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The Legal Cannabis Market Expected to Witness Wider Adoption

AXIM, CARA

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, April 12, 2017 /PRNewswire/ --

According to a research report by Market Research Future, the Cannabis market in North America was valued at over USD 3.5 billion for the full year of 2015. Of that, the United States being the largest market in the region, was valued over USD 3 billion on its own. Marketing activities for cannabis products have been challenged by consumer perception and stern federal policies. So as these issues are being tackled over time, the cannabis derivative is expected to witness a wider scale adoption across the region, and is projected to grow over $16 billion by 2021, growing at a CAGR over 29%. ChineseInvestors.com, Inc. (OTC: CIIX), Axim Biotechnologies, Inc. (OTC: AXIM), Vitality Biopharma, Inc. (OTC: VBIO), Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE), Cara Therapeutics Inc. (NASDAQ: CARA)

A major portion of the cannabis industry is the Cannabidiol (CBD) market. CBD is widely used for medical products, and is not psychoactive, therefore not useful for reactional purposes. The Hemp Business Journal estimated that the CBD market will grow to a $2.1 billion market in consumer sales by 2020, with $450 million of those sales coming from hemp-based sources. That's a 700% increase from 2016. 

ChineseInvestors.com, Inc. (OTCQB: CIIX) on March 30th, announced its investment in Breakwater MB, LLC, a cannabis-focused investment and consulting company. Building on the success that CIIX enjoyed through its investment in early-stage firm Medicine Man Technologies, the Company is pleased to announce another strategic investment in the cannabis industry.

Breakwater MB was formed by CIIX board member and former CFO, Paul Dickman, as a means to invest capital in and provide consulting services to, private, cannabis-focused companies as they transition into the public market. The invested capital will primarily be used to cover the costs of becoming a publicly traded company, a strategy CIIX expects will provide significant investment appreciation and opportunity for liquidity. All opportunities will be evaluated by the investment committee, comprised of CIIX CEO, Warren Wang, Medicine Man Technologies, CEO, Andy Williams, and Paul Dickman, the CFO of Medicine Man and managing member of Breakwater MB."

"With the gradual opening up of the cannabis industry in the U.S., the potential development of cannabis companies will be huge in the future. U.S. states will continue to issue cannabis licenses to applicants, while licensed cannabis stores will continue to have long queues of consumers. As a result, I believe that CIIX will recognize generous returns from this investment in a cannabis-focused investment and consulting company," says Wang.

Axim Biotechnologies, Inc. (OTCQB: AXIM) focuses on the research, development and production of cannabis-based pharmaceutical, nutraceutical and cosmetic products. The company's flagship products include CanChew®, a CBD-based controlled release chewing gum, and MedChew Rx, a combination CBD/THC gum that is undergoing clinical trials for the treatment of pain and spasticity associated with multiple sclerosis. On March 07th, 2017, the company announced enrollment of 40 patients and commencement of its Phase II clinical trial, for the treatment of irritable bowel syndrome (IBS) with the company's CanChew Plus® CBD gum. 

Vitality Biopharma, Inc. (OTCQB: VBIO) dedicates to the development of cannabinoid prodrug pharmaceuticals, and to unlock the power of cannabinoids for the treatment of serious neurological and inflammatory disorders. In March, the company announced that it has positive results indicating a new use for the Company's proprietary prodrug cannabinoid delivery platform. Vitality found that cannabidiol (CBD) universally inhibited cell growth at concentrations similar to established chemotherapeutics. The company also found that its cannabidiol prodrug was not toxic to the human cells at the concentrations tested, demonstrating the relative safety of its prodrug delivery system.

Zynerba Pharmaceuticals, Inc . (NASDAQ: ZYNE) is a clinical-stage specialty pharmaceutical company focused on developing and commercializing proprietary next-generation synthetic cannabinoid therapeutics formulated for transdermal delivery. On March 13, 2017, the company announced that it has completed enrollment in the Phase 2 STAR 1 (Synthetic Transdermal Cannabidiol for the Treatment of Epilepsy) clinical trial, evaluating ZYN002 cannabidiol (CBD) gel in adult epilepsy patients with refractory focal seizures. The Company also announced that enrollment has completed in the Phase 2 STOP (Synthetic Transdermal Cannabidiol for the Treatment of Knee Pain due to Osteoarthritis) clinical trial evaluating ZYN002 CBD gel for the treatment of osteoarthritis.

Cara Therapeutics Inc. (NASDAQ: CARA) is a clinical-stage biotechnology company focused on developing and commercializing new chemical entities designed to alleviate pain and pruritus by selectively targeting peripheral kappa opioid receptors. The company is developing lead molecules that selectively modulate peripheral cannabinoid (CB) receptors without targeting CNS cannabinoid receptors. Cara's most advanced CB compound, CR701, is in preclinical development. Administration of CR701 to animals with neuropathy resulted in significant reversal of both hyperalgesia and allodynia, as measured by responses to thermal and tactile stimuli, respectively.

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