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Data Shows the Global Retail Cannabis Market Will Expand Past USD 146 Billion

C.SPR, LEXX, ALEAF

FinancialBuzz.com News Commentary

PR Newswire

NEW YORK, November 29, 2018 /PRNewswire/ --

According to data compiled by Grandview Research, the global legal cannabis market is expected to eclipse USD 146.6 Billion by the end of 2025. In the United States alone, the market size was estimated at USD 7.06 Billion in 2016 and is expected to grow at CAGR of 24.9% from 2017 to 2025. The recreational and medical cannabis markets in Canada are expected to generate a combined total of USD 5.4 Billion by 2022. As the first and only G-7 nation to legalize cannabis entirely, Canada's precedent will play a role in the decisions of other countries, including the U.S., where the market remains fragmented due to federal illegality. Sproutly Canada, Inc. (OTC: SRUTF), Lexaria Bioscience Corp. (OTC: LXRP), Terra Tech Corp. (OTC: TRTC), Emblem Corp (OTC: EMMBF), Aleafia Health Inc. (OTC: ALEAF)

An increase in the number of companies operating in the cannabis market is expected to boost the quantity and variety of consumer products, such as marijuana oils, which have become popular due to increased effectiveness and safety. Recently, cannabis-infused beverages have started gaining traction as major beverage companies have begun to show an interest in the market. According to Business Insider, analysts at Canaccord Genuity expect that the U.S. cannabis-infused beverages market could reach USD 600 Million in the next four years. Canaccord's Bobby Burlesonand Jonathan DeCourcey wrote in a note: "While these trends represent a significant opportunity for US cannabis companies, they have not gone unnoticed by large mainstream beverage players looking to inject growth into their product portfolio."

Sproutly Canada, Inc. (OTCQB: SRUTF) is also listed on the Canadian Securities Exchange under the ticker (CSE: SPR). Earlier today, the Company announced, "the appointment of Constantine Constandis to the Advisory Board.

Mr. Constandis is global C-level executive with over 34 years of experience in the wine and spirits industry in Canada, USA, Europe and Asia. Mr. Constandis was a former senior executive with Pernod Ricard SA (RI:EN Paris), the €37B publicly traded producer of wine and spirts who's global portfolio includes leading brands such as Absolute Vodka, Jameson, The Glenlivit, and Beefeater, among others; most recently serving as President of Pernod Ricard China and Pernod Ricard Asia Travel Retail. Prior to Pernod Ricard, Mr. Constandis was the CEO of Corby Spirit and Wine Ltd (TSX: CSW.A, CSW.B) the TSX listed alcohol manufacturing and distribution company who's portfolio includes some of the most renowned brands in Canada, including J.P. Wiser's Canadian whiskies, Lamb's rum, Polar Ice vodka and McGuinness liqueurs. Mr. Constandis also previously held senior roles at Seagram Company Ltd., including CFO, Europe & Africa. Mr. Constandis holds a Bachelor of Commerce from Concordia University and is a Qualified Chartered Accountant.

"We are very pleased with the addition of Constantine Constandis to Sproutly's Advisory Board," said Keith Dolo, President and CEO of Sproutly. "Constantine is committed to becoming an active member of the Company's Advisory Board. His experience in brand building, operations, sales and marketing in the highly-regulated spirits industry will prove to be extremely valuable to Sproutly as it continues to develop into a leading cannabis beverage company," he concluded.

As a result of the board currently being at its maximum capacity, Constantine will be initially appointed to the Advisory Board until the company's next Annual General Meeting, at which time the board intends to nominate a larger board which will include Constantine as an independent board member."

Lexaria Bioscience Corp. (OTCQX: LXRP) has developed and out-licenses its disruptive delivery technology that promotes healthier ingestion methods, lower overall dosing and higher effectiveness of lipophilic active molecules. Lexaria Bioscience Corp. recently announced the launch of ChrgD+, a water-soluble, ready-mix hemp supplement powder packet formulation designed to be added to any drink, in any location, creating many innovative-use applications. Consistent with other Lexaria formulations, ChrgD+ incorporates multi-spectrum hemp oil processed using the Company's patented DehydraTECHTM technology, allowing effective delivery of hemp oil into any existing beverage, hot or cold. At just 2 grams per pouch, ChrgD+ packets can be carried discreetly in a shirt pocket or purse, and consumed anywhere in your preferred soft drink, coffee or energy drink with individual servings. ChrgD+ is nearly flavorless and odorless, offering minimal impact to your already-favorite beverage other than a delightful food-grade pearlescent sparkle effect to remind you that you are getting ChrgD+. "This new delivery format is truly unique in its performance," said Chris Bunka, Chief Executive Officer of Lexaria Bioscience. "It's a simple way to add a multi-spectrum powdered hemp supplement to your favorite beverage at any time and enjoy its fast-acting, non-altered taste with no oily residue. Lexaria's ChrgD+ product format is being evaluated by others for use in their psychoactive cannabinoids products sector as per our proven track record as a technology provider to the industry."

Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Terra Tech Corp. recently announced its Third Quarter financial results for the period ended September 30th, 2018. "During the third quarter of 2018 we implemented several strategic initiatives intended to drive long term growth and build value for shareholders," commented Derek Peterson, Chief Executive Officer of Terra Tech. "We invested in our organic growth by working toward upgrading our IVXX® production facilities to optimize efficiency and output at our wholesale business. While this transition impacted revenues in the short term, these steps will allow us to increase production and achieve greater distribution throughout California, building a more defensible and scalable long term business model. To also position the IVXX brand for larger-scale sales and distribution within Nevada, we commenced cultivation activities at our Sparks, Nevada facility, which we own 50% in conjunction with NuLeaf. This was shortly followed by the commencement of IVXX production activities at our new Reno, Nevada facility, also co-owned by NuLeaf, which occurred late in the third quarter. Furthermore, we took several steps to streamline the operations of our Blüm™ retail dispensaries and maximize their potential sales growth. In particular, we sold our Western Avenue, NV, location and purchased a retail property in the heart of the booming Downtown Las Vegas trade area, which we plan to convert the building into a Blüm™ retail dispensary. In California, we continue to work toward completing the build out of vertically integrated cannabis facilities in San Leandro and Santa Ana, and were pleased to secure three vertically-integrated Phase I permits for the properties in Santa Ana," continued Mr. Peterson.

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 ACMPR Emblem's state-of-the-art indoor cannabis cultivation facility and research and development laboratory is located in Paris, Ontario. Emblem Corp. recently announced that it will segregate CDN 5 Million of its current cash holdings to establish what it is calling the Patient Access Investment Fund, the interest from which will be used to help offset some of the cost of the excise tax that will be applied to medical cannabis products, effective October 17, 2018. "Patients are our first and foremost priority and we stand together with them to advocate for the removal of taxes from medical cannabis. We believe that failing to do so will render this medicine less affordable, preventing vulnerable patients from accessing their physician-authorized medication," said Nick Dean, Chief Executive Officer, Emblem Corp. "Until a time when the government decides to treat medical cannabis equitably to other medications, Emblem will cover the portion of the tax that is not covered through the retail prices changes on behalf of patients through the Patient Access Investment Fund."

Aleafia Health Inc. (OTCQX: ALEAF) is a vertically integrated, national cannabis company with major medical clinic, cannabis cultivation and R&D operations. Recently, Aleafia Health Inc., and Serruya Private Equity, have settled final forms of definitive joint venture and other agreements that will see the Parties launch a Canada-wide cannabis retail Joint Venture along with a domestic and international cannabis brands Joint-Venture. Serruya will also make a USD 10 Million strategic investment in Aleafia via a non-brokered private placement financing and Aleafia will invest USD 5 Million of such gross proceeds of the Private Placement into the Joint Venture. "Aleafia is now well positioned to produce commercially proven international cannabis brands for our national cannabis retail network along with provincial distributors," said Aleafia Chief Executive Officer Geoffrey Benic. "In launching adult-use cannabis operations, we will greatly benefit from working with and receiving Serruya's substantial financial backing. These transactions will see Aleafia immediately assume a leadership role in adult-use cannabis production, supply and retailing, complementing our proven medical cannabis operations."

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