Former US congressman Dana Rohrabacher has joined a Colombia-based publicly traded marijuana company as an advisor.
David Attard, CEO of the company, said in a release that the firm is angling for an entry to the US market by way of cannabidiol (CBD) products.
The executive added that Rohrabacher will serve the company’s US interests thanks to his experience and understanding of the legislative environment in the country.
Rohrabacher said that, after visiting the facilities of the company, he’s “very engaged” in wanting to help the firm navigate US federal and state policy.
Demand and sales for CBD products in the US have grown exponentially following the legalization of hemp and its derivatives.
This regulatory change has led to a race of producers for novelty products using CBD in the health and wellness market.
Investors have gained a variety of options for plays in the CBD craze, especially with the entrance of established retail pharmacies such as CVS Pharmacy (NYSE:CVS) and Walgreens Boots Alliance (NASDAQ:WBA).
“Our team has received accelerated interest from players in several legal US states in recent weeks as the legal structure of medicinal cannabis continues to evolve across the country,” Attard said.
Shares of PharmaCielo were on the rise during Wednesday’s trading session. The company finished the day at a price of C$6.92, representing a 1.17 percent increase in value.
Rohrabacher, a GOP representative, lost his seat in Orange County, California, during the 2018 midterm elections to Democrat Harley Rouda.
He told Cannabis Now in April that he expects to see more involvement from US President Donald Trump regarding the legalization of marijuana in the run up to the 2020 election.
“I think it will all come down to who the nominee is for the Democratic Party,” he said. “If it’s (Joe) Biden, and then we have President Trump talking about being the person that wants to liberalize marijuana laws.”
During his 30 year run in Congress, Rohrabacher was a vocal advocate for cannabis policies and most famously sponsored an amendment to prevent the justice department from pursuing marijuana businesses in legal states with federal funding.
The Rohrabacher-Farr amendment was turned into law in December 2014.
Special hirings of politicians in the cannabis market have become a trend in the space, with fellow Colombian company Khiron Life Sciences (TSXV:KHRN,OTCQB:KHRNF) adding former Mexican president Vicente Fox to its board of directors.
PharmaCielo reached the Canadian public markets in January when it completed a reverse takeover to list on the TSX Venture Exchange.
As part of its Q1 2019 financial results, the company pointed to the reverse takeover as the cause of its C$7.7 million net loss during the quarter.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Acreage Holdings and Khiron Life Sciences are clients of the Investing News Network. This article is not paid-for content.