Spi Energy news for Wednesday about the company joining the hemp and CBD business has SPI stock soaring.
According to Spi Energy (NASDAQ:SPI) it is teaming up with Native American Agricultural Company and the Navajo Nation to conduct its hemp and CBD business. This will have the three working together to cultivate hemp in the Navajo Nation.
Spi Energy says that it is working with a third-party company that is handling the cultivation of hemp in the Navajo Nation. It is currently using a 36-acre plot of land leased from the Native American Agricultural Company for the business.
The deal between Navajo Nation and these other groups also allow for it to conduct testing, cultivation, processing, wholesale distribution, and retail sales of hemp. A Spi Energy news release notes that the company expects its first hemp harvest to be ready in November of this year.
“We are eager to enter the hemp market and happy to be working with the Navajo Nation. Some estimates have the global industrial hemp market growing from USD 4.41 billion in 2018 to close to USD 15 billion by 2026,” Xiaofeng Peng, CEO of Spi Energy said in a statement. “We want to be part of that growth. The Navajo Nation and Native American Agricultural Company are excellent partners for us as we embark on this exciting venture.”
Spi Energy news about it entering the market seems like a strange change for a company that focuses on providing businesses with solar power. Still, the expected growth from the hemp and CBD market is a tantalizing venture for many companies.
SPI stock was up 40% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.