Tag: APHA

Cannabis Boom Fuels Mergers and Acquisitions in Hydroponics and Beyond

CannabisNewsWire Editorial Coverage: The rapid growth of the cannabis sector is pushing companies to innovate expansion strategies.

  • Among the companies affected are hydroponics suppliers, which sell vital equipment to cultivators.
  • Hydroponics companies, like others in cannabis, are using mergers and acquisitions to benefit from a bullish market.
  • A recent trade show in Las Vegas saw companies on the hunt for future acquisitions.
  • Other companies are seeking outside investment or partnerships to increase their presence.

Hydroponics supplier Sugarmade, Inc. (OTCQB: SGMD) (SGMD Profile) has leaned into the current trend for mergers, with a big acquisition and open plans for future growth. Tilray, Inc. (NASDAQ: TLRY) is focusing on research and design, using public offerings to finance this work. Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has gained $4 billion in investment from a beverage company, an investment some believe will lead to a takeover. Both Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) and Aphria (NYSE: APHA) (TSX: APHA) are relying on diverse strategies, including external partnerships, as they look to grow and succeed in the cannabis sector.

To view an infographic of this editorial, click here.

The Industry Behind the Industry

The cannabis industry is experiencing a period of staggering growth, with commentators predicting that it will reach a global value of over $146 billion by the end of 2025. With so much of the industry based on indoor cultivation, hydroponics companies that provide the equipment and nutrients needed to cultivate cannabis have also seen significant growth. As cannabis cultivation increases, so does demand for hydroponics products, so that the fates of the two industries are increasingly tied together.

Given their close relationship, it’s not surprising to see patterns in the broader cannabis sector reflected in the hydroponics industry. A recent surge of mergers and acquisitions among cannabis companies includes a number of moves involving hydroponics companies as players within the industry seek growth while outsiders look for a way in. With a big cannabis trade show coming up in Las Vegas, executives from hydroponics companies will be eyeing up the competition and contemplating who they might buy next.

Mergers, Acquisitions and Hydroponics

Hydroponics companies such as Sugarmade, Inc. (OTCQB: SGMD) are essential to the cannabis industry.

While cannabis can be grown outdoors, almost everything about the current industry drives producers away from this method. Indoor facilities are more secure, an important factor when producing a high-value, high-demand crop prized by criminals. Indoor cultivation also provides far greater control over the conditions in which the cannabis grows, as well as over the quality of the plants grown. Lighting, water, nutrients and temperature all affect the final outcome of the plants, including the quantity of active ingredients in them. High-quality hydroponic equipment, like that supplied by Sugarmade, gives growers control over the forces affecting their cannabis crop.

This control is becoming increasingly important as the cannabis market grows. Customers may be more forgiving of varying quality when companies are small or their product is hard to obtain. But as companies grow and supplies become more consistent, people expect consistency and quality — things that are harder to provide without hydroponics.

The growing number of companies in the sector also means that competition for customers is growing. Companies are racing to create crops with higher dosages of tetrahydrocannabinol (THC) and cannabidiol (CBD), the most significant active ingredients in cannabis. The more powerful the plant, the more customers will return, creating a strong brand loyalty. Again, hydroponics can be an essential piece of this success.

Demand for hydroponics has led to swift growth for Sugarmade, which expects 500 percent growth in revenue for the fiscal year ending in 2019. One of the ways in which Sugarmade is meeting growing demand and achieving these impressive results is through acquisitions.

Mergers and acquisitions are an obvious route to growth for companies in a maturing sector, and in the past year, that’s what many cannabis companies have chosen to do. The first half of 2018 saw 145 mergers and acquisitions in the sector, compared with 79 for the same period the previous year. Some of the pioneers who created cannabis startups in the early days of the industry are cashing out, making way for a field of larger, established companies.

Now caught up in the wider patterns of the cannabis market, hydroponics is heading down the same path. With its latest acquisition of Sky Unlimited LLC, Sugarmade has been one of the leaders in this trend. The cash and shares deal, worth $40 million, will give Sugarmade control of AthenaUnited.com, an online outlet providing a range of hydroponic equipment.

“This acquisition will further boost our already very rapid growth rate and is expected to be high accretive to common shareholder value,” said Sugarmade CEO Jimmy Chan. “Sky Unlimited and Athena are complementary to our existing business operations, allowing us to not only increase our emphasis on brands but also to diversify our revenue streams to now include the larger commercial cultivation operations.”

Cannabis Goes to Vegas

Sugarmade was on the hunt for more acquisitions as its team headed to Las Vegas for MJBizCon.

One of the cannabis industry’s largest trade shows, MJBizCon took place November 14–16 at the Las Vegas Convention Center. Investors, entrepreneurs and professionals from across the sector headed to Vegas for three days of talks, meetings and the sort of networking that dominates any trade show.

This year’s show had a record number of attendees and exhibitors, reflecting the huge growth that the industry has seen. Some 25,000 attendees met up and discussed topics such as the latest industry trends and how to navigate the difficult waters of regulatory compliance.

One  prominent item on the agenda was the move by bigger players into the cannabis market. Beverage and tobacco companies are eyeing cannabis as an alternative revenue stream, with some striking early partnerships with cannabis businesses. To survive in the face of these big money competitors, businesses will have to grow — one of the motivations behind Sugarmade’s acquisition strategy. There’s still space for small fish in the cannabis pond right now, but that space is shrinking.

MJBizCon provides fertile territory to lay the groundwork for acquisitions. There, companies can make contacts, seek investments and demonstrate their value. It’s a perfect venue to attract acquisition targets and start negotiations.

So it was a full-press court for Sugarmade at the event, as the company set out to continue its successful growth strategy. Though this year’s moves have already given it a competitive edge, Sugarmade is always looking to strengthen its foothold and further establish its position as an industry presence.

“Over the past year, we have significantly enhanced our operational staff and our internal systems preparing for our rapid growth,” Chan said in a recent statement. “With these changes, we believe we are optimally sized, but we want to ensure we are able to manage our aggressively planned growth rate.”

Big Moves for Big Profits

Other companies are also making bold moves to profit from the growth of the cannabis sector.

While expansion is critical to surviving in this fast-changing environment, mergers and acquisitions aren’t the only answer. Tilray, Inc. (NASDAQ: TLRY) is instead focusing on its well-developed research and design program to place it ahead of competitors. A leading medical marijuana company, Tilray has established a prominent position in the North American healthcare market. But it’s also looking beyond the United States and Canada as the cannabis industry goes increasingly global. With customers on five continents, Tilray has become an international cannabis business, and one still set on expansion. The company is using its public offerings in the United States and Canada to gain additional finance that will fund ongoing growth.

Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), one of the biggest cannabis companies in Canada, is financing its expansion through a connection outside the industry. The company struck a deal with Constellation Brands, the major U.S. beverage company behind brands such as Corona. The deal has seen Constellation acquire more than a third of the shares in Canopy Growth in return for $4 billion in investment. It’s the biggest move so far by outside businesses into the cannabis sector and likely an omen of things to come. Many are predicting that this will lead to Canopy Growth’s eventual absorption under the Constellation umbrella, once cannabis becomes a big enough market to deserve more of the beverage giant’s attention.

Growth in the industry has been good for Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON), whose revenues were up 186 percent in its third-quarter reporting this year. Increased cultivation, a partnership with Ginkgo Bioworks on cultured cannabinoids and a move into Latin America are all part of the company’s announced plans to continue its expansion. By following a diverse range of growth tactics, Cronos is solidifying its position as a significant international player.

Collaboration with other companies is also part of the strategy for Aphria (NYSE: APHA) (TSX: APHA). The company has formed a joint venture with Perennial, Inc., to develop products for the Canadian cannabis market, currently one of the most significant cannabis markets in the world. Such collaborations are allowing companies to achieve more together than they could alone and perhaps survive in the face of larger competitors.

With the cannabis industry growing at a dramatic rate, both cultivators and the companies that supply them will have to find ways to increase their impact if they want to beat the competition.

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.

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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.

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.

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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.

Hydroponics Increasingly Key as Booming Cannabis Sector Goes to Next Level

CannabisNewsWire Editorial Coverage: With Canada’s decision to decriminalize cannabis nationwide and the 2018 U.S. Farm Bill’s provision to potentially make industrial hemp and hemp-derived cannabidiol (CBD) legal nationwide, the cannabis CBD product sector is gaining a strong foundation.

  • Analysts expect runaway growth in the cannabis and CBD markets.
  • Industry is scaling up amid regulatory reform.
  • Underlying growth metrics are bullish for hydroponics suppliers and cultivators alike.
  • Branding and marketing are increasingly important and tied to quality control.

Numerous interests stand to benefit as the cannabis sector begins to hit its stride, ranging from cannabinoid biopharma developers to cultivators with rapidly expanding acreage footprints. Pick-and-shovel plays such as hydroponics supplier Sugarmade, Inc. (OTCQB: SGMD) (SGMD Profile) could be some of the biggest winners, quietly supplying tons of hardware to a variety of end users without having to jump through the all the legal hoops. Tilray, Inc. (NASDAQ: TLRY), one of the first companies licensed to produce medical cannabis as dried flower in Canada, has quickly become known for its full-spectrum cold-extracted cannabinoids with clearly indicated tetrahydrocannabinol (THC) and CBD potencies. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has parlayed its leadership in cannabis and hemp with dried, oil and softgel capsule products into a landmark $4 billion investment from beer, wine and spirits major Constellation Brands, Inc. Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON), which operates two wholly owned Canada-licensed producers, is making its presence felt across five continents. And Aphria Inc. (NYSE: APHA) (TSX: APHA) is also making serious waves as a globally minded cannabis producer, having just recently been approved for uplisting to the New York Stock Exchange.

To view an infographic of this editorial, click here.

Historic Market Forces Create a Perfect Storm

After more than eight decades of prohibition, cannabis has gone from a black market to a tax revenue-generating multibillion-dollar industry in a handful of years. It is an industry nipping at the market share heels of sectors like alcoholic beverages, food and drink, supplements and now even biopharmaceuticals. The market for just one of over 100 different cannabinoids, the non-psychoactive CBD, was recently projected to break $22 billion by 2022. CBD alone could have “profound impacts” across the consumer packaged goods (CPG) and pharma industries according to Brightfield Group, potentially outpacing the broader cannabis market combined. It would be a major boon to the U.S. market if industrial hemp and CBD become legal under the latest Farm Bill.

Recent analysis in a report from Amadee & Company cites baseline market metrics such as over 37 million people in the United States using cannabis (both legally and illicitly) as contributing to a North American market worth over $41 billion this year, which is on track to hit $95 billion by 2026. The more conservative figures from Arcview Market Research and its research partner BDS Analytics are the $9.2 billion in sales seen in 2017, and a projection of $47.3 billion within 10 years. Either way, investors are looking at some low-hanging CAGR fruit, and the sector as a whole has scaled up enough that it is now seemingly much easier to pick winners that can thrive, regardless of potential governmental policy drift.

Many End Markets – One Stop Shop for Hydro Hardware

Sugarmade, Inc. (OTCQB: SGMD), headquartered in northeastern Los Angeles County on the edge of the Angeles National Forest, has already established a formidable presence in the hydroponics supply market with brands such as ZenHydro.com, CarryOutSupplies.com and BudLife. The company also recently launched a massive new $1 million initiative to cement a foundational position in the emerging U.S. industrial hemp and CBD market through an investment in privately held Hempistry, Inc., a Kentucky-based farmer (23,000 acres) of an ultra-rich CBD strain of hemp.

Hydroponics has rapidly emerged as the dominant strain in the cannabis cultivation industry when it comes to medical cannabis, or products that want to emphasize stringent environmental cultivation controls and overall consistency. The KD Market Insights report projects a six-year CAGR of 20.7 percent, as a $5.22 billion 2017 hydroponics market grows to $13.84 billion in 2023. According to another report, cannabis cultivation will be a major driver of sector growth, with just the U.S. hydroponics market set to clock in at 20.3 percent CAGR from 2018 to 2025, hitting around $3.7 billion.

These are significant advantages for SGMD as the company pursues its binding definitive agreement to acquire Nevada-based Sky Unlimited, LLC, which has developed a solid reputation throughout the full spectrum of cultivation markets. Its robust AthenaUnited.com website lists everything from advanced lighting systems such as Hortilux lamps and ballasts to complete hydroponics kits such as the AeroFlo 60 aeroponic system from General Hydroponics, which super-oxygenates the nutrient solution. The AeroFlo line is a great example of a brand that growers, academics and researchers alike have praised for delivering consistently hearty growth rates and yields. Consumers from various cultivation industries have come to trust that they can find the best environmental control systems and cutting-edge nutrients, as well as plant care and more general gardening supplies on the site.

Ready to Launch

Sugarmade will retain all employees and completely assume all operations and liabilities via the acquisition. The company anticipates that the Sky Unlimited deal will be highly accretive for shareholders and has further increased the previous 500 percent annual revenue growth projection made back in July, of $30 million during 2019, to a whopping $70 million. This handsome increase owes a lot to how easily integrated the parallel business lines of Sky Unlimited and Athena are to SGMD’s existing model, as well as the extent to which the deal will allow Sugarmade to not only access the larger commercial cultivation market more directly but also enhance its emphasis on brands in a market where brand loyalty still means a great deal.

Scheduled for January 2019, the deal is subject to an extensive audit of the Sky Unlimited operations, but confidence is high that this latest acquisitive foray by Sugarmade will spell share price appreciation gold for the company’s shareholders. In fact, things are apparently looking so good overall for the company that management has begun positioning for a potential NASDAQ uplisting, tapping the requisite legal team to expedite the process.

Symbiosis amid Competition

The broader market is set up nicely for SGMD to take advantage of, but the reality is more symbiotic than predatory.

Tilray, Inc. (NASDAQ: TLRY) was the first company to legally export medical cannabis from North America to Europe, Australia and New Zealand. One of the top names in both cultivation and research, Tilray is on deck to report Q3 financials this Nov. 13 after a strong quarter in which the company successfully closed a $450 million private placement funding run with qualified institutional buyers. The company is one of the pioneers in clear labeling of THC and CBD concentrations and has a public-facing dedication to compliant and effective products that lead the industry by example.

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) prides itself on the highest quality cannabis, whether it is ultimately distributed as dried flower, oils and concentrates, or precisely formulated softgels. The company has a strong hand in industrial hemp for producing CBD, and now that alcoholic drinks giant Constellation Brands (which has over 100 brands to its name) recently closed its $4 billion investment in the company, Canopy is poised to strike hard and fast across the more than 30 countries worldwide that are in the process of advancing some form of permissible cannabis regulation for adult use or medicinal purposes.

Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) is increasingly a global player, with operations in Canada, Colombia, Germany, Poland, Israel and Australia. The company launched its second recreational cannabis brand this year and has two wholly owned Canada-licensed producers to its name, as well as a 21.5 percent stake in British Columbia-based Whistler Medical Marijuana Company, which is licensed to produce and sell medical marijuana and cannabis oil.

When Aphria Inc. (NYSE: APHA) (TSX: APHA) uplisted from the OTCQB to the NYSE, it was not just big news for the company but for the cannabis industry and smallcap markets as a whole. Aphria has seen an impressive rise from a relatively small player to a true global leader in cannabis. The company’s rigorous study of the end-user market and ingenious development of a variety of brands to suit every buyer segment has delivered bottom-line results across the company’s entire line of capsules, oral solutions, oil syringes and single-unit vaporizer cartridges.

Once-in-a-lifetime Early-adopter Opportunity

As attitudes and regulations open up the global market for the end products being developed in the cannabis market, from commercial drinks containing CBD to lab-grown cannabinoid biopharma indications, some of these smaller companies are starting to look to many analysts like potential all-stars. Differentiating factors such as brand presence, product execution and market access/penetration are important analytical vectors. However, key capabilities such as being a picks-and-shovels supplier are of particular note, whether one is talking about hydroponics hardware for production or producing the raw cannabis that other companies rely on.

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.

Industrial Hemp Floodgates Open as CBD Demand Grows

CannabisNewsWire Editorial Coverage: The growing popularity of cannabidiol (CBD), a powerful but nonpsychoactive cannabinoid found in plants of the cannabis family such as industrial hemp, has a lot to do with consumer experience roundly validating the increasingly body of scientific evidence for CBD’s therapeutic value.

  • CBD demand is increasing rapidly as consumers run ahead of the studies.
  • Branding is key to capturing market share while formulation quality drives consumer loyalty.
  • The global potential for the CBD market is immense and largely untapped.

Marijuana Company of America Inc. (OTC: MCOA) (MCOA Profile) has taken several key steps to set itself up as a power player in the burgeoning CBD space, acting as a cultivation site landlord while also developing revolutionary products containing proprietary CBD compounds via its wholly owned subsidiary, hempSMART. CV Sciences Inc. (OTCQB: CVSI) just introduced PlusCBD Oil™ Gummies at the Natural Product Expo East 2018. Los Angeles-based MedMen (CSE: MMEN) (OTCQX: MMNFF) just signed a $33 million deal to acquire Kannaboost Technology Inc. and CSI Solutions LLC, collectively known as Level Up, an Arizona-based vertically integrated marijuana firm. OrganiGram (TSX.V: OGI) (OTCQX: OGRMF) has just has signed a supply agreement with BC Liquor Distribution Branch, the sole, wholesale distributor of nonmedical cannabis for British Canada. And symbolic of its presence in the cannabis market, Aphria (NYSE: APHA) (TSX: APH) debuted on the New York Stock Exchange last week.

To view an infographic of this editorial, click here.

CBD Already Hot and Getting Hotter

No doubt about it, the CBD market is hot right now. With analyst projections ranging from $2.1 billion to $3 billion within the next three to four years, historic change in the form of a 2018 U.S. Farm Bill that could make CBD and industrial hemp legal nationwide might send the market into hyperdrive.

Diverse Approach Focused on Legal Market

Marijuana Company of America Inc. (OTC: MCOA) has constructed a business model around the immense potential of the industrial hemp-based CBD market and just recently applied for an uplisting to the OTCQB in conjunction with an S-1 filing and anticipated access to a $10 million line of equity financing. The company also tapped former Price Waterhouse and Deloitte & Touche man Jesus Quintero for its CFO job, where his extensive public company reporting and SEC/SOX compliance experience should help expedite matters handily.

The success of the company’s hempSMART line comes from its innovative products, such as HempSMART Brain, a unique formulation of Ayurvedic herbs and botanical compounds with premium CBD designed to enhance brain function. The company’s success also stems from its affiliate marketing program, which allows people to earn income via commissions and bonuses, assisted by a sophisticated networking architecture that was engineered to maximize customer loyalty and market penetration.

Global Potential, Next Level Moves

MCOA has even tapped 35-year direct sales industry veteran Ian Harvey to spearhead hempSMART’s upcoming international product launch starting in Europe at the outset of 2019. As the company’s global sales director, Harvey will seek to deliver the same kind of success with the hempSMART network marketing program as was demonstrated throughout his career in the direct sales industry.

Recently the first of many regional events to be held across the country took place, and the hempSMART South West Regional Event showcases how quickly MCOA has built up its CBD product brand and leveraged its advanced affiliate marketing platform to harness the might of the $189.6 billion direct sales industry. While the company is busy breaking new ground at the forefront of direct sales and CBD, MCOA continues to advance its property interests as well and is focused on leasing turnkey facilities to sector operators in appropriate states and jurisdictions. The latest news from the company’s CBD hemp farming joint venture in New Brunswick, Canada, with Global Hemp Group Inc. demonstrated the ingenuity of MCOA’s farming group. An OXBO bean harvester was used at the New Brunswick project to maximize target yields of the parts of the plant with the highest CBD concentrations, despite unusually difficult crop conditions created by this year’s drought.

Just the Beginning of the Property Leasing Ladder

At the partnership’s Covered Bridge Acres joint venture in Scio, Oregon, work is proceeding apace of expectations. The facility will comprise when completed, some 19,000 square feet of greenhouses for year-round production, paired up with traditional outdoor orchard-style cultivation on the remaining square footage of the 109-acre site. MCOA plans to continue to expand its property footprint in both the United States and Canada as the overall cannabis industry heats up. The company may hold an ace up its sleeve in the form of a close working relationship with British Columbia-based Global Hemp Group. Both companies share a common vision about the disruptive potential of industrial hemp, particularly as evinced by the growing popularity of CBD.

And while many in the mainstream media may still be skeptical about what consumers seem to be discovering firsthand about CBD’s health benefits, a growing body of scientific data appears to back up popular sentiment. Research regarding the ability of cannabinoids such as CBD to regulate homeostasis by impacting the body’s endocannabinoid receptors found throughout nearly every tissue system suggests that consumers are not just experiencing some kind of placebo effect.

Two-Pronged Solution to Soaring Demand

MCOA has put together a noteworthy approach to the overall space, emphasizing immediate access to legal areas of the market. On one hand, Marijuana Company of America has a dynamic affiliate marketing program to promote and sell its legal hemp-based consumer products. In addition, the company has put together a growing property-based presence that looks to increasingly benefit its hempSMART brand’s performance metrics. CBD continues to be costly to produce, and the demand for cultivation sites will likely continue to increase proportionally.

A preeminent supplier and manufacturer of hemp-derived phytocannabinoids, CV Sciences Inc. (OTCQB: CVSI) added to its leading brand, PlusCBD Oil™, with the release of its gummy product. CV Sciences operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD, and a consumer product division focused on manufacturing, marketing and selling plant-based CBD products.

By acquiring control of Level Up, MedMen (CSE: MMEN) (OTCQX: MMNFF) gains access to two vertically integrated operations in Arizona, which include retail locations in Scottsdale and Tempe, as well as 25,000 square feet of cultivation and production capacity in Tempe and Phoenix, and a stake in the top-selling K.I.N.D. Concentrates (“K.I.N.D.”) brand, which is currently distributed in more than 90 percent of Arizona dispensaries. The acquisition strengthens MedMen’s presence in one of the top cannabis markets in the United States.

A leading licensed producer of cannabis for the medical and adult-use recreational markets, OrganiGram (TSX.V: OGI) (OTCQX: OGRMF) has now secured cannabis distribution agreements in eight of ten provinces in Canada. Organigram also recently signed an agreement with to acquire 8,333 common shares of Alpha-Cannabis Germany, representing a 25% stake in ACG’s capital. ACG has been preparing the development and production of further cannabis-based products for the swiftly growing German and European markets.

In addition to uplisting on the NYSE, Aphria (NYSE: APHA) (TSX: APH) recently closed acquisitions of assets in Latin America and the Caribbean from Scythian Bioscences. As a result of the transaction, Aphria has solidified an important foothold in Latin America and the Caribbean by acquiring industry-leading cannabis-related companies in Colombia, Argentina and Jamaica as well as a right of first offer and refusal to a majority interest in a Brazilian entity seeking a cannabis cultivation and sales license.

CBD is quickly establishing itself as the darling of the booming cannabis industry. Investors will want to keep a close eye on companies such as MCOA that are able to operate within the sizeable, already-legal portions of the overall cannabis market and that have a specific emphasis on products containing CBD derived from industrial hemp. However, the entire cannabinoid market is worth examining in greater detail, while those companies with unique advantages deserve special attention, as they could be tomorrow’s brightest stars and richest buyouts.

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

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