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Majestic Oil & Gas to Acquire Half of Terpenes LLC to Buttress CBD Business

Majestic Oil & Gas to Acquire Half of Terpenes LLC to Buttress CBD Business

PuffPuffPost Team
legalization of weed

A U.S. oil and gas company is the latest in showing interest to tap into CBD and the ever so growing marijuana-related industry. 

CBD is the non-psychoactive component in both cannabis and hemp

Majestic Oil & Gas, Inc. (OTC: MJOG) announced on Thursday that it entered into a Letter of Intent (LOI) with SkyCloud Terpenes LLC to acquire half of the company.

Calvin Lewis, CEO of MJOG, said: “Together we have the opportunity and potential to bring growth for both companies and increase shareholder value.”

He added:

“With the ever-growing CBD business, adding SkyCloud to our portfolio will position our company to be at the forefront of the cannabidiol sector.”

According to the Hemp Business Journal, the CBD market will grow to a $2.1 billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-based sources.

Reasons behind the CBD market growth is the spreading trend of legalizing marijuana as well as hemp, and the increased demand for CBD due to the growing awareness about its health benefits.

In January, MJOC announced its transition from a wholly owned oil and gas company into a holding group to accommodate new acquisitions. Its restructuring initiative was to accelerate its evolution from an oil company to a diversified holding group.

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