In July, Canada’s plans to legalize recreational cannabis nationwide, will come into effect. Hidden behind the buzz generated by recreational cannabis is Canada’s plans to legalize the extraction of cannabinoids, such as Cannabidiol (CBD), from industrial hemp. According to research undertaken by the Brightfield Group, the industrial hemp-based CBD market is anticipated to become a $1.6 billion-dollar industry by 2021. This will be putting companies like Global Hemp Group Inc. in the position for a breakout year.
Global Hemp Group Inc. (CSE: GHG)(OTC: GBHPF) is a Canadian based public company operating in the industrial hemp sector.Through joint ventures and acquisitions, GHG plans to operate in the automotive, building materials, bio-composites, food, nutritional supplements and nutraceuticals, guided by the overarching theme of “global environmental stewardship.”
Along with the company’s joint venture partner Marijuana Company of America (OTC:MCOA), GHG has completed the first phase of industrial hemp trials in Northeast New Brunswick in December 2018. The partnership now expects to begin commercial cannabinoid extraction from the hemp produced, from a commercial operation, on a minimum of 125 acres of cultivation slated this year.
The legalization of cannabinoid extraction from hemp is expected to have a positive impact on the company moving forward. Before the new year, GHG’s stock price rose from .05 cents per share to .34 cents per share within a couple of months.