Cannabis Market Continues to Grow on Global Legalization Efforts
FinancialBuzz.com News Commentary
NEW YORK, October 19, 2018 /PRNewswire/ --
According to data compiled by Mordor Intelligence, the global cannabis market was valued at USD 7.7 Billion in 2016 and is expected to reach USD 65 Billion by 2023 while growing at a CAGR of 37% during the forecast period. The growth is explained by the spread of global legalization beginning to take place for medical products as well as recreational. Currently, North America accounts for 95% of the market, while the U.S. makes up more than 90% of the North American region. However, only select states in the U.S. have legalized cannabis for both medical and recreational use, such as California, Nevada, Colorado, Washington and a few others. Canada and Uruguay are the only two countries to have passed bills to legalize cannabis nationwide. Impending market regions include European countries such as Spain, Netherlands and Italy, who are expected to legalize cannabis for medical use in the shortcoming future. Chemesis International Inc. (OTC: CADMF), Organigram Holdings Inc. (OTC: OGRMF), MedMen Enterprises Inc. (OTC: MMNFF), MariMed Inc. (OTC: MRMD), Aleafia Health Inc. (OTC: ALEAF)
Many companies involved in the cannabis market are focusing on standardizing their products, as well as receiving intellectual property rights for them. Other companies are conducting cannabis research, which is projected to impact the market heavily. Positive results from Canadian cannabis companies have allowed them to secure agreements and licensing contracts across Canada and are now beginning to spread internationally. Although not yet fully legalized, the U.S. is poised to continue to dominate the global cannabis market, which has prompted multinational companies to enter the fray. "We are sitting back now and watching the Canadians take market share with regards to international export opportunity," says Matt Karnes, Founder of industry analyst firm GreenWave Advisors. "And multinational companies that are stepping in, or potentially want to step in, are all eyeing Canada, whereas I believe the United States clearly has the most robust and compelling opportunity for cannabis."
Chemesis International Inc. (OTC: CADMF) is also listed on the Canadian Securities Exchange under the ticker (CSE: CSI). Earlier this week, the Company announced that, "its intention to enter the recreational and medical cannabis market in Canada. The Company is reviewing possible joint ventures, agreements or acquisitions in distribution, manufacturing, and product development spaces. Chemesis intends on leveraging its assets, brands, and management expertise to gain market share in Canada. Chemesis is presently performing due diligence on fully licensed and operational cannabis companies in Canada.
Canada has significant opportunity in both recreational and medical markets, with the Canadian cannabis market expected to generate up to $7.17 billion CDN in 20191. The Company sees major opportunities in Canada from high-quality manufacturing to brands that have developed a strong presence in the market. Chemesis aims to introduce Canadian consumers its portfolio of brands which includes California Sap, the Company's flagship brand. California Sap has been recognized in California since 2012, with 25 gold rankings for best CO², best topical, best product, best concentrate, best cartridge, highest terpene and more.
'The Company is looking at multiple opportunities in Canada that will allow us to enter the market and gain a strong presence with minimal regulatory hurdles,' said CEO, Edgar Montero. 'Chemesis is only evaluating businesses that have met regulatory and compliance standards. This allows the Company to enter into the market with our assets, and expertise without unnecessary delay. The introduction of California Sap and our other brands will allow Canadians the ability to purchase premium brands, that are extremely accomplished in California. As we continue to execute our business plan, Chemesis will look for acquisitions and partnerships that bring growth and shareholder value.'"
Organigram Holdings Inc. (OTCQX: OGRMF) is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada. Organigram Holdings Inc. recently announced its medicinal cannabis plants and growing process has been certified organic with Ecocert Canada. As part of the process, Organigram submitted a comprehensive action plan to Ecocert Canada, part of the Ecocert group, one of the largest organic certification organizations in the world, outlining the Company's robust segregation design to manage and execute the complexities of producing and processing both streams of product within the same facility. "When we considered the need to expand and meet the needs of our existing and future customer base, it was apparent that we needed to take our time and create an environment of excellence related specifically to the production of organic cannabis for medicinal use," says Greg Engel, Chief Executive Officer Organigram. "We have built a robust and diligent organic strategy into our plans to help ensure we can confidently deliver medicinal products that meet the exacting standards of our clients."
MedMen Enterprises Inc. (OTCQB: MMNFF) is a leading cannabis company in the U.S. with assets and operations across the country. MedMen Enterprises Inc. and Chicago-based PharmaCann LLC recently announced that both companies have signed a binding letter of intent for MedMen to acquire PharmaCann in an all-stock transaction valued at USD 682 Million. The resulting pro-forma company (including pending acquisitions by MedMen) will have a portfolio of cannabis licenses in 12 states that will permit the combined company to operate 79 cannabis facilities. The combined company will operate in 12 states, which comprise a total estimated addressable market, as of 2030, of approximately USD 40 Billion according to Cowen Group. Through the transaction, MedMen will add licenses in Illinois, New York, Pennsylvania, Maryland, Massachusetts, Ohio, Virginia and Michigan. "This is a transformative acquisition that will create the largest U.S. cannabis company in the world's largest cannabis market," said Adam Bierman, MedMen's Chief Executive Officer and Co-Founder. "The transaction adds tremendous scale to our vertically integrated business model by expanding our U.S. retail footprint across important growth markets while strengthening our cultivation and production capabilities. With the revenue synergies that the deal is expected to produce, MedMen is well positioned to continue executing on our growth strategy. This would not have been possible even two years ago and is a testament to how far both the industry and these two companies have evolved. PharmaCann's leadership has built a world-class organization, and we are excited about the value this transaction is creating for shareholders."
MariMed Inc. (OTCQB: MRMD) is a multi-state professional cannabis organization that develops, owns and manages cannabis facilities and branded products lines. MariMed, Inc. recently announced that it had consummated its strategic investment in Sprout, an all-in-one CRM and marketing software company for marijuana dispensaries and cannabis brands. This completes the previously announced MariMed LOI for investment in Cannabis Venture Partners, parent company of Sprout. "The cannabis industry needs a comprehensive software solution which integrates a full featured CRM engine and platform for marketing, education, and analysis for brands, dispensaries, educators, and researchers," said MariMed Chief Executive Officer Robert Fireman. "The Sprout platform has the foundation for these functions and more. MariMed will work with the Sprout team to make this software the best for the cannabis industry. This product enables MariMed to provide a bundled technology solution for its brands, facilities, and strategic partnerships incorporating both B2B and B2C communications."
Aleafia Health Inc. (OTCQX: ALEAF) is a leading, vertically integrated cannabis company with major cannabis cultivation & processing and medical cannabis clinics business operations. Recently, Aleafia Health Inc. has extended the exclusivity period for the proposed adult-use retail and brands joint-venture ("JV") with the Serruya Family by two weeks. The JV marks the first phase of a multiphase strategy that will see Aleafia enter the adult-use cannabis industry and related retail operations in Canada and globally. This will create the foundation for the adult-use business pillar, joining Aleafia's two existing business pillars - cannabis cultivation and medical clinic operations.
Subscribe Now! Watch us report LIVE https://www.youtube.com/FinancialBuzzMedia
Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz
Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz
Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz/
About FinancialBuzz.com
FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.
Please Note: FinancialBuzz.com is not a financial advisory or advisor, investment advisor or broker-dealer and do not undertake any activities that would require such registration. The information provided on http://www.FinancialBuzz.com (the 'Site') is either original financial news or paid advertisements provided [exclusively] by our affiliates (sponsored content), FinancialBuzz.com, a financial news media and marketing firm enters into media buys or service agreements with the companies which are the subject to the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider and therefore do not represent or warrant that the information posted on the Site is accurate, unbiased or complete. FinancialBuzz.com receives fees for producing and presenting high quality and sophisticated content on FinancialBuzz.com along with other financial news PR media services. FinancialBuzz.com does not offer any personal opinions, recommendations or bias commentary as we purely incorporate public market information along with financial and corporate news. FinancialBuzz.com only aggregates or regurgitates financial or corporate news through our unique financial newswire and media platform. For chemesis international inc. financial and corporate news dissemination, FinancialBuzz.com has been compensated five thousand dollars by the company. Our fees may be either a flat cash sum or negotiated number of securities of the companies featured on this editorial or site, or a combination thereof. The securities are commonly paid in segments, of which a portion is received upon engagement and the balance is paid on or near the conclusion of the engagement. FinancialBuzz.com will always disclose any compensation in securities or cash payments for financial news PR advertising. FinancialBuzz.com does not undertake to update any of the information on the editorial or Site or continue to post information about any companies the information contained herein is not intended to be used as the basis for investment decisions and should not be considered as investment advice or a recommendation. The information contained herein is not an offer or solicitation to buy, hold or sell any security. FinancialBuzz.com, members and affiliates are not responsible for any gains or losses that result from the opinions expressed on this editorial or Site, company profiles, quotations or in other materials or presentations that it publishes electronically or in print. Investors accept full responsibility for any and all of their investment decisions based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. FinancialBuzz.com. By accessing this editorial and website and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy, as may be amended from time to time. None of the content issued by FinancialBuzz.com constitutes a recommendation for any investor to purchase, hold or sell any particular security, pursue a particular investment strategy or that any security is suitable for any investor. This publication is provided by FinancialBuzz.com. Each investor is solely responsible for determining whether a particular security or investment strategy is suitable based on their objectives, other securities holdings, financial situation needs, and tax status. You agree to consult with your investment advisor, tax and legal consultant before making any investment decisions. We make no representations as to the completeness, accuracy or timeless of the material provided. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. For our full disclaimer, disclosure and Terms of Use, please visit: http://www.financialbuzz.com .
For further information:
[email protected]
+1-877-601-1879
Url: http://www.FinancialBuzz.com
SOURCE FinancialBuzz.com
Share this article