Tag: WEED

Investors Flock to Cannabis Market as Business Booms

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

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

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

Cannabis’s Money Problems

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

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

The Signs of Change

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

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

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

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

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

The Rise of Cannabis Investment

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

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

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

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

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

A Fractured Industry

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

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

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

An Industry Coming Together

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

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

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

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

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

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

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

About CannabisNewsWire

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

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CannabisNewsWire (CNW)
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www.CannabisNewsWire.com
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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.

Payment Solutions Among Innovations in the Fast-Growing Cannabis Industry

CannabisNewsWire Editorial Coverage: The legal cannabis industry, which anticipates massive growth over the next few years, is seeing constant innovation as companies move to provide essential services needed for that growth.

  • The global cannabis industry, which was worth $7.7 billion in 2016, is expected to reach $65 billion by 2023.
  • The industry’s upward trajectory is happening despite legal restrictions that have forced cannabis businesses to seek alternative payment solutions.
  • These solutions are among many innovations in the sector, which has a strong strand of research and design.

Net Element (NASDAQ: NETE) (NETE Profile) recently launched a compliant, secure payment processing solution focused on serving the legal cannabis industry. Medical cannabis company Tilray, Inc. (NASDAQ: TLRY) is supplying materials for a range of research projects around the world that are studying cannabis’ potential in medicine. Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has received massive investment from a beverage company and is likely to be one of the first companies selling cannabis-infused drinks. And the first U.S. Food and Drug Administration (FDA)-approved cannabis-based drug has just gone on sale from GW Pharmaceuticals Plc (NASDAQ: GWPH). Meanwhile, new uses for the plant are being found, as exemplified by Cronos Group, Inc.’s (NASDAQ: CRON) (TSX: CRON) research on the use of cannabis in skin cream.

To view an infographic of this editorial, click here.

Cannabis Payment Solutions

The cannabis industry is currently growing at an astonishing rate. Since 1996, its use for medical purposes has become legal in 31 U.S. states and Canada as well as a number of other countries around the world, most recently the United Kingdom. This remarkable pace of change has been accompanied by the emergence of related industries producing industrial hemp, cannabidiol (CBD) oil and support services for cannabis growers.

Despite this, legal cannabis sellers in the United States face serious problems in accessing basic business services. Because banks and payment providers are often wary of working with cannabis companies — even legal ones — these companies are forced to either accept the risks and inefficiencies of a cash-based business or seek alternative payment options. Fortunately, payment solutions are becoming increasingly viable.

The Challenge — And Opportunity

The challenge — and opportunity — with cannabis payment processing is significant enough to have drawn in businesses from outside the sector, such as global technology company Net Element (NASDAQ: NETE).

With the growth of the medical cannabis market has come more people are looking for one of the sectors most in-demand products — CBD oil, which is the concentrated liquid extract of the cannabis plant. Previously most CBD products were sold in head shops, but increasingly these products are found on the shelves of natural food stores, beauty aisles, cafes and doctors’ offices. This spread to other venues has created an even greater need for smooth transactions between merchants and consumers.

While the majority of states now allow the legal sale of some form of cannabis or its derivatives within their boundaries, cannabis providers may still find it challenging to find payment options that allow mobile payments, offer value-added transactions, and are easy for both the business and the end user. Fortunately, companies such as Net Element are positioning themselves to provide exactly what this underserved industry is looking for.

These alternative solutions, including Net Element’s Aptito and Unified Payments systems, solve the problem by offering a compliant, seamlessly integrated payment solution that is simple to use. The systems rely on the latest digital technology, which allows retailers to accept payments outside of conventional routes while remaining user friendly for customers.

More Sales, More Payments

It’s a good time for companies to expand their reach in the cannabis market, as Net Element is doing. The industry is experiencing a period of huge growth. According to recent research, the legal cannabis market was worth $7.7 billion in 2016 and is forecast to reach $65 billion by 2023, a staggering 37 percent rate of compound growth per year.

Various factors are playing into this. Cannabis is already a huge industry, but one historically run by criminal gangs. One of the reasons for wide legalization is to take that trade out of criminals’ hands. In the United States, 70 to 75 percent of the cannabis trade is still illegal, but only 30 percent of it is illicit in states with legal options on the books. As legal cannabis from regulated suppliers becomes more widely available, the expectation is customers will move away from illegal businesses. The customer base is already there, and it’s huge.

Ongoing changes in the legal landscape are also a factor. The White House has hinted that it is considering liberalizing federal cannabis laws. Shifts in medical-use cannabis are taking place in Germany and the United Kingdom. In the United States, the current Farm Bill has enough support that it is expected to legalize the widespread cultivation of industrial hemp for nonrecreational cannabis uses.

This last change ties into an unexpected and significant trend in the cannabis industry. Hemp, a nonpsychoactive form of cannabis, was used in manufacturing rope and cloth before being made illegal during the political campaign against marijuana. Now, it’s returning to legality as a source of a new material — CBD oil. This active ingredient of cannabis is used in a growing number of health and well-being products. The hemp and CBD parts of the industry alone are set to reach $22 billion by 2022. While CBD sales are still largest in the stores supported by companies such as Net Element, these products are moving towards the mainstream via health stores, beauty aisles and cafés.

Rising to the Problem

A growing sector with a need for innovative solutions is the perfect place for a company such as Net Element to act on its vision.

“We are excited to launch a legal cannabis payment acceptance solution to meet the needs of sales partners and merchants for this emerging market,” commented Vlad Sadovskiy, president of integrated payments for Net Element. “Addressing the needs of our merchants is our number one priority and we work closely with various vendors to bring our merchants state-of-the-art payment acceptance solutions.”

The cannabis sector is more than just cultivators and retailers. It also includes the companies that support those businesses, companies that are set to thrive if the industry maintains its spectacular growth. The industry’s circumstances have ensured that it has become a forward-looking one.

A Future-facing Industry

Cannabis companies constantly have an eye on the state of the legal landscape and the new opportunities it may create for the market. Because those companies are working in an industry that has been illegal, industry-building techniques and products are only beginning to be properly discussed now, with innovations in research and design being announced as a result. Constraints such as those established by the U.S. government are forcing them to find technological solutions to problems other companies don’t face.

Medical cannabis company Tilray, Inc. (NASDAQ: TLRY) prides itself on the part it plays in pushing the industry forward. With a strong emphasis on industry and innovation, Tilray is committed to research that will expand the possibilities of cannabis, carried out in partnership with hospitals and universities. It is currently supplying products for a range of clinical trials in Australia and Canada that promote the safety and effectiveness of cannabis use in tackling ailments such as childhood epilepsy and chemotherapy-induced nausea.

Research and design work at Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has been super-charged by a recent investment of billions of dollars from American drinks company Constellation Brands. One of the reasons for Constellation’s move into cannabis is the potential for drinks infused with cannabis and CBD. The partnership with Canopy Growth is likely to lead to novel products that will become part of Canada’s large licensed cannabis market next year.

GW Pharmaceuticals Plc (NASDAQ: GWPH), a company with a strong history of research in the cannabis sector, has created the first plant-derived cannabinoid medicine to be approved by the FDA, which has just become available by prescription in the United States. This introduction of a federally approved cannabis-derived medicine is an important moment for the industry and may lead to the softening of political and regulatory attitudes that have previously held business back.

Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) is investigating the use of cannabis in a relatively new area – skin care. The company has announced that it will be working with the Technion–Israel Institute of Technology to research the use of cannabinoids in skin care, research with potential to carry cannabis into more parts of the high street and the consciousness of more consumers.

From payment solutions to new products, the cannabis sector’s growth is fueling a rich wave of innovation.

For more information on Net Element, visit Net Element (NASDAQ: NETE)

About CannabisNewsWire

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

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

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

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

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

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

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

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

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

Bumper Hemp Crops Promise Profit for Farmers and Cannabis Companies

CannabisNewsWire Editorial Coverage: This year will see the largest U.S. hemp crop since changes to federal law created an avenue for production to start again, turning over decades of fallowed industry.

  • Thousands of acres of hemp will be harvested across 19 states.
  • Kentucky is seeing particularly good crops, due to near-perfect growing conditions over the summer.
  • The main product taken from these crops will be cannabidiol (CBD) oil, used in a growing range of health and wellness products.
  • Crop production is set to continue increasing in light of high demand and legal changes.

To view an infographic of this editorial, click here.

Sugarmade, Inc. (OTC: SGMD) (SGMD Profile) is profiting from this development by expanding from hydroponics into investment in hemp production, broadening its cannabis-related portfolio. Other companies are expanding internationally. Tilray, Inc. (NASDAQ: TLRY) is now working with affiliates and subsidiaries in Europe, South America and Australasia. Cannabis grower Canopy Growth Corp. (NYSE: CGC) (TSX: WEED) has drawn billions of dollars in investment from the beverages industry as big companies look to get into the market. And Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) has established an extensive network of supply agreements across Canada, which will help to raise sales and awareness of cannabis and related products. New uses are also set to increase demand, thanks to research by companies such as Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON).

Farmers Count the Green from Growing Hemp Harvest

As summer turns to fall, a small number of U.S. farmers are bringing in a new harvest — hemp. For some states, this is the first time that the crop has appeared in more than 50 years because hemp had been outlawed under sweeping anti-cannabis legislation. The last few years have seen significant changes, primarily because the nation’s 2014 Farm Bill funding provisions authorized limited hemp cultivation, and several states began supporting the crop. Now hemp is making a comeback.

This promises to be a good year for hemp. Early indications are that farmers will see a robust crop with a high market value. The growth of the market for CBD oil means that there are plenty of outlets not just for hemp fibers but also for the plant’s other derivatives. And these first successful harvests, accompanied by pending legal change on the federal level, are set to establish hemp as an important crop over the next decade.

The 2018 Hemp Harvest

The past year has seen big growth for hemp. In 2017, the acreage of hemp production expanded by 163 percent through agricultural sites in 19 states. Now the largest hemp harvest of the new era is expected. It’s good news for companies invested in hemp, such as Sugarmade, Inc. (OTC: SGMD).

Like several of the companies involved in the hemp industry, Sugarmade was drawn to the sector by an interest in the wider cannabis market. The company’s main business is the supply of hydroponic equipment used for indoor agriculture. The growth of the legal cannabis market has fueled profits for Sugarmade as growers have valued its supplies. Now the company is diversifying its presence in the thriving sector.

When it comes to driving business, hemp is a beast that is very different from recreational marijuana. While both are forms of cannabis, industrial hemp has very low quantities of tetrahydrocannabinol (THC), the ingredient in cannabis that gets users high. In Kentucky, for example, hemp plants must have no more than 0.3 percent THC. Hemp is also grown differently, using large-scale outdoor cultivation rather than the intensive indoor methods used for other forms of cannabis.

Moving into this part of the market involved a different approach by Sugarmade. Instead of simply relying on its presence as a supplier of tools and equipment for profits, the company has committed a million dollars to investment in Hempistry, Inc. Hempistry’s hemp cultivation is based in Kentucky, the state with the third largest acreage of hemp growth, just behind Oregon but far behind Colorado, which is home to nearly as much hemp as the next three states combined.

While the top states have thousands of acres of hemp under cultivation, others are just starting to get involved, thanks to smaller scale projects. Washington State saw its first 175 acres of hemp planted in 2017, while Minnesota went from 51 acres in 2016 to 1,205 acres in 2017.

Kentucky has seen a particularly good year for hemp. Almost perfect growing conditions over the summer and early fall are setting it up for a bumper harvest. Sugarmade executives, including CEO Jimmy Chan, have visited the Hempistry project to inspect it and found that it lived up to the hype. It is seen as ultra-premium-grade hemp, perfect for extracting one of the biggest products to come from hemp — CBD oil.

CBD — Key to the Hemp Market

Hemp isn’t a new crop, even if its appearance in current markets seems like a novelty. As long ago as the Mayflower pilgrimage, hemp fibers were used in North America to produce rope and canvas for sailing ships. Even in the early 20th century, just before it became illegal, it was mostly grown for these fibers.

Now, that has changed.

Hemp fiber still has value in producing everything from cloth to construction materials. But the real wealth is in CBD oil. This is why Hempistry has built a crop labeled as ultra-premium and why Sugarmade determined to invest one million in the business.

While CBD doesn’t have the psychoactive effects of THC, it’s still an active ingredient in cannabis that produces a chemical response in users. Research into its effects is in its infancy, thanks to so many years without businesses backing. But studies over the past decade have led to its use in a wide range of health and wellness products. Some of the highest-profile research has focused on its potential use in tackling epilepsy, but CBD oil is turning up in a huge range of products that appear to impact everything from pain management to improving mental processes.

The CBD market is growing enormously in the United States and beyond. The large, healthy harvests coming out of Kentucky should find no shortage of demand for the oil extracted from its plants. Sugarmade’s first foray into CBD has all the signs of success.

Where Next for Hemp?

Based on these results, Sugarmade has already begun plans to significantly expand its hemp operations next year. Hempistry has optioned 23,000 acres for potential hemp cultivation, more than is currently growing in the top five states put together.

Statistics taken from the Hemp Business Journal show that the U.S. hemp industry saw at least $820 million in revenues in 2017. Some experts forecast that number to increase to more than a billion dollars in 2018 and continue to grow at a compound rate of 14 percent per year until 2022. This increase is driven in part by growth in demand and in part by changes to the status of the hemp industry.

Central to this is the new version of the Farm Bill currently being considered by the U.S. Senate. The bill includes clauses with cross-party support for hemp cultivation that would expand the potential for farming. Hemp is currently restricted to trial crops and scientific studies, but under the new bill, it could be grown as a regular crop by farmers across the country.

This legal change will let companies such as Sugarmade support the cultivation of large quantities of hemp to meet the huge demand for CBD oil. And if that demand keeps growing, the industry could take off at an exponential rate.

Reaping the Benefits

This growth isn’t just taking place in America. Demand for CBD oil and other cannabis-related products is expanding around the world, as is the industry meeting that demands. Tilray, Inc. (NASDAQ: TLRY) manufactures products used by thousands of patients, researchers and physicians across the globe, and is building that international reach. In addition to affiliates in Australia, Canada, Germany, New Zealand and Portugal, the company recently acquired Alef Biotechnology SpA in Chile.

One of Canada’s largest cannabis companies, Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) has drawn jaw-dropping financial backing from beyond the cannabis industry. American beverage company Constellation Brands’ $4 billion investment will allow the two companies to develop CBD-infused drinks, building a leisure market for ingredients derived from hemp. With a corporate giant such as Constellation taking an interest, pressure is likely to grow for further reform in Washington, easing the way for growth in the hemp industry.

Canopy Growth isn’t the only big player in Canada, where the recent legalization of recreational cannabis is set to supercharge the industry. Aurora Cannabis, Inc. (NYSE: ACB) (TSX: ACB) is one of the big players and has already established supply agreements that will let it sell products in provinces across the country. Increasing public awareness of cannabis, driven in part by such supply channels, will also increase awareness of related CBD-based products, with a supplemental boost for hemp.

Meanwhile, researchers continue to find new uses for CBD and other cannabinoids. Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON) has recently announced new work with the Technion–Israel Institute of Technology to explore the use of cannabinoids in skin care. Not only are existing markets expanding, but new ones are being created as additional promising uses for cannabis-based products are found.

This year’s bumper hemp crop looks to be just the beginning of a burgeoning industry with an exciting future.

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

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

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

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

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

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

Cannabis Ignores Wider Stock Market, Follows Its Own Path

CannabisNewsWire Editorial Coverage: Following a tumultuous month, cannabis continues to carve its own path rather than following the lead of other stocks.

  • As the stock market plummeted earlier this month, cannabis companies stayed strong, buoyed up by legislative changes in Canada.
  • The cannabis market appears set for continuing growth as it expands into expected sales worth billions of dollars across North America.
  • While it still faces regulatory challenges in some locations, this market sector is preparing for corporate big players to move in.

Companies with varied interests are moving into the cannabis sector, such as lifestyle business Youngevity International, Inc. (NASDAQ: YGYI) (YGYI Profile). While the stocks of some cannabis players such as Tilray, Inc. (NASDAQ: TLRY) appear overvalued, this reflects problems with valuation tools more than the stocks themselves. The sector has developed its own heavy hitters, such as Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), whose millions of square feet of growing space are now leading to sales into the United States as well as Canada. Some companies are focused only on medical products, such as GW Pharmaceuticals Plc (NASDAQ: GWPH) with its cannabis-based prescription medicines. But it’s the recreational side of the cannabis space that has drawn in Constellation Brands Inc. (NYSE: STZ), a huge beverage maker that has invested $4 billion in a cannabis cultivator.

To view an infographic of this editorial, click here.

Cannabis Stocks Versus the Market

It’s been an interesting month for cannabis stocks.

Three weeks ago, cannabis looked like a particularly strong bet. As the wider stock market fell, cannabis stayed strong. Some cannabis stocks even saw significant rises in value amid promising developments from those companies. Legalization in Canada undoubtedly played a part in their success, with the run-up to Oct. 17 seeing predictions of massive profits for cannabis companies. But some commentators argued that it was part of a bigger trend in which cannabis stocks are among those that don’t follow other market indicators.

Then came the week following legalization and a notable fall in the value of cannabis shares. The hype around these companies was punctured by market shifts. Had they fallen in line with the rest of the market? Was the reality of Canadian legalization catching up with the imagined utopia? Or was this simply a downturn for a sector trending separately from competitors?

More to the Market

To understand shifts in cannabis shares, one needs to take a look at the state of the industry.

The cannabis industry isn’t self-contained. The spread of legalization and the emergence of derivative products has created a diverse sector combining exciting startups with older companies dipping their toes in a novel market. Alongside the pure-play cannabis brands, there are pharmaceutical businesses and even lifestyle companies such as Youngevity International, Inc. (NASDAQ: YGYI).

These companies are selling three distinct products.

First, there’s medical cannabis. Supplied on prescription to deal with pain and nausea, cannabis’ medical properties remain hotly debated but that hasn’t stopped the state-legalized use of it from spreading across more than half of the United States.

In material terms, recreational cannabis has exactly the same chemical makeup as some of the medicinal products. What’s primarily different is the way that it’s marketed, sold and used. This is cannabis used for fun and relaxation. It’s now available by law in nine U.S. states and Canada.

Then there are the derivative products. Most, including those sold by Youngevity, use cannabidiol (CBD). Cannabidiol is an active ingredient that doesn’t get users high. CBD can be extracted from cannabis, both from the marijuana plant as well as its tetrahydrocannabinol (THC)-free variety known as industrial hemp. Research into CBD is still in its infancy, but it is already used in a wide range of health and wellness products.

Over the past 20 years, cannabis has grown from a black market drug to a major public market product in North America, with growing influence in the rest of the world. From the first stirrings of a medical market to the current state of affairs in which a G8 country has a recreational market and the White House is hinting at U.S. reforms, it’s been a fast ride. As a result, there’s still a lot of uncertainty about cannabis’ destiny.

Where Now for Cannabis Shares?

The idea that weed doesn’t correlate to other stocks seems to have some truth. This was shown by the events of early to mid-October, when legal reform and individual brand announcements set it on an opposite trend from other shares. While the Dow has headed towards its worst month since May 2010, cannabis stocks have carved their own path. It looked like good news for companies such as Youngevity.

For now, cannabis is offering a real challenge for traders. Cannabis stocks look overvalued based on traditional valuation metrics such as price-to-book ratio, price-to-earnings ratio or price-to-sales ratio. But these metrics are based on past results, not future valuations. Given ongoing changes, the future performance of cannabis companies will be nothing like the past. Whole new customer bases are opening up, bringing staggering potential for growth.

In the next month, there will be votes on whether to allow recreational cannabis in North Dakota and Michigan, at least one of which is likely to pass. North of the border, Canada is planning to legalize cannabis-infused edibles next year. That means a whole new sector of profit opportunities.

Then there’s the impending arrival of big players in the market. Big pharmaceutical and consumables companies haven’t paid much attention to cannabis yet, as its value is relatively low compared with their existing revenues. But with the market expanding, both groups may get involved — beverage and tobacco companies pursuing a natural spin-off from their existing businesses and big pharma in pursuit of new medicines. Those are moves that will bring disruption unrelated to wider markets.

As a lifestyle brand selling both coffee and cannabis derivatives, Youngevity has already placed itself to enter this cross-over market. And with its new HempFX™ line now available online, it’s moving fast to profit from changes in the cannabis market.

Riding High

Alongside medical and recreational marijuana, CBD is seeing huge growth. Youngevity CEO Steve Wallach has spoken about the huge potential of CBD products in direct sales channels, not just in America but around the world. His company is riding high on this trend with the announcement of new CBD products.

Youngevity’s first offering in the CB market is the HempFX™ product line, a trio of three different hemp-derived cannabidiol oil products that contain organically grown products in proprietary formulas designed for a variety of everyday use.

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.

Cannabis’ Long-Term Prospects

The signs remain good for cannabis companies. One study predicts that sales in Canada could reach $7.1 billion in 2019, $4.3 billion of that coming from the recreational market.

The boss of cannabis company Tilray, Inc. (NASDAQ: TLRY) believes that the market in the United States will soon be worth $150 billion. A leading player in the medical cannabis market, Tilray has established agreements with Canadian partners that will let it profit from changes in that country, changes that could radically improve its earnings.

Other companies are also making significant movements in the market. Drinks giant Constellation Brands, Inc. (NYSE: STZ) has invested $4 billion in Canopy Growth Corp. (NYSE: CGC) (TSX: WEED), showing that it is serious about moving into the cannabis market. Canopy Growth is one of Canada’s largest cannabis companies, with 5.6 million square feet of growing space. Like Tilray, it’s looking at the wider North American picture and carried out a legal transfer of cannabis to the United States, the first such transfer with a Drug Enforcement Administration (DEA)-issued permit.

Canopy Growth’s strong performance has drawn the attention of companies outside the cannabis sector, leading to the headline-making investment from Constellation Brands earlier this year. Many commentators have talked about this as a chance for Constellation to produce cannabis-infused beverages, a largely untapped market likely to take off once new rules come in Canada next year. But it may represent a broader play, as alcohol and tobacco companies aim to take control of cannabis and fill the gaps as sales of their existing lines fall.

Some companies are focused only on the medical market. GW Pharmaceuticals Plc (NASDAQ: GWPH) has created the first Food and Drug Administration (FDA)-approved cannabis-based prescription medicine as part of its substantial research and design program. Even as the recreational market and CBD steal its thunder, the medical market remains strong.

Clearly, there are still big uncertainties for the cannabis market. Questions about regulation and how far legalization will spread hang over everybody’s heads. Yet companies are thriving despite this, showing the rewards that so often come with risk and innovation.

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

About CannabisNewsWire

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

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

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

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

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

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

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

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

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

420 with CNW – UCLA Team to Investigate the Painkilling Effects of Cannabis

The U.S. Centers for Disease Control and Prevention (CDC) reported that 42,000 Americans died from an overdose of opioids in 2016 alone. Meanwhile, the consumption of cannabis by members of the American public has been growing rapidly over the years. How are these two issues related to the planned research on cannabis?

Plenty of anecdotal evidence exists to support the claim that cannabis has painkilling abilities. Several scientific studies also point to the possibility of cannabis having painkilling effects. However, little reliable scientific information is available to support or disprove those claims.

That may no longer be the case if the proposed study by a team of researchers from the University of California Los Angeles (UCLA) is completed successfully.

The researchers would like to ascertain what combination of CBD and THC provides the highest degree of painkilling effects for opioid patients.

Dr. Jeffrey Chen is the Executive Director of the Cannabis Research Initiative, which came up with the idea of conducting this study.

The actual study was designed by a professor of psychiatry and pharmacology, Edythe London. She explained that the research isn’t intended to provide evidence for or against the cannabis industry. The study is a scientific undertaking to understand a substance that is reputed to have so many medicinal effects.

The double-blind, placebo-controlled clinical study seeks to shed some light on one particular claim, the claim that cannabis can help to ease the pain suffered by patients.

The success of the study in proving that cannabis can combat pain would provide a glimmer of hope that a solution may be at hand for the opioid crisis facing the nation. Such a solution is desperately wanted, given the fact that about 40 percent of the opioid overdose fatalities reported by the CDC in 2016 were connected to prescription opioids.

Dr. Chen points out that the scientific community needs to play catch up quickly so that more information can be available to the public about cannabis. This information could save people from falling for yet-to-be-substantiated claims by cannabis product manufacturers.

However, the researchers have a huge task to overcome two major obstacles before the study can commence.

First, cannabis is federally regarded as a schedule 1 controlled substance, “a substance without any medical value and has a high potential for addictiveness.” The researchers must convince the Food and Drug Administration (FDA), as well as the Drug Enforcement Agency (DEA), to grant them permission to proceed with the study. It isn’t clear how easy, or how quickly, such regulatory approval can be secured.

Secondly, the researchers must look for funding for their study. Some money has been secured from UCLA’s Semel Institute for Neuroscience and Human Behavior and from some private donors. Additional funding requests have been made to local and federal sources. Entities like Canopy Rivers Corporation (TSX: WEED) (NYSE: CGC) and FinCanna Capital Corp. (CSE: CALI) (OTC: FNNZF) must be keeping their fingers crossed, hoping that the necessary funding and approval is obtained so that the debate on the painkilling effects of marijuana can be put to rest once and for all.

More from CannabisNewsWire

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.

To receive instant SMS alerts, text CANNABIS to 21000

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

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Editor@CannabisNewsWire.net

Government Interest in Hemp Diversity Signals Strong Future for American Cannabis Industry

CannabisNewsWire Editorial Coverage: Recent U.S. government interest in ensuring industrial hemp supply signals a period of growth for the cannabinoid industry. Marijuana Company of America Inc. (OTC: MCOA) (MCOA Profile) is contributing to this growth through new hemp cultivation projects in both Canada and the U.S., to support its hempSMART subsidiary. Cronos Group Inc. (TSX: CRON) (NASDAQ: CRON) is benefiting from a cross-border venture that gives it access to new scientific advances and has seen its shares reach top exchanges. Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) has secured government licensing needed to become one of Canada’s leading retailers, while acquiring a subsidiary company in Lesotho to cater to an international market. Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF) has announced a new range of products that provide medical cannabis with a high concentration of active ingredients. OrganiGram Holdings Inc. (TSX-V: OGI) (OTCQB: OGRMF) has struck a deal for access to advanced extraction technology, while also gaining a license to export its products to Australia.

Senate Signals Support for Cannabis Seedbank

The United States government has a complicated relationship with cannabis. Since the mid-20th Century, it has clamped down on the use of the plant for any purpose, particularly during the “war on drugs” from the 1980s onward. Over the past decade, some states have legalized the farming and sale of the cannabis sativa plant either as medicine, as a recreational drug, or in the form of industrial hemp. But the federal government has remained reticent about shifting its stance.

It seems that perceptions are now changing. The Senate Appropriations Committee, one of the most powerful bodies in government, has acknowledged the growing importance of industrial hemp for American farmers and called for the creation of a hemp seed back. Half a million dollars will be spent ensuring that America has a genetically strong stock of high quality hemp seeds, to support both farmers and researchers.

Building Better Strains

While the committee’s plan to build up seed stocks is intended to support the national interest, some companies are already working on improving industrial hemp growth for reasons of self-interest. Developing a diverse range of strains, each tailored to different purposes, is important for these companies. Industrial hemp is often valued for the quality of its fibres and the medicinal cannabinoids that can be extracted from the plant and implementing better growing techniques can lead to improved crops yields.

Among the companies looking to create more efficient hemp yields is the Marijuana Company of America (MCOA Profile). A company with a diverse portfolio of investments and joint ventures in the cannabis and industrial hemp sectors, MCOA is involved in several projects intended to improve the plants available to producers and consumers.

Together with the Global Hemp Group, MCOA has launched a project to encourage industrial hemp cultivation in New Brunswick. Previous attempts to develop the industry in the region failed twenty years ago, but now the market for the product has grown. The aim is to develop an industrial cluster around the hemp crop, ensuring a market for farmers, consistent job opportunities, and to implement the proper structure to develop Hemp Agro-Industrial Zones, or HAIZ, projects in other areas.

Scientific testing to improve the growing process is an important part of HAIZ. This has been made possible through cooperation with the Canadian government’s Department of Aquaculture Agriculture and Fisheries (DAAF). The department will be contributing fertilizers to the project and carrying out fertility trials on reserved plots of land. Together with soil testing and crop rotation, this will help to develop more fertile organic growing conditions for the hemp.

With legalization of the extraction of cannabinoids from industrial hemp on the horizon, Canada is an important market for cannabinoid-based companies. Recreational use alone is expected to contribute $900 million to the industry, which already serves medical users in Canada. The work in New Brunswick gives MCOA an important foothold in this market.

More Facilities for a Growing Market

The collaboration with GHG is now taking place on both sides of the border, thanks to the establishment of a new industrial hemp project in Scio, Oregon. Once again, the companies are collaborating to create a facility that will push forward techniques in hemp cultivation while providing a steady profit.

The heart of this operation is a 109-acre property in the Willamette Valley, a fertile area with a recent history of successful cannabis cultivation. The site has soil rich in organic matter and established irrigation infrastructure, meaning that it is well set to support a new agricultural project. The use of high yield hemp clones will help to maximise the output of the project.

Multiple approaches to cultivation will feed into the Scio facility’s output. Traditional outdoor cultivation will take place alongside five greenhouses, which will provide over 19,000 square feet of indoor growing space. This will ensure a year-round supply of hemp.

As in New Brunswick, data collection and analysis will play an important part at the farm in Oregon. By checking on the performance of the growing techniques and the quality of the plants, the companies aim to support strains which are rich in cannabidiol (CBD), an active ingredient important in derivative products designed to support well-being.

A Growing Global Industry

The new project comes at a perfect time for MCOA. Demand for CBD is high thanks to the growing global market for cannabinoid-based products. A facility that can provide the companies with a steady supply of high-quality CBD plants will make it easier to take a substantial place in this expanding sector.

One of MCOA’s most important subsidiaries is hempSMART. This company develops and markets hemp-based wellness products that make use of cannabinoids, the active compounds that can be extracted from the hemp plant. HempSMART also aims to educate consumers on the possibilities offered by hemp, possibilities that the U.S. senate has started to acknowledge through its establishment of the new seed bank. Educators and health professionals are among the experts hempSMART has brought into its team, to make it more than just a source of wellness products.

With investments in everything from payment systems to cultivation facility rentals, Marijuana Company of America has built a broad base of innovative cannabis-related products.

More Companies Signal Strong Future

It’s a sign of the health of cannabis industry that MCOA faces competition from a number of companies, both in hemp production and in the wider cannabis market.

Cronos Group, Inc. (TSX: CRON) (NASDAQ: CRON) is one of the highest profile companies in this sector. In February 2018, it became the first pure play cannabis company traded on the Nasdaq, a sign of the interest in cannabis by mainstream investors. A recent upgrade of its shares on the Toronto Stock Exchange reflects the way that cannabis companies are solidifying their position, proving that they are here to stay. A recently announced cross-border venture with MedMen means that Cronos will benefit from scientific advances being made by the Los Angeles company, which prides itself on its research work.

Canopy Growth Corporation (TSX: WEED) (NYSE: CGC) is becoming a leader in the cannabis retail field. Within Canada, it has established itself as a trusted company, being granted one of the first retail licenses in the province of Manitoba. This gives Canopy a strong starting point to sell to customers when recreational cannabis becomes legal in Canada later this year. Further afield, it recently acquired a cannabis company in the Kingdom of Lesotho. This will provide access to an African market largely ignored by western cannabis companies. It will also let the company grow medical cannabis in ideal conditions, with 300 days of sunshine a year, excellent humidity, and great growing conditions for greenhouse grown cannabis.

One of the largest cannabis companies, Aurora Cannabis Inc. (TSX: ACB) (OTCQX: ACBFF) has recently expanded its activities to cover both the recreational and medical sectors. The company leans heavily on research to improve its sales, with the announcement in late May of a new range of high-THC content cannabis products. It has also made moves to expand its market reach over recent months, with the largest corporate acquisition in the history of the cannabis industry in the form of the purchase of CanniMed, as well as a supplier agreement with Shoppers Drug Mart.

OrganiGram Holdings Inc. (TSX-V: OGI) (OTCQB: OGRMF) is looking beyond the American market. The company has recently been granted a license to export cannabis to Australia. This will introduce OrganiGram’s product to a new territory through a deal with a licensed Australian medical cannabis dealer. Organigram’s success will be further bolstered by a recent deal with TGS Colorado, a company with expertise in extract technology. This will provide Organigram with access to best-in-class technologies, products, and designs with which to make the most of its expanding cultivation base.

Increasing government backing, combined with advances in cultivation and technology, ensures that there’s a healthy future for all varieties of cannabis, from medical marijuana to industrial hemp.

For more information about Marijuana Company of America, please visit Marijuana Company of America (MCOA).

About CannabisNewsWire

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

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

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

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

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

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

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

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

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

Canadian Cannabis Sector Thriving Despite Slow Legalization Process

CannabisNewsWire Editorial Coverage: Despite legislative delays, the legalization of recreational cannabis will take place in Canada, likely by the end of summer at the latest. Companies are coming to grips with the licensing process and are ready to reach this new market. One of the leaders in the new industry is Choom Holdings, Inc. (CSE: CHOO) (OTCQB: CHOOF) (CHOOF Profile), which has gained licensing experience and developed a slick brand designed to appeal to the recreational market. Grower and seller Cronos Group, Inc. (TSX: CRON) (NASDAQ: CRON) is eyeing the international market through a cross-border deal with MedMen. Canopy Growth Corporation (TSX: WEED) (OTC: TWMJF) has been focusing on retail licenses and is now an approved supplier for every province that has gone through an approval process. Aphria, Inc. (TSX: APH) (OTCQB: APHQF) is moving from medical into recreational cannabis though an expansion strategy that has seen growth in profits and revenue. Hiku Brands Company. Ltd. (CSE: HIKU) (OTC: DJACF) has gained an early sales license for its subsidiary company and is setting up state-of-the-art growing facilities ready for the legal change.

A Matter of Time

Ever since Justin Trudeau and the Liberal party were elected on a pro-legalization platform, Canada has been heading towards an in-plain-view cannabis market. Bill C-45, legalizing the trade, was passed in the House of Commons by a two-thirds majority last November and is making its way through the Senate. The passage of the bill has taken longer than expected, but even the Conservatives are not trying to block its passage. A whole new consumer sector is coming to Canada.

The delays have largely been caused by concerns about practicalities. The recreational cannabis market will be tightly regulated, just as the medical market is now. Conservatives and Liberals alike want to ensure that the police and local authorities have time to prepare. Though this concern is causing delays, it also creates an opportunity for companies that are well prepared. A company that can show it is organized, responsible and compliant with government regulations will have an edge in getting licensed and started in the new market. Balancing that with a consumer-facing image of a fun, relaxing product may be key to early success.

Responsible Groundwork

One of the companies leading the way in this is Choom Holdings (CSE: CHOO) (OTCQB: CHOOF). A purpose-built recreational brand, Choom is led by an experienced management and leadership team that understands the complexities of the market it is entering. President and CEO Chris Bogart has more than twenty years of experience in international capital markets and was a co-founder of InMed Pharmaceuticals and Magnum Uranium. He has structured complex equity financing transactions in the United States, Europe and Canada.

The team has been preparing for the coming change in the cannabis market for more than four years. Choom has been going through the process of applying for an ACMPR (Access to Cannabis for Medical Purposes Regulations) license in Vernon, B.C. In 2017, it has offers to acquire three additional applicants, including one already involved in the process in Vancouver Island, B.C. The company is working diligently to be ready to sell cannabis as soon as legalization comes.

Going through the cannabis licensing process could provide Choom with another advantage. Its staff has developed the skills and experience to quickly navigate the regulatory process and has proven to authorities its ability be become a responsible cannabis grower. The company has been working for future retail growth and distribution. With Alberta alone expecting to license 250 stores in the first year (http://cnw.fm/Wgt5F), regulators are clearly going to be busy working through all the applications. Companies such as Choom that have experience, a good reputation and a well-presented application may have a critical edge in successful retail licensing.

Effective Supply Chain

The Canadian cannabis industry is estimated to be huge. Deloitte notes that it could be worth as much as $22.6 billion per year (http://cnw.fm/eOkR5). Even the more conservative estimates predict a market larger than spirits and nearly as large as wine. That’s a lot of profit available to companies that can move in quickly and provide a reliable retail experience.

Choom could provide that through its fully integrated seed-to-sale supply chain. The company will be growing its own cannabis in ACMPR-licensed facilities. The company has four ACMPR licenses in late-stage review: one applicant has been acquired with three others under offer, as well as its first applicant expecting to receive a cultivation license from Health Canada in the next few weeks. There is approximately 68,000 square feet of facilities being retrofitted to increase growing capacity in time for legalization, with a further phase of expansion planned for later in the year, thereby building production capacity to produce a steady supply of cannabis.

This cannabis will be packaged as Choom brand products and sold through a series of Choom stores. The company will run corporate stores, with other stores being operated across Canada by independent retail investor/owners. This plan is designed to ensure that Choom products have a prominent place in the Canadian retail market and can be found easily by consumers.

Great Branding

While an efficient supply chain is important to placing products in front of customers, it’s the presentation of the product that will draw consumers in. Again, Choom appears to be well prepared.

With tight marketing restrictions in place, cannabis companies won’t be able to rely on mass advertising to raise customer awareness. Instead, they’ll need appealing brands that quickly attract consumers and lead to word-of-mouth recommendations.

Choom’s brand is built around a fun, relaxed style that draws on Hawaii’s mellow atmosphere and the cannabis culture on the island in the 1970s. The name of the company itself comes from island slang, including “the Choom gang,” a well-known group from that era that famously included the hippest president in American history, Barack Obama. It’s a strong, clearly identifiable brand style, firmly established to attract the recreational market.

The strength of the brand is supported by the design of the company’s retail stores. Designed by the team behind some of the most recognizable retail spaces around, Choom stores are designed with a cool and modern layout and are designed to appeal to serving everyone, from current users to “curious customers.”

The combination of clean white space and open concept creates a comfortable, familiar atmosphere that is meant to make the stores accessible to both existing cannabis consumers and new customers. Plants and sofas signal that this is not just a shop but a place to hang out, a part of that relaxing Hawaiian vibe.

Cannabis Companies Prepare for Growth

Other Canadian cannabis companies are also preparing for an era of huge growth.

Toronto-based cannabis grower and seller Cronos Group, Inc. (TSX: CRON) (NASDAQ: CRON) has become the first pure play cannabis company to be traded on Wall Street (http://cnw.fm/BQk4n). This shows the growing acceptance of the cannabis market not just in countries where the drug has been licensed but in the broader investment community. Investors see growth ahead for these companies and are taking the opportunity to invest before prices rise. As a cannabis company with international ambitions, Cronos is also distinctive. Its corporate goals include becoming a global force, and it has created a first-of-its-kind cross-border venture with Los Angeles-based cannabis retail brand  MedMen (http://cnw.fm/wLhX4).

Canopy Growth Corporation (TSX: WEED) (OTC: TWMJF) is establishing its retail presence. The company has been chosen by the government of Manitoba (http://cnw.fm/fEb9K) as one of the first companies to set up licensed cannabis retail stores in the province. Of the four Canadian provinces that have established retail and supply frameworks, all have now chosen Canopy Growth as a trusted supplier, giving the company a strong place in the retail market.

Aphria, Inc. (TSX: APH) (OTCQB: APHQF) is a successful company in the medical cannabis market, with both profits and revenues consistently rising throughout 2016 and 2017. The company is looking to continue this expansion, with further growth in the medical sector alongside expansion into the recreational cannabis market. It has signed a deal to buy Nuuvera Inc. (http://cnw.fm/O3oHY) and shows no sign of slowing down.

Like Canopy Growth, Hiku Brands Company, Ltd. (CSE: HIKU) (OTC: DJACF) has gained one of the early licenses to set up cannabis retail stores through selection by the Manitoba government (http://cnw.fm/1EdHP). This license for its subsidiary Tokyo Smoke will put Hiku in a strong position to sell to a new customer base once Bill C-45 reaches its expected passage. The company is near the end of the ACMPR application process and has a state-of-the-art growing facility, with another set to be completed by the end of the second quarter of 2018. It should, therefore, have a vertically integrated business, with a complete supply chain from growth to sales.

Delays in the passage of Bill C-45 have caused no slowing in the growth of the Canadian cannabis market. If anything, the extra time has allowed companies to better prepare. When the recreational market opens later this summer, several strong businesses appear to be ready to step up and play their part.

For more information on Choom Holdings, please visit Choom Holdings (CSE: CHOO) (OTCQB: CHOOF).

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.

Pliability of Canadian Cannabis Industry Triggers New Business Development

CannabisNewsWire Editorial Coverage: The Canadian cannabis industry is pliable, changing shape amid mounting public support, favorable legislative action, an influx in capital, and the integration of alcohol and tobacco. For years, this massive industry was entirely illegal; its potential unavailable to legitimate investors. As Canada heads toward legalizing recreational cannabis later this year, however, the continuous sculpting of the industry provides investors a wealth of consumer-driven investment opportunities. Choom Holdings, Inc. (CSE: CHOO) (OTCQB: CHOOF) (CHOOF Profile) is targeting the recreational user via its own brand of high-grade handcrafted cannabis. Cannabis lifestyle brand Hiku Brands Co. Ltd. (CSE: HIKU) (OTC: DJACF) (DJACF Profile) recently received a $10 million equity investment from Aphria, Inc. (TSX: APH) (OTC: APHQF), denoting high expectations for recreational cannabis. Canopy Growth Corp.’s (TSX: WEED) (OTC: TWMJF) recent investment from a big alcohol brand reveals a glimpse of how separate sectors of recreational consumables are interwoven. This strategic blending means big business for cultivators such as ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF) (ABCCF Profile), a recognizable licensed producer and seller of pharmaceutical-grade cannabis products.

Canada Heads for New Highs

An estimated 5 million Canadians already smoke cannabis once a month, with another 900,000 expected to join them after legalization. In 2015, the country was already spending nearly as much money on cannabis as on wine, indicating the huge business potential of this sector. The question is, how will companies tap into that wealth?

One of the big changes expected over the next few years is the integration of recreational cannabis with the alcohol and tobacco industries. With their experience of producing, distributing, and marketing recreational consumables, these businesses have the most relevant experience to shape the marketplace. Their investment and expertise will help cannabis companies find creative ways to cater to consumer demand, not just medical users.

Brand Identity

Among the companies preparing to make the most of this opportunity is Choom (CSE: CHOO) (OTCQB: CHOOF). Based in the Okanagan region of British Columbia, the company is well-placed to make the most of the production, sales and marketing opportunities offered by the impending retail market, which has a forecast value of $4.9 billion – nearly $9 billion (http://cnw.fm/xch0D).

With its relaxed, youthful brand, Choom is positioning itself to reach the ideal growth market of cannabis users. Consumers in their 20s tend to be more socially liberal than their elders. They have substantial disposable incomes and are used to spending a large part of them on consumables such as food, drink and tobacco, and are therefore likely to make up a large part of the recreational cannabis market.

To connect with these consumers, Choom has created a hip and modern brand inspired by Hawaii’s culture and relaxed atmosphere. The brand’s story taps into the history of the 1970s “Choom Gang,” a group of buddies in Honolulu (including former President Barack Obama) who knew how to relax with “choom,” the local’s term for marijuana. Choom’s trademark slogans pivot off another unconventional phrase, “Say Hello to…”, bringing a heady dose of good times and good friends together as the company invites investors to “Say Hello to Choom™” as it lights up the adult recreational cannabis market in Canada.

Reaching Out to Customers

This aesthetic extends to the design for Choom’s “Aloha”-style dispensaries. It’s a clean, modern, stylish look, crafted by the designers behind some of the world’s most recognizable retail environments. Couches, pale wood and carefully chosen banner fonts create a relaxed atmosphere. Clean white shelving and neat presentation make a space reminiscent of Apple stores — another well-recognized brand with a strong hold on the disposable income of millennials.

One of the most important factors in marketing recreational cannabis is going to be establishing such an aesthetic. Brand specialists will want to leave the cold formality of medical use and the seedy criminal associations behind, while retaining hip association with cannabis. Choom’s branding is ideally designed to make this shift, while establishing prestige brands for the discerning consumer.

The stores are designed to appeal to the widest possible market. Choom is aware that its core business will rely on existing users looking to obtain their cannabis legally, and their stores will make a comfortable shopping environment for these consumers. But there are also the “curious customers” — those without a medical need for cannabis and who did not want to consume it illegally. They’re expected to fuel a 19 percent increase in the number of cannabis users in Canada. By creating a familiar shopping space, Choom will make it easier for them to enter the market.

Experience and Integration

Choom’s business proposition extends beyond the retail face of the cannabis industry. It is also looking to place itself within the ancillary markets that will support the consumer business. Testing labs, security, infused products, consumption paraphernalia and crop cultivation will all be part of an expanding industry. Choom is looking to establish a vertically integrated enterprise, from cultivation through to sales, all under a single hip consumer brand.

Choom’s application with ACMPR (Access to Cannabis for Medical Purposes Regulations) has received security clearance and is now in the detailed review stage. The company has also submitted a second late-stage ACMPR application, which is in its confirmation of readiness stage. Aggressively preparing to reap the benefits of this license, Choom has retained Cannabis Compliance Inc. to help expedite Choom’s initial license applications and ready the company for legalization of recreational marijuana.

One of Choom’s greatest strengths is its experience. The managers and directors have decades of experience covering investment, entrepreneurship, business development and pharmaceuticals. Their knowledge of the existing Canadian medical cannabis market ensures that strategic decisions are backed up by real expertise and analytical insight. The company has over five years of experience in the cannabis sector. It knows how to produce naturally grown premium cannabis. Existing license and production assets mean that Choom is well positioned to scale-up rapidly once legalization takes effect, to meet the anticipated Canadian market. This will put it ahead of companies set up in response to the legal change and provide an accelerated path for rapid market growth.

This is exemplified by the company’s existing cultivation facilities at Vernon and Chemainus. Both are receiving a state-of-the-art retrofit, with expectations that Vernon will be completed by July, the same month Canada legalizes recreational cannabis use.

The Vernon property will boast 6,800 square feet of growing space, capable of producing 660 kg/year of cannabis for an estimated revenue of $6.6 million, excluding oils. A potential phase 2 of this facility would double the size and enable additional growing capacity of 1,500 kg/year, also doubling the facility’s revenue.

While the second facility, on Vancouver Island, is smaller – 4,500 square feet – its retrofit is also slated to be completed by July 2018. Plans include doubling this space, which would add about $9 million in annual revenue, excluding cannabis oils.

It’s this sort of established enterprise that will allow Choom to build brand loyalty and position cannabis as another popular consumable, enjoyed in the same way as alcohol and tobacco.

A Growth Sector

A similar approach is being taken by Hiku (CSE: HIKU) (OTC: DJACF), premium cannabis lifestyle brand growing high-quality handcrafted cannabis flower. Hiku’s wholly owned subsidiary is a licensed producer of cannabis under the ACMPR that has requested its Pre-Sales License Inspection, the last step prior to receiving a license to sell cannabis under the ACMPR. Hiku’s Dominion Facility is a state-of-the-art ACMPR licensed production facility capable of producing approximately 660 kg year of dried cannabis flower. Phase one of its “FUTURE LAB” production complex is slated for completion in the second quarter of 2018, in time for legalization. Utilizing an industry-leading multi-tier system powered by LED lighting provided by Fluence BioEngineering, Hiku’s annual production capacity is expected to be in excess of 5,000 kgs, letting it cater to a large part of the cannabis consumer market. The company’s merger with Tokyo Smoke is expected to create the first brand and retail-focused craft cannabis producer.

This development is backed up by a $10 million investment from Aphria (TSX: APH) (OTC: APHQF), a leading Canadian medical cannabis company. With an expansion strategy based on targeted investment and collaboration with other companies, Aphria has been working to advance growth in the U.S. medical cannabis market. This provides the company with the production and distribution facilities needed to enter the market for recreational cannabis.

While the involvement of medical marijuana companies will be important in the growth of Canada’s cannabis sector, the real test for commercial cannabis will be the involvement of consumer brand-based businesses. Their entry into the market will signal faith in the future of recreational cannabis, as well as bringing consumer branding expertise to the sector. One of the first examples of this is the investment in Canopy Growth (TSX: WEED) (OTC: TWMJF) by Constellation Brands. The $42 billion company behind Corona, Modelo and Svedka Constellation Brands has taken a stake in Canopy Growth worth about $191 million, with the option of purchasing additional stakes.  It will use this investment to create cannabis-infused drinks, using Canada as a market in which to innovate in anticipation of markets emerging elsewhere.

The growing Canadian cannabis market bodes well for ABcann (TSX.V: ABCN) (OTCQB: ABCCF), a globally licensed, cost-efficient producer of premium quality organic standardized medicinal cannabis. One of the earliest licensed Canadian medical marijuana producers under Canada’s federally controlled ACMPR, ABcann has five years of operating experience in the burgeoning medical marijuana space. The company currently owns and operates a fully functioning 14,500-square-foot facility in Ontario, as well as 65 acres of real estate with proper zoning and existing infrastructure in place to support the construction of another production facility of up to 1 million square feet. Along with this growth capacity, ABcann has a healthy cash balance, steady sales growth, an established operations team and global expansion plans, making it well positioned to compete in the rapidly expanding Canadian cannabis industry.

Though it’s still several months away from fulfillment, Canada’s recreational cannabis market is already providing a diverse range of businesses and investment opportunities. Building on the techniques of medical marijuana companies, the market appears set to diversify into drinks, retail outlets and premium products. This will establish cannabis as part of the existing market for recreational consumables.

For more information on Choom, please visit Choom (CSE: CHOO) (OTCQB: CHOOF)

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.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.

Key Companies That Will Remap Canada’s Cannabis Retail Industry

CannabisNewsWire Editorial Coverage: Out of 120 applicants, Manitoba recently awarded four master retail licenses, a monumental action as Canada prepares to legalize cannabis for recreational use this summer. The entities that now hold prized licenses to retail pot and its associated paraphernalia in the province are: Tokyo Smoke, a subsidiary of HIKU Brands (CSE:HIKU; OTCBB: DJACF) (DJACF Profile); a consortium of Delta 9 Cannabis Inc. and Canopy Growth Corp. (TSX: WEED) (OTC: TWMJF); National Access Cannabis (CSE: NAC) (OTC: NACNF); and 10552763 Canada Corporation. One key industry player that missed out on this licensing opportunity is MedReleaf (TSE: LEAF) (OTC: MEDFF). These licenses open the doors to considerable recreational retail revenue potential, and investors with foresight were quick to take action, with Aphria (TSX: APH) (OTC: APHQF) and Koicha Partners LP investing millions into the big four’s newest presence, HIKU.

New name, established brand

Although the name HIKU is new, the brands behind it are well-known and have interesting back stories. Tokyo Smoke was named “best brand” at the inaugural Cannabis Industry Awards in December 2017, and in January 2018 the company joined forces with Doja Cannabis Company to create HIKU. HIKU is led by CEO Alan Gertner and President Trent Kitsch, who founded the best-selling men’s brand, SAXX Underwear.

Gertner ran a $100 million business as head of an Asia-Pacific-wide sales team during his tenure in corporate strategy at Google. When he found that what he thought was his dream job was less than fulfilling, he shifted gears and co-founded Tokyo Smoke with his father Lorne Gertner, formerly PharmaCan chairman (now Cronos Group), who was dubbed the ‘Godfather of Canadian Cannabis’.

Tokyo Smoke is a seasoned retailer, already running stores online and several successful brick-and -mortar shops, selling a range of experiential products that feature the creative use of cannabis. Established already in key markets like Toronto and Calgary, Tokyo Smoke’s cannabis will soon be on shelves in legal recreational dispensaries in the United States.

East meets West in merging of cannabis retail and production minds

Partnering with Doja Cannabis, a seasoned Kelowna-based pot producer, was Gertner’s first foray into production. The strategy of merging minds with industry expertise in producing and retailing pot brought Gertner, based in the east, and Kitsch, based in the west, to a new market in the Manitoban middle ground.

The cannabis industry is growing at a rapid pace. While powerful players are teaming up to establish brand presence and formulate creative ways to differentiate themselves, the smaller contenders will begin to get weeded out. With Manitoba’s major retail cannabis players now clear, the stage is set for companies to continue their push toward becoming Canada’s first dominant cannabis retailers. HIKU, with shares trading over $2.50 and an estimated market cap topping $300 million, is definitely one to watch.

Comparables:

Aphria (NASDAQ: APHQF) (TSE: APH) was founded in 2011 and is headquartered in Leamington, Ontario. The company calls itself one of the lowest-cost producers of marijuana, and produces dry cannabis, as well as cannabis oil of varying qualities and strength. Its cannabis is 100 percent greenhouse grown. Aphria’s estimated market cap is over $2 billion.

Canada’s largest producer, Canopy Growth (OTC: TWMJF) (TSE: WEED), has a market cap of more than $4 billion, with shares currently trading over $22, a 61.3% increase over the last three months.  Formerly known as Tweed Marijuana Inc., Canopy Growth was founded by Bruce Linton in 2014, and is based in Smiths Falls, Ontario. Canopy Growth is the first federally regulated, publicly traded cannabis producer in North America. It operates numerous production facilities across Canada and around the world with over 700,000 square feet of production licensed under Canada’s medical cannabis framework.

National Access Cannabis (OTC: NACNF) (CSE: NAC) National Access Cannabis’ market cap is over $135 million; stock is trading over $1. The company operates medical cannabis care centers across Canada, National Access is adapting its established medical clinic model to meet the needs of the Manitoba retail market.  National Access works alongside Health Canada and Licensed Producers to help qualifying patients gain access to their license. After receiving the Manitoba retail National Access announced it intends to deepen its relationships with CannaRoyalty Corp. and Cannabis Wheaton Income Corp.

MedReleaf (TSE: LEAF) (OTC: MEDFF) was voted Top Licensed Producer at the Lift Canadian Cannabis Awards.  MedReleaf is an Ontario- based, R&D-driven company dedicated to innovation, and delivering products to the global medical market, and providing brands and product assortment for the recreational consumer market. MedReleaf’s market cap is currently over $2.26 billion.

For a more in-depth look into HIKU Brands, visit HIKU Brands (CSE:HIKU; OTCBB: DJACF) or read the FULL Report: Cannabis Investors Need Three M’s To Success: Money, Moxie, and Management

About CannabisNewsWire

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

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CannabisNewsWire (CNW)
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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.

Opportunity Amid Cannabis Banking Hurdles

CannabisNewsWire Editorial Coverage: Investors seeking opportunities in the cannabis market may want to turn their attention toward companies offering solutions for a situation that could otherwise slow the industry’s growth. A number of emerging firms are providing or pursuing payment options that can help cannabis companies sidestep the roadblock created by the lack of access to traditional banking services. Among the companies honing financing, payment processing and other business development services for the cannabis industry are Global Payout, Inc (OTC: GOHE) (GOHE Profile), MassRoots Retail (OTC: MSRT), iAnthus Capital Holdings, Inc. (CSE: IAN) (OTC: ITHUF), and Glance Technologies, Inc. (OTC: GLNNF) (GET: CNX). Meanwhile, recent action at Canopy Growth Corp. (CC: WEED) demonstrates that a change in bank industry policy could be on the horizon.

In Arizona, the state Department of Health Services reported that its dispensaries sold over 43 tons of medical marijuana through year-end 2017, an increase of 48 percent from 2016. Capitol Media Services estimates the quantity of medical marijuana sold in Arizona in 2017 represented approximately $275 million in retail sales for the year. Sales in the United States as a whole represent a multibillion dollar market that is only expected to grow as the legalization process continues to spread. In Canada alone, taking into account the planned July 2018 legalization of recreational cannabis, sales of the product are expected to reach C$6 billion by 2021.

Despite the massive sales figures, cannabis companies largely conduct business in cash. With marijuana classified as a Schedule 1 drug at the federal level in the United States, the cannabis industry is essentially unbankable there, creating an opportunity for companies that can help industry participants process the payments generated by cannabis sales.

The Struggle to Organize Necessary Elements of Infrastructure

For the time being, cannabis businesses continue to struggle with financing issues related to customer receipts and budget expenditures, especially in the United States. While U.S. banks have overwhelmingly refrained from doing business with cannabis companies due to the federal prohibition on sales of the product, in Canada some banks have begun to offer business accounts to cannabis companies. Even when Canada does begin legalization in mid-2018, however, there’s no guarantee its banks will be quick to finance cannabis companies. The year is expected to be a landmark period for cannabis-related businesses, yet there’s still a fair amount of uncertainty about how they will fare. Global Payout, Inc. (OTC: GOHE) is one company positioned to help alleviate that uncertainty through a number of payment processing services.

Payment Solutions for the “Unbankable”

Global Payout’s fintech payment solutions can be fully customized for virtually any domestic and international organization distributing money worldwide. Through its MoneyTrac Technology (“MTRAC”) subsidiary, Global Payout is focused on helping reduce the extensive security, accounting and overhead costs dispensaries face from having to deal exclusively in cash. The reliance on cash transactions by cannabis businesses leaves these companies vulnerable to theft and facing all the inconvenience associated with running a cash-only business. And the problem is only expected to grow more acute as the rapidly growing multibillion-dollar industry continues to expand, with cannabis now recreationally available in eight states.

Addressing this opportunity in the company’s letter to shareholders, Global Payout CEO James Hancock stated: “Recognizing the gap between adequate financial technology solutions and the rapidly expanding, multi-billion-dollar cannabis industry, a collective decision was made in March to spinout our majority owned subsidiary, MoneyTrac Technology to begin serving the underserved businesses of the cannabis industry. … These partnerships, combined with several other important developments throughout the year, have effectively positioned MoneyTrac to generate revenue and become a recognized leader of a variety of service and solution offerings within the cannabis industry.”

MTRAC plans to launch its regulatory compliant token offering in the first quarter of 2018 as part of an effective, decentralized system for processing payments (http://cnw.fm/eoPQ3). The M-Token from MTRAC will allow vulnerable businesses to migrate from a cash-only business model by offering the basic yet essential services denied to them by the traditional banking industry. In the process, the businesses can improve their security and boost their operational efficiency.

Vanessa Luna, CEO of MTRAC, stated, “MoneyTrac’s primary objective has been, and will continue to be, to serve the legitimate and profitable businesses of the cannabis industry by effectively addressing the financial technology and banking challenges they are faced with. … Our regulatory compliant Token Offering will revolutionize how these businesses operate and help MTRAC further its objectives for identifying various partnerships and cultivating the relationships necessary to pave the way for alternative banking solutions.”

Cannabis Compliance

To help it develop a strong foundation for the delivery of banking solutions to the legal cannabis industry, MTRAC recently signed a joint-venture agreement with Integrated Compliance Solutions, LLC (“ICS”), a leading provider of financial regulatory compliance services and solutions to the retail cannabis industry. The partnership bolsters MTRAC’s ability to provide compliant banking solutions with its strategic partners.

In the press release announcing the agreement, Luna emphasized the importance in maintaining compliance in the heavily regulated retail cannabis industry.

“The ICS team carries several years of valuable experience with them in the field of regulatory compliance solutions and financial technology services for banking, and their integration into the banking solutions (that) we are dedicated to delivering to the cannabis industry is not only significant, but essential to our commitment of providing retail cannabis businesses with the most compliant and regulated banking solution available,” she stated (http://cnw.fm/xiq7H).

Exploring Expanded Marketing Opportunities

Global Payout also recently signed a Sales Partnership Agreement with Eyeconic.tv in a move to explore the potential of creating new revenue streams (http://cnw.fm/vnXs7) while boosting the impact of both parties.

The companies plan to leverage the network of dispensaries and industry-specific brands and products established through MTRAC’s PotSaver publication in conjunction with Eyeconic.tv’s digital media platform. Eyeconic.tv is an innovative producer and distributor of interactive digital mediums focused mainly on digital menus, advertising and kiosks to customers on their business premises. PotSaver is a revenue-producing community periodical and online advertising platform that provides listings for discounted cannabis-related products to local dispensaries and shops.

“Establishing this sales partnership with Eyeconic.tv is an incredibly effective way to deliver more value to the solutions and services we are providing to cannabis-related businesses. The Eyeconic.tv team are true pioneers in the digital marketing and advertisement space and have established themselves as the premier provider of these services throughout the cannabis industry. I am pleased they recognize the value we can bring to their brand through the network of dispensaries we have created through our PotSaver publication, as well as through the invaluable expertise our team offers in developing and implementing successful sales and marketing strategies. I am extremely confident that this will be a partnership that is mutually beneficial to the objectives of each of our companies,” Luna said.

Additional Cannabis Payment Solution-Related Opportunities

In a sign that Canadian banks are beginning to change their position about financing cannabis firms, Canopy Growth Corp (CC: WEED), a diversified Canadian cannabis company that offers curated cannabis in dried, oil and capsule form, has recently announced a $175 million bought stock offering led by two major Canadian investment banks — Bank of Montreal, through its BMO Capital Markets division, and GMP Securities. Canopy Growth operates on four continents where it sells cannabis products, conducts R&D, and provides cannabis-related education for healthcare practitioners.

While Canadian banks may be beginning to change their stance on financing cannabis firms, it should be noted there are no signs of such a thaw to the south where banks continue to avoid doing business with cannabis firms because of federal regulations. Canopy Growth’s extensive operations outside of Canada mean that the firm can still benefit from payment solutions that enable it to reduce the amount of cash transactions it conducts.

MassRoots (OTC: MSRT) offers one of the most popular technology platforms for the regulated cannabis industry. The company’s mobile apps, with more than a million users, enable consumers to draw on community-sourced reviews to make educated cannabis purchasing decisions. The company offers a compliance and point-of-sale system called MassRoots Retail, which helps cannabis businesses conduct retail operations more efficiently and manage compliance reporting as required by state regulators. MassRoots has recently formed a blockchain subsidiary focused on developing solutions for the cannabis industry based on the blockchain. The company believes that making use of the transparent digital ledger that constitutes the blockchain can help the cannabis industry operate with greater efficiency, accountability and transparency.

iAnthus Capital Holdings (CSE: IAN) (OTC: ITHUF) offers investors exposure to licensed cannabis cultivators, processors and dispensaries located across the United States. The company offers capital as well as hands-on operational and management expertise. With seven investments in six states covering an addressable market of approximately 50 million people, the company’s dispensaries stand to benefit from access to innovative payment processing and financial solutions that enable them to more efficiently handle transactions.

Glance Technologies, Inc. (OTC: GLNNF) (GET: CNX) owns Glance Pay, a mobile payment system transforming the way smartphone users interact with merchants and buy products. The company’s partially owned subsidiary, Cannapay Financial, is the vehicle for Glance Technologies’ entry into the cannabis industry through licensing agreements that leverage the Glance Pay App and the Glance Merchant App’s data analytics. Cannapay Financial has two apps in development — Cannapay, a mobile-to-mobile payment system for the marijuana industry, and SuperDope Delivery, a mobile ordering and delivery app for cannabis consumers.

The tremendous growth being experienced by the cannabis industry, coupled with the difficulty cannabis businesses are experiencing in accessing banking services, especially in the United States, have created significant opportunities for firms that can offer these businesses effective methods of processing transactions. Each of the companies listed above is positioned to benefit from this evolving trend, making them worthy of further investigation by investors looking to capitalize on the expansion of the cannabis industry and the corresponding development of payment solutions to facilitate that expansion.

For more information on Global Payout, visit Global Payout, Inc. (GOHE)

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.