Changing Attitudes in Washington Offer Promise for Hemp and Cannabis Market

PsychedelicNewsWire Editorial Coverage: Legal changes could soon make transacting business easier for the cannabis industry.

  • Reports indicate that the president plans to reform cannabis laws, making commerce easier for businesses working in states with legal markets.
  • Reforming the law could improve the position of companies working with cannabidiol (CBD) as a food additive and industrial hemp.
  • Hemp and CBD are now large segments of the cannabis sector.
  • These anticipated legal changes are part of a wider international shift.

One of the companies that may benefit from changes in the United States is Marijuana Company of America, Inc. (OTC: MCOA) (MCOA Profile), which works primarily in cultivating industrial hemp and developing CBD products. Tilray, Inc. (NASDAQ: TLRY), which has affiliates around the world, may use its global experience to adjust to changes in the United States. Research into cannabis by companies such as Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) will become easier, eventually improving product ranges and patient well-being. The legislative shift is also being encouraged by companies such as PotNetwork Holding, Inc. (OTC: POTN) through efforts at public and industry events. And as industry leaders such as Aphria, Inc. (OTC: APHQF) (TSX: APH) swallow up smaller companies, a stronger, consolidated sector is likely to result.

White House Hints at Cannabis Reform

Spirits have been lifted in the American cannabis industry following a report that the White House is planning to support drug law reform. California Sen. Dana Rohrabacher told Fox Business that insiders around the president have said he intends to push for a reform of cannabis regulation. This would reportedly involve encouraging the federal government to make medical marijuana legal on a national level while leaving the status of recreational cannabis up to individual states.

The reasons behind Rohrabacher’s announcement are clear. As a Republican defending a closely fought seat in a pro-cannabis state, he stands to benefit from convincing his constituents that his party is pro-cannabis. But the stance is also part of a wider trend in politics.

A growing number of politicians from both main parties have shown support for legalization, driven by shifts in public attitudes. Polls this year have indicated that 64 percent of Americans support legalization and 74 percent support legislation that would protect states that legalize cannabis despite the federal government’s opposition. Always happy to ride a high-profile trend, President Donald Trump has previously indicated that he will support a states’ rights agenda on the issue, despite action in the opposite direction by his attorney general.

What will this mean for cannabis companies?

Making Life Easier for Cannabis Companies

Cannabis is already big business in the United States. Nearly two-thirds of states have legalized medical marijuana in some form, and one in five have legalized its recreational use. Clearly, there’s a large legal market to be served. This has led to growth not only for companies catering to those sectors but to those engaging in cannabis in other ways, such as Marijuana Company of America (OTC: MCOA).

MCOA illustrates the variety of ways in which companies are now engaging in the cannabis sector. Rather than producing medical or recreational cannabis, the company has focused on varied uses of industrial hemp, a form of cannabis without the psychoactive qualities. Derivatives of hemp can be used in food, textiles, construction and medicines, making it a versatile and valuable crop.

Within that part of the sector, MCOA has a variety of operations. The company is engaged in two partnerships to improve plant strains and cultivation techniques, and sells a range of products derived from hemp. This range of business opportunities is part of what makes the cannabis sector so profitable, with a value in the billions of dollars in Canada alone.

The potential profits of the sector mean that ambitious companies such as MCOA have been able to raise finance through investment rather than through hard-to-come-by bank loans, which have been in short supply in the United States because of the federal government’s stance toward the plant. Clearing up the contradictions between state and federal laws would make business much easier.

Industrial Hemp

One of the biggest growth areas within the current cannabis market may not necessarily feed into the medical or recreational cannabis markets. That sector is industrial hemp.

Hemp is a form of cannabis that contains only a minimal level of tetrahydrocannabinol (THC), the chemical that gets cannabis consumers high. Before the general prohibition on cannabis cultivation, hemp was largely used in producing rope and textiles. Now this space is seeing a resurgence thanks to changes in cannabis legislation. MCOA is involved in growing hemp through businesses such as its New Brunswick Hemp Project, one of many companies exploring hemp’s potential.

In the United States, hemp is currently grown legally on sites designated as research and test projects. This was made possible following the 2014 Farm Bill, which included provisions for such sites.The potential for that bill to be expanded this year to full agricultural legalization of hemp is expected to drive spectacular success for farmers who choose to cultivate it. Hemp can be grown outdoors in fields and will grow quickly in a wide range of conditions. Some farmers have predicted that they may see revenues of $90,000 per acre for the crop, compared with only $600 for alfalfa, one of the most popular crops in the United States.

The 2014 Farm Bill expired at the end of September this year, and the bill scheduled to replace it has not yet been passed, thanks to battles on a wide range of issues between Republicans and Democrats. Surprisingly, hemp is fairly noncontroversial. The plant has found cross-party support, with backing for legal reform driven by Republican leaders. As a result, provisions in the bill that would allow for more hemp farming will almost certainly be passed when work on the bill is completed after the November mid-terms.

The updated Farm Bill will make it easier for companies such as MCOA to expand their operations and sell their products. And following reports about cannabis law reforms coming out of the White House, the bill looks likely to become a herald of wider potential.

Hemp’s Big New-Profit Area — CBD

One of the most exciting areas for exploration is how hemp can best be turned into profit. CBD is hemp’s primary active ingredient. Recent research has found a range of uses for CBD in health and wellness products. It’s the extraction of CBD that makes hemp so potentially profitable for modern farmers.

CBD is already being used in a wide variety of products. MCOA’s hempSMART line alone includes pain capsules, a topical pain cream, face cream and pet wellness products. Legal changes will make it easier for companies to research and manufacture products such as these, broadening the scope of the CBD market.

Unregulated CBD grants companies more potential to go international, as its sale is less limited than that of medical and recreational cannabis. MCOA is currently preparing to launch hempSMART into Europe and has appointed a new global sales director to oversee this work.

Legal Changes Affect Many Companies

Whether it’s the Farm Bill or President Trump’s promise to accept a revision of federal laws, the possibility of legal changes has the potential to affect a lot of companies working within the cannabis sector. State-level legalization and changes in Canada’s laws this month have allowed companies to emerge working entirely within this sector.

Like MCOA, Tilray, Inc. (NASDAQ: TLRY) is working beyond the boundaries of the United States. The company has affiliates in Australia, Canada, Germany, New Zealand and Portugal, and is now adding Chile to that roster through the acquisition of Alef Biotechnology SpA. Tilray’s products are already used by tens of thousands of patients as well as physicians and researchers around the world. That gives the company existing experience and infrastructure to expand in a reformed American market.

Another company with international reach — Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) — is earning a name for itself not just as a supplier of cannabis products but also as a researcher in the arena. Cronos has recently announced a study into the effectiveness of medical cannabis in tackling sleep disorders. Such research will be both easier and more profitable as more countries legalize cannabis.

A sign of the power of the sector is the growing number of holding companies now built around cannabis. PotNetwork Holding, Inc. (OTC: POTN) is one of those, with subsidiary companies covering cannabis production and related parts of the industry. The company is reaching out to customers through large events such as the 2018 World Vapor Expo, designed to increase the profile of cannabis and remind those in power of the plant’s popularity. Such corporate PR work is increasing the momentum of the movement towards legalization.

The growth of the industry has also led to a series of mergers and acquisitions, as big players consolidate their hold. Aphria, Inc. (OTC: APHQF) (TSX: APH) recently completed acquisitions in Latin America, the Caribbean and Canada, bringing with them supply agreements reaching into Europe and Israel. Liberalization of cannabis laws is becoming a global trend, and as the businesses involved become bigger, so will the push for further reform.

Legal changes appear certain to come to the United States. When they do, there will be plenty of companies making the most of them.

For more information on Marijuana Company of America, visit Marijuana Company of America, Inc. (OTC: MCOA)

About PsychedelicNewsWire

PsychedelicNewsWire (PNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) PsychedelicNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, PNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. PNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, PNW brings its clients unparalleled visibility, recognition and brand awareness. PNW is where news, content and information converge.

Receive Text Alerts from PsychedelicNewsWire: Text “Cannabis” to 888-902-4192

For more information please visit and or https://PsychedelicNewsWire.News

Please see full terms of use and disclaimers on the PsychedelicNewsWire website applicable to all content provided by PNW, wherever published or re-published:

PsychedelicNewsWire (PNW)
San Francisco, California
415.949.5050 Office

DISCLAIMER: PsychedelicNewsWire (PNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by PNW are solely those of PNW. Readers of this Article and content agree that they cannot and will not seek to hold liable PNW for any investment decisions by their readers or subscribers. PNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, PNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.


This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and PNW undertakes no obligation to update such statements.


Select A Month

PsychedelicNewsWire Currently Accepts



Bitcoin Cash

Bitcoin Cash

Doge Coin






USD Coin

USD Coin

Contact us: 415.949.5050