Why Demand for Cannabis is Expected to Surge in Coming Months
Over the past several years, there has been a significant increase in the number of cannabis cultivators in the U.S. as the government is now accepting more applications for cannabis cultivators. In addition, the number of applications for which cannabis is prescribed is increasing. This is expected to increase cannabis sales, and thereby open new revenue channels for market players. Furthermore, the anticipated federal-level legalization of medical marijuana in the U.S. will only help this market to witness high growth opportunities in legal medical consumption. The demand for legal marijuana is expected to surge rapidly due to changes in government policies. Several new startups are venturing into R&D, cannabis testing, and manufacturing. In Canada, many provinces are looking forward to the privatization of cannabis retail stores. Many provinces that chose a single supplier are now inviting applications from multiple suppliers. These factors are anticipated to drive the market over the forecast period. According to a report from Grand View Research, the global legal marijuana market size was valued at USD 9.1 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 26.7% from 2021 to 2028. The report said: "One of the major factors fueling the market growth is the expanding demand for legal marijuana owing to the growing number of legal cannabis countries. Owing to the recent legalizations in different countries, the use of medical marijuana for various aliments is gaining momentum worldwide. Patients suffering from chronic illnesses, such as Parkinson's, cancer, Alzheimer's, and many neurological disorders, are administered medical marijuana. The demand for cannabis oil is increasing rapidly, especially among countries with legalized medical marijuana." Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. (OTCPK: NUGS), Sundial Growers Inc. (NASDAQ: SNDL), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Canopy Growth Corporation (NYSE:CGC) (TSX:WEED), cbdMD, Inc. (NYSE: YCBD).
Grand View Research continued: "Recent novel food ruling in Europe will further strengthen the growth of CBD isolates in the coming years. Moreover, the children consuming cannabis are being prescribed with oil only as it has shown tremendous benefits for the treatment of disorders, like epilepsy. In Feb 2021, Governor Phil Murphy signed three bills for the legalization of recreational cannabis for adults 21 years and older in New Jersey, the U.S. This is further expected to boost the market potential in the coming few months. North America dominated the market with a revenue share of 79.6% in 2020. The growth of the regional market has been supported by enlightened government regulations and the legalization of marijuana for medical as well as adult (recreational) use partially in the U.S. and Canada. The presence of key marijuana cultivators and manufacturers in the region, the legalization of marijuana for adult use, increasing retail sales, and geographical expansion of retail stores are some other factors driving the regional market."
Cannabis Strategic Ventures, Inc. (OTC Pink: NUGS) BREAKING NEWS: NUGS Unveils New LA Dispensary Brand and Coming Cultivation Expansion involving New Licensed Indoor Grow Facility - Cannabis Strategic Ventures, an emerging leader in the U.S. cannabis marketplace, is pleased to update current and prospective shareholders as the Company begins to deploy its newly acquired licenses, including the upcoming grand opening of the Company's customer-facing cannabis dispensary brand, "MDRN Tree", which will open its first Los Angeles location sometime this fall.
After the launch of MDRN Tree, the Company plans to deploy another of its new licenses for the establishment of an indoor cultivation facility with the capability of up to 1,200 grow lights, projected to produce 2-3 lbs. of premium exotic cannabis flower per light per harvest across an estimated 5.75 harvests per year, suggesting an upside potential for total production capacity of over 15,000 lbs. of premium exotic cannabis flower per year.
As discussed in its release dated September 23, the Company entered into a material definitive agreement in 2019 with LW Ventures, Inc. ("LW") involving the assignment of NUGS equity to LW shareholders in exchange for up to $8 million in funding and the transfer of four cannabis licenses issued by the City of Los Angeles and the State of California for the Retail Sale, Cultivation, Distribution, and Manufacturing of cannabis products.
However, due to the Covid-19 pandemic, approval of the transfer of licenses was delayed until recently: On August 9, 2021, following prior approval by the State of California, the Company was notified that the City of Los Angeles approved the change of ownership applications resulting in final regulatory approval to transfer all four licenses to NUGS.
"After securing key licensing, we are wasting no time in deploying those assets to launch one of California's top vertical cannabis models," noted Simon Yu, CEO of NUGS. "MDRN Tree will be our factory retail store – our direct interface with our end-market community – where we plan on showcasing the cannabis flower produced at our NUGS Farm North cultivation site. This farm-to-sale model offers the potential to drive simultaneous gains in quality control and profitability, and I look forward to providing further updates as we make strides in this direction.
Other recent developments and major influences in the cannabis industry include:
Karma Water recently announced the launch of Karma CBD Water. This is the first CBD beverage to launch under the Karma wellness and probiotic waters beverage portfolio and has been developed in partnership with Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), a world-leading diversified cannabis and hemp company. Karma CBD Water is crafted with Canopy Growth's Broad Spectrum CBD distillate made from US Hemp Biomass and powered by Karma's patented Push Cap technology, which protects the active cannabinoid constituents until seconds before consumption to ensure optimal potency. The addition of Karma CBD Water combines the wellness benefits of CBD with Karma's leading Push Cap technology to create a first-of-its-kind product for consumers.
Karma Beverages Launches CBD Water - Next Evolution of Premium Infused Waters Portfolio
"Karma Water is a leader in wellness beverages and we see CBD as the next evolution of our premium infused waters portfolio," said CJ Rapp, Karma CEO. "We are thrilled to partner with Canopy Growth to deliver optimum wellness using best-in-class CBD paired with our industry-leading Push Cap technology to bring consumers an innovative new product offering in the CBD-infused beverage space."
Sundial Growers Inc. (NASDAQ: SNDL), a Canadian licensed producer that crafts premium cannabis, recently announced that it has launched Caviar Cones, its newest product innovation, under the award-winning Top Leaf brand. The Forbidden Lemon Caviar Cones will be the first caviar cone product to hit the Canadian market. This launch reinforces Sundial's focused innovation pipeline around premium inhalables in the Canadian cannabis market.
"Top Leaf's brand promise is to deliver top quality inhalable products to consumers in the premium cannabis segment," said Andrew Stordeur, President and Chief Operating Officer at Sundial. "In order to compete in this preferred segment of the cannabis industry, product quality is absolutely vital. Top Leaf's Caviar Cones is the first of many high quality, high THC and flavourful products developed to satisfy even the most experienced cannabis user."
cbdMD, Inc. (NYSE American: YCBD), one of the nation's leading and most highly trusted and recognized cannabidiol (CBD) brands, recently announced it has signed a three-year exclusive strategic partnership agreement with Troon, LLC, whereby Troon will provide promotional and marketing services to cbdMD to help access distribution opportunities to the more than 600 Troon-affiliated facilities.
"cbdMD is a leader in CBD golf marketing, with two-time Masters Champion Bubba Watson and Masters Champ Patrick Reed as our brand ambassadors. Now we are building on this lead by signing a three-year exclusive strategic partnership with Troon, the leader in golf course and private club management, operating over 600 facilities throughout the world. We have designed fully functional countertop and floor displays, featuring Bubba Watson, and can easily be placed in any pro shop or golf course facility. We are looking forward to working with the team at Troon to bring our award-winning products to Troon facilities and their millions of golf enthusiasts," said Martin Sumichrast, Chairman & co-CEO of cbdMD, Inc.
Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, has recently launched Bidiol, the first medical cannabis oil in Uruguay that is wholly produced domestically. The CBD oil is available in 3% and 10% concentrations and comes in 10mL and 30mL bottles, available in pharmacies across the country.
"The launch of Bidiol has been two years in the making and is an integral part of our renewed strategy in Uruguay," said Miguel Martin, Chief Executive Officer of Aurora Cannabis. "We have prioritized key international markets with the potential to meaningfully expand their patient base. Our efforts include working alongside governments and local partners to do what works best in each market. There isn't a one size fits all strategy – our approach must be smart and domestically relevant."
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