24/7 Market News: Cannabis and CBD Stocks Enjoying the Summer Growing Season Read more:

24/7 Market News: Cannabis and CBD Stocks Enjoying the Summer Growing Season Read more:

DENVER, CO / ACCESSWIRE / June 12, 2019 /
 Not only does “Sell in May and go away” make sense for the large group of investors who prefer to get away from the computer screen, by taking the family for a beach getaway, it coincides with the fact that many sectors tend to have slower summer news cycles.

Of course, like most rules, there are exceptions and, in this case, summer is often prime time for home improvement retailers and some hospitality providers. If the first third of June is an indication, the Hemp, Cannabis and Cannabidiol (CBD) sectors may become a summer stronghold.

From the FDA’s hearings on cannabis and its ingredients, to several key business model developments; it looks like the light just turned green on what shaping up to be the most active summer, yet, in the Hemp, Cannabis and CBD space.

One of the biggest drivers may be on the banking regulatory front, as separate efforts from the State of California and on the federal level are looking to resolve the banking dilemma that has hampered the industry.

Despite its 206 co-sponsors, the Secure and Fair Enforcement (SAFE) Banking Act is not a done deal, but it’s looking more likely, by the day, and is moving towards a full floor vote, after it was placed on the Union Calendar, as reported by the advocacy site, Marijuana Moment. The SAFE Banking Act is designed to protect banks that serve cannabis companies from federal law enforcement action.

Access to banking services should help facilitate additional retail sales, which will likely expand merger, acquisition and strategic partnership activity that is becoming more popular in the space.

On the analyst side, Bank of America Merrill Lynch elevated Cronos Group by two grades, from “Underperform” to “Buy”, with analyst Christopher Carey raising his 12-month price target by more than 50%, from $13 to $20. The rare near complete reversal is based on the belief that Cronos will soon enter into the U.S. CBD market.

Although Iconic Brands (OTCQB:ICNB) is better known for its celebrity branded drinks, like Christy Brinkley’s Bellissima Procecco, and its private labeled beverages, like Hooters Spirits, it made a major move in hemp specific CBD space.

Green Grow Farms, an Iconic Brands operating subsidiary was granted a New York State hemp growers license. Under the Hemp Research Pilot Program, Green Grow Farms can grow industrial hemp for grain, flower and CBD, which is to be processed by Lilu’s Garden, one of the largest vertical Hemp processors in the world. The 2-year, initial, agreement allows for a minimum of 2 million pounds of biomass to be processed to CBD isolate and sold under a revenue sharing agreement. With average CBD percentage and processing efficiency rates from Green Grow’s farming operations, two million pounds should process into approximately 40,000 kilograms of CBD Isolate.

Similarly, Tilray, which farms out extraction, distillation, cannabinoid isolation and purification services to Valens GroWorks, recently announced that the two companies plan on growing their extraction agreement by 400%, from the original 15,000 kilograms at least 60,000 kilos per year of cannabis and hemp biomass.

Read more: http://www.digitaljournal.com/pr/4342577#ixzz5qeEjE8bL