CannabisNewsBreaks – technical420 Highlights Three Major US Cannabis Markets and Companies Focused on Opportunity

A recent editorial by Anthony Varrell on technical420 titled “3 Major US Markets Driving Headlines For the Cannabis Sector” reviews impressive growth for the cannabis industry despite considerable pressure since early 2019. The article focuses on three of the most significant cannabis markets in the U.S., as well as companies that are focused to capitalize on opportunity. Nevada is mentioned in the article as a tourism driven cannabis market and 1933 Industries (CSE: TGIF) (OTCQX: TGIFF), looking to show visible catalysts for growth. Also highlighted is California, the world’s largest cannabis market, and MedMen Enterprises (CSE: MMEN) (OTCQX: MMNFF), one of the best-known brands laser focused on the state’s cannabis retail opportunity, as well as Colorado, a massive market flying under the radar, and Pure Harvest Cannabis Group (OTCQB: PHCG), a company in the middle of a major expansion and focused on accreditive acquisitions in the state.

To view the full article, visit http://cnw.fm/zn5pZ

About technical420

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

About CannabisNewsWire

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

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Cannabis Companies Seek Strong Strategies to Meet Growing Demand

CannabisNewsWire Editorial Coverage: With demand outstripping supply, successful cannabis companies are following smart core strategies and reporting strong revenues.

Golden Developing Solutions Inc. (OTC: DVLP) (DVLP Profile) has used a mix of acquisitions, diverse brands and products, and increased production footprint to meet customer demand and report significant revenue increases, including its strongest second-quarter numbers ever. Industry giant Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) has followed a similar path, though some change may follow the recent departure of its co-CEO. Tilray Inc. (NASDAQ: TLRY) has invested heavily in increasing production while reaching into new markets such as the United Kingdom. Medmen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) and Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) have both shown the potential for growing multistate businesses in the United States, despite the challenges created by federal legislation.

Increasingly liberal laws have allowed demand to show in the legal market, but supply has not yet caught up.
To meet this demand, the industry needs to increase production.
Individual companies are using acquisitions and diversification to improve their revenues.

To view an infographic of this editorial, click here.

Expanding Business

The cannabis, hemp and CBD sector is experiencing a period of huge expansion. With medical cannabis now legal in 60% of U.S. states, recreational cannabis legal in many states as well as Canada, and hemp production legalized on a federal level, North America has become home to a thriving industry. What was relegated to illegal markets and fringe cases only 20 years ago is now the source of an economic boom.

In this brave new world of legal business, cannabis companies are looking for ways to maximize their profitability and ensure a strong position as the market keeps expanding. So what are the strategies bringing success for the growing cannabis companies, both big and small? And how are those strategies contributing to the development of the sector?

Expanding Production

For the companies working in this sector, such as Golden Developing Solutions Inc. (OTC: DVLP), their work in the space is producing strong growth and sales numbers. From March 2018 to March 2019, Golden Developing Solutions saw an 800% jump in performance. Further growth was announced in May, as the company went from strength to strength.

“As we projected, top-line performance is accelerating across all metrics following our recent investments,” said Triant. “Everything is clicking right now.”

For Golden Developing Solutions, some of its growth is coming by expanding production. With the cannabis industry being so new and tightly regulated, production is relatively limited. And with demand rising rapidly, especially for hemp-derived CBD, the industry is currently struggling to meet customers’ needs. This demand supports high prices but still means that producers are missing out on opportunities, as there is untapped potential in the market.

Golden Developing Solutions is just one of the companies expanding its production capacity in response to this trend. The expansion is a complex undertaking, as a hemp or cannabis production facility requires a specially adapted building, hydroponic equipment to grow the plants, security and other support facilities, and an appropriate license from the relevant local authority. When a new growing space is established, such as Golden Developing Solutions’ recently announced 25,000-square-foot facility in Denver, Colorado, it’s big news for both the company and the industry.

This move in Colorado by Golden Developing Solutions was a direct response to that gap between supply and demand. Already equipped with much of the equipment it needs, and with licensing in place to produce marijuana infused products, DVLP has identified an ideal space with promising potential.

“Our CBD Infusionz segment is bursting at the seams right now,” said CEO Stavros Triant. “Demand already vastly outstrips supply capacity. This new facility directly addresses that issue, and should provide the necessary room for the explosive growth that we anticipated when we made that acquisition in March.”

Acquisitions and Subsidiaries

Increasing production space is the only way for the industry as a whole to address supply shortages. But for individual companies, other options to increase their presence in the sector are available.

The past two years have seen a huge surge in acquisitions in the cannabis sector. These acquisitions have allowed companies to grow in size, resulting in increased supplies and sales. Though it doesn’t directly lead to an increase in overall supply, the benefits in scale and efficiency mean that, in the long term, this coming together of companies could lead to better supplies.

For Golden Developing Solutions, its most important recent acquisition has been Infusionz LLC, a manufacturer of CBD products. Completed in March, the acquisition gave Golden Developing Solutions control not just of Infusionz’s production base but also of its established brands and retail links. Building relationships with customers is a tricky business in an industry where licensing limits marketing options and where brand allegiances are just starting to form. Acquiring a brand for which demand already outstrips supply is invaluable.

This is a common pattern for mergers and acquisitions in the cannabis and CBD space. Though brands may be relatively small scale compared with other industries, they are often not folded into existing lines on acquisition. The benefits of experimenting with new brands and tapping into their customer base outweigh what might be gained by merging output to supply a smaller number of brands.

A More Diverse Approach

Infusionz isn’t the only subsidiary in Golden Developing Solutions’ armory. In addition to Where’s Weed, a core pillar of the company since 2011 connecting medical and recreational cannabis consumers with local dispensaries, delivery services, strains and more, the company is also focusing its attention on Where’s CBD.

Similar in nature, Where’s CBD is a new technology resource and future online marketplace connecting CBD consumers with local businesses, brands and educational content across the United States, helping people quickly find the right products for themselves or their loved ones.

Providing a powerful opportunity to capture both customers and purchasing data while providing distribution channels for brands, Where’s CBD is a diverse addition to the company that inherently adds more value to the overall ecosystem and foundation that has been built thus far.

By increasing production, acquiring smaller competitors, and diversifying their products and services, cannabis companies are becoming stronger than ever.

Among these strengthening companies is Canopy Growth Corporation (TSX: WEED) (NYSE: CGC). If any company can be considered an established giant in such a young industry, it’s Canopy Growth. Emerging from the Canadian market in 2013, Canopy Growth quickly rose in power off the back of the Canadian medical cannabis sector. As of April 2019, Canopy Growth was the largest cannabis company in the world as measured by market capitalization and showed no sign of faltering. Like Golden Developing solutions, it has followed the three main paths to growth in the sector, including diversifying its product line to suit a market that now includes recreational cannabis and CBD derivatives as well as medical cannabis. The recent departure of co-CEO Bruce Linton has caught observers by surprise but is unlikely to disrupt Canopy Growth’s ongoing rise.

Another of the big Canadian companies, Tilray Inc. (NASDAQ: TLRY) recently announced the investment of $32.6 million in expanding its cultivation and manufacturing facilities. The expansion work, taking place over three sites, will increase the company’s production and manufacturing footprint to 1.3 million square feet. The company’s growth includes reaching into new markets, with the recent announcement that it has exported bulk amounts of cannabis oil into the United Kingdom. The United Kingdom only allowed the use of cannabis oils recently — with stringent restrictions. Some expect this to become the thin end of the wedge, as many in the country would like to see cannabis rules liberalized, especially where the drug can meet medical needs. By being one of the first bulk providers in the country, Tilray could establish itself as an important name before the British market is even fully formed.

Of course, there’s still room for improvement in the legal situation in the United States, and Medmen Enterprises Inc. (OTCQX: MMNFF) (CSE: MMEN) has established itself as one of the largest financial supporters of progressive marijuana laws. The gap between federal laws and those in individual states is an ongoing problem for companies working in North America, making it hard to carry out cross-state operations. Despite this, Medmen has managed to establish a multistate business working across 19 facilities that, through a move into Arizona, bring business to five states.

Another U.S. company, Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) is a vertically integrated medical and wellness cannabis company whose strategic focus is specifically on areas where demand is most likely to go unmet. Working in states such as Florida, Massachusetts, New Jersey and New York, which are highly populated but have limited licensing, the company is bringing its products to customers who may struggle to get the cannabis and CBD derivatives they are looking for. Curaleaf has used acquisitions to help with this strategy, with the recent acquisitions of Emerald Dispensary.

By diversifying, increasing production and acquiring other companies, cannabis businesses are expanding to meet previously unmet demand.

For more information on Golden Developing Solutions, visit Golden Developing Solutions Inc. (OTC: DVLP)

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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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)

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Searching for the Next Super Nova

CannabisNewsWire Editorial Coverage: Skepticism has been squashed and all apprehension eliminated. There’s no longer any question about either the viability or the profitability of the newly respected cannabis sector. Huge money has already been made in the nascent industry, and the only real question left is: where’s the next super nova?

Quarter-over-quarter sales growth is one of the indicators used to target explosive upside potential. Similar growth patterns were exhibited by many of the cannabis behemoths prior to parabolic price increases. In what may be an equally telling indicator, Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) (WLDFF Profile) revenues have now increased 11 consecutive quarters, quarter on quarter, ever since the company started selling its hemp-based CBD products. Similar quarterly sales spikes and strategic acquisitions foreshadowed dramatic price increases in some of the largest names in the cannabis universe. Last October Medmen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) soared 60% in one week when the company announced a deal to buy PharmCann. Florida-based Trulieve Cannabis Corp. (OTC: TCNNF) (CSE: TRUL) went public last September through a reverse merger in Canada and soared 200% after a strong 2018 Q2. Already up big on Canadian exchanges, Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) became the first pure-play marijuana stock to list on NASDAQ around $7 and just bounced off $23 a share. Last year, Tilray Inc. (NASDAQ: TLRY) became the first cannabis company to IPO on the NASDAQ at $17 per share and by September skyrocketed to $300. Despite price surges and fluctuations in the big cannabis names, there’s bound to be more money made in the sector; the run is far from over.

Cannabis run is far from over, new winners emerging
Branding, marketing and retail reach signals of success
Quarter-over-quarter revenue increase helps identify future potential

To view an infographic of this editorial, click here.

Good Times Have Just Begun

Legal cannabis is a recent global phenomenon, and the emergent market appears to be nowhere near reaching its potential. The worldwide legal marijuana market, valued at just $9.3 billion in 2016, is expected to blow past $146 billion within the next six years.

According to a United Nations report, cannabis is the most widely consumed drug on the planet. Approximately 270 million global consumers use cannabis, equivalent to about 4% of the world’s population and a mere pittance in market penetration. As marijuana muscles into the mainstream, usage among all age groups is on the upswing. However, among the most coveted 18-to-34-year-old demographic, there’s an explosion of acceptance as they mature in a world where cannabis is common.

Millennials are about three times and Gen Z about four times more likely to use cannabis than aging Boomers. Forward-leaning cannabis companies are full throttle in product and brand development to corral this coveted demographic and capture market share, now and for decades to come. As public perceptions change and legalization expands, the number of users is certain to skyrocket in an essentially untapped market. A global transition is underway, and the good times for cannabis have just begun. Growth trajectory is virtually vertical, presenting a once-in-a-generation investment opportunity.

Retail Reach

Founded in 2012 as a private company, Wildflower Brands Inc. (CSE: SUN) (OTCQB: WLDFF) went public in 2014 and has been on a tear ever since. Wildflower is an integrated health-and-wellness company creating distinct brands that incorporate the synergistic effects of plants and their extracts. The company’s latest quarterly sales set records, up 78% over the previous quarter, validating corporate strategy, the popularity of its products, and the continued expansion of market share. Intent on supercharging revenue and earnings even further, Wildflower is about to finalize the acquisition of a preeminent cannabis retailer in Vancouver that also owns multiple cannabis licenses.

Wildflower’s latest press release is further evidence of the company’s rapid growth and global reach. The company reported third-quarter sales were up by 78% over the second quarter, the 11th consecutive quarter of revenue growth, since Wildflower Brands began selling products. On top of these stellar results the company is further expanding its retail footprint and product distribution with the accretive acquisition of Vancouver-based City Cannabis Corp.

City Cannabis is a premier cannabis retailer holding two of the three City of Vancouver licenses to sell cannabis and os the only company with multiple licenses in British Columbia. With margins of 50%, City Cannabis had revenues of $1.8 million for the reporting period that began with the opening of its two stores in early January. The combined quarterly revenues of Wildflower Brands and City Cannabis equates to an impressive $4.3 million. Wildflower expects to close on the City Cannabis deal before the end of June, and the acquisition will immediately be accretive to Wildflower’s earnings upon closing.

Bringing City Cannabis and Wildflower together will result in revenue operations in three U.S. states and two Canadian provinces with a combined North American target market of more than 75 million people. The positive net income generated by City Cannabis comes from just two operating properties, even though the company holds an additional seven leases at various stages of permitting approvals.

Commenting on the financials, Wildflower CEO William MacLean stated, “We are pleased with the financial results of both Wildflower and City Cannabis. Sales through every Wildflower distribution channel are up, and sales at City’s licensed retail outlets continue to grow month over month. The positive net income is particularly impressive with City Cannabis carrying a total of nine leases, which are at various stages of the permitting process.”

Grow, Grow, Grow

Already an established presence in California, Wildflower owns 14 cannabis licenses for recreational and medical cannabis cultivation, manufacturing, retail distribution and delivery. The company’s expansion into Canada with the acquisition of City Cannabis bolsters Wildflower’s global growth strategy, which is includes strategic distribution deals already in place in the European Union and South Africa. In addition to capturing revenues from retail operations, the City acquisition gives Wildflower another channel to market its enormously popular products and launch into the over-the-counter market with its CBD formulations and accessories.

Wildflower continues to capture ever-greater market share with innovation, retail expansion and a growing family of popular brands. The company’s strategic partnerships, acquisitions and organic growth are all bolstered by its marketing genius to lock in more loyal consumers. Grabbing national and celebrity attention, Wildflower used ingenious product placement during the 2019 Oscars by including its CBD+ Healing Stick in each of the gift bags of the stars.

The company has also employed an innovative pop-up store approach in SoHo, New York, to introduce Wildflower Wellness products. Wildflower identified a compatible high-profile retail venue and struck a deal with the outlet, then marketed its products in the upscale establishment for a limited time period, raising market uptake and visibility.

Big Names

Medmen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) is a cannabis retailer with operations across the United States and flagship stores in Los Angeles, Las Vegas and New York. Company objectives are to capitalize on first-mover advantage by opening stores in top markets and building brand awareness and customer acquisition. The company is also intent on expanding retail footprint and creating an omnichannel consumer experience.

Trulieve Cannabis Corp (OTC: TCNNF) (CSE: TRUL) is a vertically integrated, seed-to-sale company and is the first and largest fully licensed medical-cannabis company in Florida. Trulieve cultivates and produces all of its products in-house and distributes those products to Trulieve-branded stores (dispensaries) throughout the state, as well as directly to patients via home delivery. Trulieve also operates in California, Massachusetts and Connecticut.

Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) is a global cannabinoid company with international production and distribution across five continents. Cronos Group is committed to building disruptive intellectual property by advancing cannabis research, technology and product development. The company is committed to responsibly elevate the consumer experience and is building an iconic brand portfolio.

Tilray Inc. (NASDAQ: TLRY) is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids. The company currently serves tens of thousands of patients and consumers in 12 countries spanning 5 continents. Tilray was the first licensed producer of medical cannabis in the world to have its facility Good Manufacturing Practices (GMP) certified in accordance with European Medicine Agency (EMA) standards.

The cannabis markets have already produced some amazing profits, but all indications are the industry is only at the beginning of an amazing ascent. There’s little doubt that a plethora of new winners will be created in the burgeoning sector. When searching for the next super nova, Wildflower Brands is certainly one to watch.

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

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The Cannabis Bonanza Has Just Begun

CannabisNewsWire Editorial Coverage: The cannabis industry presents a rare opportunity to profit from spectacular growth in a virtually untapped market.

Legal marijuana market projected to reach $146.4 billion.
United States and Canada current epicenter of cannabis growth.
Brand recognition and retail reach imperative for market share.

Capturing market share and creating long-term success in this explosive market will require brand recognition and retail reach. Shortly after posting its tenth consecutive quarter of increased revenues, Wildflower Brands Inc. (OTCQB: WLDFF) (CSE: SUN) (WLDFF Profile) announced intentions to further expand its footprint with the acquisition of premier licensed cannabis retailer, City Cannabis Corp. A finalized accretive acquisition will add significant revenues to Wildflower, providing access to several valuable cannabis licenses in lucrative premium locations. Other companies in the sector are looking to grow in the market through other promising ways. Tilray Inc. (NASDAQ: TLRY) recently acquired Natura Naturals Holdings, boosting capacity to supply cannabis products across Canada. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) bought hemp company AgriNextUSA to accelerate entry into key American jurisdictions. Medmen Enterprises Inc. (OTCQX: MMNFF) (CSE: MMEN) announced the purchase of two vertically integrated operations, which include retail locations and 25,000 square feet of cultivation and production capacity. And only two weeks ago, Curaleaf Holdings Inc. (OTCQX: CURLF) (CSE: CURA) completed the acquisition of Eureka to provide access to California’s wholesale market through a large greenhouse facility.

To view an infographic of this editorial, click here.

Market Frenzy

The sweeping growth of the cannabis industry is rooted at least in part from a groundswell of public support that has turned into a tidal wave of acceptance. Fifteen years ago, only a third of Americans supported federal legalization of marijuana. About two-thirds of Americans now support legalization, up from only 54% two years ago. Among adults under age 35, a whopping 85% favor federal legalization. The movement gained so much momentum so fast that the industry is scrambling to keep up. As the cannabis industry and markets mature, acquisition and consolidation deals appear to be all but certain.

The global legal marijuana market, valued at $9.3 billion in 2016, is expected to reach $146.4 billion by the end of 2025, an incredible 16-fold increase over nine years. Legal cannabis markets are still a relatively new phenomenon, and the market is nowhere near its total sales potential. An estimated 272 million global consumers use cannabis, equivalent to only about 4% of the world’s population. Growth trajectory is virtually vertical. Perhaps nowhere is this hyper-growth more spectacular than North America. Wall Street’s top cannabis analyst forecasts the U.S. market to grow to $80 billion by 2030 assuming national availability.

B.C. Center of Boom

Cannabis demand is even greater north of the border. The industry has been struggling with cannabis supply shortages ever since recreational cannabis was legalized across Canada. The country’s westernmost province, British Columbia, is no exception. The B.C. market registered a little over CA$19 million in legal cannabis sales in 2018, but that number is expected to explode to CA$722 million in annual sales by 2024 — a mind-boggling 37-fold increase over six years.

Pegged to soar nearly 3,700% in the next six years, British Columbia is ground zero for cannabis growth. Headquartered at the epicenter of this upsurge, Wildflower Brands Inc. (OTCQB: WLDFF) (CSE: SUN) has already staked out an enviable market position and is further expanding its retail footprint and product distribution in the province. The company recently announced that it intends to acquire City Cannabis Corp. in an all-stock deal.

Holding two of the three City of Vancouver licenses to sell cannabis, City Cannabis is a premier cannabis retailer and the only company with multiple licenses in British Columbia. The Letter of Intent looks to solidify Wildflower’s position as a high-profile retail outlet of premium brands generating millions in revenues right in the heart of the B.C. cannabis boom.

“City Cannabis and Wildflower are the perfect combination of premier products and a premier consumer retail experience,” said Wildflower CEO William MacLean. “City Cannabis’ retail consumer data and insight will help shape development of Wildflower’s product line-up while the retail expertise of City Cannabis will aid Wildflower in its retail expansion. The combination of Wildflower and City Cannabis will form a truly global cannabis company.”

Born in British Columbia, Wildflower now has a retail reach that extends from Vancouver to Los Angeles and New York. Established in 2012, Wildflower Brands is constantly expanding development, design, marketing and retail distribution of its branded products in the cannabis sector. The company launched into Washington State in 2016 and has been on a tear ever since.

Creating a Global Brand

Today Wildflower now markets its distinctive CBD+ products to more than 300 retailers in the health and wellness space and operates in regulated cannabis markets throughout North America in accordance with jurisdictional regulations for THC and CBD+ products. Wildflower’s unique and holistic products are developed and manufactured at the company’s U.S.-based GMP facilities, tested by a third-party lab and backed by a 100%-satisfaction guarantee.

Each Wildflower product is synergistically formulated to create a unified global wellness brand. For example, Wildflower’s highly recognized Wildflower Wellness brand offers a broad array of hemp-based, full-spectrum, CBD-infused products from vaporizers and capsules to tinctures, soaps and topicals.

The company’s King Recharge is on the cutting edge of cannabis technology and delivery systems with its King Extracts, a sleek, rechargeable vaporizer offering five popular CBD strains and a unique pocket-sized charging and storage case.

Closely associated with select hospital oncology departments, Exclusive is Wildflower’s Los Angeles-based dispensary of premium cannabis products. Wildflower already owns 14 cannabis licenses in California for recreational and medical cannabis cultivation, manufacturing, distribution, retail and delivery. Activating all these licenses could be a jackpot for the company, driving revenues while minimizing risk.

Expansion into Canada with the acquisition of City Cannabis is the next step in Wildflower’s global strategy. The thriving retail outlet, with licenses for several more locations, provides Wildflower with a high-profile presence in what may be one of the greatest growth markets in the world. Wildflower plans to market its enormously successful products through the outlet and launch into the over-the-counter market with its CBD formulations and accessories.

An Expanding Footprint

Wildflower’s U.S. footprint currently encompasses more than 200 retailers in Washington state and more than 20 retailers in New York City. The company partnered with Retail Worx to establish shop-in-shop retail locations in the nucleus of New York and open its first Wildflower by Bridges General store.

The obvious next step for Wildflower in this partnership is a rollout into other Bridges General’s stores in New York City and San Francisco. Retail distribution in other major U.S. markets includes over 80 wellness and healthcare practitioners and an army of retail stores nationwide numbering more than 300. Wildflower is aggressively expanding both brand recognition and retail reach.

Wildflower continues to capture ever-greater market share with innovation, retail expansion and its growing family of popular brands. The company’s strategic partnerships, acquisitions and organic growth are all bolstered by the company’s marketing genius focused on locking in loyal consumers.

Grabbing national and celebrity attention, Wildflower used ingenious product placement during the 2019 Oscars by including its CBD+ Healing Stick in each of the gift bags of the stars, and Hollywood is embracing the product.

But Wildflower didn’t stop with the stars. To expand exposure into a new target audience, Wildflower launched an infomercial campaign in Phoenix promoting the company’s Wellness’ Cool Stick. And across the country, the company has employed an innovative pop-up store technique in SoHo, New York, to introduce its Wildflower Wellness products. To make this happen, Wildflower identified a compatible high-profile retail venue and struck a deal with the outlet, then marketed its products with fanfare in the upscale establishment for a limited time period, raising market uptake and visibility.

Wildflower is on a mission to create a global cannabis enterprise. With such rapid expansion of brand recognition and retail distribution, Wildflower is carving out its slice of the cannabis bonanza.

Buying Up Cannabis

And Wildflower isn’t alone in focusing on the booming cannabis business. Several market leaders have announced recent moves designed to strengthen their positions in the sector.

Tilray Inc. (NASDAQ: TLRY), a global leader in cannabis research, cultivation and distribution, has announced the closing of a definitive agreement to acquire all of the issued and outstanding securities of Natura Naturals Holdings Inc., the parent company of a licensed cultivator of cannabis. The acquisition boosts the company’s capacity to supply cannabis products across Canada. Natura’s facility will be renamed High Park Gardens and be used as an additional cultivation facility to serve the medical and adult-use market in Canada.

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) acquired AgriNextUSA. The acquisition will accelerate Canopy Growth’s entry into key American jurisdictions. “The United States is the next stop on Canopy Growth’s desired path to becoming a leading, revenue-generating company focused on all aspects of cannabinoids and their potential,” said Bruce Linton, co-CEO and Chairman of Canopy Growth.

Medmen Enterprises Inc. (OTCQX: MMNFF) (CSE: MMEN) recently purchased two vertically integrated operations, which include both retail locations and 25,000 square feet of cultivation and production capacity. The company paid a combination of cash and stock valued at an aggregate of $33.5 million. With the closing of the acquisitions, MedMen will be licensed for three medical-use cannabis dispensaries in Arizona.

Curaleaf Holdings Inc. (OTCQX: CURLF) (CSE: CURA) completed the acquisition of Eureka, which operates a cultivation facility that is developing three dispensaries across California. Curaleaf has the largest footprint of single-branded retail stores in the United States. “The acquisition of Eureka cements our foundation in California and positions us well in the largest cannabis consumption market in the U.S.,” said Joseph Lusardi, CEO of Curaleaf.

Some have called the cannabis bonanza a once-in-a-generation opportunity and predict that this is simply the start of a decade-long cannabis bull market that’s only just begun. All indications suggest those predictions may be correct.

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

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Savvy Companies Seizing Opportunities in Growing Cannabis Market

CannabisNewsWire Editorial Coverage: As the cannabis industry expands, companies are eyeing strategic opportunities in the sector designed to help them establish a foothold in the promising space.

Cannabis and related products are legal in Canada and an increasing number of states.
Businesses have responded with a growing range of diverse products.
Companies making the smartest investments, including carefully selected mergers and acquisitions, are in the best position to profit.

SinglePoint Inc. (OTCQB: SING) (SING Profile) has invested in a number of other cannabis companies to grow its portfolio and leverage its position in the market. Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) just signed of letter of intent with Malta Enterprises, the economic development agency of Malta. MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) recently wrapped up its previously announced acquisition of Kannaboost Technology Inc. and CSI Solutions LLC, two vertically integrated Arizona-based operations. Charlotte’s Web Holdings Inc. (OTCQX: CWBHF) (CSE: CWEB) reported more than 10 times growth in harvested hemp compared to its 2017 grow season. And Curaleaf Holdings Inc. (OTCQX: CURLF) (CSE: CURA) has signed a definitive agreement to acquire Eureka Investment Partners LLC.

To view an infographic of this editorial, click here.

A Big Year for Big Investment in Cannabis

In only a few short weeks, this year is shaping up to be an important year in the cannabis market. The legal groundwork for industry changes was laid last year, with milestone legislation being passed in Canada, the United States and elsewhere. With legal regulations in place, new opportunities for the market to grow and for companies to make strategic moves within the sector have become more frequent — and appear to be more profitable.

This upward movement is fueling the ongoing development of two important trends: The first one is product diversification, as cannabis companies and the businesses supporting them develop a wider range of products for an increasingly varied market. The second one is big investment, as both outside businesses and larger cannabis companies move to create a presence in the market. Money is flowing in, making the most of the opportunities that legal and product changes provide.

A Changing Global Context

This year’s promise is rooted in last year’s significant growth and impressive forecast. SinglePoint Inc. (OTCQB: SING), a young tech company that has moved into the cannabis sector, saw its revenue hit the $1 million mark. In addition, like many cannabis companies, the company ended the year with even better things on the horizon, including a prediction that revenue should dramatically increase over the next 12 months.

Making such claims in a relatively untried sector may seem bold, but closer scrutiny reveals why such predictions appear to be solid.

To begin with, the changing attitude of lawmakers to cannabis has been crucial to the industry’s forward momentum. The prohibitory model for managing the drug that has dominated for half a century is increasingly recognized as not just ineffective but harmful to public health. As a result, governments are legalizing cannabis for medical use and are even creating regulated markets for recreational cannabis. This is especially true in Canada, where the trade became legal countrywide last October.

For American companies such as SinglePoint, progress has come on a state-by-state basis. Though the majority of Americans favor legalization, the federal government has been slow to follow what appears to be a nationwide attitude. Instead, individual states have created legal markets, with Michigan becoming one of the most recent with cannabis legalization taking place there in December. Two-thirds of U.S. states now allow medical cannabis, and one in five have legalized its recreational use; more are expected to follow suit in the near future. This swing in attitude — and government support — has allowed SinglePoint to begin investing in cannabis without having to consider a national cannabis business.

The end of the year saw a significant step towards wider legalization. Following months of wrangling, the 2018 Farm Bill was passed making industrial hemp legal on the federal level. This nonpsychoactive from of cannabis has provided many companies, including SinglePoint, with an important entry point into the sector, as the chemical cannabidiol (CBD), which can be derived from hemp, can be more widely sold than other forms of cannabis. CBD’s impressive popularity has provided a further boost to the sector, especially to companies entering the industry with CBD offerings.

Undoubtedly, the Farm Bill is set to allow cannabis businesses to grow significantly through hemp and provide a precedent as federal politicians reconsider the wider cannabis industry.

Product Diversification

Now that companies have identified CBD as a promising step into the market, they are doing what they do best — finding new ways to sell their products and services. This has led to a wave of innovation and an increasingly diverse range of cannabis-based products.

Two of the biggest areas for innovation are the creation of confectionaries and beauty products. The former offers a way to consume cannabis without inhaling it. The latter appears to be a natural fit given the suggested well-being benefits of CBD and THC, along with the willingness of customers to try new plant-based beauty products. But innovative companies aren’t stopping there, with options such as Phyto-Bites, a product SinglePoint distributes on its website SingleSeed.com, designed to improve the health and well-being of pets.

Human health and well-being remain a huge driver for innovation in cannabis. Aware of that, SinglePoint has also been adding health and wellness products to its sales lines. Its SingleSeed store recently unveiled a range of TorusMed Hemp CBD products to its offerings. The new products include treatments such as Sport Relief Topical Cream, an ointment designed to provide pain relief for professional and amateur athletes.

Smart Investing in the Cannabis Sector

The growth of the cannabis sector has not occurred without a few bumps along the way. Companies are operating in a space that didn’t even exist 20 years ago, and the sector is evolving quickly, with the last few years triggering a wave of consolidation. In a fast-changing market, challenges are expected, and the ability to meet such challenges successfully is essential to a company’s success.

The secret to smart investing in this new space is the same as for any sector: research, understand the businesses being invested in, identify a plan and execute it. Understanding the specifics of the cannabis market is critical, and the trend within the industry most recently has been mergers and acquisitions, as companies such as SinglePoint have expanded through investment in promising companies that provide products and services that will complement and support its strategy.

SinglePoint’s most recent investment has been in TorusMed, a company developing new ways to optimize CBD output from hemp and, consequently, increase the profitability of this piece of the cannabis sector. With the Farm Bill pointing to hemp creating a new boom in the industry, SinglePoint has used its understanding of the market to invest in a company that appears to offer great potential to make the most of this moment.

Moves such as this can put a company in a strong position heading into what may be the biggest year yet for cannabis. “[This year] will be a banner year for SinglePoint,” said SinglePoint CEO Greg Lambrecht. “We are equipped with the proper funding, partners and opportunities to be firing on all cylinders. We as a team expect to position SingleSeed and SinglePoint as market leads in the CBD market while continuing to enable the founders of the companies we have acquired to grow their businesses. We are well diversified and have large opportunities across many emerging markets that should enable us to be successful into 2019 and beyond.”

New Year, Fresh Growth

The move for Supreme Cannabis Company Inc. (TSX: FIRE) (OTCQX: SPRWF) to partner with Malta Enterprises is the company’s first step to obtain a Cannabis Production License in the country. The license would allow Supreme to produce and process cannabis for medical use within Malta, one of Europe’s principal commercial entry points, and to export cannabis for medical use to certain international markets.

MedMen Enterprises Inc.’s (CSE: MMEN) (OTCQX: MMNFF) acquisition of Kannaboost Technology and CSI Solutions LLC includes retail locations in Scottsdale and Tempe, as well as 25,000 square feet of cultivation and production capacity in Tempe and Phoenix. The acquisition also includes a 40-percent stake in top-selling brand K.I.N.D. Concentrates, which is currently distributed in more than 90 percent of Arizona dispensaries.

Charlotte’s Web Holdings Inc. (OTCQX: CWBHF) (CSE: CWEB) claims the No. 1 position in market share in the hemp CBD market, with its products sold in 3,680 retail locations as well as on its website. Charlotte’s Web had 300 acres of hemp planted in 2018 compared with only 70 acres in 2017, resulting in a harvest of 675,000 pounds of hemp last year. The legalization of hemp in the U.S. should open the doors for Charlotte’s Web to expand its retail opportunities with national chains.

Curaleaf Holdings Inc.’s (OTCQX: CURLF) (CSE: CURA) definitive agreement to acquire Eureka Investment Partners will provide access to California’s wholesale market through an existing 110,000-square-foot greenhouse facility in Salinas, California, with the potential to expand up to 270,000 square feet, which could generate more than 50,000 pounds of dry flower per year at full scale. Headquartered in Massachusetts, Curaleaf has a presence in 12 states, owns and operates 42 dispensaries, 12 cultivation sites and 10 processing sites with a focus on highly populated, limited-license states including Florida, Massachusetts, New Jersey and New York.

Legal changes are encouraging an increasingly diverse cannabis market, in which companies that make smart investments are primed for profit.

For more information on SinglePoint, visit SinglePoint Inc. (OTCQB: SING)

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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)

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US President, Producers Envision ‘Green Acres’ with Signing of Historic Hemp-Legalizing Farm Bill

CannabisNewsWire Editorial Coverage: Moments prior to signing a historic 2018 Farm Bill and effectively legalizing industrial hemp, President Donald Trump tweeted out a video of his performance at the 2005 Emmy Awards, singing the song “Green Acres.” Having already passed through the House of Representatives and the Senate, the bill was met with much fanfare across nearly the entire cannabis sector, including benefactors such as Green Growth Brands (CSE: GGB) (OTCQB: GGBXF) (GGB Profile), Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Harvest Health and Recreation (CSE: HARV) and MedMen Enterprises Inc. (CSE: MMEN) (OTC: MMNFF).

To view an infographic of this editorial, click here.

Trump’s signature was the last hurdle for the $867 billion bill. Now the market is gearing up for the massive potential of hemp-derived cannabinoids hitting stores. Among the benefactors of the passage is Green Growth Brands (CSE: GGB) (OTCQB: GGBXF), whose goal it is to become the leading retailer of cannabis and CBD products in North America. Under its Seventh Sense brand, the company is about to market its own line of hemp-derived cannabidiol (CBD) personal care products.

Back in September 2018, the market research firm Brightfield Group published a 2018 market overview and analysis on hemp-derived CBD. Among the observations made in the report was the possibility that the CBD market could eclipse the cannabis market. Less than three months after the report’s release, the Farm Bill’s passage significantly improved this possibility.

According to the Brightfield Group’s analysis, the CBD market is expected to annually grow by 147 percent, from $591 million in 2018 to an estimated $22 billion by 2022.

A ‘Monumental Policy Shift’

Upon the passing of the bill on December 20, 2018, the cannabis retail innovators at Green Growth Brands saw the timing as nearly perfect for their company. Having passed just ahead of the launch of its hemp-derived CBD personal care product line under the Seventh Sense brand, Green Growth Brands announced its goal to become North America’s leading retailer of cannabis and CBD products.

“The new bill is a significant step in America’s acceptance of CBD and the benefits it can provide consumers,” said Peter Horvath, CEO of Green Growth Brands, in the company’s corresponding press release. “This development dramatically accelerates our ability to grow our North American retail network. This piece of legislation provides clarity on how we can build out our operations and logistics, reassures those investing with us in this new, exciting industry and gets us closer to the ultimate goal of giving customers high-quality, CBD-infused personal care products at affordable prices.”

According to an AMA (Ask Me Anything) interview, Horvath expressed his excitement over the company’s current selling of test quantities of the Seventh Sense CBD brand in a couple of national retailers’ stores already. “The selling is surprisingly good for products in the personal care category, exceeding our sell-through expectations,” said Horvath. “These are products never before seen, in a brand that’s totally new, and without any marketing.”

Green Growth Brands expects to roll out bulk orders for the product in 2019 and will announce the wholesale partners it is working with when appropriate. Already the expectation is for the launch of a web store and CBD kiosks, which Horvath deems are a “category killer,” in February 2019.

The company expects to derive up to 39 percent of its annual revenues from the CBD segment in 2019, with the potential for that figure to rise to 43 percent by 2021. Current company estimates place the dollar figure of the annual revenue from this segment at roughly $59 million for fiscal year 2019.

Due to Green Growth Brand’s overwhelming amount of c-level retail sector experience, Horvath and his team have a healthy degree of authority on their expectations. The company roll call includes expertise from several household names, including Victoria’s Secret, Designer Shoe Warehouse, American Eagle Outfitters, Bath & Body Works and more.

Branding is a quintessential aspect of Green Growth Brands’ future success. The team’s strategy is focused around being the best brand, coming from what it calls an “emotional brand” perspective. The company has an array of brands — including Camp, Meri+Jayne, Seventh Sense and Green Lily — all of which will be utilized for both CBD and cannabis purposes.

To move its CBD products to market, the company will have three separate strategies: wholesale, e-commerce and kiosks. The latter strategy is an indication of Horvath and his team’s extensive retail knowledge, as they work to grow their brand. Kiosks help to reduce leasing costs for retail exposure while selling brand-specific emotional brands at a relatively inexpensive price. One executive on the team had significant success with this strategy as a former executive of Sunglasses Hut.

By the end of 2019, Horvath’s company expects to have approximately 1,400 SKUs on the market. Should it reach this goal, Green Growth Brands would have a strong case for dominating the CBD products market. The timely passing of the 2018 Farm Bill may only serve to speed up the process.

Additional Benefactors of the Hemp Bill

Prior to the final signing of the Farm Bill, Canadian cannabis company Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) grabbed headlines by entering into a subscription agreement with tobacco company Altria Group, Inc. Altria agreed to make an equity investment in Cronos of approximately $2.4 billion. The strategic partnership provides Cronos Group with additional financial resources, product development and commercialization capabilities. Cronos is one of the few Canadian producers listed on a major U.S. exchange, while not having any current operations in the country.

Another company that’s been keeping its eye on U.S. regulatory changes is Canopy Growth Corporation (NYSE: CGC) (TSX: WEED). The company wasted no time in commending the passing of the Farm Bill by announcing that “Canopy Growth will participate in the American market now that there is a clear federally permissible path to the market. Consistent with the spirit of the Farm Bill, Canopy Growth will participate in ways that support American farmers.” Canopy already has a deep hemp-specific portfolio of intellectual property through a previous acquisition of Colorado-based ebbu, Inc. In addition, much speculation has surrounded the potential for the company’s ongoing partnership with Constellation Brands to develop new cannabinoid-infused products, which will likely include a line (or multiple lines) of CBD drinks.

Following the closing of a reverse takeover of RockBridge Resources, Inc., vertically integrated Harvest Health & Recreation (CSE: HARV) announced the acquisition of Colorado-based CBx Enterprises, a producer of cannabis products and technologies for extraction and processing. Harvest’s footprint spans across 10 states, including California, Colorado and Massachusetts. The company reported revenue of $29 million in 2017 and has made $18 million in investments resulting in 40 permits and licenses across the United States. Having focused its attention solely in the United States, Harvest has no immediate plans for international expansion. With each regulation change in the Farm Bill, the company’s fortune appears to look brighter.

However, the Farm Bill’s passing may not please companies solely focused on the dispensary side of the sector. After already going through a rigorous process to be licensed in the states that it operates in, groups such as MedMen Enterprises, Inc. (CSE: MMEN) (OTCQX: MMNFF) gained exclusivity to carry and sell legalized cannabis products. Upon hemp-derived CBD becoming legal and available, the door to more open competition in the space could open widely. MedMen doesn’t seem to be fazed by the passing, having recently announced the finalization of the acquisition of Chicago-based PharmaCann, one of the largest medical cannabis providers in the United States, with ten retail stores and three production facilities across multiple states.

Whether or not federal legalization is in the cards for the United States is up in the air. However, the unfettering of CBD could be seen as the first step. Now with the anti-cannabis stance of former Attorney General Jeff Sessions out of the way, the path to legalization starts to get a little bit clearer. With the majority of Americans, including Republicans, now in favor of legalization and a bevy of CBD-infused products on the way, the days of cannabis prohibition may be on their way out. With a soon-to-be-launched line of hemp-derived cannabidiol (CBD) personal care products, Green Growth Brands is poised to enter the potential billion-dollar CBD market opened up by the Farm Bill’s passage.

For more information on Green Growth Brands, visit Green Growth Brands (CSE: GGB) (OTCQB: GGBXF). Please also visit PotStockNews.com.

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Booming Cannabis Consumables Space Continues to see Product Innovations

CannabisNewsWire Editorial Coverage: The North American Marijuana Index of leading cannabis stocks continues to hold onto the 250 range that it meteorically climbed into at the start of the year.

Growing acceptance of cannabis is setting the stage for a consumable cannabis boom.
Major companies have begun to throw their hats into the ring.
North America is steadily headed towards broad legalization.

Canada is legalizing cannabis across the board, Mexico is fast-tracking legalization, and industrial hemp appears to be headed for legalization in the United States thanks to landslide approval in the Senate (86 to 11) of its version of the new hemp-friendly Farm Bill. Prospects of a shift in the reluctant attitude of the House as Democrats prepare to take majority there have also had a positive impact. The global cannabis market is on track to hit $146.4 billion by the end of 2025, and the industry hasn’t even seen the first real breakout commercial product in the fastest-growing CBD (cannabidiol) and beverages/edibles markets. Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) (LXRP Profile) is a contender for that recognition with bio-absorption-enhancing technology and a growing line of hemp oil CBD products. GW Pharmaceuticals Plc (NASDAQ: GWPH) continues to be the leading name in cannabinoid prescription medicines with its FDA-approved, oral CBD anti-seizure solution, Epidiolex. WeedMD Inc. (OTCQX: WDDMF) (TSX.V: WMD) ranks as one of the top licensed Canadian producers, with a multichanneled distribution strategy and 70,000 square feet of production space already online. HEXO Corp. (OTC: HYYDF) (TSX: HEXO) is another Canadian producer with a track record for low-cost production that currently has around 310,000 square feet of space with plans to tack on a whopping 1 million square feet by the end of the year. Los Angeles-based MedMen Enterprises, Inc. (OTCQX: MMNFF) (CSE: MMEN) is a rapidly expanding U.S. cannabis company with 19 licensed facilities in four key states representing both cultivation and dispensaries.

To view an infographic of this editorial, click here.

Cannabis-Infused Consumables Primed to Explode

Cannabis-infused beverages saw 88 percent growth in sales from 2016 to 2017, according to analyst Flowhub, and that benchmark is likely to be met or surpassed this year. CBD and the widely known psychoactive cannabinoid THC (tetrahydrocannabinol) are finding their way into alcoholic beverages as decades-old cannabis prohibition slowly retreats ahead of growing consumer confidence about the safety of medical cannabis and recreational marijuana use.

With huge new markets opening up across North America, the potential for cultivators appears to be almost unlimited. Even in places where recreational-use legalization may be a long shot, typically some form of medical access already exists. With baseline metrics such as these, it is little wonder that the North American cannabis market alone was recently projected to hit $41 billion this year, before climbing to $95 billion in 2026.

Bioavailability Tech Could Be Game-Changer

Because of the way the body metabolizes ingested cannabinoids, edibles traditionally are understood to act slowly, taking one to two hours to kick in. Comparatively poorer absorption by the gastrointestinal tract prompts many consumers to pursue more dangerous methods of consumption, such as smoking, in order to achieve the desired effectiveness more rapidly. Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) has developed a proprietary lipophilic enhancement technology to bypass this problem, achieving bio-absorption rate increases 10 times greater than other products while slashing the effect onset time from hours to under 20 minutes.

Lexaria’s proprietary technology is patent protected for CBD and other nonpsychoactive cannabinoids and has patents pending for THC, other psychoactive cannabinoids, NSAIDs (non-steroidal anti-inflammatory drugs), nicotine and other molecules. Essentially a B2B, Lexaria is in an enviable position amid the rise of cannabis edibles ranging from recreational drinks to CBD-based nutraceuticals, with a key piece of technology that the company can out-license to third-party partners. Moreover, the company’s proprietary technology may mask undesirable tastes, eliminating the need for sugar-filled edibles, and may actually allow cannabinoids to bypass being broken down by the liver if desired.

Established Presence, Superior Tech—A One-Two Knockout Punch

Lexaria also already has a considerable, established presence in the edibles space, with brands such as the company’s ViPova line of CBD-infused coffee, tea and hot chocolate. The company has seen success since 2014 with beverages such as its original Yunnan Black Tea, which contains 50 mg of Multi Scandinavian full-spectrum hemp oil per serving. These beverages lack the typical oily residue found in most CBD-infused drinks and have virtually no cannabis odor or flavor.

At the low cost of only 2 cents per milligram ($1.25 per serving), the company’s delicious ViPova teas, which come in a variety of flavors including Earl Grey and Herbal Masala Chai, are a testament to Lexaria’s ability to deliver high-value beverages to the cannabis market. The increased bioavailability of the CBD in these beverages, thanks to the company’s proprietary technology, combined with the low per-unit price, represents an incredible value that consumers are noticing. Also, Lexaria’s product mix currently includes the company’s branded Lexaria Energy Foods as well as TurboCBD supplements.

Bottles and Cans Giving Way to Packets of Powder

Capitalizing on its bioavailability-enhancing technology and established presence as a CBD-infused product developer, Lexaria has now moved to tackle the U.S. soft drinks market, which is expected to be worth $388 billion-plus by 2025, introducing a discreet, single-serving foil packet cannabinoid drink powder named ChrgD+. Lexaria is confident that a small two-gram foil packet that can be discreetly carried in a shirt pocket or purse for incorporation into a beverage will be a big hit. After all, consumers can’t show up at their kid’s soccer game with a can of soda whose branding announces “cannabis” to everyone in view.

The multi-spectrum cannabinoid portable drink powder ChrgD+ can turn any drink into a CBD-infused beverage, including wine or cocktails. While currently only available in a CBD-from-hemp version, Lexaria is in talks with cannabis companies to realize its objective of deploying a THC version of the powder.

Powdered single-serving packets of consumers’ favorite drinks have exploded in popularity during recent years as an increasing number of beverage makers are opting to give consumers the convenience of mixing their own drinks from flavor packets containing the rich, distinct flavor profiles of brands they have come to know and love. The same thing is now happening in CBD drinks, and Lexaria may possess some distinct advantages over the competition.

All Kinds of Consumables

CBD and THC appear to be rapidly making their way into all kinds of consumables. The industry’s reputation continues to be improved in the eyes of consumers due to advancing breakthroughs in cannabinoid medicines used to treat everything from epileptic seizures to inflammatory bowel disease.

GW Pharmaceuticals Plc (NASDAQ: GWPH) broke the blockade in cannabinoid medicines with the highly purified, plant-derived CBD indication Epidiolex, which is available in the United States as of November 2018 for the treatment of seizures associated with severe forms of epilepsy. This one company has arguably done more than any other to improve public perception of the cannabis sector, specifically medical cannabis. The company is not resting on its laurels either, following up the availability of Epidiolex via physician prescription with a patient support program designed to help Epidiolex users obtain access to therapy.

WeedMD Inc. (OTCQX: WDDMF) (TSX.V: WMD) moved recently to exploit its position as a leading federally licensed Canadian producer and distributor by executing a pivotal, exclusive development agreement with Montreal-based pharmaceuticals, natural health products and cosmetics developer Smart Medicines GMP. The partnership maps out a comprehensive five-year development plan, including ramping up the operational capabilities of Smart Medicines’ 10,000-square-foot, state-of-the-art Montreal laboratory. WeedMD also recently signed a multiyear retail sales distribution agreement with Lifford Cannabis Solutions, which specializes in helping cannabis companies advance their products through control boards to retail.

HEXO Corp. (OTC: HYYDF) (TSX: HEXO), which produces cannabis through its Hydropothecary brand, issued a major announcement in August that it will develop nonalcoholic, cannabis-infused beverages with Molson Coors Canada. This joint venture with one of the world’s biggest beer makers is a serious play by HEXO to establish itself in the burgeoning cannabis-infused drinks market. This announcement was followed up by word that HEXO has closed on the acquisition of its first major facility outside of Quebec, taking a big step toward realizing the company’s hub-and-spoke business expansion strategy.

MedMen Enterprises, Inc. (OTCQX: MMNFF) (CSE: MMEN) recently signed a definitive $33 million agreement to acquire control of Level Up (Kannaboost Technology and CSI Solutions), which has a 25,000-square-foot production facility as well as retail locations in Scottsdale and Tempe, Ariz. Furthermore, MedMen will obtain a 40 percent stake in the top-selling K.I.N.D. Concentrates brand via the acquisition. MedMen also recently acquired the retail operations and license for a key location in Santa Ana, California, from Captor Capital Corp. in an all-stock transaction, adding to the company’s growing strategic footprint in one of the most affluent areas of Southern California.

With several of the world’s largest beverage makers on the fence about entrance into the CBD-infused beverages market, the stage is set for smaller players, as well as majors from parallel sectors without a significant ground game in nonalcoholic drinks. But beverages are just one aspect of a rapidly evolving industry that spans the gamut from edibles and concentrates to grow-ops and biopharma development.

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

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Political Wins Hold Promise for Strong Cannabis Strategies

CannabisNewsWire Editorial Coverage: State ballots and the departure of Jeff Sessions have led to fresh confidence in the cannabis sector.

The cannabis industry is going through a period of huge growth.
Two states recently voted to legalize medical cannabis and one voted to legalize recreational cannabis.
The departure of Jeff Sessions removes a significant block for the industry.
A variety of strategies—some focused on product and others on support services—are emerging to make the most of this market.

Generation Alpha, Inc. (OTCQB: GNAL) (GNAL Profile) has developed a dual strategy to make the most of this opportunity, investing in both product and supplies for producers. MedMen Enterprises, Inc. (CSE: MMEN) (OTCQX: MMNFF) is financially supporting further legal reform while building up a cultivation and retail business across several states. KushCo Holdings Inc. (OTCQB: KSHB) has grown from a packaging company to one providing a range of support services. As new niches emerge, The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD) is staking its claim through a focus on organic, sustainably grown cannabis. Even non-cannabis companies are profiting from this growth, with Scotts Miracle-Gro Company (NYSE: SMG) investing in hydroponics offerings that will supply crucial equipment to cannabis cultivators.

To view an infographic of this editorial, click here.

A Blooming Industry

Cannabis companies are in a jubilant mood following the results of last week’s events in American politics. At the polls, two states voted to legalize medical cannabis while another voted to permit its recreational use. Though Congress lost several pro-cannabis Republicans, a majority for the Democrats, America’s less conservative party, is a good omen for reform. And with President Trump’s sacking of Jeff Sessions, the country is now rid of a staunchly anti-cannabis attorney general.

This opens the way for companies with strong cannabis strategies to make bold moves in the coming year. From entering new states to producing fresh product lines, the options for growth and development are many. A few key considerations define the strategies of the current cannabis players.

Product Versus Infrastructure

Two basic approaches to business strategy currently dominate the cannabis market — one based on infrastructure and the other based on product. However, these strategies don’t have to be separate, and Generation Alpha, Inc. (OTCQB: GNAL) is building strong businesses by combining them. And the way this strategy plays out shows a lot about where the industry is at.

The product strategy is an obvious one and typically garners the most public attention. Companies going down the product path focus on the production, processing, and retail side of cannabis. These are the companies setting up farms and dispensaries, feeding the growing demand from consumers across North America. It a strategy that Generation Alpha recently moved into, under its previous name of Solis Tek, with the acquisition of cultivation and processing facilities.

The other strategy is to provide support services and supplies for product-oriented companies. As the market grows, there will be more and more need for such services, which profit off cannabis but are better insulated from shifts in the market and its political oversight. Generation Alpha started out with this strategy, as a vertically integrated technology innovator, developer, manufacturer and distributor bringing products and solutions to cannabis growers. Providing horticultural and lighting supplies, the company grew by providing cannabis growers with the equipment they needed.

Each strategy can work well on its own, but running a double strategy, while more complex, has real potential benefits. As both supplier and customer for cultivation equipment, companies such as Generation Alpha can create great efficiencies in their supply chains. And by developing both business streams, they can benefit from the security of a picks-and-shovels approach while also accessing the growing profits of the front-line cannabis trade.

Location, Location, Location

Choosing which states to operate in is an important consideration for American cannabis companies. Although it is widely anticipated to change, cannabis currently remains illegal at a federal level, and it is only through state-level initiatives that the market has been allowed to emerge. Cultivation and retail effectively operate on a statewide scale at best, so looking at where a state stands now and where it is likely to go in the future is vital to making savvy business decisions.

Arizona, where Generation Alpha recently acquired cultivation and processing facilities, provides a useful example of how local conditions shape the market. The state made medical cannabis legal in 2010. Despite a closely fought vote, opponents of cannabis have failed to overturn or limit the market despite ongoing campaigns. The state’s supreme court even overturned a rule keeping medical cannabis off college campuses. Arizona’s medical cannabis market seems secure.

In 2016, an attempt to legalize recreational cannabis in the state failed by a narrow margin. Medical legalization faced a similar setback in 2002, only eight years before passing. As recent generations are generally more liberal toward cannabis than their elders, it is likely that a similar pattern will play out for recreational cannabis, with a successful vote almost inevitable. Companies that have become established under the medical licensing laws will be in a strong position to make the most of this.

“We are excited about this opportunity in Arizona and its growth and profitability potential,” said Generation Alpha CEO Alan Lien. “We are pleased to have partners such as Future Farm Technologies and Yorkville Advisors to collaborate and support the build-out and growth of this facility. Our collective experience and knowledge in cannabis will position this Arizona operation for success. We are excited to commence Phase 1 of the development and construction of our state-of-the-art cultivation and processing facility and look forward to many additional opportunities in the cannabis industry.”

Expanding Operations

The potential of the Arizona market hasn’t gone unnoticed by other companies. MedMen has invested heavily in getting into the state, acquiring a top Arizona medical cannabis wholesaler.

This is part of a wider pattern of companies spending big to secure their spots in a burgeoning cannabis sector. For example, drinks giant Constellation Brands has spent billions investing in a Canadian cannabis company to give itself a foothold in the industry. Canadian and American companies are looking at cross-border investment, while outsiders are moving into the market as well.

This big spending only adds to the strength of infrastructure plays such as Generation Alpha’s strong position in cultivation equipment. Much of the money being invested will go into growing more cannabis. That means more hydroponics, lighting and related services will be needed across the legalized states. Any investment in cannabis cultivators ultimately becomes an investment in their suppliers.

Where Next for Cannabis?

The next few years promise solid growth for the cannabis industry in North America. Even before this month’s political upheavals, analysts projected that the $9 billion industry would grow to $47.3 billion by 2027.

The fallout from the mid-terms means that investors can be even more confident about what happens next. The forced resignation of Jeff Sessions removes one of the biggest obstacles to growth for the cannabis industry in the United States. Sessions, a staunch opponent of cannabis, had rescinded the Obama-era memo committing federal law enforcement to non-intervention in state-level cannabis industries. With him gone, cannabis shares rose as businesses and investors looked forward to a more tolerant regime.

This won’t mean an end to campaigning for MedMen Enterprises, Inc. (CSE: MMEN) (OTCQX: MMNFF), the largest financial supporter of progressive marijuana laws, but it does mean that the company’s campaigning efforts are more likely to pay off, creating space for expansion of its cultivation and retail business. The company already operates 19 facilities in four states and has recently announced the addition of a fifth, through a move into Arizona. Despite the limitations created by federal laws, MedMen is showing that cannabis companies can operate on an inter-state level.

Like Generation Alpha, KushCo Holdings Inc. (OTCQB: KSHB) entered the sector by providing support services to cannabis producers, in the form of packaging solutions. The company has since expanded its operations, creating a one-stop shop for the cannabis market. Seeing the huge potential currently available, it has recently formed an advisory board to guide strategic growth initiatives, making the most of a constantly expanding market.

While KushCo provides another example of the infrastructure strategy, The Green Organic Dutchman (OTCQX: TGODF) (TSX: TGOD) is focused on product. A producer of organic, sustainably grown cannabis, the company is making the most of the connection between cannabis consumption and concern with environmental issues. In a market large enough to start dividing into specialist niches, it is tapping into the higher prices people will pay for organic products.

Not every company profiting from cannabis is focused on that market. Lawn, garden and outdoor living company Scotts Miracle-Gro Company (NYSE: SMG) has been benefiting from the demand for cultivation equipment that cannabis’s success brings. It recently acquired the United States’ foremost distributor of hydroponic equipment, which is crucial to the cultivation of cannabis. As the cannabis industry grows, so too does hydroponics.

Political change offers further growth for an already flourishing industry, allowing profits from a wide range of strategies.

For more information on Generation Alpha, visit Generation Alpha, Inc. (OTCQB: GNAL)

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