PALM BEACH, Florida, March 12, 2019 /PRNewswire/ -- In both Canada and the U.S., the number of retail stores and dispensaries has been exponentially growing since the end of 2018. The number of restrictive regulations is diminishing while the legalization process has opened more markets. Licenses for not only growers and production facilities is also on the rise, but the raw number of retail outlets and dispensaries seems to be actually outpacing the available supply of product needed to fill their shelves! A recent article in Forbes said: "2018 was a momentous year for cannabis advocates as Canada legalized recreational marijuana use. Canadians and cannabis companies alike eagerly awaited legalization, but the rollout hasn't been as smooth as they would have liked. The most pressing problem facing the country's legal weed market is the fact that, in the majority of provinces, suppliers are unable to meet demand (leaving) many retailers with just a fraction of the promised products. In many areas, the supply shortage may last well into 2019. Active companies in the industry making moves to ready that include: Choom™ Holdings Inc. (CSE:CHOO) (OTC:CHOOF), Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB), MedMen Enterprises Inc. (CSE: MMEN) (OTC: MMNFF), Fire & Flower Holdings Corp. (TSX-V: FAF) (OTC: FFLWF), Trulieve Cannabis Corporation (OTC: TCNNF) (CSE: TRUL).
Some experts say the bottleneck exists in the regulatory approval by Health Canada of Licensed Processors and Cultivators Health Canada has added significant resources to attempt to shorten the approval process, but the backlog is significant," (an industry insider) explained. "In the coming months, we expect to see this supply shortage ease. On the opposite end of a product shortage is strong product pricing for cannabis producers and retailers. A gram of high-quality cannabis in Vancouver, Canada, for example, sold for $189.69 an ounce. Meanwhile, in Portland, Oregon, where an overabundance of marijuana is begging to cross state lines, you could buy an entire ounce of similar high-quality cannabis for around $100."
Choom™ Holdings Inc. (CSE:CHOO) (OTCQB:CHOOF) BREAKING NEWS: Choom™ an emerging adult and medical use cannabis company that has secured one of the largest national retail networks in Canada, is pleased to announce it is entering the United States, starting with the state of New Jersey. Choom through its wholly owned US subsidiary, Choom Holdings USA Inc., has signed a letter of intent ("LOI") to purchase an equity interest in a New Jersey based (the "NJ Company") medical retail dispensary applicant in New Jersey's upcoming Request of Applications ("RFA") that also intends to enter into recreational cannabis retail upon legalization, which is anticipated in 2020.
The NJ Company is advancing on its retail store strategy in New Jersey with the intention of receiving licenses to operate the maximum allowable cannabis stores for medical and eventually adult use when formally approved by the State. With these licenses, the NJ Company intends to create a network of branded stores using Choom's medical brand, Clarity Medical Centres, or Choom ("Choom Brands") for its recreational retail stores in the future. Choom will assist the NJ Company in this highly regulated market for the buildout and operations of cannabis retail stores. Choom will receive a royalty from the NJ Company for the use of the Choom Brands. Choom's investment in the NJ Company includes pro rata rights to maintain its equity interest on future financings.
"This is our first step into the United States, and we are very excited for our partnership with this experienced group to have the Choom Brands in New Jersey." states Chris Bogart, President & CEO of Choom Holdings Inc. "New Jersey is home to over 9 million people currently being served by only 12 cannabis operators in its medical program. New Jersey is an exceptional market to expand the Choom Brands. We are very impressed with the progress they have achieved to date, and with our expertise in cannabis retail, we are confident we can help them successfully operate in the New Jersey market." Read this and more news for Choom™ at: https://www.financialnewsmedia.com/news-choo/
Additional industry related developments from around the markets:
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) recently announced that it has commenced sales of cannabis oils to German pharmacies following receipt of all necessary approvals from the Canadian and German regulatory authorities. Pedanios 5/1 drops have become the first extract derived oil product compliant with the German monograph for in-pharmacy preparation. Aurora is the medical cannabis market leader in Germany. The Company has supplied the German market with dried cannabis flower via Aurora Deutschland (formerly Pedanios) since December 2015, and with Canadian-grown Aurora products since September 2017. Aurora has established a strong brand as a trusted supplier among prescribing physicians, dispensing pharmacies, and German patients. As one of few companies able to sell oils in this rapidly growing market, Aurora is well positioned to establish brand leadership in the European derivatives market.
MedMen Enterprises Inc. (CSE: MMEN.CN) (OTCQX: MMNFF) recently released its consolidated financial results for the second quarter of fiscal 2019. All financial information for the 13-week period ended December 29, 2018 is reported in U.S. dollars, unless otherwise indicated. "Our strong second quarter results support MedMen's commitment to drive strong retail and sales performance, while efficiently scaling the Company and executing on our growth strategy," said Adam Bierman, MedMen chief executive officer and co-founder. "As we emphasized last quarter, we are in a new phase of growth, one focused on continuing to operationalize our industry-leading retail footprint and increasing our profitability. We are confident in the team we've built to drive our success."
After going public almost one year ago, MedMen has established a track record of growth and success. With approximately 7% market share in California, the largest cannabis market in the U.S., the Company is planning to open 16 new locations across the U.S. in calendar 2019. Of the 16 new locations, 12 will be based in Florida, where MedMen is licensed for up to 30 locations. Additionally, four retail sites in Florida are expected to open in the next 90 days in the following locations: Key West, Orlando, West Palm Beach, and St. Petersburg.
Fire & Flower Holdings Corp. (TSX-V: FAF.V) (OTCPK: FFLWF) recently signed an agreement with Lift & Co. This agreement, which takes effect April 1, 2019, brings together Fire & Flower's industry-leading, education-focused retail expertise with Lift & Co.'s extensive database of product reviews and partner benefits. Fire & Flower has engaged Lift for a series of initiatives, including listing Fire & Flower as a premium retailer on the Lift platform in Alberta, Saskatchewan and Ontario. Lift members will be able to share their Fire & Flower cannabis experiences in both product and business reviews, which earn Lift Points that may be redeemed within the Lift platform for gift cards, exclusive promotions and invite-only industry events.
"Fire & Flower is excited to bring Lift & Co.'s users a trusted cannabis retail experience," says Chris Bolivar, vice-president of brand and marketing at Fire & Flower. "Our organizations are a great fit with shared principles on the importance of data science driving consumer education and personalized service through a commitment to responsible marketing."
Trulieve Cannabis Corporation (OTCPK: TCNNF) (CSE: TRUL.CN) recently announced it was opening the doors of its newest location on Monday: a new dispensary at Clearwater, Florida.
"Trulieve is and always has been focused on the patients it serves and is consistently working to provide a great experience when they visit our dispensaries. This new, updated Clearwater location is larger, provides easier access to patients, and delivers an even more pleasant and comfortable experience to our patients. We will continue to provide patients with the same high-quality products and natural relief to which they are accustomed," said Kim Rivers, Trulieve CEO. "We are confident that patients will enjoy the improved experience."
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