PALM BEACH, Florida, March 13, 2019 /CNW/ -- The passage of the U.S. Farm bill, which restored industrial hemp to nationwide legal production for the first time since World War II, has been generating a financial windfall for North American cannabis companies. A recent post from industry watchers on the net said: "More broadly, the passage of the Farm Bill represents a sweeping change in the balance of power in global hemp markets. The United States has historically been an importer of hemp products from Canada, Europe, and China. Now, with the Farm Bill as its tailwind, the CBD - hemp market will expand to lead the global hemp industry by 2020, representing 32% of a $5.7 Billion global market in 2020." Active companies in the markets this week include The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF - News), Aurora Cannabis Inc. (NYSE:ACB - News) (TSX:ACB - News), HEXO Corp. (TSX:HEXO - News) (NYSE:HEXO - News), Cronos Group Inc. (NASDAQ:CRON - News) (TSX:CRON - News), Altria Group, Inc. (NYSE:MO - News).
A recent article in FORBES added: "With CBD sales in the US expected to reach $22 billion by 2022, as projected by cannabis market research company. Congress' re-regulation of hemp has presented a good reason for many to celebrate." The article continued: "2018 was the year CBD was on everyone's lips, thanks to plenty of media buzz and the suddenly-ubiquitous presence of an array of CBD-infused beverages, lotions and self-care products."
The Yield Growth Corp. (CSE:BOSS) (OTCPK:BOSQF - News) BREAKING NEWS: Yield Growth Corp is pleased to announce its subsidiary, Yield Botanicals Inc., has entered an agreement with Vandenbosch Trading Company Ltd. to purchase a 10 acre property. The purchase includes over 2.5 acres (approximately 100,000 square feet) of well-equipped and automated greenhouses, currently operating as an orchid flower grow and essential oil extraction business. The total price for the land, buildings, greenhouses and equipment is $2.4 million. Yield Growth has available cash on hand to complete the purchase.
This strategic asset purchase will allow Yield Growth to grow plants and build out extraction facilities in the existing infrastructure, while providing plenty of room for future expansion. Owning a farm will give Yield Growth complete control of key proprietary ingredients for its products, including hemp root oil. The purchase will also empower Yield Growth's in-house research capabilities for growth and innovation.
"We are delighted that we are buying a property to house our extraction facilities as well as potential cultivation of industrial hemp and other plants with therapeutic benefits," says Penny Green, CEO of Yield Growth. "One of our initiatives will be to work with local farmers and scientists to develop hemp strains with heavy concentrations of cannabidiol (CBD) in parts of the hemp plant that are exempt from the Cannabis Act."
Yield Growth is planning to optimize the farm's current orchid growth and essential oil extraction to include new products. It plans to set up an additional extraction facility dedicated to hemp root oil—a key ingredient in Urban Juve products and in the cannabis topicals line launching in Oregon. Yield Growth will also apply to cultivate industrial hemp for the purpose of hemp root oil extraction, and carry out research and development to create cannabidiol from the parts of the hemp plant exempt from the Cannabis Act. The farm facilities also allow Yield Growth to grow herbs currently used in the Urban Juve product line, and extract essential oils on site, according to the Ayurveda philosophy. Read this and more news for The Yield Growth Corp. at: https://www.financialnewsmedia.com/news-boss
Other recent developments from major influences in the cannabis/CBD industry include:
Aurora Cannabis Inc. (NYSE:ACB - News) (TSX:ACB.TO - News) recently reported that the company has received all required approvals to sell its cannabis oil in Germany. Aurora says that the Canadian and German regulatory authorities have cleared the company for selling cannabis oils to German pharmacies. According to the company, Pedanios 5/1 drops have become the first extract derived oil product compliant with the German monograph for in-pharmacy preparation.
Aurora is a major player in the German medical cannabis market. Since December 2015, the company has supplied the German market with dried cannabis flower through Aurora Deutschland. The company has been selling Canadian-grown Aurora products in Germany since September 2017. As one of the few companies able to sell oils in the rapidly-growing German cannabis market, Aurora says that it is well positioned to establish "brand leadership in the European derivatives market."
HEXO Corp. (NYSE:HEXO - News) (TSX:HEXO.TO - News) this week announced that it is the first cannabis company to join Food & Consumer Products of Canada (FCPC), the largest voice of the Canadian food, beverage and consumer products industry. FCPC exists to help its members deliver safe and affordable products that enrich people's lives.
"HEXO is thrilled to be the first cannabis company to join the Food & Consumer Products of Canada, an established and industry leading association in the consumer-packaged goods space," said Sébastien St. Louis, HEXO Corp's CEO and co-founder. "We look forward to working with FCPC and all their members to forge new relationships and potential partnerships. It is an exciting time to be in the ever-evolving cannabis industry."
Cronos Group Inc. (NASDAQ:CRON - News) (TSX:CRON.TO - News) recently announced that the C$2.4 billion equity investment in the Company by Altria Group, Inc. (NYSE:MO - News) ("Altria") has closed. As previously announced, Altria's investment represents an approximate 45% ownership interest in Cronos Group. Altria also has a warrant to acquire additional ownership in Cronos Group, which is exercisable over the next four years. If exercised in full today, the warrant would increase Altria's ownership in Cronos Group to approximately 55% and provide Cronos Group with additional proceeds of approximately C$1.4 billion.
"We are delighted to close this transaction and kick-off a relationship that we expect to lead to significant growth and value creation," said Mike Gorenstein, Cronos Group's Chairman, President and Chief Executive Officer. "Altria's investment and the services they will provide to Cronos Group will enhance our financial resources, and allow us to expand our product development and commercialization capabilities, and regulatory expertise to better position Cronos Group to compete, scale and lead the rapidly growing global cannabis industry. We look forward to the many opportunities we expect this relationship to create."
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