Canada Braces for Second Round of Cannabis Product Legalizations

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Within the first quarter of legalization, 5.3 million or 18% of Canadian ages 15 years and older reported using cannabis, according to Statistics Canada. Following legalization, Canada reported a large spike in active users, as a year prior to legalization, just 14% of Canadian of Canadian reported using the plant. During the recent first quarter, approximately 646,000 of the users reported trying cannabis for the first time compared to 327,000 the same period a year ago. Predominantly, the rise is largely due to male users between the ages of 45 and 64, who primarily use cannabis for its therapeutic benefits to treat ailments such as chronic pain, cancer, Alzheimer’s, Parkinson’s, and epilepsy. Based on gender, a significantly larger amount of males used cannabis compared to females. It was estimated that 22.3% of Canadian males used cannabis, while only 12.7% females turned to the plant. Statistics Canada also reported that 29.5% of Canadians ages 15 to 24 years old used cannabis in the first quarter. Similarly, approximately 28.7% of Canadians ages 25 to 34-year-olds also used cannabis during the quarter. Overall, the number of active users has drastically increased over the past year, but it is important to note that the market is still continuing to mature. And despite having legalized cannabis entirely, the Canadian federal government still heavily monitors the market. As a result, many businesses have faced legal barriers, which have in turn negatively impacted their operations. Nonetheless, as the Canadian cannabis market continues to develop and expand, the industry is positioned to become a global driving force. Furthermore, with the second wave of legalization coming later in 2019, the market is expected to flourish even more going forward. According to data compiled by Verified Market Research, the global marijuana market was valued at USD 42.20 Billion in 2016. By 2025, the market is expected to reach USD 466.81 Billion while registering a CAGR of 35.3% from 2018 to 2025. BevCanna Enterprises Inc. (CSE: BEV), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), New Age Beverages Corporation (NASDAQ: NBEV), The Alkaline Water Company Inc. (NASDAQ: WTER) (TSX-V: WTER), Emerald Health Therapeutics, Inc. (OTC: EMHTF) (TSX-V: EMH)

Emerald Health Therapeutics’ New Organic Cannabis Operation Receives Cultivation License for Outdoor Grow Area

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Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has received its cultivation license from Health Canada for the 12-acre outdoor grow area at its new organic cannabis operation in Metro Vancouver, BC. The outdoor grow area is expected to be capable of producing approximately 10,000 kg of cannabis annually with multiple crops during a full growing season. With this license effective as of July 12, 2019, Emerald is positioned to deliver one harvest and a portion of the expected full production volume this year.

The Most Important Cannabis Trends of 2019

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Not too long ago, cannabis was just the feel-good supplement of choice for a young generation, looking to blow off steam. But intense research on the plant has led to new discoveries. Today, cannabis is used not only to blow off some steam, but to treat diseases which effect the immune system, pain and inflammation, seizures and even mental disorders. Mentioned in today’s commentary includes: Supreme Cannabis (OTCQX:SPRWF) (TSX:FIRE), Auxly Cannabis (OTCQX:CBWTF) (TSX-V:XLY), Constellation Brands (NYSE:STZ), Emerald Health Therapuetics (OTCQX:EMHTF) (TSX-V:EMH), MedMen Enterprises (OTCQX:MMNFF) (CSE:MMEN).

Craft Cultivators Strive to Combat Black Market Sales with Premium Cannabis

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The cannabis industry is set to maintain its positive trajectory as legalization sweeps throughout the U.S., Europe, and Latin America. For instance, Jefferies Group, an investment bank, predicts that these regions will legalize cannabis for both medical and recreational use in the shortcoming years. Moreover, Jefferies projects that the cannabis industry will also penetrate into various industries such as pharmaceutical, alcohol, health and wellness, and pet supply industries. Notably, Canada made headlines in 2018 after it became the second country to ever legalize cannabis and the first G-7 nation to do so. Additionally, the remaining G-7 nations, with the exception of Japan, have all adopted partial or full medical cannabis programs, while several have decriminalized the recreational use of cannabis. Uruguay was the first country to fully legalize cannabis back in 2013. And while Canada and Uruguay have both legalized cannabis entirely, the U.S. remains the largest sole market in the industry. Despite not having federally legalized cannabis, the country still delivers billions of dollars in cannabis sales annually, largely thanks to states such as California, Colorado, Nevada, and Washington. Jefferies predicts that less regulated markets can account for nearly USD 80 Billion of the total global cannabis market value. Specifically, Jefferies projects the U.S. cannabis market to reach a value of USD 21.7 Billion by 2029, compared to Canada’s estimate of just USD 5.8 Billion. Additionally, the estimated value is added onto Jefferies’ base valuation for the global cannabis industry of USD 50 Billion by 2029, a figure that accounts for the countries that have already legalized cannabis for either medical or recreational use. As a result, Jefferies forecasts that the total global legal cannabis industry is positioned to reach USD 130 Billion by 2029. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), HEXO Corp. (NYSE-A: HEXO) (TSX: HEXO), Charlotte’s Web Holdings, Inc. (OTC: CWBHF) (TSX: CWEB), The Supreme Cannabis Company, Inc. (OTC: SPRWF) (TSX: FIRE), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH)

Emerald Health Therapeutics Commends Government of Ontario for Expanding Retail Cannabis Store Licences in Canada’s Largest Province

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Emerald Health Therapeutics, Inc. (“Emerald” or “the Company”) (TSXV: EMH; OTCQX: EMHTF) commends the Government of Ontario for its newly announced plans to expand the province’s brick-and-mortar retail sales network for adult-use cannabis. Emerald believes that this initiative will position the industry and the Company for significant sales growth in Canada’s largest province.

Emerald Health Therapeutics Joint Venture Launches Cannabis-Free Endocannabinoid-Supporting Health Supplement in Canada

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Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF), through its joint venture Emerald Health Naturals (“EHN”), has introduced a cannabis-free herbal and botanical endocannabinoid-supporting health supplement product line in Canada. EHN’s Endo products, which do not contain cannabis or its derivatives, aim to support the endocannabinoid system to help maintain equilibrium in the body and are already available in over 200 natural health food stores across Canada.

Craft Cultivators Glean Premium Prices as Consumers Demand Top Shelf Cannabis

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Cannabis is most commonly associated with its flower form, however, innovative producers within the industry have developed new products to stand out among the competition. Specifically, in Canada, many producers are designing new products such as concentrates, extracts, and edibles for consumers. Notably, these products are much more potent and effective than traditional flower, which is why many consumers are beginning to shift towards less conventional delivery methods. Moreover, the price of flower has increased since Canada legalized adult-use back in October 2018. According to Statistics Canada, Canadians paid 56.8% more for dried cannabis in legal channels than they did from illicit sources since legalization. Following Canada’s legalization, consumers were paying on average of approximately CAD 9.99 (USD 7.47) per gram compared to the illicit source prices of CAD 6.37 per gram. Health Canada noted that prices in Manitoba prices surged as high as 27.7% per gram, while British Columbia’s prices increased by as little as 3.7%. Typically, the price of cannabis is directly correlated with costs of cultivation and federally or provincially mandated taxes and fees. For instance, the Department of Finance Canada states that in most provinces, cannabis excise taxes is CAD 1.00 per gram, of which the federal government collects CAD 0.25 and the province collects the remaining CAD 0.75. However, back in the 1980s, Canada implemented a tax increase on cigarettes which ultimately lead smokers to turn to the black market for cheaper alternatives. Canada ended up cutting the tobacco taxes. Similarly, the country’s cannabis taxes could potentially be reduced in order to keep consumers away from the black market, as Federal Finance Minister Bill Morneau has pledged to keep taxes as low as possible to keep consumers out of the illicit market and eliminate illegal sources. Furthermore, according to data compiled by Ameri Research, the global legal marijuana market was valued at USD 14.3 Billion in 2016. By 2024, legal marijuana global sales are projected to reach USD 63.5 Billion while exhibiting a CAGR of 21.1% from 2017 to 2024. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), HEXO Corp. (NYSE-A: HEXO) (TSX: HEXO), CannTrust Holdings Inc. (NYSE: CTST) (TSX: TRST), Harvest Health & Recreation, Inc. (OTC: HRVSF) (CSE: HARV), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH)

Emerald Health Therapeutics Receives Cultivation License for New-Build Organic Cannabis Operation in British Columbia

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Emerald Health Therapeutics, Inc. (“Emerald”) (TSXV: EMH; OTCQX: EMHTF) has received its initial cultivation license from Health Canada for its new organic cannabis growing facility in Metro Vancouver, BC. Tailor-made for Emerald to produce high-quality organic cannabis, the operation comprises two 78,000 square foot greenhouses and 12 acres (~500,000 square feet) of outdoor cultivation, with potential for an additional 12 acres. This license permits cultivation in an initial 15,000 sq. ft. of greenhouse area. This site was purposefully designed for organic cultivation with the goal to exceed 30,000 kg of annual production, assuming licensing of the entire indoor and outdoor production area.