The cannabis industry is quickly turning into a multi-billion dollar powerhouse thanks to the drastic demand for cannabis products. Reports have it that cannabis revenues are likely to hit $9 billion by the end of the year. This kind of speculation has resulted in serious investment by various companies seeking to grab a share of the growing market. Marimed Inc. (OTCMKTS:MRMD) is one of those, which has chosen to enter the hemp-derived CBD business.
The Massachusetts-based cannabis operator has invested $30 million in a Kentucky company, GenCanna. The strategic partnership by the two companies will enhance the operations in the hemp CBD industry. Each of them has different capabilities and expertise.
Partnership presents expansion opportunities
MariMed is expecting to reap big from the investment and the primary goal is to expand its CBD hemp operations. Currently, the company operates in select states but it is seeking to incorporate additional markets. It is also worth noting that it is one of the 17 top-performing public cannabis companies in the United States.
The swift legalization of cannabis in various states presents remarkable opportunities for hemp and hemp-derived products. This is more reason that the partnership may yield results according to GenCanna’s CEO. Matty Mangone-Miranda says, “Our partnership with MariMed represents a major step toward harnessing the hemp market’s enormous potential.”
Anticipation of the passage of the Hemp Farming Act of 2018
GenCanna has established production processes, which are in line with Good Manufacturing Practices (GMP) standards. It works closely with consumer protection agencies and other regulatory bodies. MariMed has also developed state-of-the-art regulatory-compliant facilities to support its development strategies.
However, there is still a lot of anticipation of the passage of the Hemp Farming Act of 2018. The passage will not only open doors for hemp companies but also for federal banking and financial services. It will also give the business environment the ability to offer a wider range of products that cross numerous categories.
Meanwhile, GenCanna has vowed to continue building relationships with the bigger players of the hemp industry.