Hemp has enormous potential thanks to broad commercial, consumer and industrial applications; but it has also suffered a bad rap from being a close relative of the cannabis plant and thus from being associated with marijuana.   Fortunately, attitudes have changed along with the easing of cannabis laws and the recent reclassification of hemp as an agricultural commodity at the Federal level in the USA. And while hemp is still being overshadowed by its more notorious relative, there are game changing health and wellness opportunities for the plant with small cap Spyder Cannabis (SPDR: TSXV) ready to cash in on this enormous potential. Investment Snapshot Hemp can be refined into a variety of useful items, was one of the first plants to be spun into usable fiber 10,000 years ago and was once widely grown to make ropes and sealants for sailing ships. However, both cannabis (the drug) and hemp come from the same plant species and both contain the psychoactive component tetrahydrocannabinol (THC) albeit in different amounts.  In the USA, the Hemp Farming Act of 2018 changed hemp’s status from a controlled substance to an agricultural commodity plus 41 states have begun the process to make hemp legal to grow at the state level. Small cap Spyder Cannabis (TSX-V: SPDR) already has three uniquely designed high-end vape stores in Ontario offering a growing product offering comprised of e-cigarettes, vaporizers and accessories; a high-quality proprietary line of e-juice and liquids; and exclusive retail deals dispensed in uniquely designed stores.  The Company’s long-term business plan is to expand the current retail operational model to include a cannabis business segment focused on the operation of licensed cannabis retail stores in Canada and to build a network of branded boutique retail and kiosks selling hemp products in key US states with the goal of building a national brand. Spyder Cannabis’ US kiosks will offer a wide array of hemp product offerings (hemp-infused muscle balm, face oil, body lotion and bath salts, as well as hemp tinctures, capsules and sprays) plus the Company is developing its own Spyder line of hemp-derived ointments, oils, capsules and topical creams for the aging, sports and health and wellness space. Hemp: No Longer an Outcast Crop   Hemp is one of the world’s fastest growing plants that can be refined into a variety of useful items such as paper, textiles, clothing, biodegradable plastics, paint, insulation, biofuel, food and animal feed. Moreover, hemp was one of the first plants to be spun into usable fiber 10,000 years ago and was once widely grown and used to make ropes and sealants (when mixed with pitch or tar) for sailing ships.  The problem is that both cannabis (the drug) and hemp come from the plant species Cannabis sativa and both contain the psychoactive component tetrahydrocannabinol (THC) albeit they are distinct strains with unique phytochemical compositions and uses. For example: Hemp would have lower concentrations of THC and higher concentrations of cannabidiol (CBD) which decreases or eliminates its psychoactive effects.  A millennium of selective breeding has resulted in hemp varieties with a wide and/or specific range of traits – including varieties with lower THC/CBD. Nevertheless, the legality of hemp varies widely between countries or jurisdictions with some governments outright banning it as a crop while others merely regulating the concentration of THC and only permitting it to be grown when bred with an especially low THC content.  In the United States, the public's perception of hemp being the same as cannabis or marijuana has long blocked it from becoming a widespread crop or mainstream product. In 1937, the Marihuana Tax Act of 1937 effectively destroyed the US hemp industry with some blaming businessmen like Andrew Mellon, Randolph Hearst and/or the Du Pont family for its passing due to the threat the crop poised to their business interests (specifically timber or nylon investments).  However and at the end of last year, Congress passed and President Donald Trump signed into law the Hemp Farming Act of 2018 (as part of the 2018 Farm Bill). This bill changed hemp from a controlled substance to an agricultural commodity - thus legalizing hemp federally and making it easier for farmers to get production licenses, get loans to grow hemp and obtain federal crop insurance.  And while some states still consider it illegal to grow hemp, 41 states have begun the process to make hemp legal to grow at the state level. More importantly, it’s now legal to transport hemp across state lines (regardless of local state laws concerning growing or selling it).  The legalization of a more sustainable domestic crop like hemp is actually great news for increasingly hard-pressed American farmers who are grappling with struggling demand for traditional crops like tobacco (bad for people’s health), alfalfa (and other feed crops as dairies continue to struggle or close) and soybeans (as in the trade war with China). In addition, hemp crops are proving to grow with less water and are more frost resistant than other crops – making it attractive to farmers in almost any region of the country. In fact, USA sales of hemp had already reached$1.1 billion last year before the new law took effect and are projected to reach $1.9 billion by 2022 (according to Vote Hemp and the Hemp Business Journal). The profit potential is also high for farmers as a good yield of food-grade hemp can net them about $750 per acre versus $150 for soybeans. Spyder Cannabis Has Big Plans for Retailing Hemp Products Small cap Spyder Cannabis offers investors a way to cash in on hemp’s potential in the USA along with cannabis in Canada all at the same time. The Company already has three existing high-end vape stores in Ontario (located in Woodbridge, Scarborough and Burlington) offering a growing product offering comprised of e-cigarettes, vaporizers and accessories; a high-quality proprietary line of e-juice and liquids; and exclusive retail deals all dispensed in uniquely designed stores (plus online).      The Company’s long-term business plan (in addition to the existing high-end vape shops) is to expand to include a cannabis business segment focused on the operation of licensed cannabis retail stores with the current retail plans being the following: Ontario - Targeting 75 retail locations  Alberta - Targeting 5 retail locations  British Columbia- Targeting 5 Locations Keep in mind that the timing of any expansion will be subject to market and regulatory conditions. In the event that Spyder Cannabis fails to obtain the necessary permits, authorizations or accreditations needed to expand its product offerings into the cannabis sector, the Company will continue to operate in Canada as a high-end vape shop retail business with an online presence. However and as a backup plan to take advantage of easing hemp laws in the USA, Spyder Cannabis will build (over the next 12-18 months) a US network of branded boutique retail and kiosks focused around selling hemp products. The USA is an attractive market for the Company to enter as a hemp retailer thanks to:   Less regulation around advertising through online channels. This presents an opportunity for brand creation and resonation amongst consumers.  Attractive economics with strong and sustainable EBITDA margins for Spyder Cannabis’ private label products, high value derivatives, vaporizers and other accessories. Low initial build-out costs since the focus will be on setting up kiosks. Since the ultimate goal is to dominate the USA hemp-derived retail market, Spyder Cannabis intends to partner with a variety of real estate developers in order to sign lease agreements for kiosks in Florida, California, Michigan and New York with the goal of deepening market share in these big states that are critical to building a national retail brand.  These kiosks will be located in high-traffic and desirable spots in malls (or near malls) that have close proximity to sporting venues and retirement homes and will offer a wide array of hemp product offerings that will include hemp-infused muscle balm, face oil, body lotion and bath salts, as well as hemp tinctures, capsules and sprays. In addition, the Company is already developing its own Spyder line of hemp-derived ointments, oils, capsules and topical creams for the aging, sports and health and wellness space.  All product offerings (regardless of the source) will target the aging, athletic and/or health and wellness markets with a core focus around: Wellness:Targeting the aging population and health and wellness community as hemp derived products can reduce pain and inflammation (according to the US National Library of Medicine, cannabidiol reduces inflammation and pain-related behaviors in a rat model of arthritis) Nutrition:Targeting the sports and athletic community with a line of hemp-derived infused supplements along with vitamins, omega 3 and electrolytes. By next year, Spyder Cannabis plans to have 30-50 US kiosks open and operating in key states (along with up to 20 retail vape and/or cannabis stores in Ontario, 5 in Alberta and 5 in British Columbia). Given these plans and the retail potential for hemp in the USA along with cannabis in Canada, the Small Cap Network will be watching Spyder Cannabisover the coming months and years.