What hemp products we may see
Previously, we discussed Canopy Growth’s (WEED) possibility of capitalizing on hemp’s recent US legalization through its recently acquired subsidiary, ebbu. Currently, ebbu develops adult-use cannabis-based products geared toward providing users with certain sensations or experiences. Let’s look at what those products could target.
Some effects of cannabis-related drugs listed on ebbu’s website include alertness, creativity, relaxation, and happiness. The company also develops medical products targeting anxiety, pain, sleep disorders, post-traumatic stress disorder, and depression.
Canopy hasn’t indicated whether it will sell these products in the United States, but we believe that cannabis companies such as Canopy, Aurora Cannabis (ACB), Tilray (TLRY), and Aphria (APHA) will be limited by the fact that cannabis remains a controlled substance under US law, and recently legalized hemp comprises tetrahydrocannabinol content under 0.3%—the sale of mind-altering products could still be restricted in the United States.
As shown in the above chart, Aurora Cannabis has largely underperformed the ETFMG Alternative Harvest ETF (MJ) ETF this year. It will be interesting to see what unfolds next year.