Driven by a craze that is assuming almost cult-like proportions, money is pouring into the sectors of the cannabis industry that are focused on cannabidiol (CBD) products.<\/p>\n
In the latest case, Denver-based\u00a0Mile High Labs<\/a>, which bills itself as the world\u2019s leading cannabinoid extractor, earlier this month announced a $35 million infusion from both\u00a0institutional<\/a>\u00a0and\u00a0private equity<\/a>\u00a0investors \u2014 said to be the largest\u00a0Series A<\/a>\u00a0financing in cannabis market history.<\/p>\n Mile High Labs says it plans to use the capital to expand the production capacity of its CBD extract operations \u201cto meet rapidly increasing market demand.\u201d<\/p>\n The\u00a0press release<\/a>\u00a0on the investment cites\u00a0recent market research<\/a>\u00a0by the\u00a0Brightfield Group<\/a>\u00a0finding that the hemp-derived CBD market is projected to reach $22 billion by 2022 \u2014 outpacing the rest of the cannabis market combined.<\/p>\n \u201cWe believe the CBD market is in the early stages of a 20-year secular growth trend, the size and scope of which the world\u2019s largest consumer packaged goods companies cannot ignore,\u201d said Mile High Labs CFO Jon Hilley. \u201cWe are already the CBD platform of choice for many of the market\u2019s most recognizable brands and we welcome the chance to work with anyone seeking to explore this immense opportunity.\u201d<\/p>\n The Chicago-based\u00a0Brightfield Group\u2019s projections<\/a>\u00a0state that the CBD market is only likely to grow to this size if Congress passes federal hemp legalization with the 2018 Farm Bill.<\/p>\n In the case of federal hemp legalization, a firm distinction would likely be drawn between CBD derived from hemp and CBD derived from cannabis, often referred to as marijuana or high-THC cannabis when compared to hemp because of general public confusion around the differences between the two plants.<\/p>\n Legally, hemp is simply cannabis with 0.3 percent or less tetrahydrocannabinol (THC), by the federal government\u2019s definition.\u00a0Marijuana is cannabis with more than 0.3 percent THC \u2014 a cannabinoid long demonized by official propaganda, which apparently still lingers even as the cannabis industry has gone mainstream and boomed.<\/p>\n The old \u201cmarijuana\u201d stigma may also account for the relative unfashionability of THC compared to CBD \u2014 the former gets you \u201chigh,\u201d while the latter does not. This may be causing investors and companies to overlook\u00a0the medical potential of THC<\/a>.<\/p>\n Having completed a \u201ccritical study\u201d of CBD earlier this year, the World Health Organization has\u00a0now opened such a study on THC<\/a>. When the results come in, it could begin to spur renewed interest in THC\u2019s potential for application by the medical industry.<\/p>\n Some industry observers are already warning that\u00a0it\u2019s time to tone down the CBD hype<\/a>, and return to a more balanced view of cannabinoids and the cannabis plant.<\/p>\n A possible sign that cannabis company valuations have become unsustainably overheated by the CBD hype is the lackluster performance of\u00a0Aurora Cannabis<\/a>, one of the Canadian industry majors, when it debuted on the New York Stock Exchange on Oct. 23. Shares dropped more than 15 percent before recovering toward the end of the day.<\/p>\n And other cannabis companies, which had recently been surging, also fell sharply. Ironically,\u00a0CNN Business<\/a>\u00a0notes that investors have been dumping cannabis stocks since Canadian legalization officially took effect last week, calling it a \u201cclassic case of buying the rumor and selling the news.\u201d<\/p>\n Shares of\u00a0Canopy Growth<\/a>,\u00a0Cronos<\/a>\u00a0and\u00a0Tilray<\/a>\u00a0all fell some 10 percent on Oct. 23 \u2014 and each was already down about 30 percent in the past five days. This was after Canopy Growth, recent recipient of a $4 billion investment\u00a0from beer giant Constellation Brands<\/a>, had surged more than 50 percent in the past three months.<\/p>\n Back in May, Ontario\u2019s Canopy Growth made history when it\u00a0became the first<\/a>\u00a0\u201cplant-touching\u201d cannabis company to list on the New York Stock Exchange. It has since been joined by Edmonton-based Aurora, Toronto-based Cronos and Vancouver Island-based Tilray.<\/p>\n TELL US,<\/b>\u00a0do you have any CBD investments?<\/p>\n The post Will Hype Keep Driving Up CBD Investments Over THC?<\/a> appeared first on Cannabis Now<\/a>.<\/p>\n
Driven by a craze that is assuming almost cult-like proportions, money is pouring into the sectors of the cannabis industry that are focused on cannabidiol (CBD) products. In the latest case, Denver-based\u00a0Mile High Labs, which bills itself as the world\u2019s leading cannabinoid extractor, earlier this month announced a $35 millionContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":190,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[630,5615,1924,6312,50,1228,461,136,6313,170,6155,420,1088],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/30250"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/190"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=30250"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/30250\/revisions"}],"predecessor-version":[{"id":30251,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/30250\/revisions\/30251"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=30250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=30250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=30250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Terminological Confusion and the THC\u00a0Stigma<\/h4>\n
Cannabis Slips on the NYSE<\/h4>\n
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\nRead More: Will Hype Keep Driving Up CBD Investments Over THC?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"