The legalization of global cannabis industry seems to grow higher as more and more countries legalize marijuana for recreational and medical use. A report from the bank of Montreal said: ” High valuations justifiable if investors factor in potential of U.S. legalization on a federal level and legalization in the EU. The potential of the global cannabis industry is so vast that it could eventually make the sky-high valuations of some Canadian licensed producers look like bargains, according to a new report from Bank of Montreal. In the report, the bank’s cannabis sector analysts, Tamy Chen and Peter Sklar, sought to determine just how big the total addressable market Canadian producers will be competing for in the coming years, one that doesn’t stop at Canada’s borders. Assuming a blue-sky scenario in which the U.S. and all 28 countries in the EU legalize marijuana for both recreational and medical use — and in which Latin America allows the medical use of cannabis — they project that in seven years the market could reach $194 billion, a number that significantly dwarfs the $5.9 billion in potential revenue they anticipate will be generated by the Canadian medical and recreational markets. Currently, the biggest three licensed producers in Canada have a combined market capitalization of more than $30 billion. Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. (OTC:NUGS), HEXO Corp. (TSX:HEXO.TO) (NYSE:HEXO), Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON.TO), CannTrust Holdings Inc. (NYSE:CTST) (TSX:TRST.TO), Tilray, Inc. (NASDAQ:TLRY).
The report also predicts the total addressable market if all 28 countries in the European Union legalize cannabis for medical use would be $30 billion in seven years, with another $68 billion if they also legalize recreational cannabis. Again, that is a best-case scenario calculation given that a only a number of European nations including Germany, Italy, Portugal, Denmark, Switzerland, Croatia and the Netherlands have legalized medical cannabis, to varying degrees. The drug still remains illegal, albeit decriminalized, in most of the EU.
Cannabis Strategic Ventures, Inc. (OTCPK:NUGS) BREAKING NEWS: Cannabis Strategic Ventures announces it is approved for trading on the OTCQB Venture Market, effective May 10, 2019. Uplisting is important for the Company as it continues building shareholder value through more stringent reporting standards and increased investor transparency.
“Uplisting Cannabis Strategic Ventures’ stock to the OTCQB Venture Market is an exciting milestone for our Company,” said Simon Yu, CEO of Cannabis Strategic Ventures. “The OTCQB platform will allow us to provide investors increased transparency by providing the information needed to analyze, value and trade.”
This achievement is the latest development in Cannabis Strategic Ventures’ expansion plans. The Company, which owns several brands in the cannabis and hemp-derived cannabidiol (“CBD”) sectors, recently announced the cultivation of land for over 20,000 plants at NUGS Farm North, its 6-acre licensed site in Northern California. The farm is expected to operate at maximum capacity by late summer of 2019. In addition, Cannabis Strategic Ventures recently announced its investment in FLORAH, a concept boutique that educates consumers of the benefits of CBD while a curating a best of selection of CBD lifestyle, wellness, beauty and pet products.
“The benefits of uplisting combined with our new initiatives demonstrate to our existing investors and the marketplace that Cannabis Strategic Ventures is on track for growth,” stated Yu. “We have a clearly defined path for expansion and we are diligently working to meet our corporate goals.” Read this and more news for Cannabis Strategic Ventures at: https://www.financialnewsmedia.com/news-nugs
Other recent developments and major influences in the cannabis industry include:
Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON-TO.TO) recently announced that it has agreed to a multi-year supply deal with MediPharm Labs Corp. (LABS)( MEDIF). MediPharm will supply Cronos Group’s wholly-owned subsidiary, Peace Naturals Project Inc., with roughly $30 million in cannabis concentrate over 18 months. These figures could jump to $60 million over 24 months, subject to certain renewal and purchase options.
Under a separate two-year tolling agreement, Cronos selected MediPharm’s Barrie, Ontario extraction facility as its preferred partner for particular processing needs. Peace Naturals will supply bulk dried cannabis to MediPharm for processing bulk resin and other cannabis derivatives which will be sold under the Cronos brand.
CannTrust Holdings Inc. (NYSE:CTST) (TSX:TRST-TO.TO) recently released its financial results for the first quarter ended March 31, 2019. “The CannTrust team delivered exceptional operational growth in the first quarter, with harvested production of over 9,400kg. This is a 96% increase in production over the prior quarter and reflects the impact of the investments made into our facilities, as well as process improvements to increase throughput,” said Peter Aceto, Chief Executive Officer.
“With the successful closing of our equity offering providing gross proceeds of US$170 million (before exercise of the over-allotment option), we are well positioned to execute on our growth plans. Our fully-permitted Phase 2 expansion is expected to reach its full capacity of 50,000kg on an annual basis in the third quarter of 2019, and our 81 acres of land for outdoor cultivation has been prepared and we are awaiting regulatory approval to start planting. We have commenced work on our Phase 3 expansion in Niagara, which we expect will add a further 50,000kg of annual capacity. All told, we continue to expect to exit 2020 at a production rate of between 200,000kg to 300,000kg per year. This is a very exciting time for CannTrust and we plan to continue executing on our vision of becoming a global provider of innovative cannabis products and brands,” continued Mr. Aceto.
Tilray, Inc. (NASDAQ:TLRY) a global leader in cannabis research, cultivation, production and distribution, recently reported financial results for the first quarter ended March 31, 2019. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
“We are pleased with our first quarter results and the ongoing, substantial progress our team has made to position Tilray as a global leader in the cannabis industry,” said Brendan Kennedy, Tilray President and CEO. “We have made significant progress integrating our recent acquisitions of Manitoba Harvest and Natura Naturals, accelerating our entry into the United States hemp and CBD markets, and increasing our production and manufacturing capacity in North America and Europe. As we expand our operations around the world, we remain focused on making disciplined investments to maximize the multiple paths to value creation we are aggressively pursuing for our visionary investors.”
HEXO Corp. (NYSE:HEXO) (TSX:HEXO-TO.TO) recently announced the nomination of Steve Burwash as interim Chief Financial Officer. As previously disclosed by the Company in January 2019, the Company has been working on a transition plan with Mr. Chaplin since his departure was announced at that time, and has been undertaking a search process for Mr. Chaplin’s successor, seeking a candidate with global consumer packaged goods company experience. The Company expects to conclude this process and hire a new CFO in the near future.
Pending the conclusion of this process, the Company has appointed Steve Burwash, Vice-President, Strategic Finance, to serve as Acting Chief Financial Officer on an interim basis. Mr. Chaplin will also be available to offer support to the Company for six months following his departure to enable a smooth transition period.
DISCLAIMER: FN Media Group LLC (FNM), which owns and operates Financialnewsmedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein. FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. FNM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed FNM has been compensated forty five hundred dollars for news coverage of the current press releases issued by Cannabis Strategic Ventures, Inc by a non-affiliated third party. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Contact Information:Media Contact email: firstname.lastname@example.org +1(561)325-8757
View original content:http://www.prnewswire.com/news-releases/cannabis-global-markets-potential-of-194-billion-in-next-seven-years-300850450.html