Bruce Linton, Chairman and Co-CEO of Canopy Growth Corporation (NYSE: CGC) stated on December 20th several comments on the successful passage of the 2018 Farm Bill.
The 2018 Farm bill has, after a long battle in legislation, legalized the cultivation of hemp with the Hemp Farming Act of 2018 that reclassified hemp as an “agricultural commodity”. The current benefit from this change in legislation is estimated to create and grow into a $2.1 billion dollar market by the year 2020 through cannabidiol (CBD) product sales alone.
“Canopy Growth commends the United States government for passing the Farm Bill, a transformative piece of legislation that will create jobs and meaningful economic impact across the United States,” said Bruce Linton.
Canopy Growth is expected to flow quickly into CBD sales without issues due to the acquired hemp product portfolio from ebbu Inc. and the $4 billion investment from Constellation Brands (NYSE: STZ) that the company received earlier this year.
Risk of Prosecution for Marijuana-Related Companies. If you are considering investing in a company that is connected to the marijuana industry, be aware that marijuana-related companies may be at risk of federal, and perhaps state, criminal prosecution. The Department of Treasury recently issued guidance noting: “[T]he Controlled Substances Act (“CSA”) makes it illegal under federal law to manufacture, distribute, or dispense marijuana. Many states impose and enforce similar prohibitions. Notwithstanding the federal ban, as of the date of this guidance, 20 states and the District of Columbia have legalized certain marijuana-related activity.”