Author: CannabisNewsWire (CNW)

About CannabisNewsWire CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge. To receive SMS text alerts from CannabisNewsWire, text “CANNABIS” to 21000 (U.S. Mobile Phones Only) For more information please visit https://www.CannabisNewsWire.com Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

420 with CNW – Ontario Cracks the Whip on Retailers Who Failed to Open on Time

The government in Ontario has enforced the penalties which were written into the conditions for the businesses that were selected to open the first offline cannabis retail stores. The businesses were mandated to open for business by April 1 this year.

Hundreds of companies applied for brick-and-mortar recreational cannabis retail store licenses. However, the province decided to use a lottery to select just 25 businesses because of the persistent supply shortages in the country. The regulators felt that it would be pointless to license many businesses yet those businesses could not be certain that they would have access to inventory to remain operational.

While the method to select which businesses would receive the first set of licenses was rather unorthodox, there was nothing lax about the stringent conditions which were given to the successful applicants.

One of those conditions required each applicant to provide a $50,000 letter of credit to be entered in the draw. Money would be drawn against the letter of credit as a penalty based on how late that business was in opening its doors to the public.

The first installment of penalties was imposed on the businesses which didn’t open by April 1 and more money was drawn against the letters of credit of the entities which hadn’t opened by April 15.

It should be noted that less than half of the 25 licensees opened by the deadline set by the provincial government.

The recent announcement by the Ontario Alcohol and Gaming Commission that a final draw down was made against the letters of credit of seven businesses which failed to open by April 30 means that the affected businesses have lost the entire $50,000 indicated in the letter of credit.

It isn’t yet clear whether the provincial government is entirely blameless in these delays to open. For example, was the time given to the businesses to meet all the licensing requirements, such as obtaining approval from the local authorities where the businesses wish to operate sufficient, or the province was unrealistic in the deadlines set?

The reality dawning upon those who wish to run cannabis businesses in Ontario is that no one will be spared if they aren’t serious about making use of the license given to them. Ontario means business on matters of recreational cannabis!

Hemptown USA and Green Hygienics Holdings Inc. (OTCQB: GRYN) sympathize with the entrepreneurs who have lost their entire $50,000 letters of credit and hope that there is a mechanism for them to plead their case before the regulators if there were genuine unavoidable reasons for the delay in opening shop.

About CNW420

CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.

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420 with CNW – Data Confirms that Cannabis Sales Were Boosted on 420

Data collected shows that cannabis sales were higher on 4/20 in line with the predictions that had been made regarding the effect of the marijuana “holiday” on sales. Headset, a cannabis industry analysis company, had initially predicted a 100 percent increase in sales on that day.

The data that they collected shows that marijuana sales on 4/20 actually exceeded what had been predicted since sales increased 128 percent when compared to the volume of sales registered on the previous four Saturdays.

The report released by Headset also shows that the “eve” of 4/20 was also good for cannabis retailers since sales increased by 27 percent when compared to the sales of the previous four Fridays. Historical data shows that Fridays are normally good days for cannabis businesses, so the fact that this particular Friday happened to be the “eve” of 4/20 provided an added reason for marijuana users to open their wallets.

The report released by Headset was based on real-time data collected via the POS (point-of-sale) systems of cannabis retailers who agreed to link their systems to the data analytics system of Headset.

In terms of sales data from different states, shoppers in Maryland spent the most on cannabis on 4/20 because the average shopper spent approximately $105 before tax on that day. Shoppers in Oregon spent the least amount on that day, with the average amount spent by each buyer totaling just $36. More mature cannabis markets like Colorado and Nevada saw the average expenditure being about $50 while this figure jumped to $76 when the data on the largest marijuana market in the world (California) was analyzed.

In terms of experience level, just 25 percent of buyers where beginners while the majority of the people who bought cannabis on 4/20 were intermediate users of pot.

Two-thirds of marijuana shoppers on the holiday were people aged between 21 and 34 years of age. Senior citizens (aged 55 and above) only took 4 percent of the population of cannabis shoppers on that day.

More than half of all cannabis buyers bought cannabis flower while a third of the buyers purchased cannabis concentrates. Marijuana edibles completed the list of the products most bought on 4/20.

A further analysis shows that the most popular items on that day were the products that could be consumed as soon as a shopper left a dispensary or retail outlet. Cannabis beverages therefore registered a 136 percent growth rate when compared to other products.

Global Payout Inc. (OTC: GOHE) and Geyser Brands Inc. (TSX.V: GYSR) are pleased to learn that the findings of the sales data on 4/20 shows that despite increasing legalization across the U.S., cannabis hasn’t lost its novelty among buyers.

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420 with CNW – Georgia Governor Signs Cannabis Oil Bill

Gov. Brian kemp has signed a bill that will make it possible for licensed entities to produce and distribute oils and other products which have limited amounts of plant-derived THC.

House Bill 324 also lays the ground for the establishment of a commission to regulate and oversee the production, manufacture and dispensing of products having the specified amounts of THC to patients who have been registered to receive those products.

Under the bill which has now been signed into law, the state will cooperate with Georgia University to manufacture THC-infused extracts and oils. A maximum of six cultivators will be licensed to operate within the state, according to the new law.

Medical marijuana was legalized in Georgia in 2015. However, the law which legalized this form of medicine didn’t establish mechanisms through which qualifying patients could access low-THC cannabis oils and extracts.

The latest law is intended to fix that shortcoming so that patients can access state-regulated cannabis oils and extracts instead of merely taking comfort in a law which allows them to use these products yet no system is in place to avail the permitted products.

Currently, about 9,500 patients have been approved to use medical cannabis oil. The law sets a possession limit of 20 fluid announces of medical cannabis oil whose THC concentration doesn’t exceed 5 percent.

A registry card issued by the Georgia Department of Public Health protects members of the public from being arrested and prosecuted for possessing a controlled substance.

The state has a small number of patients on its medical marijuana program because Georgia enacted a highly restrictive medical marijuana law.

Under the law, medical marijuana cannot be used in leaf or edible form as is the case in nearly all other jurisdictions where medical marijuana is legal. Vaporization of cannabis oil is also banned in the state.

Additionally, Georgia doesn’t give physicians the right to prescribe cannabis oil to patients. Instead, the physician simply fills a patient certification form confirming that the patient has one of the 17 qualifying conditions, and then the physician and the patient sign a waiver form before the patient certification form is mailed to the Department of Public Health for consideration.

It remains to be seen whether the enactment of the law facilitating the manufacture and sale of cannabis oil will result in an increase in the number of people who apply for the Low THC Oil Registry Card.

Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) and Golden Developing Solutions Inc. (OTC: DVLP) hope that Georgia will enact other reforms soon so that its medical cannabis program expands to the level that other states have reached.

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420 with CNW – New Zealand Releases Details of Cannabis Legalization Referendum

The government in New Zealand has released details of how a referendum will be conducted in 2020 on the legalization of recreational marijuana. The plan was released by Andrew Little, the Justice Minister, in a press release.

The three parties which make up the current government agreed on the basic elements of the plan through which recreational marijuana use will be regulated, taxed and commercialized for adults 20 and above. The outcome of the vote will be binding, so voters shouldn’t have any fears that the government will not implement the decision of the people.

In the proposal, people will be allowed to grow a limited number of cannabis plants and licenses will be issued to places where recreational consumption can be done outside the privacy of people’s homes. Marijuana advertising will be highly restricted as well.

For the voters to make a decision, the referendum question needs to be as clear as possible so that if approval is given, voters know what legalization model they have voted for. This will prevent the lack of clarity on how to implement the decision of voters as is playing out in Britain after voters approved Britain’s exit from the EU but how to implement that decision has proved to be more divisive than the referendum on Brexit.

Andrew Little revealed that the cabinet decided to hold the referendum on full legalization because simply decriminalizing recreational cannabis would not provide the public health safeguards the country needs in order to protect the youth and help those who are addicted.

The minister also outlined the primary and the secondary objectives of the legalization bill which will be formulated so that voters decide based on the contents of that draft bill. These objectives include disempowering the illegal cannabis trade, ensuring cannabis product safety through the control of THC concentrations, and fiscal sustainability.

The legalization plan outlines the timelines for different activities which will be done in the run up to the referendum in 2020. These activities include inter-party consultation, receiving and analyzing feedback from stakeholders about the legalization model and voter education about the entire legalization plan after all the relevant documents have been printed and disseminated widely across the country.

If recreational marijuana is finally legalized through the referendum, New Zealand will be the first country in the world to legalize adult-use marijuana through a referendum. Uruguay and Canada took a legislative route.

ChineseInvestors.com, Inc. (OTCQB: CIIX) and Chemistree Technology Inc. (CSE: CHM) (OTCQB: CHMJF) applaud the government in New Zealand for taking the time to formulate a detailed plan through which the people will be asked to make an informed decision about recreational cannabis. All that is left is to implement the plan and respect the decision made by the voters.

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420 with CNW – Michigan Retailers Ordered to Only Stock Cannabis from Licensed Growers

Michigan has been struggling to get a handle on the illegal cannabis market and their latest action has seen them instruct medical marijuana provisioning centers to stop accepting cannabis grown by caregivers and instead only accept supplies from growers licensed by the state.

LARA (Licensing and Regulatory Affairs) also says that caregiver growers can start selling cannabis to the licensed growers and processors, but the caregiver growers will have to meet the cost of testing their cannabis before the licensed processors and growers can accept it.

Rejecting the cannabis grown by caregivers is just another twist in the regulatory chaos as the state struggles to move from a largely informal industry to a regulated one. Their efforts in this direction have been met by legal challenges initiated by the unlicensed cannabis businesses which the regulators wanted to close.

Judge Stephen Borrello of the Court of Claims has variously described what the regulators are doing as “freakish or whimsical.” The Judge has so far made several rulings against LARA, the most recent being one in which unlicensed dispensaries can continue operating for 60 days after LARA has rejected their application for a license.

During that court session, the judge gave the regulators the liberty to decide whether caregiver growers could continue supplying medical cannabis to dispensaries. The regulators promptly acted on that and issued their guidelines barring caregiver growers from taking their cannabis to dispensaries.

This action by LARA has stirred what is an already sour relationship between the “corporate cultivators” and the caregiver cannabis growers. The caregiver growers see the large corporate cultivators as being only interested in making profit at the expense of patients while the big growers see caregiver growers as people who supply cannabis of questionable quality to undercut their profits.

Those accusations have some basis, because some of the cannabis from caregiver growers has tested positive for mold, E-coli, Salmonella and other contaminants. Nonetheless, consumers prefer the cannabis from caregiver growers because it is more affordable and is in tune with the needs of patients.

Critics of the action taken by LARA now say that the caregiver growers are simply going to start supplying the unlicensed sellers, to the detriment of the legal cannabis industry since these products will not have to undergo the costly testing processes required in the regulated market.

Canopy Rivers Inc. (TSX.V: RIV) (OTC: CNPOF) and Cannabis Strategic Ventures, Inc. (OTC: NUGS) hope that the regulators take well-considered decisions so that the medical cannabis industry in Michigan can finally stabilize.

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Surging Vape Market Propels Smart Brands Growth

CannabisNewsWire Editorial Coverage: The growth of vaping has led to the emergence of a new sector.

Vaping is tied to the tobacco and cannabis industries but has become popular as a healthier delivery system for both products.
Investment and mergers are fueling the industry’s expansion.
Working smarter in the competitive market may be savvy strategy.

Many companies are jockeying for position in this new space. Interestingly, some of the more successful companies may not necessarily be the big players but those that work smart with what they have. Among these smaller smart companies is VPR Brands LP (OTC: VPRB) (VPRB Profile), which has used innovative products and marketing tactics to expand its customer base. At the opposite end of the spectrum is Altria Group Inc. (NYSE: MO), a tobacco giant that has invested heavily in vaping. Greenlane Holdings Inc. (NASDAQ: GNLN) works on the distribution side and has impressive reach, supplying nearly 10,000 stores and two major online outlets. KushCo Holdings Inc. (OTCQB: KSHB) has moved successfully from packaging into cannabis. Thanks to cannabis-based medicines such as those created by GW Pharmaceuticals plc (NASDAQ: GWPH), vaping may even develop a place in medical care.

To view an infographic of this editorial, click here.

Vaping Takes Off

Vaping has taken off in a huge way over the past few years. One in 20 American adults now vapes, and the habit has gained global popularity as an alternative to smoking. This trend has led to the rise of companies providing vaping products, primarily the hardware and the fluids used to manufacture those products. The industry, which didn’t even exist just over a decade ago, was valued at more than $7 billion in 2016 and has kept on growing, with observers predicting that it will reach an estimated $47 billion by 2025.

The market is already being shaped by a number of larger and seemingly more profitable vaping companies. But with the whole industry still so young, the space seems full of flux and uncertainty. Smaller companies are sometimes proving more profitable in practice, and there’s potential for the balance of influence to be transformed.

An Active Market

The vaping market is still going through the early stages of development. Smaller companies such as VPR Brands LP (OTC: VPRB) can compete with established big names because even those names are relatively new in the sector. With only a decade of development, none of these businesses can claim the sort of extended heritage and track record provided by leading tobacco and alcohol brands.

The vaping industry has found its moment through the arrival of two important but conflicting trends: a shift away from smoking and the rise of legal cannabis.

In western countries, millions of people are trying to give up smoking because of its harmful health effects. Older substitutes such as nicotine patches and gum don’t provide the sense of ritual or social experience that smoking does, but vaping can fill that niche. That option appears to be a popular choice among ex-smokers.

At the same time, cannabis has been legalized across swathes of North America and beyond. Whether used for medicine or recreation, the plant is often at its most effective when inhaled, and as with tobacco, this is part of the ritual surrounding it.

However, at a time when the public is becoming more health conscious, straightforward smoking is unappealing to many, thus leading to vaping appearing to be a more attractive alternative. VPR Brands has seen success by providing a range of vaping products that fits the needs of cannabis consumers. By providing an alternative way to consume the active chemicals from cannabis, vaping companies are saving cannabis consumers from a return to smoking.

Mergers, Acquisitions and Investment

Investors have been quick to see the opportunity that this trend has created. Money has flowed into vaping companies, allowing them to continue research, development and marketing of new products.

Business journalists and commentators have been following this trend. A senior analyst at Cowen recently pointed out that vaping is underrated as a factor in the cannabis sector, where much of the attention is on smoking and edibles. VPR Brands has seen coverage in the press as ‘one to watch’, thanks in part to its high-quality vaping products.

Even the big rivals to vaping are getting in on the act. The company behind Marlboro cigarettes has made a substantial investment in an e-cigarette company. While established companies may prefer their business models continue as they are, savvy businesses recognize the need to adapt with the times, and fear of missing out has many companies scrambling to get in on the new market.

Vaping and CBD

Vaping plays a particularly prominent part in the CBD market.

CBD is a chemical derived from cannabis but without the psychotropic properties of THC. The plant is more widely legal for sale than other cannabis products, and production has become easier since December, when U.S. authorities legalized the cultivation of hemp, a variant of cannabis rich in CBD but without THC. CBD has become its own growing market within and around the cannabis industry, and smart companies have moved to make the most of the opportunity it offers.

VPR Brands has built a product line specifically for this market, creating not only CBD oils but vaporizers designed to work well with CBD. Its Goldline brand consists of CBD products including vaping liquids and vaporizers. VPR also aims to reach CBD consumers who don’t vape, through edibles such as Honeysticks, made of CBD-infused honey.

Marketing these products hasn’t always been straightforward. Legal questions over the status of CBD meant that CBD products weren’t allowed at the National Association of Convenience Stores expo in 2018, despite their popularity in some stores. VPR Brands transcended this marketing obstacle through hemp products that didn’t contain CBD but instead acted as ambassadors for the Goldline brand. With recent legal changes, it’s unlikely that even these obstacles will be in place for long.

David Versus Goliath

In this surging and shifting market, victory doesn’t always go to the biggest companies. In fact, smaller brands are often able to outperform larger ones in key areas, providing they work smart.

Large companies sometimes rely on soaking up losses to let them ride to profit in the long term. Smaller companies, such as VPR Brands that can’t afford those losses, have to work smarter, aiming at obtaining better results. VPR’s seasoned management team, including veterans of Vapor Corp., have developed a fiscally smart strategy that minimizes outstanding shares and reduces operating losses while increasing sales.

One of the strongest indicators of VPR Brands’ performance is its debt-to-sales ratio. The company is currently selling five times as much as it is borrowing, in contrast with competitor ratios that in some cases average two to one. Who’s winning on vaping depends upon how success is measured, and larger companies inevitably have more cash coming in. But when those numbers are balanced against losses, the smaller rivals, forced by necessity to work smart, may evolve into more effective players and triumph in the long term.

The State of Vaping

A variety of companies, both big and small, are operating in the vaping space.

One of the biggest players is the Altria Group Inc. (NYSE: MO). One of the world’s largest tobacco producers, Altria is the corporation behind such famous cigarette brands as Marlboro and Benson & Hedges. The company recently acquired a $12.8 billion stake in Juul Labs, the biggest player in the vaping industry, in a move designed to give it a piece of this fast-growing market. With decades of experience grappling with government regulation, Altria’s expertise is likely to shape the future of the vaping market far beyond its own share of the pie.

Greenlane Holdings Inc. (NASDAQ: GNLN) is a leading business in the distribution of vaping products. Its customers in the United States and Canada cover nearly 10,000 retail locations. The company also operates two of the most visited North American direct-to-consumer e-commerce websites for vaping. The company went public on the Nasdaq in April this year, making it one of the biggest cannabis-related companies available for trade on a major U.S. exchange.

KushCo Holdings Inc. (OTCQB: KSHB) entered the sector from packaging solutions, an unglamorous but vital part of the industry. The company has since moved heavily into the cannabis sector, creating a one-stop shop for cannabis products that places it squarely in competition with others in the CBD and vaporizing markets. The move has resulted in the company posting its all-time high revenue in the latest quarter. KushCo also recently secured long-term supply arrangements with three large companies, which are predicted to provide $75 million.

Unlike traditional smoking, vaping is finding a place in the medical sector. The use of CBD and other active ingredients from cannabis to treat a range of ailments means that vaping may provide a way to consume medicines. GW Pharmaceuticals plc (NASDAQ: GWPH) is working on cannabis-derived medicines, with a particular focus on tackling forms of epilepsy, for which it is currently presenting data on successful trials.

Vaping has become an important part of the combined tobacco and cannabis markets, and as its reach grows, so will the companies providing it.

For more information on VPR Brands, visit VPR Brands LP (OTC: VPRB)

About CannabisNewsWire

CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.

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Full-Spectrum Seed-to-Sale Model, Quality Branding Key to Cannabis Success

CannabisNewsWire Editorial Coverage: Last year was a year of maturation for the cannabis market.

California’s growing pains are a recipe for success for handful of savvy operators
Brands, consistency and scalability likely deciding factors for many companies
Projected global market size an open-and-shut case for scaling up NA sector

The market growth resulted from retailers in nine legal adult-use states being pushed beyond the sector’s historically core demographics, targeting fast-growing new segments such as women, with an emphasis on elements such as wellness and clearly labeled/low-dose alternatives. That trend was reinforced with CBD breaking out into the mainstream, as industrial hemp became legal throughout the United States, and cannabis companies looked for ways to stand out from the crowd. Some companies were more successful at this than others, with TransCanna Holdings Inc. (CSE: TCAN) (XETR: TH8) (TCAN Profile) making huge strides recently to expand the upper-end procurement part of the business, as well as flesh-out its footprint of branded offerings. Other moves have been made by comparable sector players such as Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), DionyMed Brands Inc. (OTCQB: DYMEF) (CSE: DYME), Cresco Labs Inc. (OTCQX: CRLBF) (CSE: CL) and CannaRoyalty Corp. (OTCQX: ORHOF) (CSE: OH), which are pursuing similarly comprehensive approaches to the sector that run the gamut from raw inputs to changing branding, marketing and distribution methods.

To view an infographic of this editorial, click here.

Diverse Markets Hold Big Potential

California’s administrative and tax regime may have cost the state half a billion dollars or more in potential cannabis market tax revenues through over regulation, with the state being the first market in the world since transitioning in 2016 from medical to recreational that has actually witnessed a subsequent decline in the size of the legal retail market. This is in stark contrast to Massachusetts and Nevada, which both dramatically outperformed expectations. And while the California legal retail market may have come in around half a billion shy of projected targets, the illicit market is doing just fine, with an estimated value of $3.7 billion last year, accounting for as much as 80% of all sales. This is a clear indicator that the potential exists to have hit analyst-projected targets for the legal market, had California regulators not handicapped a growing industry just as things were really getting started.

In fact, with thousands of cultivation and manufacturing licenses set to expire in the next few months and only Senate Bill 67 on the horizon to address the problem, some analysts are predicting that California may see supply shortages in the near future. At any rate, the national and international markets are shaping up quite nicely, with the most recent worldwide consumer spending estimates from Arcview Market Research and BDS Analytics showing a 39.1% year-over-year jump to $17 billion in 2019 and beyond. This is a market which is on track to run at an estimated 26% CAGR through 2022, hitting upwards of $31.6 billion, making it an extremely lucrative export market for sophisticated North American cannabis brands.

Self-Contained Ecosystem and Closed-Loop Brands

Founded in 2017 with the goal of genuine seed-to-sale capability and rapidly acquiring a bevy of premium cannabis brands, Vancouver-based TransCanna Holdings Inc. (CSE: TCAN) (XETR: TH8) is pursuing a true “self-contained ecosystem” approach to the sector via its California-based, wholly owned subsidiaries. TransCanna is intent on ensuring maximum brand consistency by handling every aspect of the production process — from procurement and branding and design through to distribution, transportation, marketing and sales.

The company’s latest acquisition announcement will see TransCanna picking up such well-performing Goodfellas Group LLC brands as Daily Cannabis Goods, which saw more than 2,100 units shipped during its first month in August of last year before breaking the 10,000 mark just four months later. TransCanna anticipates adding at least three more items to the Daily Cannabis Goods product mix and also managed to pick up the proprietary, in‐house Simple brand of user-friendly Simple Kit™ products in the Goodfellas Group deal, which are specially crafted to give new users a positive first cannabis experience.

Forged in the Crucible of a Nascent Industry

The company cut its teeth amid the growing pains of California’s burgeoning — but still very young — recreational market. Today TransCanna appears well poised to successfully deliver on a closed-loop cannabis model that can cost effectively bring goods to market while still dealing with prevailing regulations.

CEO TransCanna Jim Pakulis spoke in mid-April of the company’s tremendous efforts to complete the acquisition of what is arguably the largest vertically-integrated cannabis focused facility in California. The $15 million acquisition consists of a 196,000-square-foot, turnkey manufacturing facility on a 5.5-acre piece of land in Modesto, estimated to be able to support expansion of the site with an additional 400,000 to 600,000 square feet of facilities for cultivation.

Total revenues from the acquisition, including manufacturing, extraction, distribution and cannabis sales, are currently projected to be from $220 million to $363 million a year. A recent independent third‐party business valuation firm’s conclusion put the enterprise value of the proposed business, at around $50 to $75 million. That estimate includes things such as the value of the recently renovated manufacturing facility’s institutional-grade packaging and extraction equipment. This appears to be a sweetheart deal, placing the company in a solid position to take advantage of a potential supply shortfall in California. Similarly, the move sets up TransCanna for success on the rapidly developing national and international stages.

Growth Financing Gone Well

In addition, the company originally announced a CD$10 million broker-syndicated private placement but within short order was oversubscribed to CD$16 million. The funds were used to assist in the aforementioned acquisition and has already executed a sublease agreement for an additional 10,000 square feet of multipurpose floorspace in Adelanto, California.

This satellite facility is the first of five anticipated satellite distribution network facilities that will be strategically located throughout the state to support TransCanna’s goal of quickly having 15 reliable, consistent, branded products on offer at the scale necessary to keep the business growing alongside demand. The completely fenced Adelanto complex is reportedly of superior quality and already has existing round-the-clock armed security, making it a solid deal at a negotiated price of $2 per square foot per month for four years, which is roughly 30% below current market rates.

Furthermore, TransCanna recently applied for a permanent manufacturing, distribution and transportation license for Adelanto, proving that the company’s immediate focus is on ensuring city and state licenses are in hand as soon as possible. The company anticipates applying for licenses with the local regulatory body in Modesto by the first of June. The company anticipates being able to prepare and package the Daily Cannabis Brand half gram pre-rolls at the facility, then transport them straight to dispensaries without the need to involve a third party or incur any additional expenses.

Cannabis Companies Making Big Moves

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), one of the largest players in the space, has made big moves lately to expand its footprint in both North American and Europe. In April, Canopy announced a definitive agreement to acquire leading multistate operator Acreage Holdings Inc. outright in a deal valued at around $3.4 billion. This massive deal could make Canopy a real juggernaut, with a leading position in every major international market for legal cannabis. The move will give the company a sizeable presence in the United States as Canopy rolls out its U.S. hemp operations in parallel, which will span cultivation, extraction, processing, and packaging.

DionyMed Brands Inc. (OTCQB: DYMEF) (CSE: DYME), while still a relatively small company compared to others in this area, has nevertheless put together a compelling model. The company’s approach spans multistate cannabis brands as well as a distribution and direct-to-consumer delivery platform. The company recently managed to secure a roughly $7.34 million agreement with a syndicate of agents co-led by Canaccord Genuity Corp. and leading Canadian independent investment dealer Cormark Securities.

Cresco Labs Inc. (OTCQX: CRLBF) (CSE: CL) has also been making big moves in the sector, recently prequalifying for a cultivation and processing license in Michigan and signing a letter to acquire VidaCann, one of the biggest and most advanced medical cannabis providers in Florida. The VidaCann deal would put Cresco in operation in six of the country’s most populous states, granting access to some 140 million potential customers (roughly 65 percent of the total addressable U.S. cannabis market).

Cresco also signed a definitive agreement in April to acquire California-based CannaRoyalty Corp. (OTCQX: ORHOF) (CSE: OH), which does business under the well-known Origin House moniker as a leading cannabis products distributor, as well as a provider of brand support services. CannaRoyalty has built a serious operation with more than 50 brands under the Origin House name. The Cresco Labs acquisition would harness the branded product development and distribution expertise of two of the industry’s top players.

TransCanna is banking on the future of intelligently executed cannabis brand offerings, not just in California and North America but around the world as well. With longer-term projections of $57 billion by 2027 for the global market, the company could be setting the cornerstones today of a self-contained ecosystem weed empire that may one day see its premium brands in dispensaries all over the globe. Investors may want to keep tabs on TransCanna as the company’s growing brand portfolio and physical presence in California begin to bear fruits.

For more information on TransCanna Holdings, visit TransCanna Holdings Inc. (CSE: TCAN) (XETR: TH8)

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420 with CNW – Two Cannabis Bills to be Voted on by Congressional Committee this Week

Two bills dealing with access to medical marijuana by veterans are slated to be voted on by a congressional committee today (Wednesday, May 8). This vote comes barely a week after the Veterans’ Affairs Subcommittee of Health conducted a hearing on the bills.

One of the bills up for a vote has to do with allowing VA doctors to prescribe medical marijuana. This bill also seeks to codify into law an existing policy which protects the VA benefits of veterans who use medical cannabis in accordance with state law.

The second bill that will be voted on seeks to compel the VA department to conduct research about the medicinal effects of cannabis for the common conditions which veterans suffer from. These include post-traumatic stress disorder and chronic pain.

A third bill which isn’t going to be voted on focused on allowing VA doctors to recommend medical cannabis for veterans who can be helped by the substance. This bill, sponsored by Rep. Earl Blumenaeuer, will not be voted on because its contents are already included in another bill that has been scheduled for a vote.

The broader bill also includes a clause which stops VA doctors from making medical records that state that a veteran suffers from “substance abuse disorder” if that individual uses cannabis in a state where marijuana is legal.

Another clause which was added to that bill asks the VA secretary to generate new diagnostic codes tailored to cannabis use.

Advocates have urged the Veterans’ Affairs committee to take action now so that veterans no longer have to go underground to access medical cannabis to relieve their symptoms. The advocates added that medical marijuana is here to stay, so there is no point in continuing to think along prohibitionist lines.

These bills to be voted upon mark yet another step in the push to reform federal marijuana laws. In March, another House committee passed a bill which intends to protect banks from federal prosecution resulting from the banks’ dealings with state-legal marijuana companies.

These bills being fronted in different House committees are in line with the “blueprint” designed by Rep. Blumenaeuer last year. In that blueprint, the congressman urged different committees to push through marijuana law reforms that fall in the ambit of their committees so that at the end of that process, the overall federal marijuana policy will have been overhauled.

Earth Science Tech, Inc. (OTCQB: ETST) and Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) hope that the bills are passed by the House committee and the entire Congress so that the men and women who have served this nation in the armed forces access medical marijuana in their time of need.

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420 with CNW – Oregon Legislators Discuss Exporting Marijuana Surplus

The production of marijuana in Oregon is so high that the Oregon Liquor Commission estimates that the available inventory can address the supply needs of the state for nearly 7 years if demand remains at the current level. This overproduction has prompted lawmakers to consider exporting the excess cannabis to other jurisdictions where recreational marijuana is legal.

Senate Bill 582 is a preemptive step aimed at getting Oregon ready to move fast once the federal government relaxes its marijuana laws. Currently, marijuana is a schedule 1 controlled substance which cannot cross state lines.

Cannabis law reform at the federal level is expected to take one of two forms in the foreseeable future. First, the States Act which is before Congress seeks to get federal recognition that states have a right to make and implement their own marijuana laws without interference from the feds.

Alternatively, a statement by the Justice Department to the effect that the transfer of marijuana between states wouldn’t be a “priority for law enforcement” at the federal level can be interpreted to mean that states which have legalized marijuana can trade the substance between themselves.

Mike Getlin, a cannabis law reform advocate, says that should marijuana trade between states become a reality and Oregon isn’t poised to jump right in from the very onset, then a delay of even six months would be sufficient to knock the state out of contention as a major player in the interstate cannabis trade. Such an eventuality would flip the oversupply in Oregon from an asset to a major problem which can cripple the state’s cannabis industry.

SB 582 has provisions which would allow the Governor of Oregon to negotiate arrangements through which Oregon’s surplus marijuana can be sold to states where more supply is needed. The bill stipulates that only states where recreational marijuana is legal are eligible for an export and sale arrangement with Oregon.

Casey Houlihan, the head of the Oregon Cannabis Retailers Association, testified before the senate committee and revealed that the excess cannabis in Oregon will find its way to other states one way or the other, so it is better for mechanisms to be put in place so that the export can be done in a regulated way that brings revenue to state coffers.

Some of the cannabis companies that testified before the senate committee revealed that they had reduced their workforce by up to 80 percent because of the drop in marijuana prices due to oversupply within Oregon.

Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) and Youngevity International, Inc. (NASDAQ: YGYI) look forward to a viable solution that can save the cannabis industry in Oregon from collapsing due to excess production.

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420 with CNW – New Hampshire Senate Okays Medical Marijuana Home Cultivation

House Bill 364, a proposed law that seeks to allow patients taking medical cannabis to grow marijuana at home, has been approved by the senate in New Hampshire. The vote was close, but the bill sailed through 14-10.

Under the proposed legislation, patients who have been enrolled on the medical marijuana program of the state can have 12 medical marijuana seedlings, 3 young plants and 3 mature plants for their own use.

Currently, New Hampshire has 7,000 registered patients in the medical cannabis program. These patients have been compelled to get all their medical marijuana from just four Alternative Treatment Centers operating in the state.

The small number of retail outlets has resulted in high medical cannabis product prices, and many patients who cannot afford those products have resorted to using prescription opioids and other potentially harmful alternatives since medical marijuana isn’t covered by most insurance companies.

Activists have welcomed the bill saying that it will give patients a viable alternative to the expensive medical marijuana available at Alternative Treatment Centers.

There was resistance to the bill in the senate, and several changes were made in order to accommodate the concerns of the dissenting voices. For example, the bill initially had a provision which would allow a medical cannabis patient to gift marijuana to another patient who is registered to use medical cannabis in the state.

This provision was removed because there were concerns that such gifting would open the way to medical marijuana getting to the wrong people, such as criminal gangs selling marijuana on the black market.

Despite the changes, some senators, such as Sen. James Gray, are still adamant that legalizing home grows isn’t a good move. He said that the state has a rigorous system in place to make sure that the licensed cultivators only supply their products to the state-approved retailers. Allowing home grows creates a regulatory nightmare because it will be hard to monitor the plants grown by each patient who chooses to grow medical marijuana, Gray added.

Now that the bill has received senate approval, it now heads back to the House of Representatives where it had initially been approved and sent to the senate. The bill is coming back to the House so that the lawmakers there can consider the changes made by senate.

If the lawmakers in the House of Representatives pass the bill in its current form, then it will be sent to the desk of Gov. Sununu for a final decision on whether it becomes law.

TransCanna Holdings Inc. (CSE: TCAN) and Therma Bright Inc. (TSX.V: THRM) (OTC: THRBF) sympathize with the patients and call upon the authorities to pass the bill quickly so that those who cannot afford the medical cannabis in Alternative Treatment Centers can grow their own.

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