The Global Cannabis Market is Expected to Grow as More Countries Eye Legalization
NEW YORK, November 5, 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. Additionally, the market is set to grow at a CAGR of 37% during the forecast period. The rapid growth rate is attributable to the widespread legalization of cannabis. For example, Canada just recently legalized cannabis, becoming the only G-7 nation to have done so. The country's implementation marks a huge milestone as more nations look into legalization for recreational or medical purposes. Although Canada has fully legalized cannabis, the U.S. markets are expected to dominate the cannabis industry. The U.S. alone contributed to 90% of the global market share. Despite only having nine states and the District of Columbia to have legalized cannabis entirely, the market is still expected to see a large demand as more states are awaiting the voting process. Chemesis International Inc. (OTC: CADMF), Pyxus International Inc. (NYSE: PYX), Therapix Biosciences Ltd. (NASDAQ: TRPX), Green Thumb Industries Inc. (OTC: GTBIF), KushCo Holdings, Inc. (OTC: KSHB)
Other nations are beginning to explore opportunities in the cannabis market, especially European nations. The E.U. nations are looking into medical cannabis for implementation. While cannabis is decriminalized in many European countries, cultivation and public smoking are still illegal. The wave of countries that have already decriminalized cannabis, and the ones looking into new opportunities, indicates that cannabis is having a global widespread impact. The University of Mexico conducted two studies recently to research cannabis for medical usage. The studies analyze data of cannabis consumption and the effects through an app and have over 100,000 recorded users. "If the results found in our studies can be extrapolated to the general population, cannabis could systematically replace multi-billion dollar medication industries around the world. It is likely already beginning to do so." said Jacob Vigil, UNM Department of Psychology Associate Professor.
Chemesis International Inc. (OTC: CADMF) is also listed on the Canadian Securities Exchange under the ticker (CSE: CSI). Just earlier today, the company announced breaking cannabis news that, "it has entered into a binding Letter of Intent ("LOI") to acquire 100% of Colombia-based La Finca Interacviva-Arachna Med SAS ("La Finca"), an integrated cannabis company that has been licensed and operational in Colombia since October, 2017. La Finca has access to over 1000 acres of outdoor cultivation land and is aggressively exploring opportunities to expand. It is a founding member for the "Association for the Promotion of Hemp Growing," a non-profit entity that is concentrated on providing education and promoting the expansion of cannabis plantations, while ensuring the growth of high-quality crops through technical advice. The company's cultivation program is based on a decentralized model with partner farmers throughout the country, allowing small farmers to quickly generate high quality crops. Currently, La Finca has relationships with over 2,000 farming families across Colombia through various co-ops that comprise its land package.
La Finca also has a partnership with the largest university in Colombia, Universidad Nacional de Colombia, to develop seed strains that improve the yield of biomass and flower while shortening crop cycles. It has also partnered with Universidad Distrital Francisco José de Caldas, which focuses on the educational aspects of cannabis cultivation. The university provides distance education as well as in-class instruction to educate farmers on cannabis crops, ensuring they are able to produce high quality crops. La Finca currently has several manufacturing relationships and CAD$2.5-million working capital available to expand its operations. The company has a manufacturing agreement for licensed cosmetic products under the La Finca brand. These products are licenced through the Instituto Nacional de Vigilancia de Medicamento (INVIMA) which is Colombia's equivalent to the US Food and Drug Administration (US FDA). The company is heavily involved with INVIMA ensuring compliance with all regulations and health requirements.
Colombia is located close to the equator and boasts a 12-hour sun cycle that occurs year-round, allowing for harvesting to occur 365 days a year . The mountainous geography of Colombia provides different thermal floors which allow for cultivation to occur in multiple climates, simultaneously. Colombia also has many free trade agreements that will allow for cost effective export of cannabis products around the world. The Company believes La Finca is particularly well positioned in a country that is quickly adapting cannabis regulations, thus providing an extremely lucrative investment opportunity for both short and long-term growth.
"Chemesis is continuing its expansion into the Latin American market, a region the Company believes is poised for international growth and expansion," said Chemesis CEO, Edgar Montero. "With the acquisition of La Finca, the Company will acquire an asset in a country that is developing its cannabis industry for distribution around the world. We continue to execute our business plan that is focused on building long term growth in key markets around the world."
The Company will acquire La Finca for $13,500,000 CAD in a combination of cash and common shares of the Company to be determined upon execution of the definitive agreement. All stock issued will be subject to a 36-month phased lock-up period. Closing of the transactions contemplated by the LOI are subject to regulatory approval.
About Chemesis International Inc. - Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently operating within Puerto Rico, and California. Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution, and retail. Chemesis has facilities in both Puerto Rico and California, allowing for cost effective production and distribution of its products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods, to provide consumers with quality cannabis products. Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently delivering quality product to its consumers from seed to sale.
Pyxus International Inc. (NYSE: PYX) is a global agricultural company with 145 years' experience delivering value-added products and services to businesses and customers. Pyxus International Inc. recently announced that its indirect Canadian subsidiary, Goldleaf Pharm Inc., has received its Access to Cannabis for Medical Purposes Regulations (ACMPR) cultivation license from Health Canada. The license, awarded September 28, 2018, permits Goldleaf Pharm to begin cultivating medicinal cannabis at its Simcoe, Ontario facility. With this development, FIGR's two subsidiaries are now both licensed to produce medicinal cannabis in Canada. "This is an important step, and an exciting time, for us at Goldleaf Pharm," said Larry Huszczo, Goldleaf Pharm's Co-Founder. "We have a state of the art 20,000 square foot indoor growing facility, and recently acquired 20-acres of adjacent property, giving us the ability to expand to more than 700,000 square feet of production space to cultivate cannabis. I am very proud of our team, which has worked diligently to meet Health Canada's requirements."
Therapix Biosciences Ltd. (NASDAQ: TRPX) is a specialty clinical-stage pharmaceutical company led by an experienced team of Senior Executives and Scientists. Therapix Biosciences Ltd. recently announced today signing a binding letter of intent with FSD Pharma Inc., under which FSD will acquire Therapix, effective October 22nd, 2018. The Transaction focuses on Therapix proprietary IP and related technology, and assets pertaining to all clinical-stage pharmaceutical assets applications, excluding certain pain assets, such as the U.S.-based pain clinics. "We are excited to join FSD Pharma to be part of one of the fastest growing, most forward-thinking companies in this sector," said Ascher Shmulewitz, MD, PhD, Chairman of Therapix. "Our combined resources and highly competent scientific and business leadership teams, position the combined entity well to execute upon our shared vision to deliver groundbreaking, proprietary cannabinoid platform technologies to both the professional and retail markets globally. As a result, we have suspended all negotiations with Cure Pharmaceutical Holding Corp."
Green Thumb Industries Inc. (OTCQX: GTBIF), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which it serves. Nutritional High International Inc. recently announced its wholly-owned subsidiary NH Medicinal Holdings, LLC has entered into a definitive agreement on October 19th, 2018, to sell its fifty percent (50%) membership interest of Illinois-based NH Medicinal Dispensaries, LLC to ILDISP LLC, GTI-Clinic Illinois Holdings, LLC. "The Effingham dispensary has been a great asset for us. We won the license in a competitive process and brought in great partners in GTI and Ataraxia," commented Nutritional High's Chief Executive Officer Jim Frazier. "With our focus on California, Nevada and the US West Coast, the Southern Illinois dispensary was no longer core to our business and we are pleased to have been able to sell it at a significant gain."
KushCo Holdings, Inc. (OTCQB: KSHB) is the parent company to a diverse group of business units that are transformative leaders in the cannabis, CBD and other related industries. KushCo Holdings, Inc. recently announced that it has joined the Sustainable Packaging Coalition ("SPC"), a membership-based collaborative that is considered the leading voice on sustainable packaging solutions. "Joining the Sustainable Packaging Coalition is a milestone not only for our company but for cannabis industry as whole. KushCo and its divisions are the first cannabis-related company to join this premier tier of global brands in the SPC. This initiative further demonstrates our commitment to developing sustainable packaging solutions for the cannabis supply chain," said Chief Executive Officer, Nick Kovacevich. "We are dedicated to understanding how KushCo can employ innovative methods to develop more environmentally friendly packaging. As the cannabis industry's largest and most respected distributor of packaging, supplies, and accessories, being a leader in reducing waste in the cannabis industry is an important pillar we internally rally around and plan for this to be a jumping off point for further sustainable company initiatives. As we innovate sustainable packaging options we will use our Koleto team of designers and engineers to further create and develop marketable products in this new tier of packaging awareness. We look forward to working with the SPC and its members to collaborate and determine how we can reduce our environmental impact and we're excited for the innovative ideas and products which are to come."
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/
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.
Company Codes: OTC-BB:CADMF, NYSE:PYX, NASDAQ-SMALL:TRPX, OTC-BB:GTBIF, OTC-BB:KSHB