At a high level, entrepreneurs seeking to invest in the cannabis businesses have two broad choices for making their investment: businesses that “touch the plant,” and those that don’t. The former category includes cultivation, dispensaries, transportation, retail outlets, testing and manufacture of cannabis infused products. Included in the latter category are businesses that deal with the cannabis industry in a peripheral manner, such as security, media and counseling services.D
Keeping up with the cascade of cannabis legislation and regulation at the federal, state and local levels affecting cannabis businesses can be daunting. Recent developments at the federal level include the 2018 Farm Bill, signed by the President last December, which legalized production of hemp with less than 0.3% THC. More recently, congress is working on passing the SAFE Banking Act, which would protect banks from criminal liability for providing financial services to legitimate cannabis businesses. The banking legislation is likely to have a significant impact on the legal cannabis market and its ability to raise and process funds. Read more.
CBD is the second most prevalent of the active ingredients of cannabis (marijuana). While CBD is an essential component of medical marijuana, it is derived directly from the hemp plant, which is a cousin of the marijuana plant. While CBD is a component of marijuana (one of hundreds), by itself it does not cause a “high.” According to a report from the World Health Organization, “In humans, CBD exhibits no effects indicative of any abuse or dependence potential…. To date, there is no evidence of public health related problems associated with the use of pure CBD.”
CBD has been touted for a wide variety of health issues, but the strongest scientific evidence is for its effectiveness in treating some of the cruelest childhood epilepsy syndromes, such as Dravet syndrome and Lennox-Gastaut syndrome (LGS), which typically don’t respond to antiseizure medications. In numerous studies, CBD was able to reduce the number of seizures, and in some cases it was able to stop them altogether. Read more.