PALM BEACH, Florida, May 28, 2020 /PRNewswire/ -- Under the extremely large Cannabis umbrella, it is sometimes hard to remember what all the abbreviations stand for and what those products (infused or not) actually do or are used for. There is THC, the ingredient in marijuana that gets you high, phytocannabinoids cannabigerol (CBG), cannabichromene (CBC), cannabinol (CBN), and tetrahydrocannabivarin (THCV), as well as terpenes and flavonoids… but CBD (cannabidiol) is the one that stands out… and should be remembered. It is projected to continue to post impressive revenues for years to come. The cannabidiol market is projected to continue its growth through the next several years. A recent report from Brand Essence Research said that the Cannabidiol Oil Market, which was valued at USD 23.37 Million in 2018, is expected to reach approximately USD 1.06 Trillion by 2025 with the CAGR of 21.5% over the forecast period. Cannabidiol oil is a naturally occurring substance which is extracted from the cannabis sativa plant and it is used for various medical purposes. Its prolonged use can cause various side effects due to which its legalization is the debate topic for the authorities. It is still banned in most of the countries but also legalized for the medical use under stringent regulations. These countries include U.S., Canada, UK, Sweden and others. Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. (OTCQB: NUGS), cbdMD, Inc. (NYSE: YCBD), The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) (TSX: TGOD), Cronos Group Inc. (NASDAQ: CRON) (TSX:CRON), Sundial Growers Inc. (NASDAQ: SNDL).
A report from Technavio said this market will continue to grow, saying: "The CBD oil market size will grow by $3.52 billion during 2020-2024. The market's growth momentum will accelerate during the forecast period because of the steady increase in year-over-year growth. The growth of the CBD oil market in North America is primarily attributed to the significant presence of leading CBD oil product companies in the region. The growing awareness about the health benefits of CBD oil products and the rising legalization of the use of marijuana products in the US are also driving CBD oil market growth.
Cannabis Strategic Ventures, Inc. (OTCQB:NUGS) BREAKING NEWS: Cannabis Strategic Ventures Reports New Cannabis Sales at 11% Premium to Industry Benchmarks - Cannabis Strategic Ventures an emerging leader in the U.S. cannabis marketplace, is pleased to announce that recent sales from its latest harvest have earned unit pricing at a strong 11 percent premium to current industry standard benchmarks for cannabis sales on a per pound basis.
According to cannabisbenchmarks.com, cannabis sales in the US currently average roughly $1,525 per pound. The Company has transitioned from selling at a discount relative to benchmark levels six months ago to now selling at a premium to benchmark levels, with pricing in recent sales coming in at approximately $1,700 per pound.
"We have seen a steady improvement in per pound pricing driven by improving quality mostly as a consequence of better operational execution at Nugs Farm," remarked Simon Yu, CEO of Cannabis Strategic Ventures. "It also represents another signal that we are heading in the right direction in terms of our core objectives: expanding production capacity, expanding sales volume, and expanding profitability on a per unit basis."
The Company has recently successfully expanded its production capacity by as much as 150%, more than doubling harvest size as a result. That expansion was necessary to keep up with demand as overall top line sales have increased rapidly during calendar Q2, with the monthly pace of sales this quarter on pace to average more than 800% above the average monthly pace seen in calendar Q1, leaving the Company now on a pace to exceed $10 million in annualized sales of cannabis products.
Management notes that the recent improvement in pricing on a per unit basis has positive implications for both top and bottom line numbers. The Company is also in the process of preparing for the launch of its branded cannabis product line, which is expected to further contribute to growth in margins. Read this and more news for Cannabis Strategic Ventures at: https://www.financialnewsmedia.com/news-nugs
Other recent developments and major influences in the cannabis industry include:
cbdMD, Inc. (NYSE: YCBD) one of the leading, highly trusted, and most recognized cannabidiol (CBD) brands, recently reported its second fiscal 2020 quarter ended March 31, 2020 results, as well as some significant developments.
"We are pleased to report strong second quarter results, as well as provide a mid-quarter update on operations. We reported $9.4 million in quarterly net sales, a 67% increase over the same quarter last year. Our gross profit margin remains strong at 67% year-to-date and 70.9% for the quarter. Our overall direct to consumer e-commerce sales for the March fiscal quarter were $6.8 million or 72% of our total net sales, an increase of $2.5 million or 58% from the prior year's quarter. Our B2B brick and mortar sales were $2.6 million or 28% of our total net sales, an increase of $1.2 million or 85% from the prior year's quarter. Direct to consumer e-commerce sales for the six months ending March were $13.6 million or 70% of our total net sales, an increase of $8.9 million or 189% from the prior year period. Our B2B brick and mortar sales were $5.9 million or 30% of total net sales, an increase of $4.5 million or 321% from the prior year period. Our operating expenses for the March quarter were $12.2 million, of which approximately $665,000 was non-cash expenses, resulting in a cash use of $4.2 million for the quarter. Year to date our operating expenses were $24.8 million, of which approximately $1.5 million was non-cash expenses, resulting in a cash use of approximately $9.1 million for the six months ending March 31, 2020," said Martin Sumichrast, Chairman and co-CEO of the Company.
The Green Organic Dutchman Holdings Ltd. (OTCQX: TGODF) (TSX: TGOD), a leading producer of premium certified organic cannabis, announced that it has made its first shipment of Highly Dutch, TGOD's new mainstream brand designed for regular users. Starting today, Highly Dutch is available in Quebec in a one-ounce format (28 grams) of its Rotterdam OG Indica strain and will become available in additional provinces during the weeks ahead. This launch will be followed by additional Highly Dutch strains, sizes, and formats later this summer.
Recent studies indicate that daily users make up 26% of cannabis consumers in Canada and that their consumption represents approximately 90% of the total volume being sold. Highly Dutch's value proposition has been tailored specifically to meet the needs of regular users. Research has also highlighted that 30% of daily users purchase their cannabis in a one-ounce format, and 14% purchase it in a half-ounce format, which guided the brand's packaging strategy.
Cronos Group Inc. (NASDAQ: CRON) will hold its 2020 Annual and Special Meeting of Shareholders on Thursday, June 25, 2020, at 10:00 a.m. EDT. Due to the continued public health concerns related to the COVID-19 pandemic, to mitigate risks to the health and safety of our communities, shareholders, employees and other stakeholders, Cronos Group will be conducting the meeting in a virtual-only format via live audio webcast. Registered shareholders and duly appointed proxyholders will have an equal opportunity to participate in the 2020 Annual and Special Meeting online regardless of their geographic location, including a chance to ask questions and vote.
The Company's proxy statement describing the formal business to be conducted at the meeting and containing detailed instructions about how to participate in the meeting is available on the Investors section of the Company's website.
"We have made significant progress in improving our cost structure and liquidity in the past few months," said Zach George , Chief Executive Officer of Sundial. "The agility of our "craft-at-scale" cultivation strategy also became evident as we quickly aligned our operations with market conditions, by temporarily curtailing cultivation activities to adapt to current demand levels. We are pleased to have made progress towards the sale of Bridge Farm and the subsequent restructuring of our secured debt. These steps are critical in order to improve Sundial's financial health.
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