CBG Spells Hope for Patients and Sales for Hemptown USA
Ash Stringer
July 15th, 2019
App, Exclusive, News, Top Story
Neurodegenerative diseases like Huntington’s and Parkinson’s come with grim prognoses, slowly debilitating a patient year after year with little doctors can do to slow, much less arrest, progression. Research is still in the early stages, but there is reason to be optimistic that a little known part of cannabis and hemp could one day provide some relief from these devastating diseases, as well as a bevy of other conditions and maladies.
Through groundbreaking work by companies like Hemptown USA, Spain’s Hemp Trading and Emerald Health Pharmaceuticals, this promising compound called CBG is becoming more prevalent for research and innovative products.
Cannabinoid Genesis
By now, most people have heard of the cannabinoids THC (tetrahydrocannabinol) and CBD (cannabidiol), the two most famous constituents of cannabis. THC is the cannabinoid responsible for the psychoactive high that is frequently associated with marijuana. CBD is a non-intoxicating cannabinoid that is undergoing extensive research to validate its links to a litany of health benefits ranging from reducing inflammation and anxiety to treating cancer.
Accredited? Click here to get more information on Hemptown USA’s pre-public financing.
CBD is also found in hemp, a variant of the cannabis sativa plant that, by definition, contains little to no (<0.3%) THC. The 2018 Farm Bill legalized industrial hemp in the U.S., which has created a pathway for legal research of cannabinoids found in hemp.
That’s the basics, but here is where things get interesting.
Part of the reason that THC and CBD are the most well known is because they are the most abundant out of more than 100 known cannabinoids. They share a common thread, though, in cannabigerol (CBG), the mother of all cannabinoids that is starting to receive some popularity for its medicinal possibilities.
Early in a cannabis plant’s growth cycle, CBG is the first cannabinoid produced. THC and CBD essentially start out as CBG, transformed into their final versions, along with other minority cannabinoids, through a series of complex biosynthesis processes. That leaves only small concentrations of CBG remaining, which explains in part why it has gone under-researched throughout the years even though it is believed to be valuable in treating Huntington’s Disease, Parkinson’s Disease, inflammation, infections, pain, nausea, glaucoma, cancer, insomnia and depression.
Endocannabin…what?
If you’re wondering about CBG and the connection to the body, look no further than the word “endocannabinoid.” It’s a combination of endogenous (produced naturally by the body) and cannabinoid. Cannabinoids were discovered in cannabis around 1940, but it wasn’t until 1992 that the endocannabinoid system was discovered. Indeed, it was just 27 years ago that scientists understood that the human body includes an endogenous cannabinoid system (ECS), a crucial part of maintaining homeostasis comprised of endocannabinoids, nervous system receptors that bond with endocannabinoids and cannabinoids and enzymes that break down both.
Accredited? Click here to get more information on Hemptown USA’s pre-public financing.
Without going into too much depth, the ECS is integral to every minute of life, operating with precision across the central and peripheral nervous systems to help the body regulate things like pain, temperature, inflammation, mood, sleep, appetite, digestion and much more.
Because this widespread neuromodulatory network can be stimulated with the introduction of hemp- and cannabis-derived cannabinoids, it is an obvious target for new therapeutic regimens, especially for treating conditions that already fall into the wheelhouse of the innate ECS.
Hemptown: The Name Says it All
If there is one company focused on being the go-to provider of CBG-rich hybrids, that company is the aptly named Hemptown USA, Inc. From its headquarters in the lush Emerald Triangle in southern Oregon, Hemptown presently farms 1,500 acres of hemp across its home state, Kentucky and Colorado. One-third of that acreage is dedicated to hemp seeds genetically modified to be high in CBG and CBD (cannabinoid content of up to 18%). By 2020, management plans to be cultivating 1,000 acres of its unique hemp from the fertile Oregon land that is to hemp what Napa Valley is to wine.
The company sees a great deal of symbiosis in medicinal benefits of CBD and CBG, especially when taken together. However, the business model to capitalize on the emergence of CBG is underscored by the fact that CBG commands about $20,000 per kilogram, compared to $4,000 for CBD.
Hemptown, which plans to go public later this year, hasn’t set the bar low for its milestones. The company believes that it will control 40% of total North American CBG supply by the end of 2019.
After drying and storing 110,000 pounds of hemp in 2018, Hemptown is projected to produce 3 million pounds (1 million pounds CBG, 2 million pounds CBD) in 2019 and generate $24 million in revenue. Looking forward, management is taking an aggressive stance for expansion, setting 2020’s revenue target at $204 million. While impressive growth, the company will still have plenty of headroom with the hemp-derived cannabinoid market expected to reach $22 billion by 2022.
Accredited? Click here to get more information on Hemptown USA’s pre-public financing.
With expectations for high CBG demand on the horizon, Hemptown certainly doesn’t intend to let CBG be a scarce commodity anymore.
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