FDA Regulatory Concerns Force Delay in Colorado Hemp CBD Processing Project

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The Pueblo City Council met on April 11th and approved Resolution M-3, which will delay the closing of a deal with CBD BioSciences by four months.  The $8mm deal was announced in October and provides tax abatements for the project, which is expected to create 163 jobs, and a loan to purchase equipment.  CBD BioSciences is partnered with O.penVAPE on the project, which involves the renovation of former Boeing factory.

Pueblo has targeted hemp as one of three industries that it believes can help revitalize the city, but CBD BioSciences was concerned about regulatory issues and asked to delay the closing.  The Pueblo Chieftan reported that the issue is related to recent FDA warning letters issued in February.

The discussion began at 44:15:

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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