One of the biggest remaining catalysts for the entire cannabidiol (CBD) market in the US may see some movement later this year, according to one executive.

In her company’s Q2 operating results release on Wednesday (August 14), Deanie Elsner, CEO of Charlotte’s Web Holdings (TSX:CWEB,OTCQX:CWBHF), said she is expecting to see a framework for regulations in the US later this year.


Elsner said her company is preparing for the possibility that the US Food and Drug Administration (FDA) will move forward with clear regulations and guidance for the CBD market. She estimates that this may come in mid to late fall of this year.

“In the United States we are cautiously optimistic that the FDA is moving in the right direction and we believe they are committed to finding a positive path forward for the industry,” Elsner said during a conference call on Wednesday.

Following the legalization of hemp and its derivatives thanks to the passing of the farm bill, the FDA has expressed an interest in setting up a regulatory framework for CBD items used as dietary supplements.

Despite the lack of clarity from the regulator, the CBD market in the US has seen an explosion in interest and demand from consumers.

“While the farm bill unlocked the door for category availability, the FDA now has the opportunity to expand availability of hemp CBD products across more distribution points to benefit more consumers,” Elsner said during the call.

The executive was appointed as the new leader of the CBD manufacturer in April, having served previously as president of the US snacks division with Kellogg Company (NYSE:K).

Elsner explained that retail partners with massive store networks across the US will not get ahead of the FDA in terms of the product sales.

“Which is why the FDA really needs to be aware that in order for the industry to move forward they’ve got to set the regulatory down,” she said.

Q2 results show progress in market availability and revenues

During its most recent quarter, the Boulder, Colorado-based manufacturer of CBD products reported revenues of US$25 million compared to US$21.7 million during the previous quarter.

The company reported total net income of US$2.2 million for the period, which represents earnings per share of US$0.02.

Elsner explained that the company has seen healthy growth in terms of its products becoming available at national retailers and smaller regional stores. Charlotte’s Web-branded CBD products are now available in 8,000 stores across the US.

The company touts its brand as a premium offering that consumers will seek out compared to other products. However, Elsner said she is expecting to see a natural price compression due to the high volume of competitors offering cheaper CBD products.

The executive explained that the company is not considering dropping its own prices in the face of the emergence of these low-cost competitors.

Elsner said this decision was made since the company has not seen a significant enough impact from the entry of competition with cheaper products.

Fellow CBD producer CV Sciences (OTCQB:CVSIshared similar projections about the expansion of lower-cost competition in this sector. During a recent quarterly update, CEO Joseph Dowling warned investors the company will be facing murky upcoming quarters from increased competition in the CBD space.

Shares of Charlotte’s Web opened Wednesday at C$25.51. As of 2:05 p.m. EDT, the company had fallen over 10 percent from its previous close, coming in at C$25.71.

In the company’s conference call, Cory Pala, director of investor relations, attributed the drop in the share price to the struggles of the Dow Jones Industrial Average (INDEXDJX:.DJI).

According to analyst aggregator site TipRanks, Michael Lavery, an analyst with Piper Jaffray, kicked off his coverage of the firm this week by issuing a “buy” rating and assigning a C$25 price target to the company.

Don’t forget to follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Centurion to acquire a Disruptive Water-Soluble Cannabinoid Technology Platform Delivering Rapid Onset, Increased Bioavailability, Premium Taste Profiles and Highly Competitive Cost Structure

Centurion Minerals Ltd. (TSXV: CTN) (FSE: XJCB) (“Centurion” or the “Company”) is pleased to announce that it has entered into an Amalgamation Agreement dated February 17, 2021 (the “Agreement”), with HAI Beverages Inc. (“HAI”), whereby Centurion will acquire 100% of the outstanding shares and assets of a wholly-owned subsidiary of HAI (“NewHAI) in exchange for common shares of Centurion (the “Acquisition” or “Transaction”). NewHAI holds all material assets of HAI and the Acquisition will constitute a reverse take-over (“RTO”) of the Company.

Keep reading... Show less

Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today its participation in the following investor conferences:

  • Needham 2nd Annual Virtual Cannabis Conference – March 3 rd , 2021 – Management will participate in virtual one-on-one meetings.
  • 33rd Annual Roth Conference – March 15 th -17 th , 2021 – Charlie Bachtell, CEO and Co-Founder, will participate in a Fireside Chat and management will later participate in virtual one-on-one meetings on April 7 th .
  • Stifel Multi-Sector Conference – April 21 st , 2021 – Management will participate in virtual one-on-one meetings.

About Cresco Labs

Keep reading... Show less

Green Thumb Industries, a leading cannabis consumer packaged goods company and owner of Rise™ Dispensaries, is expanding key partnerships and creating scholarships earmarked for those from communities most impacted by the war on drugs as part of its corporate social responsibility program. The scholarships will be granted to a total of four students for programs at the Cleveland School of Cannabis in Ohio and Olive-Harvey College in Illinois. Additionally, Green Thumb will continue its support of Cabrini Green Legal Aid and partner with the North Lawndale Employment Network in Chicago as part of ongoing collaborations that include financial support, volunteerism and awareness initiatives.

Building on the foundation of Green Thumb’s LEAP initiative, which provided pro-bono support for social equity license applicants in Illinois and which will soon offer business incubator resources to newly awarded social equity entrepreneurs, these impactful partnerships mark a critical next step in prioritizing diversity, equity, and inclusion in the cannabis industry.

Keep reading... Show less

All five flavours of the Company’s KOIOS™ nootropic beverage product are now being carried by Jensen’s, a regional supermarket chain operating in the San Diego, Los Angeles, and Palm Springs areas of Southern California. This placement of KOIOS™ follows several other recent placements of the Company’s beverage products in regional supermarket chains across the United States as part of a strategy to passively build market share in specific geographical areas.

Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that the full range of five flavours of its KOIOS ™ nootropic beverages can now be purchased at all grocery stores operated by Jensen’s Foods (“Jensen’s”), a long-established family-owned grocery chain operating in the San Diego, Los Angeles, and Palm Springs areas of Southern California. In a press release dated February 19, 2021 the Company announced another chain-wide placement of KOIOS ™ nootropic beverages on the west coast of the United States with Market of Choice in Oregon. With this placement of KOIOS ™ in Jensen’s supermarkets, the Company’s beverage products are now carried in approximately 180 retail stores on the west coast, out of a total of more than 4,000 retail stores nationwide.

Keep reading... Show less

 Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) announces that Philip Young, CEO and Director, and Maghsoud Dariani, Chief Science Officer will be presenting on Thursday, February 25th, 2021 at 5:45 pm EST at “The Gold Standard in Psychedelic Investment, Psychedelic Capital Virtual Investment Conference”, a platform showcasing the top companies, latest IPOs, newest opportunities, and deepest industry insights.

As a presenting sponsor, the Company will connect directly with some of the earliest moving investors in the psychedelic industry and reach an audience of 2,000+ investors. Presentations are 30 minutes in length, with 10 minutes allocated to a one-on-one Q&A session with the audience.

Keep reading... Show less