Experion Holdings (EXP.V) entered into a non-binding term sheet for access to hemp biomass from True North Cannabis for CBD extraction.

The sheet would grant Experion access to the steady supply of bulk, high-potency quality hemp, ready for extraction. A report from marketing firms BDS Analytics and Arcview Market Research estimates that the US hemp-based CBD market could exceed $20 billion by 2024.

 “We are excited to partner with an emerging leader in hemp aggregation in the CBD extraction space. Partnering with True North provides Experion with access to low-cost, high-quality, extract-ready hemp material for processing. We believe that Experion will be able to leverage hemp-derived CBD products as a critical entrant into the emerging U.S. and international markets as hemp-derived CBD products become more widely accepted,” said Jay Garnett, chief executive officer of Experion.

The scientific community hasn’t figured out how CBD works.

All cannabinoids, including CBD, effect changes in the body by attaching to certain receptors in the brain. The human body produces cannabinoids on its own using the endocannabinoid system, including receptors CB1 receptors and CB2 receptors.

CB1 receptors deal with coordination and movement, pain, emotions and mood, thinking, appetite and memories. THC attaches to these receptors. CB2 is more common in the immune system, and affects inflammation and pain. It was once thought that cannabidiol effected the CB2 receptors in the immune system, but the scientific community has moved away from that hypothesis, and now supports the notion that CBD directs the body to use more of its cannabinoids.

Some CBD manufacturers have come under government scrutiny for some curious claims regarding the chemical’s efficacy for everything from cancer to acne, but the testimonials don’t lie.

“Hi – I wanted to share my experience with your CBD capsules in hope that it helps others. I have suffered with depression and anxiety on and off since the 70s. I am now 65. The happy tablets just didn’t seem to work anymore then someone mentioned CBD Oil. I have never looked back since taking it. Besides it changed my moods it also got rid of back pain I had. But basically I wake up in the morning feeling happy again :)”

—Thomas

Here. Have a Kardashian:

Kim Kardashian claims CBD Saved her life#cannabis #cannabiscommunity #cbd pic.twitter.com/xNYreCwqqL

— Hemp Untapped (@HempUntapped) September 17, 2019

The term sheet gives Experion access to 6,000 kilograms of hemp-based CBD biomass for the 2019 harvest season, and every year thereafter going forward. Yet, if for whatever reason, True North’s product doesn’t live up to Experion’s standards, the term sheet gives Experion right of first refusal.

“As the cannabis industry continues to evolve, consumers will look to different forms of cannabis, a trend we are already witnessing, and we believe CBD from hemp will form the basis of an expanding category,” said Garnett.

Here’s a youtube clip explaining how much this category is expanding:

—Joseph Morton