Tag: TLRY

Hemp and CBD Set to Eclipse the THC Marijuana Market

CannabisNewsWire Editorial Coverage: As the cannabis market continues to grow, hemp and cannabidiol (CBD) are occupying an increasingly large share of the escalating industry.

  • Hemp, the form of cannabis without psychoactive tetrahydrocannabinol (THC), is an important part of the cannabis market.
  • Hemp is common in many health and wellness products.
  • Total sales of hemp-derived products are expected to exceed $1 billion this year.
  • Some industry experts expect hemp products to soon exceed marijuana for their share of the cannabis industry.

Sugarmade, Inc. (OTCQB: SGMD) (SGMD Profile) is taking advantage of this shift by making a heavy investment in hemp production. Medical marijuana company Tilray, Inc. (NASDAQ: TLRY) bridges the gap between product types through its production of CBD oils. One of the largest cannabis growers in Canada, Canopy Growth Corp. (NYSE: CGC) provides plants used in a wide range of products. GW Pharmaceuticals Plc (NASDAQ: GWPH) has created the first cannabis-derived prescription drug approved by the U.S. Food and Drug Administration. Meanwhile, public acceptance and more positive perception of the cannabis sector are shifting, thanks at least in part to publicity efforts by shifted by cannabis companies such as Aurora Cannabis, Inc. (OTCQX: ACBFF) (TSX: ACB).

To view an infographic of this editorial, click here.

The Two Sides of the Cannabis Market

It’s all too easy to view the cannabis sector as a single market providing variations on the same product. In reality, it’s an increasingly complex and varied industry. Its primary plants and products can be divided into two groups: marijuana (and THC) in one category, and hemp (and CBD) in the other.

The marijuana piece of the cannabis market is the one more traditionally recognized. In this space, plants grown, cultivated and used contain THC, the psychoactive ingredient that gets drug users high. THC is the reason for cannabis’ ongoing popularity as a recreational drug worth hundreds of millions of dollars in both legal and illegal markets.

The other side of the market is centered around hemp. Hemp does not contain THC; rather it contains CBD, an active ingredient found in other cannabis plants. CBD has fueled the development of medical marijuana applications, but alternative products that utilize the substance are increasingly popular in the health and wellness markets, where they can be bought more widely than medical marijuana. As a result, some industry experts note that hemp may soon make up the larger part of the cannabis industry.

The Growth of the CBD Market

Though less well-known outside of specialist markets, CBD is becoming a more accessible way to benefit from cannabis. This has led to investment from companies across the cannabis sector, including Sugarmade, Inc. (OTCQB: SGMD).

Sales of hemp-based products in the United States reached $820 million last year, of which $190 million, or 23 percent of sales, consisted of CBD-derived products, according to Hemp Business Journal. That total for hemp is expected to pass a billion dollars this year.

Predictions for the future are even more promising. The same Hemp Business Journal article estimates that the hemp market will reach $1.9 billion in the United State by 2022, with $646 million of that coming from CBD and its derivatives. The Brightfield Group is even more optimistic in its assessment. The group’s industry specialists believe that CBD could outstrip the rest of the cannabis sector in size in the next few years.

For companies such as Sugarmade, whose business is closely tied to CBD, these developments create opportunities for expansion and innovation.

CBD Enters the Mainstream

A wide variety of end-use product potential is helping hemp gain mainstream use and acceptance. This market includes supplements, personal care products, textiles, and food and industrial applications, as well as CBD and the support services provided Sugarmade and other similar companies.

The hemp market has grown 15 percent per year over the past few years. Unlike marijuana sales, this growth isn’t driven by the medical and recreational sectors. Instead, body products and supplements have been key factors. Much of the hemp for these products has been imported from Canada and China, with imports totaling $78.2 million in 2015, not counting textiles, paper products or construction materials.

The hemp market is expected to be strengthened by the2018 Farm Bill currently making its way through the U.S. Senate. Legislation included in the act, supported by the Senate majority leader, would remove industrial hemp from the Controlled Substances Act, making it easier for farmers to grow hemp for CBD and other agricultural purposes. Since the last farm bill was passed four years ago, some farmers have been able to legally set up test production of hemp for CBD, but widespread cultivation has not been permitted.

The extent of the change permitted by the expected agricultural law remains uncertain. Other issues unrelated to cannabis are currently holding up the Farm Bill, despite widespread bipartisan support for the hemp provisions. Once the bill passes, the impact for CBD will also depend upon decisions made by state authorities and the FDA. But the bill will certainly ease the way for potential hemp growers in states that support the CBD industry. Until now, national law only allowed the growing of hemp and harvest of CBD in state pilot programs and for academic research; in the 2018 Farm Bill, those limitations are eliminated.

Clearly, The legalization of hemp and CBD on the federal level will only benefit companies such as Sugarmade. Previously, access to financial and support services could be difficult for companies working in the cannabis sector. Marijuana retailers had to resort to cash payments or newly developed electronic systems because banks feared doing business with companies defying federal law. Making hemp legal will allow a wide variety of support systems to evolve.

Innovating with CBD

The success of companies such as Sugarmade that are working in the CBD space comes in large part through innovation. These companies recognize the need to research, offer, and implement new products, services and investments to drive growth.

New products will take CBD into new commercial categories. Hemp-derived beverages and pet foods are both on the horizon. Medicines are being tested. Paper, cloth and construction are also industries that stand to benefit from additional hemp offerings.

Sugarmade’s success comes through expansion in hydroponics, the company’s entry into the cannabis space. Hydroponic equipment is key to cultivating cannabis and, as a result, hydroponic companies have seen substantial growth over the past few years. Sugarmade is building upon its existing growth by acquiring two other hydroponics companies, a move that turned the company into one of the leading players in hydroponics. This move is also expected to raise Sugarmade’s revenues next year from $30 million to $75 million as the market for hemp and its support services grows.

Sugarmade has also reinforced its position in the market through more direct investment in CBD. The company recently committed to investing a million dollars in Hempistry, Inc. The investment is targeted to support Hempistry’s work on an ultra-high CBD-content hemp strain being grown in Kentucky. It also positions Sugarmade to profit directly from the staggering growth in CBD.

The impact of the hemp industry extends beyond the United States. Sugarmade has made moves into Europe as well, selling hydroponics in the United Kingdom. While the current hemp market in Europe is small, savvy companies are evaluating opportunities to get in now. Where America leads, Europe is likely to follow, which means the road towards legalized cannabis and a thriving CBD market may be imminent.

Cannabis Competitors

A number of companies are competing for a share of the CBD market.

For medical marijuana company Tilray, Inc. (NASDAQ: TLRY), CBD is a natural extension of its other work. The company has developed CBD oil for medical use and is one of the first to sell such a product into the United Kingdom after top politicians intervened to make CBD available for treating rare childhood forms of epilepsy. A strong program of research and development has led to growth for the company, which is now making initial public offerings in the United States and Canada to finance further work.

Canopy Growth Corporation (NYSE: CGC) is one of the largest cannabis companies in Canada, a leading market for cannabis and CBD. With 5.6 million square feet of growing space spread across its facilities and subsidiaries, three-quarters of it licensed by Canadian authorities to grow cannabis, Canopy Growth has become a powerhouse within the industry and is breaking new ground for cannabis companies, having completed the first legal transfer of cannabis from Canada to the United States using a DEA-issued permit. This transfer, for medical research purposes, seems to reflect a softening of DEA attitudes as the agency adjusts to the changing status quo.

Medical cannabis research is also important to GW Pharmaceuticals Plc (NASDAQ: GWPH). The company created the first cannabis-based prescription medicine to gain FDA approval and continues to innovate through its research and product divisions. Like Tilray, the company is committed to growth, having recently announced new shares to raise $300 million of finance.

Aurora Cannabis, Inc. (OTCQX: ACBFF) (TSX: ACB) isn’t just selling its own CBD-rich health and wellness products — it’s also working to raise the public profile of the cannabis industry. It has partnered with Elevate, the annual citywide Toronto festival, to create tracks discussing cannabis and health issues. These events will encourage discussion about the health potential of CBD and marijuana, as both sides of the industry continue to gain in size and public recognition.

The cannabis industry has seen huge growth over the past decade, and now it’s going through big changes. Commercial CBD and hemp, until recently existing in the shadow of medical cannabis and recreational marijuana, could soon be the leading products in a growing global market.

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

About CannabisNewsWire

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

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

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

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

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

Fresh Acquisitions Help Companies Profit from Growth in the Cannabis Sector

CannabisNewsWire Editorial Coverage: A wave of acquisitions is sweeping the cannabis sector, as increasing legalization draws the attention of big business.

  • Large and mid-tier cannabis companies are absorbing their smaller competitors.
  • Tobacco and alcohol companies are moving in as a natural extension of their current ranges.
  • This is supported by growth not just among cannabis growers but also for businesses supporting them.

Cultivation supplies company Sugarmade, Inc. (OTC: SGMD) (SGMD Profile) has recently announced the acquisition of hydroponic product companies that could more than double its revenue. Tilray, Inc. (NASDAQ: TLRY) is fueling expansion through an initial public offering as it begins its first sales of CBD oil products in the United Kingdom. Drinks giant Constellation Brands now owns a large chunk of Canopy Growth Corp. (NYSE: CGC), one of Canada’s largest cannabis companies. GW Pharmaceuticals Plc (NASDAQ: GWPH) is releasing fresh shares to fund its R&D-driven growth. Meanwhile, Aurora Cannabis, Inc. (OTCQX: ACBFF) is making acquisitions across the Atlantic, buying out a pair of European hemp companies.

To view an infographic of this editorial, click here.

Acquisitions Grow in Cannabis Sector

Twenty years ago, it would have sounded like a science fiction fever dream, but today the cannabis industry is one of the fastest-growing sectors in the North American economy. The nine U.S. states where recreational cannabis is legal are about to be joined by the entire country of Canada, while another 20 states have legal markets for medical marijuana. Businesses catering to these markets are going from strength to strength, whether selling cannabis, manufacturing products derived from it or providing the tools and support that growers need.

This has led to a flurry of mergers and acquisitions in the cannabis sector. At the top end, large companies from other sectors have started buying into cannabis. Beverage manufacturer Constellation Brands owns more than a third of the shares in Canopy Growth, Molson is working with Hydropothecary, and Phillip Morris has been talking about moving into the sector. Seeing another legal drug coming into play, tobacco and alcohol companies want to buy their part of the future.

And there’s also been a lot of movement within the industry.

Cannabis Companies Buy Up Competitors

Among existing cannabis companies, consolidation is the name of the game. A wide scatter of small companies — startups created within a new and uncertain industry — are combining into larger operations.

One example is a recent series of acquisitions by Sugarmade, Inc. (OTC: SGMD). A Los Angeles company with warehouses in southern California, Sugarmade isn’t a purely cannabis-oriented business, but its work in restaurant supplies and packaging is increasingly taking a back seat. Its higher profile work is in the cannabis sector, where it provides cultivation supplies.

Sugarmade isn’t one of the big players in cannabis, but it has made bold moves for a mid-tier company. Following an SEC filing earlier this year, the company has recently made formal proposals for the acquisition of two hydroponic supply companies catering to the cannabis sector. These acquisitions would more than double Sugarmade’s expected revenue for next year, from $30 million to $75 million.

Even within the cannabis industry, this is an unusual move. Most of the mergers and acquisitions are being led by big companies, who can obtain external investment to drive their expansion. It’s a familiar case of success breeding success, as the largest companies are most able to grow. But Sugarmade is bucking that trend in a move that could see it join the big players, disrupting the status quo of the cannabis industry.

“These acquisitions will not only very significantly boost our top line revenue growth, but will also expand our distribution across the most important sectors of the fast-growing cannabis marketplace,” said Sugarmade CEO Jimmy Chan. “In addition to the revenue growth opportunities, we will also be afforded very meaningful cost savings across many operational functions. In particular, we believe there are strong cost synergies relative to manufacturing, purchasing, international transport, warehousing and shipment to customers. Perhaps most exciting, however, is that these acquisitions will place us among the largest public companies in the booming cannabis sector.”

It’s a strategy that brings a lot of obvious advantages. Greater integration smooths out supply chains and increases efficiency, reducing overheads to improve profits. It increases a company’s ability to bring specialist expertise in house. It increases a company’s influence in negotiating with suppliers and customers, as well as in lobbying authorities.

But in a sector where mergers are likely to continue, it also has another effect. As the big players in tobacco and alcohol look for cannabis businesses to buy, Sugarmade’s growing strength improves its bargaining position. Whether the company aims to be bought up or to hold onto its independence, it will be better able to negotiate from a place of strength.

Supporting Services

Talk about the cannabis industry usually focuses on the cultivators and distributors, those directly dealing with cannabis. But over the past decade, the industry has grown far more diverse. Support companies such as Sugarmade play an increasingly important role.

The most obvious support services are those supplying cultivation equipment. This is where Sugarmade’s main business lies, selling growers the tools they need to produce their crops.

Hydroponics, the growth of plants in water-based nutrients instead of soil, is an important part of this. Used to grow high-quality plants in indoor facilities, this method is central to the cultivation of controlled, high-quality cannabis crops in secure conditions. Hydroponic sales have allowed Sugarmade to expand beyond North America and into the European market, where cannabis is still largely illegal but its cultivation tools have other uses. The companies Sugarmade is buying also work in hydroponics and their acquisition could make the company a major player within that market.

Support services for cannabis are increasingly diverse. Equipment for waste disposal, lighting and growing beds are all important. Some of this is provided by hydroponics companies, while other components are created by specialist firms. Seeds are nurtured and sold, new plant strains grown, and growing and harvesting techniques developed. Research and financial services specifically geared toward cannabis add to a complex and multifaceted industry.

The Potential for Growth

Much as its opponents might disagree, the cannabis industry isn’t going away. In the United States, where Sugarmade is based, the industry shows every sign of continuing its rapid growth.

The biggest driver for growth is still legal change. The legalization of both medical and recreational cannabis has been spreading state by state, as increasingly liberal attitudes are reflected in the law. Though cannabis remains illegal at the federal level, the government has done nothing to clamp down on these efforts by states. If anything, the government’s attitude is softening, with this year’s Farm Bill set to legalize industrial hemp, a nonpsychoactive form of cannabis.

Industrial hemp is already being grown in test projects in the United States, creating impressive profits for the farmers involved. While its cultivation often operates differently from that of medical and recreational cannabis, it relies on much of the same knowledge and many of the same tools. For companies such as Sugarmade, which provide cultivation supplies, industrial hemp will mean significant opportunities for growth.

On top of this, there’s the long-term growth expected from cannabis companies within the states that have legalized their products. As the legal consumer market settles in, the habits of cannabis consumers will change. They’ll move away from buying from criminals, undermining illegal networks and giving more business to the legal companies. As these companies expand production facilities, the need for additional equipment and supplies will increase – supplies that can be provided by Sugarmade and the companies that it’s absorbing.

Many North American cannabis companies are seeing substantial growth. Tilray, Inc. (NASDAQ: TLRY) is looking to finance its ongoing expansion through initial public offerings in the United States and in Canadian provinces. A leading medical marijuana company, Tilray has sold its products to customers on five continents and is one of the first companies to sell CBD oil, a cannabis derivative, in the United Kingdom. Its expansion is driven not by acquisitions but by a strong research and development program.

Canopy Growth Corporation (NYSE: CGC) is one of the largest cannabis companies in Canada. Drinks manufacturer Constellation Brands has pumped over $4 billion into Canopy Growth, and the American giant now owns more than a third of Canopy Growth’s shares. It’s a move that will help the companies to collaborate in producing cannabis-infused drinks, which will become legal in Canada next year. More than this, it’s a move by a drinks manufacturer to get a foothold in cannabis and so expand from alcohol into another legal drug.

GW Pharmaceuticals Plc (NASDAQ: GWPH) has been growing through new products and research, with the creation of the first FDA-approved prescription medicine derived from cannabis plants. It has just announced the release of new shares, which are expected to raise $300 million in support of the company’s ongoing growth.

Aurora Cannabis, Inc. (OTCQX: ACBFF) is going international with its latest acquisition. In September, the company acquired Europe’s largest producer of organic hemp, Agropro UAB, and hemp processor and distributor Borela UAB. This will increase the company’s production of hemp-derived health and wellness products around the world.

With the cannabis industry expanding, mergers and acquisitions are helping to drive a round of growth, creating companies with the power to compete on the global stage.

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

About CannabisNewsWire

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

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

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

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

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

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

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

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

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

Public Acceptance Fuels Growth of CBD and Support Industries

CannabisNewsWire Editorial Coverage: Growing public acceptance of medical marijuana is having secondary effects on other industries.

  • Products using cannabidiol (CBD) are increasingly popular in areas such as wellness and cosmetics.
  • Hemp production is growing, with experimental projects improving cannabis cultivation techniques.
  • Services needed to support these markets, such as payment systems, are growing.

Marijuana Company of America, Inc. (OTC: MCOA) (MCOA Profile) is benefiting from this in many ways, having invested in hemp, CBD products, rentable cultivation space and payment systems. Tilray, Inc. (NASDAQ: TLRY) is producing CBD oils and has become one of the first companies to sell these for medical use in the United Kingdom. Canopy Growth Corporation (NYSE: CGC) has received a massive investment from a drinks company, with the aim of producing CBD-infused drinks. GW Pharmaceuticals Plc (NASDAQ: GWPH) created the first prescription medicine derived from cannabis plants to receive U.S. Food and Drug Administration approval and is now heavily involved in research into using CBD to tackle epilepsy. Such drugs may also become useful for fighting insomnia, the subject of a new study by Cronos Group, Inc. (NASDAQ: CRON).

To view an infographic of this editorial, click here.

Public Acceptance of Medical Marijuana Growing

Attitudes towards cannabis and industrial hemp have shifted significantly in the United States in recent years, reflected by legal changes at the state level. The majority of states have legalized these substances for medical use, and a significant proportion now allow their sale for recreational purposes. Increasing access and legitimacy have encouraged an already existing trend toward more liberal views. As a result, 74 percent of Americans now support legislation that would protect states from federal prosecution for legalizing the drug.

Most tellingly, major companies are looking to tap into the popularity of industrial hemp. Coca-Cola, not a company known for taking great risks, is in talks with a major grower about a potential collaboration. This would involve producing drinks infused with cannabidiol (CBD), a non-psychoactive chemical found in industrial hemp. A growing body of research into CBD’s potential to relieve pain means that it is an increasingly popular part of the industry. As recreational marijuana use is legalized in Canada this month, companies such as Coca-Cola will use that country to develop and market test products that may later be sold in the United States.

Turning Public Approval into Profits

Reports about this shift in attitudes provide inherently useful information for politicians and public health officials. But for businesses such as Marijuana Company of America (OTC: MCOA), this information only becomes useful if they can turn it into profit.

MCOA is doing this by diversifying its activities and expanding upon existing work to strengthen its position within the market. The industry is now about much more than just growing and selling cannabis. It covers industrial hemp, plant processing, support services, technology and a wide range of products, some a long way from the smokable plants many people picture when they hear the word hemp.

The part of MCOA’s work that most obviously benefits from changing attitudes is its hempSMART line of products. These timely products are infused with hemp-derived CBD, the same chemical Coca-Cola is considering putting into drinks. But while it isn’t yet producing beverages, MCOA has found a wide variety of other ways to use CBD.

Most of the hempSMART brand is targeted at the wellness market. Products such as the recently relaunched hempSMART Brain are formulated to improve the well-being of consumers, in hempSMART Brain’s case by helping maintain mental clarity, alertness, focus and concentration. HempSMART has also entered the cosmetic and skin care realm with its hempSMART Face, a CBD facial moisturizer, which aims to refresh, replenish, and restore skin providing long-lasting hydration and balance.

The production and marketing of these products is made easier by the shift in public perceptions of industrial hemp. As it becomes more accepted, even consumers who aren’t interested in the substance itself are sometimes willing to try ancillary products.

Harvesting Hemp

For centuries, hemp was grown as a source of fiber. A plant related to marijuana but without its psychoactive properties, hemp is now seeing a revival, thanks to legal changes in both Canada and the United States.

In a joint venture with Global Hemp Group, Inc., MCOA has set up two separate hemp production projects — one in Oregon and the other in New Brunswick.

The purposes of these projects include increasing understanding of hemp, developing better cultivation methods, and creating improved strains. Staff at both sites are carrying out research, with support from the local government at the Canadian site. This work covers a range of issues important to hemp cultivation, including pest control and improving soil quality. Drones are used to oversee progress in New Brunswick, giving the company a good overview of how crops are progressing.

By gathering data on plants and cultivation methods, MCOA and Global Hemp are giving themselves an important advantage in a growing industry. Hemp fibers can be used to produce cloth and rope, adapting a historically popular use to the modern world. Perhaps more valuable financially, CBD oil can be extracted from the plants, providing biomass for the market. Growing strains with rich CBD content is an important part of the work at the Oregon site, work that could give the companies an edge over their competitors in the strains they grow.

The work on these sites is providing plenty of practical insights and experience, sometimes in unexpected ways. A bean harvester was recently used to harvest crops in New Brunswick, maximizing profits despite higher than normal weed growth. Experts such as Anthony Rushford, who has brought 20 years of experience in hemp breeding and genetics to the Oregon project — have also been recruited to provide insight on relevant issues.

Support Services

The growth of the marijuana, hemp and CBD markets has led to a need for support services. By expanding into these services, MCOA is further strengthening its position.

The company’s significant investment in MoneyTrac Technology represents a similar step toward diversification. MoneyTrac is a pioneer in alternative banking and electronic finance systems, using blockchain technology to power an accessible payment service. This can be accessed anywhere in the world and used by sellers to track their business and ensure legal compliance, as well as to easily take electronic payments.

As the industry grows, it will need technological solutions for the challenges it faces, and MoneyTrac provides one of those solutions. This technology has potential use beyond the cannabis market as a payment system for other under-served businesses. Both business practices and technology are changing as companies adapt to the emerging commercial environment in the United States.

The Commercial Power of Marijuana Derivatives

The growing acceptance of medical marijuana is providing impetus for many businesses within the sector that are exploring the other products these plants can provide.

Tilray, Inc. (NASDAQ: TLRY), a leading medical marijuana company, sells cannabis flowers and extracts to patients and medical providers on five continents. With a strong investment in research and development, Tilray has been creating other products derived from these plants, including a range of CBD oils. As a result, it is one of the first companies to sell CBD oil into the United Kingdom following a high profile legal change that allowed British patients access to these oils for the first time.

Canopy Growth Corporation (NYSE: CGC) is already one of the leading marijuana companies working in Canada, one with extensive deals to make use of that country’s growing market. Canopy Growth has received a significant financial and publicity boost thanks to a recently approved $4 billion investment from American drinks giant Constellation Brands. This collaboration between the two companies is expected to lead to CBD-infused drinks, another innovation within the industry.

A company with 20 years’ experience developing cannabinoid treatments, GW Pharmaceuticals Plc (NASDAQ: GWPH) created the first prescription medicine derived from cannabis plants to be approved by the U.S. Food and Drug Administration. GW Pharma has been carrying out research on the use of CBD in tackling rare and dangerous forms of childhood epilepsy, and recently presented data on this work to the 13th Annual European Congress of Epileptology. This research is creating greater support for the safety and effectiveness of CBD in dealing with these diseases.

Research is widening the number of ways in which cannabis and cannabis-derived products can be used. Cronos Group Inc. (NASDAQ: CRON) recently announced a study to research the use of cannabis in tackling insomnia.

A diversity of products and uses is allowing marijuana companies to grow in strength, providing support services, medicines, research and rented cultivation facilities alongside their core products of cannabis and CBD oils. It’s a path that can only strengthen the industry.

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

About CannabisNewsWire

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

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

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www.CannabisNewsWire.com
303.498.7722 Office
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DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. The commentary, views and opinions expressed in this release by CNW are solely those of CNW. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW for any investment decisions by their readers or subscribers. CNW is a news dissemination and financial marketing solutions provider and is NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.

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

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

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

Intangible Assets Power Growth, Acquisitions in the Pharmaceuticals Sector

CannabisNewsWire Editorial Coverage: Intangible assets such as patents increasingly dominate the global business landscape, especially in the pharmaceutical sector.

  • Intangible assets are estimated to be worth trillions of dollars in the United States alone.
  • These assets drive deals as companies acquire smaller patent holders.
  • In growing sectors such as cannabis, smaller companies are rushing to establish intangible assets ready for expected market growth.

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) (LXRP Profile) is one of the leaders in the world of cannabis, with applications made for more than 50 different patents and more to come. Tilray Inc. (NASDAQ: TLRY) is also focusing on building its intellectual property (IP) portfolio, including exclusive rights to at least 22 issued or pending patents. In wake of receiving FDA approval of its Epidiolex® (cannabidiol) oral solution for the treatment of seizures associated with two rare and severe forms of epilepsy, GW Pharmaceuticals Plc (NASDAQ: GWPH) has applied for five new Epidiolex patents. Recently Canopy Growth Corporation (NYSE: CGC) announced that it has, alone or with its subsidiary or joint-venture partners, filed eight provisional U.S. patents pertaining to the delivery and application of cannabis and cannabinoid-based therapeutics. And through its ownership of CanniMed, Aurora Cannabis, Inc. (OTCQX: ACBFF) has obtained six patents related to cannabinoid delivery for pain management.

To view an infographic of this editorial, click here.

The Power of Intellectual Property

Intellectual property is now one of the most important parts of the global economy. Copyrights, trademarks and patents are a vital weapon in the arsenal of many businesses. For some companies, this is a secondary consideration, a way to strengthen and protect their positions within their fields. For others, it’s their entire focus — a way to dominate a sector or provide valuable returns.

The power of IP means that no part of the economy goes untouched. New industries often arise off the back of new IP. Even when that’s not the case, the development of new techniques and technologies frequently lead to the creation of patents, as companies work to innovate and control techniques that give them an edge over their competitors. For relatively new sectors, such as the cannabis market, this means the sudden flourishing of IP and a race by companies to stake their claim on these valuable assets. As a sector matures, so will its IP market.

The Value of Intangible Assets

Patents are a big part of business for companies such as Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP), for whom developing and protecting new technology is fundamental to success. Whether it’s underlying technology such as DehydraTECH, the company’s system for increasing the body’s absorption of chemical compounds, or specific products derived from DehydraTECH, such as TurboCBD, Lexaria’s success is founded on its distinctive IP.

IP is part of a wider sector of the economy — intangible assets. This is the wealth provided not by physical assets and the processes that directly transform them but by less visible, more abstract resources. It includes IP, whose value is often examined and measured, as well as harder-to-pin-down elements such as business processes and reputation.

These factors have always played a part in business, but their growing recognition and analysis has led to the growth of companies whose main focus is on intangible assets, from investment research firms and reinsurers to patent licensing and enforcement companies.

Representing around a third of the U.S. economy, intangible assets are now consciously analyzed and developed by virtually every business, even if they don’t recognize the “intangible asset” label. Companies with a solid focus on these areas can place themselves in positions of great strength.

Patents in a New Sector

The speed at which intangible assets can develop is well illustrated by movements in the cannabis sector, where many of Lexaria’s patents apply.

The legal global cannabis market started to emerge only recently, thanks to a handful of countries allowing medical marijuana. The market has started to mature through a small but growing number of territories with legal markets for recreational cannabis, as well as the separate management and licensing of industrial hemp. Legal cannabis is now a multibillion-dollar business. Although Lexaria’s technology has other profound drug delivery applications, cannabis is where it looks set to have the most immediate impact.

This has led to a rush to control intangible assets around cannabis. It’s noteworthy that Chinese companies own more than half of the cannabis-related patents registered with the World Intellectual Property Organization, even though the cannabis trade remains illegal in China. China has a good eye for long-term developments and is setting itself up to control a growing global trade.

Outside of China, Lexaria is one of the world’s biggest holders of cannabis patents with eight patents already granted. The company currently holds four patents in the United States and four in Australia, covering aspects of its work to make beneficial drugs more palatable and effective. In addition, the company has further patent applications in process in more than 40 countries as part of a concerted strategy to expand its patent portfolio. This is made possible by the focused, tangible research and development being carried out by the company and is ultimately driven by the need to develop and control intangible assets.

Lexaria has disclosed it expects four more patents to be granted in 2018, bringing its total to twelve. Of note, all twelve of these are within a single patent family — and Lexaria expects patent success across all nine families of its current applications. Indeed the company recently revealed that it has seven more patent families in the works. Lexaria’s goal is to have some 200 patents pending or granted which, if achieved, could turn the organization into an IP behemoth in the global cannabis industry.

The Value of Patents

The commercial value of patents, even those still pending approval, can be extraordinary, reaching billions of dollars. In 2011, Nortel sold 6,000 patents and patent applications for $4.5 billion. The following year, AOL sold 925 patents to Microsoft for more than a billion dollars. While some companies develop patents purely to protect their work, others develop them specifically to be sold.

This focus on intangible assets drives many mergers and acquisitions. The Craftsy digital network developed online shows such as “Man about Cake” with a focus on audience rather than immediate profit, leading to the company’s acquisition by NBC Universal. The intangible assets of the company’s identity, reputation and audience had become highly valuable in themselves.

Similar priorities can be seen on a far larger scale in SoftBank’s $31.4 billion acquisition of chip designer ARM Holdings, or roughly $7 million per patent or patent application. ARM’s revenues were only $1.5 billion per year, but its 4,500 patents cover technology of potentially incredible value. In just three years, the desire to control patented drugs and processes in the healthcare sector overall resulted in 58 mergers and acquisitions with values of a billion dollars or more.

In Lexaria’s field of pharmaceuticals, patents are crucial, representing both the outcome of years of R&D and also potential market share and control in the emerging global cannabis business. Lexaria is attempting to own enough IP in the global cannabis industry that patent royalty revenues begin to flow worldwide.

Because patents are among the most valuable assets a company can own, a small investment in research now may pay off in a huge way in years to come. In a sector with such huge growth potential as cannabis, Lexaria’s IP portfolio may generate cash flows regardless of whether other companies intend to license the technology or not; by owning core IP, other companies may be forced to pay royalties. If Lexaria’s goal of owning hundreds of issued patents becomes a reality, the company’s patent portfolio could have huge ramifications on its valuation.

Powered by Intellectual Property

Lexaria isn’t alone in its commitment to strengthen its IP collateral. Tilray Inc. (NASDAQ: TLRY) is also focusing on building its IP portfolio including exclusive rights to at least 22 issued or pending patents. Tilray CEO Brendan Kennedy has observed that if cannabis companies are going to move forward, they’ll need to develop IP in both the medicinal and recreation aspects of the cannabis spectrum.

GW Pharmaceuticals Plc (NASDAQ: GWPH) has established a leading position in the development of plant-derived cannabinoid therapeutics through its intellectual property portfolio, proven drug discovery and development processes, and regulatory and manufacturing expertise. The company successfully developed the world’s first prescription medicine derived from the cannabis plant.

In addition to the eight provisional patents it has filed, Canopy Growth Corporation (NYSE: CGC) has updated applications relating to earlier insomnia patent applications, bringing its total number of U.S. provisional patent filings to 39. The filings are part of a concerted plan by Canopy Growth to deliver to patients and healthcare providers innovative medicines and health products targeting disease areas with substantial medical needs.

Aurora Cannabis, Inc.’s (OTCQX: ACBFF) pain-management patents are only part of the company’s commitment to creating a stronghold in the cannabis market. Aurora has become one of the fastest-growing cannabis companies, as evidenced by Aurora Sky, the company’s 800,000-square-foot flagship facility; by launching the world’s only mobile app for ordering medically prescribed cannabis; and by being the only LP to service two metropolitan areas with same-day delivery.

With so much value placed on intangible assets, patents are fueling growth and acquisitions worth billions of dollars. In the pharmaceutical sector and beyond, patents definitely appear to be where the big money is.

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

About CannabisNewsWire

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

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

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

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

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

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

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

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

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

Hydroponic Hardware Key to Tapping Long-Term Profits of Burgeoning Cannabis Market

CannabisNewsWire Editorial Coverage: The North American cannabis market continues to accelerate as Canada rockets towards the October 17 deadline for the nationwide legalization of recreational marijuana.

  • Hydroponic market trying to keep up with booming cannabis market set to exceed $25 billion by 2021.
  • Continued expansion of cannabis cultivation and demand for controllable production parameters are a boon to hydroponics industry.
  • Healthcare sector increasing demand for CBD from sources such as industrial hemp.
  • Regulatory reform throughout North America and Europe driving change in overall space.

The milestone legislation appears set to open the door wider for companies pursuing a position in the promising sector, including those consolidating vectors within the still highly fragmented hydroponics supply sector. The global hydroponic market alone was worth nearly $3.5 billion last year and is set to break $10 billion by 2023, maintaining a healthy 18.2 percent CAGR. Recently projected revenue growth to more than $30 million next year illustrates the lofty aspirations of hydroponics supplier Sugarmade, Inc. (OTC: SGMD) (SGMD Profile), a company that recently reported a sequential revenue increase of some 215 percent and a year-over-year revenue increase of approximately 228 percent for revenues of just under $3 million in the most recent quarter. Scotts Miracle-Gro Company (NYSE: SMG) is another one to watch in this space, with an already well-established presence and the recent announcement that the company will acquire general hydroponics equipment supplier Sunlight Supply, Inc., for $450 million. An acquisition may also benefit Aurora Cannabis, Inc. (OTC: ACBFF), which recently announced its procurement of MedReleaf. The huge announcement of an additional $4 billion investment in researcher, cultivator and seller of extracts/flowers Tilray, Inc. (NASDAQ: TLRY), by beer giant Constellation Brands, Inc., has been unmistakable “handwriting on the wall” to many investors that the cannabis industry is here to stay. And Canopy Growth Corporation (NYSE: CGC) has also been bitten by the sector consolidation bug, as evidenced by the company’s recent snapping up of premium cannabis lifestyle brand Hiku Brands Company Ltd.

To view an infographic of this editorial, click here.

Hydroponic Picks and Shovels

With the North American Marijuana Index up 33 percent over the last month and up nearly 550 percent over the last three years, it appears that this could be the front end of an ongoing boom that may have yet to even see its true heyday — something that could be triggered by the adoption of more widespread legislative reforms across several U.S. states, occurring in ways similar to California’s cannabis reforms.

It is a well-known investing adage that those who developed long-term success during California’s gold rush made their money not from mining claims but from selling the necessary accoutrements miners needed, such as picks and shovels. The same phenomenology holds true today during the ongoing green rush, with hardware manufacturers and suppliers of grow systems poised to reap the rich, long-term rewards of an industry that is still just getting off the ground in many respects. Leading cannabis sector analysts at ArcView recently detailed how the North American market saw sales growth of 33 percent last year and projected that the market will reach $25 billion a year by 2021, maintaining a CAGR of 28 percent.

Cannabis prohibition will most likely come to an end in the United States, just as it has in Canada, echoing what previously occurred with the end of alcohol prohibition. To many analysts in the sector today, the legalization question is not if but when. Savvy investors seem to understand the naked reality that humans have been consuming cannabis for likely well over ten thousand years, stretching back to the apparently widespread consumption of seeds and oils in China, where the first recorded medical uses of the plant occurred almost five thousand years ago. Little wonder that the cannabidiol (CBD) market is growing by leaps and bounds, as the infusion of CBD into healthcare products becomes more prevalent. The Brightfield Group recently projected faster-than-anticipated growth for the CBD market, with sales projected to reach $22 billion or more by 2022.

A Rollup Strategy in Hydro Hardware

Product and brand marketing outfit Sugarmade, Inc. (OTC: SGMD), whose brands include ZenHydro.com, CarryOutSupplies.com and BudLife Cannabis Storage Solutions, is currently focused on increasing revenues by repeating the success of the company’s past strategic moves, such as last year’s master market agreement with BizRight Hydroponics, a highly successful and rapidly growing manufacturer and distributor of intelligently designed hardware geared specifically for the needs of the cannabis cultivation sector. The company recently revealed that, as part of a growing emphasis on exploiting a “picks and shovels” rollup approach to the burgeoning cannabis sector, Sugarmade is in acquisition talks with multiple hydroponic supply companies having parallel competencies.

Sugarmade CEO Jimmy Chan explained in a recent shareholder Q&A that targeting home growers as well as smaller, profitable companies in the sector — companies that already have exceptional hardware offerings for professional cannabis processors and cultivators — is something that looks to be highly accretive. The strategy is quite simple, because while there is an explosion of new cannabis ventures in the market, few of these pioneering entrepreneurs of profitable operations possess access to public markets or equity-financed capital.

Branching Out into CBD and Industrial Hemp

Sugarmade’s revenue generation plan isn’t limited to relying on expanding North American markets either. The company was obviously happy to announce expansion into the European hydroponics supply market recently, through a sizeable order via Amazon UK. This announcement comes amid an ongoing shift for the company from a majority of hydroponic-related revenue growth occurring in California and other West Coast markets to more geographically dispersed growth throughout other U.S. states that are also seeing regulatory easing.

In addition, Sugarmade announced in late August that the company has committed to investing $1 million over the next 12 months in Hempistry, Inc., the privately held cultivator of an ultra-high CBD strain of industrial hemp (less than 0.3 percent THC), which has reserved 23,000 acres of prime Kentucky farmland for the task. Moreover, Chan has been made an advisor of Hempistry, and the company’s investment will be in the form of common shares, positioning SGMD shareholders quite well should a Hempistry IPO ever come to the fore. A cultivation supply agreement signed between the two companies is the icing on the cake and demonstrates to investors how such a rollup strategy also represents additive revenue growth that will magnify Sugarmade’s already robust top-line growth rate.

Sugarmade is already in formal acquisition negotiations with at least two companies in online and retail hydroponics, as well as other agricultural cultivation supplies, and the company has made a special filing with the SEC to formally address these acquisitive ambitions. Together with the industrial hemp and CBD initiative engaged in via the Hempistry investment, SGMD’s management team feels that shareholders are now well-positioned for considerable upside, as the company skillfully manages its aggressively planned growth rate and hones its focus more toward cultivation-related revenue sources.

Cannabis-Related Hydroponics — A Tricky Market

The retail market for hydroponics, generated by cannabis growers who are often highly knowledgeable about different types of grow equipment, is expected to become an increasingly contested arena in the coming years. For a disruption-minded brand marketing company such as Sugarmade, which is now one of the biggest publicly traded companies in cannabis-related hydroponics, the need to speak directly to consumers in a language they understand is readily apparent. The BizRight deal speaks volumes, given that BizRight has developed an impressive rapport with customers and partners over the last seven years, becoming one of the most trusted names today in world-class hydroponics.

Scotts Miracle-Gro Company (NYSE: SMG) had a strong quarter recently, with consumer purchases up 5.4 percent amid continued strength of the company’s core consumer lawn and garden products. The aforementioned acquisition of Sunlight Supply will reportedly bring the company’s Hawthorne Gardening segment up to an estimated $600 million a year in total sales, giving the company an impressive footprint across the general hydroponics supply market.

Aurora Cannabis, Inc. (OTC: ACBFF) is one of the biggest and fastest growing cannabis companies in the game today, with a currently funded capacity of nearly 950,000 pounds of product per year and an annual production target over 1.256 million pounds post-acquisition of Ontario-based MedReleaf. With a production footprint spanning nine Canadian and two European production facilities, Aurora is one of the most enviably positioned cultivators in the industry and has the scale necessary to ensure low production costs as well as consistently high yields. The MedReleaf acquisition brings even more high-yield cultivation technology firepower to the table.

Tilray, Inc. (NASDAQ: TLRY), which is focused on research, cultivation, production and distribution of medical cannabis and cannabinoids, has seen some impressive share price appreciation since the company’s IPO in July. The announcement in September that the company was granted DEA approval to import a cannabinoid study drug to the United States from Canada for use in a neurological movement disorder (essential tremor) study has really attracted a lot of investors to the company’s unique offerings and global reach. Tilray’s sophisticated array of full-spectrum and highly purified extracts deserves a second look from investors who may just be caught up in the hype and do not fully appreciate the company’s portfolio and value proposition.

Canopy Growth Corporation (NYSE: CGC) is riding high on a huge capital injection from Constellation Brands, which controls approximately 38 percent of the company post-expansion of this important strategic partnership, which has also served as something of a watershed moment for the cannabis industry. Canopy is wasting no time when it comes to exploiting this new muscle, recently announcing a multiyear supply and service agreement with Centric Health Corp. Canopy also recently announced that its Tweed Farms subsidiary received license amendments approving all remaining greenhouse space at its primary site, expanding Canopy’s total licensed grow footprint to an impressive 3.2 million square feet.

Lean, Mean, Green Machine

Sugarmade has put together a straightforward revenue growth strategy that has been tried and tested in other markets. Successfully executing a rollup strategy in the highly fragmented hydroponics space will come down to the company’s ability to continue picking superb targets that will be genuinely accretive to shareholder value over the longer term and directly additive to the company’s already impressive top-line growth. The Hempistry investment, as well as further expansion into hydroponics supply, is a win-win for both target companies and investors alike.

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

About CannabisNewsWire

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

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

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

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

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

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

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

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

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

CBD Contributes to Continued Growth for Nutraceutical, Pharmaceutical and Cannabis Key Players

CannabisNewsWire Editorial Coverage: Cannabis companies are seeing substantial growth, with the popularity of cannabidiol (CBD) playing a significant part in their positive outlook.

  • CBD is an active ingredient in cannabis.
  • It can provide health benefits without the psychotropic effects of other cannabis chemicals.
  • This has led to a growth in companies selling CBD treatments, sometimes alongside more conventional wellness products.

Youngevity International, Inc. (NASDAQ: YGYI) (YGYI Profile) is one of these companies, having recently expanded its range of products to include CBD therapies for muscle pain, sleeplessness and mood improvement. GW Pharmaceuticals Plc (NASDAQ: GWPH) has created a CBD treatment for child-onset epilepsy and received approval from the U.S. Food and Drug Administration for its sale as a medicinal product. Tilray, Inc. (NASDAQ: TLRY) has also developed a cannabis-derived epilepsy treatment, even as it makes deals to expand its distribution network in Canada. Aphria, Inc. (OTC: APHQF) (TSX: APH) has seen a steady rise in profits based on its cannabis work and is now working with branding specialists to capitalize on its opportunities. Isodiol International, Inc. (OTC: ISOLF) (CSE: ISOL) is providing not only a range of CBD products but also a platform for patients to connect with doctors to help manage cannabis-based medical treatment.

Cannabis Growth Continues

The past few years have seen substantial growth in the cannabis industry. As the plant’s legalization spreads, an increasingly diverse range of businesses have appeared to fill the needs of a growing wellness market. From hydroponic supply companies to seed providers, the industry is expanding at a rapid pace, and at its heart are the cannabis companies themselves, several of which have seen their stocks soar.

One of the reasons for recent growth is the development of a market in cannabidiol (CBD) drugs and wellness products. One of the active ingredients in cannabis, CBD is being used in a wide range of treatments to help with everything from epilepsy to mental alertness. A growing body of research and increasing range of uses have seen CBD oil become a significant part of the cannabis market, distinct from recreational marijuana. For companies invested in CBD, this trend is providing a fresh surge of growth.

The Power of Cannabidiol

A growing number of companies are producing and supplying CBD products — not just specialist firms, but other suppliers such as lifestyle company Youngevity International, Inc. (NASDAQ: YGYI). So what’s the fuss about?

CBD is one of the most prominent active ingredients in cannabis plants. Unlike tetrahydrocannabinol (THC), CBD does not cause users to get high, but it can have other effects on the body and mind. Those beneficial effects have led to CBD’s rising popularity for use in a variety of medicines and wellness products as researchers have learned more about it.

The distinction between CBD and THC is an important one. In some jurisdictions, industrial hemp, a type of cannabis plant that includes CBD but non-noteworthy amounts of THC, can be grown in circumstances where marijuana can’t. The legality of CBD products is different from that of cannabis cultivation itself in some places. Even in places where cannabis is legal for both medical and recreational uses, CBD is preferable to many health-conscious consumers who want its health effects without getting high.

It’s this potential that has drawn companies such as Youngevity to CBD. This market is expected to see tremendous growth based on forecasts for a range of uses beyond oils, such as CBD’s inclusion in food, drink, cosmetics and emerging health products. That’s a pretty impressive reason for companies to take an interest in CBD, whether they’re experienced cannabis insiders or newcomers such as Youngevity.

Wider Market Growth

Medical cannabis is now legal in more than half of North America. Legal recreational use has been enacted within nine states and the District of Columbia in the United States, and it will premiere nationwide in Canada in October. The cannabis plant’s ardent fan base is increasing public awareness and a growing acceptance of the potential benefits of products derived from it. Companies are moving to make the most of the opportunity as a previously frowned-on and illegal industry shifts into the mainstream.

This means that Youngevity’s cannabis-derived products will benefit from a wave of public awareness, publicity and market growth. The global value of this market was estimated at $7.7 billion in 2017, and it’s been predicted to reach $34.1 billion by 2021.

That growing market means that there’s now space for CBD products both on the shelves of high street stores and in the inventory of companies such as Youngevity.

Youngevity’s first entry into this market is the HempFX™ product line, introduced at the company’s 2018 convention in San Diego, Calif. A set of three distinct hemp-derived CBD oil products under the HempFX banner use organically grown products in proprietary formulas to help users through their day. The products include Soothe™, a blend of botanicals designed to relieve muscles by calming aches and pains; Uplift™, which combines CBD with St. John’s Wort to improve cognitive performance and mood; and Relax™, which combines CBD with a variety of herbs and melatonin to bring relaxation and a better night’s sleep.

This diverse range of uses shows why CBD is becoming so popular. By applying it to a variety of wellness issues, companies are able to market their products to a broad range of consumers, increasing sales and awareness.

Youngevity CEO Steve Wallach highlighted the strong potential link between CBD and broader trends in healthy living. “We firmly believe in plant-based nutrition, and hemp-derived (CBD) oil perfectly complements our product development philosophy. Entering this market, which is growing almost exponentially, also should offer a tremendous advantage to our many distributors around the world,” he stated in the company’s news release announcing the HempFX line.

The Power of Existing Pipelines

Wallach’s reference to distributors highlights why a company such as Youngevity is so well-positioned to benefit from the surge in CBD. New companies set up to cater to the CBD market have to build their sales pipelines from scratch, whereas established operators already have those pipelines in place. Youngevity’s massive network of direct sellers means that it has an immediate way of getting new products into the hands of consumers. Experience derived from 21 years of development has provided the company with the tools it needs to carve out its place in the market.

Being on-brand is important to such a move. Not just any company can jump into CBD and expect customers and distributors to come along with it. But according to Wallach, this isn’t a problem for Youngevity.

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

More Companies Take Up CBD

While CBD is often used in over-the-counter medicines and wellness products, it is also finding use in prescription medicines. GW Pharmaceuticals Plc (NASDAQ: GWPH) has created a CBD-based medicine to tackle child-onset epilepsy, a condition that can make a normal life almost unmanageable for the children it affects. This treatment has been approved by the FDA, making it the first cannabis plant-based prescription medicine to be legalized by the U.S. federal government (once the Drug Enforcement Administration reclassifies CBD, as expected this month in response to the FDA’s decision).

A global leader in the medical cannabis market, Tilray, Inc. (NASDAQ: TLRY) works in research, cultivation, processing and distribution, providing cannabis extracts and flowers to patients, researchers and medical professionals on five continents. As Canada prepares for growth in the cannabis market following legalization, the company has made deals with Canadian partners to sell its products into that market. It has also developed a CBD and THC oil that has shown promising results in tackling drug-resistant epilepsy.

One of the more successful companies in the cannabis sector, Aphria, Inc. (OTC: APHQF) (TSX: APH) saw its profits and revenues rise steadily through 2016 and 2017. Aphria recently signed a letter of intent to form a joint venture with Perennial, Inc., in which the companies will collaborate on developing products for the Canadian cannabis market. Perennial’s expertise in strategic brand development will help Aphria reach more customers with its leading cannabis-based products, expanding its presence in one of the world’s most important cannabis markets.

Isodiol International, Inc. (OTC: ISOLF) (CSE: ISOL) is focused on CBD product development, with a range of offerings that includes skin cream, pain management and help with sleeping. It has recently expanded beyond its core products into support for those using cannabis-derived medicines through the creation of ISOCare. This secure platform will help to connect patients, their family doctors and physicians working with cannabis to ensure that patients receive the best possible longitudinal care.

The health benefits of cannabis and its derivatives are increasingly widely recognized. With huge potential for growth over the next few years, CBD and cannabis are drawing customers and companies like never before.

For more information on Marijuana Company of America, visit Youngevity International, Inc. (NASDAQ: YGYI)

About CannabisNewsWire

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CannabisNewsBreaks – Barron’s Article Highlights Huge Upside Potential of Cannabis Stocks

A recent Barron’s article by Steve Garmhausen, titled ‘Pot Stocks Can’t Be Ignored’, puts a spotlight on the strong performance of marijuana stocks through the first three-quarters of 2018. As the article notes, “Marijuana stocks have been an investor darling this year, with even hedge fund billionaire Leon Cooperman betting his own money in the sector.” The most recent buying frenzy in the space came on the heels of a late-August report that alcoholic beverage giant Diageo (NYSE: DEO) was in talks to invest in or partner with at least three Canadian cannabis companies. Tilray (NASDAQ: TLRY), one of the largest and most sophisticated producers of premium medical cannabis in the world, saw its shares skyrocket from $17 at its July IPO to a high of more than $62 earlier this week. Likewise, Cronos (NASDAQ: CRON), which commenced trading on the Nasdaq in February, rose from a mid-August low of $5.65 to a 52-week high of $12.89 in the wake of the Diageo news. “This is like bitcoin levels, the kind of move Tilray is making,” cannabis investor Jason Spatafora told MarketWatch. “The market is completely irrational.”

To view the full article, visit http://cnw.fm/a4kHH

About Barron’s

Barron’s is America’s premier financial magazine. It provides in-depth analysis and commentary on the markets, updated every business day online. For more information, visit www.Barrons.com

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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.

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

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

CannabisNewsWire (CNW)
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Editor@CannabisNewsWire.net