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U.S. Medical Cannabis Market Set to Grow with Increasing Global Cannabis Usage

FFRMF, C.THC, KAYS

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, October 18, 2018 /PRNewswire/ --

According to a report from Hexa Research, the U.S. medical cannabis market is expected to grow from USD 5.44 Billion to reach USD 19.48 Billion by 2024. The market is growing rapidly, owing in part to the rising demand for medical cannabis, which is now legal in 39 U.S. states. Medical cannabis is now used in the treatment of various maladies, such as cancer, arthritis, epilepsy, nausea, pain, Alzheimer's disease, anorexia and multiple sclerosis, while the chronic pain segment dominated the market in 2016. Based on consumption, the market is segmented into solid edibles, inhalation, liquid edibles and topical products. The cannabis-infused solid edibles segment is expected to grow at a CAGR of 17.8%, while liquid edibles will see a faster growth rate during the forecast years. ICC International Cannabis Corp. (OTC: KNHBF), Future Farm Technologies Inc. (OTC: FFRMF), THC Biomed International Ltd. (OTC: THCBF), mCig, Inc. (OTC: MCIG), Kaya Holdings, Inc. (OTC: KAYS)

North America has dominated the global cannabis market, as legalization of recreational or medical cannabis continues to spread in various countries. Most of the U.S. states have already legalized medical cannabis and some of them have also legalized cannabis for recreational use. The cannabis market in Canada is expected to grow at a compound annual growth (CAGR) of 66.8% between 2017 and 2025, according to Grand View Research. Canada's new laws, which have legalized recreational and medical use at the federal level, were officially implemented on October 17th. Europe is also expected to become a huge market for cannabis as several countries in Europe have legalized it for medical use. Furthermore, Latin American countries are anticipated to emerge as exporters of cannabis due to their climate and affordable labor forces.

ICC International Cannabis Corp. (OTC: KNHBF) is also listed on the Canadian Securities Exchange under the ticker (CSE: WRLD). Just earlier today, the company announced breaking cannabis news that it, "has acquired Polannabis Holdings ("Polannabis"). Polannabis controls a Polish hemp-processing licence, which permits the extraction and manufacturing of Cannabinoid ("CBD") derived products. Polannabis has access to over 850 acres of premium hemp crops; estimated to produce up to 6,800 tons of material for CBD extraction.

UNIVERSITY RESEARCH COLLABORATION

Polannabis boasts an existing extraction and manufacturing facility, equipped with a proprietary Hydrocarbon extraction technologies. Polannabis' operations are currently producing CBD isolates, distillates, bulk oils, paste and tinctures. Through its agreement with Maria Curie-Sklodowska University ("MCSU"), one of the largest universities in Poland, Polannabis has established superior post-processing separation protocols and testing procedures. The strategic, research and operational joint-venture with, MCSU located in Lublin, Poland,provides product testing, analytical services, as well as process and product development support.

EXISTING PRODUCT OFFTAKE AGREEMENT

Polannabis brings a highly experienced roster of engineering, scientific, logistics, marketing and sales personnel, as well as existing sales agreements in various European Union ("EU") member countries. Polannabis has secured a monthly off-take agreement for 100 kilos of 99.9% CBD isolate. The off-take agreement will be initiated immediately upon the completion of its planned capacity and processing expansion. ICC's immediate investment in Polannabis will increase its CBD extraction capacity to an initial run-rate of over 2,400,000 grams per year, prior to the Phase II buildout which will begin in 2019.

TURNKEY DESIGN/BUILD CONTRACT

ICC has engaged Sababa Sciences ("Sabba"), an Israeli based cannabis company to design, build and oversee the expansion of Polannabis' Polish assets. Sababa's team has extensive experience in cannabinoid extraction, organic cultivation, product development and medical research. Poland is the sixth most populous EU member state and collectively with Greece will function as ICC's flagship European hemp cultivation and extraction hub. The EU has over 500 million potential consumers, affording ICC with a unique opportunity to service this high growth marketplace. The acquisition of Polannabis provides ICC with immediate revenue generation and the ability to leverage its European distribution network. ICC has an exclusive agreement with Cosmos Holdings ("Cosmos") a European based pharmaceutical distributor, to procure and distribute medical cannabis products and all cannabis derivatives for clients of Cosmos in approved countries within its distribution network of 110 clients. Comos' distribution network represents approximately 35,000 pharmacies across 16 countries.

Eugene Beukman, chief executive officer and director of ICC, stated: "ICC's strategic acquisition of Polannabis plants yet another ICC flag in the EU. Polannabis brings a highly skilled workforce, proprietary extraction methodologies, as well as existing revenue generating supply contracts. The Company has acquired a world-class CBD extraction operation and looks forward to execution upon its Polish expansion plans with the assistance of Israeli based Sabba Sciences."

In connection with the transaction, ICC will fund the current business for initial development and European expansion with X$ in cash as well as make payments of X$ and issue 26,515,151 shares. A contingent consideration of up to CAD $2.5 million in cash to founding principals may be paid based on Polannabis achieving CAD $25 million in EBITDA by 2021. ICC plans to invest an additional CAD $2 million. A finders fee is payable on the transaction."

Future Farm Technologies Inc. (OTCQB: FFRMF) is a Canadian company with holdings throughout North America including California, Massachusetts, Florida, Maine, Puerto Rico and Newfoundland. Future Farm Technologies Inc. recently announced its commitment to socially responsible, non-GMO cultivation of the cannabis plant. It plans to implement this commitment by deepening its relationship with Rahan Meristem Ltd., a world renown global agro-biotechnology company incorporated in the State of Israel with more than 250 employees in five locations and over 40 years of experience in plant propagation and breeding. A key objective of the expanded work with Rahan is the creation of elite plant strains by in vitro mutagenesis, a proprietary technology developed, proven and patent protected by Rahan. The elite strains will be chosen based on their effectiveness for a variety of commercially valuable applications. For example, Future Farm's new affiliate in St. John's, Newfoundland, CEPG Consulting and Design Inc., is in discussions to develop a cannabis-infused bottled water product that would benefit from using one of the elite strains under development.

THC Biomed International Ltd. (OTCQB: THCBF) is an ACMPR Licensed Producer and Canada's largest supplier of legal Cannabis Genetics. The Company recently announced that it has made its first shipment of cannabis to the province of British Columbia. This marks a significant and fundamental change in the Company's business operations. THC Biomed's high-grade Landrace strains have been selected for the recreational market and the Company promises products that will be effective and deliver the desired experience without the debilitating side effects commonly associated with cannabis. The Company's Landrace Strains will offer recreational adult users a product that is potent and consistent in its quality and effects. THC BioMed products will be available in British Columbia and Ontario initially and it have pending supply agreements with a Saskatoon retailer. THC Biomed will continue to work diligently to ensure its products are available to all adult recreational users from all provinces.

mCig, Inc. (OTCQB: MCIG), headquartered in Jacksonville, Florida, is a diversified company servicing the legal cannabis, hemp, and CBD markets via its lifestyle brands. mCig, Inc. recently provided an update on its high yielding CBD hemp project in New York. Over the next week, weather permitting, mCig will harvest its high yielding cannabidiol (CBD) hemp crop grown in an orchard style cultivation. mCig's Research and Development team will carefully analyze the cannabinoid profiles of the various hemp strains grown as it continues to perfect the most efficient and effective way to cultivate cannabidiol-rich hemp. mCig is currently developing high-output ethanol extraction equipment with European partners. In addition to using the new equipment for its New York harvest, mCig also plans to use its customized extraction equipment for extracting CBD distillate and full spectrum oil from hemp in Europe. Current discussions with European hemp producers are promising and mCig plans to leverage these relationships to gain traction in the European hemp and CBD markets. "We're harvesting our first annual hemp crop and are already in discussions with other farmers interested in growing hemp as an alternative to traditional crops. With these partnerships, we plan to expand our operations in New York, and grow over one hundred acres of hemp there in 2019. And, we're on the cusp of breaking into the European market," says Paul Rosenberg, Chief Executive Officer. "It's great to be where we're at right now."

Kaya Holdings, Inc. (OTCQB: KAYS) through its subsidiary, Marijuana Holdings Americas, Inc., owns and operates the first legal marijuana dispensary by a U.S. publicly traded company - Kaya Shack™. Kaya Holdings, Inc. recently announced that it has completed the purchase of 26 acres of prime farmland in Lebanon, Oregon. The Company plans to develop the property to house the maximum canopy permitted by law for its legal medical and recreational marijuana farming operations. Additionally, it plans construct facilities for the manufacture and packaging of Kaya owned brands of concentrates and oils, edibles, and creams to be sold through Kaya Shack™ stores and, subsequently through wholesalers to other retailers. "On March 21st we announced that we had retained a realtor for the purpose of identifying a suitable tract of land for KAYS to expand our Legal Medical and Recreational Marijuana Grow and Manufacturing Operations. After several months of reviewing dozens of properties we are very pleased to announce that we have completed our purchase and have taken possession of the property," reports Kaya Holdings CEO, Craig Frank. "We will be developing the land to reach its maximum potential, including a mix of indoor and greenhouse cultivation, development of marijuana processing facilities and other cannabis related enterprises as legally permitted."

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