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09/18/19 4:47 PM

#19710 RE: VERAX #19709

ANALYSIS: ENFORCEMENT DISCRETION = NATIONAL SALES

Enforcement Discretion is de facto national legalization

Banking will open up and CBD Isolate products will be allowed to sell nationally



So in terms of CBD Isolate products, we now know that 1 of the following 4 possibilities are going to happen in October 2019:

1) FDA outright federally legalizes CBD Isolate products and publishes their regulatory framework around these products in October 2019

2) FDA legalizes CBD Isolate products on an interim basis until they have collected more safety data, and in October 2019 announces a policy of enforcement discretion on CBD Isolate until such time that they have developed an actual framework — once a permanent framework is in place for CBD Isolate, there isn’t any need for the policy of enforcement discretion to continue

3) FDA isn’t ready to federally legalize any CBD products yet on any basis (interim or permanent), but still announces a policy of enforcement discretion for CBD Isolate in October 2019

4) FDA doesn’t announce an interim or permanent framework for CBD Isolate products and also doesn’t announce a policy of enforcement discretion for CBD Isolate products in October 2019 — even in this scenario, with yesterday’s legislation Mitch has tied the FDA’s hands and forced them to announce a policy of enforcement discretion on at least one formulation of CBD products by January 2020 — we already know that the FDA favors legalizing and/or practicing enforcement discretion on CBD Isolate products first, so if the FDA is forced by Congress to practice enforcement discretion on CBD products, we can feel very confident that CBD Isolate products will be selected for this policy

Yesterday’s news has really clarified everything for me and I hope I’ve been able to successfully communicate this clarity to you

I think October is continuing to look like the best bet for the onset of the CBD Mania, though we may very well see some anticipatory buying before it begins

CANB


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