- Global hemp retail sales totaled $3.7 billion in 2018, on track to reach $5.7 billion by 2020
- 2018 Farm Bill legalizing hemp, CBD-based products, now allows farmers to plant industrial hemp nationwide
- Cultivation of hemp at Scio, Oregon, project site to begin in early 2019 for an extended growing season
- MCOA’s wholly owned subsidiary, hempSMART, brings high quality, branded CBD-based products to consumers through an affiliate marketing program
Market opportunities for the hemp-based cannabidiol (“CBD”) product industry in the U.S. are many and growing now that hemp is legally protected following passage of the 2018 Farm Bill in December. Innovative hemp and cannabis corporation Marijuana Company of America Inc. (OTCQB: MCOA) is well positioned to take advantage of this shift in the legal landscape, with a variety of portfolio companies operating within the cannabis and hemp industries (http://cnw.fm/P6js0).
MCOA’s wholly owned hempSMART subsidiary offers a line of industrial hemp-derived CBD products, which contain no THC, the psychoactive compound in cannabis. The company’s hempSMART associate marketing program (http://cnw.fm/Pl1Il) provides opportunities for others to become part of the hempSMART family through a unique distribution model. As a company primarily focused on industrial hemp-CBD products, MCOA targets a growing wellness industry with its branded CBD line of hemp-derived products (http://cnw.fm/xC8I9).
The U.S. hemp crop tripled in 2018, with acreage rising rapidly in the 24 states actively growing last year, according to advocacy group Vote Hemp, and that figure is expected to grow now that the Farm Bill has opened the door to nationwide hemp production. Total American hemp acreage was at 78,176 acres last year, up from 25,713 in 2017, to an article in Hemp Industry Daily (http://cnw.fm/99xZA).
Hemp production is destined to grow in Oregon as well after MCOA announced on January 10 that clone production at the company’s Scio, Oregon, high-yielding CBD hemp project is underway. MCOA and joint venture partner Global Hemp Group Inc. (OTC: GBHPF) (CSE: GHG) (FRANKFURT: GHG) are preparing to begin planting as early as possible in 2019, which will have a positive effect on the length of the growing season (http://cnw.fm/YntU3).
The company will cultivate at least three strains of hemp, characterized by high CBD content, ultra-low levels of THC and substantial biomass yields. The selected strains have superior pest resistance and a shorter flowering period, enabling earlier harvest (http://cnw.fm/Bzf2i). The hardiest phenotypes will create the mother plants that will be in the heart of the cloning process. MCOA started the cloning process in November 2018, soon after the completion of the annual harvest and drying operation. As a result of the cloning operation, MCOA expects to have approximately 40,000 plants that will be needed for the lower 35 acres of the farm.
Covered Bridge Acres (“CBA”), the project operating company, has already received Oregon Department of Agriculture registration to cultivate hemp in 2019. In addition, CBA has a permit to produce and handle agricultural hemp seed, which means that a seed breeding program can be established. CBD-rich hemp seed is another huge market opportunity as hemp growers seek certified seeds that have been tested against germination and uniformity benchmarks, including low levels of THC, according to an article in Hemp Industry Daily (http://cnw.fm/kF46Z).
According to a first-of-its-kind report from data analytics firm New Frontier Data, ‘The Global State of Hemp: 2019 Industry Outlook’, global hemp retail sales totaled $3.7 billion in 2018 and are on track to grow to $5.7 billion by 2020, as an article published by The Motley Fool reports (http://cnw.fm/L5yTG). New Frontier Data’s report estimates that U.S. hemp sales will have jumped to $2.6 billion by 2022, representing a compound annual growth rate of 27 percent. Of this $2.6 billion in hemp sales, half ($1.3 billion) are expected to stem from hemp-derived CBD products.
MCOA continues to work to create value for its shareholders with diverse initiatives, including strategically investing in synergistic companies to develop a varied portfolio of subsidiaries and joint ventures. MCOA envisions a future in which it will be a model for entrepreneurs and businesses that share its common goals and philosophies. This includes creating an environment for businesses to improve quality of life for their customers.
For more information, visit the company’s website at www.MarijuanaCompanyofAmerica.com
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