CannTrust enters U.S. CBD market with California joint-venture
The chief executive officer of CannTrust Holdings Inc. says he’s confident the Canadian pot producer won’t run into regulatory roadblocks as it pushes into the U.S., but acknowledged that there are still questions on how cannabis compounds can be used in food south of the border.
“We feel with some of the new rules that have come into place in the U.S. with regards to [cannabidiol] in particular… there are still some questions about how it is included as an ingredient in food. We feel very confident that we are on the legal right side of this and the opportunity to seize this,” said Peter Aceto, CEO of CannTrust, in an interview on Thursday with BNN Bloomberg.
“We’ve had our team of lawyers and international team working on this [to] make sure that we are respectful of all the rules and regulations in various exchanges.”
CannTrust is the latest Canadian licensed producer to plot its entry into the massive U.S. market. The Vaughan, Ont.-based company announced Wednesday that it plans to enter the U.S. market for CBD, starting with a hemp production joint-venture in California.
Pot companies listed on the Toronto Stock Exchange are currently restricted from owning assets in jurisdictions where marijuana isn’t legal.
While cannabis has been legalized for medical or recreational use in a number of U.S. states, the drug remains illegal at the federal level. However, the passage of the U.S. farm bill late last year has allowed for the growing of hemp for the purposes of extracting CBD.
Some regulatory uncertainty remains as the U.S. Food and Drug Administration is holding public hearings as it tries to determine how to regulate CBD products.
Aceto added that CannTrust plans to grow upwards of 3,000 acres of hemp for CBD as part of its deal in California.
“We’re going to leverage our abilities to extract the CBD from it, create formulations with partners and distribute so that Americans can get high-quality CBD health and wellness products from CannTrust,” said Aceto.