The Cannabis Industry Turns to Innovative Technologies to Preserve Growth

Last month, Illinois became the 11th state to legalize the recreational use of cannabis within the United States. The state’s decision marks another high point in the movement that continues to sweep through the U.S. Specifically, Colorado, Washington and Oregon account for 42% of the total U.S. cannabis sales. Meanwhile, smaller markets such as Illinois, Massachusetts, Michigan, New Jersey, and New York only make up 11% of the total U.S. market, according to the Chicago Tribune. However, analysts from Brightfield believe that by 2023, the market share will flip, with eastern states accounting for 34% of the market, while western states drop by 20%. However, the market is still progressively maturing across the whole country, and even abroad. Furthermore, similar to other prominent global industries, the need for adaptation is prevalent within the cannabis market. The integration of technology has often made daily tasks for companies exponentially easier, further driving their financial growth. In the cannabis industry in particular, technology is being leveraged among cultivators, distributors, and retailers to create seed-to-sale blockchain ledgers. Seed-to-sale technology is a tracking and reporting system that the government and businesses both rely on. The technology keeps track of each and every single gram of cannabis from when it has been planted to when it is purchased by a consumer at the store. Moreover, throughout the process, the details are also relayed back to the government in order to ensure quality control and prevent mixture with illicit products. The advanced technology benefits both businesses and consumers by ensuring that products are delivered from a safe channel and are properly grown. Additionally, the regulatory matters that the government and businesses are implementing are further promoting the legal marketplace. And consumers who have access to information regarding where the cannabis was grown, what it was treated with, and where it has been before it was delivered will further drive sales growth. As a result, the global legal marijuana market is expected to reach USD 146.4 Billion by 2025 while registering a CAGR of 34.6%, according to data compiled by Grand View Research. Codebase Ventures Inc. (OTC: BKLLF) (CSE: CODE), The Supreme Cannabis Company, Inc. (OTC: SPRWF) (TSX: FIRE), MariMed Inc. (OTC: MRMD), Aleafia Health Inc. (OTC: ALEAF) (TSX: ALEF), Terra Tech Corp. (OTC: TRTC)

Supreme Cannabis: At the Epicenter of Premium Products — CFN Media

Seattle, Washington–(Newsfile Corp. – July 22, 2019) – CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry announces publication of an article discussing (TSX: FIRE) (OTCQX: SPRWF).

Maintained Legalization Efforts Yield Another Win for the Cannabis Market

Recently, Illinois became the 11th U.S. state, including the District of Columbia, to legalize cannabis entirely. Illinois’ decision came not too long after Michigan approved its own legislation to legalize cannabis back in November 2018, during the U.S. midterm elections. While only a fifth of the U.S. has legalized cannabis, the marketplace accounts for a majority of the global cannabis market share. Primarily, the U.S. is driven by a handful of states including California, Colorado, and Washington. And these three states, in particular, were among the first states to venture into the cannabis industry. Now, these states are responsible for collectively driving in billions of dollars in cannabis sales each year. In recent times, cannabis legalization has been on the agenda of many U.S. politicians whether for medical or recreational use. However, the U.S. Senate still remains uncertain on the matter. Nonetheless, states have been given the jurisdiction to legalize cannabis or decide to keep it regulated. Overall, the market has also been a prevalent force on the global scale, yet, most analysts tend to focus on the U.S. market because of the attractive opportunities the country presents. Barclays analysts have speculated that if the U.S. cannabis market was legalized today, it could be worth roughly USD 28 Billion. Furthermore, Barclays predicts that the market will grow to USD 41 Billion by 2028 on a pre-tax basis. Barclays had compiled data from a 2017 survey that indicated that approximately 26 million Americans above the age of 12 “were users of marijuana,” or nearly 10% of the total U.S. population. At USD 41 Billion, the cannabis market “could generate almost USD 28 Billion of tax revenues across all levels of government,” said Barclays. The firm examined data from Colorado, Washington and Nevada and highlighted that tax revenues from cannabis have already surpassed alcohol tax revenues, and in the case of Colorado, already exceeded tobacco tax revenues. While the U.S. is a major growth driver for the global industry, it is important to note that more and more countries around the world are also beginning to legalize cannabis, predominantly for medical purposes. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Innovative Industrial Properties, Inc. (NYSE: IIPR), Greenlane Holdings, Inc. (NASDAQ: GNLN), Planet 13 Holdings Inc. (OTC: PLNHF) (CSE: PLTH), The Supreme Cannabis Company, Inc. (OTC: SPRWF) (TSX: FIRE)

The Most Important Cannabis Trends of 2019

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

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)

CBD Companies Quickly Expanding Their Global Footprint

Demand for CBD is on the rise all over the world. All as cannabis-infused products find their way onto the shelves of major retailers, with analysts believing the trend provide a significant catalyst. Piper Jaffray, for example, believes the CBD market alone could be worth up to $100 billion. In addition, according to Arcview Market Research and BDS Analytics, global spending on cannabis could reach $57 billion by 2027. All as people around the world wake up to the health benefits of cannabis, including the treatment of insomnia, stress, anxiety, pain, and even chronic issues. That’s opening a wide range of opportunity for companies including The Yield Growth Corp. (CSE:BOSS) (OTCQB:BOSQF), Canopy Growth Corporation (NYSE:CGC)(TSX:WEED), The Supreme Cannabis Company Inc. (TSX:FIRE) (OTCQX:SPRWF), Green Growth Brands Inc. (CSE:GGB)(OTCQB:GGBXF), and Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB).

Momentous Shifts in Cannabis Regulations Open the Door for Continued Global Growth

The movement for cannabis legalization began back in the 1990s when California became the first U.S. state to legalize medical cannabis. Subsequently, several other states began to legalize cannabis for medicinal purposes throughout the decade. And while the 1990s did pave the way for the birth of the legal cannabis industry, recent years have seen the market begin its growth in earnest. First, in December of 2013, former Uruguay President Jose Mujica legalized recreational cannabis. Shortly after, U.S. states Colorado and Washington legalized adult-use cannabis in 2014, becoming the first two states to allow legal adult-use. Throughout the next several years, more countries continued to adopt medicinal cannabis legislation. Meanwhile, the U.S. was seeing more states adopt recreational cannabis before, in 2018, Canada became the second nation to fully legalize cannabis. Moreover, Canada is the only G-7 nation to completely legalize cannabis, even though the remaining G-7 powers have adopted a full or partial medical cannabis legislation, save for Japan. Predominantly, the therapeutic aspects of the cannabis plant are why many nations have decided to legalize its medical use. On the other hand, some countries have moved to legalize cannabis as an economic growth driver or to suppress the damage caused by the war on drugs. For instance, Germany recently approved legislation for medical cannabis in 2017 for seriously ill patients as the German government is trying to reduce the number of patients dependent on narcotics. Meanwhile, Uruguay moved to legalize cannabis to reduce the war on drug crimes. Similarly, Mexico’s President-elect party wants to legalize cannabis as well and Senator Olga Sánchez Cordero, interior Secretary selected by President Andrés Manuel López Obrador, said that illegal cannabis is causing violent drug wars and poverty. While each nation has their own individual reasons to adopt cannabis, they are all collectively working together towards eliminating the stereotype revolving around the plant. According to data compiled by ArcView Market Research and BDS Analytics, worldwide consumer spending on legal cannabis was estimated to be approximately USD 12.2 Billion in 2018. By 2022, consumer spending is expected to reach USD 31.3 Billion while exhibiting a CAGR of 26.7% during the forecast period from 2017 to 2022. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), CannTrust Holdings Inc. (NYSE: CTST) (NYSE: TRST), The Supreme Cannabis Company, Inc. (OTC: SPRWF) (TSX: FIRE), Cresco Labs Inc. (OTC: CRLBF) (CSE: CL)

Cannabis Companies are Aggressively Expanding Their Global Footprint

The cannabis market is gaining significant traction. Over the last year, Canada approved its recreational use. More U.S. states are legalizing. Corporate America is using cannabis in everything from lotions and sunscreen to alcohol and sports drinks. President Trump signed the 2018 Farm Bill into law. In addition, over the next decade, spending on worldwide cannabis could reach $57 billion by 2027, according to Arcview Market Research and BDS Analytics. In their report, “The Road Map to $57 Billion Worldwide Market,” analysts note that the South American market for example could grow from $125 million in 2018 to $776 million by 2027. They also note that Germany could become the leader in the European cannabis market, with Italy expected to see $1.2 billion cannabis sales by 2027. That’s opening a wide range of opportunity for companies including MYM Nutraceuticals Inc., (CSE:MYM) (OTCQB:MYMMF), Cannabis Science Inc. (OTCPK:CBIS), OrganiGram Holdings Inc. (NASDAQ:OGI)(TSX-V:OGI), Curaleaf Holdings Inc. (CSE:CURA)(OTCQX:CURLF), and The Supreme Cannabis Company Inc. (TSX:FIRE)(OTCQX:SPRWF).

Coming Wave of Edibles and Vape Sales has Canadian Cannabis Companies Prepping for Legalization 2.0

The date has been set for the rollout of new cannabis products in Canada, such as vape pens, edibles, beverages, topicals, and extracts. Regulations for this second wave of legalization, dubbed “Cannabis 2.0”, go into effect on October 17th, with products hitting shelves about two months later. Companies are well-positioned for this new growth opportunity are emerging, such as Organigram Holdings Inc. (NASDAQ:OGI) (TSX.V:OGI), Namaste Technologies (TSX.V:N) (OTCQB:NXTTF), The Supreme Cannabis Company (TSX:FIRE) (OTCQX:SPRWF), The Green Organic Dutchman (TSX:TGOD) (OTCQX:TGODF) and HEXO Corp. (NYSE:HEXO) (TSX:HEXO).