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Global Cannabis Market Grows With UK Legalization of Cannabis-derived Medical Products

NEPTF

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, October 4, 2018 /PRNewswire/ --

According to data provided by Technavio, the global legal cannabis market is projected to grow at a steady CAGR of about 24% until 2021. The widespread proliferation of cannabidiol (CBD) oil products is one of the primary growth factors of the legal industry. The research indicates that the medical applications of CBD, as well as the growing recognition of it as a medical product, is largely the reason this segment of the industry is witnessing a drastic increase in popularity. Technavio's Research analysis on the global CBD oil market explains that CBD oil is highly recommended because it can suppress the growth of cancer cells and helps in the fight to prevent cancer. Focusing on the CBD segment, the research predicts that it will grow at a CAGR of more than 39% by 2021. Chemesis International Inc. (OTC: CADMF), KushCo Holdings, Inc. (OTC: KSHB), Neptune Wellness Solutions Inc. (NASDAQ: NEPT), Emerald Health Therapeutics, Inc. (OTC: EMHTF), Terra Tech Corp. (OTC: TRTC)

North America accounts for the largest share of the global cannabis market, while the European market is growing rapidly. Recently, the United Kingdom legalized cannabis-derived medicinal products prescriptions. According to Marijuana Business Daily, Deepak Anand, Vice President of the consultancy, Cannabis Compliance, said: "This is a significant step. With a population of 65 Million people, it's a massive potential market for medical cannabis. The U.K. has also been the largest exporter of medical cannabis in the world, despite not having a regulated federal medical cannabis program."

Chemesis International Inc. (OTC: CADMF) is also listed on the Canadian Securities Exchange under the ticker (CSE: CSI). Earlier last week, the Company announced breaking 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."

KushCo Holdings, Inc. (OTCQB: KSHB) is the parent company to a diverse group of business units that are transformative leaders in the cannabis, CBD and other related industries. KushCo recently announced that the Company is changing the name of its Kush Bottles division to Kush Supply Co., effective October 1st, 2018. "At the Company's inception in 2010, we found a niche in the market, filling robust demand with our unique bottles and child-resistant packaging, which were predominantly utilized for flower - the most prevalent form of cannabis consumption at the time," said Nick Kovacevich, KushCo's Chief Executive Officer. "While our bottles and packaging offering remains a large piece of our business, growing demand for supplies like concentrate packaging and vape hardware, along with new innovative custom solutions for brand building in retail, ultra-pure gas and solvents, and a more holistic approach to the cannabis supply chain resulted in a shift of what we offer to support the burgeoning cannabis market. Our name change more accurately reflects our dynamic offerings in response to the dramatic growth of the industry."

Neptune Wellness Solutions Inc. (NASDAQ: NEPT) is a health and wellness products company, with more than 50 years of combined experience in extraction, purification and formulation of value-added differentiated science-based products. Neptune Technologies & Bioressources Inc. (recently changed to Neptune Wellness Solutions Inc.) recently announced that it has received a Confirmation of Readiness letter from Health Canada in regard to its application to become a Licensed Producer under the ACMPR (Access to Cannabis for Medical Purposes Regulations). "This key milestone brings us to the threshold of becoming a Licensed Producer of cannabis oil in Canada, and is a very exciting moment," said Jim Hamilton, President & Chief Executive Officer of Neptune. "Our entry into the legal cannabis industry leverages our established expertise in the development of innovative Omega3 oil products, navigating global regulatory frameworks, worldwide commercialization of wellness solutions, and production of high-quality extracts, as well as our state-of-the-art Good Manufacturing Practices (GMP)-certified facility in Sherbrooke, truly providing us with a strong competitive edge to become a leading player in this burgeoning market".

Emerald Health Therapeutics, Inc. (OTCQX: EMHTF) is a Licensed Producer under Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR) and produces and sells dried cannabis and cannabis oil for medical purposes. Recently, Emerald Health Therapeutics, Inc. has agreed to purchase from Emerald Health Hemp Inc. (EHH) CBD-containing hemp biomass for extraction into CBD oil. EHH has established agreements to purchase approximately 500 acres of harvested hemp chaff, plant material consisting mainly of flower and leaf, in Manitoba and Prince Edward Island in 2018, with a plan to expand field operations in 2019. Emerald has signed an agreement with EHH to purchase approximately 500 acres of chaff in 2018 and approximately 1,000 acres in 2019 to 2022, with an option to renew for an additional two-year period. The hemp chaff will be processed via Emerald's exclusive alliance with Factors R&D Technologies Ltd., a division of Factors Group of Nutritional Companies Inc., which has extensive extraction experience and large capacity. "We see non-smoked, non-psychoactive CBD consumption as a major growth opportunity in both the medical and adult-use market in Canada, and our Factors Group alliance uniquely positions us with the largest biomass extraction and softgel encapsulation facility in Canada to produce value-added products to serve this market," said Chris Wagner, Chief Executive Officer of Emerald. "Our intent is to secure significant low-cost cannabinoid supply to serve all our manufacturing and marketing goals and hemp is expected to be our lowest cost source of CBD. We are very pleased with the rapid advancement of our Pure Sunfarms production joint venture with Village Farms and our St. Eustache facility in Quebec. Our collaboration with Emerald Health Hemp now expands our ability to produce CBD products."

Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX, Inc., Edible Garden, and MediFarm LLC. The Company recently announced that the City of Santa Ana has granted its East Dyer Road, East Carnegie Avenue and South Tech Center Drive locations vertically-integrated Phase I permits. These permits allow the Company to commence development of cultivation, manufacturing and distribution capabilities at these locations. Moreover, upon completion of the build-out of each location's facilities, they also confer upon the Company the right to apply for Phase II permits which are needed to commence commercial activities. Derek Peterson, Chairman and Chief Executive Officer, commented, "We have successfully capitalized on our first mover advantage to expand our portfolio of cannabis permits in Santa Ana to now include three vertically-integrated Phase I permits, in addition to the retail permits for Dyer Road and Carnegie Avenue that we obtained in July of this year and the retail permit associated with our fully-operational Blüm dispensary on Tech Center Drive. Now that we have these permits, the Company is free to commence construction of its cultivation and extraction facilities at all three of these locations. Southern California is a major cannabis market and we are excited to pursue this opportunity which will allow us to increase production volumes of our premium IVXX-branded wholesale cannabis products, including producing cannabis-infused, non-alcoholic beverages at the Dyer Road facility."

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