Tag: ACB

CBD Going Mainstream amid Flood of New Products, Celebrity Endorsements, and Emerging Consensus about Benefits

CannabisNewsWire Editorial Coverage: Analysts at Brightfield Group see CBD (cannabidiol) gobbling up a sizeable chunk of a projected $100 billion nutraceuticals 2022 U.S. market.

  • $22 billion-plus CBD market could eclipse broader cannabis market
  • Growing consensus about health benefits backed by clinical work, personal endorsements
  • CBD found in everything from beverages and dog treats to pharmaceuticals and wellness products

The opening of the CBD floodgates represents a huge opportunity for plant-based wellness and health-product developers such as Wildflower Brands Inc. (OTCQB: WLDFF) (CSE: SUN) (WLDFF Profile) and Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB), a lifestyle-oriented developer of cannabis and CBD consumer products. Similarly, some of the fastest-growing producers in the industry today, such as Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD) and HEXO Corp. (NYSE: HEXO) (TSX: HEXO) all stand to benefit as the rising tide of the CBD market continues to see tremendous growth for a number of reasons.

To view an infographic of this editorial, click here.

An Established Wellness Ingredient Goes Mainstream

The recent passage of the Hemp Farming Act in the 2018 U.S. farm bill made hemp an ordinary agricultural commodity, swinging open the door for hemp-derived CBD. The industry is seeing everyone from A-list celebs at the Oscars to noted medical professionals such as American neurosurgeon Dr. Sanjay Gupta extolling the health benefits of CBD.

Already incorporated into to a wide variety of functional foods and beverages, CBD has also started to show up in coffee and cocktails, with CBD drinks being added to menus at bars and coffee shops across America. Many users swear by the efficacy of CBD to combat ailments such as various anxieties, sleeplessness or physical pain. Little wonder that CBD is going mainstream, and product developers have been racing to put the stuff into every kind of consumer product imaginable, from health and beauty items for the skin to tasty treats for the family pet. The accumulating evidence for CBD’s health benefits also owes a great deal to watershed achievements such as Epidiolex, a CBD-derived anti-seizure medication that has been through numerous clinical trials, becoming FDA-approved in severe forms of childhood epilepsy.

There appears to be an emerging consensus among consumers that CBD is strong enough to treat something like epilepsy but also safe enough to be used for daily aches and pains or address the myriad anxieties that plague the modern mind. This awareness, combined with the rapid proliferation of CBD consumer products ranging from vape pens to functional foods, has led to a kind of grassroots market revolution. Any stigma remaining due to laymen confusing CBD with THC is rapidly eroding, particularly with the likes of homemaking legend Martha Stewart now providing her knowledge of consumer products to CBD developers. And household names such as Kim Kardashian, Olivia Wilde and Jennifer Aniston are also going on record as having enjoyed the health benefits associated with their personal consumption of CBD products.

Growing Consensus about Healing Power of Plants

Speaking of A-list celebrities and CBD products, it was the Wildflower Brands Inc. (OTCQB: WLDFF) (CSE: SUN) CBD+ Healing Stick that found its way into the gift bags of the stars during Oscar weekend 2019. Packing a walloping 500mg of highly concentrated, full-spectrum CBD, Wildflower’s cooling and soothing stick is easy to apply for targeted pain relief and skin care, providing relief through a unique CBD blend that includes therapeutic ingredients such as arnica, wintergreen and other essential oils.

A reputable brand whose stated mission is to connect people to the healing power of plants via the company’s increasingly sophisticated line of CBD vaporizers, capsules, tinctures, soaps and topicals, Vancouver-based Wildflower Wellness packs its extracts with essential amino acids and beneficial terpenes, the organic compounds that give plants flavor and scent.

The company’s products are made in the United States at Wildflower’s GMP facilities and are third-party lab tested; they are also backed by a 100 percent satisfaction guarantee. Such well-formulated, convenient and discrete products as Wildflower’s disposable ACHES CBD+ vaporizer are increasingly enjoying widespread acceptance. This is in part due to education of the consumers by cannabis and wellness influencers.

Wildflower Wellness has even partnered with Bridges General to take that company’s reimagined convenience store concept to the next level. The partnership fuses together the popularity of the Bridges General design-centric retail space that delivers convenience for the on-the-go urban professional with an engaging opportunity to experience and learn about the benefits of CBD. The partnership is already serving some of the most innovative minds in tech at its Lower Manhattan store, as well its Madison Avenue Bridges General store. The company has also engaged Retail Worx to establish shop-in-shop retail availability at more than 20 locations in the heart of New York City’s booming cannabis market.

Industry Seeing Retail Renaissance in Consumer Products

Wildflower also has a surprisingly impressive retail reach for a company of its size, with the Wildflower Wellness brand already enjoying distribution in key states, such as Washington at more than 200 retailers. The company’s California-based King Extracts brand is focused on cannabis technology and delivery systems.

King Extracts’ flagship product, the King Recharge, is a discreet but powerful little pocket vaporizer that comes in its own sleek charging and storage case, which has room for two 500mg cartridges and a backup battery. King Recharge offers fractionally distilled CO2 extractions in exceptionally clean and sophisticated blends that utilize proprietary terpenes in order to deliver a full, robust flavor profile. Sativa, Indica and Hybrid, as well as two limited-edition Sativa flavors (watermelon and bubble gum), are currently available. Additionally, Wildflower’s growing national distribution arm includes over 80 other wellness and healthcare practitioners, bringing the company’s total to some 300-plus stores nationwide.

The company has even branched out into physical retail itself, harnessing the power of increasing brand recognition, a firm footing in the California market and tightly knit relationships with local hospital oncology departments and community programs. The company has launched its own dispensary in Los Angeles and provides on-demand, legal and licensed cannabis delivery services to adults in the L.A. area. The second quarter of 2019 saw the 10th consecutive quarter of increased revenue for Wildflower, with $1.4 million in sales underscoring a burgeoning direct-to-consumer online channel that witnessed 300 percent growth last year alone.

Many analysts are saying that the CBD rush is just getting started. One recent estimate indicates that the CBD market alone could eclipse the entire remainder of the cannabis market combined. Wildflower can apparently read the handwriting on the wall and intends to apply the $1.882 million in proceeds from the company’s recent, oversold private placement to good use.

A Rising Tide Lifts All Boats

Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB) is also enjoying the upside as CBD goes mainstream, with increasing traction for the company’s Seventh Sense CBD-infused body care collection. Similar upside is being seen across the company’s other retail arms, including curated product mix Meri+Jayne, CAMP lifestyle product kiosks, women’s wellness focused Green Lily and Nevada-based The +Source dispensaries. Its Indiana shop marks the start of a massive retail push that will see Green Growth Brands leverage newly gained access to some 108 prime retail locations at thriving malls throughout the United States. The push is backed by an $85 million private placement from late last year, which will also bolster the company’s XanthicBiopharms operation and may open the door to a variety of strategically significant new products.

Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), one of the biggest and fastest growing producers in the industry today, has seen a somewhat meteoric rise since opening the company’s initial facility in Alberta in 2013. Today, Aurora is engaged in an aggressive international expansion, grounded in an increasingly diverse constellation of subsidiaries and strategic partnerships. Global reach and proprietary high-yield production technologies and techniques have put Aurora on the map as a funded producer, which can deliver more than 500,000 kilograms per year.

Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD), a premier certified organic Canadian producer, is another input supplier benefitting from the increased market exposure CBD has been getting, with 2018 being a pivotal year for the company. Green Organic Dutchman executed two bought deals worth $101.2 million in gross proceeds and pulled another $77.6 million in gross proceeds via private placements. The company was also able to report a healthy $263.5 million in cash and restricted cash for 2018. The Green Organic Dutchman is in a solid position to expand existing facilities and pursue international growth into markets such as Jamaica.

HEXO Corp. (NYSE: HEXO) (TSX: HEXO) is a notable low-cost producer with more than 579,000 square feet of production capacity and a 1,000,000-square-foot facility currently under construction. The company recently moved to acquire an additional 470,000 square feet of production space via an all-share acquisition of Newstrike Brands Ltd., valued at approximately $263 million. This news comes on the heels of the company’s recent announcement that it is the first cannabis company to join the FCPC (Food & Consumer Products of Canada), arguably the biggest voice in Canadian food, beverage and consumer products. This prestigious feather in HEXO’s cap was acquired just days prior to announcing impressive results for what is the first full quarter following the legalization of adult-use cannabis in Canada.

With the 2018 Farm Bill thrusting hemp-derived CBD into the limelight, the broader industry likely stands to experience a rising tide that will lift all boats.

For more information on Wildflower Brands, visit Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF)

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.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

CBD Industry Soars in Wake of Farm Bill; Massive Growth Projected to Continue

CannabisNewsWire Editorial Coverage: Following the passing of the 2018 Farm Bill, CBD sales have continued their massive growth in the United States and beyond.

  • Cannabidiol (CBD), a chemical found in cannabis, has seen a huge growth in sales over the past few years.
  • CBD can be derived from hemp, and the passing of a new farm bill in the States makes this form of cultivation legal at a federal level.
  • This forms part of wider growth in the cannabis market, as companies expand their operations in North America and even beyond.

Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) (WLDFF Profile) is among the companies benefiting from this market, with an increase of more than 300 percent in online sales for its CBD products last year. Some companies are specializing in particular niches, such as The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD) with its focus on sustainable organic plants. Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) is making moves into Europe, with cannabis oil sales in Germany and investment in a Portuguese grower. Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB) is launching new products and opening its own shops across the United States. And HEXO Corp. (NYSE: HEXO) (TSX: HEXO), which recently expanded from medical cannabis into the recreational space, has seen gross revenue increase more than 1,000 percent as part of this rising tide.

To view an infographic of this editorial, click here.

CBD Drives Growth for Hemp

Hemp, a plant that has long been out of the public eye, is returning to the spotlight in a big way. A non-intoxicating form of cannabis, hemp was primarily used for centuries as a natural source of fibers, which were used in cloth, rope and even building materials. Many ships in the great age of sailing relied on hemp for their riggings.

But in the sweeping anti-drug crusades of the 20th century, hemp became caught up in attacks on cannabis. Campaigners who were determined to save consumers from their own pleasures had cannabis outlawed at a time when there was little effective way of distinguishing between hemp and other forms of cannabis. No longer needed for cloth and rigging, hemp was made illegal.

Now all that has changed — nowhere more dramatically than in the United States of America.

The Farm Bill

Hemp is making a comeback thanks to the growing popularity of cannabidiol (CBD), an active ingredient found in many forms of cannabis. It’s an ingredient that companies such as Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF), a creator of plant-based health and wellness products, have been making extensive use of in recent years. Combined with other naturally occurring plant compounds, full-spectrum CBD is used in a range of Wildflower products, including capsules, topicals, soaps, tinctures and vaporizers.

Until recently, the production of CBD in the United States faced serious restrictions and uncertainties. Many states had legalized the production of cannabis in some form, either for medical or for recreational use. In addition, there were licensed trials of the cultivation of hemp, which can be rich in CBD. But all of these plants were illegal at a federal level, meaning that even with state-level approval, cultivators faced financial limitations and the threat of government action.

All that changed in December with the passage of the 2018 Farm Bill. One of a regular series of bills governing the U.S. agricultural sector, this bill removes hemp from the list of controlled substances, making it unambiguously legal for farmers to grow hemp. This changes the landscape for CBD products in the States. Companies such as Wildflower, which has already got its products into many outlets in the health and wellness sector, will be able to expand their reach even further.

States have the right to set their own rules around restricted substances, and some states have taken an unsympathetic attitude to CBD. The Farm Bill doesn’t force states to change this attitude, but there are already signs that public opinion on all levels are changing. The regulations in many states assume adherence to the federal guidelines, and some states, such as Alabama, have already softened their stance since the Farm Bill became law.

Under the Farm Bill, hemp production will be tightly regulated. Most states already have existing regulations in place, and the U.S. Department of Agriculture will be developing its own regulations as well. But for an established company such as Wildflower, which already works in California, Washington and New York, this shouldn’t be a problem. Cannabis companies are accustomed to working in a tightly controlled environment and meeting the legal standards set by state legislators, as well as the product standards required by retail outlets. In that context, working within new federal regulations shouldn’t present a significant challenge, while the existence of consistent national standards will create opportunities for growth.

CBD Demand Grows

The Farm Bill has been driven in large part by the growing demand for CBD. An obscure and seldom discussed chemical a decade ago, CBD has emerged as an important consumer product. The gradual legalization of cannabis and research into its medical effects drew attention to the fact that those benefits were not all related to THC, the psychoactive chemical that gets cannabis users high. Identified as a chemical with great potential for health and wellness, CBD has started to be marketed in its own right and is used in products such as the Wildflower Wellness line.

Public interest in CBD has grown seemingly from nowhere. Tapping into interest in both cannabis and natural remedies, and offering treatments that may succeed where others have failed, CBD sales have soared. Hemp-derived CBD alone was a $390 million market in 2018 and is expected to reach $1.3 billion by 2022. And that doesn’t even include all the CBD products derived from other forms of cannabis.

The results for producers have been staggering. Wildflower saw its online sales grow by more than 300 percent in just nine months in 2018. In response, the company opened its first New York retail store, a sure sign of a product’s popularity in an age when so many companies are shedding their brick-and-mortar presence.

Looked at globally, CBD is in even better health. The Brightfield Group has estimated that CBD’s value will reach $5.7 billion this year and $22 billion by 2022. While research on the topic is still in its infancy, there is growing evidence that CBD could be used to treat a number of ailments, including certain extreme forms of childhood epilepsy. Even the United Kingdom, a country whose government remains staunchly opposed to the legalization of cannabis, has allowed the use of a CBD drug for this purpose.

Companies producing and selling CBD products are springing up across North America, Europe and beyond. Demand is growing, especially among millennials. That’s bolstering the impressive sales of companies such as Wildflower and putting pressure on politicians to further liberalize the laws around hemp.

Making the Most of a New Market

A lot of companies are now making the most of the growing popularity of cannabis, CBD and hemp.

Given the crossover between liberal attitudes on drugs and an interest in protecting the environment, it’s hardly surprising that specialist companies have arisen that grow organic cannabis. One of these is The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD), which announced last year that it had signed a definitive agreement to acquire 100 percent of the issued and outstanding shares of privately held HemPoland in an immediate accretive cash-and-share transaction. The move gives Green Organic Dutchman access to HemPoland’s vast distribution network, premium Cannabigold brand, and state-of-the-art hemp oil extraction technologies, as well as providing a strategic pathway into the European market for TGOD’s medical and recreational products and licensing deals.

Canada is at the forefront of cannabis legalization, as one of the early adopters of medical cannabis and the first G8 country to legalize its recreational use. As a result, the country has developed several large cannabis companies, including Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB). Aurora has an eye on the global market for cannabis and CBD, recently agreeing to acquire a 51 percent interest in a Portuguese cannabis company, as well starting sales of cannabis oil in German pharmacies.

Like Green Organic Dutchman, Green Growth Brands Inc. (OTCQB: GGBXF) (CSE: GGB) is leaning into the hippy image of cannabis through a brand that places an emphasis on health, wellness and happiness. The company is doing well with the continuing CBD craze and has recently announced the opening of CBD shops in malls in Indiana and Tennessee. The company has also formed an agreement with another company to work on CBD-infused personal care products, as CBD product ranges diversify.

A leading cannabis producer, HEXO Corp. (NYSE: HEXO) (TSX: HEXO) has expanded its interests to include the recreational as well as the medical market. Focusing on cannabis’s place in the wider market, HEXO was the first cannabis producer to join Food & Consumer Products of Canada, a group representing the Canadian food, beverage and consumer products industry. This comes as the company announced a 1,269 percent increase in gross revenue compared with the same quarter a year before, growth exceeding even the impressive performance of the wider cannabis market.

The changing legal status of CBD and the popularity of its products is just one part of a wider picture of cannabis growth, a picture that appears to be bright and promising for companies establishing a stronghold in the industry.

For more information on Wildflower Brands, visit Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF)

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.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Savvy Companies Make Acquisition Moves in Booming Cannabis Industry

CannabisNewsWire Editorial Coverage: As the cannabis sector consistently shows impressive growth, acquisitions within the market allow cannabis companies to develop greater vertical integration.

  • Cannabis companies are looking to acquire other organizations to strengthen specialist knowledge and skills.
  • Similar moves have led to impressive success in industries such as coffee production.
  • The strength of the cannabis market is also attracting other additional investment.

Youngevity International Inc. (NASDAQ: YGYI) (YGYI Profile) is following the vertically integrated model, having recently acquired a company specializing in cannabis processing machinery. Canopy Growth Corporation (NYSE: CGC) finalized an all-cash transaction to acquire one of the world’s most technologically advanced vaporizer companies. In an all-stock option, Aurora Cannabis Inc. (NYSE: ACB) agreed to purchase a British Columbia-based craft grower, which offers premium organic products produced at low volumes. Late last year, MedMen Enterprises Inc (OTCQX: MMNFF) signed a definitive agreement for the acquisition of one of the largest medical cannabis providers in the United States. And with the cannabis sector as a whole seeing healthy growth, GW Pharmaceuticals Plc (NASDAQ: GWPH) recently completing a public offering to fund further growth, raising $345 million to expand its cannabis-oriented pharmaceuticals work.

To view an infographic of this editorial, click here

Cannabis Companies Turn to Vertical Integration

The global cannabis industry continues to grow — especially in the United States and Canada — creating promising opportunities for companies eager to find ways to improve their productivity and leverage their strengths. A wide range of companies covering the production, processing, marketing, and sales of cannabis and cannabidiol (CBD) products are vying for a position in the space. Consequently, smart organizations are looking for ways stand out from the rest.

Many are opting for vertical integration. Their strategy is simple and straightforward — by bringing together production, processing and distribution, companies can cut costs, improve efficiency and ensure quality control.

Acquisitions for Growth

This all-under-one-roof strategy is one that the management at Youngevity International Inc. (NASDAQ: YGYI) not only believes in but has successfully applied. A leading omni-directional lifestyle company, Youngevity recently moved into the cannabis sector through investment in CBD.

CBD is one of two significant active ingredients found in cannabis. Unlike THC, which until a few years ago was the best-known of these chemicals, the nonpsychoactive CBD does not induce the highs or impairment that accompanies THC. In addition, recent research has indicated that CBD could have a broad range of benefits general well-being and health, leading to a burgeoning market for CBD products. This promising research, along with a growing popular acceptance of cannabis, has led to a resurgence in the growth of hemp — a variety of cannabis that can be rich in CBD but low in THC — and hemp-based products.

Youngevity saw the opportunity and entered the cannabis space last year, with the release of its Hemp FX product line. Hemp FX products are designed to help consumers relax and soothe muscle pain. As it launches this new product offering, the company will leverage the success it has already seen through its hybrid model of direct selling, social selling and e-commerce.

To further take advantage of this opportunity, Youngevity has announced its acquisition of Khrysos Global, a large hemp and CBD machine manufacturing company. Khrysos’s proprietary technology is specifically designed to extract active ingredients from hemp and cannabis, thereby providing the best possible yields from crops. The company also offers planning and consulting for cannabis companies looking to take full advantage of technology throughout the extraction process.

“Our acquisition of Khrysos is extremely exciting on a number of levels,” said Youngevity CEO Steve Wallach. “Beyond the fact that Khrysos’ hemp-CBD extraction technology is far more efficient than most anything else on the market, we’re acquiring a turnkey business model here. Their systems are applicable to the entire industry and are immediately implementable across our own line of HempFX products as well as in offtake agreements we have through our existing business relationships. We see this as providing not only immense value to our company, but also to our investors–by selling not just the extraction systems, but also servicing and operating those systems via a rental model, they will provide us with continuous, ongoing profitability.”

Field to Finish

The Khrysos acquisition appears to be a logical step for Youngevity, not only because of the company’s interest in the hemp market but also because of its already-proven business model. This model, which the company refers to as “field to finish,” has been successfully tested through its CLR Roasters subsidiary.

In this model, CLR is involved in every stage in the coffee production process, from farming and green coffee distribution to roasting and sales of branded goods. This vertically integrated approach includes a plantation and dry-roasting facility in Nicaragua, established U.S. facilities and sales networks, and the company’s own coffee brand. The comprehensive approach allows the company to control the entire process of coffee production from the field to the consumer’s cup, not only delivering profit at every level but ensuring the quality and the reputation of the company’s branded products.

The acquisition of Khrysos and a 20 percent ownership stake in the Carolina Cannabis Company allows Youngevity to follow a similar model in the cannabis sector. By taking ownership of the production, processing, branding and sales of its CBD product line, the company plans to profit every step of the way, while also ensuring that its products are produced both efficiently and to the highest standards.

The acquisition also gathers the skills and experience of Khrysos’s technical and managerial staff under the same roof as Youngevity’s already assembled team, another critical advantage. The cannabis sector is still young, and smart companies regularly evaluate and refine their processes as the industry grows and evolves. Having specialist knowledge about the equipment used in processing cannabis will only strengthen Youngevity’s ability to be nimble and adapt, optimizing its processing systems and ensuring a smooth supply chain and efficient manufacturing.

Like any win-win acquisition, both the purchasing company and the company being acquired are set to benefit from the deal. Youngevity’s experience in reaching customers will provide opportunities for the technology developed by Khrysos to expand and reach a wider market, scaling up its equipment and advisory business.

“This is an exhilarating time for us,” said Dave Briskie, president and CFO of Youngevity. “This is just the first step Youngevity plans to take as we look to continue developing in the hemp-derived CBD industry. Right now, that industry is expanding so quickly that companies are struggling to keep up with demand. So acquiring the production capabilities of Khrysos, and adapting a creative model that allows us to upscale the usage of its technologies across our own properties and the properties of our partners — I feel — really stakes our claim within the industry at large.”

An Industry Expanding

Youngevity’s work represents only one part of a broader wave of expansion for the cannabis industry.

Canopy Growth Corporation (NYSE: CGC) has acquired Storz & Bickel, a vaporizer design and manufacturing company with a 22-year track record of breakthrough innovations. The move brings together the world’s most technologically advanced vaporizer company and world’s leading cannabis company and will enhance Canopy Growth’s product device development capabilities. Canopy Growth is dedicated to advancing the world’s perception of cannabis by focusing on research, product development, and innovative production capabilities by offering brands consumers can trust.

In January, Aurora Cannabis Inc. (NYSE: ACB) signed a letter of intent to acquire Whistler Medical Marijuana Corporation in an all-share transaction valued at up to approximately $175 million. Whistler has developed one of Canada’s most iconic cannabis brands, built on quality, award-winning organic certified BC bud. The Transaction is expected to provide Aurora with a premium and differentiated organic certified product suite, expanding both its medical and adult-use offerings, and reinforcing Aurora’s presence in the well-established west coast cannabis market.

In one of the largest cannabis acquisitions in history, MedMen Enterprises Inc. (OTCQX: MMNFF) entered an agreement for the acquisition of Chicago-based PharmaCann, one of the largest medical cannabis providers in the U.S. The move is will permit the company to operate 76 retail stores and 16 cultivation and production facilities in 12 states. Through the transaction, MedMen is anticipated to add licenses in Illinois, New York, Pennsylvania, Maryland, Massachusetts, Ohio, Virginia and Michigan.

A world leader in the development of cannabis-related medicine, GW Pharmaceuticals Plc (NASDAQ: GWPH) has built a strong research program and developed remarkable manufacturing expertise. With its public-offering expansion, the already-strong company becomes a major presence in one of the most attractive investment sectors. This funding allows GW Pharmaceuticals to keep growing its impressive research and production work.

With these strategic moves made by companies intent on leveraging their positions in the growing cannabis market, the time appears ripe for interested investors to take a closer look at the industry’s potential.

For more information on Youngevity, visit Youngevity International, Inc. (NASDAQ: YGYI)

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.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Cannabis Cultivators Profit from Growing Legal Market

CannabisNewsWire Editorial Coverage: The growth the legal cannabis market has created has turned cultivation facilities into invaluable assets.

  • The cannabis market is predicted to generate $146 billion in revenues by 2025.
  • Legal changes are accelerating this expansion in the United States and beyond.
  • Cultivation facilities are fundamental to this growth, providing the raw materials for the cannabis industry.

Cannabis Strategic Ventures (OTC: NUGS) (NUGS Profile) recently announced plans to establish a multi-acre cultivation facility in California to meet market demands. Tilray Inc. (NASDAQ: TLRY) is increasing its cultivation space through the acquisition of Natura Naturals Holdings. In addition, the need to equip cultivation facilities is fueling growth for hydroponic suppliers such as GrowGeneration Corp. (OTCQX: GRWG). Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) has issued a letter of intent to acquire Whistler in an effort to increase cultivation. Meanwhile, Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) is looking beyond North America, cultivating new markets in Europe.

To view an infographic of this editorial, click here.

Cannabis Cultivation Provides Prime Opportunity

The continuing growth of the cannabis industry has created a powerful investment opportunity around cultivation sites. These farms are the bedrock of the industry, producing the raw materials that are essential to both medical and recreational customers around the world. Given the balance of supply and demand, companies with cultivation sites can practically guarantee themselves a market for their product.

One of the reasons behind the high value of these sites is the continuing development of cannabis-friendly regulations. State and federal laws becoming more cannabis friendly, and as that happens, the industry appears destined for substantial growth.

Potential of the Cannabis Cultivation Market

The growth of the cannabis sector has led to the rise of companies such as Cannabis Strategic Ventures (OTC: NUGS), a holding company for cannabis industry start-ups and growth-stage enterprises that is moving into cannabis cultivation in Northern California. Such companies are keen to talk up the potential of the cannabis market, and unlike some other sectors, cannabis shows every sign of living up to the hype.

The global market for legal marijuana was valued at $9.3 billion dollars in 2016. By the end of 2025, the market is forecast to reach $146.4 billion. That’s staggering growth for an industry that didn’t even exist legally a mere 20 years ago and that has only recently started to attract substantial investor attention.

The largest part of the market is currently medical cannabis and cannabis-derived wellness products. Medical use provided cannabis with its foot in the door of the legal economy, thanks to its applications in providing pain and nausea relief, but the potential has exploded from there. Legalization has allowed better research into the effects of cannabis’ active ingredients, in particular tetrahydrocannabinol (THC) and cannabidiol (CBD). The plant is used in a wide variety of health and wellness products tailored to increasingly specific customer bases, such as Cannabis Strategic Ventures’ Fitamins brand, formulated to relieve muscle pain in athletes.

The breakthrough research is driving demand for cannabis in various forms. The plant itself can be preserved and smoked for medical and recreational effects. Plant derivatives are used in a wide range of pills and ointments. And CBD and THC oils can be vaped or used in even more products.

As it becomes easier for companies to legally process cannabis, these companies are exploring making cannabis edibles. The changes are even fostering a surge in the production of hemp, a variety of the cannabis plant that doesn’t contain high-inducing quantities of THC. And in addition to being used in the manufacture of CBD products, hemp is also used to make textile products.

Legal Changes for Cannabis

The societal clamor for access to cannabis’ derivative benefits is driving new waves of legislation, including the legalization of recreational cannabis in several U.S. states as well as countries such as Uruguay and Canada. Across the United States, 70 to 75 percent of the cannabis trade is reportedly still in the hands of criminals, while in states with legalization, only about 30 percent of the activity continues to be criminal, according to Grand View Research. The potential to reduce the income of criminals, increase tax revenue and tackle drug abuse through public health measures are all fueling a movement that could drive even more radical growth in the legal cannabis market over the next generation.

The wave of cannabis-friendly legislation has allowed companies such as Cannabis Strategic Ventures to get their businesses started and access a broad legal customer base. Other legislation has maintained a lower profile but is equally important for the industry. In December, the 2018 Farm Bill belatedly passed through Congress after months of negotiations. In the process, it lifted the ban on commercial hemp, making it far easier for cultivators to produce this form of cannabis.

Even in states where the cannabis industry is already legal, legislation is becoming friendlier towards the industry. The California legislature has proposed a temporary reduction in taxes for cannabis businesses to help them make inroads into the illegal industry. For California-based companies such as Cannabis Strategic Ventures, this is great news as it frees up capital for further expansion and provides the incentive to continue operating in a friendly state.

More Cultivation

Under the circumstances, venturing into production was a natural move for Cannabis Strategic Ventures. With the industry growing and the legal landscape looking friendlier than ever, the company is preparing to break ground on a major new cannabis cultivation site.

The six-acre site in Northern California — dubbed the NUGS Farm — will establish the company as a direct producer and position it to make the most of the potential the market has to offer.

“Establishing the NUGS Farm and securing these licenses are significant milestones for Cannabis Strategic Ventures,” said Simon Yu, CEO of Cannabis Strategic Ventures. “As the cannabis industry expands, and as we work to make cannabis legal on a federal level, Cannabis Strategic Ventures will be in position to touch on all areas of cannabis production.”

Though the main purpose of the farm will be to cater to Californian cannabis users, the largest market for the plant in the United States, the move is also a significant step toward wider operations.

“They say that the way California goes, the direction of the country goes,” added Yu. “We are optimistic that federal regulations will become more cannabis friendly in the near future and are excited for the positive impact it can have on our company.”

With more than 20 licenses for the cultivation, manufacturing and distribution of cannabis within California, Cannabis Strategic Ventures appears to be perfectly positioned to leverage opportunities within the state. In addition, these strategic moves may ideally prepare the company for expansion prospects throughout the rest of the country.

The Rise of the Cannabis Companies

The changing cannabis landscape has led to the emergence of several major players in the industry.

Many of the most important companies are based in Canada, where federal-level legalization and a large market for cannabis have made it easier for businesses to develop. Tilray Inc. (NASDAQ: TLRY) is one of the industry leaders, a pioneer in the cultivation, production and distribution of cannabis and its derivatives. With affiliates and subsidiaries in Europe, Australia, New Zealand and most recently Latin America through Tilray Latin America SpA, the company is developing a global presence. It is also expanding within Canada and has recently announced a pending acquisition of Natura Natural Holdings Inc., a multimillion deal that will give Tilray an extra 662,000 square feet of growing space.

The rise of cannabis companies is proving a boon for the suppliers of cultivation equipment as well, especially those specializing in hydroponics. Among those to profit is GrowGeneration Corp. (OTCQX: GRWG), a seller of hydroponic systems and the associated nutrients. Like Tilray, GrowGeneration has developed enough financial power to use acquisition as a route to growth. It recently obtained all the assets of Denver-based Chlorophyll Inc., increasing its influence across the United States.

Another of the big Canadian companies, Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), has also demonstrated the importance of increasing cultivation space. A large part of the rationale behind its recently announced letter of intent to acquire Whistler was the desire to get hold of that company’s two production facilities. These facilities are expected to produce 5,000 kilograms of quality cannabis a year, providing Aurora an avenue to increase its market share.

Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) is looking beyond its immediate market. Though legalization is not as widespread in Europe as in North America, change is also expected there in the long term, and the company is positioning itself to make the most of this. It has established subsidiaries in the United Kingdom and Poland to make the most of the very different situations in those two countries. In Poland, the company has passed through a regulatory process that will allow it to import and sell its cannabis in the country for medical use. In the United Kingdom, where the door has only just opened a crack to the use of cannabis derivatives in the most extreme medical cases, the company has formed a joint venture with a local research group, placing Canopy Growth as one of the first cannabis companies operating in the United Kingdom.

The market for cannabis is expanding as attitudes and laws change. This momentum may drive a need for more product and thereby provide promising opportunities for companies with cultivation facilities.

For more information on Cannabis Strategic Ventures, visit Cannabis Strategic Ventures, Inc. (NUGS)

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.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Outside Investment, New Technology Support Growing Cannabis Industry

CannabisNewsWire Editorial Coverage: Revolutionary innovations and advancements within the cannabis industry are drawing significant investment from big corporations.

  • Technology currently in development will make it easier to consume active ingredients in cannabis.
  • Advances have attracted investment for the technology’s use in tobacco as well as cannabis.
  • These improvements could move consumers to healthier forms of consumption than smoking.

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) (LXRP Profile) has benefited from recent investment by Altria to support its innovative research and design work. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has received substantial investment from a beverage company, which will support the development of cannabis drinks. Within the sector, Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) is in the process of acquiring an organic grower. Outside investment is bolstering Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), a cannabis company with global reach. And another innovator, GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF), has run successful trials on a new drug to tackle a form of childhood epilepsy.

To view an infographic of this editorial, click here.

Finding Funds for Cannabis

The quest for finance is important in any industry, but for cannabis businesses, which are going through a period of impressive growth thanks to legal and social changes, this need for money is particularly time sensitive. Those who find substantial funding now may be in the best position to expand in the growing market.

Only a select few companies in the cannabis industry have successfully attracted capital from — and built relationships with — Fortune 500-type corporations. Though cannabis is growing, the sector is still relatively small compared with those big names, and the perceived reputational issues can be a deterrent. Even among cannabis companies that have drawn big money, few have established a partnership allowing them to retain control, much less receive money in return for license rights and minority ownership in a subsidiary. Instead, most of these companies aim to be bought out by bigger businesses.

But there have been exceptions.

A Better Deal for a Cannabis Company

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) is an example of one company that has built a big funding deal on its own terms.

Biotech company Lexaria is perhaps most known for its DehydraTECH technology, a revolutionary system for processing molecular compounds to make them more suitable for human consumption. Applicable to molecule such as THC and cannabidiol, the active ingredients in cannabis, the technology makes these compounds taste better, increases the body’s ability to absorb them, and speeds up their impact on the body. Together, these changes can increase the efficacy of both medical and recreational drugs.

To provide the funding for further work on this technology, Lexaria has struck a deal with industry giant Altria, which will cover the use of DehydraTECH to deliver nicotine.

The milestone deal is between Lexaria Nicotine LLC, a wholly-owned subsidiary of Lexaria, and a subsidiary of Altria, Altria Ventures Inc. Under the terms of the agreement, Altria will initially provide $1 million of finance towards a Lexaria research and development program, with the option for funding of up to $12 million.

Unlike so many other deals in the biotech sector, the partnership won’t see Altria gain any ownership over Lexaria itself. Instead, the company will receive minority ownership of the Lexaria Nicotine subsidiary, with the option to increase its stake in that company through multiple phased private financings. Lexaria retains its independence while benefiting from the money that big tobacco can provide. Critically, Lexaria’s shares have not been diluted by this fresh source of finance.

In addition to a minority stake in Lexaria Nicotine, Altria has received a license to use DehydraTECH technology in oral nicotine delivery products, on an exclusive basis in the United States and a nonexclusive basis elsewhere in the world. This will provide Lexaria with a new revenue stream, as it is slated to receive royalties for any DehydraTECH products Altria launches. The impact on Lexaria’s financial statements of a Fortune 500-derived royalty stream could be significant.

Tobacco companies are eagerly searching for alternatives to traditional cigarettes, to reduce their damaging impact on health and the reputational damage this brings. These factors give Altria a strong motive to develop products using DehydraTECH, providing profits for Lexaria and demonstrating the potential of DehydraTECH to other interested parties.

Starting with a $1 million stake might seem small compared with other big headline deals. But by gaining Altria’s buy in without selling any part of its main company, Lexaria has struck a profitable balance between raising finance and retaining its independence. It’s a unique transaction that other cannabis companies haven’t been able to achieve.

Applying the Technology

Though this recently announced deal is about tobacco, Lexaria’s attention is very much on the cannabis market.

There are three main routes for the active ingredients in cannabis to enter the body — by inhalation, by being placed under the tongue, and by being eaten. Each has its own drawbacks. Inhalation has the highest level of bioavailability, or how much of the chemical is absorbed, but is harmful to the consumer’s lungs. Consumption by under-the-tongue methods has a moderate level of bioavailability but an unpleasant taste. Eating cannabis products has a low level of bioavailability, giving consumers a low bang for their bucks, plus flavor challenges usually met through the addition of large amounts of sugar.

DehydraTECH transforms the situation by seriously reducing the downsides of eating cannabis.

The technology involves combining active ingredients with fatty acids such as those found in sunflower oil, which provide a protective bond, with a patented dehydration process. The molecules within the fatty acids are believed to keep active ingredients away from bitter taste receptors, significantly reducing their unpleasant flavor, thus vastly reducing the need to disguise them with sugar. Low-calorie edibles that taste great are possible!

Fatty acids also help active ingredients in cannabis as they pass through the digestive system. They protect cannabinoids from damage while passing through the stomach, increase the extent to which they’re absorbed by the intestines and can even bypass the liver’s first attempts to filter them out. This leads to much higher absorption, significantly increasing their bioavailability.

This process makes cannabis edibles, which are already healthier than smoking the drug, far more appealing and better value for money. This has led to deals such as Lexaria’s licensing of DehydraTECH to Nuka for use in its cannabis-infused chocolates.

To make the most of this potential, Lexaria has created subsidiaries specializing in the use of DehydraTECH for cannabis. Lexaria CanPharm Corporation focuses on the cannabis market, providing DehydraTECH and other enhancements to the global cannabis industry. The company is in discussions to license its technology in Canada, the United States, and Europe.

Lexaria Hemp Corporation. operates within the related hemp industry, which works with a specific form of cannabis that is low in psychoactive THC but potentially rich in other active ingredients. Lexaria Hemp is in discussions with a number of companies about how its products is used to deliver cannabidiol (CBD) derived from hemp.

With a groundbreaking technology, a carefully developed corporate structure and now a new Fortune 500 source of funding, Lexaria appears to be in a strong position within the cannabis industry.

A Crop of Cannabis Companies

The dramatic growth of legal cannabis in recent years has created a range of important companies focused on the sector.

Like Lexaria, Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has had success in attracting finance from bigger players outside the cannabis sector. The company has received $4 billion in investment from an American beverage company, which has bought a significant stake in the core company. This will help to finance the development of cannabis-infused drinks and is seen as part of a wider trend, as tobacco and cannabis companies look to vary their product lines while health concerns constrict their sales.

The expansion of the cannabis market has seen a string of investments and purchases within the sector. Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), one of the big players in Canada, recently signed a letter of intent to acquire Whistler Medical Marijuana Corporation in a deal valued at $175 million. This will give Aurora control of a well-established organic cannabis brand, increasing its market appeal.

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) has, like Lexaria, drawn investment from Altria, in the amount of CA$2.4 billion. In this case, the funds have come in exchange for shares in the core company, giving Altria a great deal of influence at Cronos. Cronos already does business in North America, Latin America, Europe, Australia and Israel, so this will provide Altria with a way into global cannabis markets, as the spread of legalization expands cannabis markets around the world.

Other companies, such as GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF), are strongly oriented towards the use of cannabis for medical purposes. As well as selling strains of medical cannabis, GW has been carrying out research to develop medicines based on it. The company recently saw positive results from the second round of trials of an oral solution created to tackle Dravet syndrome, a severe and hard-to-manage form of epilepsy.

With more money coming in from big-value companies and new technology in development, the cannabis industry looks set for a bright year.

For more information on Lexaria Bioscience Corp., visit Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP)

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.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Companies Explore Market Potential for Ready-to-Drink CBD Beverages

CannabisNewsWire Editorial Coverage: The market for cannabidiol (CBD) beverages alone could achieve a value of $260 million in the United States by 2022. CBD beverages form part of an even wider market for marijuana-infused drinks that is predicted to reach a value of $600 million in three years’ time.

  • U.S. market for CBD and THC beverages could reach $600 million by 2022.
  • Cannabis-infused drinks could outperform other cannabis products.
  • Non-cannabis and cannabis companies alike are joining this new market.

Savvy companies are looking to position themselves in this burgeoning market, often by partnering with companies that provide invaluable experience in the sector. Youngevity International Inc. (NASDAQ: YGYI) (YGYI Profile), an established omni-direct lifestyle company, has formed a cross-marketing agreement with a bottled spring water company, which will see the pair develop new products including a ready-to-drink CBD beverage. Tilray Inc. (NASDAQ: TLRY) is partnering with the world’s largest brewer in a $100-million joint venture to research cannabis-infused nonalcoholic drinks. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) recently received a $4 billion investment from a leading beer maker. Other companies are looking to grow in additional cannabis spaces. Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) recently received a license from Health Canada permitting the sale of cannabis softgel capsules. And GW Pharmaceuticals (NASDAQ: GWPH) announced that its FDA-approved anti-epileptic drug is now available in the United States.

To view an infographic of this editorial, click here.

Injecting Growth into Product Portfolios

Recent reports by Canaccord Genuity indicate that cannabis and CBD-infused beverages have the potential to outperform cannabis products, reaching up to 20 percent of the market for cannabis-containing consumables by 2022. “While these trends represent a significant opportunity for U.S. cannabis companies, they have not gone unnoticed by large mainstream beverage players looking to inject growth into their product portfolio,” said Canaccord analyst Bobby Burleson, who also predicts that ready-to-drink CBD beverages will form part of the growing market for wellness drinks.

Indeed, a number of U.S and Canadian pharmaceutical, cannabis, beverage and even lifestyle companies have developed or are planning to develop CBD-infused beverages. These developments often begin with, or result in, new partnerships.

Joining Forces to Share, Build and Develop

Youngevity International Inc. (NASDAQ: YGYI) has entered an exclusive cross-marketing agreement with Icelandic Glacial™. The agreement includes plans to develop new products including CBD drinks in order to extend the market for Youngevity’s lifestyle brands and Icelandic Glacial’s market reach.

Icelandic Glacial bottled water will be added to Youngevity’s roster of health, wellness, food and beverage brands. Owned by Icelandic Water Holdings and registered in Iceland, the Icelandic Glacial brand offers water that comes from the naturally alkaline spring Ölfus Spring, has a low mineral content and is certified CarbonNeutral®.

Youngevity and Icelandic Glacial have agreed to partner for three years. Icelandic Glacial bottled water will be sold alongside Youngevity’s direct selling supplements, including 90 for Life, CBD products, pet supplements and the coffee holdings of Youngevity’s wholly owned subsidiary, CLR Roasters. During the three-year period, Youngevity will not promote any other bottled water, and Icelandic Glacial will not promote any other supplement businesses or products.

“With its rare, naturally occurring, high-pH level, low-mineral content, and unique lava rock filtering system — as well as its positioning as the world’s first CarbonNeutral bottled water company — Icelandic Glacial is perfectly positioned to serve not only customers who want a pure-tasting water that makes them feel and perform their best but also eco-friendly consumers who want to make sure their money goes to brands with a conscience,” said Steve Wallach, CEO of Youngevity International Inc.

Youngevity will use its marketing and multilevel marketing expertise to help Icelandic Glacial build its brand and reach new customers in the United States and around the globe. In return, Icelandic Water Holdings plans to introduce its customers to Youngevity’s health and nutrition products. Icelandic has a 14-year history of serving health and quality-conscious consumers while building a brand known for purity. The company has a completely sustainable operation fueled solely by geothermal and hydroelectric power. Icelandic Water is committed to reaching a target of net-zero greenhouse gas emissions.

Entering the CBD Product Market

The development of a ready-to-drink CBD beverage will be the first of the partnership’s potential new products. Future ideas may include possible special products for a range of markets based on CBD and other life-enhancing supplements.

Youngevity first entered the $7.7 billion cannabis industry with the introduction of its Hemp FX™ brand in October 2018. The new product line includes three blends of hemp-derived cannabinoid oil products: a topical cream, softgel capsules and a relaxing sleep oil. Each formula contains organically grown hemp-derived cannabinoids combined with Youngevity signature nutrients.

“Hemp-derived cannabidiol aligns with what we do very well,” said Wallach. “We’ve taken what we know about essential nutrients, along with decades of knowledge specializing in natural, plant-based nutrition and their most beneficial nutrients, and put that knowledge to work to develop high-end cannabidiol products.”

Youngevity operates a hybrid direct-sales business model combined with e-commerce and social selling to deliver a virtual main street of products and services under one entity. Its entire range includes products from eight top-selling retail categories including health/nutrition, home/family, food/beverage (including coffee), spa/beauty, fashion, essential oils and photo.

A Global Market Worth $22 Billion by 2020

Reports suggest the entire hemp-derived CBD market will hit $22 billion globally by 2022. Much of the focus on CBD-infused products and drinks is towards the healthy lifestyle consumer market. However, more big brand beverage companies are expected to enter the industry and create CBD-infused non-alcoholic beverages for a broader spectrum of consumers. CBD-focused developments and partnerships are likely to increase as industry regulation becomes clearer.

For example, medical cannabis company Tilray (NASDAQ: TLRY) announced a research partnership with Labatt Breweries parent company AB InBev to explore the potential of THC- and CBD-infused non-alcoholic beverages. This partnership will be limited to Canada, with Tilray participating through its Canadian adult-use cannabis subsidiary. The partnership calls for each company investing up to $50 million in the project.

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) continues to benefit from a massive multibillion-dollar investment by Corona-beer maker Constellation Brands. The move will extend the collaboration from the development of cannabis-based beverages to co-developing products across a complete range of cannabis extracts. It also allows Canopy Growth to build scale in the more than 30 countries considering legalization of medical cannabis and establish essential infrastructure required to supply new recreational adult-use markets.

After obtaining the required licensing, Aurora Cannabis (NYSE: ACB) (TSX: ACB) has commenced shipments of cannabis softgel capsules for both the Canadian medical and adult-use markets. The company expects to start exporting to international markets early this year. Aurora intends to make its smoke-free softgel product available to all of its domestic and international target markets over time where legally possible. “Softgels are a high-volume, high-margin product for both the medical and adult-use markets that are in strong demand, and Aurora is one of few companies making these products available to patients and consumers alike,” said Aurora CEO Terry Booth.

Apart from cannabis-infused beverages, GW Pharmaceutical’s (NASDAQ: GWPH) product EPIDIOLEX is the first FDA-approved CBD oral medicine available by prescription in the United States for the treatment of seizures associated with Lennox-Gastaut syndrome or Dravet syndrome in patients two years of age or older. Its Sativex brand was the first-ever natural cannabis plant derivative to achieve market approval.

For more information on Youngevity, visit Youngevity International, Inc. (NASDAQ: YGYI)

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.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Benzinga Cannabis Capital Conference Will Bring Cannabis Visionaries and Investors Together

  • Presented by Benzinga, the upcoming cannabis conference will be held at the Eden Roc in Miami Beach, Florida; it is the go-to source event for investors who want the latest news and opportunities from the burgeoning sector
  • The conference will kick off on January 15 with an invite-only C-Suite retreat for cannabis operators; the audience will be just 100 C-Suite executives; a pre-retreat reception will be held the night prior
  • The conference will feature company presentations, networking receptions and an all-star lineup of knowledgeable keynote speakers talking about the global opportunities for cannabis

Benzinga Cannabis Capital Conference (CCC) will offer attendees a fast-paced comprehensive lineup of speed networking, a specially selected lineup of keynoters, corporate presentations for investors and a look at the future of cannabis internationally. It will be held January 15-16 at the Eden Roc in Miami Beach (www.BenzingaCannabisConference.com).

The attendee mix is expected to consist of 25 percent institutional investors, 20 percent retail investors, 40 percent public cannabis companies, 10 percent private cannabis companies and five percent media.

Reserve your place and book hotel rooms for CCC now at http://cnw.fm/42sPg. Be sure to learn more about how you can qualify for special discounted tickets and hotel rooms.

“Benzinga’s Cannabis Capital Conference brings together the crème de la crème of the cannabis world,” Neal Hamilton, vice president of marketing for Benzinga, stated in a recent press release. “Benzinga has long presided as a financial media leader, offering broad coverage relative to the cannabis space. We now bring that standout expertise to a live setting where entrepreneurs and investors can network, forge deals and learn from today’s top cannabis influencers, policymakers and innovators.”

CCC will showcase the following public and private companies:

  • AmeriCann Inc. (OTCQB: ACAN)
  • Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB)
  • Cannex Capital Holdings Inc. (CSE: CNNX) (OTCQX: CNXXF)
  • Harvest Health & Recreation Inc. (CSE: HARV)
  • CEDR HR Solutions
  • CuraLeaf Holdings Inc. (CSE: CURA)
  • DionyMed Brands Inc. (OTC: HMDEF)
  • Growcentia
  • iAnthus Capital Holdings Inc. (CSE: IAN) (OTCQX: ITHUF)
  • InMed Pharmaceuticals Inc. (OTCQX: IMLFF) (TSX: IN)
  • KushCo Holdings Inc. (OTCQB: KSHB)
  • LGC Capital Ltd. (TSX.V: LG)
  • Liberty Health Sciences Inc. (OTCQX: LHSIF)
  • MariMed Inc. (OTCQB: MRMD)
  • Medicine Man Technologies Inc. (OTCQX: MDCL)
  • Medipharm Labs Corp. (TSX.V: LABS)
  • MJ Freeway
  • New Frontier Data
  • Newstrike Brands Ltd. (TSX.V: HIP)
  • Plus Products Inc. (CSE: PLUS)
  • Pure Global Cannabis Inc. (OTC: PRCNF) (TSX.V: PURE)
  • Radicle Inc./Gage Cannabis
  • Starbuds/Compass Cannabis
  • Trulieve Cannabis Corp. (CSE: TRUL) (OTC: TCNNF)
  • Valens GroWorks Corp. (OTCQB: MYMSF)
  • Wayland Group Corp. (OTCQB: MRRCF) (CSE: WAYL)
  • High Tide Inc. (CSE: HITI)

For more information, visit the event’s website at www.BenzingaCannabisConference.com

More from CannabisNewsWire

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.

CannabisNewsWire is at the epicenter of the Cannabis Revolution.

To receive instant SMS alerts, text CANNABIS to 21000

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

Political Breakthrough Heralds the End of the Prohibition on Hemp

CannabisNewsWire Editorial Coverage: With federal legalization of hemp expected in the United States by Christmas, the farming and cannabidiol product industries are anticipating great changes in their future.

  • Hemp farming, which has been illegal in the United States since 1970, is about to be made legal under the newest Farm Bill legislation.
  • Pilot projects and work in Canada have allowed companies to prepare for U.S. hemp farming by developing their techniques, science and crop strains.
  • With legalization promising great growth, companies are seeking paths to investment opportunities.

Marijuana Company of America, Inc. (OTC: MCOA) (MCOA Profile) is among the innovating companies carrying out cultivation, research and development projects on sites in the United States and Canada. Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has been expanding its operations through partnerships with other companies, covering investment, supply and research. Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) has expanded its cultivation and markets while negotiating for fresh investment. Aphria, Inc. (NYSE: APHA) (TSX: APHA) has partnered with a company specializing in branding to develop new consumer-driven brands and products for the cannabis market. Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) is putting out new products in the United States and looking to export those products abroad, following the successful export of medical cannabis into Europe.

To view an infographic of this editorial, click here.

The End of an Era?

For decades, hemp has been locked out of agricultural development in the United States. Once a vital crop used to produce the rope and canvas on which the American naval and merchant shipping forces relied, it was made illegal in 1970 under legislation designed to reduce drug addiction. For nearly half a century, farmers have been unable to cultivate this crop despite growing evidence of its usefulness.

Now that is set to change. After months of haggling, politicians in Washington have finally brokered a deal to pass the legislation that will make hemp legal. For the past four years, a small band of farmers and university researchers have been involved in pilot projects, testing the potential of the hemp market. The profitable outlook, together with growing demand for health and wellness products derived from hemp, have led politicians to change their stance.

Could 2019 be the year that hemp’s cannabidiol (CBD) derivatives become household commodities?

Legalization Legislation

The past decade has produced considerable growth for companies working in the hemp sector, such as Marijuana Company of America, Inc. (OTC: MCOA). Hemp is a form of the cannabis plant with very low levels of tetrahydrocannabinol (THC), the psychoactive ingredient in the marijuana strains of cannabis. Despite hemp’s essentially innocuous nature, it was made illegal under sweeping federal regulations that classified all forms of cannabis as Schedule I substances, among the most dangerous and least medicinally helpful of drugs.

Since 1996, the legal landscape has been changing as states have introduced pro-cannabis legislation in defiance of federal drug policy. This allowed companies such as MCOA to emerge and start looking at the potential of industrial hemp. However, these companies were caught in a no-man’s-land industry sector between conflicting state and federal legislation. Under those circumstances, building a commercial hemp industry had limited practicality.

A change at the federal level began four years ago, when the 2014 Farm Bill made it legal for companies to carry out pilot projects to grow hemp. Companies moved quickly to make the most of the opportunity, setting up facilities such as the farm MCOA established in Oregon. From 9,650 acres in 15 states in 2015, hemp production grew to 77,000 acres under 3,500 licenses in 23 states in 2018.

During the course of that change, the hemp industry has gained widespread acceptance in Washington and throughout the country, leading to cross-party support for hemp’s inclusion in the new Farm Bill as an agricultural commodity. But conflict over other aspects of the bill held the legislation up until late November. Then, in the waning days of a lame-duck Republican House, an agreement in principle was finally reached.

Once the farm legislation is passed as expected, growing hemp could become fully legal in the United States as early as January. That would be huge news for farmers and a great start to the new year for the fast-growing industry.

Farming Hemp

The anticipated legislative changes may lead to a new agricultural phenomenon for United States farmers, but it will be far from the first hemp crop in North America. Aside from the pilot projects in the United States, more liberal legislation in Canada has allowed farmers to get a head start on hemp production. For MCOA, this has meant pursuing profitable crops and supporting farmers on both sides of the border.

In Canada, MCOA’s efforts have taken the form of an innovative joint venture in New Brunswick. There, MCOA teamed up with Global Hemp Group, Inc. and four local farmers to experiment with techniques for hemp farming. This has led to practical developments, such as the use of a bean harvester to strip leaves and inflorescence from plants, improving the efficiency of the harvest. It has also led to more academic results, including research on plant nutrition with Dr. Ron Smith at the University of New Brunswick.

The company’s U.S. project at Scio, Ore., is earlier in its development and proportionally smaller. The Oregon cultivation benefited from good weather in 2018, extending growing time and leading to an improved harvest. Here, MCOA is already growing hemp with a higher CBD content — 6 to 12 percent. Large greenhouses were used to dry out these plants, with staff continuing to learn and refine their drying techniques with each batch.

On both sides of the border, partnering with other companies is helping MCOA maintain a high pace of innovation and expansion. The company is currently looking for opportunities to work with a cannabinoid extraction player in the United States to make the most of its crops.

Preparing for a Boom Market

With legalization around the corner, hemp companies are moving to strengthen their positions for market expansion.

For MCOA, this has meant a move into mainstream advertising. The company’s hempSMART™ subsidiary has partnered with asseenontv.pro to launch a television advertising campaign for its Full Spectrum Pet Drops, a pet well-being product using CBD.

CEO Donald Steinberg said, “As our hempSMART brand continues to grow, MCOA will continue to search for and utilize new partnerships that will uniquely market our incredible collection of all-natural CBD product formulations. We feel that our strategic partnership with ASONTV is an important milestone for the Company that will help promote our hempSMART Pet Drops to consumers across the country.”

The company has also filed an application to uplist its shares from OTC Pink to the OTCQB tier on the OTC markets. This strategic move should provide better access to institutional investors to raise funds targeted to help the company grow along with the wider industry. A new CFO and independent director were appointed over the summer to ensure strong leadership during this period of huge potential.

Like MCOA, Canadian cannabis company Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has been partnering with other companies to support its growth. This includes an investment and supply deal with 48North Cannabis Corp., a strategic supply agreement with MediPharm Labs Corp. and a research and development collaboration with Battelle. One of the factors fueling Canopy Growth’s expansion has been an investment from Constellation Brands, which pumped billions into Canopy Growth earlier this year. This financial move should give the American drinks giant a way into the cannabis and hemp markets, including the production and sale of CBD-infused drinks.

Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) has also been pursuing growth, with expansion into Latin America, an increase in the scale of cultivation and a collaboration with Ginkgo Bioworks to develop innovative products for the cannabis market. This has drawn the attention of outside investors, and the company is now in talks with Altria Group, Inc. about potential investments that could provide additional funds at a strategic turning point for the market.

Aphria, Inc. (NYSE: APHA) (TSX: APHA) aims to carve out a distinct space in the market through innovative consumer products. Aphria recently announced the creation of a joint venture with Perennial, Inc. to develop original consumer-driven brands and products for the cannabis market. This will join Perennial’s experience in brand development with Aphria’s expertise in cannabis to explore edibles, beverages and other new lines of products.

Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) is already busy putting new products out. The company has recently announced the release of cannabis softgel capsules for the Canadian market and expects to export them to international markets next year. The company already works on an international scale, having announced its first shipment of medical cannabis to the Czech Republic in November.

Pending hemp legalization in the United States is only the latest in a series of shifts in the wider cannabis sector, shifts that appear to have opened the way for a wave of expansion and innovation.

For more information on Marijuana Company of America, visit Marijuana Company of America, Inc. (OTC: MCOA)

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.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Cannabis Cultivation Powering Growth for the Industry

CannabisNewsWire Editorial Coverage: Cultivation by both large and small growers is powering growth across the cannabis industry.

  • Cultivation is fueling the growth of the cannabis industry.
  • $718 million was invested in cultivation and retail last year as the industry continued to grow.
  • Raw materials from cultivators are used in a wide range of cannabis products.
  • Cultivation locations are critical to distribution channels and partnerships.

Within this growing industry, Cannabis Strategic Ventures (OTC: NUGS) (NUGS Profile) is working to foster emerging brands by targeting investment through a la carte partnerships and acquisitions. Tilray, Inc. (NASDAQ: TLRY), one of Canada’s largest cultivators, has seen earnings rise 78.9 percent so far this year thanks to growing demand and a maturing business. Cultivation means profits for hydroponics suppliers such as GrowGeneration Corp. (OTCQX: GRWG), which provides the materials growers need. Some companies are working to stand out through branding, such as the feel-good ethos of Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) (CSE: CWEB). Others, such as Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB), are working with local authorities to reach new customers.

To view an infographic of this editorial, click here.

Cannabis Cultivation

When economic historians look back on the early 21st century, the cannabis industry will likely feature prominently in conversations. The industry, which has operated in the black market since the turn of the millennium, has grown to a revenue cap of over $9 billion in the United States alone, with an expected value of $47.3 billion by 2027. From retail outlets to research groups, edibles, technology, vaping liquids to health supplements, cannabis has become a diverse and powerful industry.

Underlying it all is cultivation. As much the work of craft businesses as of big corporations, cultivation supplies the plants without which none of the rest would be possible. Licensed growers are providing the materials needed to drag cannabis profits away from funding crime and turning them into a legal, taxable, sustainable industry.

Cultivators make the cannabis industry possible.

The Growth of Cultivation

Cannabis cultivation is hardly a new activity in the United States, but a legal, corporate-fronted version of it is. Since the first medical legalization in California in 1996, many respectable growers have sprung up, whether as new businesses entering the emerging market or as once-clandestine farmers turning their previously illegal operations into law-abiding producers. In today’s cannabis environment, many corporate-fronted companies, such as Cannabis Strategic Ventures (OTC: NUGS), are eyeing small to large commercial cultivation as part of their business model.

This interest of Cannabis Strategic Ventures shows how quickly cannabis cultivation has acquired the trappings of a legally established industry. As a publicly traded company that incubates, develops and partners with brands, Cannabis Strategic Ventures is a sort of meta-business that emerges in sophisticated markets — bolstering the development of production, services and retail through its application of business acumen and strategically applied capital.

It’s not surprising that such companies are engaging with cannabis cultivation. Investment in cannabis cultivation and retail reached $718 million last year as investors were increasingly drawn to this growing and profitable market. Looking ahead, the trend shows no sign of declining.

Cannabis cultivation is a specialist form of agriculture, requiring an understanding of hydroponics, plant strains and environmental factors that affect the potency of crops. Acquiring those skills hasn’t been easy, especially given how long the industry operated in the shadows, its techniques and collective knowledge shared only through illicit channels. As cultivation takes off, the industry needs the support of companies such as Cannabis Strategic Ventures to acquire equipment, train staff and build facilities to meet the demand of a growing customer base.

Cultivation is fundamental to the market, so the sector is a natural target for investors looking to ensure a lasting place in the cannabis industry. Cannabis Strategic Ventures is actively seeking out cultivation facilities with existing infrastructure to speed up its move into cultivation. This initial step provides a foundation upon which much bigger moves can be built.

Building on the Foundations of Cultivation

Growers aren’t just selling the plants as the dried or refined forms of cannabis that users have been consuming for decades. With legality, cultivators have experimented with different ways cannabis can be used. Much of the plant is still sold for smoking, but some of the valuable crop is turned into products such as vaping liquid, oils, capsules, drinks and other consumables. Cannabidiol (CBD) and hemp phytocannabinoids, nonpsychoactive chemicals that appears in cannabis alongside the high-inducing THC, have become the core ingredient of a range of products as research and design departments find ways to use it for health, well-being and relaxation.

The range of brands in the Cannabis Strategic Ventures portfolio reflects this varied approach to cannabis and its derivatives through commitments in category leaders in the space. None of these brands would be possible without the cultivation of cannabis plants. Bringing cultivation under the same umbrella as the products will offer opportunities for improved efficiency and profitability. By sourcing cannabis from its own facilities, Cannabis Strategic Ventures should be able to achieve vertical integration in the supply chain, which naturally leads to greater certainty over the supply of raw materials and increased efficiencies into the system, likely cutting costs and improving the timeline from cultivation to shelf.

The growth of cannabis cultivation has led to a boom for support services as well, such as the provision of staff and hydroponic equipment. Here, too, efficiencies can be realized through vertical integration as cultivators work more closely with their suppliers.

This is yet another way Cannabis Strategic Ventures may benefit if cultivation is brought in-house. As the owner of BudHire, a subsidiary specializing in cannabis industry recruitment, the company looks to be in an ideal position to source the most skilled staff for its facilities.

Cultivation in California

Geography makes a big difference to U.S. cannabis companies. The industry isn’t legal in every state, and among those that have legalized, the laws vary substantially from state to state, as do market sizes. Given the challenges of working across state lines without federal legal reform, being based in the right location can be critical.

Cannabis Strategic Ventures is headquartered in Los Angeles and benefits from easy access to the oldest, largest and most complex legal cannabis market in the United States. Many growers in California are now trying to transition from the black market to the legal one, but the move can be challenging. Volumes of cannabis that could have been sold for $3,000 illegally go for a fifth of that price now. Growers must pay taxes and work within well-defined regulations. Working with firms such as Cannabis Strategic Ventures, which offers essential financial and intellectual capital, can help a grower make the transition more successfully.

Being located in California, therefore, provides two significant advantages for a company such as Cannabis Strategic Ventures. On one hand, the state has a large consumer base for the company’s products and services. On the other hand, it has a plentiful supply of small companies looking for financial support, creating opportunities for growth through mergers, acquisitions and partnerships.

Colleagues and Competitors in Cultivation

Cannabis Strategic Ventures is not alone in its interest in this promising industry. An impressive variety of companies are now cultivating cannabis.

Tilray, Inc. (NASDAQ: TLRY) is one of the largest cultivation companies in Canada, a country with a fast-growing and well-regulated market. A global pioneer in production, distribution and research in the cannabis market, Tilray was the first licensed producer of medical cannabis in the world to have its facility Good Manufacturing Practices (GMP)-certified in accordance with European Medicine Agency (EMA) standards. Its recent earnings report reflected the extraordinary growth being experienced by well-run cannabis companies, with an 85 percent rise in revenue in the third quarter and a 78.9 percent rise for the year to date. With recreational cannabis having just become legal in Canada, this growth is likely to continue that increase over the next few years.

The growth of such companies has provided a boost for GrowGeneration Corp. (OTCQX: GRWG), a supplier of hydroponic systems and the nutrients used with them. Like Cannabis Strategic Ventures, GrowGeneration has been acquiring other companies to expand its presence within the market. It also has an eye on reaching different market sectors. The company recently established the GrowGeneration Hemp Corp subsidiary to market its products to hemp farms and GrowGeneration Canada to sell to Canadian cultivators.

In this booming market, branding is crucial to help companies stand out from the pack. Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) (CSE: CWEB) is winning over customers with the feel-good factor as a company committed not just to sales but to improving the planet and people’s lives. Given the correlation between cannabis use and liberal values, adopting such a strong identity seems to be bringing the company success.

For Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB), the recent focus has been on reaching new customers. As a Canadian company, Aurora is looking to profit from the country’s legalization of recreational cannabis in mid-October this year. The market is regulated on a regional basis, so Aurora has been busy setting up agreements with local authorities to give it a strong reach across the country and even stretching into international markets.

With revenues rising and markets growing, cannabis cultivators are seeing a period of great expansion, making the growth of a whole industry possible.

For more information on Cannabis Strategic Ventures, visit Cannabis Strategic Ventures, Inc. (NUGS)

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.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.

Change in Attorney General Could Mean a Cannabis Revolution in the US

CannabisNewsWire Editorial Coverage: A new attorney general is still to be named to replace unabashedly anti-cannabis former AG Jeff Sessions. As the market awaits a new AG, there’s a steady push from cannabis companies keeping an eye on the massive potential of the U.S. market, companies that include Chemistree Technology, Inc. (CSE: CHM) (OTCQB: CHMJF) (CHMJF Profile), Aurora Cannabis (TSX: ACB) (NYSE: ACB), CannTrust Holdings, Inc. (TSX: TRST), Organigram Holdings, Inc. (TSX.V: OGI) (OTCQX: OGRMF), and Supreme Cannabis Co. (TSX.V: FIRE) (OTCQX: SPRWF) (SPRWF Profile).

To view an infographic of this editorial, click here.

By the end of 2025, the legal cannabis industry is expected to reach $146.4 billion worldwide. Meanwhile, a good number of U.S. companies and investors are being mostly locked out of this booming market because the federal government still classifies cannabis as a Schedule I drug.

However, a sea change of public opinion pointing towards a demand for federal legalization is underway with several states already having voted in favor of cannabis in some form. Even the notoriously conservative, teetotalling state of Utah has joined this revolution.

As Sessions’ replacement has yet to be announced, there is ongoing speculation on the positive benefits of a new face for the cannabis sector. As Forbes magazine puts it, “The new AG will likely be less of an opponent for cannabis simply because it is hard to find someone who has stronger opposition than Mr. Sessions.”

What’s on the table is a massive multibillion-dollar sector that could be unleashed quite quickly should the next AG have a softer and more populist approach to the plant. During the lead-up to a potential legalization, companies large and small are staking their ground in lucrative U.S. regions already brimming with a willing clientele eager to buy legal cannabis.

California alone could bring about a green wave, boasting an existing cannabis market larger than all of Canada combined. Chemistree Technology, Inc. (CSE: CHM) (OTCQB: CHMJF) has already begun setting up shop in the Golden State, having recently solidified a land purchase of 9.55 acres in California’s prominent Desert Hot Springs’ cannabis cultivation zone.

Chemistree’s strategic move into California is representative of an early-mover advantage, despite the state’s already booming cannabis sales. California’s cannabis spending hovered near $3 billion in 2017 — even before recreational marijuana became legal on January 1. By 2022, the market in the state is expected to soar to $7.7 billion.

In spite of the legal limbo of cannabis in the United States, the sector’s advantage may already be moving south from Canada into its neighbor to the south. Ahead of the new AG announcement, it appears the U.S. opportunity may have already arrived.

Waking the American Sleeping Giant

Combined, the top U.S. cannabis firms trading on Canadian exchanges represent $8 billion of market value—or roughly 20 percent of the billion-dollar market capitalization of the 144 cannabis companies listed in Canada. This just scratches the surface.

At the moment, the United States lags behind its fellow North American peers in fully capitalizing on the legalization of medical and recreational cannabis. Mexico is moving closer to legalization, with its congress at the beginning of deliberation of a bill to legalize cannabis across the country. During his election campaign, Mexican president-elect Andrés Manuel López Obrador signaled his willingness to consider legalization. Then last week, the country’s Supreme Court ruled that anti-cannabis laws are unconstitutional, forcing lawmakers to decide how to regulate its use.

To the north, Canada — along with Uruguay in South America — has already made recreational use legal. An additional 30 countries and 33 U.S. states, including Australia, Germany and Israel, have legalized some type of cannabis use. Those numbers are growing. More than a dozen countries have already started on the path to full legalization of the plant.

Following the resignation of AG Jeff Sessions, Sessions’ chief of staff, Matthew Whitaker, is presently serving as acting attorney general. Media outlets are speculating who the next AG could be, with New Jersey Governor Chris Christie and Florida AG Pam Bondi leading the way as potential candidates.

While Christie has been adamantly anti-pot in the past, Bondi oversaw the approval of medical marijuana in her state of Florida. A Bondi nomination, coupled with strong public support could ultimately be a major boost for the cannabis sector.

Gearing Up for a New Era

Cannabis companies are already getting their ducks in a row for a new era of legalization. With operations in Washington State and now California, Chemistree is gearing up for a big move.

Upon the announcement of its California land acquisition, Chemistree president Karl Kottmeier stated, “This is a great purchase for Chemistree. I am pleased to report that our highly experienced team in California has begun working on this exciting project. Not only did we arrive at what we believe is a very attractive price, we are buying a site that already has much of the Conditional Use Permit application process well underway. We expect to have the application submitted within the next few weeks and anticipate approval to take 2–3 months thereafter.”

The property is capable of supporting development plans and a Conditional Use Permit application for three 68,000-square-foot cultivation and processing buildings on the site, totaling approximately 205,000 square feet.

Earlier in the year, Chemistree purchased the high-quality, Washington-based Sugarleaf brand with the expressed intent to more than quadruple the reach of its product line through 2019. By taking Sugarleaf’s brand reach across state lines into California, Chemistree is pairing the new brand with its already acquired assets.

Beyond cultivation and branding, Chemistree is also expanding into Northern California. The company has entered into a joint venture on a cannabis processing facility in the north, while also seeking capital to expand locations in the state and broaden its service offerings.

More Red, White, Blue and Green Opportunities

Having recently spun off its American assets into Australis Capital, multinational cannabis producer Aurora Cannabis (TSX: ACB) (NYSE: ACB)  plans to enter the world’s largest economy when relevant laws allow it to do so. While Aurora currently has no direct ownership interest in Australis, the company holds two warrants that would allow it to acquire an ownership interest in Australis if holding investments in U.S. cannabis assets becomes permissible within a decade. In the meantime, Aurora has successfully listed itself on the NYSE.

Soon to be following in Aurora’s NYSE footsteps is CannTrust Holdings, Inc. (TSX: TRST). CannTrust managed to double its sales in Q3, as it prepared to move to the NYSE. While still early in the game, CannTrust delivered sizeable sales growth, and nominal profits. It entered into supply agreements with nine Canadian provinces to supply recreational cannabis across Canada. The company recently launched its fourth recreational brand named “Peak Leaf,” started shipping cannabis oil to Denmark and entered into an exclusive partnership agreement with Kindred Partners, Inc.

Possibly joining the caravan to the NYSE is OrganiGram Holdings, Inc. (TSX.V: OGI) (OTCQX: OGRMF). With a market cap around $600 million, OrganiGram is likely a suitable choice for listing on the NASDAQ exchange, but it could also potentially fit on the NYSE. When it’s finally to scale, OrganiGram will likely be one of the 10 largest cannabis producers in Canada. However, an opening up of the U.S. market would only serve to boost OrganiGram’s already impressive growth curve.

While not actively operating in the United States, Supreme Cannabis Co. (TSX.V: FIRE) (OTCQX: SPRWF) is preparing for entry into the international oils (for medical use) market. Through a partnership with Medigrow located in Lesotho, Supreme is looking to secure international opportunities including Medigrow’s 40,000 litres of cannabis oil potential per year. A loosening of U.S. drug policy could allow groups such as Supreme to import their wares from abroad into the United States and get involved in what could be the largest cannabis market in the world.

For more information on Chemistree, visit Chemistree Technology, Inc. (CSE: CHM) (OTCQB: CHMJF)

Please also read and review the article ‘With Cannabis Now Legal in Canada, Investors Are Turning South to the Largest Emerging Cannabis Market in the World’

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.

Receive Text Alerts from CannabisNewsWire: Text “Cannabis” to 21000

For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News

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

CannabisNewsWire (CNW)
Denver, Colorado
www.CannabisNewsWire.com
303.498.7722 Office
Editor@CannabisNewsWire.com

DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer’s filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer’s securities, including, but not limited to, the complete loss of your investment.

CNW HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW undertakes no obligation to update such statements.