PALM BEACH, Fla., Aug. 19, 2021 /PRNewswire/ -- FinancialNewsMedia.com News Commentary - In the CBD market, biomass is a term that not all fully known by all. Industrial hemp biomass, sometimes referred to as fiber biomass, can be used in a variety of ways, from producing clothing to fueling machinery. However, this industrial biomass generally has lower levels of CBD, and is therefore not as useful in the production of CBD products. Alternatively, CBD biomass refers to excess hemp plant material that is rich in CBD. This kind of biomass is best used to extract CBD oils, distillate, or isolate. The resulting solution can then be used for the production of virtually any CBD products, from lotions to edibles. Increasing awareness about the health benefits of cannabidiol (CBD), changing consumer opinion, and attitude toward CBD products are some of the key factors driving the demand for these products. Furthermore, increasing demand for cannabidiol from various end-user industries such as food and beverage, personal care and cosmetics, and pharmaceuticals is expected to trigger market growth. The global cannabidiol market size is expected to reach USD 13.4 billion by 2028, according to a new study by Grand View Research, Inc. The report said that: "In 2020, the hemp segment accounted for the largest revenue share valued at USD $1.7 billion, owing to the rising awareness regarding the health benefits of products infused with cannabidiol derived from marijuana. On the other hand, hemp-derived CBD is expected to witness the fastest CAGR over the forecast period, owing to the increasing legalization of hemp in various countries. Active companies in the markets this week include: CAN B CORP. (OTCQB: CANB), MedMen Enterprises Inc. (OTCQX: MMNFF) (CSE: MMEN), Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF).
"The Business to Business (B2B) segment accounted for the largest revenue share in 2020 and is expected to witness a lucrative growth rate over the forecast period. Growing demand for cannabidiol products in various sectors such as health and wellness, pharmaceutical, food and additives, and cosmetics sectors has increased the need for companies to procure cannabidiol raw material or precursor material for their product in bulk. Hence, various growth opportunities are emerging in the cannabidiol wholesale business, which is expected to propel the growth of this segment. North America dominated the market in 2020 and is expected to continue its dominance over the forecast period. Favorable regulations, increasing awareness about CBD oil, growing consumer preference, and a rise in the number of manufacturers are factors expected to fuel market growth in the region."
CAN B CORP. (OTCQB: CANB) BREAKING NEWS: Can B Corp. Closes Acquisition of Assets from Music City Botanicals to Strengthen its Vertical Processing Capabilities in CBD - Can B Corp. ("Can B" or the "Company"), a diversified health and wellness company specializing in the development, production and sale of products containing hemp derived cannabinoids, is pleased to announce its acquisition of assets from Music City Botanicals, based in Mcminville, Tennessee. The lab and equipment will be used for isomer (Delta-8- CBD- CBG) operations.
This acquisition, along with the previously announced TCW Pharma acquisition, will make the Can B one of the largest producers of CBD and pharmaceutical grade health and wellness products in North America. IS THIS TRUE? The addition of Music City Botanicals adds additional volume in extraction, isomer lab production, and new genetics in the premium flower market. New retail products will include pharmaceutical grade CBD and related materials. In-house labeling and packaging will create a chain of custody process that is unmatched in the industry.
Music City Botanicals is a complete "seed-to-shelf" producer of high-quality CBD products using in-house extraction, distillation, isolate production and final product fulfillment to complete a vertical chain of custody that gives complete confidence in all its products. Music City Botanicals has over 100 years of experience in a world class team of operators, scientist, and salesmen. All Music City Botanical products are manufactured under Good Management Practices, ISO 9000 certification, Kosher and Halal approved and blessed, and FDA registered practices. All products are tested by primary and third-party labs that generate accuracy that is unmatched by competitors. The teams experience in compliance to the industry will give confidence in a market that has been plagued by non-regulation in labeling and packaging.
The transaction is valued at over $_ million for processing and extraction assets encompassing equipment and a 50,000 square feet lab building in Mcminville, Tennessee. The lab is twice the size of Can B's Miami operation and has the capacity to produce 600 liters of Delta 8 and other isomers per week.
Marco Alfonsi, Can B's Chief Executive Officer, commented, "This acquisition brings us additional complementary assets that enable us to control our supply chain from biomass through end products for both retail and wholesale customers. Our previously announced acquisition of TCW Pharma assets will feed this isomer operation and provide us cost synergies and scale as we will control the entire supply chain. Can B is now a full-service hemp and CBD company that can facilitate servicing the large box types as well as the boutique vape and smoke store."
As part of the asset acquisition, Can B maintains all of the intellectual property including the branding name and retail product. Additionally, Can B acquired a talent pool of seasoned professionals including a sales force in isomer products across the county. The pharmaceutical space will be an important part of the unique formulations that are available within the experienced laboratory staff. The dedicated and knowledgeable employee base covers Miami, Tennessee, Colorado and Washington. Read this full release for CANB at: https://www.financialnewsmedia.com/news-canb/
Other cannabis-related developments from around the markets include:
MedMen Enterprises Inc. (OTCQX: MMNFF) (CSE: MMEN), a premier U.S. cannabis retailer, recently announced that investors, led by Serruya Private Equity ("SPE"), are purchasing US$100 million of units ("Units") of Medmen at a purchase price of US$0.24 (C$0.32) per Unit (the "Private Placement"). Certain investors associated with SPE agreed to backstop the US$100 million to be raised in the Private Placement (the "Backstop Commitment").
The US$100 million in proceeds from the Private Placement will allow MedMen to expand its operations in key markets such as California, Florida, Illinois and Massachusetts and identify and accelerate further growth opportunities across the United States. Tom Lynch, CEO of MedMen, remarked, "This US$100 million investment is a game-changer for our Company, strengthening our balance sheet and creating a platform for our future growth. This transaction gives us the flexibility and firepower to match our revenue trajectory to our operational expertise and internationally renowned brand. MedMen 2.0 is here, and we are thrilled to embark on the next stage of our journey."
Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, recently announced the delivery of a cannabis shipment worth nearly C$8 million, in one of the largest single shipments of cannabis that Israel has received.
The sale is a significant step in advancing the Company's international medical business, a key strategic priority for Aurora as a global cannabis company. With leadership in both Canada and Europe, Aurora is uniquely positioned to be a partner of choice in countries like Israel, where THC recreational markets are expected to be around the corner, and non-THC cannabinoids, such as CBD, are advancing toward legalization.
Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), a diversified and fully integrated health and wellness company focused on plant-based, sustainable and purpose-driven lifestyle brands, recently announced its financial and operating results for the three-month period ended on June 30, 2021.
First Quarter Financial Highlights Were: Revenues of $12.4 million compared to $11.2 million in the comparable period in fiscal year 2021, and exceeded our pre-announced revenue range of $10 to $12 million. First quarter revenues of $12.4 million increased 83% versus revenues of $6.8 million in the fourth quarter of fiscal year 2021; Gross profit loss of $2.9 million or (23.0%) compared to gross profit of $3.3 million or 29.0% for the comparable period in fiscal 2021. By excluding from costs of sales: depreciation and amortization expenses, various fixed and indirect costs, as well as costs related to SugarLeaf, a consolidated gross profit of 13% could be derived, a positive difference of 36 percentage points when compared to the 23% gross profit loss of the quarter; Net loss of $23.0 million compared to a net loss of $11.4 million in the first quarter of the previous year; and Adjusted EBITDA loss was $15.9 million compared to an Adjusted EBITDA loss of $2.5 million in the comparable period in fiscal year 2021.
Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) recently announced that it has acquired 100% interest of privately-held, Colorado-based CBD-platform Balanced Health Botanicals ("Balanced Health") in a transaction valued at US$75 million, effective today ("Closing Date"). Balanced Health owns and operates one of the largest brands in the hemp-derived cannabidiol (CBD) market in the United States, providing Village Farms with immediate entry into the US CBD market in a consumer products category adjacent to the high-THC cannabis market, as well as the broader consumer packaged goods (CPG) wellness arena. Balanced Health is a profitable business and the acquisition is expected to be immediately accretive to net income.
Balanced Health develops and sells high-quality, CBD-based health and wellness products. With an overriding focus on quality and compliance, Balanced Health has established a diverse portfolio of CBD and other cannabinoid products, including ingestible, edible and topical applications that are distributed via e-commerce and brick and mortar retail channels. Its e-commerce platform, CBDistillery™, is a top-five US CBD brand1 and top-ranked web site within the CBD category, with more than 30,000 orders monthly and a significant repeat customer base. Through its long-term partnerships, Balanced Health has control of the entire supply chain from seed-to-shelf, seamless sourcing, manufacturing, and sale of high-quality end products across a wide variety of forms and uses.
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