Colorado paved the path for other states to take small-scale hemp farming to the next level, prepping the country for the massive wave of CBD products that hit in recent years. As more states legalize recreational products derived from the cannabis plant and “green” medicine becomes more normalized, portions of the population who would never touch THC are now utilizing CBD for everything from calming tense muscles to treating their pets’ anxiety.
While there is much scientific backing touting the benefits of medicinal cannabis, the CBD industry has not been as impervious to economic upset as some other sectors of the medical industry. The COVID-19 pandemic has taken a toll on hemp and CBD producers, many of whom are located in Colorado and California.
EcoGen, a Grand Junction, CO-based vertically integrated manufacturer and supplier of hemp products, has been a leader of CBD raw materials and finished products since 2016. They are also experts in hemp genetics, and model their business around the concepts of sustainable agriculture. Despite making a name for themselves by making high quality, low cost cannabinoid products widely available, they began to feel the effects of a suffering pandemic economy.
Enter Kadenwood, a brand-new company founded in California in 2019, whose mission is to bring CBD products into the health and wellness mainstream. Kadenwood recently purchased EcoGen for an undisclosed amount. Garrett Bain, Kadenwood’s Chief Commercial Officer, said “The business is right-sized for success. We’ll be investing to ensure that the growth is sustainable and that we have the proper processes and facilities in place to sustain a growing market. We believe that with additional guidance from the FDA coming hopefully in the coming months, we’ll have a solid platform that we’ve invested into to carry the business and facilitate growth in 2021.”
EcoGen laid off around 160 employees earlier this year, and stated that, while the buyout enabled them to pay off their debts, shareholders did not make any money from the sale. EcoGen has changed its name to EcoGen Biosciences and will operate as a Kadenwood subsidiary as it works to rebuild the assets lost in the pandemic’s economic blow.