The Psilocybin Mushroom Story Could be the Next Big Investment Boom
As the cannabis market booms, another drug may soon follow in its footsteps -- psilocybin mushrooms. Already, we're seeing a groundswell of interest. In fact, activists in California are working on getting its decriminalization added to the 2020 ballot. The proposed amendment - called the California Psilocybin Decriminalization Initiative -- would revise state drug laws to decriminalize the "personal possession, storage, use, cultivation, manufacturing, distribution in personal possession amounts, according to Marijuana Moment. Better, the U.S. FDA already granted 'breakthrough status' to COMPASS Pathways' psilocybin-assisted therapy in October 2018, which allows the FDA assist in the development of a promising drug to treat serious illnesses. In addition, researchers at New York University found psilocybin mushrooms caused a 'rapid and sustained' reduction in anxiety and depression in patients with cancer," as reported by the Financial Post. As excitement builds, it's opening a range of opportunity for companies that have already established launching cannabis products including The Yield Growth Corp. (CSE:BOSS) (OTCQB:BOSQF), GW Pharmaceuticals (NASDAQ:GWPH), Tilray Inc. (NASDAQ:TLRY), Aphria Inc. (NYSE:APHA) (TSX:APHA), and The Green Organic Dutchman (TSX:TGOD)(OTCQX:TGODF).
The Green Organic Dutchman Provides Update on Credit Financing
TORONTO , Oct. 9, 2019 /PRNewswire/ - The Green Organic Dutchman Holdings Ltd. (the "Company" or "TGOD") (TSX:TGOD) (US:TGODF), a leading producer of premium certified organic cannabis, announces that it is reviewing financing alternatives in order to complete construction at its facilities in Ancaster, Ontario and Phase 1a at Valleyfield, Quebec . As previously disclosed, the Company had been engaged in discussions for ordinary course commercial bank facilities and equipment leasing. However, due to changing market conditions, those sources of financing have been unavailable on acceptable terms within the timeframes required, leading the Company to commence a review of additional alternatives. The Company currently has no debt and $56.7 million in cash available in Canada , including $40.2 million in restricted cash allocated to capital expenditures.
Cannabis' Plethora of Medical Applications is Driving its Legality Push Worldwide
As the cannabis industry continues to develop, researchers are beginning to uncover additional benefits within the plant's biological content. Primarily, cannabis is currently associated with its CBD and THC compounds because of their abundance. And through extensive clinical studies, researchers have discovered that the two compounds are widely different in their biological makeup, as THC is the active psychoactive property found within the marijuana plant, while CBD is the non-psychoactive content derived from the hemp plant. Nonetheless, despite the differences, both plants fall under the cannabis family. While THC and CBD are most commonly associated with cannabis, researchers have realized that there are over a hundred cannabinoids found within the cannabis plants. Notably, CBN or cannabinol has become an increasingly popular cannabinoid. CBN comes from the oxidation and decomposition of THC from the hemp plant, meaning that when THC is heated and exposed to CO2, it converts into CBN, according to Sara Brittany Somerset, a public speaker for cannabis advocacy who has appeared at the Cannabis Media Summit and World Cannabis Congress. Similar to hybrid mixtures of THC and CBD, CBN can be infused with other cannabinoids such as CBD and the combination of CBN and CBD can help alleviate insomnia. Despite CBN and CBD both deriving from the hemp plant, CBN is known to cause sedating effects, while CBD causes more of a relaxed effect. Moreover, CBD is known to mildly suppress appetite, while CBN can, on the other hand, stimulate appetite. Overall, the wide-ranging and versatile uses of cannabis have helped bring the plant into the global spotlight. For instance, a single cannabis plant can help aid patients with dozens of varied medical conditions. However, many countries still do not recognize cannabis as an appropriate medical treatment, but nonetheless, a handful have already taken the step forward in an effort to push through and recognize cannabis as a legal medicine. And as more countries continue to understand the medical efficacy of cannabis, other nations are expected to be influenced as well. According to data compiled by MarketsandMarkets, the global cannabis market is projected to grow from USD 10.3 Billion in 2018 to USD 39.4 Billion by 2023. Furthermore, the market is anticipated to grow at a CAGR of 30.7% during the forecast period. Smart Decision, Inc. (OTC: SDEC), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) (TSX: TGOD), Curaleaf Holdings, Inc. (OTC: CURLF) (CSE: CURA), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), 22nd Century Group, Inc. (NYSE: XXII)