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Big Winners from the Farm Bill

ACCESSWIRE

HENDERSON, NV / ACCESSWIRE / December 13, 2018 / The 2018 Farm Bill was passed by the Senate on Tuesday by a vote of 87-13. The next move is that the legislation heads to the House for a vote-- and then if it passes there, it goes to President Trump to be signed into law. It is expected to face no significant challenges.

The impact of this legislation on the cannabis industry is enormous. Last year, hemp sales in the U.S. reached $820 million, according to the Hemp Business Journal. That's without hemp being completely legal. These sales have been projected to reach $2.1 billion by 2020 -- and that's not taking into account the passage of the Farm Bill. Here are a few companies set to benefit.

Today we are highlighting: CleanSpark, Inc. (CLSK), Aurora Cannabis, Inc. (ACB), Aphria, inc. (APHA), Charlotte's Web Holdings, Inc. (CWBHF), and PG&E Corporation (PCG).

The $3.5 billion cannabis industry is one of the nation's most energy intensive, often demanding 24-hour indoor lighting rigs, heating, ventilation and air-conditioning systems at multiplying grow sites. Legal cannabis cultivation in the U.S. consumes an estimated 1.1 terawatt-hours of electricity a year, according to the 2018 Cannabis Energy Report, published by Scale Microgrid Solutions along with New Frontier Data and the Resource Innovation Institute. Companies managing these solutions are great ways to diversify your cannabis industry risk.

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Indoor growers are looking to cut spiraling electricity consumption with custom-built microgrids in U.S. states where cannabis cultivation is legal.

A company that seems to be in the right place at the right time to capitalize on this huge market inefficiency is CleanSpark, Inc. (CLSK) (Market Cap: $112.537M, Share Price: $3.08).

CLSK has a unique microgrid solution for the cannabis industry. Their mPulse software reduces the monthly electricity bill of indoor grow-houses by up to 82%! They do this by virtually eliminating the demand charges that can account for almost 50% of the utility charges for such a facility.

Pressure is mounting on the cannabis industry to improve its margins after a lackluster 3rd quarter, companies like CLSK can help do just that.

CLSK also just released an impressive letter to shareholders highlighting: an agreement for an $18.3 million 'Zero Net Energy' Microgrid with an S&P 500 Member Real Estate Investment Trust (REIT), near completion on a $900,000 contract to install a 'turn-key advanced microgrid system' at the U.S. Marine Corps Base Camp Pendleton, has been awarded 2 patents, and has updated an acquisition that could be a huge boost to the company's year end revenues.

CLSK's acquisition, Pioneer Custom Electrical Products, has delivered $32 million in products since 2016 and has $5 million in backlog. They have also received a $2.4 million equipment order as part of a contract for the new U.S. Embassy in Beirut, Lebanon which should end up on CLSK's balance sheet.

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Aurora Cannabis (ACB) (Market Cap: $6.064B, Share Price: $6.12), a Canadian marijuana producer was just selected to supply medical cannabis to Luxembourg. The decision by the Luxembourg Health Ministry helps Aurora expand its footprint in the European Union and comes more than a week after the company announced it completed the first shipment of medical marijuana to the Czech Republic.

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Aphria, inc. (APHA) (Market Cap: $1.446B Share Price: $5.81) completed its LATAM acquisition of LATAM Holdings Inc. This acquisition consisted of licenses and other assets and related businesses in Colombia, Argentina and Jamaica and a right of first offer and refusal in respect of Brazil. There has been some controversy over the value of the acquisition.

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Charlotte's Web Holdings, Inc. (CWBHF)(Market Cap: $1.113B, Share Price: $11.90), rephrased its website and many other CBD companies dialed down the promises of efficacy. The stock, listed in Canada, has moved from C$8.13 to a year high of C$20.76 and was lately trading at C$16. Charlotte's Web recently reported financial results for its third quarter, with revenue growth of 57%, to $17.7 million, versus last year's $11.3 million for the same time period. Gross profits increased 54%, to $13.8 million over last year's $9 million for the same time period.

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A potential CLSK suitor, PG&E Corporation (PCG) (Market Cap: $13.688B Share Price: $26.39), states multiple factors contribute to wildfire risk across PG&E's service area. These include vast tree mortality following a historic five-year drought. Fire season is now extended due to prolonged periods of high temperatures, extreme dryness, tinder-dry grass and record-high winds increasing the number of wildfires and making them more dangerous. Headquartered in California where 3% of electricity consumed goes to cannabis grow operations, this is one to watch.

Legal Disclaimer:

This article was written by Regal Consulting, LLC ("Regal Consulting"). Regal Consulting has agreed to a three-month term consulting agreement with CLSK dated 9/12/18. The agreement calls for $10,000 in cash, and 30,000 restricted 144 shares of CLSK per month. Regal and CLSK have signed an amendment to extend the contract for twelve months starting 10/10/18, and increased the cash component to $20,000 per month. All payments were made directly by Clean Spark, Inc. to Regal Consulting, LLC. to provide investor relations services, of which this article is a part of. Regal Consulting also paid one thousand dollars cash to microcapspeculators.com to distribute this article. Regal Consulting may have a position in the securities mentioned in this article at the time of publication, and may increase or decrease its position without notice. This article is based on public information and the opinions of Regal Consulting. CLSK was given an opportunity to edit this article. This article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any results predicted herein. Regal Consulting is not registered with any financial or securities regulatory authority, and does not provide or claim to provide investment advice.

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SOURCE: Microcap Speculators