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Continued Research Reveals Notable Details on Cannabis' Efficacy

NEW YORK, Aug. 6, 2019 /PRNewswire/ -- As the cannabis industry continues to develop, researchers are beginning to uncover additional benefits within the plant's biological content. Primarily, cannabis is currently associated with its CBD and THC compounds because of their abundance. And through extensive clinical studies, researchers have discovered that the two compounds are widely different in their biological makeup, as THC is the active psychoactive property found within the marijuana plant, while CBD is the non-psychoactive content derived from the hemp plant. Despite the differences, both plants fall under the cannabis family. While THC and CBD are most commonly associated with cannabis, researchers have realized that there are over a hundred cannabinoids found within the cannabis plants. Notably, CBN or cannabinol has become an increasingly popular cannabinoid. CBN comes from the oxidation and decomposition of THC from the hemp plant, meaning that when THC is heated and exposed to CO2, it converts into CBN, according to Sara Brittany Somerset, a public speaker for cannabis advocacy who has appeared at the Cannabis Media Summit and World Cannabis Congress. Similar to hybrid mixtures of THC and CBD, CBN can almost be infused with other cannabinoids such as CBD and the combination of CBN and CBD can help alleviate insomnia. Despite CBN and CBD both deriving from the hemp plant, CBN is known to cause sedating effects, while CBD causes more of a relaxed effect. Moreover, CBD is known to mildly suppress appetite, but CBN can, on the other hand, stimulate appetite. Overall, the wide-ranging and versatile uses of cannabis have helped bring the plant into the spotlight. For instance, a single plant cannabis can help aid patients with dozens of medical conditions. However, many countries still do not recognize cannabis as an appropriate medical treatment, but nonetheless, a handful has already taken the step forward in an effort to push through to recognize cannabis as a legal medicine. And as more countries continue to understand the medical efficacy of cannabis, other nations are expected to be influenced as well. According to data compiled by MarketsandMarkets, the global cannabis market is projected to grow from USD 10.3 Billion in 2018 to USD 39.4 Billion by 2023. Furthermore, the market is anticipated to grow at a CAGR of 30.7% during the forecast period. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), Organigram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI), Acreage Holdings Inc. (OTC: ACRGF) (CSE: ACRG), Innovative Industrial Properties, Inc. (NYSE: IIPR).

While cannabis has been used for centuries, its exact effects and content are still unclear to most. Researchers have tirelessly examined the plant and yet, many cannabinoids still have not been detected. Predominantly, the cannabis plant is composed of THC and CBD, which are created through the synthesization of several other cannabinoid acids, according to Leafly. Typically, these cannabinoid acids can be activated by heat, but the growing conditions will also play a large role in their development. For instance, a cannabis plant lacking adequate growing conditions can have its genetic makeup and harvest severely impacted. Specifically, growers focus on providing optimal lighting, irrigation flow, humidity, and airflow throughout facilities. By providing suitable conditions, the plants are able to achieve maximum cannabinoid growth, allowing growers to create premium products. Moreover, craft cultivators have taken the growing process a step further in order to create a top-tier product. Craft cultivators engage in a tedious method of tending to each and every single plant to ensure high-quality end results. Similar to craft beer brewers, craft cultivators want to achieve the best possible end product for their consumers. In order to do so, craft cultivators carefully monitor each plant and check for any issues that might affect the cannabinoid development of the plant such as molding. Furthermore, when the plants are ready to be harvested, craft cultivators hand-trim the plants to maintain the cannabinoid content within the buds. The exhausting process that craft cultivators undergo is laborious, however, in the end, craft cultivators are able to achieve a premium strain that excels against the competition. "As the era of marijuana prohibition comes to an end, now is the time to think about what kind of marijuana industry and marijuana agriculture we want. Craft Weed will help us plan for a future that is almost here," according to a synopsis by the MIT Press, an affiliate of the Massachusetts Institute of Technology. 

Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT) is also listed on the Canadian Securities Exchange under the ticker (CSE: CRFT). Earlier last month, the Company announced, "the acquisition of a national brand known as Earth Dragon Organics – a leading pre-legalization manufacturer and purveyor of small batch cannabis-infused topicals, based in British Columbia.

Since its inception in 2012, Earth Dragon Organics has typified the variety of smaller, female-led and patient-focused businesses that flourished during cannabis prohibition. Earth Dragon Organics supplied THC- and CBD-infused topical products to those seeking relief from muscle pain, arthritis, nerve pain, migraines, and multiple sclerosis, among other conditions, combining cannabis with local, organic ingredients including arnica and essential oils to harness the qualities of THC and CBD.

"Becoming part of the Pasha Brands family is a huge milestone for Earth Dragon Organics in that it will allow us to scale up and make these handmade, craft products more available to the entire country," said Tessa Serra, founder of Earth Dragon Organics and Pasha's newly hired product manager. "This partnership is a great match and I'm looking forward to the evolution that is about to take place."

The line of handmade products including balms, creams, body butters, sunscreen, bath salts and more are not currently available as all sales have ceased to prepare their entrance to the regulated framework with product manufacturing located at Pasha's licenced processing facility on Vancouver Island. Pasha has acquired all of the brand's trademarks, names and intellectual property and will re-launch the brand in the Canadian regulated market after the appropriate regulations is passed on October 17, 2019. According to the federal Canadian Cannabis Survey 2018, in the last year alone, the number of Canadians using topicals for pain relief has doubled (from seven to 14 percent).

"This is exactly the kind of business legalization has been leaving behind, and Pasha is honoured to help bring Tessa's passion for creating sustainably made, handcrafted cannabis-infused topicals into the legal market," said Patrick Brauckmann, Executive Chairman of Pasha Brands. "We're lucky to have her skillset as a product developer and manufacturer on the Pasha team, and glad we will be able to make her cherished products available again soon."

Following the passing of regulations that will enable licensed producers to make and sell edibles, extracts, and topicals, Pasha will seek provincial and territorial distribution for the brand. The company has already submitted an Earth Dragon Organics product line in an application to the Ontario Cannabis Store.

About Earth Dragon Organics: Inspired by the cannabis conscious community of Salt Spring Island BC, Earth Dragon Organics is a craft cannabis topical brand embodying the natural beauty of the West Coast. Highlighting the profound benefits of cannabis and the alchemy of traditional herbal remedies, Earth Dragon Organics' innovative skincare line offers nourishing treatments for all skin types and conditions.

About Pasha Brands: Based in Vancouver, British Columbia, Pasha is a vertically integrated, prohibition-era brand house firmly rooted in BC's craft cannabis industry, which boasts an international reputation. With proven capabilities in cannabis cultivation, genetic research and development, product processing, and retail, Pasha is uniquely positioned in the new legal cannabis market through its network of hundreds of craft cannabis suppliers under the Pasha umbrella. Pasha subsidiary, Medcann Health Products Ltd., is a Health Canada licensed cultivator and processor with a licence to sell medical cannabis products in Canada. Pasha and BC Craft are also developing a craft cannabis campus, which is dedicated to bringing craft quality into the newly legal cannabis market in Canada. BC Craft is driven to assist craft growers in obtaining security clearance and licensing to grow as micro-cultivators, specializing in education and compliance to bring growers into the regulated cannabis supply market. Pasha's common shares trade on the CSE under the symbol "CRFT" and on the FSE under the symbol "ZZD". For more information, please visit  

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HEXO Corp. (NYSE: HEXO) (TSX: HEXO) is an award-winning consumer packaged goods cannabis company that creates and distributes innovative products to serve the global cannabis market. HEXO Corp. recently announced its cannabis products are now available to Alberta consumers for the first time after finalizing an agreement between HEXO and Alberta Gaming, Liquor and Cannabis (AGLC). The agreement provides AGLC with HEXO's nine dried flower products and award-winning Elixir oral sprays, making them available on the Alberta Cannabis online store and to all of the nearly 200 private retail stores in the province. "This agreement marks the latest achievement in the development of HEXO's presence in Western Canada and our goal to be top two in market-share in the country," said HEXO Corp Chief Executive Officer and Co-Founder, Sebastien St-Louis. "Alberta represents one of the largest cannabis markets in Canada and we are thrilled to see our products are available to Albertans across the province."

Organigram Holdings Inc. (NASDAQ: OGI) (TSX-V: OGI) is a NASDAQ Global Select and 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 that it has entered into an advance payment and purchase agreement with 703454 N.B. Inc. under which the Company will pre-fund hemp purchases to receive access to as much as 60,000 kilograms of dried hemp flower to be harvested in calendar 2019 for extraction into cannabidiol ("CBD") isolate. "Access to a large, consistent volume of CBD-producing hemp has become increasingly important as Canadians express their demand for CBD-rich products for use in both recreational and medical capacities," said Greg Engel, Chief Executive Officer, Organigram. "We've heard the call for CBD in the market and this agreement positions Organigram to meet that demand."

Acreage Holdings Inc. (OTCQX: ACRGF) (CSE: ACRG), headquartered in New York City, is the largest vertically integrated, multi-state owner of cannabis licenses and assets in the U.S. with respect to the number of states with cannabis-related licenses, according to the publicly available information. Acreage Holdings, Inc. recently announced that on April 17th, its subsidiary, High Street Capital Partners, LLC entered into an agreement to acquire 100% of Deep Roots Medical LLC, a vertically integrated cannabis operator in Nevada, for a total deal value of USD 120 Million to be paid in common units and cash. Deep Roots marks Acreage's entry into Nevada, increasing the company's total state footprint to 20 (including pending acquisitions) - the largest in the US cannabis industry.  With a population of three million, and tourism that attracts 43 million visitors per year, Nevada is estimated to generate nearly USD 800 Million in legal cannabis sales by 2022, according to Arcview Market Research. Kevin Murphy, Founder, Chairman, and Chief Executive Officer of Acreage Holdings, Inc., commented, "We continue to deliver on our shareholder commitments to aggressively expand our presence in the West.  We could not be more excited for what we believe will become a leading operation in the state of Nevada, one of the most important states in the cannabis industry."

Innovative Industrial Properties, Inc. (NYSE: IIPR) is a self-advised Maryland  corporation focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. Innovative Industrial Properties, Inc. recently announced that it closed on the acquisition of a property in Saxton, Pennsylvania, which comprises two buildings totaling approximately 266,000 square feet of industrial space. The purchase price for the Pennsylvania property was USD 13.0 Million (excluding transaction costs). Concurrent with the closing of the purchase, IIP entered into a long-term, triple-net lease agreement with a subsidiary of Green Leaf Medical, LLC (Green Leaf Medical), which intends to operate the property as a licensed medical-use cannabis cultivation and processing facility. Green Leaf Medical has redeveloped approximately 103,000 square feet of the industrial space for medical-use cannabis cultivation and processing, with the remaining approximately 163,000 square of industrial space available for future redevelopment. As the pioneering real estate investment trust (REIT) for the medical-use cannabis industry, IIP partners with experienced medical-use cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions. "We are pleased to add multi-state operator Green Leaf Medical to our premier tenant roster," said Paul Smithers, President and Chief Executive Officer of IIP. "Green Leaf Medical has achieved tremendous success in Maryland in a short period of time, and is focused on replicating that model across a number of states, including Pennsylvania. We are thrilled to serve as one of their capital sources to allow them to continue those expansion initiatives and reach an ever-growing number of patients across the Northeast."

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