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Recreational and Medical Cannabis Markets are Spreading Globally

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, September 25, 2018 /PRNewswire/ --

According to data compiled by Ameri Research, the global medical cannabis market was valued at USD 8.9 Billion in 2016. The market is projected to increase to USD 32.78 Billion while growing at a CAGR of 18.2% during the forecasted period from 2017 to 2024. The growth of the market is heavily attributable to the expansion of legalization and decriminalization of cannabis in North American and European regions. Other factors include tax revenues due to sales and tourism activities, as well other medical based applications. Medical cannabis is currently used to treat over 20 different conditions such as chronic pain, arthritis, cancer, multiple sclerosis and Alzheimer's. Chronic pain applications were the biggest segment for the medical marijuana market. The market is currently split into few different sector products such as powder, pills, oils, tinctures and others. Chemesis International Inc. (OTC: CADMF), CannaRoyalty Corp. (OTC: CNNRF), INSYS Therapeutics, Inc. (NASDAQ: INSY), iAnthus Capital Holdings, Inc. (OTCQX: ITHUF), Emblem Corp. (OTC: EMMBF)

North America currently accounts for almost half of the medical cannabis market, driving in 49% of market value. In the U.S. alone, which is also the single largest market, 28 states allow the sale of medical marijuana, while 9 of these states also allow recreational sales. However, other regions are beginning to become prominent as the widespread adoption expands rapidly. Canada has already implemented medical usage and just recently passed a bill to legalize recreational use nationwide. The next impending markets are European nations. In Europe, more than 10 countries allow the sale of medical cannabis, while many more are pending approvals. Some regions in Europe already allow for recreational usage, while some have imposed strict regulations and laws regarding the use. "It's this amazing case study for countries globally to see the amazing benefits that legalizing cannabis can have on things like the economy, eradicating the black market and getting cannabis out of the hands of minors," said Matt Gray, Founder and Chief Executive of Herb, a Toronto-based news and social media platform for the pot industry, according to NBCNews.

Chemesis International Inc. (OTC: CADMF) is also listed on the Canadian Securities Exchange under the ticker (CSE: CSI). Just earlier this morning, the company announced breaking cannabis news that, it will be entering into the cannabis infused beverages market. Chemesis will leverage licences and assets it has recently acquired to build out production, storage, and a transportation network for its cannabis infused beverages. The cannabis beverages category includes sports drinks, teas, sodas, coffees, shots, water, and other health and wellness beverages.

With cannabis sales projected to triple from approximately $5.4 billion USD in 2015, to $16 billion USD in 2020, according to a market research, Chemesis sees a significant growing opportunity in the beverages market . Entering into the cannabis beverages market is the next logical step for the Company, as its current facilities and licenses allow this to be accomplished in a relatively short period of time. The Company can accomplish this by leveraging its state licenses for production, distribution, and transportation. Chemesis intends to provide white labelling services for companies, as well as introducing beverages for its own brands. Chemesis will be using the recently acquired Desert Zen Fulfillment facility for this expansion and anticipates products to be launched in Q1 2019.

"Entering into the cannabis infused beverage market is an extremely important step for Chemesis," said CEO Edgar Montero. "The cannabis market is expanding into more product categories, and Chemesis is identifying opportunities that will build long term value and consistent revenues. Our existing licenses and facilities will allow us to expand our portfolio of products without the added regulatory delays. The company will continue to ensure it expands and creates a footprint in markets and product spaces that align with our ambitious business plan."

About Chemesis International Inc. - Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently operating within Puerto Rico, and California. Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution, and retail. Chemesis has facilities in both Puerto Rico and California, allowing for cost effective production and distribution of its products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods, to provide consumers with quality cannabis products. Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently delivering quality product to its consumers from seed to sale.

CannaRoyalty Corp. (OTCQX: CNNRF) is a North American cannabis consumer product company currently focused on building a leading distribution business in California, the world's largest regulated cannabis market. CannaRoyalty Corp. and its subsidiary, Trichome Financial Corp., have recently announced that 420 Wellness, a subsidiary of investee 180 Smoke, has been approved by the City of Calgary to open its first cannabis dispensary in the city, pending approval from the Alberta Gaming and Liquor Commission ("AGLC"). "180 Smoke's capital-efficient retail model has enabled the company to grow store count while maintaining an authentic consumer experience. They have created a niche in the minds of discerning vape and cannabis consumers in Canada, while maintaining one of the highest trafficked vape website in Canada. We initially invested in 180 Smoke due to the strength of both the existing vape operations as well as the upside we saw with impending adult-use cannabis legalization in Canada. We expect continued growth and expansion from 180 Smoke and congratulate the team on being selected among numerous applicants to open a Calgary location. I speak for both CannaRoyalty and Trichome when I say we are confident that this investment will generate value for CannaRoyalty's shareholders both as a standalone investment and strategically as CannaRoyalty looks to build-out its Canadian operations in the near-term," said Marc Lustig, Chairman and Chief Executive Officer of CannaRoyalty.

INSYS Therapeutics, Inc. (NASDAQ: INSY) is a specialty pharmaceutical company that develops and commercializes innovative drugs and novel drug delivery systems of therapeutic molecules that improve patients' quality of life. The Company has recently announced that announced that its clinical development collaboration with the Center for Medicinal Cannabis Research (CMCR) at UC San Diego School of Medicine has expanded to include plans for a new study to explore the effectiveness of the company's proprietary cannabidiol (CBD) oral solution on symptoms, neurocognition, neuroimmune response and eating behavior in patients with early psychosis. As part its R&D program, the company has ongoing clinical trials of CBD oral solution as an investigational treatment for childhood absence epilepsy (Phase 2), infantile spasms (Phase 3) and Prader-Willi syndrome (Phase 2). INSYS strategically pursues collaborations to augment its internal R&D.

iAnthus Capital Holdings, Inc. (OTCQX: ITHUF) owns and operates best-in-class licensed cannabis cultivation, processing and dispensary facilities throughout the United States, providing investors diversified exposure to the U.S. regulated cannabis industry. iAnthus Capital Holdings, Inc. recently provided the following summary of updates to inform shareholders and stakeholders of developments and achievements at GrowHealthy, the Company's Florida medical marijuana operation that was acquired earlier this year. "As we prepare to open the first of our Florida dispensaries, we have made significant investments to upgrade our Lake Wales cultivation facility to quickly scale production and meet the expected demand," said Carlos Perea, Chief Operating Officer at iAnthus. "This expansion puts GrowHealthy in an excellent position to capitalize on the explosive growth in the Florida medical marijuana market and become one of the state's preeminent providers of medicinal cannabis products."

Emblem Corp. (OTCQX: 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. along with Canntab Therapeutics Limited, recently announced that they have achieved a milestone with regards to the development of a patent-pending oral extended release formulation for cannabinoids. "Emblem's strength in the medical market is further solidified by achievement of this major milestone. We believe the oral extended release formulation will be a game-changer in the medical cannabis market and that Emblem, through its license agreement with Canntab, is at the forefront of this development," said Nick Dean, Chief Executive Officer. "Precise, dose-controlled cannabis medications are critical to the acceptance of cannabis among prescribers and patients. Emblem has long been a medical-first LP and our first and foremost commitment is to our patients. Innovative cannabis products for both the medical and adult-use space are fundamental to our long-term strategy, alongside brand building and distribution."

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