Data Shows Legal Cannabis Sales Expected to Grow in the Near Future
NEW YORK, March 12, 2018 /PRNewswire/ —
Legal Cannabis Sales According to a report by Ameri Research Inc., the global legal cannabis market was valued at $14.3 billion in 2016 and is estimated to grow at a CAGR of 21.1% between 2017 to 2024, while reaching a value of $63.5 billion by 2024. The market is going through a period of robust growth because of increasing legalization and decriminalization of cannabis products across North America. The report specifies that the legalization trend is moving beyond the U.S. region. Data by Arcview Market Research clarifies that growth of the legal cannabis industry will reaccelerate beginning 2018, as adult use sales ramp up in Canada, California, and Massachusetts along with medical sales in Florida. Pivot Pharmaceuticals Inc. (OTC: PVOTF), Kush Bottles, Inc. (OTC: KSHB), Cannabis Sativa, Inc. (OTC: CBDS), Canopy Growth Corporation (OTC: TWMJF), Aphria Inc. (OTC: APHQF)
Legal Cannabis Sales
Tom Adams, Editor-in-Chief at Arcview Market Research and Principal Analyst at BDS Analytics, explained, “Californiagets the media attention and Canada gets the investment dollars as they allow adult use, but Germany’s move to make cannabis flower available for medical use in pharmacies was really the big news of 2017 from a worldwide perspective… The tables have turned in favor of legalization across the world and we predict that the trend will spread as research continues to support cannabis’ effectiveness as a medication.”
Pivot Pharmaceuticals Inc. (OTCQB: PVOTF) also listed on the Canadian Stock Exchange under the Ticker ‘PVOT’. Just earlier today the company announced breaking news that, “the Company has retained Cannabis Compliance Inc. (“CCI”) to submit an application to Health Canada for a Dealer’s License (“Dealer’s License” or “DL”) under the Controlled Drugs and Substances Act (“CDSA”) and the Narcotic Control Regulations enacted thereunder on behalf of Agro-Biotech Inc. (“Agro-Biotech”). As previously announced, Pivot has entered into a letter of intent for the proposed acquisition of Agro-Biotech (the “Proposed Acquisition”). For further details on the Proposed Acquisition, please refer to the Company’s news release dated February 22, 2018.
Agro-Biotech operates a fully licensed, purpose-built, indoor hydroponic cannabis production facility located in Saint-Eustache, Québec, 40 kilometres north of Montréal. Phase I is now complete and Phase II and Phase III are expected to be completed by the end of September 2018, resulting in a total grow area of 75,000 sq. ft., capable of producing a cumulative 10,000 kg per year. Agro-Biotech received its Producer’s License from Health Canada’s Office of Medical Cannabis on January 12, 2018. Upon the anticipated issuance of a Sales License from Health Canada initial revenue is expected in Q3 2018. Upon completion of the Proposed Acquisition, the Dealer’s License will enable Pivot, through Agro-Biotech, to conduct research and development (“R&D”) and store cannabis derivatives that are not currently covered under the Access to Cannabis for Medical Purposes Regulations (“ACMPR”). A Dealer’s License and export permit would position the Company to export cannabis oils and concentrates to available international markets, as well as to process natural health products. In addition, a DL will also allow the Company to prepare authorized manipulations, formulations, dosage forms, strengths or package sizes of cannabis expanding possible research and product innovation opportunities.
The facility design includes extraction and purification areas expected to be fully operational following the successful closing of the Proposed Acquisition and receipt by Agro-Biotech of a Dealer’s License from Health Canada. Agro-Biotech is one of only six Licensed Producers in Québec, Canada’s second largest province with a population of over 8.4 million people. Owners of 75 high quality cannabis strains, including high expressors of CBD, Agro-Biotech’s genetics will enable it to bring unique, differentiated cannabis products to market.
Pivot is also pleased to announce that Dr. Wolfgang Renz has been appointed as the Company’s Chief Medical Officer. Dr. Renz previously served as Corporate Vice President, Healthcare Innovation, at Boehringer Ingelheim. He also serves as Adjunct Professor of Surgery at McGill University’s Faculty of Medicine in Montreal. Dr. Renz holds a MD and PhD from Freiburg University and is board certified in Germany in Emergency Medicine. “I am excited to lead the development of all medical and therapeutic activities from Pivot’s impressive bio-cannabis pipeline. There is tremendous value and opportunity based on the numerous product formulation and dosing technologies Pivot has licensed or acquired over the past year. The technologies have demonstrated their usefulness in the pharmaceutical markets and delivering cannabinoids with these platforms will be disruptive.”
Dr. Patrick Frankham, Pivot’s CEO states “The addition of a Dealer’s License for the Agro-Biotech facility will allow the Company to exercise complete control of our finished products, from seed to derivatives. With access to 10,000 kg of cannabis annually, the ability to extract, purify and formulate in house, Pivot will provide the most exceptional quality, dosable products available on the market. This vertical integration makes Pivot a differentiated player in the cannabis industry.” Dr. Frankham also commented that “the appointment of Dr. Renz provides Pivot with an experienced pharmaceutical executive who will accelerate the Company’s technological, marketing, sales and distribution partnerships in the European Union. We continue to aggressively execute on our business strategy.””
Kush Bottles, Inc. (OTCQB: KSHB) provides unique products and services for both businesses and consumers in the cannabis industry. Recently, the company announced it has been selected by FunkSac, LLC to be the exclusive distributor for its line of flagship FunkGuard products. FunkSac® which was named by Entrepreneur Magazine as one of “10 Cannabis Startups You Need to Watch,” was funded in part by Snoop Dogg’s Casa Verde Capital. The company is veteran-owned, based in Denver, CO, and provides compliant packaging solutions used in both medical and recreational markets. Under the terms of the agreement, Kush Bottles will distribute the line of FunkGuard products to FunkSac’s existing customer base, as well as across Kush Bottles’ national platform. FunkSac® will continue to implement its own sales and marketing initiatives in conjunction with the additional support from Kush Bottles. FunkSac® is committed to the top sustainability practices in the industry; all FunkGuard’s child-resistant packaging are made of FDA-approved plastic with odor-barrier technology made from eco-friendly materials, and are fully recyclable.
Cannabis Sativa, Inc. (OTCQB: CBDS) is engaged in the licensing of cannabis related intellectual property, marketing and branding for cannabis based products and services, operation of cannabis related technology services, and ancillary business activities. On December 4, 2017, the company announced that its subsidiary, PrestoDoctor, is expanding its online medical marijuana recommendation services into New York. PrestoDoctor currently serves patients via both their online platform and with dispensary kiosks operating in California and Nevada and will now extend their online services to patients located in the State of New York. To use PrestoDoctor’s online services, interested patients must sign up for an account and complete a profile. They are then eligible to choose an appointment time and video chat with one of PrestoDoctor’s licensed physicians. Patients can immediately receive a digital recommendation and an official copy will arrive in the mail a few days later.
Canopy Growth Corporation (OTC: TWMJF) is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. On February 21, 2018, the company announced the signing of a definitive supply agreement with Sunniva Inc. Through the terms of this two-year agreement, Canopy Growth will purchase up to 90,000 kilograms of dried cannabis from Sunniva’s wholly-owned Canadian subsidiary, Sunniva Medical Inc., a late-stage Access to Cannabis for Medical Purposes Regulations applicant, and sister company of Natural Health Services, the sector’s largest non-Licensed Producer medical patient network with tens of thousands of active registrations in the ACMPR. The agreement will see Sunniva grow Canopy’s existing line-up of award winning genetics as well as its own branded products, both for sale through Canopy Growth’s extensive distribution network, including Tweedmainstreet.com, the planned Tweed retail store network across the country, and through provinces in which Canopy has already established historic supply agreements. The deal secures a diverse supply of curated cannabis products for Canopy Growth and a reliable sales channel and stream of revenue for Sunniva, with appropriate risk sharing formulas in place for both parties. Sunniva is developing a 700,000 sq. ft. GMP-certified greenhouse facility in British Columbia which will act as the primary production facility to meet their supply goals. The facility will produce cannabis products to supply the current medical market and the upcoming legalized recreational market in Canada.
Aphria Inc. (OTCQB: APHQF), one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. On February 14, 2018, the company announced that it has signed a Letter of Intent with the Société des alcools du Québec to guarantee a supply of high-quality, safe and clean cannabis products for sale in the Quebec adult-use market through their retail outlets and e-commerce platform. Under the terms of the agreement, the Company will supply the Quebec market with up to 12,000 kg of branded cannabis products in the first year of the agreement, including cannabis oils and other derivative products and several strains of high-quality Ontario– and B.C.-grown dried cannabis flower.
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