PALM BEACH, Florida, February 2, 2017 /PRNewswire/ --
With demand rising and the industry booming, legal marijuana operators and companies in the burgeoning cannabis industry are racing to develop new products and services, acquire land and other assets to enable the enhancement of drastically increasing revenue streams and production capabilities. Major players in the sector with developments of note in the markets include Vinergy Resources Ltd. (OTC:VNNYF), Eco Science Solutions, Inc. (OTC:ESSI), Canopy Growth Corporation (OTC:TWMJF) (TSX:WEED.TO), mCig, Inc. (OTC:MCIG) and Aurora Cannabis Inc. (OTC:ACBFF) (TSX-V:ACB.V)
Vinergy Resources Ltd. (OTCQB:VNNYF) (CSE:VIN.CN) - dually listed on the U.S. OTC markets and Canadian CSE Exchanges - in conjunction with its proposed acquisition of MJ Biopharma (announced December 14, 2016) is pleased to announce that it has signed a Letter of Intent (LOI) to acquire up to 51% of a European multinational plant breeding company ("Target"). The Target has audited annual sales in excess of CAD $14,000,000 and adjusted EBITDA of over CAD $2,000,000.
This development is a major step forward in establishing Vinergy as a leader in the global cannabis industry. The Target is a leading developer of plants and plant genetics and has been providing global customers with various commercial agriculture services for over 25 years. In 2016 they shipped over 35,000,000 plant products to the global marketplace. As part of the acquisition, Vinergy now has access to an extensive catalogue of over 2000 hemp and cannabis strains with the ability to supply those strains to customers globally. Read this and more news for Vinergy Resources at: http://marketnewsupdates.com/news/vnnyf.html
Together with Vinergy, the Target has the capacity to expand rapidly into the hemp, cannabis and cannabinoid (CBD) sectors across Europe. "CBD is revolutionizing the global chronic pain management market and we have determined we can utilize our first mover advantage to take a leading market position in multiple countries," said Mr. Kent Deuters, CEO of MJ Biopharma. "Given the current marketplace dynamics, existing customer base and technology we now have access to; we plan to immediately roll out several new hemp and CBD initiatives. Additionally, it's important for our investors to know that we are diversified and not totally dependent on the cannabis space but have multiple complimentary revenue verticals."
The global CBD market is experiencing significant growth: Europe's market potential for CBDs is estimated to be €2 billion as a treatment for chronic diseases, according to a new report by Nova-Institute and HempConsult (both of Germany). The reports reviewed the market for non-psychotropic CBD which is increasingly in demand as a food supplement and pharmaceutical. The Hemp Business Journal estimates the total U.S. CBD market will grow to a $2.1 billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-based sources.
In other Cannabis/Legal Marijuana market performances and developments:
Eco Science Solutions, Inc. (OTC:ESSI) closed up over 4% on Wednesday trading over 645,000 Shares by the market close. Eco Science Solutions recently announced that it has entered into an Equity Purchase Agreement, that at current pricing would net the Company greater than $30 million for working capital and strategic acquisitions. Additionally, Company Management is providing a summary business execution framework for parties that are interested in the following along with execution of the Eco Science Solutions business plan.
Canopy Growth Corporation (OTC:TWMJF) (TSX:WEED.TO) closed up slightly on Wednesday on the U.S. Markets and on the Toronto Exchange trading over 1.3 Million shares on the Toronto side. Canopy Growth Corporation, through its subsidiaries, produces and sells medical marijuana in Canada.
mCig, Inc. (OTCQB:MCIG) closed up over 17% on Wednesday trading over 12.5 Million shares by the market close. mCig Inc., a diversified company servicing the legal cannabis, hemp, and CBD markets, announced Wednesday it has entered into legally binding subscription agreements with Paul Rosenberg, Chairman and Chief Executive Officer and Michael Hawkins, Chief Financial Officer for the issuance of 25,000 newly issued Series A Preferred shares each. Under the agreements, Mr. Rosenberg and Mr. Hawkins will subscribe for and purchase directly or through their own beneficially owned and controlled special purpose vehicle 25,000 shares of Series A Preferred stock each for a total purchase price of $200,000 ($100,000 each), or $4.00 per share, which equates to $0.40 per common share in conversion. In addition to the Series A Preferred stock, Mr. Rosenberg and Mr. Hawkins will each receive a five year warrant for an equal amount of common shares at $0.75 per share.
Aurora Cannabis Inc. (OTCQB:ACBFF) (TSX-V:ACB) and Radient Technologies ("Radient") (RTI.V) recently provided an update on their previously announced collaboration arrangements. As previously announced, the parties have entered into a memorandum of understanding ("MOU") to evaluate an exclusive partnership for the Canadian market with regard to the joint development and commercialization of superior and standardized cannabinoid extracts. In accordance with the memorandum of understanding ("MOU"), the parties, on January 4, 2017, entered into a joint venture research agreement pursuant to which Radient and Aurora are working to confirm the effectiveness of Radient's MAP™ technology for cannabis extraction. Initial work under the study is ongoing.
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