Highly-Anticipated Regulation Changes In 2021 Could Revolutionize America’s CBD Sector

By Mark Sheridan

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HEMPFUSION WELLNESS (OTC:CBDHF | TSE:CBD.U | FWB:8OO)

HempFusion Wellness – The one stock to ride in the Second Green Wave

The market for CBD products is evolving and growing enormously…

In the US alone, it’s estimated that sales will hit US$16.8 billion by 2025 from just US$4 billion at present.

Around the world the outlook is even better.

The European market is set to grow by 400% through 2023, while the Canadian space is expected to rise to C$2.4 billion in value within a few years.

What’s driving this momentum is a compelling investment theme.

With the Biden Administration and a democratic congress likely ushering in more liberal policies, there may be significant rule changes coming to the CBD market. The FDA may also update CBD rules that could be hugely transformative for the industry. All this may have ‘Big Pharma’ looking at potential M&A or investment opportunities in CBD to hedge their bets.

This may all be happening sooner than we think… Recently Jazz Pharmaceuticals announced that they would be acquiring GW Pharmaceuticals, a UK-based CBD company, for roughly $7 Billion. Who knows what could be next?

More and more studies are also finding that CBD – also known as cannabidiol – can help to support so many different aspects of the body and may have supportive and medical benefits.

As a result, acceptance of this key non-psychoactive substance, which is found in cannabis plants, is spiraling among consumers.

Just look at a recent poll from SingleCare.

It found that a third of American adults have already used CBD once or more to support areas like pain relief, stress, and sleep.

And when you consider that the younger generations are now more concerned than ever before with their wellness, the growth potential is enormous.

It’s no wonder companies are scrambling to capture a piece of this market.

Investors would be wise to keep a very close eye on how quickly this opportunity is developing.

See, nowadays, you can find thousands of companies putting “CBD” on labels to sell their products.

But the ugly truth is that the vast majority of these players are not compliant and may not even be safe to consume.

They are focused solely on developing products and making sales as quickly as possible.

As you’d expect, these players will be extremely exposed if the US Food and Drug Administration (“FDA”) were to crack down on the sector.

And unfortunately for them, it now looks like this is exactly what is about to happen.

A “blue wave” has swept over the US government – it isn’t just the president who sits on the left now, it’s the Congress and Senate as well.

The Democratic national agenda is expected to place a heavy emphasis on the legalization of cannabis and cannabis-derived products like CBD…

Many now expect monumental change in the American CBD market.

The impact would be twofold.

On the one hand, we could see a much, much wider pool of products on the market like CBD-infused foods, drinks, and dietary supplements.

On the other hand, the FDA is almost certain to tighten up its regulation of the sector, requiring compliance in areas like safety, quality and efficacy.

This is where HempFusion Wellness Inc (OTC:CBDHF | TSE:CBD.U | FWB:8OO) comes in.

See, this firm has invested millions of dollars in making its CBD products meet compliance and human safety standards both in the US and internationally.

So, if the FDA zones in on this sector and wipes out the vast majority of the more poorly prepared players…

HempFusion (OTC:CBDHF | TSE:CBD.U | FWB:8OO) could be positioned to capture a significant share of the CBD market as it hits terminal velocity.

It may be early investors who are the most richly-rewarded.


DOWNLOAD OUR SPECIAL REPORT TO LEARN HOW HEMPFUSION IS POSITIONED TO LEAD THE WAY IN THE RAPIDLY-GROWING CBD SPACE


Five areas where HempFusion has a competitive edge today

HEMPFUSION WELLNESS (OTC:CBDHF | TSE:CBD.U | FWB:8OO)

1) COMPLIANCE

HempFusion’s (OTC:CBDHF | TSE:CBD.U | FWB:8OO) range of CBD products is positioned to meet all of the FDA’s current compliance standards as well as those expected to come into play as the industry grows.

Not only is it one of very few CBD players that can legally make properly supported structure claims on its labels, but its offerings are include materials that have been evaluated as safe for human consumption and application.

It’s even one of ten companies taking part in ValidCare’s ground-breaking study into CBD and human safety, the results of which are eagerly anticipated by both the CPG and life sciences industries…

SOME OF THE MANY CERTIFICATIONS AND EXECUTIVE MEMBERSHIPS HEMPFUSION (OTC:CBDHF | TSE:CBD.U | FWB:8OO) HAS WON AND IS PURSUING

2) POSITIONING

HempFusion (OTC:CBDHF | TSE:CBD.U | FWB:8OO) currently stocks 46 products in around 4,000 retail locations across 50 states, including Sprouts, Vitamin Shoppe and Fresh Thyme Market.

Alongside its OTC Drug Listed topicals like pain, eczema, and acne relief and Aging Beauty creams, their product range includes USDA Certified Organic CBD liquid hemp extract tinctures and CBD capsules for sleep, stress, and energy.

It’s not just traditional retail where HempFusion (OTC:CBDHF | TSE:CBD.U | FWB:8OO) is established, either. The company recently relaunched its e-commerce platform and is currently executing a multi-stage marketing plan to maximize its online presence.

SOME OF THE RETAILERS THAT STOCK HEMPFUSION’S RANGE OF CBD AND PROBIOTIC PRODUCTS

3) EXPANSION

HempFusion (OTC:CBDHF | TSE:CBD.U | FWB:8OO) plans to use its strong regulatory standards to enter new US sales channels where its peers could struggle to secure access.

There’s the Big Box Retail, where it recently became one of few CBD firms to meet the channel’s ultra-high-quality standards….

There’s the Doctor/Practitioner market, where it is negotiating supply agreements for a CBD channel expected to be worth US$2 billion annually by 2024…

And it is planning to enter the convenience market, too, where its products could be put in front of an immediately-addressable market of 27,842 stores.

Then there’s the rest of the world.

HempFusion (OTC:CBDHF | TSE:CBD.U | FWB:8OO) has carefully devised a “trojan horse” strategy in which it uses its range of non-CBD Probulin probiotics products to establish sales distribution channels with retailers in international markets.

When the rules around CBD change in these new spaces, the company could be ready to pounce with a full range of certified, innovative products.

4) MANAGEMENT

HempFusion’s (OTC:CBDHF | TSE:CBD.U | FWB:8OO) management and executive team comprises some of the CBD sector’s most highly respected individuals.

For example, visionary founder Dr. Jason Mitchell, N.D. has already launched more than 300 dietary supplements and related products in the market…

Director Desmond Balakrishnan is a lawyer who has represented many of the cannabis industries biggest names, such as Aurora Cannabis…

And fellow director David Doherty was an initial financier and director of Green Organic Dutchman – one of the largest-ever Canadian cannabis IPOs.

5) FINANCING

On top of its compliance standards, market position, product range, and leadership team, HempFusion (OTC:CBDHF | TSE:CBD.U | FWB:8OO) has the money to potentially turn its plans into a reality.

As well as generating revenues from its existing CBD product sales, the firm was recently capitalized through its US$17 million IPO financing.

This bolstered an already strong balance sheet boasting no long-term debt and a cash balance of US13 million as of September 2020.

These factors combine to create a potentially huge opportunity for retail investors, as the CBD sector tightens and grows worldwide.

This is especially true with HempFusion (OTC:CBDHF | TSE:CBD.U | FWB:8OO) recently launched in the Canadian, US, and German markets. This highlights the firm to an army of investors hungry for innovative opportunities that give them exposure to the CBD space.

With such a strong commercial foundation in place, and one of the market’s leading product ranges, expect to see big things from HempFusion (OTC:CBDHF | TSE:CBD.U | FWB:8OO) over the coming years.


DOWNLOAD OUR EXCLUSIVE DEEP DIVE INTO THE TROJAN HORSE STRATEGY POSITIONING HEMPFUSION FOR GLOBAL GROWTH


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Author: Mark Sheridan

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

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