With the spread of pharmaceutical therapy, the cannabidiol market is positioned to experience immense growth in the shortcoming years. Cannabidiol, or CBD, is a derivative found within the cannabis plant. While CBD stems from the cannabis plant, it does not offer the same effects that cannabis is commonly associated with. Instead, CBD offers consumers a more relaxing and therapeutic effect as opposed to a psychoactive “high.” Typically, legally sold CBD is derived from the hemp plant, which falls within the cannabis family. Compared to its marijuana counterpart, hemp generally contains less than 0.3% THC levels, which cannot cause any cerebral-altering effects. Henceforth, many medical institutions are evaluating the efficacy of CBD and potentially leveraging it for medical applications. Furthermore, current studies have linked CBD to the successful treatment of a number of ailments such as cancer, chronic pain, multiple sclerosis, and epilepsy. Primarily, most studies have returned promising results and as a result, the U.S. Food and Drug Administration ultimately approved Epidiolex, the first ever cannabis-derived drug, in order to treat epilepsy among children. The approval of Epidiolex marked a historic milestone for the cannabis industry because it is the first time a cannabis-based product has been recognized by a U.S. agency since the prohibition era began. The FDA’s decision highlights the medical importance that CBD can offer for consumers. However, in order to progress further in the medical cannabis marketplace, the FDA said it requires more large-scale positive clinical trials to fully understand CBD. Nonetheless, more and more countries around the world are beginning to explore opportunities within the CBD industry. Significant economic, political, and legislative shifts across the world are expected to impact the approval of CBD. According to data compiled by Reports and Data, the global CBD market is expected to grow from USD 1.04 Billion in 2018 to USD 16.32 Billion by 2026. Additionally, the market is projected to witness a CAGR of 27.7% during the forecasted period. Pressure BioSciences, Inc. (OTC: PBIO), Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE), Charlotte’s Web Hldgs Inc. (OTC: CWBHF) (CSE: CWEB), The Green Organic Dutchman Holdings Ltd. (OTC: TGODF) (TSX: TGOD), MariMed, Inc. (OTC: MRMD)
MariMed Inc. (OTCQB: MRMD), a leading multi-state cannabis operator focused on health and wellness, today announced the appointment of Mr. David Allen to its Board of Directors effective immediately. As a Director, he will serve as Chair of MariMed’s Audit Committee.
Medical cannabis legalization has been sweeping throughout countries worldwide as many look for alternatives to traditionally prescribed treatments and medications. Before the modern era, cannabis was a popular herbal medicinal treatment in Chinese, Indian, Egyptian, and Islamic cultures. However, under international regulations, cannabis was deemed illegal nearly a century ago because of the psychoactive properties stemming from the marijuana derivative of the plant. However, despite regulatory laws, many countries have since decided to move forward and legalize medical cannabis due to its therapeutic benefits. Countries such as Australia, Canada, Chile, Czech Republic, Germany, Italy, Mexico, the U.K, and parts of the U.S. have all adopted medicinal cannabis legislation. Predominantly, cannabis is used to treat a variety of medical ailments which includes cancer, chronic pain, depression, diabetes, glaucoma, migraines and epilepsy. Current modern treatments and surgical procedures to treat conditions such as cancer and epilepsy can be highly expensive for an average person. For instance, the treatment of epilepsy (VNS therapy) in the U.S. can cost upwards of USD 20,000, which includes implants and a surgical procedure. However, the costs of surgery and care can vary in different parts of the U.S. and can increase over time, according to the Epilepsy Foundation of Greater Chicago. Furthermore, patients will also need regular appointments with their neurologist to check the device, so while VNS therapy can be effective for patients suffering from epilepsy, the price can be quite hefty. Recently, however, the U.S. Food and Drug Administration legalized Epidiolex, the first cannabis-derived drug used to treat Dravet syndrome and Lennox-Gastaut syndrome common among children. As clinical trials and research continue to undergo, government regulators are becoming more inclined to evaluate the efficacy of cannabis. And as more U.S. states and countries continue to legalize cannabis for medical applications, the market is positioned to become a global phenomenon, as according to data compiled by IMARC Group, the global medical cannabis market was estimated at a value of USD 13.4 Billion in 2018. By 2024, the market is expected to exceed a value of USD 44.4 Billion while exhibiting a CAGR of 22.9% from 2019 to 2024. Trutrace Technologies Inc. (OTC: BKKSF) (CSE: TTT), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH), MariMed Inc. (OTC: MRMD), InMed Pharmaceuticals, Inc. (OTC: IMLFF) (TSX: IN), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT)
Experiments with next-generation delivery systems appear certain to lead to better cannabis-based products.
With the “green rush” intensifying, cultivators are tasked with the challenge of meeting consumer demands. As such, cultivators around the world are building large scale facilities in order to produce tons of cannabis. For instance, U.S. states such as Arizona, Colorado, California, and Oregon are creating greenhouses that yield upwards of 50,000 pounds of flower. Similarly, Canadian producers are building mega greenhouses in regions such as Europe and Australia, as their respective markets begin to grow. However, obtaining licensing in order to operate a grow facility is highly competitive. The Government of Canada reported that there were 179 companies that obtained licenses from Health Canada for cultivation, distribution, and production. The number of applicants also sharply rose when Canada fully legalized cannabis back in October 2018. Health Canada has been steadily approving licenses, yet, companies are still challenged with meeting a consumer base of millions. According to Statistics Canada, by the end of the first quarter of 2019, there were reportedly 5.3 million or 18% of Canadians aged 15 years and older who smoked cannabis in the prior 3 months. Among the group, 646,000 users reported that they were trying cannabis for the first time, nearly double the estimated number of 327,000 a year ago. Moreover, almost half of Canadian cannabis users reported that they obtained their products from a legal source compared to just 23% back in 2018. The staggering change highlights just how swiftly the legalization of cannabis has impacted Canada. So far, the Canadian government has limited many companies in terms of their grow house sizes and the quantity of cannabis they can produce. The strictly enforced regulations ultimately led to major shortages across Canada shortly after legalizing cannabis. Nonetheless, more and more companies are gradually obtaining licenses and agreements in order to produce cannabis to meet the accelerating demand. 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. WeedMD Inc. , Acreage Holdings Inc. (CSE: ACRG.U), Neptune Wellness Solutions Inc. , MariMed Inc. , Emerald Health Therapeutics Inc.
Fueled by an explosion of CBD-infused edibles, billion-dollar projections for the CBD market may even be conservative.
A couple of recent articles painted a rosy picture for hemp cultivation in the next few years. An article [https://www.marijuanamoment.net/industrial-hemp-cultivation-exploded-in-the-u-s-last-year-report-shows/] on Marijuana Moment said: “Industrial hemp production significantly increased in the U.S. in 2018, with farmers cultivating three times as many acres of the crop as compared to the previous year. Farmers grew more than 78,000 acres of legal hemp last year, the advocacy group VoteHemp reported. In 2017, they grew about 26,000 acres and in 2016, the total was just under 10,000 acres… But while those are impressive gains–the product of a growing number of state-level reform policies that expanded the pool of farmers licensed to grow hemp… expect another massive surge in 2019 thanks to hemp’s outright legalization through the new Farm Bill… The legislation is a game-changer in terms of production estimates, advocates say. And it’s not just California and Colorado and the western states that are getting into the picture. An article focusing on northeastern U.S said: “Other owners of tens of thousands of acres of preserved agricultural land are betting on a bill that’s working its way through the state Legislature that will allow them to join a business that’s expected to be worth $22 billion by 2022. The demand for CBD products is exploding. At the moment the demand is far outpacing the supply,” said Heather Darby, a hemp expert at the University of Vermont Extension who has advised agricultural officials and prospective hemp cultivators in Massachusetts. “Farmers and businesses are scaling up production quickly and moving from producing an acre to producing 50 acres… About 1,500 to 2,000 hemp plants can be grown per acre generating between $40,000 and $50,000, according to information provided by Brightfield Group, a Chicago-based cannabis research firm. Active Companies from around the market with current developments this week include: Marijuana Company of America, Inc. , VIVO Cannabis Inc. , MariMed Inc. , Kona Gold Solutions, Inc. , Terra Tech Corp. .
— Wednesday, May 15 – CannaStocks 2019 Q1 Investor Conference; OTC Markets Group Headquarters, 300 Vesey Street, New York, NY
Following the rise of the cannabis industry, many consumers around the U.S. have heard of at least one of its derivatives: CBD. CBD, or cannabidiol, is a non-addictive compound found in the resinous flower of the cannabis plant. Due to its therapeutic benefits, many medical institutions have sought to use CBD as an alternative to traditional treatments. Generally, when compared to its fellow component, THC or tetrahydrocannabinol, CBD has significantly lower levels of THC, meaning that it does not provide consumers with the psychoactive effects often associated with cannabis. Moreover, due to THC’s biological makeup, multiple government agencies have banned the substance, prompting many cannabis-based companies to integrate hemp or CBD operations into their business portfolios. Now, consumers can easily find CBD-based products at their local convenience stores or pharmacies. Nonetheless, these products are expected to contain less than 0.3% THC levels, which is the legal limit for commercially sold CBD-based products, while typically, most retailers and dispensaries offer products containing 18:1, 8:1, 4:1, 2:2, or 1:1 CBD to THC ratios, according to Care By Design Chief Executive Officer Chad Connor. The varying ratios offer consumers different effects, while still remaining fairly similar. The current widespread proliferation of CBD-based products has further highlighted the rapid expansion of the industry. And, as more retailers and medical institutes continue to sell CBD products, the industry is well positioned to become an explosive marketplace, with Brightfield Group’s research projecting the U.S. hemp CBD market to reach USD 22 Billion by 2022. Pressure BioSciences, Inc. (OTC: PBIO), Green Thumb Industries Inc. (OTC: GTBIF) (CSE: GTII), Acreage Holdings Inc. (OTC: ACRGF) (CSE: ACRG.U), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), MariMed Inc. (OTC: MRMD)
A recent article [https://www.forbes.com/sites/irisdorbian/2019/03/12/cbd-market-could-pull-in-16-bln-by-2025-says-study/#5e14f3e73efd] titled “CBD Market Could Pull In $16 Billion By 2025, Says Study” ran on FORBES website discussing a renowned Wall Street investment bank’s view of the future revenues for the CBD market. It said: “… New York-based investment bank Cowen & Co. released a study on the CBD (cannabidiol) market. Of the findings, one of the most intriguing was that nearly 7 percent of the 2,500 polled, said they had used CBD, an active ingredient in marijuana that purportedly provides relief to patients without getting them high, as a supplement. This figure was far higher than what the Cowen analysts had expected. Yet even more fascinating was the projected estimate Cowen analysts made about the revenue of this market–$16 billion by 2025. This number is a marked jump from the estimated retail sales of CBD consumer products in 2018 that ranged between $600 million and $2 billion. Although CBD is technically legal as a result of the Farm Bill that passed late last year, the legal marijuana economy is still fragmented as a result of the federal illegality. Currently, 33 states and Washington, D.C. have legal medical markets while 10 states (plus D.C.) permit recreational use.” Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. , Terra Tech Corp. (OTCQX: TRTC), Aphria Inc. , MariMed Inc. (OTCQB: MRMD), CV Sciences, Inc. (OTCQB: CVSI).