NEW YORK, December 19, 2017 /PRNewswire/ --
According to data provided by New Frontier Data, in partnership with Arcview Market Research, the legalization of cannabis in California, Massachusetts, Nevada, Florida, Arkansas and North Dakota will result in new markets that account for $7.1 billion in sales by 2020. The research estimates that the overall U.S. cannabis market will exceed $20.9 billion by 2020. Nevada presents significant opportunities for investors and businesses in the legal cannabis market. New Frontier Data explains that Nevada ranks as a top tourism destination, due to generous patient reciprocity laws, and the allowance for medical cannabis businesses to be formed as for-profit enterprises are all important factors expected to boost the industry. The combined medical and adult use sales in Nevada are expected to reach about $622 million by 2020. Body and Mind Inc. (OTC: BMMJ), Lexaria Bioscience Corp. (OTC: LXRP), Vitality Biopharma, Inc. (OTC: VBIO), Kush Bottles, Inc. (OTC: KSHB), United Cannabis Corporation (OTC: CNAB)
New Frontier Data Founder & CEO Giadha DeCarcer, said, "The passage of Nevada's adult use legalization measure opens the floodgates for America's adult playground. As the most sophisticated hospitality destination in the country drawing an estimated 55 million visitors in 2016 alone, the integration of cannabis into Nevada's economy will create an opportunity for canna-tourism on a scale not seen before in the country."
Body and Mind Inc. (OTC: BMMJ) also listed on the Canadian Stock Exchange under the Ticker 'BAMM'. Yesterday the company announced breaking news that, "two significant transactions. The Company has reached an agreement with a real estate investment group, led by the Company's President, who will purchase a building adjacent to the existing facility and lease it back to a newly formed partnership called Pepper Lane North LLC ("PLN" or "Partnership") on a long-term basis with renewal options. PLN is a strategic partnership between BAMM and one of the preeminent dispensary chains in the State of Nevada. BAMM's partner will also transfer an active cultivation license to the facility and all expenditures under PLN will be funded on a 50/50 basis. The new facility will primarily consist of flowering rooms as production, packaging, distribution, and head office functions will remain at the existing facility. BAMM has also earmarked approximately 4,000 square feet of frontage for a dispensary upon receipt of a retail license. It is contemplated that at least half of the sales under PLN will be sold to BAMM's partner through their existing dispensary network. In addition, BAMM has signed an operating and management agreement with PLN and will receive the greater of USD$15,000/month or 10% of PLN's net profits.
The Company's CEO Leonard Clough commented, "On a combined basis, BAMM will have approximately 50,000 sq. feet of facilities under management, an increase of approximately 150%, but what is more significant is that we anticipate an increase in production of over 300% providing BAMM with a significant near term growth profile. We anticipate a decline in per unit costs going forward, greater efficiencies in our distribution and packaging departments, and meaningful economies of scale. Our funding agreement under PLN also provides the added bonus of leverage - significant growth for a relatively low capex investment. Our pursuit of 100,000 sq. feet is well underway."
Under the Partnership, each party has provided an initial capital contribution to PLN in the amount of USD $250,000. These funds will first be applied as a non-refundable deposit towards securing the building lease of approximately 30,000 square feet located in close proximity to the Company's current operations in Las Vegas, Nevada. The new facility will require renovations and build-out costs of approximately USD$3,700,000. The renovation and build-out costs will be funded by PLN on an equity interest basis and BAMM expects the new facility to be operational in the latter part of 2018."
Lexaria Bioscience Corp. (OTCQB: LXRP) has developed and out-licenses its disruptive and cost-effective DehydraTECH™ technology that promotes healthier administration methods, lower overall dosing and higher effectiveness of ingestible drugs and other beneficial molecules. Recently, the company announced the United States Patent and Trademark Office ("USPTO") has granted patent number 9,839,612 B2 for the use of DehydraTECHTM technology as a delivery platform for a wide variety of Active Pharmaceutical Ingredients ("APIs") including all cannabinoids including THC; fat soluble vitamins; non-steroidal anti-inflammatory pain medications ("NSAIDs"); and nicotine. "Lexaria has now locked-up the IP for its next-generation drug delivery system" said Chief Executive Officer Chris Bunka. "This ground-breaking, patented IP builds a foundation for new business opportunities in 2018 including what could be the world's first nicotine edibles for the smokeless tobacco industry, or improved new products for NSAID-derived pain management, as well as in the rapidly growing cannabis market.
Vitality Biopharma, Inc. (OTCQB: VBIO) is dedicated to unlocking the power of cannabinoids for the treatment of serious neurological and inflammatory disorders. On November 1, 2017, the company announced completion of pivotal manufacturing agreements that enable the production of clinical-grade cannabinoid pharmaceuticals at its R&D facilities in California. In early 2017, after receiving approval from the U.S. DEA for its cannabinoid pharmaceutical research, Vitality contracted with a research services provider to obtain new software and protocols to support its internal manufacturing team and to ensure GMP manufacturing compliance. The Company has implemented these protocols for initial production of cannabosides, the company's cannabinoid prodrugs that are designed to target the gastrointestinal tract and thereby avoid the intoxicating side effects of THC. Vitality has also recently entered into a services agreement with a specialist analytical chemistry firm, in order to provide independent verification of the Company's analytical procedures and batch release testing, in compliance with FDA and international regulatory standards.
Kush Bottles, Inc. (OTCQB: KSHB) is a dynamic sales platform that provides unique products and services for both businesses and consumers in the cannabis industry. On November 28, 2017, the company reported financial results for its fiscal year ended August 31, 2017. Revenue was up 129% Year-over-Year to $18.8 million; revenues included four months of sales from CMP Wellness which was acquired on May 1, 2017. Net income, including $943,000 in non-cash stock compensation, $301,000 in depreciation and amortization expense and $4.6 million in SG&A, was $69,000 compared to net income of $72,000 in fiscal year 2016; the increase in operating expenses stems from costs associated with the acquisition of CMP Wellness, as well as higher SG&A costs to support an expanded outside sales program.
United Cannabis Corporation (OTCQB: CNAB) is a biotechnology company dedicated to the development of phyto-therapeutic based products supported by patented technologies for the pharmaceutical, medical, and industrial markets. Recently, the company announced that Jamaica's Ministry of Health has approved its patent-protected Prana Medicinal Sublinguals and Prana Medicinal Transdermals for use by registered medicinal cannabis patients. The Prana Collection is the foundation of the Company's cannabis-centric formulations, which patients have found effective in providing relief from the symptoms of arthritis, neuropathy, acute pain, joint aches, muscle tension, muscle spasms, muscle recovery, migraines, and various skin conditions.
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