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The Relationship Between Legal Cannabis and the Plant Factory Grows Lights Market

GBLX, CMCZ, T.XLY

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, October 26, 2017 /PRNewswire/ --

According to a data provided by Zion Market Research, the global plant factory grows lights market was valued USD 2.73 billion in 2016 and is expected to reach around USD 5.11 billion by 2022, at a CAGR of 11.01% for the forecast period from 2017 to 2022. Plant factories are considered to be the future of farming. New popular methods such as vertical farming and the growing implementation of urban agriculture are major factors in the future of this market, as interests and investments for plant factories and related technology is increasing. The report also indicates that North America is expected to be the highest growing segment in the plant factories and grow lights market. The emergence of vertical farms and the booming market for cannabis cultivation are driving demand to new highs in the North American region. Light Engine Design Corp. (OTC: TLED), Cannabis Wheaton Inc. (OTC: KWFLF), GB Sciences, Inc. (OTC: GBLX), mCig, Inc. (OTC: MCIG), Mountain High Acquisitions Corp. (OTC: MYHI).

The effects of the cannabis industry on the plant factory grows lights market will depend on the growth of the cannabis industry and success of legalization campaigns. In states like California for example, analysts are projecting an increase in sales of Cannabis products for medical and recreational use. "California offers the perfect example of why it is so important to understand trends in consumer behavior. The state's legal (cannabis) industry is forecast to grow from $2.8 billion in 2017 to $5.6 billion in 2020. That spending will be increasingly directed at products and retailers who understand and serve the market's evolving tastes and preferences. The market is changing, and the most successful operators will be those who adapt most quickly to the change," said New Frontier Data CEO Giadha Aguirre De Carcer.

Light Engine Design Corp. (OTC: TLED) announced breaking news earlier today that, "a wholly-owned subsidiary of Light Engine Design Corp, is an industry pioneer specializing in the design of advanced light engines and fixtures for frequency-specific biological lighting industries. The Company is pleased to announce that it has achieved a breakthrough in spectrum design that is increasing crop yields and product quality in the indoor cultivation of legal cannabis and food products. This is significant given the importance of generating large amounts of high-quality food using environmentally sustainable practices.

The CEA and greenhouse markets are expected to expand significantly in conjunction with novel revolutionary advancements in lighting technology. "In an effort to serve an exponentially growing marketplace, we have diligently strategized to bring to market one of the most advanced indoor growth lighting systems available, thus bringing heightened efficiency and improved profitability to the legally growing cannabis industry, a market experiencing robust growth. Our technologies also have tremendous application in the food industry, which we believe will continue to experience strengthened demand, congruent to population growth." said Robert Manes, Tall Trees' Chief Executive Officer. At this time, the LED lighting sector is an intricate key to all indoor agricultural environments, particularly legal cannabis. U.S. legal retail cannabis sales were projected to rise more than five times between 2014 and 2018, from an estimated $2.2-$2.6 billion in 2014 to $7.4-8.2 billion in 2018, according to an article published by Marijuana Business Daily.

Tall Trees LED Company also announced the achievement of its client's recent 1st and 2nd placement among Arizona's 2017 ERRL Cup winners for the quality of their cannabis flower. A Tall Trees' licensed and registered grower achieved the results using lighting produced and currently available through the Company's retail and wholesale sales channels. Third-party test results were provided by C4 Laboratories, a well-respected Phoenix-based cannabis testing facility. C4 representatives commented that the THC levels ( > 32% total cannabinoids) that were detected were the 3rd highest to have been observed to date; the highest produced by solid-state lighting. To view test results in their entirety, visit: http://theerrlcup.com/cannabis-event-results/ and http://theerrlcup.com/errl-cup-winners-2017/ . The Tall Trees' grower goes by the moniker "Maxx Trees."

Until recently, light output in relation to power input (efficacy) in LED lighting has been insufficient to grow premium quality plants. Furthermore, the frequencies of light required for adequate nutrient delivery and control of a plant's other biological functions have previously been a major oversight in the LED lighting industry. However, the Tall Trees LED Company has responded to these inefficiencies in the cannabis sector. Tall Trees' CEO, Robert Manes states, "there are many compelling scientific and peer-reviewed articles beginning to define the benefits of spectrum (frequency) control for food production, and we intend to extend this research and development to control yield, aroma, flavor, and a multitude of targeted medicinal qualities in cannabis."

Tall Trees' horticultural products follow strict internal guidelines for Coverage, Color (spectrum) and Photon Density (CCPD). The Company's fixtures are designed to cover industry-standard grow trays, provide spectrum that emulates natural sunlight, (which is the best overall grow light) and delivers the photon demand required to satisfy all of a plant's photobiological needs. Tall Trees' technology utilizes the latest research in photobiology to tailor lighting output for optimum growth, aesthetics, chemical and nutritional content.

Cannabis Wheaton Inc. (OTC: KWFLF) is the first cannabis streaming company in the world. The company streams will include production from across Canada coming from its partners comprised of licensed producers of cannabis (LP) and LP applicants. On October 17, 2017, the company and Beleave Inc. announced that CBW has provided an initial advance of $5,000,000 in non-dilutive debt financing by way of an instrument evidencing a debt obligation repayable in product equivalents. As previously announced, the proceeds of the D.O.P.E Note will be used by Beleave to fund the construction of an expansion facility, to be situated adjacent to Beleave's current facility outside of Hamilton, Ontario.

GB Sciences, Inc. (OTCQB: GBLX) is a diverse cannabis company, focused on standardized cultivation and production methods; as well as biopharmaceutical research and development. Recently, the company projected sales of $500,000 in October and continued sales of at least $500,000 per month over the next three months. GB Sciences recorded unaudited sales of approximately $320,000 in the three months ended 9/30/17. The company is operating at 200 grow lights, which is only 30% of its expected final capacity after build out is completed. After the final build out, cultivation revenues will continue to increase with a target flower capacity of $18Million annually. The company is expected to open its production facility in late November or early December of 2017. This operating unit should generate additional significant free cash flow from oil over 2018 at a steadily accelerating pace.

Mountain High Acquisitions Corp. (OTCQB: MYHI) is a turnkey, cutting-edge infrastructure provider to licensed cannabis growers, processors and producers in regulated markets. In addition to assisting in the design, permitting, development and operation of scalable infrastructure, MYHI helps licensed operators leverage scientific and technological innovations specifically geared to optimize the cultivation and processing of cannabis. Recently, the company announced that it has expanded its pilot program, which is focused on providing turnkey infrastructure solutions to licensed cannabis growers. Now, with the help of its strategic partner D9 Manufacturing, Inc. (D9), the program agenda has expanded to include the development of reliable Standard Operating Procedures (SOPs) that growers will be able to utilize to greatly reduce the risk of low yield or failed grows. To that end, D9 is focused on fine-tuning SOPs and best practices which will enable growers to cultivate with efficiency, achieve above-average yields, and produce a harvest that is visually rich, extremely fragrant, pleasantly palatable, and free of harmful chemicals.

mCig, Inc. (OTCQB: MCIG) is a diversified company servicing the legal cannabis, hemp and CBD markets via its lifestyle brands. mCig, Inc. is committed to being the leading distributor of technology, products, and services to fit the needs of a rapidly expanding industry. On October 5, 2017, the company announced that the company has signed an agreement to purchase land in Kern County, California, expanding its asset base in preparation for California's January 1, 2018 "Green Rush." MCIG is expanding its business model to include cultivation, production, and distribution. The proposed initial build out in California will cover 50,000 square feet of greenhouse cultivation space that can produce 1,600 lbs and generate conservatively $2.4m a month in revenues.

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