In the news release, CBD Market Growth Larger Than Expected Multi-billion Dollar Industry, issued May 21, 2019 by FinancialNewsMedia.com over PR Newswire, we are advised by the company that there are additional edits to the release, including the first paragraph.
CBD Market Growth Larger Than Expected Multi-billion Dollar Industry
Financialnewsmedia.com News Commentary
PALM BEACH, Florida, May 21, 2019 /PRNewswire/ -- A recent industry report on the future of the CBD market, had higher than expected revenue figures than expected. 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., Medical Marijuana, Inc., Kona Gold Solutions, Inc., CV Sciences, Inc., PotNetwork Holdings, Inc.
Marijuana Company of America, Inc. (OTCQB: MCOA) BREAKING NEWS: Marijuana Company of America, an innovative hemp and cannabis corporation, today reported its financial results for the first quarter ended March 31, 2019. A few First Quarter 2019 Financial and Operational Highlights:
- Total revenues were $114,810 for the quarter ended March 31, 2019, compared to $19,010 for the same period prior year, representing a 504% increase year-over-year. The increase was driven by growth in demand and sales of its hempSMART products in conjunction with the Company's global expansion program.
- Gross profit for the first quarter of 2019 increased to $74,932, compared to $8,564 for the same period prior year. Gross margins expanded to 65.3% in the first quarter of 2019, compared to 45% from the first quarter of 2018.
- Total operating expenses for the first quarter of 2019 were $989,037, compared to $302,872 for the same period prior year, as a result of increases in SG&A associated with the growth of the Company's dedicated associate sales program for its hempSMART sales.
- Net loss from operations was $4.2 million for the quarter ended March 31, 2019, compared to net income of $4.2 million for the quarter ended March 31, 2018. The previous year's income was essentially due to gain in derivatives.
- Usage of cash flow from operations decreased year-over-year to $207,098 for the quarter ended March 31, 2019, from a cash usage of $497,250 for the quarter ended March 31, 2018.
- Total assets were $2,143,188 for the quarter ended March 31, 2019, an increase of 12% from $1,919,782 for the quarter ended March 31, 2018. The increase of total assets is due to an increase in cash, inventory and long-term investments that the Company made in the quarter.
- Total liabilities were $8,087,340 for the quarter ended March 31, 2019, compared to total liabilities of $5,053,887 for the quarter ended March 31, 2018. The increase of liabilities has largely to do with derivative liabilities increasing by $2.7 million and convertible notes issued during the quarter.
"Our first quarter results demonstrate our focus on laying the foundation and investments to establish our presence in the high-growth cannabis, hemp and CBD markets," said Mr. Don Steinberg, Chief Executive Officer of Marijuana Company of America. "During the quarter, we successfully prelaunched our hempSMART line of products in the United Kingdom and promoted them at Super Bowl LIII. Our hempSMART Brain™ product was also issued a U.S. Patent, followed by the exciting news of our engagement with Natural Plant Extract of California to form a joint venture to operate a cannabis delivery service. Our passion from the beginning has been on our hempSMART wellness products, which continue to successfully generate demand and interest worldwide. As a result, we have significantly expanded our hemp research and growth business. With our powerful consortium of partners and joint venture relationships, we believe we are strategically positioned to vertically integrate our operations and further increase our revenue potential." Read this and more news for MCOA at: https://www.financialnewsmedia.com/news-mcoa/
In the industry developments and happenings in the market this week include:
Medical Marijuana, Inc. recently announced that its subsidiary Dixie Botanicals® has released a new orange-flavored cannabidiol (CBD) Isolate Tincture. Each 1 oz. bottle of Dixie Botanicals® CBD Isolate Tincture contains 250 mg of CBD, medium chain triglycerides (MCT) oil, and an all-natural orange flavor for a refreshing taste. This tetrahydrocannabinol (THC)-free tincture is designed for consumers on-the-go because of its compact size and convenient dropper.
"Dixie Botanicals continues to bring consumer-friendly, great-tasting CBD products to the market with the intent of making it as easy as possible for people to nourish their endogenous cannabinoid system," said Medical Marijuana, Inc. CEO Dr. Stuart Titus. "We hope that the large variety in products that this brand offers can help us reach many consumers with a variety of flavor and delivery method preferences."
PotNetwork Holdings, Inc. through its wholly-owned subsidiary PotNetwork Media Group is at the forefront of a new revival of print journalism, according to a recent article published on SmallCap Network. As per the piece, the Company's recently launched PotNetwork Magazine, which went into circulation this past February, is one of a select few successful publications to have grown out of the cannabis boom of the past few years.
PotNetwork Magazine has "[established] itself as a vital part of a new sector of the media industry," according to SmallCap Network. "We're extremely proud of our PotNetwork Media Group division and the business opportunities that is has afforded us," said Kevin Hagen, CEO of PotNetwork Holding, Inc. "To see such growth in such a short amount of time is a testament to our coordinated strength as a Company."
CV Sciences, Inc. recently announced that its industry-dominating PlusCBD OilTM products were used in the first study to date examining the clinical benefit of CBD for the treatment of Post-Traumatic Stress Disorder (PTSD). The study, published in The Journal Of Alternative And Complementary Medicine in April 2019, examined the effect of oral CBD administration on symptoms of PTSD in a series of 11 adult patients at an outpatient psychiatry clinic. CV Sciences provided various PlusCBD Oil products for the study; delivery systems and usage were determined by patient and provider preference. The published study can be viewed at the following link: Cannabidiol in the Treatment of Post-Traumatic Stress Disorder: A case Series. CV Sciences was not involved in the data collection, data interpretation, the preparation of the article, or the decision to submit for publication.
Kona Gold Solutions, Inc. recently announced it has signed an LOI to lease warehouse space in Greer, South Carolina, right outside of Greenville. The warehouse encompasses 30,000 square feet, in which the Company will acquire 15,000 square feet with the option to lease the additional 15,000 square feet within two years. The new warehouse space will operate as Kona Gold's distribution hub, where all product will be stored and shipped to distributors around the country. The location will also serve as a new Gold Leaf Distribution hub as the Company expands Gold Leaf's distribution footprint in new markets. Gold Leaf is currently targeting potential distribution acquisitions to expand its territories and product offerings.
Kona Gold moved into its new 5,000 square foot Corporate headquarters one year ago and has already maxed out its capacity to store product at that location as the Company continues its rapid growth. The Florida offices will continue to serve as the Corporate headquarters for the Company.
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