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Legal Supply Channels are Expected to Show Big Growth in Cannabis Markets

V.ENTG, AXIM, T.CRON

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, June 29, 2018 /PRNewswire/ --

According to a report by Ameri Research Inc., the global legal cannabis market was valued at USD 14.3 Billion in 2016 and is projected to grow at a CAGR of 21.1% between 2017 and 2024, while also reaching a value of USD 63.5 Billion by 2024. The cannabis industry is presently in strong growth mode, as legalization and decriminalization of cannabis products across North America are spreading. The report also indicates that legalization trends are moving beyond the U.S. region; data by Arcview Market Research shows that the growth of the legal cannabis industry is expected to re-accelerate in 2018, as adult-use sales ramp up in Canada, California, and Massachusetts, along with first-time medical sales in Florida. Additionally, Canada had legalized cannabis nationally on June 19 th of this year. WeedMD Inc. (OTC: WDDMF), Intec Pharma Ltd. (NASDAQ: NETC), Therapix Biosciences Ltd. (NASDAQ: TRPX), Axim Biotechnologies, Inc. (OTC: AXIM), Cronos Group Inc. (NASDAQ: CRON)

Citing another report from Deloitte, nearly two-thirds of current cannabis consumers are likely to buy cannabis products from a legal channel. Jennifer Lee, Partner, Cannabis National Leader, and Consumer Advisory and Analytics Practice National Leader, said: "Most current and likely cannabis consumers want a variety of products offered at reasonable prices from suppliers who can vouch for the safety and origin of those products. Cannabis companies will need to have secure supply chains to protect the quality and integrity of their products, and retailers will need to meet consumer expectations, including providing a positive, engaging retailing experience and protecting the privacy of their customers, especially online."

WeedMD Inc. (OTC: WDDMF) is also listed on the Toronto Stock Exchange Venture under (TSX-V: WMD). Earlier this week the Company announced, "that the first batch of cannabis plants have been transplanted to its modern greenhouse located in Strathroy, Ontario and are scheduled for harvest by September 2018.

'Our initial crop of plants successfully entered our recently-licensed Strathroy greenhouse last week and our first 10,000 sq. ft. grow room is now fully operational,' said Keith Merker, Chief Financial Officer of WeedMD. 'With this hybrid, large-scale, modern greenhouse, we will be able to produce quality cannabis with maximum efficiency. This facility will be the prominent source of supply for our medical cannabis patients and for future adult-use consumers across Canada and emerging international markets. I want to acknowledge and thank our incredibly dedicated, passionate and experienced best-in-class cultivation team.'

Strathroy Greenhouse Facility Updates : 

  • Secured Health Canada cultivation license for the first four grow rooms at its Strathroy facility on June 11th, 2018.
  • Initial harvest expected by September 2018.
  • Phase I, 220,000 sq. ft. retrofit is scheduled for completion this fall, with plans to progressively bring a total of 20 grow rooms online expanding annual production to more than 21,000 kg.
  • Phase II fully-funded expansion is underway with an incremental 175,000 sq. ft. conversion representing additional potential annual yield of more than 12,000 kg, bringing the total to more than 33,000 kg by this year-end.
  • Phase III involves retrofitting the remaining 215,000 sq. ft., bringing total square footage to 610,000 sq. ft, and total annual production capacity to more than 50,000 kg.

For more information, access our investor presentation here and corporate video here."

Intec Pharma Ltd. (NASDAQ: NETC) is a clinical-stage biopharmaceutical company focused on developing drugs based on its proprietary Accordion Pill platform technology. The Company recently announced financial results for the three months ended March 31, 2018. The Company raised approximately USD 37.5 Million in a public offering of 6.75 Million ordinary shares and 400,000 ordinary shares following the exercise of part of the underwriters' over-allotment option. Furthermore, Jeffrey A. Meckler, Vice Chairman and Chief Executive Officer of Intec Pharma., said, "Following on favorable PK data from our Phase 1 study of AP-CBD/THC, which combined two key components of cannabis, we are moving forward with a series of Phase 1 PK studies of each of these components alone and in combination. We will initiate the AP-THC study in the second half of 2018. We believe that exploring the individual components of cannabis provides the potential to pursue additional opportunities in target pain indications."

Therapix Biosciences Ltd. (NASDAQ: TRPX) is a specialty clinical-stage pharmaceutical company specializing in the development of cannabinoid-based therapies, proprietary formulation for the treatment of CNS and pain disorders. The Company recently announced that the first subject was enrolled for its Phase IIa, sponsor-initiated clinical trial using the Company's cannabinoid-based technology THX-110 for Obstructive Sleep Apnea, at Assuta Medical Center, the largest private hospital network in Israel. The clinical trial is a single-arm, open-label trial, in which 30 subjects receive one daily treatment of the drug via oral administration and is followed-up for one month with the primary efficacy endpoint evaluating a significant change in the AHI. It is estimated by the American Academy of Sleep Medicine that 12 percent of the U.S. adult population suffer from OSA, and the economic burden of undiagnosed sleep apnea in the United States alone is at nearly USD 150 Billion annually.

Axim Biotechnologies, Inc. (OTCQB: AXIM), a world leader in cannabinoid research and development, today announced that the company has secured additional funding needed to further its clinical development program through S-3 stock purchases. "This financing highlights our investor's confidence in AXIM and our potential for success in cannabinoid-based pharmaceutical research," said George E. Anastassov, MD, DDS, MBA and Chief Executive Officer of AXIM Biotech. "This deal will allow AXIM to move forward with a number of clinical projects including our bio-equivalent dronabinol chewing-gum based product and the MedChewRx™ program for treatment of pain and spasticity in Multiple Sclerosis patients."

Cronos Group Inc. (NASDAQ: CRON) is a globally diversified and vertically integrated cannabis company with a presence across four continents. The Company operates two wholly- owned Canadian licensed producers regulated under Health Canada's Access to Cannabis for Medical Purposes Regulations. Cronos Group recently announced it will hold its 2018 Annual and Special Meeting of Shareholders on Thursday, June 28, 2018 at 9:30 a.m. at the offices of Blake, Cassels & Graydon LLP located at 199 Bay Street, Suite 4000, Commerce Court West, Toronto. A live audio webcast and replay of the meeting will also be available in the investor relations section of the Company's website.

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