The recent decriminalization of hemp seems to be all that Agritek Holdings Inc (OTCMKTS:AGTK) needed. The firm almost exclusively dealt in acquiring real estate and then leasing or reselling to cannabis-related industries. However, a new press release reveals that the firm is now dealing in hemp products directly.
MD Vapes brand
According to the release, Agritek just had it first transaction relating to MD Vapes brand. This is a proprietary brand uniquely distilled to get rid of any “traceable amounts of Delta 9 THC.” Interestingly, the products comes off the factory line of Agritek’s partners in Colorado.
The new brand not only involves unique processing techniques but also contains a wide range of cannabinoids. These include CBDV, CBN, CBD, CBG, and CBC. Further, the unique processing technique will also get rid of waxes, chlorophyll and fatty acids. So far, companies in vape, nutraceutical, personal care, cosmetic and others are the key targets as clients.
The decision to venture into the cannabis industry solidified after the US government decriminalized hemp. Both the House and the Senate agreed to dissociate hemp from the Controlled Substances Act.
Agritek Holdings lauds decriminalizing of hemp
The motive behind the Hemp Farm Bill 2018 was to “clarify that those low-THC cannabis plants aren’t illegal drugs, which would be the most significant change to the Controlled Substances Act since it was passed in 1971.”
While the impact of the passing of the bill is enormous for the core industry, it appears it will help many satellite firms diversify operations as well. Agritek commented on the passing of the bill by lauding the efforts of both the House and the Senate. According to the firm, hemp sales were already sky-high even before the plant was legal. As such, Agritek expects that the new legal status will further boost sales through the $1 billion mark.
Ultimately, players in the Hemp industry will have the pass to solicit services that were initially inaccessible. For instance, firms can now sell their products without much barriers as well as access services like crop insurance.