U.S. Medical Cannabis Market Set to Expand as Legalization Rapidly Spreads
NEW YORK, /PRNewswire/ - According to a report published by Hexa Research, the U.S. medical cannabis market size was valued at USD 5.44 Billion in 2016 and is anticipated to reach USD 19.48 Billion by 2024. The legal cannabis market is expected to witness strong growth during the forecast period due to the plant's multiple medical benefits as well as the fast pace of legalization in the United States. In 2016, an increasing number of patients diagnosed with chronic pain had resulted in the growing use of medical cannabis. As an example, the report estimated that the demand for medical cannabis products for the treatment of arthritis will grow at a CAGR of 17.8% over the projected period, as it forecasted more adults and children will have arthritis. Chemesis International Inc. (OTC: CADMF), General Cannabis Corp. (OTC: CANN), India Globalization Capital, Inc. (NYSE: IGC), VIVO Cannabis Inc. (OTC: VVCIF), Isodiol International Inc. (OTC: ISOLF)
So far, this year has been crucial for the cannabis industry. Canada has legalized cannabis on a national level and the state of California has legalized sales of cannabis products for recreational use. These recent developments are expected to have significant financial and economic implications. A report by Fortune indicates that, "In order to collect USD 1 Billion a year in taxes, the state will need to reach a projected USD 7 Billion in annual legal recreational cannabis sales. At that rate, California would easily be the country's largest legal marijuana market, as the entire legal cannabis industry in the U.S. is expected to pull in roughly USD 10 Billion in total sales for 2017. That number would almost certainly get a boost in the coming years, as legal markets grow in California and other states, such as Nevada and Massachusetts."
Chemesis International Inc. (OTC: CADMF) is also listed on the Canadian Securities Exchange under the ticker (CSE: CSI). Earlier this week, the Company announced, the opening of its wholly owned subsidiary Chemesis Latin America. Through this subsidiary, the Company is exploring and completing advanced due diligence on opportunities for cultivation, production and export from the Latin American market. The Company believes it will be able to quickly gain market share in Latin America through the use of its networks and existing expertise.
Chemesis' long-term growth strategy is focused on international expansion. Globally, regulation changes are occurring for both medical and recreational cannabis, and as these changes occur, Chemesis intends to be a first mover by leveraging its existing networks and developing brands suited for the Latin American market. Mexico is a great example of these changes, as president-elect, Andres Manuel Lopez Obrador, who has the job of overseeing rule making and regulations around Mexico's new marijuana law, unveiled a plan to change the country's drug strategy in several big ways.
Colombia, another front-runner in the Latin American cannabis market, is rapidly growing its capabilities. The government is hoping to grow up to 40.5 tons of cannabis per year, which would account for approximately 44% of the licenses issued globally. Colombia is estimated to capture as much as one-fifth of the global market, a value of $40 billion a year.
"Chemesis Latin America is a big step forward in our global growth strategy," said CEO, Edgar Montero. "We believe Chemesis has a major advantage in this region, as the recent acquisition of Natural Ventures can be leveraged to quickly capitalize on upcoming opportunities. With progressive regulations, Latin America becomes a key market that will be a major part of our portfolio. The Company has positioned itself to take advantage of significant opportunities in both Mexico and Colombia. This allows Chemesis to execute on its ambitious growth strategy to identify opportunities that will build long-term shareholder value. The company plans to announce the specific countries and jurisdictions where it will be operating in the near future."
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."
General Cannabis Corp. (OTCQX: CANN) is the comprehensive national resource for the highest-quality service providers available to the regulated cannabis industry. As the legal cannabis industry grows throughout the United States, the industry's leading service provider, General Cannabis Corp. recently announced it is expanding its presence on the East Coast with the opening of a New York office. The New York office provides General Cannabis a strategic location to better serve existing East Coast clients while also attracting new talent and partnerships as the cannabis market in the eastern U.S. continues to develop. Further, the opening of the New York office provides a hub for current clients looking for East Coast expansion opportunities. "Given our growing list of East Coast clients and the steps that states like Massachusetts and New Jersey have taken toward launching adult-use sales, this is the ideal time for General Cannabis to further invest and establish itself in the region," said Michael Feinsod, Executive Chairman of the Board for General Cannabis. "The growth potential for the market in this region is unparalleled. An East Coast office is perfectly suited to cater to this territory as General Cannabis continues to expand its presence nationwide. We plan on expanding our security, operations and marketing segments aggressively throughout the East Coast. In addition, we will be utilizing this office to expand and enhance our corporate, marketing and mergers and acquisitions teams."
India Globalization Capital, Inc. (NYSE: IGC) has two lines of business, a legacy infrastructure business and a cannabis pharmaceutical business that has developed a lead product for Alzheimer's patients. The Company recently announced that it has designated California as a priority market for Hyalolex, its lead cannabis-based supplement for treating and managing Alzheimer's patients. "The cannabis market is showing explosive growth and we are aggressively moving forward with our vision of owning and marketing the leading brands for large medical indications such as Alzheimer's, Parkinson's, PTSD, pain, veterinary medicine and cancer. With 8 patents filed, IGC has made significant strides towards achieving these goals and building value for our shareholders as a NYSE American listed company," stated Ram Mukunda, Chief Executive Officer of IGC.
VIVO Cannabis Inc. (OTCQB: VVCIF) is recognized for trusted, high-quality products and services. It holds production and sales licenses from Health Canada and its world-class indoor cultivation facilities in Napanee, Ontario and Hope, British Columbia both contain proprietary plant-growing technology. VIVO Cannabis Inc. recently announced that its wholly-owned subsidiary, Canna Farms Limited, has completed an agreement with the Ontario Cannabis Store (the "OCS") to supply the Province of Ontario with high-quality cannabis products. Under the terms of the agreement, Canna Farms will supply the Ontario market with cannabis products in two formats, representing 10 different product presentations, to help satisfy demand in the adult-use recreational cannabis market, set to open on October 17th, 2018. "This agreement between Canna Farms and the OCS brings VIVO's total count to 26 product presentations that will be available to Ontario recreational cannabis users. We are confident that cannabis consumers in Ontario will appreciate VIVO's high-quality branded products under the FIRESIDETM, LuminaTM and Canna Farms brands," said Barry Fishman, Chief Executive Officer of VIVO. "We are extremely excited to extend our product offering by including Canna Farms' branded craft-grown dried flower and pre-rolled products."
Isodiol International Inc. (OTCQB: ISOLF) is the market leader in pharmaceutical grade phytochemical compounds and the industry leader in the manufacturing and development of consumer products. Isodiol recently announced the progress of its months-long efforts to develop new hemp-based beers and functional beverages. In May 2018, IsoBev Inc., a wholly owned subsidiary of Isodiol, acquired a turn-key brewing system, including a 7-bbl brewhouse, four 15-bbl fermentation tanks, a 30-bbl fermentation tank, a 15-bbl brite tank, and a 30-bbl brite tank, which is expected to yield between 1,500 and 2,000 bbls of production per year. In addition, IsoBev acquired a 12-ounce bottling line and a 22-ounce bottling line, which could yield over 600,000 12-oz bottles and 25,000 12-oz bottle cases per year. "IsoBev's new brewing system is intended to serve a research and development function and produce commercial products for test markets with respect to alcoholic and non-alcoholic beers and functional beverages," said Marcos Agramont, Isodiol's Chief Executive Officer. "We believe there is a significant demographic within the existing beer, wine, and spirits and health and wellness consumer markets that is open to unique beverage experiences, with a particular interest in cannabinoid-rich carbonated beverages."
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Company Codes: AMEX:IGC, OTC-BB:VVCIF, OTC-BB:CANN, OTC-BB:CADMF, OTC-BB:ISOLF