NEW YORK, January 11, 2018 /PRNewswire/ --
According to a report by Forbes, Brightfield Group projects that Hemp-derived cannabidiol (CBD) will be a billion-dollar market in just three years. The CBD market is a large part of the legal cannabis industry. CBD products do not have any psychotropic effects, and are usually used for medical purposes. Brightfield's data estimates that hemp CBD sales have already hit $170 million in 2016 and at a 55% compound annual growth rate over the next five years the market will cross the billion-dollar mark. Phivida Holdings Inc. (OTC: PHVAF), Namaste Technologies Inc. (OTC: NXTTF), Cannabis Sativa, Inc. (OTC: CBDS), 22nd Century Group Inc. (NYSE: XXII)
Bethany Gomez, the Director of Research at Brightfield Group, explained, "One of the most surprising things we found during this research was how many companies are currently operating in the space, and how few of them are generating significant revenue. Essentially everyone is trying to do hemp, but only a handful are doing it well. It's seen as easy because it can be sold online but, with restrictions on traditional marketing, it is very difficult to connect with your core consumer and even communicate why they need your product."
Phivida Holdings Inc. (OTC: PHVAF) also listed on the Canadian Securities Exchange under the Ticker 'VIDA'. Just earlier today the company announced breaking news that, "it has signed a Global Digital Reseller-Supply Agreement. As key terms in the agreement, Namaste has been approved as the preferred global online retailer and digital affiliate marketing partner for Phivida's product line of premium hemp-derived Cannabidiol ("CBD") infused functional beverages and clinical heath products. The agreement includes a global online territory, targeting the launch in Germany and Australia (the "Territories").
Phivida CBD beverages, extracts, juices and shots are professionally formulated by health care practitioners, made with premium ingredients, tested for quality, safety and manufactured to GMP standards. This Agreement represents a strategic initiative between both companies to promote high quality CBD products through Namaste's platform and to the Company's existing databases of users within the Territories. CBD is a cannabinoid compound which can be derived from both cannabis and hemp plants and plays a vital role in the emerging global medical cannabis market.
With Phivida's management team having a strong background from the beverage industry and branding, including former senior executives from Redbull, Proctor and Gamble and McKesson's, Namaste is pleased to be able to offer Phivida's premium CBD beverages and infusions to its patients and practitioners globally, with an initial launch in Australia and Germany.
Terms of the Agreement - Namaste has exclusive rights for online retail of Phivida's products in the Territories - The Agreement is valid for a 24-month period - The Agreement payment terms are net 30 days - Namaste shall be responsible for delivery costs - Namaste will under no circumstance retail PHIVIDA products for a price that is less than the regular retail price at which the products are advertised on PHIVIDA's website - The Agreement states that all online product marketing expenses within the Territories will be shared equally between PHIVIDA and Namaste - The Agreement is subject to obtaining a legal opinion from a designated legal firm, agreed to by both parties.
Namaste's globally diversified network of e-commerce sites and distribution centers will allow Namaste, in its partnership with Phivida, to reach users in new and emerging medical cannabinoid based medical and consumer health markets. This Agreement further represents Namaste's commitment to deploy its strategic initiatives in an effort to bring the most innovative products to market. Namaste's growing global database of consumers continues to provide value to the Company and its partners, as it aims to leverage its technical expertise relating to its cutting-edge SEO and machine learning technologies. This Agreement represents a pilot project between both companies whereby Namaste will distribute Phivida's proprietary CBD beverages and infused products within the designated territories. Both companies intend on further expanding distribution through other markets where Namaste maintains significant market share.
Management Commentary - Sean Dollinger, President and CEO of Namaste comments: "Namaste is extremely excited to be partnering with Phivida and its world-class management team. We're looking forward to entering the beverage space together with Phivida as we believe there is significant demand for these products in our market. Many of our successes to this point can be largely attributed to our keen ability in identifying industry leaders and then forming strategic alliances. Our partnership with Phivida further demonstrates that ability, and we feel very optimistic to be collaborating with a management team whose pedigree speaks for itself. We would like to thank Phivida for granting Namaste rights of its online retail products in the Territories, as we expand our presence globally.
We fully expect this partnership to evolve and fully intend on exhausting all opportunities whereby both parties are able grow and expand their respective market share. Not only does this offer Namaste the ability to expand its product line but so too does it help us in penetrating new markets as we look to create the world's most expansive online medical cannabis marketplace."
John - David Belfontaine, President and CEO of Phivida reports: "As Phivida continues to expand is CBD product offerings into a $1 Trillion global health and wellness market, it is critical that we secure the strongest distribution partners. Ecommerce and digital marketing is a core horizontal within our greater strategic business plan, and Namaste is an ideal partner to expand our online presence into emerging markets around the world. We look forward to launching our global digital marketing and distribution platform with Namaste's support as a key strategic partner."
Namaste Technologies Inc. (OTCQB: NXTTF) earlier this week reported that it has entered into a Services Agreement with 3955 Trading Inc., Canada's first online marketplace for the wholesale purchase of medical cannabis certified under the Access to Cannabis for Medical Purposes Regulation. Cannamerx is a fully automated, ACMPR-compliant forward auction trading platform for bulk cannabis and cannabis products in Canada. Developed in close collaboration with Canadian licensed producers, Cannamerx is designed to facilitate the trade of bulk cannabis and cannabis products between licensed producers throughout the country. Namaste believes that Cannamerx's platform will offer strategic benefits to the Company's wholly owned subsidiary, Cannmart Inc., which is a late stage ACMPR applicant for a medical cannabis "sale-only" license. Through Cannmart, Namaste will create an online retail marketplace for medical cannabis that will offer the largest variety of products sourced from ACMPR licensed producers as well as international cultivators.
Cannabis Sativa, Inc. (OTCQB: CBDS) is engaged in the licensing of cannabis related intellectual property, marketing and branding for cannabis based products and services, operation of cannabis related technology services, and ancillary business activities. On December 4, 2017, the company announced that its subsidiary, PrestoDoctor, is expanding its online medical marijuana recommendation services into New York. PrestoDoctor currently serves patients via both their online platform and with dispensary kiosks operating in California and Nevada and will now extend their online services to patients located in the State of New York. "New York is a heavily populated area and has a high opiate addiction," said Robert Tankson, Co-Founder and COO of PrestoDoctor. "Through PrestoDoctor we want to bring a safer option to the New York area for pain treatment as well as treatment of other medical conditions."
22nd Century Group Inc. (NYSE: XXII) is a plant biotechnology company focused on genetic engineering and plant breeding which allows the increase or decrease of the level of nicotine in tobacco plants and the level of cannabinoids in hemp/cannabis plants. 22nd Century's wholly-owned subsidiary, Botanical Genetics, LLC, entered into a worldwide license agreement with Anandia Laboratories Inc. Under the terms of the agreement, the company was granted an exclusive sublicense in the United States and a co-exclusive sublicense in the remainder of the world, excluding Canada, to patents and patent applications relating to the cannabis plant that are required for the production of cannabinoids, the major active ingredients in the cannabis plant. The Company's ongoing research is product-oriented and focused on developing a range of next generation industrial hemp plants that contain optimized levels of medically important cannabinoids, such as CBD, CBC, and CBG.
Emerald Health Therapeutics, Inc. (OTCQX: EMHTF) operates through Emerald Health Botanicals Inc., a wholly owned subsidiary and Licensed Producer under Canada's Access to Cannabis for Medical Purposes Regulations. Through Botanicals, Emerald is authorized to produce and sell dried medical cannabis flower and medical cannabis oil. On December 15, 2017, the company's subsidiary Northern Vine Labs and Abattis Bioceuticals Corp., announced that Health Canada has approved an amendment to the Company's dealer's license. The license amendment provides the Company the ability to transport, deliver and sell product to other Licensed Dealers (LD), authorized persons under the Controlled Drug and Substance Act (CDSA), and Licensed Producers (LP). Along with the Company's already authorized activities for analytical testing, extraction, and import/export, this amendment also allows Northern Vine Labs to broaden its business opportunities through the production and sale of downstream cannabis products.
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