FinancialBuzz.com’s latest Buzz on the Street Show: Featuring Our Corporate News Recap on “TransCanna Executes Diversification Division Announcing First Signed Crop Management Contract.”
TransCanna Holdings Inc. (OTC: TCNAF) (CSE: TCAN) is pleased to announce Lyfted Farms has been engaged by Central Valley Growers to Operate a Commercial Cannabis Greenhouse Facility located in Stanislaus County. Lyfted Farm’s ‘Higher Standard Farm Management Agreement’ includes the provision of genetic stock, crop cultivation, labor, compliance oversight, and distribution of finished product over an initial 5-year term to commence May 1st, 2020, with two 5-year options to extend. Under this agreement, Lyfted Farms will receive a base fee with an incentive fee of all budgeted net proceeds.
TransCanna is a California-based, Canadian-listed company building cannabis focused brands for the California lifestyle, through its wholly-owned California subsidiaries.
Over the past several decades, researchers have discovered that hemp can offer consumers several therapeutic benefits. More recently, they have meaningfully emphasized that hemp’s chemical compound, CBD or cannabidiol can be used in the healthcare industry. CBD is just one of the 113 cannabinoids found within the cannabis plant. Similarly, THC or tetrahydrocannabinol is also a cannabinoid within the cannabis plant, however, THC and CBD are widely different in their biological makeup. While THC is known to induce mind-altering effects, CBD is known for its rather relaxing and therapeutic effect on the user. As a result of this fresh understanding, U.S. federal regulators decided to pass the Farm Bill which legalized hemp in late 2018. The 2018 Farm Bill, however, explicitly preserved the FDA’s authority to regulate products containing cannabis, or cannabis-derived compounds, under the FD&C Act and section 351 of the Public Health Service Act (PHS Act). This leaves a lot of uncertainties regarding which products can be sold legally. Yet, despite these uncertainties, numerous types of infused cannabis products are now available in the market including food, dog treats, beverages, beauty products, and even bedding now feature cannabis in their marketing. And, according to New Frontier Data estimates, 2020 retail sales of such high-THC marijuana and low-THC/high-CBD formulations will represent a nearly USD 3 Billion retail market in the U.S.
The federal regulatory uncertainties did not stop investors, innovators, farmers and aspiring business owners from continuing to take risks in the industry. And states that have legalized cannabis for medical or recreational purposes continue to report demand – at least 70% of the 2019 U.S. hemp harvest is intended for extract production, with Colorado leading the nation in hemp cultivation and processing land area with over 80,000 acres reported. “The 29 U.S. states reporting licensed hemp cultivation acreage total almost half a million acres in combined cultivation land area, which is a massive increase compared to 2018 figures of a total land area barely over 100,000 acres. While there continues to be uncertainty and a healthy amount of confusion around hemp cultivation for CBD production, it is clear that demand is nonetheless continuing to rise across the U.S.,” noted Giadha Aguirre de Carcer, New Frontier Data CEO and Founder. “As states issue more licenses, consumer demand increases, and mass-market retailers such as CVS and Walgreens continue to expand their own product offerings, we expect the FDA may be forced to provide further regulatory clarifications sooner rather than later.”
For more information, please visit: TransCanna Holdings Inc.
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