Changes in Legislature Open New Doors for CBD Manufacturers

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May 23, 2019, 09:00 ET

NEW YORK, May 23, 2019 /PRNewswire/ -- Hemp, a derivative of the cannabis plant, has been used for centuries due to its numerous applications. The diverse use of the hemp plant makes it one of the most versatile resources as it is most commonly used for applications such as clothing, plastic, paper, and construction materials. However, nowadays, hemp is most commonly thought of as a derivative of the cannabis plant. Hemp is one of the two main derivatives of the plant and is widely different in terms of its biological makeup from its counterpart, marijuana. Hemp primarily contains CBD or cannabidiol, while marijuana contains more THC or tetrahydrocannabinol. The difference between CBD and THC is that the former does not cause psychoactive effects for its user. As a result, most U.S. states have legalized the use of hemp-derived CBD products as long as it contains less than 0.3% THC levels. Furthermore, the recent passage of the U.S. Farm Bill in 2018 opened up a major gateway for the CBD industry. Previously, the U.S. Department of Agriculture and other state departments only allowed pilot programs to study hemp, which allowed for small-scale cultivation. However, with the passage of the 2018 Farm Bill, broad cultivation of hemp is now approved. Moreover, the bill also allows hemp-derived products to be transferred between state lines for commercial or other purposes. Notably, the bill does not put any restrictions on the sale, transport, or possession of hemp-derived products, meaning that CBD is federally legal as long as it is consistent with the law. Overall, the passage of the Farm Bill positions the CBD marketplace to become an explosive scene. Additionally, the growth of the CBD industry will also further complement the overall cannabis industry. According to data compiled by Hemp Business Journal, a division of New Frontier Data, the total sales for the U.S. hemp industry totaled USD 820 Million in 2017. The research suggests that the industry is expected to grow to USD 1.9 Billion by 2022 and at a CAGR of 14.4% during the 5-year period. Pressure BioSciences, Inc. (OTC: PBIO), Pyxus International Inc. (NYSE: PYX), CannTrust Holdings Inc. (NYSE: CTST) (TSX: TRST), New Age Beverages Corporation (NASDAQ: NBEV), Level Brands, Inc. (NYSE: LEVB).

In 2017, hemp-derived CBD products accounted for the largest market share. The segment delivered sales of USD 190 Million, accounting for 23% of the overall market share in 2017. Other segments such as personal care, food, and industrial care followed closely. However, by 2022, the hemp-derived CBD segment is expected to completely outpace the rest of the hemp market. By 2022, Hemp Business Journal suggests that hemp-derived CBD is expected to deliver total sales of USD 646 Million. The industrial care sector is expected to follow behind hemp-derived CBD products with sales of USD 527 Million. Moreover, segments such as personal care and food are expected to lag behind. The research suggests that the hemp industry is primarily being driven by legalization efforts. As legal and regulatory barriers are removed and consumer education continues to spread, the hemp industry is positioned to see tremendous growth. Furthermore, researchers and scientists are continually conducting clinical trials to fully understand the effects of CBD. Researchers from the University of Minnesota's (U of M) College of Biological Sciences and College of Food, Agricultural, and Natural Resource Sciences are one of the handfuls of groups that are federally authorized to study cannabis. The researchers have argued they have "indisputable evidence" that hemp and marijuana should be separated, according to Mercola. "It's a plant of major economic importance that is very poorly understood scientifically. With this study, we have indisputable evidence for a genetic basis of differences among cannabis varieties, further challenging the position that all cannabis should be regulated as a drug," said George Weiblen, a professor with a joint appointment in the U of M's College of Biological Sciences and College of Food, Agricultural and Natural Resource Sciences.

Pressure BioSciences, Inc. (OTCQB: PBIO) announced earlier last month that it had, "released a new, short video demonstrating the ability of the Company's proprietary Ultra Shear Technology (UST™) platform to create water-soluble CBD oil that disperses instantly, resulting in improved dosing effectiveness, enhanced absorption, and more aesthetically-pleasing products when added to carbonated soft drinks, vitamin-infused sports drinks, and beer.

Link to video: https://www.youtube.com/watch?v=gAqFQmsGHcA

In addition to superior aesthetic quality, the Company believes the resulting low nanometer-scale emulsions ("nanoemulsions") of UST-processed CBD oil should also result in optimized and reproducible bodily absorption, bioavailability, and dosing safety for CBD oil and other UST-processed materials, when compared to many of the processed CBD oils and products that are commercially available today.

Mr. Edgar Ward, President and CEO of NutraLife Biosciences (OTCQB: NLBS), said: 'NutraLife manufactures and sells NUTRAHEMPCBD, a line of CBD-infused products that includes creams, sprays, and other products that support daily health and wellness uses. We strive to ensure that our CBD-infused products will always be of the highest quality possible; therefore, we are constantly looking for advanced technologies to continue to improve our manufacturing processes. After reviewing available data and PBI's videos, we believe methods like PBI's UST platform may enable us to offer products with superior quality and effectiveness.'

CBD is a non-psychoactive, oil-soluble compound extracted from the cannabis plant, and is typically marketed dissolved in plant oil. It has been widely reported to offer numerous health benefits from stress and anxiety relief, to decreased muscle, joint, cancer and other pain, reduced inflammation, and to nearly miraculous relief of persistent seizures. However, because CBD is an oil-based product, its ingestion typically results in poor absorption in water-based living systems. There has been enormous interest in the development of truly water-soluble CBD, to achieve efficient absorption and bioavailability from foods and beverages. The market for CBD beverages alone could achieve revenue of $260 million in just the U.S. by2022 (Bloomberg, September 27, 2018) and much more world-wide. Unfortunately, because of solubility issues, many CBD products on the market today contain an inefficient over-abundance of CBD and/or undesirable chemicals to improve and stabilize its solubility in water. PBI believes that all of these beverages and other CBD-based products could substantially benefit from PBI's Ultra Shear Technology platform, to achieve water solubility and stability from the physics of high-pressure shearing - rather than from dependency upon chemistry and reliance upon use of undesirable chemicals.

Dr. Brad Young, Chief Commercial Officer of PBI, commented: 'We are very pleased to now show (in this follow-up video) the ability of our proprietary UST platform to mix CBD oil in water and infuse carbonated soft drinks, vitamin-infused sport drinks, and beer. This latest video further highlights the power of our UST platform to make nanoemulsions and its potential to help nutraceutical and beverage manufacturers make high-quality, oil-based products. With such compelling results to rely on, and with numerous opportunities ahead of us, we intend to accelerate the development of our UST platform to better address what we believe are several multi-billion-dollar markets in nutraceuticals, cosmetics, and food & beverages.'

About Pressure BioSciences, Inc: Pressure BioSciences, Inc. (OTCQB: PBIO) is a leader in the development and sale of innovative, broadly enabling, pressure-based solutions for the worldwide life sciences industry. Our products are based on the unique properties of both constant (i.e., static) and alternating (i.e., pressure cycling technology, or PCT) hydrostatic pressure. PCT is a patented enabling technology platform that uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels to safely and reproducibly control bio-molecular interactions (e.g., cell lysis, biomolecule extraction). Our primary focus is in the development of high pressure-based products for biomarker and target discovery, drug design and development, biotherapeutics characterization and quality control, food science, soil & plant biology, forensics, and counter-bioterror applications. Additionally, we are actively expanding the use of our pressure-based technologies in the following areas: (1) the use of our recently acquired protein disaggregation and refolding technology from BaroFold, Inc. to allow entry into the biologics manufacturing and contract research services sector, and (2) the use of our recently-patented, scalable, high-efficiency, pressure-based Ultra Shear Technology (UST™) platform to (i) create stable nanoemulsions of otherwise immiscible fluids (e.g., oils and water) and to (ii) prepare higher quality, homogenized, extended shelf-life or room temperature stable low-acid liquid foods that cannot be effectively preserved using existing non-thermal technologies."

For our latest "Buzz on the Street" Show featuring Pressure BioSciences, Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=wwh_rr3s3h4

Pyxus International Inc. (NYSE: PYX) is a global agricultural company with 145 years' experience delivering value-added products and services to businesses and customers. Pyxus International, Inc. recently announced the opening of its affiliate, Criticality, LLC's, industrial hemp extraction and purification facility located in Wilson, North Carolina. The 55,000 sq. ft. state-of-the-art facility was unveiled during a ribbon cutting ceremony and grand opening event on March 12th. The facility is designed to follow good manufacturing practices and operate in compliance with dietary supplement standards. The hemp processed at the facility will be used to expertly craft and responsibly produce "Korent," Criticality's line of cannabidiol oil (CBD) products, as well as develop new products in its innovation pipeline. "Through our investment in Criticality—a North Carolina-based hemp processor—our goal is to become a leader in the production of CBD and related consumer products," said Pyxus President, Chief Executive Officer and Chairman Pieter Sikkel. "The opening of the facility is a critical step in achieving that goal and is a glimpse of what's to come in the future."

CannTrust Holdings Inc. (NYSE: CTST) (TSX: TRST) - a federally regulated licensed producer of medical and recreational cannabis - is leading the Canadian and global market in producing standardized cannabis products. CannTrust Holdings Inc. recently announced that it had shipped its standardized CBD oil capsules to Australia's Gold Coast University Hospital. The capsules will be used in a study to determine the efficacy of CannTrust CBD oil capsules in slowing the disease progression in patients with Amyotrophic Lateral Sclerosis (ALS) and Motor Neuron Disease (MND), which was first announced by the Company in July 2018. The capsules will be imported, stored and distributed by PharmaCann Pty Ltd. The shipment will include all investigational products that are required for the study. This study exemplifies CannTrust's focus on medical research and its dedication to uncovering the medicinal value of its proprietary cannabis products, and how they can improve health and well-being for all. In addition to assessing ALS disease progression, the study will also look at the effects of CannTrust CBD oil capsules on a variety of outcome measures related to ALS such as spasticity, pain, weight loss and quality of life. The CBD strain which will be used in the study was developed by CannTrust from its proprietary genetics, meaning that the research results will be specific to the Company's CBD oil. "With our medicinal cannabis experience and over 50,000 patients enrolled over the past five years, we continue to see the medical potential of the cannabis plant. We are committed to being international leaders in the generation of scientific evidence proving the medical benefits in treating a variety of indications. With hundreds of thousands of people living with ALS in Canada and globally, we continue to focus on improving peoples' lives around the world," says Peter Aceto, Chief Executive Officer of CannTrust. "We also thank PharmaCann for its expertise and assistance in importing our products to Australia, to make this study possible."

New Age Beverages Corporation (NASDAQ: NBEV) is a Colorado and Utah-based healthy beverage company dedicated to inspiring, educating consumers to live healthily. New Age Beverages Corporation recently announced the signing of an agreement to develop and distribute Marley branded cannabis-infused beverages. The first product to roll out in the Marley+CBD portfolio will be Marley+CBD Mellow Mood, relaxation drinks in 15.5 oz cans with 25 mg of pharmaceutical grade CBD per serving. Initial market rollout to customers will be in Colorado, Oregon, Washington, and Michigan where cannabis is legal for responsible adult consumption. This rollout gives New Age a significant first-mover advantage in the CBD space with a globally-recognized brand platform, and positions the venture well for further expansion as regulations permit. Michael Cunningham, Senior Vice President of Sales for New Age commented, "It makes my job a lot easier when I have retailers and distributors reaching out to me asking for specific products. From the moment the CBD movement began, I've been receiving calls nonstop asking when we'd be going to market with a Marley+CBDproduct. Retailers and distributors realize that it will be a long road for smaller CBD brands to gain traction and brand equity. Under the Marley brand platform, we are able to leverage a massive global brand with ties to healthy cannabis use, to ultimately grow a beverage brand beyond anything we have seen to-date."

Level Brands, Inc. (NYSE: LEVB) owns and operates the nationally recognized consumer cannabidiol (CBD) brand cbdMD, whose current products include CBD gummies, CBD tinctures, CBD topical, CBD bath bombs, CBD oils, and CBD pet products. cbdMD recently launched their CBD sleep aid, CBD PM, on Daylight Savings, just in time for World Sleep Day (March 15). It's estimated that 70 million people in the U.S. suffer from some form of sleeplessness. cbdMD presents a natural, non-habit-forming alternative. Working with the body's endocannabinoid system (ESC) – which helps to regulate vital, internal functions – CBD promotes recovery and overall wellness; that combined with the powerful benefits of melatonin, offer a solution for a restful night's sleep. "Analyzing the numbers, its staggering how many people struggle with sleep on a regular basis," said Caryn Dunayer, President of cbdMD. "Our CBD PM sleep aid promotes relaxation throughout the night, allowing you to – Sleep Naturally. Wake Refreshed."

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