Retail Cannabis Sales for 2019 Already up by 35% Over 2018
FinancialNewsMedia.com News Commentary
23 Jul, 2019, 08:50 ET
PALM BEACH, Florida, July 23, 2019 /PRNewswire/ -- Recent cannabis industry reports are all predicting the continuation of the seeming unending increase in revenues from year to year. The future is indeed looking bright for the retail sales market in the U.S. A May 30, 2019 article reported: "Retail sales of medical and recreational cannabis in the United States are on pace to eclipse $12 billion by the end of 2019 – an increase of roughly 35% over 2018 – and could rise as high as $30 billion by 2023. Continued sales gains in recreational markets as well as the rapid development of medical marijuana programs in newly legalized states will spur much of that growth over the coming year." The article said the reason that the industry experts remain optimistic even though: "California's massive new adult-use industry got off to a slow start, as high taxes, local licensing restrictions and a cumbersome bureaucracy made it difficult for licensed businesses to compete with the state's entrenched black- and gray-market operators. But by the end of 2018, the number of licensed retail stores and delivery services in California was up considerably, pushing estimated sales past the $2 billion mark." Active Companies from around the market with current developments include: Body and Mind Inc. (CSE:BAMM) (OTCPK: BMMJ), The Flowr Corporation (TSX-V: FLWR) (OTCPK: FLWPF), HEXO Corp (NYSE: HEXO) (TSX: HEXO), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Terra Tech Corp. (OTCQX: TRTC).
The article concluded: "Nationwide (recreational) sales are set for major growth in the coming years, as California and Massachusetts are expected to hit their strides by 2020 and markets such as Maine and Michigan come online. Additionally, several state legislatures are actively considering recreational cannabis measures, including Delaware, Illinois, New Hampshire, New York, Rhode Island and Vermont. By 2023, we project total retail marijuana sales in the United States will reach between $25 billion and $30 billion annually – more than a threefold increase from estimated annual sales in 2018."
Body and Mind Inc. (CSE:BAMM.CN) (OTCPK:BMMJ) BREAKING NEWS: Body and Mind, a multi-state operator in Nevada, California, Ohio and Arkansas, is pleased to provide an update on the ShowGrow dispensaries in Long Beach and San Diego, California.
Robert Hasman, President of Nevada Medical Group, LLC and board member of BaM, commented, "We are pleased to move one step closer towards the closing of the transaction for ShowGrow Long Beach, which is currently operational and cash flow positive, and the closing of the transaction for ShowGrow San Diego, presently under construction and expected to open in late 2019. California is a key part of our growth strategy and falls in line with our plan to invest in profitable, undervalued assets, in limited license jurisdictions. We look forward to working with the ShowGrow team and closing the transaction during the second half of this year."
As previously mentioned in BaM's press release on July 3, 2019, BaM, through its wholly owned subsidiary, NMG Long Beach, LLC ("NMG LB"), has entered into an asset purchase agreement (the "Asset Purchase Agreement") with Green Light District Holdings, Inc. ("GLDH") and The Airport Collective, Inc. ("Airport") to purchase all of the assets related to the ShowGrow Long Beach business and NMG LB is currently managing the ShowGrow Long Beach business pursuant to a management assignment and assumption agreement that NMG LB entered into with GLDH and Airport. In addition, BaM along with NMG LB and BaM's 60% owned subsidiary, NMG San Diego, LLC ("NMG SD"), entered into an amended settlement and release agreement with GLDH, Airport and SGSD, LLC pursuant to which NMG SD has assumed the lease for the ShowGrow San Diego premises, has applied to receive its own medical commercial cannabis retail license and adult-use commercial retail license at the San Diego premises, and is currently proceeding with construction associated with the build out of the San Diego premises to start operations in the near future. Read this and more news for BAMM at: https://www.financialnewsmedia.com/news-bamm
In other industry developments and happenings in the market this week include:
The Flowr Corporation (TSX-V: FLWR) (OTCPK: FLWPF) recently announced receipt of a second site cultivation license from Health Canada for its Flowr Forest project. The Company has begun transplanting select cultivars and is on track for a first harvest in the fourth quarter of 2019. Flowr expects to produce approximately 10,000 kilograms per annum from Flowr Forest once fully optimized and operational.
Flowr Forest, which is located on the Company's Kelowna campus, has 42 greenhouses totaling 189,000 square feet situated within a total licensed outdoor grow area of more than 530,000 square feet. The outdoor cultivation area planted is expected to be 150,000 square feet and can be expanded to include an incremental 160,000 square feet. The Company in total has over 750,000 square feet dedicated to Flowr Forest's current and future operations and has a right of first refusal on an additional 850,000 square feet located immediately to the north and contiguous with the currently licensed area.
HEXO Corp (NYSE: HEXO) (TSX: HEXO) cannabis products are now available to Alberta consumers for the first time after finalizing an agreement between HEXO and Alberta Gaming, Liquor and Cannabis (AGLC). The agreement provides AGLC with HEXO's nine dried flower products and award-winning Elixir oral sprays, making them available on the Alberta Cannabis online store and to all of the nearly 200 private retail stores in the province.
"This agreement marks the latest achievement in the development of HEXO's presence in Western Canada and our goal to be top two in market-share in the country," said HEXO Corp CEO and co-founder, Sebastien St-Louis. "Alberta represents one of the largest cannabis markets in Canada and we are thrilled to see our products are available to Albertans across the province."
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), a North American leader in cannabinoids extraction, formulation and turnkey packaging solutions, has recently completed a private placement with both existing and new institutional investors, led by Perceptive Advisors, resulting in gross proceeds to the Company of US$41.4 million ("The Offering"). John Moretz, Chairman of the Board, and Michael Cammarata, President and CEO of Neptune, invested US$5.0 million in the aggregate as part of this Offering. Upon closing of the Offering, the Company issued an aggregate of 9,415,910 common shares of the Company ("Shares") at a purchase price of US$4.40 per Share.
"The Board joins me in thanking investors who participated in this offering and in welcoming our new shareholders to Neptune. Given recent contracts and the announced extraction capacity expansion plans, we are highly confident in the strength of Neptune's business outlook," said John Moretz. "My incremental investment in Neptune reflects my conviction in our new CEO and management team and their ability to execute on Neptune's strategy. We opted for this accelerated financing structure to stay on track with the previously announced SugarLeaf closing timeline."
Terra Tech Corp. (OTCQX: TRTC) a vertically integrated cannabis-focused agriculture company, recently announced that it started the process to open a CBD only retail location called Blüm CBD in downtown Las Vegas at its retail location on 121 North 4th Street.
The future Blüm CBD is positioned to be easily accessible and draw high volumes of customers on North 4th Street, located just 100 feet from the world-famous Fremont Street Experience which attracts more than 14 million annual visitors. The design of the store will be reflective of new Blüm store concepts and the artful vibe of downtown Las Vegas. Blüm CBD is expected to have an eye-catching façade and a bright and modern interior with modular displays in place to keep the visual merchandising of the store fresh, clean and organized.
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