Industrial hemp is legal in all 50 states, and companies are working to bring CBD, insulation, textiles, and biofuel to the masses. These three companies hope their partnership will help connect growers and buyers.
Vancouver-based blockchain applications company Global Compliance Applications Corp. (APP: CSE; FUAPF: OTCQB; 2FA: FSA) has partnered with two other companies to provide affordable ways for growers to connect with customers in the growing hemp industry.
GCAC’s Efixii app and blockchain allow farmers to get feedback from buyers and offer them digital rewards in return.
Since 2018, hemp, a species of cannabis that contains only traces of the mind-altering substance THC, has been legal in the United States. It’s used to make everything from CBD to animal bedding, insulation, textiles and biofuels, and the market is set to expand eightfold over the next five years.
The herd of companies wanting to be part of the rush has thinned, leaving the strongest companies in control of the field, said Jim Higdon, co-founder of Cornbread Hemp and author of “The Cornbread Mafia,” about the nation’s largest syndicate of marijuana in American history.
“It’s a very good investment opportunity because the market is almost certain to grow,” Higdon said. “And the players who have the capacity to grow in this market are fewer than two years ago.”
“It’s a very good investment opportunity because the market is almost certain to grow,” Higdon said. “And the players who have the capacity to grow in this market are fewer than two years ago.”
GCAC has partnered with ThingBlu Inc., a software-as-a-service agricultural solution based in Washington state, and B&M Products and Services LLP, an Indiana company that contracts with industrial hemp growers and processors.
According to a report by The Insight Partners, the CBD market is expected to grow from $2.42 billion in 2021 to $15.66 billion in 2028.
GCAC and ThingBlu provide the application and business solutions, and B&M connects them with producers.
To use an example in another agricultural industry, a cafe using the application may have a direct relationship with the end consumer. Using a QR code, the grower can provide a story about the product that is available to anyone with the app and a smartphone: where it was grown, its genetic makeup, and feedback from other consumers. The consumer can share feedback and earn rewards from the producer, such as a non-fungible token (NFT).
The program records these things along the way, every step from genetics to planting, from harvest to distribution.
“This coffee now has a direct relationship with the end consumer,” GCAC CEO Brad Moore told Streetwise Reports. “You’ve given small and medium-sized businesses a marketing tool they’ve never had access to. You’ve connected them directly to consumers.”
The catalyst
Markets are opening up as attitudes towards cannabis continue to change. The President of the United States, Joe Biden, recently pardoned thousands of people charged with simple possession of marijuana at the federal level.
And another non-psychoactive substance in hemp, cannabidiol (CBD), is used for skin care, anxiety, seizures and pain management. According to a report by The Insight Partners, the CBD market is expected to grow from $2.42 billion in 2021 to $15.66 billion in 2028.
“The growth of the CBD oil market is mainly attributed to the increasing legalization of CBD oil products, the growing awareness of the medicinal use of CBD products, and the growing preference for the ‘cannabis oil extraction,’ the report said. “However, strict government regulations and the high price of commercially available CBD oil products are hindering the market.”
Some predict there will be 9 million acres of land-grown industrial hemp by 2030, and the global market for industrial hemp could grow to $36 billion by 2026.
Connection through the block chain
The blockchain that Efixii works on is an electronic distributed ledger system where no single entity, such as a bank, is in control. Blockchains are best known for their role in cryptocurrency systems, but can be used for any database, such as agricultural records and customer interactions.
GCAC launched Efixii in 2020 with its own blockchain. It has the ability to create NFT.
Moore believes that many everyday electronic items will be consolidated onto the blockchain eventually, like all your store rewards programs and other physical cards you might have in your wallet or hanging from your keychain right now.
“I guarantee that in five to seven years everyone will have a single sign-on,” Moore said. “It’s a simpler experience.”
For hemp growers and their customers, it will allow them to connect directly, even when there are other intermediaries involved in the transactions.
“As someone who grew up in agriculture, I know that agriculture has very tight margins,” said Kevin Gorman, CEO of ThingBlu. “With the rise of the industrial hemp market, ThingBlu’s SaaS (Software as a Service) software analysis of collected workflow and sensor data can play an important role in the viability of a hemp farmer. On the blockchain, it’s unbeatable.”
Ownership structure and shares
Major GCAC shareholders include CFO and director Alexander Helmel with 2.57% or 5.29 million shares, CEO Moore with 2.54% or 5.25 million shares, Hanan Gelbendorf with a 0.81% or 1.67 million shares and director Jeffrey Hayzlett with 0.08% or 0.16 million shares. .
The company has a market capitalization of CA$3.99 billion, with 206.2 million shares outstanding, 193.9 million of which are floating. It is trading in a 52-week range of C$0.075 and C$0.02.
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1) Steve Sobek wrote this article for Streetwise Reports LLC. He or the members of his household own securities of the following companies mentioned in the article: None. He or his household members are paid by the following companies mentioned in this article: None.
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