PALM BEACH, Fla., May 6, 2021 /PRNewswire/ -- The CBD Oil extract market is growing but what exactly is making it grow? Recent reports indicate that it is the increasing preferences of oil and tinctures extracted from cannabis which is primarily driving the market growth rate. Out of all cannabinoids, cannabidiol is most widely used for therapeutic reasons due to the lack of psychoactive effects. In many medical applications, cannabidiol oil is used, such as anxiety and depression treatment, stress relief, diabetes prevention, pain relief, cancer symptom relief, and inflammation. Due to the increasing adoption of CBD-based products to treat ailments, the global cannabidiol market is anticipated to grow at a lucrative rate over the forecast period. Increasing awareness of cannabidiol's therapeutic benefits has influenced a buyer to buy cannabidiol products, regardless of their cost. As these have a greater profit margin, commercial retailers are now focusing on selling cannabis-based products. Numerous health and wellness retailers are offering CBD-based products, such as Rite Aid, CVS Health, and Walgreens Boots Alliance. In addition, CVS Health decides to offer CBD topicals all over its 800 stores and Walgreens Boots Alliance is selling CBD-containing topicals across 1500 of its stores in the U.S. Active companies in news today include: Nextleaf Solutions Ltd. (OTCQB: OILFF) (CSE: OILS), GW Pharmaceuticals plc (NASDAQ: GWPH), Sundial Growers Inc. (NASDAQ: SNDL), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), The Valens Company Inc. (OTCQX: VLNCF) (TSX: VLNS).
According to Grand View Research: "The global cannabidiol market size was valued at USD 2.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028. Due to its healing properties, the demand for cannabidiol (CBD) for health and wellness purposes is high, which is the major factor driving the market growth. In addition, the rising acceptance and use of products due to government approvals is a major factor expected to boost production for CBD-infused products."
Nextleaf Solutions Ltd. (OTCQB: OILFF) (CSE: OILS) BREAKING NEWS - Nextleaf Solutions Provides Update on CBD Business - Nextleaf Solutions Ltd. ("Nextleaf", "OILS", or the "Company"), the world's most innovative cannabis extractor, is pleased to announce the following updates around its CBD business:
Nextleaf Boosts CBD Supply with Validated Hemp Partner - Nextleaf, through its wholly-owned subsidiary Nextleaf Labs Ltd. ("Nextleaf Labs" or "Labs"), is pleased to announce that it has validated and entered an initial supply agreement with a B.C.-based hemp supplier (the "Supplier") for CBD rich biomass.
The Supplier will provide a high-quality economical source of hemp biomass which Nextleaf Labs will process into refined and distilled CBD oils using Nextleaf's patented extraction and purification platform. The bulk distilled CBD oils will be supplied to both the wholesale market and directly to provincially-authorized distributors and retailers across Canada by Labs. The net proceeds of such sales are expected to be shared by Nextleaf Labs and the Client to maintain a working capital efficient supply.
The CBD supply will be used for three primary purposes:
- Support the launch of partner brands directly to provincially-authorized distributors.
- Support ongoing and future CBD bulk sales to B2B partners.
- Support internal CBD-based product development and commercialization.
"We are very pleased to work with a reputable, B.C.-based partner who has a nationwide network of validated CBD rich hemp farms to meet our increasing demand," stated Nextleaf CFO, Charles Ackerman. "It's been a top priority for us to partner with a hemp supplier under a cost-effective model to supply OILS with CBD rich hemp at the appropriate scale to leverage what we believe to be the most efficient cannabis and hemp oil refinery in Canada," said Ackerman. "The receipt of our sales licence has unlocked new revenue segments and this agreement will offer Nextleaf the opportunity to prove the disruptive nature of our technology." Read more news for Nextleaf Solutions by visiting: https://www.nextleafsolutions.com/press-releases/
In other industry news of note:
The Valens Company, Inc. (OTCQX: VLNCF) (TSX: VLNS) recently announced that it has entered into a definitive agreement to acquire all of the issued and outstanding shares of Green Roads and its majority owned manufacturing subsidiary (collectively, "Green Roads") in a cash and share transaction (the "Green Roads Acquisition" or "Acquisition") for closing consideration of US$40 million, plus up to an additional US$20 million in contingent consideration (the "Milestones Consideration") payable upon the business achieving certain EBITDA milestones (the "Milestones").
With the Acquisition of Green Roads, The Valens Company strengthens its capabilities to supply US domestic and global markets with an expanded product offering. Additionally, the Acquisition provides immediate entry into the US market with a trusted and leading CBD health and wellness brand with an established manufacturing and distribution platform. The Green Roads Acquisition is expected to be accretive to the Company in 2021. If all the Milestones are met in 2022, the transaction represents approximately 4.5x fiscal 2022 EBITDA. On a pro forma basis, the combination of Valens and Green Roads results in a business which generated total revenue of C$111.6M in 2020.
Sundial Growers Inc. (NASDAQ: SNDL) and Inner Spirit Holdings Ltd. (ISH) (INSHF) ("Inner Spirit") recently announced that they have entered into an arrangement agreement (the "Agreement") pursuant to which Sundial will acquire all of the issued and outstanding common shares of Inner Spirit for total consideration of approximately $131 million (the "Transaction"). The combined company will continue to focus on providing quality cannabis to consumers through a responsible and disciplined approach while creating enduring value for shareholders.
Under the terms of the Agreement, Inner Spirit's shareholders will receive, for each Inner Spirit common share held, (i) $0.30 in cash and (ii) 0.0835 of a Sundial common share (representing $0.09 per Inner Spirit common share based on the 10-day volume-weighted average price ("VWAP") of Sundial common shares on the Nasdaq Capital Market), for total consideration of $0.39 per Inner Spirit common share.
GW Pharmaceuticals plc (NASDAQ: GWPH) a world leader in discovering, developing and commercializing regulatory approved cannabis-based medicines, recently announced that it has received the Queen's Award for Enterprise 2021 in the Innovation category, recognizing GW's innovative and ground-breaking work to harness cannabinoid science to create the world's first regulatory approved, prescription cannabis-based medicines.
Since its inception in 1998, GW has successfully navigated significant barriers to enable the development, manufacture and commercialization of regulatory approved cannabis-based medicines, leading the way in improving the lives of patients and families around the world. Globally, GW has invested more than £1.3 billion in the research, development and infrastructure needed to bring novel, innovative medicines to patients. With the majority of its staff located in the UK, GW employs more than 1,100 employees globally, all of whom strive every day to bring new, clinically proven medicines to patients experiencing significant unmet need.
Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), a world-leading diversified cannabis, CBD and vaporization device company, recently announced Southern Glazer's Wine & Spirits ("Southern Glazer's"), the world's pre-eminent distributor of beverage alcohol, as the distribution partner for its U.S. portfolio of CBD-infused beverages. This partnership announcement follows the recent launch of Quatreau – Canopy's first line of CBD-infused beverages sold in the U.S market.
"Through this groundbreaking partnership, we will leverage Southern Glazer's established distribution network to bring our CBD beverage portfolio to retailers and consumers across the U.S. market," said Julious Grant, Chief Commercial Officer, Canopy Growth. "The leadership team at Southern Glazer's shares our values, priorities, and future-forward view of the category. Together, we are committed to creating an immediate strategic route to market for Canopy's premium CBD beverages."
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