Florida-based Aluf Holdings (OTC PINK: AHIX) has launched a new subsidiary Aluf CBD Partners to enter the CBD marketplace.

Aluf is engaged in acquiring and managing “next-gen” technology companies. It focuses on biometric, cybersecurity, blockchain, and software/hardware verticals. The company is focusing in on opportunities for CBD in the future.

The hemp-CBD market is expected to reach $3 billion by the year 2020, following the recent passing of the 2018 Farm Bill legalizing CBD in the United States.

New CBD Subsidiary

Aluf CBD Partners will engage in the manufacturing and processing of CBD distillate in order to fulfill the growing client need in the CBD marketplace, Aluf said in a statement.

CBD distillate is used in a variety of products such as supplements, topical creams, skincare, and even pet care. Based on market data and research, it is the most effective form of CBD used in wellness products.

“The number one goal of Aluf is to build shareholder value through profitability. Although this initiative is outside the scope of our primary focus on “technology,” the U.S. Cannabis market, including hemp-based derivatives and CBD, is projected to expand from $10 billion to $75 billion by 2030. Conservatively speaking, we are projecting average “blended” gross profits in excess of $18.5 million annually over the next five years,” Teresa McWilliams, the chief financial officer and interim president/CEO of Aluf, stated.

In addition, Aluf has added Dr. Bob Capretto to its board of directors. Dr. Capretto is the chairman of Solevo Wellness, a Pennsylvania-approved medical marijuana dispensary as well as a principal at the investment management group Oak Hill Holdings.