Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Consumer Spending on Legal Marijuana is Expected to Grow in the U.S.

T.WEED

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, October 19, 2018 /PRNewswire/ --

The cannabis market has been growing in recent months and Canada began legal sales of recreational marijuana earlier this week. It is a promising time for cannabis companies in North America, here are some to keep an eye on. The legalization of adult-use cannabis in Canada and California this year may set an example for other nations as the booming cannabis market has potential to generate even more job opportunities and economic benefits. According to a report released by Arcview Market Research, in partnership with BDS Analytics, consumer spending on legal cannabis is expected to reach USD 11 Billion in 2018 and more than USD 23 Billion by 2022. The U.S. cannabis industry is also projected to generate more than 467,000 full-time equivalent jobs in 2022, up from 170,000 full-time equivalent jobs in 2017. The U.S. has the largest legal cannabis market in 2017, accounting for 90% of the world market. However, its market shares are projected to shrink to 73% in 2022. CLS Holdings USA Inc. (OTC: CLSH), Canopy Growth Corporation (NYSE: CGC), Aphria Inc. (OTC: APHQF), KushCo Holdings, Inc. (OTC: KSHB), Terra Tech Corp. (OTC: TRTC)

The European cannabis market is also expected to witness rapid growth. According to data compiled by Prohibition Partners, the European cannabis market will be worth EUR 115.7 Billion by 2028. Stephen Murphy, Managing Director, Prohibition Partners, said: "Public, political and professional opinions are swinging largely in favor of the legalization and regulation of cannabis. Europe, which is known for its considered and conservative approach to change, is suddenly becoming a hotbed of activity for the global cannabis industry. In just six months, the European cannabis industry has grown more than it has done in the past six years. Currently, patient numbers are below 100,000 across the region but this number is set to grow to over 30 million in the next ten years."

CLS Holdings USA Inc. (OTCQB: CLSH) earlier this month announced that, "it has entered into an agreement with a Canadian agent (the "Agent"), whereby the Agent will assist the Company in selling on a commercially reasonable efforts private placement basis, up to US$40 million aggregate principal amount of senior unsecured debentures ("Debentures") with an issue price of US$1,000 per Debenture, convertible into units of the Company (the "Units") at the option of the holder at a conversion price of US$0.80 per Unit (the "Conversion Price") at any time prior to the close of business on the earlier of: (i) the last business day immediately preceding the maturity date of the Debentures, being the date that is three (3) years from the closing date of the Offering (the "Closing Date"), and (ii) the date fixed for redemption (as set out in the Debentures (the "Offering"). Each Unit shall be comprised of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant shall be exercisable into one Common Share at a price of US$1.10 per Warrant (the "Exercise Price") for a period of 36 months from the Closing Date… The Company intends to use the net proceeds of the Offering to fund the upfront loan payment to In Good Health Inc., to fund construction activities at the Leicester facility, to complete improvements to the North Las Vegas cultivation facility and for general working capital purposes."

On September 17th, 2018 CLS Holdings USA Inc. also announced that, "it has executed two Letters of Intent (LOIs) to enter the rapidly growing Massachusetts market. CLS looks forward to the opportunity to enter the Massachusetts market, which has been operating as a legalized medical jurisdiction since 2015 and has approved legalized recreational use.

CLS has agreed in principle to loan $5 million to In Good Health, a licensed medical dispensary in Brockton, Massachusetts with a significant market share. Along with the loan, CLS will have an option to acquire InGood Health. InGood Health is located 25 miles south of downtown Boston and is one of the 38 licensed dispensaries in the state. The Brockton dispensary was the second licensed dispensary in the state and has been operational since September 2015, which has been medical only up until this time. In Good Health is currently servicing 17,000 registered patients and delivering to 1,700 homes with key product offerings of flower, concentrates, vapes, edibles, pre-rolls and tinctures.

CLS has also agreed in principle to form an 80/20 joint venture with CannAssist, which CLS will own 80%. CannAssist plans to build out a recreationally licensed cultivation grow facility in Leicester, Massachusetts. The planned Leicester 86,000 square foot facility is in possession of its host community agreement, is awaiting state acknowledgement of its pending recreational licenses and upon completion will be the third largest cultivation grow in the state. The Leicester facility is anticipated to produce its first harvest in the fourth quarter of 2019 and be able to produce 28,000 lbs of flower along with 858,000 grams of extract once it is operating at capacity. At current pricing of $3,500 per pound of flower and $40 per gram of extract, total capacity is expected to reach $120 million in revenue. CLS anticipates generating substantial positive cash flow from the joint venture.

Massachusetts has a population of 6.9 million people as compared to 5.6 million people in Colorado. Massachusetts is also centrally located to the dense population of New England with a less than 100-mile drive from Rhode Island, Connecticut, New York, New Hampshire and Vermont. In 2017, Colorado generated $1.5 billion in legalized marijuana sales and had over 500 licensed dispensaries and over 700 licensed cultivation facilities. Massachusetts currently has issued only 39 licensees.

Jeff Binder, Chief Executive Officer of CLS Holdings USA, commented, 'We are extremely excited to have the opportunity to enter the Massachusetts market. It's something we have been eyeing for a long time given the attractive characteristics and recent approval of adult use cannabis. This opportunity fits into our stated objective of entering markets that are on the cusp of implementing a robust adult use market.'

David Noble, President of InGood Health and Partner of CannAssist, commented, 'I am proud of all our team has accomplished to create a leading medical marijuana dispensary. I look forward to continuing our mission and hard work We look forward to the opportunity to be part of one of the top companies in the field. This will ensure that we can provide the highest quality products to patients and customers for many years to come.'

Jon Napoli, Managing Partner, CannAssist, stated, 'We have been working with the city of Leicester for the past 12 months on this project and are pleased to receive all necessary approvals. This will bring a number of employment opportunities to this community and we look forward to being a reliable partner and producing some of the finest quality cannabis in the state.'"

Canopy Growth Corporation (NYSE: CGC) is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth Corporation recently announced that it has entered into an agreement to acquire the assets of ebbu, Inc., an Evergreen, Colorado-based hemp research leader. The transaction will complement and accelerate multiple core verticals operating under Canopy Growth's group of companies. Intellectual Property ("IP") and R&D advancements achieved by ebbu's team apply directly to Canopy Growth's hemp and THC-rich cannabis genetic breeding program and its cannabis infused beverage capabilities. Additionally, ebbu's IP portfolio will contribute to the clinical formulations program being executed by Canopy Health Innovations, a wholly owned subsidiary of the Company. Canopy Growth operates a rapidly emerging, field-scale hemp operation based in Saskatchewan and by applying ebbu's IP, the Company has the potential to vastly reduce the cost of CBD production, a sought-after cannabinoid in both the wellness and medical spaces. "Beyond the technological edge this transaction provides, we are pursuing this acquisition because Canopy shares ebbu's core ethos of building consumer trust," said Mark Zekulin, Co-Chief Executive Officer & President, Canopy Growth. "We collectively believe consumer trust is achieved by driving the scientific agenda needed to build predictable, repeatable outcomes and layering on brand power."

Aphria Inc. (OTCQB: APHQF) is a leading global cannabis company driven by an unrelenting commitment to our people, product quality and innovation. Aphria Inc. recently announced that it has completed its first shipment of cannabis oil to its Argentina-based subsidiary ABP, S.A., a pharmaceutical import and distribution company. In accordance with a previously announced supply agreement, the Company delivered 1,500 bottles of Aphria's renowned Rideau CBD oil, which were provided to Hospital de Pediatria Garrahan, a leading pediatric hospital located in Buenos Aires, for use in a clinical study focused on treating refractory epilepsy in children. Aphria acquired ABP last month when the Company closed its acquisition of LATAM Holdings Inc., expanding the Company's global footprint to include a leading presence in Latin America and the Caribbean. "Argentina will play a foundational role as Aphria cements its leadership in medical cannabis throughout the region," said Vic Neufeld, Chief Executive Officer of Aphria. "Aphria and ABP, in close partnership with the Argentinean government, continue to advance opportunities for medical cannabis in the country, including the potential for in-country cultivation. We are also proud to support the critical and necessary research being undertaken by Hospital Garrahan on the treatment of refractory epilepsy in children with our Rideau CBD oil."

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 Holdings, Inc., recently announced it has signed an exclusive sales and innovation agreement with ExtractionTek Sales, LLC, dba. ExtractionTek Solutions ("ETS"), a leading provider of closed loop hydrocarbon extraction equipment, based in Colorado. The reciprocal agreement is designed to drive additional client expansion for both companies through their complementary operations. "Our agreement with ETS will allow us to capitalize on the growing demand for closed loop hydrocarbon extraction by businesses that ultimately need solvents and hydrocarbon gases, generating additional opportunities for our aggressive customer expansion," said Jason Vegotsky, the President of Kush Supply Co. "ETS provides innovative solutions for quality-manufactured, efficient and safe extraction equipment and maintains strong customer relationships in many of the same key domestic markets that we currently operate within, further enhancing the opportunity to cross-sell our customer base."

Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Terra Tech Corp. recently announced that it has purchased a retail property in downtown Las Vegas, located at 121 North Fourth Street. The Company plans to convert the building into a Blüm™ retail dispensary, focused on providing the highest quality medical and adult use cannabis to the Nevada market. Derek Peterson, Chief Executive Officer of Terra Tech, stated, "We remain committed to growing our footprint in Nevada, which remains a lucrative market for the cannabis sector. The building is located in the heart of the booming Downtown Las Vegas trade area, an area in which we did not previously have a presence but which benefits from high foot traffic. Last year, 32 percent of the visitors to Las Vegas visited the downtown area. Of those, 59 percent said the main reason was to visit the Fremont Street Experience. We are pleased to have secured this building, which has great street-front visibility, and expect that, once it has been rebranded and fully-licensed under our recognizable Blüm brand, it will contribute meaningfully to the Company's revenue growth."

Subscribe Now! Watch us report LIVE https://www.youtube.com/FinancialBuzzMedia

Follow us on Twitter for real time Financial News Updates: https://twitter.com/financialbuzz

Follow and talk to us on Instagram: https://www.instagram.com/financialbuzz

Facebook Like Us to receive live feeds: https://www.facebook.com/Financialbuzz/

About FinancialBuzz.com  

FinancialBuzz.com, a leading financial news informational web portal designed to provide the latest trends in Market News, Investing News, Personal Finance, Politics, Entertainment, in-depth broadcasts on Stock News, Market Analysis and Company Interviews. A pioneer in the financially driven digital space, video production and integration of social media, FinancialBuzz.com creates 100% unique original content. FinancialBuzz.com also provides financial news PR dissemination, branding, marketing and advertising for third parties for corporate news and original content through our unique media platform that includes Newswire Delivery, Digital Advertising, Social Media Relations, Video Production, Broadcasting, and Financial Publications.

Please Note: FinancialBuzz.com is not a financial advisory or advisor, investment advisor or broker-dealer and do not undertake any activities that would require such registration. The information provided on http://www.FinancialBuzz.com (the 'Site') is either original financial news or paid advertisements provided [exclusively] by our affiliates (sponsored content), FinancialBuzz.com, a financial news media and marketing firm enters into media buys or service agreements with the companies which are the subject to the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider and therefore do not represent or warrant that the information posted on the Site is accurate, unbiased or complete. FinancialBuzz.com receives fees for producing and presenting high quality and sophisticated content on FinancialBuzz.com along with other financial news PR media services. FinancialBuzz.com does not offer any personal opinions, recommendations or bias commentary as we purely incorporate public market information along with financial and corporate news. FinancialBuzz.com only aggregates or regurgitates financial or corporate news through our unique financial newswire and media platform. For cls holdings usa inc. financial and corporate news dissemination, FinancialBuzz.com has been compensated five thousand dollars by the company. Our fees may be either a flat cash sum or negotiated number of securities of the companies featured on this editorial or site, or a combination thereof. The securities are commonly paid in segments, of which a portion is received upon engagement and the balance is paid on or near the conclusion of the engagement. FinancialBuzz.com will always disclose any compensation in securities or cash payments for financial news PR advertising. FinancialBuzz.com does not undertake to update any of the information on the editorial or Site or continue to post information about any companies the information contained herein is not intended to be used as the basis for investment decisions and should not be considered as investment advice or a recommendation. The information contained herein is not an offer or solicitation to buy, hold or sell any security. FinancialBuzz.com, members and affiliates are not responsible for any gains or losses that result from the opinions expressed on this editorial or Site, company profiles, quotations or in other materials or presentations that it publishes electronically or in print. Investors accept full responsibility for any and all of their investment decisions based on their own independent research and evaluation of their own investment goals, risk tolerance, and financial condition. FinancialBuzz.com. By accessing this editorial and website and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy, as may be amended from time to time. None of the content issued by FinancialBuzz.com constitutes a recommendation for any investor to purchase, hold or sell any particular security, pursue a particular investment strategy or that any security is suitable for any investor. This publication is provided by FinancialBuzz.com. Each investor is solely responsible for determining whether a particular security or investment strategy is suitable based on their objectives, other securities holdings, financial situation needs, and tax status. You agree to consult with your investment advisor, tax and legal consultant before making any investment decisions. We make no representations as to the completeness, accuracy or timeless of the material provided. All materials are subject to change without notice. Information is obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. For our full disclaimer, disclosure and Terms of Use, please visit: http://www.financialbuzz.com .

For further information:
info@financialbuzz.com
+1-877-601-1879

Url: http://www.FinancialBuzz.com

SOURCE FinancialBuzz.com



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today