NEW YORK, May 2, 2019 /PRNewswire/ -- Following Canada's legalization of cannabis, as well as the U.S.'s ongoing efforts, cannabis-based companies have seen their revenues grow substantially over the past few years. Last year, the North American region reached several historic milestones within the cannabis industry. Perhaps most notably, Canada's legalization of cannabis was a major event that reshaped the marketplace as the country became the first and only G-7 nation to legalize cannabis, however, several of the other G-7 nations have since followed suit and implemented a partial or full medicinal cannabis legislation. The widespread legalization movement is now causing a growing demand around the world for both medical and recreational cannabis applications. Moreover, the demand is prompting cannabis companies to ramp up operations in order to meet this demand. As a result, cannabis companies are seeing tremendous revenue growth as the cannabis marketplace begins to take off. Nevertheless, the market is heavily hindered by the lack of clinical trials evaluating cannabis and its efficacy., even though despite the lack of research, the industry has already made significant progress in recent years. For instance, the U.S. Drug Enforcement Agency delisted CBD from its Schedule 1 listing. Shortly after the DEA's decision, the U.S. passed the Farm Bill, which legalized hemp. Overall, the U.S. government's decision to soften its cannabis regulatory laws highlights the major steps the industry has taken. Moreover, as cannabis research continues, more countries are expected to adopt medicinal cannabis legislation. On the other hand, the recreational market is continuing to thrive, largely due to the U.S. and Canadian markets continuously expanding. According to data compiled by MarketsandMarkets research, the global cannabis market is projected to grow from USD 10.3 Billion in 2018 to USD 39.4 Billion by 2023. Additionally, the market is expected to register a CAGR of 30.7% during the forecast period. AREV Brands International Ltd. (OTC: AREVF) (CSE: AREV), The Supreme Cannabis Company, Inc. (OTC: SPRWF) (TSX: FIRE), Aleafia Health Inc. (OTC: ALEAF) (TSX: ALEF), Invictus MD Strategies Corp. (OTC: IVITF) (TSX-V: GENE), Choom Holdings Inc. (OTC: CHOOF) (CSE: CHOO)
Primarily, the majority of the cannabis revenue currently stems from medicinal sales. However, it is projected that the recreational sector will overshadow the medical sector within the next several years. For instance, In the second quarter of 2017, California's flower sales accounted for 55% of its total cannabis sales. Then,, in 2018, California witnessed its flower sales decline by 3% in the first quarter. Moreover, 67% of Colorado's cannabis sales were made up of flower when legal sales began back in 2014. Now, flower only accounts for 44% of Colorado's total sales. During the same period, Colorado's concentrates sales more than doubled to 31%, according to BDS Analytics. Consumers are beginning to prefer concentrates and extracts over flower because of the health benefits and more potent effects. On an international-scale, a handful of countries have banned smoking cannabis, but allow vaping. Aaron Salz, Founder of the Stoic Advisory consulting firm in Toronto, says a large export opportunity exists because other countries are modeling their programs after Canada, according to Marijuana Business Daily. "Most countries are choosing to first legalize cannabis oil over flower," he said. "So that's created an opportunity for exports to countries that are starting with strict medical regimes with limited qualifying conditions."
AREV Brands International Ltd. (OTC: AREVF) (CSE: AREV) is currently listed on the Canadian Securities Exchange under the ticker (CSE: AREV). Yesterday, the Company announced that, "it has entered into a Binding LOI with LB Anaheim Street LLC, a company organized under the laws of California, USA ("Anaheim") and LBC Integrated Growers LLC, a company organized under the laws of California, (collectively, the "Companies").
LB Anaheim Street LLC owns a 5,300 square foot facility minutes from the Long Beach Port and holds the highly-coveted Type 7N and shared-use commercial cannabis volatile manufacturing license used for volatile and non-volatile solvent extraction, infusion processing (including edibles, topicals and beverages), packaging and labeling, and a Type S shared use kitchen for producing edibles.
LBC Integrated Growers LLC is a 100 acre cannabis and hemp cultivation AG II zoned property in Santa Barbara County, California. The Type 7N License has a THC canopy size limited to 30,000 square feet per 100 acre parcel. CBD canopy sizes are currently unlimited.
Using BC Bud Depot's advanced genetics, AREV will plant a short-season crop of auto-flowering, high-THC feminized seeds in March of each year. This will yield a flowering crop in a period of eight weeks. A second high-THC crop of elite proprietary genetics will then be planted in May for harvest in September. High-yielding CBD will be harvested from a single annual planting of feminized hemp seeds. The biomass yield will be supplied to the Long Beach location and the entire multi-crop yield is to be pre-purchased by LB Anaheim Street LLC.
Mike Withrow, CEO, stated, "This agreement is a direct result of the tireless work Silvertree has done on behalf of AREV. It is a perfect fit and meets our mandate to enter into partnerships with license-holders who will continue to operate and join the network of licenses in the State of California."
About AREV Brands International Ltd: AREV Brands International Ltd. ("AREV") produces and delivers functional compounds and ingredients from its world-class extraction systems. AREV is revolutionizing the current delivery method of terpenes, cannabinoids and flavonoids. These premium ingredients and formulations are used in products targeted for sale in the natural health, medical, functional food, nutraceutical, sport nutrition and bioceutical markets. AREV innovates through extraction to produce extracts from specific selected plant and exude from trees that address 5 areas of health including Anxiety, Pain Management, Insomnia, Central Nervous System Disorders & Libido."
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The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) (TSX: FIRE) is a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people and uniquely innovative culture. The Supreme Cannabis Company, Inc. recently announced that the Company expects its previously announced oil products line to be introduced to adult-use consumers in select Canadian markets starting April 2019. Supreme Cannabis plans to initially ship oil products to select markets before expanding distribution of its cannabis oil line to additional provinces which is expected by the end of June 2019. Each bottle will contain a proprietary blend of highly-purified cannabis oils and terpenes derived from plants grown by 7ACRES. "Premium oils require premium cannabis," said Navdeep Dhaliwal, Chief Executive Officer of Supreme Cannabis. "Our formulation will leverage super-critical CO2 technology to produce a high quality, purified cannabis oil which we re-formulate with the naturally occurring cannabis terpenes from our 7ACRES' High-End CannabisTM. The result is a unique, plant-based cannabis oil that carries the award-winning qualities of our flower into an oil product for consumers looking for a premium cannabis oil experience."
Aleafia Health Inc. (OTCQX: ALEAF) (TSX: ALEF) is a leading, vertically integrated cannabis health and wellness company with four primary business units. Aleafia Health Inc. recently announced it will add 50,000 kg of extraction capacity with the Phase II expansion of the Company's processing facility in Paris, ON. The expansion will, when operational, see the Company's products and cultivation division, Aleafia Campus, maintain robust combined extraction and cultivation footprints across three facilities. The expansion is expected to significantly increase the processing, extraction and packaging of high-margin derivative products including oils, capsules, sprays and other future formats under the Company's adult-use Symbl and medical Emblem brands. Additionally, the Company will offer tolling and white label services to other Licensed Producers looking to leverage the Company's extraction and packaging capabilities. Aleafia Health is currently purchasing the necessary equipment to meet or exceed the 50,000 kg capacity expansion, including milling, decarboxylation, CO2 extraction and winterization machinery. The Company believes that the 30,000 sq. ft. building expansion will provide significantly more space than is necessary to operate the new cannabis production lines. "In the medium term, a robust, wholly-owned cultivation footprint is vital with ongoing supply shortages," said Aleafia Health Chief Executive Officer Geoffrey Benic. "However, the inevitable commoditization of cannabis will reward companies excelling at product innovation, brand-building and supply chain logistics. Our major extraction expansion will see Aleafia Health doing just that."
Invictus MD Strategies Corp. (OTCQX: IVITF) (TSX-V: GENE) is a global cannabis company offering a selection of products under a wide range of brands. Invictus MD Strategies Corp. recently announced that its wholly-owned subsidiary, Acreage Pharms Ltd., had successfully completed testing on two batches of oil and is working to finalize its application to Health Canada to allow for the sale of bottled cannabis oil and cannabis resin. Acreage Pharms' closed-loop CO2 system performs Subcritical and Supercritical Fluid Extraction utilizing high-pressure carbon dioxide to extract essential oils from botanicals, using specific temperatures and pressures to withdraw different components from plants. The system is operating at full capacity to build inventory in anticipation of Acreage Pharms receiving Health Canada approval. The new product line is expected to include a 1-to-1 ratio of CBD to THC oil, high CBD oil, and high THC oil for both the medial and recreational markets. "We are expanding our portfolio to satisfy consumer demand, adding oils and concentrates to our line-up of premium flower products," said George E. Kveton, Chief Executive Officer of Invictus. Research shows oils are increasing in popularity and we need to remain nimble to keep abreast of market trends."
Choom Holdings Inc. (OTCQB: CHOOF) (CSE: CHOO) is an emerging adult use cannabis company whose mission is to establish one of the largest retail networks in Canada and the United States. Choom™ recently announced that on Friday, April 26, 2019, the Alcohol and Gaming Commission of Ontario ("AGCO") issued a Retail Operator Licence to Lisa Bigioni, and issued a Retail Store Authorization for her Choom-branded cannabis store in Niagara Falls, Ontario, which is expected to open in May 2019. In accordance with the AGCO's requirements, Ms. Bigioni, as a licensed operator, may finalize her store set-up, including ordering and receiving cannabis product and cannabis accessories into her store ahead of opening for business. The AGCO will also conduct a pre-opening inspection to ensure the store is ready to open for business and sell cannabis products to the public in accordance with all applicable regulations. "This is a very exciting time for Choom as we help Lisa to open her store in Niagara Falls using the Choom brand," stated Chris Bogart, President & Chief Executive Officer of Choom Holdings Inc. "With our expertise in the cannabis retail channels, we are delighted to work with Lisa as she looks forward to opening and operating her Choom-branded store in Niagara Falls. The Niagara region represents a tremendous opportunity for her cannabis retail store, with well over 400,000 people living in the regional municipality and welcoming over 14,000,000 visitors a year."
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