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Canadian Cannabis Market is Projected to Rival California's

V.ENTG, CARA, T.CRON, CVSI

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, July 11, 2018 /PRNewswire/ --

According to a research provided by New Frontier Data, the legal cannabis market was worth an estimated USD 8.3 Billion in 2017 and is projected to grow at a compound annual growth rate (CAGR) of 14.7%, to reach an estimated USD 25 Billion by 2025. The medical cannabis market is projected to grow at a CAGR of 11.8% through 2025, while sales of cannabis products for recreational use are set to grow at a 18.4% CAGR, from USD 3.2 Billion in 2017 to USD 12.5 Billion by the end of the forecast period. The research indicates that the data provided is based on the number of states that legalized cannabis for medical or recreational as of January 2018 and does not include assumptions of additional states legalizing cannabis by 2025. WeedMD Inc. (OTC: WDDMF), Cara Therapeutics Inc. (NASDAQ: CARA), Cronos Group Inc. (NASDAQ: CRON), Emerald Health Therapeutics Inc. (OTC: EMHTF), CV Sciences Inc. (OTC: CVSI)

On June 19th, Canada has legalized cannabis on a national level, and is now the first G20 nation to do so. New Frontier Data Founder & CEO, Giadha Aguirre de Carcer, explained, "New Frontier Data projects the domestic Canadian cannabis market will reach CAD 9.2 Billion by 2025. Combined, the Canadian medical and adult-use markets will rival that of California - which boasts the 6th largest overall economy internationally. Canadian usage rates in the medical market are higher on average than in the U.S. When the adult-use Canadian market opens the combined domestic and international opportunities will increase dramatically and create new momentum around the world."

WeedMD Inc. (OTC: WDDMF) is also listed on the Toronto Stock Exchange Venture under (TSX-V: WMD). Earlier last week, the Company announced breaking news that, "it has entered into an agreement with the Alberta Gaming, Liquor & Cannabis Commission ("AGLC") to supply the province with high-quality, branded cannabis products for sale in Alberta's adult-use market.

'We're proud that the AGLC has selected WeedMD as a cannabis supplier to join its network as it looks to establish a cannabis framework for its adult-use markets,' said Keith Merker, Chief Financial Officer of WeedMD. 'This represents a strategic partnership as we look to expand our product reach across the country to support Canada's legal adult-use market. Alberta's high standards align with the highly-regarded quality of our cultivation standards, product portfolio, and commercial practices as we look to meet the expected demand of this new market.'

WeedMD will supply the Alberta market with cannabis products starting the first day of legal sales. This agreement represents a key milestone in WeedMD's strategic plan to develop a national distribution platform for the Company's medical and adult-use products, building upon the recent announcement of WeedMD's supply agreement with Shoppers Drug Mart. WeedMD is actively working with provincial distributors, regulators, and retailers to expand its adult-use distribution program, particularly as the Company completes the final stages of its 220,000 sq. ft. greenhouse retrofit within its 610,000 sq. ft. greenhouse facility in Strathroy, Ontario. For more information, access our investor presentation here and corporate video here."

Cara Therapeutics Inc. (NASDAQ: CARA) is a clinical-stage biopharmaceutical company focused on developing and commercializing new chemical entities designed to alleviate pruritus and pain by selectively targeting peripheral kappa opioid receptors (KORs). The Company recently announced positive top-line data from the adaptive Phase 2/3 trial of I.V. CR845 in patients undergoing abdominal surgeries. At the 1.0 mcg/kg dose, I.V. CR845 demonstrated statistically significant reductions in pain intensity compared to placebo at all pre-specified post-operative periods of 0-6 hours (p=0.001); 0-12 hours (p=0.004); 0-18 hours (p=0.013); and 0-24 hours (p=0.032). Additionally, I.V. CR845 treatment resulted in statistically significant reductions in the incidence of post-operative nausea and vomiting over the 24-hour period post-surgery for both 0.x5 and 1.0 mcg/kg doses (p=0.006; p<0.0001, respectively). "We are very pleased that these data demonstrate the overall benefit of I.V. CR845 in both providing pain relief across surgery types up to 24 hours post-surgery and reducing post-operative nausea and vomiting, a significant medical need in the post-operative setting," said Derek Chalmers, Ph.D., D.Sc., President and Chief Executive Officer of Cara Therapeutics. "As there continues to be a critical need for new post-surgical analgesics like I.V. CR845 that lack abuse potential and traditional mu opioid side effects, we will be assessing all options, including discussions with regulators, as to how to best move this program forward."

Cronos Group Inc. (NASDAQ: CRON) is a globally diversified and vertically integrated cannabis company with a presence across four continents. On June 25, 2018, the Company announced that it has entered into a strategic distribution partnership with Delfarma Sp. Zo.o. Founded in 2004, Delfarma is a privately owned pharmaceutical wholesaler and was the first company in Poland to introduce international parallel import of medicinal products from European Economic Area countries. Delfarma distributes directly to over 5,000 pharmacies and more than 200 hospitals, a distribution network that reaches approximately 40% of the Polish domestic market. Under the initial five-year exclusive distribution agreement, Cronos Group's global subsidiaries will supply Peace Naturals branded cannabis products to Delfarma for distribution within Poland.

Emerald Health Therapeutics Inc. (OTCQX: EMHTF) is a Licensed Producer under Canada's Access to Cannabis for Medical Purposes Regulations and produces and sells dried cannabis and cannabis oil for medical purposes. Emerald Health Therapeutics Inc. and Village Farms International Inc. announced on June 27th, 2018 that their 50/50 joint venture for large scale, low-cost, high-quality cannabis production, Pure Sunfarms, received from Health Canada an amendment to its cultivation license for its Delta 3 greenhouse in Delta, BC. This amendment permits Pure Sunfarms to substantially expand its cannabis production to 225,000 sq. ft. of the 1.1 Million sq. ft. Delta 3 production facility. In mid-May, Pure Sunfarms initiated commercial-scale production on 130,000 sq. ft. at the Delta 3 greenhouse, which is now fully utilized, with harvesting expected to begin in August. Planting in the newly-licensed area will commence this week and is expected to be completed by the end of July. Pure Sunfarms expects to have the full 1.1 Million sq. ft. Delta 3 facility, one of the single largest cannabis growing facilities in the world, converted to cannabis production by year end. "The Delta 3 production facility is maturing at an outstanding pace thanks to our senior cultivation, financial, and operational teams. We are making great strides to achieve large-volume, high-quality, low-cost cannabis production and anticipate receiving our sales license before the onset of recreational sales on October 17th," said Chris Wagner, Director, Pure Sunfarms, and Chief Executive Officer of Emerald Health Therapeutics.

CV Sciences Inc. (OTCQB: CVSI) operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors. The Company recently announced the June 7, 2018 publication of the toxicology and safety results of an extract from the base raw materials used in its market leading PlusCBD Oil™ consumer products. The Company contracted respected scientific and regulatory consulting firm, AIBMR Life Sciences Inc., to conduct the battery of toxicological studies to investigate the safety of oral consumption of the Company's hemp cannabidiol (CBD) oil and to support a Generally Recognized as Safe (GRAS) Independent Conclusion. The Company's Chief Executive Officer, Joseph Dowling, echoed this sentiment, "We are thrilled to advance phytocannabinoid science and are very pleased with the safety results from this landmark study. This is an important milestone in our pursuit of GRAS status," he remarked.

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