Tag: APHA

420 with CNW — Medical Marijuana Shares Off to a Great Start on London Stock Exchange

Marijuana shares in the UK have been rising quickly, with investors now looking toward a new investment class in the market: medical marijuana shares.

Last week, MGC Pharma, which is London’s first marijuana stock, debuted on the London Stock Exchange. The firm raised £6.5 million ($9 million) on its premiere, with the stock moving to 4.25p (59 cents) a share from a 1.475p (25 cents) per share opening price. This left the company with a market cap of more than £75 million ($104 million).

In a way, the increase in the London stock mirrored the American market, when investors from Reddit’s r/WallStreetBets forced the price of various marijuana stocks to rise on the back of an Aphria and Tilray merger. The likelihood of President Joe Biden’s administration federally legalizing the marijuana industry has also helped.

Tilray Inc. (NASDAQ: TLRY) rose by 50%, which added more than $2 billion in value to the company’s stock. This upped the company’s yearly gains to more than 670%. Other companies that have recorded significant gains this year are Aurora Cannabis Inc.  (NYSE: ACB) (TSX: ACB), which has increased by more than 120% so far; Aphria Inc. (NASDAQ: APHA), which was up by 280%; and Canopy Growth Corp. (TSX: WEED) (NYSE: CGC), which rose by 110%.

So far, London has been slow to launch medical marijuana IPOs. However, following MGC Pharma’s remarkable reception last week after a two-year campaign by Memery Crystal, a London law firm, attitudes may at last be changing.

Up until now, regulators and banks were concerned that marijuana businesses would be seen as almost-criminal enterprises; turns out, this may not be the case. Memery Crystal CEO, Nick Davis, who is also an advocate campaigning for the medicinal use of marijuana, stated that after MGC Pharma’s successful IPO, he received calls from America, Canada and Israel, all from companies that wanted to list in the United Kingdom.

Over in the United States, medical marijuana is legal in 30 states. Projections from Prohibition Partners show that by 2024, the country’s market will be valued at $37.9 billion. The firm also estimates that by 2024, nearly 340,000 patients in the UK will be using marijuana treatments. Additionally, their research states that by 2024, UK’s legal marijuana market will be valued at nearly £2.3 billion.

In the UK, research focused on the medical applications of marijuana is still in the early stages. Many are hopeful, however, that London may soon become the right place for the growing marijuana market to raise funds to finance further medical studies and research. However, advocates are still emphasizing that the whole point of this is not to help individuals get high but to help manage pain and relieve human suffering.

Furthermore, guidelines from the National Institute for Health Care and Excellence asserted that the medication from MGC Pharma was effective, which assisted in moving things along.

Back in the States, Gage Growth Corp. (d.b.a. Gage Cannabis) , which operates within the Michigan marijuana market, has initiated a number of steps intended to grow its brand. For example, the compamy has exclusive brand partnerships with some of the most recognizable brands, such as Cookies, across the country. Such partnerships are likely to see the company grow more rapidly than its competitors.

NOTE TO INVESTORS: The latest news and updates relating to Gage Growth Corp. (d.b.a. Gage Cannabis) are available in the company’s newsroom at https://cnw.fm/GAGE

About CNW420

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

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CannabisNewsAudio – Pac Roots Cannabis Corp. (CSE: PACR) Employs Cutting-Edge Genetics to Deliver Premium Products

CannabisNewsWire Editorial Coverage: As the cannabis industry matures and is again heating up — a recent eye-popping report by Data Bridge Market Research projects that the global legal marijuana market will explode to more than $90 billion by 2027. Companies operating in the sector are looking to capitalize on opportunities the multibillion-dollar space offers. Recognizing the often submarginal quality of available product as well as high cost of development and land acquisition, Pac Roots Cannabis Corp. (CSE: PACR) (PACR Profile) utilizes state-of-the-art genetics to ensure premium-quality products. Using science and key strategic partnerships, Pac Roots intends to eliminate the quality and cost barriers to success and carve what could be profitable niche in a booming market. Canopy Growth Corporation (NYSE: CGC) continues expansion of its Canadian operations while Cronos Group Inc. (NASDAQ: CRON) has officially entered the Israeli medical cannabis market with the sale of its dried flower products. Aphria Inc. (NASDAQ: APHA) has also entered the Israeli market with its recently announced supply agreement with Canndoc, and Organigram Holdings Inc. (NASDAQ: OGI) has launched Trailblazer Snax, the largest cannabis-infused chocolate bar in Canada.

To hear the AudioPressRelease, visit http://cnw.fm/XHwyi

To view the full editorial, visit http://cnw.fm/dfp4F

About Pac Roots Cannabis Corp.

Pac Roots is focused on delivering the finest genetics to Canadians. Preserving the excellence of its elite strains while introducing the highest quality of new strains to the public is the company’s passion. The foundation, based on genetic variation and stability, drives the decision making for Pac Roots Cannabis Corp.’s business. For more information about the company, visit www.PacRoots.ca.

NOTE TO INVESTORS: The latest news and updates relating to PACR are available in the company’s newsroom at http://cnw.fm/PACR

About CannabisNewsAudio

CannabisNewsAudio, a service of CannabisNewsWire (CNW), allows you to sit back and listen to market updates, interviews and company press releases. CannabisNewsAudio keeps you informed on publicly traded companies we’re watching. The audio clips provide snapshots of position, opportunity and momentum. CannabisNewsAudio is a complimentary service of CannabisNewsWire.

For more information, visit www.CannabisNewsAudio.com.

About CannabisNewsWire

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

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Cannabis Companies Committed to Quality Carve Niche in Multi-Billion-Dollar Industry

CannabisNewsWire Editorial Coverage: As the cannabis industry matures and is again heating up — a recent eye-popping report by Data Bridge Market Research projects that the global legal marijuana market will explode to more than $90 billion by 2027. Companies operating in the sector are looking to capitalize on opportunities the multibillion-dollar space offers. Recognizing the often submarginal quality of available product as well as high cost of development and land acquisition, Pac Roots Cannabis Corp. (CSE: PACR) (PACR Profile) utilizes state-of-the-art genetics to ensure premium-quality products. Using science and key strategic partnerships, Pac Roots intends to eliminate the quality and cost barriers to success and carve what could be profitable niche in a booming market. Canopy Growth Corporation (NYSE: CGC) continues expansion of its Canadian operations while Cronos Group Inc. (NASDAQ: CRON) has officially entered the Israeli medical cannabis market with the sale of its dried flower products. Aphria Inc. (NASDAQ: APHA) has also entered the Israeli market with its recently announced supply agreement with Canndoc, and Organigram Holdings Inc. (NASDAQ: OGI) has launched Trailblazer Snax, the largest cannabis-infused chocolate bar in Canada.

  • Pac Roots has unlimited access to one of Canada’s largest live, genetic cannabis library with more than 350 lab-tested, field-tested cultivars.
  • High-quality flowers are essential to the process of producing high-quality cannabis products.
  • PACR focuses its cultivation operations on the best outdoor growing climates in Canada.

Click here to view the custom infographic of the Pac Roots Cannabis Corp. (CSE: PACR) editorial.

The Quest for Quality

Common sense dictates that high-quality flowers are essential to the process of producing high-quality cannabis products. Yet as demand for these products has spiked and more companies have entered the burgeoning space, cannabis genetics may actually be slipping as competitors scramble for market share.

Pac Roots Cannabis Corp. (CSE: PACR) is dedicated to delivering the finest cannabis genetics to its consumers, preserving the excellence of its carefully cultivated elite strains while also working to introduce superior new strains. While some companies may strive to be the largest cannabis grower, Pac Roots believes that the quality of the product is paramount. With demand for premium products at an all-time high, Pac Roots appears to be ideally positioned as a leader in the premium-cannabis space.

The company achieves this commitment to excellence in part through its strategic licensing agreement with Phenome One Corp, which gives Pac Roots complete access to one of Canada’s largest live, genetic cannabis library with lab and field-tested, selectively bred cultivars. Pac Roots utilizes the cultivars in the Phenome library to grow, breed and clone its own unique brands. Through careful breeding and cultivation, Pac Roots offers everything from CBD-dominant plants with rare terpene profiles and soaring 30%-plus THC giants to West Coast outdoor, botrytis-resistant plants.

Pac Roots and Phenome One are developing elite strains with multiple beneficial characteristics. The impressive  catalog consists of more than 350 tested cultivars; approximately 50 are in the super-elite category. The goal for the partnership is to offer the highest-quality cultivars that have been proven and stress tested under variable commercial conditions to provide the utmost resilience. The two companies share a dedication to delivering rich THC and CBD cultivars with unique terpene profiles while continuing to attain industry-leading GPW yield.

Optimized Farming Systems

Superior genetics isn’t the only key to cultivating quality cannabis. Optimized farming systems are essential in the quest for quality product. Pac Roots works closely with carefully selected partners to optimize cultivation through unique, proprietary methods, including the following essential aspects:

  • Nutrients are custom formulated from raw salts for specific cultivars.
  • Systematic planting of young, hardy cultivars, measuring up to 18 inches, which provides maximum opportunity for growth and resilience.
  • Row compaction and mowing for weed control, enabling a selected harvest
  • Complex irrigation systems with direct-nutrient and spring-water delivery to each plant site.

In addition to following a tested and refined cultivation process, the company carefully chooses its cultivation sites, focuses its operations on the best outdoor growing climates in Canada, including the South Okanagan Valley and the Fraser Valley Regional District.

Cultivation on the Golden Mile

Known as the Golden Mile and now referred to as the Napa Valley of the North, the South Okanagan Valley in British Columbia is the site of Rock Creek Farms, a 100-acre, premium-hemp, joint venture that Pac Roots started in May 2020 after receiving its hemp cultivation license from Health Canada.

Planting began in mid-June; approximately 130,000 premium-hemp CBD seedlings, which had been sown a month earlier in greenhouses to ensure optimal growth and minimize environmental impact, were systematically planted across two 50-acre parcels. With harvesting expected to begin in October, the hemp plantation crop is forecast to be between 500,000 and 700,00 pounds of biomass; 100% of that yield is already under contract with a processor at fair market value.

“It has been a busy for months since listing on the CSE in early May 2020,” said Pac Roots CEO Patrick Elliott. “We are proud to have a healthy crop and remain bullish on delivering a premium, high-yielding product to our customer. In early 2020, we had a goal of becoming a revenue generator in 2020 as market appetite was evolving towards a cash flow scenario and realizing on projected forecasts as paramount to survival in this industry. We are privileged to be involved with our strategic partners at Rock Creeks Farms, Phenome One and Speakeasy Cannabis Club as a production scenario in our first year of operation would not have been possible without the generous leasing of land, equipment, licenses, infrastructure, genetics, operations team, management and expertise to round off the joint venture.”

Pristine Property in Fraser Valley

In addition, the company is slated to soon complete a share purchase agreement of 250 acres of prestigious land in the Fraser Valley Regional District (“FVRD”) of British Columbia. The agreement, made with 1088070 BC. Ltd. outlines Pac Roots plans to acquire all of the issued and outstanding shares of 1088, which owned nine parcels of pristine property in FVRD, one of the most productive and intensively farmed areas in Canada. The area offers high-quality soil, favorable climate, water and a local market of 2.5 million people. Agriculture in this region yields an annual economic value of more than $3 billion.

“The addition of such a substantial package of land to our portfolio is a major step for Pac Roots,” said Elliott. “We are pleased to have the opportunity to add significant acreage with an acquisitional cost base of $9,600 per acre. This land has no zoning restrictions and is not situated within the Agricultural land reserve, which provides for infinite development possibilities.”

The acquisition of the 250 FVRD acres combined with the 100-acre hemp joint venture in Rock Creek, along with the company’s plans for an indoor cultivation facility in Lake Country, British Columbia, demonstrates a long pipeline of development projects for Pac Roots. Through these recent achievements, the growing company is confirming its ability to optimize cultivation with seasoned expertise. Its commitment to maximizing yield while lowering production costs seems evident throughout Pac Roots’ strategic growth plan.

With demand for high-quality cannabis products only expected to increase as large-scale growers appear unable to deliver a premium-grade flower, Pac Roots appears to have firmly established its commitment to offering the finest crops available and developing the future of genetics. “Preserving the excellence of our elite strains while introducing the highest quality of new strains to the public is our passion,” the company’s website declares, and its recent activity in the cannabis market looks to support that mission.

Becoming Cannabis Players

Unique in its approach and commitment to quality, Pac Roots isn’t the only company vying for market share in the flourishing cannabis sector.

Canopy Growth Corporation (NYSE: CGC) expanded operations into Alberta, opening 10 retail stores under the Tokyo Smoke and Tweed brands. This announcement marks CGC’s commitment to national retail expansion and added consumer engagement opportunities across Canada. Canopy’s retail expansion into Alberta brings the number of Tokyo Smoke and Tweed retail cannabis stores in Western Canada — Manitoba and Saskatchewan — to 29, while increasing  Canopy’s retail banners across the entire country to a total of 50. More are planned in the coming months.

Cronos Group Inc. (NASDAQ: CRON) is expanding as well. The company officially entered the Israeli medical cannabis market with the sale of Peace Naturals-branded, dried-flower products to medical patients. “In the second quarter of 2020, we continued our progress despite unprecedented shifts in our industry and the global economy,” said Cronos Group CEO Mike Gorenstein. “During these extraordinary times, it is very encouraging to see that we are making progress against our strategy across our global footprint,” said Mike Gorenstein, CEO of Cronos Group.

With the announcement of its supply agreement with Canndoc, one of Israel’s largest and most established medical cannabis producers, Aphria Inc. (NASDAQ: APHA) is now positioned within two of the largest cannabis markets outside of Canada. Under the terms of the agreement, Aphria will supply Canndoc with dried bulk flower over a two-year period, with options to extend for additional terms if the parties agree to terms. The strategic partnership will also include the possibility of Aphria and Canndoc collaborating on research initiatives such as clinical trials focused on the use of medical cannabis with leading hospitals and research institutions in Israel and exploring potential collaboration in the EU market.

Organigram Holdings Inc. (NASDAQ: OGI) is pursuing the end-consumer market with the recent release of its Trailblazer Snax, the largest cannabis-infused chocolate bar in Canada. The company’s most recent cannabis 2.0 product, Trailblazer Snax was developed to satisfy discerning chocolate connoisseurs while remaining an affordable cannabis-infused option. Available in both mint and mocha flavors, the 42-gram bar provides 10mg of THC is competitively priced and is divided into five sections, allowing consumers to share as well as control dosage.

In an industry projected to top $90-billion in just a few years, the moves by companies operating in the cannabis space speak to the industry’s promising future. Companies that focus on high-quality products through genetics while controlling costs could reap outsized market rewards  as the sector continues to grow and mature.

For more information about Pac Roots., please visit Pac Roots Cannabis Corp. (CSE: PACR)

About CannabisNewsWire

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

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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.

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CannabisNewsBreaks – Three Canadian Licensed Producers with Price Target Downgrades

A technical420 editorial published today and written by Anthony Varrell highlights details regarding three Canadian Licensed Producers (“LPs”) with price target downgrades. The cannabis sector, yesterday, recorded one of its best trading days of the year, coming after Aphria Inc. (TSX: APHA) (NYSE: APHA), a leading Canadian LP, released first quarter financial results. According to the update, one of the reasons the move caught attention is because it comes after heavy pressure on the cannabis sector. Canadian LPs such as Aphria have been some of the most impacted during this time. The article goes on to highlight some of the recent price target changes on Aphria, Canopy Growth Corp. (TSX: WEED) (NYSE: CGC) and Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB), indicating these three Canadian LPs are trading well below the average price target issued by the listed broker-dealers.

To view the full press release, visit http://cnw.fm/OOmf3

About Technical420

Technical420 is dedicated to educating investors about the risk and rewards of investing in the cannabis industry. It highlights companies that have the most growth potential by utilizing its proprietary analytics platform. For more information, visit www.technical420.com.

About CannabisNewsWire

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

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New Technology Enters the Market as Demand Rises for Hemp Processing Power

CannabisNewsWire Editorial Coverage: Rising hemp production is putting pressure on processing.

Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile), a provider of cultivation equipment, is adding processors to its catalog of products, focusing on next-generation machinery. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) will be among the companies with a rising demand for processing, as it increases both its cultivation capacity and its product lines. Demand is rising in part thanks to CBD’s public profile, with deals such as the partnership between Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) and UFC shining a spotlight on the plant and its potential. New uses for CBD are also increasing demand for the plant, with R&D led by companies such as Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) and Aphria (NYSE: APHA) (TSX: APHA).

  • Hemp can be processed to extract both fibers and cannabidiol (CBD).
  • CBD is currently the most valuable segment of the North American hemp market, though demand is likely to grow for fiber processing.
  • Larger machines offer one option to increase the scale of processing.
  • New technology may provide a more efficient answer.

To view an infographic of this editorial, click here.

Masses of Hemp

The year 2019 looks to be a bumper year for the U.S. hemp industry. Rising consumer demand has met the legal relief of the 2018 Farm Bill, whose passage in December paved the way for legal hemp cultivation and processing across the country. The industry is preparing to make hay while the sun shines — or in this case, make heaps of hemp.

This rise in production, which is expected to continue into next year and beyond, is inevitably creating complications. Most important among these is the challenge of processing the hemp. U.S. hemp-processing businesses are relatively new and small scale, as is much of the machinery with which they work. If the industry is to profit from the massive rise in hemp production, then it needs to ramp up its processing capacity. Otherwise today’s bumper crops could become tomorrow’s waste.

What We Get from Hemp

Hemp production and processing has risen from nothing to become a huge business in just the last few years. Companies working in the sector, such as Sugarmade Inc. (OTCQB: SGMD), cover a wide range of products and services, from providing cultivation supplies to marketing new products to consumers.

Those products usually incorporate one of the two main ingredients that can be extracted from hemp: fibers and cannabidiol (CBD).

Fibers are how hemp has been traditionally cultivated and used. For centuries, hemp was the basis of rope and cloth, playing an essential part in equipping navies and clothing people. This use fell out of fashion in the 20th century, as sailing was replaced by mechanical shipping, and hemp became caught up in drugs criminalization efforts. As a result, America is not well positioned to produce hemp fiber, and imports most of what it uses from China, a country with a more advanced hemp fiber industry. But with growing interest in hemp and the disruption of trade wars, home-grown fibers have moved onto center stage, with more companies recognizing the significant opportunity the crop offers.

The product that has brought American companies such as Sugarmade into the hemp space is one of the breakaway commercial phenomena of the past decade — CBD. A natural chemical found in hemp and related plants, CBD has recently been the subject of much research and development. Claims have been made for its effectiveness in relaxation, pain management and countering anxiety. The component has become a popular ingredient in health and well-being products, including supplements, foods and toiletries.

With a bumper harvest of hemp expected this fall, companies throughout the value chain are asking how raw hemp can most effectively be processed to provide for the massive demand for CBD.

Scaling Up

The industry is clearly going to have to scale up to meet the challenge of hemp processing. This burgeoning increase is creating unprecedented levels of demand for processing machinery.

“Our staff has done extensive research into the fast-growing hemp industry,” said Sugarmade CEO Jimmy Chan. “We continue to see an imbalance between cultivation outputs and extraction capacities within the industry. This leads us to believe the market for extraction services and the equipment required by these extraction companies will continue to accelerate.”

The company has responded by entering the market for hemp extraction technologies and equipment. As a supplier of cultivation supplies, Sugarmade has already benefited from the green rush surrounding the Farm Bill and the growing interest in hemp that preceded it. Moving from cultivation equipment to extraction equipment is a natural next step for a company whose business model is built around supporting cultivators.

In addition to increasing the number of machines available, many companies are looking into providing bigger machines that can process ever bigger volumes of biomass. But the drawback of this “bigger is better” philosophy is cost. The larger machines being installed in many extraction facilities are expensive, not just for the machines themselves but also the associated costs. Expenses such as real-estate square footage and ethanol storage have to be factored in, and once those costs are included, a modern hemp-extraction facility can easily cost tens of millions of dollars, a cost passed on to cultivators through processing fees.

While the industry’s processing capacity clearly needs to increase, the best solution may not be the most obvious. Sugarmade is looking at a different approach.

New Technology

Rather than focus on larger versions of current machines, Sugarmade is exploring the next generation of hemp-processing technology.

Most CBD extraction in the United States currently uses ethanol to chemically separate the CBD from the rest of the plant and make it available for use. But other options are available and are becoming more sophisticated. New technology using water-based sonication extraction, microwaves and other techniques may transform the way extraction is carried out — and significantly impact costs as well. These machines, which Sugarmade plans to make available to its customers, could reduce the cost of extraction and so help cultivators increase their output without exorbitant increases in cost.

These technologies may also help with other steps in the processing of hemp. New machines could perform additional functions that currently require auxiliary equipment, such as THC remediation and removing heavy metals. Skipping steps in processing would only add to the efficiency of operations, reducing costs and increasing speed of processing.

To bring this new technology into the American market, Sugarmade is working with Chinese manufacturers. The Chinese market is advanced in its approach to extraction, thanks to its reliance on essential oils for herbal medicines. For more than a thousand years, Chinese farmers have been cultivating and extracting essential oils from hemp. This expertise has led to an in-depth understanding of the process and the equipment needed to complete the task. Working with Chinese manufacturers could allow Sugarmade to provide its customer with more advanced and efficient technology.

Hemp processing needs to scale up. But just because eventual outputs need to be bigger doesn’t mean that bigger is necessarily better where machinery is concerned. In many cases, bigger may be just more expensive, whereas improved technology could bring real benefits.

Companies in Need of Processing

The pressure on processing capacity for hemp and related plants comes in part from the emergence of large companies in the sector. Among these is Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), a leading player that has benefited from investment from other industries. The company has been steadily growing, including through the acquisition of a company making hemp skin-care products, creating demand for more CBD from within the company. To help meet this demand, it has been preparing another acquisition of Acreage Holdings Inc.

Another of the large Canadian companies with an interest in hemp and CBD, Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) is exploring new ways in which these products can be of use. The company recently announced a partnership with mixed martial arts company UFC. As part of this arrangement, Aurora will explore ways in which its research and products might help athletes, whether in pain relief, dealing with the strains put on muscles, or helping with rest and relaxation. The partnership could help raise the company’s profile by association with an exciting sport and some of the world’s most impressive athletes.

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) is also looking for new approaches to CBD, with the creation of a recent R&D facility. While R&D work may only consume relatively small amounts of plants, its results include new products that could expand the market and increase demand for processing facilities. The company’s CEO, Mike Groenstein, has also been raising the profile of this work through a series of conference appearances, as the sector becomes better connected and interdependent.

The law around CBD and related products continues to evolve, and with it the products that can be sold. Aphria (NYSE: APHA) (TSX: APHA) is developing vaporization products in anticipation of changes in Canadian law later this year. As more states and countries bring in ever more liberal laws, product ranges should continue expanding, and with that growth will come the sector’s rising demand for equipment.

For more information on Sugarmade, visit Sugarmade Inc. (OTCQB: SGMD)

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)
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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.

Acquisitions Reveal the Steadily Changing Shape of the Cannabis Sector

CannabisNewsWire Editorial Coverage: The cannabis sector continues its steady shift toward big business, big money and a focus on the value add of immaterial assets.

TransCanna Holdings Inc. (CSE: TCAN) (FRA: TH8) (TCAN Profile) has made several key acquisitions, creating a large operation with various licenses and recognized brands. HEXO Corp. (TSX: HEXO) (NYSE American: HEXO) has taken a similar path with the acquisition of Newstrike. Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) is building a positive public profile through releasing educational tools. Aphria Inc. (TSX: APHA) (NYSE: APHA) has expanded the hunt for cultivation licenses to Germany. Meanwhile, companies such as Charlotte’s Web Holdings Inc. (TSX: CWEB) (OTCQX: CWBHF) keep releasing new products into the market.

  • Cannabis companies are increasingly engaging in multimillion-dollar acquisitions.
  • These support a consolidation of the industry as it moves from scattered creativity to efficient large businesses.
  • The trend built in part on intangible assets, including brands and licenses.

To view an infographic of this editorial, click here.

A Very Different Business

The image of the cannabis industry varies hugely depending upon one’s point of view. To proponents, the market is a radical and transformative sector that’s bringing the world together. For opponents, it is one more vice threatening public morals. For many in the middle ground, it’s a space where hippies and stoners can thrive, though not one that encourages the buzz and dynamism of mainstream business.

In reality, the cannabis sector fits none of these images. The industry is emerging from its early, tentative steps into legality to become a significant business sector much like any other, with all the apparatus of modern capitalism and a focus on intangible assets such as intellectual property. All of this is reflected in the sector’s recent burst of mergers and acquisitions.

Big Money Deals

The most eye-catching aspect of mergers and acquisitions in the cannabis sector is the amount of money that goes into them. Take just two recent examples from a single company, TransCanna Holdings Inc. (CSE: TCAN) (FRA: TH8). In the past few months, the Vancouver-based cannabis company has made announcements on two major deals. First came the acquisition of a 196,000-square-foot vertically integrated cannabis facility for a total purchase price of $15 million. Then came a letter of intent relating to Californian company Lyfted Farms outlining TransCanna’s plans to acquire Lyfted’s business and assets for $5.5 million.

By the standards of some businesses, these might not seem like huge deals. But when a company is investing $20 million on expansion in the space of a couple of months, that certainly says something. That TransCanna can make these deals is a show not only of the strength of the company but also the strength of the industry.

The idea that there’s a lot of money in cannabis might not be surprising to anyone who’s seen TV depictions of the drug trade. Dramas such as Narcos show a world of high earners with big stacks of cash. But as sociologists such as Sudhir Venkatesh have shown, the reality for most people working in the illegal drug trade is vastly different. They earn less than minimum wage in jobs that are dangerous and uncertain.

The financial growth of the legal cannabis industry has therefore been a positive move for everyone from company leaders to their lowest-paid employees. The legalized trade is pulling money out of the black-market economy and allowing those at the top to earn big bucks while also providing employees with a decent wage. Far from weakening the power of legal providers, paying employees properly is leaving them with enough money to go around buying up competitors, as TransCanna is doing.

Success has also brought funds from outside. From private individuals to big alcohol and tobacco companies, investors are pouring money into pot, allowing businesses to expand while keeping their employees happy. There are living wages at the bottom and big money at the top.

Tidying Up the Market

The growth of the legal cannabis industry started with a scattershot approach. TransCanna is just one of many companies that have grown into the market from relatively small beginnings. Some began with entrepreneurs seeing a new industry within which to operate. Others were experienced cannabis cultivators moving from the illegal to the legal market. Still others were pharmaceutical companies dipping their toes into a new medicine and, from there, into the recreational industry.

As a result, the cannabis industry is cluttered with diverse and disconnected businesses. But now it’s moving on from this scatter-gun approach to a period of consolidation.

This doesn’t mean that the variety created in that early surge is being lost. When larger companies buy up smaller ones, it’s often with the aim of continuing the individual brands and styles the smaller companies have created. For example, TransCanna has announced the acquisition of GoodFellas, which will allow it to take control of the Daily Cannabis Goods brand. TransCanna CEO Jim Pakulis has talked not in terms of absorbing the Daily brand into TransCanna’s existing identity but in terms of maintaining Daily and expanding its sales.

The consolidation of multiple brands and businesses into a smaller number reflects a dialectic process that’s common in new business areas. First comes a burst of creativity. With few precedents and no big players dominating the market, entrepreneurs and creatives have free rein. Some of their experiments fail, but the ones that succeed get consumers interested and fill the market with ideas.

While this creates plenty of exciting idea and products, it’s also inefficient. In the phase that follows, bigger companies step in or emerge from among the smaller ones. Consolidation creates efficiency, providing more reliable products for consumers and better value for companies.

The contrasting approaches of small innovative companies and larger efficient ones together create excellent value. That’s the point the cannabis industry is now approaching and that TranCanna’s acquisitions are a part of.

The Power of the Immaterial

In the illegal market, all that mattered for cannabis sellers was the product. But in the legal market, things work differently. When a company can use the full apparatus of marketing, intangible assets such as intellectual property become important. That’s why GoodFellas is valuable to a company such as TransCanna — not just for its cannabis but for the Daily brand that’s attached to it.

And while intangible assets are normally talked about in terms of brand and IP, there’s another sort of asset that gets much less publicity and that the cannabis industry is bringing to investors’ attention: legal licenses.

Licenses of various sorts are important for a wide range of industries, from food production to mining. But they have a particular prominence in the cannabis industry because tight regulation has created a scarcity of licenses. When TransCanna subsidiary TCM Distribution Inc. gained cannabis manufacturing and distribution permits from the City of Adelanto, California, it was an important step in the company’s growth within the state. And when a deal like TransCanna’s acquisition of Lyfted is announced, the target’s cannabis licenses are often mentioned. These licenses are a crucial asset and one that investors are concerned about. Without the licenses, the business can’t function.

The prominence of licenses is a new feature of investment for those going into cannabis. But it could be a feature that helps investors recognize these assets in other companies. Cannabis companies are increasingly about immaterial assets, and immaterial assets are increasingly about licenses as well as IP.

Keeping Profiles High

In such an atmosphere, cannabis companies are working hard on keeping their profiles high while building up their portfolios of products.

Canadian cannabis company HEXO Corp. (TSX: HEXO) (NYSE American: HEXO) has, like TransCanna, been using acquisitions to build up its business. Originally a medical cannabis provider, HEXO joined the recreational market when Canada changed its laws last year. Since then, it has completed an acquisition of Newstrike, the parent company of Up Cannabis Inc, a licensed producer and distributor. It’s a deal that fits with the importance of immaterial assets. Licensing is important in Canada, both for production and distribution, and acquiring a company that is already licensed is the easiest way to expand a company’s footprint in the country.

Good publicity is another of the intangible assets that come with a good company, and few have achieved more publicity within the sector than Canopy Growth Corporation (TSX: WEED) (NYSE: CGC). When the company received a multibillion-dollar investment from Constellation Brands, it was the first time the sector had received such a big input of cash from outside, so the move drew substantial attention. Now the company is raising its profile in a different way, demonstrating its responsible attitude through the release of digital cannabis education tools.

Aphria Inc. (TSX: APHA) (NYSE: APHA) has taken the hunt for intangible assets global, with the acquisition of five cultivation licenses in Germany. With the North American cannabis industry increasingly well established, Europe is the next big frontier, and Aphria is racing in ahead of many of its competitors.

All this work on intangibles would be useless without physical products to go with it, and product innovation continues at a high pace. Charlotte’s Web Holdings Inc. (TSX: CWEB) (OTCQX: CWBHF) has recently announced the release of hemp-extract CBD gummies designed help with calm and sleep. CBD products are an increasingly important subsector of the market, and products of this kind have potentially wide reach.

The cannabis industry is changing, with big money, consolidation and growing intangible assets, but it remains grounded in a strong consumer desire for cannabis.

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

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 Surge Puts Pressure on Cultivation Supplies

CannabisNewsWire Editorial Coverage: Growing demand for CBD is increasing pressure on companies that provide key cultivation equipment and industry supplies.

As part of its commitment to build a large and well-supplied sales channel, hydroponic supplier Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile) is in the process of making acquisition of companies that supply the hemp industry. An increasing need for supplies is coming from companies such as Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), a major cultivator and processor making moves on the CBD drinks and well-being markets. Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) has entered into a supply agreement with another provider to ensure the materials it needs for its products. Global efforts by companies such as New Age Beverages Corporation (NASDAQ: NBEV) and Aphria (TSX: APHA) (NYSE: APHA) may further strain U.S. supply chains, due to greater cultivation restrictions in other parts of the world.

  • Many hemp growers use hydroponic techniques for indoor propagation.
  • These techniques allow greater control over genetics and produce higher quality plants.
  • The extraordinary rise in the North American cannabis sector is creating unprecedented demand.
  • Suppliers are responding with growth and mergers.

To view an infographic of this editorial, click here.

CBD Popularity Pushes Agricultural Supply and Demand

The popularity of CBD is creating new trends in the agricultural supply sector. Thanks to legal changes in Canada and the United States, farmers and agricultural companies are rushing to increase production of hemp and other CBD-bearing plants. For some, this involves a shift from growing other crops to hemp, as struggling farmers chase the profits promised by the sector. For others, it means expanding existing hemp production to make the most of the staggering rise in demand.

This concentrated movement is fueling demand for equipment, in particular the specialist equipment used for indoor growing. The agricultural supplies industry faces the possibility of real shortages, and companies that act to solve that problem by meeting the need could seize upon a chance to make this moment work for them.

Hydroponic Agriculture — Is a Supply Shortage Looming?

Growing hemp is a sophisticated business. Aside from the legal, licensing and security issues surrounding the process, growers need specialist equipment and seeds or clones from which to grow crops. It’s on the equipment side that companies such as Sugarmade Inc. (OTCQB: SGMD) are getting involved.

Sugarmade has moved into hemp equipment from another support sector — restaurant supplies and packaging. As with its more recent work, the company didn’t make its mark in the restaurant world by providing products directly to customers, but rather by providing businesses with the materials they needed to get their products out into the world. It may not be as glamorous or high profile as producing the end product itself, but the supporting the backend of the business is vital to keeping those industries going.

With the dramatic expansion of interest in CBD over the past few years, Sugarmade has taken the opportunity to diversify its work. Still focused on growth through brand expansion and acquisition, the company is now making those expansion and acquisition moves in the Hemp sector, where it provides cultivation equipment and supplies.

There are two approaches to growing hemp: outdoor cultivation using soil and indoor cultivation using hydroponic equipment. The choice often means the difference between quantity and quality of plants, with the latter increasingly dominant because of the improved reliability of supplies.

Providers of hydroponic equipment such as Sugarmade have therefore seen a surge in business from hemp growers. As cultivators look to increase their hemp harvest, they also need to increase the size and effectiveness of their growing spaces, and that means a higher demand for equipment.

The Benefits of Hydroponics

Hydroponics is a catch-all term for a number of indoor growing techniques. Sometimes the plants are grown in an inert layer that substitutes for soil, providing something for the roots to grow through. In other approaches, such as deep-water culture and nutrient-film techniques, plants that would naturally grow in soil are instead grown in liquid settings, with their roots floating free. Aeroponics goes a step beyond this, with the roots exposed and fed by sprays of artificial mist.

What each of these approaches have in common is that food for the crop is provided in the form of nutrient solutions direct available to the plants’ roots, instead of those plants having to take nutrition from the soil. This technique gives growers more control over what goes into their plants. Because hydroponic cultivating takes place indoors, farmers also gain greater control over the conditions in which the plants live, including temperatures and quantity and quality of light. Together, this allows for more consistent, higher quality growth, which can also be tailored to increase the quantity of CBD in a plant. It’s that quality and consistency that drives demand for the products offered by companies such as Sugarmade.

Sugarmade provides a wide range of products. These include equipment needed for setup, nutrients used to feed the plants, lighting systems and tools for testing the quality of the environment, which are essential to getting the desired results. The surge in demand caused by rising interest in CBD has put serious pressure on hydroponic suppliers. There have been reports of extensive back ordering and customers having to wait for supplies to come in. In a fast-growing industry where new or expanding cultivators are rushing to establish their positions, that could become a serious problem.

So what are supply companies doing to prevent an equipment shortage?

Ensuring Flow of Hydroponic Supplies

It might sound obvious, but one of the answers is larger businesses. Companies such as Sugarmade are dramatically expanding their operations, thus seeing an increased level of power over their supply chains and the capacity to both stock and sell greater volumes of agricultural equipment. The efficiencies and reach of larger companies, along with their financial capacity to order supplies in larger volumes, will invigorate the hydroponic supply chain and ensure that growers’ needs are met.

To support this goal, companies have been undertaking mergers and acquisitions. Sugarmade has made two such moves — and the company isn’t stopping there. As CEO Jimmy Chan said, “Sugarmade is expecting to realize exceptional revenue growth this year from all of our hydroponic-related market sectors. . . . We continue to seek additional acquisitions to further boost our already-expected robust revenue growth rate.”

Scale brings advantages beyond efficiency. Larger companies can provide a wider range of products, and so cater to the needs of cultivators trying out different hydroponic techniques. This supports innovation in hemp cultivation, as equipment from a single supplier can be used to experiment with best practices, from inert beds and water flows to aeroponics. Variety of resources also allows growers to experiment with their nutrient mix, thus obtaining the best possible results from their plants.

By providing a large supply base and a wide range of products, Sugarmade is helping to tackle equipment shortages and get hemp growers up and running.

Relying on Hydroponics

Hydroponics are now feeding into a huge sector growing hemp and other CBD-bearing plants.

One of the biggest companies in the space is Canopy Growth Corporation (TSX: WEED) (NYSE: CGC). Already a major player, the company’s purchasing power has been further expanded over the past two years by billions in investment from drinks giant Constellation Brands. This is seen as part of a wider trend of companies looking to produce CBD drinks, which could create yet another surge in demand for hemp and the equipment to cultivate it. Canopy Growth is currently pushing forward with a multifaceted hemp and CBD strategy and, as part of that focus, has acquired skincare and well-being company This Works.

The equipment needed by the CBD industry isn’t just about agriculture. The founding of a new R&D facility by Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) appears to be good news for companies equipping biotech researchers. In addition, Cronos has also entered a supply agreement to ensure a steady flow of concentrates needed for its products, ahead of changes in rules on foodstuffs that will expand the market in Canada later this year.

While much attention is on North America, New Age Beverages Corporation (NASDAQ: NBEV) announced in April its push to become a global brand. Selling CBD products including oils, creams and lotions, as well as its specialist beverages, the company is targeting an international customer base increasingly interested in the potential of CBD. Only three years old, New Age Beverages is already making a splash with its vibrant brand and growing product range.

Aphria (TSX: APHA) (NYSE: APHA) is also expanding globally, with the introduction of CannRelief, a CBD product line targeting Germany. The emergence of a European market is likely to increase demand for CBD from North America, at least in the short term, as many European countries have not yet seen legal changes to ease the production of CBD.

With CBD demand growing around the world, demand for cultivation supplies is also increasing. Companies that put in the work to expand their supply channels may establish profitable ongoing relationships with a new generation of hemp cultivators.

For more information on Sugarmade, visit Sugarmade Inc. (OTCQB: SGMD)

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.

Growing Media Coverage, Celebrity Endorsements Lead to Soaring CBD Popularity

CannabisNewsWire Editorial Coverage: Growing media attention and celebrity acceptance is fueling rising popularity of CBD.

Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) (WLDFF Profile) is one of the companies benefiting most from this attention, with its products featured in Kim Kardashian’s baby shower and the new Saks CBD salon. Aurora Cannabis Inc. (NYSE: ACB) is working with the UFC (Ultimate Fighting Championship) and its athletes in clinical studies involving pain management, inflammation, injury, exercise recovery and mental well-being. Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) recently acquired Beboe, a luxury cannabis brand founded in California. With this growing CBD popularity, HEXO Corp. (NYSE American: HEXO) announced that it has become the first cannabis company to join Food & Consumer Products of Canada (FCPC), the largest voice of the Canadian food, beverage and consumer products industry. And Aphria Inc. (TSX: APHA) (NYSE: APHA) has been awarded a fifth lot for the cultivation of medical cannabis in Germany as part of the company’s previously awarded license from the German Federal Institute for Drugs and Medical Devices.

  • Kim Kardashian’s CBD-themed baby shower splashed across business wires, tabloids, and social media.
  • High-profile appearances and placement are boosting upper-end CBD brands.
  • Broad media coverage is normalizing and drawing ever more customers to the sector.

To view an infographic of this editorial, click here.

CBD Whips Up Media Storm

Recent months have seen CBD in the media spotlight more than ever before. The relaxing natural compound, derived from hemp and cannabis plants but without the psychoactive qualities of THC, has been grabbing attention across the internet and in print and broadcast media. What was a fringe interest only a few years ago has now grown into the subject of unceasing mainstream attention.

Some of the coverage comes from news reports and opinion pieces, while the recent legalization of hemp in the United States has sparked interest from virtually every sector of society. With CBD products now on sale in a growing number of shops across a growing number of states, attention has also come from social media influencers, fashionistas and lifestyle writers. Even celebrities and athletes are in on the act, with CBD products appearing in the hands of the rich and famous — a sure signal of widespread popularity in the media age.

Garnering Celebrity Support

One of the brands reaping the benefits from this flurry of media attention is Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF), a premier creator and marketer of plant-based health and wellness products. Headquartered in Vancouver, British Columbia, Wildflower has rapidly expanded its footprint out of Canada and into the United States as the country has become increasingly hospitable to CBD products. The company is focused on building brands around plant-based products, appealing to those looking for natural way to relieve pain, relax and be healthy.

CBD is an important part of Wildflower’s stable of brands. Its Wildflower Wellness brand provides capsules, tinctures, vaporizing liquid and other CBD-infused products, all designed to support relaxation, health and wellness. With its unique combination of high-quality, effective natural products, the brand is designed to appeal to those looking to escape the stresses of modern life and has been embraced by consumers through North America.

Little wonder Wildflower products showed up at Kim Kardashian’s recent baby shower. Kardashian and her husband, Kanye West, recently welcomed their fourth child — and second born by surrogate. In preparation for the event, Kardashian threw an extravagant and well-reported baby shower. To help guests relax and prepare to celebrate the “calm before the baby storm,” the Keeping Up with The Kardashians star threw a CBD-themed baby shower, featuring a DIY makeup station and a group session sound bath. The event included such tranquil activities as massages, flower arranging and mixing CBD oils to create personalize shower gifts.

As part of the event, Kardashian encouraged her guests to enjoy a relaxing puff of Wildflower’s vaporized CBD products. A Wildflower vaporizer was featured in pictures from the party, as celebrities made the most of what CBD has to offer.

This isn’t the first time that Wildflower products have found their way into celebrity hands. Wildflower goods were selected for inclusion in the 2019 Four Seasons Hotel Hollywood Swag Bags, given to nominees, presenters and actors staying at the hotel for this year’s Oscars. With CBD becoming not just acceptable but fashionable, Wildflower was a natural fit for a hotel wanting to make a good impression on its celebrity guests.

The cachet of CBD as a prestigious, high-profile consumer product has been further reinforced by the creation of a CBD salon within the shop at Saks Fifth Avenue. Directly connecting CBD with other high-end brands and the concept of luxury shopping firmly stakes out CBD’s place within the luxury goods market. And once again, Wildflower has garnered high-profile visibility among the products on display.

Media Eyes Up CBD

This move into celebrity culture and the high-end shopping market has come alongside growing media attention for CBD brands.

The arrival in Los Angeles of prominent Long Island beauty boutique Botanica Bazaar gave Vogue reason to cover a range of products including CBD tinctures. For this part of the article, the magazine focused on Wildflower’s products. The company’s strongest CBD remedies, its tinctures have been designed to counter one of the big problems with cannabinoid products — the sometimes unpleasant taste. Wildflower has tackled this challenge by adding natural flavorings to create a product that’s recognized for its flavor as well as its relaxing qualities.

The Vogue piece garnered positive coverage for CBD in general, with Botanica Bazaar’s owners talking about how the pain-relieving power of these products had won a growing number of loyal customers. The article also provided even more positive coverage for Wildflower, with the writers noting that “Wildflower’s CBD tinctures and vapes not only kill the aesthetics game, but also taste good.”

Coverage of broader cannabis culture has brought CBD brands to the attention of a receptive audience. When Vice presented an article on the best female-owned brands in the cannabis sector, the magazine included Wildflower in a section on pain-relieving spa products. A pain-relief product designed to tackle muscle, joint and back pain, the CBD+ Healing Stick was recommended in the article as a useful cure for menstrual pain.

Buzzfeed went so far as to publish an article on why readers should be buying CBD Christmas gifts for everyone, including featured recommendations for products their readers might want to pick. These included a lip butter, truffles and CBD-infused sparkling water, showing the wide range of options now available to the CBD consumer.

Wildflower once again stole the limelight. The company’s disposable CBD vaporizer pen proved to be just too good to leave out of the recommendations. All in all, the company has received mention in more than 15 different articles and media pieces, touting Wildflower and singing the praises of their CBD products.

CBD’s Growing Press Presence

It seems like hemp and CBD can’t help but make news. And other companies besides Wildflower are enjoying the media attention.

Aurora Cannabis Inc. (NYSE: ACB) has begun an exclusive, multiyear, multimillion dollar, global partnership with UFC to advance CBD research. The Edmonton-based cannabis producer said it will work with the fight league’s athletes to study the effectiveness of the plant in treating pain management, inflammation, injury, exercise recovery, and mental well-being. “This global partnership places focus squarely on the health and well-being of UFC’s talented and highly trained athletes,” said Aurora CEO Terry Booth. “The Aurora-UFC research partnership creates a global platform to launch targeted educational and awareness campaigns, while creating numerous opportunities to accelerate our global CBD business.”

With its acquisition of Beboe, Green Thumb Industries Inc. (CSE: GTII) (OTCQX: GTBIF) gains geographic exposure to the California and Colorado markets, as well as a high-end luxury brand to fill out its brand portfolio. Beboe was founded by fashion executive Clement Kwan and celebrity tattoo artist Scott Campbell and has been dubbed the “Hermes of marijuana” by The New York Times. Beboe products, which include rose-gold vaporizer pens, edibles, and CBD-infused drinks, have already earned their way into 125 retail locations in California and Colorado, and the company had already signed a deal with luxury department store Barney’s New York to open a luxury store called the High End, which opened on the fifth floor of Barney’s flagship Beverly Hills store in late March.

As the first cannabis company to join FCPC, HEXO Corp. (NYSE American: HEXO) continues on its journey to bring its brand value, cannabinoid isolation technology, licensed infrastructure and regulatory expertise to established companies. “HEXO is thrilled to be the first cannabis company to join the Food & Consumer Products of Canada, an established and industry leading association in the consumer-packaged goods space,” said HEXO co-founder and CEO Sébastien St. Louis. “We look forward to working with FCPC and all their members to forge new relationships and potential partnerships. It is an exciting time to be in the ever-evolving cannabis industry.”

Aphria Inc. (TSX: APHA) (NYSE: APHA) was provisionally awarded the fifth cultivation lot in Germany through its subsidiary, Aphria Deutschland GmbH, or Aphria Germany. The lot was secured following a review by a German court, which affirmed the BfArM’s decision. Aphria Germany has now won the maximum output from the German tender process — a total of five lots — and is the only licensed producer in Germany with permission to grow all three strains of medical cannabis approved by the BfArM.

As CBD’s cultural presence grows, companies with a strong media presence and the attention of celebrities and athletes seem certain to benefit.

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.

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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.

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Hemp Boom Spawns Lucrative Deals

CannabisNewsWire Editorial Coverage: Ever since the Farm Bill was signed into law, farmers across the United States have rushed into hemp cultivation, driving demand for the supplies needed to grow the crop necessary to meet surging CBD use.

  • Global hemp industry to reach $22 billion in 2022.
  • CBD market could increase 40 times in the next four years.
  • Hemp farming skyrockets to meet demand.
  • Serious squeeze on hydroponic and cultivation supply products.

Hemp is booming across the country, and nowhere more so than in Kentucky, where the applications to grow hemp are expected to increase fivefold, and acreage dedicated to growing the crop is set to more than triple this year. At the forefront of this explosive market growth, Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile) recently inked a strategic supply contract with Hempistry Inc., a leading Kentucky-based cultivator of high CBD content hemp. Since passage of the farm bill, other major Canadian producers have also been making deals to expand hemp and CBD operations south of the border. Tilray Inc. (NASDAQ: TLRY) announced the acquisition of a large hemp foods maker, and Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) is making substantial investments in New York state. Aphria (NYSE: APHA) (TSX: APHA) temporarily withdrew from the U.S. market while fighting off a hostile takeover bid. And after a $1.8 billion investment from a U.S. tobacco giant, Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) is expanding globally with eyes to the U.S. markets in the future. Even the largest Canadian licensed producers are betting on hemp CBD, underscoring titanic market growth.

To view an infographic of this editorial, click here.

The Money Pump

In the course of only a few years, CBD extracted from hemp is now marketed for everything from pain relief and reducing inflammation to relieving stress and anxiety. CBD is sold in an array of products from shampoos, lotions and oils to drinks, pet treats and granola. The popularity of CBD isn’t likely to wane any time soon, and the soaring popularity is reflected in market projections.

The CBD boom was presaged by passage of the Farm Bill, an absolute sea change in the balance of power in global hemp markets. Historically, the United States had been an importer of hemp products, but now the U.S. market is expected to lead the global hemp industry reaching an eye-popping $22 billion in 2022. With a market expected to increase 40-fold in the next four years, it’s little wonder there’s such an enormous upsurge in hemp cultivation.

To achieve quality and consistency, much of the hemp cultivated in North America isn’t grown from seed but is cloned or propagated from existing hemp plants. Known as micropropagation, this process allows for a large number of plants to be readied simultaneously, facilitating stable, consistent production and guaranteeing that the plants are exact genetic copies of the most desirable mother plants. It’s exceptionally important in hemp cultivation to produce healthy, high-content CBD plants with all the characteristics required by hemp-product producers.

This process gives cultivators more control over how their plants grow and results in more valuable crops. The rapid vegetative propagation of plants under the controlled conditions of light intensity, temperature and precise nutrient mediums requires unique equipment and supplies. The nationwide surge in hemp production has created shortages and increased demand for these much-needed hydroponic supplies. With the boom in hemp cultivation occurring this planting season, many of the supplies required for successful micropropagation operations are in short supply. This supply squeeze has spawned an unprecedented industry opportunity.

The Right Moves

Identifying the upside early, Sugarmade Inc. (OTCQB: SGMD) has been making all the right moves to capture an outsized share of this burgeoning new market. A specialty product and brand marketing company, Sugarmade invests in and develops products and brands with disruptive potential.

Expanding its footprint in the supply of high-demand hydroponic and cultivation products, the company has been on an acquisition spree and executing new supply contracts to capture an ever-increasing market share. The latest supply contract with hemp cultivator Hempistry reflects Sugarmade’s hydroponic trajectory. Utilizing advanced plant genetics and technological innovation, Hempistry is now scaling operations to approximately 2,600 acres aggregated between its subsidiaries, while adding to the product value chain and enhancing production efficiencies.

To achieve these objectives requires a secure, reliable source of specialty equipment and supplies. Sugarmade recognized the potential windfall last year and locked in an option to invest $1 million in Hempistry. That relationship has blossomed into a supply agreement that should serve both companies extremely well. Hempistry is acquiring supplies for its hemp micropropagation operation from Sugarmade, and expectations are that this supply relationship will flourish as Hempistry expands operations domestically and internationally. The agreement will ensure supplies reach supply-starved Kentucky, which is on the leading-edge of the hemp cultivation boom.

“Industrial hemp is promising and is the fastest area of growth in Kentucky agriculture,” said Ryan Quarles, Kentucky commissioner of agriculture, in an interview with CNBC. “We don’t know if industrial hemp will replace tobacco, but we are going to champion it.”

Sugarmade CEO Jimmy Chan, now also a director at Hempistry, commented, “With at least 42,000 acres of hemp expected to be planted in Kentucky and considering an average plant density per acre of well over 1,000, farmers in Kentucky will need hundreds of millions of clones over the coming years. When these numbers are multiplied over the many other hemp cultivation states, it is easy for anyone to see the strong demand scenario that is quickly developing. We have already received our first shipments of micropropagation supplies, and we are in process of making deliveries. Sugarmade plans to significantly expand our operations relative to hemp cultivation.”

E Pluribus Unum

Out of many, one. The Latin phrase emblazoned on U.S. currency should be the slogan for what’s happening in the fractured and fragmented specialty hydroponic supply industry. With demand reaching epic proportions, the clutch of small and inefficient supply companies is ill prepared to service the requirements of the blooming hemp industry.

Cognizant of the shortfall, Sugarmade is on a mission to consolidate the fragmented industry by strategically acquiring other synergistic hemp-based operations. Sugarmade’s brands already include: Zenhydro.com, a comprehensive online hydroponics supply outlet; AthenaUnited.com, a specialist company providing hydroponic supplies to large commercial cultivators; CarryOutSupplies.com, a leader in paper and plastic supplies; and BudLife Cannabis Storage Solutions, which offers the world’s only patented intelligent packaging, storage and distribution for medicinal plants.

Continuing its consolidation strategy, Sugarmade recently announced that it will acquire the flagship operation of Washington State-based Hydro4Less, which is expected to produce about $5 million in revenues and be profitable this year. In the agreement, Sugarmade also gained an option to purchase two additional Hydro4Less retail operations, currently producing in excess of $20 million annually.

“Sugarmade is expecting to realize exceptional revenue growth this year from all of our hydroponic-related market sectors,” said Chan. “We are excited about having the very talented staff of Hydro4Less join the Sugarmade family of companies. We continue to seek additional acquisitions to further boost our already expected robust revenue growth rate.”

Expanding on a 2017 master marketing agreement with Bizright LLC where Sugarmade would sell its products, Sugarmade also announced that it will acquire Bzrth Inc., a sister company of Bizright. These accretive acquisitions will make Sugarmade one of the largest publicly traded hydroponic supply companies in the world.

“Sugarmade plans to integrate these businesses fully as soon as is possible, making us one of the larger suppliers to this growing marketplace,” stated Chan. “Additionally, we are in process of vetting other possible acquisitions to further enhance our portfolio of hydroponic and cultivation supply products. We are certainly excited about our prospects for the remaining part of this year and into next yea” stated Chan.

Northern Neighbors Look to Capitalize

In its most expensive acquisition to date, Canadian based Tilray Inc. (NASDAQ: TLRY) announced that it has agreed to purchase Manitoba Harvest for $317 million in cash and stock to bolster its thrust into the U.S. CBD product market. Manitoba Harvest claims to be the world’s largest hemp food maker. With operations around the globe, Tilray now expects to launch CBD-derived products in the United States as early as this summer.

Less than a month after the signing of the 2018 Farm Bill, Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) announced plans to invest up to $150 million to establish its first U.S. production facility in New York state. The company plans to establish large-scale production capabilities focused on hemp extraction and product manufacturing. Canopy called its expansion into the United States “another example of the strategic advantage” last year’s $4 billion investment Constellation Brands provides the company.

Aphria (NYSE: APHA) (TSX: APHA) temporarily withdrew from the U.S. market while fighting off a $2 billion hostile takeover bid from U.S.-based Green Growth Brands. Aphria rejected the bid saying it was being undervalued. Located in the greenhouse capital of Canada, Aphria Inc. is one of world’s lowest cost producers.

With international production and distribution, Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) is committed to building disruptive intellectual property by advancing research, technology and product development. The Cronos Group is building a global network with partnerships, joint ventures, production and distribution spreading across five continents. Cronos Group is intent on building an iconic brand portfolio around the globe.

Evaluating what has transpired and the projections of what is to come, the hemp markets and affiliated products and services appear to be sectors that could offer incredible returns. With multiple contracts in place, several acquisitions completed with more pending and planned, plus immense opportunity ahead, Sugarmade is hotly pursuing its mission to be a dominant player in the hydroponic supply industry piece of that pie.

For more information on Sugarmade, visit Sugarmade, Inc. (OTCQB: SGMD)

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)
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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.

Mainstream Acceptance, Strong Growth Adds to Growing CBD Market

CannabisNewsWire Editorial Coverage: The CBD market is experiencing explosive growth as a result of growing mainstream acceptance and strong leadership.

  • The North American CBD market, worth more than $9 billion in 2017, is projected to be worth $47 billion by 2027.
  • Growth is possible partly through mainstream acceptance, with pressure on a variety of institutions to accept medical CBD.
  • Leaders are emerging within the CBD and cannabis markets, as leading voices gain recognition for their work.

Wildflower Brands Inc. (OTCQB: WLDFF) (CSE: SUN) (WLDFF Profile), which focuses on health and wellness products, is benefiting from this growth through the establishment of strong distribution deals. Several companies are responding to the growth by expanding operations. Canadian-based Tilray Inc. (NASDAQ: TLRY) is adding production capacity in both Canada and Europe. Aphria (NYSE: APHA) (TSX: APHA) is increasing its indoor grow operations. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) is focusing its development efforts on projects in the United States. And Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) is using a significant outside investment to make strategic growth plans.

To view an infographic of this editorial, click here.

Growing Goodness

The CBD market has seen tremendous growth in the past few years, seemingly coming out of nowhere to become a billion-dollar industry. This eye-popping growth has been fueled in large part by CBD’s potential for health and well-being, an area that many researchers are focusing on. Companies have leapt upon the opportunity to offer consumers the benefits associated with cannabis without some of the other issues regularly linked with the drug, including getting users high.

If the past few years have been fruitful, the future looks even brighter for CBD. Soaring sales, growing acceptance within mainstream sports, and the recognized influence of some of the major players within the broader cannabis industry all point to positive movement forward for CBD. And as companies overcome the challenges offered by distributing a previously obscure product to a broad market, the industry looks set to soar.

A Rising Global Market

The growth of the CBD market has so far come mostly out of North America, where the likes of health and wellness company Wildflower Brands Inc. (OTCQB: WLDFF) (CSE: SUN) have launched a variety of compelling CBD products. This geographical growth is rooted mostly in legal status, as CBD is extracted either from cannabis or from its nonhigh-inducing form hemp. Though legalization of cannabis remains variable in the United States, hemp is now legal at a national level in both the United States and Canada, with cannabis growth widely permitted.

As a result, the North American cannabis — including CBD — market, has grown in spectacular fashion. The market was worth $9.2 billion in 2017, and estimates project those numbers to reach $47.3 billion by 2027. Savvy companies, such as Wildflower Brands, are paying attention and taking action.

The European CBD market has seen less expansive growth. Within the EU, the range of processed products that can be made incorporating cannabis is more limited, and there’s been less of a concerted push towards legalization for both CBD and cannabis products. Consequently, market growth there has been less impressive.

But that may be about to change, according to analysis from market intelligence firm the Brightfield Group. The company recently predicted 400% growth in the European CBD market from 2018 to 2023, a massive rise in a short five-year span. It looks as if the CBD boom may be set to go global.

Sports and CBD

Cannabis prohibition isn’t the only thing shaping the CBD market. Society’s acceptance of cannabis and CBD cannot be overlooked as a contributing factor. The rules of entities not typically associated with cannabis have sometimes created obstacles to growth in the cannabis sector. But as the legal market develops, those institutions are shifting their attitudes as well.

The sports industry is an ideal illustration of this. During the war on drugs, many teams, leagues and professional organizations took a firm public stance against cannabis, laying down rules that prevented their players from indulging. The NFL, for example, has strict rules against cannabis consumption. Currently, however, former players are campaigning for a change to those rules, not just to allow players access to the same experiences as other people but to tackle issues specifically related to sports.

Recently, cannabis and CBD-infused products, including those such as Wildflower’s topical treatments, have provided a growing number of pain-treatment choices. Given the injuries so frequently seen in professional sports, pain management is crucial. Sports doctors, trainers, coaches and players are always on the lookout for the most effective treatment options. Currently the ban on cannabis and CBD restricts players from choosing such seemingly effective options, fueling the call for change.

Changes could also have a significant impact on the sponsorship side. Currently, only one professional sports team in the United States has a cannabis-related sponsorship, despite the growing wealth and influence of the industry. As barriers come down, the time may come for CBD, much like other recreational and medical products, to gain attention in the sport and beyond through sponsorship and supporter arrangements.

The Challenge of Delivery

This expansion doesn’t come without some challenges. As the market grows and evolves, CBD companies must find ways to distribute products to a sector that didn’t exist a decade ago. The infrastructure most other industries take for granted is being built from scratch.

Fortunately, the companies moving into this space are nimble and flexible, moving quickly to find solutions as they expand and grow. These solutions often include forming partnerships with other players within the cannabis sector to increase their combined reach. Wildflower has recently done this through a delivery fulfillment agreement with HelloMD, a leading digital healthcare platform for cannabis doctors, consumers and brands. The deal will allow Wildflower to potentially reach more customers through HelloMD’s expansive e-commerce platform.

Such moves should increase opportunities for CBD businesses to accelerate their expansion and reach a broader customer base, reversing years of prohibition. These partnerships may not only boost individual businesses but also add to the rising tide of CBD.

Cannabis Leaders Emerge

Celebrated leaders are starting to emerge at the head of the cannabis industry. Some have come from outside, their fame drawing attention to the industry. Others have come from within.

A recent list of the top 100 figures in the industry includes actor Jim Belushi, former Mexican president Vicente Fox and retired boxer Mike Tyson. The list also includes cannabis executives such as Terry Booth of Aurora and Elizabeth Hogan of GCH.

Wildflower Brands CEO William MacLean was included in the list, thanks to his hands-on approach to sales and marketing. His extensive travels to hospitals in North America have also given him insight into patient experience and the benefits that cannabis and CBD can offer. Combined with years of marketing experience, this impressive background puts MacLean in a strong position to market his brand and build teams of skilled experts for ongoing growth.

Cannabis Companies Reach New Highs

As the cannabis sector expands, many companies are going through periods of growth and rising revenues. Over the past few years, this rocketing trajectory has allowed the cannabis sector to diversify in interesting ways.

Based in Canada, Tilray Inc. (NASDAQ: TLRY) is looking to expand through acquisitions. The company recently acquired the largest hemp foods company in the world — Manitoba Harvest — to strengthen its foothold in the exploding hemp market. The company is also making other strategic growth and development moves, including moving into Europe.

Aphria (NYSE: APHA) (TSX: APHA) recently received a license amendment to expand its growing space. Headquartered in Leamington, Ontario, Aphria is working to set the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible. Aphria is committed to bringing breakthrough innovation to the global cannabis market and has a presence in more than 10 countries across 5 continents.

One of the large Canadian cannabis companies, Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) is looking to expand in the United States following the passing of the 2018 farm bill. Canopy is building a hemp-production facility in New York state and acquired hemp enterprise AgriNextUSA, moves that position the company to make the most of America’s swing towards hemp and become a leading player as the market heats up across North America. Canopy Growth boasts an extensive range of licenses and distribution deals north of the border, giving it a strong base from which to build its U.S. business.

The Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) recently closed a deal with outside company Altria, providing that company with a way into the hemp space. The C$2.4 billion strategic growth investment will provide Cronos with essential resources to expand during its critical phase of market growth in the United States.

With scientific and business innovation being led by a raft of far-sighted and innovative pioneers, the cannabis and CBD industries look set for another decade of incredible growth.

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

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