Category: Feature Stories

The cannabis market is moving toward oils, extracts, and cannabis-derived products based on oils and extracts. As the cannabis industry comes into the regulatory light of day consumers are consistently showing their preference for oils and associated products over smoked cannabis flower.

MediPharm Labs,Corp. (TSX-V: LABS) is in a prime position to capitalize on and further drive these trends. With Canada leading the global push toward legalization (mostly for medical but also for adult-recreational use in some jurisdictions), the Ontario-based company is taking advantage of the country’s early mover status to lay the groundwork for market penetration not only domestically but internationally. As Canada’s first licensed producer to receive a license for cannabis oil production without first receiving a cultivation license, MediPharm has turned the typical Canadian model – vertically integrated cultivator active in all aspects from seed to sale – on its head with its laser focus on oils and extracts, the highest value sector of the cannabis products market.

Supply and Production Agreements

Without its own capacity to grow cannabis flower, MediPharm has entered into multi-year Cannabis Concentrate Program agreements with a number of licensed producers. The company has arrangements with James E. Wagner Cultivation, Bonify, INDIVA Ltd., and Emerald Health Therapeutics. The arrangements typically call for the partners to supply MediPharm with cannabis (flower or trim) over a one- to three-year term. MediPharm then creates the purified extracts and sends them back to the partner, and there is a financial arrangement that can include a processing fee and revenue sharing from product sales. MediPharm also has a supply agreement for a wholesale purchase of dry cannabis from UP Cannabis/Newstrike.

These are partnerships that allow each company to do what it does best. Down the road, as cannabis-derived products like edibles and beverages become legal under Canada’s regulations, MediPharm intends to take these arrangements a step further by white-labeling cannabis products for customers. MediPharm would offer research, formulation, production, and packaging services to other companies to sell. It’s similar to the pharmaceutical contract-manufacturing model that dominates the industry.

The pharmaceutical comparison is especially apt in this case. As cannabis is regulated, both medically and for adult-use markets, the need for standardized and clean products and processes increases greatly. MediPharm is applying pharmaceutical standards to its production, ensuring that the company’s products and facilities meet the most stringent regulations of any potential market. MediPharm’s facilities are ISO 14644 classified and built to exceed international cGMP standards. Many of the company’s executives, from CEO Pat McCutcheon through recently-appointed COO David Mayers to VP Business Development Keith Strachan and Director of Quality Control and Assurance Dr. Chris Talpas, have deep experience in the pharmaceutical industry and are constantly working to assure MediPharm is meeting the highest standards possible.

International Ambitions

MediPharm holds 80% ownership in MediPharm Labs Australia and construction is currently underway on a facility designed to produce the same pure extracts and oils as the Ontario operation. The company has submitted a manufacturing license application with the proper authorities and anticipates a Spring 2019 opening pending receipt of the license. The Australian medical cannabis market is in its infancy. Prohibition Partners estimates the current market at about $17 million but projects it could be worth upwards of $1 billion by 2024.

MediPharm anticipates using its operation there as mostly an export facility until such time as the domestic market matures and grows to larger levels. Of course, export activities are subject to the proper licenses and regulations being in place. Establishing a foothold there with another world-class facility is a strategic move that will give MediPharm operations and access points around the globe.

Looking Ahead

The graphic above is very instructive. In Canada, the world’s most mature and regulated cannabis market, there is a clear trend toward cannabis oils as flower sales remain relatively static. The same trend can be seen in US states that have legalized, where the proliferation of products offers consumers alternatives to smoking the cannabis flower.

MediPharm’s state-of-the-art facilities can process 100,000 kg of dry cannabis annually, with a fully funded and licensed expansion adding another 150,000 kg of capacity by mid-2019. To give you some perspective, Health Canada reports that all licensed producers in the country held just over 66,000 kg of dried cannabis in stock as of the end of June 2018, the most recent month for which these statistics are available. MediPharm’s capacity is not small, the company operates in a high-margin, high-growth sector of a high-growth industry, and it’s not settling solely on the Canadian domestic market. Stay tuned for further developments.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post MediPharm Labs Perfecting Cannabis Extracts, Plus Exclusive Executive Interview appeared first on CannabisFN.

Plus Products (CSE:PLUS) is one of the top five cannabis-infused edibles companies in the California market – the largest, most competitive in the United States and boasts two of the top ten selling edible products according to BDS Analytics . Plus Products recently went public on the Canadian Securities Exchange on October 30, 2018.

The company introduced its products in 2015, and has scaled its business and operations successfully  while maintaining its vision of making cannabis “safe and approachable”. Plus Products holds a temporary manufacturing license granted in California, and was one of the first to introduce fully compliant products under California’s regulated program that launched in January 2018.

The Plus development team includes chefs, chemists, engineers, food manufacturing experts, machinists, visionaries and creatives, who work collaboratively to pair high-quality extracts with carefully selected ingredients to create regulation-compliant, dosable and delicious products for adult consumers, medicinal and recreational alike. The result is consistent, low calorie but great tasting edibles. Its executive team has a proven record of savvy forward thinking and while there are plans for eventual expansion into additional markets, it remains laser focused on captivating the California market first.

Seizing on Market Shifts

Cannabis extract-based products are the fastest growing segment of the regulated cannabis industry, as customers (especially those new to cannabis) move away from smoking and explore new delivery options. Plus is well positioned to capitalize on this shift. Just like Colorado and Washington, the legalization of adult recreational use in California was accompanied by a sharp increase in the sale of cannabis-infused edibles, making up 18% of total marijuana-related sales in February alone.

California legalized adult recreational use on January 1, 2018 and by April, Plus had already realized $1.4 million in retail sales [in April alone] according to BDS Analytics. Later that same month, the company announced it had secured series B financing sufficient to allow it to expand its operations to meet the growing demand for its branded product. As a result of its fundraising (including its IPO, concluded in October 2018), Plus has the funding needed to build a full-scale, dedicated cannabis food manufacturing facility, enabling an estimated $150M in annual production, with the potential to expand to $450M.

The market is evolving rapidly, with massive growth in branded products, and Plus has proven itself a leader in the field. Its gummies are packaged in child-proof, resealable tins with distinctive labeling, in six current offerings, including two seasonal, limited edition flavours, each labelled Indica, Sativa, Hybrid, or CBD, and sold 20 pieces per tin.

Its Restore gummies are Indica, 9:1 THC to CBD, blackberry & lemon flavored, designed for customers who want to unwind. Its Uplift product is a sour watermelon-flavored Sativa gummy suited for daytime use. Create gummies are a sour blueberry Hybrid blend designed to boost mood and stimulate creativity. CBD Relief is pineapple & coconut flavored and designed to provide pain relief. Additionally, there are two seasonal offerings for 2018; Rainbow Sorbet sold during the summer – an anytime treat with a portion of the proceeds going to support a suicide prevention hotline for LGBT youth – and Rose & Vanilla, available throughout the winter and designed to put users in a loving mood.

Keeping Up With Growing Demand

Through its distribution partner, Plus Products currently sells to over 200 licensed dispensaries and delivery service customers, and an expanded product line is currently in the works. Recently-acquired candy manufacturing and packaging equipment will allow the company to boost its capacity from $7m to $50m annually, and an investment in testing equipment and key staff ensures consistency while bolstering research and development. The company believes its current manufacturing facilities are adequate in the short term but has been executing on its plan to expand as demand for its products grows.

For more information, please visit the company’s website: https://www.plusproducts.com/

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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Abattis Bioceuticals Corp. (CSE: ATT) (OTC: ATTBF) latest innovation is “Comfort”, a nutraceutical designed to alleviate chronic pain and inflammation – the first in line of a dozen new products the company expects to launch over 36 months.

According to a recent Institute of Medicine Report: Relieving Pain in America: A Blueprint for Transforming Prevention, Care, Education, and Research, stated “acute or chronic pain is a significant public health problem that costs society at least $560-$635 billion annually in North America alone. This includes the total incremental cost of healthcare in North America due to pain ranging between $261 to $300 billion and $297-$336 billion due to lost productivity (based on days of work missed, hours of work lost, and lower wages). Additionally, the number of deaths associated with nonsteroidal anti-inflammatory drugs and opioids commonly used to treat those with chronic pain and inflammation has risen steadily.”

Overall, much more needs to be done to meet the challenges of pain and increase the widespread awareness of it. Abattis Bioceuticals took this goal to heart and set to work, analyzing not only the symptoms, but the physiology behind acute and chronic pain. The result is Comfort.

Activating Cannabinoid Receptors

According to Dr. Brazos Minshew, MSc, ND and President of the Abattis Medical Advisory Board, chronic pain occurs when internal systems within the body break down and fail to produce important chemicals necessary for regulating pain. This is because when our bodies experience severe, sustained pain, the ability to produce the endocannabinoids and endorphins which reduce our perception of pain slows and eventually stops altogether, resulting in the condition commonly referred to as chronic pain.

One of the body’s key pain management systems works through the production of bioactive lipids known as endocannabinoids which bind to and activate the CB-1 and CB-2, our body’s main cannabinoid receptors. When activated, the CB-1 and CB-2 modulate neural activity, helping our bodies cope with pain without becoming overwhelmed.

Comfort, Abattis’ proprietary nutraceutical – a pharmaceutical-grade, standardized nutrient – naturally stimulates the endocannabinoid system and the production of endorphins using ingredients such as Alpinia Galangal, a rare phytocannabinoid from the Ginger family, typically found in Indonesia and Malaysia, as well as Capsicum Annuum, which derives from the Pepper family, both of which have long been regarded for their medicinal properties. Alpinia Galangal  in particular, has been historically used to treat a range of ailments including gastrointestinal distress, and more recently, it’s been used to improve mental alertness, as an ingredient in cancer treatments, to reduce pain and inflammation, in addition to improving mobility. The company has secured a consistent supply of the ingredients on which Comfort is based.

Abattis plans to launch Comfort on Cyber Monday (November 26th, 2018) through its wholly-owned natural product management subsidiary – Vergence Naturals. Vergence is already regarded as a leader in the supply, sourcing, and promotion of naturally-inspired health and beauty brands for the conventional and cannabinoid-enhanced markets. The marketing campaign for Comfort will draw public attention to the benefits of phytocannabinoids, especially in pain management.

Arriving in just over a month after the full legalization of cannabis across the country, this will be the first Cyber Monday in which Canadians will be able to legally purchase products containing THC and/or CBD online, so it’s likely this Cyber Monday will once again set records.

Beyond Comfort

The release of Comfort will round out a busy year for Abattis Bioceuticals, which has advanced an ambitious business plan focused well beyond flower production and cultivation to the in-house research, development, marketing, and distribution of high-margin, high-growth cannabis-derived products.

Along with the construction of a 26,000 square foot production & extraction facility in British Columbia for its wholly-owned subsidiary, Gabriola Green Farms. Abattis has also partnered with XLABS Therapeutics to open a new 10,000 square foot cannabis laboratory in Belleville, Ontario (with an additional 310,000 square feet available for future expansion) to service the growing cannabis sector. The new production facility will allow Abattis to control its own raw material production. This is important from a financial perspective, product development perspective and quality control standpoint. The lab will give the company a strong presence on Canada’s East Coast and allow it to pursue medicinal cannabis research while offering lab services to third-parties.

Abattis is working with Northern Vine Labs to carry out R&D and analytical testing on a hemp-infused, cannabinoid-rich, THC-free craft beer in conjunction with Faculty Brewing Company. The micro-brewery is developing a variety of cannabis-based beverages in partnership with other companies. It has already developed a prototype CBD-infused sunscreen and continues work on the development of nano-emulsified and liposomal platforms for the delivery of a cannabinoid-rich hemp oil in collaboration with the University of British Columbia.

The legalization of cannabis in Canada is expected to see consumers moving away from smoking flower and toward vaping, sublinguals, creams, and oils – as other regions have experienced following legalization. Abattis is well-placed to provide a variety of alternatives, through its wholly-owned subsidiary – Green Tree Therapeutics.

The company has introduced three industry-benchmarked, Abattis branded vaporizers, and as a result will be able to load the line with its own cannabinoid formulations and retail them directly through its diverse distribution channels. Abattis vaporizers feature a 510-thread battery that can be used with any third-party cartridge.

Many of these product areas are still in their infancy, but with legalization here, cannabis research will become more efficient and cost-effective, paving the way for even greater innovation.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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Village Farms International Inc. (TSXV: VFF) (OTCQX: VFFIF) is leveraging its 30 years of experience as a vertically integrated greenhouse grower for the rapidly emerging global cannabis opportunity. The company is initially focused in Canada through its 50% ownership of British Columbia-based joint venture Pure Sunfarms Corp., which is rapidly expanding cannabis production and on track to be one of the single largest cannabis growing operations in the world. Expansion into cannabis production is expected to significantly transform the earnings power of Village Farms.

CFN Media visited with Village Farms CEO Michael DeGiglio onsite in late summer, 2018.

Pure Sunfarms has completed conversion of and is growing cannabis in the first half of its 1.1 million square foot state-of-the-art greenhouse in Delta, British Columbia for supply to the legal adult-use market in Canada. Conversion of the remaining 550,000 square feet continues to progress on plan and remains on schedule for completion before the end of this year. In addition, Pure Sunfarms has the potential to expand production in Canada to 4.8 million square feet through options on two additional greenhouses currently owned by Village Farms that are immediately adjacent to the 1.1 million square foot facility.

The technologically-advanced Pure Sunfarms greenhouse design is based on decades of large-scale, low-cost agricultural production experience and extensive cannabis expertise, resulting in a state-of-the-art facility with 17 grow rooms optimized for year-round harvesting (more than 85 harvests annually) and an automated processing line encompassing harvesting, trimming, drying and packaging.

Village Farms reports that Pure Sunfarms’ production ramp up is exceeding expectations. There are currently multiple strains in production, and the company is selling product to other Licensed Producers for the newly-christened legal adult-use market, as it advances toward potential distribution agreements with provincial government buyers. Importantly, Pure Sunfarms is well on its way to attaining its stated goal of achieving a production cost below $1/gram and becoming the low-cost producer in Canada.

Beyond Canada, independent of the Pure Sunfarms joint venture, Village Farms owns and operates 5.7 million square feet of greenhouse facilities (including one of the most technologically advanced greenhouses in the world) in West Texas, one of the best growing environments in North America. With unmatched operational capabilities in large-scale, low-cost growing, Village Farms is uniquely positioned for potential future opportunities in industrial hemp and/or cannabis, should those products be legalized under the relevant jurisdictions. Village Farms’ CEO, Michael DeGiglio, believes the additional learnings gained through the conversion and production ramp at the Pure Sunfarms facility in Canada will be of tremendous value as the company pursues U.S. and other international opportunities.

Disclaimer 

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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With California’s adult-use legalization fresh in investors’ minds, and full legalization happening in Canada, much of the focus has been around the retail potential of cannabis and related products. That is quite a change from even a couple of years ago, when the disruptive potential of medical marijuana was the biggest topic. In the intervening time, nothing has diminished the potential of medical cannabis but the headlines have moved to beverages and retail distribution. It may be worth another look to see what companies are executing in the medical arena.

One such player is Empower Clinics (CSE: EPW). The company currently owns physician-staffed clinics in Oregon, Washington, and Illinois, providing expert medical care to more than 25,000 registered patients across its network. Empower is capitalizing on a vacuum in the medical industry, where patients are increasingly seeking less harmful alternatives to currently prescribed treatments like opioids while traditionally-trained doctors lack the necessary training or comfort level to prescribe medical cannabis. Empower Clinics offer the type of care and expertise that is often lacking for patients interested in cannabis, many of whom turn to their local budtenders or the Internet for treatment advice due to a lack of valid medical opinions.

Empower’s Medical Clinic Model

Specialized clinics are increasingly popular throughout North America. Pain clinics, sleep clinics, cancer clinics… the biggest and most common indications spur the development of clinics to specifically address those conditions. Empower is turning that approach sideways a bit, offering specialized medical cannabis clinics that can help patients with a variety of indications rather than focusing on one condition. But the effect is similar. Just as someone with chronic pain may turn to a specialist after striking out with the family physician, a patient interested in cannabis as an alternative therapy may turn to doctors with expertise in the field rather than relying on the family physician who may be uncomfortable with or simply unaware of the therapeutic uses for cannabis.

A study of 926 Washington cancer patients shows that 74% wanted information on cannabis from their cancer providers, but less than 15% received information from their physician or nurse. Most received information from friends, family, websites, articles, or other cancer patients. Statistics like this justify Empower’s approach to offering expert medical cannabis advice from physicians.

The model has been proven in Oregon, where Empower Clinics has issued more than 30% of the state’s medical cannabis cards. Seeing the success there, Empower expanded into Washington where it has 9 clinics. Empower recently opened a clinic in downtown Chicago, and Illinois is a very interesting market. In the first three years of the state’s medical marijuana program, through September 2017, the Department of Public Health approved 24,000 patients. In the year since, that number has nearly doubled to 44,000 patients with no sign of slowing.

In late August, Illinois Governor Bruce Rauner signed into law a bill that made it easier to get a medical cannabis card in a number of ways. The headliner was the fact that the law made it easier to prescribe cannabis as an alternative to opioids for the treatment of pain. Everybody is aware of the epidemic of opioid abuse, and Illinois has chosen to directly address the problem by encouraging the use of cannabis as a substitute. Empower plans to explore further expansion in the state.

Parallel Product Development and Distribution

Medical cannabis users often, for understandable reasons related to health, would prefer to not smoke the flower if at all possible. Alternative delivery methods, like tinctures or topical creams, are gaining market share as the science of cannabinoid delivery catches up following years of research prohibition. Empower recognizes the demand for these types of products and has developed its own line of non-THC, hemp-derived CBD products. The company’s Sollievo line of CBD products is expected to launch nationally soon, as the CBD products are legal throughout the United States.

Empower is also developing similar cannabinoid-based products for a variety of the most common indications, like sleep, pain, stress and digestion. The company plans to leverage its own client base while also distributing outside of its own network of clinics, providing the potential for a significantly wider revenue stream.

In the meantime, Empower signed a distribution agreement with Integrated Cannabis Company to distribute ICC’s CBD-infused X-SPRAYS™ line of products to Empower patients. The sprays are intended to support sleep, libido, energy and recovery. Deals like this provide Empower another source of potential revenue while expanding the treatments available to its ever expanding roster of patients.

Looking Ahead

Empower Clinics is undertaking a two-pronged strategy to address the shortage of trusted expertise in the medical cannabis market. Expansion of its proven clinic model, along with development and distribution of specialized cannabis-based treatments, is ramping up and should continue over the coming quarters. As the level of scientific cannabis research explodes and the political environment surrounding the plant softens, Empower’s position as an early mover in key markets could prove beneficial for the company as it seeks to stay ahead of the medical cannabis curve.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post Who is Focused on the Huge Opportunity in Medical Cannabis? appeared first on CannabisFN.

Of the 120 currently licensed producers under the ACMPR program in Canada, only two are certified organic. Whistler Medical Marijuana Corporation has been growing certified organic cannabis indoors since 2014, and The Green Organic Dutchman is currently building out its facilities and planning to launch a 200 patient Beta program in January 2019 for its initial line of organic cannabis products. Hill + Knowlton Strategies conducted a poll in late 2017 that showed 57% of potential medical cannabis users, and 47% of potential adult-use consumers, thought it was important that the products they buy are grown organically. There is clearly room in the market for organic cannabis but it is very difficult to grow the plant organically, especially at scale.

Rubicon Organics™, is going public tomorrow, 10/10, on the Canadian Securities Exchange under the ticker symbol “ROMJ.” Rubicon is headed by CEO Jesse McConnell, one of the original founders of Whistler Medical Marijuana Corp. The company is in the final stage of the ACMPR application process prior to the award of a cultivation license, for a 125,000 square foot retrofitted greenhouse facility in Delta, BC. With operations, facilities, and brands currently in place in California and Washington State, Rubicon Organics represents an entirely unique international cannabis opportunity.

Low Cost, Greenhouse Grown, Organic Cannabis

Jesse McConnell has 20 years’ experience in the cannabis industry and spent the last several perfecting the organic cultivation of cannabis in greenhouses alongside Rubicon’s Chief Science Officer, who wrote the Certified Organic Cannabis Standard in Canada. Together they developed a proprietary system that allows the company to grow certified organic cannabis at a cost of less than $0.50/gram. Keeping production costs low is a must for producers as the retail price of cannabis is expected to eventually commoditize once supply meets and exceeds demand.

Rubicon’s cash cost/gram would likely keep the company competitive as general market prices go down, but the fact that consumers pay premium prices for organic cannabis indicates the company should be able to generate higher margins than other non-organic producers. According to a recent report by CannStandard, a leading Canadian cannabis research firm, organic dried cannabis flower prices average about 24% higher than non-organic flower. Pricing fluctuates with various market influences like location and supply/demand variables, and the cannabis industry is in its infancy, but other industries have clearly shown a significant pricing premium for organic products over a much longer period. For organic foods, a 20% premium is generally the standard while premiums for some products like milk and eggs can reach up to 80%.

International Operations

Rubicon is currently permeating the influential California market with its 1964 Supply Co.™ brand. The brand exudes the hip and relaxed Southern California vibe, and Rubicon intends to introduce it in Canada next year as it ramps up operations. Combining BC-grown organic cannabis with an established California brand and Euro GMP-certified production facilities, the company is positioning to create an international company with reach far beyond North America.

Rubicon has a LOI in place with a German company to provide organic cannabis products to that country’s medical market. Estimated at $12 billion annually, the emerging German market has the advantage of being supported by federal insurance programs. Meanwhile, prices are significantly higher there than in Canada due to a very limited supply. Arrangements like these are definitely part of Rubicon’s strategy to grow the brand throughout the world’s legal markets.

Going Public

The Green Organic Dutchman, already holding its cultivation license but still in the process of building out and expanding facilities, went public earlier this year and is currently valued at about $1.6 billion. The two companies are roughly comparable in that they are both certified organic and anticipate similar initial levels of production. Rubicon also anticipates receipt of its ACMPR cultivation license in the near term allowing for production to begin immediately. Receipt of such a license has acted as a valuation catalyst for many publicly-traded producers in the past.

In short, it’s an exciting time for Rubicon Organics. Going public tomorrow, anticipated licenses, expanding facilities, existing and growing revenues in the United States, Germany… it all adds up to a story that deserves following over the coming quarters.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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As the United States lurches toward potential legalization of cannabis, companies looking for a place in the market are focused on the most lucrative legal markets in hopes of creating a business model that can eventually be replicated across the country. California is clearly the prized market, and that state’s legalization has been a bit of a mess as the state navigates a complicated transition from a mix of black market and legal medical operations to an industry that is fully regulated throughout the state.

One company that is taking advantage of the new California market is Chemesis International Inc. (CSE: CSI). Through a series of acquisitions, Chemesis now is positioned in the state with fully licensed facilities and brands focused on the highest value segments of the market. Chemesis represents a compelling investment opportunity in the burgeoning legal cannabis industry.

California Operations

Chemesis’ 80%-owned subsidiary SAP Global operates a fully licensed production facility in Cathedral City, California. At full production, the factory can put out 200 pounds of clean, consistent cannabis oil daily. On top of the interest in the production facility, Chemesis fully owns the California Sap line of retail cannabis-based products. The product line includes award-winning CO2 extracts, the innovative Gramqul packaging system for cannabis oil, and a line of vaporizers.  

In addition to its own line of products, SAP Global offers contract manufacturing of cannabis-derived products and white label production capabilities. This focus on extracts and associated products is central to Chemesis’ strategy in California. Industry-wide, consumer preferences are moving away from smoked flower and toward oils, concentrates, and alternative delivery methods that rely on extracts. On top of this trend, dried flower prices tend to drop significantly as legal markets mature, trimming margins for cultivators as the product becomes commoditized. To that end, Chemesis has chosen for the time being to not pursue cultivation assets in the state.

To complement its licensed production assets, Chemesis has acquired 100% of Desert Zen Fulfillment, a fully licensed cannabis manufacturing, packaging, and distribution operation based as well in Cathedral City, California. Desert Zen currently distributes a wide variety of products throughout the state. Its proximity to the SAP Global operations provides Chemesis a fully integrated operation in the Coachella Valley, one of the leading California regions in terms of creating a state-friendly regulatory environment for legal cannabis companies.

Other Initiatives

With an eye on lucrative international markets, Chemesis recently announced the opening of a wholly owned subsidiary called Chemesis Latin America. Reflective of Chemesis’ long term international growth strategy, the name of the subsidiary says it all in terms of market focus. Colombia, Peru, Chile, and Argentina all have recently passed medical cannabis laws, and Uruguay is the first country to decriminalize all drugs. Recognizing the potential of the market, Chemesis is actively seeking accretive opportunities there.

Chemesis is also looking to capitalize on another major trend in the cannabis industry. With investments pouring in to the emerging cannabis beverage sector, the company announced its intentions to develop and distribute cannabis beverages for both wholesale and retail markets. Leveraging the company’s production and distribution capabilities in Southern California, Chemesis anticipates launching initial products there in Q1 2019.  

Looking Ahead

Chemesis is anticipating revenues in the neighborhood of $27 million in the first full year of its California operations, producing a projected net income of about $8 million. Should the company execute on these projections, they would represent impressive financial accomplishments in an industry built, to this point, largely on potential. Keep an eye out for further developments as Chemesis executes on its comprehensive strategy, both in the US and internationally.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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Yes, cannabis is illegal on a federal level in the United States. Still. There have been mixed messages from the current administration regarding how committed the federal government is to enforcing its prohibition of cannabis, and each time President Trump or Attorney General Sessions makes a declaration of some sort the whole industry lurches forward with hope or backward in fear. Like a stock’s trend line, however, with its ups and downs smoothing into a bigger up or down picture, the general outlook for cannabis in the US is a steady march toward legalization. Recent developments only enforce that view.

What types of companies would stand to benefit the most from a relaxation of the federal prohibition? A rising tide would likely lift most all of the boats in the cannabis industry, but some companies may be in a better position to profit than others. Rubicon Organics™, with current operations in both Canada and the US along with plans to go public in the very near term, is one company that could stand to benefit tremendously should the US continue down the path toward cannabis legalization.

Please click here to see Rubicon’s corporate presentation and get a going public alert.

Recent News

In a development that greatly impacted trading in the cannabis market, Tilray announced that it received permission from the US government to import cannabinoid capsules from Canada for a clinical trial run by researchers at the University of California San Diego. This is a historic breakthrough, as the federal government has previously limited cannabis available for research to its own small supply of cannabis, grown in a single facility in Mississippi and offering questionable value for researchers. Were the federal government to open up the supply lines for scientific research, the industry might be able to advance cannabis as medicine much more quickly and efficiently after years of being handicapped by restrictive regulations.

Canopy Growth CEO Bruce Linton, in an interview with CNN, waxed optimistic about the near term potential for the federal government, even under Republican rule, to recognize the rights of individual states to make cannabis legal. Mr. Linton likely has no particular insight into the current administration’s policy decisions, but he is generally reading the tea leaves of a trend that is hard to ignore.

The statistics keep building: 9 states and the District of Columbia have legalized adult-use cannabis; 22 other states plus the territories of Guam and Puerto Rico have legalized medical cannabis; another 15 states allow hemp-derived CBD products; 13 states (outside of the 9 adult-use states) have decriminalized possession of marijuana. Voters in Missouri and Utah will decide on medical legalization this year, and those in Michigan and North Dakota will vote on adult-use legalization.

International Operations Set the Stage

Canada is the pioneer of the cannabis industry, providing companies a regulated environment for the legal development and sale of cannabis and related products. Canadian companies are perfecting their game domestically while making inroads in Europe and South America, where legalization is taking hold but production lags.

Rubicon Organics is taking a slightly different approach. The company is in the very late stages of its ACMPR application and is on the verge of becoming Canada’s third certified organic producer (there are currently 118 licensed producers). Rather than wait for the Canadian license, the company has established operations in both California and Washington to get a head start on branding and sales in the United States. The company intends to marry its US-based brands with its pending Canadian organic production to create an international powerhouse. By leveraging the trend-setting Southern California vibe of its 1964 Supply Co.™ brand with the premium production of certified organic cannabis in Canada, the company is uniquely positioned to be an early mover in the wider, and growing, US market.

If one were to choose a location to start an iconic cannabis brand, the most logical place would likely be Los Angeles. It’s a trend-setting market for the entertainment, media, and consumer goods markets. Companies have been capitalizing on the SoCal lifestyle for decades, and the approach makes even more sense in relation to cannabis. California was the first state to legalize medical cannabis back in 1996, and cannabis culture is identified with the state in many consumers’ minds.

So Rubicon is saturating the LA market with its products, intending to create a deep and sustainable brand that it can parlay into other markets as they open up. It’s a solid brand strategy for addressing the huge potential US market and may set the company up for success in other legal markets as well. When it comes to naturally identifiable cannabis ‘brands’ in the minds of consumers worldwide, it could be argued that Jamaica, British Columbia, and California lead the way. With Rubicon set to capitalize on two of those three, while adding in the organic component, the company appears to be smartly preparing for the potential lifting of the US prohibition of cannabis. Keep an eye out as the policy situation continues to play out, and Rubicon hits the public markets in the near term.

Please click here to see Rubicon’s corporate presentation and get a going public alert.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post The Cracks are Showing in the U.S.’ Cannabis Facade appeared first on CannabisFN.

The cannabis industry is heating up with the legalization of medical and recreational cannabis across Canada and a growing number of states. While cannabis flower has been the early focus, cannabinoid-infused edibles and concentrates represent the fastest growing segments of the $100+ billion industry.

Absorption is one of the most important differentiators for both medical and recreational cannabis products. Medical cannabis patients want to receive a standardized dose and consistent effect each time, while recreational consumers want to experience a high as quickly as possible.

Lexaria Biosciences Inc. (OTCQX: LXRP) (CSE: LXX) has developed an innovative drug delivery platform that increases intestinal absorption rates, rapidly delivers active ingredients to the bloodstream, and provides taste-masking benefits.

“We are focused on making ingestible or edible bioactive substances taste better, smell better, act faster and enhance potency,” says Lexaria President John Docherty, a trained pharmacologist and toxicologist, who is also the former president and chief operation officer of Helix BioPharma Corp.

Internal R&D vs. Outsourcing

Many cannabis companies plan to launch cannabis-infused products over the coming year. In fact, the alcohol industry has been so concerned about the potential for these products that giants like Constellation Brands Inc. (NYSE: STZ) and Molson Coors Brewing Co. (NYSE: TAP) have made significant investments.

With the race to develop alternative cannabis products, many cannabis companies have a choice between developing internal delivery platforms or partnering with experts to develop top-performing products. Internal develop involves a high cost and potentially lengthy delays but provides flexibility, while partnerships can provide speed to market and a known solution at a predetermined cost.

Lexaria Biosciences’ innovative drug delivery platform enables cannabis absorption in just 10 to 20 minutes compared to the 60 to 120 minutes for many cannabis edibles on the shelves today. The technology also represents an alternative to sugars and chemicals that are often used to mask flavors. Lexaria was one of the first to offer these solutions to the cannabis industry.

The company has already licensed its products to numerous cannabis companies. For example, the company’s customers include the maker of the 1906 brand of cannabis-infused chocolates in Colorado, a Canadian-based developer of cannabis wines and beers, and a new Canadian company focused on cannabis-infused edibles.

Clinically Proven Advantages

Lexaria’s DehydraTECH platform has shown tremendous promise in several different clinical studies. By combining cannabinoids with fatty acid oil, applying food carrier particles, and performing a dehydration procedure, the technology masks the earthy taste of cannabis and delivers it more effectively.

Earlier this year, the company released the results of a randomized, placebo-controlled, double-blind European human clinical study that evaluated TurboCBD—a proprietary DehydraTECH  powered CBD hemp oil capsule—showing 317% greater absorption at the 30 minute mark and higher blood concentration. Lexaria is one of very few companies anywhere in the world to have completed human clinical studies related to cannabinoids and have proven that its technology is effective.

The company conducted similar studies of DehyraTECH’s potential with other active ingredients, such as nicotine. In an in-vivo animal study, researchers delivered DehydraTECH powered nicotine in an edible form into blood plasma in just minutes after dosing with 90.2 percent greater delivery than control after just 10 minutes. Lexaria is one of the only companies in the world with technology proven effective in both the nicotine and cannabis industries.

Looking Ahead

Lexaria’s growing portfolio of more than 50 patents has expanded its drug delivery platform well beyond cannabis, including vitamins, NSAIDs, nicotine, and other molecules. Management plans to develop the patent portfolio into 150 to 200 patent applications around the world within two years.

Investors interested in capitalizing on the burgeoning cannabis industry along with additional potential across other multi-billion dollar markets may want to take a closer look at the company ahead of further partnerships and announcements.

For more information, visit the company’s website or download their investor presentation.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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Oregon-based cannabis extraction expert, Halo Labs is actively preparing to go public on the NEO exchange in Canada under the ticker symbol “HALO”. The commencement of trading is scheduled to take place tomorrow on Wednesday October 3rd, 2018 and it could potentially be the start of a significant increase in Halo’s value. The company last financed privately at <1x 2019E revenues of US$50-60MM while most US public peers are trading at 4-5x 2019E revenues. Halo is currently expanding into the burgeoning market of California expected to be online this month while laying the groundwork for entry into other international markets.

Kiran Sidhu, CEO and Director of Halo says, ‘we are thrilled to see Halo evolve and graduate to a publicly-listed company so that new and existing investors can capitalise on opportunities that lay ahead.’

Halo demonstrates how the cannabis industry is maturing and evolving, with trends pointing to an increase of demand for cannabis concentrates (oils and extracts) and decline of demand for smokable flower. With increasing cannabis extract alternatives such as sublingual oils, topical creams and functional beverages, Halo prepares for aggressive growth strategies in the explosive cannabis extracts industry. The company utilizes the full range of extraction technologies to create extracts and concentrates for a variety of specific product categories including: shatter, dabs, cartridges to oils for edibles, THC-A and CBD crystals.

Halo plans to maintain strong position and move forward in its quest to become a leader in US Cannabis extraction, developing and manufacturing leading oil and concentrates.

ABOUT HALO

Halo Labs started in Oregon in April 2016, a few months after adult-use of cannabis became effectively legal in the United States.

Currently the company ships over 100,000 grams of cannabis concentrate each month and has captured more than 20% of the wholesale concentrates market in the state. Revenues from Oregon have translated into $10.3 million in NET revenue for the year 2017, a number which is certainly an outlier in the nascent legal markets.

Halo also has its own product offering which accounts for approximately 65% of revenue. The balance of revenue comes from product manufactured for other companies on a White Label basis.

Halo anticipates the White Label offering of the business to grow quickly and anticipates as much as 50% of revenues from the division in the next year or so.

What’s more, the company opened a processing facility near the Las Vegas airport, complete with supply agreements and a binding LOI to acquire production and cultivation licenses.

Halo has strategically partnered with a leading Canadian producer to establish a manufacturing facility on site. This potentially may serve as a platform for global initiatives should the companies take advantage of Canada’s ability to import and export cannabis products.

In California, Halo’s facility in Cathedral City is nearing its projected October launch as it awaits final state permits. Together, the two new operations have the potential to generate upwards of $130 million in annual revenue, assuming full production capacity and current market prices.

ABOUT HALO’s MANAGEMENT TEAM

Kiran Sidhu founded Transact Network and sold it to Bancorp in 2011, led the IPO of On-Stage Entertainment, and came out of a background in consulting with PwC and mergers and acquisitions with Merrill Lynch Capital Markets. Sidhu is the Audit Committee Chair for Namaste, Canada’s first licensed producer to receive a sales license. Public company, capital markets, and cannabis industry all provide the background for the captain of Halo’s ship.

Chief Marketing Officer Andreas Met combines Walmart marketing experience with sales and marketing of cannabis extracts for Golden Leaf. The CFO, Philip van den Berg, was the CFO for Namaste as well as for Golden Leaf, leading that company’s $20 million+ Canadian reverse takeover transaction. Sales executives with Halo come out of consumer-packaged goods giants like PepsiCo, Johnson & Johnson, and Anheuser-Busch InBev. The company’s chairman, G. Scott Patterson, is the former chair of the Venture stock exchange and the former vice chair of the Toronto Stock Exchange.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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Market Trends  

Women, overall, are responsible for 70-80% of consumer spending and the burgeoning cannabis market is no different than any other in this respect. Studies are showing that female consumers are embracing cannabis from both a health & wellness and recreational standpoint, and they want cannabis products that are discreet, easy to consume, and don’t affect their ability to function in their day-to-day activities.  

Now two key specialty players in the women’s cannabis sector have joined forces to develop products focused on these particular women’s buying trends.  

A Perfect Union

48North Cannabis Corp (TSX-V: NRTH) has announced that it has entered into a licensing agreement with Mother & Clone, Inc. (“Mother & Clone“), a Colorado-based company producing proprietary cannabis sublingual nanosprays (a form of measured microdosing).

Canadian production and sale of Mother & Clone products are expected to commence after 48North receives its Health Canada license amendment permitting the sale of cannabis oil since the Company already holds a supplemental license for the extraction and production of cannabis oil.

Per the licensing agreement, 48North will be the exclusive Canadian licensed producer of all present and future Mother & Clone products for domestic Canadian consumption and global export. Mother & Clone will earn a ten percent licensing fee on the gross profit on all Canadian and international sales. The agreement provides for production from the unique cultivars grown at 48North’s state-of-the-art, closed-box, 40,000-square-foot DelShen facility, using existing the research and development of Mother & Clone’s proprietary, strain-specific nano-particle delivery system.

A Strategic Alliance for a Worldwide Niche Market

“It is fitting that our first official partnership and portfolio addition is with Mother & Clone, a woman-led and focused cannabis company with a unique product offering,” said Alison Gordon, Chief Executive Officer at 48North. “This deal includes product distribution, brand familiarity and intellectual property ownership over all Mother & Clone products and will give us a competitive lead in bringing next-generation wellness products to the Canadian and international markets.”

“Partnering with 48North aligns with Mother & Clone’s brand positioning, corporate values and shared focus on women’s lifestyle and wellness through cannabis in the adult recreational space,” said Leslie Siu, Chief Executive Office of Mother & Clone.

Because Mother & Clone‘s strain-specific sublingual products are uniquely formulated for rapid absorption under the tongue, with effects that are felt within minutes and last about an hour, these worry-free Ph.D. formulated cannabis products are likely to appeal to cannabis-minded women.   

Growing Trends in Female Cannabis Consumption

According to a recent survey from BDS Analytics, menstruation, menopause, and sex were listed as the top reasons for female cannabis consumption. As part of its Cannabis Wellness Trends Series, BDS Analytics recently conducted a consumer insights survey of 1,281 women in four states where cannabis sales are legal, California, Colorado, Oregon and Washington.  

The study revealed that, at least in the women’s market, cannabis consumption was common across all ages. Younger women are increasingly turning to marijuana as a natural alternative to manage mood swings and premenstrual pain, and older women, transitioning through menopause, choosing cannabis products to supplement or replace estrogen therapy and improve their sleep. Additionally, 25% of women consumers reported reduced use of prescription medications, and 33% reported reduced use of over-the-counter medications since starting a cannabis regimen. Women are clearly taking a bigger interest in cannabis-based products in areas where recreational use is approved.

Looking Ahead

With the legalization of recreational cannabis in Canada, the health and wellness market is garnering a greater interest in incorporating more cannabis-based products for domestic use in Canada, as well as future opportunities for exporting to markets around the world. Investors are taking note of these kinds of market trends and paying special attention to public companies that are taking a leading edge in the cannabis health and wellness sector. 48North Cannabis Corp (TSX-V: NRTH), with its unique niche market, is one such company to watch.

For more information, visit the company’s website at www.48nrth.com.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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MediPharm Labs is a unique, oils-and-extracts-only Licensed Producer based in Ontario. The company is going public in the very near future, expecting that trading will commence on the TSX Venture exchange under the ticker symbol ‘LABS’ on October 3, 2018. CFN Media was able to catch up with MediPharm CEO Pat McCutcheon at Kahner Global’s Cannabis Private Investment Summit (Cannabrunch) in New York on September 13. Mr. McCutcheon discusses the opportunity in front of MediPharm, the reasons for the company’s focus on oils and extracts, the importance of the company going public, and more in the exclusive interview.

MediPharm Inks Extracts Deals

In advance of going public, MediPharm has been busy cutting deals with other Licensed Producers to supply those customers with oils and concentrates. The agreements generally stipulate that the LPs will provide MediPharm with dried cannabis that MediPharm will then use to derive pure, pharmaceutical grade oils. Depending on the agreement, the oils are either sold back to the original LP or distributed through other means with some sort of revenue sharing between the companies.

Recent deals with Bonify, James E. Wagner Cultivation, INDIVA, and Up Cannabis prove the company’s approach to the market as the first LP to receive an oil production license without first receiving a cannabis cultivation license. MediPharm is betting that its expertise in oil extraction, pure concentrates, and resulting cannabis product development will provide value to LPs that would rather focus on what they do best, which is to grow cannabis.

Extracts and concentrates form the basis for nearly all cannabis product development, from the existing shatter and oils that are quickly taking market share from smoked flower, to pharmaceutical and nutraceutical products currently under development industry wide. MediPharm intends to establish itself as the leading Canadian cannabis oil producer, and the spate of recent deals would seem to indicate some level of success in that regard. Keep on the lookout for more announcements from the company, and of course for the stock to go live on the Venture exchange next week.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post MediPharm Labs Going Public Soon: Exclusive CEO Interview appeared first on CannabisFN.

Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) has been building on its unique cannabis customer experience and top quality cannabis product offerings since they first opened their doors in 2016. While all the focus has been on the new Planet 13 Superstore on track for a November 1, 2018 opening, the original Medizin/Planet 13 joint medical and recreational dispensary has quietly been churning out strong growth at their current location during the first two quarters of 2018. Planet 13 began trading on the OTCQB on Monday, September 17th, 2018, giving U.S. investors the opportunity to take part in this growing company.

The company recently reported record revenues of $4.4 million for Q2 2018, with an adjusted EBITDA of $0.8 million. Planet 13’s highly rated dispensary generated a monthly compound growth rate of 7.8% through July 31, 2018, and revenue of $8.0 million in the first six months of 2018.  Additionally, Planet 13 was recently announced as 9th on the list of the 24 Top Revenue Generating Public Cannabis Companies, reporting in US dollars, by the Public Cannabis Company Revenue Tracker. According to Bob Groesbeck, Co-CEO of Planet 13, Q2 2018 was the eighth consecutive quarter of revenue growth for the Medizin location. He credits the Planet 13 team that has consistently made Medizin one of the top-rated dispensaries in Las Vegas.

The Superstore

The Superstore will combine the knowledgeable staff and excellent product diversity that Planet 13 is known for with a one-of-a-kind entertainment experience and a location that is 4 minutes from the Las Vegas Strip.

Phase 1 of the construction of the new 40,000 sq ft Planet 13 Superstore, slated to open November 1, 2018, is ahead of schedule, and the company reports that Nevada cultivators and suppliers are clamoring to have their products showcased for the thousands of daily expected customers. Due to the anticipated statewide increase in cultivation capacity (from 250,000 sq. ft. in grow operations for all of 2017 to 1.1 million sq. ft. by the end of 2019), wholesale prices for product are expected to be lower, while retail prices should remain at their current levels, and thus driving strong margins for company investors.

While the current dispensary is welcoming nearly 750 customers per day, with an average spend of $70, the new Superstore is expected to experience over 2,000 visitors per day, with a similar average shopping cart. The new facility will feature 16,200 sq.ft. of dispensary space and is expected to be the largest cannabis entertainment complex on planet Earth, located in the entertainment capital of the world.  

Visitors to the new superstore will experience a sensory overload of special effects – with a sophisticated outdoor water feature and giant interactive electric lotus flowers on the roof visible from 65,000 hotel rooms that overlook the location. Once inside a huge interactive LED floor, laser graffiti walls, and overhead aerial orbs circling every hour will continue to wow customers.

Pending approval of both Las Vegas city & Clark County ordinances that have been drafted for upcoming November 2018 elections, customers may also be able to gather in a planned cannabis smoking lounge space in 2019. Plans are to eventually add a brewery, coffee shop, food offerings and convention event space to the 40,000 sq.ft. complex.

Rated as one of the premier Las Vegas marijuana dispensaries, Planet 13 strives to provide a one-of-a-kind destination. This mission guides every step taken by the business – from the types of products offered, to the entertainment, to the staffs’ reputation for helpful and knowledgeable service.

For more information, visit Planet13’s website at: https://www.planet13lasvegas.com/

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation:http://www.cannabisfn.com/legal-disclaimer/

The post Top-Rated Las Vegas PLANET 13/MEDIZIN Dispensary Reports Record Growth Prior to Planet 13 Superstore Opening appeared first on CannabisFN.

If a company was seeking to build a successful consumer packaged goods (CPG) brand, it would likely focus on a few influential markets to establish a buzz that can carry over to lesser markets. There are some other, industry-specific examples, but Los Angeles, New York, and London are probably the three dominant trend-setters. With cannabis legalization spreading across the world, companies are looking to develop brands that will resonate with an ever-growing consumer audience. In the end, cannabis marketing is no different than CPG marketing, and Los Angeles is the place to make an impact.

Rubicon Organics™ is a cannabis company with operations in California, Washington, and British Columbia. Intent on building an international consumer brand around premium organic products, the company is focusing its initial marketing efforts in the Los Angeles area before exporting its California beach brand to other markets. Rubicon plans to go public in the very near future.

Please click here to see Rubicon’s investor presentation and get a going public alert.

California Is the Place to Be

California is home to the world’s fifth largest economy. The state attracts more than 270 million tourists each year. Los Angeles reported 48.3 million tourists in 2017. The state was the first to approve medical marijuana in 1996, further entrenching it as the epicenter of cannabis culture in the United States as well as internationally.

As food and beverage marketer Sven Stalley put it when asked about his focus on L.A. for emerging brands, “Because it’s hip, it’s cool, and everyone looks to L.A. as the trendsetter. This is the place where clothing is made, where skateboarding started, and where surfing started. Plus music and acting — it’s a lifestyle. L.A. is a lifestyle, just like the natural food and beverage space. This is where the consumers, the customer base, the buyer demographic is for natural food and beverage.” Substitute ‘organic products’ or ‘cannabis products’ for ‘natural food and beverage’ and you have a pretty concise statement about the realities of marketing to cannabis consumers.

Rubicon’s Branding Plan

As you can see in the video above, shot at this year’s 56th Annual International Surf Festival, Rubicon’s flagship 1964 Supply Co.™ brand is focused on the healthy, youthful, relaxed California beach culture. Combine that with organic products and hip packaging, and the company appears to have the SoCal marketing mix figured out. A quick look at the brand’s retail distribution points (the list is always growing) shows Rubicon blanketing the LA area. The company is saturating the trend-setting market, investing in successfully establishing the brand there before substantially branching out into other markets.

Please click here to see Rubicon’s investor presentation and get a going public alert.

Speaking of other markets, Rubicon is in the final review stage for an ACMPR cultivation license in British Columbia and would become just the third Canadian LP producing certified organic cannabis. Starting with its 125,000 square foot hybrid greenhouse facility capable of producing 11,000 kg of cannabis flower per year, Rubicon plans to produce 67,000 kg/year by 2020. Upon receipt of the proper licenses, the company also plans to introduce the 1964 Supply Co.™ brand in Canada in 2019, effectively marrying the SoCal branding with the equally potent ‘BC Bud’ and ‘organic’ branding concepts to potentially create an international powerhouse.

Canada’s regulated cannabis environment makes it the early leader in the international cannabis export business. Licensed producers there, with the proper certifications, are beginning to do business in Europe, South America, and Australia. While the United States largely drives consumer marketing trends, companies there cannot legally export products across state lines, much less internationally. So Rubicon is really combining the best of both worlds with US lifestyle marketing and Canadian export capabilities.

Canadian LPs have been investing heavily in consumer brands recently, as most of them grew up marketing solely to medical customers. Many of these deals have been focused on Canadian brands in anticipation of upcoming legalization there. But let’s face it, a dominant international brand is not likely to be born in the prairies of Saskatchewan or even the verdant hills of Ontario. Canopy Growth recognized as much through its partnership with Organa Brands, the leading US-based cannabis distributor. Liquor giant Constellation Brands concurs as evidenced by its recent large investment in Canopy.

Rubicon Organics™ may have a solution to the thorny issue of building a successful consumer brand in the quagmire of the variously-regulated cannabis industry. Look for its vision to play out over the coming quarters, and the company to go public in the very near future.

Please click here to see Rubicon’s investor presentation and get a going public alert.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post Rubicon Organics: Branding for the International Cannabis Market appeared first on CannabisFN.

The Canadian adult-use cannabis market is set to launch in just over a month, on October 17, 2018. Deloitte projects the domestic cannabis market has the potential to reach C$22.6 billion over the coming years. As such, it is not surprising that an increasing number of prospective companies are looking to enter the space – already there are more than 100 licensed producers approved by Health Canada, and there are more in the pipeline.  

This obviously raises questions about the supply situation in the market. As a result, investors have recently turned their focus to distribution agreements or “off-take” in assessing the prospects for cannabis companies. Industry leader Canopy Growth (TSX:WEED) (NYSE:CGC) has been leading the discussion in this area with its “Distribution Drives Revenue, Capacity Alone Does Not” narrative.   

Key Indicators of Success

Canadian cannabis companies offer a unique valuation challenge. Their current financial picture represents their participation in the country’s legal medical cannabis market – a sizable but still relatively small market compared to the domestic illicit recreational market.  Yet, with the flip of a “legislative switch” on October 17, these cannabis companies have access to an existing and massive potential end market – with distribution being facilitated by the government. So how do you try to value these cannabis companies given this catalyst?   

For some time, one of the key indicators investors have used in the cannabis space is the concept of funded capacity—effectively how much cannabis they can grow. The logic being the more you grow, the more you will make. Funded capacity has been a fair measure in absence of more tangible revenue and earnings estimates.

Provincial Supply Agreements to Drive Revenue

However, at this point, almost all of the provinces have announced supply agreements with various licensed producers – setting out who will have product on “shelves” on October 17 and providing insight to who will be generating revenue come legalization.        

The licensed producers that don’t have their products on the shelf when the doors open in October will face a steep challenge moving forward — the shelf will be largely “filled” across the country and for a new product to be listed, it will have to ‘bump’ out an existing product – no easy task as the liquor industry, where product turnover tends to be low, would suggest.  

At the same time, the first-movers that are on store shelves could have a significant advantage. They will have an opportunity to establish their brands, fine-tune existing product offerings, and leverage recreational market revenue to pursue other opportunities, whether fortifying and expanding their domestic market positioning or pursuing global opportunities. Only a select handful of companies have signed supply agreements with more than half the provinces, including industry leaders:  Canopy Growth Corp. (TSX:WEED) (NYSE:CGC), Aurora Cannabis Inc.(TSX:ACB), Aphria Inc. (TSX:APH), and Tilray (NASDAQ:TLRY).

Many of these companies are large and well known names in the space, but there are a few other companies in the mix. The Supreme Cannabis Company (TSX-V: FIRE) (OTCQX: SPRWF) (FRA: 53S1) and Organigram Holdings Inc. (TSX-V: OGI) have both secured six supply agreements with Canadian provinces, while CannTrust Holdings (TSX: TRST) has secured five supply agreements. These companies have a similar national presence as the more recognizable competitors, but have much lower market capitalizations.

The following licensed producers have provincial agreements in place:

Sources: S&P Capital IQ.  Corporate/Provincial Press Releases (as at August 31, 2018).

Investment Opportunities

Companies like The Supreme Cannabis Company (TSX-V: FIRE) (OTCQX: SPRWF) (FRA: 53S1) and Organigram Holdings Inc. (TSX-V: OGI) have broad distribution across Canadian provinces and more attractive market capitalizations than their more recognizable competitors.

With a market cap of just over C$500 million and C$800 million, respectively, The Supreme Cannabis Company and Organigram Holdings trade at a fraction of the market capitalization of the industry majors, despite their strong distribution footprint, solid sales in  medical channels, and strong management teams.

The Supreme Cannabis Company, in particular, has generated significant activity in recent weeks as they establish themselves as the only major licensed producer focused exclusively on premium brands and products and with coast-to-coast distribution. It is worth noting that on September 10, they announced they had entered into a supply agreement with Tilray (NASDAQ:TLRY) – another positive indicator they have been successful in establishing themselves as the one of the premium brands in the market.

The Supreme Cannabis Company has not reported its fourth quarter and fiscal year-end financial results for the period ended June 30, 2018 yet, investors may want to watch closely for those results.

For more information, visit the company’s website at www.supreme.ca.

Disclaimer 

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post Distribution Could Determine Winners in Recreational Cannabis Market appeared first on CannabisFN.

When California made adult-use cannabis fully legal, effective January 1, 2018, the state immediately became the world’s largest legal cannabis market. On top of the state’s massive economy, the world’s fifth largest by GDP, California has a huge population with a deeply entrenched cannabis culture. There are currently about 1.25 million medical cannabis patients there, a market that has been developing since 1996 when the state became the first to legalize medical marijuana. Add in the fact that tourists love California, and it is clear that companies looking to establish a foothold in the booming United States cannabis market should probably be doing all they can to succeed in the state.

While there are many public companies with plans to establish operations in California, there are not too many with an established roster of products and distribution networks. One such company is RISE Life Science Corp. (CSE: RLSC). Headquartered in Toronto, and listed in Canada, the company is firmly focused on developing a strong consumer products presence in California before spreading out across North America. RISE has Life Bloom Organics under its umbrella, and is currently launching its Karezza brand in California with a media event September 20th in Hollywood.

The California Opportunity

Various analysts have advanced a wide variety of projections for the size of California’s legal cannabis market. BDS Analytics and Arcview Market Research project $7.7 billion in sales in the year 2021, though the companies recently revised their 2018 projections down due to slower than expected licensing procedures. The University of California Agricultural Issues Center predicts that sales from adult-use cannabis will eventually reach $5 billion/year. No matter how you slice it, the market in the state is very large and growing larger.

Colorado cannabis sales hit $1.5 billion in 2017 (with about 5.6 million residents). An examination of the data by the Denver Post showed that 3 out of the 5 counties with the highest sales per capita were border counties, indicating that visitors from neighboring states may be driving significant sales there. With California already attracting upwards of 270 million tourists annually, the potential for revenue from cannabis tourism is incredibly high. In essence, establishing a brand in California can not only create revenue there, but has the potential to spread brand awareness throughout the country as tourists take home their favorable impressions of products encountered in the state.

RISE Executing on Its Brand Strategy

Rather than growing and selling cannabis flower itself, RISE Life Science has its eyes on the larger premium lifestyle, health and wellness market. Trends in the cannabis industry show a move away from smokable flower toward concentrates, oils, and alternative delivery methods. As cannabis-derived products become more prevalent, the social taboos around utilizing the plant’s active ingredients to enhance one’s health and happiness are stripping away.

The company’s Karezza brand focuses on botanical formulations that support adult sexual health and wellness. Scientifically formulated, the brand is about as far away from underground pot culture as you can get. Eaze Insights shows that in California between 2016 and 2017, Baby Boomer spending on cannabis-related products increased about 19%, and Gen X spending increased about 13%. Women increased spending on cannabis products 20% over the same time period. These important consumer groups often look to cannabis for its therapeutic properties, and they are the target market for Karezza.

Karezza Products on Display

Life Bloom Organics products similarly focus on health and wellness, currently offering nanotized CBD formulations with enhanced bioavailability and no THC aimed at people with sleep, pain, and general wellness issues. The products are currently available in many locations throughout Southern California as well as directly from the company online.

RISE plans to expand product lines over the coming quarters, utilizing and growing its current extensive distribution network consisting of natural health food markets, chiropractic offices, specialty retailers, and cannabis dispensaries. The company prides itself on its point-of-sale marketing expertise and looks to make a lasting impression on both California residents and tourists alike.

Disclaimer 

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post California’s Crucial Role in the Cannabis Retail Market appeared first on CannabisFN.

The Canadian cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of recreational cannabis in October of this year. While many licensed producers are focused on meeting this domestic demand, investors are starting to realize that an even bigger opportunity is brewing in Europe—an emerging €52.6 billion opportunity with few established players.

Maricann Group Inc.’s (CSE: MARI) growing footprint in Germany, Switzerland, Malta, and Italy makes it one of the most promising opportunities in the space. With a modest C$268.5 million market capitalization, the market appears to have discounted its European operations that could both diversify and grow its revenue far beyond the Canadian market.

Growing European Market

The European cannabis industry could reach €52.6 billion over the coming years, according to Prohibition Partners’ European Cannabis Report. With twice as many citizens as the U.S. and Canada combined, the firm believes that the region has the potential to become the largest single market over the next five years if most or all of its constituents legalize medical and/or recreational cannabis with programs similar to those in North America.

Germany is the largest cannabis market in Europe with a medical and recreational market that could total €14.7 billion—or about 26 percent of the continent’s cannabis market. There are also ten other countries that have legalized medical marijuana and several others that could pass recreational laws over the next few years. These trends are quickly accelerating following Canada’s move to legalize recreational cannabis in October of this year.

Canada has become a leading supplier to these new markets given its growing capacity and status as the world’s leading cannabis producer. Aurora Cannabis Inc. (TSE: ACB) acquired CanniMed Therapeutics to target Denmark, Italy, and Germany; Aphria Inc. (TSE: APH) acquired Nuuvera Inc. to enter the Italian market; and, Maricann Group Inc. (CSE: MARI) acquired Haxxon to enter the Swiss cannabidiol (CBD) market.

Maricann Builds a Presence

Maricann’s acquisition of Haxxon offers significant inroads into European markets. In addition to providing access to the lucrative Swiss market, the acquisition provided a 64,500 sq. ft. indoor facility located in Zurich, near the airport. The company plans to invest CHF4.8 million in improvements to the existing cultivation facility to create finished CBD-based products for inhalation as a tobacco substitute across Europe.

In addition to its Swiss holdings, the company is one of five in the world to have GMP certification that enables it access to the lucrative German medical market, as opposed to waiting for the tender process. The company has already applied for a license and expects to receive approval during the third quarter to begin cultivation at a 300,000 sq. ft. GMP and GPP compliant cultivation facility that it’s building near Dresden, Germany.

Germany’s medical market is unique because government health insurance and the European Medicines Agency pay for patient prescriptions, and over 62 percent of the patient base in Germany are covered by this insurance. This means that Maricann can sell cannabis products directly to the German government rather than to consumers or physicians. The company is one of just six licensed producers to have EU-GMP certification, which enables them to send products into Germany’s market, where one gram of dried cannabis flower retails for 24 euros—a significant premium over North American markets.

In late-August, the company also announced that its European nutraceutical subsidiary, MariPlant, commenced the harvest of about 165 hectares of hemp in Germany. The company managed to collect nearly 3,000 kilograms of dried material from just four hectares so far, using innovative new equipment developed in Germany. Management believes that it will be able to dry up to 50,000 kilograms of wet hemp flower per day using these technologies.

And finally, the company also announced a non-binding term sheet to form a strategic joint venture with San Martino, a large scale agricultural giant in Piedmont, Italy. The two companies will develop a centre of excellence for cannabis products in conjunction with the University of Eastern Piedmont. The initial focus will be on high-CBD products for the medical market, but ultimately, THC products for the European market when legal.

Expanding Revenue

Maricann’s revenue from its domestic and international operations totaled $1,157,887 during the second quarter, which was a 75 percent increase from its year ago results. With these revenue coming from only two large bulk supply orders, shareholders and investors could see further upside, especially as the company has made the decision to consciously preserve inventory ahead of recreational legalization later this year.

“We have achieved significant supply agreements with a number of provinces to supply our cannabis products which is expected to transform into shareholder value with compelling revenue in Q4 2018, 2019 and beyond,” said CEO Ben Ward. “As previously disclosed, the Company has reserved product for the recreational market commencing October 17th and its pharmacy joint initiative commencing October 1st. The Company made the conscious decision to preserve inventory to meet demand for these strategic long-term sales channels.”

The company was recently selected by The Ontario Cannabis Store to supply recreational product through its online store launching on October 17, 2018. On the international front, the company’s recent export of dried cannabis flower to Germany and the closing of two international deals could also pave the way toward greater global revenue. These combined catalysts could help accelerate its future financial results.

Looking Ahead

Maricann Group Inc. (CSE: MARI) is well-positioned within the Canadian and European cannabis industries. With its growing footprint and upcoming recreational legalization, investors may want to take a closer look at the stock given that the market is currently assigning almost no value to its growing European operations.
For more information, visit the company’s website at www.maricann.com.

The post Canadian Investors Are Missing the €52.6 Billion European Opportunity appeared first on CannabisFN.

Canada’s cannabis industry is gearing up for recreational legalization on October 17, but investors may want to look beyond the ‘unicorn’ producers. While funded capacity may have been the buzzword over the past couple of years, quality and distribution have become the most important considerations as the market comes online. Everyone is starting from the same point when it comes to building a brand reputation in the new industry.

SpeakEasy Cannabis Club Ltd. (CSE: EASY) CEO Marc Geen and President Brian Peery recently sat down with Jeremy Szafron of The Green Scene Podcast to discuss these industry dynamics and what they’ve been up to over the past couple of months to prepare. The podcast has already received over 51,000 listens and has global reach.

Unique Approach

SpeakEasy Cannabis Club represents a collective of the top growers in Canada, sharing decades of knowledge and experience to produce the finest product in the world. The company was founded by descendants of Canada’s most successful farming cooperative, Sun-Rype Ltd., which was founded to profitably use process-grade apples rather than tossing them, and grew to reach over C$100 million in annual revenue by 2007.

Listen to the Podcast on The Green Scene

Marc Geen carried on the tradition of Sun-Rype by bringing together a collective of world-class growers with a lifetime of experience producing the best cannabis in the world. SpeakEasy acts as an incubator that shares knowledge, resources, and operational expertise with these independent growers—a model similar to YCombinator in Silicon Valley. The result is a rich set of ultra-premium products, each with their own unique story behind them.

Management expects these products to command a premium in Canada’s cannabis industry. With everyone starting at the same point, the company is working on innovative packaging and branding that will set its products apart on store shelves. The combination of authenticity and product quality will ultimately determine which licensed producers succeed, with premium products commanding 66 percent higher prices in many markets.

Perfect Location

SpeakEasy Cannabis’ entire operation is situated on 290 acres of land in British Columbia’s Golden Mile, which has been called the Napa Valley of Cannabis for its ideal growing conditions. The company’s 10,000 sq. ft. optimized, indoor facility is designed to produce ultra-premium cannabis flower, while its 2.9 million sq. ft. outdoor growing space will produce high volume, low-cost products that will be used to create edibles and extracts.

Listen to the Podcast on The Green Scene

The company remains in the final stages of Health Canada’s approval process for an ACMPR license after answering three separate sets of questions. While the license has been pending, the company has been busy planning for its second phase of growth. The team began an 80,000 sq. ft. expansion project and are going through the review process for the planned outdoor production, with plans to start planting next Spring.

Unlike many other LPs using a hub-and-spokes model, the company’s operation is situated on its single 290-acre piece of land. The goal is for everyone to work together in the same area without having to worry about the added logistics and complexity associated with managing a multi-province footprint. Of course, it’s also all located in one of the most ideal growing regions in the entire world for cannabis plants.

Looking Ahead

SpeakEasy Cannabis Club Ltd. (CSE: EASY) represents a compelling investment opportunity in Canada’s burgeoning cannabis industry ahead of recreational legalization in October. Investors that are looking beyond production capacity may want to consider the company given its unique growers’ collective business model and its commitment to growing and selling the best products available today.

Listen to the Podcast on The Green Scene
For more information, visit the company’s website at www.speakeasygrowers.com.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post In-Depth Interview: Canadian Farming Royalty Enters The Cannabis Space While Leveraging A Wealth Of Agricultural Experience appeared first on CannabisFN.

Cannabis oils and extracts have quickly become the fastest growing segment of the global cannabis industry. In the United States, cannabis concentrate sales rose more than 50 percent last year, compared to a decline in cannabis flower sales across most markets. In Canada, cannabis extracts have already become more popular than cannabis flower for medical patients — a trend that could accelerate with the legalization of recreational cannabis in October.

MediPharm Labs Inc. has focused exclusively on becoming a leader in cannabis extraction with the most sophisticated and largest extraction footprint in the country. Investors looking for a pure play opportunity in cannabis extraction may want to take a closer look at the company as it prepares to go public soon.

Click here to get a MediPharm going public alert and corporate presentation.

From Flower to Extracts

Health Canada has reported a consistent increase in cannabis oil and extract sales. Between April and December of last year, cannabis flower sales rose 9.2 percent to 2,079 kilograms compared to a 56.7 percent increase in cannabis oil sales to 3,005 kilograms. Inventories of cannabis oil are also much tighter at just 11,140 kilograms compared to 38,927 kilograms for cannabis flower, suggesting that prices could continue to rise.

There are several reasons for these trends:

• Higher Margins – Cannabis extracts create higher margin products than cannabis flower, ranging from recreational edibles to pharmaceutical-grade medical products.
• Longer Shelf Life – Cannabis extracts have a longer shelf life than cannabis flower, which makes them preferable from an inventory standpoint.
• Physician Supported – Many physicians prefer extracts because of the improved safety (no smoke inhalation) and efficacy (more predictable effects with exact dosing).

The Opportunity: Many licensed producers are not very well equipped to produce cannabis oil since they have focused largely on cultivating cannabis flower. While some companies are providing in-house extraction technology to a number of producers, many licensed producers are opting to partner with a third party that is already an expert at extraction. That way, each company can focus on what it does best and maximize its efficiency and returns. 

MediPharm’s Purity Focus

MediPharm was the first company in Canada to secure Licensed Producer approval for oils from Health Canada without first receiving a cannabis cultivation license. MediPharm is research-driven and focused on downstream secondary extraction methodology, distillation, and cannabinoid isolation and purification. With the current ability to process over 100,000 kilograms of dried cannabis per year (and expansion plans to go to 300,000 kilograms of dried cannabis per year in its Barrie Ontario operations), the company has the largest cannabis oil production footprint in the country. MediPharm plans to partner with Licensed Producers and other parties to bring both medical and recreational advanced derivative products to market. The company’s extraction methodology results in exceptional purity, offering trust and assurance to end consumers.

Click here to get a MediPharm going public alert and corporate presentation.

Within a month of being licensed, the company secured over 1,000 kilograms in dried cannabis supply contracts and its professional business development team is driving future supply with fixed volume contracts, product-focused partnerships with licensed producers, and one-off bulk purchases. The company is working with licensed producers to manufacture and distribute pharma-grade extract-based products under joint ventures, white-label partnerships, and other agreements.

Management is also focused on building an international presence through its MediPharm Labs Australia Pty. Ltd. subsidiary. The facility will act as an important import hub until Australian domestic patient demand warrants dedicated production activity. With the Australian government’s recent move to legalize medical cannabis exports, the country could become one of the largest players in the global cannabis industry.

The company’s management team is also well-equipped to build long-term shareholder value:

• Pat McCutcheon – President and CEO – Pharmaceutical sales and marketing expert.
• Keith Strachan – Business Development – Healthcare business development expert.
• Ahmed Shehata – General Counsel – Corporate and commercial law expert.
• Martha Smart – Director of Innovation – Pharmaceutical product experience.
• Chris Hobbs – Chief Financial Officer – CPA with finance and compliance experience.
• Chris Talpas – Director of QA – Biomanufacturing and cGMP operations expert.
• Paul Hamelin – Director of Security – Public safety and risk management expert.
• Sybil Taylor – Chief Marketing Officer – CPG and strategic marketing expert.

Looking Ahead

MediPharm represents a compelling investment opportunity in Canada’s cannabis industry. With the largest extraction operation in the country and a focus on international quality standards, the company is well positioned to partner with leading licensed producers and fulfill a key gap in the industry. Investors looking for a pure-play opportunity in the extracts space may want to take a closer look at the company as it gears up to go public over the near-term.

Click here to get a MediPharm going public alert and corporate presentation.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post MediPharm Labs Inc.: Built for Purity in Cannabis Extraction appeared first on CannabisFN.

California’s cannabis industry is projected to reach $4.3 billion by 2021, driven by the legalization and widespread adoption of adult-use cannabis. Investors interested in building exposure to the state’s market may want to consider diversified players that are actively building both production and distribution footprints. That way, they can access the massive upside potential with less risk than concentrating on a single segment.

High Hampton Holdings Corp. (CSE: HC) is a Toronto-based company that fits the mould with a cultivation operation in Coachella, California, various ancillary product and services businesses, and now, a leading California cannabis brand that’s actively expanding its product line-up to reach a wider range of dispensaries across the state. Investors may want to take a closer look at the stock as it ramps up cultivation and expands its leading brand presence.

California’s Lucrative Cannabis Market

California’s recreational cannabis industry is projected to bring in $557 million in revenue next year, according to BDS Analytics and Arcview Market Research, which the analysts expect will reach $4.3 billion by 2021. Medical marijuana brings in another ~$2.7 billion these days, but that figure is expected to decline to $1.5 billion by 2021, as adult-use cannabis cannibalizes part of the legal cannabis market.

There are many different opportunities within the state’s cannabis industry, including cultivators, dispensaries, and brands. There are even a handful of publicly-traded companies that operate in these areas, although many of them are either very early-stage or don’t offer a pure-play on California’s market. Investors in U.S.-based companies also run the risk of federal-level interference in the corporations.

Building a Leading Distribution Network

High Hampton Holdings Corp. (CSE: HC) recently announced the close of the acquisition of CALIGOLD, a popular edibles brand with seven multi-strain flavoured, award-winning chocolate bars in dispensaries across California. Co-founders Daniel Hood and Jonathan Schwartz will remain with the company as it gears up to launch new products into California’s burgeoning cannabis industry over the near-term to unlock additional value.

“We will combine our expertise with the knowledge and entrepreneurial spirit of both, Daniel and Jonathan, to further expand CALIGOLD’s market position, grow its revenue and diversify its product line,” said High Hampton CEO David E. Argudo. “CALIGOLD with its award-winning products and established distribution network bolsters our growing position in California and fits perfectly with our consolidation strategy for this burgeoning market.”

The company will immediately commit USD $2.6 million to CALIGOLD to further its product development, marketing, sales, and working capital. In addition, CALIGOLD will work closely with its new sister companies, including CoachellaGro and 8 Points Management, as well as the High Hampton executive team, to leverage their distribution channels and realize the many synergies that exist within the broader focus on California’s market.

Looking Ahead

High Hampton Holdings Corp.’s (CSE: HC) acquisition of CaliGold furthers its distribution and reach into California’s lucrative cannabis industry. In addition to the new acquisition, the company has exposure to cannabis cultivation through its 254,000 sq. ft. CoachellaGro project, as well as exposure to other ancillary products and services through its 420 Realty LLC and 8 Points Management LLC subsidiaries.
For more information, visit the company’s website or follow them on Facebook, Twitter, or LinkedIn.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post High Hampton Holdings Expands California Network with CaliGold Acquisition appeared first on CannabisFN.

The U.S. cannabis industry is projected to reach $50 billion by 2026, according to Cowen & Co., driven by the legalization of adult-use cannabis in California and other states. While there are many companies targeting the emerging space, most are startups with a limited track record—and some haven’t even secured all necessary permits. Risk-averse investors may want to consider more mature companies for their portfolio.

Grown Rogue Inc. is a private, Oregon-based cannabis cultivator that’s planning to go public in September 2018. With existing operations in Oregon and plans to expand into California and Nevada, it could be the ideal opportunity for investors seeking a mature cannabis cultivator that’s diversifying across several key states.

Oregon, California & Nevada

The genesis of Grown Rogue began about a decade ago when Obie and Sarah Strickler began cultivating cannabis under the Oregon Medical Marijuana Program. While they started growing medical marijuana as a hobby, the two quickly realized the potential for the plant to bring people together in common goals and create better, healthier lifestyles. The operation quickly expanded to over 50 patients and Grown Rogue was born.

Since these humble beginnings, the company has become one of the fastest growing brands in the northwest with 90,000 sq. ft. of licensed cultivation and an average of 25 percent month-over-month sales growth so far in 2018. The company recently expanded into California and plans to establish a presence in Nevada over the near-term, growing its existing footprint in over 200 dispensaries to more than 300 dispensaries.

The legalization of recreational cannabis in California and Nevada opened the door to this expansion. Rather than investing in a California or Nevada startup, investors can access a mature cultivator that has been operating in a legal recreational market for years. This experience can help avoid many of the potential problems faced by startups, such as quality control issues or personnel shortages, and increase the odds of success.

Seed-to-Experience Approach

Grown Rogue’s seed-to-experience approach sets it apart from many other cultivators. While many companies are developing innovative strains, there is trouble translating these genetics into what customers actually experience when consuming cannabis. Grown Rogue aims to provide these insights by carefully controlling the genetics and growing processes, while continually establishing proprietary algorithms to turn quantitative and qualitative data into likely expected effects each cannabis product provides consumers.

There are five parts of the company’s seed-to-experience approach:

• Seed: The company begins by taking the time to understand the genetic profile of the seed and select the best cultivars with a history of potency and consistency. With a dedicated genetics R&D department, the company is focused on revitalizing world-class clones and experimenting to bring strains to market that are as innovative as they are effective.
• Grow: The company operates three cultivation facilities. The two outdoor properties are nestled in distinct locations in the world famous Rogue Valley of Southern Oregon—known by experts as the Napa Valley of Cannabis. The region’s diverse microclimates and the company’s 50 years of cultivation experience results in some of the most consistent, high-quality products on the market. The company’s focus on  clean-green and phylos certifications reassure customers that the products are as organic and genetically sound as possible.
• Science: The company has developed proprietary algorithms that consider all quantitative aspects of the finished product and tap the cannabis community for qualitative data. Through its partnership with a world renowned research psychology team, the company’s goal is to take an extremely complex and sophisticated plant and simplify the selection process for consumers. The crowdsourcing of cannabis consumer experiences is known as the ROGUE Study. Consumers sign up to participate in this one of a kind cannabis study at t www.grownrogue.com/experience
• Diversity of Products: The company’s growing line of premium products include patent-pending nitrogen-sealed pre-rolls, unique concentrates, and cartridges that are designed to stand out from the competition. This variety of formats ensures that consumers are able to find the type of product that best suits their lifestyle and goals. Grown Rogue will soon release an industry first nitrogen sealed 3oz flower jar that ensures unparalleled freshness.
• Experience: The company’s high-quality genetics, scientific approach, and product portfolio help customers get the “right experience, every time”. Innovative labeling helps ensure that customers have easy access to these insights across a growing distribution network.

Looking Ahead

Grown Rogue Inc. represents a compelling investment opportunity in the U.S. cannabis industry. With its rapidly growing footprint, track record of sales success, and unique seed-to-experience approach, the company may be a lower risk than upstarts in California or Nevada, offering significant competitive advantages, and providing investors with strong geographic diversification in a single company rather than having to build out a larger portfolio.

For more information and a going public alert, visit the Grown Rogue investor page .

To better understand how this growing cannabis brand builds community, visit the instagram at www.instagram.com/grownrogue.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post Grown Rogue Builds a Multi-State Seed-to-Experience Cannabis Brand appeared first on CannabisFN.

The cannabis industry tends to capture a lot of headlines these days, but investors shouldn’t ignore the hemp industry’s massive potential. With hemp-based CBD oil growing in popularity, the market is projected to top $10 billion over the coming years, and there are only a handful of companies building strong brands in the space. Investors may want to take a look at these companies as potential opportunities.

Naturally Splendid Enterprises Ltd. (TSX-V: NSP) (OTC: NSPDF) is a vertically-integrated hemp company that offers a growing array of bulk, branded, and white-label hemp products. In addition to its network of 2,000 retail distribution points in North America, the company has been actively building an international presence in the U.S., Europe, and Australia. Investors may want to take a closer look at the stock given these catalysts.

Global $10 Billion Hemp Opportunity

The global hemp industry is projected to reach $10.6 billion by 2025, according to Grand View Research, representing a 14 percent compound annual growth rate over the forecast period. In addition to growing populations and rising incomes, there is a growing awareness of the dietary advantages of both hemp seed and hemp oil. These trends are especially prevalent when it comes to hemp-based cannabidiol, or CBD.

According to the Hemp Business Journal, hemp demand was driven primarily by hemp-based CBD (23%) and personal care (22%) applications— at least in the United States. The analyst expects hemp-based CBD sales to reach $646 million by 2022, while industrial applications are expected to see additional growth to reach $527 million over the forecast period. These trends are likely similar to those in Europe and other developed countries worldwide.

Naturally Splendid’s Expansion

Naturally Splendid has already established a strong footprint in Canada with NATERA® products appearing in major retail locations throughout British Columbia and Alberta and is expanding Nation-wide, having recently announced securing a national distributor. While this domestic market is important, management is also focused on expanding its footprint into international markets—both in the United States and around the world—to grow its presence beyond Canada’s borders thus creating additional brand equity and revenue.

In North America, the company has been focused on expanding its product lines beyond the 2,000 stores that they already appear in though their wholly owned The Bar Makers division (formerly Prosnack) private label clientele and their housebrand Elevate Me. The company has made several announcements recently securing private label opportunities in the nutritional bar category and this portion of their business continues to increase. To handle the increased business, the company has invested in additional manufacturing equipment and have built out a test kitchen that clients are able to access to create custom formulated products. When the addition of these recently announced new private label clients are taken into account, Naturally Splendid’s retail reach far exceeds the 2,000 retail outlets that the nutritional bars are currently in. In many cases, Naturally Splendid will be able to leverage these successes in the nutritional bar market to expand distribution of their NATERA® branded hemp products.

Building a strong brand across multiple categories in North America sets the foundation for international expansion. These efforts have been especially pronounced in Australia, where the company launched its NATERA® brand last year. The company recently announced that it received a third purchase order of NATERA® branded products valued at approximately C$100,000 from its Australian distributor. The first shipment successfully cleared customs and arrived at the distributor’s warehouse in late 2017. The second order was valued at approximately C$140,000 and was sent in a 40’ container for distribution throughout the growing Australian market.

Management has shifted strategy to replace some of the lost sales in South Korea stemming from that country’s oversupply of bulk hemp seed. Although open to bulk hemp seed business, the company is now more focused on delivering NATERA® branded or private labelled products to this region as well as new territories globally. By providing NATERA® or private label products, they separate themselves from competitors who supply bulk hemp seed only, while providing better profit margins than non-branded bulk hemp seed. The diversification and greater profit margins could be a win-win for investors.

In Europe the company has been actively marketing its NATERA® product line in Germany with eyes towards expanding their distribution network there. The addition of CBD fortified products with a growing brand presence such as NATERA currently has, has the potential to create significant new distribution opportunities throughout Europe as much of that region undergoes changes to cannabis and hemp regulations.

Vertically Integrated Operations

Naturally Splendid sets itself apart from many competitors with its vertically-integrated operations. Over the past year, the company has invested in bringing a lot of its production and processing in-house to help improve quality control, lower production costs, and ultimately enhance its profitability. The company’s pending Dealer’s License in Canada could be an especially important milestone since it would provide access to CBD oil derived from industrial hemp. It must be noted that under Canada’s new cannabis regulations coming into effect October 17, 2018, CBD will be legal to extract from industrial hemp for the first time thus opening up additional markets globally.

“Our vertical integration strategy creates a unique position for the company when measured against most other hemp companies,” said Naturally Splendid President Mr. Craig Goodwin. “The control over the value chain gained through vertical integration offers even more than just savings and increased margins. With industries like cannabis or hemp-based foods, quality control is of critical importance. Therefore, we have solidified our vertical integration to include our own hemp processing, expanded our bar manufacturing and test kitchen facility and have applied for our Dealer License allowing for the extraction of CBD from hemp amongst many other activities.”

By vertically-integrating its operations, the company is able to more quickly develop and launch new consumer products, including plant-derived, bioactive ingredients, nutrient dense foods, and related products. The company also has a growing patent portfolio to cover the commercial uses of industrial hemp and the broad spectrum of applications for cannabinoid compounds, including those derived from hemp and cannabis.

Looking Ahead

Naturally Splendid Enterprises Ltd. (TSX-V: NSP) (OTC: NSPDF) represents a unique investment opportunity in the burgeoning hemp industry. With its vertically-integrated operations, the company has been able to quickly develop and launch new products across a wide range of global markets. Investors may want to take a closer look at the stock as it expands its presence in Australia and beyond.

For more information, visit the company’s website at www.naturallysplendid.com.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post Naturally Splendid Increases Vertical Integration and Expands International Footprint appeared first on CannabisFN.

Oregon’s cannabis industry is projected to reach $835 million in 2018, according to Statista, driven by the legalization of recreational cannabis in 2015. While sales have increased significantly – some 1500% in Oregon alone – cannabis prices have been moving lower as production floods the market. The state has nearly one million pounds of cannabis in inventories with a population of just four million, prompting regulators to stop processing new applications for marijuana licenses.

Despite the significant growth, many consumers are overwhelmed with the sheer number of options when they walk into a dispensary. This is especially true for new cannabis consumers who have less experience.  For these consumers, it can be challenging to walk into a dispensary and choose the right product for the desired experience.

Grown Rogue is a multi-state cannabis brand that is solving these challenges through its seed-to-experience business model.

Click Here: Sign Up for a Free Grown Rogue “Going Public Alert” and Investor Information

Cutting-edge Cultivation Facilities & Practices

Grown Rogue’s cultivation facilities are located in the world famous Rogue Valley of Southern Oregon—known as the Napa Valley of Cannabis. With diverse micro-climates supporting many different strains of cannabis and a team with over 75 years of combined growing experience, the company produces some of the most consistent, highest quality products available on the market.

“Over the past few years, we have established both outdoor and indoor facilities to accommodate consumer product demands while maintaining very low production costs,” says Obie Strickler, Founder and CEO.

Grown Rogue CEO Obie Strickler on site.

Grown Rogue’s Seed-to-Experience process starts by understanding the genetic profile of the seed by working with best of breed cultivars that have a proven history of potency and consistency. Grown Rogue’s master growers start their examination of the seeds and clones at the germination level and follow this analytic approach all the way through adjustments to   humidity, temperature, light intensity, nutrient solutions, and other critical components of the growing cycle. The growers meticulously monitor the plant as it grows with an extensive daily checklist that ensures the absolute best environmental conditions are being achieved.

The company takes equally meticulous steps during the harvesting, curing, and trimming stages, where many other growers tend to make mistakes. For example, many growers dry cannabis too quickly, which results in a product that loses freshness and impact. The company’s master growers know that the biosynthesis that takes place that this stage is extremely important and highly dependent on temperature and humidity management.

“The goal is to create the most consistent and highest quality product on the market by both understanding the plant and ensuring optimal growing conditions,” continued Strickler.

Understanding and Classifying the Psychoactive Effects for Consumers

Grown Rogue’s cultivation experience and production practices set the company a part from competitors, but the company’s focus on understanding the effects of cannabis are truly unique.

Grown Rogue uses both qualitative and quantitative analysis as part of their classification protocol. Using a large number of laboratory measured data points, like potency, THC to CBD ratios, genetic makeup, and terpenes they are able to create customized algorithms for placement of product into five categories of psychoactive/physiological experiences. The company has even gone a step further by partnering with research psychologists from the University of California Santa Barbara to design a scientifically validated survey that participants fill out before and after consumption of a product to quantify effects. The goal is to create algorithms based on quantitative plant chemistry variables and qualitative experience sampling to better connect consumers with the experiences that they desire.

“Individuals can now track cannabis experiences in a scientific fashion through this survey allowing consumers to fully understand how various products and consumption methods affect mood and experience,” explains Jonathan Schooler, PhD, one of the principal architects of the ROGUE Study.

Grown Rogue is combining survey data with lab data to generate the first scientifically-defensible classification criteria for cannabis. Many dispensary owners and consumers are unsure of the effects that each strain will produce, which makes it challenging to get the right experience on the first try. Grown Rogue aims to change that trend.

Looking Ahead

Grown Rogue’s unique approach to the market could unlock significant value for its stakeholders over time. By understanding and communicating how its products impact consumers, the company is building a powerful brand of products that are highly differentiated from competing alternatives that offer little consumer guidance.
“Our long term vision is to use the data generated from this study specifically for market research and providing products consumers desire – even if they don’t know it yet,” added Jacques Habra, Grown Rogue Chief Strategy Officer.

Click Here: Sign Up for a Free Grown Rogue “Going Public Alert” and Investor Information

For more information, visit the company’s website at: www.grownrogue.com

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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Cannabis is generating a lot of attention across North America, but investors shouldn’t ignore the iconic plant’s close cousin—Hemp. While hemp doesn’t have the psychoactive properties that make cannabis appealing to some consumers, it’s a legal source of non-psychoactive cannabidiol (CBD), and has other properties applicable to a wide range of industries including cosmetic, therapeutic, food, textile, and industrial applications.

CROP Infrastructure Corp. (CSE: CROP) (OTC: CRXPF) recently signed a letter of intent with Naturally Splendid Enterprises Ltd. (TSX-V: NSP) (OTC: NSPDF) to develop and manufacture hemp seed, hemp protein powder, and hemp oil products to be sold under it’s The Hempire Co. and Tiffany brands.

The Growing Market for Hemp

Revenue from hemp products’ sales grew 16 percent to $820 million last year, according to the Hemp Business Journal. Hemp-based CBD products accounted for nearly a quarter of the market, while the remaining three-quarters of the market was divided between personal care products, industrial applications, food products, textiles, supplements, and other consumer products.

The analyst firm believes that hemp-based product sales will reach $1 billion by 2018 and hit nearly $2 billion by 2022, representing a four-year compounded annual growth rate of 14.4 percent.

The global market for hemp-based products is expected to be much greater. According to Grand View Research, the industrial hemp market is projected to reach $10.6 billion by 2025, representing a 14 percent compound annual growth rate. Rising demand for hemp in food and beverages, as well as growing awareness of the dietary benefits, is expected to propel demand for the plant’s compounds across a wide range of industries.

Proven Technology + Strong Distribution

CROP Infrastructure has partnered with Naturally Splendid to create a variety of retail hemp products that will be marketed and distributed through Naturally Splendids’ growing distribution network.

The products will be initially focused on hemp seed, protein, and oil. And will be expanded to include CBD-fortified products as regulations evolve to permit cannabis extracts in food. In addition, the products will feature Naturally Splendid’s HempOmega™—a soluble powder created from microencapsulated hemp seed oil that delivers essential omega-3 and omega-6 fortification with greater bioavailability than competing products.

“We are excited to be working with Naturally Splendid who was an early mover in the Canadian hemp market,” said CROP CEO Michael Yorke in the press release announcing the deal. “We believe in the nutritional spectrum and health benefits of hemp and adding a consumer goods vertical was a logical progression, as consumer data shows strong trends in plant-based foods and nutritional products.”

Naturally Splendid will begin distribution of its new branded products in four countries, including Canada as well as three U.S. states, where it has well-established operations.

Looking Ahead

CROP Infrastructure Corp.’s (CSE: CROP) (OTC: CRXPF) partnership with Naturally Splendid to bring innovative new hemp products to market is expected to open the door to new revenue opportunities. With a portfolio of 15 cannabis brands and distribution rights to a line of over 50 cosmetic/therapeutic cannabis products, CROP is uniquely positioned as a leader in the hemp and cannabis branding space.

In addition to these brands, CROP provides turnkey real estate solutions for lease-to-licensed cannabis producers and processors. CROP’s portfolio of projects includes cultivation properties in California, Washington State, Nevada, Italy, and Jamaica. CROP also holds joint ventures on West Hollywood and San Bernardino dispensary applications.

For more information, visit CROP’s website at www.cropcorp.com.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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The U.S. cannabis industry is projected to exceed $50 billion in size by 2026, according to Cowen & Co., driven by the legalization of recreational cannabis across a growing number of states. While Colorado and Washington were early pioneers, California is poised to become the single largest market in the U.S. and one of the largest in the world. As a result, investors may want to take a closer look at companies focused on the state.

Captor Capital Corp. (CSE: CPTR) (FFT: NMV) (OTC: NWURF) is a vertically-integrated cannabis company that owns and operates advanced growing facilities that produce high-quality marijuana. Captor then distributes the product throughout its wholly-owned dispensary network, including leading dispensaries in California. The company also plans to rapidly expand this footprint with one new acquisition and another planned acquisition in the state.

Growing Network of Dispensaries in California

Captor Capital owns two MedMen-branded dispensaries in West Hollywood and Santa Ana, California through its I-5 Holdings subsidiary. The high-end dispensaries are operated and managed by MedMen Enterprises Inc. (CSE: MMEN) under separate management contracts, possess licenses to sell recreational cannabis into the state’s market, and already generated gross revenue of US$7.57 million during the first quarter of this year.

“We are now seeing our first investment target in the California cannabis industry produce some very impressive numbers,” said Captor Capital CEO John Zorbas. “Our intention is to continue with our strategic focus of making investments in high-end cannabis retail stores and cultivation facilities in California as demonstrated by Captor’s recently announced proposed investment in Growth Network Solutions.”

In April, the company announced a non-binding term sheet with Growth Network Holdings Inc. to acquire a 30 percent equity stake and an option to acquire the remaining shares. Growth Network operates two retail dispensaries in the Los Angeles area and plans to open three more locations this year. Captor also acquired Chai Cannabis Inc. in August, which owns a recreational cannabis dispensary in Santa Cruz, as well as a delivery license.

Captor plans to continue its acquisition spree over the coming months. According to a press release in early August, the company is already in the process of acquiring two more dispensaries in Monterey Bay and Silicon Beach, which would bring its total to five retail cannabis dispensaries in California.

Cannabis Cultivation Facilities

Captor Capital leased two cannabis cultivation facilities in Washington State that are equipped to produce high-grade cannabis through its I-5 Holdings subsidiary. Currently, the company is in the process of sub-leasing these facilities to licensed growers, as well as negotiating license agreements with the sub-lessee cultivators for the use of certain intellectual property, such as operational procedures and cultivation processes.

In addition to these leases, the company’s proposed acquisition of Growth Network would include a 45,000 sq. ft. cultivation facility in California that sits on 29.5 acres of land. Growth Network plans to build a new 500,000 sq. ft. cultivation facility on the land, which would make it one of the largest indoor cultivation facilities in the state, as well as extraction, manufacturing, packaging, distribution, and testing facilities.

“We are very pleased to have reached this agreement in principle with Captor and we are excited to be working with investors that understand not only us and our business, but our market,” said Growth Network CEO John Jezzini. “By having all of these facilities under one roof, our business park will provide every service required, from seed to retail sale.”

The company also plans to build out its manufacturing footprint beyond just cultivation. In early-August, the company announced that it’s in the final stages of negotiation with Mellow Extracts LLC to acquire its state of the art extraction lab in Costa Mesa. The lab will be used to produce ultra-premium oil and provide service-for-hire extraction, as well as co-packing capabilities for white label and private label cannabis brands.

Looking Ahead

Captor Capital Corp. (CSE: CPTR) (FFT: NMV) (OTC: NWURF) represents a compelling investment opportunity in the U.S. cannabis industry. With existing recreational cannabis dispensaries operating in California, the proposed acquisition of cultivation facilities there, and cultivation facilities coming online in Washington, the company offers both an efficient vertically-integrated supply chain from an operations standpoint and a diversified opportunity from an investment standpoint.
For more information, visit the company’s website at www.capitalcapital.com.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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Cannabidiol, or CBD, has been widely studied for its potential benefits in improving a wide range of medical conditions. While there are many different suppliers of CBD oils, tinctures, and other products, there are few that are trusted by medical professionals willing to prescribe it to their patients. Investors may want to take a closer look at these providers as potential opportunities in the space—particularly those that are already building distribution inroads.

CBD’s Promise in Pain Management

Cannabidiol (CBD) is one of more than a hundred cannabinoids found in the cannabis plant, but unlike other cannabinoids, it does not product the “high” or psychoactive effect of other cannabinoids, such as tetrahydrocannabinol (THC). Instead, it influences the way that the human body uses its own endocannabinoids more effectively by activating or inhibiting other compounds in the human endocannabinoid system.

Several studies have found that CBD could play a role in pain management. For example, a study published in the European Journal of Pain found that a topical gel applied to rats with arthritis reduced inflammation and signs of pain without any additional side effects. A separate study in the Journal of Experimental Medicine supported these findings with data showing that CBD and help reduce pain and inflammation in humans.

Tree of Knowledge International Corp. (CSE: TOKI) produces and sells hemp-based CBD products in certain jurisdictions in the United States, as well as in Europe, South America, Australia, and China. The product line is organically-grown and handled, gluten-free, vegan, and non-GMO, which sets it apart from other companies in the space—and may make it more appropriate for medical professionals to prescribe.

New Deal with Dr. Sanjay Gupta

Tree of Knowledge International recently announced a distribution agreement with Dr. Sanjay Gupta, a Board Certified Interventional Pain Specialist and President of the American Pain Association—not to be confused with the famous CNN correspondent by the same name. Under the terms of the deal, the company will help Dr. Gupta develop branded CBD products to be sold directly to Dr. Gupta; to doctors in Dr. Gupta’s network of 160,000 doctors; or, to fulfill patient orders of the products.

By leveraging Dr. Sanjay Gupta’s reputation in pain management and TOK’s strong expertise, the partnership aims to bring reputable CBD oil products to market that patients and doctors can trust, which enables a wider range of patients to access the medicine they need.

“As the world perception is changing with respect to CBD products, I have embraced Tree of Knowledge, first as an advisory member and now as a product partner,” said Dr. Gupta. “Their vigorous testing and the exceptional quality of their products, being free of pesticides and microbial, makes them a world leader. This level of quality allows me to offer my network of top medical professionals a line of products that they can be completely comfortable in recommending to their patients.

Looking Ahead

Tree of Knowledge International Corp.’s (CSE: TOKI) distribution agreement with Dr. Sanjay Gupta represents a key turning point in its corporate history. While there are hundreds of different CBD suppliers, there are only a handful of companies with products that are trusted by the medical establishment. The agreement with Dr. Gupta could set the stage for more widespread adoption of CBD oil for pain management.

For more information, visit the company’s website at www.evrcbd.com.

For more information, read the rest of CannabisFN’s coverage.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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Cannabis is a plant with over 100 currently known active compounds, known as cannabinoids. These compounds interact with the human body’s endocannabinoid system to moderate a number of bodily functions. Since cannabis has been illegal for so long, scientists and researchers are just now discovering how many of these compounds work. But one thing has been pretty much settled – cannabinoids are lipophilic and hydrophobic. They ride along with fats but won’t jump in the car with water. This presents all sorts of issues with the delivery of cannabinoids in the human body, and there are many researchers and companies trying to improve that problematic delivery.

Sproutly Canada, Inc. (CSE: SPR) is here to change all of that. Sproutly recently finalized its acquisition of Infusion Biosciences Canada and its water-soluble cannabinoid technology. The company has discovered naturally occurring versions of cannabinoids, in the cannabis plant, that get along just fine with water. The discovery, and accompanying patent-pending technology, reverses decades of scientific understanding of cannabis chemistry and opens the door to a whole new world of cannabis product development.

Technology and Applications

As a result of the discovery, Infusion Biosciences developed its proprietary Aqueous Phytorecovery Process (APP) technology. The process is considerably more gentle than current methods for cannabis oil extraction like butane or CO₂ systems. The resulting extract carries all of the qualities of the original strain, delivering natural cannabinoids much more efficiently that oil-based solutions.

A common issue with oil extracts, and the edible and consumable products created from them, is the delayed onset and prolonged duration of the effects of the active ingredients. For recreational users, chomping on a couple of delicious pot brownies can turn into a bad trip. For medicinal users, relief from symptoms can be delayed and precise dosing hard to determine.

APP technology mitigates those problems, delivering precise doses of active ingredients that take effect in less than 5 minutes and wear off in 60-90 minutes. The experience is akin to smoking cannabis, without any of the negative health effects, inconvenience, or social stigma attached to smoking.

Sproutly has developed two products to this point. Infuz2O is the cannabinoid-infused water-based concentrate that forms the basis for beverage applications, with many other product possibilities in the pipeline. The company is capable of adjusting dosages and mixing active ingredients precisely to achieve the desired effect. Think of alcoholic beverages that run the gamut from low- or non-alcoholic beer to the stiffest shot of hard liquor. Utilizing Infuz2O formulation, cannabis beverages can provide the same range of options. Need to gently take the edge off a long day to get to sleep? Have your stress levels reached a seeming point of no return, calling for more drastic measures? No problem, Infuz2O can provide just what you need.

The other product is Bio-Natural Oils, which deliver the water-soluble, strain-specific cannabinoids in an oil carrier that lends itself to edibles, topicals, tinctures and the like. It’s a novel concept, carrying water around in oil, that Sproutly believes will have application across a wide variety of cannabis-derived product types.

Both platforms, the oil and the water infusions, have the potential to turn the biopharmaceutical cannabis industry on its head. With the precise dosing and all natural cannabinoids afforded by APP technology, many of the problems encountered in cannabis drug development can be overcome. Formulators and researchers are constantly striving to find the right compounds, extract them from the plant without harming them, and deliver them effectively in a controlled manner. Sproutly’s infusions contain the solutions to these ongoing struggles.

Market Opportunities

Medical marijuana is disrupting the pharmaceutical industry. A recent study in the United States found that, in states with medical cannabis laws, Medicare prescriptions fell on average 11% for conditions commonly treated with cannabis. These figures mostly reflect those willing to smoke cannabis. Is it hard to imagine that this rate would likely increase if better dosing and delivery regimens were developed, like Sproutly’s APP offering? To give you an idea of the potential, the global market for pain management (currently the most common indication treated by cannabis) is expected to grow from $62 billion in 2016 to $88 billion in 2025.

A major trend in the cannabis industry is initiatives to develop cannabinoid-infused beverages. HEXO, a licensed producer in Quebec, recently announced a joint venture with Molson Coors Canada to develop non-alcoholic cannabis-infused beverages. Constellation Brands bought 10% of Canopy Growth, one of Canada’s largest licensed producers, in 2017 with a similar goal. The maker of Corona and many other alcohol brands recently upped its commitment to the Canopy deal by taking $200 million in convertible notes, fully one-third of the total offering. Constellation is also investigating possibilities in the United States market. Major players see a huge opportunity, and Sproutly technology fundamentally changes and improves the possibilities for cannabis beverage development.

Consumers are moving away from smoking and looking for healthier alternatives. Oil sales are skyrocketing, companies are developing oral and dermal delivery methods, and cannabis flower sales are relatively flat compared to other product categories. The future market will look nothing like the early days of legal cannabis consumption, and Sproutly is in a prime position to shape that market.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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The tobacco/nicotine industry stands at an interesting point in history. While the negative side-effects of smoking have reduced cigarette volumes, many existing smokers don’t have a viable alternative that delivers nicotine quickly enough into the bloodstream. Rising cigarette prices are quickly pushing these consumers, which spend upwards of $680 billion per year, toward alternatives, like e-cigarettes or potentially new edible nicotine products. Demand for alternatives is skyrocketing: private e-cig company JUUL has current monthly revenue of US$200 million and has been growing at more than 600% per annum for three years.

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) is focused on non-combustible opportunities using its DehydraTECH™ delivery platform. In recent in-vivo animal studies, the company demonstrated that its delivery technology achieved nearly double the delivery than non tech-enhanced edible forms of nicotine, as well as significantly improve nicotine absorption across all subsequent time points — making it a compelling nicotine replacement option.

For consumers craving nicotine, speed matters, and DehydraTECHTM delivered 317% more nicotine within 30  minutes than the non tech-enhanced control.

CFN Media recently sat down with Lexaria CEO Chris Bunka at the NCIA 2018 to discuss the company’s unique approach to the market and what’s coming up.

Quantifying the Nicotine Market

Tobacco companies sold about 5.5 trillion cigarettes in recent years, according to the British American Tobacco, along with over billions of cigars and millions pounds of smokeless tobacco products. The majority of these cigarette sales came from just a handful of multinational companies: Altria Group Inc. (NYSE: MO), British American Tobacco Inc. (NYSE: BTI), and Imperial Brands Inc. (OTCQX: IMBBY).

Tobacco revenue from these sources reached around $680 billion in recent years, excluding China’s market, driven by higher prices and emerging market demand offsetting lower consumption in developed markets.

If you expand the market to nicotine products, and not just tobacco, that figure is expanding even more rapidly. E-cigarettes have become the fastest growing segment of the market, increasing from about seven million in 2011 to about 35 million in 2016. The World Health Organization expects this figure to grow to nearly 55 million by 2021, which has piqued the interest of many of the major tobacco companies.

Tobacco Kills, Not Nicotine

There’s no doubt that smoking tobacco is harmful, despite the industry’s dubious attempts to silence these facts decades ago. According to Cancer.gov, tobacco smoke contains more than 7,000 chemicals, including at least 250 that are known to be harmful and nearly 70 that have been definitively tied to cancer. Smoking harms nearly every bodily organ and leads to about 480,000 premature deaths each year in the U.S. alone.

In terms of dollar costs, smoking-related illnesses cost the United States healthcare system more than $300 billion each year, according to the CDC, including $170 billion in direct medical care and $156 billion in lost productivity due to smoking side-effects. For example, the risk of developing lung cancer or chronic obstructive pulmonary disease (COPD) can dramatically reduce one’s ability to function on the job.

Nicotine is what makes cigarettes so addictive for three reasons:

1. Tolerance – More and more nicotine is required to produce the same effect in the smoker at the initial stage.
2. Reinforcement – Nicotine is sufficiently rewarding to spur self-administration.
3. Withdrawal – Abrupt cessation can lead to powerful craving and a recognizable withdrawal syndrome that can encourage relapse.

Despite its addictive properties, nicotine itself is a mild stimulant that poses negligible risks in healthy people. It even enhances the performance of some tasks, including those requiring vigilance and visual cue processing, and can have memory and concentration benefits in the short-term. This means that nicotine patches, nicotine-infused vape oils, and other nicotine products don’t pose a significant hazard to healthy adults.

Lexaria’s DehydraTECH™ Play

Lexaria Bioscience Corp.’s (CSE: LXX) (OTCQX: LXRP) DehydraTECH™ technology was originally designed to improve the bioavailability of cannabinoids to help physicians, patients, and recreational users experience faster effects with a better taste. The technology works by encapsulating active ingredients in a lipid membrane to avoid metabolism in the liver and effectively reach the bloodstream.

Earlier this month, the company announced that the same technology holds promise in nicotine delivery. An in-vivo animal study delivered nicotine in an edible form into blood plasma in just minutes after dosing with 90.2 percent greater delivery than the concentration-matched control formulation by the 10-minute mark. That’s a big development for the smoking cessation market — much less the wider tobacco industry.

“Lexaria’s DehydraTECH™ breakthrough technology is demonstrating significant effectiveness in delivering nicotine into the bloodstream much more rapidly than we thought possible, and at levels approaching two times more effective than controls,” said Chris Bunka, Chief Executive Officer of Lexaria Bioscience Corp. “If we can develop viable ingestible alternatives to cigarette smoking we could help hundreds of millions of people avoid many of the disease states associated with smoking and I cannot imagine a more rewarding destiny bestowed upon Lexaria Bioscience Corp.”

The study significantly widens the potential use cases for DehydraTECH™ beyond cannabinoids and into nicotine. In addition, the company has been actively studying the potential for the delivery platform in non-steroid anti-inflammatories (NSAIDS), such as Tylenol®, which represents another multi-billion dollar market.

Looking Ahead

Lexaria Bioscience Corp. (CSE: LXX) (OTCQX: LXRP) represents a compelling investment opportunity within the cannabis industry and wider tobacco and pharmaceutical industries. With a patent portfolio that’s second to none, the company is quickly protecting its DehydraTECH™ platform across a wide array of multi-billion dollar markets that could add up to a trillion dollar opportunity for investors over the long-term.

For more information, visit the company’s website or download their investor presentation.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

The post CFN Exclusive CEO Interview: Lexaria’s DehydraTECH™ Could Transform the $680 Billion Tobacco Industry appeared first on CannabisFN.

Canada’s cannabis market is projected to reach more than C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of adult-use cannabis later this year. In addition to cultivation, this growth is fueling many other areas of the industry, including product development, analytical testing, and imports and exports. Investors may want to keep an eye on these areas as potential opportunities ahead.

Emerald Health Therapeutics Inc. (TSX-V: EMH) (OTCQX: EMHTF) recently acquired a dealer license from Abattis Bioceuticals Corp. (CSE: ATT) (OTCQB: ATTBF) that enables it to compete in these areas.

Licensed Producer vs. Licensed Dealer

Most investors are familiar with Licensed Producers, or LPs, under the Access to Cannabis for Medical Purposes Regulations, or ACMPR. LPs are permitted to cultivate, process, and sell medical (and soon recreational) cannabis into the legal market, as well as export cannabis flower to international markets. However, there are some important limitations to the license that inhibit product development and import/export opportunities.

Licensed Dealers, or LDs, under the Canadian Controlled Drugs and Substances Act step in to fill some of these gaps. LDs are permitted to import and export cannabis oils and resins, as well as prepare the manipulation, formulation, dosage form, strength or package size of cannabis products, including mixtures with other additives, controlled substances, and non-controlled substances. These capabilities make the licenses extremely valuable.

There are less than 50 licensed dealers throughout the country compared to more than 100 licensed producers authorized by Health Canada. Many licensed producers have been acquiring dealer licenses as a way to export higher value medical cannabis extracts rather than just cannabis flower. For example, Canopy Growth Corp.’s (TSX: WEED) Tweed Inc. acquired a dealer license back in December 2016.

Recent deals highlight the value of a dealer license. In May, 2018 Auxly Cannabis Group Inc. (TSX-V: XLY)(OTCQX: CBWTF), formerly known as Cannabis Wheaton, announced the acquisition of DoseCann Inc., a late stage licensed dealer applicant based on Prince Edward Island. The stock transaction carries a price tag of up to $38 million, with a little wiggle room based on milestones achieved.

In June, Aurora Cannabis Inc. (TSX: AB) (OTCQB: ACBFF) announced a proposed stock transaction worth $115 million to acquire Anandia Laboratories Inc. Based in British Columbia, Anandia is recognized as an industry leader, one of the largest and most established cannabis labs in the country.

Emerald Health Acquires a Dealer License

Emerald Health recently became one of the few licensed producers with a dealer license after acquiring the remaining shares of Northern Vine Canada Inc. from Abattis Bioceuticals Corp. for $2 million in cash and $4 million in stock. Northern Vine will continue to operate independently and is committed to serving all of its clients, including patient-growers and licensed producers that could potentially compete with Emerald.

“The acquisition of Northern Vine allows us to leverage its dealer license and research and development facility to advance our research plans to develop cannabis formulations supporting new products for both recreational purposes and to treat a broad spectrum of human conditions and diseases,” said Emerald Health CEO Chris Wagner. “The dealer license would also enable Emerald to cost-effectively source non-dried-flower cannabis products from suppliers in other countries.”

The move follows the company’s initial 53 percent investment in Northern Vine back in November 2017 for $2 million. In May 2018, the company increased that investment to 65 percent for an additional $2.75 million. The final acquisition includes the aforementioned payments, as well as a milestone payment in the form of common shares valued at $4 million if Northern Vine or Emerald receive gross revenue of $10 million from Abattis products.

When comparing the Emerald acquisition with those of Aurora and Auxly, noted above, it looks like Emerald got a pretty good deal. Auxly bought an applicant for a dealer license in Prince Edward Island for $38 million, while Aurora bought a larger established lab in BC for $115 million. Emerald’s price tag of $11 – $15 million for an established lab in the licensed producer mecca of BC offers value pretty much any way you look at it.

Looking Ahead

Emerald Health Therapeutics Inc.’s (TSX-V: EMH) (OTCQX: EMHTF) acquisition of Northern Vine puts it in an exclusive group of licensed producers with dealer licenses. These new capabilities will help supplement the company’s existing cultivation operations that include a 50 percent stake in Pure Sunfarms — and its 1.1 million sq. ft. greenhouse — and its Agro-Biotech operation with a 75,000 sq. ft. facility.

For more information, visit the company’s website or download their investor materials.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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