NEW YORK, August 29, 2017 /PRNewswire/ --
The predictions for the cannabis industry are staggering. Statista predicts the market may exceed $37.3 billion by 2024. Meanwhile, Forbes estimated the $6.5 billion market in 2016 could grow to $30 billion by 2021, and Bloomberg predicts an increase to $50 billion by 2026. The market is being fueled by demand and legalization, and it's not just about plants. Equipment, infrastructure, cannabidiol products, and investors are components of an industry that seems to have unlimited growth potential. For example, PotNetwork Holding, Inc. (OTC: POTN) (POTN Profile) delivers, through its Diamond CBD subsidiary, widely-distributed CBD hemp extracts used in an assortment of edible gummies available in various types and flavors, vapor liquids, vaping pens, shot packages, and capsules. Others contributing to a rapidly diversifying industry include Agritek Holdings, Inc. (OTC: AGTK), Marijuana Company of America (OTC: MCOA), Hemp, Inc. (OTC: HEMP), and mCig, Inc. (OTC: MCIG).
PotNetwork Holding (OTC: POTN) is focused on multiple verticals within the cannabis industry, and, by sourcing hemp outside the U.S., side-steps current federally-based legal problems involved in growing cannabis domestically. Through this strategy, the company can deliver its products to every state as well as internationally. Among its list of 15 brands is Diamond CBD Gummies, CBD Liquid Gold, Premium Hemp Liquid Pet, Relax Extreme CBD, and CBD Double Shot.
As the CBD industry heats up, PotNetwork subsidiary Diamond CBD continues to see demand for its products. During its exhibit at the ASD Market Week Event in Las Vegas earlier this month, Diamond CBD generated more than $320,000 in revenues (http://nnw.fm/mv9aQ). While the event was a financial win for the company, it also provided considerable brand exposure to an attending audience of more than 40,000 buyers from 88 countries.
In the first two quarters of 2017, PotNetwork reported $5.0 million in sales for its Diamond CBD products, $3.2 million of which were generated in the second quarter alone, representing an increase of 1,495 percent over prior-year second-quarter revenues. This achievement puts the company on track to exceed its fiscal year 2017 forecasts (http://nnw.fm/KxqP2).
"We remain steadfast in our efforts to build real value in our Company. The level of acceptance we are experiencing can only be surpassed by our short and long-term vision for growth. As we continue to accelerate in sales performance, we embrace the opportunity to create a real and tangible success which we expect would ultimately be reflected in shareholder value," PotNetwork CEO Gary Blum stated in the earnings release.
As PotNetwork grows its market reach, the company's Diamond CBD subsidiary is also pursuing medical applications of CBD. Mounting research industry-wide demonstrates CBD's potential to provide symptomatic relief for a wide range of ailments, including rheumatoid arthritis, diabetes, alcoholism, post-traumatic stress disorder (PTSD), epilepsy, antibiotic-resistant infections, neurological disorders, and muscular dystrophy, among many others. Recognizing considerable opportunity in this field, Diamond CBD is conducting its own research to develop premium hemp extracts that contain a broad range of cannabinoids and natural hemp derivatives to potentially address these key markets.
To assist with this endeavor, PotNetwork is assembling an advisory board of physicians and medical cannabis specialists to support management's plans to formulate, produce, and market a spectrum of exclusive and diversely targeted CBD blends. The first to join this new board is Dr. Mark G. Sabbota, who is board certified in internal medicine and cardiology. His experience includes a comprehensive understanding of cannabinoid attributes and corresponding knowledge based on research studies, along with Controlled Substance and DEA Licensure. He is joined by Dr. David M. Feldbaum, MD, FACS, who was named to the board earlier this month (http://nnw.fm/gq1QO). Certified in vascular surgery by the American Board of Surgery, Dr. Feldbaum brings to the table substantial knowledge of the intricacies of vascular health and an acquired understanding of how CBD components can contribute to the optimization of results in his area of expertise.
"This is an exciting time to be on the forefront of the CBD revolution. Being instrumental in the development of such cutting-edge developments, I believe we are enabled to make a difference in the quality of life for many. We stand at the threshold of great new discoveries," Dr. Feldbaum stated in the press release announcing his appointment.
Dr. Feldbaum isn't the only one who sees the potential of PotNetwork's broader business model. In June, SeeThruEquity initiated coverage of PotNetwork with a price target of $0.25. Among other highlights, the analyst noted strength in Diamond CBD's sales momentum and an aggressive marketing campaign. PotNetwork currently trades around $0.05 to $0.06. Among other key items, the analyst report (http://nnw.fm/fc27Ks) notes PotNetwork's year-over-year Q1 2017 revenue growth of 178% and forecasts an increase of 712% in revenues to $8.3 million based on new product launches, strong marketing, and extended international market reach.
A look at other players in the diversified cannabis industry are further evidence of increasing demand, application and momentum.
Year-to-date, real estate investment firm and branding consultant Agritek Holdings (OTCQB: AGTK) has doubled the size of its brand portfolio to include four lines, and, earlier this month, it received an additional $300,000 in backing to fund the development of its land projects in Puerto Rico, Colorado, Canada and Washington State (http://nnw.fm/tR1Mc). Agritek says it has started construction on a cultivation facility in Puerto Rico (http://nnw.fm/gAw0o), where it is funding a 25,000-square-foot facility near San Juan, along with the project's equipment and extraction systems. Per an operations and licensing agreement, the company will be able to take advantage of multiple revenue streams, equipment lease back fees, and monthly consulting fees. It will also have exclusivity for the sale of its oils, vape products, and edibles, products used in Puerto Rico by people with anxiety, multiple sclerosis, epilepsy, and cancer among 14 preapproved conditions for which medical marijuana is permitted.
Agritek also recently announced that it is receiving orders for its MicroDose Oral Strips brand, an alternative to traditional cannabis products in that they are dissolved under the tongue or between the gum and cheek in the mouth, allowing the ingredients to be absorbed directly into the bloodstream.
Marijuana Company of America (OTC: MCOA) has seen growth in its cannabis-related operations as well, in the form of a $5 million fixed funding commitment in August and a $250,000 investment in MoneyTrac Technology, Inc. The deal gives the company a 15% ownership interest in the firm and opens the door to electronic payment processing services, such as the use of mobile applications, E-Wallet services, and processing of prepaid, debit, and credit cards. It also patented its herbal brain health product, hempSMART™ Brain, last month, which is intended to support neurological health and promote neurogenesis through its cannabidiol formulation.
Hemp, Inc. (OTC: HEMP) hasn't slowed the pace either. In January, the company announced plans to expand its presence in North Carolina, with a 3,000-acre hemp farm, following agreements to purchase 1,000 acres from Mullen View Farms and 500 acres from John Finch Farms. The company also has a 70,000-square-foot industrial processing facility in Spring Hope, North Carolina. Aside from its growing operations, it also recently launched a critical piece of equipment. The NuAxon Tech CO2 Supercritical Extractor was purchased in a joint venture with Freedom Leaf, Inc. (OTCQB: FRLF). This system is expected to significantly boost revenue and facilitate growing, cultivation, and cloning processes for high cannabidiol plants.
Serving the cultivation, construction, and production packaging aspects of the marijuana industry, mCig, Inc. (OTCQB: MCIG) is no longer just a vaporizer manufacturer. It has also expanded into the merchant processing segment. The company offers secure payment solutions to participating dispensaries, at low rates for e-commerce and businesses that accept certain credit cards. With high uptime, fast-clearing funds, and secure transactions, the processing system is well-suited for businesses selling cannabidiol products via e-commerce websites. In addition, the company recently applauded the Senate for an amendment that would prevent the government from interfering with medical marijuana programs where they are legal. The legislation is a full amendment to the Commerce, Justice, and Science Appropriations Bill for 2018, prohibiting federal funds from being used to stop states from implementing laws regarding medical marijuana use, possession, distribution, and cultivation.
As discussed above, growth in the global cannabis industry is accelerating due to increased legislation, consumer demand, and the innovations of key market players. PotNetwork Holding is one example of the power of product diversity as it reaches across the industry in the U.S. and internationally. The company continues to execute its mission of making an impact on an industry that, while in its relative infancy, continues to surpass expectations and yield incredible opportunity for growth.
For more information on PotNetwork Holding please visit: PotNetwork Holding, Inc. (POTN)
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