Palm Beach, Fl., Oct. 27, 2021 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - Recreational marijuana, medical marijuana and hemp cultivation has been steadily growing the last few years and is expected to continue for several years to come. The global cannabis cultivation market size is expected to grow at a compound annual growth rate (CAGR) of 14.3% from 2020 to 2027. Growing legalization and the adoption of cannabis for the treatment of chronic diseases are the key factors driving the growth of the market. In addition, the liberalization of laws related to cannabis cultivation, especially for hemp cultivation by various countries due to low THC content is further increasing its adoption. Furthermore, the legalization of marijuana in various geographies and its increasing adoption for medical purposes are factors driving the market for cannabis cultivation. In addition, according to a report from Grand View Research, the demand for hemp is rapidly growing, as many developed countries have legalized the cultivation and processing of hemp after recognizing the levels of CBD present in it, which is leading to an increased demand for hemp extracts for various application in several sectors, including pharmaceuticals, cosmetics, nutraceuticals, and food & beverage. Hemp is regarded as an agricultural commodity produced in over 40 countries. It is a strain of cannabis Sativa, part of the genus cannabis, with THC content as low as 0.3%. Countries such as China, Canada, France, Chile, South Korea, Ecuador, Croatia, Czech Republic, Mongolia, Romania, and Russia are some of the major producers of hemp across the world. Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. (OTCPK: NUGS), Sundial Growers Inc. (NASDAQ: SNDL), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Tilray, Inc. (NASDAQ: TLRY) (TSX: TLRY).
The Grand View Research report said that, based on biomass, the hemp segment dominated the market for cannabis cultivation... and this high share is attributable to the increasing adoption of hemp and derived products and its growing acceptance among the users due to its low THC content. Furthermore, marijuana is expected to be the fastest-growing segment, growing at a significant growth rate over the forecast period. This growth can be attributed to the growing legalization of marijuana in various countries for medical and adult use. In addition, promising government reforms regarding the utilization of hemp in many countries is increasing the adoption of hemp and hemp-derived products. For instance, Japan has not legalized marijuana products, however, due to the low THC content, hemp CBD oil has been legalized. Therefore, affirmative government initiatives and rising awareness is anticipated to contribute to the overall growth."
Cannabis Strategic Ventures, Inc. (OTC Pink: NUGS) BREAKING NEWS: NUGS Announces Fully Executed MOU to Acquire Large Capacity Indoor Cannabis Cultivation Facility - Cannabis Strategic Ventures, an emerging leader in the U.S. cannabis marketplace, is pleased to announce the signing of a Memorandum of Understanding (the "MOU") between Cannabis Strategic Ventures and Devine Solutions, Inc., a California corporation, relating to the proposed acquisition by NUGS of an indoor cannabis cultivation facility (the "Facility") in Sacramento, CA.
According to the terms of the MOU, the Company intends to purchase 10% of the Facility at a valuation of $15 million for the entire Facility, with an option to purchase an additional 41% of the Facility (which would comprise a controlling 51% stake) at this same valuation.
The Facility is approximately 15,600 square feet and has the potential to house an estimated 500 grow lights. It is projected to produce 2-3 lbs. of premium exotic cannabis flower per light per harvest across an estimated 5.75 harvests per year, suggesting an upside potential of over 7,000 lbs. of premium cannabis flower per year.
Simon Yu, CEO of NUGS, commented, "This deal represents the potential to sharply increase our premium cannabis production capacity and materially augment our status as an emerging leader in the vertically integrated California cannabis marketplace. We have already amassed years of experience refining our cultivation methods and strains in an outdoor framework with our NUGS Farm North site. Adding a top-tier indoor cultivation operation stands to help us further build upon that success and drive more volume in the premium flower market, which has powerful implications given our recent expansion into the dispensary marketplace with our MDRN Tree downtown LA dispensary location. The combination grants NUGS expanding operations at both ends of the farm-to-sale model." CONTINUED… To read this full release and more for NUGS, please visit https://www.financialnewsmedia.com/news-nugs/
Other recent developments and major influences in the cannabis industry include:
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) recently announced the launch of its SPINACH FEELZ™ Chill Bliss 2:1 THC|CBG gummy, the first cannabis edible of its kind in Canada to feature THC and cultured cannabigerol ("CBG") from fermentation in a sweet, delicious gummy for adult consumers. As the only cannabis gummy in Canada to feature cultured CBG, one of many rare cannabinoids found in small quantities within the cannabis plant, this gummy is formulated to deliver a happy and relaxed experience.
SPINACH FEELZ™ Chill Bliss 2:1 THC|CBG gummies come in a Pineapple Starfruit flavor and feature the same dual flavor combination and flavor masking technology that have made SOURZ™ gummies one of the best-selling cannabis edibles in Canada.
Canopy Growth Corp. (NASDAQ: CGC) (TSX: WEED) and Mountain High Products LLC, Wana Wellness LLC and The Cima Group LLC have entered into definitive agreements providing Canopy Growth with the right, upon federal permissibility of THC (tetrahydrocannabinol) in the United States, to acquire 100 per cent of the outstanding membership interests of Wana, the No. 1 cannabis edibles brand in North America by market share.
Wana manufactures and sells gummies in the U.S. state of Colorado and licenses its intellectual property to partners, which manufacture, distribute and sell Wana-branded gummies across the U.S., including California, Arizona, Illinois, Michigan and Florida, giving Wana a total footprint of 12 U.S. states currently, and across Canada. Wana expects to have licence agreements in place in more than 20 U.S. states, including in future adult-use markets in New York and New Jersey, prior to the end of calendar 2022.
Sundial Growers Inc. (NASDAQ: SNDL) recently announced that it has entered into an arrangement agreement (the "Agreement") with Alcanna Inc. (CLIQ) ("Alcanna") pursuant to which Sundial will acquire all of the issued and outstanding common shares of Alcanna ("Alcanna Shares") by way of a statutory plan of arrangement for total consideration of approximately $346 million (the "Transaction").
With over 25 years of experience in retailing regulated products, Alcanna is Canada's largest private liquor retailer, operating 171 locations predominantly in Alberta under its three retail brands "Wine and Beyond", "Liquor Depot" and "Ace Liquor". Alcanna's strategic partner, in which it holds an approximately 63% equity interest, Nova Cannabis Inc. (TSX: NOVC) ("Nova"), is one of Canada's largest cannabis retailers offering a wide range of high-quality cannabis products at value prices. Nova currently operates 62 stores across Alberta, Saskatchewan and Ontario primarily under the "Value Buds" and "Nova Cannabis" banners.
Tilray, Inc. (NASDAQ: TLRY) (TSX: TLRY), a global pioneer in medical cannabis research, cultivation, production, and distribution, recently announced it has been selected by the Luxembourg Ministry of Health as a supplier of Good Manufacturing Practice (GMP) certified medical cannabis products for the country's medical cannabis program.
Following this selection, Tilray will supply a variety of its pharmaceutical-grade medical cannabis products, including extracts and dried flower with different degrees of THC and CBD for patients with varying medical conditions. These prescription-based medical cannabis products will be administered to qualifying patients in Luxembourg under the supervision of physicians.
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