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Cannabis Continues to Garner Attention with the Rapid Expansion of CBD Products
FinancialBuzz.com News Commentary
NEW YORK, April 1, 2019 /PRNewswire/ -- Cannabis has become one of the most controversial topics on many countries' political agendas. Cannabis is still internationally illegal under regulatory statutes, but clinical trials and research have led countries to explore opportunities within the medical cannabis market. However, the recreational market is still widely being heavily enforced. Nonetheless, certain regions have moved to decriminalize, or even fully legalize, recreational cannabis use. Unlike marijuana, hemp's main component is CBD. While THC provides psychoactive effects to consumers, CBD does not induce psychoactive effects, but provide a therapeutic and relaxing effect akin to that of THC. Furthermore, because CBD does not provide any psychoactive effects, many countries have allowed personal use of the CBD as long as it contains less than 0.3% THC. According to data compiled by Hemp Business Journal, a division of New Frontier Data, the total sales for the U.S. hemp industry totaled USD 820 Million and is expected to grow to reach USD 1.9 Billion by 2022. Additionally, the market is projected to grow at a CAGR of 14.4% throughout the forecast period from 2018 to 2022. Overall, the industry is expected to be driven by increasing sales in the hemp-derived CBD and industrial application segments. Chineseinvestors.com Inc. (OTC: CIIX), Tilray, Inc. (NASDAQ: TLRY), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Aphria Inc. (NYSE: APHA) (TSX: APHA)
In 2017, the hemp-derived CBD product segment delivered USD 190 Million in sales, accounting for 23% of the overall market. The hemp food segment, which delivered USD 137 Million in sales, accounted for 17% of the hemp market that same year. By 2022, the food segment is expected to reach USD 212 Million as the segment is seeing major investments, primarily by large beverage corporations looking to enter into the cannabis-infused beverage industry. Many are looking to use cannabidiol, or CBD, to create therapeutic non-alcoholic drinks for consumers. However, CBD still remains popular among consumers in forms of capsules, oils, and flower itself. While the beverage industry is growing rapidly, other forms of CBD-based products are also seeing large growth. "The fact that a consumer-cannabis product has captured the attention of so many folks—from customers on the street to executives in the boardroom—reveals something far more lasting than whatever may come from this beverage product, even if it never launches," said Ben Curren, Chief Executive Officer and Founder of Green Bits. "What it reveals is that now, you and I and millions of people can picture this: the substance that once was considered the nation's most deadly, the very banner of America's war on drugs, might someday soon be "Brought to You By Coke," and not just as a social lubricant but as a sports recovery product applicable to an even wider audience."
Chineseinvestors.com Inc. (OTCQB: CIIX) just announced breaking CBD news this morning that, "that its wholly owned foreign enterprise , CBD Biotechnology Co. Ltd. ("CBD Biotech"), will participate in the 29th Vietnam International Trade Fair (Vietnam Expo) at the Hanoi International Exhibition Center (ICE) being held on April 10-13, 2019 in Hanoi.
As a featured exhibitor at the Vietnam Expo, CBD Biotech will introduce the new concept of "hemp plant extracting" and cosmetics. CBD Biotech will exhibit its self-branded hemp-infused skincare line as well as its hemp wine. CBD Biotech is one of the first companies to offer skincare products infused with hemp oil and hemp leaf extract in China. Focused on building new markets for industrial hemp products in throughout Asia, this expo will allow CBD Biotech to explore possible partnership opportunities for the Vietnamese market.
"The Vietnam Expo continues to be an important business destination to build bridges for trade promotion, foreign relations, facilitating commerce and attracting trade between Vietnamese and foreign enterprises," said Ms. Summer Yun, CEO of CBD Biotechnology Co. Ltd. "A pioneer in the Chinese market for hemp-infused skincare products and a Chinese originator of "hemp plant extracting" in combination with skincare, CBD Biotech's participation in this year's Vietnam Expo will give our brand the exposure needed to become an influencer within the Asian market. We anticipate creating lucrative export opportunities and exploring possible expansion to more Southeast Asian countries and members of ASEAN."
The Vietnam Expo, one of Vietnam's largest, most influential international exhibitions,
is hosted by the Ministry of Industry and Trade of Vietnam. This year the event will showcase 760 companies with over 1,000 international booths, with 35% of the companies being foreign and 65% Vietnam-based. The event provides foreign exhibitors the opportunity to educate Vietnamese business professionals regarding global trends and provides attendees the opportunity to purchase new products and learn about new technologies and investment opportunities.
CBD Biotech's current line of skincare products features the Popular Series which includes hemp peptide concentrate liquid, aqua bio-magnetic mask and hemp hyaluronic acid, the Live Oxygen Series which includes oxygen cleansing foam, oxygenated water and live oxygen cream, the Plant Series which includes Huanyan tone-up cream, aqua double moisturizer and peptide mineral essence, and the New Products Series which includes hemp eye pads, horse oil soap and hemp eye cream.
About ChineseInvestors.com - Founded in 1999, ChineseInvestors.com endeavors to be an innovative company providing: (a) real-time market commentary, analysis, and educational related services in Chinese language character sets (traditional and simplified); (b) advertising and public relation related support services; and (c) retail, online and direct sales of hemp-based products and other health related products. For more information, visit ChineseInvestors.com."
Tilray, Inc. (NASDAQ: TLRY) is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients and consumers in twelve countries spanning five continents. Tilray, Inc. recently announced that it had entered into a definitive agreement, pursuant to which Tilray will acquire all of the issued and outstanding securities of FHF Holdings Ltd. from Compass Group Diversified Holdings, LLC (NYSE:CODI) and other shareholders of Manitoba Harvest. Under the terms of the Agreement, Tilray will acquire Manitoba Harvest on a cash and debt-free basis, for an aggregate purchase price, including cash and class 2 Common Stock in the capital of Tilray, of up to CAD 19 Million pending the achievement of certain milestones after the closing of the Transaction. Together, Tilray and Manitoba Harvest plan to grow both companies' revenue while bringing nutritious hemp foods and supplements to more households across the U.S. and Canada. The acquisition will expand Tilray's product portfolio into the natural foods category and bring Manitoba Harvest expertise in working with cannabinoids, including cannabidiol (CBD). By leveraging Manitoba Harvest's established distribution network, Tilray plans to accelerate its expansion into the U.S. and Canadian markets, where legal, for CBD products. Manitoba Harvest also brings to Tilray an experienced team and manufacturing capabilities, including the addition of two high quality BRC AA+ certified manufacturing facilities as well as significant sales and distribution capabilities. "Tilray's acquisition of Manitoba Harvest is a milestone for the cannabis industry. It builds on the strategic partnerships we have formed with consumer brand industry leaders and demonstrates our track record of disrupting the global pharmaceutical, alcohol, CPG, and functional food and beverage categories," said Brendan Kennedy, Tilray President and Chief Executive Officer. "We're excited to work with Manitoba Harvest to develop and distribute a diverse portfolio of branded hemp-derived CBD food and wellness products in the U.S. and Canada."
Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) is a world-leading diversified cannabis and hemp company, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth Corporation and Sequential Brands Group, Inc. (NASDAQ: SQBG) recently announced that Martha Stewart had joined the Company in an advisory role to assist with developing and positioning a broad new line of product offerings across multiple categories. With decades of success in publishing, broadcasting, online and merchandising, Martha Stewart has firmly cemented herself as one of the most well-respected businesswomen in the United States. Along with a deep understanding of what consumers in the United States and around the world want, Martha has been one of the most vocal advocates for animals, championing the health and wellness of pets and farm animals alike. With several clinical trials underway, Canopy Growth will be leaning on Martha's vast knowledge of consumer products while exploring the effectiveness of CBD and other cannabinoids as they relate to improving the lives of both humans and animals. As previously reported in January 2019, Canopy Growth has developed diverse product offerings specific to hemp-derived CBD and the Company looks forward to working closely with Martha Stewart as they further develop and introduce these products to market in the future. Canopy Growth previously reported that it will invest between USD 100 Million and USD 150 Million in a hemp industrial park in New York State with an intended purpose of being the Company's first hemp facility in the United States. "As soon as you hear the name Martha, you know exactly who we're talking about," shared Canopy Growth Chairman and co-Chief Executive Officer , Bruce Linton. "Martha is one of a kind and I am so excited to be able to work alongside this icon to sharpen our CBD product offerings across categories from human to animal."
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) is a globally diversified and vertically integrated cannabis company with a presence across four continents. Recently, Cronos Group Inc. and Ginkgo Bioworks Inc., the organism company, announced a landmark partnership to produce cultured cannabinoids. Using its platform technology for organism design and development, Ginkgo will complement Cronos Group's technologies for producing a full spectrum of cannabinoids. As part of this unprecedented deal, Cronos Group has agreed to issue a specific number of common shares in tranches subject to Ginkgo's achievement of certain production milestones. As two of the leading companies in their respective industries, Cronos Group and Ginkgo believe that they are best-suited to unlock the potential of innovation in the cannabis industry. Cronos Group brings a deep understanding of the plant's biological structure and function, while Ginkgo brings 10 years of experience designing microorganisms for the production of cultured products across pharmaceuticals, agriculture, flavors, fragrances, and more. "Cronos Group is building the world's most innovative cannabinoid platform," said Mike Gorenstein, Chief Executive Officer of Cronos Group. "The potential uses of cannabinoids are vast, but the key to successfully bringing cannabinoid-based products to market is in creating reliable, consistent, and scalable production of a full spectrum of cannabinoids, not just THC and CBD. We are thrilled to partner with Ginkgo; their biological engineering capabilities and disruptive technology platform are unrivaled. Together we can revolutionize the cannabis industry."
Aphria Inc. (NYSE: APHA) (TSX: APHA) is a leading global cannabis company driven by an unrelenting commitment to our people, product quality and innovation. Aphria Inc. and Rapid Dose Therapeutics Inc. (CSE: DOSE) recently announced that they have expanded the scope of their previously announced agreement expanding the territory where Aphria has been granted exclusive preferred rights to license, manufacture, distribute and sell RDT's QuickStrip™ innovative, proprietary delivery technology for the cannabis market to Germany. RDT's proprietary QuickStrip™ technology is a Quick, Convenient, Precise, Discreet™ oral fast-dissolving drug delivery system that offers a smoke-free choice to consumers. Aphria expects to produce and distribute CBD-only Quickstrips™ in Germany by Spring 2019. As part of the Agreement, Aphria maintains the option to add future international markets as the opportunity in those markets evolve. "Germany is one of the most sought-after cannabis markets today, and Aphria continues to take a comprehensive approach to ensure a leading presence in the country as the opportunity evolves," said Jakob Ripshtein, President of Aphria. "Aphria is committed to bringing advanced products and innovations to cannabis markets around the world, and this agreement with RDT will enable us to bring QuickStrip™ technology to the German market and offer a unique nutraceutical product that delivers a consistent dosage."
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