CBD Innovator, HempFusion, Makes Successful Debut on TSX
January 13th, 2021
App, Exclusive, News, Top Story
HempFusion Wellness Inc. (TSX: CBD-U) shares soared over 65% following their successful debut on the Toronto Stock Exchange (TSX) on Wednesday, January 6, 2021.
Cannabidiol, or CBD, has become one of the most popular health and wellness products in the world over the past couple of years. According to Research and Markets, the global CBD market will grow at 25.6% to $123.2 billion by 2027, driven by growing buyer awareness and regulatory support over the past several years.
While the market has become saturated with thousands of brands, HempFusion’s focus on compliance may set it apart from the competition. The company combined DNA-verified organic industrial hemp sourced from European farms with its regulatory expertise to launch FDA OTC Drug Listed topicals capable of making certain health claims.
HempFusion already has products available in mainstream retailers, including Sprouts Farmers Markets, Whole Foods, and the Vitamin Shoppe, as well as online and through Amazon.com. The company has plans to target expansion and distribution to over 10,000 retail locations, including mass-market (FDM) retail, convenience channels, and doctor/practitioner networks complemented by a robust focus on ecommerce and Amazon online expansion.
Moving Toward Regulation
Cannabis and hemp have a checkered past when it comes to government regulations, but most in the industry acknowledge the need for regulations. In addition to improving consumer safety and trust, official regulations could replace the patchwork of confusing rules surrounding hemp, including the DEA’s classification system.
That said, the Food and Drug Administration (FDA) has recognized the potential opportunities that cannabis and cannabis-derived compounds may offer and acknowledged significant interest in those possibilities. The agency has been increasingly receptive to working with the industry but requires more data before it can provide broader guidance.
The CBD industry has been working to address many of the agency’s concerns. For instance, HempFusion recently teamed up with ValidCare as a co-sponsor and co-funding, with a handful of other CBD companies to participate in what is believed to be the largest human observational industry-wide study measuring the effects of full-spectrum hemp-derived CBD and CBD isolate on the liver—a large toxicity concern for the FDA and other regulators.
“We are very proud to be co-funding / co-sponsoring this wide-scale human toxicology study” commented Co-Founder and CEO of HempFusion Jason Mitchell, N.D…..” and we believe that it is our responsibility as companies selling products that contain CBD, to show that it is safe.”
The impact of these regulations is likely to vary between companies. For instance, compliance-focused companies like HempFusion may be better positioned to benefit from the new rules whereas less scrupulous companies could suffer from a crackdown on unsafe or low-quality products that could undermine consumer confidence.
Investors Seek Exposure
HempFusion’s successful debut on the TSX underscores the investor interest in CBD companies and follows the success of Charlotte’s Web Holdings Inc. (TSX: CWEB)—which has risen about 30% since the beginning of the year—and other established companies in the space. These trends don’t appear ready to reverse as consumer interest in CBD continues to grow.
HempFusion believes it is well-positioned to continue its growth over the coming quarters with a focus on building out its retail and distribution footprint. With a unique competitive advantage over generic products, the company could have durable margins as the industry continues to grow and ultimately benefit when the FDA releases formal industry guidelines.
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/
CannabisFN.com and CFN Media, have been hired by HempFusion to create awareness.
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