Chris Boucher

The Economics of Hemp Makes Extraordinary Sense

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10020465_m (1)When the questions surrounding cannabis legalization come up, the benefits are often related to those who have a special interest such as medicinal needs or a desire for recreational use. Medical necessity is certainly a high on the list of noble causes, and as recreational use goes, marijuana is well-documented to be less harmful than alcohol. But society—and the US economy—stands to benefit economically once cannabis legalization is brought about.

California Gov. Jerry Brown recently signed SB 566 into law, which will allows for the cultivation of non-psychoactive industrial hemp in the state. The bill was authored by Sen. Mark Leno who said that, “In the past year, the conversation to legalize the cultivation of hemp has gained momentum at the federal level, and it is only a matter of time before a farmer’s right to grow hemp is restored.” Citation 1

California is still awaiting federal approval, but this important step comes in the wake of the Department of Justice’s (DOJ) memo establishing its prosecutorial priorities to not conflict with state laws. Traditionally, enforcement discretion has been deemed a sign of abuse of power. Citation 2 However, in this instance, the DOJ was responding to a wider conflict that existed between the federal Controlled Substances Act (CSA) and the various levels of state legalization.

Sen. Leno stated on his website that the bill “would permit growers in the Golden State to cultivate industrial hemp for the sale of seed, oil and fiber to manufacturers and businesses that currently rely on international imports for raw hemp products.” Citation 3 This is the type of common sense legislation that’s needed across the nation. Hemp agriculture creates jobs, provides needed products for nutrition and medicine, and hemp itself is a renewable and versatile source of natural raw materials for manufactures of building materials, bio fuels, textiles, foods and hundreds of other industries.

I recently spoke with Chris Boucher, VP of Product Development and Imports at US Hemp Oil and hemp industry pioneer. US Hemp Oil is a subsidiary of Medical Marijuana, Inc (MJNA ) and CannaVest (CANV), which produce many products containing the cannabidiol (CBD), a cannabinoid derived from the hemp plants seeds and stalk. CBD was recently highlighted in Dr. Sanjay Gupta’s CNN documentary, WEED, which demonstrated its abilities as an astonishingly successful treatment for childhood epilepsy.

Chris spoke about the company being past the research and development phase and increasing production to support sales. Gov. Brown’s support for SB 566, along with federal government approval, could mean a California winter hemp crop of 160 acres this year. Eliminating or reducing import expenditures could have a huge impact on costs, which translates in to increased profits and reduced prices for consumers.

HempMedsPX, the marketing arm for MJNA and CANV, had Chris’ efforts focused on its new product lines Cibdex™ and Cibaderm™; however, it was clear that US Hemp Oil was positioned to be supplier of raw or semi-processed materials (such as hemp oil) to well-established consumer products manufactures such as the Procter & Gambles of the world. Hemp-based CBD has strong analgesic and antioxidant properties and, as a natural compound, fits well into any company’s health and wellness product lines.

A close analog to hemp or high CBD hemp strains is aloe or aloe vera.  Aloe, a genus of over 500 species, is mostly known only because of aloe vera, a widely-used plant species found only among cultivators and thought to be extinct in the wild. Similarly, hemp varieties that are grown for their high CBD content are cultivars of expert design, and will be in high demand as a commodity as awareness of the many benefits of hemp, CBD, and other cannabinoids increasingly come to light. The reintroduction of hemp to the agricultural community alone is substantial, but the larger impact would be on an struggling economy that would benefit immensely from the integration of a product with a multitude of utility.

With the numerous stalemates in congress, it’s hard to believe that progress is actually being made on the legalization of hemp agriculture in the US. The reality is that both marijuana and hemp are already grown in the US, but not on a large scale and not legally (yet) at the federal level.

Chris likened growers to hobbyists due to the lack of ability to plant and cultivate hemp on a large scale. You can read my full interview with Chris here: “Hemp Veteran Chris Boucher Shares His Insight on the Industry and the New Hemp CBD-Infused Cibaderm Product Line at Natural Products Expo East in Baltimore”.

Hemp is a commodity that literally built this great nation, but was cut out of our economy by corrupt, fear-mongering politicians and focused (instead of free market) capitalism. Its reintroduction represents an economic stimulus that is natural to our economy—much like the plant itself. If you are looking for investment opportunities for the long term, you may want to take a closer look at the companies mentioned in this article.

Disclosure: I am an investor in MJNA and (OTC: CANV) and this article was written on behalf of Medical Marijuana, Inc.

Citations

Citation 1 – Website link: http://www.huffingtonpost.com/2013/10/03/california-hemp_n_4033632.html

Citation 2 – Website link: http://en.wikipedia.org/wiki/Enforcement_discretion

Citation 3 – Website link: http://sd11.senate.ca.gov/news/2013-09-27-governor-signs-senator-leno-s-industrial-hemp-bill

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Hemp Veteran Chris Boucher Shares His Insight on the Industry and the New Hemp CBD-Infused Cibaderm Product Line at Natural Products Expo East in Baltimore

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It was fitting that I met with Chris Boucher, hemp industry pioneer, at Natural Products Expo East. The event was packed with vendors from all over the world looking to find retailers for natural and organic products from every category imaginable. Hemp products were well-represented throughout the expo, but as Chris and I made our way through the thousands of attendees and natural and organic company representatives, we made sure to stop at the HempMedsPX booth first.

As Chris and I spoke, numerous attendees approached him to ask questions about hemp and hemp-based cannabidiol (CBD). From what I gathered, some had heard about CBD for the first time thanks to Dr. Sanjay Gupta’s CNN documentary, WEED. Others were big supporters of hemp products in general. All wanted to know more about what HempMedsPX had to offer and why they are different. The line of people asking questions got so long that Chris suggested we retreat to a nearby restaurant to conduct our interview.

Chris is the “real deal” as far as health and wellness aficionados go. It was clear right away that he was not just another marketing or sales guy. A staunch vegetarian and holistic health advocate, Boucher is the epitome of the new “conscious capitalism” businessman.

Chris’ journey to become one of the foremost authorities on the cultivation of hemp is a fascinating story. He was responsible for the first and only USDA-grown hemp crop in the United States, and has led the charge towards total legalization of industrial hemp for over twenty-five years.

But that’s not at all where he started. Chris explained that as a young man he had an interest in aviation and had joined the Air Force. After completing his stint in the service, he had no idea that his future career—and most of his adult life—would be focused on hemp.

Our conversation continues below:

Perry Coleman (PC): What’s your official title at US Hemp Oil and how long have you been with the company? 

Chris Boucher (CB): I’ve been with the company about two years as VP of Product Development and Imports. Our import operations are still somewhat proprietary, but I can tell you that our products are imported from Europe and processed in San Diego.

PC: What type of responses are you receiving at the Expo?

CB:  Phenomenal. It’s about natural products. People want a lot more information on hemp and hemp-based CBD and their benefits.

PC: Since Dr. Sanjay Gupta’s documentary (WEED) aired on CNN recently, have you been approached by those with medical needs they want to address with CBD—especially people with epilepsy?

CB: Yeah, many people want to know more about the health benefits of CBD. We don’t make any medical claims about our products, but we understand that there are many people who want to use our products to see if they will help various ailments. We do have a compassionate donation program that is focused on charitable outreach, which includes people who suffer with epilepsy.

PC: What new products do you have in the pipeline?

CB: Our newest product line is Cibaderm™, which is a skin and hair care line. We’re doing our first rollout of hand lotions, salves and shampoos. These products are different than our nutritional supplements in that they have broad appeal. They are the first consumer body care products that have hemp-based CBD in them.

PC: What product do you think will be your biggest seller?

CB: While we certainly believe our Cibdex™ hemp CBD drops will be highly successful, the Cibaderm™ products will have a massive market. Our products are on the higher end of the quality spectrum. We’ve removed the parabens, sulfates and phylates and use steam-distilled essential oils. They are amazing products.

PC: Tell me about your history in the hemp industry.

CB:  I wrote the first legislation for industrial hemp in California and Colorado, and I opened one of the first hemp companies in the US in the 1990s. I was also one of the first to grow industrial hemp at a United States Department of Agriculture (USDA) research center in 1994.

Now it’s twenty years later and there is a bill on [California] Governor [Jerry] Brown’s desk to legalize hemp cultivation in California. Governor Brown is expected to sign the bill which would give us permission to grow hemp in California’s Imperial Valley.

Note: Governor Brown signed Senate Bill 566 legalizing hemp cultivation at the state level on 27 September, 2013.

PC: How is your hemp-based CBD different from the high CBD cannabis plants that some are already growing in the US?

CB: The current growers have greenhouses and are more akin to hobbyists. Their plants are derived from clones and cloning is not agricultural production. They have to put each cloned plant in the ground. Unfortunately, what current US-based cannabis growers are doing now is just not scalable, and it’s illegal at the federal level.

We have high CBD hemp cultivars and could, when federal law allows, import these seeds from our overseas seed banks. US Hemp Oil uses seeders that can sow a thousand seeds in twenty minutes—right now! This year we could plant 160 acres and possibly have a winter crop. 

PC: That’s huge! As a publicly-traded company, what would you say to your shareholders about the advantages you have?

CB: Look at production, product and market penetration. We have a consistent supply chain and quantities of hemp available for full-scale commercial production. In fact, we’re increasing production and marketing which, of course, translates into sales and cash flow. We are past the research and development phase and are focused on merchandizing our products for a variety of industries. Just look at the natural supplements industry—it’s a 34.5 billion-dollar industry alone with the overall natural products industry at 65 billion. That’s “billion” with a “b” and the natural supplements is only one market in which we already have our hemp CBD products.

With that, it was time to get back to the convention center. I got to take in more of the amazing Expo before saying goodbye to the HempMedsPX crew.

My biggest takeaways for consumers and investors alike was that a significant new product line is being rolled out, and that growing hemp in the US would significantly reduce production costs.

HempMedsPX, a Medical Marijuana, Inc (MJNA) portfolio company and contracted marketing company for MJNA and CannaVest Corp (CANV), represented both MJNA and US Hemp Oil as Gold Sponsor of Natural Products Expo East. This is just one of many trade shows on an extensive schedule this autumn, placing them in numerous venues across the US to showcase their hemp-based CBD products.

Disclosure: I am an investor in MJNA and (OTC: CANV) and this article was written on behalf of Medical Marijuana, Inc.

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