Feb 06, 2020 (Stock Market Press via COMTEX) -- CBD and hemp regulations have improved, but they remain in flux and confusing for growing industry companies such as CBD Unlimited, Inc. (OTC PINK: EDXC). Late last month, the U.S. Department of Agriculture (USDA) lengthened its public comments period on new regulations -- but state level agencies cautioned that at least 30 states could be affected and forced to change laws and that could eventually hurt growth of this industry.
CBD growing rule changes by U.S. government agencies and retailing activity by state watchdogs have caught the eye of the press. These issues have help result in media companies such as stockmarketpress.com features coverage of CBD related stocks such as CBD Unlimited, Inc. (OTC PINK: EDXC), Supreme Cannabis Company /zigman2/quotes/203819708/delayed SPRWF -4.34% , Canopy Growth Corp. (NYSE: CGC), New Age Beverages Corp. (NASDAQ: NBEV), GW Pharmaceuticals PLC (NASDAQ: GWPH) and Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT).
CBD and hemp regulations are confusing for companies such as CBD Unlimited, Inc. (OTC PINK: EDXC)
In a letter from state from The National Association of State Departments of Agriculture (NASDA) to the USDA writes that flexibility is needed at the state level otherwise domestic hemp production could foster "exacerbate competitive differences between the states and hamper growth of the national industry". It further adds that, left unchanged, some 30 states will have to rewrite regulations to comply. The 2018 Farm Bill helped improve regulation activity, but more is needed, it said.
In contrast, CBD is legal nationwide in Canada and hemp growers, processors, dispensaries and CBD retailers must be licensed. Regulations there are straight forward, clear, and help organize and regulate a young industry for growers, CBD processors, suppliers and retailers. At the end of the day, the consumers is assured of quality, central governmental oversight and licensing vertically along every step of the way.
Last year, Todd Davis, CEO and Chairman of CBD Unlimited, Inc. (OTC PINK: EDXC), commented on the USDA activity. "These guidelines will help our community come together with a sense of certainty. As we look to 2020, demand levels for our products have increased exponentially this year and we expect continued escalation, and expanded distribution, both domestically and internationally."
Regulations Are Confusing For Companies Such As CBD Unlimited, Inc. (OTC PINK: EDXC)
In the U.S., CBD and hemp regulations are confusing for companies such as CBD Unlimited, Inc. (OTC PINK: EDXC). For example, in Florida a major supplier said it saw a 20% drop in CBD sales after the state's Department of Agriculture and Consumer Services began to oversee hemp-infused and CBD ingredients ingested by animals and humans.
Sensing this, some states such as California and perhaps New York are proposing to centralize all CBD related activities. That would include regulations and licenses for growers, suppliers, wholesalers, dispensaries and retailers alike. It would also simplify and centralize tax collection on CBD products. But until this centralization goes into effect, CBD and hemp regulations are confusing for companies such as CBD Unlimited, Inc. (OTC PINK: EDXC).
Despite all the confusion, firm CBD Unlimited, Inc. (OTC PINK: EDXC) is growing quickly, reporting an 88% boost in sales for the 12 months ended December 31, 2019 compared to the previous year. Last year, It surpassed its goal of gaining shelf space in greater than 5,000 mass retailers. Its product is located in big box stores, pharmacies, convenience stores and even bodegas.
Source: Stock Market Press
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