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		<title>U.S. FDA reported weighing CBD regulation in food, supplements</title>

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		https://farmtario.com/daily/u-s-fda-reported-weighing-cbd-regulation-in-food-supplements/		 </link>
		<pubDate>Tue, 27 Dec 2022 23:07:24 +0000</pubDate>
				<dc:creator><![CDATA[Reuters]]></dc:creator>
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				<description><![CDATA[<p>Reuters &#8212; The U.S. Food and Drug Administration (FDA) is planning to make recommendations on how to regulate the use of popular cannabis compound CBD in food and supplements, the Wall Street Journal reported on Tuesday, citing agency officials. After weighing the evidence on the compound&#8217;s safety, the FDA will decide within months how to [&#8230;] <a class="read-more" href="https://farmtario.com/daily/u-s-fda-reported-weighing-cbd-regulation-in-food-supplements/">Read more</a></p>
<p>The post <a href="https://farmtario.com/daily/u-s-fda-reported-weighing-cbd-regulation-in-food-supplements/">U.S. FDA reported weighing CBD regulation in food, supplements</a> appeared first on <a href="https://farmtario.com">Farmtario</a>.</p>
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								<content:encoded><![CDATA[<p><em>Reuters</em> &#8212; The U.S. Food and Drug Administration (FDA) is planning to make recommendations on how to regulate the use of popular cannabis compound CBD in food and supplements, the <em>Wall Street Journal</em> reported on Tuesday, citing agency officials.</p>
<p>After weighing the evidence on the compound&#8217;s safety, the FDA will decide within months how to regulate legal cannabis and whether that will require new agency rules or new legislation from Congress, <a href="https://www.wsj.com/articles/fda-concerned-about-safety-explores-regulating-cbd-in-foods-supplements-11672146030">according to the report</a>.</p>
<p>Shares of U.S.-listed cannabis companies were down between five and nine per cent in afternoon trade, following the report.</p>
<p>Cannabidiol, or CBD, is a non-psychoactive compound derived from cannabis.</p>
<p>Cannabis products, excluding Jazz Pharmaceuticals&#8217; Epidiolex, are illegal at the federal level in the United States, although some states allow their use.</p>
<p>The agency wants to know if CBD can be safely eaten every day for a long period or during pregnancy amid concerns about future fertility, Patrick Cournoyer, who heads the FDA office developing the agency&#8217;s cannabis strategy, told the <em>WSJ</em>.</p>
<p>When asked for comment, the FDA referred Reuters to a statement from last year that said the agency was taking steps to improve regulatory pathways for the lawful marketing of appropriate cannabis and cannabis-derived products.</p>
<p><em>&#8212; Reporting for Reuters by Raghav Mahobe in Bangalore</em>.</p>
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		<title>Canopy eyes U.S. expansion via weed gummies maker</title>

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		<pubDate>Thu, 14 Oct 2021 21:34:59 +0000</pubDate>
				<dc:creator><![CDATA[Rithika Krishna]]></dc:creator>
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				<description><![CDATA[<p>Reuters &#8212; Canada&#8217;s Canopy Growth Corp. said on Thursday it would buy weed gummies maker Wana Brands for US$297.5 million, as the world&#8217;s biggest pot producer looks to expand in the U.S. cannabis market. Demand for pot edibles such as gummies has risen during the pandemic, as people stuck at home turn to cannabis-related products [&#8230;] <a class="read-more" href="https://farmtario.com/daily/canopy-eyes-u-s-expansion-via-weed-gummies-maker/">Read more</a></p>
<p>The post <a href="https://farmtario.com/daily/canopy-eyes-u-s-expansion-via-weed-gummies-maker/">Canopy eyes U.S. expansion via weed gummies maker</a> appeared first on <a href="https://farmtario.com">Farmtario</a>.</p>
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								<content:encoded><![CDATA[<p><em>Reuters</em> &#8212; Canada&#8217;s Canopy Growth Corp. said on Thursday it would buy weed gummies maker Wana Brands for US$297.5 million, as the world&#8217;s biggest pot producer looks to expand in the U.S. cannabis market.</p>
<p>Demand for pot edibles such as gummies has risen during the pandemic, as people stuck at home turn to cannabis-related products for relaxation and entertainment.</p>
<p>&#8220;The categories that resonate the most with consumers, particularly in THC space are gummies and beverages, we continue to look at other ways of consumption but these two seem to be the ones that are taking off,&#8221; Canopy CEO David Klein told Reuters.</p>
<p>Tetrahydrocannabinol or THC is the ingredient in marijuana that gets users &#8216;high.&#8217;</p>
<p>Wana sells gummies in the U.S. state of Colorado and licenses its intellectual property to partners who manufacture, distribute and sell Wana-branded gummies in states including California, Arizona, Illinois, Michigan and Florida.</p>
<p>Canadian pot producers are looking at cross-border expansion, as the industry has garnered investor interest with some U.S. states legalizing pot and on increased expectations for federal marijuana reform.</p>
<p>&#8220;We remain more bullish than others in the regulatory front and feel that our ecosystem in the U.S. is strong enough to grow even without federal permissibility happening in the short term,&#8221; Klein added.</p>
<p>U.S.-listed shares of Smiths Falls, Ont.-based Canopy, down 46 per cent so far this year, rose nearly two per cent to US$13.55 in premarket trade.</p>
<p>The acquisition will provide Canopy access to Wana&#8217;s vertically integrated facility in Colorado and its licensing division, the company said, adding that it would continue operating independently in the state until the deal closes.</p>
<p>The transaction is structured as three separate option agreements allowing Canopy Growth a call option to acquire 100 per cent of the membership interests in each Wana entity, the company said in its statement.</p>
<p><em>&#8212; Reporting for Reuters by Rithika Krishna in Bangalore</em>.</p>
<p>The post <a href="https://farmtario.com/daily/canopy-eyes-u-s-expansion-via-weed-gummies-maker/">Canopy eyes U.S. expansion via weed gummies maker</a> appeared first on <a href="https://farmtario.com">Farmtario</a>.</p>
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		<title>Cannabis firms catch whiff of opportunity in Brazil</title>

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		https://farmtario.com/daily/cannabis-firms-catch-whiff-of-opportunity-in-brazil/		 </link>
		<pubDate>Sat, 21 Aug 2021 00:25:05 +0000</pubDate>
				<dc:creator><![CDATA[Ana Mano]]></dc:creator>
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				<description><![CDATA[<p>Sao Paulo &#124; Reuters &#8212; International cannabis companies are showing interest in Brazil, both its large consumer market for medicinal products and a proposal that could legalize planting of the crop. Major producers such as Colombia&#8217;s Clever Leaves and Canada&#8217;s Canopy Growth are developing and selling medicinal cannabis products to a Brazilian consumer segment estimated [&#8230;] <a class="read-more" href="https://farmtario.com/daily/cannabis-firms-catch-whiff-of-opportunity-in-brazil/">Read more</a></p>
<p>The post <a href="https://farmtario.com/daily/cannabis-firms-catch-whiff-of-opportunity-in-brazil/">Cannabis firms catch whiff of opportunity in Brazil</a> appeared first on <a href="https://farmtario.com">Farmtario</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p><em>Sao Paulo | Reuters &#8212;</em> International cannabis companies are showing interest in Brazil, both its large consumer market for medicinal products and a proposal that could legalize planting of the crop.</p>
<p>Major producers such as Colombia&#8217;s Clever Leaves and Canada&#8217;s Canopy Growth are developing and selling medicinal cannabis products to a Brazilian consumer segment estimated at 10 million to 13 million people. This results from a 2019 regulatory change allowing the import, sale and manufacturing of such products.</p>
<p>But permission for cultivation of hemp and cannabis in Brazil would be a bigger prize. If granted, the industry could blossom in four to five years, based on the experience of other countries such as Colombia.</p>
<p>&#8220;By 2025, I would like to be planting hemp in the interior of Pernambuco,&#8221; said Jose Bacellar, founder of Canada&#8217;s VerdeMed, referring to a northeastern state known for illegal marijuana growing.</p>
<p>A proposal that would legalize cultivation was approved in June by a congressional committee. Lawmakers are weighing if it could be fast-tracked to the Senate for approval. If passed there, President Jair Bolsonaro would have to sign it into law.</p>
<p>While Bolsonaro&#8217;s far-right positions may seem an unlikely match for the bill, the proposal has support from some members of the powerful farm sector, a key constituency that helped him win the 2018 election.</p>
<h4>&#8216;Silicon Valley of cannabis&#8217;</h4>
<p>In the quiet town of Viçosa in southeastern Brazil &#8212; which some call the Silicon Valley of cannabis &#8212; researchers are developing a hemp variety better suited to the tropics.</p>
<p>If the law is changed and research is successful, Brazil could become a top grower of cannabis and hemp, experts said.</p>
<p>Sergio Rocha, director of ag-tech startup Adwa which is developing the hemp strain for Brazil, said about three million square km of land would potentially be suitable for cultivating the new variety.</p>
<p>Brazil could overtake China, the world&#8217;s largest hemp producer, which has about 670 square km planted.</p>
<p>&#8220;Using a part of Brazil&#8217;s agricultural land would be enough to give the country the title of world&#8217;s largest producer and exporter of hemp fibers, seeds and flowers for medicinal and industrial purposes,&#8221; said Dennys Zsolt, an agronomist specializing in the plant.</p>
<p>Brazil bans growing of Cannabis sativa L, the plant that produces hemp and marijuana. Hemp, which has less than 0.3 per cent of the psychoactive compound THC, contains CBD or cannabidiol. This non-intoxicating ingredient has been touted as beneficial for many health conditions including childhood epilepsy.</p>
<p>Growing the plants in Brazil would lay the foundation for a vertically integrated industry. A stable source of the raw material would support manufacturing of medicinal cannabis products, growth of a retail market and exports. Recreational cannabis would remain illegal.</p>
<p>Gabriela Cezar, chief executive of New York-based Panarea Partners investment banking firm, sees Brazil playing a leading role in hemp in Latin America, a region she calls the &#8220;epicentre of world hemp production.&#8221;</p>
<p>Panarea plans to form a Brazilian cannabis company focused on pharmaceutical products for pets while seeking to broker more cannabis deals in Brazil.</p>
<h4>Tropical advantage</h4>
<p>Among Brazil&#8217;s advantages are lower growing costs because its warm climate allows plants to grow outdoors compared to greenhouses in some countries. Stable hours of sunlight due to Brazil&#8217;s proximity to the equator are another plus.</p>
<p>Canopy Growth is &#8220;actively monitoring the advancement of hemp regulations in Brazil,&#8221; David Culver, the company&#8217;s vice president of global government relations, said.</p>
<p>But nothing is certain without the change to Brazil&#8217;s law, though some signs suggest the prospects are favorable. When Rocha spoke to a congressional committee about hemp in 2019, he was surprised that conservative lawmakers were not hostile.</p>
<p>&#8220;After I finished presenting the maps and hemp&#8217;s potential, I was applauded,&#8221; he said.</p>
<p>Although the farm caucus has not taken a formal position, members of the group said a majority in both houses of Congress back the proposal. The farm caucus controls slightly fewer than half the seats in the two chambers, and the law requires approval by a simple majority.</p>
<p>Centre-right lawmaker Fausto Pinato, a member of the farm caucus, said he supports the bill.</p>
<p>&#8220;If you are authorizing the sale, why not cultivation?&#8221; he said.</p>
<p><em>&#8212; Reporting for Reuters by Ana Mano in Sao Paulo, Jimin Kang in Seul and Maximilian Heath in Buenos Aires</em>.</p>
<p>The post <a href="https://farmtario.com/daily/cannabis-firms-catch-whiff-of-opportunity-in-brazil/">Cannabis firms catch whiff of opportunity in Brazil</a> appeared first on <a href="https://farmtario.com">Farmtario</a>.</p>
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		<title>Hemp poised for year of gains</title>

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		https://farmtario.com/daily/hemp-poised-for-year-of-gains/		 </link>
		<pubDate>Tue, 04 May 2021 02:26:39 +0000</pubDate>
				<dc:creator><![CDATA[Glen Hallick]]></dc:creator>
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				<description><![CDATA[<p>MarketsFarm &#8212; The hemp industry in Canada is set for a good year in 2021, according to Canadian Hemp Trade Association (CHTA) CEO Ted Haney. “It looks like we are looking at another 15 to 20 per cent increase in seeded acres nationally, which should take us over the 100,000-acre level for sure,” he said. [&#8230;] <a class="read-more" href="https://farmtario.com/daily/hemp-poised-for-year-of-gains/">Read more</a></p>
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								<content:encoded><![CDATA[<p><em>MarketsFarm &#8212;</em> The hemp industry in Canada is set for a good year in 2021, according to Canadian Hemp Trade Association (CHTA) CEO Ted Haney.</p>
<p>“It looks like we are looking at another 15 to 20 per cent increase in seeded acres nationally, which should take us over the 100,000-acre level for sure,” he said.</p>
<p>The CHTA gathers data from seed companies as to how much hemp seed has been sold, then estimates how many acres would be planted, he said.</p>
<p>One catch, however, has been a lack of information from Health Canada, which produces A Summary of Notices of Cultivation usually in November/December of every year.</p>
<p>Haney said the CHTA is still waiting for that report, almost six months later &#8212; and a big part of the reason, he noted, has been Health Canada’s ongoing struggle to collect the data from licensed producers.</p>
<p>As for prices, Haney said conventional and organic prices have increased about 20 per cent.</p>
<p>“Hemp is remaining competitive with the entire oilseed market, which has been astronomical this year,” he said.</p>
<p>“The revenue streams in the industry continue to diversify. By that I mean the vast majority of revenue derived by our industry, up until 2018, was farmers growing hemp for the seed harvest and selling that as pedigreed seed and for food processing. Also, selling it for the European birdseed market.&#8221;</p>
<p>More recently, producers have garnered revenue from the sale of hemp stalks or straw. This, he said, will further improve with a third hemp processing facility to open in Canada.</p>
<p>And the export market is looking bright, Haney noted.</p>
<p>“Our exports went up 20 per cent in 2020 and we expect to see a similar increase in 2021,” he said.</p>
<p>On the downside, the harvesting of hemp flowers and leaves struggled in 2020 in Canada as well as globally. In Canada, that aspect saw a tough year because of “overreaching regulations by Health Canada,” and not due to consumer demand, Haney said.</p>
<p>“The black market continues to serve consumers’ needs in the high-[cannabidiol, or CBD] extract concentrate market,” he said.</p>
<p>The ultimate goals of removing risk and protecting Canadians – and removing organized crime from the cannabis industry – are not really happening when it comes to the CBD market and particularly as it relates to hemp, he said.</p>
<p>One hope on the horizon will be using hemp for livestock feed, he predicted. The industry still needs to get approval from the Canadian Food Inspection Agency (CFIA) for the registration of hemp seed and its seven derivatives to be used as livestock feed.</p>
<p><strong>&#8212; Glen Hallick</strong> <em>reports for <a href="https://marketsfarm.com">MarketsFarm</a> from Winnipeg</em>.</p>
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		<title>BAT looks beyond tobacco to Canadian marijuana</title>

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		<pubDate>Thu, 11 Mar 2021 21:52:58 +0000</pubDate>
				<dc:creator><![CDATA[Shariq Khan, Siddharth Cavale]]></dc:creator>
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				<description><![CDATA[<p>Reuters &#8212; British American Tobacco (BAT) said Thursday it will buy a nearly 20 per cent stake in New Brunswick-based cannabis producer Organigram for about 126 million pounds (C$221.3 million) as it seeks to expand beyond its main tobacco business. Organigram, headquartered at Moncton, grows cannabis and makes cannabis-derived products in the Canadian market, where [&#8230;] <a class="read-more" href="https://farmtario.com/daily/bat-looks-beyond-tobacco-to-canadian-marijuana/">Read more</a></p>
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]]></description>
								<content:encoded><![CDATA[<p><em>Reuters</em> &#8212; British American Tobacco (BAT) said Thursday it will buy a nearly 20 per cent stake in New Brunswick-based cannabis producer Organigram for about 126 million pounds (C$221.3 million) as it seeks to expand beyond its main tobacco business.</p>
<p>Organigram, headquartered at Moncton, grows cannabis and makes cannabis-derived products in the Canadian market, where marijuana was legalized in 2018.</p>
<p>Big tobacco and liquor companies in North America have already made large investments in the nascent industry, with cannabis seen as a less harmful alternative to cigarettes.</p>
<p>With top Democratic lawmakers in the United States also promising to decriminalize marijuana use, analysts and experts predict record investment in the industry this year.</p>
<p>The deal will give BAT access to R+D technologies, product innovation and cannabis expertise, it said in a statement, with an initial focus on natural remedy cannabidiol (CBD).</p>
<p>&#8220;This move takes us into a new space and we are not ruling out any product innovation,&#8221; David O&#8217;Reilly, director of scientific research at BAT, told Reuters.</p>
<p>Organigram CEO Greg Engel said the companies will jointly develop new products for cannabis delivery, both oral and vapour based, and will be able to commercialize any products developed under their own brands.</p>
<p>Both BAT and Organigram will contribute scientists, researchers and product developers, BAT said. It will become Organigram&#8217;s largest shareholder and can appoint two directors to its board.</p>
<h4>Natural fit</h4>
<p>&#8220;We view this move as a strong positive. Cannabis overall provides a natural fit for tobacco and a big incremental growth opportunity,&#8221; Jefferies analyst Owen Bennett wrote in an note.</p>
<p>BAT has expertise in operating in a regulated environment and experience of growing a crop similar to hemp CBD, Bennett said, adding that the timing of the deal before Organigram&#8217;s possible entry into the United States is also a big positive.</p>
<p>Bennett estimates U.S. CBD market sales of over US$16 billion by 2025.</p>
<p>Organigram&#8217;s U.S.-listed shares surged around 30 per cent to US$3.75 in morning trading on the Nasdaq. BAT&#8217;s London-listed shares were up slightly.</p>
<p>BAT&#8217;s investment comes two days after the Lucky Strike and Pall Mall cigarette maker laid out environmental, social and governance (ESG) targets, including switching more people to less harmful products.</p>
<p>The group aims to achieve at least five billion pounds in revenue from sales of e-cigarettes, tobacco heating and oral nicotine products in 2025.</p>
<p>Elsewhere in the industry, Marlboro maker Altria has invested in pot producer Cronos Group, while Corona beer-maker Constellation Brands has a stake in Canopy Growth, the largest cannabis company globally by market value.</p>
<p><em>&#8212; Reporting for Reuters by Tanishaa Nadkar, Aby Jose Koilparambil, Shariq Khan and Siddharth Cavale in Bangalore</em>.</p>
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		<title>Cannabis-infused drinks fizzle on production, distribution challenges</title>

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		<pubDate>Thu, 29 Oct 2020 17:03:31 +0000</pubDate>
				<dc:creator><![CDATA[Shariq Khan]]></dc:creator>
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				<description><![CDATA[<p>Reuters &#8212; Investors pinning hopes on cannabis-infused drinks to propel growth of the legal marijuana industry may have to wait a bit longer, as companies struggle to produce and distribute the highly-sought beverages in a profitable way. Nearly 11 months after regulators allowed their sales, very few brands have been able to reach shelves. Canada [&#8230;] <a class="read-more" href="https://farmtario.com/daily/cannabis-infused-drinks-fizzle-on-production-distribution-challenges/">Read more</a></p>
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]]></description>
								<content:encoded><![CDATA[<p><em>Reuters &#8212;</em> Investors pinning hopes on cannabis-infused drinks to propel growth of the legal marijuana industry may have to wait a bit longer, as companies struggle to produce and distribute the highly-sought beverages in a profitable way.</p>
<p>Nearly 11 months after regulators allowed their sales, very few brands have been able to reach shelves.</p>
<p>Canada at the start of this year allowed sales of so-called &#8216;Cannabis 2.0&#8217; products, which include edibles, vapes and drinks. The products have been a big hit with customers during coronavirus-induced lockdowns, but producers have struggled to maintain timelines for the launch of the THC beverages.</p>
<p>Analysts and industry insiders had eagerly anticipated these beverages, hoping they would attract large swathes of the public to pot from booze, and bring back investor dollars after the industry fell out of favor due to a lack of profitability.</p>
<p>Common production challenges include short shelf-life, maintaining a consistent taste, inconsistent potency, and the length of time it takes to achieve the desired &#8220;high,&#8221; said Karan Wadhera, managing partner at cannabis venture capital firm Casa Verde Capital.</p>
<p>&#8220;There are also high production costs, expensive distribution, and a lack of dispensary infrastructure to intake and display the products,&#8221; he added, referring to cannabis shops without loading docks or refrigerators.</p>
<p>The COVID-19 pandemic has made funds even more scarce for a sector that has disappointed the market with missed financial targets and many producers forced to withdraw dollars from developmental products that promise future profits to focus on maintaining the core business.</p>
<p>&#8220;This is certainly true of Canadian LPs (licensed producers) who have had massive layoffs and reductions of production,&#8221; said Medical Marijuana Inc. CEO Stuart Titus.</p>
<p>&#8220;The drop-off in investor capital has also had a negative effect on product development, so the supply of effective cannabis-based beverages remains relatively small,&#8221; he added.</p>
<h4>Getting it right</h4>
<p>Technical issues involving basic chemistry have also slowed bringing some of these THC-infused beverages to market.</p>
<p>Most cannabinoids are insoluble in water, explained Joshua Swider, co-founder and CEO of Infinite Chemical Analysis Labs (InfiniteCAL).</p>
<p>To overcome that issue, companies use emulsions. But even if they can make an emulsion that gets the high-inducing cannabinoids to properly mix with the beverage, maintaining that mix is itself a challenge.</p>
<p>InfiniteCAL said its tests show some beverages can degrade in as little as a few days, leaving the THC that induces the desired high stuck to the can liner lowering the drink&#8217;s potency.</p>
<p>&#8220;Everyone has really great ideas in this market, but people are coming to find that actually executing the idea is much more difficult,&#8221; said Narmin Jarrous, vice president at Exclusive Brands, a Michigan-based cannabis retailer.</p>
<p>Despite facing its own challenges and delays putting beverages on the shelves, Canopy Growth Corp., the largest pot producer by market value, has established a strong foothold.</p>
<p>The company had planned to launch its drinks in January, when sales were first authorized in Canada, but scaling up production and other issues delayed their introduction.</p>
<p>With backing from Corona beer-maker Constellation Brands, Canopy&#8217;s products did hit the market in March, well before major rivals got there. It now controls more than 70 per cent of the cannabis-infused drinks market, a company spokeswoman said.</p>
<p>The company has sold close to two million cans of its THC-infused beverages in Canada since March. The top three cannabis beverages in Canada are all Canopy products, the spokeswoman added.</p>
<p>CEO David Klein, a Constellation veteran who took on the top role at Canopy in December, told investors in August the company expected to double its drinks output for that month after having already doubled it the previous month.</p>
<p>The company announced plans this month to begin selling the products in the U.S. next summer, initially launching THC-beverages in the fast-growing California and Illinois markets through a partnership with New York-based Acreage Holdings.</p>
<p>&#8220;Given the choice of a traditional alcoholic beverage and a THC-infused beverage, I believe that THC beverages would rival alcoholic beverages for their popularity with consumers,&#8221; Titus said.</p>
<p><strong>&#8212; Shariq Khan</strong> <em>reports on North America&#8217;s resource and energy sectors for Reuters from Bangalore</em>.</p>
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		<title>Canopy Growth may face challenges offloading assets, CEO says</title>

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		https://farmtario.com/daily/canopy-growth-may-face-challenges-offloading-assets-ceo-says/		 </link>
		<pubDate>Sat, 15 Feb 2020 23:33:14 +0000</pubDate>
				<dc:creator><![CDATA[Nichola Saminather, Shariq Khan]]></dc:creator>
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				<description><![CDATA[<p>Reuters &#8212; Canada&#8217;s biggest cannabis producer, Canopy Growth Corp., could face challenges offloading assets as it seeks to winnow its facilities down to focus on its most lucrative markets and products, its CEO told Reuters. The company, which reported a smaller-than-expected third-quarter loss on Friday, is conducting a &#8220;thorough strategic review&#8221; of its production facilities [&#8230;] <a class="read-more" href="https://farmtario.com/daily/canopy-growth-may-face-challenges-offloading-assets-ceo-says/">Read more</a></p>
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]]></description>
								<content:encoded><![CDATA[<p><em>Reuters &#8212;</em> Canada&#8217;s biggest cannabis producer, Canopy Growth Corp., could face challenges offloading assets as it seeks to winnow its facilities down to focus on its most lucrative markets and products, its CEO told Reuters.</p>
<p>The company, which reported a smaller-than-expected third-quarter loss on Friday, is conducting a &#8220;thorough strategic review&#8221; of its production facilities as it seeks to cut costs and become profitable, executives said.</p>
<p>&#8220;There&#8217;s not a lot of market demand for cannabis production facilities,&#8221; David Klein, former finance chief of the company&#8217;s biggest shareholder Constellation Brands, said in an interview. &#8220;There&#8217;s a lot of capacity in Canada and no logical buyers.&#8221;</p>
<p>More than a year after Canada legalized recreational marijuana, producers are scrambling to turn a profit as lower-than-expected demand and exuberant expansion hit sales and lift costs, while a cash crunch threatens many companies&#8217; survival.</p>
<p>Canopy first needs to ensure it generates as much cash as possible, said Klein, who became Canopy&#8217;s CEO last month.</p>
<p>&#8220;Then, what we do as a secondary step with the assets&#8230; we&#8217;ll figure that out over time,&#8221; he added.</p>
<p>Canopy shares were up 16.2 per cent at $30.10 in afternoon trade in Toronto, paring its one-year loss to 53%.</p>
<p>Canopy had cash and equivalents of $1.56 billion as of December, down from $2.48 billion at the end of March 2019.</p>
<p>&#8220;We will be pretty aggressive in managing capital expenditure going forward,&#8221; Klein said. &#8220;If we just take those measures, we have cash for the foreseeable future.&#8221;</p>
<p>Canopy also plans to expand in the U.S. cannabidiol (CBD) market, he said.</p>
<p>CBD is a non-psychoactive compound in cannabis, and is also derived from hemp, the production and distribution of which the United States legalized in late 2018.</p>
<p>&#8220;We&#8217;re in the process of building out a sales infrastructure in the U.S. so that we can call on the large retailers and get shelf placements,&#8221; Klein said.</p>
<p>The company could move some Canadian resources to the U.S. to enable the expansion, he said.</p>
<p>Canopy executives said they aim to lift gross margin to 40 per cent in the short term, from 34 per cent in the third quarter, and will reduce share-based compensation by as much as 40 per cent from the third quarter&#8217;s $56.8 million.</p>
<p>&#8220;They&#8217;re nowhere close to posting a profit&#8230; and their free cash flow is quite negative, but it&#8217;s going in the right direction,&#8221; said Jason Zandberg, an analyst at PI Financial, who expects Canopy to follow rivals Aurora Cannabis, Tilray and Hexo in <a href="https://www.agcanada.com/daily/more-pain-in-store-for-canadian-marijuana-companies">cutting jobs</a>.</p>
<p><em>&#8212; Reporting for Reuters by Shariq Khan in Bangalore and Nichola Saminather in Toronto</em>.</p>
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				<post-id xmlns="com-wordpress:feed-additions:1">45077</post-id>	</item>
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		<title>For many U.S. farmers who planted hemp, CBD boom leaves bitter taste</title>

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		https://farmtario.com/daily/for-many-u-s-farmers-who-planted-hemp-cbd-boom-leaves-bitter-taste/		 </link>
		<pubDate>Tue, 05 Nov 2019 10:09:35 +0000</pubDate>
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				<description><![CDATA[<p>Reuters – Dan Maclure planted eight acres of hemp on his Vermont farm for the first time this year, aiming to cash in on the exploding demand for CBD, a derivative of the plant reputed to ease anxiety and other ills without the high of its close cousin, marijuana. He persevered when some of his hemp plants grew white [&#8230;] <a class="read-more" href="https://farmtario.com/daily/for-many-u-s-farmers-who-planted-hemp-cbd-boom-leaves-bitter-taste/">Read more</a></p>
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]]></description>
								<content:encoded><![CDATA[<p><em>Reuters</em> – Dan Maclure planted eight acres of hemp on his Vermont farm for the first time this year, aiming to cash in on the exploding demand for CBD, a derivative of the plant reputed to ease anxiety and other ills without the high of its close cousin, marijuana.</p>
<p>He persevered when some of his hemp plants grew white with mildew and others failed lab tests and had to be destroyed. With his harvest now complete, Maclure has one more challenge to overcome: selling his surviving crop and recouping an estimated $140,000 investment.</p>
<p>&#8220;It&#8217;s heart-wrenching thinking about all the work and money you put into it,&#8221; said Maclure, who farms in Barton, Vermont, about 35 miles south of the U.S.-Canadian border. &#8220;I&#8217;m not sure I&#8217;m going to be venturing out in this again.&#8221;</p>
<p>Maclure is one of thousands of U.S. farmers who poured into the crop after the passage of the 2018 Farm Bill, which legalized the cultivation of hemp, a form of cannabis with low concentrations of THC, the main psychoactive agent in marijuana.</p>
<p>Many of them are now trying to survive a glut that has flooded the market, market experts say, driving down prices and in some cases leaving farmers with few buyers.</p>
<p>About 65 percent of U.S. hemp farmers lack a buyer for their crop this season, leaving them few alternatives, according to a July survey by Whitney Economics. Hemp has less infrastructure than other crops, so farmers cannot rely on selling their crop to a local grain elevator.</p>
<p>&#8220;People entered in on speculation,&#8221; said Chase Hubbard, hemp commodities analyst at The Jacobsen, a price reporting agency. &#8220;The results could be tragic for some small farmers.&#8221;</p>
<p>The 2018 Farm Bill coincided with a boom in the market for food, drink and cosmetic products laced with CBD, an industry that Wall Street firm Cowen &amp; Co has estimated to grow to $16 billion by 2025.</p>
<p>Enticed by projections that hemp would bring $750 in profits per acre &#8211; well above the $150 or less from a typical acre of soybeans &#8211; farmers placed their bets on a crop that had been illegal for most of their lifetimes.</p>
<p>Last April, as farmers planted, a pound of hemp biomass sold for about $40. Now, as farmers harvest and take their crops to market, the same amount sells for $18-$25, according to PanXchange, a commodities platform.</p>
<p>Sam Baker, a fifth-generation tobacco farmer from North Carolina, grows tobacco seed, hemp and hemp seedlings. After selling millions of seedlings to growers this year, about 400 people have called him, asking him how to sell their crop.</p>
<p>&#8220;Crews planted 75, 80, 90 acres and didn&#8217;t know what to do with it in the end,&#8221; he said.</p>
<p>Some farmers are discovering that the crop is more labor intensive and comes with more risks than many hemp-backers claimed. As a consequence, many are exposed to everything from mold to the danger that cultivated crops contain higher-than- allowed levels of the psychoactive chemical THC, which give users a high, and have to be destroyed.</p>
<p>Some of Maclure&#8217;s plants tested &#8220;hot&#8221; for THC this year, so his crew had to cut the offending plants and crush them outdoors.</p>
<p>&#8220;You&#8217;ve grown nothing but trash,&#8221; said Maclure.</p>
<p>As hemp becomes a commodity, small farms cannot keep up with larger operations that can sell their crops in bulk at lower prices, wholesale buyers say.</p>
<p>&#8220;Mom and pop are not going to be able to compete on this playing field,&#8221; said Michael Gordon, co-CEO of Kush.com, a major hemp wholesale marketplace. &#8220;The hemp industry is more like canola oil than craft brewing.&#8221;</p>
<p>Despite the difficulties, some farmers remain optimistic about the budding industry. Farmers with established supply chains and experience report that they are turning a profit this season.</p>
<p>New U.S. Department of Agriculture interim rules released this week will likely pave the way for hemp farmers to qualify for better insurance and financing, lessening their risks in the case of poor weather or if their buyer disappears, said Ken Anderson, founder of Wisconsin-based hemp processor Legacy Hemp.</p>
<p>Meanwhile, industry professionals predict that many first-time hemp farmers will leave after this disappointing first harvest.</p>
<p>&#8220;They&#8217;re going to get the heck out of Dodge,&#8221; said Gordon.</p>
<p><em>– Additional reporting by David Randall</em></p>
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				<post-id xmlns="com-wordpress:feed-additions:1">43148</post-id>	</item>
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		<title>Vape product concerns weigh on cannabis companies</title>

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		https://farmtario.com/daily/vape-product-concerns-weigh-on-cannabis-companies/		 </link>
		<pubDate>Mon, 30 Sep 2019 14:19:19 +0000</pubDate>
				<dc:creator><![CDATA[Nichola Saminather]]></dc:creator>
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				<description><![CDATA[<p>Toronto &#124; Reuters &#8212; A U.S. recommendation that consumers avoid vaping products containing the active ingredient in marijuana ahead of their legalization in Canada next month could be a blow to Canadian cannabis companies&#8217; hopes that the higher-margin products will help propel them to profitability. The U.S. Centers for Disease Control and Prevention (CDC) said [&#8230;] <a class="read-more" href="https://farmtario.com/daily/vape-product-concerns-weigh-on-cannabis-companies/">Read more</a></p>
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]]></description>
								<content:encoded><![CDATA[<p><em>Toronto | Reuters &#8212;</em> A U.S. recommendation that consumers avoid vaping products containing the active ingredient in marijuana ahead of their legalization in Canada next month could be a blow to Canadian cannabis companies&#8217; hopes that the higher-margin products will help propel them to profitability.</p>
<p>The U.S. Centers for Disease Control and Prevention (CDC) said on Friday that an investigation into 805 confirmed or probable cases of vaping-related respiratory illnesses suggested that products containing THC, the psychoactive element in cannabis, likely played a role.</p>
<p>The heightened health concerns come at a time when Canadian cannabis companies, whose share prices have tumbled over disappointing sales and supply and quality hiccups, are investing millions of dollars into marijuana derivatives, including vape products.</p>
<p>While keeping a wary eye on U.S. developments, they are betting that already strict Canadian regulations will ensure the safety of their products.</p>
<p>The Horizons Marijuana Life Sciences Index ETF has dropped 54 per cent since its Oct. 16 peak, the day before adult recreational use of cannabis flower and THC and CBD oils were legalized. CBD does not contain the compound that gets people high.</p>
<p>The vaping concerns have contributed to recent declines, and will continue to hurt shares, said Bruce Campbell, portfolio manager at Stonecastle Investment Management, which invests in cannabis stocks.</p>
<p>&#8220;It&#8217;s a case of &#8216;shoot first, ask questions later&#8217;,&#8221; he said. &#8220;(Investors) probably do some quick back-of-the-envelope math and say, &#8216;we&#8217;re not going to see the sales we expected, so we&#8217;re out&#8217;.&#8221;</p>
<p>Analysts estimate that in some established U.S. markets, vape sales are down as much as 30 per cent, with many marijuana consumers reverting to use of less profitable flower and oil products.</p>
<p>While a shift away from Canada&#8217;s illicit cannabis vape market into legal dried flower is positive from a public health standpoint, prolonged uncertainty could hurt legal vape sales.</p>
<p>&#8220;These illnesses&#8230; occurred using non-regulated products,&#8221; said Jason Zandberg, research analyst at investment dealer PI Financial.</p>
<p>Investigators have pointed to vaping products containing THC or vitamin E acetate, a thickening agent often mixed with THC oil in the illicit market, as possible causes of the rash of serious lung problems.</p>
<p>&#8220;In theory, it should promote the legal market,&#8221; Zandberg said. &#8220;But if you don&#8217;t have very aggressive education behind these products, a good portion of the population doesn&#8217;t see the difference.&#8221;</p>
<p>The regulations that take effect on Oct. 17 take into account the emerging health risks associated with cannabis vaping. They prohibit additives including vitamins and colouring agents, Health Canada, which regulates cannabis producers, said in an email.</p>
<p>The health agency added that it is monitoring the situation, and will take additional action if needed.</p>
<p>&#8220;The Canadian government should come out as soon as possible one way or other and either double down on vape products or remove them from the derivatives market. You have to give the industry clarity,&#8221; said Brett Hundley, a cannabis analyst at Seaport Global.</p>
<p>If the government suddenly removes vape products from the roster of expanded legal cannabis offerings, including edibles and extracts, &#8220;that&#8217;s going to reverberate back through the supply chain and it&#8217;s going to lead to a whole host of near-term issues&#8221; for these companies, Hundley said.</p>
<p>Cannabis companies are trusting that adhering to Health Canada&#8217;s rules will provide reassurance for investors and consumers.</p>
<p>A spokesman for Canopy Growth Corp., Canada&#8217;s biggest cannabis producer, in an email, pointed to the importance of the regulatory frameworks for cannabis vape products that Canada has in place.</p>
<p>Hexo Corp., another Canadian company with a variety of cannabis products, said it is focused on ensuring it is compliant with Health Canada&#8217;s regulations. Hexo is double testing its vape products, James McMillan, vice-president of business development, said in a phone interview.</p>
<p><em>&#8212; Reporting for Reuters by Nichola Saminather in Toronto</em>.</p>
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		<title>Cannabis edibles clear for legal launch before year-end</title>

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		https://farmtario.com/daily/cannabis-edibles-clear-for-legal-launch-before-year-end/		 </link>
		<pubDate>Fri, 14 Jun 2019 17:32:25 +0000</pubDate>
				<dc:creator><![CDATA[GFM Staff]]></dc:creator>
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				<description><![CDATA[<p>Food products containing cannabis are expected to be on the retail market by mid-December at the earliest under new federal regulations announced Friday. Health Canada on Friday announced amendments to the Cannabis Regulations will be published June 26 to come into force Oct. 17, laying out rules for legal production and sale of edible cannabis, [&#8230;] <a class="read-more" href="https://farmtario.com/daily/cannabis-edibles-clear-for-legal-launch-before-year-end/">Read more</a></p>
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								<content:encoded><![CDATA[<p>Food products containing cannabis are expected to be on the retail market by mid-December at the earliest under new federal regulations announced Friday.</p>
<p>Health Canada on Friday announced amendments to the Cannabis Regulations will be published June 26 to come into force Oct. 17, laying out rules for legal production and sale of edible cannabis, cannabis extracts and cannabis-based topicals.</p>
<p>The new rules &#8220;seek to reduce the health risks of these cannabis products&#8221; while &#8220;provid(ing) for a broad diversity of cannabis products, which will help displace the illegal market.&#8221;</p>
<p>A &#8220;limited selection&#8221; of products is expected to appear gradually in physical or online stores no earlier than mid-December, Health Canada said. Federal licence holders must give 60 days&#8217; notice of intent to sell new products.</p>
<p>Also, Health Canada said, federally licensed processors &#8220;will need time to become familiar with and prepare to comply with the new rules and to produce new products&#8221; while authorized distributors and retailers will also need time to buy or obtain the new products and make them available for sale.</p>
<p>For edibles, the new rules put a cap of 10 milligrams per individual package on the amount of THC (tetrahydrocannabinol, the main psychoactive ingredient in marijuana).</p>
<p>The new rules for edibles also prohibit production of food and cannabis in the same facility and impose further manufacturing controls to limit the risk of foodborne illness and control product quality.</p>
<p>Edibles, topicals and extracts will all require plain and child-resistant packaging which displays the standardized cannabis symbol and a health warning message. Label claims alleging health or nutritional benefits are prohibited.</p>
<p>For extracts, the new rules will limit THC to 10 mg per unit, such as a single capsule. The total limit of THC per package of extract will be capped at 1,000 mg &#8212; for example, a package could contain one hundred 10-mg capsules.</p>
<p>The rules will also prohibit use of &#8220;certain ingredients that could appeal to young persons, such as sweeteners and colourants, or ingredients that could increase the appeal of cannabis extracts.&#8221;</p>
<p>As with vaping products, the new rules for extracts will also block certain flavours that are appealing to young persons from being displayed on a product label.</p>
<p>The rules for topicals, meanwhile, will also limit the total THC content per package at 1,000 mg and will restrict use of &#8220;certain types&#8221; of ingredients. Any label claims alleging &#8220;health or cosmetic benefits&#8221; are also prohibited for topicals.</p>
<p>Health Canada said it will begin approving amendments to individual federal licences to authorize production and sale of the new products &#8212; and begin reviewing notifications from licensees for those products &#8212; when the amended regulations come into force Oct. 17.</p>
<p>The Canadian Health Food Association, in a separate release Friday, said that by focusing on recreational THC-based edibles and other wares, the upcoming federal rules are &#8220;another example of the government taking steps to make it easier to get high and not to get well.&#8221;</p>
<p>Canadian consumers, the association said, want access to the CBD (cannabidiol) in cannabis for its &#8220;non-intoxicating health benefits,&#8221; but Canada is &#8220;currently missing the boat on innovation in the health sector with a strict focus on the recreational market.&#8221;</p>
<p>CBD is another major active ingredient in cannabis but, unlike THC, doesn&#8217;t produce &#8220;highs&#8221; in humans. CBD&#8217;s proponents have touted its properties for potential use in treatments for chronic pain, insomnia, anxiety and epilepsy symptoms. <em>&#8212; Glacier FarmMedia Network</em></p>
<p>The post <a href="https://farmtario.com/daily/cannabis-edibles-clear-for-legal-launch-before-year-end/">Cannabis edibles clear for legal launch before year-end</a> appeared first on <a href="https://farmtario.com">Farmtario</a>.</p>
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