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Demand Continues to Outpace Supply in the Cannabis Marketplace
NEW YORK, Feb. 28, 2019 /PRNewswire/ -- The rapid acceleration of the cannabis industry has created many new job opportunities for entrepreneurs and investors alike. Even though, due to regulatory guidelines, cannabis is still federally illegal in most countries around the world. These regulations have barred specific businesses such as banks and federal agencies from working with cannabis-related companies, prompting private sectors to enter into the marketplace. Other legislation has also limited the number of licenses that are given to businesses. Now, while the market is introducing new sectors, several cannabis-based companies have stepped up to meet demand by expanding their business plans. Overall, in combination with new players entering the marketplace and others developing their business models, the industry is expected to witness an attractive growth. According to data compiled by Cooked Research, the global legal marijuana market is projected to reach USD 4.69 Billion by 2022, as well as grow at a CAGR of 22.03%. Biome Grow Inc. (OTC: BIOIF) (CSE: BIO), Leafbuyer Technologies, Inc. (OTC: LBUY), Liberty Health Sciences Inc. (OTC: LHSIF) (CSE: LHS), Nightfood Holdings, Inc (OTC: NGTF), Halo Labs Inc. (OTC: AGEEF)
The demand for legal cannabis is constantly growing, particularly in regions that have adopted medical cannabis legislation. On the other hand, the explosive recreational market in the U.S. and Canada is doing its own to massively fuel the demand, as a major concern among suppliers and dispensaries is being able to meet the ever growing demand. Many companies blame the shortage on delayed regulations and a lack of licensing as the deficit in supply is causing cultivators to experience sizeable orders to fulfill regions with their cannabis orders. Countries such as the U.S., Canada, Australia, Argentina, the United Kingdom, and Germany are locking in agreements with cultivators and suppliers, which is further driving demand higher. "As with any new industry where there is considerable consumer demand, we expect there may be periods where inventories of some products run low or, in some cases, run out," said Tammy Jarbeau, a spokeswoman for Health Canada, in an email, "Health Canada remains confident that there is sufficient supply of cannabis overall to meet market demand now and into the future."
Biome Grow Inc. (OTCQB: BIOIF) (CSE: BIO) also listed on the Canadian Securities Exchange under the ticker (CSE: BIO). Earlier this month the company announced, "a Memorandum of Understanding ("MOU" or the "Agreement") providing Biome with preferential access to a high quality and low cost supply of Cannabidiol ("CBD") concentrate from CBD Acres Manufacturer Inc. ("CBD Acres").
The MOU is for a period of five years pursuant to which Biome may acquire up to 20,000 kilograms per year of sun-grown, hemp-based CBD extract from CBD Acres using its unique Nano lipid, solventless extraction process.
CBD Acres is founded by Canadian hemp farming pioneer, Mark Gobuty, who is also the founder of the Peace Naturals Project, Canada's first Marijuana for Medical Purposes Regulations licensed cannabis grower. CBD Acres is currently working with 4,500 acres of hemp farmland in Canada, including 1,000 acres of organic grow, which it expects to produce volumes that are equivalent to a 180 million square foot indoor cannabis production facility under the Canadian Cannabis Act.
'Through this Agreement Biome is demonstrating a cannabis company can offer significant quantities of high-quality product at industry disrupting economics with a made in Canada product. This can also be accomplished without spending substantial capital to build internal production facilities. Moreover, Biome will now be in a position to supply both its domestic and international customers with affordable medicinal and therapeutic products based on CBD in the volumes that are required.'
'CBD Acres is thrilled to have the visibility of a long-term partner for its bulk products business entering the market in the second half of 2019, and more importantly a strategic partner focused on commercialization in key medical-CBD markets, allowing CBD Acres to focus on growing and extraction innovation as well as its consumer products business,' said CBD Acres CEO Mark Gobuty.
Biome is considered a "related party" to CBD Acres as such term is defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101") on the basis that Jacob Capital Management Inc., a significant shareholder in the capital of the Company, is also a significant shareholder in the capital of CBD Acres. However, due to the service-type nature of the arrangement with no commitment or obligation for Biome to utilize the service provided by CBD Acres or to acquire an asset or assets from CBD Acres, the MOU is not considered to be a "related party transaction" as defined under MI 61-101."
For our latest "Buzz on the Street" Show featuring Biome Grow Inc. recent corporate news, please head over to: https://www.youtube.com/watch?v=RluTAMEejwY
Leafbuyer Technologies, Inc. (OTCQB: LBUY) is a multi-platform cannabis technology company connecting consumers with dispensaries and product companies through online, loyalty, print, and in-person initiatives. Leafbuyer Technologies, Inc. recently announced that the Company has signed up more than 50 licensed medical dispensaries within the Oklahoma market. The statement closely follows a February 12, 2019, release announcing 31 dispensary client signups. Oklahoma voters passed medical marijuana legislation in June 2018. Patients can register for medical marijuana and be authorized for any condition a doctor deems appropriate. As of February 25, more than 50,000 patients have been approved. Our success within the Oklahoma market is a direct result of aggressive marketing and sales initiatives," said Kurt Rossner, Chief Executive Officer of Leafbuyer. "We plan to replicate the strategies we used in Oklahoma within other emerging markets, boosting revenue and expanding our national footprint."
Liberty Health Sciences Inc. (OTCQX: LHSIF) (CSE: LHS) is the cannabis provider committed to providing a trusted, high quality cannabis experience based on our genuine care for all cannabis users and a focus on operational excellence from seed to sale. Liberty Health Sciences Inc. recently announced that it held a grand opening celebration on Tuesday, February 19 from 10 a.m. to 7 p.m. for its new dispensary opening in North Miami, and increasing the number of the Company's dispensaries in Miami to two, and in the state of Florida to nine. "Liberty continues to fulfill its promise to provide our Florida customers with access to the highest-quality medical marijuana throughout the state, including increasing our capacity to provide premium quality products developed at our Liberty 360 Innovation Campus in Gainesville, where we expect to add an additional 160,000 sq. ft. of cultivation space this year," said George Scorsis, Chief Executive Officer of Liberty. "Our new North Miami location will offer the community state-of-the-art waiting and consultation rooms for medical marijuana educational meetings and provide access to Liberty's line of superior cannabis products in a 4,270 sq. ft. modern and safe environment to which our customers have become accustomed."
Nightfood Holdings, Inc (OTCQB: NGTF), "The Nighttime Snack Company", is currently rolling out its line of nighttime ice cream across the country. MJ Munchies, Inc., a subsidiary of Nightfood Holdings, Inc. and Global Consortium, Inc. (OTC: GCGX), recently announced that the parties have entered into a Letter of Intent whereby Global Consortium subsidiary Infused Edibles would receive an exclusive license to manufacture and distribute marijuana and CBD-infused products under the Half-Baked™ mark owned by MJ Munchies. With commercial brands in the marijuana space increasingly frustrated by restrictive government advertising policies, both companies believe having the right brand name provides a distinct competitive advantage at retail in this rapidly-growing market. "We're excited to work with a company that shares our vision for national awareness and distribution," added MJ Munchies Chief Executive Officer Sean Folkson. "They have a track record of success in manufacturing and distributing a varied line of products that succeed at retail. We've been working on this for some time, which is why we have not been commenting publicly about the MJ Munchies side of our company. Now, the broad strokes are in place, and we're going to work together to quickly finalize the agreement."
Halo Labs Inc. (OTCQB: AGEEF) is a cannabis extraction company that develops and manufactures quality cannabis oils and concentrates, which are the fastest growing segments in the cannabis industry. Halo Labs Inc. recently provided a progress update on the launch of the revolutionary DabTabs™. DabTabs™ are proprietary ceramic discs that store a pre-measured single dose of either cannabis concentrate or oil. The DabTabs™ provide a cleaner, smoother, mess-free way to consume full spectrum cannabis oils and concentrates that capture the full benefits of the cannabis plant. In the first 4 weeks of launch, the product has been sold to 140 dispensaries in the state of Oregon generating nearly USD 100,000 in revenue. The product was Introduced as the flagship product under the GILT brand in a "launch pack" consisting of 36-sale units (18 ½ gram bottles and 18 full gram bottles) to help drive distribution of the complete DabTab™ product assortment, and initial customer feedback has been extremely positive with multiple dispensaries already reordering. The product will be introduced in both 18- and 6-sales unit pack sizes in the coming weeks to meet customer needs and expand distribution in the state. David Orr, Chief Revenue Officer of Halo Labs said: "DabTabs™ are a breakthrough product and, in a highly competitive space, provide a refreshingly new and different way for consumers to enjoy their cannabis experience. We are thrilled to be partnering with iLo to introduce DabTabs™ as the first product under our GILT brand. We've gotten overwhelmingly positive feedback on social media, with messages such as: @richdeananders 'Got to be one of the most innovative things I've seen in extracts in a long time' and @brandonfults 'I'm very impressed and will be buying more. The no-waste, full-spectrum medication is awesome'. The positive social media engagement is reinforcing our excitement about what consumers think about the product!"
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