Since the U.S. Food and Drug Administration lifted the ban on growing industrial hemp in 2018, companies developing sustainable products can look forward to a future supply of hemp fiber and oil. The plant material works in numerous industrial applications, including paper making, textiles, bioplastic packaging, flooring, and even a form of concrete.

Long History Of Usefulness

Hemp is the non-intoxicating variety of the cannabis or marijuana plant. For thousands of years, human civilizations have cultivated hemp for fiber. Historians have evidence that people grew hemp in 8,000 B.C. It was also a common crop in Colonial America. As recently as the 1930s, the state of Kansas was one of the biggest hemp producers in the world.

The CBD market has always been a tough place to succeed. And companies experienced yet more hurdles in 2020, as a pandemic and an assortment of lawsuits gripped the industry.

In the face of such strong headwinds, it seems like it’ll also be hard for CBD businesses to grow in 2021. But it won’t be impossible. Despite obvious difficulties, the industry still provides opportunities for well-run companies to establish themselves and prosper.

There are several strategies companies can employ to develop a successful brand in this ever-changing market. But before discussing them, it’s important to understand the challenges that CBD entrepreneurs face.

Canopy Growth Corp. agreed to buy Supreme Cannabis Co., one of Canada’s leading brands of marijuana, in the latest large deal to reshape the rapidly growing industry.

Canopy will acquire all of the company’s shares in a largely stock-based deal valued at C$435 million ($346 million), according to a statement Thursday. The transaction, expected to close by the end of June, represents a 66% premium over Supreme’s Wednesday closing price, the companies said.

Supreme’s shares soared as much as 60% Thursday in Toronto, while Canopy fell as much as 2.3%.

After New York passed legislation to legalize recreational cannabis, we believe the government will prioritize legalization or decriminalization at the Federal level. 

New York is the 15th state to legalize recreational cannabis and we are bullish on the trend that we are seeing at the state level. From Virginia to South Dakota, several conservative markets have jumped on the legal recreational cannabis bandwagon and this is a trend that we find to be significant. 

Tidal Health Solutions Ltd. has been named the exclusive supplier of medicinal marijuana and related education for the Professional Hockey Players’ Association (PHPA).

The union represents current and former athletes within the American Hockey League, the professional rung just below the National Hockey League, and the ECHL, formerly the East Coast Hockey League. The certified union represents more than 1,600 players on teams based in both Canada and the U.S.

Looking within and without is essential in the cannabis industry, whether a company is setting its sights on improving user experiences, identifying potential foreign markets, cementing its position at home or trying to figure out what makes for fair compensation in an ever-evolving sector.

Nextleaf Solutions starts human trials of cannabis vapes

Retail served as the main driver of a 118 per cent increase in Canada’s recreational cannabis market last year, with the much-anticipated rollout of stores in Ontario quickening its pace and Alberta witnessing steady growth.

“The opening of retail outlets drove growth in 2020,” notes a new report on Canada’s recreational weed market from Brightfield Group, a consumer insights and market intelligence firm for the CBD and cannabis industries.

People used cannabis in large numbers during the height of the lockdowns caused by the pandemic. Investors, including big-name celebrities and well-known venture capital funds, are banking on that trend to continue as the pandemic lessens its hold on the country.

The interest in cannabis became apparent the moment lockdowns began as long lines formed at dispensaries. Many governments named cannabis dispensaries as essential businesses. Cannabis sales jumped 45 percent. Investors took notice.

Cannabis companies haven't made many deals outside of its own industry, but a couple of the more notable ones have involved tobacco. Altria (NYSE:MO) invested $1.8 billion into Cronos Group (NASDAQ:CRON) back in 2018 to take a 45% stake in its business. And last month, British American Tobacco (NYSE:BTI) invested roughly $176 million in OrganiGram Holdings (NASDAQ:OGI), which represents a 20% stake in the cannabis company.

Earlier today, Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) surprised the market and announced a definitive agreement to acquire 100% of The Supreme Cannabis Company, Inc. (TSX: FIRE) (OTCQX: SPRWF) in a transaction that is valued at approx. $435 million on a fully-diluted basis.

We believe that Canopy Growth made the acquisition to better positioned itself to compete against the previously announced business combination of Aphria Inc. (APHA.TO) (APHA) and Tilray Inc. (TLRY). Today, we have highlighted 7 key details of Canopy Growth’s acquisition and believe that our readers need to be aware of the following: