, located right off the Las Vegas strip, there was considerable fear about what kind of effects the pandemic and lack of tourism would have on the business and holdings. In my opinion, what really set P13 apart from other touristy destinations is how quickly hey pivoted to a delivery business model that catered to the local community. At the beginning of the pandemic, around April, Planet 13 shares where selling for just around $1. Now, they’re hovering around $3.50.

“They’ve done an excellent job of adapting to very challenging times and Planet 13, they got hit really hard. They operate right off of the Las Vegas Strip with their superstore there, and of course, when the pandemic hit, tourism just evaporated. But the management team really moved quickly,” says Motley Fool contributor Keith Speights.

“They switched to a distribution model within the state of Nevada and serving the local market more than just tourists and really have managed to get through an extremely difficult time. I think their last quarterly report, their revenue was actually even a good bit higher than it was in the prior-year period. So, I think Planet 13 is really positioned well to come out of the pandemic quite strong.”

Cresco Labs (CNSX:CL) (OTC:CRLBF)

Ever since it was founded in 2013, Cresco Labs has held its ranking as one of the nation’s fasted growing cannabis companies. Cresco Labs is the third largest producer of cannabis products in the country, currently operating 19 dispensaries across nine states, and their products are sold in nearly 800 dispensaries throughout the United States. They manufacture a wide array of products including raw flower, vape cartridges, edibles, prerolls, and cannabinoid sprays and capsules, which they just launched last month

At the moment, this company is just about breaking even but still not profitable. However, shares are trading at a price-to-sales (P/S) ratio of 5.8. That seems high, all things considered, but it’s because investors are convinced they’ll turn a profit with Cresco Labs in the Very near future.

During the first half of the year, nearly all of the company’s dispensaries in all the states where they currently operate saw over 30% sequential sales growth. In California, which is the world’s largest and most competitive marijuana market, Cresco Labs showed quarter-to-quarter sales growth of 41 percent. It’s a strong possibility that shares will go up when the company reports their third quarter earnings, with will be released on November 18.

GrowGeneration (NASDAQ:GRWG)

GrowGeneration is another company that’s playing it smart. They stand to benefit significantly from legalization as states continue expanding their marijuana markets and giving people the right to grow cannabis in the own homes. As a way to save money in the long run, and have complete control over the growing environment, it’s becoming increasingly popular to set up a small home-grow.

GrowGeneration operates 31 hydroponic garden stores in 11 different states – which they plan on expanding to 50 stores in 15 states by the end of 2021. They provide nutrients, additives, lighting, fertilizers, and environmental control solutions to both individual growers and large-scale industry producers. It’s the largest chain selling such products, and their future doesn’t hinge entirely on the cannabis industry as they supply the needs of hydroponic growers of many other types of produce, such as tomatoes, lettuce, and peppers.

The company showed a revenue increase of 175% last year, bringing their profits to $76,4 million. By 2021, management expects to see roughly $300 million in sales and $36 million in operating income, excluding non-cash items (EBITDA). That’s nearly double the adjusted EBITDA of $20 million that GrowGeneration expects to rake in by the end of final quarter.

GrowGeneration ranked as the best-performing cannabis stocks during the first half of 2020, and third quarter earnings, which were reported September 2020, showed a revenue growth of 153% year-over-year. Shares are trading at a P/S ratio of eight.

Biggest Mistake Cannabis Investors are Making Right Now

The big mistake that some investors are making, though, is being to bullish, based on the assumption that the U.S. is set to soon legalize cannabis at the federal level. This is accurate, to an extent, and as many of us who are following investment trends noticed, cannabis stocks briefly soared when Joe Biden was named president on December 3rd.

But let’s not forget that Biden isn’t very enthusiastic about cannabis reform. As a matter of fact, any mention of cannabis reform was completely omitted from Biden’s initial draft transition plan on racial equality, despite campaign pledges to make that a priority.

To make matters worse, republicans still have a stronghold over the U.S. Senate. With senate majority leader Mitch McConnell (R-Ky.), we can expect any bills regarding cannabis legislation to be swiftly blocked. Despite backing hemp revisions in the 2018 Farm Bill, Sen. McConnell has stood in the way of marijuana reform for years.

As of now, the GOP is slated to hold 50 Senate seats next year, and it looks like two remaining races Georgia is the deciding factor on which party has the majority. So, if (or when) Republicans win those southern elections, it means Sen. McConnell will remain senate leader and go on preventing progressive cannabis bills from even reaching the Senate floor for a vote.

So yes, full federal cannabis legalization is on the horizon, but don’t start basing all your financial decisions on that just yet.

Final Thoughts

Cannabis stocks are hot, but still not so expensive that the average investor is alienated from the market. If you have the means, it’s great time to put your funds into the industry and get some shares of a reliable company that shows promising growth trends. Above are a few that have been getting a lot of attention and are positioned to perform well over the coming years.


RESOURCES:

Synthetic Cannabinoids (Are they synthetic cannabinoids safe?)
The Endocannabinoid System Explained (Why Cannabis Is Good for Our Bodies)
Everything You Need To Know About CBD Isolate (a deep look into hemp extracts)

Cannabinoids 101 – Spotlight on CBN (Cannabinol)
Your Complete Guide to EU GMP-Certified CBD Isolate and Distillate – Spotlight on the regulated EU market

Everything You Need To Know About CBG Isolate
Newest Cannabinoid Powerhouse – CBC – What Can It Do for You?
What is DELTA 8 THC (FAQ: Great resource to learn about DELTA 8THC)
The CBD Flowers Weekly newsletter (your top resource for all things smokable hemp flowers)
The Medical Cannabis Weekly newsletter (International medical cannabis business report)
The Legal Landscape Of CBD Hemp Flower In Europe

The Delta 8 Weekly Newsletter (All you need to know about Delta 8 THC)
Regulators Go After Smokable Hemp Flower – What Does The Future Hold?
The Complex Issue of Marijuana and Hemp Business and Legalization On Tribal Land
Government Assistance Options for U.S. Hemp Farmers Affected By COVID-19

The post Heading Into 2021 – Best Cannabis Stocks to Buy, and One Major Mistake to Avoid appeared first on CBD Testers.

Investing in Delta 8 THC Flowers – Is It The Right Move For Your Business?

On the surface, Delta-8 Flowers are obviously cannabis flowers that are high in Delta 8 THC, but past that it gets a bit more complicated. Are they marijuana or hemp flowers? In what form is Delta 8 present in the plant? And what’s the market for this type of product?

Although good old fashioned flowers will always be the industry’s cornerstone product, specialty items are increasing in popularity and there’s always a new weed-related trend on the horizon: Enter Delta 8 THC Flowers – taking classic flowers to a new, and technically legal, level.

Delta 8 THC Flowers, which can be processed into prerolled joints, cigars, and concentrates, are very different what you would find at a legal, walk-in dispensary or delivery service. In a storefront, you’d be looking at marijuana, which is the type of cannabis that’s high in Delta 9 THC. Delta 9 is the standard THC associated with the psychoactive effects of marijuana.

Delta 8 flowers, on the other hand, are not marijuana at all. They’re actually hemp flowers infused with Delta 8 THC. This innovative new product is very much in demand in the United States, and it’s starting to hit the radar of some other markets across the globe.

To learn more about Delta 8 and get deals on flower and other products, subscribe to the Delta 8 Weekly Newsletter


Delta 8 vs Delta 9

From a chemical standpoint, Delta 8 THC is very similar to Delta 9; Delta 8 has a double bond on it’s 8th carbon chain, as opposed to Delta 8 which has it on the 9th. In the raw plant, Delta 8 is only present in trace amounts. To get the full effects, Delta 8 must be extracted from either high-THC marijuana or low-THC hemp.

Much like every compound found in cannabis, Delta-8 has quite a few medical benefits, some unique to this cannabinoid and some the same as others in the plant. It has only recently made its way into the mainstream in the U.S., but Israeli studies on Delta 8 THC date back to the early 1970s when Raphael Mechoulam was in the early stages of his comprehensive medical cannabis studies.

As far as effects go, Delta-8 is on par with Delta 8, albeit not quite as intense, and without the paranoid, anxious effects. This makes it a suitable option for cannabis users who have issues with the anxiety produced by Delta 9.

Is it legal?

The ability to source Delta-8 from industrial hemp – as opposed to marijuana – created a legal loophole that allows it to be sold by online retailers in the United States. Although there was no mention of Delta 8 specifically, it was the 2018 Farm bill that inadvertently allowed for Delta 8.

According to the bill, also known as the Agricultural Improvement Act of 2018, “All derivatives, isomers, and cannabinoids in hemp are legal provided that the final products contain less than 0.3% delta 9 THC.”

This was further updated by new rules in the summer of 2020. The first bullet point of this update reads as follows: “It modifies 21 CFR 1308.11(d)(31) by adding language stating that the definition of “Tetrahydrocannabinols” does not include “any material, compound, mixture, or preparation that falls within the definition of hemp set forth in 7 U.S.C. 1639o.”

Again, the language doesn’t legalize Delta 8 outright, but it solidifies the fact that any substances extracted from legal industrial hemp are not categorized as “THC” by U.S. law.

When it comes to the online cannabis industry, a grey area is as good as legal and once the consumer demand became apparent, retailers were quick to hop on board. Currently, Delta-8 is ILLEGAL (with specific laws in place against it) in the following states: Alaska, Arizona, Arkansas, Delaware, Idaho, Iowa, Mississippi, Montana, and Nebraska. It can be legally shipped to any other one of the continental United States and Hawaii.

Are Delta 8 THC Flowers a good investment?

Naturally, this is always one of the first questions that arises when any new cannabis trend makes the rounds – is it good for business? Although things in the cannabis industry are always subject to change, for now, Delta 8 flowers are a very promising investment and it seems this will continue for quite some time.

To start, Delta 8 much less regulated than Delta-9 THC, again, thanks to the Farm Bill. Additionally, there is a huge retail markup if you buy your Delta-8 flowers in bulk from a reputable seller.

We can help you source high-quality flowers, concentrates, prerolls and other smokable products, as well as  Delta 8 vape cartridgesDelta 8 softgels and Delta 8 tinctures for an extremely low per-unit priceso you will be able to make a good profit when you sell these products individually. Subscribe to the CBD Flowers Business for pricing!

Offering Delta 8 THC  products will also set you apart from the competition. Although Delta 8 is a hot topic in the industry these days, you’ve likely noticed that it’s not available at storefront dispensaries and not very many online retailers are selling it yet. If you’re able to corner that market of people who are looking for D8 before your competitors become privy to the new trend, you’ll already have regular clientele for these products when it does happen.

Final thoughts

If you’re ready to expand your business offerings and invest in Delta 8 THC Flowers, now is the time to take the plunge. They’re are affordable, not over regulated, and in very high demand. As far as profitable retail products go, that pretty much hits all the main criteria.

In the United States, it’s relatively easy to get into the Delta 8 market, in countries, it will vary. You will need to familiarize yourself with the cannabis laws in your country, regarding the sale of certain cannabinoids and their analogues.


RESOURCES:

Synthetic Cannabinoids (Are they synthetic cannabinoids safe?)
The Endocannabinoid System Explained (Why Cannabis Is Good for Our Bodies)
Everything You Need To Know About CBD Isolate (a deep look into hemp extracts)

Cannabinoids 101 – Spotlight on CBN (Cannabinol)
Your Complete Guide to EU GMP-Certified CBD Isolate and Distillate – Spotlight on the regulated EU market

Everything You Need To Know About CBG Isolate
Newest Cannabinoid Powerhouse – CBC – What Can It Do for You?
What is DELTA 8 THC (FAQ: Great resource to learn about DELTA 8THC)
The CBD Flowers Weekly newsletter (your top resource for all things smokable hemp flowers)
The Medical Cannabis Weekly newsletter (International medical cannabis business report)
The Legal Landscape Of CBD Hemp Flower In Europe

The Delta 8 Weekly Newsletter (All you need to know about Delta 8 THC)
Regulators Go After Smokable Hemp Flower – What Does The Future Hold?
The Complex Issue of Marijuana and Hemp Business and Legalization On Tribal Land
Government Assistance Options for U.S. Hemp Farmers Affected By COVID-19

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Starting a Delta 8 THC Business: Risks and Rewards

In case you haven’t heard, Delta 8 THC business has been the talk of cannabis industry stakeholders for a few months now, but is it a worthwhile investment or just a risky move?

To understand if investing in Delta 8 thc is a smart business move, you will first need to understand: What is Delta 8 THC and what is its legal status in the United States? Let’s quickly get a few of those main, burning questions out of the way.

Is it legal? For the record, Delta 8 THC IS legal where it’s sold, although the specifics there are bit hazy. Next, does it get you high? Yes, it does, although the psychoactive effects are not as strong as with the Delta-9 THC that most of us are used to. Is it worth it? YES, when bought in bulk from the right manufacturer, you can expect a huge markup on retail pricing, so you will make a lot more than what you bought it for.


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Let’s dive deep and explore all of these topics in some serious detail. However, before we move on, please subscribe to our DELTA 8 newsletter below, and learn more about the products currently available at the market today.

What is Delta 8 THC?

Although it wasn’t so commonly discussed until recently, Delta 8 has been studied for decades and it’s one the four most prevalent cannabinoids in the cannabis plant. As expected, it is similar to Delta-9 THC, but there are differences in the chemical structure of this compound. Delta 8 THC is what’s known as a cannabinoid analog, also referred to as a structural analog or chemical analog. An analog is a compound that has a similar structure to another compound but with some key distinction.  

Think about water, for example, with the chemical formula H2O. This is two hydrogen atoms and one oxygen atom. Water is vital for all forms of life on Earth. If we were to simply add one oxygen atom to this molecule, we would have Hydrogen Peroxide, and drinking that can be fatal.

The efficacy and stability of delta-8-THC make it an extremely valuable cannabis-derived chemical compound. Just like Delta-9 THC, Delta-8 also has some psychoactive properties (less than Delta 9) and some similar medical benefits, although research indicates that it can also be used to shrink tumors and reduce symptoms of nausea in chemotherapy patients.

Cannabis plants only have trace amounts of Delta 8, so companies are extracting this compound and infusing it into various items. Most commonly, it can be found in pre-filled vape cartridges, Delta 8 THC softgels or consumable tinctures.

Is it Legal?

Now this is where things can get confusing. Is Delta-8 THC legal? The answer is, technically yes, but only in certain states/regions. The following points describe when Delta-8 may be legal and when it is unlikely to be, however, keep in mind that the laws can vary greatly.

Delta-8 THC is likely LEGAL in:

  • Any country/state where cannabis is legal, delta-8 is legal. This should go without saying, but if the cannabis plant and all its parts and components are no longer prohibited, then delta-8 will obviously be legal as well.
  • Any country/state where THC and analogues are legal and approved for medical use, delta-8 products are legal – with the correct prescription. This applies as long as a medical system does not exclude THC and its analogues, or require minimal amounts in products of no more than .2% (Europe) or .3% (US).

Delta-8 THC is likely ILLEGAL in:

  • Any country/state that illegalized all forms of cannabis, delta-8 is illegal. This is because, in this scenario, all parts and compounds found in the cannabis plant are illegal.
  • Any country/state where THC and analogues are illegal, as well as industrial hemp and hemp flowers, then delta-8 is also illegal. This is because all possible places the delta-8 could be sourced from are prohibited.

In any state/country where THC and analogues are illegal, but the sale of industrial hemp products is legal and regulated independently, delta-8 enters a gray area with a possible legal loophole. Meaning it’s technical not prohibited, yet. Keep in mind though, that if any country or state fits into one of the scenarios above, but has wording in their laws that more specifically bans THC and analogues, then the loophole does NOT apply and Delta-8 is likely illegal still.


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Is Investing in Delta 8 THC is Good For Your Business?

If you made it this far, you’re likely on board with Delta 8. So let’s quickly cover why investing in Delta-8 THC could be a great business move for you.

  1. First and foremost, it’s legal in most states (42 to be exact). Even though it’s prohibited in some areas or stuck in a legal limbo in others, it is certainly much less regulated than Delta-9 THC.
  2. It’s in extremely high demand. For obvious reasons – health benefits, slight high, legal status – but it’s also great for patients who have found CBD therapy to be unsuccessful.
  3. There is a huge retail markup when purchased from the correct source. For example, we can source you Delta 8 vape cartridges, Delta 8 softgels and Delta 8 tinctures for an extremely low per-unit price, so you will be able to make a good profit when you sell these products individually. Subscribe to the CBD Flowers Business for pricing!
  4. Investing in Delta 8 THC will set you apart from the competition. Yes, Delta 8 is a common topic of discussion in the industry these days, but it’s still relatively difficult to find in shops and online stores. Having it readily available make you distinguishable from the other retailers selling only CBD products.

Final Thoughts

There is so much more to say about this amazing compound, from both a medical and business aspect. In my opinion, investing in Delta 8 THC is a great business opportunity that can have wonderful benefits for your consumers by providing them access to therapeutic compound that’s legal yet difficult to obtain.

Interested in sourcing DELTA 8 THC products? Subscribe to the CBD Flowers Business for pricing!

The post Starting a Delta 8 THC Business: Risks and Rewards appeared first on CBD Testers.

Your Complete Guide to Investing in Cannabis Stocks in 2020

Think back to 2017, 2018, and even the first quarter of 2019 – cannabis stocks were hot, and the talk of Wall Street investors globally.

Those who had the resources and foresight to invest in cannabis a few years ago were sitting pretty good by the beginning of last year. More than a dozen cannabis stocks rose 70% or more in the first quarter of 2019, leaving investors up by quadruple digits. But the wins were short-lived.

For the last 14 months or so, cannabis stocks have been plummeting and recent events have done nothing but throw another wrench in the gears for already pessimistic investors.

There is a silver lining however; the fact that cannabis is always an in-demand product, so certain stocks still have a lot of potential.

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What are the experts saying?

Matthew Carr, financial publisher and chief trends strategist of The Oxford Club, a network of investors and entrepreneurs, believes that cannabis stocks will certainly see better days, and those days are likely just around the corner. He says that now is the time to start making investments in the cannabis industry.

“The industry got killed [last year] by the vaping crisis,” stated Carr. “Coming from the illicit market and vitamin E additive, that contributed to the longest bear market the industry experienced. Then we had CEO misconduct and firings. After we made it through that, I thought it was going to be a good year for cannabis in 2020.”

“After COVID hit, I thought maybe it would be the final straw that hit the camel’s back,” he continued. “But the industry has proven to be remarkably resilient. Cannabis deserves a place in that vice stock category—alcohol, tobacco, firearms, casinos—all that people consume more of during an economic recession. I believe the sector is attractive now and after the pandemic is over.”

Stifel analyst Andrew Carter echoed these sentiments, referencing the Canadian market. “The market made strides throughout late April into May with store (reopenings), new store additions, private operators investing in omnichannel capabilities, and Provinces improving upon their own e-commerce capabilities… we believe the strength is likely to continue.”

Things to keep in mind

First and foremost, it’s extremely important to remember that pot stocks aren’t going to get you rich overnight, it’s not that kind of investment. In the beginning, yes, stocks were surging to unimagined heights. But that bubble has burst and prices have leveled out. From this point forward, you can expect to see to slow yet consistent growth (over years, not weeks or months) in stocks that have what it takes to make it over the current hump.

Cannabis Legislation Moves Forward Across the U.S. – Revenues Continue to Soar – What Else Does the Future Hold?

The second thing to bear in mind is that numbers and profitability matter over marketing hype and empty promises. That sounds obvious, but a good ad campaign from a familiar company might have some novice investors overlooking major monetary red flags.

For example, Aurora Cannabis is a well-known Canadian grower and top-ranked stock among millennial investors. Unfortunately, the company has been losing money like it’s the thing to do, and their share price is dropping as a result. Aurora stocks have lost 84% of their value over the trailing year, yet despite this, new-to-the-sector investors are quick to throw their money at the troubled stock.

Comparatively, investors with money in the lesser-known stock, Trulieve Cannabis, have been banking for years. Although Trulieve has operations in multiple states, they’ve largely focused their efforts on the Florida market, with 48 of their 50 medical dispensaries operating within the state. Their targeted marketing strategy has helped them be very effective with branding while keeping company expenses down.

The third must-know, is that cannabis is a fluctuating stock in a relatively new and turbulent market. Just like most other stocks, many societal factors will impact the cost and profitability of your investment. Tourism, unemployment rates, job market, and numerous other issues can impact the success of a cannabis business.

Stocks to follow

Trulieve Cannabis (OTC:TCNN.F) – As mentioned above, this stock has been a consistent money maker. During its most recent quarter, Trulieve cleared $96.1 million in total sales, with $28.9 million in cost of goods sold and $31.1 million in operating expenses, leaving the company with an operating income of more than $36 million. Trulieve’s shares are up 12% percent over the trailing year.

Marlboro Investment Lights-Up Fortunes of Canada’s Cronos Group

Cronos Group (CRON:NASDAQ) – With financial backing from major investors like Altria, maker of Marlboro cigarettes, Cronos group was able to funnel money back into their core operations, which solidified their impact and reputation in the global cannabis market. In its first fiscal quarter of 2020, Cronos saw 55.5% year over year growth in net revenue to 8.4 million Canadian dollars. Despite high operating costs, it’s still a strong and safe cannabis industry investment.

OrganiGram (OGI:NASDAQ) – Although this company has had some ups and downs, especially now that we continue to navigate the economic effects of COVID-19, this Canadian grower and producer ended the last quarter with $41.2 in cash and short-term investments. This was a roughly $8 million increase since their previous quarter. Over the long term, this company has exhibited good management practices and the ability to properly oversee funds.

Final Thoughts

To sum it up, if you have some extra cash on hand, it might be a wise move to put your money in a safe and reliable cannabis stock. Prices are currently down and you can test the waters without putting up a very large initial investment.

Thanks for stopping by CBD TESTERS, your hub for all things relating to business and medical cannabis. Stop by regularly and make sure to subscribe to the Medical Cannabis Weekly Newsletter to keep up-to-date on all the most interesting industry topics.

The post Your Complete Guide to Investing in Cannabis Stocks in 2020 appeared first on CBD Testers.

Next Stop for Cannabis Industry Investors: Malawi

The countries in Africa are falling one by one. First Lesotho, then Zimbabwe, then Zambia, and now Malawi. Quickly changing their cannabis regulation to promote global medical marijuana export markets. How will Malawi’s introduction onto the playing field fair?

Malawi is a landlocked country in southern Africa, bordered by Mozambique, Tanzania, and Zambia. Ten different ethnic groups are associated with Malawi, which has a population of approximately 21 million people. Most of the country works in agriculture with the majority being subsistence farmers on smaller farms, while growing tea and tobacco is done on large estates. This system has largely favored the bigger estates which has led to a great wealth inequality, with most of the population living in extreme poverty resulting in high infant mortality rates, chronic and widespread malnutrition, and general sickness. The overall life expectancy is in the low 60’s.

Much like Zimbabwe which also relied heavily on tobacco exports, Malawi was in the market for a new industry, making its induction into the African green rush right on point. As said by Agriculture Minister, Kondwani Nankhumwa, “Legalisation of this crop will contribute to economic growth as it will contribute in the diversification of the economy and boost the country’s exports, especially at this time when tobacco exports are dwindling.”

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Cannabis laws in Malawi for citizens

According to the Dangerous Drugs Act, “The Minister may by regulation: prohibit, control or restrict the production or possession” of illicit substances. Since trafficking is the bigger deal, and where law enforcement spends most of its energy, use crimes are generally overlooked. Since 1961, when Malawi signed the UN Single Convention on Narcotic Drugs, it has been illegal to sell or supply cannabis in the country. This has not stopped cannabis smuggling from being pretty routine, something Malawi has received criticism for.

Citizens are not permitted to grow any form of cannabis, hemp or marijuana, but it happens often anyway, with illegal cannabis grow operations being the primary activity when it comes to illicit drug rule-breaking in Malawi. Anyone caught illegally doing grow and supply crimes can now face up to 25 years in prison and an approximately $70k fine.

CBD, medical, and religious

CBD, or cannabidiol, one of the non-psychoactive components of the cannabis plant associated with many medical benefits, is exempt from the laws governing the rest of the plant, but there seems to be ambiguity in the terminology, and it is not actually legal there, only cultivated and produced for export.

In terms of medical use, the new bill did attend to a medical program for the residents of the country, although how well it will be carried out remains to be seen. Some of the bullet points include patients requiring a Registry Identification Card, that distributing cannabis from doctors to patients can only be done with the attendance of inspectors and police officers, and not producing adequate documentation or making false statements in regards to entrance and use of the cannabis program can incur financial penalties and up to five years in prison.

Malawi is home to a small Rastafarian community that has itself been pushing for religious legalization. This bill, along with not granting any form of recreational or personal use laws, also didn’t recognize any religious use rights.

Legalized Religiously – How Rastafari Tradition Is Helping Ease Cannabis Regulation in the Caribbean

Cannabis laws for business use

Earlier this year, cannabis was legalized for medical and industrial use in Malawi. The bill establishes certain bullet points for the regulation of the industrial cannabis market including the following:

  • The Cannabis Regulatory Authority (CRA) is the new body that will be responsible for issuing licensing for cultivation, processing, distribution, and export of products for the industrial hemp and medicinal cannabis programs.
  • The CRA will also issue research permits.
  • License holders must comply with CRA security requirements regarding growing, sale, exportation, processing, distribution, and storage.
  • Cultivation must be done under strict practices including children not being involved, the natural environment being preserved, and compliance with a very high soil standard including fertilizers and pesticides that can be used.
  • Inspectors will be appointed by the CRA to ensure compliance with regulation.
  • Growing and supply operations that are not government approved are subject to large financial penalties and up to 25 years in prison.

Hemp cultivation is allowed with up to 1.0% THC. This means that it’s over the 0.2% allowed in cannabis applications by current EU standards, but follows in line with other countries that have more recently set their THC limit higher.

How’s business going?

Since Malawi only made its regulatory updates recently, it’s expected that not all the pieces are in place yet. It can often take a country years to work out kinks in their licensing and regulatory framework, so the specifics of how much licenses will cost, and if there are other provisions that must be met by potential licencees, is still unknown.

In terms of interest by foreign countries in using Malawi for their own cannabis production projects, Director of Investment Promotion Joshua Nthankomwa stated back in 2018 before the laws had passed “We have registered huge interests from companies in Canada, Israel and many other places. We look forward to many more investors coming, not only in this sector, but many other sectors that Government has created environment for one to grow their business.”

African Foothold for U.K. Entrepreneurs in Tandem with Aphria

The first company to get a research license to grow cannabis in Malawi was Invegrow, which started conducting trials on low-THC hemp back in 2015 to investigate hemp as a practical crop and determine viable seed strains. Its trials were used to help the government draft the legislation for commercial legalization. With its foothold already in the country, Invegrow is looking to start production of broad-spectrum hemp extracts and essential oils for export.

Other international companies had expressed interest in Malawi before the legalization, among them, Green Quest Pharmaceuticals, which requires 50,000 hectares of land to grow industrial hemp for manufacturing products like clothing and medicine. Green Quest Pharmaceuticals investor, South African/Canadian Graham Macintosh was among a group of lobbyists that encouraged politicians to create regulation that would allow them this ability.

The investment in Africa

Africa is becoming a hot spot for foreign investment in cannabis since Lesotho first opened up its cannabis regulation to allow for legal cultivation of medicinal cannabis in 2017. Zimbabwe and Zambia followed suit in the next years, with each bringing increased chance for investment, and more companies interested in getting a foothold in their fertile, rich-soiled land. These countries come complete with cheap farm labor in the form of the locals who are technically being priced out of their own markets.

Whether Malawi will follow suit will only be known as more specifics come out about prices and rules for licenses. As per statements made earlier by government officials, looking for foreign investment is key, and this possibly could mean steep licensing prices. On the other hand, if prices are kept low, it could mean more opportunity for not only locals to take advantage of their own land and profit directly from the new market, but also for lower capital investors from abroad who don’t have the bigger capital of their larger competitors, the chance to buy in as well.

The African Cannabis Market is Poised to Reach $7.1 Billion Within Four Years

Conclusion

Malawi is likely not the last African country to jump into the new legal medical cannabis market. In fact, several others in the general southern region (and elsewhere) are already looking into updating legislation to take part. For anyone interested in Malawi, or Africa in general, as a place for their own possible investment, a close watch should be kept on news coming out about pricing and particular laws and requirements for whatever kind of establishment is in mind. Chances are, within the next several months we’ll start hearing about all the new deals going down in Malawi’s new legal cannabis market.

Thanks for stopping by CBDtesters.co, your place to go for all things legal-cannabis related. Come back frequently and subscribe to the CBD Testers Weekly Newsletter to stay up-to-date.

The post Next Stop for Cannabis Industry Investors: Malawi appeared first on CBD Testers.

An Investor’s Guide to Cannabis and Hemp

Despite numerous challenges that constantly throw this industry on its head, there are many opportunities to make worthwhile investments in cannabis and hemp – and as it becomes increasingly mainstream, these opportunities will grow in abundance and fiscal potential.

Science and pharmaceuticals, engineering of new equipment, marketing, distribution, farming and more, the potential for a rewarding investment (or investments) in the cannabis and hemp sector is infinite. Investors need to remember that market research is the key to making informed financial decisions.

Research by the Kauffman Foundation led by Robert Wiltbank, Ph.D., and Warren Boeker, Ph.D. prove just that. Studies show that investors who spend over twenty hours performing due diligence on a prospective company accomplish 5.9 times more profit on their investments; Investors who spend under twenty-hours average around 1.1 times on investment returns; and investors who spent over forty hours researching achieved a whopping 7.1 times more.

Of course, in a field as wide open as cannabis/hemp, it could easily take twice that long just figuring out where to look. Trust us, we know. That’s why we put together this investor guide – we’re doing the heavy lifting so you can go out and make some real money in this confusing industry.

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First, Some Advice From Experienced Investors

According to Aaron Herzberg, a partner at CalCann Holdings, a medical cannabis real estate company based out of California, “Investments in cannabis are not for the average investor. Cannabis remains federally illegal, and there are significant challenges with federal taxation and lack of access to banking.”

“Regulations are established on a state-by-state level and are constantly in flux.” Herzberg also states that “people think money grows on marijuana plants, but the reality is that the business is complex, capital intensive, and like any other real investment, requires patience and discipline. Those looking to make a quick buck out of marijuana are likely to fail,” Herzberg says.

John Torrens, a Professor of Entrepreneurship Practice at Syracuse, and a board member of the Cannabis Sustainability Committee, also warns about potential risks to investors. “Even though the U.S. Department of Justice has directed law enforcement not to pursue cannabis businesses that operate within local and state regulations, the feds still use size as a proxy for illegal activity and have a tendency to harass large operations, which would make the best investment opportunities.”

Regulatory ambiguity is keeping a lot of professional money out of the industry,” he continued, “which creates room for smaller investors to establish a foothold,” Torrens says. “Plus, once federal regulators reschedule cannabis as a schedule two instead of a schedule one drug, then the doors will be open for professional and institutional money to pour in,” he says. “This will be the big exit opportunity for the early investors.”

Some Tips to Keep You Safe

The cannabis industry can be very complex

Torrens offers some helpful suggestions to anyone researching cannabis and hemp investment opportunities:

  • Play by the Rules. It’s important to find a company that not only knows how to grow and extract, but is also fully compliant with their state. “Compliance needs to be a top concern,” he says. Seriously, nothing is worse than putting your money into a company, only for the owner to get arrested, business is shut down, and you’re left high and dry.
  • Licenses and permits. Make sure the business you wish to invest in has the correct license and permits according to local regulations. “This is especially true in California where some municipalities have very loose regulations,” Torrens says. “This creates an opening for the feds to come in and shut it down.”
  • Distribution. You can choose the best growers out there, but if they don’t have the connections needed to be able to distribute their product, then it’s no better than investing in a Nasdaq company. You can have the best product in the world, but what good is it if no one knows about it?

“The market demand exists, but in an industry, that is just coming out of the shadows, the strength of relationships is critical,” Torrens says. “Go slow. If you think you want to play in this space, then start with a small, manageable investment.”

Popular Investment networks

A great way to get your feet wet in the research pool is to start by researching through cannabis and hemp investment networks. Here are a few places to get start.

  • ArcView Group – The granddaddy of cannabis investing, ArcView Group offers investment opportunities for venture capitalists, access to funding for business owners, and market research for anyone interested in learning more about Hemp and CBD financial opportunities.
  • CannaFundr – Whether you want to invest in new and growing companies, or you are a business owner looking for funding, CannaFundr is a great place to find like-minded people in your industry.
  • New Cannabis Ventures – New cannabis ventures was founded by the owner of 420 Investors, which is one of the largest, due-diligence platforms in the cannabis investment sector. Both sites are great sources of market information.

Regulators Go After Smokable Hemp Flower – What Does The Future Hold?

Final Thoughts

Although figuring out how to invest in cannabis or hemp can be a challenge, it’s extremely rewarding when done correctly. And by correctly, we basically mean safely and legally, and with a bit (a lot) of due diligence and forethought. Don’t let the call of quick cash let you overlook any red flags that may stand out to you.

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The post An Investor’s Guide to Cannabis and Hemp appeared first on CBD Testers.

From Hundreds Of CBD Suppliers To A Dozen – Potential Impact Of UK Regulator’s Novel Food Move

There are thousands of CBD brands in the U.K. and Europe, and tens of thousands of products.

These brands and their while-label wholesalers are served by hundreds of global suppliers varying in size from small family farms to large corporate outfits delivering in bulk. However, this market is set for a major shake-up as a result of the U.K.’s decision to enforce the European Union’s classification of CBD as a Novel Food.

Come March 31, 2021, the number of companies able to meet the high U.K. regulatory bar required by Novel Food is estimated to be in the region of around ten to a dozen.

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300-Page Novel Food Submission

One such company is set to be Colorado-Based Mile High Labs which currently supplies U.S.-grown CBD from its base in Northern Ireland – a European bridgehead it established 2019.

It supplies a range of isolates and distillates to a wide range of European wholesalers and brands. Over the last nine months its pharmaceutically-focused, regulatory team have assembled its Novel Food submission, not an easy task; its application currently totals over 300 pages of data and analysis.

London-based Christian Hendriksen, Vice President of International Expansion for Mile High Labs, sees the Novel Food pathway for CBD as a crucial step in delivering safe and compliant product.

CBD Isolate Only

Mile High Labs’ application will provide the data to prove its product is safe and stable when formulated into food products. At this stage Mile High is solely submitting a Novel Food application for its CBD isolate.

Get EU GMP-Certified Cannabinoid Isolates and Distillates

Mr Hendriksen elaborated: “It’s not a trivial task. It takes time to generate the relevant data and also to assemble it into the actual form that is required. The application process means you have to characterise your products in very great detail.

“Our isolate is more than 98% pure, but with distillate or broad spectrum extracts you will have to account for every individual compound, all of the other cannabinoids and terpenes, and assemble the associated data to demonstrate their safety.

Inherent Variability Of Extracts

“With extracts, there will be inherent variability from batch to batch, as CBD levels vary, but to secure a Novel Food authorisation it is necessary to demonstrate a high-degree of manufacturing consistency.

“Isolates are products which are easier to characterise, so in the short term this is where the focus will be – until people have more time to generate data for their broad-spectrum product. There is a chance that isolate will dominate the CBD food segment in the short term until companies, including ourselves, have had time to generate data.”

Mile High expects to submit its Novel Food application later this year and this will also include recommendations on a suggested daily dose. The recent recommendation from the U.K. Food Standards Agency (FSA) is 70mg a day.

Many estimate the cost of securing a Novel Food application as being in the region of £250,000 to £300,000. This, and the onerous quantity of analysis and data required will squeeze many existing suppliers out of the market.

Just A Dozen Suppliers – Initially

Mr Hendriksen believes there will be no more than a dozen validated U.K. CBD suppliers come next spring.

“Many will simply not have capacity and resources to get through the Novel Food process and the FSA is effectively saying ‘you have to do it or you are out’. From a small business perspective it is not a good thing, it makes it extremely tough to compete.” 

While acknowledging the challenges this throws up for the industry Mr Hendriksen is 100% with the FSA. 

“Novel Food is designed to protect consumers, and you should only be should selling a new ingredient in Europe if you can demonstrate it is safe. This is what other food manufacturers have to do, they are used to it, so why should CBD be any different?”

The Fight Will Go On

A Novel Food, in the eye of the European and U.K. regulators, is a food that has not been eaten to any significant degree in domestic markets before May 15, 1997.

Mile High’s view is that, although humans have consumed hemp for much longer, hemp-derived CBD is a relatively new product.

This view is shared by the recently-created trade group the Association for Cannabinoid Industry (ACI), which has been spun-out of leading industry body the Centre For Medicinal Cannabis.

It is working with it members such as Mile High, Dragonfly Biosciences, Sativa Investments and others to achieve Novel Food benchmarks. It has issued guidance on how to secure this which can be found here: https://www.theaci.co.uk/regulations/

ACI Regulatory Expert Dr Parveen Bhatarah Gather said there is still time for raw material suppliers to gather all of the necessary data and complete an application between now and the end of March, next year.

For CBD brands they will need to demonstrate their raw materials are sourced from manufacturers with submitted applications, and if necessary, demonstrate ‘product stability when using this raw material in their finished product’. 

Brand Support

Thierry Way is director and brand manager at U.K firm Ultra Sports Europe. He is fully supportive of the Novel Food pathway as a means of delivering a regulated U.K. market 

European Novel Food Regulation – What’s It All About?

Ultra Sports sells imported CBD products from publicly-listed U.S. brand cbdMD which sponsors leading sports stars such as golfer Bubba Watson.

He said: “This new regulation is no doubt going to cause some disruption in the industry. However, we really feel this a great step forward to making the industry a safe, more trustworthy place for consumers. We are working with our American partners to submit a Novel Food application by the end of March, next year.”

While the FSA’s move has crystallised the U.K’s CBD position it has by no means secured universal support. Industry bodies such as the Cannabis Trades Association (CTA) and CannaPro, whose members helped create the industry, are still contesting the Novel Food designation.

Heading To The Law Courts?

They maintain that CBD is not novel – that it has been used in European foods for hundreds of years. There are many in the industry who will recoil at the thought of the market becoming solely one of isolates, with many users said to favour the entourage effect of broad and whole spectrum products.

There is still plenty of fight left in these bodies and they will continue to take it to the regulators and maybe even the courts.

While also maintaining its position that CBD in whole plant extracts is not a Novel Food, the European Industrial Hemp Association acknowledges that isolates are novel, and it’s taking forward a joint Novel Food application on behalf of its members for isolate.

The growth of the U.K CBD market over the last few years has been phenomenal and on the whole it has been driven by the hundreds of members of the CTA and CannaPro.

Uncertainty For Smaller Suppliers

Both of these have established their own self-regulatory bodies which have clamped down hard on those making medical claims, which the rules do not allow.

However, the FSA has now decided its time to take a firmer grip on the market following new guidance on potential health risks and concerns over CBD product content.

The U.K. CBD market is already worth over £300 million and is estimated to treble in size within the next few years. While these new regulations may destabilise the market initially, it looks like the FSA’s Novel Food pathway will mean its next phase of U.K. CBD market growth could be controlled by a dozen-or-so larger CBD suppliers.

@The FSA’s stance on Novel Foods applies only to food additives, not vaping products or cosmetics which are governed by separate regulations.

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