The end of the year is always an exciting time for the world of cannabis and other markets around the world. But, since last year at this time, the cannabis industry has changed dramatically leaving a large amount of room for guessing as to what will happen. With the recent entrance of some big tobacco companies into the industry in a large way, it seems as though the end of the year could be just as exciting as the rest of this past year in marijuana stocks.
Some of the biggest winners in the cannabis market have been the companies that are able to produce consistently high margins and a high control over their product. The best business model that follows this is a completely vertical one which only a few companies have succeeded in doing.
GTEC Holdings, Inc. (GGTTF) is one of the large vertically integrated players in the marijuana industry. Based out of Canada, GTEC is currently working on cementing this business model. So far however, they have been able to exercise an extreme amount of control over the high quality cannabis that they are producing. GTEC has also managed to gain supply agreements in a large amount of Canada which should put them ahead as the industry grows in the coming months and toward the end of the year.
The imminent approval of a new law known as the 2018 Farm Bill should also help to shift the whole of the cannabis space. The new bill would allow the legalization of industrial hemp within the U.S. and will hopefully remove it from its status under the controlled substance act. This may seem slightly unrelated to the big cannabis stocks, but the passing of this bill would help to signal a complete paradigm shift in the industry.
Charlotte’s Web Holdings (NASDAQOTH:CWBHF) so far is up as much as 20%. The company is a large producer of CBD or cannabidiol that is derived from hemp. CBD has been researched only in the past few years as a potential medicinal remedy to many of the ailments we face on a daily basis. CBD is also being used in the treatment of some forms of epilepsy as well as treating the side effects that come with some forms of cancer.
With all of these new uses, and a potentially accepting market, the CBD industry looks like it will begin to take over in the coming years. Charlotte’s Web also has as many as 3,000 retailers that are currently selling their product. The President and CEO of the company stated recently that “during the third quarter we completed a successful initial public offering and private placement that generated significant capital for the Company that is being deployed to accelerate our growth in the hemp-derived CBD sector.” He further stated that “this capital is being used to primarily expand the Company’s cultivation and production capacities to meet the increasing demand for our industry leading products.”
These two companies are only a few examples of how quickly cannabis and the market on CBD is changing. With new legislation on the way, the governmental blocks to the industry are the only aspect that needs to change in order for the market to flourish.
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