CannabisNewsWire
Editorial Coverage: Recent U.S. government interest in ensuring
industrial hemp supply signals a period of growth for the
cannabinoid industry. Marijuana Company of America Inc.
(OTC: MCOA) (MCOA
Profile) is contributing to this growth through new
hemp cultivation projects in both Canada and the U.S., to support
its hempSMART subsidiary. Cronos Group Inc. (TSX: CRON)
(NASDAQ: CRON) is benefiting from a cross-border venture
that gives it access to new scientific advances and has seen its
shares reach top exchanges. Canopy Growth Corporation (TSX:
WEED) (NYSE: CGC) has secured government licensing needed
to become one of Canada’s leading retailers, while acquiring a
subsidiary company in Lesotho to cater to an international market.
Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF) has
announced a new range of products that provide medical cannabis
with a high concentration of active ingredients. OrganiGram
Holdings Inc. (TSX-V: OGI) (OTCQB: OGRMF) has struck a
deal for access to advanced extraction technology, while also
gaining a license to export its products to Australia.
Senate Signals Support for Cannabis
Seedbank
The United States government has a complicated relationship with
cannabis. Since the mid-20th Century, it has clamped
down on the use of the plant for any purpose, particularly during
the “war on drugs” from the 1980s onward. Over the past decade,
some states have legalized the farming and sale of the cannabis
sativa plant either as medicine, as a recreational drug, or in the
form of industrial hemp. But the federal government has remained
reticent about shifting its stance.
It seems that perceptions are now changing. The Senate
Appropriations Committee, one of the most powerful bodies in
government, has acknowledged the growing importance of industrial
hemp for American farmers and called for the creation of a hemp
seed back. Half a million dollars will be spent ensuring that
America has a genetically strong stock of high quality hemp seeds,
to support both farmers and researchers.
Building Better Strains
While the committee’s plan to build up seed stocks is intended
to support the national interest, some companies are already
working on improving industrial hemp growth for reasons of
self-interest. Developing a diverse range of strains, each tailored
to different purposes, is important for these companies. Industrial
hemp is often valued for the quality of its fibres and the
medicinal cannabinoids that can be extracted from the plant and
implementing better growing techniques can lead to improved crops
yields.
Among the companies looking to create more efficient hemp yields
is the Marijuana Company of America (MCOA
Profile). A company with a diverse portfolio of
investments and joint ventures in the cannabis and industrial hemp
sectors, MCOA is involved in several projects intended to improve
the plants available to producers and consumers.
Together with the Global Hemp Group, MCOA has launched a
project to
encourage industrial hemp cultivation in New Brunswick.
Previous attempts to develop the industry in the region failed
twenty years ago, but now the market for the product has grown. The
aim is to develop an industrial cluster around the hemp crop,
ensuring a market for farmers, consistent job opportunities, and to
implement the proper structure to develop Hemp Agro-Industrial
Zones, or HAIZ, projects in other areas.
Scientific testing to improve the growing process is an
important part of HAIZ. This has been made possible through
cooperation with the Canadian government’s Department of
Aquaculture Agriculture and Fisheries (DAAF). The department will
be contributing fertilizers to the project and carrying out
fertility trials on reserved plots of land. Together with soil
testing and crop rotation, this will help to develop more fertile
organic growing conditions for the hemp.
With legalization of the extraction of cannabinoids from
industrial hemp on the horizon, Canada is an important market for
cannabinoid-based companies. Recreational use alone is expected to
contribute $900 million to the
industry, which already serves medical users in Canada. The
work in New Brunswick gives MCOA an important foothold in this
market.
More Facilities for a Growing Market
The collaboration with GHG is now taking place on both sides of
the border, thanks to the establishment of a new industrial hemp
project in Scio, Oregon. Once again, the companies are
collaborating to create a facility that will push forward
techniques in hemp cultivation while providing a steady profit.
The heart of this operation is a 109-acre property in the
Willamette Valley, a fertile area with a recent history of
successful cannabis cultivation. The site has soil rich in organic
matter and established irrigation infrastructure, meaning that it
is well set to support a new agricultural project. The use of high
yield hemp clones will help to maximise the output of the
project.
Multiple approaches to cultivation will feed into the Scio
facility’s output. Traditional outdoor cultivation will take place
alongside five greenhouses, which will provide over 19,000 square
feet of indoor growing space. This will ensure a year-round supply
of hemp.
As in New Brunswick, data collection
and analysis will play an important part at the farm in Oregon.
By checking on the performance of the growing techniques and the
quality of the plants, the companies aim to support strains which
are rich in cannabidiol (CBD), an active ingredient important in
derivative products designed to support well-being.
A Growing Global Industry
The new project comes at a perfect time for MCOA. Demand for CBD
is high thanks to the growing global market for cannabinoid-based
products. A facility that can provide the companies with a steady
supply of high-quality CBD plants will make it easier to take a
substantial place in this expanding sector.
One of MCOA’s most important subsidiaries is hempSMART. This
company develops and markets hemp-based wellness products that make
use of cannabinoids, the active compounds that can be extracted
from the hemp plant. HempSMART also aims to educate consumers on
the possibilities offered by hemp, possibilities that the U.S.
senate has started to acknowledge through its establishment of the
new seed bank. Educators and health professionals are among the
experts hempSMART has brought into its team, to make it more than
just a source of wellness products.
With investments in everything from payment systems
to cultivation
facility rentals, Marijuana Company of America has built a
broad base of innovative cannabis-related products.
More Companies Signal Strong Future
It’s a sign of the health of cannabis industry that MCOA faces
competition from a number of companies, both in hemp production and
in the wider cannabis market.
Cronos Group, Inc. (TSX: CRON) (NASDAQ: CRON)
is one of the highest profile companies in this sector. In February
2018, it became the first pure play
cannabis company traded on the Nasdaq, a sign of the interest
in cannabis by mainstream investors. A recent upgrade of its
shares on the Toronto Stock Exchange reflects the way that
cannabis companies are solidifying their position, proving that
they are here to stay. A recently
announced cross-border venture with MedMen means that Cronos
will benefit from scientific advances being made by the Los Angeles
company, which prides itself on its research work.
Canopy Growth Corporation (TSX: WEED) (NYSE:
CGC) is becoming a leader in the cannabis retail field.
Within Canada, it has established itself as a trusted company,
being granted one of the first
retail licenses in the province of Manitoba. This gives Canopy
a strong starting point to sell to customers when recreational
cannabis becomes legal in Canada later this year. Further afield,
it recently
acquired a cannabis company in the Kingdom of Lesotho. This
will provide access to an African market largely ignored by western
cannabis companies. It will also let the company grow medical
cannabis in ideal conditions, with 300 days of sunshine a year,
excellent humidity, and great growing conditions for greenhouse
grown cannabis.
One of the largest cannabis companies, Aurora Cannabis
Inc. (TSX: ACB) (OTCQX: ACBFF) has recently expanded its
activities to cover both the recreational and medical sectors. The
company leans heavily on research to improve its sales, with the
announcement in late May of a new range of
high-THC content cannabis products. It has also made moves to
expand its market reach over recent months, with the largest
corporate acquisition in the history of the cannabis industry in
the form of the purchase of CanniMed, as well as a supplier
agreement with Shoppers Drug Mart.
OrganiGram Holdings Inc. (TSX-V: OGI) (OTCQB:
OGRMF) is looking beyond the American market. The company
has recently been granted a license to
export cannabis to Australia. This will introduce OrganiGram’s
product to a new territory through a deal with a licensed
Australian medical cannabis dealer. Organigram’s success will be
further bolstered by a recent deal with TGS Colorado, a company
with expertise in extract technology. This will provide Organigram
with access to best-in-class technologies, products, and designs
with which to make the most of its expanding
cultivation base.
Increasing government backing, combined with advances in
cultivation and technology, ensures that there’s a healthy future
for all varieties of cannabis, from medical marijuana to industrial
hemp.
For more information about Marijuana Company of America, please
visit Marijuana Company of America
(MCOA).
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