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CBD Products Continue to Gain Traction in Markets Around the Globe
NEW YORK, April 8, 2019 /CNW/ -- Cannabis continues to grab headlines the world over. However, due to the lack of efficient, large-scale clinical trials, cannabis is not still not considered a registered medicine under international regulations. Cannabis is comprised of approximately 104 different cannabinoids and around 750 different chemicals such as cannabidiol (CBD) and tetrahydrocannabinol (THC). Many pieces of research have linked cannabis to effectively treating certain medical conditions such as cancer, chronic pain, epilepsy, and multiple sclerosis. Ultimately, researchers hope to replace traditional treatment and medication with cannabis-based products. However, due to cannabis' THC component, legalizing cannabis on an international scale poses a challenge. THC is the psychoactive derivative of the marijuana family, which falls under the cannabis plant. On the other hand, CBD falls under the hemp family, which is also derived from cannabis. While the two offer consumers similar therapeutic effects, CBD does not provide psychoactive effects or a "high." Furthermore, because of CBD's biological makeup, countries have begun using CBD-based products for medical applications. Specifically, the U.S., Canada, Australia, Germany, and Columbia are seeing large usage of CBD products, as the CBD market is projected to be one of the most explosive segments, further propelling the overall cannabis market. According to data compiled by Verified Market Intelligence, the global marijuana market was valued at USD 42.20 Billion in 2017. By 2025, the market is projected to reach USD 466.81 Billion, growing at a CAGR of 35.3% from 2018 to 2025. Chineseinvestors.com Inc. (OTC: CIIX), Shineco, Inc. (NASDAQ: TYHT), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF), Organigram Holdings Inc. (OTC: OGRMF) (TSX-V: OGI)
The cannabis market is rapidly growing globally, however, the U.S. alone contributes to nearly 90% of the global share. States such as California and Colorado deliver over billions of dollars in revenue annually. Moreover, with the recent passage of the U.S. Farm Bill, cannabis-derived revenue is expected to increase significantly. According to a recent study by Cowen & Co., analysts estimated that CBD products delivered revenue in the range of USD 600 Million to USD 2 Billion in 2018. By 2025, Cowen analysts project that revenue is expected to jump up to USD 16 Billion. One of the findings in the study highlighted that nearly 7% of the polled group had used CBD as a supplement, which was much higher than Cowen had anticipated. The number of users is expected to grow especially since CBD products can be found in abundance throughout local convenience stores and pharmacies. "I think it's because for some consumers, it actually works as both an anti-inflammatory and anti-anxiety [product]," Cowen analyst Vivien Azer explained when asked about the popularity of the market. "Those are characteristics that are tangible to the consumers. With CBD, you know if it works for you or not. There is a tangible payback in relatively short order."
Chineseinvestors.com Inc. (OTCQB: CIIX) recently announced 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."
Shineco, Inc. (NASDAQ: TYHT), incorporated in Delaware in August 1997 and headquartered in Beijing, China, is a holding company, through its subsidiaries and variable interest entities, undertakes vertically- and horizontally-integrated production, distribution and sales channels to provide health and well-being focused plant-based products in China. Shineco, Inc. recently announced that the Company, through its wholly-owned subsidiary Tenjove NewHemp Biotech Co., Ltd., entered into a strategic cooperation agreement with the Xingshan People's Government of Hegang City of Heilongjiang Province. Pursuant to the Agreement, both parties agree to actively promote the development of a complete industrial chain for industrial hemp including cultivation, harvesting, initial processing and fine extraction to form a local industry integration model and to achieve a new industrial-scale economy. Mr. Yuying Zhang, Chairman and Chief Executive Officer of Shineco, commented, "we are pleased to announce this agreement with the Xingshan People's Government of Hegang City. We expect an annual production of 30 tons of CBD extract, and other raw medical materials from our industrial hemp project, along with 2,000 tons of industrial hemp fiber, 500 tons of industrial hemp seed oil and 4,000 tons of hemp leaves. We estimate the value of the CBD and related raw medical extract alone to reach RMB 2.1 billion, given the robust demand for CBD products and the resulting high market price. We look forward to leveraging our extensive experience in processing and marketing agricultural products and sharing our expertise with the appropriate authorities to ensure a profitable, environmentally friendly, and socially conscious development path in line with local government expectations."
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."
Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) is one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada. Village Farms International, Inc. recently announced that it has entered into an agreement with Nature Crisp LLC to form a joint venture for the outdoor cultivation of high-cannabidiol (CBD) hemp and CBD extraction in multiple states throughout the United States. The joint venture, Village Fields Hemp, will be 65% owned by Village Farms and 35% owned by Nature Crisp. Nature Crisp is a private, Georgia based farming operation and part of the Jennings agricultural group of companies, which grows a diverse range of food and other crops, including hemp, on more than 6,000 acres in the U.S. and Canada. "Jennings Group is a pioneer in hemp cultivation and this joint venture establishes a new powerhouse in hemp cultivation that significantly advances Village Farms' vertically integrated CBD strategy," said Michael DeGiglio, Chief Executive Officer, Village Farms. "As 10 the generation farmers since Gideon (Zanini) Jennings immigrated to South Carolina in 1736, Jennings Group brings deep knowledge in large-scale field agriculture across a vast array of crops, with a proven track record of genetic optimization and innovation. Over the past several years, they have rapidly become a leading authority on hemp cultivation, renowned for their understanding of the plant and their success applying their cultural and genetic expertise to meaningfully improve CBD content and yield. Moreover, the Jennings Group team brings extensive relationships with the farming community across the U.S., as well as with geneticists, academics and researchers, that will be invaluable to the success of this new business."
Organigram Holdings Inc. (OTCQX: OGRMF) (TSX-V: OGI) is a TSX Venture Exchange listed company whose wholly owned subsidiary, Organigram Inc., is a licensed producer of cannabis and cannabis-derived products in Canada. Organigram Holdings Inc. recently announced the Company has entered into an agreement with 1812 Hemp, a New Brunswick based industrial hemp research company to secure supply and support research and development on the genetic improvement of hemp through traditional plant breeding methods. 1812 Hemp is focused on further developing a line of Canadian cultivars (specific varieties of plants cultivated to enhance desirable qualities) of high cannabidiol (CBD) yielding hemp for the Canadian climate. Under the terms of the agreement, Organigram will have access to a secure supply of hemp flower which contains significant levels of cannabidiol (CBD cultivars ranging from 4% to 8%). CBD is a naturally occurring active ingredient in hemp and cannabis that is currently being studied for various therapeutic uses. "Maximizing the CBD yield of hemp and cannabis means being able to meet increasing consumer demand for CBD while reducing overall production costs," explains Greg Engel, Chief Executive Officer of Organigram. "We are proud to work with other industry-leading companies and researchers to continue to explore the potential of hemp and cannabis plants and the efficiency with which we can deliver CBD to our customers."
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