Tag: GRWG

Cannabis Cultivators Profit from Growing Legal Market

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

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

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

To view an infographic of this editorial, click here.

Cannabis Cultivation Provides Prime Opportunity

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

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

Potential of the Cannabis Cultivation Market

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

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

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

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

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

Legal Changes for Cannabis

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

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

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

More Cultivation

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

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

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

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

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

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

The Rise of the Cannabis Companies

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

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

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

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

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

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

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

About CannabisNewsWire

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

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

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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.

Cannabis Cultivation Powering Growth for the Industry

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

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

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

To view an infographic of this editorial, click here.

Cannabis Cultivation

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

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

Cultivators make the cannabis industry possible.

The Growth of Cultivation

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

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

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

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

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

Building on the Foundations of Cultivation

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

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

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

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

Cultivation in California

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

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

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

Colleagues and Competitors in Cultivation

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

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

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

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

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

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

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

About CannabisNewsWire

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

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

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

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

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

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

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

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

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

Investors Flock to Cannabis Market as Business Booms

CannabisNewsWire Editorial Coverage: As the cannabis industry sees its profits and legitimacy rise, the market potential is drawing increased attention from big investors.

  • The U.S. and global cannabis sector is seeing great growth, lifted by the success of medical and recreational cannabis and legalization in Canada.
  • This is drawing in previously reluctant investors as companies become listed on stock exchanges.
  • Greater integration within the sector is both a symptom of and a support for this cannabis boom.

Cannabis Strategic Ventures (OTC: NUGS) (NUGS Profile) shows this integrated approach, bringing together cultivation, product sales and personnel services for the cannabis industry. Tilray, Inc. (NASDAQ: TLRY) is working across borders on international research to create better cannabis-based medicines. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has benefited hugely from the surge in investor attention, receiving billions in investment from the beverage sector. CBD products are allowing parts of the cannabis sector to achieve widespread acceptance, thanks to the work of companies like Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) (CSE: CWEB). All of this means a rise in sales for suppliers of hydroponic equipment such as GrowGeneration Corp. (OTCQX: GRWG).

Cannabis’s Money Problems

The legal cannabis industry is one of the newest in the world and one weighed down with a great deal of baggage. Decades in the legal wilderness have tainted the public image of the drug, leaving many potential customers and investors with a negative knee-jerk reaction to the sector and its products. Even now, as legal cannabis becomes more common on a state-by-state basis, the U.S. industry is held back by lingering federal laws enacted as a result of the war on drugs.

This has created challenges for cannabis companies in search of finance. Both the legal restrictions in the United States and historical prejudice against the industry have made it hard to find mainstream investors. But with the market expanding and profits rising significantly year on year, that looks set to change.

The Signs of Change

In the United States, the cannabis industry is taking off in a big way. California is the largest of the nine state-sized markets for recreational cannabis, so it makes sense that the state has become home to many of the companies working in the sector, such as Cannabis Strategic Ventures (OTC: NUGS). But the seeds for the rise of these companies lie elsewhere.

The first signs of the huge potential for a legal cannabis market came in 1996, when California passed Proposition 215, the first law making medical cannabis legal in a U.S. state. The medical market quickly took off, with legal companies moving into a business previously owned entirely by criminals, while other states considered such legislation of their own. Just over 20 years later, 31 states have legal medical cannabis markets, and a whole host of companies have sprung up to cater to them. Knowledge of cannabis’s benefits has also grown swiftly, thanks to these companies’ research efforts.

But the biggest bellwether for growth in the recreational market has come from north of the border. This October, Canada became the first G8 country to legalize recreational cannabis on a national level. The result is a tightly regulated and quickly growing industry that is setting an example for the rest of the world.

That example holds out great promise for the likes of companies such as Cannabis Strategic Ventures. Cannabis Strategic Ventures has taken a portfolio approach to the cannabis sector, developing a range of brands covering areas such as cannabis oil, concentrate extraction services, staffing for the cannabis sector, and most recently cannabis cultivation itself.

The industry is growing quickly, with analysts predicting that it will reach $65 billion by 2023. That’s creating plenty of space for companies such as Cannabis Strategic Ventures to grow. It’s also drawing the attention of investors.

The Rise of Cannabis Investment

The cannabis industry didn’t initially attract a lot of funding from investors. The potential of cannabis as a legal market was unclear, and it came with risks thanks to the drug’s illegality at a federal level. Investors couldn’t yet see much potential for profit, and they were wary of throwing their financial lot in with such a dubious group.

Now, however, the market has had time to mature. The sector isn’t just a handful of cultivators and retailers trying to work on an untested business model. There are specialist cannabis tech firms, research outfits and umbrella companies such as Cannabis Strategic Ventures. It’s looking more and more like a conventional market sector — though a market sector subject to staggering growth.

The result is a growing surge of investment. Since January this year, U.S. cannabis companies have raised more than $8.2 billion of investment, while their Canadian cousins raised $2.2 billion in October alone.

Getting listed on a stock exchange is invaluable to a getting a company’s stocks in front of powerful investors and thus raising additional funds. Larger cannabis companies are looking at moving from the Toronto exchange to the New York Stock Exchange, the largest stock market in the world, while others such as Cannabis Strategic Ventures are preparing for their first listings.

Investors are more prepared now to take a chance on the cannabis market. Stock exchange presence will allow cannabis companies to tap into that potential and so to take a stronger place in a fast-growing market.

A Fractured Industry

The American cannabis industry is a fractured one. Without the well-established business relationships and support structures of longer-standing sectors, many of the pieces are small and disjointed. Progress has been driven primarily by small startups.

The same moment of maturity that has brought the recent wave of investment has also brought the seeds of change for the industry’s structure. Some companies are using mergers and takeovers to build bigger businesses focused on particular parts of the sector, benefiting from the efficiencies these acquisitions bring. Others are diversifying to create companies with greater reach across the sector and even potential to take it to new places. Cannabis Strategic Ventures, for example, is expanding its product lines to include beauty products even as it adds cultivation to its portfolio for greater vertical integration.

Within the industry, one of the big fractures in the United States is that between the different states. With cannabis still illegal under federal laws, businesses have to operate within the borders of individual states with their own local regulations. Though some companies have operations in several states, it’s not yet possible to create a properly integrated national operation, at least in part because of states where the drug remains entirely illegal. But with the White House hinting at potential reform, this is something that could change over the next few years. While politicians respond slowly to public and investor demand for a more efficient and integrated cannabis sector, it’s the companies that are leading the way.

An Industry Coming Together

Despite the limitations they face, cannabis companies are finding ways to come together and cooperate, both within the United States and across international borders.

Tilray, Inc. (NASDAQ: TLRY), a leading medical cannabis company, is supporting research work beyond the borders of the United States. As a supplier of materials for clinical trials in Canada and Australia, Tilray working with other research-oriented companies to increase understanding of the effects of cannabis and develop better treatments based upon it. These could be invaluable in treating such problems as chemotherapy-induced nausea and childhood epilepsy. And while the work has an invaluable humanitarian element, it’s also appealing to investors who recognize the profits present in the pharmaceutical industry.

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) is one of the great investment success stories. One of Canada’s largest cannabis companies, it has attracted several billion dollars of investment from Constellation Brands, an American drinks manufacturer. This represents an interesting twist on integration within the cannabis industry, with an alcohol company looking to get involved in other recreational chemicals. Tobacco companies have been taking a similar interest in cannabis, and the industry may one day bleed over into one or both of these related sectors.

Already connected into the cannabis industry is industrial hemp, a form of cannabis that doesn’t get users high. Recent years have seen a surge in sales of cannabidiol (CBD) products, which use a compound extracted from industrial hemp. Companies such as Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF) (CSE: CWEB) have had huge success is developing and marketing CBD-based health and wellness products. These products are gaining mainstream acceptance, with Charlotte’s Web getting its products into three thousand outlets.

The success of cannabis growers and retailers has been a boon for companies providing the products and services they need. GrowGeneration Corp. (OTCQX: GRWG), which supplies hydroponic systems and nutrients used in growing cannabis, has seen a massive rise in sales off the back of legalization initiatives. The company’s sales went up by 80 percent in 2017, and it has acquired several smaller companies to help it make the most of this surging demand.

Greater investment helps companies to achieve these successes, which in turn draw in greater investment. As more cannabis companies hit the big stock exchanges, the industry looks set to see its growth continue.

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

About CannabisNewsWire

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

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

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

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CannabisNewsWire (CNW)
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www.CannabisNewsWire.com
303.498.7722 Office
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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.

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.

Canada Leads the Way as North America Embraces a Diverse Cannabis and Hemp Industry

CannabisNewsWire Editorial Coverage: The pending legalization of recreational cannabis and the extraction of cannabinoids from hemp in Canada is only one in a series of changes bringing expectations of new growth to these industries.

  • Legalization of recreational cannabis in Canada is set to establish an industry worth billions of dollars every year.
  • American companies can make the most of this change through cross-border partnerships and Canadian subsidiaries.
  • Industrial hemp offers another option for companies in this sector, producing and extracting cannabinoids, including CBD and other cannabinoids, from the flowers and leaves will become legal on October 17, 2018.

Marijuana Company of America Inc. (OTC: MCOA) (MCOA Profile) is making the most of these changes, developing CBD products and industrial hemp cultivation processes alongside its Canadian partner, Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF). Scotts Miracle-Gro Company (NYSE: SMG) has acquired Sunlight Supplies to give it a larger hold in the hydroponic cultivation market. GrowGeneration Corporation (OTC: GRWG) is also specializing in hydroponics, which it expects to become a $4.5 billion industry. Micron Waste Technologies, Inc. (OTC: MICWF) (CSE: MWM) is creating a specialist onsite waste management system for cannabis farmers. And as hemp cultivation appears to be on the cusp of expansion, Future Farm Technologies (OTC: FFRMF) (CSE: FFT) is producing millions of seeds with which to get farmers started.

New Laws and New Crops

The legalization of recreational use cannabinoids in Canada is set to make waves in the market this year. As the first G7 country to legalize recreational cannabis on a national scale, Canada is leading the world in taking this lucrative trade out of the hands of criminal gangs and making it part of the legitimate economy. With the global cannabis market to reach a value of $57 billion by 2027, Canada provides a great opportunity for companies to capture a piece of this rapidly emerging market.

With sales worth close to $6 billion, the Canadian cannabinoid industry has plenty of potential. It’s drawing the attention of big business, with Corona’s parent company investing billions in a cannabis beverage partnership. It is also opening a new market for companies in the related industrial hemp industry. On October 17, 2018, farmers who hold valid hemp cultivation licenses will be allowed to begin to “harvest and store flowering heads, leaves and branches of the industrial hemp plants cultivated during the 2018 growing season.” Companies will now also be able to transport, sell, import and export any part of the industrial hemp plant legally. This allows those involved in the industry to take advantage of an entirely new product market utilizing hemp-derived cannabinoids. For companies already invested in this sector, changes in Canada may open the way for a vast increase in revenues.

The Canadian Cannabis Market

It’s easy to see the appeal of the Canadian hemp and cannabis markets for the companies moving into those markets, such as  Marijuana Company of America (OTC: MCOA). Estimates by Statistics Canada indicate that Canadians spent around $5.5 billion on cannabinoids in 2017. As many commentators have pointed out, this places cannabinoid-based product potential in the market on par with alcohol for value to Canadian businesses, and close to the total spent on wine each year.

With around 450,000 people using hemp and cannabis products each day in Canada, this promises to be a stable market with a steady stream of income. It’s one on which businesses can reliably build. And it’s not just about the sale of smokable cannabis. There’s potential for hemp and cannabis-based food and drink, as well as all the paraphernalia used in consumption and the supporting functions needed by the industry and retailers.

Hemp is used in a growing list of products, including dietary supplements and skin products, and even clothing and accessories. Overall, hemp is known to have more than 25,000 possible applications. And Marijuana Business Daily reported that the U.S. market for hemp-derived CBD hit $291 million last year and is projected to explode to $1.65 billion by 2021.

Cross-Border Work

The existence of a government regulatory framework for the medical cannabis industry has made it easier for companies to prepare for full legalization in Canada. Companies, such as MCOA with its joint venture partner Global Hemp Group Inc., are already cultivating industrial hemp and have production in place that can be increased to cater to a growing market.

Though MCOA is an American company, it has gained a solid foothold in Canadian hemp cultivation through a partnership with Global Hemp Group, a Canadian public company. The companies have established two agricultural projects together — one of them in New Brunswick and the other south of the border in Oregon. Both sites are being used to develop better techniques for growing industrial hemp.

At the New Brunswick site, the work is being supported by government research investment to help advance the local hemp industry. Aided by drone technology, the companies are gathering data on the impact of pests on hemp production, ways of correcting soil acidity for better growth, and the impact of nitrogen fertilizers. The resulting crops will provide materials for MCOA’s branded hempSMART™ products as well as a rich harvest of data.

In Oregon, the focus is on growing hemp strains with a high yield of cannabidiol (CBD). CBD is one of the active chemicals in cannabis that does not get users high, unlike marijuana’s tetrahydrocannabinol (THC), though CBD still can be used for a variety of medicinal uses. Using a mixture of seeded and cloned plants, staff at the Oregon facility are growing high-CBD-yielding crops while gathering data on their progress.

The Potential of Hemp

MCOA’s investment in industrial hemp means that the company may be set to benefit from a revival in this long-suppressed superior crop as well as the changing U.S. and Canadian laws. A century ago, hemp fiber was used in the production of rope and cloth. Laws aimed at outlawing marijuana killed the industry, but as the interest in other strains of cannabis has grown in recent years, so too has attention on hemp.

In the United States, the 2018 U.S. Farm Bill is set to strike hemp from the definition of “marijuana” under the Controlled Substance Act. This would mean the revival of an industrial agricultural crop that has been repressed for almost 100 years. Language within the Farm Bill could ease regulations for CBD companies such as MCOA by allowing extracts from the hemp plant to now become legalized.

Hemp’s financial potential now lies in its use as a source of CBD oil and other cannabinoids such as CBC, CBN and CBG. The industrial applications of hemp in areas such as textiles, bio-composites and building materials will become increasingly viable as more biomass is generated in the cultivation of hemp to produce cannabinoids.

CBD has become a hot ingredient in medicine and wellness products in recent years, offering great potential for farmers. Even with the growth of hemp tightly restricted, farmers in the United States have predicted revenues of as much as $90,000 per acre from producing hemp oil. For struggling farmers, that compares favorably with the $600 per acre they can get for alfalfa and other traditional and specialty crops. CBD is the oil that goes into MCOA’s hempSMART products. There are currently less than 300,000 acres of hemp grown worldwide, compared to traditional crops such as wheat and corn, with hundreds of millions of acres of each being grown. With the potential disruptive applications for hemp from industrial to medicinal, it will ultimately compete with traditional crops as it is adopted by many sectors of the economy.

In addition, hemp has the advantage of being good for the environment as well as for business. It uses less water than many other crops, needs little in the way of pesticides and herbicides, sequesters significant carbon dioxide and can be rotated with other crops to improve the fertility of fields. Using hemp fibers for paper may reduce the number of trees chopped down, thereby protecting woodland and maintaining carbon dioxide at healthy levels.

A Growing Industry of Growing Things

The spread of cannabis legalization, alongside the increasingly well-recognized potential of hemp, is spurring growth for a number of companies.

Scotts Miracle-Gro Company (NYSE: SMG) is one of several companies providing the support services that cannabis companies need. It recently expanded by acquiring Sunlight Supply, Inc., the United States’ foremost distributor of hydroponic equipment. Hydroponics is fundamental to growing cannabis in indoor facilities, which are often more effective and secure than outdoor cultivation. The $450 million deal will double the company’s share of the market in cannabis growing equipment.

GrowGeneration Corporation (OTC: GRWG) also provides equipment needed by cannabis growers in the form of hydroponic systems, nutrients and materials for hydroponic cultivation. The growth of the legal cannabis market in North America caused an 80 percent increase in the company’s sales in 2017. GrowGeneration predicts that this continuing market growth will turn hydroponics into a $4.5 billion industry in the United States alone by 2020. To make the most of this growth, GrowGeneration has acquired several smaller companies.

Like most industries, cannabis cultivation produces waste. Micron Waste Technologies, Inc. (OTC: MICWF) (CSE: MWM) is developing specialist technology to deal with this concern. A producer of onsite waste management systems, Micron’s products create clean water out of organic waste. With cannabis cultivation growing, the company is targeting this sector with a purpose-built cannabis waste digester. It even ran a competition with a $2,000 prize for the person who came up with the best name for the waste digester, a move that helped to publicize cannabis cultivation.

Future Farm Technologies (OTC: FFRMF) (CSE: FFT) provides another of the pieces of specialist equipment needed for indoor cultivation: lighting. The company makes indoor lighting and vertical farming setups suitable for cannabis cultivation. Future Farm is also preparing for the expansion of the hemp market in the United States by producing millions of hemp seeds ready to be sold to farmers. If expected changes to the federal law in the United States make it easier for farmers to cultivate hemp, then the company will be in a position to equip new entrants to the market, letting them quickly get in on a valuable cash crop.

Between the revival of hemp and legal changes, the cannabis sector is growing. It’s an increasingly diverse industry, covering medical and recreational cannabis, industrial hemp and CBD food products. Canada now provides an ideal area for companies to build up their presence in the industry, but the potential for growth is international.

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

About CannabisNewsWire

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

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

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

Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: http://CNW.fm/Disclaimer

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

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.