There’s a bright future ahead for companies focused on cannabidiol (CBD), as market experts and business insiders are predicting remarkable growth especially for CBD from hemp in the next five years.
The CBD industry has been seeing some significant milestones lately, including the U.S. Food and Drug Administration’s approval of the marijuana-based medicine, Epidiolex and the move of the U.S. Senate to vote for the legalization of hemp. Not to mention market projection has quite been exciting. From the $1 billion sales projection, it has now jumped to a very possible $2 billion revenue by 2020.
These developments have opened some very real possibilities, especially when it comes to the benefits of CBD-based products. CBD oil from hemp, in particular, is expected to grow because compared to marijuana-derived CBD oil, the former will not have the psychoactive effects most consumers have been reluctant about.
And with such facts and news, there have been companies that are either focusing on the CBD industry or entering it from a different sector.
This exciting news is now gearing CBD companies into overdrive, with key players working on significant direction and structure changes to fully take advantage of capturing a robust market. On top of the movement are company name changes, a major move done to add the better perspective of what these companies are now planning to take on.
Green Spirit Industries Inc. (OTCQB:GSRX), for example, has recently finalized the company’s change of name to GSRX Industries Inc. The change reflects GSRX’s expansion to cover pharmaceutical products produced by Spirulinex, LLC, wherein GSRX is a major stakeholder.
GSRX operates through the acquisition, development, and retail of cannabis products via dispensaries. The company name change signals its new endeavor, which now includes cultivation, extraction, and development of more cannabis-based products.
Another major player, PotNetwork Holdings, Inc. (OTCMKTS:POTN), recently revealed that it has just filed a registration statement on Form 10 with the U.S. Securities and Exchange Commission (SEC) to be a fully recognized SEC firm. The move was made in accordance with last month’s announcement of changing their company name to “BioTech Hemp, Inc.”
This change is seen as the company’s way of signaling a broader brand positioning and strategic focus, mainly on hemp-derived CBD wherein it has already established a strong market image, thanks to exceptional products from its subsidiary, Agreenalternative.
According to a press statement, the company’s decision to change its name and file for SEC recognition is fundamental to its goal of heightened transparency for both investors and customers. Part of the plans of POTN is also to uplist to the OTCQB.
POTN, via Diamond CBD, was able to post spectacular growth in 2018 compared to the same period last year. In the first five months alone, POTN reported over $10 million in sales, thanks to Diamond CBD products.
But more than just quality products, POTN has established a sterling reputation for the company’s ongoing research, development, and multinational marketing of premium hemp extracts that contain a broad range of cannabinoids and natural hemp derivatives. The company is made up of a strong team of scientists, medical practitioners, and marketing wiz to showcase the best advantages that CBD can offer.
New companies joining the industry
And it’s not just the names that some companies have started changing to get into the CBD market. Early this year, gas and oil company Avalon Oil & Gas Inc. (OTC:AOGN), which used to produce snow skates in Colorado, also changed its name and corporate structure and began producing beauty and grooming products that contain CBD from hemp.
AOGN is now called Groove Botanicals Inc. and has filed the company for SEC registration. It still produces oil and natural gas products but only under a subsidiary. According to reports, the company has been struggling to stay afloat for years. Then last year, it announced to join the CBD industry.
Another company to follow suit is Future Farm Technologies in Vancouver, known for its modern, indoor farming techniques to conduct studies on how to grow crops with minimal land and water. And last year, the company has purchased a 120-hectare land in Amity, Maine, and it will be used in growing hemp in order to produce CBD oils.
Now that the CBD industry is truly showing more robust signs of growth in the next few months, people can expect more companies to change directions and follow the wind leading to CBD innovation.