With Increasing Legal Acceptance Global Cannabis Market Projected To Reach $51 Billion In 2023

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Sep 07, 2023, 08:30 ET

PALM BEACH, Fla., Sept. 7, 2023 FinancialNewsMedia.com News Commentary

/PRNewswire/ -- The Global cannabis market just continues to keep growing year after year. The increasing legalization of cannabis and rising acceptance of its use for medical purposes are the key factors driving the growth of the market. A report from Statista projected that revenue in the Global Cannabis market is projected to reach US$51.27 Billion in 2023; Revenue is expected to show an annual growth rate (CAGR 2023-2028) of 14.95%, resulting in a market volume of US$102.90 Billion by 2028. The report said: "The Cannabis market comprises the sale of various products made of cannabis to both private end consumers and healthcare entities in all the countries where these products were legalized. It covers three markets: Recreational Cannabis, Medical Cannabis, and Therapeutic Cannabis. The geographical scope varies depending on the exact cannabis product as not all types of cannabis are legalized in each country. For example, in Germany, the medical and therapeutic use of cannabis is legal, whereas recreational use is not legal. The Cannabis market can be considered from three different application perspectives, "spiritual purpose," "health condition management," and "wellness management." The Recreational Cannabis market includes the consumption of cannabis for non-medicinal reasons, such as boosting physical performance, pursuing creative activities, and experiencing spirituality. Recreational Cannabis can be consumed in the form of extracts, dried cannabis, edibles, and beverages." Active cannabis companies in the markets this week include: Lucy Scientific Discovery Inc. (NASDAQ: LSDI), SNDL Inc. (NASDAQ: SNDL), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY).

Statista added: "The Medical Cannabis market includes cannabinoid-based medicine, either licensed or unlicensed, which is supplied through the healthcare system and prescribed by a doctor with the primary focus of mitigating serious disease symptoms. It can include higher tetrahydrocannabinol (THC) levels of cannabidiol (CBD). The Therapeutic Cannabis market covers cannabinoid-based therapeutic products with low THC levels. These products are used for medicinal purposes and are intended to improve the quality of life, e.g., by reducing stress and/or anxiety. Prescribed and non-prescribed products are included in our scope and can be consumed through oils, capsules, topicals, e-liquid, edibles, and flowers. In global comparison, most revenue will be generated in the United States (US$33,880.00 Million in 2023). In relation to total population figures, per person revenues of US$77.13 are generated in 2023."

Lucy Scientific Discovery Inc. (NASDAQ: LSDI) BREAKING NEWS: Lucy Scientific Discovery Inc Acquires High Times IP, Including Existing Licensing Agreements and Royalty Streams in All-Stock Transaction - The Transaction includes the trademarks for the Cannabis Cup and 420.com Brands and Properties including the Hightimes.com domain - Lucy Scientific Discovery Inc., a leading psychotropic innovator proudly announces the acquisition of the intellectual property (IP) of High Times, the most recognizable and iconic brand in the cannabis industry. This acquisition not only aligns with Lucy Scientific's strategic direction by establishing a pathway for a stream of high-margin licensing and royalty and income but also ensures liquidity for High Times shareholders. With this strategic acquisition, High Times will initially benefit from a 19.9% stake in Lucy's outstanding stock, and additional performance-based payments. These payments are based on EBITDA generated in the prior six months from the acquired IP, which can be settled by either stock or cash at Lucy Scientific's discretion.

This transaction encompasses the well-regarded High Times, Cannabis Cup, and 420.com brands, including their respective domain names. Recognized for their contributions to the cannabis culture, these brands hold a significant place within the industry. As part of the transaction, Lucy will be acquiring all the international and domestic rights of the brands. The Company plans to monetize the IP through current and planned royalty agreements across a myriad of licensing channels, further extending and enhancing the existing domestic and international licensing arrangements currently held by High Times. Licensing categories include consumer products, cannabis retail, cannabis wholesale, apparel, merchandise, delta 8 and delta 9, beverages. Lucy expects this transaction to add at least $10mil of revenue and $3mil EBITDA to its FY 2024 result.

"We are thrilled to announce the acquisition of High Times's IP. The most globally recognizable cannabis brand, which includes the IP to the longest-standing event, the Cannabis Cup, and the 420.com domain, a platform we plan to develop to feature Lucy branded products, as well as other strategic additions in the future," said Richard Nanula, CEO and Executive Chairman at Lucy Scientific Discoveries Inc. "These brands have been pillars of the cannabis industry, and we are excited to build upon their legacy. Our goal is to create a vibrant platform that celebrates the culture, innovation, and advancements within the cannabis industry."

Lucy Scientific intends to preserve the essence of the High Times, Cannabis Cup, and 420.com brands while identifying new avenues for growth and development. Combining the company's scientific expertise with the influence of these brands, Lucy Scientific is poised to contribute positively to the cannabis industry. CONTINUED… Read this full release and more news for Lucy Scientific Discovery at: https://ir.lucyscientific.com/

Other recent developments in the cannabis industry include:

SNDL Inc. (NASDAQ: SNDL) and Nova Cannabis Inc. ("Nova") recently announced that while all other provincial approvals have been received, the continued review by one provincial regulator has necessitated a further extension of the outside date for the closing of the previously-announced strategic partnership (the "Transaction"). SNDL and Nova anticipate that the Transaction will close on or before September 30, 2023, subject to receipt of regulatory approval and the amendment to certain terms of the Transaction that are mutually satisfactory to SNDL and Nova.

"SNDL and Nova recently participated in constructive discussions with the regulatory body responsible for final approval," stated Marcie Kiziak, CEO of Nova. "The conversation was productive, and we are confident in the transaction's timely progression. SNDL and Nova remain committed to navigating through these processes with transparency and diligence, ensuring the best outcome for all parties involved." In addition, SNDL and Nova have extended the maturity date of Nova's revolving credit facility with SNDL to September 30, 2023.

Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), a world-leading diversified cannabis company, recently announced that two of the Company's brands in the Canadian adult-use market have been recognized as finalists for prestigious industry awards.

Illustrating the impact of an impressive brand evolution, Tweed's Kush Mints has been nominated for a 2023 Karma Cup in the Hybrid Flower category, as it has demonstrated its consumer appeal with Tweed Kush Mints 28g being the fourth best performing flower SKU in Canada in Q1 FY2024¹. Celebrating cannabis innovation, creativity, and quality, the Karma Cup Awards recognized Tweed's Kush Mints for its unique cross between Animal Mints and Bubble Kush. Sourced from a private library and demonstrating Tweed's commitment to flower innovation, Kush Mints boasts a high terpene content near 2.5% -- setting it apart from the competition -- and has driven 73% of the 28g segment's growth nationally in the first three months of 2023.

Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the Canadian company opening the world to cannabis and Canada's largest medical cannabis company, recently announced an expansion of its hemp-derived CBD portfolio into Brazil. In partnership with Herbarium, the leading Brazilian company in herbal medicine, Aurora will launch the company's full-spectrum, single-source 3% CBD oil, under the Herbarium brand. Now available under the direction of medical doctors, patients across Brazil have access to high quality CBD as part of their healthcare.

"We are proud to continue our international expansion and bring quality CBD products to Brazilians alongside our partner, Herbarium, a trusted brand in the market," says Andre Jerome, EVP of Global Business Development at Aurora Cannabis. "Brazilhas strong growth potential, and we look forward to leveraging our leadership in the market to further unlock key opportunities in South America." The CBD oil is produced at Aurora's production facility in Uruguay, one of the only GMP-certified cannabis processing facilities in the country. Known for quality and reliability, Aurora is a leading global supplier of a complete portfolio of cannabis products, including CBD offerings, to 13 countries internationally.

Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY), a leading global cannabis and consumer packaged goods company, recently launched its new 'Diamonds Collection' by its Premium cannabis lifestyle brand RIFF. Introducing its new Diamond Infused Pre-rolls, including Melonaide and Purple Punch OG strains, and '26 Delta Diamond Infused Blunts featuring Blue CKS featuring Girl Scout Cookies (GSC) lineage and Blueberry Kush, both produced with small-batch, hand-crafted whole flower boosted by THCA diamonds and premium full spectrum resin. With a rich blend of terpenes and cannabinoids made to deliver an ultra-potent kick, the new diamonds collection takes consumers to new heights, unlike anything the brand has offered before.

The new diamond-infused pre-rolls come in two powerful small-batch craft flower offerings including its popular Melonaide flower, and the brand's new Purple Punch OG flower. RIFF's new diamond-infused pre-rolls are produced with THCA diamonds, feature full-spectrum resin, are wrapped in premium paper, and are rolled in kief.

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