The 2018 US Farm Bill Ends Hemp Prohibition and Opens New Markets for CBD
VANCOUVER, Dec. 20, 2018 /CNW/ - 1933 Industries Inc. (the "Company" or "1933 Industries") (CSE: TGIF) (OTCQX: TGIFF) a licensed cultivator and producer of cannabis flower and concentrates and manufacturer of hemp/CBD products in Nevada, Colorado and California, announces the passing of the Agriculture Improvement Act of 2018 ("Farm Bill"), which legalizes hemp as an agricultural commodity federally in the United States and allows hemp farming to operate on a commercial scale. Today, President Trump signed the bill that will go into effect January 1st 2019.
The passing of the Farm Bill is anticipated to:
Positively impact the Company's plans to produce CBD extracts on a large scale
Set the stage for an expanded focus on CBD branded goods
Open new markets across the USA
Increase participation from financial institutions and investors in the USA
Present the opportunity for the Company's suite of branded products to be carried in major national retailers
The Farm Bill includes a provision to legalize hemp cultivation, production and distribution and removes hemp from the federal list of controlled substances and allows hemp farming for industrial purposes across all US states under a new regulated environment. Hemp farming has been on the rise largely due to increased CBD production. Cannabidiol or CBD is a chemical compound that occurs naturally in cannabis and when derived from hemp, it contains negligible amounts of THC, the psychoactive component in the Cannabis plant, and offers medicinal benefits for a wide range of conditions.
Infused MFG., ("Infused") the Company's manufacturer of hemp-based and CBD-infused Canna Hemp™ wellness line of products, announced today plans to begin processing hemp into CBD extracts for the production of full spectrum oils, distillates and isolates. The plans increase CBD production from an initial target of 200 kgs. to an estimated 2,000 kgs. per month, which is a 10x increase in production capacity. According to the Brightfield Group, the domestic hemp market is expected to grow to $22B by 2020.
"The impact of the Farm Bill is significant to our business", remarked Mr. Chris Rebentisch, USA Chief Operations Officer and Founder of Infused. He added, "The new bill clarifies the legal status of hemp-derived CBD extracts. Overall, we expect the CBD industry to break market expectations, become commoditized, and follow strict regulations. We believe that the greatest return on investment over the next 5 years is in producing isolated cannabidiol extract and we will have a leading position in this area."
Mr. Brayden Sutton, President and CEO of 1933 Industries commented, "As we enter the hemp processing business in early 2019, the new legislation will create a robust market for hemp at competitive rates and will provide greater access to biomass, while highlighting the need for CBD processing facilities. The untapped versatility of CBD will become sought-after, as regular products begin to be infused with CBD and national retailers enter this sector. This is an explosive market and we are pleased to be at the forefront of the next consumer packaged goods revolution".
1933 Industries currently follows the strictest marijuana regulations for manufacturing and product standards on its CBD products. Adherence to such high standards ensures the smooth transition into the regulated CBD market without loss of business. The passing of the Farm Bill includes federal regulations relating to banking, research, and financing, which benefits companies operating in this space. The Company anticipates that CBD products will become mainstream and available in major retail chain stores and outlets across the nation.
About 1933 Industries Inc.
1933 Industries Inc. is a vertically integrated cannabis company with operations in the United States and Canada. Operating through three subsidiary companies, 1933 Industries owns licensed medical and adult-use cannabis cultivation and production assets, proprietary hemp-based, CBD infused products, CBD extraction services and a specialized cannabis advisory firm supporting clients in security, intelligence and due diligence. The Company owns 91% of both Alternative Medicine Association and Infused MFG. and 100% of Spire Global Strategy.
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Notice regarding Forward Looking Statements: This news release contains forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this news release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents, which can be found under the Company's profile on www.sedar.com. 1933 Industries undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.