- Timing of expansion into CBD market correlated with passing of 2018 Farm Bill
- MORE Act decriminalizes marijuana, has passed the House
- Reclassification of cannabis by the UN may increase medical research, impact legalization efforts globally
Founded in 2012, The Alkaline Water Company (NASDAQ: WTER) (CSE: WTER) quickly earned a reputation as one of the fastest-growing and most innovative lifestyle brands. Now a leading producer of premium bottled alkaline water, flavor-infused waters and CBD-infused products, WTER’s flagship product was a premium 8.8 pH balanced alkaline drinking water produced through an innovative, state-of-the-art proprietary electrolysis process.
In 2018, WTER became publicly traded thanks to a disciplined growth strategy that soon expanded into the CBD space. The timing was perfect for this new endeavor. The 2018 Farm Bill passed, and CBD had become a buzz word in the health and wellness industry. WTER partnered with Centuria Foods and launched A88CBD(TM) in 2020, a product line (https://ibn.fm/UH2fn) that only uses CBD sourced from hemp lawfully grown and processed within the United States.
But the United States hasn’t always been supportive of CBD. In 1937 under the Marihuana Tax Act, all parts of the marijuana plant were made illegal. In 1970 under the Controlled Substances Act, cannabis of any kind was prohibited. That changed in 2018 with the Farm Bill’s passing.
The 2018 Farm Bill played a large part in WTER’s story and expansion by allowing for hemp cultivation and the selling of hemp products under 0.3 percent THC (https://ibn.fm/zTkyS). As new bills make their way across the House and Senate floors, WTER is looking forward to what it means for the company and the industry at large. New bills could lead to the long-awaited FDA guidance on CBD-infused consumer products.
An example of this type of legislations is the Marijuana Opportunity Reinvestment and Expungement Act (MORE Act) of 2019, which passed the House and is now awaiting approval in the Senate and then the White House. This marks the first time that a federal legislative body has ever voted to decriminalize marijuana. If the MORE Act passes both House and Senate and the President’s desk, marijuana will be removed from the list of scheduled substances. Criminal penalties will also be removed (https://ibn.fm/SJVCe). This is a strong step forward in removing stigmas and creating therapeutic options for consumers.
In addition to decriminalizing marijuana, the bill will put into motion several other changes, including:
- The ability for cannabis-related businesses to acquire loans and services not previously available
- Cannabis will no longer be used as a reason to allow for deportation or the rejection of asylum claims
- Those in prison for marijuana charges will receive a sentencing review for potentially reduced sentencing
- Federal cannabis sales tax of 5% of the sale price to pay for opportunity grants for communities most impacted by the war on drugs
The MORE Act is a step toward legal cannabis diversity and inclusion. While the future of the bill remains in question, the fact that it has progressed as far as it has indicates significant progress for cannabis in both government and popular support.
And the growing acceptance and changes aren’t only being seen in the United States. The United Nations recently voted to reclassify cannabis as a less dangerous drug (https://ibn.fm/hohwB). This change holds the potential to increase medical research into the therapeutic benefits and impact legalization efforts globally.
“With the apparent change in administration in the U.S., we believe that the FDA guidance on CBD will be forthcoming soon,” said WTER CEO Richard Wright (https://ibn.fm/B4qgc). “Being the National Consumer Products goods company, we feel we are positioned very well to take advantage of any changes that would allow us to sell in all the states.”
For more information, visit the company’s website at www.TheAlkalineWaterCo.com.
NOTE TO INVESTORS: The latest news and updates relating to WTER are available in the company’s newsroom at http://ibn.fm/WTER
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