On November 8th, just over 57% of California voters said yes to Proposition 64 on their ballots. This meant that on November 9th, it was legal for people aged 21 and up to cultivate marijuana for their own personal use as well as consume it. Additionally, Prop. 64 set up taxation measures and a system for recreational sale. This has created a wealth of business opportunities in California.
Don't Forget Hemp
While recreational adult-use marijuana was the blockbuster news for California this election, the Prop. 64, or Adult Use Marijuana Act, legalization initiative also included several industrial hemp farming provisions.
Industrial hemp has a wide variety of uses and is highly renewable for making many things we currently use cotton or wood for.
According to HempBasics.com, hemp is 2-3x higher yielding than cotton on a per acre basis, requires less water and less fertilizer. Not only that, but hemp is said to be longer lasting than cotton as well as resistant to mildew, making it easier to farm. This is a big deal for textiles and fabrics.
Additionally, hemp can be used to make paper products like cardboard boxes and more, therefore reducing the need to cut down trees for similar products. These are just a handful of the many uses of hemp, as well as a handful of the reasons why it will be a growth industry worth pursuing for companies like Cannabis Sativa and more.
Cannabis Sativa, Inc.
Today it was announced that Cannabis Sativa, Inc. (OTC:CBDS) would be buying a 49% stake in a 9 acre plot of land in Los Angeles County. According to the agreement, the land's owner group intends to lease out the land to a farm operator to make an organic hemp farm under the Prop. 64 framework.
According to Cannabis Sativa's President, David Tobias, the company is "excited to play a role in what we anticipate will be one of California's first hemp farms under Prop 64." It was also hinted that this farm might produce hemp-derived products for the purpose of supplying CBDS' demand. The organic hemp farm is supposed to begin operations in January.
While the agreement was announced without disclosing a sum, we expect this to be a smart investment for Cannabis Sativa. Not only does this land mean a stake in a real asset with a steady lease cash flow, but there are also supply synergies for CBDS.
We hope this was a useful brief on hemp and how California's Prop. 64 created new business opportunities for companies like Cannabis Sativa, Inc. For more information and recent coverage on CBDS as well as custom stock charts and more, check out the company's stock profile in our marijuana stocks database. For more information on California's Proposition 64, click here. For Cannabis Sativa's press release regarding the agreement, click here.
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