The cannabis industry has achieved some key milestones The cannabis industry has achieved some key milestones over the last decade, particularly because of key developments in medical marijuana. In the United States, 30 states have embraced medical cannabis while recreational marijuana continues to gain traction now closing on the 10thU.S. State. A section of the cannabis industry that could drive growth in the coming years is cannabidiol (CBD), which is among the most legalized products of the cannabis plant in the U.S. The rest of the world has also shown interest in cannabinoid medicinal products and this is promising for companies like Isodiol International (CSE: ISOL) (OTC: ISOLF) based in San Diego but began trading in Canada last year. The company sells CBD products derived from industrial hemp and posted sales of C$5.06 million (roughly $4 million US) for the quarter ending Sept. 30, 2017 and has since increased to C$5.95 million for the period ended December 31, 2017 with latest estimates pointing to C$7M for the quarter ending March 31, 2018. Many of the members of the management team left MJNA to join Isodiol. The company has been able to raise significant capital through the sale of equity, and it’s vertically integrated, using its own raw ingredients to develop and offer both consumer products as well as wholesaling to other pharmaceutical companies. Another small Canadian company, True Leaf Medicine International Ltd., operating in the country’s fast-emerging marijuana industry, plans to sell dog chews containing cannabis extracts. True Leaf already makes hemp-seed infused products for dogs to ease joint pain, anxiety and inflammation. It has raised capital through equity crowdfunding in the U.S. to build a marijuana production facility in British Columbia, eventually allowing it to extract cannabidiol (CBD) to treat medical conditions in both humans and animals. True Leaf introduced its hemp-based pet products in 2015 and now sells chews and oils in 1,600 North American stores and more than 300 locations across Europe. Natural supplements for pets are becoming more popular and the global market may be as large as $1.6 billion.
Bottom line: CBD from industrial hemp is taking off, but investing in the industry is challenging. A few companies that are doing things the right way in my view may be worth considering, but the others are too speculative for long-term investors.