With 10,000 Licenses Issued, California Reflects the Growing Power of Hemp

CannabisNewsWire Editorial Coverage: As hemp production increases, Californian legislators have extended the duration of thousands of cannabis cultivation licenses to support the state’s thriving industry.

Sugarmade Inc. (OTCQB: SGMD) (SGMD Profile) is supporting many of these companies that have cultivation licenses by providing cultivation and extraction equipment. Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), one of the biggest companies in the sector, is increasing its growing capacity while helping educate about medicines. Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is leaning into new technology, with new facilities for R&D and processing. The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) (TGODF Profile) has tapped into the demand for organic produce and is now expanding into global CBD market. GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF) is developing powerful new medicines, in which hemp could help tackle previously uncurable illnesses.

  • California is one of the largest regions for cannabis and hemp cultivation.
  • Recent legislative moves show that the state’s politicians are hemp friendly.
  • Demand for hemp and cannabidiol (CBD) continues to soar.
  • Companies are responding with increased production, acquisitions and new technology.

To view an infographic of this editorial, click here.

The Land of Mass Licensing

The past year has seen substantial growth in the Californian hemp industry, and with that growth came challenges for the state’s governing bodies. The state is home to one of the largest legalized recreational cannabis markets in the world, and Californian authorities have reportedly issued over 10,000 licenses to producers, processors and retailers involved in the cannabis industry. This includes those working with hemp, a non-psychotropic form of cannabis, and CBD, a chemical derived from hemp.

The swift growth of the state’s industry almost triggered a crisis this spring, as thousands of temporary licenses were set to expire before authorities had time to process permanent licenses. The state senate stepped in to extend the duration of temporary licenses and protect law-abiding business owners from a bureaucracy struggling to keep up with demand.

The legal move to extend the licenses may indicate the state’s political attitude toward the industry and holds promise for companies working in California.

A Friendly Place to Work

For companies working with hemp and related products, California is possibly the most business-friendly place in the world to be based. The state is headquarters for a wide range of companies working in the sector, from producers and retailers to companies providing support services, such as Sugarmade Inc. (OTCQB: SGMD).

Based in Monrovia, California, Sugarmade develops brands and products with disruptive potential. Over the past few years, this strategy has led the company to develop a growing focus on hemp and the surrounding sector, a space filled with innovation, fast-developing new practices and promising potential.

Rather than being cultivator or retailer, however, Sugarmade is a supplier of vital materials to the hemp industry. The company sells hydroponic equipment and supplies needed for growing consistent, high-quality crops in secure, climate-controlled indoor facilities. SGMD is moving deeper into the market by extending its catalog to include extraction equipment, essential in the process of acquiring valuable CBD from hemp plants.

California is home to so many of these companies for a number of reasons. The state is one of the largest markets in the world by population for hemp and related products, with only Canada matching it in scale. In addition, California is one of the first areas to become friendly to the industry, passing groundbreaking legislation in the 1990s allowing the space to progress.

This attitude has been both supported and encouraged by a political establishment that appears to look favorably on the industry. The Californian senate, having seen thousands of new businesses such as Sugarmade spring up, is eager to nurture these entities for the jobs and wealth they bring to the state’s economy. This general support is reflected in the government’s decision to extend temporary licenses to prevent new businesses from faltering just as they had been established.

Staggering growth has caused challenges for the Californian authorities in providing licenses. The federal legalization of hemp in December added to interest in the industry and pressure on the licensing system. The state’s responsiveness to problems within the system has shown how serious it is about hemp and creating a friendly environment for the likes of Sugarmade and its customer base.

The Hemp Revolution

The situation in California appears to reflect a much wider pattern in the hemp industry, across the United States and beyond.

Ten years ago, hemp was barely even mentioned in conversations about business. As a source of useful materials, its use had fallen out of fashion with the end of the age of sail, during which it had provided fibers for ropes and canvas. But then a shift came, as companies in the cannabis space looked for other options they could market. As a nonpsychoactive ingredient, CBD could be sold in markets where cannabis itself couldn’t. And hemp offered a rich source of CBD without many of the complications surrounding the rest of cannabis.

Since then, demand for CBD has rocketed. The component is used in a wide range of products including cosmetics, health foods, and vaping liquids. Companies have emerged specifically to cater to the hemp market, and those companies have turned to the likes of Sugarmade for the equipment they need.

The popularity of CBD among consumers has also rocketed, leading to shortfalls in supply. The 2018 Farm Bill, which legalized the hemp trade at the federal level in the United States, will help with meeting this demand in the long term. But the bill is no magic bullet, and companies need time to gear up in the new commercial environment that has been created.

This gearing up has led to increased demand for cultivation equipment, creating shortages in that area. Cultivators have bought everything that Sugarmade can provide, as hydroponics companies see a boom in sales alongside the hemp companies they serve.

Dealing with Demand

Sugarmade has made a variety of moves — in California and beyond — to meet this growing demand.

Expansion is obviously critical to making the most of this opportunity, and the company has entered a period of serious growth in its sales, product lines and bottom line. As a critical link in the hemp supply chain, Sugarmade is not just in a position to grow, the company must grow in order to meet customer needs.

One of the key tactics in this expansion has been SGMD’s use of acquisitions and agreements. The company acquired Sky Unlimited LLC and, through it, the AthenaUnited.com online sales operation, increasing its sales capacity. Sugarmade has also struck deals with companies such as Hempistry, BizRight Hydroponics and Plantation Corp, ensuring smooth supply chains and greater capacity to meet surging demand.

Adding new technology to its catalog has allowed Sugarmade to make better use of this moment. The company is moving to supply next-generation extraction machinery and develop artificial intelligence systems to monitor hemp crops. By providing its customers with the latest technology, Sugarmade may be better able to distinguish itself from its competitors and ensure the profitability of its customers, for its own long-term good.

Space for Growth

With customer demand firmly outstripping supply, the hemp sector is creating a space in which a wide range of businesses can flourish.

One of the most important is Canadian company Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), which was the largest cannabis company in the world by market capitalization as of April this year. Like Sugarmade, Canopy Growth Corporation has taken big steps to continue expanding and claim a larger share of the hemp and related markets. The company has increased its production capacity through a mixture of acquisitions and ongoing work to increase its existing licensed production facilities. Acquisitions have also featured in its work further down the supply chain, such as acquiring hemp skin care company This Works.

Like Sugarmade, Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is looking to new technology to support its expansion. The company recently announced the creation of an R&D facility, which has the potential to provide new products for a curious and often experimental customer base. To support such innovations, the company is also acquiring a state-of-the-art fermentation and manufacturing facility, which will allow Cronos to produce cultured cannabinoids.

The Green Organic Dutchman (TSX: TGOD) (OTCQX: TGODF) has focused on a specific sector of the customer base, setting itself up as a source of organic and sustainably grown products. The creation of two new production facilities will allow the company to tap into rising demand, increasing its growing capacity from 156,000kg to 202,500kg. And with the growing popularity of hemp-CBD products, the company is setting up a global strategic hemp division to give it greater global reach in an important part of the sector.

GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF) is applying the power of cannabidiol to tackle otherwise untreatable diseases. The company’s 20 years of experience in the sector is currently being applied to seizures associated with tubular sclerosis complex, for which one of its drugs recently underwent successful clinical trials. GW has become a world leader in cannabinoid medicines, whose value is increasingly widely recognized.

With hemp and related sectors growing so fast, California’s senators appear to have made a wise decision to smooth the way for local cultivators. Both customers and businesses in the state and beyond may see the benefits.

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.

Acquisitions, Licenses, Research Key in Consistent Cannabis Market Growth

CannabisNewsWire Editorial Coverage: The cannabis sector continues its steady shift toward big business and big money, with much of growth based on acquisitions, agreements and consistent research.

TransCanna Holdings Inc. (CSE: TCAN) (FRA: TH8) (TCAN Profile) is focused on creating a large operation with various licenses and recognized brands, with several key acquisitions, being part of that strategy. Medmen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) is in the process of acquiring PharmaCann, which recently received an extension to complete the development of its cultivation facility in Ohio. Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) just entered into a multiyear supply agreement that will help the company provide high-quality products to consumers in anticipation of the derivative market launching in Canada this fall. Tilray Inc. (NASDAQ: TLRY) recently completed its acquisition of Manitoba Harvest, the largest hemp food company. GW Pharmaceuticals Plc (NASDAQ: GWPH) continues its march forward as a leader in cannabinoid prescription medicines sector with its recent announcement of positive, top-line results of a Phase 3 clinical trial of Epidiolex® in the treatment of seizures associated with a rare and severe form of childhood-onset epilepsy.

  • Cannabis companies are engaging in multimillion-dollar acquisitions in growing numbers.
  • This strategy supports a consolidation of the industry as it moves from scattered creativity to efficient large businesses.
  • The trend is built in part on intangible assets, including brands, licenses and research.

To view an infographic of this editorial, click here.

A Very Different Business

The image of the cannabis industry varies significantly depending upon an individual’s point of view. To supporters, the market is a transformative sector aimed at bringing the world together. Detractors call the industry one more vice threatening public morals. For many standing in the middle ground, the sector is a space where hippies and stoners can thrive but not necessarily one that encourages the buzz and dynamism of mainstream business.

In reality, the cannabis sector fits none of these images. The industry is emerging from its early nascent steps into legality to become a significant business sector much like any other, with all the elements of modern capitalism. This growth appears to be reflected in the sector’s recent burst of mergers and acquisitions.

Big-Money Deals

Certainly one of the most eye-catching aspect of mergers and acquisitions in the cannabis sector is the significant amount money involved. Take just two recent examples from a single company: TransCanna Holdings Inc. (CSE: TCAN) (FRA: TH8).

In the past few months, the Vancouver-based cannabis company has made announcements on two major deals. First came the acquisition of a 196,000-square-foot vertically integrated cannabis facility for a total purchase price of $15 million. Then came a letter of intent relating to Californian company Lyfted Farms outlining TransCanna’s plans to acquire Lyfted’s business and assets for $5.5 million.

By some standards, these might not seem like significant deals. But when a company is investing $20 million on expansion in the space of a couple of months, stability seems evident. That TransCanna can make these deals is a show not only of the strength of the company but also the strength of the industry.

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

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

Tidying Up the Market

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

As a result, the cannabis industry was initially made up of diverse and disconnected businesses. Now, however, the sector is moving toward a space of consolidation.

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

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

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

The Power of the Immaterial

In the illegal market, product was the main focus for cannabis sellers. In the legal market, the focus is different. When a company relies on the full complement of marketing, intangible assets become important. That’s why GoodFellas is valuable to TransCanna — not just for its cannabis but for the Daily brand attached to it.

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

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

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

Keeping Profiles High

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

Last year Medmen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) soared 60% in one week when the company announced the deal to buy PharmaCann. PharmaCann is working to complete its $20-million cultivation center, which must be operational before the acquisition can be completed to comply with Ohio law, which requires a licensee to have operating certification before transferring a license to another owner. The deal will double the number of states where Los Angeles-based MedMen has licenses to operate – expanding the firm’s reach to 12 states with 66 retails stores and 13 cultivation facilities.

The agreement between Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) and MediPharm Labs Corp. will supply Cronos Group with approximately $30 million of high-quality, private-label cannabis concentrate over 18 months and, subject to certain renewal and purchase options, potentially up to $60 million concentrate over 24 months. In addition, Cronos Group and MediPharm Labs have entered into a multiyear tolling agreement, where Cronos Group will supply bulk cannabis to MediPharm Labs’ state-of-the-art extraction facility in Ontario.

With the completion of the acquisition, Manitoba Harvest will operate as a wholly owned subsidiary of Tilray Inc. (NASDAQ: TLRY), leveraging the expertise of Tilray’s global cannabis industry expertise. “Tilray’s acquisition of Manitoba Harvest is a milestone for the cannabis industry,” said Tilray president and CEO Brendan Kennedy. “It builds on the strategic partnerships we have formed with consumer brand industry leaders and demonstrates our track record of disrupting the global pharmaceutical, alcohol, CPG, and functional food and beverage categories. We’re excited to work with Manitoba Harvest to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the U.S. and Canada.”

The newest test results from GW Pharmaceuticals Plc (NASDAQ: GWPH), the world leader in the science, development, and commercialization of cannabinoid prescription medicines, expands the company’s knowledge of Epidiolex and its potential use beyond the current indications. “Data from previous controlled clinical trials of EPIDIOLEX have shown clinically meaningful seizure reductions and consistent safety and tolerability in children and adults with Lennox-Gastaut syndrome and Dravet syndrome,” said Dr. Elizabeth Thiele, the lead investigator of the trial, director of the Herscot Center for Tuberous Sclerosis Complex at Massachusetts General Hospital, and a professor of neurology at Harvard Medical School. “Based on the positive results of this trial in TSC patients, Epidiolex, if approved for this additional indication, may become an important treatment option also in this disease state with significant unmet medical need.”

The cannabis industry is clearly evolving with big money, consolidation and growing intangible assets playing pivotal roles in the growing strength and consistency of the sector.

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

About CannabisNewsWire

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

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CannabisNewsWire (CNW)
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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.

Dramatically Improved Delivery Systems Promise More Effective Cannabis Treatments

CannabisNewsWire Editorial Coverage: Experiments with next-generation delivery systems appear certain to lead to better cannabis-based products.

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) (LXRP Profile) has recently seen spectacular improvements in the effectiveness of cannabinoids thanks to its proprietary chemical delivery treatment. GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF), which has won widespread praise for its innovative medical work, has seen good trial results for a new treatment for seizures.  Tilray Inc. (NASDAQ: TLRY) is supporting studies into the uses of cannabinoids to treat behavioral problems and HIV. MariMed Inc. (OTCQB: MRMD) has set up a subsidiary focused on CBD, currently the highest-profile cannabinoid product. Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) has established a new research lab to develop devices for CBD consumption.

  • Currently, cannabis medicines are poorly absorbed by the body.
  • Delivery challenges increase costs and reduce effectiveness.
  • Select companies are working on better delivery systems.
  • Others are working on new medicines so that cannabinoids can improve more lives.

To view an infographic of this editorial, click here.

The Cannabinoid Waste Conundrum

The popularity of cannabinoid products — those containing active ingredients from cannabis — has created a challenge for producers. While these producers are extracting larger volumes of CBD from cannabis and hemp, much of the precious ingredient goes to waste: the human body only absorbs a small fraction of these molecules because of delivery system limitations and human physiology.

This delivery challenge causes several problems. Manufacturers must comply with regulations limiting the amount of active cannabinoid ingredients, but consumers may not be able to obtain the effect or benefit they are seeking, even when needed to overcome serious medical conditions. People could end up consuming more cannabis than they would otherwise, which is both expensive and ill-advised. And in an age when the waste of human society is ravaging the environment, it means that the cannabis industry may also be doing unneeded damage to the environment.

But thanks to the fast pace of cannabis research, a solution may be on the horizon.

Improving the Delivery of Cannabinoids

Across the industry, researchers are looking for ways to more effectively deliver CBD into the human body. Thanks to their latest breakthroughs, the scientists at Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) appear to be leading the way.

A biotech company based in British Columbia, Lexaria is currently focusing on its proprietary DehydraTECH(TM) technology. This unique technology has been developed to make medicinal compounds more suitable for human consumption in a number of ways. By combining molecules such as CBD with fatty acids at a molecular level, DehydraTECH makes it easier for the CBD to cross the body’s internal barriers. Higher levels of CBD are absorbed, and they are absorbed more quickly.

Consumers need to know this: the quantity of CBD, or any other drug, in the bottle is unimportant. What matters is how much of that CBD actually reaches the bloodstream — and even more importantly — how much reaches the brain.

Most CBD sold in CBD-infused products in America today does not reach the bloodstream. CBD mixed in water and fed to animals demonstrated the incredible power of DehydraTECH. Results announced in May showed that DehydraTECH, in combination with generic nanotech techniques, delivered CBD to the brain 1,137% more efficiently than existing industry formulations. In addition, Lexaria’s patented DehydraTECH delivered CBD into the bloodstream in just two minutes and delivered as much CBD in 15 minutes as generic doses did in 60 minutes.

Not content with these sorts of results, the company has been working on improving the power of DehydraTECH through a new second-generation version called Enhanced DehydraTECH. Lexaria’s Enhanced DehydraTECH showed remarkable properties in crossing the blood-brain-barrier, delivering 1,937% more CBD into the brain than a generic industry formulation. It also delivered between 717% and 1,098% more CBD into the bloodstream than generic CBD formulations.

Lexaria’s technological advances make it possible to manufacture capsules and edible products that deliver CBD and THC more effectively than ever before.

Satisfying Customers and Regulators

This vastly superior delivery performance holds promise to radically change the CBD industry, at a time when the sector is already going through huge change and growth.

On one level, the benefits of technology such as that being developed by Lexaria are obvious. A more efficient delivery system can do one of two things: it can make the same dose of a drug or vitamin more effective, or it can allow the same consumer effect to be achieved with a smaller dose.

The latter approach may have the widest impact and certainly has potential to shift prices. Recent legal changes in Canada and the United States have led to a surge in demand for CBD, a demand that suppliers have been unable to meet. With demand for CBD outstripping supply and a production process that involves complex technical steps, the price of CBD is relatively high. But if companies can make products that are just as effective but use smaller amounts of CBD, they can reduce their production costs and provide more products with the same raw resources. This change would allow companies to meet currently unmet demand and reduce prices, thus benefitting both the customers and the industry.

There’s also a less-obvious factor, one that industry outsiders might not consider but that companies such as Lexaria are acutely aware of. With the legalization of cannabis across Canada and hemp in the United States, regulators are stepping in to control the production, sale and dosage amounts of CBD or THC products. Limits are being set on how much CBD or THC a product can contain.

Improved delivery systems such as DehydraTECH allow companies to produce more effective products within the same legal limits. Customers can experience the highest benefit from their products while everyone stays inside the law.

Beyond CBD?

But while CBD is proving a profitable testing ground for DehydraTECH, the impact of this first-of-its-kind delivery system could potentially go far beyond this, extending into the wider medical sector.

Recent research results have shown that DehydraTECH is effective in delivering both cannabinoids and nicotine into brain tissue, thus improving the speed and effectiveness of these ingredients. The delivery system also comes with a fast-on/fast-off element, in which the effect of the drug both starts and ends quickly and clearly, providing better control over the use of the products in which drugs are used. DehydraTECH is being evaluated by the largest nicotine company in America for products utilizing oral delivery, bypassing the known disease conditions associated with current pulmonary delivery.

As a result, Lexaria’s technology already has potential medical benefits because it can be used to deliver CBD- and THC-based medicines, in addition to its applications as a solution to cigarette use. But what if it could do more?

Since DehydraTECH has been shown to work with multiple molecules, people are asking if it could be used with central nervous system drugs. By delivering drugs quickly and efficiently across the blood-brain-barrier, this innovative delivery system could enhance the speed and effectiveness of a wide range of drugs and potentially usher in a new era of treatment for a wide range of debilitating diseases. Lexaria has quietly filed patent applications for innovation in treatment options related to central nervous system diseases such as Parkinson’s and Alzheimers.

Experimenting with Cannabis

Given the importance of cannabinoids in treating some of these debilitating diseases, improved delivery systems already have clear medical advantages. Among the companies applying cannabinoids to life-changing medicines is GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF). With more than 20 years of research in the cannabis sector, GW is a global leader in developing cannabinoid medicines and was named one of Time Magazine’s 50 genius companies for this work. The company recently announced successful clinical trials of EPIDIOLEX, in which this CBD drug was used to reduce the frequency of seizures associated with tubular sclerosis complex.

Tilray Inc. (NASDAQ: TLRY), a world-leading cannabis company based in Canada, has been working to address the shortage of cannabis and CBD, investing $32.6 million in an expansion of its cultivation and manufacturing facilities. But the company isn’t just working on meeting current needs. Tilray is providing support to two clinical studies that could lead cannabinoids to transform more lives for the better. Through studies like these, the use of cannabinoids is spreading beyond its traditional territory of pain and nausea management.

MariMed Inc. (OTCQB: MRMD), a multistate cannabis company, has been improving the efficiency of its operations through vertical integration and the addition of new product lines, allowing it to more effectively deliver cannabis products to a wide range of customers. At the start of this year, the company established a subsidiary focused on CBD in response to rising sales and the changed legal status of hemp manufacturing in the US.

Lexaria’s work on DehyrdaTECH isn’t the only area where the interests of cannabis and tobacco are merging. Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), a global cannabinoid company, has had its fortunes and its profile improved by an investment of C$2.4 billion from tobacco giant Altria. The company’s growth has also allowed it to establish a new global research and design center, Cronos Device Labs, in Israel. There, the company will work on devices specifically designed for the consumption of CBD.

As the technology around cannabis improves, so will the efficiency and effectiveness of cannabinoid products, lowering prices and improving outcomes for patients around the world.

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

About CannabisNewsWire

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

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

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

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

CannabisNewsWire (CNW)
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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.

Disruptive CBD Delivery Technology Could Revolutionize World of Cannabis Consumer Products, Edibles

CannabisNewsWire Editorial Coverage: Fueled by an explosion of CBD-infused edibles, billion-dollar projections for the CBD market may even be conservative.

This seems possible when one considers the truly innovative work being done in the sector by the likes of Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) (LXRP Profile), which has developed a patented delivery technology with disruptive potential, delivering 475% more CBD to the bloodstream after 15 minutes than conventional formulations. Other sector innovators are making a similar impact, including the likes of noted cannabinoid biopharma GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF) and that of researchers and product developers Tilray Inc. (NASDAQ: TLRY), MariMed Inc. (OTCQB: MRMD) and Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB).

  • CBD is going mainstream into all kinds of consumer goods and foodstuffs.
  • Hard data on numerous health benefits appears to be core driver behind growing CBD acceptance.
  • $1 billion-plus cannabis edibles segment growing rapidly but separate from CBD market.
  • Innovative delivery tech could revolutionize the industry and consumer receptivity.

To view an infographic of this editorial, click here.

Mainstream CBD Teeing Up an Edibles Boom

The recent May 9 report from leading cannabis industry analysts BDS Analytics and Arcview Market Research forecasts that the market for nonpsychoactive cannabinoid CBD (cannabidiol) alone will hit upwards of $20 billion by 2024, running at a CAGR around 49%. With last year’s farm bill legalizing industrial hemp in the United States, CBD sales in dispensaries have been rapidly increasing. Additionally fueled by an explosion of CBD-infused edibles, it appears that conservative sector growth estimates from analysts such as New York-based investment bank Cowen & Co. may be shortsighted.

A mounting, positive consumer sentiment about the health benefits of cannabinoids is broadly underscored by the work of developers such as GW Pharmaceuticals, whose CBD-based Epidiolex is already FDA-approved to treat two types of severe childhood epilepsy. CBD is going mainstream, with high-profile celebrities such as iconic homemaker Martha Stewart publicly coming out in support of the numerous health benefits that CBD is said to have, like lowering stress and anxiety or battling inflammation and pain. It is little wonder that consumers are seeing CBD used as a nutraceutical additive in everything from over-the-counter cosmetics and pet health products, to wildly popular edibles infused with CBD oil.

The cannabis edibles segment is also interesting to many analysts, and recent forecasts such as the Arcview Group’s $4.1 billion by 2022 figure brings into stark relief the immense potential of a market that already ballooned to more than $1 billion last year. BDS Analytics predicts that the same rapid CBD product sales growth seen at dispensaries will continue to occur as the majority of sales shift to general retail stores. An increasingly receptive consumer base is seen driving this trend, as roughly 66% of hemp-derived CBD consumers in the United States now believe in full federal legalization of cannabis in general.

The demand for CBD products now appears to be nothing short of historic, with CPG (consumer packaged goods) companies having never witnessed such an insatiable appetite for a new product type before. CBD, THC and others of the 100 or more cannabinoids found in cannabis appear to show strong potential for gobbling up market share across massive, vulnerable consumables industries, ranging from soft drinks and snack foods to alcoholic beverages and pet aides.

Revolutionary Delivery Technology Could Supercharge Edibles Industry

Unfortunately, the vast majority of edible CBD is being delivered to the human body in an inefficient manner, with most of the CBD simply ending up in the toilet. Typical CBD-infused products utilize industry-standard delivery methods such as MCTs (medium-chain triglyceride) like coconut oil. Such MCTs are a somewhat crude but straightforward approach, offering a rich texture and “mouth feel” but promising only limited delivery of CBD. Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) DehydraTECH(TM) patented formulations have considerable disruptive potential amid the ongoing CBD boom, with recent multi-objective animal studies showing a clear advantage over industry standards, in terms of how efficiently edible forms of cannabinoids enter the bloodstream.

The company’s standard DehydraTECH formulation using LCFAs (long-chain fatty acids) went head-to-head with a concentration-matched MCT formulation in the recently announced animal studies, yielding a whopping 475% higher CBD blood concentration level — and at four times the speed (15 minutes). These days, it is not uncommon to see people throwing around terms such revolutionary or groundbreaking willy-nilly. So when a technology comes along that truly does represent a fundamental paradigm shift, it can easily get lost in the ceaseless 24-hour news cycle cacophony.

Those words may truly apply here. Lexaria’s patented LCFA formulation has demonstrated a stunning 334% higher average maximum CBD blood concentration level over a 60-minute interval than standard MCT oil formulation, with initial onset (measurable CBD in blood) occurring three times faster (as little as only two minutes), a key factor for edibles.

This animal-study data is compelling and establishes a solid foundation under LXRP’s value proposition to investors. That proposition become even more interesting considering that LXRP is the only company in the United States with such a powerful absorption and delivery technology backed up by proven claims in lab, animal and even human clinical studies. DehydraTECH appears to deliver more CBD, more quickly, than virtually any other brand or technology available in the country.

In a recent human clinical study conducted at a medical research university, DehydraTECH-enabled capsules branded as TurboCBD delivered 317% more CBD into the human bloodstream than did generic CBD lacking this impressive technology. Seemingly, the human testing in addition to animal reinforces the notion that the industry may be witnessing a revolutionary breakthrough.

No Brag, Just Facts

Consider what this technology could mean for the CBD edibles space. At 15 minutes, the DehydraTECH formulation achieved 475% higher concentrations and to levels not seen or achieved by MCT. This puts DehydraTECH on par with inhalation in terms of how fast acting it is, something which has been a brass ring to the edibles industry for many years.

Rapid uptake by the body’s various tissue systems as opposed to valuable raw ingredients being flushed down the toilet because of minimal absorption — that is a huge selling point to consumers. And DehydraTECH technology provides the additional benefit of enabling lower drug-dosage quantities, an important point to consider given that “Lexaria has every reason to believe that virtually identical results would have been achieved if THC was instead the cannabinoid under examination [in the aforementioned animal studies], consistent with subjective human clinical studies Lexaria’s partners have conducted with edible THC products.”

Another great feature of LXRP’s proprietary technology is that it eliminates bad tastes typically found in CBD oils, thus eliminating the need for large quantities of sugar or artificial sweeteners to mask the taste, making the ingredient even more attractive to health-conscious consumers.

CBD Companies Leading the Charge

Cannabis is going mainstream, with CBD appearing to lead the way.

GW Pharmaceuticals Plc (NASDAQ: GWPH) (OTC: GWPRF) has the enviable distinction of developing Epidiolex, one of the most widely known CBD indications ever devised. Made world famous by coverage of the drug’s use in combatting severe childhood epilepsy, the drug is the first prescription, FDA-approved, plant-derived cannabinoid medicine in the United States and has acted as a kind brand ambassador for CBD in general.

Tilray Inc. (NASDAQ: TLRY) has grown into quite an operation, with a presence in eight countries across four continents, and worldwide production capacity that is on track to hit 1.3 million square feet this year. A strategic partnership with Authentic Brands Group is expected to have co-branded CBD products hitting consumers throughout ABG’s vast North American distribution network in the second half of this year. And Tilray even managed to beat first-quarter sales expectations, having posted a 195% jump in year-over-year revenues to $23 million, on the strength of factors such as solid hemp-food sales growth from the recently acquired Manitoba Harvest.

MariMed Inc. (OTCQB: MRMD) recently announced the formation of a wholly owned subsidiary to be entirely focused on hemp-derived CBD products. MariMed Hemp Inc. will have its own dedicated executive team, proprietary brand and product lines, as well as distribution and marketing relationships. A bold move for this multistate operator of licensed cannabis facilities, which has an increasingly strong presence in branded cannabis and hemp product lines, as well as a retained initial core business providing advisory services.

Aurora Cannabis Inc. (TSX: ACB) (NYSE: ACB) recently made a huge announcement with entry into a multiyear, multimillion-dollar agreement with mixed martial arts organization UFC to conduct hemp-derived CBD research on athlete recovery and wellness at UFC’s substantial Las Vegas institute site. This high-profile and well-capitalized initiative could pave the way for sweeping clinical studies to more thoroughly evaluate CBD across the gamut of current major target indications such as pain management, inflammation, injury/exercise recovery and mental well-being.

Lexaria’s DehydraTECH continues to offer hardline absorption data that makes it one of the most exciting names in CBD delivery technology today. As the CBD industry continues to build momentum approaching widespread, mainstream acceptance and inevitable incorporation into a multiplicity of everyday consumers products and foods, LXRP stands poised to profit mightily.

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

About CannabisNewsWire

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

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

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

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

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

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

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

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

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

Surging Vape Market Propels Smart Brands Growth

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

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

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

To view an infographic of this editorial, click here.

Vaping Takes Off

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

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

An Active Market

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

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

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

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

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

Mergers, Acquisitions and Investment

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

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

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

Vaping and CBD

Vaping plays a particularly prominent part in the CBD market.

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

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

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

David Versus Goliath

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

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

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

The State of Vaping

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

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

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

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

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

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

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

About CannabisNewsWire

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

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

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

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

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

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

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

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

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

CBD Industry Set to Explode as New Products, Consumers Enter Market

CannabisNewsWire Editorial Coverage: The U.S. Farm Bill that recently passed into law is a game-changer for the CBD space. While it is unknown when nationwide cannabis legalization may occur, incredible opportunities exist right now for CBD-focused companies that can deliver products to the marketplace.

  • Demand is growing for organic CBD products in markets where such products are legal.
  • Youngevity has made a series of strategic acquisitions to help establish the company’s position
  • Companies ready to deliver CBD products to market at scale are in ideal position to capitalize on growing demand.

Passage of the latest U.S. Farm Bill marked a watershed moment for CBD producers in the United States. Not only does the new body of law allow these producers to commercialize existing CBD products, the door is now open for a new generation of research into what CBD can do for consumers. Youngevity International Inc. (NASDAQ: YGYI) (YGYI Profile) is a leading producer of consumer-focused CBD products that is expanding its reach into other areas of the CBD supply chain. It joins companies such as CV Sciences Inc. (OTCQB: CVSI), Isodiol International Inc. (CSE: ISOL) (OTCQB: ISOLF), GW Pharmaceuticals plc (NASDAQ: GWPH) (OTC: GWPRF), and Curaleaf Holdings Inc. (OTCQX: CURLF) (CSE: CURA), which are all working to commercialize CBD products in both the consumer and pharmaceutical sectors.

To view an infographic of this editorial, click here.

CBD Offers New Opportunities for Bold Thinkers

The market for CBD products is exploding and likely will continue to grow as these products become more available. Because CBD can be made in a laboratory, an increasing amount of synthetically produced CBD has been entering the market. However, many CBD proponents contend that organic CBD (CBD extracted from hemp plants) is superior to synthetic CBD.

Youngevity International Inc. (NASDAQ: YGYI) produces a range of consumer-focused CBD products, but the company is growing its reach via strategic acquisitions. Sourcing organic CBD has been an issue for many manufacturers, which may be why Youngevity recently acquired Khrysos Global — a CBD producer based in Florida.

Following the announcement of this acquisition to the public, YGYI president and CFO Dave Briskie commented, “We set out a plan to create a vertical opportunity in the hemp space. This is a significant step as it relates to the production, cultivation, and extraction of hemp, CBD oil, as well as other CBs (cannabinoids). . . . We proudly welcome Dwayne Dundore, as the President of newly formed Khyrsos (sic) Industries along with his entire and very capable team at Khrysos and INX Labs.”

Dundore was equally enthusiastic about the announcement, saying, “I am really excited to be a YGYI shareholder and part of the Youngevity Family. I look forward to making a meaningful contribution to both the top and bottom line of the company and feel strongly that our capabilities and plans for expansion should create additional value for myself and all shareholders.”

CBD Ready to Take the Market by Storm

Unlike THC, which is a highly psychoactive alkaloid found in cannabis, CBD has a calming effect in most people. In addition, CBD can be legally sold without a prescription and is being integrated into many consumer products.

CBD companies that can create good connections with their client bases should be able to grow into this burgeoning market. Recognizing this, Youngevity has made a series of strategic acquisitions that could help establish the company’s position as a leader in 21st-century cannabis development. The company’s takeover of Khrysos Global netted it a solid supply of organic CBD, as Khrysos has both cannabis cultivation property and facilities to refine CBD oil.

With that backdrop, Youngevity recently launched HempFX to sell its products directly to consumers. For the moment, the company is offering hemp oils. Its product line may increase as additional research and development brings more ideas to market.

A Coffee Door Opener

Youngevity is also ready to bring a CBD-infused coffee to market. Its recent acquisition of Khrysos Global brought CBD-testing laboratories to the company, looking to leave Youngevity in a position to take full advantage of the new U.S. CBD laws. One of the biggest hurdles for manufacturers of CBD products is making sure the products contain a repeatable dose of CBD. Through careful testing, Youngevity has overcome this obstacle in its coffee, which reliably delivers 10mg of CBD in every cup.

The new coffee will be made by Youngevity’s wholly owned subsidiary CLR Roasters. According to the company, the new product will be sold in four flavors and will be available to consumers later this year.

CLR Roasters president Ernesto Aguila commented, “We are extremely pleased with the taste of the product, and the samples that we have provided to a host of retailers have led to strong reviews as well. It is very exciting to bring a new product to market that has so much interest within the coffee beverage category. I have not seen a door opener like this since Javalution Coffee Company created the first fortified coffees.”

Market Viability Looks Strong

CBD has essentially been illegal since modern medicine began. Now that it is legal to produce and distribute CBD in the United States, early movers in the space are setting themselves up for potentially massive profits. Numerous companies are focusing on developing better CBD-infused products, creating new forms of consumer-focused CBD consumables and getting those products to consumers as quickly and easily as possible.

CV Sciences Inc. (OTCQB: CVSI) is working to commercialize CBD products for both consumers and the medical community. Its pharmaceutical division is looking to create a CBD-based medicine that can be approved by the U.S. Food and Drug Administration. Now that CBD is 100 percent legal at a federal level in the United States, the company should be able to make progress on this project. Its consumer division is developing a range of products that can be sold to health food stores or directly to its customers. As CBD use has become more widespread, there is a growing amount of feedback from users to support its continued development.

Isodiol International Inc. (CSE: ISOL) (OTCQB: ISOLF) has built a CBD-focused business with operations in the United States, the United Kingdom, and other countries. Kevin Swadish, the company’s chief revenue officer, commented, “The legalities of hemp-based CBD are becoming more favorable, and consumer awareness of CBD is rapidly rising. As a result, we believe the greatest growth opportunities in the industry, and for Isodiol, lie in the consumer packaged goods marketplace.” The company has built up an operation with more than 200 employees and consultants globally, which demonstrates the interest CBD has generated in recent years.

GW Pharmaceuticals plc (NASDAQ: GWPH) (OTC: GWPRF) developed the first marijuana-derived pharmaceutical to be approved by the FDA. Epidiolex, which contains CBD, was designed to treat Dravet syndrome and was the first drug ever approved to treat this rare form of epilepsy in the U.S. Sales of the drug began last November, and according to recent financial results posted by the company, Epidiolex has garnered substantial interest. Epidiolex sales totaled around $4.7 million in the last quarter, with more than 4,500 new patient enrollment forms during the first two months the drug was available. The positive results from Epidiolex sales were well received, and investors bid the company’s shares higher after they were announced.

Getting CBD products into the hands of consumers is also a focus for savvy companies looking to the future. Curaleaf Holdings Inc. (OTCQX: CURLF) (CSE: CURA) recently announced a distribution deal with CVS Health Corp. Under the new deal, the retail pharmacy and healthcare company will begin selling products infused with the trendy, nonintoxicating hemp component at more than 800 of its stores nationwide. CVS confirmed that it has started selling CBD creams, sprays and lotions in eight states, including California, Illinois, Colorado and Alabama. The products will be sold in store aisles. “We’ve been having dialogue with national retailers for many months now,” said Curaleaf chief executive officer Joseph Lusardi. “We’ve got a number of potentially exciting partnerships in the pipeline.”

Growing hemp and refining it into CBD could become profitable for companies that can do it efficiently, especially if public demand grows faster than production capacity. Youngevity may be picking up on this emerging market dynamic and securing its supplies of organic CBD while the industry is still in its infancy.

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

About CannabisNewsWire

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

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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.

Sector ETFs Provide Diversified Entry Point for Fast-Moving Industries

CannabisNewsWire Editorial Coverage: Individuals hoping to gain exposure to the movement of the markets have two primary options: spend a lot of time and effort researching public companies, or put faith into a fund. A solid investment strategy is key to keeping pace with inflation and reaching your financial goals, but the significant risk and volatility that can come with investing in a small group of companies is a real turn-off for most part-time investors.

Increasingly, novices and seasoned traders alike are turning to mutual funds for their stability and ease of use. According to data from the Investment Company Institute, mutual funds were the most common type of investment company owned in 2018, with 44.8 percent of U.S. households owning shares of mutual funds or similar U.S.-registered investment companies – including exchange-traded funds (ETFs), closed-end funds and unit investment trusts. As Matthew P. Fink notes in The Rise of Mutual Funds: An Insider’s View, “Today U.S. mutual funds are the largest financial industry in the world, with over 88 million shareholders and over $11 trillion in assets.”

Index vs Actively Managed Funds

Deciding on a mutual fund can be tricky. Data from Morningstar, published in 2018, indicates that the number of mutual funds and ETFs now stands at more than 10,000. You can begin to narrow this total down by exploring the differences between index funds and actively managed funds.

Index funds aim to track the performance of a specific market benchmark as closely as possible. The Vanguard 500 Index Fund is a prime example, with its holdings consisting of weighted positions in S&P 500 companies. Although investment firm Vanguard suggest that “only about 16 percent” of investments in domestic mutual funds are in index-based options, these funds have some noteworthy proponents.

In 2007, American business magnate Warren Buffett made a $1 million bet with Protégé Partners claiming that hedge funds wouldn’t outperform an S&P index fund, and he won. As reported by CNBC, Buffett’s choice investment, the Vanguard 500 Index Fund, “returned 7.1 percent compounded annually, while the basket of hedge funds his competitor chose returned an average of only 2.2 percent.”

Unlike index funds, actively managed funds rely on the skill and insight of their managers to not just match the performance of the larger markets, but beat them. History shows these funds to be considerably less consistent than their index-focused counterparts. According to Standard & Poor’s, roughly three-quarters of actively managed domestic stock funds underperformed the S&P 1500 Total Market Index in the decade ended June 30, 2015. Additionally, 40 percent of actively managed equity funds available to investors on June 30, 2005, were no longer in existence just 10 years later.

While exceptions do exist (Fidelity Blue Chip Growth has outperformed the S&P 500 by 2.8 percent over the past decade, for example), the upside and relative stability of index funds make them worthy of consideration for risk-averse investors.

Alternative Indexes

The upside of major indexes like the S&P 500 are apparent, but investing solely in the performance of the larger market can limit your exposure to faster-moving investment opportunities. Consider, for example, the cannabis industry. According to Marijuana Business Daily, legal cannabis sales in the U.S. alone were on pace to grow by nearly 50 percent in 2018 to $9.7 billion, with legal sales expected to rocket past $22 billion by 2022.

The Prime Alternative Harvest Index (“Prime”) gives fund-focused investors an opportunity to cash-in on the expanding repeal of cannabis prohibition without digging through the mountain of fly-by-night entries to the space. The Prime aims to take advantage of both event-driven news and long-term trends in the cannabis industry, as well as the industries likely to be influenced by the medicinal and recreational cannabis legalization initiatives that are taking shape in many forms around the globe. Utilizing a modified market cap weighting scheme, the index features some of the fledgling cannabis industry’s most recognizable names, including GW Pharmaceuticals (NASDAQ: GWPH), Cronos Group (NASDAQ: CRON) (TSX: CRON) and The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF), alongside a roster of established upstarts and ancillary companies defined by a set prospectus.

The Benefit of Exchange-Traded Funds

When investing in a fund based on a more fluid index like the Prime, the benefits of exchange-traded funds over more traditional mutual funds are particularly noteworthy. While traditional open-end mutual fund shares are only traded once per day, limiting your ability to capitalize on sudden market moves, ETFs are bought and sold during the day just like stocks, opening the door for short selling, futures and options.

ETFMG Alternative Harvest (ARCA: MJ) is an ETF that tracks the Prime in an effort to “measure the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational legalization initiatives.” To date, it is the first and only U.S. ETF to target the cannabis industry, providing direct exposure to the ongoing “green rush” taking place across North America and around the world.

The Alternative Harvest ETF turned its focus to the cannabis space in late 2017, shifting away from a prior basis of Latin American real estate to invest in both cannabis cultivation firms and a few outside operators that you may not expect to see in a cannabis-centric fund, such as Philip Morris International (NYSE: PM) and Scotts Miracle-Gro (NYSE: SMG).

Importantly, the ETF requires that all holdings have a minimum market cap of $200 million, giving investors a degree of insulation from the marijuana penny stocks and upstart companies that continue to flood the sector.

A Closer Look at the Alternative Harvest ETF

Since rebalancing its holdings to focus on the cannabis space, the Alternative Harvest ETF has established a strong position on the radars of investors eying the industry. In early January 2018, The Motley Fool issued a report stating that MJ was bought and sold more than the $145 billion iShares Core S&P 500 ETF, which the publication touted as a testament to “just how big [MJ] has become in marijuana stock circles.” In the year-plus since that report was issued, interest in the cannabis-focused ETF has remained strong, with current average trading volume exceeding 900,000.

Throughout the first two months of 2019, the sustained interest in MJ has been supported by its upward trajectory. Entering the year with a market price of $26.42, the fund’s YTD return clocks in north of 40 percent, with a market price of $37.43 during mid-day trading on March 5 that marked a new high for 2019.

This strong performance lines up nicely with the broader cannabis sector, which is supported by MJ’s current asset holdings. Canadian shares of The Green Organic Dutchman, for example, which currently represent 4.34 percent of MJ’s portfolio, are up more than 60 percent YTD. Similarly, U.S.-listed shares of Canopy Growth Corporation (TSX: WEED) (NYSE: CGC), which make up 7.16 percent of MJ’s current holdings, are up roughly 63 percent YTD. Canadian shares of OrganiGram Holdings Inc. (TSX.V: OGI) (OTCQX: OGRMF) make up 3.35 percent of MJ’s current holdings, and they’re up more than 60 percent YTD, as well.

The impressive YTD performance of MJ’s smaller holdings, including The Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF), Canopy Rivers Inc. (TSX.V: RIV) (OTC: CNPOF) and VIVO Cannabis Inc. (TSX.V: VIVO) (OTC: VVCIF), each of which makes up less than 1 percent of MJ’s current portfolio, continues to highlight the current opportunity presented by the North American cannabis industry. The Canadian shares of each of these companies are up more than 40 percent YTD.

After a turbulent 2018 for the cannabis industry, the first quarter of 2019 has shown incredible promise for established operators throughout the space. In early January, The Motley Fool forecast huge growth for a number of companies currently included on the Prime Alternative Harvest Index and held by MJ, including 407 percent sales growth for Aphria (NYSE: APHA) (TSX: APHA), 440 percent sales growth for The Supreme Cannabis Company, 891 percent sales growth for OrganiGram Holdings and 930 percent sales growth for cannabinoid drug maker GW Pharmaceuticals, whose shares currently represent 9.1 percent of MJ’s total holdings.

A Diversified Entry Point

It’s easy to be drawn to the cannabis sector for its promise of significant growth in the coming years, particularly as legalization measures continue to gain steam in the United States. However, choosing a winner in this nascent market has already proven to be both difficult and risky for investors of all skill levels. A proven way to avoid backing the wrong horse in this great green race is to diversify your investment, focusing more on the overall success of the industry than on that of any individual company or management team.

With more than 86 percent of its current holdings providing exposure to U.S. and Canadian markets and broad industry focuses spanning pharmaceuticals, tobacco and biotechnology, the Alternative Harvest ETF provides an intriguing and diversified entry point for investors seeking a foothold in the continued emergence of the legal cannabis industry.

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
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Editor@CannabisNewsWire.com

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

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

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

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

Savvy Companies Make Acquisition Moves in Booming Cannabis Industry

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

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

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

To view an infographic of this editorial, click here

Cannabis Companies Turn to Vertical Integration

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

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

Acquisitions for Growth

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

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

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

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

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

Field to Finish

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

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

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

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

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

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

An Industry Expanding

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

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

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

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

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

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

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

About CannabisNewsWire

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

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

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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.

Outside Investment, New Technology Support Growing Cannabis Industry

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

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

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

To view an infographic of this editorial, click here.

Finding Funds for Cannabis

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

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

But there have been exceptions.

A Better Deal for a Cannabis Company

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

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

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

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

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

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

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

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

Applying the Technology

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

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

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

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

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

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

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

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

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

A Crop of Cannabis Companies

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

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

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

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

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

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

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

About CannabisNewsWire

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

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

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

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

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

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

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

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

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

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

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

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

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

To view an infographic of this editorial, click here.

Injecting Growth into Product Portfolios

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

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

Joining Forces to Share, Build and Develop

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

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

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

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

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

Entering the CBD Product Market

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

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

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

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

A Global Market Worth $22 Billion by 2020

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

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

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

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

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

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

About CannabisNewsWire

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

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

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

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

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

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

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

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

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