CBD RESEARCH
Researchers find that CBD has heavy metals and plastic contaminants
More than 500 products analyzed by a team of researchers revealed contaminants are widely present in CBD, reports Hemp Today.
The researchers, led by Hannah Gardener of the University of Miami Miller School of Medicine and two Colorado-based organizations, also say that the labeling of products is deficient, with “substantial discrepancy between the product label claims for CBD potency and the amount measured in both edible and topical products”.
To tackle the issue, the authors suggest that stringent regulations are needed for CBD product labeling, as heavy metal and plastic contamination in CBD “may counter-balance the cannabinoid’s proposed health benefits.”
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ACQUISITIONS
Flora Growth signs deal to acquire Franchise Global Health
Flora Growth has signed a deal to acquire Canadian medical cannabis operator, Franchise Global Health Inc., which has principle operations in Germany, in an all share transaction.
RTT News reports that the financial terms of the deal were not disclosed, but that the merger is expected to yield at least $3m of annualized cost synergies within the first year.
“Through this proposed acquisition, we are connecting our commercial infrastructure and medical cannabis product portfolio to the German and EU medical markets, while gaining direct access to European pharmaceutical distributions,” said Luis Merchan, CEO of Flora Growth. “We believe Franchise will significantly increase our commercial international revenue and provide essential distribution to German pharmacies and a growing wholesale market.”
MSO NEWS
Cannabis MSOs forecasting that 3Q will represent a largely flat period
Analysts have outlined expectations from MSOs including Jushi Holdings and Planet 13 Holdings, forecasting that 3Q would represent a largely flat period when compared to 2Q on both the topline and adjusted earnings before interest, taxes, depreciation and amortization (EBIDTA), reports Proactive Investors.
Impacting factors include inflationary pressures on consumer spending and valuations being particularly sensitive to the prospect of legislation progressing at the federal level. However, near-term valuation catalysts are still on the table according to the experts, including:
- Biden’s announcement that he will pardon federal convictions for simple possession.
- The anticipated review of the appropriateness of having cannabis classified as a Schedule 1 narcotic.
- The prospect of a Safe Banking ‘Plus’ Act to potentially gain traction.
UK HEMP
How hemp can deliver growth in agriculture – and boost the UK economy
Writing for BusinessCann, Mike Morgan-Giles, CEO of the UK’s Cannabis Industry Council, explores the impact the agricultural hemp could have on the UK economy.
With the UK’s new Prime Minster, Rishi Sunak, facing challenges such as stabilizing the economy and protecting businesses and jobs, and UK farmer’s facing challenges such as changes to agricultural subsidies and the wider challenge of climate change – Morgan-Giles highlights that “it won’t be enough to tinker with existing sectors, but to enable the new industries of tomorrow to thrive and flourish.”
One of these industries is the industrial hemp sector, which, with a range of uses including paper, bio-composites, textiles, building materials and animal food, could play an important role in making the agricultural sector more dynamic and successful.
Morgan-Giles also emphasizes the beneficial impact of hemp on biodiversity, noting that it “provides a much-needed late season source of pollen for our bee and pollinator populations.”
