PALM BEACH, Florida, April 21, 2020 /PRNewswire/ -- Although most of the world is focused on what will the future hold for the present world health crisis, it appears that the future for worldwide marijuana sales will continue to grow. According to The Global Cannabis Report from prohibition Partners, present revenues are really just the tip of the iceberg. The 87-page report, suggested that worldwide legal weed revenue will increase to $103.9 billion by 2024. This would represent an 853% increase in sales from 2018, and equates to a compound annual growth rate of 45.6%. Another report said that The global legal marijuana market size is expected to reach USD 73.6 billion by 2027, according to a new report published by Grand View Research, Inc. It is anticipated to expand at a CAGR of 18.1% during the forecast period. Increasing legalization of cannabis for medical as well as adult-use is expected to promote growth. While the reports disagree in the projected revenue, they both do project continued growth. Active Companies from around the market with current developments this week include: TransCanna Holdings Inc. (CSE: TCAN), Tilray, Inc. (NASDAQ: TLRY), Cronos Group Inc. (NASDAQ: CRON) (TSX:CRON), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB).
The more conservative Grand View report was very optimistic, saying: "On the basis of type, the medical segment held the leading revenue share of 71.0% in 2019, owing to the growing adoption of cannabis as a pharmaceutical product for treating severe medical conditions, such as cancer, arthritis, and Parkinson's disease and Alzheimer's disease among other neurological conditions. Moreover, increasing need for pain management therapies along with growing disease burden of chronic pain among elders is expected to boost the product demand.
TransCanna Holdings Inc. (CSE: TCAN) BREAKING NEWS: TRANSCANNA EXECUTES DIVERSIFICATION DIVISION ANNOUNCING FIRST SIGNED CROP MANAGEMENT CONTRACT - TransCanna Holdings Inc. ("TransCanna" or the "Company") is pleased to announce Lyfted Farms has been engaged by Central Valley Growers to Operate a Commercial Cannabis Greenhouse Facility located in Stanislaus County. Lyfted Farm's 'Higher Standard Farm Management Agreement' includes the provision of genetic stock, crop cultivation, labor, compliance oversight, and distribution of finished product over an initial 5-year term to commence May 1st, 2020, with two 5-year options to extend. Under this agreement, Lyfted Farms will receive a base fee with an incentive fee of all budgeted net proceeds.
"In building our company, we have committed to setting a 'Higher Standard of Growing' for our industry. We keep this in mind in all that we do but especially in selecting our employees, executive team members, and business partners. Endeavoring to dispel the lingering stigma around the cannabis industry serves as part of the impetus that drives us to set this standard. Thus far we have been successful in doing so, as reflected in our unwavering regulatory compliance, a track record of safe, successful operations, and impeccable performance under numerous Development Agreements in Stanislaus County over the last two years. We continue to raise this standard in formally establishing our relationship with Central Valley Growers, which is owned by a Central Valley family with a 25 year legacy in traditional agriculture", commented Bob Blink, President and CEO of TransCanna.
"Central Valley Growers could not be more excited to partner with an industry leading cannabis operation such as Lyfted Farms. Our longstanding relationship with CEO Bob Blink makes us confident in both Lyfted Farms' future success as well our strong belief that Lyfted Farms will always have the community of Stanislaus and its constituents top of mind in conducting our operations", commented Nav Athwal, General Manager, Central Valley Growers.
In the CBD/Cannabis industry developments and happenings in the market include:
Tilray, Inc. (NASDAQ: TLRY) recently announced that it has priced an underwritten registered offering of 7,250,000 shares of its Class 2 common stock and, in lieu of Class 2 common stock, pre-funded warrants to purchase 11,750,000 shares of Class 2 common stock, and accompanying warrants to purchase 19,000,000 shares of its Class 2 common stock (or, for investors who so choose, pre-funded warrants to purchase shares of Class 2 common stock) at a price to the public of $4.76 per share and accompanying warrant (or $4.7599 per pre-funded warrant and accompanying warrant). Tilray's gross proceeds from this offering are expected to be approximately $90.4 million, before deducting underwriting discounts and estimated offering expenses. All of the securities in the offering are being sold by Tilray. The warrants will be exercisable beginning six months after issuance at a price of $5.95 per share of Class 2 common stock and have a term of five years commencing on the date of exercisability. The offering is expected to close on March 17, 2020, subject to customary closing conditions.
Cronos Group Inc. (NASDAQ: CRON) (TSX:CRON) recently announced its 2019 fourth quarter and full-year business results. The Audit Committee of the Cronos Group Board of Directors has completed its review of certain bulk resin purchases and sales of products through the wholesale channel. Following completion of the review, and on the recommendation of the Audit Committee and advice from the Company's independent auditor, KPMG LLP, the Board determined that Cronos Group will restate its unaudited interim financial statements for the first, second and third quarters of 2019. Accordingly, the Company reduced revenue for the three months ended March 31, 2019 by C$2.5 million and the three months ended September 30, 2019 by C$5.1 million.
"We are pleased that the Audit Committee has completed its review, and that Cronos Group is now current with the filing of our financial reports. As we move forward, we are committed to improving our internal controls and financial reporting practices, maintaining the highest standards of transparency and accountability, and enhancing our capabilities and resources across functions to support our strategy," said Mike Gorenstein, CEO of Cronos Group.
Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) First & Free, an American-made CBD brand from Canopy Growth Corporation recently announced a new line of CBD Creams: Everyday, Motion and Revitalize. The creams are the latest addition to First & Free's portfolio of hemp-derived CBD isolate products including oil drops and softgel capsules, which launched exclusively in the U.S. last December.
The new product line includes three distinct topical creams with CBD isolate that has been derived from 100% USA-grown hemp. Each 1.76 oz tube contains 2500 mg of CBD, making First & Free the highest strength hemp-derived CBD topical cream on the US market. The creams have been scientifically formulated using state-of-the-art technology and rigorous testing procedures to ensure the highest level of safety, performance and consistency. Formulated for everyday use, the creams are non-greasy and easy to apply.
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) recently provided an update related to its balance sheet flexibility, business transformation initiatives and COVID-19 operational response plans.
Aurora has provided an update on its liquidity position: (Unless otherwise stated, $ in Canadian dollars); As of March 31, 2020, the Company had approximately $205 million of cash. This includes all amounts raised under the existing, and now completed, US$400 million At-the-Market Offering program ("ATM"), initially announced in May 2019. Under the ATM, the Company issues common shares (the "Common Shares") at prevailing market prices without any new issue discounts, warrants or other dilutive securities; and to support the strength of the Company's balance sheet and provide continued access to equity capital, the Company today stated that it intends to file a new prospectus supplement for a renewed ATM program, to enable Aurora to raise additional equity capital pursuant to its outstanding base shelf prospectus dated May 14, 2019 under which approximately US$350 million remains available. The Company intends to use a portion of this available capacity to provide further balance sheet strength and preserve flexibility given macroeconomic uncertainty caused by COVID-19.
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