Booming Cannabis Market to see Growing Consumer Spending Habits
Booming Cannabis Market According to data compiled by Arcview Market Research, in partnership with BDS Analytics, the legal cannabis market will grow by 150% from USD 16 Billion in 2017, to USD 40 Billion by 2021. The report forecasts that the projected consumer spending of USD 20.8 Billion in 2021 will generate USD 39.6 Billion in economic impact, 414,000 jobs as well as over USD 4 Billion in taxes. Due to the rapid legalization of recreational and medical cannabis usage, the market is growing at a significant rate. Medical cannabis is widely legalized within the U.S. and is already fully legalized in Canada, but recreational use is also beginning to take off, especially with Canada’s recently passed bill to legalize adult-use cannabis nationally. WeedMD Inc. (OTC: WDDMF), United Cannabis Corporation (OTC: CNAB), InMed Pharmaceuticals Inc. (OTC: IMLFF), MYM Nutraceuticals Inc. (OTC: MYMMF), Invictus MD Strategies Corp. (OTC: IVITF)
A rndesearch by PwC indicates that more than 100 licensed producers (LPs) already populate Canada’s cannabis landscape, with hureds more awaiting government approval. Most LPs are still in startup mode, despite being in operation for a few years. Darren Henderson, Partner at PwC Canada’s Technology, InfoComm, and Entertainment & Media consulting explained, “The cannabis industry is blossoming. With the upcoming legalization of cannabis for recreational use by the Federal Government, the sector is expected to grow as producers, manufacturers, and companies from across the value chain embrace opportunities in both the recreational and medical markets.”
WeedMD Inc. (OTC: WDDMF) is also listed on the Toronto Stock Exchange Venture under (TSX-V: WMD). Just yesterday, the Company announced breaking news that, “it has entered into an agreement with the Alberta Gaming, Liquor & Cannabis Commission (“AGLC”) to supply the province with high-quality, branded cannabis products for sale in Alberta’sadult-use market.
‘We’re proud that the AGLC has selected WeedMD as a cannabis supplier to join its network as it looks to establish a cannabis framework for its adult-use markets,’ said Keith Merker, Chief Financial Officer of WeedMD. ‘This represents a strategic partnership as we look to expand our product reach across the country to support Canada’s legal adult-use market. Alberta’s high standards align with the highly-regarded quality of our cultivation standards, product portfolio, and commercial practices as we look to meet the expected demand of this new market.’
WeedMD will supply the Alberta market with cannabis products starting the first day of legal sales. This agreement represents a key milestone in WeedMD’s strategic plan to develop a national distribution platform for the Company’s medical and adult-use products, building upon the recent announcement of WeedMD’s supply agreement with Shoppers Drug Mart. WeedMD is actively working with provincial distributors, regulators, and retailers to expand its adult-use distribution program, particularly as the Company completes the final stages of its 220,000 sq. ft. greenhouse retrofit within its 610,000 sq. ft. greenhouse facility in Strathroy, Ontario.
For more information, access our investor presentation here and corporate video here.
1 Pending Health Canada approval
About WeedMD Inc. – WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of medical cannabis and oils under the ACMPR. The Company operates a 26,000 sq. ft. indoor facility in Aylmer, Ontario, and a second cultivation site at its greenhouse facility located in Strathroy, Ontario, representing 610,000 sq. ft. or 14 acres under glass. WeedMD has entered into supply agreements in addition to strategic relationships with established cannabis brands. WeedMD is focused on providing medical cannabis to the seniors’ markets in Canada through its proprietary seniors care program. It is dedicated to educating healthcare practitioners and furthering public understanding of the role that medical cannabis plays – including as it pertains to regulatory requirements, indications and potential side effects.”
United Cannabis Corporation (OTCQB: CNAB) is a biotechnology company dedicated to the development of phyto-therapeutic based products supported by patented technologies for the pharmaceutical, medical, and industrial markets. The Company announced that Jamaica’s University of the West Indies’ Ethics Committee has reviewed and approved its proposal to conduct clinical trials on its Prana Bio Nutrient Medicinals P1 Capsules for the treatment of chronic pain. The study, titled, “An Open-Label, Phase 1, 2-Way crossover study evaluating the pharmacokinetics of Prana P1 THC activated capsules,” will be conducted in conjunction with Cannabinoid Research & Development, the Company’s Jamaican subsidiary, at the Centre For Cannabis Research at the University of West Indies, Mona Campus, in Jamaica. Earnest Blackmon, Chief Executive Officer of United Cannabis, commented on the announcement, “We started United Cannabis to advance the role of cannabis in medicine, and our ability to conduct clinical trials is a major step toward that objective. While we continue to pursue that goal here in the United States, Jamaica currently provides a more favorable regulatory environment and we are excited to begin the endeavor of demonstrating the efficacy of our Prana products to the pharmaceutical community.”
InMed Pharmaceuticals Inc. (OTCQX: IMLFF) is a pre-clinical stage biopharmaceutical company that specializes in developing novel therapies through the research and development into the extensive pharmacology of cannabinoids coupled with innovative drug delivery systems. InMed Pharmaceuticals Inc. announced last month that it has closed the “bought deal” financing originally announced on June 12th, 2018, and that the over-allotment option of the underwriter, Eight Capital, has been exercised in full. The total gross proceeds raised by the Company in the Financing were CAD 14.95 Million. InMed’s President and Chief Executive Officer, Eric A. Adams, commented, “This financing is expected to fund our most advanced and highest-value programs, specifically our proprietary biosynthesis manufacturing technology and the development of INM-750 for the treatment of Epidermolysis Bullosa.” Mr. Adams continued, “We are confident that the ongoing development of our various programs will lead to the achievement of significant value inflection milestones for the Company”
MYM Nutraceuticals Inc. (OTCQB: MYMMF) is an innovative company focused on acquiring Health Canada licenses to produce and sell high-end organic medicinal cannabis supplements and topical products. MYM Nutraceuticals Inc. and Sherbrooke College recently announced the signing of a partnership agreement to develop a training program for MYM’s employees assigned to the production of cannabis. The educational curriculum will be expanded and offered as a diploma program as part of the Sherbrooke College course offerings. Under the terms of this agreement, MYM retains the services of the Sherbrooke College Continuing Education Center to develop and deliver tailor-made training and learning programs leading to a diploma in the fields of production, agricultural management and associated laboratory techniques specific to the production of cannabis. The agreement is valid for a five-year period, beginning July 1, 2018. “We are pleased to be able to rely on the Sherbrooke College Continuing Education Center to develop customized training for our future employees, including programs leading to a diploma,” said Rob Gietl, CEO of MYM. “The signing of this agreement with Sherbrooke College satisfies the Company’s desire to develop its workforce by calling on the area’s educational resources and aiding in the development of such resources.”
Invictus MD Strategies Corp. (OTC: IVITF) owns and operates two cannabis production facilities, both with sales licenses, under the ACMPR in Canada, with the vision of producing a variety of high quality and low-cost cannabis products to the global market, as regulations permit. The Company announced last month that it has signed a non-binding Letter of Intent, executed on June 13, 2018, to sell dried cannabis to a German importer and distributor of medical cannabis. The Company will initially commit to selling 1,000 kgs of dried cannabis flower per annum at a price of USD 6.50 per gram. The volumes and respective prices of dried cannabis flower for the second and consecutive years will be defined in a Definitive Offtake Agreement. The Importer, whose name will remain undisclosed until execution of the Offtake Agreement, combines a highly competitive business model with a vast distribution network of 20,000 pharmacies and a clear focus on product marketing and professional education. The Importer’s experienced management team previously led an international joint venture successfully to the final stage of the German tender for domestic cannabis production and unites the expertise of medical professionals, experts in pharmaceutical regulatory law as well as experienced entrepreneurs. “We continue to explore opportunities for sales and distribution beyond our nation’s borders to countries, like Germany, that welcome legalized medical cannabis products,” said Dan Kriznic, Founder and CEO.”
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