Passage of California Assembly Bill Expected to Spur More Growth in the Hemp, CBD Markets

CannabisNewsWire Editorial Coverage

DENVER, Aug. 28, 2019 /PRNewswire/ -- With a powerhouse economy worth more than $3 trillion, California's economy ranks as the fifth largest in the world. Current legislation is expected to pave the way for the state's hemp market to explode.

With a series of smart acquisitions and brand expansions, Sugarmade Inc.  (OTCQB:SGMD) (SGMD Profile) appears to be a strong pick-and-shovel presence as California looks at passing hemp-friendly legislation. Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) just announced a new hemp-based acquisition, while Greenlane Holdings Inc. (NASDAQ:GNLN) and The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) (TGOD Profile) have both inked deals that strengthen their presence in the hemp industry as well. KushCo Holdings Inc. (OTCQX:KSHB), another industry supplier, just created a new sales division aimed at mass distribution, industry education and compliance, and building CBD-brand distribution networks.

• Pending California legislation could rewrite hemp demand in California, whose economy ranks as fifth largest in the world.
• A more welcome legal environment is expected to create significant additional demand in the marketplace.
• Sugarmade's careful strategy may place the company in an ideal position as the industry prepares for change.

To view an infographic of this editorial, click here.

Legislation Could Warm Up State's Hemp Market

No state has had a bigger impact on the growth of consumer hemp and CBD products than California. But the Golden State may just be getting warmed up relative to hemp and CBD consumption. Current state legislation — Assembly Bill 228 — could rewrite the hemp demand equation for farmers and industry supplies across the entire United States.

While California has been liberal relative to cannabis legalization, state regulators have been downright prudish relative to allowing hemp cultivation and the use of CBD added to food and beverages. This attitude could all change soon as California's state senate has until September 15, 2019, to pass AB 228. The legislation, which clarifies the statues of CBD in foods and drinks, passed with a unanimous vote in California's Assembly, and California Gov. Gavin Newsom is widely expected to sign the bill into law, making the legislation effective immediately.