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Yes, companies are allowed and often do own and operate other subsidiaries, which is how Hemp compares to Disney: they are not just one company, but a mix of several.
Is that a problem?
Do you know how many companies Disney owns?
CBD Companies Positioning Themselves For Cannabis Legalization
Julie Weed Contributor
Aug 24, 2019
Recreational cannabis use is illegal in the majority of US states, but the relaxation of hemp and CBD sales has created a set of companies that could more easily grab cannabis product market share if it is legalized. Companies selling CBD products are establishing their brands among consumers, and acquiring shelf space and retail relationships. If recreational cannabis is legalized, those companies can enter that market more quickly than a business starting from scratch.
From a product perspective, companies are looking to establish their CBD brands as consistent and effective, so when THC comes along, consumers will seek them out for safe products. Reliable quality is key to establishing that connection with consumers according to Rick Batenburg III, chairman of Clear Cannabis, Inc., parent company of The Clear .
Using CBD products as an onramp to a marijuana business also makes sense from a cash-flow perspective. When a state legalizes cannabis and announces a future date for its sale, companies need to hire employees, rent space, find distribution etc. There can be delays in licensing and other issues. Selling hemp-based CBD products while the company waits for the THC business to kick in, provides an income stream to draw from.
A recent Gallup poll found that 14% of Americans had used CBD, primarily to treat pain, anxiety and sleeplessness.
Batenburg is betting consumers will be drawn to products that contain no additives. “Our most popular products are The Clear THC & CBD disposable vape cartridges,” he said. “Consumers are either getting THC or CBD, nothing else.” This is important he said, because unpredictable or poor experiences leads to people avoiding the plant all together. “We sell euphoria, not trips to the hospital,” he said.
Luna Stower from Jetty Extracts, a cannabis and CBD oil/vaporizer company based in Oakland, says her company prints their independent lab test results "directly onto the box as certificates of analysis that prove the purity, potency, contents, and ingredients clearly for consumers."
Hemp and its derivatives became legal federally under the 2018 Farm Bill, but the rules around the industry are still not finalized so entrepreneurs building CBD companies still face hurdles. Senator Chuck Schumer of New York recently asked federal financial regulators to clarify the situation so for example, hemp businesses could access banking services like lines of credit at federally insured banks. For its part, the National Credit Union Administration (NCUA) confirmed in August that credit unions could offer those services to hemp companies.
To make things simpler operationally, companies like The Clear are dividing their businesses into those that “touch the plant” vs. items like vaping supplies that do not. That streamlines accounting and other legal issues because the two types of products operate under different rules. Batenburg says that putting plant touching and non-plant touching assets in different holding companies limits risk.
Consumers are seeing CBD products on the shelf at mainstream stores like Walmart, and that’s helping to reduce the stigma of cannabis. It also means small CBD companies, whether they are preparing to sell marijuana or not, need to be ready for a tidal wave of major competition. National hemp legalization means large consumer packaged goods companies can enter the CBD market by simply adding “now with CBD” to existing products according to Batenburg.
“These brands already have an emotional relationship with the consumer and a strong non-restrictive distribution into national stores,” he said.
CBD is the most well-known of the more than 100 cannabanoids hemp contains. The plant is being used not only for consumables but as a building material, fiber and even as part of a car. To learn more about the business of hemp and CBD, check out the video from a recent conference at UCLA: Hemp Goes Federally Legal: Research and Policy Implications - Dr. Jeffrey Chen, MD/MBA.
Source: https://www.forbes.com/sites/oracle/2019/08/21/how-oracle-moved-to-the-cloud-a-deep-dive/#167439401c3f
HEMP processing millions of pounds of hemp.
Making America Hemp Again.
FLOODGATES
Hemp Inc. taking hemp into bioplastics
FRANK ESPOSITO
August 22, 2019 05:01 PM
Hemp Inc. has begun processing industrial hemp for bioplastics at a location in North Carolina.
In an Aug. 22 news release, officials with Las Vegas-based Hemp said the work is being done to help fill growing demand for sustainable products and to enter the firm's third natural product venture.
Hemp material now is being processed for bioplastics at an 85,000-square-foot industrial processing center in Spring Hope, N.C. The firm also operates a processing center in Medford, Ore., and a 500-acre hemp growing site in Golden Valley, Ariz.
Products being processed include a proprietary blend of hemp and kenaf – a separate plant – that's specifically formulated for the hemp bioplastics industry, officials said. Hemp Inc. previously has developed two products for the CBD oil industry.
Officials added that the firm's hemp bioplastic has completed positive beta testing. The blend will be provided to "multiple companies" to help fill growing demand for natural and hemp-based products for the bioplastics industry, they said.
Hemp Inc. CEO Bruce Perlowin said in the release that "I have always been an environmentalist … which means being part of the supply chain for hemp bioplastic has me beside myself, walking on cloud nine."
"This is a venture no one else is doing in America and what hemp was put on this earth to do," he added. "While everyone focuses on CBD, we are here focusing on the next big thing, which is the industrial part of the plant – the part that can help save the world."
"As a company that has always been at the forefront of everything we do, this next venture into the hemp bioplastics industry with these products makes sense for the company…Entering hemp bioplastics is positioning the business for the early phase of expansion."
Source: https://www.plasticsnews.com/news/hemp-inc-taking-hemp-bioplastics
Almost a million in cash, and growing.
More revenues, Q after Q.
Nice!
Yeah, SEC could really use a nudge towards EVIDENCE.
LOL!!! OMG.
Free audit! Naked shorts and ex-affiliates will pay the tab!
Study on cannabis chemical as a treatment for pancreatic cancer may have 'major impact,' Harvard researcher says
https://www.yahoo.com/lifestyle/study-on-cannabis-chemical-as-a-treatment-for-pancreatic-cancer-may-have-major-impact-harvard-researcher-says-165116708.html
24 MORE GREENHOUSES!
FIELD EQUIPMENT!
RETAIL EXPANSION!
PLE!
MORE TRUCKLOADS!
Black hole? HOW ABOUT THE REVENUE SUPERNOVA!???!!!???
Assets must be falling out of the sky and landing in the right place for other companies, but NOT Hemp Inc, whodathunk?!
CASH AND ASSETS IS ON THE RISE!
FLOODGATES
People aren't complaining about quarterly rev growth?
Are they?
Yea expenditures still rise, but assets don't fall out of the sky, I mean, come on, let's be realistic.
HEMP posted over $1M is sales BEFORE industrial hemp regulation reform at the national level....
This year it only gets BIGGER and BETTER.
FLOODGATES
Fair enough... quarterly rev growth, nonetheless.
More monster quarters ahead. Can't wait to see how this year's crops adds to the ballooning increase in sales.
Pretty implicit the report is for 3 months and 6 months, trialing.
A little sloppy, but Bruce must be too busy building an empire and not proofing his reports.
I will agree with you (for a change) and support the fins should be revised and filed again.
RN, it's about 90+ acres, company owned.
HEMP is likely in contract to process hundreds of other acres grown by others, keep in mind. There is both the owner/operator and the contract-processing. Also supply chain, product line, consulting, yada-yada-yada...
HEMP is basically the MAIN-AND-MAIN of the industrial hemp production/processing/manufacturing. Hands on every corner.
Please take note of the assets and cash.
FLOODGATES
YES! SEASONALITY. AND DON'T FORGET F-U-T-U-R-E-S!
Ag commodities. Folks need to study up. Futures contracts, and seasonal market purchase orders.
The fact that HEMP is posting REVENUE INCREASES OUT OF SEASON is a big sign of what's about to happen. Indicates that either last year's crop is still selling or futures contracts are being booked.
Either way, Q OVER Q REV GROWTH is the story here.
OH BY THE WAY, did somebody say ASSETS and CASH?
WHO'S GONNA PROCESS ALL THE HEMP????
FLOODGATES
Sales were nearly half million USD for Q2.
Close to one milly YTD 2019.
We aren't even to harvest, where millions of pounds await for purchase and processing.
If I have time later, I'll provide a more thorough - UNBIASED - report.
The numbers speak for themselves, and progress is clearly being made.
Where in the report do you see "zero" sales?
Hysterical
Ha! That's hilarious!
Hard not to see the gigantic fields of hemp this company grows and processes.
Cash crop!
SO MANY MILLIONS TO BE MADE!!!
FLOODGATES
Personally, I think that other Co has a bright future, just like HEMP!
GO HEMP!
Bruce Perlowin---King of Cannabis---over 9,500 FB followers
https://www.facebook.com/KingOfPot
These are your contractual processors? Distribution radius seem like it has a total reach of about a few ten thousand or so end users. Not too many manufacturers up that way. Pretty much a well known no-where area, when it comes to hemp distribution, but Hemp Inc within tens of millions, drive-time.
Good luck up there!
Hemp Inc closer to point of sales, it appears. Both coastlines and more. International. Did somebody say CHINA?
China clearly not a big fan of American-made cannabis.
Trade wars due to newly deregulated agricultural commodity.
America becoming global leader in cannabis production, which means less imports from China... Canada... Europe.
No one saw this coming?
WOW - almost 15,000 acres in NC!!!
Add in hemp for fiber and that is easily doubled.
Smokable hemp just getting started, too, and we all know tobacco is foaming at the mouth.
Hemp Inc in prime position, patiently waiting as customers continue to line up.
Who's the contracted processor?
Forgetting food and cosmetics?
Hemp for animal feed: Economic potential waits out legal maneuvering
Published 1 hour ago | By Laura Drotleff
https://hempindustrydaily.com/hemp-for-animal-feed-economic-potential-waits-out-legal-delays/
Some action here.
Harvest is right around the corner.
The CBD craze is getting out of hand. The FDA needs to act.
The Washington Post
JULY 30, 2019
Cannabidiol — better known as CBD — is everywhere, from small specialty shops to large national retail chains. It can be found in foods, supplements, drugs, oils, creams, pet foods and more, and sellers purport that the compound treats everything from cancer to depression. Analysts say the market could surpass $20 billion by 2024.
But many of the compound’s expansive benefits are fanciful, and in fact, the sale of much of the product is illegal under current law. The Food and Drug Administration must act to make sure commercial interests don’t strip away any legitimate value that the compound might have.
Much CBD is derived from hemp, the commodity that was legalized in the 2018 farm bill. But the law still prohibits putting the chemical in food or pet food, and the FDA has issued repeated warnings and actions on the blooming CBD industry. In fact, there’s only one legally available purified form of CBD: the drug Epidiolex, approved by the FDA in 2018 to treat seizure disorders.
This doesn’t mean there can’t be a route for CBD to be legally sold in other forms, including as a food ingredient. Nor does it mean that CBD can’t offer potential benefits. But a legal path should be based on a clear and efficient regulatory process and sound science to guide its proper use.
CBD has risks: It can cause damage to the liver at high doses, and it may have a cumulative effect. If you eat CBD in your breakfast, lunch and dinner, you could get a toxic dose. Currently marketed products might also have undeclared ingredients and impurities, including the psychoactive compound found in marijuana, delta-9-tetrahydrocannabinol (THC).
Any path to allow CBD to be added to food products needs to preserve the incentive to study the compound in rigorous clinical trials to prove its therapeutic potential as a medicine. It’s not appropriate or legal to make such claims otherwise.
The conflict in grappling with these illegal products stems from the misperception that the 2018 farm bill fully “legalized” CBD. When Congress passed the bill, it established a category of cannabis from hemp defined by extremely low concentrations of THC. But in doing so, Congress explicitly preserved the FDA’s authority to regulate CBD-containing products to make sure they’re safe and that their claims are valid.
Under current law, CBD is permitted in food or dietary supplements only if the FDA issues a regulation allowing its use. This is a multiyear process subject to notice and comment, requiring a substantial amount of scientific data that the FDA must evaluate.
Given the pressure on the FDA to create a more immediate path for CBD products, this route might simply take too long. But there is a way that the FDA can fulfill its public-health obligations and meet the political demand for these goods: It can approve the sale of some CBD products immediately, while effecting a framework for their safe and proper regulation and a pathway for an enforceable market for these goods.
The FDA could put the onus on manufacturers to bring forward petitions to demonstrate that CBD can be safely added to products such as food. These submissions can take the form of new dietary ingredient notifications or food additive petitions, which would include toxicity studies to evaluate the safety of CBD. These are the same standards any new food ingredients are held to. Congress can help by passing language saying that the FDA doesn’t need to issue a broad regulation on CBD and can instead rely on petitions filed by individual, prospective producers.
In the meantime, the FDA could exercise enforcement discretion to allow CBD to be marketed in food so long as the products meet certain conditions. These criteria can include meeting good manufacturing requirements, demonstrating traceability, adhering to safe levels for the purity and potency of the CBD being added, and demonstrating that CBD is being added to food products only in very low concentrations that are unlikely to pose health risks.
In setting such a policy, the FDA could make clear that any CBD products that remain on the market — subject to a limited period of enforcement discretion — may not make any claims to treat disease. Other claims — for example, that it might help with relaxation — would have to be substantiated with evidence. This framework should also be expressly unique to CBD. Otherwise, there’s a risk it becomes a precedent for food and supplement makers seeking a back door to add other drugs to foods.
The FDA is being pushed by all sides to act quickly. Meanwhile, responsible food makers waiting for regulators to address the legal and safety considerations before launching CBD products are being eclipsed by unscrupulous purveyors. Obligating the industry to do the front end of this scientific work — and sweeping the market o f those who won’t — could advance a safe path and help establish the stable market for hemp-derived CBD envisioned by lawmakers.
We are a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for us to earn fees by linking to Amazon.com and affiliated sites.
Source: https://www.washingtonpost.com/opinions/the-cbd-craze-is-getting-out-of-hand-the-fda-needs-to-act/2019/07/30/94c8024c-b211-11e9-8f6c-7828e68cb15f_story.html
A nursery in RTP clones hemp plants that thrive on NC land where tobacco once grew
Raleigh News & Observer
JULY 31, 2019
Matt Spitzer and Chase Werner, childhood best friends and graduates of NC State University, have transitioned their hydroponic vegetable business in Durham to propagating hemp for growers enrolled in the state's pilot program to produce CBD oil. By
In a pair of pleasantly warm greenhouses tucked between the sprawling campuses of IT and pharmaceutical companies in Research Triangle Park, Matt Spitzer and Chase Werner are cloning what may be North Carolina’s next big crop.
Spitzer and Werner, childhood friends who grew up in Raleigh, abandoned a struggling organic hydroponic vegetable-growing operation a couple of years ago to launch Triangle Hemp, one of the first operations in the state devoted completely — and legally — to the production of hemp, the non-psychoactive relative of marijuana.
They decided to begin producing the plants the way farmers have chosen commercial crops for centuries. When they realized their vegetables were not sustainable because they couldn’t price-compete with large producers in California, they considered what else would thrive under local growing conditions, would be met with strong demand and would generate a reliable profit. Tomatoes for transplant? Micro greens? Ornamentals?
Spitzer and Werner, business and horticulture graduates of N.C. State University, arrived at this crossroads a couple of years after Congress decided to allow states to regulate hemp and its active ingredient, cannabidiol, or CBD. In 2016, North Carolina legislators approved a pilot program with rules and licensing procedures allowing — for now — farmers to grow hemp and processors to extract oil from the flowers. More than 600 growers have enrolled.
CBD has so far been federally approved for use in medication to prevent seizures, but it’s touted as a way to reduce chronic pain, relieve anxiety and even help clear up acne.
“It just seemed like hemp had the most potential,” said Spitzer. “We did a lot of research. It was clear this was not snake oil.”
Werner said he’s heard from people who have used CBD, or their aunt or cousin used it, “And it improved the quality of their life.”
Spitzer and Werner spent more than a year testing plants to find a hardy variety they could reliably clone and that wouldn’t produce more than the legal threshold of .3 percent THC, or tetrahydocannbinol, the main psychoactive ingredient in marijuana.
They found in it November 2017, and the next year, sold cuttings to 70 farmers who transplanted them onto more than 200 acres in North Carolina and other states. This year’s crop, which sold out in the spring, was about double that.
Like everything else that springs from the earth, hemp is susceptible to pests, diseases and consumer tastes. It remains to be seen how big the market is for CBD, and whether N.C. lawmakers will approve full-scale hemp production after the pilot program ends.
Agriculture is risky like that.
But for now, Spitzer said, “We feel very fulfilled. We love growing plants. If we can grow plants that help people, I don’t know how it can get any better than that.”
Source: https://www.newsobserver.com/news/state/north-carolina/article232688062.html
Dept. of Agriculture plants first legal hemp in Ohio
WLWT Updated: 12:59 PM EDT Aug 1, 2019
REYNOLDSBURG, Ohio — The Ohio Department of Agriculture planted the state's first legal hemp crop Thursday, days after Gov. Mike DeWine signed a bill decriminalizing hemp products in the state.
The first plants were placed in the ground at the department's campus by Department of Agriculture Director Dorothy Pelanda, along with leaders of the Hemp Program and Division of Plant Health.
DeWine signed Senate Bill 57 on Tuesday decriminalizing hemp and CBD products and paving the way for the development of a new hemp industry in the state.
Senate Bill 57 allows Ohio farmers and university researchers to grow industrial hemp and legalizes the sale of hemp-derived cannabidiol oil, or CBD.
The Ohio Department of Agriculture will administer the newly created hemp program.
The legislation allows for cultivation of hemp as long as it contains less than 0.3% THC, the cannabis compound that gives marijuana its high. It would be regulated by the state.
Ohio is the 47th state to regulate hemp. The Ohio Farm Bureau has predicted it will become the state’s third-largest crop, behind corn and soybeans.
Hemp is a cannabis plant that does not produce intoxicating effects, grown for its many industrial uses. Hemp contains a fiber, a grain and oil that can be extracted for CBD, which is now being used in food and dietary supplements.
The hemp program sets up a licensing structure for farmers who are interested in growing the crop and those interested in processing it, officials with the department said. It also allows for universities to grow and cultivate the crop for research purposes. ODA will also be testing CBD and hemp products for safety and accurate labeling to protect Ohio consumers.
Source: https://www.wlwt.com/article/newly-co-ed-summer-camp-for-scouts-gives-boys-girls-chance-to-earn-badges-side-by-side/28563494
EXCLUSIVE: GOP Chair Calls for Ending Banking Restrictions on Marijuana Sen. Crapo now supports allowing cannabis companies to access the U.S. banking system
by Matt Laslo– August 1, 2019
Marijuana business owners from coast-to-coast just got a major – and surprising – boost, as one of the most powerful Republican committee chairs on Capitol Hill tells Wikileaf that he now supports allowing cannabis companies to access the U.S. banking system. And more than that, he’s exploring ways to make it the law of the land with either standalone legislation or through pushing the Department of Justice to ease regulations and allow it to happen without this divided Congress having to weigh in on the matter.
Idaho Sen. Mike Crapo is no fan of marijuana – after all, he represents one of the mere three states that still don’t allow medicinal marijuana (or even CBD for that matter). Still, the Republican chair of the Senate Banking Committee tells Wikileaf for the first time that it now seems evident that Congress needs to stop its blockade and finally allow federally prohibited, though locally legal, pot businesses to use banks like every other business in the nation.
“I think so,” Crapo told Wikileaf at the Capitol when asked if legislation is needed to end the federal hurdles that have forced cannabis retailers to run as all-cash businesses. “Yeah.”
Last week Crapo turned heads when his committee held a hearing into even allowing marijuana businesses to access banks, which seemed to be a reversal from his previous position opposing even entertaining the idea of normalizing marijuana until Congress overturned its longstanding prohibition on the increasingly popular plant.
While pot proponents see it as progress that the senior senator is no longer blocking marijuana issues from being debated in his committee, that’s just the start of this sea change. Crapo says he’s actively exploring ways to solve this problem that’s been plaguing small-to-large cannabis companies for years now.
“I think all the issues got well vetted. We now need to, I think, move forward and see if there’s some way we can draft legislation that will deal with the issue,” Crapo said.
Crapo knows getting stand-alone legislation time on the Senate floor is an uphill battle, even on popular bipartisan proposals, like the Secure and Fair Enforcement (SAFE) Banking Act – legislation aimed at tearing down the barriers in federal law that have made most financial institutions refuse to lend capital to many marijuana companies. That’s why he’s also planning to work with the Trump administration to see if there’s a way to bypass this hyper-partisan and utterly gridlocked Congress altogether.
“There are other ways it could be solved,” Crapo said. “For example regulatory – they could deal with the issue at the Department of Justice, but I don’t know.”
Merely having the hearing on marijuana banking issues was “a historic moment in the Senate,” according to Sen. Cory Gardner (R-Col.) – one of two senators who testified in the Banking Committee ahead of a panel of experts who were mostly supportive of overhauling banking rules in order to assist the nation’s burgeoning marijuana industry. And he says the growing support from Republicans and Democrats alike on the issue shows that times aren’t just changing – they’ve already changed.
“It shows that this isn’t just a regional issue, but a national issue that needs to be addressed,” Gardner told Wikileaf as he was walking through the Capitol.
While some national media outlets made a fuss that Crapo was the only Republican on the Banking Committee to bother to attend the hearing, Gardner says those outlets missed the bigger picture: the conservative media machine and many GOP senators – professional rhetorical bomb-throwers – surrendered at the feet of marijuana.
“There was some criticism that the Republican attendance wasn’t there, but if they wanted to blow it up they would’ve been there,” Gardner said. “So I look at that as sort of an acknowledgment that this is now just a status quo issue and not something that they’re going to try and interfere with.”
Many Democrats also see these latest developments as progress.
“I would like to see it as a positive step forward,” Sen. Catherine Cortez Masto (D-Nev.) told Wikileaf as she was walking underneath the Capitol. “I support doing something in this country for these states that have legitimised marijuana businesses, we’ve got to give them an opportunity to have a financial system for them and…not an all-cash system for them.”
The former Nevada attorney general says the current federal prohibition on marijuana, especially while coupled with the banking prohibition, makes the nation’s multi-billion-dollar – and ever-growing – cannabis industry ripe for abuse.
“I have always been concerned about potential money laundering or crimes that are sort of around these all-cash businesses,” Cortez Masto said. “By having a financial system, it helps.”
But the question still ominously hovering over the nation’s capital – and all the marijuana dispensary owners, growers, and suppliers nationwide – is whether Senate Majority Leader Mitch McConnell will ever allow marijuana banking legislation, or any marijuana bill for that matter, to see the light of day on the Senate floor. That remains a multi-billion dollar question.
“We’ll find out,” Cortez Masto said as the elevator doors ushering her to McConnell’s tightly controlled Senate floor closed.
https://www.wikileaf.com/thestash/gop-chair-end-marijuana-banking-restrictions
Ohio governor signs measure legalizing hemp cultivation
By ASSOCIATED PRESS
ASSOCIATED PRESS |
JUL 31, 2019
COLUMBUS, Ohio (AP) — Ohio Gov. Mike DeWine has signed a bill that allows for the cultivation of industrial hemp and legalizes the manufacture and sale of CBD products derived from the plant.
Ohio's leading farm group applauded the signing of the bill Tuesday by the Republican governor.
The Ohio Farm Bureau says industrial hemp will give farmers another crop option and potential revenue stream that could offset "years of declining commodity prices."
Hemp contains only trace amounts of the psychoactive ingredient tetrahydrocannabinol found in marijuana, another plant in the cannabis family. CBD products, which are touted for their therapeutic effects, can contain just .3% THC under the new law.
Ohio’s Department of Agriculture must create rules for a hemp program before farmers can begin planting.
The federal government legalized hemp cultivation last year.
Source: https://www.chicagotribune.com/marijuana/sns-ohio-governor-signs-measure-legalizing-hemp-culitvation-20190731-4wjavd35pvcmjobtuvnz2zexba-story.html