Marijuana remains illegal in Tennessee for both medical and recreational uses. However, Bill SB 280, signed in May 2015 by governor Bill Haslam, does allow for the use of high-cannabidiol (CBD), low tetrahydrocannabinol (THC) cannabis oil for patients that suffer from seizures, including those with epilepsy.
Changes could be coming down the pike following the latest meeting of the Tennessee Legislature concluding in April that ended with more than 30 marijuana-related bills being filed, although none were enacted. Tennessee does happen to be one of the states that allows for industrial hemp production by licensed cultivators. On the federal level, industrial hemp is lumped in with cannabis as an illegal drug under the Controlled Substance Act.
Acacia Diversified Holdings (OTCQB:ACCA) is looking to build a presence in the Tennessee market. Through its subsidiaries MariJ Pharmaceuticals and Eufloria Medical of Tennessee, Acacia Diversified is true to its name, focusing on the growing and distribution of new and proprietary medicinal hemp products, USDA-certified organic mobile processing and handling solutions and technology solutions for the expanding physician market.
The company said Tuesday morning that Eufloria has inked a lease agreement for a 14-acre farm with 32,000 square feet of indoor grow space in southern Tennessee. Eurloria has an option to purchase the farm, an option the company said it plans to exercise as soon as possible. The lease represents the company's first vertically integrated hemp operation in the state.
Richard K. Pertile, Acacia's CEO, commented in today's news release, "We are very excited to grow our own plant material, process that plant material through another wholly owned subsidiary, MariJ, and manufacture consumer products with the 'EUFLORIA' branding for the dedicated distribution channels."
Traders seem sanguine about the lease, perhaps due to the current Tennessee state laws. Less than 35,000 shares of ACCA have traded as of early afternoon in New York, but shares of Acacia have gained 15.6% to 23.7 cents as investors digest the news.
