NEW YORK, December 20, 2018 /PRNewswire/ --
Cannabis legalization has spread rapidly on a global scale, causing new products to enter into the market. Most people associate cannabis with flower, however the introduction of products such as oils, tinctures, resins, consumables and topicals have reshaped the industry. Specifically, the cannabis topical segment is a rapidly emerging and is helping drive the broad cannabis market growth even further. According to data compiled by Grand View Research, the global legal cannabis market was valued at USD 9.3 Billion in 2016 and is expected to grow at a CAGR of 34.6% throughout the forecast period, from 2018 to 2025. The market will continue to grow as more and more countries consider legalization of cannabis for either medical or recreational purposes. The Yield Growth Corp. (CSE: BOSS)
The topical market is a growing sector because products can contain either CBD or THC and even a mixture of both, making for a wide variety of products. According to the results obtained by the Civilized Culture Poll, 28% of Canadians and 33% of Americans said they were interested in trying topicals such as ointments, balms, salves and other skin products. The research showed that demand for CBD or THC-based topicals have increased substantially because of their beneficial healthcare effects. "Topicals, rather than entering your bloodstream and creating psychoactive effects (a mind and body "high"), will instead be directly absorbed by cannabinoid receptors, mostly CB2 receptors, which are found in the skin. These CB1 and CB2 receptors are found on mast cells, which are linked to inflammatory and allergic responses," said Evergreen Organix, a Nevada-based dispensary.
The Yield Growth Corp. (CSE: BOSS) earlier today announced breaking news that its, "new subsidiary UJ Topicals Inc. has entered agreements with Nova Paths LLC to manufacture and distribute its THC and CBD infused line of topical products throughout the state of Oregon. Nova Paths is an Oregon Liquor Control Commission approved and licensed manufacturer and distributor of cannabis products in Oregon.
Yield Growth's wholly-owned subsidiary, UJ Topicals Inc., has granted to Nova Paths a non-exclusive license to its brand and proprietary product formulations for pain balm, analgesic pain gel, a pain patch, massage oil, capsules, and other products (the "UJ Topicals Line"). Nova Paths will manufacture CBD and THC infused versions of the products under Oregon law. UJ Topicals has also appointed Nova Paths as its exclusive distributor for the UJ Topicals Line in Oregon. Under the terms of the agreements, Nova Paths will retain a fee of 25% of the wholesale revenues from sales of UJ Topicals and pay the balance of wholesale revenue, less certain expenses, to UJ Topicals.
New Frontier Data projects $1.04 billion in Oregon's total cannabis sales in 2020 - $856 million recreational, $187 million medical. That will rank the state as the fifth largest US market behind California ($3.1 billion), Washington ($2.28 billion), Colorado ($1.83 billion) and Massachusetts ($1.05 billion).
"We are excited to bring our high-quality, Ayurveda-inspired products infused with THC and CBD to Oregon," said Penny Green, CEO of Yield Growth and UJ Topicals. "We will now look to finding licensing partners to launch our THC infused line of topicals in other legal states such as California and Washington."
UJ Topicals Inc. was recently incorporated as a wholly owned subsidiary of Yield Growth. It has acquired rights from Yield Growth subsidiary, Urban Juve Provisions Inc., to infuse its catalogue of over 50 product formulas with CBD and THC and market the products through appropriate channels. UJ Topicals is developing several international topicals brands with the intent of launching them in jurisdictions where cannabis topicals are legal. The Yield Growth Corp. is building an international network for the legal manufacturing and sale of products containing hemp oil, CBD and THC.
Topicals are cannabis-infused products which are most popularly chosen for localized pain relief, muscle soreness, tension, and inflammation. Anecdotal evidence exists for an even wider spectrum of benefits, from psoriasis, dermatitis and itching, to headaches and cramping. Topicals are a fast growing industry within the cannabis sector. According to data from BDS Analytics, sales of topical cannabis products grew by 82% from 2016 to 2017 in Colorado, Washington, Oregon and California. Legal topicals sold in these states included CBD and THC infused creams, lotions, massage oils, lubricants, lip balm and patches, with infused balms and salves being the top selling items.
About Nova Paths LLC: Nova Paths is an OLCC licensed processor, manufacturer and distributor of cannabis products in Oregon, USA. Nova Paths has an established distribution network of over 400 stores in Oregon, with more stores joining every month. Nova Paths product lines include edibles, topicals, vape pens, capsules, and flower. The company manufactures in three models - house brands, licensed brands, and "Made in Nova" - a unique program that enables makers to develop and produce products inside Nova Paths, and thus dramatically reduce their time to market. Brands manufactured and/or distributed by Nova Paths include Top Hat (taffies and tarts), Pure Ratios, Majesty cosmetics, Dr. Terpene capsules and cartridges, Happy Daze capsules, Honu edibles, Pure Vape vape cartridges, Lissa's cookie dough, Allay topicals, Alto Essentials (single serving packets of olive oil, salt, and honey) and several others.
About The Yield Growth Corp: The Yield Growth Corp. is a diverse team of business executives dedicated to rapid, sustainable financial growth for businesses with viable models for success. Its directors and officers have experience at multi-billion dollar international companies including M.A.C Cosmetics, Aritzia, Skechers, Pepsi and Coca-Cola. Urban Juve Provisions Inc., which has a catalogue of more than 50 wellness formulas, is wholly owned by Yield Growth. Urban Juve organically synthesizes ancient knowledge and modern techniques to create exceptional beauty and wellness solutions. Ayurvedic knowledge delineates three general categories or skin types. Urban Juve has translated these as Vitalize, Balance and Align, each with its own dedicated range of skin and body care formulations. Urban Juve has registered with Health Canada 26 products containing cannabis sativa hemp oil. The company has also filed 11 provisional patent applications in the United States. Urban Juve's skin care products are sold in Canada, with distribution agreements signed for markets in the United States and Italy. Urban Juve has licensed its formulas to Yield Growth wholly owned subsidiary UJ Topicals Inc., which is launching its cannabis topicals line in Oregon, U.S.A."
Cronos Group Inc. (NASDAQ: CRON) is a globally diversified and vertically integrated cannabis company with a presence across five continents. Cronos Group Inc. recently that it has entered into a sponsored research agreement with the Technion Research and Development Foundation of the Technion - Israel Institute of Technology to explore the use of cannabinoids and their role in regulating skin health and skin disorders. The preclinical studies will be conducted by Technion over a three-year period and will focus on three skin conditions: acne, psoriasis and skin repair. "We believe that the potential applications of cannabinoids to regulate skin health and treat skin disorders are vast, and we are excited to begin exploring these applications through our partnership with Technion," said Mike Gorenstein, Chief Executive Officer of Cronos Group. "Using rigorous data to develop efficacious topical and transdermal formulations will be key to creating differentiated products that provide quality treatments to our consumers and strengthen our brand portfolio."
The Supreme Cannabis Company, Inc. (OTCQX: SPRWF) is a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people and uniquely innovative culture. The Supreme Cannabis Company, Inc. recently announced that the Company had entered into a three-year agreement with MediPharm Labs Inc., a wholly-owned subsidiary of MediPharm Labs Corp., to facilitate the launch of the Company's cannabis oil products line. MediPharm holds a processing license and is a leader in the cannabis industry focused exclusively on cannabis extraction and producing pharmaceutical-grade cannabis oil. "We expected market segmentation as the Canadian cannabis industry evolved and the emergence of dedicated experts focused on downstream activities. Partnering with product experts, such as MediPharm, allows Supreme Cannabis to launch oil products quickly," said Navdeep Dhaliwal, Chief Executive Officer of Supreme Cannabis. "We are excited to be working with MediPharm and look forward to Canadian adult-use consumers being able to experience High End Cannabis™ oil products derived from what we believe is the best flower being produced at scale."
Canopy Growth Corporation (NYSE: CGC) is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Recently, Canopy Growth Corporation had closed the previously announced acquisition of the assets of ebbu, Inc., a leader in hemp research and innovation. Intellectual Property ("IP") and R&D advancements achieved by ebbu's team apply directly to Canopy Growth's hemp and THC-rich cannabis genetic breeding program and its cannabis-infused beverage capabilities. In addition, ebbu's IP portfolio will contribute to the clinical formulations program executed by Canopy Health Innovations, a wholly owned subsidiary of the Company. Canopy Growth operates a rapidly emerging, field-scale hemp operation based in Saskatchewan and by applying ebbu's IP, the Company has the potential to vastly reduce the cost of CBD production, a sought-after cannabinoid in both the wellness and medical spaces.
Green Thumb Industries (OTCQX: GTBIF), a national cannabis cultivator, processor and dispensary operator, is dedicated to providing dignified access to safe and effective cannabis nationwide while giving back to the communities in which they serve. As a vertically integrated company, GTI manufactures and sells a well-rounded suite of branded cannabis products including flower, concentrates, edibles, and topicals. Recently, Green Thumb Industries Inc. was awarded four additional retail licenses by the Pennsylvania Department of Health. Each license allows for the opening of up to three stores. The state awarded only 23 new licenses after receiving 180 applications. The 12 new RISE™ stores will be located throughout the state including potential sites in Philadelphia and Pittsburgh. "We look forward to expanding our presence and providing more access to alternative ways of well-being to Pennsylvanians," said GTI Founder and Chief Executive Officer Ben Kovler. "The momentum continues to be strong following GTI's license award this week in New Jersey for cultivation, processing, and retail. These are big wins for the team and solidly aligned with our strategy to bring high quality cannabis products to people across the country."
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