HempFusion (TSE:CBD.U) is almost in the UK, it seems. The Toronto-listed specialist in CBD-based products, which The Armchair Trader has been following since January, has submitted a novel foods application to the UK’s Food Safety Agency. It represents the first step in the process to getting HempFusion products onto shelves in the UK.
The submission includes a detailed analysis of the quality, stability and safety of HempFusion’s raw ingredients and many unique product formulations. In addition to the company’s proprietary heirloom hemp-sourcing and state-of-the-art low pressure and low-temperature C02 extraction methods, the submission also includes compliant labelling and testing requirements and complete toxicology data.
HempFusion is targeting wider European distribution
This represents an important and critical new step for HempFusion, as it seeks to build a European distribution network. HempFusion has just confirmed that it has already secured authorisation in Ireland, but the UK represents a much larger market and approval here will be a big component for further distribution in other major European markets.
“We believe the UK’s decision to allow CBD companies to obtain a Novel Food Authorization from the FSA is a tremendous step forward for the global CBD industry,” explained Jason Mitchell, N.D., HempFusion’s Co-Founder and Chief Executive Officer. “HempFusion was built on the pillars of regulatory compliance. We have invested significant time, resources, and energy to ensure our products meet the highest standards, and we are pleased to report our submission includes completed toxicology data, which may represent one of the most complete submissions to date.”
One of the company’s strengths has been its familiarity with the regulatory processes governing the distribution of hemp-based health products in the United States. The novel food application’s primary function is to assess CBD product safety, including detailed toxicology studies.
HempFusion places significant importance on safety for its consumers as evidenced by its participation and co-sponsoring of many studies and clinical trials, such as its participation in ValidCare’s liver and reproductive toxicity study, believed to be the largest CBD human observational study to date.
Distribution is one of the key elements we liked about HempFusion when we first looked at the stock pre-IPO. It came to the market in January and the timing was excellent as this coincided with enhanced investor interest in the CBD oils and wider CBD products story which has been driving many stock valuations.
Stock is up over 40% since IPO in January
From hitting the market at the USD 1.65 mark, the stock has appreciated to a high of USD 3.44; at the time of writing it was trading at USD 3.15.
European and wider international expansion are going to be important components of the HampFusion story going forward. We are already seeing a rapidly liberalising environment for CBD-based health products and related products (e.g. the recent boost to Eve Sleep stock when it announced the launch of mattresses impregnated with CBD oil to assist with sleeping). HempFusion has taken pains to ensure that the sourcing and use of its hemp meets with the highest European food safety standards, which should assist it with ongoing distribution activity in the EU zone.