PALM BEACH, Fla., Nov. 24, 2020 /PRNewswire/ -- The legal CBD sector continues to grow across the globe, with a significant contribution to the business resulting from continuous political wins in North America and Europe. According to the European Business review, over the next five years, the global CBD industry is projected to accelerate to $23.6 billion, according to Grand View Analysis, and the European CBD market is set to rise by 400 percent. Sellers like… are actively providing good quality and authentic, legal CBD edibles. It said: "The growth of the CBD market in Europe is attributed to the increasing acceptance of CBD-infused goods in industries such as pharmaceuticals, personal care, cosmetics, nutraceuticals and medical applications… The demand for CBD in Europe continues to grow rapidly as consumers embrace this cannabinoid for medical and general wellness, creating opportunities for large food and beverage brands and health and beauty brands… In Europe, CBD is seeing monumental demand. In Europe alone, according to the Brightfield Company, the business is expected to rise by 400 per cent over the next four years. Mentioned in today's commentary include Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Sativa Wellness Group Inc. (CSE: SWEL), Aphria Inc. (NASDAQ: APHA) (TSX: APHA), Tilray, Inc. (NASDAQ: TLRY), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED).
According to New Frontier data: "the market and demand for CBD in Europe remain(s) nascent, it is demonstrably an industry poised for strong growth over the next five years. As detailed in New Frontier Data's latest release, EU CBD Consumer Report Series: Market Size & Demand, consumers in the European Union are projected to spend around €8.3 billion (USD$9.85 billion) for CBD in 2020. Over the next five years, that spending is projected to grow at a combined annual growth rate (CAGR) of 10.4%, to reach €13.6 billion (USD$16.14 billion) by 2025.
Sativa Wellness Group Inc. (CSE:SWEL) Breaking News: European Union Courts Clear the Way for CBD in Europe - Sativa Wellness Group Inc. wishes to announce that following the European Court of Justice (the "ECJ") has ruled that cannabidiol ("CBD") is not a classified as a narcotic drug, the Company anticipates that the EU FSA will resume their Novel Food process, and subject to the process being agreed, this should be an easy transition for the Company.
The ECJ ruling provides that CBD is not classified as a narcotic drug, and that the French ban on hemp derived CBD contradicts European Union ("EU") law. This decision opens the door for high quality, compliant CBD companies to operate in markets across the EU. Sativa Wellness welcomes this news as the Company operates CBD extraction and production facilities and markets, distributes and sells CBD products throughout the UK and the EU.
The Company has embraced the industry regulations in the UK and are on track to have its Novel Food dossier, incorporating an extensive product range, validated by the UK Food Safety Authority ahead of the March 2021 deadline. Following the ECJ ruling, the Company anticipates that the EU FSA will resume their Novel Food process, and subject to the process being agreed, this should be an easy transition for the company to progress towards.
Sativa Wellness holds a unique 'seed to consumer' position in the market, offering consistent quality control of the cannabinoid, full traceability of ingredients, manufacturing and testing with the added reassurance to the customer that each batch is QR coded which tracks back to its testing report.
From this enviable position the Company has developed the 'Goodbody' brand - CBD you can trust. Under the Goodbody brand umbrella are the Goodbody Botanicals range for the everyday and pharmaceutical markets and the Goodbody Wellness brand, with its addition of Vitamin D, as a premium CBD brand for the health and beauty spa market.
The Goodbody range is available at retailers and direct to the consumer online through Goodbodystore.com and soon available in Europe. As part of our route to market the Company intends to focus on retail listings and selling directly online within Europe.
"We welcome the news of the EU's highest court ruling. As a UK and European company that is committed to working with regulators and delivering the highest quality CBD wellness products, this news helps to enable our expansion plans. We currently own extraction and production capabilities in Europe and see this large market as a key driver for our growth for not only our CBD isolate and distillate ingredients, but also for our Goodbody CBD brands!" said Henry Lees-Buckley, CEO of Sativa Wellness. Read this and more news announcements for SWEL at: https://www.financialnewsmedia.com/news-swel/
In other active company news in the markets this week:
Aphria Inc. (NASDAQ: APHA) (TSX: APHA) recently announced it has entered into an agreement of merger and acquisition (the "Agreement") to acquire SW Brewing Company, LLC ("SweetWater Brewing Company" or "SweetWater"). SweetWater Brewing Company is one of the largest independent craft brewers in the United States ("U.S.") based on volume. Beginning with the flagship 420 beverage offerings, SweetWater has created an award-winning lineup of year-round, seasonal and specialty beers, a portfolio of brands closely aligned with a cannabis lifestyle. The approximately USD $300 million acquisition has been unanimously approved by Aphria's Board of Directors and is expected to close before the end of December 2020. Aphria expects this acquisition to be immediately accretive to EBITDA and diluted earnings per share. All dollar amounts in the press release are expressed in U.S. dollars, unless otherwise noted.
Founded in 1997 by Freddy Bensch, SweetWater has broad consumer appeal and has established strong distribution across 27 states plus Washington, D.C. and has ample capacity to support distribution efforts into new geographies, with limited capital expenditure. From its state-of-the-art brewery in Atlanta, Georgia, SweetWater produces a balanced variety of year-round and seasonal specialty craft brews, with SweetWater beverages available in approximately 29,000 off-premise retail locations ranging from independent bottle shops to national chains. SweetWater's significant on-premises business allows consumers to enjoy its varietals in more than 10,000 restaurants and bars.
Tilray, Inc. (NASDAQ: TLRY) recently reported financial results for the third quarter ended September 30, 2020. All financial information in this press release is reported in U.S. dollars, unless otherwise indicated.
"Our third quarter results demonstrate the significant progress we have made throughout the organization despite the unprecedented challenges presented by the COVID-19 pandemic. We realized solid year over year revenue growth in our core businesses and have achieved a significantly more focused, efficient and competitive cost structure, all of which position Tilray for future success. We look forward to building on these accomplishments and remain focused on our goal of achieving break-even or positive Adjusted EBITDA in the fourth quarter," said Brendan Kennedy, Tilray's Chief Executive Officer.
Total revenue of $51.4 million (C$68.1 million) was flat compared to the third quarter of 2019. Cannabis segment revenue decreased 11% to $31.4 million (C$41.6 million), due to the discontinuation of bulk sales and a slight decrease in Canada Medical sales. Adult-Use and International Medical sales grew 26% and 42%, respectively. Excluding the year-over-year impact related to bulk sales, total cannabis revenue increased 24%. Hemp segment revenue increased 28% to $20.0 million (C$26.5 million). Total revenue increased 2% compared to the second quarter of 2020. Cannabis segment revenue increased 4%, driven by a 13% increase in Adult-Use sales which was offset by a 11% decrease in Canada Medical sales, a 3% decline in International Medical sales, and a 1% decline in Hemp sales.
Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED) and its medical division, Spectrum Therapeutics, have completed and published a new study on the long-term effects of cannabidiol (CBD), specifically focusing on toxicity and lifespan effects of CBD in the preclinical model C. elegans.
The study was commissioned to evaluate the solubility, stability, acute toxicity, thermotolerance, and effects on lifespan of CBD in C. elegans as part of Canopy Growth's ongoing commitment to provide the data required to support and influence public policy through research. To the best of the Company's knowledge, this study represents the first long-term toxicity and lifespan research regarding the effects of chronic exposure to cannabidiol – one of the cannabinoids found in cannabis.
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) recently announced that it will be filing a preliminary prospectus supplement (the "Preliminary Supplement") to its short form base shelf prospectus dated October 28, 2020 (the "Base Shelf Prospectus") relating to a proposed overnight marketed public offering (the "Offering") of units of the Company (the "Units") at a price of US$7.50 per Unit for total gross proceeds to the Company of approximately US$125 million.
Each Unit will be comprised of one common share of the Company (a "Common Share") and one half of one common share purchase warrant of the Company (each full common share purchase warrant, a "Warrant"). Each Warrant will be exercisable to acquire one common share of the Company (a "Warrant Share") for a period of 40 months following the closing date of the Offering at an exercise price of US$9.00 per Warrant Share, subject to adjustment in certain events.
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