On April 20th, Carl’s Jr becomes the first major fast-food chain to sell a cannabis-infused burger. Titled “CheeseBurger Delight”, the burger will come with a “Santa Fe Sauce” infused with cannabidiol (CBD), becoming the latest mainstream offering for the non-psychoactive cannabinoid’s market that some analysts are projecting could be worth $100 billion. The rise in demand is driving a wave of companies working to cultivate and develop CBD products, including MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF), Canopy Growth Corp. (NYSE:CGC) (TSX:WEED), Charlotte’s Web Holdings (OTC:CWBHF) (CSE:CWEB), Green Thumb Industries (OTC:GTBIF) (CSE:GTII), and Isodiol International, Inc. (OTC:ISOLF) (CSE:ISOL).
The non-psychoactive cannabis ingredient is quickly becoming a consumer darling, and is being infused into everything from burgers, to beauty products, to even vending machines. To meet demand, the cannabis sector will require several large scale supply projects, like that of the newly announced 3,000 acre CBD-rich hemp project from a partnership involving MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF) in Nevada.
The partnership project pairs with MYM’s other recent CBD-involved projects in Latin America, the first in Colombia, and the other in Mexico.
Back in late March, MYM increased its stake in Colombia Organica to 80%, on a project that comes with 3 licenses, which involve the production of cannabis derivatives, and cultivation of both psychoactive (THC) and non-psychoactive (CBD) cannabis.
In Mexico, with future legislation on deck to regulate the cannabis industry, MYM got an early start by announcing the incorporation of MYM Nutraceuticals Mexico S.A. de C.V. By setting up the company ahead of time, MYM plans to become a first-mover in Mexico’s cannabis industry , by focusing on the importation and distribution of hemp-derived CBD products.
Between all three projects, MYM is delivering on its new 2019 strategy with a heavier focus on CBD products than before, complimenting its already established plans to build some of the world’s largest cannabis cultivation green houses in Quebec and Australia. By creating strategic geographic partnerships around the world, MYM is in a prime position to take advantage of cultivating in low cost regions while distributing in high revenue regions thereby maximizing profits.
“Key additions to senior management offer an opportunity to focus the Company’s efforts on new projects around the globe,” says CEO of MYM Nutraceuticals, Howard Steinberg. “Our updated plan includes a targeted focus on low-cost cannabis and hemp production sites across the globe while distributing into countries with high revenue potential thereby maximizing profits.”
CBD SHIFTING THE LANDSCAPE
Since the signing of the 2018 US Farm Bill, cultivating CBD-rich hemp became effectively legal at the federal level. Now the country is seeing new products available in retail locations on the horizon, and a need for additional supplies to begin development.
Along with partners Aqueous Sciences of Nevada, MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF) launched a new 3,000-acre operation for the cultivation of CBD-rich hemp. Based out of Nevada on lands belonging to the Navajo Nation near the four corners area of Arizona, Colorado, New Mexico, and Utah, the project will be operated by a newly incorporated company for the purpose of cultivating, extracting, and distributing hemp.
Together, the joint venture will consist of each party working on an exclusive basis, with each owning 50% of a newly formed company. The plan is to fulfill activities that include extraction, manufacturing and distribution of hemp-based products in compliance with Navajo Nation, USDA, FDA and FTC regulations and requirements.
Going forward, the partnership breakdown has Aqueous providing all labour, site management, and other resources as necessary to operate the business, while MYM provides expertise and support in growing procedure, import/export facilitation, access to its research and development team, and distribution.
According to an early April company announcement, MYM has further plans to expand on this CBD-based strategy. Management shared that it is currently in the midst of negotiating a number of agreements for cannabis and hemp production and distribution in North America, South America and the South Pacific.
FURTHER INTERNATIONAL CBD DEVELOPMENTS
Canopy Growth Corp. (NYSE:CGC) (TSX:WEED)
Ahead of the official legalization of cannabis-infused edibles occurs in Canada, cannabis giant Canopy Growth went ahead and started putting the pieces in place for new products a year in advance. Easily the most impactful was a deal with Constellation Brands (makers of Corona) to launch jointly made non-alcoholic cannabis-infused beverages. Canopy has also signed deals with chocolatiers Hummingbird to make new products, as well as a deal with celebrity Martha Stewart to launch a line of CBD products, starting with a line for pets.
Charlotte’s Web Holdings (OTC:CWBHF) (CSE:CWEB)
Becoming synonymous with CBD, Charlotte’s Web recently announced its Q4 sales grew 71.4% to $21.5 million, with full year revenue growing 74% to $69.5 million. CWEB is gaining momentum, even with a resounding endorsement for the efficacy of its Extra Strength Hemp Extract Oil running in New York Mag, which followed another positive write-up in the New York Times, which dubbed the company the “Uber of CBD”. The pure-play CBD company is allegedly named after a little girl named Charlotte who was suffering constant grand mal seizures, which were made to disappear after trying CBD oil.
Green Thumb Industries (OTC:GTBIF) (CSE:GTII)
Recently acquired LA-based Green Thumb Industries subsidiary Beboe is officially launching a line of skincare products infused with CBD. Beboe had already been selling CBD for use in vape pens, however the new offerings include a five-pack of sheet masks and 1 oz. bottle of face serum, which will be sold at $78 and $148 respectively. Beboe’s products are sold online, and also recently in the newly opened luxury cannabis dispensary store owned by Barneys New York, called The High End.
Isodiol International, Inc. (OTC:ISOLF) (CSE:ISOL)
Making access to CBD even easier, CBD specialists Isodiol International commenced its CBD vending machine program. The program is being initially launched with its Iso-Sport products in 20 Powerhouse Gym locations across the United States. The company also recently launched the selling of its products into the largest health and wellness retailer in Europe, Holland & Barrett International. The distribution agreement begins with an initial order of ten SKUs of hemp-derived CBD products, including RapidCBD and Iso-Sport brand catalogues for more than $1 million. Approximately 45,000 units are supposed to now be available in up to 800 Holland Barrett stores, and online.
For a more in-depth look into MYM Nutraceuticals you can view the in-depth report at USA News Group: https://usanewsgroup.com/2019/04/10/the-top-unicorn-sectors-for-stock-traders-in-2019/
USA News Group
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