The Next Four Years Could Be Huge For US CBD Companies

FN Media Group Presents Market Commentary


New York, NY – February 10, 2021 – Cannabis and hemp stocks have surged in the weeks following President Joe Biden’s electoral victory, and the industry could see some big days ahead under the Biden Administration. Biden vowed ahead of election day to decriminalize cannabis, and there is an expectation in the industry that this will result in a stronger, more unified regulatory framework. For the hemp-derived CBD market, this could mean opportunities for expansion into new markets, as well as new distribution opportunities for CBD health and wellness products to be sold in a wider range of stores. This could be the largest regulatory growth opportunity for companies like HempFusion Wellness Inc. (TSX: CBD.U) (OTCPK: CBDHF), Tilray Inc (NASDAQ: TLRY), Canopy Growth Corp (NASDAQ: CGC) (TSX: WEED), Cronos Group Inc (NASDAQ: CRON) (TSX: CRON), and OrganiGram Holdings Inc (TSX: OGI) (NASDAQ: OGI) since the first US states opened up to medicinal CBD and cannabis products.


HempFusion’s Regulatory Standards Open Doors


Denver-based health and wellness company HempFusion Wellness Inc. (TSX:CBD.U) is set up to flourish in a broader and more unified US CBD regulatory regime. The company has endeavored to build itself up to be the gold standard for health and safety regulatory compliance in the CBD market, allowing it the opportunity to move into newly opened markets and retailers that had not previously carried CBD products without the need for significant operational changes.


HempFusion’s high standards have already opened doors for the company that may remain closed to other CBD companies. HempFusion has developed a regulatory portfolio and the company’s products are available at a combined 4,000+ retail sales locations throughout the United States, including major retailers like Whole Foods. HempFusion is also working on developing trust among healthcare professionals, which may provide the company with the opportunity to sell directly to healthcare practitioner networks through two specialized medical CBD brands.


A new, more open regulatory landscape in the US will likely add to these opportunities, and HempFusion could be among the first CBD companies to benefit.


HempFusion specializes in broad spectrum CBD products derived from hemp, whereas most other companies derive their products from hybrid cannabis plants. The company uses an exclusive hemp-derived CBD extract fused together with other scientifically validated ingredients that support targeted areas, including skincare, nutrition, stress, sleep, and more. The company’s Topical products are focused on the Over-The-Counter (OTC) drug listed market, which allows HempFusion to target the formulas towards very specific applications with legally permissible health claims, such as pain. These formulas include a skin nourishing proprietary blend that includes hemp-derived CBD and so much more.


HempFusion’s wholly-owned subsidiary Probulin Probiotics LLC is a successful probiotics company and is pivotal in deploying the company’s ‘Trojan Horse’ strategy as a gateway to gain access to new markets as US regulatory development accelerates over the next four years. HempFusion’s Probulin subsidiary is a market-leading probiotics brand that does not include CBD products. HempFusion’s Probulin, already successful and one of the fastest growing probiotic companies in the Natural products market, according to SPIN data, may allow the company to enter markets and retailers before they open up to CBD. As regulations develop, HempFusion is able to use those established relationships and trust to make sure its products are among the first stocked.


The Nation’s Largest CBD Producers See Renewed Opportunity


Around the industry, hemp-CBD and cannabis producers are looking at Biden’s victory as a source of new optimism for cannabis companies. Tilray Inc (NASDAQ:TLRY) has been one of the cannabis industry’s top performers so far in 2021 since the cannabis giant merged with Aphria to become the largest company in the industry.


Canopy Growth Corp (NASDAQ:CGC) (TSX:WEED) also celebrated the results of the election. The Canadian company has been looking south to the US market for some time now, and the regulatory headwind that cannabis companies expect from the Biden administration will likely remove barriers to US expansion.


That regulatory headwind would likely also be a boon to Cronos Group Inc (NASDAQ:CRON) (TSX:CRON). Cronos announced in 2019 that the company would be expanding into the US market through the acquisition of four hemp-derived CBD subsidiaries from US-based Redwood Holding Group.


OrganiGram Holdings Inc (TSX:OGI) (NASDAQ:OGI) released its first quarter 2021 results on January 12, recording extremely positive results. For adult-use recreational products, the company saw gross and net revenue growth of 42 percent and 30 percent, respectively, reaching $22.5 million and $16.8 million.


The next four years could be big days for the United States hemp-CBD and cannabis markets, and companies are looking to take advantage of the growth opportunity. For HempFusion Wellness, this means using the company’s uncompromising approach to compliance to gain access to new markets early as they open up.


Click here to find out more about HempFusion Wellness.


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