The recent signing into law of the U.S. Farm Bill 2018 by President Trump has the potential to produce major benefits for CBD stocks. The signing of this piece of legislation has put an end to a five-decade-long prohibition on industrial hemp or cannabis containing less than 0.3% THC. This means that it is now legal to produce hemp and other derivative products in all the 50 states.
Companies can now subtract hemp-related business expenses against their taxes, which can substantially improve their bottom lines. The bill removed restrictions on marketing, advertising, and banking, too.
This means that CBD firms can now accept other forms of payments besides cash, like credit and debit cards.
Here are 3 CBD stocks that can benefit the most from these changes.
AMYRIS (AMRS)
The share price of this bioscience firm soared significantly, by over 70%, the beginning of this week. The performance came on the backdrop of the company announcing a collaboration agreement focused on development, licensing, as well as commercializing CBD products.
According to the company’s press secretary, “the deal is valued at approximately $225 million”. However, the company declined to reveal its partner in the deal, describing the matter as confidential. But, it is worth noting that although the deal is not yet finalized, the allure of a major CBD deal in the market was enough to drive this CBD stock higher.
It will also be interesting to see how investors will react once the other party in the collaboration deal is revealed.
Ovation Science Inc. (OVAT)
This is a skincare R&D firm that offers pharmaceutical-grade topical CBD products for the recreational and medical world market. The company develops these products through a licensing/royalty business model.
The firm’s novel CBD products are renowned for their high efficacy, giving the company the potential for competitive pricing. The company recently secured licensing agreements with Lighthouse Strategies in Nevada and Canopy Growth in Canada for use of its proprietary technologies in developing topical and trans-dermal cannabis products.
The company’s stock recorded a market capitalization of $8.6 million, while the 5-day and 1-month returns stood at 18.9% and 23.3% respectively.
Eviana Health Corporation (EHC)
This Canadian-based firm holds an industrial hemp license from Serbia, allowing it to engage in cultivating, processing, as well as selling industrial hemp. The company provides customized consumer health care products such as CBD-based topical creams and nutraceutical and cosmeceutical products.
Eviana Health Corporation recently entered into an agreement with the International Cannabis Company to sell 155 metric tons of processed industrial hemp. The company’s stock recorded a market capitalization of $10.8 million, while its 5-day and 1-month returns stood at +1.5% and +36.1% respectively.
According to www.cbdcentral.com investors will definitely be watching these and other CBD stocks closely thanks to their stellar performance and the level of activity involving mergers, partnership agreements, and acquisitions in the CBD market.