VAPOUROUND CBD MAGAZINE ISSUE ONE | Page 31

Forty-seven-year-old Mike Hodgson of London, Ontario has turned an intimate familiarity with the marijuana plant into a promising business in the booming cannabidiol trade. Having honed his business skills in the creation of two successful start- up companies, Mike now occupies an invaluable position on several crucial fronts. Mike manages GreenLeaf Productions, the mother company of ThreeFourteen CBD. Mike’s dedication to understanding and optimising the many sides of hemp down to the smallest detail is reflected in the brand name: 314 is the molecular weight of CBD. Having kept a close eye on Canada’s view of hemp, Mike made strategic moves when the time came for legalisation. He remains well-informed of this evolving, sometimes turbulent relationship between the government and the plant. “I’ve always had my eye on the industry, and when the authorities started to embrace it, I wondered how I could fit into the new landscape. It takes a lot of big money to get into the growth side of marijuana, so I decided my best fit was in CBD and oils. In Canada, the marijuana industry was worth approximately seven billion dollars before legalisation. The government is trying to flip that over and convert the cashflow from the black market to the legit market in the hopes of protecting the average citizen, so they know exactly what they’re smoking.” Like many who have quickly risen to a place of prominence in this business, Mike’s motivation is as personal as it is professional. “My father has had Parkinson’s for ten years now. I was able to introduce him to CBD almost five years ago and it’s really changed his life. You hear a lot of anecdotal evidence of what CBD can do and I can confirm it works – his neurologists were fascinated with the results.” Mike believes these properties are key to the product’s appeal. “Despite recent marijuana legalisation, I think on a global scale, CBD is really where the true growth potential lies due to its versatility and better image. People will quickly embrace the physically altering properties of this plant. Once we have an aging population, and once older people realise CBD works, this industry could be truly massive. When the US gets hold of something, they know how to do business. I think the new Farm Bill will be great for their CBD industry. The US has also got a lot of southern growing states and vast amounts of fertile land. There are very few regulations there compared to Canada. I predict Europe’s future will be similar to ours. “As a business, ThreeFourteen is going to be focused on CBD isolates and being able to get certain supplements to the market, like protein and pre-workout powders. Products like that blend well with its muscle recovery properties. Our initial business model is extraction. Once we extract from hemp, we can refine it into a full range of hemp products.” Though in most matters of business, the US is often in the lead as the default. Mike senses a distinct advantage Canadian products currently have: ‘the entourage effect.’ “In Canada, because we’re allowed to deal with THC, our hemp varieties will eventually contain a strain of it too, whereas everything in America needs to be 100 percent THC-free. In order for CBD to be fully optimised, it needs some THC in there as an activating ingredient. Researchers call this the entourage effect. Until the US goes completely pro-weed across all states, we won’t see that quality of product yet.” CBD is still finding its feet as an integrated global market, and every entrepreneur needs to know the hurdles, hindrances and other growing pains that come with such maturation. Mike provided an impressive rundown of what he’s observed at home and abroad. “I’ve said this for over a year now: if the Canadian government, Health Canada in particular, don’t get things sorted out quickly, this whole industry has the potential of sliding by and losing its edge. It’s not just the US and UK markets that are on the rise, there’s a lot of South American companies that are coming on fast and furious. Canada is very heavily regulated and the amount of hoops businesses need to jump through to get licensed by Health Canada have really become harmful. Also, I don’t think CBD should be a Schedule One narcotic or listed as something illegal in any context. Even the World Health Organisation is against listing it as any kind of drug. Canada has taken a position of legalising but closely watching over product quality and ensuring patrons are safe, it’s one of the reasons our Prime Minister was able to sell the public on legalising it.” With this in mind, there are ways for the hemp and CBD industry improve its image overall. “It’s fairly straightforward: we need a clearer division, we need to separate the “high side” of the plant, so to speak, from the CBD side. If the line is drawn, CBD can flourish under looser laws. We don’t have to worry about people driving under the influence or behaving anti-socially on CBD. If we let the THC side run its own course and let the people involved sort out their issues, we’ll see both prosper. Fortunately, the black market has never really been involved with CBD and I think as the industry opens up, there won’t be a chance for criminals to really grab onto it.” With the experience and encyclopedic knowledge on their side, ThreeFourteen CBD is ready to take flight. “We’re looking to be fully licensed by Health Canada very soon. We’re built up with our own lab and production facilities. We’re just waiting for Health Canada to clear our license and we’ll be ready to go. There is opportunity everywhere.” VAPOUROUND CBD MAGAZINE 31