November 2020 Will Be Remembered as Watershed Moment in the Cannabis Industry
It appears the United States is poised to catch up with several of its global neighbors, as five states have increased access to legal cannabis in the 2020 election season. New Jersey, Montana and Arizona all expanded their medical programs to adult-use, South Dakota legalized medical and adult-use marijuana, and Mississippi voted to legalize medicinal cannabis. The clear signal from millions of Americans who voted on every marijuana-related proposition placed before them is: bipartisan favor of legalized cannabis.
Since 1996, 15 states (and the District of Columbia) have either enacted or have voted to enact adult-use legalization laws, while 36 states (and DC) have either enacted or have voted to enact medical marijuana access laws. Even traditionally conservative states (specifically Arizona, Montana and South Dakota in the recent round of elections) are leaning toward some form of legalization. With a democratic administration projected to hold the Oval Office for at least the next four years, today’s domestic market opportunity is larger than ever.
The question is, which companies are poised to make the most of this current opportunity? The first large-cap cannabis company to go public was Canopy Growth Corp. in 2016, four years into the ongoing “Green Rush.” While the darlings of the market have historically been cultivators and dispensaries, companies focused on the science side of cannabis are now headed for the spotlight.
Cannabis Global, Inc. (OTC: CBGL) is one such company and an emerging force in the area of cannabinoid sciences and highly bioavailable hemp and cannabis infusion technologies. The Company is rapidly expanding its portfolio of intellectual property, recently filing a patent application on cannabinoid nanotechnologies targeted at rewriting the industry’s cost model. Additionally, the Company has filed four provisional patents covering related areas. With the cannabis market already growing and a potential acceleration on the horizon, these inventions could prove incredibly valuable in the near future.
Acquisition is a natural growth strategy in the cannabis market. Cannabis Global recently acquired an 18.8% strategic investment stake in Natural Plant Extract (NPE), which operates a licensed cannabis manufacturing and distribution business in Lynwood, Calif. NPE holds a special Type 7 California cannabis manufacturing license, allowing for volatile extraction methodologies, as well as cannabis product distribution anywhere in the Golden State.
Still, the sweet spot for Cannabis Global is in the science. Earlier this month, the company announced the filing of a new patent application resulting from its Project Varin research program. The application addresses new methods for the creation of highly bioavailable and ultra-fast acting cannabinoids for use in beverages, food, topical and other applications. As noted in the press release:
The Company believes this technology is revolutionary, holding the potential to rewrite the efficacy and cost equations in the cannabis industry. Additionally, the technology will allow for significantly faster onset of active cannabinoids ingredients, which are expected to be experienced in minutes, versus oftentimes in hours for current generations of cannabinoid infusion technologies.
Arman Tabatabaei, CEO of Cannabis Global, stated, “We have designed these technologies with food and beverage formulation in mind. While the legacy technologies rely on harsh chemical solvents for initial processing and surfactants to maintain stability, we have been able to utilize food-grade ingredients in our Project Varin technologies. We believe the use of food-grade inputs, along with the superior bioavailability and meaningful reductions in onset times make these new technologies unique to the marketplace. Upon the filing of our next patent in this area, we plan to jointly work within the California regulatory framework to create a new method to infuse food and beverages with THC. The technology holds the promise to rewrite the industry dynamic relative to both cost of infusion and overall efficacy for not only THC, but also for other cannabinoids.”
Industry allies are also part of Cannabis Global’s business development model. The company has a management contract with Whisper Weed, a cannabis delivery business in Los Angeles, Calif., and a collaboration with Marijuana Company of America (OTC: MCOA), under which MCOA will utilize Cannabis Global’s Project Varin technology suite on its hempSMART™ product line.
Investors who were quick to jump on some of the traditional investments in the cannabis industry are taking a deeper look into the science backing its growth. Companies like Cannabis Global that have created a web of diversified assets and patents are far more likely to withstand industry headwinds while making the most of changing administrative policies in the United States and abroad.