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Breaking News: Passage of 2018 Farm Bill Could Lead to a Flurry of M&A Activity in CBD Sector With Established Players
Breaking News: Passage of 2018 Farm Bill Could Lead to a Flurry of M&A Activity in CBD Sector With Established Players.
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[{"type":"text","content":"\nNEW YORK, Dec. 17, 2018 (GLOBE NEWSWIRE) -- Cannagreed.com News Commentary\n With the passage of the 2018 Farm Bill, there are many companies in the CBD space that are poised to receive significant interest from industry leaders in numerous sectors that are looking to capitalize off the passage of the 2018 Farm Bill by acquiring or forming partnerships with the companies that have already entrenched themselves in the CBD sector.  Cannabidiol, or CBD, is the non-psychoactive chemical compound found in the hemp plant. The 2018 Farm Bill nationally legalizes the cultivation and farming of that plant, which in turn will allow for the national legalization of CBD, removing barriers that have restricted mainstream commercial acceptance of the compound.  Many companies have already staked positions in their industries to take the lead in establishing their leadership in the CBD and Hemp space. Industry leaders have been taking notice of these events. They do not want to be left behind by the “CBD revolution”, as this bill “is a watershed moment for the CBD industry” said Brightfield Group, a company that specializes in cannabis and CBD market research, which projects that the medical and recreational CBD market is expected to reach an estimated value of $22 billion by 2022. Many companies have already expressed interest in acquiring or partnering with companies in the sector. The markets could positively reward these companies for their interest in the space:  GW Pharmaceuticals (OTC:GWPRF), the maker of Epidiolex, an epilepsy drug containing CBD. This Company had the first FDA-approved drug made from the cannabis plant, and its approval was done in tandem with the FDA reclassifying certain drugs containing CBD to Schedule 5 drugs.  Now that CBD is a legal substance, there are expectations that the Company will be looking to develop other CBD derived drugs. Johnson & Johnson (J&J) would be natural fit to either invest or acquire GW Pharmaceuticals as they have invested in two startup bio-tech companies, Avicanna and Vapium Medical through its JLABS Innovation startup. In light of the recent scandal that has plagued the Company, further investment into the hot CBD sector might help J&J turn their business around.  New Age Beverage (NASDAQ:NBEV), the US based energy and ...