Passage of the U.S. Farm Bill has ended a five-decade-long ban on industrial hemp (defined as cannabis with less than 0.3% THC), allowing nationwide legal hemp production in all 50 states. Importantly, this should allow companies to deduct business expenses against their taxes (IRS Section 280E), which should significantly increase the bottom line of most companies that carry hemp products.

The Farm Bill also lifts restrictions on banking, advertising, and marketing. Hemp/CBD companies will also be able to accept other forms of payment other than cash, including debit and credit cards. Today, we have identified three little-known hemp CBD stocks that have significant upside potential from the passage of the U.S. Farm Bill.

Ovation Science Inc. (CSE:OVAT) – $0.37
Hemp/CBD

Ovation is a skincare research and development company that provides pharmaceutical-grade topical cannabis products for the medical and recreational global market. Through its patented Invisicare® technology, Ovation develops industry-leading transdermal and topical cannabis products using a licensing/royalty business model. The Company’s Proprietary Invisicare® Technology has a 4-10 times higher transdermal absorption rate of CBD/THC compared with other products. With this technology, Ovation releases 4-10 times more CBD compared with conventional products, giving OVAT the potential for higher efficacy. Ovation has secured license agreements with Canopy Growth in Canada, and Lighthouse Strategies in Nevada for use of its Invisicare® Technology.

• Market Cap: $8.6 million
• 5-Day Return: 18.9%
• 1-Month Return: 23.3%

Alternate Health Corp. (CSE:AHG) – $0.56
Hemp/CBD

Alternate Health is an international cannabis company that focuses on value-added services and technology. The Company’s software systems provide it with its diverse operations platform, which include the distribution and the medical cannabis software portal, the first portal approved by the Florida Department of Health. On September 4, 2018, the Company entered into an agreement with Liberty Health Sciences (CSE:EHC) to launch the first online shopping portal for medical cannabis in Florida. On January 22, the company secured its second set of cannabis licences in Los Angeles, in addition to its licences in Humboldt Country, California.

• Market Cap:  $33.8 million
• 5-Day Return: -12.8%
• 1-Month Return: +19.1%

Eviana Health Corporation (CSE:EHC) – $0.83
Hemp/CBD

Eviana Health Corporation is a Canada-based company that holds a Serbian industrial hemp licence, permitting the cultivation, processing, and selling of industrial hemp on 250 hectares of agricultural land. Eviana delivers customized consumer healthcare products using natural hemp for CBD-based topical creams and other cosmeceutical and nutraceutical products. On February 1, the International Cannabis Company announced its agreement with Eviana Health to purchase 155 metric tonnes of the Company’s processed industrial hemp.

• Market Cap: $10.8 million
• 5-Day Return: +1.5%
• 1-Month Return: +36.1%