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Data Projects That Nationwide Cannabis Retail Sales to Surpass USD 20 Billion by 2022

CRXPF, T.XLY, GBLX

FinancialBuzz.com News Commentary

PR Newswire

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

According to a research report provided by Marijuana Business Daily, cannabis retail sales continue to grow year-over-year as new markets appear and more states legalize medical and recreational cannabis products. Sales in 2018 are expected to increase by approximately 50% compared to 2017. Sales value is on track to reach USD 8 Billion - USD 10 Billion by the end of this year. The report also indicates that by 2022, annual retail cannabis sales in the United States could surpass the USD 20 Billion mark, a 200% increase from 2017. As for the economic impact that the growing industry is set to have, the data predicts an estimated USD 28 Billion - USD 34 Billion of economic impact in 2018. Crop Infrastructure Corp. (OTC: CRXPF), Auxly Cannabis Group Inc. (OTC: CBWTF), United Cannabis Corporation (OTC: CNAB), GB Sciences Inc. (OTC: GBLX), mCig Inc. (OTC: MCIG)

On June 19th, 2018, Canada passed a nationwide legalization of recreational cannabis usage, following Uruguay to become the second nation to do so. 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." Mr. Dean 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 markets."

Crop Infrastructure Corp. (OTC: CRXPF) is also listed on the Canadian Securities Exchange under the ticker (CSE: CROP). Earlier today the company announced breaking news that, its 30% owned Italy Joint Venture partner "XHemplar Italia" has planted 25 acres or 1,089,000 square feet of high CBD "Cannabis Light" in North Eastern Italy. This represents over a 100% increase on the previously announced capacity announced in press release dated June 27th 2018.

The Joint Venture's resulting high CBD "Cannabis Light" will be processed and sold into international CBD markets under white label, the venture's house name XHemplar and Crop brands Tiffany CBD and Hempire Italia. The company will also use the production to infuse its recently announced therapeutic and cosmetic product lines, licensed from The Yield Growth Corp., which transaction is now complete giving Crop exclusive rights in Italy to over 55 wellness products.

According to Arcview Market Research and its partner, BDS Analytics, government-subsidized health care spending (worldwide market at $1.3-trillion) is expected to make Europe among the fastest growing and largest medical cannabis markets in the world. Arcview expects Italy to be the second largest cannabis market in Europe by 2027 with $1.2 billion in sales.

CROP Infrastructure Director & CEO Michael Yorke states: "The company is extremely encouraged by the fast pace with which the team at XHemplar has commenced production in Italy. CROPs portfolio of cannabis infrastructure assets now includes cultivation properties in California, Washington State, Nevada, Italy and joint ventures on West Hollywood and San Bernardino dispensary applications. CROP has developed a portfolio of 15 Cannabis brands and also has US and Italian distribution rights to a line of over 55 cannabis topical products. Management will continue to aggressively pursue new world-wide opportunities and expand its portfolio of tenant growers and infrastructure assets in strategic licensed jurisdictions."

XHemplar Chairman and CROP Infrastructure VP of M&A, EMEA Andrea Castiglione states: "This is a great start for the company in Italy. We are pleased by how quickly our joint venture team has worked together to begin this initial production."

About XHemplar: Hemplar is a joint venture between CROP Infrastructure Stratto, LLC and the AnCaPa SRL of the prominent Castiglione family. This endeavor will be led locally by the CEO of XHemplar Giuseppe Castiglione who has spent the past 30 years in National and International politics roles ranging from Vice President of Sicily - with special delegation on Agriculture and Industrial development - to member of the European Parliament - where he acted as head supervisor of the European Wine Reform - to Vice Minister of Agriculture and Forestry Politics for the Italian central government in three consecutive legislatures. As an agricultural company XHemplar enjoys substantially lower tax rates with 4% VAT in Italy from which the company will greatly benefit in these early stages.

Auxly Cannabis Group Inc. (OTCQX: CBWTF) is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Recently, the Company provided the following construction development update on the joint venture with FV Pharma Inc., a wholly-owned subsidiary of FSD Pharma Inc., at the former Kraft food-production facility located in Cobourg, Ontario. The Facility hosts an initial 620,000 sq. ft. of building space, a portion of which is currently licensed for cultivation, pursuant to the Access to Cannabis for Medical Purposes Regulations and can support additional expansion capacity of approximately 3,800,000 sq. ft. on the existing property, pending completion of all phases of the project. Chuck Rifici, Chairman and Chief Executive Officer of Auxly commented, "As Canada moves towards legalization of adult-use cannabis and meaningfully expands its medical cannabis program, Auxly remains committed to cultivating quality cannabis flower at a meaningful scale. Cultivating cannabis requires a significant amount of energy in order to ensure proper growing conditions and this is one of the main contributors to overall operations costs. The technological advancements to be implemented at the facility provide us with flexibility in terms of securing a stable supply of energy while maintaining competitive operating costs relative to the rest of the industry."

United Cannabis Corporation (OTCQB: CNAB) is a biotechnology company dedicated to the development of phyto-therapeutic based products supported by patented technologies for the pharmaceutical, medical, and industrial hemp markets. The Company recently announced that the South African Patent Office has declared effective the Company's patent application based upon PCT/US2015/056635, and pursuant to the Patent Cooperation Treaty (PCT), for "Cannabis Extracts and Methods of Preparing and Using Same." The processes included in the filing are integral to the Company's branded products, including the Prana Bio Nutrient Medicinals line, and comprise the application of strain specific ratio based phytocannabinoids, cannabinoids, chemical-free extractions, and the use of cannabis derived terpenes in the medical and pharmaceutical delivery methods including capsules, sublinguals, topicals, transdermal applications, supplements, edibles, aerosol sprays, nebulizers, inhalers, aromatherapy, suppositories, and vaporization. Earnest Blackmon, United Cannabis' Chief Executive Officer, commented on the approval: "South Africa is one of many markets where medical marijuana is viewed favorably, and we look forward to establishing a strong presence there, and making our Prana products available to qualified patients across the country. As we continue to move into new markets it's important that we protect our innovations and the investment that we have made in product development, so we are very pleased that the South African Patent Office has approved our patent application."

GB Sciences Inc. (OTCQB: GBLX) is a diverse cannabis company, focused on standardized cultivation and production methods, as well as biopharmaceutical research and development. GB Sciences recently announced the filing of a new provisional patent application on the use of cannabis-based therapies for the manipulation of cannabis-sensitive ion channels in sensory neurons that contribute to chronic inflammatory pain conditions, peripheral neuropathy, urinary cystitis, asthma, and specific types of hearing loss. The GB Sciences drug development team believes that these new cannabis-based treatments could well herald the dawning of 'individualized medicines' from the cannabis plant by re-establishing balance in each individual patient's endocannabinoid system. "Manipulating the TRP channels in sensory neurons could provide much needed relief for patients who are suffering from chronic pain, asthma, urinary cystitis, or hearing loss," explains Dr. Andrea Small-Howard, Chief Science Officer of GB Sciences. "The ability to use specific combinations of cannabinoids and terpenoids to modulate TRP ion channels in sensory neurons could usher in the beginning of a new era of precision medicines derived from the cannabis plant."

mCig Inc. (OTC: MCIG) is a diversified company servicing the legal cannabis, hemp, and CBD markets via its lifestyle brands. The Company recently provided an update for its HEMP project and the new line of CBD products, soon to be hitting the markets. "NYAcres Project growing 40 acres of Industrial Hemp- a CBD concentrated organic variety called Cherry Wine - is on target with projections to yield 55,000 pounds of flower for production of organic CBD oil. Five fields are planted and secured on the 220-acre organic certified farm with daily maintenance and irrigation to mitigate mother nature's whims and cross pollinated with organic honey bees to strengthen conditions for production. This summer Hudson Valley's long hot sunny days and cool nights are ideal for growing conditions," said Chief Executive Officer, Tessa Edick of NYAcres. "With different Company divisions getting a traction and starting to show a real growth we finally decided to jump start our CBD division with an introduction of a new line of hemp products, that will include natural skin cosmetics, full spectrum tinctures and probiotic pet's edibles. Today we have all the right pieces in place together: a hemp farm run by professional farmers, experienced research and development team, led by Arkady Uryash, MD PhD, and strong goal-oriented sales and marketing team. The big role in our growth strategy will play online sales, where the Company will introduce its new online store but also a marketplace of CBD products from different manufactures, long awaited project, that only now can be a success with having on board a new team of professionals," said mCig Inc. Chief Executive Officer, Paul Rosenberg.

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