US Hemp Industry Continues to See Big Growth - Snapshot (OTCQB: $SING) (TSX: $WEED.TO) (NYSE: $CGC) (TSX: $TGOD.TO) (OTC: $TGODF) (OTC: $GRNH)
Point Roberts WA, Delta, BC - June 28, 2019 (Investorideas.com Newswire) Investorideas.com, a leading investor news resource covering cannabis and hemp stocks releases a sector snapshot reporting on the continued growth in the US hemp industry, with a specific focus on production and cultivation, as both State and Federal government continue to support and update hemp industry reform and regulations.
Companies featured include SinglePoint Inc. (OTCQB: SING), Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF) and GreenGro Technologies, Inc. (OTC: GRNH).
The Massachusetts House recently passed a bill to help the State's hemp industry grow and farmers cultivate on agricultural land by allowing farmers with agricultural deed restrictions on their land to grow hemp. The Bill passed in a vote of 152-0. This bill would ultimately expand the definition of agricultural land to include hemp, so farmers could receive the same tax and protection benefits as other farmers. The House expects this new bill to be a boost for farmers, jobs and the economy in the state of Massachusetts.
The US Department of Agriculture (USDA) also recently announced that it expects to have complete federal rules for domestic hemp production by August. Even in some of the states who planned to wait for federal guidance, hemp legislation has moved forward to allow farmers to participate in the 2019 season under the rules of the 2014 Farm Bill.
Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), one of Canada's largest cannabis companies has been anticipating entering into the US hemp/cannabis market for sometime through its acquisition of Acreage Holdings. The company recently reported that its shareholders voted overwhelmingly in favor of the proposed acquisition.
The Canopy Shareholder Resolution was approved by approximately 99.05% of votes at the meeting, in accordance with the requirements of the Toronto Stock Exchange. In addition to the approval by Canopy Growth shareholders, Acreage shareholders also approved the deal at the special meeting.
"On behalf of Canopy Growth, I thank the shareholders of both companies for their vote of confidence in this historic transaction," Bruce Linton, Chairman and co-CEO of Canopy said in a statement.
"Completion of the transaction is intended to position us to efficiently and effectively enter the US cannabis market once federally permissible. Alongside our international market strategies and US Hemp strategy, we believe the acquisition of Acreage will be a key step in bolstering our position as a truly global company," Linton noted.
When at full capacity, Canopy Growth's American footprint, largely contracted with American farmers versus owned operations, will cover more than 4000 acres. Nearly half of that entire farming platform will be located in New York State, which will include approximately 1,000 acres of high-CBD hemp, along with an additional 1,000 acres of high-fibre hemp growth.
As a complement to these active farm operations, Canopy Growth continues to explore appropriate locations for its own industrial scale processing and manufacturing plants, with the anticipation that the assets of Acreage could also form a substantial part of the Company's long-term strategic US platform, pending the finalization of the Transaction between Canopy Growth and Acreage.
SinglePoint Inc. (OTCQB: SING) recently announced that it has signed a $109,465,000 contract with Elite Foundation LLC of North Carolina to supply more than 275,000 pounds of premium hemp flower over a period of 15 months. The initial 1000 pounds of product has been approved and purchased.
The contract is the first major deal arising from the previously announced supply chain and co-selling agreement with Oregon-based Easy Street Services Company and J&J Empire, LLC. SinglePoint stands to make a large profit in the deal. Company management believes this deal along with the major success in solar provides the basis to move up to a listed exchange such as the NASDAQ or NYSE.
According to President Wil Ralston, "Our team, specifically our VP of Sales, Don Smith has worked tirelessly to make this a reality. We believe this is the catalyst toward closing a stream of substantial deals in our pipeline. Not long ago, SinglePoint made a significant commitment to be a major provider in the industrial hemp space; this agreement solidifies our place in the industry. In addition to raw material supply, we are negotiating distribution agreements to place finished goods in retail stores. There is a lot of opportunity in this burgeoning market and we are getting in everywhere we can. Our newest team member, Don Smith is a leader in these efforts."
Don Smith has extensive experience in building startup companies that explode within emerging markets. Prior to joining SinglePoint, Smith spent eight years focused on the advancements in the organic sustainable food industry and its applications to the cultivation and growth of the legal cannabis business. In that time, he co-invented a "vertical cultivation" device. The invention and successful hydroponics business was sold to Greengro Technologies, Inc., where Smith served in various capacities including Chairman and CEO.
BDS Analytics and Arcview Market Research project that the collective market for CBD sales in the US will surpass $20 billion by 2024 while New York-based investment bank Cowen & Co, estimates that the market could pull in $15 billion by 2025. The smokable hemp market currently represents approximately 2% of the overall CBD market, but with a 250% growth from 2017 to 2018, Brightfield Group, a Chicago-based cannabis market research firm, identifies dried and smokable hemp flowers as one of the fastest-growing segments of the CBD market. SinglePoint's bold entry into the hemp flower market positions the company as one of the leading hemp flower wholesalers in the country.
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTC: TGODF) recently announced its expansion into the global organic hemp CBD market with the launch of its Global Strategic Hemp Division. This new division will leverage TGOD's solid expertise in the European hemp CBD market to fuel growth and accelerate the development and commercialization of new products across its network of international partners.
"With the global CBD market expected to hit $22 billion in less than 3 years, it is clear that the segment is drawing substantial consumer demand," commented Brian Athaide, CEO of TGOD. "Our team has years of direct hands-on experience in the CBD space and we are excited to use this advantage to execute on a fast-moving market expansion strategy. CBD is a wellness product and has a natural fit with TGOD's certified organic positioning and the large segment of consumers who are increasingly demanding natural and organic products. The time to act is now, and TGOD has the team, the infrastructure and the capital to establish a significant presence in this market."
The Company plans to enter the US hemp CBD beverage market through existing partnerships, providing TGOD with maximum flexibility and the ability to go to market with hemp-based CBD beverages quickly and with a capital light model.
"Hemp is an incredible crop, one we can manufacture into mass market organic CBD products to establish an immediate market presence in Canada through tinctures and oils, while we prepare for the introduction of additional delivery methods such as vapes, beverages, edibles and topicals later this year," added Athaide.
GreenGro Technologies, Inc. (OTC: GRNH), recently announced that in less than 30 days since the launch of the Company's hemp seed farm in Southern California, CBD Ventures Inc. - a CBD and hemp focused division of GreenGro Technologies which oversees the hemp seed farm - it has already signed its first contract and completed its first sale. This near-immediate success is in direct correlation to the growing demand for high quality CBD hemp seeds which GreenGro Technologies is perfectly situated to develop and distribute, particularly with the science contributed by its Genobreeding Division.
"Due to the market's instant demand for our feminized low-THC, high-CBD hemp seeds, the Company feels this is a clear testament of our efforts to grow the reputation as a company who is able to develop and distribute large quantities of CBD hemp seeds with the highest quality standards across each and every single seed," said Matthew Burden, Chief Executive Officer of GreenGro Technologies, Inc. "This is a direct result of our strategic initiatives playing out as planned beginning with our restructuring and cost savings plan followed by the creation of our three key revenue centers, CBD Ventures, Cannabis Ventures and Genobreeding, which is able to leverage the strengths of the other to maximize our true potential. As we continue to emerge as a truly vertically integrated company in the cannabis space, we are confident that our CBD hemp seed farm will prove both profitable and a key to solidifying our footprint across the nation as we continue implementing our growth strategy," concluded Mr. Burden.
As more states sign hemp legislation and with the expected USDA federal hemp rules expected in August, the continued growth and rise of hemp and CBD doesn't seem to be slowing anytime soon and offers many companies solid revenues while awaiting changes to federal cannabis regulations in Canada and federal legalization in the US.
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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