On December 20, 2018, Charlotte’s Web Holdings issued a press release highlighting an improved outlook for its business prospects due to the passing of the 2018 Farm Bill. This bill classifies hemp as an agricultural commodity, so it’s no longer governed by the Drug Enforcement Administration (or DEA) under the Controlled Substances Act (or CSA). According to the press release, this legal change will enable easier production and distribution of hemp-based products in the US market, which benefits Charlotte’s Web Holdings.

Prominent cannabis players such as Canopy Growth (WEED) and Tilray (TLRY) also want to leverage the opportunity in the hemp segment. To know more about this trend, please read Canadian Cannabis Companies Set Sights on US Hemp Market.

In the next article, we’ll discuss earnings growth trends for Charlotte’s Web Holdings in greater detail.