The global legal cannabis market is projected to hit $146.4 billion by end of 2025, according to research by Grand View Research. The legal cannabis industry is gaining traction worldwide due to high demand among consumers for recreational and medical products.
Recreational cannabis spending is projected to hit $35 Billion mark, while medical cannabis spending is anticipated to hit $19.1 Billion by 2027, according to Arcview Market Research and BDS Analytics. The North American market is projected to from $9.2 Billion in 2017 to $47.3 Billion by 2027.
At Market Exclusive, we are now tracking the major cannabis players and present a daily roundup of latest developments happening in the cannabis industry.
Cannabis News
Osceola, Wis.-based Nemadji Manufacturing has signed a hemp toll processing deal with CROP Infrastructure (OTC: CRXPF). Under the deal, CROP will provide Nemadji with raw material, in the form of dried hemp-CBD biomass, in exchange for a portion of the finished end oil product. Nemadji offers hemp toll processing contracts and splits for the creation of CBD isolate and distillate end products.
Beleave (OTCQX: BLEVF) has released its interim condensed consolidated financial statements for the second quarter ended September 30, 2018. The company had revenues of $315,617 versus last quarter’s revenues of $208,617 while it reported a net loss of $4.80 million, or $0.01 per share, for the quarter. The company will host its first ever conference call on Friday, November 30, 2018, at 11:00 am EST.
New York City-based Acreage Holdings (PNK: ACRZF), a vertically integrated, multi-state owner of cannabis licenses and assets in U.S. states, reported unaudited financial results of its subsidiary High Street Capital Partners for the fiscal third quarter ended September 30. The company reported third-quarter revenue of $5.5 million, up 160% versus the prior year period, and year-to-date revenue of $10.6 million, up 92% versus the prior year period. Net loss for the quarter was $4.0 million, versus $0.7 million in the prior year period. Net loss year-to-date was $2.1 million, an improvement of 30% versus the prior year period.
GrowGeneration Corp. (OTCQX: GRWG), a specialty retail hydroponic and organic gardening store that sells to both the commercial and home retail cannabis markets, has signed a lease to open a 10,000-square-foot cultivation equipment warehouse operation and product showroom in Tulsa, Oklahoma. The company plans to be open for business January 14, 2019. The Tulsa store will be the 19th for GrowGeneration, based in Denver, Colorado.
Ramat Gan, Israel-based OWC Pharmaceutical Research Corp. (OTCQB: OWCP), a developer of cannabinoid-based therapies targeting a variety of different medical conditions and disorders, announced that the last healthy volunteer in its first ever safety study of cannabis-based topical ointment was recently admitted in trial which is being conducted at Sheba Medical Center, Tel Hashomer, Israel. “We are extremely pleased with the progress on this trial. Recruiting has now been completed and we expect to complete the trial by the end of December,” OWC Pharmaceutical CEO Mordechai Bignitz said in a press statement.
Chemistree Technology (OTCQB: CHMJF) announced that the application requesting receipt of a continuous use permit for a cannabis cultivation, processing and distribution facility has been submitted to the City of Desert Hot Springs, Calif. The company has submitted plans that include two separate cultivation buildings totaling 127,960sqft and an additional 119,960sqft building intended for warehousing and processing facilities. Fully constructed, a facility of this size has the potential to produce approximately 50,000 pounds of cannabis flower per year.
Mountain high Acquisitions (OTCQB: MYHI) announced that its Nevada-based subsidiary One Lab, which provides extraction equipment to the cannabis industry, has completed delivery of a state-of-the-art modular extraction lab to Workforce Labor Solutions, a provider of labor and extraction services to licensed cannabis producers in Washington state. According to the terms of the five-year lease with One Lab, WLS will make payments of $25,000 per month for use of the lab. As a result of the lease agreement, WLS gains access to the extraction equipment required to serve the needs of its clients, while eliminating the burden of sourcing and building a lab.
Liht Cannabis Corp. (OTCQX: LIHTF) has issued a progress report for shareholders on cultivation in North Las Vegas, Nevada. The report states that Director of Operations Kurt Keating and his lead cultivators have successfully transferred hundreds of plants into the first permanent 5,000-sq.-ft facility called Building 1. The building will be in flower cycle by December 1, allowing the company’s first harvest to take place at the end of January. The transfer of plants into second building is underway and on schedule to be completed by December 5, the company said in the report, adding that it “will alternate harvests between buildings five times per year allowing us to produce approximately 1620 pounds of dry flower.”
SOL Global Investments Corp. (OTCQB: SOLCF) reported record financial results for the six-months ended on September 30, 2018. The company said that working capital, excluding the value of deferred share units, totaled $250 million as of September 30, 2018, versus $33 million as of March 31, 2018. Net income per share was $4.74 for the six-months ended September 30, compared to a loss per share of $3.72 for the same period in the prior year.
Toronto-based Flower One Holdings (OTCQB: FLOOF) reported its financial and operating results for the three and nine month periods ended September 30, 2018. The company’s operational activities during the quarter were primarily focused on advancing the conversion of its 455,000-square-foot greenhouse and production facility for cultivating high-quality cannabis at scale. There was no revenue for the three months ended September 30, 2018. For the quarter, the company incurred a loss of $5.58 million. As of September 30, the company had working capital of $7.16 million, which included $24.45 million in cash and cash equivalents and $18.0 million in promissory notes due March 2019.
Harvest One Cannabis (TSXV: HVT) announced the release of its financial and operating results for the three months ended September 30, 2018. The company reported revenues of $1.68 million, an increase of 862% from the same quarter last year and a 227% increase from the previous quarter. As of September 30, 2018, the company maintains a very strong balance sheet with a cash balance of $48.3 million. The cash position means all current expansion plans are fully funded and allows for further acquisitions that support the company’s brand and product development strategy.
Canopy Growth Corp. (NYSE: CGC) and MediPharm Labs, a specialized cannabis extraction business licensed under the Cannabis Act and a subsidiary of MediPharm Labs Corp. (TSXV: LABS) have entered into a supply agreement. Under the 18-month agreement, MediPharm will supply up to 900kg of cannabis extract for sale to Canopy Growth and its subsidiaries. Canopy Growth has committed to purchasing a minimum of 450kg with an option to purchase an additional 450kg.
