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It is proving more and more that Cannabis based companies must think and act beyond the current day-to-day operations as well as focus on product development, strategic partnerships and gaining consumer trust. Especially as the rising demand of marijuana for recreational use and medical use is a key factor driving massive growth potentials. In fact, legal cannabis and the rising popularity of CBD infused products has started gaining traction worldwide due to very high demand among consumers and increasing legalization of recreational or medical marijuana in various countries. According to Grand View Research, the global legal marijuana market is expected to reach USD $146.4 billion by end of 2025. Grand View also believes that an increasing number of companies operating in the marijuana market are expected to bolster the quantity and variety of products reaching the end users. Advances in new product development are expected to enhance product adoption among consumers while the legal marijuana market is witnessing strong technological and information exchange. Active companies in the Cannabis market this week include Medicine Man Technologies (OTC:MDCL), Tilray, Inc. (NASDAQ:TLRY), Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON.TO), Aphria Inc. (NYSE:APHA) (TSX:APHA.TO), MariMed Inc. (OTC:MRMD).
Further examples of exciting times ahead as well as expected continued growth include Cannabis industry leaders, lobbyists and advocates are expected to flock to lawmakers in hopes of influencing legislation based on New York’s Gov. Andrew Cuomo’s pot proposal that has recently hit the wires. Some key issues outlined by Cuomo in his state of the state speech include protecting minors under 21, improving drugged driving enforcement and limiting major cannabis companies control of the industry. Others involve plans for spending cannabis taxes and reducing public-health risks. Creating a new Office of Cannabis Management is a big part of Cuomo’s plan, despite the lack of details on how it would operate. The cannabis office would take over regulation of medical marijuana in addition to the newly added recreational businesses under the plan.
Medicine Man Technologies (OTCQX:MDCL) BREAKING NEWS: Medicine Man Technologies a leading consulting, intellectual property licensing and products company in the cannabis industry, has announced a binding agreement that is expected to lead to the near-term acquisition of the Colorado licensee, Medicine Man Denver (MMD). MMD is one of the pioneering operators that helped establish the burgeoning cannabis industry over the past decade, with brand recognition far beyond its immediate market. Its operations include one of the largest indoor cultivations in the state of Colorado as well as four retail locations with combined sales that have kept it in the top tier of operators in the state.
MDCL plans to pursue other acquisitions and partnerships with similar, mature industry leading operators, in the birth place of the legal cannabis industry and beyond
These planned and prospective transactions are helping to realize the promise of MDCL’s vision to establish an industry-leading, fully-integrated cannabis company that delivers resources to entrepreneurs in the industry and soon, products to consumers.
“Building upon MMT’s established expertise as consultants that have helped win licenses and establish operations in 17 states with over 100 clients, these moves are keeping the promise of Medicine Man Technologies’ vision to become an operator in this space,” says Andy Williams, Medicine Man Technologies’ Chief Executive Officer. “Once officially brought into the fold, MDCL’s annual revenue run rate will exceed $40 million. We couldn’t be more excited about what the future holds.”
Because MMD is a holder of cannabis licenses issued by the Marijuana Enforcement Division (MED) in the State of Colorado, the acquisition of MMD will require the passing of the currently-introduced Colorado HB19-1090 (https://leg.colorado.gov/bills/hb19-1090) which is currently working its way through the legislature, with support of the current governor. If HB19-1090 becomes law, it will allow for public company ownership of Colorado-licensed cannabis businesses.
The final acquisition will require the approval of the MED, as well as local city and county rules concerning the transfer and sale of ownership interest. Due to current legal restrictions, rather than acquiring a direct right to purchase the entity, MDCL has agreed to license MMD’s company brand globally and issue warrants that can only be exercised by the exchange of equity of MMD for common stock of MDCL at an agreed upon value subject to approval by the MED and the warrant holders electing to exercise. Read this and more news for Medicine Man Technologies at: https://www.financialnewsmedia.com/news-mdcl
Other recent developments and major influences in the cannabis industry include:
Tilray, Inc. (NASDAQ:TLRY) and Authentic Brands Group (ABG), an owner of a portfolio of global lifestyle and entertainment brands, announced that they have signed a long-term revenue sharing agreement to market and distribute a portfolio of consumer cannabis products within ABG’s brand portfolio in jurisdictions where regulations permit. As the owner of more than 50 brands, ABG builds value by partnering with an expansive network of best-in-class manufacturers, operators and retailers. With a global retail footprint of over 100,000 points of sale and more than 4,500 branded freestanding stores and shop-in-shops, ABG’s portfolio generates approximately US$9 billion in retail sales annually. Reaching nearly 250 million social media followers across key digital platforms, ABG’s robust marketing arm drives growth and engagement for its portfolio, including connecting its brands with over 150 million targeted followers through Winston, its proprietary micro-influencer network.
“We are thrilled to partner with ABG, a global leader known for expertly managing and marketing an owned portfolio of iconic brands,” said Brendan Kennedy, Tilray President and CEO. “As we work to expand Tilray’s global presence, this agreement leverages our complementary strengths and will be accretive to our shareholders as we reach new consumers across the entertainment, fashion, beauty, home and health and wellness sectors. We look forward to working with ABG to bring unique and sought-after branded cannabis products to the marketplace.”
Cronos Group Inc. (NASDAQ:CRON)(TSX:CRON.TO) closed up slightly at $13.42 on Wednesday trading over 5.3 million shares by the market close on the NYSE. Cronos Group is a globally diversified and vertically integrated cannabis company with a presence across five continents. Cronos Group operates two wholly-owned Canadian licensed producers: Peace Naturals Project Inc., which was the first non-incumbent medical cannabis license granted by Health Canada, and Original BC Ltd., which is based in the Okanagan Valley, British Columbia. Cronos Group has multiple international production and distribution platforms across five continents. Cronos Group intends to continue to rapidly expand its global footprint as it focuses on building an international iconic brand portfolio and developing disruptive intellectual property. Cronos Group is committed to building industry leading companies that transform the perception of cannabis and responsibly elevate the consumer experience.
Aphria Inc. (NYSE:APHA) (TSX:APHA.TO) closed down slightly on Wednesday at $6.65 trading close to 4 million shares on the NYSE by the market close. Aphria recently reported its results, for the second quarter ended November 30, 2018, and the decision by its Chief Executive Officer, Vic Neufeld, and Co-founder Cole Cacciavillani, to transition out of their executive roles over the coming months. Mr. Neufeld and Mr. Cacciavillani will remain in their current roles until such time. Aphria Chief Executive Officer Vic Neufeld, and Co-founder Cole Cacciavillani, are both nearing the end of their five-year journey with the Company and will transition out of their executive roles over the coming months but remain on the Board. Working closely with Irwin D. Simon, Aphria’s recently appointed independent Chair, and President Jakob Ripshtein, Mr. Neufeld and Mr. Cacciavillani intend to complete a smooth and responsible transition to a globally-minded executive leadership team for the long-term benefit of the Company’s patients, shareholders, customers, and employees.
Aphria Chair Irwin D. Simon commented, “Vic and Cole are consummate entrepreneurs. Thanks to their vision, energy and passion, Aphria has become a global player in an industry that didn’t even exist five years ago. On behalf of the entire Aphria team, I want to express my gratitude to both. I look forward to working with them to further build Aphria’s leadership team and continue driving long-term value for our patients, customers and employees into the future.”
MariMed Inc. (OTCQB:MRMD) closed up over 6% at $3.80 on Wednesday by the market close. The company a leading multi-state cannabis operator, yesterday announced the formation of MariMed Hemp, Inc., a wholly-owned subsidiary to be entirely focused on hemp-derived CBD products. MariMed Hemp will have a dedicated executive team, proprietary brand and product lines, and distribution and marketing relationships, all separate from MariMed’s core cannabis business.
The subsidiary builds on MariMed’s recent investment in GenCanna Global, a leader in high-quality, fully compliant hemp cultivation and processing which is acclaimed for its genetics, proprietary cultivation practices and best in class processing procedures that produce world class, GMP, quality CBD isolates and oils. GenCanna anticipates planting and processing over 10,000 acres of hemp in 2019, making it one of the nation’s largest hemp producers and the key supplier of hemp CBD oil to MariMed Hemp.
“With the recent signing of the U.S. Farm Bill that declared hemp fully legal at the federal level, we believe the hemp CBD industry may grow even faster than the cannabis industry,” said Robert Fireman, CEO of MariMed. “Consumers and retailers alike seek the highest quality, trustworthy products. While many niche players may try to compete, the reality is that only a handful of suppliers can reliably deliver top-quality CBD products at scale that can serve the needs of major retailers.”
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