- Farm Bill 2018, freeing up hemp, awaits President’s signature
- Makes CBD from compliant hemp legal
- DVLP set to benefit, with operations in CBD retail, wholesale and information services
Texas-based Golden Developing Solutions, Inc. (OTC: DVLP), along with the industry as a whole, seems set for a Christmas gift that will surely be welcomed. This past week, Congress passed the $867 billion Farm Bill, which, among other things, loosens restrictions on the cultivation and sale of hemp. Approved by the Senate on Tuesday, December 11, and by the House of Representatives on Wednesday, December 12, the legislation is expected to become law as soon as it is signed by the president, very likely before Christmas. Freeing hemp from prohibitive legal rules opens the way for further research into the plant’s possible nutritional and therapeutic virtues. As a result, DVLP expects demand for hemp-related products and services, like those it offers, to increase.
With the passage of the 2018 Farm Bill, the hemp industry is poised to escape from the doldrums. Hemp is derived from the cannabis sativa plant, differing mainly because it has a much lesser level of THC than marijuana. However, having a common origin with marijuana has meant that it has suffered the same opprobrium and prohibitions. The Marihuana Tax Act of 1937, for example, required every person who sold, dealt in, dispensed or gave away marihuana to register with the Internal Revenue Service and pay a special occupational tax; it made no exception for hemp. The Controlled Substances Act of 1970 retained and intensified the restrictive regime around hemp. By making only negligible distinction from marijuana, it criminalized hemp, labeling it as a Schedule I controlled substance, the most restricted category of drugs.
The Farm Bill reverses that provision, removing industrial hemp from the CSA’s definition of marijuana and, consequently, from Schedule I. In addition, it will allow commercial cultivation of hemp, provided that such cultivation is compliant with federal and state guidelines. Previously, only cultivation of hemp under the auspices of a state agricultural pilot program or for research purposes at an institution of higher education were permitted. The legislation does not, however, legalize CBD generally, but it does create an exception under which CBD and any cannabinoid can be produced legally. CBD produced from hemp will be legal “if and only if that hemp is produced in a manner consistent with the Farm Bill, associated federal regulations, association state regulations, and by a licensed grower.” Importantly, the hemp must contain no more than 0.3 percent THC (http://nnw.fm/Ftk5y).
Golden Developing Solutions is poised to benefit from these developments. The company has two distinct operations; the first is an ecommerce and wholesale CBD business. This sphere of operations includes a joint venture, Pura Vida, which recently launched a direct-to-consumer website (www.PuraVidaVitamins.com) and commenced sales of Pura Vida-branded products. Branded merchandise includes hemp and CBD-related products and other products focusing on health and lifestyle. DVLP is also developing a CBD aggregator site, www.WheresCBD.com, which will allow consumers to access multiple brands and gather info on CBD and its many uses. In addition, the company is planning to develop a branded line of CBD beauty products and a beverage division.
The other main theater of DVLP operations revolves around www.WheresWeed.com. DVLP recently acquired Layer Six Media LLC (DBA ‘Where’s Weed’) and its online portal. The acquisition will allow DVLP to interact socially with the cannabis community, keeping the company in touch with current and emerging trends. ‘Where’s Weed’ is a rapidly growing, community-based online resource for cannabis consumers with a host of user-friendly services, including a sophisticated mobile app. Presently, it enjoys three million page views per month. The portal provides a directory of cannabis establishments in 49 states, Puerto Rico and Washington, DC, allowing consumers to conduct searches on dispensaries and cannabis retailers. The mobile app, available on both iOS and Android, has been downloaded over 80,000 times to date.
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