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Global Cannabis Industry Positioning to be World's Most Lucrative Sector
PALM BEACH, Florida, May 8, 2019 /PRNewswire/ -- Over the past couple of years the increasing consumer demand for medical and legal recreational cannabis has been growing and more and more governments are steadily moving to full legalization. A report from the Green Fund stated: "The global cannabis market is thought to be worth USD$150 billion today. Barclays, in their European Consumer Staples Report in September 2018, suggests that this figure could increase to USD$272 billion by 2028. The UN estimates that approximately 3.9% of the global adult population, or 190 million people, are cannabis users (vs. 1 billion smokers). The highest prevalence of cannabis users was found to be from Europe, followed by the US and the Oceania Region. Although small, the Oceania Region is considered significant given its access to the Asia Pacific region." The report continued: "Despite the sharp divides in support for cannabis legalization, a few things are clear: public support for marijuana legalization continues to increase, the industry is already a multibillion-dollar juggernaut that looks primed for continued expansion, and there are clear potential medical benefits of cannabis. Active Companies from around the market with current developments this week include: Marijuana Company of America, Inc. (OTC:MCOA), Medical Marijuana, Inc. (OTCPK: MJNA), Kona Gold Solutions, Inc. (OTCPK: KGKG), Aleafia Health Inc. (TSX: ALEF) (OTCQX: ALEAF), Terra Tech Corp. (OTCQX: TRTC).
However, as global recognition of the benefits of medicinal cannabis increases, and the end of the 'prohibition era' for cannabis beckons, there is a burgeoning need for high-quality products with known components, cultivated at large scale for consistent, reliable supply to health users. It would be safe to say that the Cannabis industry will soon become the most lucrative and thriving industrial sector in the world. Cannabis cultivation has traditionally been a fragmented cottage industry with minimal quality standards.
Marijuana Company of America, Inc. (OTCQB:MCOA) BREAKING NEWS: Marijuana Company of America, an innovative hemp and cannabis corporation, is pleased to announce that its wholly owned subsidiary, hempSMART, Ltd., is taking steps to list on the Vienna Stock Exchange (H Smart SARL), with the intention of raising sufficient capital to expedite the roll-out of its hempSMART™ product line in Europe.
Marijuana Company of America plans to sell a minority interest of hempSMART, Ltd., currently engaged in developing and marketing the hempSMART brand in Europe, for up to $10 million. The Company expects that all of the necessary steps to be trading on the Vienna exchange will be completed by the beginning of the third quarter of 2019.
Once listed, hempSMART, Ltd. will be one of the first U.S.- based hemp-derived cannabidiol (CBD) companies to do an initial listing on a European exchange, as most cannabis and hemp public companies opt to list in Europe as a secondary listing. This is a result of the Company's commitment to prioritize its marketing efforts in the bourgeoning European cannabis, hemp and CBD markets, with future plans to expand further.
"We are very excited to do an IPO of hempSMART, Ltd. on such a reputable European exchange," said Don Steinberg, CEO of Marijuana Company of America. "This is a huge leap forward to obtain the necessary capital to bolster our European launch, and become a top hemp brand in Europe. Europe's cannabis and hemp markets are undergoing a critical phase in their growth and this is the optimum time to establish our brand as a leader. To date, we have exceeded expectations at our London event in March. In order to capitalize on this positive market momentum, we have planned two additional events in England, with two more following in Liverpool and Birmingham."
hempSMART, Ltd. is expected to enter Portugal later this month, with future plans to extend further in France, Germany and Austria. hempSMART Ltd. markets and sells the Company's hemp and hemp-based personal wellness products, including the US patented hempSMART Brain™, an effective wellness product formulated with proprietary composition of natural ingredients and CBD to enhance brain function. Read this and more news for MCOA at: https://www.financialnewsmedia.com/news-mcoa/
In the industry developments and happenings in the market this week include:
Medical Marijuana, Inc. (OTCPK: MJNA) the first-ever publicly traded cannabis company in the United States, recently announced that its subsidiary Kannaway® has released its new Single-Serving Coffee and Tea Pods, infused with 10 mg of hemp-derived cannabidiol (CBD) per pod.
"Kannaway's Single-Serving CBD-infused Coffee and Tea Cups provide a fast and pre-measured way to ingest your daily dose of CBD without disturbing your daily routine," said Kannaway® CEO Blake Schroeder. "These new products fill a need in the CBD market that very few products currently offer and we are confident that consumers will love the convenience they provide."
Kona Gold Solutions, Inc. (OTCPK: KGKG) a hemp and CBD lifestyle brand focused on product development in the functional beverage sector, recently announced the sponsorship of World Ranked #1 professional skier, Ryan Dodd. Ryan Dodd has signed a two-year agreement with Kona Gold where he will represent the brand's Kona Gold Hemp Energy Drinks on a global level as he travels and competes in events around the world.
"Kona Gold is a leader and innovator in the functional beverage industry. We found it fitting to join forces and continue to raise the bar together setting the Gold Standard. I'm so excited for the future with this premier lifestyle brand," stated Ryan Dodd.
Aleafia Health Inc. (TSX: ALEF) (OTCQX: ALEAF) recently announced that it is entering the German medical cannabis market via its joint-venture (the "JV") with German pharmaceutical wholesaler Acnos Pharma GmbH ("Acnos"), together (the "Parties"). The JV entity will purchase Aleafia Health branded cannabis oils for distribution to German pharmacies and for clinical trial usage. Aleafia Health's wholly-owned subsidiary Emblem Cannabis Corp. ("Emblem") is the majority shareholder of the JV with 60 per cent ownership with Acnos owning the remaining 40 per cent.
The Parties have expanded the scope of the previously announced JV formed by Acnos and Emblem, by leveraging the significantly increased access to dried flower and extraction available to the combined entity. The German medical cannabis market has grown rapidly since legalization in 2017, and is projected to produce revenues of $5 billion in 2025 for cannabis producers, according to a report by Bank of Montreal. Market advantages in Germany include significantly higher margins compared to the Canadian market and reimbursement of patient purchasing costs through private and public health insurance, which is almost entirely non-existent in North America.
Terra Tech Corp. (OTCQX: TRTC), a vertically integrated cannabis-focused agriculture company, recently announced the start of cannabis sales to the City of San Leandro's adult use market. On March 19, 2019 the San Leandro City Council approved adult use sales with a start date of May 1, 2019. After completing their review, the State approved the local authorization and issued the provisional adult and medical license May 2, 2019. The City has approved three retail facilities; however the Company currently operates the only dispensary that is currently open in the City at 1915 Fairway Drive San Leandro, CA, 94577.
The provisional license is valid for one year. Terra Tech's Blüm San Leandro dispensary has seen consistent medical foot traffic and a significant number of adult users, over 200 a week on average, who have been turned away since the medical facility opened its doors on January 11, 2019 due to the prior restriction on sales. The company expects robust sales in San Leandro which is a prominent suburb city of San Francisco and Oakland, centered in the dynamic San Francisco Bay Area, with a vibrant community of more than 89,000 residents. The City also encompasses a large industrial area that is home to an advanced manufacturing industry.
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