Kentucky Hemp Producer GenCanna Files for Bankruptcy
GenCanna Global USA Inc., a leading hemp producer in Kentucky, has filed for Chapter 11 bankruptcy protection as the company has run into liquidity issues. GenCanna is looking to reorganize its business in order to help refinance debt or to sell the business.
Kentucky's been a hot spot for the hemp industry with the state giving out 1,000 licenses for the 2019 crop. But one of the challenges for the industry is that the Food and Drug Administration (FDA) still does not allow food products to contain hemp-derived cannabidiol (CBD), which prevents hemp companies from being able to tap into a lot of the industry's potential growth.
Kentucky's Agriculture Commissioner Ryan Quarles highlights just how long growers have been waiting: "We're entering year No. 7 with hemp being grown legally in Kentucky, and yet the FDA has yet to act and tell the industry which way they're going to regulate hemp-derived products."
Source Fool.com
