AGORACOM Small-cap Investor Relations Blog

SPONSOR:  PRIMO NUTRACEUTICALS INC. (CSE: PRMO) (OTC: BUGVF) (FSE: 8BV) (DEU: 8BV) (MUN: 8BV) (STU: 8BV) provides strategic capital to the thriving cannabis cultivation sector through ownership and development of commercial real estate properties. The company also offers fully built out turnkey facilities equipped with state-of-the-art growing infrastructure to cannabis growers and processors. Click here for more info.

What’s the difference between CBD derived from hemp and cannabis?

By: Emma Ston

• What’s in a name? When it comes to CBD products derived from hemp, CBD products derived from cannabis, and what’s considered legal, a lot.
• Understanding cannabis nomenclature and the chemical difference between the two plants is essential to making informed choices about CBD.

Cannabis refers to a genus of plants which has three species: indica, sativa, and ruderalis. Hemp is not a different species of the cannabis plant. The above classifications have been devised to differentiate intoxicating cannabis from non-intoxicating cannabis. Hemp is a sativa species, while cannabis can be sativa, indica, or ruderalis.

Although hemp and cannabis look (sort of) similar, from a functional and chemical perspective, they are distinctive. Here’s how you can distinguish the two.

(Leafly)

Hemp:

• In order to be federally legal, it must contain 0.3% THC or less. For the uninitiated, THC is the cannabinoid that causes a high. With so little THC, hemp doesn’t have intoxicating effects.
• Can be used to create products such as textiles, building materials, industrial products, paper, foods, and body care.
• Is typically grown outdoors to maximize the size and yield of the plant. Hemp doesn’t require the same rigorous attention to lighting, humidity, and temperature that cannabis requires, and it can be grown in a range of different climates.
• Tends to be tall and skinny with skimpy foliage, having an appearance similar to bamboo.

Cannabis:

• Can contain 0.3% THC or more. Some high-THC strains can have 30% THC or more.
• Is used for recreational or medicinal purposes. You won’t find cannabis plants being used to create hempcrete or denim.
• Is generally grown in carefully managed and controlled conditions. Photoperiodic cannabis requires precise exposure to light in order to flower—its buds contain the valuable, potent compounds cannabis is famed for.
• Tends to appear bushy, with large, full foliage.

Here’s the tricky thing: Both cannabis and hemp produce CBD. The CBD molecule is identical regardless of its cannabis source. However, from a legal perspective, CBD products derived from hemp and CBD products derived from cannabis are entirely different.

Hemp-derived CBD and cannabis-derived CBD: A legal perspective

According to federal law, cannabis—with 0.3% THC content or higher—is classified by the DEA as a Schedule I drug with no accepted medical use. CBD products sourced from cannabis, even those with 0% THC, are illegal at a federal level by virtue of their plant origin. Here’s the tricky thing: Both cannabis and hemp produce CBD. The CBD molecule is identical regardless of its cannabis source.

However, at a state level, the law changes. There are 33 US states which have medical cannabis programs, and CBD derived from cannabis is available from a licensed dispensary to eligible patients. The recreational use of cannabis is also legal in 11 states. In these states, cannabis-derived CBD products are available to those of age.

Industrial hemp, on the other hand, is no longer considered a Schedule I controlled drug. Following the 2018 farm bill, hemp was reclassified as an agricultural commodity. Since then, there has been an explosion of CBD products onto the market, prompting the U.S. Food and Drug Administration (FDA) to issue a statement that a regulatory framework for CBD products is still in the pipeline, and foods containing CBD, dietary supplements, and products making health claims are considered illegal.

CBD products sourced from hemp, such as oils and tinctures, are legal at a federal level, so long as they conform with other applicable laws. That said, certain states have their own legislation and regulations regarding CBD oil.

If you want to purchase CBD and err on the right side of the law, verify the legal status of hemp-derived CBD and cannabis-derived CBD in your state, so you know what you can or can’t purchase. Generally, hemp-derived CBD represents the more legal option.

Other differences between hemp-derived CBD and cannabis-derived CBD

CBD concentration

Cannabis represents a richer source of cannabinoids and terpenes than industrial hemp because it contains significantly more resin. Resin is the sticky, gooey substance found on female cannabis flowers, and to a lesser extent, on its leaves. Hemp contains resin on the flowers and leaves too, but much less. Most industrial hemp cultivators need to grow large quantities of hemp to produce CBD oil, although there are now more CBD-rich hemp strains being cultivated.

Safety

Hemp is a bioaccumulator, so it can absorb toxins such as residual pesticides and heavy metals from soil. When CBD is extracted from large quantities of industrial hemp cultivated in non-organic conditions, there is a possibility that contaminant residue will be passed into the final product. CBD products sourced from tainted hemp can compromise safety and efficacy.

Regulation

The hemp-derived CBD market is not yet subject to a widely enforced regulatory framework. For this reason, it’s essential to do your homework when buying hemp-derived CBD.

Look out for hemp-derived CBD that has been third-party tested. Products that have undergone this have been checked by an independent group outside of the producer using industry-approved techniques. The tester verifies the cannabinoid content of the product, along with heavy metals, pesticides, or microbes. Related

How to read a CBD label

A hemp-derived CBD product that has been third-party tested also guarantees you are getting what you paid for. Leafly’s investigation on CBD tested 47 products and found that almost half of them didn’t come within 20% of the labeled dosage. Third party testing confirms that the promised CBD content is present.

You can also look for hemp-derived CBD products with a USDA organic certification. This affirms that the growing conditions meet official USDA organic standards, and also provides assurance that the hemp extraction process was free of synthetic chemical additives.

In states where cannabis-derived CBD products are available from licensed dispensaries, there is greater regulation of these products. All are subjected to stringent testing from licensed facilities.

Effectiveness

Cannabis tends to have a wider terpene and cannabinoid profile than hemp. Cannabis-derived CBD from whole plant extract contains a range of beneficial terpenes and cannabinoids, including THC. These compounds work in concert with each other to provide additional benefits. This phenomenon is known as the entourage effect, and many cannabis experts assert that whole plant extracts offer greater therapeutic potential.

Hemp also contains some cannabinoids and terpenes, but not the range nor concentration of compounds present in cannabis. Hemp-derived CBD can be made into an full-spectrum extract that offers natural terpenes alongside minor cannabinoids. Broad-spectrum CBD is also available and contains minor cannabinoids and terpenes, but without the THC content.

However, full-spectrum and broad-spectrum hemp-derived CBD products may not have the potency of CBD derived from cannabis because trace amounts of THC appear to be less effective in treating certain symptoms.

CBD isolate

CBD can also be extracted from both hemp and cannabis to become an isolate. Isolates are identical whether derived from hemp or cannabis because they only contain CBD molecules. As there is more CBD in cannabis than hemp, it requires more hemp by dry weight to produce the same amount of CBD isolate.

CBD isolate is most commonly used in clinical trials to prove that results are linked to CBD rather than other compounds from either plant that may be present. Isolates may also be favored by those who wish to avoid THC entirely.

Source: https://www.leafly.com/news/cbd/hemp-vs-cannabis-derived-cbd-whats-the-difference

SPONSOR:  PRIMO NUTRACEUTICALS INC. (CSE: PRMO) (OTC: BUGVF) (FSE: 8BV) (DEU: 8BV) (MUN: 8BV) (STU: 8BV) provides strategic capital to the thriving cannabis cultivation sector through ownership and development of commercial real estate properties. The company also offers fully built out turnkey facilities equipped with state-of-the-art growing infrastructure to cannabis growers and processors. Click here for more info.

Feds Finally Crafting National CBD Rules

• After years of states passing their own rules concerning cannabidiol – more commonly known as CBD – the federal government is now quietly taking the first steps to regulate it.

By: Louis Biscotti

Photo: Sven Hoppe/dpa (Photo by Sven Hoppe/picture alliance via Getty Images) dpa/picture alliance via Getty Images

The F&B industry is ahead of them: You can already get CBD in gummies, oils, lotions and juices, and Arizona Iced Tea and Ben and Jerry’s have been testing it. But as states moved to regulate, the federal government sat on the sidelines, leaving CBD in legal limbo.  That began to change a couple of weeks ago in what could be the beginning of the biggest change for the CBD market since the Farm Bill of 2018 ended classifying hemp and products derived from it as controlled substances.

The United States Department of Agriculture (USDA) in late October published its interim final rules for domestic hemp production in the Federal Register, including rules regarding CBD, a product of hemp. How big a deal could this be? Think about the end of Prohibition. The federal government is finally creating standards that could help create a national marketplace. That could help move CBD from the margins to the mainstream, adding security, safety and consistency to manufacturing.

The proposed rules come as sales of CBD are expected to reach $13 billion this year, even as federal law tries to catch up with demand. CBD is getting too big to be ignored, and lack of reliable information and uniform regulation adds to confusion. The feds are finally arriving on the scene (let’s not call it a party) with the structure that’s needed.

The new rules would include federal aid for hemp farmers and could help ease access to insurance and loans, leading to bigger supply and more financing. There are also tough provisions, which could be good for consumers and companies, but will add costs for manufacturers and others in the supply chain. Hemp samples, for instance, would have to be delivered to DEA-certified labs 15 days before harvest and certified.

The USDA, however, is only the first federal agency to lay its hands on hemp and CBD. The Food & Drug Administration (FDA), which approved seizure drug Epidolex containing CBD, classifies it as an active ingredient in medications – which it regulates. The agency in late October said it’s continuing “to explore potential pathways for various types of CBD products to be lawfully marketed.” Manufacturing isn’t currently subject to FDA review. The USDA’s actions could help change that. The Grocery Manufacturers Association, for instance, is pushing for the FDA to issue final CBD rules instead of allowing “a maze of inconsistent, and often contradictory, state and local regulations” that can lead to a “regulatory mess.”

The USDA has also begun to regulate THC, the psychoactive ingredient in hemp sometimes included with CBD. The USDA indicates that, potentially, hemp could contain up to 0.3 percent THC or tetrahydrocannabinol, the limit in Canada and many other countries. The FDA is likely to fall in line with that as CBD becomes more common.

CBD’s popularity comes with often-exaggerated claims; some people look at it as a cure-all. That also could change with regulation. The FDA already issued warnings to companies making medical claims. As the feds begin to regulate CBD, some misinformation may vanish from marketing, which could lower sales, as the market sorts itself out, “weeding out” certain companies as others grow.

Money is already flowing into companies working with CBD. Altria, parent of cigarette giant Philip Morris, poured $1.8 billion into cannabis company Cronos Group. Beer distributors and Arizona Iced Tea are infusing drinks with CBD, hoping to experience (puns are just too easy here) higher sales. As the market for CBD continues to expand, it’s only a matter of time before CBD gets what the Grocery Manufacturers Association wished for: federal regulation.

While most industries dread regulation, it could prove essential for CBD to truly take off in food and beverage, providing safety to consumers and security for producers. The USDA has stepped off the sidelines, and the FDA is talking about stepping in. It looks like federal rules may finally be arriving, bringing standards and — get ready — red tape (which means compliance costs)  in a trade-off for quality control, consumer protection, and growth prospects. It’s starting to look like a national marketplace for CBD may no longer be a pipe dream.

Source: https://www.forbes.com/sites/louisbiscotti/2019/11/15/feds-finally-crafting-national-cbd-rules/#7a79898f1b89

• Signed a lease agreement with Aqua Farming Tech, Inc. (Aqua Farming Tech) to grow certified organic sun-grown hemp on an aggregate 20 acre plot of land from Aqua Farming Tech‘s southern California property located near Palm Springs

VANCOUVER, British Columbia, Nov. 12, 2019  — PRIMO NUTRACEUTICALS INC. (CSE: PRMO) (OTC: BUGVF) (FSE: 8BV) (DEU: 8BV) (MUN: 8BV) (STU: 8BV) (“Primo” or the “Company”)is pleased to announce that it has signed a lease agreement with Aqua Farming Tech, Inc. (Aqua Farming Tech) to grow certified organic sun-grown hemp on an aggregate 20 acre plot of land from Aqua Farming Tech‘s southern California property located near Palm Springs.

About Aqua Farming Tech Inc.

Aqua Farming Tech has been farming Tilapia in the Coachella Valley Since 1993, conducted from two farms encompassing 120 acres located in Southern California, making them the leader in sustainability produced premium quality aquaculture (Telapia), agriculture (Moringa) and premium brands in the health and wellness industry.  

With two decades of experience in “Aqua” farming technology and excellent distribution relationships in Los Angeles, San Francisco and San Diego markets, the Company’s core business is the production of sustainability raised Tilapia (Aquaculture) and Moringa (Agriculture) on a farm located in California’s prolific Coachella Valley 150 miles from Los Angeles.

Aqua Farming tech has been at the forefront of developing and implementing the most advanced, sustainable, ecologically sound methods of producing clean, quality seafood in California. Aqua Farming tech was the first farm with more than 60 cement tanks built above ground, the first farm to utilize a mechanical aerator to improve the oxygenation of its water, the first farm to develop and implement a method of recycling its water, the first farm to generate a significant percentage of its power from solar power and the first farm to manufacture its own feed.   

Primo’s Self-Sufficient and Sustainable way to grow Hemp All Year Round

Primo intends to leverage Aqua Farming Tech’s success in aquaculture and agriculture by utilizing its already established resource and infrastructure in place. Primo will be able to capitalize on the sustainable features of the Aqua Farming Tech operations which include:

• Any electricity used will be generated by solar power
• The 20 Acre plot has a water drip system already in place located in the N.E corner of the 120 acre farm
• Nutrient dense “fish feed” comes from algae and moringa organically grown on site
• The water used to raise the fish is re-circulated through ponds that contain plants which clean the water for re-use
• The nutrient rich fish pond water used to irrigate the moringa crops will also be used to water the 20 acre hemp farm
• This in-turn will make our product “Certified Organic Hemp”

This lease agreement combines Primo’s hemp growing experience in Oregon and the prime California outdoor cultivation location will allow the company to grow all year round with the potential to harvest three crops a year using Aqua Farming Tech’s Self-Sufficient Sustainable growing technology in aquaculture and agriculture operations.

President, Andy Jagpal Comments:

“We’ve been seeking to enter the California cannabis market for some time now. California is the leader in cannabis consumption and finding the right partner to work with is a critical first step. We are so lucky to be working alongside an industry leader like Aqua Farming Tech. By leveraging Aqua Farming Tech self-sustaining infrastructure and resources allows our Company to enter this massive California market with little to less start-up capital required if we were to do it alone. The end result of this relationship will be to produce a CBD oil sold as Certified Organic.”

Primo expects to produce over 25,000 lbs of dried hemp biomass from the 20 acre parcel per harvest three times per year. Future phases of the lease agreement will explore the potential of further expanding the outdoor hemp production beyond the current 20-acre site, through the option of another 80 acre site nearby in Coachella Valley California. The execution of all phases will allow Primo to develop into a large outdoor organic hemp cultivator in California State.

About Primo Nutraceuticals, Inc.

Primo Nutraceuticals Inc. (“Primo” or the “Company”) provides strategic capital to the thriving cannabis cultivation sector through ownership and development of commercial real estate and farm friendly properties. Primo is dedicated to funding the rapid growth in production, processing, retail and branding of cannabis and cannabis related products in Canada and the United States. Primo provides fully built out turnkey facilities equipped with state-of-the-art growing infrastructure to cannabis growers and processors. In addition to the Company’s flagship hemp project in Oregon State and the Greenhouse campus in Washington State, Primo has invested in several brands and is pursuing partnerships with retailers and distribution companies in Canada and the United States. Primo’s management is in the process of building a corporate road map to further vertically integrate the Company, specifically by way of “Primo” branded retail outlets – offering “Thrive,” “Primo,” and a selection of curated partner brands. The Company possesses proprietary formulas for cannabis edibles, topical, and tinctures. Primo is focused on building a strong presence in the hemp industry with the objective of extracting and selling cannabinoids (CBD) products in both Canada and the United States.

On behalf of the Board of Directors

PRIMO NUTRACEUTICALS INC.

Andy Jagpal, President and Director

To learn more about what this news means to the shareholders visit https://marketnewsfirst.com/primo-nutraceuticals, as well as on the company’s site.

For further information, please contact Zoltan, IR Representative at: 604-722-0305 [email protected]. Or toll free at 1-877-517-7816.

http://primoceuticals.com/
https://twitter.com/prmonutra
www.thriveCBD.org

FORWARD LOOKING STATEMENTS: This news release contains certain forward-looking statements within the meaning of Canadian securities laws. Forward-looking statements are based on the expectations and opinions of the Company’s management on the date the statements are made. The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

No regulatory authority has approved or disapproved the information contained in this news release.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/42ffb0f1-f39d-4bc2-9a08-bfc2f39819c8

Aerial View of 120 Acre Farm

Aerial View of 120 Acre Farm