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Canadian Cannabis Legalization Helps to Deter Illegal Markets

CRXPF, FFRMF

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, June 22, 2018 /PRNewswire/ --

According to Grand View Research, the global legal cannabis market was valued at USD 9.3 Billion in 2016 and is expected to grow at a CAGR of 34.6% during the forecast period from 2018 to 2025. The market is expected to be driven by the widespread legalization in several countries, due to the high demand for both medical and recreational uses. Over the past several years, many companies have entered the market, either licensed as a cultivator, producer or retailer, yet most cannabis sales are gained illegally. However, governments have begun to legalize cannabis products, in an effort to curb illicit sales and reap the benefits through taxation. Crop Infrastructure Corp. (OTC: CRXPF), MYM Nutraceuticals Inc. (OTC: MMYMF), Emblem Corp. (OTC: EMMBF), Future Farm Technologies Inc. (OTC: FFRMF), mCig Inc. (OTC: MCIG)

Canada has passed a nationwide legalization of recreational cannabis usage on June 19th, 2018, following in the footsteps of Uruguay to become just the second nation to do so. The U.S. had previously already begun the process of cannabis legalization for the majority of the West Coast states, while almost all states have medical use legalized to an extent. According to the New York Times, Tony Dean, the Senator who sponsored the bill in the chamber, said that, "We've just witnessed a historic vote for Canada, the end of 90 years of prohibition. Now we can start to tackle some of the harms of cannabis." He continued, "We can start to be proactive in public education. We'll see the end of criminalization and we can start addressing Canada's USD 7 Billion illegal market."

Crop Infrastructure Corp. (OTC: CRXPF) is also listed on the Canadian Securities Exchange under the ticker (CSE: CROP). On June 19 th, the company announced that, "its tenant grower "HEMPIRE COMPANY LLC" has received final approval for an additional twenty thousand (20,000) square feet of recreationally licensed canopy space from CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA) for the Humboldt California Campus as announced on May 9 th, 2018.

The Humboldt Campus consists of an operational 10,000 square foot medicinal cannabis greenhouse facility and has now obtained an additional 20,000 square feet of recreational licensed canopy. It is expected that the HEMPIRE COMPANY LLC will commence plant population in June/July 2018."

CROP Infrastructure Director & CEO, Michael Yorke, states: "With the approval of this additional twenty thousand square feet, the Humboldt Campus will triple in size and tenant production capacity. CROP's portfolio of cannabis infrastructure assets includes two Washington State facilities as well as the Humboldt campus in California, the largest cannabis market in the world. Management will continue to aggressively pursue new worldwide opportunities and expand its portfolio of tenant growers and infrastructure assets in strategic licensed jurisdictions."

MYM Nutraceuticals Inc. (OTCQB: MMYMF) is an innovative company focused on acquiring Health Canada licenses to produce and sell high-end organic medicinal cannabis supplements and topical products. The Company recently announced that, together with the Mayor of Weedon, Mr. Richard Tanguay, it has officially broken ground on the construction of its 1.5 Million square foot greenhouse project in Weedon, Quebec. Work has started on clearing the land and constructing two buildings, including an initial greenhouse that will be used to support the request for certification to Health Canada which is part of the current license application. This phase will be completed by the end of 2018. Mr. Gietl explained that the Quebec and Canadian governments will receive significant tax revenues. Over 15 years, these projects will generate tax revenues of USD 495 Million for the Quebec government and of USD 280 Million for the Canadian government. The Weedon mayor expressed his elation to see that construction has finally begun. "The municipality of Weedon will become one of the most important production sites for medical cannabis in the world. Thinking of all the new jobs and businesses that the facility will bring to the region fills me with hope. I couldn't be happier than today." MYM's CEO, Rob Gietl, added,"The arrival in Weedon of new team members hired in connection with the project; and the appointment of Mr. Fabian Garcia as a Project Manager in Weedon. These events clearly indicate that this project has now reached its cruising speed. We're up and running."

Emblem Corp. (OTC: EMMBF), through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR). Emblem Corp. recently announced that its Board of Directors has approved the Company's formation of a joint venture under the name "Emblem Germany" with German pharmaceutical wholesaler Acnos Pharma GmbH, for the purpose of exporting Emblem branded cannabis products from Canada and importing them into Germany. Subject to completion of definitive agreements with respect to the JV, the JV will be 60% owned by Emblem and 40% owned by Acnos. Subject to all applicable regulatory approvals and the entering into of definitive agreements setting out the terms of the JV, Emblem will supply the JV with cannabis oil for sale to German pharmacies, wholesalers and clinical labs for medical purposes. Teams from both companies are actively working to prepare and finalize definitive agreements setting out the terms of the JV, with the objective to commence export sales to Germany in 2019. "Forming Emblem Germany with Acnos supports our market development efforts to establish world-class distribution channels in the regions where cannabis use is federally legal," said Nick Dean, President and CEO of Emblem.

Future Farm Technologies Inc. (OTCQX: FFRMF) is a Canadian company with holdings throughout North America, including California, Massachusetts, Florida, Maine, Puerto Rico and Newfoundland. The Company's mission is to advance sustainable agriculture through the production of wholesale and retail cannabis products, including hemp. Future Farm Technologies Inc. recently announced that the build-out of its cultivation and extraction operation in Attleboro, Massachusetts has entered the next phase of development with the procurement of bids from general contractors. The Company also announced the demolition of the interior of its Providence, Rhode Island building, which allows for the build-out of a cultivation facility to commence in earnest. As previously announced, the Company intends to lease this property to a local, licensed cultivator who will use the property as a licensed medical marijuana cultivation space, providing wholesale cannabis to Rhode Island's state-sanctioned dispensaries "Southeastern Massachusetts and Providence, Rhode Island are traditionally underserved areas in the New England cannabis ecosystem," said Chief Project Manager Derek Ross. "We are now positioned to make a significant contribution to a part of the country struggling to keep up with supply demands, especially as Massachusetts progresses towards adult use and Rhode Island contemplates licensing twelve additional dispensaries, potentially leaving both states very unprepared from a supply perspective. We expect to change that landscape in a few short months."

mCig Inc. (OTC: MCIG) is a diversified company servicing the legal cannabis, hemp, and CBD markets via its lifestyle brands. mCig, Inc., recently announced that its construction and consulting division has secured yet another exclusive management contract with a client in Costa Mesa, CA, bringing its total to three cultivation and manufacturing facilities in cannabis. MCIG's construction and consulting division will now be overseeing operations throughout California in Palm Springs, Sacramento and Costa Mesa. Under terms of the new management agreement, MCIG will receive 10% of all proceeds. In addition to the new management agreement, MCIG's construction division has begun concept designs for the facility in California City, where MCIG has a cultivation, manufacturing, and distribution license for cannabis products. Rob Kressa, Grow Contractors CEO, stated, "We continue to grow a highly competitive footprint in the State of California. We are building a consortium of clients that will provide access across the entire state and connect the many services needed to have a successful and profitable operation, for MCIG and MCIG's clients."

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