How Cannabis Businesses Can Expand into Cannabis Oil
January 9th, 2019
Branching out into cannabis oil is a good idea, whether you’re starting from scratch or expanding an existing product line. Sure, big-name companies like Canopy Growth Corp., Tilray and Cronos Group are dominating the legal weed market in many aspects, but this doesn’t mean that a small-scale cannabis oil business can’t reap rather generous rewards from getting involved in the nascent industry.
The numbers indicate strong potential from a business point of view, with analysts at the Brightfield Group estimating that the hemp-CBD market alone could top $22 billion by 2022. Since CBD-rich cannabis oil can be derived from both the cannabis and hemp plants – not to mention the fact that the 2018 Hemp Farm Bill was recently passed – small business owners have the option of creating potent oils from either plant.
Why cannabis oil?
The oil that can be extracted from the cannabis plant is suitable for a broad scope of therapeutic treatments. Scientific research has taught us how the natural substance may have anti-tumor, anti-cancer and anti-inflammatory effects. Moreover, the primary cannabinoids contained in cannabis – CBD (cannabidiol) and THC (tetrahydrocannabinol) – leave the healthy cells intact, while they work on attacking the cancerous ones.
Aside from its growing use in cancer care, cannabis oil may also be used to treat insomnia, headache, muscle pain, glaucoma, anxiety and arthritis. A highly potent oil that is rich in the psychoactive compound THC may induce a “high”, whereas non-psychotropic CBD oil will not. Hemp grows with no more than 0.3% THC, making it ideal for creating CBD oil.
Vaporizing Cannabis Oil for Health Benefits
Ongoing praise for pot’s medicinal potential has helped the plant to gain more support from the general public; something that is having a direct effect on consumers and, consequently, the consumer demographic. A significant chunk of this expanding demographic includes “vapers” – the modern definition for someone who inhales CBD or THC-rich vapor using a vaporizer device.
Vaporizer devices ensure fast effects and better bioavailability of cannabinoids, with a recent study by California NORML demonstrating how these handheld gadgets can convert 46% of the available THC contained in dry plant matter into vapor. Compare this to the 25% THC that is delivered with a typical cannabis-tobacco cigarette, A.K.A. a “joint”, and it is clear why vaping is so popular among consumers.
Once inhaled, the vapor is delivered to the lungs, where cannabinoids are absorbed through the alveoli before entering the bloodstream.Cannabis oil can also be infused into a plethora of other products, therefore a small scale business will not be limited to the cannabis-vaping demographic.
Steps for small-scale cannabis oil production:
After obtaining incorporation, business licenses and EIN/TIN for your new cannabis oil business, (as well as having brushed up on your science about the plant), take the following steps:
- Understanding and Complying with Local Laws/Regulations– Exceeding the 0.3% THC threshold is a federal offence, since cannabis products containing more than this amount are still illegal under federal law. Sidestep potential pitfalls by using industrial hemp to produce hemp-extracted CBD products, rather than cannabis. Making THC-rich oil? Double-check the local laws and regulations in your specific jurisdiction prior to doing so. Each state’s set laws may differ, but they will be inclusive of transparent packaging and dosing regulations.
- Seek out the best suppliers – Next, it’s time to find a supply of hemp that can be used make federally legal CBD oil. Distributors and resellers ought to find a reputable wholesaler of hemp plants or alternatively, cannabis oils, (should you be thinking about avoiding the actual extraction process.) Standard practices, the equipment and raw materials used by a hemp cultivator must be in accordance with state regulations. Remember to obtain a certificate of analysis (COA) report, which will validate the exact purities, cannabinoid percentages, etc.
- Extract Cannabinoids from the Plant Matter –If you’re not buying cannabis oil in bulk from a supplier, you’ll have the option to make it yourself. A low-cost (albeit time-consuming) way to do this is by soaking the plant’s buds in a solvent or alcohol, before straining and collecting the remaining extract with a tool. Commonly used solvents include acetone, ethanol (alcohol) and isopropyl (IPO).
- Upgrading to a Hi-Flow Extraction System (CO2) – As your cannabis oil business starts to grow, larger quantities of extract can be churned out using a state-of-the-art system, like a Hi-Flow Extraction System (CO2). These high-tech machines are maintenance-free and utilize minimal energy with silent operation, making them ideal for a business that is rapidly expanding. CO2 extractionuses pressurized carbon dioxide to draw phytochemicals from the plant matter.
2018 Farm Bill Presents Opportunity to Make Cannabis Oil
An important bill was passed by the Senate on the 11th day of December, last year. On the following day, the House also passed the bill, which was titled the “Agriculture Improvement Act of 2018,” better known as the “2018 Hemp Farm Bill”.
Numerous expenditures that were included in the Agricultural Act of 2014were reauthorized under the passing of the bill. The amended bill was valued at $867 billion and was frontedby Senate Majority Leader Mitch McConnell. Its significance for the hemp-derived cannabis oil industry is huge, since it means that the term “marihuana” (included in the 1972 Controlled Substances Act) no longer includes hemp.
Quite rightly so, too. Hemp contains mere traces of THC and therefore will not produce psychoactive effects. As an increasing number of farmers gain permission to cultivate hemp across the U.S., more “cannapreneurs” will be capable of building a cannabis oil business in the foreseeable future.
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.