Marijuana use, be it for recreation or as a resource for products has been a hotly debated topic for a long time now. It is currently listed as a banned substance at the federal level in the United States. This has kept many cannabis-related companies from being listed in Nasdaq and the New York Stock Exchange. This limits company growth as they are not being traded at what can be considered the highest level. But that might all change with the farm bill to legalize hemp.
Legalization of Hemp Not Pot
Although hemp is a product derived from cannabis the farm bill only moves to legalize the hemp. For a long time, the material has been banned, most likely due to its controversial history. However, unlike marijuana, hemp does not get users high. Instead, hemp is a material used to make a variety of products like clothes, rope, and paper.
With a material as versatile as hemp, along with the growing cannabis industry in regions of the United States, this is a good opportunity across the board. Senate Majority Leader Mitch McConnell who is the main proponent of this bill saw it as a chance to help out the farmers in the country, and a chance for more employment. Legal hemp will allow companies to get listed on Nasdaq to further facilitate growth.
Going North to Get High
Given how strict the United Stated is with cannabis and its by-products, several cannabis companies go to the Canadian Securitas Exchange to have their companies listed. Still, there are plenty of locals that are getting by with operations as is. However, a many executives from these companies have started to talk about their plans moving forward, should the bill pass.
One such company is Charlotte’s Web Holdings Inc. They produce hemp-based cannabidiol, known as CBD, products. It is a California-based cannabis company; Vertical Cos. produces and distributes cannabis products across four states in the US. They plan to make a spinoff company called Vertical Wellness and list it on Nasdaq if the bill is passed.
The benefits of the farm bill, however, are not limited to cannabis companies only. For example, The Alkaline Water Co., an Arizona based company, is working on a CBD infused drink. But until the bill is passed they won’t release it. The bill not only allows for local companies to freely operate in their own country. It also allows other businesses to grow their product line.
Despite what it may look like, there are cannabis companies being traded in the New York Stock Exchange. Canopy Growth Corp. and Cronos Group Inc. are publicly traded but, they have no operations in the U.S. and are based in Canada. Should the bill pass, they will no longer have to move. With the conversation on cannabis and all of its by-products more widespread than ever, there is a lot of potential in this bill. The farm bill is a marker in a change of market views on the controversial plant.