CannaVest (CANV) and Advanced Cannabis Solutions (CANN) stocks are up following hemp production approval by the Colorado Department of Agriculture to CannaVest.
The Commercial Industrial Hemp Registration allows CannaVest to grow and process industrial hemp.
Hemp is being viewed as a potential huge cash crop for the United States. The U.S. market for industrial hemp fiber and seed products is estimated at over $500 million.
The first harvest may happen by September.
CANV shares were up 48% yesterday on the news. (CANN shares are up some 50% in what looks to be sympathy with CANV’s big news.)
However, as SeekingAlpha notes about CANV shares, “average daily turnover is only 21K shares so retail investors should tread carefully.”
CannaVest said it plans on building processing mills “to make hemp seed oil, de-hulled hemp seeds, and hemp protein powder as well as process, market, and sell the high-value hemp fiber and hurds for construction materials and automotive parts.”
The Colorado State Business Journal reported that cultivation and processing of industrial hemp may be able to provide the state with new jobs and tax revenue in the short-term.
In addition, the crop is being looked at as potentially as profitable as soybeans and corn.
CANV stock is down 15% year to date.
