Mainstream acceptance of cannabidiol (CBD) as a safe medicine took another leap forward. Last week, 28 members of the US Congress asked a federal appeals court to reject the Drug Enforcement Administration’s (DEA) argument that CBD is a Schedule 1 drug.
The Congress endorsement is yet another step in the positive direction for the CBD movement, and in particular for companies in the process of manufacturing CBD-infused goods, including CV Sciences Inc. (OTC: CVSI), Isodiol International, Inc. (CSE: ISOL) (OTC: ISOLF), Lexaria Bioscience Corp. (OTC: LXRP) (CSE: LXX), Liberty Health Sciences Inc. (OTC: LHSIF) (CSE: LHS), Naturally Splendid Enterprises (OTC: NSPDF) (TSX.V: NSP), The Tinley Beverage Company Inc. (OTC: QRSRF) (CSE: TNY), and relative newcomer Phivida Holdings Inc. (CSE: VIDA), which started trading in December 2017.
Comprised of 22 Democrats and six Republicans, the group of 28 Congress members filed their brief in conjunction with a pending lawsuit against the DEA.
Their argument was that the DEA is acting “blatantly contrary” to the 2014 Farm Bill, when it took the stance that CBD is a marijuana extract and therefore illegal.
“The Farm Bill’s definition of industrial hemp includes any part of the plant, including the flower,” the Congress members argued, and concluded that the DEA’s rule regarding CBD was an “abuse of DEA’s administrative procedure and rulemaking authority.”
Upon the DEA’s official announcement that US Attorney General Jeff Sessions was reversing the Cole Memorandum—introduced by the Obama Administration—which was introduced to protect US state level marijuana licensing programs from federal enforcement.
However, almost immediately, CBD manufacturers Phivida Holdings Inc. (CSE: VIDA) were quick to point out that their business was unaffected by the DEA’s reversal. The bipartisan support by Congress members served only to further bolster Phivida’s first reaction to the news.
The DEA’s actions may soon prove that CBD companies such as CV Sciences Inc. (OTC: CVSI), Isodiol International, Inc. (CSE: ISOL) (OTC: ISOLF), Lexaria Bioscience Corp. (OTC: LXRP) (CSE: LXX), Liberty Health Sciences Inc. (OTC: LHSIF) (CSE: LHS), Naturally Splendid Enterprises (OTC: NSPDF) (TSX.V: NSP), The Tinley Beverage Company Inc. (OTC: QRSRF) (CSE: TNY), and Phivida Holdings Inc. (CSE: VIDA) are indeed still on the right track, and will go on unabated by federal overreach.
CBD-INFUSED PRODUCTS: SAFE, LEGAL, AND IN STORES
One company that’s already gotten a head start on the CBD product market is Phivida Holdings Inc. (CSE: VIDA), which already boasts a product line that’s already been successfully marketed and distributed in California, Colorado, Oregon, and Washington.
Their offerings include Phivida branded Hemp-Oil-Infused Iced Tea, Fruit Smoothies, Tinctures and Vitamin Shots, while the company is also licensed to produce its own wholesale cannabis products.
By targeting the organic beverage market, and combining it with the rapidly-growing demand for cannabinoid-infused edibles and beverages, they’re chasing the $15 billion medical cannabis market, $400 billion organic functional food and beverage market, and the $400 billion therapeutics market.
Phivida’s IPO launched last month aggressively with a multi-market approach—5 channels, 4 segments, and in 4 states.
In total, the company boasts 15 custom formulated hemp oil infusions that are doctor formulated, with 100%-owned IP/brands, vastly distributed on the backs of the team’s excellent track record and experience.
Phivida is completely vertically integrated, with its own hemp farm, extraction lab, and a board laden with titans of the beverage market.
THE POTENTIAL OF CBD-INFUSED BEVERAGES
Phivida’s team is stacked from top to bottom with an expert management and advisory board.
Led by managing, and marketing specialist John-David Belfontaine, whose experience filled with Fortune 500 companies, includes campaigns for Nestle, L’Oreal, Molson, PepsiCo and Starbucks.
The rest of the team are more beverage industry giants, including former Vice President of Red Bull, and the former CEO of Red Bull Canada, Director James Bailey, and former CEO of Seagram’s, Corporate Advisor John D. Silverman, who is also a former Strategic Advisor for John Labatt’s, and former EVP and COO of Grupo Empresarial Bavaria—which he grew to $2 billion, and more than tripled annual sales in just 5 years to nearly $1 billion from 2000 to 2005.
Phivida wisely struck out ahead of the herd, by quickly perfecting their formulas and streamlining their distribution channels to target markets.
The company’s premium quality product line meets QA/C safety standards, and is family safe. Going forward, Phivida projects its multiple revenue streams to yield $30 million per year by just its third year.
With the growing positive public opinion towards CBD, and CBD products, groups like Phivida stand to gain, especially if they have an advantage with branding and distribution. As that mainstream acceptance grows, look for brands such as Phivida to become household names in the very near future.
POTENTIAL COMPARABLES
CV Sciences Inc. (OTC: CVSI)
CV Sciences, is a life science company, focused on developing and commercializing novel therapeutics utilizing synthetic Cannabidiol (CBD). The company operates through two segments, Specialty Pharmaceutical and Consumer Product. It also manufactures, markets, and sells plant-based CBD products under PlusCBD brand for a range of market sectors, including nutraceutical, beauty care, specialty foods, and vape. CV Sciences, Inc. is based in Las Vegas, Nevada.
Isodiol International, Inc. (CSE: ISOL) (OTC: ISOLF)
Isodiol International develops and manufactures consumer products in Canada and the United States. It offers functional beverages, anti-aging luxury skin care products, and cannabinoid nutraceuticals. The company distributes its products to health food stores, specialty markets, health professional offices, spas, and cannabis dispensaries, as well as directly to consumer channels. It also sells its products online. The company is headquartered in Vancouver, Canada.
Lexaria Bioscience Corp. (OTC: LXRP) (CSE: LXX)
Lexaria Bioscience Corp., through its subsidiary, PoViva Tea LLC, produces and sells hemp oil-infused food products extracted from agricultural hemp under the ViPova and Lexaria Energy brand names in the United States. Lexaria Bioscience Corp. is based in Kelowna, Canada.
Liberty Health Sciences Inc. (OTC: LHSIF) (CSE: LHS)
Liberty Health Sciences is an investor and operator in the medical cannabis market, capitalizing on new and existing opportunities in U.S. states where medical cannabis is legal. Liberty has an extensive background in highly regulated industries, with expertise in becoming a low-cost producer. Liberty leverages commercial greenhouse knowledge to deliver high-quality, clean and safe pharmaceutical grade cannabis to patients.
Naturally Splendid Enterprises (OTC: NSPDF) (TSX.V: NSP)
Naturally Splendid develops, produces, commercializes, sells, and licenses hemp-derived foods, Omega foods, nutritional food enhancers, and related products through grocery stores, health and nutrition stores, and online distribution channels. They offer retail hemp superfood products; natural and organic hemp products; hemp-based pet care products; and plant-derived bulk ingredients. They also provide retail hemp based cannabinoid nutraceutical and cosmeceutical products under the Natera CBD brand name. Naturally Splendid Enterprises Ltd. is headquartered in Pitt Meadows, Canada.
The Tinley Beverage Company Inc. (OTC: QRSRF) (CSE: TNY)
The Tinley Beverage Company develops, manufactures, and distributes drinkable cannabinoid products in the United States. It offers a line of hemp cannabidiol (CBD) infused drinkable supplements. The Tinley Beverage Company Inc. is based in Toronto, Canada.
For a more in-depth look into Phivida Holdings Inc. you can view the investor presentation at the company website: https://phivida.com/
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