United Cannabis Corporation (OTCBB:CNAB) announced today that it has been contracted to provide a single customer with its hemp-derived CBD isolate oil for a period of 100 weeks. The market value of the agreement is estimated to be from US$30 to US$42 million.
As quoted in the press release:
The CBD isolate will be processed at the Company’s 14,300 square foot, state-of-the-art extraction facility in Mead, Colorado.
Earnest Blackmon, Chief Executive Officer of United Cannabis, commented on the announcement, “This is our second material agreement since launching our Mead facility in June, validating our move into hemp production and processing. Together these agreements represent seven times the revenue than we reported in 2018, and we are still only at a fraction of our existing capacity.”
“The demand for hemp-derived CBD-infused products has exploded since the passing of the Farm Bill last December, however there are still only a handful of states that have established markets, and Colorado is leading the way. Our ability to succeed while navigating the regulatory guidelines gives us a real competitive advantage as we move into other markets. We expect to launch similar facilities in South Carolina, Tennessee and Illinois by year-end, and have our sights on California, New York, and Florida,” Blackmon added.