U.S. Legal Cannabis Market Expected to Continue Growing Despite Federal Prohibition
Published: Oct 12, 2018
NEW YORK, /PRNewswire/ --
According to data compiled by Arcview Market Research, in partnership with BDS Analytics, the United States' legal cannabis market is projected to reach USD 11 Billion in consumer spending in 2018 and more than USD 23 Billion by 2023 while growing at a CAGR of 22% during the forecast period. Consumer spending is being heavily driven by the legalization of both recreational and medical cannabis. As more and more states begin to loosen or legalize cannabis regulations, demand and economic benefit are expected to increase. The U.S. alone contributed to 90% of global cannabis sales in 2017, as 29 states and the District of Columbia have legalized either medical or recreational usage, or both. According to Forbes, states such as California, Colorado, Nevada and Washington State all drove in around USD 1 Billion in revenue, contributing the most of the U.S.' overall revenue. AmeriCann, Inc. (OTC: ACAN), Neptune Wellness Solutions Inc. (NASDAQ: NEPT), Emerald Health Therapeutics, Inc. (OTC: EMHTF), Invictus MD Strategies Corp. (OTC: IVITF), Lexaria Bioscience Corp. (OTC: LXRP)
Despite federal prohibition, the U.S. legal cannabis industry still experienced a 31% growth in 2017, reaching USD 8.5 Billion. Arcview is forecasting the market to continue to grow as prohibition begins to loosen. Although Canada and Uruguay are the only two countries to have legalized cannabis entirely, medical cannabis is quickly moving worldwide. "The end of marijuana prohibition is in sight and what that means for this market cannot be overstated," said Troy Dayton, Chief Executive Officer of the Arcview Group. "There are billions of dollars in institutional capital chomping at the bit to take advantage of this shift, but so far haven't found a major way in. This leaves a limited window for businesses to get a foothold and build value for liquidity events that might come sooner than any of us thought possible just a few months ago."
AmeriCann, Inc. (OTCQB: ACAN) just announced breaking cannabis news that it, "has released designs for Building 2 which includes 345,000 square feet of cannabis manufacturing and cultivation infrastructure at its 52-acre Massachusetts Medical Cannabis Center (MMCC) in Freetown, MA.
The configuration of Building 2 includes over 100,000 square feet of dedicated cannabis extraction, processing and product manufacturing space and approx. 245,000 sq. ft. of cultivation infrastructure. The dedicated cultivation facilities are designed to utilize AmeriCann's proprietary greenhouse system called Cannopy. The design of Building 2 of the MMCC, which is 345,000 square feet, will include three distinct units:
AmeriCann will own and operate Unit B which is designed to provide extraction and product manufacturing support to the entire MMCC project, as well as to other licensed cannabis farmers throughout Massachusetts. In addition to large-scale extraction of cannabis plant material, AmeriCann plans to produce branded consumer packaged goods including cannabis beverages, vaporizer products, edible products, non-edible products and concentrates at the state-of-the-art facility. The Company has already commenced construction on the first phase of the 1 million square foot multi-phase MMCC project with a 30,000 square foot cultivation facility.
AmeriCann plans to replicate the brands, technology and innovations developed at its MMCC project to new markets as a multi-state licensed operator.
Infused products are becoming an increasingly larger segment of total cannabis sales in regulated markets. According to the Wall Street Journal, 'Interest in cannabis as an ingredient in food and drinks in on an upswing; beer brewing giant Constellation Brands, Inc. (NYSE: STZ) recently took a $4 billion stake in Canadian marijuana grower Canopy Growth Corp., (NYSE: CPG) which makes cannabis infused drinks and other products.'
Industry experts believe that the pending Massachusetts adult-use market, in conjunction with its existing medical program will exceed $1 billion by 2020. As the first approved adult-use cannabis market on the Eastern US, Massachusetts has the potential to become the epicenter for cannabis innovation and research.
About Massachusetts Medical Cannabis Center - Massachusetts Medical Cannabis Center (MMCC), a one million square foot sustainable greenhouse facility in Freetown, Mass. The first phase of the facility is scheduled to open and be ready for cannabis cultivation, processing, and infused product production in the spring of 2019. Once fully developed, the MMCC design calls for a research facility, a training center, corporate offices, a quality-assurance laboratory, and a facility for manufacturing cannabis-infused food, nutraceuticals and consumer packaged cannabis goods. AmeriCann intends to open similar facilities in states in which cannabis is legal for medical and adult use.
About AmeriCann- AmeriCann is a publicly traded agricultural technology (Ag-Tech) company that is developing a new generation of sustainable, state-of-the-art cannabis cultivation and processing properties. AmeriCann uses greenhouse technology which is superior to the current industry standard of growing cannabis in warehouse facilities under artificial lights. According to industry experts, by capturing natural sunlight, greenhouses use 25 percent fewer light bulbs, and utility bills are up to 75 percent less than in typical warehouse cultivation facilities. As such, AmeriCann's Cannopy System enables cannabis to be produced with a greatly reduced carbon footprint, making the final product less expensive. Additionally, greenhouse construction costs are nearly half of warehouse construction costs. The first publicly traded Certified B Corp in the cannabis industry, AmeriCann has proven its commitment to sustainable, clean cultivation of medical cannabis and to social and environmental ethics, transparency and accountability." For the latest AmeriCann Inc. corporate video news check out "Buzz on the Street": https://www.youtube.com/watch?v=6n4CN3QD0So
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) is a health and wellness products company, with more than 50 years of combined experience in extraction, purification and formulation of value-added differentiated science-based products. Neptune (formerly known as Neptune Technologies & Bioressources Inc.) recently announced that it has received a Confirmation of Readiness letter from Health Canada in regard to its application to become a Licensed Producer under the ACMPR (Access to Cannabis for Medical Purposes Regulations). Health Canada's positive response marks another important regulatory step forward to obtaining Neptune's license to produce cannabis oil supporting its timeline to commence commercialization this fiscal year. Neptune will notify Health Canada in the coming days and provide all additional required evidence to the agency to demonstrate the Corporation's readiness to commence production. Upon satisfactory review by Health Canada, of any additional information submitted by Neptune, the Corporation would receive its license for cannabis extraction. "This key milestone brings us to the threshold of becoming a Licensed Producer of cannabis oil in Canada, and is a very exciting moment," said Jim Hamilton, President & Chief Executive Officer of Neptune. "Our entry into the legal cannabis industry leverages our established expertise in the development of innovative Omega3 oil products, navigating global regulatory frameworks, worldwide commercialization of wellness solutions, and production of high quality extracts, as well as our state-of-the-art Good Manufacturing Practices (GMP)-certified facility in Sherbrooke, truly providing us with a strong competitive edge to become a leading player in this burgeoning market".
Emerald Health Therapeutics, Inc. (OTCQX: EMHTF) is a Licensed Producer under Canada's Access to Cannabis for Medical Purposes Regulations and produces and sells dried cannabis and cannabis oil for medical purposes. Emerald Health Therapeutics, Inc. recently announced that Northern Vine Canada Inc. (Northern Vine), a wholly owned subsidiary of Emerald, successfully completed the export of cannabis oil to the United States on May 25th, pursuant to an import permit from the federal U.S. Drug Enforcement Agency (DEA). The cannabidiol (CBD)-containing cannabis oil is expected to be used by a U.S. biopharmaceutical company to develop its proprietary cannabinoid technology for medical research and development and for its manufacturing process for future clinical trials. "We are one of the few companies with DEA approval in the United States allowing us to support the development of novel cannabis-based medical-use drugs. This is representative of our capabilities focused on international clinical development," said Chris Wagner, Chief Executive Officer of Emerald. "Importing unique isolates from sophisticated international producers for our own research and development is also aligned with our focus of driving the development of novel cannabis-based products to improve lives around the world."
Invictus MD Strategies Corp. (OTCQX: IVITF) is a global cannabis company offering a selection of products under a wide range of lifestyle brands. Invictus MD Strategies Corp. recently announced that it has completed its first shipment of recreational cannabis to British Columbia on time, following its inaugural shipment to Alberta. Staff have been working around the clock to meet aggressive deadlines set to ensure Invictus products are available to adult consumers on October 17th, 2018. This significant milestone was made possible by the Company's balanced and deliberate approach towards cultivation and regulatory compliance. While Invictus focused on expansion of its cultivation facilities, Acreage Pharms secured excise stamps and Health Canada approved packaging for the adult recreational market early, allowing Purchase Orders to be completed on time and without issue. "I am so proud of what our team has accomplished to date," said Dan Kriznic, Invictus Chairman and Chief Executive Officer. "With just weeks remaining until recreational cannabis becomes legal in Canada, it is amazing to see our vision come to life. Now we are looking ahead to opening day, and we are ready."
Lexaria Bioscience Corp. (OTCQX: LXRP) has developed and out-licenses its disruptive delivery technology that promotes healthier ingestion methods, lower overall dosing and higher effectiveness of lipophilic active molecules. Lexaria Bioscience Corp. recently announced that it has completed the creation of four wholly-owned subsidiary companies. Each of the companies has a new website currently under construction that is individualized for corporate purposes specific to that company, but also clearly branded as part of the Lexaria group of companies. The subsidiaries are each empowered with Lexaria's patented DehydraTECHTM technology. One of the subsidiaries, Lexaria CanPharm Corp., is a Canadian company focused on providing DehydraTECH technology and other enhancements to the global cannabis industry. Lexaria CanPharm Corp. administers the Company's current cannabis-related patent portfolio, which is one of the largest cannabis-focused intellectual property suites in the world. Lexaria CanPharm is in active discussions related to licensing its technology to companies located in Canada, the USA, and Europe.
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Company Codes: OTC-BB:ACAN, NASDAQ-SMALL:NEPT, OTC-BB:EMHTF, OTC-BB:IVITF, OTC-BB:LXRP, NYSE:STZ, NYSE:CPG