U.S. Retail Cannabis Sales on Pace to Rise 40% in 2020, Near $37 Billion by 2024

FinancialNewsMedia.com News Commentary

News provided by

Nov 17, 2020, 08:45 ET

PALM BEACH, Fla., Nov. 17, 2020 /PRNewswire/ -- Even during the pandemic, there are companies and even industries that are growing not in spite of the pandemic, but because of the restrictions that are part and parcel of the pandemic. People are staying home and the games market, the meetings platforms and other web based services are growing… as is the legal cannabis market. People are looking for not only recreational uses, which have increased due to the stay at home restrictions, but also health and medical well being of individuals has steadily risen. A recent article in industry publication, the Marijuana Business Daily, projected that retail sales of medical and recreational cannabis in the United States are on pace to eclipse $15 billion by the end of 2020, an increase of approximately 40% over 2019 sales figures, according to exclusive projections from the 2020 edition of their Marijuan Business Factbook. They added that: "While there's no definitive answer, data suggests consumers from Generation Z – those born in 1997 and later – and consumers who continue to transition out of the illicit market and into the licensed, legal channel contributed to the growth." Active Companies in the industry include CLS Holdings USA, Inc. (OTCQB: CLSH) (CSE: CLSH), Grow Generation Corp. (NASDAQ: GRWG), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI).

Marijuana Business Daily continued saying that: "Total U.S. sales could rise as high as $37 billion by 2024… Despite short-term uncertainty, the long-term potential of the cannabis industry remains intact. Sharp sales increases in recently launched medical marijuana programs – as well as continued gains in adult-use markets – are expected to fuel much of the industry's growth over the coming years." New MMJ markets including Florida, Maryland, Nevada, Oklahoma and Pennsylvania are booming, more than offsetting lost medical sales in markets that have legalized adult-use sales, such as Illinois, Massachusetts and Michigan.

CLS Holdings USA, Inc. (OTCQB: CLSH) (CSE: CLSH) BREAKING NEWS: CLS Holdings USA, Inc. Outpaces Statewide Market Growth with Category Leadership - CLS Holdings USA, Inc. (OTCQB: CLSH) (CSE: CLSH), the ''Company'' or ''CLS'', a diversified cannabis company operating as Cannabis Life Sciences, continues to grow its foothold in Nevada, with recent data listing its manufacturing division, City Trees, as the top selling brand in select product categories. With the completion of its September rebrand, this division is poised for continued growth and innovation through the remainder of the year. CLS entities overall also outpaced the growth of the Nevada cannabis market in September. Statewide cannabis industry revenue growth reached a year over year increase of 43% for the month, while CLS' net revenue grew by 70.3%.

A Category and Industry Leader - According to figures generated by BDS Analytics, CLS' branded division, City Trees, produced the top-selling products in the tincture product subcategory in Nevada from January through September 2020. With a total of 37,142 units sold, these products generated over $1.7 million dollars in sales - approximately 44% more than the second best-selling brand in the subcategory. Of the top 10 products sold in the tincture subcategory in 2020 through September, 4 were produced by City Trees. Of the $7.7 million tincture market in Nevada through September 2020, encompassing 34 different brands, City Trees held an average market share of 22.4%. Although flower and concentrate categories represented a majority of the overall cannabis market in Nevada in 2020, innovative product development and clean, modern branding have propelled this division and opened the door for category expansion for the Company.

As a result of continued development and innovation in the ingestible category, City Trees is rising in Nevada's vape category. In the first three quarters of 2020, the brand has risen from the 7th to the 5th highest selling brand, with the greatest improvement occurring in the third quarter. In the 'dabbable concentrate' product subcategory, unit sales rose by over 115% during the third quarter of 2020 compared to the same quarter in 2019. With a focus on quality, sustainability, and innovation, City Trees is showing brand growth across all of the products categories in which it currently operates. This division's growth is further driven by the expansion and utilization of its expanded and enhanced extraction and innovation facility, allowing for a variety of anticipated collaboration projects, new product launches, and growing capacity for extraction and toll processing.

The Company's combined retail and wholesale divisions outpaced the year over year growth of the Nevada cannabis market for September, with the state seeing a 43% revenue increase from September 2019 to September 2020, and CLS entities achieving a 70.3% revenue increase for the same periods. Month over month from August to September 2020, the Nevada cannabis market declined by 1% while CLS' entities increased revenue by 21.2%. These results are a testament to the measured, strategic approach the Company has taken to growing its businesses in ways that ensure the safety and comfort of its customers and employees while capturing new revenue streams that coincide with new market norms. To Read this full press and more for CLSH, please visit: https://www.financialnewsmedia.com/news-clsh/

Other recent developments in the Cannabis industry include:

Grow Generation Corp. (NASDAQ: GRWG) recently reported record third quarter 2020 revenues of $55.0 million, versus $21.8 million in the same period last year. This represents the Company's eleventh consecutive quarter of record revenues. Third quarter 2020 adjusted EBITDA of $6.6 million compares to $2.0 million in the same period last year. The Company also reported record third quarter 2020 GAAP pre-tax net income of approximately $5.1 million, compared to pre-tax net income of $1.0 million, in the same period last year. As the Company continues to outpace guidance, it is increasing 2020 revenue guidance to $185 million-$190 million, and adjusted EBITDA to $19.0 million-$20.0 million. Revenue and adjusted EBITDA guidance for 2021 increases to $280 million-$300 million, and $34 million-$36 million, respectively.

"Our steadfast focus on rapid, strategic growth in key markets, both organically and through acquisitions, has resulted in our eleventh consecutive quarter of record revenues and EBITDA, said Darren Lampert, GrowGen's co-founder and CEO. "We are building a best-in-class team of grow professionals, a robust e-commerce platform, and an insight-driven retail footprint targeting both established and emerging markets. The results of the recent elections, combined with our proven ability to scale while reducing operational costs, will allow us to grow our revenue and expand our bottom line into the following quarters. We have raised our guidance accordingly."

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), a world-leading diversified cannabis, hemp, and cannabis device company, has released a highly giftable Martha Stewart CBD Wellness Gummies Sampler just in time for the holidays. Inspired by the French confection pâte de fruits, this elegant 60-count sampler box features 15 seasonal flavors such as Passionfruit, Calamondin and Quince.

Said Martha Stewart, "Holiday gift giving and receiving should be a joyous and fun occasion. In my experience, the gifts that are most appreciated are both luxurious and practical. Presented in a special gift box, my gummy sampler tastes like an elegant and delicious treat which delivers all the wellness benefits of CBD, making it the perfect way to indulge your loved ones, or yourself, without spending a fortune."

Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), the parent company of Organigram Inc. (the "Company" or "Organigram"), a leading licensed producer of cannabis, recently announced the launch of the Company's limited-edition spirit-of-the-season offerings, Trailblazer Kushmas Stix and Edison Bytes Gingerbread Truffles.

Both Trailblazer Kushmas Stix and the Edison Bytes Gingerbread Truffles are expected to be available in retail stores of select provinces within the week in time for holiday gift giving. "The holidays offer our Organigram team an opportunity to showcase the creativity and commitment to exceptional customer experiences that drive our product development," says Greg Engel, CEO, Organigram. "We are proud to offer high-quality products and trusted brands, in thoughtfully 'giftable' formats and price points, that can be shared as part of seasonal celebrations."

Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, recently announced its financial and operational results for the first quarter of fiscal 2021 ended September 30, 2020.

"We continue to take the necessary steps to execute our plan and transform our business to achieve sustainable profitability, and ultimately positive cash flow," stated Miguel Martin, Chief Executive Officer of Aurora Cannabis. "Our Q1 2021 results are transitional but do highlight successes across a number of diverse profit pools. We remain the leader by revenue in the high-margin Canadian medical market, our international medical business experienced more than 40% net revenue growth this quarter, and our CBD brand Reliva is #1 ranked by Nielsen in the U.S. CBD sector."

DISCLAIMER: FN Media Group LLC (FNM), which owns and operates FinancialNewsMedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein. FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM's market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult =a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. FNM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed FNM has been compensated forty six hundred dollars for news coverage of the current press releases issued by CLS Holdings USA, Inc. by the Company. FNM 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 FNM undertakes no obligation to update such statements.

Media Contact email: [email protected]
+1(561)325-8757

SOURCE FinancialNewsMedia.com